A TOTAL of £1.62bn of hotels across Britain have been sold over the last three years as a result of company administrations or receiverships, research released yesterday said.
The report by Jones Lang LaSalle said 2013 has been the most active year for administration or administrative receiverships, owing to Abu Dhabi’s sovereign wealth fund recently buying 42 Marriott hotels held by Royal Bank of Scotland.
The sale to the Abu Dhabi Investment Authority, is thought to have been worth around £640m.
In February US investment firm Starwood Capital snapped up hotel chain Principal Hayley from Lloyds Banking Group in a deal valued at around £360m.
George Nicholas, executive vice president with Jones Lang’s hotels & hospitality group said: “The process of bank deleveraging is quickening and we are already experiencing a record year of administration led transactions in 2013, a level which is significantly higher than the total of £542m sold in 2011.”
Nicholas said 2005 through 2007 saw around £17.7bn in aggregate UK hotel deals. With the debt now maturing on those deals, he said banks are set to speed up asset sales “at more realistic prices”.