Market update

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"?