KPMG has revealed that the number of merger and acquisition (M&A) deals reached a new 10-year low during 2009 as the recession had a sharp impact on the hotel sector.
Richard Hathaway, head of travel, leisure and tourism at the business advisory firm, said that operators and investors are still being affected by challenges in finding available finance.
Hathaway said: "Funding is available for the right deals, but with the banks happy to sit on hotel assets in the hope of a property rebound, prospective investors will need to develop creative deals that work for them, the banks and other lenders, if they are to entice them in to undertaking deals now."
According to a recent study, some of the world's leading hotel groups expect to require US$70bn (£46.2bn, €51.2bn) of refinancing in the next five years; US$12bn (£7.9bn, €8.8bn) this year alone.
Hathaway added: "For potential deals to become real ones, there needs to be a reason for current holders of assets to sell at values that might not meet their current objectives."
