Hotel market expected to bounce back in 2010

Based on an annual report released by Jones Lang LaSalle Hotels, the hotel market can expect a rebound in the year 2010. This year, the global hotel investments had, predictably, recorded a slump. The figure was valued at 64 percent by some factions. Even though this sounds like bad news, based on the report, there seems to be a ray of hope.

This current financial year, the value of transactions held was reported to be close to nine billion dollars. However, in comparison, the deals made last year were valued to be as high as 24.8 billion dollars. In 2007, the figure was spectacularly higher. The deals were worth over 113 billion dollars.

The transactions for the next year are valued to be higher than this year and are pegged to between 11 and 19 billion dollars. Also rather than large portfolios, single hotel transactions will reportedly hold the upper hand.

The report also predicts that in order to consolidate their holding in the US and the UK, Asian hotel giants will take advantage of fluctuating currencies to invest into some prime properties. Wealth funds from Asia and the Middle East will also use this to their advantage by placing capital in hotels.

With the economic market continuing to be volatile, traditional lending will be out of the question. Instead, a plethora of other alternative investments such as real estate investment trusts, right issues and public floatation will be used.