Reports show that hotel transactions in the UK during the first three quarters of 2008 have declined by 69%. The credit crunch has directly impacted the hotel transactional market and commercial property transactions within the hotelier market are notably down. One of the biggest transactions so far this year has been the sale of a 50% stake in the Jurys Inn Chain, showing that during these hard times it is the budget sector that continues to generate interest from commercial property investors, especially those from the Middle East. This is backed up by news from Travelodge who are seeing a continuous shift of customers moving towards budget accommodation, especially amongst business travellers. This has led them to buy several more properties and to plan a joint venture with budget supermarket chain Aldi.
Good economic conditions and favourable credit options meant that 2005 to mid 2007 were extremely good years for the hotel transactional market » Read more: UK Hoteliers Facing Commercial Property Decline