Hotel sales as a result of company administrations or administrative receiverships soared between 2010 and 2013, according to research conducted by the hotel and hospitality team at financial and professional services firm Jones Lang LaSalle.
2013 is already a record year for hotel sales as a result of company administrations or administrative receiverships
In its latest report on the UK sector, the company revealed £1.62bn of UK hotels had been sold by 'distressed companies' in the four-year period.
This year is already the most active in terms of administration-related UK hotel sales following the reported sale of 42 Marriott hotels whichwent into receivership in 2011- 2011 is now the second most active year for distressed hotel sales.
George Nicholas, executive vice-president with Jones Lang LaSalle’s Hotels & Hospitality Group said banks were speeding up the process of deleveraging, or getting rid of debt, by reducing the prices for assets they control, such as hotels.
"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. As banks are speeding up their deleveraging process, the pricing gap has closed which has resulted in an increase in transaction volumes," he explained.
More hotels wil go bust in 2013
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