JLL, a leading professional services firm that specializes in real estate and investment management, 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 represented the largest ever hotel transaction by deal volume in Romania and among the largest recorded in Central Eastern Europe.
The hotel complex, which is located in central Bucharest along 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 around 7,500 sqm of retail space. Collectively, they offer guests 763 guestrooms, 8 food & beverage outlets and 15 conference venues spanning 2,000 sqm.
Andrei Vacaru, Associate Director at Cpaital Markets JLL Romania, said: “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”.
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.