The U.S.-Iran war hasn’t forced Gulf hotel owners to sell. But it has stalled deals as buyers and sellers can’t agree on price now that pre-war valuations no longer hold.
“Hotels that were on the market before the conflict remain unsold because sellers and buyers still disagree on price, not because owners are in financial trouble,” said James Wrenn, partner and head of hotel and leisure at Knight Frank.
Sellers are becoming “increasingly pragmatic in their pricing expectations” to reflect the time hotels will need to recover, Wrenn said.
Investors are redoing their valuations because most were completed before the war, and their demand and occupancy forecasts no longer hold, said Ali Siddiqui, research manager at consultancy Cavendish Maxwell. “I wouldn’t say it’s a pause, but more of a wait-and-see approach where they’re trying to see how much the market picks up in Q4.”
There were only five disclosed deals from
Source: skift.com
