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Hospitality property prices drop by 15% in 2008

16 January 2009 by
Hospitality property prices drop by 15% in 2008

The credit crunch slowed transactional activity and reduced average property values across the pub, restaurant and hotel sectors by an average of almost 15% during 2008, research has revealed.

The Business Outlook 2009 report, by property agent Christie & Co, showed that values in the hotel sector reduced by 18.36% during 2008, whilst the pub and restaurant sectors witnessed declines of 11.63% and 14.92% respectively.

But Christie & Co stressed that, while transactional activity has slowed across the hospitality sector, it has not come to a standstill.

David Rugg, chairman of Christie & Co, said: "We are still seeing a consistent volume of buyers registering on our website and viewing businesses. In fact we arranged more viewings by more viewers in 2008 as against 2007.

"The number of businesses for sale is stable and constant. It is the lack of cash, and with it a lack of certainty, that has slowed the market confidence of both buyer and seller."

As the market slowed last year, operators selling properties became more realistic and this provides real value opportunities for cash-rich buyers in 2009, Rugg added.

UK hotel property prices could fall by as much as 20% >>

Pubs are holding property values better than other investments >>

Hotel industry has to brace itself for a rough year >>

Government promises loans of up to £20b to help small businesses >>

Foodservice bosses predict tougher trading environment in 2009 >>

View all the latest property news and analyses

By Daniel Thomas

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