This page contains a Flash digital edition of a book.
46 | IHIF CONFERENCE WORDS | Geoff Hadwick


HOTEL REPORT Lobby briefi ng


More than 1,600 people from 62 countries came together last month at the 14th International Hotel Investment Forum (IHIF) in Berlin and OPP was on hand to hear about where the hospitality industry thinks it is going next; what it wants in property terms from international developers and agents; and how the bankers are looking at new ideas for assessing future lending to the hospitality sector.


his year’s IHIF event “shed light on many key issues,” said the organisers Questex Media and Bench Events, “including future brand strategies and how global economic stimuli have affected the industry.”


T


But there were few bigger themes, in truth, than property ... or, to be more accurate, the lack of it. “The consensus from large hotel companies such as Starwood, Hilton and Accor was that they will be going “asset light” in coming years,” concluded the show hosts.


In other words, the global hospitality wants you, the overseas property industry, to build, run and maintain its physical infrastructure. The hotel bosses of tomorrow are going to be much more about leveraging the brand, franchising,


intellectual property rights, service level agreements and overseeing a pre- determined level of experience. And they want to do it all in


properties and resorts funded, built, maintained, managed and refurbished (when necessary) by someone else. A signifi cant number of them don’t


seem to want to have physical property on the books anymore. It is a worldwide phenomenon too. This year’s IHIF showcased a new series of country-specifi c forums that delivered strategic information about exceptional investment opportunities for the hotel industry in countries as diverse as Russia, Ukraine, North Africa, Spain, Brazil, Columbia and Argentina.


The hotel owner’s roadmap Ben Godon, the managing director of


Vision Asset Management, led a session at IHIF on the ideal roadmap for a hotel owner of the future. And his advice was clear … be careful.


“Think through the key moments in each phase of building a hotel,” he told the audience. “Because there are many pitfalls along the way and it is worth thinking and planning hard to work out how to avoid them. Ask yourself if the project has to go in a chronological sequence … or are there some bits than can wait?” Take it step by step and be very clear about what your success criteria are, he advised. Make sure you are not trying


“The hospitality industry wants you to build, run and maintain its physical infrastructure”


to achieve the impossible.


The real problem for the overseas property sector and the way in which it serves the needs of the global hotel industry is its passion said Omer Isvan of Servotel Corporation. “Too many developers fall in love with an idea. They will often have a vision for something in what they believe is a beautiful setting. But is the concept right? Is the location right? Will people travel there?” A proper feasibility plan is essential at this stage agreed the roadmap panel. By all means have the vision. But test it to death. Research every aspect of your plan.


Networking | advice and high quality debates were everywhere at this year’s IHIF


“30% to 35% of all the feasibility studies I have been involved with say no, don’t build here,” warns Isvan. “And it is often not a case of the wrong concept, it is often a case of


IHIF is the annual meeting point for the senior leaders of the European hospitality industry. For more info ... go to www.berlinconference.com


don’t build anything here at all. I don’t want to holiday here. Period.” A positive piece of research will help get funding later of course, but test the fundamentals fi rst. And use the best possible independent research fi rms. Step two, says Isvan, “is to avoid the glory of it all. Be cold and detached. Don’t assume anything. Get all your costings in place and don’t buy or build anything until you have a watertight, realistic plan with a brand operator in mind who has already shown interest.” For Peter Norman of Hyatt International it pays to be patient too. Developing property for the hospitality industry is “never a smooth journey,” he told the conference.


“Find a good advisor who has done it before. It is all down to experience. Ask some searching questions. What have they done in the market before? Have they worked in that location before? Do they know your product? Are they willing to listen?” Yes, that is essential, agreed Marc Dardenne of Emaar Hospitality Group. “Ego often gets in the way in the hotel sector. Don’t get carried away. Listen and think. Do fi ve or six feasibility studies if necessary. Get it right. And try to be ahead of what the market wants. Make sure what you build now is what people will want in 5 years’ time.” The way in which a hotel is


designed is important too, of course. There are always architectural competitions agreed the panel if you want to really make a statement, but


www.opp.org.uk | APRIL 2011


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68