A long, slow haul back
Europe's real estate industry is cautiously picking itself up and surveying the road ahead. However, in this year's Emerging Trends in Real Estate Europe survey hotels dropped from second place last year to twelfth place in 2010, to sit firmly at the bottom of the table.
In the survey existing hotel performance expectations are generally rated 'modestly poor', while new hotel acquisitions are perceived to have slightly better prospects and are considered 'fair'.
Such downbeat views are confirmed by the fact that, according to leading hotel sector real estate participants, hotel transaction volumes in 2009 sunk to their lowest annual level since the 1990’s, as investors retreated and debt markets remained illiquid.