The data reflects
the date of the sale closing, not the date of contract. Based on typical
contract-to-closing timetables, most of the transactions were in contract
two to four months prior to the closing. Due to delays in data
collection, some increase in the number of transactions is expected in the
most recent months. The first – and
most obvious – observation is the dramatic decrease in the number of
transactions since September 11th. The decrease was almost immediate, but
it was also a continuation of a downward trend that had begun earlier in
the year. In both the second and the third quarter of 2001, the
number of transactions was well below the levels reported in 2000, and
also below the activity seen in those quarters in 1999. It is notable that
the data for September 2001 is almost on par with the September 2000 data.
The transactions listed for this month include sales that closed both
before and after September 11th. However, we are
aware of numerous transactions that had been scheduled to close in the
latter half of September that were delayed and closed at some point in the
fourth quarter of 2001. Others were cancelled altogether. In light of the
delayed and cancelled closings, the decrease in sales activity in the 4th
quarter is of even greater significance. In a typical cycle, these
closings would have completed contracts signed in the third quarter, a
time when the industry was already showing signs of weakening. Further,
the availability of financing was increasingly limited, as lenders adopted
a cautious attitude toward the hospitality sector. This caution escalated
after September 11th, and over the balance of the year,
financing for hotel transactions was all but unavailable. The combination of limited financing availability, faltering operating performance, and widespread uncertainty prevailed throughout the fourth quarter of 2001, and had a depressing impact on the sales activity into 2002. In the first quarter of 2002, only 14 transactions closed, followed by 20 in the second quarter. To date, nine transactions have been reported in the third quarter; however, these totals may increase, due to the lag in reporting transactions. The recent totals are roughly half the number reported for the same periods in 2001, which were in turn well below 2000 levels. Where
are the Sellers? The limited transaction activity is not due to a lack of buyer interest. In the months since September 2001, numerous opportunity and equity funds have been established. These funds were started with the intention of taking advantage of the hotel failures and foreclosures that were expected, and have been modeled after the funds that flourished in the wake of the 1990/91 economic downturn. While there are many buyers active in the market, there has been a dearth of sellers. This situation is particularly true of the assets valued over $10,000,000. There are numerous reasons for the lack of seller activity, but the chief interpretation is that potential sellers (i.e. current owners) recognize that the present environment of depressed values, poor operating performance and limited availability of financing is not likely to yield purchase offers that meet the sellers’ expectations or return requirements.
Despite
the financial stresses resulting from the depressed RevPAR levels, the
cost controls implemented by managers have helped to contain losses and
essentially buy some time for many owners. Those with properties financed
by floating rate loans have also benefited from the current low interest
rates. These circumstances are helping many owners to hold on, and
wait out the current market conditions. Also influencing the reduced level of sales activity is the significant gap between asking prices and purchase offers. Many of the buyers who are active in the market are looking for “great deals,” while most sellers who are testing the waters view the current circumstances as temporary, and have not reduced their price expectations by the same degree as their hotel’s RevPAR levels have fallen. While this gap remains, few transactions are likely to occur. Some
Historical Perspective The pattern of reduced sales activity we are seeing today is consistent with the market trends in the early 1990s, when a recession and the Gulf War combined to depress both hotel RevPARs and hotel values. Exhibit 10 summarizes the annual volume of sales activity since 1990.
