The first quarter of 2009 saw the value of global hotel deals fall to just $1.9b (£1.25m), marking the lowest level since the first quarter of 2002, research has revealed.
The report, by property agent Jones Lang LaSalle Hotels, revealed that Europe, the Middle East and Africa was the most active market in this quarter, recording approximately $813m (£539m) or 42% of all hotel sales within the period.
The Americas recorded only $556m (£369m) of hotel sales in comparison, followed closely by Asia Pacific at $531m (£352m).
Only 20% of the hotel deals agreed during this period were worth more than $100m (£66.3m), with the average size of remaining transaction coming in at just under $35m (£23m).
But Jones Lang LaSalle Hotels said the market may have bottomed out as the fall from the final quarter of 2008 was only 2.6% - a contrast to the steep quarter-on-quarter declines recorded in 2008.
Arthur de Haast, global chief executive of Jones Lang LaSalle Hotels, said: “This suggests the global hotel transactions market could be hitting a bottom, laying the groundwork for increased activity towards the later part of 2009 when more distressed assets are expected to come to market.”
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By Daniel Thomas
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