Deals in the UK leisure sector were down 90% in value and 25% in volume terms in the first half of this year compared to the first half of 2007, according to a study by PKF.
In its report, Deal Drivers UK, PKF found that the budget sector accounted for half of the hotel deals that did occur.
The biggest hotel deal, according to the data provided by Mergemarket, was Paten & Co, bought by BDL Select for £45m in May. The next biggest hotel deal was Hallmark's swoop on three properties for £25m in April.
The biggest leisure deal was the £345m management buyout of Pret a Manger and number two was Ladbroke's £118m purchase of Eastwood Bookmakers. The third biggest was Richard Caring £105m investment in Soho House, a business that offers some hotel rooms within its private members' clubs.
The wider all industries merger and acquisition market was still dominant in Western Europe, accounting for around 26% of Europe's overall deal value and volume. In fact, the first half had a deal value of £159.7bn against £167bn a year earlier. However, this year's figures are distorted by the £107bn approach for Rio Tinto by BHP Billiton.