1990 was a strong year for hotel transactions, in terms of both the number of transactions and the average price per room. In 1991, with the Gulf War breaking out in January and a recession in effect, both the number of transactions and the average price dropped sharply. Transaction levels remained low through 1993, and began to accelerate in 1994, as industry performance improved and financing became more readily available. Average prices remained low through 1995; the depressed prices are somewhat artificial, in that many of the transactions that occurred during these years involve the disposition of assets by the Resolution Trust Corporation (RTC). One of the principal goals of the RTC was to dispose of all of the assets it held. This motivation affected the RTC’s pricing strategy, which was characterized by discounts off of appraised values, and thus their transactions reflected prices that were low even in the context of the industry’s soft performance. It was not until 1996 that transaction volume and prices saw any significant increases. By 1996, financing through the CMBS market was widely available. Moreover, that year saw the emergence of the REITs, including Felcor, Starwood, and Patriot American, as aggressive market participants. Strong acquisition activity continued through 1998, slowing in the fourth quarter of that year, as the crises in the Asian markets led to a capital market readjustment in the US, and market activity dropped dramatically. Prices continued to climb through 1999, but transaction activity was off sharply. In 2000, more transactions occurred, but the average sales price decreased significantly. In 2001, the transaction volume was off sharply. As we have discussed, much of the decrease in activity occurred in the last four months of the year. We expect the same pattern of decreased activity and lower sales prices, followed by accelerated growth in both indexes, to prevail over the next several years. Those transactions that occur in the near term are expected to reflect sales prices that reflect decreases from the levels attained in the late 1990s, although we do not expect the decrease in prices to be as severe as that observed in the early 1990s. As RevPAR levels improve, we expect transaction activity to pick up; the average price per room is also expected to increase. Obviously, the specific levels of sales activity as well of the sales prices of the properties transacted depend on individual buyers and sellers, as well as the specifics of each individual property. What’s
an owner to do? The first, and perhaps most obvious strategic direction for owners is that they should probably not sell hotels in the current market, but rather wait until RevPAR levels recover and market conditions stabilize. However, although this strategy is obvious, there are other issues to consider. Chief among these is the large number of buyers who are currently chasing the limited number of assets on the market. While this condition does not result in a “sellers market,” it can put some downward pressure on cap rates, as potential buyers compete to make the best offer. These offers are not likely to completely close the gap between the bid and the asking price, and most sellers will be forced to moderate their expectations. But if disposition of select assets is a part of an owner’s long-term portfolio management strategy, it may well be worth the time and effort to explore current selling opportunities. What’s
an appraiser to do? The present market circumstances also pose some interesting challenges for appraisers, consultants, and other analysts. Given the realities of the current, depressed RevPAR levels, there is no question that, on average, hotel values have fallen. Any current estimate of market value must reflect this circumstance. However, the potential for recovery must also be recognized. While the appraisal community does not recognize the concept of “inherent value,” the gap between seller and buyer expectations suggests that hotel owners have a very definite belief in the inherent value of their properties. Moreover, the limited number of transactions results in limited market data, making the determination of current market value even more difficult for analysts. Finally, there is the evidence that suggests that most sellers would not consider selling their property in the current environment, unless motivated to do so by specific circumstances. So
what should analysts do? The
first answer to this question is to abandon the direct capitalization
methodology. In this method, a capitalization rate is applied to the
stabilized net income, which can be appropriate when properties – and
the market – are considered stable. Stability is clearly not the case in
the present environment, and thus the direct cap is not appropriate in
most current hotel valuations. Instead, a discounted cash flow method
should be employed. Under this methodology, revenues, expenses and net
operating income are forecast over several years. This forecast provides
the opportunity to recognize the potential for improved RevPAR levels, as
indicated by the market conditions affecting each individual property.
Discounting these forecasts results in an estimate of present value that
takes into consideration the “below stable” cash flows that
characterize the near term, but also recognizes the recovered levels
anticipated in the future. Under this methodology, it is also possible to develop an estimate of stabilized value, that is, the value at the point in time when the property and market are expected to have attained a stabilized level of operations. In some respects, this estimate of value can be considered the “recovered” value, and may provide some strategic direction as well as comfort for those owners dismayed by the indicated value of their properties in the current market.
