Lodging investments follow certain trends and patterns, and here are the tips that can be offered for the current year 2009

Lodging Real investment is on a downhill: It is honestly believed that in lodging investment recession is going to last for at least nine months more. Large house clearance properties and hotels etc will definitely be losing its value. Moreover financing for debt will also be difficult in the days to come.

Real Estate values will continue to decline: This will continue to happen for at least another year, this includes mansions, flipped residences and hotels. High end hotels and resorts will see the largest drop in value at this point of time.

Deals will turn sour: Investors are now beginning to believe that most of the purchases that they had made are going to underperform as compared to what they had expected. This would be completely downhill compared to last year’s performance.

New investment cycles reappear: After five years, we may again be in the need for a new investment cycle, as far as hotels are concerned at least. However it is hard to tell if we have reached the bottom of the previous one already or not.

Quality of Real Estate: Not only is the value going down, but the quality and the number of real estates up for sale is also deteriorating. Many believe hotels are average or below quality.

Investments will become tricky: In terms of financing in such tricky circumstances, it is best to do all cash deals, and the consensus is that all acquisitions must be made directly form the lenders themselves.

Interest Rates will double or more: This is the supposed result at least for the next twelve months, or will in the least remain flat. The loan per value ratio will definitely decrease a result of this.

Availability of debt: The mortgage capital is under crisis. The lack of availability is one of the main concerns along with the cost and the need for other resources.

Equity return rates: These will definitely increase over the course of the next year. The perceived risks will also increase along with this.

Those under construction: Those pieces of real estate that are under construction have peaked, especially the hotels. This refers to the number of rooms under construction, and the numbers are on the rise.