The number of transactions in the global hotel industry will increase in 2010, but at a much lower level than anticipated, according to asset management experts.
Vision Hospitality Management CEO Clive Hillier said: “The number of transactions in the hotel industry will, in our opinion, still disappoint those that are sitting on the sidelines looking for great bargains. We believe that active asset management now allows investors and lenders to gain more confidence in dealing with situations on a two- to three-year time span rather than resorting to short term fixes. In essence, therefore, we do expect to see more transactions in 2010 but still at a very much lower level than people might anticipate”.
Wasl Hospitality general manager St John Kelliher said that he was aware of a limited amount of transactions occuring.
“Although there are many opportunities for investors in the tourism and leisure sectors, we are yet to witness a great amount of transactions; this is also due to the unavailability of funding. My opinion is that this will continue well into 2011,” forecast Kelliher.
Partner at Hamilton Hotel Partners Frank Croston added: “We would expect global transaction volumes to be slightly up on 2009 levels, but not significantly so. In the Middle East, we would expect to see moderate transaction activity — either in cases of particular distress or in some of the markets that have not been negatively impacted (relatively) over the last 18 months”.
According to Jones Lang LaSalle Hotels (JLLH), for the second year in succession, hotel transaction volumes across Europe, Middle East and Africa experienced a downward trend falling 61% to €3.1 billion in 2009 representing less than a fifth of the peak volume achieved in 2007 (€21.4 billion).
Looking ahead to 2010, JLLH expects transacted prices to reflect market conditions more closely and realise the falls in value expected during 2009.
In the first two months of 2010, the firm recorded hotel transcation value in EMEA of €700 million.
Advertisement
Search our database of more than 2,700 industry companies
