& CONSULTANCY SERVICES

HOTEL VALUATION

& CONSULTANCY SERVICES

| 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 [email protected]

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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


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


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


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


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


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


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


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


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


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


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


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


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 [email protected]

Tom Barrett Director Hotels +353 1 618 1415 [email protected]

Sandra Lopez Director Hotels +34 91 319 1314 [email protected]

Steven FyfeAssociate Director Hotels +44 (0) 141 222 4159 [email protected]

Tim StoyleDirector Hotels +44 (0) 207 409 8842 [email protected]

Giles FurzeDirector Hotels +44 (0) 207 409 8138 [email protected]

Nick NewellDirector Hotels +44 (0) 207 409 5953 [email protected]

James Bradley Director Hotels +44 (0) 207 409 8771 [email protected]

James DixGraduate Surveyor Hotels +44 (0) 207 409 8047 [email protected]

Nicola EdwardsTeam Secretary Hotels +44 (0) 207 409 9951 [email protected]

Izzy Trompetas Graduate Surveyor Hotels +44 (0) 207 330 8656 [email protected]

Ryan Kirkland Surveying Apprentice Hotels [email protected]

Ben PackardAssociate Director Hotels +44 (0) 207 409 9956 [email protected]

David EltonAssociate Director Hotels +44 (0) 161 277 7222 [email protected]

James Greenslade Director Hotels +44 (0) 1392 455 719 [email protected]

Harriet FullerAssociate Hotels +44 (0) 1392 455 769 [email protected]

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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


CONTINENTAL EUROPE


ASIA PACIFIC


US, MEXICO & CARIBBEAN


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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