The property values of hotels, restaurants and pubs all suffered heavy falls during 2009, while the emergence of new budget health club chains gave the fitness industry a much-needed lift.

According to the Business Outlook report, published by leisure property specialist Christie + Co, the average hotel values decline by 34 per cent during 2009, while the value of restaurant property fell by 30 per cent and pubs by 29 per cent.

Jeremy Hill, head of hotels at Christie + Co, said most completed property deals in the hotel sector involved companies that were in administration or had to offload property to bump up cash flow.

"Distressed cases made up the majority of transactional activity that took place during the year", he said.

"The number of deals completed were hampered by the lack of available debt in the marketplace - as well as widely different price expectations between buyers and sellers."

Late night leisure is another sector that has been battered by the recession - specifically by the fall in consumer spending and the rise in youth unemployment. These factors, combined with the ongoing fallout from the smoking ban and other legislative changes all had a negative effect on night club operations.

A number of established late night operators, such as Premium Bars and Restaurants, Absolute Leisure and Regent Inns, were forced to enter administration during 2009.

Jon Patrick, head of leisure at Christie + Co, said: "The industry continued to suffer a hangover from the 'me too' years, where operators flooded to the high street in order to capture a slot on the drinking circuit - at almost any price.

"High street rental levels that are based on floor areas, or over-ambitious sale and leaseback deals, have proved inflexible and left many retailers struggling to move their businesses forward."

One sector of leisure, however, has remained resilient despite the tough economic conditions.

Over the last 12 months, the fitness sector has seen the development of a number of budget concepts, providing dry health clubs with a 24-hour trading profile.

Most offer memberships between £10-20 per month, fitting in well with consumers looking to cut their spending.

New chains entering the market during 2009 included The Gym Group, Fitness4Less, Fitness4all and Nuyuu Fitness.

John Patrick, head of leisure at Christie + CO, said: "Compared to some leisure sectors, personal health and wellness is seen as an enduring value, particularly during an economic downturn. It will be interesting to see whether the market continues to polarise, as club users seek both value and high standards of facility, equipment and service in the future.

"Compared to some leisure sectors, personal health and wellness is seen as an enduring value, particularly during an economic downturn. It will be interesting to see whether the market continues to polarise, as club users seek both value and high standards of facility, equipment and service in the future."