NYU Conference Kicks Off With Update On Current Conditions, Global Markets
Monday June 3rd, 2013 - 11:44AM B
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NEW YORK—The 35th annual New York University International Hospitality Industry Investment Conference kicked off today with a number of leading hotel executives weighing in on current market conditions during "The CEO's Check In: A View From The Top."
Christopher Nassetta, president and CEO of Hilton Worldwide, noted that the hotel business is in a "very healthy part of the cycle," before acknowledging he'd like to see demand grow a little faster.
Ed Walter, president and CEO, Host Hotels & Resorts, noted that new construction still doesn't pencil out for owners and developers in many cases. "In most markets, the cost of construction exceeds the value you will get from the hotel," he said.
A key focus of the session was based on international expansion prospects in a variety of different global markets.
Both Nassetta and Steve Joyce, Choice Hotels International president/CEO, see many opportunities for conversions and branded properties in Europe, for example. "Europe is one of the largest growth markets for Hilton," said Nassetta.
Meanwhile, although regions like China and India present vast opportunity, they can be challenging. "We always found it hard to make sense of deals in China as owners," said Walter.
"Midscale hotel development in India is challenging because of zoning, and infrastructure issues," said Joyce.
However, Trudy Rautio, president and CEO, Carlson, underscored the opportunity. "Indonesia is projected to be the seventh largest economy by the year 2030," she said.
Tags: • Hospitality • Brands •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.