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The key sessions at AHIC 2010 will be offering insight into every facet of the hotel investment market, starting at the macro-economic factors driving demand in the region, assessing new hotel development projects by location and market conditions and providing advice on how to finance and manage projects.
Nenad Pacek, President of Global Success Advisors Ltd and co-founder of CEEMEA Business Group, commented: “There can be no doubt that the global economic crisis affected every market out there, in both the developed and emerging markets, but as the crisis bottoms out and the recovery gathers pace the emerging Asia countries and the MENA region offer the best opportunities for growth.
“It was these regions that proved themselves most resilient during the downturn and, thanks largely to recovering commodity prices, the MENA region will grow over 4 % in 2010 and 2011. Part of the forward economic strategy for the vast majority of countries in the region is a diversification away from dependence on oil and gas revenues, and with a total accumulation of $1.6 trillion in various reserves, the outlook is positive for broad investment in the hotel and tourism sectors.”
The regional landscape is unique, and through key session such as ‘Successfully tapping into the regional Arab travel market’, looking at gaps in the market for new supply and the size of potential markets, and ‘Attracting the attention of today’s hotel investor’, to help increase understanding of the objectives of MENA’s investors, the aim of AHIC is to provide a forum to ensure continued investment in the region.
HE Sheikh Mubarak Abdullah Al Mubarak Al Sabah, Chairman of Action Hotels, who will be speaking on the panel discussing ‘Successfully tapping into the regional Arab travel market’, observed: “The Middle East market, while common in some characteristics, is diverse and each country has its own strategies and priorities for investment and travel. In general, it’s not my view that markets in the region are saturated, but instead it is more about growth and market movement.
“Each country and each market is very different, depending on the maturity of the economy and business drivers. Overall, there has been a shift in focus driven by governments to diversify the local economies and this has changed the marketplace for hotels from a 5-star dominated demand – and an investor-focus on trophy assets – to a wider market, creating scope for a much broader range of investment opportunities.”
One of the several new initiatives AHIC 2010 is offering this year is the ‘How to finance your project’ panel, reflecting the changing economic climate for securing funding.
Gaurav Shivpuri, Director – Capital Markets of Jones Lang LaSalle MENA, who will be featuring as part of the ‘How to finance your project’ panel, commented: “Regional Investors and Financiers today are much more prudent when it comes to investing in real estate and scrutinize every little detail of a project prior to financing or investing in it. I would recommend that developers/investors seek advice from experts, as well as carefully consider location and market characteristics when undertaking new projects. Moreover, putting together a experienced development & management team is also important to allay delivery and cost overrun fears that investors and financiers have today. AHIC offers a great platform for investors to listen to industry insiders and learn the best strategy for ensuring support from the banking community when considering a new hotel development.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
