The value of German hotel acquisitions in the first half fell about 65 percent as buyers found it more difficult to borrow money, Jones Lang LaSalle Inc. said.
Investors bought about 170 million euros ($214 million) hotels, down from about 500 million euros a year earlier, the Chicago-based real estate brokerage said in a statement today.
“Although large individual hotels or portfolios are on the market, they haven’t yet found buyers,” Thorsten Faasch, head of hotel investments at JLL, said in the statement.
Wealthy individuals are increasingly investing along with private-equity firms and other institutions, Faasch said. “This group is less dependent on capital markets and can easily buy a hotel without outside financing,” he said.
Investments in all of 2012 will probably fall short of last year’s volume of about 1 billion euros, JLL said. German buyers made more than half of the acquisitions. Foreign investors will probably be more active in Germany as they look for stable economies to invest in, JLL said.