Conctac Revenue
up 28 percent at luxury hotelier Fairmont
(Reuters) -
Fairmont Hotels FHR.TO
FHR.N
, which runs luxury hotels worldwide, reported a 28 percent rise in
fourth-quarter revenues on Thursday but net profit was down from the
year-before quarter, when the company posted a special gain. Fairmont, whose more than 80 hotels and resorts include the
Banff Springs Hotel in Canada's Rocky Mountains and the Plaza in New York,
posted net income of $11 million, or 14 cents a share, down from $49
million, or 63 cents a share. Last year's fourth quarter included a one-time tax recovery
gain of $51.4 million resulting from the spin-off of Fairmont from
conglomerate Canadian Pacific Ltd., which was broken up. Thirteen analysts polled by Thomson First Call had, on
average, forecast net earnings of 14 cents a share. Fairmont's operating income, however, rose more than two times
to $32.8 million from $14.4 million in the year-ago quarter. The operating
income, or EBITDA, does not include taxes, depreciation and amortization
costs. Fairmont's shares rose nearly 3 percent, or 95 Canadian cents,
to C$33.73 in Toronto on Thursday morning. In New York, they climbed 2.2
percent, or 48 cents, to $21.97. Chief executive William Fatt said Fairmont "continues to
benefit from our balanced customer mix and geographic diversity. (Our)
strength in the leisure segment has helped mitigate the effect of
prolonged weakness in corporate demand." Revenue rose to $125.6 million during the quarter from $97.7
million in the year-earlier period. Fairmont, along with Canadian luxury hotelier Four Seasons FSH.TO
has suffered from the fallout of the Sept. 11 attacks in the United
States, which put a damper on tourism and sent the global economy into a
tailspin. Individuals have started to travel again, but corporations show
no signs of reviving their travel budgets. During the fourth quarter, Fairmont's revenue per available
room -- a gauge of profitability for hotel companies -- rose 12.3 percent
to $88.71. Occupancy rates rose 6.3 percent to 55 percent from 48.7
percent during the three months ended Dec. 31, 2001. "The current economic environment continues to present
challenges that we expect to persist throughout 2003," Fatt said in a
statement. "With few signs of an overall U.S. economic recovery, we
are not anticipating an improvement in business travel in 2003." He said Fairmont expects earnings before income taxes,
depreciation and amortization to be between $215 million and $225 million
in 2003. Last year, EBITDA was $198.3 million. Net income should be between $80 million and $90 million and
earnings per share in the range of $1 and $1.10, he said. ($1=$1.53 Canadian) Buzz
in Bangkok Many hotel markets in the region are proving somewhat
problematic for hotel investors, lenders, and management companies in
securing opportunities. However, recent research conducted by HVS in
Bangkok indicates that there is currently a buzz of activity in the hotel
sector in the city. On the surface there is just one new five-star hotel
opening, the 392- room Conrad Hotel, however this does not reflect the
true picture of the likely changes in the branding and room inventory in
the five-star hotel market in Bangkok over the next 18 months.
Table one sets out a list of hotel projects current underway or rumoured
in Bangkok.
The opening of the Conrad, early
January 2003, is likely to present immediate challenges and put pressure
on the upper-tier centrally located five-star hotels situated along
Ratchadamri and Sukhumvit Road. Such upper tier five-star hotels include
the Grand Hyatt, The Regent, Le Royal Meridien, the JW Marriott and
the Sheraton Grande. Furthermore, the extension of 30 suites at the
Sukhothai will further intensify competition. The likely pressure on ARR
in the upper tier hotel sector is likely to have a knock-on effect on the
rate potential of lower positioned five-star and four-star deluxe hotels,
leading to ARR in Bangkok remaining under pressure. The five-star supply of hotels eased slightly during
2002 with the closure of the Siam Inter-Continental hotel, ending the
hotels 35-year reign in the city. However, with many re-branding and
conversion projects under way the short-lived ease on supply is likely to
be reversed. Current conversions include the renovation and
rebranding of the Grand Pacific Hotel as a Westin Hotel, to be managed by
Starwood. The rebranding of the hotel follows the recent acquisition of a
considerable share of the hotel by the Narula family from Lai Sun
Development Company. In the Sathorn Road area, the former YMCA building is
being converted to an upscale boutique 179-guestroom five-star hotel. The
former YMCA building hotel was acquired by Singapore’s HPL in 2000. The
grand opening the Sofitel Silom is expected during November 2002, this
hotel was converted from the former Monarch Lee Garden Hotel. In addition, there are further rumoured conversion
projects, including, the completion of the former Sofitel Riverside Hotel,
along the banks of the Chao Praya River, and the re-development of the
site currently occupied by the Ambassador Hotel. Due to the size of the
Ambassador Hotel site it has been rumoured the site could be re-developed
into two hotels or a mix-use development including an upscale hotel
component. Further rumoured new developments include a proposed
five-star hotel at the World Trade Centre, a hotel project as part of a
mixed-use development on the site of former Siam Intercontinental Hotel
and a proposed five-star deluxe hotel located within close proximity to
Ratchadamri. The current buzz in Bangkok is certain to lead to
