But they only expect short-term performance to suffer and the majority of investors believe that the medium term outlook for Europe's hotel markets is strong according to Arthur de Haast, managing director Europe at Jones Lang LaSalle Hotels.
Investors believe occupancy and ADR are set to fall further in the short term, with London forecast to be one of the worst performers. London has suffered because of its reliance on US business. Transatlantic travel has been hit first by the general economic downturn in the USA, then by foot and mouth and then by 11 September.
Other markets investors expect to perform negatively in the short term include Edinburgh, Budapest, Birmingham, Prague, Warsaw, Brussels and Berlin. Milan is the only market to have a positive outlook in the short term.
However, while London has suffered the most, it is expected to stage a turnaround over the medium term. Paris too is also expected by investors to recover in 2002, and other hotspots are Frankfurt, Madrid, Barcelona and Rome.
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