Post on 03-Apr-2022
| INTRODUCTION |
We are all facing unprecedented times. The Hotel sector still offers exciting opportunities for operators, owners
and lenders, but comes with its unique hurdles and challenges. The personal tragedies of Covid-19 have been
followed by severe disruption for the global economy and investment markets. The Property sector has been impacted by short term lockdown measures, but now
faces questions about how space can be best utilised in a post-Covid world. Arguably Hotels have been the hardest hit of the main asset classes and they now face a number of challenges to achieve trading performance recovery.
UK & EMEAHOTEL MARKET
Up to Q1 2020, there had been an increasing appetite to invest in hotel real estate. This was a direct result of favourable economic conditions, market liquidity, the continuing maturity of the sector and a low interest rate environment. This also resulted in an increased pool of lenders and competitive debt packages.
With lockdown measures enforced and gradually lifted in most major markets, hotels must now plot their paths to recovery. Occupancy levels will be suppressed in the short term reflecting weakened corporate and leisure demand and operators and brands will need to adapt their properties to remain competitive – no easy task. Owners will need to balance cashflow priorities with debt service and long term investment plans, whereas buyers into the sector will need to be thorough in their due diligence and astute in their timing. There remains a large amount of equity seeking property investments, hotels included.
Lenders are facing considerable challenges - offering support to their customers, but remaining commercial in their longer term outlook. Each market, each property and each borrower is different and there is no one size fits all in how best to address the challenges faced.
Accurate valuations, in depth analysis and sound advice is needed to navigate the hospitality property market, now more than ever.
The sector is dynamic and ever-evolving. Hotels will innovate, adapt and recover from this crisis. There will be casualties, but the long term, underlying fundamentals for travel and accommodation remain. Our team understands the unique challenges that investors, developers, lenders and operators face and the role property plays at the heart of any hotel business.
Tim Stoyle FRICSHead of UK Hotels+44 (0) 20 7409 8842+44 (0) 7870 555 749tstoyle@savills.com
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SAVILLS HOTEL VALUATION & CONSULTANCY SERVICES
| CASE STUDIES |SAVILLS HOTEL VALUATION & CONSULTANCY SERVICES
GRANGE PORTFOLIO, CENTRAL LONDON
Keys: 1,307
Value: £1 Billion
Description: Four hotels located in St Paul’s, Tower Bridge, The City and Holborn. Sold to Queensgate Investments and now operated by Leonardo hotels under long term leases.
PROJECT MAUVE, UK-WIDE
Keys: 3,383
Value: > £450 million
Description: 17 hotels operated under the Crowne Plaza, DoubleTree by Hilton, Hilton Garden Inn, Holiday Inn, AC by Marriott and Hotel Indigo brands. Purchased by Thailand’s DTP Infinities Corporation.
THE NED, BANK
Keys: 252
Value: > £400 million
Description: Luxury hotel situated in the former Midland City of London HQ and operated by Sydell and Soho House Group. Includes a private members club, 10 food and beverage outlets , spa, leisure, meeting space and rooftop.
LINTHWAITE HOUSE HOTEL, BOWNESS-ON-WINDERMERE
Keys: 36
Value: > £10 million
Description: Newly redeveloped luxury hide away located in the Lake District with views over Lake Windermere. 36 bedrooms and woodland lodges with top-of-the-market restaurant and bar.
THE RITZ, PICCADILLY
Keys: 136
Value: > £500 million
Description: Iconic hotel built in 1906 by César Ritz. The hotel provides 136 unique bedrooms alongside three food & beverage outlets, nine meeting rooms, casino and treatment rooms.
STOCK EXCHANGE HOTEL, MANCHESTER
Keys: 34
Value: > £10 million
Description: Grade II listed property in the heart of Manchester redeveloped into a leisure destination including fine dining restaurant, cocktail bar, rooftop bar, exhibition kitchen and 34 bedrooms.
RESIDENCE INN BY MARRIOTT PORTFOLIO
Keys: 507
Value: > £200 million
Description: Largest aparthotel portfolio in London; newly redeveloped and rebranded. Three properties located in London Bridge and Kensington.
HANDPICKED HOTELS PORTFOLIO, UK-WIDE
Keys: 822
Value: > £100 million
Description: 14 country house hotels from the New Forest in the south to Edinburgh in the north. Historic properties set within extensive grounds with established wedding businesses.
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LONDONVALUATION
UNITED KINGDOMVALUATION
| CASE STUDIES |SAVILLS HOTEL VALUATION & CONSULTANCY SERVICES
25HOURS HOTEL, PARIS
Keys: 237
Value: > €100 million
Description: Newly redeveloped design-led hotel overlooking Gare du Nord. Incorporates restaurant, bar and ground floor retail parade. Operated under a management agreement with 25hours.
HILTON ATHENS
Keys: 468
Value: > €100 million
Description: Landmark city centre hotel with conference space, restaurants and retail areas and potential for asset management.
GENERATOR HOSTEL PORTFOLIO, EUROPE-WIDE
Keys: 1,704
Value: > €300 million
Description: 11 hostel properties located in Germany, The Netherlands, Spain, Denmark, Sweden, Italy and UK comprising over 6,500 bedspaces.
PARK PLAZA PORTFOLIO, EUROPE-WIDE
Keys: 3,995
Value: c. £1 billion
Description: 18 owner operated upscale hotels across major cities in the UK, The Netherlands and Germany. Valuation undertaken for stock exchange purposes.
