Speakers on Day Two of the Hotel Investment Conference Europe in London discussed navigating the various headwinds facing the hotel industry in Europe.
LONDON—Headwinds are brewing in the European hotel industry, but no one is panicking quite yet, despite supply adding to the pressure felt by hoteliers, according to attendees at Day 2 of the Hotel Investment Conference Europe.
Pressures include geopolitical tensions, the increasing complexity of deal structures, the move of new generations away from traditional hotel products and the probability of recession in various markets.
Panelists at the closing session titled “Expert views from the International Hotel Investment Council” added that boding well are the increases in demand, especially from China and India, and the wall of global capital searching for a home.
The hotel and travel industry remains healthy in Europe, panelists said, despite the recent demise of U.K. travel-package, hotel-management and airline firm Thomas Cook.
“Private equity in 2018 spent less than it did in 2017, but it is still the equivalent of the gross domestic product of Australia,” said Steffen Doyle, managing director of Credit Suisse.
“Every other travel company’s share price went upwards when Thomas Cook went down, so the industry is not in trouble, just that company is,” said Desmond Taljaard, managing director of London & Regional Hotels.
It’s important to have clear sight on the opportunities available, the right relationships to structure capital and deals, and the quickly changing demands of guests in any target market.
Quotes of the Day
“We are backed by some very sophisticated investors, and there is the pressure of needing to run fast because of the gust behind us.”—Jeremy Sanders, head of United Kingdom, OYO Hotels & Homes.
“Four or five years ago, we started talking to Marriott (International) and asking, ‘What we can do for you?’ It was the platform that we create that was very attractive to Marriott, and I think they saw that they themselves were losing a little control over their own pricing.”— Christopher Michau, VP of platform services, Expedia Group.
Tweet of the day
@PandoxAB's CEO Anders Nissen inducted into @BurbaNetwork's Hot.E Hall of Fame. Nissen told attendees that he was known as "the charming boy of the Swedish Stock Exchange." @Hotel_News_Now #hotelnews pic.twitter.com/LyykpIWk61— Terence Baker (@terencebakerhnn) September 25, 2019