The FINANCIAL — 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 (CEE).
The hotel complex which occupies a prominent location in central Bucharest along the Calea Victoriei comprises 86,000 sq. m. of built area which includes the Radisson Blu Hotel Bucharest, the recently developed Park Inn by Radisson Bucharest and approximately 7,500 sq. m. 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, eight food & beverage outlets and 15 conference venues spanning 2,000 sq. m.
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 recognise 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, according to JLL.
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 realise it are already in place, as can be validated by the success of this sale.”