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Case Study

Venice Lido and Asolo Portfolio

Venice Lido and Asolo PortfolioSale on behalf of Starwood Hotels and Resorts Worldwide Inc. - 2008

The Venice Lido and Asolo Portfolio comprises hotels and ancillary real estate assets located on the Venice Lido and in the town of Asolo, approximately 60km from Venice. Starwood Hotels & Resorts approached Jones Lang LaSalle Hotels for an initial strategic review and disposal strategy for the portfolio.

The Westin Excelsior and the Hotel Des Bains with 196 and 191 rooms respectively, are the two most celebrated hotels, both enjoying a long-standing reputation among celebrities and dignitaries alike. These properties enjoy prime beachfront sites.

The Westin Excelsior annually hosts the famous Venice Film Festival whilst the Des Bains is renowned for being the movie set for various international movies, such as "Death in Venice" and "The English Patient". The Villa Cipriani is a luxury 31-guestroom villa in the heart of Asolo, a picturesque and historic hill town of Veneto. Additionally, the portfolio comprises several non-hotel assets ancillary to the hotel business, including a large portion of the beach on the Venice Lido where cabanas are rented seasonally to hotel guests and locals.

Jones Lang LaSalle Hotels undertook a full market assessment of the portfolio to ascertain the highest possible value.  The value of the hotels on a per square meter basis, assuming local residential/commercial real estate values, was estimated to be significantly higher than the value based on the hotel operations.

The Jones Lang LaSalle Hotels Milan and London teams conducted a full-market campaign towards a wide range of investors, soliciting strong interest on a global basis. We marketed the Starwood assets both as a portfolio as well as various custom packages in order to evaluate potential interest from hotel companies, real estate developers, funds and HNWI.  A number of local real estate agents were retained by Jones Lang LaSalle Hotels to market the non-hotel assets in the local Venetian market.

We handled 2 rounds of offers for the entire and part of the portfolio, with more than 14 relevant portfolio offers received.  We received about 100 individual offers for the single assets coming from the local market, significantly increasing the opportunities to select the most attractive offers. Two main bidders were selected for the final round with attractive offers significantly above the expected price. EstCapital, a REIT specialised in the Venice market, was selected to deal exclusively and then proceeded to fully complete the transaction for a value in excess of €150 million.

 

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