News of the pending sale of Norgani Hotels for just over EUR 1 bn follows signs that investor jitters have persisted over the summer. Jones Lang LaSalle, for instance, warned at end-July that investors now seem more hesitant in Europe due to concerns about sovereign debt and austerity packages.
News of the pending sale of Norgani Hotels for just over EUR 1 bn follows signs that investor jitters have persisted over the summer. Jones Lang LaSalle, for instance, warned at end-July that investors now seem more hesitant in Europe due to concerns about sovereign debt and austerity packages.
Data compiled by PropertyEU Research supports this conclusion. We recorded EUR 7.8 bn worth of European investment deals from 1 July to 24 August, an average of under EUR 4 bn per month. This compares to EUR 15 bn for Q2. While the monthly average is down, a number of big deals is taking place.
The volume for July-August this year was pepped up by nine EUR 200 mln-plus deals totalling EUR 4 bn. By comparison, we recorded only two EUR 200 mln-plus deals in Q3 last year. A revival in the hotel market is also becoming visible, with JLL Hotels predicting that investment volume may double in H2 compared to the EUR 1.6 bn recorded in H1.
In late August PropertyEU recorded two hotel deals with a total investment volume of almost EUR 1.4 bn, bringing the total for hotels in the review period to EUR 1.7 bn.
The full article and our Deal Analysis for the first half of 2010 are published in the September edition of PropertyEU Magazine. Click on the link below to subscribe.
