Global Hospitality Report (January 23, 2018)

Impact of Countervailing Forces on Hotel Values and Cap Rates 
By Suzanne Mellen, MAI, CRE, FRICS, ISHC

After more than five years of relative stability, new factors are at play in the hotel investment market that will affect hotel capitalization rates and values in a changing economic landscape.

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Market Pulse: Downtown Los Angeles 
By Greg Mendell and Jessica White

A population boom and new development money in Downtown Los Angeles have led to a substantial increase in the hotel supply pipeline, with some new, large-scale, mixed-use projects contributing to the already dynamic renaissance of DTLA.

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HVS Hodges Ward Elliott Acts on Sale of Waldorf Astoria Edinburgh to Twenty 14 Holdings 

The 241-room iconic Scottish luxury hotel, the Waldorf Astoria Edinburgh –The Caledonian – has been sold for £85 million, to Abu Dhabi based Twenty14 Holdings. The transaction represents the largest single asset hotel sale of the last 12 months in Scotland. Twenty14 Holdings plans to add a further 50 rooms to the 241-room iconic luxury hotel, which increases the new owner’s hotel portfolio to six (two in the UK, two in the Middle East and two in India).  HVS Hodges Ward Elliott and JLL jointly acted as the agent for the Seller. 
Ovolo Hotels to expand its portfolio in Australia with new hotels in Brisbane and Canberra 

Hong Kong-based boutique hospitality brand Ovolo Hotels (“Ovolo”) has expanded its portfolio in Australia with the acquisition of the 102-key Emporium Hotel in Brisbane for A$40 million and a long-term leasehold of the 68-key Hotel Hotel in Canberra. Under a long-term leasehold agreement with Canberra-based Molonglo Group, Ovolo has acquired the business, operations, and staff at the hotel. The rebranding will come to effect on 1 March 2018, with just minor changes to the existing hotel. Emporium Hotel is Ovolo’s second addition to Brisbane in just 12 months, following the purchase of the 50-key New Inchcolm Hotel & Suites (to be named Ovolo Inchcolm Brisbane) for A$16.5 million last June. Upon completion of the acquisition of the Emporium Hotel in April 2018, Ovolo’s Australia hotel portfolio will count 6 properties, as compared to three at the beginning of 2017.

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