Portfolio transactions
In 2008, we saw a drastic reduction in portfolio transactions relating to hotel properties in Europe. In terms of transaction value, the 2007 amount shrank by three-quarters, from EUR 13.9 billion to a little over EUR 3 billion. In 2006, the figure was EUR 14.4 billion. (Source: HVS – London.) The number of transactions was reduced from 52 in 2007 to 24 in 2008, and the average transaction size was eight hotels, whereas in the period 2003–2007 it was 28. More than two-thirds of the portfolio transactions were completed during the first half of the year.
The only portfolio transaction in Scandinavia, which was also the largest in Europe in 2008, was effected when CapMan purchased 39 hotels from Northern Europe Properties (London&Regional).
Individual transactions
In 2008, HVS registered a total of 77 individual transactions involving hotel properties valued at more than EUR 7.5 million. The total value of the transactions added up to a little over EUR 3 billion.
Only two of the transactions took place in Scandinavia (Sokos Hotel Helsinki and Quality Hotel Mastemyr in Norway). The bulk of the transactions took place in the United Kingdom and Spain (17 each).
Moreover, as a result of reduced activity in the market, the average price (purchase price) per room has fallen by 7.3%, to EUR 217,000.
There is reason to believe that 2009 will follow the same pattern as 2008, perhaps with an upswing towards the end of the year, if the bottom of the market is reached and the conditions in the international financial markets are restored to health.
