The number of hotel investment deals fell dramatically in 2008 and will continue on a downward spiral this year, according to a new report from Jones Lang LaSalle (JLL).
The property agent's 2008 Hotel Investment Outlook revealed that global hotel transactions totalled $23b (£16.5b) last year, an 80% drop on 2007, when a record $113b (£82b) worth of deals were struck.
The US market was particularly badly hit, seeing just $8.2b (£5.9b) in deals, compared to $45b (£32.5b) in 2008.
Europe, the Middle East and Africa saw £12b of deals, a drop of 58% on 2007, while only $2.5b (£1.8b) of deals were agreed in the Asia-Pacific region.
This year will be even worse, with global transactions likely to slip to only $19b (£13.75b), according to Arthur de Haast, chief executive of JLL Hotels.
By Daniel Thomas
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