London Hotel Investments

London Hotel Investments

London Hotel Investments

Hotel Equity Fund – London UK Hotel Investments

London – Hotel Market Report 2020

London is a key European hotel market with consistent strong demand growth from guests on the continent and overseas visitors. With one of the highest occupancy rates in the world (currently at 81.4%), London’s hotel sector is a robust performer.

According to data from STR (the parent company of Hotel News Now), London hotels experienced higher rates during November 2019. ADR increased 1.6% to £158.94 ($209.18), and RevPAR climbed 1.3% to £136.43 ($179.55).

Based on daily data from the second last month of 2019, the year-over-year comparisons were: supply (+2.1%), demand (+1.8%), average daily rate (+1.6% to GBP158.94), and revenue per available room (+1.3% to GBP136.43).

These absolute ADR and RevPAR levels are the highest for any November in STR’s data history about London. Obviously, the CBI Annual Conference had a positive impact on the results. RevPAR rose 20.2% on November 18 – the day of the event.

London is home to a diverse mix of hotels including lifestyle concept lodging (a minimalist-chic approach to luxury) as well as other traditional upper-upper scale accommodation.

According to a new Julius Baer Lifestyle Index report which measures the best value for a luxurious lifestyle, London is Europe’s most extravagant city.

London has a history of luxury. For example, the original Langham opened in the city during 1865. This upscale lodging is considered Europe’s original first grand hotel.

Since its inception, the Langham has been a top-rated London hotel in the luxury category. This accommodation has earned a Forbes 5-star rating (a considerable honor) – along with its sister hotel in Chicago.

London (like New York and Paris) attracts transient clients and group business from domestic and international travelers at high levels.

Increased levels of new supply growth are expected in London and the surrounding regions. London has unique hotels for guests who want to try innovative and super-modern accommodation.

2020 could be an overall record year for the London lodging market. The volume of London hotel investments could reach £1.5bn during the first quarter of the year. Overseas investors from Hong Kong, Thailand, and Israel are expected to contribute 59% of that total.

During the remainder of 2020, the huge demand for London hotels will be fueled by their operational performance. This wild-spread interest in London lodging is a result of the staycation trend and growing numbers of international tourists.

A one-of-a-kind collection (a mix of branded and unbranded accommodation) of London hotels hit the market in Q2 2019. These well-performing properties in key locations (e.g. near underground stations and other London transport links) should attract the interest of varied domestic and international investors.

The average price of a London hotel room has risen £30 over this past decade going from £114 in 2010 to £153 at the beginning of this year.

On January 2, 2020, London’s first 190-room, 8-storey Hotel nhow, part of the NH Hotel Group, opened its doors on Shoreditch’s City Road. The hotel’s interior captures the industrial past of its local region as well as the technology-related future. Its London-based designer Project Orange paid ‘unconventional tribute’ to famous London figures and landmarks throughout the structure.

The Singapore-based Pan Pacific Hotels Group announced that its first European hotel will open in London’s new ONE Bishopsgate Plaza tower during autumn 2020.

As part of its ‘20 in 20’ campaign (the launch of 20 hotels in 2020), Preferred Hotels & Resorts (who claim to be the world’s largest independent hotel chain) will open two new London properties between April and June.

Towards the end of 2019, two large investment companies with a joint venture in mind acquired a 200-room London hotel. They also had plans to acquire other hotels in key micro-markets throughout prime Central London.

This group wants to start a new brand of lifestyle hotels that cater to the “budget-conscious business and leisure traveler.” Their first rebranded hotel is expected to open in spring 2022.

Treehouse London, the first of the sustainable Treehouse brand in the UK, opened in late fall 2019. With its distinct philosophy and playful vibe, this brand brings a different kind of hospitality experience to London.

Investors in London hotels want to broaden their “hospitality” horizons. Buying London properties is an opportunity for them to add an excellent investment to their portfolio with high-quality accommodation in one of the greatest cities in the world.

They can add value with a spirit of innovation and progressive vision. Investors can refurbish and reposition their new acquisitions to meet the needs and desires of modern guests.

 

HOTEL EQUITY FUND INVESTMENT PARTNERS

 

Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.

 

 

Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.

 

Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.

 

Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.

 

Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:

 

  • Assist in hotel site selection and property evaluation.

 

  • Evaluate benefits of and selection from available boutique brand or a national brands.

 

 

 

  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.

 

  • Offer professional market study or appraisal recommendations.

 

  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,

 

  • FF&E procurement and interior design.

 

  • Provide construction, financing, permanent debt, refinancing and disposition roles.

 

  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.