EMEA Hotel Investment Market39. EHMA Meeting Vienna

update

Christoph HärleCEO Continental Europe

30. March 2012

Agenda

2

Jones Lang LaSalle Hotels

3 Hotel Market EMEA

1

Selected Mandates EMEA2

4 Hotel Investment Market EMEA

5 Future Outlook

3

Part I

Jones Lang LaSalle Hotels

Jones Lang LaSalle Hotels

� Global team with over 265 hotel specialists with 42 offices in 20 countries, of which 13 offices located in EMEA

� One-Stop-Shop for consulting services:

� Acquisition and financing

� Valuations

� Investment sales

� Asset management

� Operator Selection

In the last five years we completed nearly 4,000 advisory and

valuation assignments and more sale, purchase and financing

transactions than any other hotels real estate firm in the world,

worth over $30 billion

Company Profile

4

Moscow

Istanbul

Dubai

Glasgow

Frankfurt

MunichParis

Madrid

BarcelonaRome

Milano

London

Dusseldorf

Lyon

5

Part II

Selected Mandates EMEA

6

Schwabinger Tor Project, MunichAdvisory, Operator Selection

2012

Ritz Carlton, MoscowInvestment Sales

W, LondonInvestment Sales

2011

Park Hyatt am Hof, ViennaOperator Selection

2011

2011

Selected MandatesJones Lang LaSalle Hotels EMEA

Radisson Blu, FrankfurtInvestment Sales

2011

Grand Hotel, ViennaValuation

Hotel Le Richemont, GenevaInvestment Sales

2010

Hotel Le Crillon, ParisInvestment Sales

2010

2010

7

Part III

Hotel Market EMEA

Mixed expectations for Europe’s hotel industry

Source: www.thospitalitynet.org, 21.03.2012

WTTC foreca

sts milestone

year for trave

l and tourism

in 2012

Source: Hotel

smag, 08.03.201

2

CEE region sees biggest growth in hotel nightsSource: www.eurobuildcee.com, 10.02.2012

Debt restructuring to drive hotel sales

Source: JLL Hotels, 01.02.2012

Travel and to

urism to bo

ost UK econo

my in 2012

Source: www

.caterersearc

h.com, 02.03

.2012

JLL Hotels report forecasts stable activ

ity in EMEA

Source: JLL Hotels, 02.03.2012

Europe tourism beats expectations

Source: www.hotelanalyst.co.uk, 09.11..2011

Hotel sector to remain flat

in 2012

Source: www.propertyeu.inf

o, 05.03.2012

Austrian hotel investment rises, Vienna in focus Source: www.pie-mag.com, 27.02.2012

Russia Identified as One of the Key Hotel Markets in 2012

Source: www.ehotelier.com, 07.03.2012

Hotel Market More Positive about 2012, B

ut With Strong Reservations

Source: www.ehotelier.com, 19.03.2012

Spring Season Shows

Rise in European Hot

el Prices

Source: www.trivago.co

.uk, 16.03.2012

Hotel Market EMEAHeadlines

8

9

Hotel Market EMEARevPAR* Development

*4- and 5-star segment

Sources: STR Global, Jones Lang LaSalle Hotels

10

Hotel Market EMEASupply Pipeline 2010 base to 2013F

Source: Jones Lang LaSalle Hotels

11

Part IV

Hotel Investment Market EMEA

12

Hotel Investment Market EMEASingle Asset* and Portfolio Transaction Volume 2000-2012F

*includes only transactions above €10 million

Source: Jones Lang LaSalle Hotels

13

Hotel Investment Market EMEABuyer / Seller Net Shift Analysis 2010/2011

Source: Jones Lang LaSalle Hotels

21%

38%56%

92%

100%

15%

26%

6%4%

17%

North America

Asia

Australasia

Africa

Middle East

Latin America

Global

Europe

2%

17%

8%

65%

12%92%

4%

100%

2%

Region Domestic Intraregional

North America 91% 1%

Latin America 56% 0%

Europe 42% 23%

Middle East 100% 0%

Africa 100% 0%

Asia 64% 28%

Australasia 37% 1%

Hotel Investment Market EMEAGlobal Capital Flows 2011

14

Source: Jones Lang LaSalle Hotels

15

Part V

Future Outlook

16

Future OutlookTrends to watch

The Chedi, Andermatt

St. Regis, New York

Branded Budget Hotels

Branded Residences

W, Sentosa Island Singapore

17

Future OutlookTrends to watch

Smart Phones and RFID

Sustainability

Sellers

•Receivership deals will drive 2012 deal landscape

•Biggest sellers in 2012 are likely to be bank induced as a result of debt maturities and

refinancing challenges

•Lack of certainty around debt availability gives a strong competitive advantage to any sponsor

prepared to fund deals all-equity

18

Future OutlookHotel Buyer/Seller of the future

Buyers

•Private equity players expected to remain ambitious

•Sovereign Wealth Funds and private HNWI who take a long term view are expected to make

strategic acquisitions globally

•Alternative sources of debt emerging, particularly in Europe (SWF, Insurance Groups)

Focus on flexibility

•Brands deploy capital to secure brand presence in certain markets: increased merger and

acquisition activity is expected as several hotel management companies actively look for

acquisition targets

•Altering contract types: Management Agreemets vs. Lease Agreements vs. Owner‘s

Agreements

19

Future OutlookCapital Flows and Flexibility

Capital flows

•Cross border capital will continue to flow, and possibly accelerate

•Significant amount of equity capital continues to be available

•Mature overleveraged markets expected to focus on workout

•Emerging markets remain the global growth engine, driven by domestic demand

Thank you

COPYRIGHT © JONES LANG LASALLE IP, INC. 2011