Big bucks for high-profile business hotels
New York, Budapest, Paris, St Andrews
A Chinese firm buys a chic Paris hotel, an Arab investor takes over a similar hotel in Budapest. Another investor puts his money in one of the oldest golf hotels in St Andrews, Scotland. And finally, Hilton sells the Waldorf Astoria hotels to a Chinese insurance company for no less than US$ 1.95 billion. Four hotel sales that prove that high-profile business hotels are increasingly targeted by investors that are looking to make ‘big bucks’.
New York
A Chinese insurance company has recently bought the Waldorf Astoria New York hotel from Hilton Worldwide for the greatest sum of money ever paid for a hotel property. The Chinese made the famous New York hotel the most expensive hotel ever sold.
The new owner, Anbang Insurance Group, has granted Hilton a management agreement to continue to operate it for the next 100 years. The new owner will launch a major renovation, restoring the property to its historic grandeur on a full city block in midtown Manhattan.
The hotel opened in its current site in Manhattan, New York in 1931 and became the flagship hotel for the luxury Waldorf Astoria brand, which is now present in 27 destinations, including Dubai and Ras Al Khaimah.
Paris
Hong Kong-based Kai Yuan Holdings purchased Paris Marriott Hotel Champs-Elysées for €433.5 million (US $553.74 million). Constructed in 1914, the five-star hotel has 192 rooms, including 25 suites. Marriott will continue to operate the property as part of a long-term management agreement.
According to JLL’s Hotels & Hospitality Group, the expert advisor that helped make the deal, it is no coincidence that the Chinese have bought the property. Executive vice president Nihat Ercan said: “This sale confirms the increasing interest from Asian capital for assets in Paris and the attractiveness of European key gateway cities for high-profile real estate investments.”
Budapest
Khalaf Ahmad Al Habtoor, the chairman of the Al Habtoor Group in the United Arab Emirates, has purchased the InterContinental Budapest. Earlier, in 2012, Al Habtoor bought Le Méridien Budapest. InterContinental Budapest has over 400 rooms and suites. It offers wonderful views of the Danube river and is located near Széchenyi Chain Bridge, the former Royal Palace and the Parliament Building. Buying the InterContinental Budapest seems to make sense. The Hungarian economy is growing at its fastest pace since 2007 and has recovered well from the recession.
Scotland
The Fairmont Hotel, a high profile St Andrews golf course hotel has been sold for $54.2 million to Kennedy Wilson Europe Real Estate. The hotel is set within 520 acres of land in St Andrews bay and has 209 rooms.
The famous hotel is run by Fairmont Hotels and Resorts under a management agreement until 2031. This may be a good investment, as the property also has two 18-hole golf courses, extensive conference facilities, two four-bed manor houses, a fitness centre and spa, as well as several food and beverage offerings.
