JLL has advised Elbit Imaging Ltd, a NASDAQ listed company, on the sale of the Radisson hospitality complex in Bucharest to a joint venture between two international investment funds. The sale represents the largest ever hotel transaction by deal volume in Romania and among the largest recorded in Central Eastern Europe.
Commenting on sale, Andrei Văcaru, Associate Director, Capital Markets JLL Romania: "This is an exciting transaction for Romania as it not only demonstrates institutional interest in the hotel market, but it shows there is liquidity for large, core real estate assets in the country. Bucharest, the largest city in CEE with an excellent economic dynamics is starting to get recognition and will attract capital even when it comes to large single asset deals."
The hotel complex which occupies a prominent location in central Bucharest along the Calea Victoriei comprises 86,000 sqm of built area which includes the Radisson Blu Hotel Bucharest, the recently developed Park Inn by Radisson Bucharest and approximately 7,500 sqm of retail space. The contemporary, upscale Radisson Blu has been the market leader for a number of years while the Park Inn, which opened in September 2015, has quickly become one of the most popular hotels in Bucharest. Collectively they offer guests 763 guestrooms, 8 food & beverage outlets and 15 conference venues spanning 2,000 sqm.
Positive hotel trading fundamentals and attractive supply/demand characteristics have led to greater liquidity in the CEE region over the past 18 months, as investors recognize its growth potential. Romania's economy expanded by 7.0% in the first nine months of this year, and is expected to be Europe's fastest growing economy in 2017.
Commenting on the sale, Christopher Exler, Vice President in JLL's Hotels & Hospitality Group, said: "This transaction is a significant milestone for our client and represents a watershed moment for the region, particularly Romania and the future of its hotel real estate market. The potential is enormous and the tools to realize it are already in place, as can be validated by the success of this sale."
