According to the report, attitudes toward trends in valuation,financing, tourism and restructuring are slowly turning positive.The first two issues may have the most immediate short-term impacton the sector, said Michael Fishbin, the global leader of thecompany's Hospitality & Leisure Practice.

"Accurately determining the value of a hotel property orportfolio remains a challenge to the industry in the wake of theglobal financial turmoil, but the sector may be nearing the peak ofcapitalization rate increases. We expect some recovery inunderwriting and a rise in transaction activity this year, asinvestors and sellers come to a consensus around value," Fishbinsaid.

The report also details that more finance options shouldre-emerge, led by public and privately-held investment groups, andthat more budding companies will consider initial public offeringsthis year. This year will also see an increase in tourism,including emerging attraction countries such as China, India andBrazil.