UK hotel transactions declined 68% in 2008, mirroring a downward trend across Europe, the Middle East and Africa, according to a new report.
According to property agent Jones Lang LaSalle Hotels, transaction volumes in the UK totalled £1.6bn in 2008, 68% lower than 2007's £5.2b.
Portfolio transactions were hit particularly hard, down 81% from £ 3.8b in 2007 to just £700m, with most deals done before September.
Geographically, London properties came back to the fore, with 66% of the single asset deals done in 2008 involving properties in London.
However, Jones Lang LaSalle Hotels warned that 2009 was set to be a challenging year for the hotel market, with a further fall in transactions expected.
Portfolio activity, in particular, is expected to remain subdued during the year due to the continuing absence of available financing due to the credit crunch.
However, single asset sales may be stimulated by forced sellers.
By Gemma Sharkey
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