News for the Hospitality Executive
January 23, 2012 – The expectations of
US hospitality executives have tempered, but the overwhelming majority
bullish on the marketplace as investors look to pick up where they left
2011 – hunting for deals, according to the DLA Piper 2012 Hospitality
Survey revealed today at the Americas Lodging Investment Summit. With
mind, the US hospitality industry will also keep a watchful eye on
DC in 2012 as the country prepares for further political gridlock amid
election-year showdown for the White House.
The survey, measuring the attitudes and perspectives of top executives within the hospitality industry, reveals that eight out of 10 respondents describe their 12-month outlook for the US hospitality industry as “bullish,” down from 88 percent in 2011. According to respondents, a strong appetite exists for hotel transactions, fueled in part by an expected – and significant – uptick in private equity investment activity, as well as flattening asset values. These factors are expected to far outweigh any concerns over hotel debt issues or any election-related market malaise in 2012.
Taking a look at the operational side, the emergence of “daily deal” websites has created an interesting promotional opportunity for the US hospitality industry. While only 19 percent of respondents reported using these sites for promotions, nearly all those who did cited them as a source of repeat business.
“Enthusiasm remains high but the hospitality marketplace is in a period of transition,” said Sandra Kellman, global co-chair of DLA Piper’s Hospitality and Leisure practice. “Looking ahead, it is clear that the industry expects that there will be some deal velocity, although it may be choppy.”
According to DLA Piper, the survey yielded a number of other interesting conclusions, including:
Respondents were asked to share their thoughts on the following in an open forum for comment and feedback. The following represent select verbatims received from survey respondents.
Have daily deal websites been a boon or bust for the hotel industry? Explain:
In January of 2012, DLA Piper distributed a survey via email to top executives within the hospitality industry, including CEOs, COOs, CFOs and other senior executives, which was completed by 100 respondents.
Question No. 2 was only made available to those respondents who described themselves as “bullish” in Question No. 1.
Question No. 3 was only made available to those respondents who described themselves as “bearish” in Question No. 1.
Question No. 6 was only made available to those respondents who answered “yes” to Question No. 5.
Due to rounding, all percentages used in all questions may not add up to 100 percent.
To view the entire survey please visit: http://www.dlapiper.com/files/upload/Hospitality-Outlook-Survey-Report-2012.pdf
About DLA Piper: (www.dlapiper.com)
DLA Piper has 4,200 lawyers in 30 countries and 76 offices throughout the United States, Europe, Asia Pacific and the Middle East. In certain jurisdictions, this information may be considered attorney advertising.
Global Co-chair and Head of Hospitality & Leisure Group US, DLA Piper