Sales of US hotels are expected to fall as much as 50% this year because the credit squeeze has reshaped investors’ ability to purchase real estate, says a JLL report. Financial Times
The value of hotel property sales is expected to fall to $23bn-$26bn, down from a record $45bn in 2007, as deals become more difficult. The expected slide in sales would more than undo last year’s 38% rise.
Deals for large portfolios of hotel property made up 71% of sales volume last year.
But the commercial mortgage-backed securities market collapse and the higher cost of borrowing for commercial property buyers because of the credit market turmoil have made purchases of expensive assets and large portfolios of property far more difficult.