• Banks to step up sales of hotels

Hotels are likely the first properties to be sold by banks seeking to repair balance sheets. Investor interest has increased due to a return in business travel. 

The volume of hotel investment sales is forecast to jump 60% to $8bn in the second half of 2010 from $5bn as more lenders put up distressed hotels for sale, according to forecasts by property brokerage Jones Lang LaSalle Hotels. That will take 2010’s total hotel investment volumes to $13bn, up nearly 45% from $9bn in 2009, but far below the peak of $25bn reached in 2008 when the booming market saw multiple highly leveraged hotel buyouts. Banks with significant holdings of hotels include Citigroup, Royal Bank of Scotland and Irish bad bank NAMA, news wires reported.


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