CHAMPNEYS PORTFOLIO, UK-WIDE
Keys: 400
Value: > £80 million
Description: Five health resorts set in extensive parkland grounds located across England. Properties include a full range of leisure facilities including 228 treatment rooms, food and beverage outlets and events facilities.
VILLAGE HOTELS PORTFOLIO, UK-WIDE
Keys: 4,629
Value: > £500 million
Description: 35 hotels located in England, Scotland and Wales. Emphasis on health and fitness and wellness facilities, with large memberships and high ancillary spend.
SOHO FARMHOUSE, OXFORDSHIRE
Keys: 94
Value: > £50 million
Description: Located in rural Oxfordshire, the newly completed Farmhouse includes 94 bedrooms, 15 seasonal tents, eight food and beverage outlets, spa, gym, cinema, store, stables and cookery school. Operated by the Soho House Group.
LATERAL CITY APARTHOTELS, EDINBURGH
Keys: 108
Value: > £50 million
Description: Upscale and luxury aparthotel portfolio across three properties in Central Edinburgh, including the landmark Edinburgh Grand, St Andrew Square.
UNITED KINGDOMVALUATION
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EUROPEVALUATION
We specialise in all hotel, serviced apartment, hostel and resort markets, and provide full
geographical and sector-specific coverage to provide you with a best in class service.
HOTEL VALUATIONTEAM
We utilise our global network of over 600 offices based throughout Asia Pacific, the UK, Europe and the USA. We pride ourselves on our thoroughness, flexibility and quality of product, drawing on a wealth of experience across a range of hotel specialisms to provide comprehensive and reliable advice.
Across Europe, our team valued over £20 billion of hotels in 2019-20, including the largest London transaction (Grange Hotels), the largest UK portfolio transaction (Project Mauve), the largest London aparthotel portfolio (Residence Inn) and largest European hostel portfolio (Generator).
KEYCONTACTS
Ross ConnellyDirector Hotels +44 (0) 207 409 9921 rconnelly@savills.com
Tom Barrett Director Hotels +353 1 618 1415 tom.barrett@savills.ie
Sandra Lopez Director Hotels +34 91 319 1314 sandra.lopez@savills-aguirrenewman.es
Steven FyfeAssociate Director Hotels +44 (0) 141 222 4159 steven.fyfe@savills.com
Tim StoyleDirector Hotels +44 (0) 207 409 8842 tstoyle@savills.com
Giles FurzeDirector Hotels +44 (0) 207 409 8138 gfurze@savills.com
Nick NewellDirector Hotels +44 (0) 207 409 5953 nnewell@savills.com
James Bradley Director Hotels +44 (0) 207 409 8771 jbradley@savills.com
James DixGraduate Surveyor Hotels +44 (0) 207 409 8047 james.dix@savills.com
Nicola EdwardsTeam Secretary Hotels +44 (0) 207 409 9951 nedwards@savills.com
Izzy Trompetas Graduate Surveyor Hotels +44 (0) 207 330 8656 izzy.trompetas@savills.com
Ryan Kirkland Surveying Apprentice Hotels ryan.kirkland@savills.com
Ben PackardAssociate Director Hotels +44 (0) 207 409 9956 bpackard@savills.com
David EltonAssociate Director Hotels +44 (0) 161 277 7222 delton@savills.com
James Greenslade Director Hotels +44 (0) 1392 455 719 jgreenslade@savills.com
Harriet FullerAssociate Hotels +44 (0) 1392 455 769 harriet.fuller@savills.com
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SAVILLS HOTEL VALUATION & CONSULTANCY SERVICES | KEY CONTACTS |
ABOUTSAVILLS
Our mission is to represent our clients diligently, and through that commitment,
achieve superior results.
Savills is one of the world’s largest real estate firms. Established in 1855, we now have over 39,000 employees in over 600 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East. Through our advice, our property management capabilities and our transactional services, we help our clients to fulfil their real estate needs – whatever and wherever they are.
Savills UK operates across 131 offices nationally and services the full spectrum of the real estate sector through our 300 different service lines. We provide a complete range of property solutions throughout the life-cycle of any real estate asset nationwide.
A unique combination of sector knowledge and flair gives clients access to real estate expertise of the highest calibre. We are regarded as an innovative organisation and a number of recent market awards are a testimony to our success.
Through a combination of targeting our local contacts, presenting market research, undertaking private presentations and staging exhibitions, we continue to explore opportunities to target new markets across the globe.
UNITED KINGDOM & IRELAND
131 OFFICES & ASSOCIATES
MIDDLE EAST & AFRICA
227 OFFICES & ASSOCIATES
CONTINENTAL EUROPE
123 OFFICES & ASSOCIATES
ASIA PACIFIC
68 OFFICES & ASSOCIATES
US, MEXICO & CARIBBEAN
68 OFFICES & ASSOCIATES
Over 39,000
2019 GROUP REVENUE
Over 600
OFFICES AND ASSOCIATES CREATING
A STRONG GLOBAL REACH AND NETWORK.
EMPLOYEES ACROSS EUROPE, ASIA PACIFIC AND
THE AMERICAS.
£1.93 billion
| ABOUT SAVILLS |
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SAVILLS HOTEL VALUATION & CONSULTANCY SERVICES