Emerging markets will make a sustained challenge to established hotel destinations this year, property agent Jones Lang LaSalle Hotels predicted today.
At the launch of its Hotel Investment Outlook 2008, chief executive Mark Wynne-Smith said there would be a surge of transactions in the Middle-East, Central and Eastern Europe, particular Russia.
"We've seen that the Middle-East is making a serious bid for the tourist dollar by tapping into the Northern European market," he said.
"Turkey has ambitious tourism development plans, as do Tunisia, Algeria and Morocco. Likewise, Russia is developing market with a large number of projects in the pipeline, said Wynne-Smith."
Jones Lang LaSalle joined with property industry peers in predicting that the hotel sector would weather any global slowdown much better than the residential property market and bounce back quicker.
"Hotels have been a favoured investment for less leveraged buyers such as sovereign wealth funds, high net worth individuals and Real Estate Investment Trusts, who we expect will take advantage of the changed market conditions."
Global hotel deals soared for the fifth year in a row in 2007 hitting £56.7b despite the credit crisis of the second half of the year.
By Chris Druce
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