Hotel values across Europe dipped by 4% last year, according to the latest edition of consultant HVS International's Hotel Valuation Index.
The index, which monitors the value of four- and five-star hotels in 28 European cities, said that the decline could be attributed to the war in Iraq, unfavourable global economic conditions, the outbreak of Sars and the continued threat of terrorism.
Only Moscow, Vienna, Dublin and Prague recorded increases in hotel values last year, going up by 9%, 6.5%, 2% and 2% respectively.
HVS said that it expected some growth in hotel values this year but that the continued threat of terrorism would affect values in some cities for the next six to 12 months.