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.
“The first half of 2009 will be equally idle as late-2008, but the second half of 2009 will likely see more activity – a shake-out of investment portfolios as some investors will be forced to sell or make strategic portfolio decisions to dispose of assets even while pricing remains weak,” he told the Financial Times.
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By Daniel Thomas
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