international hotel brands to dominate the market at a greater level than
has been experienced previously. Whether this will lead to improvements in
market wide occupancy levels and growth in the current average room rates
will remain to be seen. Contact: Phil
Golding
Cambodia’s tourism minister “extremely disappointed” over events The TravelWeekly editorial team reports from Phnom Penh where they were catching flights to Singapore and Hong Kong this morning in the aftermath of last night’s attacks against Thai interests in Cambodia’s capital. Cambodia’s tourism minister Veng Sereyvuth has expressed “extreme disappointment” with last night’s incident in Phnom Penh which saw attacks on Thai interests including the Thai embassy, Bangkok Airways’ offices and two Thai-owned hotels – Juliana Hotel and Royal Phnom Penh Hotel. In a telephone interview with TravelWeekly, Sereyvuth said, “It is very unfortunate – this incident is a major loss to Cambodia’s tourism.” Coming at the tail end of a highly successful ASEAN Tourism Forum, the attacks came at a bad time. This is Cambodia’s peak season and several hundred ATF delegates are still in the country on post-tours. At ATF, Cambodia’s prime minister Hun Sen, had promised the government’s commitment to “sustained peace”. Sereyvuth said, “I’m very sad at what happened. My first concern was for the lives of my friends in the industry and their staff. I’ve checked and they are all safe and sound.” He added, “These are extremists groups who went out of control. How can you attack the embassy of a foreign country? This is just not on.” He stated the government was committed to bringing back social order and “there is no need to panic”. Rioting erupted in Phnom Penh last night as thousands of Cambodian students stormed the Thai embassy, setting fire to the main building. The Cambodian army was deployed to quell the rioters, who were eventually dispersed by military police after shots were fired into the air. Following last night’s incident, Thai International and Bangkok Airways stopped flights between Bangkok and Phnom Penh. Sereyvuth said flights between Bangkok and Siem Reap were operating as normal and the situation in Siem Reap was calm. ATF delegates in Siem Reap this morning reported heavy security around Thai-owned interests and at the airport, whilein Phnom Penh, TravelWeekly reporters en route to the airport observed looting, fires and a heavy army presence.
NHL
and NHLPA Sign Multi-Year Partnership Agreement with Starwood Hotels &
Resorts
/BUSINESS
WIRE/ - The National Hockey League (NHL), National Hockey League Players'
Association (NHLPA) and Starwood Hotels & Resorts Worldwide, Inc.
(NYSE: HOT) today announced a multi-year agreement that makes Starwood
properties in the United States and Canada the official hotels and resorts
of the NHL and NHLPA. Starwood's
sponsorship activities will kick off this weekend at the NHL All Star
Weekend and 53rd NHL All Star Game. Under
the agreement, Starwood, and particularly its Sheraton Hotels &
Resorts brand, will support League jewel events such as NHL All-Star
Weekend, NHL All-Star Block Party and the NHL Entry Draft. Starwood will
further support its NHL/NHLPA partnership through a media commitment that
includes advertising in USA Today's NHL-themed bonus sections and through
NHL publications. A Starwood/NHL Award of the Month will be developed,
criteria to be determined, tied to joint brand attributes. In
addition to the marketing alliance, the NHL and NHLPA will utilize
Starwood properties for League and Players' Association events, meetings
and travel. A unique program has been developed that will utilize NHL
players as Starwood spokespersons and enroll them in the company's
award-winning frequent guest program, Starwood Preferred Guest, enabling
players to earn Starpoints good for travel at Starwood's properties
worldwide. The NHL will work with Starwood to develop a program that can
be used by NHL Member Clubs. "The
NHL is excited to announce a partnership with the leading worldwide brand
in the hotel and resort category," said NHL Group Vice President,
Corporate Marketing, Andrew Judelson. "This strategic alliance will
enable both Starwood and the NHL to leverage the strength of each others
brands to further grow our businesses." "Sheraton's
partnership with the NHL provides us countless opportunities to reach our
target demographic -- affluent business travelers -- in key U.S. and
Canadian markets where Sheraton boasts more than 200 hotels," said
Norman MacLeod, Executive Vice President of Sheraton Hotels & Resorts.
"Sheraton has spent several years improving the brand, investing more
than $1 billion primarily in renovations, and we continue to look for
unique marketing opportunities to promote the 'new Sheraton' in fun and
exciting venues, and NHL and the great frozen game certainly provide us
that." "We
are pleased to begin our partnership with a world class organization like
Starwood," said Ted Saskin, NHLPA Senior Director. "Starwood's
commitment to NHLPA members will provide excellent exposure for our great
athletes, and I am confident our members will have more opportunities to
stay at Starwood properties on a worldwide basis in the years to
come." In
addition to Starwood's partnership with the NHL, Starwood is also the
official hotel company of the PGA TOUR. About
Starwood Hotels & Resorts Worldwide, Inc. Starwood
Hotels & Resorts Worldwide, Inc. is one of the leading hotel and
leisure companies in the world with more than 750 properties in more than
80 countries and 110,000 employees at its owned and managed properties.
