Finance, or lack of it
Lawless had touched upon another hot topic — unavailability of finance.
The panellists — which also comprised Jim Abrahamson, CEO, Interstate Hotels & Resorts and Mariano Perez Claver, chairman and CEO, NH Hoteles — said it was harder than ever to secure capital for new hotel projects.
“We started as a European hotel company that’s expanded, we’re still missing in some of the obvious destinations, but it’s very difficult to get finance. Banks may lend money — around 50% of the asset value — to existing projects, but for new developments there’s nothing,” observed Sir Rocco Forte.
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DLA Piper’s 2012 European Outlook Survey (unveiled on the first day) revealed that most respondents felt hotel investment in Europe in 2012 would mainly come from the Middle East, closely followed by Brazil, Russia, India, China and South Africa.
Bed, bath, breakfast and internet access
Even the basics of the hotel business came into question at IHIF this year.During the session ‘Which technology should I invest in’, experts said for many guests, internet was more important than breakfast.
“When I joined the hotel industry 12 years ago, I was told that it’s a ‘bed, bath and breakfast business’, but now it’s a ‘bed, bath, breakfast and internet business’ and for many guests, internet’s probably more important than breakfast,” said Nick Price, CEO of Netsys Technology.
The Rezidor Hotel Group COO and executive VP Wolfgang Neumann and NH Hoteles chief strategy and development officer, Francisco Zinser, said the most common complaints from guests were now over internet related issues.
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