
With positive results in the United Kingdom, hotels are becoming an attractive investment. Hotel groups are profiting from this improvement to dispose of property real estate
The British hotel industry is bustling. Groups solidly positioned on this market may celebrate their performance results, which are clearly on the rise. During the course of 2005, business results may return to levels seen before September 11th. For groups wishing to concentrate exclusively on hotel management, it is the perfect time to disinvest in a real estate supply that is too financially burdened; financial markets appreciate this business activity clarification.Earlier in the year, other operations already took place by big names in the hotel industry. Quinlan Private bought the Savoy Group before other pension funds. The Irish investor already sold the Savoy Hotel for 30 million pounds to a group of investors formed around the Bank of Scotland and Prince Al Waleed. The property's management will be given to the Fairmont Group, in which the Saudi is a shareholder.Potential buyers, private investors, and private equity specialists, are attracted to returns stemming from the clear recovery of the British market. Other hotel groups, not yet present on the London market, such as Peninsula and Shangri- La, may also line up to try and establish themselves at an enviable location.InterContinental Hotels Group, which would like to concentrate on management contracts, launched several waves of asset disposals. It has put up for sale 70 new hotels in the United Kingdom, after having earned 465 million euros from the sale of 28 hotels. 200 purchasing bids are expected, which is evidence of the market's strength. The largest group in the world expects to receive 2 billion euros from these sales, which shall please shareholders. Whitbread is also preparing to sell off several of its Marriottfranchised hotels, for 290 million euros. The time has also come for large-scale sale and leaseback operations. More than half of the Travelodge units may become a consortium of...
This content is for subscribers only. You have 80% left to discover.
Every week, the HON team brings you an expert look at the world of hospitality.
By becoming a member, you will have access to a complete ecosystem: exclusive content, jobs, etc.
BECOME A MEMBERAlready a member ? Login