Hoteliers in Asia are watching the latest developments in the banking world with a degree of trepidation.

One question is what will happen to hotel assets owned by Lehman Brothers in the region.

But, according to Michel Geday, managing director of MG Consultancy & Management, the bigger question is "how and to what extent will the other funds and investors, such as Morgan Stanley, Goldman Sachs, GIC, Citi, Daiwa SMBC, Aetos, Da Vinci, Starwood Capital, the lending banks who are holding debts and the real estate companies who own lots of assets, will be impacted by the "domino effect" of the financial disasters hitting the market.

Geday, who shuttles between Japan and Singapore, said that most hotels’ corporate room occupancy, meeting and restaurant business was already being substantially affected by travel bans and expense reductions by corporate clients.

The disappearance of business from the bankrupt, merged or acquired firms would only add to hoteliers’ woes, he said.

"Leisure business will also be affected as the economic situation worsens and people lose money on the stock market or are simply cautious."

However, he said, new opportunities to buy assets at reasonable price will come to the table, which means good news for opportunistic buyers.

"The question is will the banks lend? If so, how much financing 50% or more? This will give birth to a new breed of investors, cash rich individuals or private companies as well as strengthen the survivors.

"As investments slow down and savings increase, banks will be very cash rich and, at the first optimistic signs, recovery could be rather quick."