Everyone’s talking about development opportunities
T
he markets that we’re still getting quite
are proving the ANNA BJURSTAM a bit of business from
most resilient to
Concepts director,
existing properties that
the economic downturn, want to upgrade their
in terms of hotel and spa R.altaison d’Etre facilities. We’re also getting
development, are those business from pre-studies
that are still emerging; the (investment analysis plus
newer the market, it seems the less it is Another region that remains strong is spa concept and footprint) for developers
af_f ected. In Africa, for example, there the Middle East; this is where most of looking at investing in spas or hotels with
are good opportunities in stable develop- our new business is coming from. Dubai spas – especially in Scandinavia.
ing countries such as Ghana (see ptwo.fittedseven.fitted), has taken a big hit due to its rapid early For those who have the capital, this is
which has large oil reserves, a growing growth, but the rest of the UAE, particu- a good time to invest, as the cost of real
middle class, an inf_l ux of ex-pats and a larly Abu Dhabi, is doing well, thanks estate, construction and consultancy can
growing tourism industry. to government measures to develop and all be negotiated down, ultimately leading
T_h e somewhat more developed African diversify the economy, plus the fact it has to a higher return on the development.
countries, such as Morocco and South the largest sovereign wealth fund in the We see huge opportunities in the four-
Africa, are also still attractive to investors world [the Abu Dhabi Investment Author- star market as leisure and business clients,
– especially South Africa (see pthree.fittedtwo.fitted), where ity]. Saudi Arabia is another big player, who traditionally used f_i ve-star hotels are
[international football tournaments] such and Qatar and Oman are also still growing. now looking to cut costs. Some four-star
as the Confederations Cup this year and In terms of hotel occupancy, Europe hotels have actually increased their oc-
the FIFA World Cup which will take place is suf_f ering badly, particularly in eastern cupancy, and spa developers need to seize
in two.fittedzero.fittedone.fittedzero.fitted are helping to push the hospitality countries such as Russia, where a lot of this chance. Day spas are doing quite well
industry forward. projects have been put on hold. However, thanks to the ‘lipstick ef_f ect’ of af_f ordable
luxury: instead of going on holiday, people
are doing something smaller.
“We see huge opportunities in the four-star market – with
some fi ve-star leisure and business clients looking to cut
Based in Sweden, Raison d’Etre is a spa
consultancy and management company,
costs, some have actually increased their occupancy”
working with hotel partners across the globe.
Details:
www.raisondetrespas.com
S
o far, two.fittedzero.fittedzero.fittednine.fitted has been potential for long-term
dif_f_i cult for the MARVIN RUST changes in demand, and
hospitality industry.
Managing partner,
know they must make
However, year-to-April re- their mark in these key
sults show that the Middle
Deloitte
global markets to ensure
East was the most resilient they develop their market
in terms of revenue per share. In contrast, it’s more
available room (revPAR), down one.fittedfour.fitted.nine.fitted per Since the start of the downturn, there dif_f_i cult to make an impact now in an
cent to USdollar.fittedone.fittedfour.fittedtwo.fitted (Euro.fittednine.fittednine.fitted, sterling.fittedeight.fittedfour.fitted). T_h e Americas has been little new investment activity in over-supplied market such as Dubai.
was the second most resilient region, with destinations that were otherwise inactive, T_h e economic downturn will ultimately
revPAR down one.fittedeight.fitted.nine.fitted per cent, followed by but global hotel chains are pushing ahead provide plenty of opportunities for hotel
Asia-Pacif_i c, down three.fittedzero.fitted.three.fitted per cent. Europe in the Middle East; despite some develop- investors to snap up good deals on dis-
was the last in line, as revPAR fell three.fittedtwo.fitted.seven.fitted ments being put on hold or cancelled tressed assets. Although there were not
per cent in US dollars – although when in Dubai, new projects are still being many deals in two.fittedzero.fittedzero.fittedeight.fitted and the beginning
analysed in euros, the decline was not so announced in Qatar, Jordan and Bahrain. of two.fittedzero.fittedzero.fittednine.fitted, the second half of the year is
severe, at two.fittedzero.fitted.five.fitted per cent. Meanwhile, the Saudi Arabian government expected to see an increase in transactions.
T_h e Middle East’s metamorphosis over will publish a new tourism master plan When hotel real estate prices hit the bot-
the past decade has been outstanding, with this year, which it hopes will double the tom of the downturn, cash-rich investors
the UAE’s powerhouse, Dubai, driving number of visitors to the country, from such as sovereign wealth funds will look to
much development. T_h e region’s geo- four.fittedseven.fitted million in two.fittedzero.fittedzero.fittedeight.fitted to eight.fittedeight.fitted million by two.fittedzero.fittedtwo.fittedzero.fitted. pick up trophy assets in key global cities,
graphical position, mix of source markets, Hotel chains are also continuing to with a view to benef_i ting from the invest-
growing importance as an aviation hub expand at full force across China: Lang- ment when the economy picks up again.
and the size of its investments will help en- ham Hotels, InterContinental and Accor
sure that it has a bright, long-term future. have all announced plans to increase their Deloitte of_f ers audit, tax, consulting and
Even with the current cooling-of_f , the presence in the region over the next two f_i nancial advisory services and published
Middle East still has the best occupancy to three years. Investors are still interested its sixth Global Performance Review – an
and average room rates in the world at in China and less-developed destinations analysis of hotel performance trends – in
six.fittedthree.fitted.eight.fitted per cent and USdollar.fittedtwo.fittedtwo.fittedfour.fitted (Euro.fittedone.fittedfive.fittedsix.fitted, sterling.fittedone.fittedthree.fittedtwo.fitted). in the Middle East because they see the March two.fittedzero.fittedzero.fittednine.fitted. Details:
www.deloitte.com
2826 Read Spa Business online spabusiness.comm // digital SpSPa BuA BUSINESS 4 2009SineSS 4 2009
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