Europe -  London

As the biggest financial hub in Europe, and with its rich cultural heritage, London benefits from both leisure and business demand. After the pound sterling depreciated significantly against the euro in 2016 following the EU referendum in June, London benefitted from increased leisure travel from source markets such as the US and Europe. However, that was counterbalanced by decreased business activity due to the uncertainty in the market. As a result, occupancy and RevPAR stayed roughly the same compared to 2016 (in local currency terms) despite a substantial influx of new supply that is to continue in the next few years.

Brexit still dominates the discussions and the impact is strongly debated, however, until further political certainty is gained, it will be difficult to assess. Nevertheless, investment did not come to a halt in 2017. On the contrary, due to even more debt available in the marketplace, there is not enough quality hotel stock to satisfy the demand of investors. London accounted for 55% (€1.7 billion/£1.5 billion) of all single asset transactions in the UK, slightly lower than the 67% and 63% ratios in 2016 and 2015, respectively. The largest deal of the year was the sale of the Grosvenor House JW Marriott Hotel by Subrata Roy’s Sahara India Pariwar to the Ashkenazy Acquisition Corp for €621 million/£550 million (€1.3 million/£1.1 million per key). Other slightly lower price per key transactions included Westmont Hospitality acquiring the 460-room DoubleTree by Hilton – London Westminster from Blackstone for €223 million/£190 million (€480,000/£410,000 per key), the Park Plaza London Waterloo sold by PPHE Hotel Group to CBRE Global Investors for €182 million/£162 million (€370,000/£330,000 per key) and HPL Hotels acquiring the Hilton London Olympia from a joint venture between Oaktree Capital and Westmont Hospitality for €130 million/£115 million (€320,000/£280,000 per key).

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

London RevPAR Change (€Euro)

London RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)