European hotel sector given boost at IHIF
Europe’s brightening economic outlook will offer significant growth opportunities for the hotel industry if it can adapt to the post-recession marketplace, delegates heard today at the International Hotel Investment Forum (IHIF) in Berlin.
Speaking at the event, which runs from 3-5 March, PricewaterhouseCoopers (PwC) senior economic adviser Andrew Sentance told delegates the European economy had made significant progress from its double-dip doldrums this time last year – led by the UK and Germany – meaning growth was expected across the continent during 2014-15.
"This improving economic backdrop has the potential to support the European hotel sector although it’s likely to remain a challenging environment,” he said.
“But different and more distinctive strategies will be needed to realise this growth potential in the "new normal" post-crisis world."
This optimism was supported by the announcement that Starwood Hotels & Resorts plans to expand its European presence by 40 per cent through the opening of 60 hotels by 2020. Turkey, Russia and other eastern European countries like Tajikistan and Kazakhstan form a key part of this strategy, with the company expanding its presence in these fast-growing markets through a range of its different lifestyle brands.
Meanwhile, research launched at the forum by international law firm Berwin Leighton Paisner (BLP) – reflecting the views of more than 400 hotel industry professionals – forecast that London will be the centre of M&A growth for the hotel sector this year, with 76 per cent of those surveyed believing the UK capital will see the most activity, followed by Paris.
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