Global hotel transactions down by two thirds in value
The value of global hotel investment deals will have fallen by almost two thirds this year but the market will begin to pick up in 2010, according to Jones Lang LaSalle Hotels.
The property's agent's annual review of transactions shows that just $9b (£5.5b) will have changed hands this year, a drop of 64% compared to last year's $28.4b (£17.5b) and a massive drop on 2007, which saw $113b (£69.5b) worth of hotel deals.
JLL Hotels forecasts that the hotel transactions market will be worth between $11b (£6.75b) and $13b (£8b) next year, largely driven by single hotel assets of up to $100m (£61.5b).
The deals in 2010 will mostly be locally or regionally based, with many sales driven by banks, according to Arthur de Haast, chief executive of JLL Hotels.
"As more assets are placed under the control of banks, we expect more of the upcoming sales activity to be driven by banks, which will provide a lift to hotel transaction volumes," he said.
"Particularly in the US and Europe, banks are reviewing their loan portfolios and determining their next steps. But the number of distressed assets on the market will not come in form of a tidal wave."
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By Daniel Thomas
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