With internationally renowned brands, Starwood is a fully integrated
owner, operator and franchisor of hotels and resorts including: St. Regis,
The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W
brands, as well as Starwood Vacation Ownership, Inc., one of the premier
developers and operators of high-quality vacation interval ownership
resorts. For more information, please visit www.starwood.com. NHL
is a registered trademark of the National Hockey League and is property of
the NHL and its teams. All Rights Reserved Dubai
Hotel Show grows in line with Middle East hospitality industry expansion AME Info -
The continuing growth of the Middle East hospitality industry will
be reflected when The Hotel Show, the region's leading exhibition for
hotel suppliers, draws another record number of exhibitors and visitors to
Dubai in its fourth year Launched in 2000 by event management
and marketing specialists Streamline Marketing, the show has grown each
year, and the region's hospitality industry can again look forward to a
bigger and better showcase for their products and services at Airport Expo
Dubai from May 19-21, 2003. Great
Hotels of the World announces American presence USA expansion will double company
size 30 January 2003 - Great Hotels of the
World, the global luxury hotel marketing alliance, will launch in the USA
this year to target American consumers, effectively doubling the potential
outreach for Members will now be able to tap into
the two key powerhouses behind luxury worldwide travel: Europe and the
USA. As part of this natural
expansion the company has recruited an experienced team to manage 4
offices across America and separate editions of the Great Hotels of the
World niche directories are to be Peter Gould, Chairman of Great Hotels
of the World, commented, "Since the formation of the company in
October 2001, Great Hotels of the World has primarily focused on appealing
to European uxury travellers.
We have, in effect, been a global company with a regional focus.
Our expansion into the States will give us a considerable global
presence from which our members can expect to benefit greatly.
After all, 85% of all luxury travel in the world is generated by
the USA and Europe." Managing Director of Great Hotels of
the World USA, Alan Levine, will oversee offices in New York, Chicago,
Miami and Atlanta. His team
expects to increase the global membership of Great Hotels of the World by 100 hotels within their first
year. A primary aim for the
team will be to attract members from within the Americas.
Initially, Great Hotels of the World USA will produce 3
directories: spa, golf Benefits to members of the USA
programme will mirror those extended by the European programme and will
include a feature spread within the appropriate directory, a hotel entry
on www.ghotw.com, a dedicated Account Manager and use of
the Great Hotels of the World branding and logo.
Additionally, members will be able to
choose from an à la carte menu of personalised services to meet
their specific needs be it PR, sales blitzes
to meeting planners or travel trade relations.
About Great Hotels of the Worl Launched in October 2001, Great Hotels
of the World is a privately
owned company that represents 187 of the world's greatest hotels and
resorts in 4 niche sectors of luxury travel: golf, spa, romantic and
incentives. Comprehensive
glossy directories are published annually for each of the programmes.
Beautifully illustrated with colour photography,
each entry spans 2 pages and features detailed information on the
facilities and activities available.
Membership of each programme is by invitation only and is TravelCLICK
Names Loews Hotels "E-Marketer of the Year" Award Presented at HSMAI Travel Industry Awards Gala Additional
Three Regional Winners Honored Chicago, IL (January 29, 2003) - With electronic distribution
of hotel room nights approaching $18 billion in annual worldwide revenues,
TravelCLICK and the Hospitality Sales and Marketing Association
International (HSMAI) honored excellence in electronic marketing at the
HSMAI Travel Awards Gala in New York. TravelCLICK presented the second annual HSMAI/TravelCLICK
E-Marketer of the Year award to Loews Hotels at last night's dinner.
