Hotel Values Off 34% From Peak

The full impact of the recession continued to hamper transactional activity and reduce average property values across the hotel, pub, restaurant, leisure, care and retail sectors during 2009, according to Christie + Co’s Business Outlook 2010 publication.

The report shows that values in the hotel sector reduced by 19.5% during 2009, whilst the pub and restaurant sectors witnessed declines of 20.1% and 18.1% respectively. The care sector reported a fall in values of 11%, whilst the retail sector experienced a reduction of 9.8% in average values.

For the first time, the publication also reported the movement in average property values from the peak of each respective market. Hotel values experienced a c.34% drop since the hotel market’s peak in Q3 2007, whilst pub values fell around 29% from the pub market’s fourth quarter peak in the same year. Restaurant values, which peaked in Q1 2008, fell c.30%, with care sector values falling around 26% since the market’s peak in the third quarter of 2007. Finally, retail values saw a c.16% fall after its market peaked in the second quarter of 2007.  Click here for full story…..