Hotels continue to be viewed as a priority real estate market, but the number of transactions in the Gulf countries has stagnated, according to International Investment.

Experts note that the issue lies in pricing rather than forced sell-offs. Hotel owners have not found themselves in a situation where they need to urgently sell assets to service their debt. Properties put on the market before the regional conflict remain unsold primarily due to a gap in valuation expectations.

At the same time, a fire sale is not necessary to restore liquidity. First, hotel revenue and average daily rates (ADR) continue to recover, meaning that previous asset valuations are once again becoming economically justified. Second, owners are gradually lowering their expectations, slowly bringing prices closer to market demands. The primary risk in this situation is identified as the high cost of market entry. If rates and margins recover, part of the current valuation gap will vanish without a noticeable drop in prices.