Late 2008 saw an increase in receivership sales led by the high profile
"Pub Boy" hotels.
Experienced Hotel Brokers knew that the increase in values would not be
sustainable. Increased bank lending ratio's and exaggerated demand for
hotels (based on Gaming potential) created an artificial marketplace
above traditional hotel values. The first recent sign of hiccups
(smoking, closure of local industries, etc.) in this dynamic hotel
industry placed strain on those highly geared hoteliers.
Recent sales have indicated that hotel values are returning to their
traditional levels and the purchasers are saying that the bankers were
now lending at traditional ratios ..... the fear is those who purchased
above this level or extended their loans - how are they now managed to
bring their properties into line with the accepted "norms"?