The environment and the prospects of the hotel industry are looking up once again. Some basic figures will give you an idea of how tough the situation was for them during the economic downturn. Hotel acquisitions had peaked at $120 billion in 2007. It had dropped to as low as $9 billion in 2009. Last year saw a rise to $26 billion and the rising trend is maintained this year as well but the experts feel it will take another five years for the industry to hit the $100 billion mark.
Business travel has witnessed a healthy recovery and that is what really fills up hotel rooms. Leisure travel is also rebounding after consumers had cut down on their spending during the recession. According to a report by STR Global, a research firm, the average recovery per room also rose worldwide adding to the profitability of the industry as a whole.
International Hotel Investment Forum in Berlin saw a healthy exchange of ideas between participants from around the world. Arthur de Haast, global CEO of Jones Lang LaSalle was of the opinion that lodging purchase will increase this year by 15 to 20%. Future growth will be driven by deals in emerging countries rather than in mature markets. China and India are sure to witness increased activity this year in the segment.
Via: bloomberg
