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Editorial October 26, 2007 - Europe lives on

26.10.2007

Dear Insiders,

Even if some still don't want to believe it: there are numerous opportunities on the European hotel market. In the Italian metropolis of Rome, Maria Puetz-Willems talked with international experts from all over the world about market trends at the International Hotel Conference. Fred Fettner from Austria visited a congress about architecture in tourism in Bregenz, where he learned many new facts about the future of resort hotels in the alpine region. For many decades the local hotel owners clung to hotels that resembled "blown up" farm houses and to everyone's dismay were later "enhanced" with little turrets and bays. Today, new buildings appear in a clear, modern style taking ecological issues into account - and they are still profitable.

On the other side of the world, in Asia and in the Arabian countries, people deal less with ecological issues, but rather with new expansion plans that change on an hourly basis. The investors on site outmatch one another speaking derisively of the aged and old-fashioned Europe - where, as a rule, they acquired all their knowledge. Unperturbed by this, business in "good old Europe" is still running well.

This is also the result of the recently issued Global Business Travel Forecast by American Express. For 2008, the forecast expects European hotel rates of the medium and upper class categories to grow by 12 to 14 percent. As a comparison: Asian-Pacific and Latin American growth is estimated between 18 and 22 percent. In the upper-class segment, Germany can expect increases in rates of between 10 and 12 percent, while rates will increase between seven and nine percent in the medium-class segment. According to the survey, the losers will be hotels in North America, whose room rates climb only moderately. But they still climb and don't fall!

Expansion in Europe is thus still on the agenda of foreign investors, regardless whether they come from Russia or the US.

In the meantime, Sir Rocco Forte has started operating all his desired locations in Germany and does not let all the prophecies of doom faze him. After Frankfurt and Berlin, an opening celebration took place in Munich with the in-crowd. We can already provide our readers with some detailed reports and initial figures concerning the days after the "unofficial" opening. And on the sidelines, we are publishing the future strategy of Europe's hotel giant of Accor. Have fun in "good old Europe".

Yours, Susanne Stauss
Senior Editor

Questions? susanne@hospitalityInside.com

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