News & Stories

St. Petersburg. Cautious optimism was the sentiment at the 5th annual Russian and CIS Hotel Investment Conference in St Petersburg two weeks ago. “The market is more upbeat,” stated Roeland Vos, President EAME, Starwood Hotels & Resorts. “We have a positive feeling. The crisis is not a bad time but a time of opportunity,” said Petr Chitipakhovyan, President, CH Group, a Russian developer with three hotels and a further three under construction. “The fundamentals are in place for future success,” said Andrey Yakunin, Partner and CFO, Venture Investments & Yield Management, Russian-based asset managers. Similar opinions were the public utterances during the conference’s open sessions; the mood at the numerous networking opportunities was more doubtful.

Venice. It may take six years to get back to rates experienced in 2008, experts said at the International Hotel Conference in Venice in late October. Owners should also expect fees to increase in future and be prepared that asset values will decline further. "Threats and Opportunities Facing Hotel Owners" proved the new challenges on the capital side.

Frankfurt. Dirk Feid, of the Treugast Solution Group, offered only few encouraging words at a press conference in Frankfurt this week concerning the subject of "Transaction and Investment Market for Hotels: Trends and Perspectives. For the hotel industry, the crisis is not over yet." In his opinion, the German hotel industry will be struck by the delayed effects of the financial crisis in 2010. Nevertheless, for funds, hotels are still attractive, mainly budget hotels.

Munich. "How close should the partnership between operators be?" Closer than ever before tried two hoteliers, a fund manager and a consultant, make the audience believe at Expo Real. However, the weight is shifting: more and more investors do not agree with every agreement and demand detailed insight in operators' figures later on. However, it is also of major importance what type of investor the lending party is in this network. Not every operator can resist these demands. The panel at the hotel conference "Hospitality Industry Dialogue" put it in a nutshell what could be heard in many individual conversations at the real estate fair Expo Real in Munich two weeks ago.

Munich. "Yes, there is a credit crunch," admitted the banker participating in the round, "but banks are not only denying financing to hotels," he added. Presenting a recent survey among German, Austrian and Swiss banks, a consultant showed the low number of banks willing to finance hotels and under what conditions they are willing to do so. The crisis has changed the interplay of banks and operators again. Creditors have tightened the rules and are bringing hybrid agreements into play. The aim is to distribute risks as never before. The "Contracts, conditions, yield: What new rules of play are emerging as a result of the crisis?" panel discussion in the course of the "Hospitality Industry Dialogue" hotel conference at Expo Real on October 5 brought about lots of food for talk. A summary and the bank survey in detail.

Paris The sale of several luxury hotels to JJW Hotels from the portfolio of Starwood Capital, which belongs to the Groupe du Louvre, has been more than questionable. The sale was initiated at the beginning of 2008.

Frankfurt. Peter Voit, Managing Director of pentahotels Germany, has filed for insolvency for a Germany and an Austrian operating company behind which a Renaissance and two Marriott hotels stand. As the Director is keen to stress, this action has nothing to do with the business of pentahotels.

Munich. Cruises are considered to be the growth market of the future. The performance of river cruises hasn't been quite as spectacular as high-sea cruises over the last year, though is still positive. Now, the Deilmann insolvency has cast a shadow over the boom segment. Yet to attribute everything to the financial and economic crisis would be wrong – also in respect of Deilmann. The good news from the crisis year 2009: Sales have again increased. Above all the Americans, the main passenger group in this segment, are again making reservations.

Chicago. The going public of Hyatt Hotels Corporation announced on August 5 has raised questions throughout the industry. Stock market experts, consultants and journalists alike are speculating about the true motives behind this step in the current situation. However, it could make sense for the owners.

Munich. Both investors and providers of open-ended real estate funds are still holding their breath. Since Morgan Stanley announced an unplanned revaluation of the entire portfolio of its P2 Value fund, the whole sector has been thrown into turmoil. Following the suspension of redemptions, the announcement that the fund will now also suspend acquisitions hit hard. Other fund providers now fear a renewed loss of confidence in all funds which may result a massive outflow of investor capital. The scenario is certainly not to be excluded. Unless of course a line is drawn under the open funds and the cards are laid on the table.