Possible within 1 to 2 Years; Potential Terrorism
Attacks a Big Threat
|NEW YORK - June 7, 2004 -- Fifty-one percent of respondents says potential
terrorism attacks and 35 percent says the economy are the biggest threats
to a full recovery of the worldwide hospitality industry, in a survey of
executives attending New York University's 26th Annual International Hospitality
Industry Investment Conference, being held at New York City's Waldorf=Astoria
Hotel this week.
A majority (62 percent) believes that overall recovery of occupancy and ADR (average daily rate) to 2000 levels is 1 to 2 years away, and 51 percent say an increase in the RevPAR (revenue per available room) is the measure to watch, indicating when a recovery is under way.
Sponsored by the NYU Preston Robert Tisch Center for Hospitality, Tourism and Sports Management, the Conference will be attended this year by over 1,500 mid- to senior-level executives involved in the real estate, hotel investment and development sides of the industry.
"Attendees to the NYU Hospitality Conference are hospitality executives who make the key business decisions for their organizations, directing where development, investments and growth will happen," says Lalia Rach, associate dean of the NYU Tisch Center and HVS International chair.
"Our survey found this group cautiously optimistic, but still worried about the specter of terrorism and a lagging US economy on the industry's recovery. Further, they point to interesting sector trends, namely that Asia and the Pacific Rim will enjoy increases in investment and that the upper upscale will remain a focus of investment growth."
Revival of corporate travel (63 percent) and the rate of job growth (22 percent) are the factors cited as having the greatest effect on the pace of recovery.
Respondents said that REITs, both public and private (40%), and opportunity funds (20%) will be the most active buyer groups for hotels during the recovery.
Sixty-four percent of the respondents say that upper upscale and upscale will be the service segments that will experience the greatest investment activity over the next six months. Urban (52 percent) followed by suburban (33 percent) will be the most active geographic segments during the same six-month period.
Further, Asia/Pacific (55 percent) followed by North America (29 percent) are predicted to experience the greatest percentage increase in lodging investment over the next 5 years.
About the Survey
Dr. Mark Warner, director of NYU Tisch Center graduate programs, with the assistance of graduate students conducted the survey during the month of May 2004. Conference registrants were surveyed by email. There were 140 respondents totaling a 15 percent return rate.
Over half (51 percent) of the respondents to the survey were directly involved in real estate/hotel investment/development activities while the remaining respondents were individuals who provide direct services to this investment/development group. Sixty-four percent of the respondents have a total dollar (USD) range of hospitality investment activity in excess of $100 million.
|Also See:||Pent Up International Demand to Boost China, Hong Kong and Macau Tourism Industry in 2004 / March 2004|
|WTTC's 4th Global Summit in Qatar Addressed Priorities for Driving Change in Travel & Tourism / May 2004|