Outlook Brightens for European Hotel Industry - Deloitte UK
Reports
Private Equity Fund Of Funds After a tumultuous year, the hotel industry has reached the
bottom of the cycle and market conditions are set to improve,
according to experts speaking at the 15th Annual European Hotel
Investment Conference held by Deloitte today in London. The
recovery in hotel performance is expected to lead to increased
investment activity within the sector, led by the private equity
community and financial institutions.
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Curve Equity Exposed Fund The optimistic sentiment comes after a pre-conference poll of
240 hotel industry executives by Deloitte and TNS Hospitality and
Leisure revealed that 53% of respondents expected London hotel
revenues to return to the record highs of 2000 within three years,
with developers and operators the most optimistic. Over 92% of
respondents believed transatlantic travel would recover within the
same time, with a significant majority of those surveyed believing
the recovery would come following the return of consumer
confidence.
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Equity Income Funds Marvin Rust, hospitality managing partner at Deloitte and
conference chair, commented: "The hotel industry has suffered a
series of major shocks, with war and SARS this year compounding the
difficulties faced in 2001. However, the hotel industry has
demonstrated before an ability to bounce back after difficult
trading conditions. With consumer confidence showing signs of
returning and hotel performance already starting to improve in the
US and UK, the industry is on track to recover within a three-year
timeframe, providing it suffers no further jolts.
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Capital Casebook Equity "The predicted upturn in hotel performance is encouraging
investment activity. Indeed more London based assets will probably
change hands in 2003 than in almost any other year, with trade
buyers joining the financial institutions and private equity
players in the action."
Noting Dempsey' year career in the hotel industry and corporate and financial management, Choice President and Chief Executive Officer William R. "This is a coup for Choice. Don Dempsey has an extraordinary track record in multifunctional roles within the hotel industry and in building equity for both franchisees and shareholders in various cycles of the hotel industry.
Private Investment In Public Nick van Marken, the partner responsible for hospitality
advisory services at Deloitte, noted that despite economic
volatility and challenging market conditions, investment in the
European hotel sector is set for record levels in 2003: "There is
clear evidence of a recovery being priced into recent transactions,
with no evidence of discounting. Several recent single asset sales
have set new records and there has been strong competition for
portfolios, notably in the budget/economy sector. Buyers are
diverse and include private equity, high net worth individuals, and
institutions. Southern Europe and the UK have been a particular
focus."
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Equity Mutual Funds Other key survey findings:
Birmingham Contact Equity 57% of respondents believe that hotel operators will
increasingly split management from property ownership.
78% of respondents believe that there will be more public to
private transactions than flotations.
58% of respondents think that a stronger Euro will encourage more
Europeans to travel outside the Euro area.
46% of respondents believe that the high-spending/rate insensitive
business traveller will return.
Private Equity Investment Firm Www.deloitte.com/uk/hotelinvestmentconference
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