Hotel buyers need to take “a more positive view” of the market even if it means paying a premium against the current trading position, according to a report by Christie & Co.
Head of London hotels Graham Dodd said: “The alternative is to wait until trade returns to previous levels, but with the pent-up demand in the market the buyer is likely to face stiff competition from other buyers and runs the risk of losing a deal.”
Christies predicts that hotel operators are likely to recover towards the end of the year, and the economic impact of 11 September will remain a short-term ‘blip’.
Dodd said that Christies had seen a record number of applicants viewing London hotels in the last week of February but added: “Deal making is significantly inhibited by a critical lack of supply to the market.
“Whilst significant confidence will not return overnight, there are clear signs that it is improving both in respect of trade and the willingness of buyers to make decisions.”
EGi News 07/03/02
