Foreword
Karen Friebe
Partner and Head of Hospitality & Leisure Sector, EMEA

It seems that 2010 is the year for caution and conservatism in the hospitality industry. These were the key watchwords from our respondents, with hospitality executives still expressing bearish sentiment and circumspection for the medium term in 2010.

However, it does seem that the tone from respondents has altered somewhat since our 2009 survey and that there are some “green shoots” to report on. 54 per cent of respondents described their 12-month outlook on the European hospitality industry as “bearish”, down from the 84 per cent recorded in last year’s survey.

2010 looks to be a year of “getting real”. Rather than treading on economic quicksand it is time to shed the chains of the unprofitable elements of your hotel business. More than ever there is a need to revise your corporate structures to reduce operating costs, rescue margins and re-focus on areas of business with long-term, sustainable growth opportunities.

More than a quarter of respondents see opportunities for joint ventures this year. Sharing risk and knowledge through collaboration are obvious benefits.

The current climate has clearly exposed investment opportunities for those with cash but investors are naturally likely to be more vigilant and less opportunistic than during the boom times.

As the global economy begins to emerge from recession, developing countries are continuing to outpace the main developed economies in terms of GDP growth. Whilst all four BRIC countries are set for a strong rebound, China in particular is the only large economy where the growth rate is approaching 10%. This is good news for forward-thinking hotel investors who should explore growth opportunities outside of Europe.