For the full year, the number of hotel sales slipped to 343transactions compared with 390 transactions in 2006, but Reay tellsGlobeSt.com that the number of sales for the first part of the yearin 2007 was close to the number for the first part of 2006. Duringthe last quarter of 2007, however, the number of sales plunged 50%compared with the last quarter of 2006. In addition, sales havedropped by 30% in the first quarter of this year.

Reay says that the slowing number and dollar amount of salesreflects three primary factors: The difficulty in obtainingfinancing at favorable rates and terms, the slowing and in somecases decline of RevPAR growth, and the "disconnect between buyersand sellers on price expectations."

Of those three factors, the biggest one right now is thedifference between buyer and seller expectations, Reay says.Sellers today are turning down offers because they had higheroffers for their properties last year, not realizing or wanting toadmit that they can't get the same prices this year.