The current climate in Europe has produced a virtually nonexistent lending environment in the hotel space…the story for borrowers in Europe, whether they are searching for acquisitions or building new hotels, is the same as it is in other regions: You better have a strong track record and spectacular balance sheet with plenty of equity to invest.

Next to the lack of available financing, the lack of a fully functioning, transparent transaction market in Europe has created an awkward situation, van Marken said. Values are tough to determine because no deals involving comparable hotels have been finalized for buyers and sellers to be able to gauge pricing levels.

Photo Credit: The Hotel Rott in Prague. Yortw / Flickr.com