Hotel transaction activity across the UK was down significantly in the second half of 2012, according to Deloitte.

Consistent with the first half of the year single asset transactions dominated and London remained the focus for most investors.

Transaction activity across the UK totalled around £300m in the second half of 2012, compared with £1bn for the first half, and £2.5bn for the same period last year.

The most notable transaction was the acquisition of the Cavendish Hotel by the Ascot Group for £159m.

Deloitte’s global head of hospitality Nick van Marken said in 2013 the market will favour cash buyers or those not totally reliant on bank financing to close a deal.

“There are a number of portfolio and single asset transactions that are currently being marketed. As a result, activity is expected to pick-up.

“That said, difficulties in accessing debt funding and the continued disparity between buyer and seller in terms of price expectation mean disposal processes are likely to continue to be longer and more difficult to complete.”