Driven by changes in investors' perceptions of value across the Americas, the "hold" sentiment is the dominant investor strategy for the first time in five years - at 38.1%. Investors intending to hold their assets are followed closely by net buyers - representing 37.1% of respondents. Jones Lang LaSalle Hotels' recently released Hotel Investor Sentiment Survey ("HISS") highlights the shift of investors' investment intentions in this illiquid debt market environment.

"The elevated hold sentiment evidences that many owners believe the investment market will not support their pricing expectations," said Arthur Adler, managing director and CEO-Americas for Jones Lang LaSalle Hotels. "Investors would like to acquire assets for prices at which owners are not willing to sell, resulting in a classic stalemate," Adler said. The increased short term hold sentiment corresponds to the significant decline in hotel transaction volume in 2008. "And while cash flows remain relative strong, sellers are not trade out of assets unless compelled to do so due to debt maturity, fund-life issues, capital requirements and the like".

"At the same time, the ratio of buyers to sellers remains consistent with previous surveys at 5:2," said Kristina Paider, senior vice president for Jones Lang LaSalle Hotels. "The interest in buying hotels is there, the deals just aren't getting done in this illiquid debt environment. The propensity to hold assets versus sell now matches that, also at 5:2; the build sentiment has declined."

Dominant hold strategies were reported in a number of markets across the Americas. In the U.S., Tampa and Philadelphia are among the cities exhibiting a dominant hold sentiment, at 51.7% and 50.0%, respectively, followed by Denver and Atlanta. The Canadian markets surveyed also saw a jump in investors' intention to hold. The dominant hold sentiment is indicative that investors have not met their pricing and return hurdles. The lowest hold sentiment was recorded in high entry barrier markets such as New York, San Francisco and Washington, D.C.

"Investors are deploying renovation strategies now to improve their position for future trading and wait it out during this period of illiquid debt and perception gaps in pricing," said Paider. "Many investors are taking this opportunity to upgrade their assets and improve performance."

While the survey indicated that buyers continue to outnumber sellers, deals are proving more difficult and slower to complete. However, investor interest has not completely eroded. "Notwithstanding the increased hold sentiment, there are still a significant number of buyers in the market - and there are hotels on the market in the Americas that will trade in 2008," said Adler.