Charlotte St. Martin, executive vice president of marketing for Loews
Hotels, accepted the award. In addition, three individual hotel
properties, each representing a region of the world, were also recognized
as "2002 E-Marketer of the Year" award winners. The 2002 E-Marketer Award winners are: HSMAI/ TravelCLICK E-Marketer of the Year - Loews Hotels "All four of the award recipients share the consistent
quality we looked for in selecting the HSMAI/ TravelCLICK E-Marketer of
the Year: aggressive pursuit of control over their e-commerce," said
Bruce W. Mainzer, senior vice president of marketing, TravelCLICK. This year's e-marketer award selections, like last year's,
were driven by booking performance achieved in electronic channels. Each
e-marketer winner is the highest performer in their category, based on
electronic bookings through GDS and the Web and superior marketing
strategy. HSMAI/TravelCLICK E-Marketer of the Year - Loews Hotels Standardizing the rate structure made the properties easier to
view, sell and manage on the GDS. Loews also restructured their Web site
to complement the new rate structure and provide customers their best
rates. The brand utilizes GDS advertising extensively - an average of
two to three campaigns per property per year. In addition, the company
executes corporate campaigns that complement local hotel property
initiatives. "Loews employs electronic advertising and uses electronic
tracking tools to monitor, analyze and fine-tune our e-marketing
strategies," said St. Martin. "Loews is a believer in
e-marketing because it enables us to target our guests with specific
offers. It's not the shotgun approach; it's the laser sharp approach.
We've had a response rate of 29% on some direct and e-marketing
campaigns." "Compared to traditional media, it's the difference
between night and day," said Teresa Surin, vice president, revenue
management, Loews Hotels. "E-marketing and the technology we employ
allow us to be nimble and react at a moment's notice." The Americas E-Marketer of the Year - Four Seasons Hotel
Boston Instead of discounting, this hotel utilized electronic
marketing channels to increase demand from corporate, group and transient
markets. The Four Seasons Hotel Boston then utilized TravelCLICK's
Hotelligence report to competitively benchmark their electronic marketing
and continually maximize their revenue from GDS and consumer online
channels. Asia/Pacific E-Marketer of the Year - The Peninsula Hong Kong The hotel drove traffic to their Web site by marketing an
advance sale rate aggressively on their own Web site and on the GDS. The
hotel also used intelligence tools on a daily basis to monitor bookings by
channel and rate-code in order to refine and adjust their e-marketing
messages. On a per room basis, the Peninsula drove the highest electronic
revenues and electronic room nights among its competitors. Europe/Middle East/Africa E-Marketer of the Year - The Savoy The Savoy also conducts bi-annual audits of rates and rooms
showing in all of the GDS systems; and completely revised its own Web site
to ensure the best rate strategy. The Savoy uses a number of electronic
marketing capabilities, including a templated electronic newsletter, to
customize offers to specific customers and market segments. The Savoy was
a 2001 TravelCLICK E-Marketer Award finalist. "To achieve results, successful hotels demand evaluation
measures from their e-marketing partners, as well as tools that help
maximize their control over their business," said Mainzer.
"E-marketing is not a special science. E-commerce doesn't change
basic marketing principles, it just makes them more dynamic and makes
those who stay on top of their game more successful." About TravelCLICK TravelCLICK (www.travelclick.net) is the leading provider of
solutions that help hotels and other travel industry suppliers maximize
net revenue from electronic distribution channels. TravelCLICK's
competitive benchmarking reports provide hotels with price and booking
performance information unavailable through any other source. The
company's exclusive electronic marketing networks allow hotels and other
travel related suppliers to target promotional messages to specific travel
agents, consumers, and group meeting planners when they are booking
travel. Established in 1996 and headquartered in the Chicago area,
TravelCLICK operates in more than 140 countries around the world. The
company has over 6,000 clients, including national and international
companies such as Accor, Air France, Avis, Best Western International,
British Airways, Choice Hotels, Fairmont Hotels & Resorts, Four
Seasons Hotels & Resorts, Grupo Posadas, Hilton Hotels Corporation,
Hyatt Hotels & Resorts, Kempinski Hotels & Resorts, Leading Hotels
of the World, Loews Hotels, Lufthansa, Marriott International, The
Peninsula Group, Radisson, The Ritz-Carlton Hotel Company, SAS, The Savoy
Group, Shangri-La Hotels, Sol Melia, Starwood Hotels & Resorts,
Thistle Hotels, USAirways, Virgin Atlantic and Wyndham Hotels &
Resorts. HVS
International Announces Resort Development Services Group; Appoints Mark Earle as Managing Director Mineola, New York, January 24, 2003 - Stephen Rushmore,
President of HVS International, a leading hospitality services firm, has
announced the formation of the Resort Development Services Group within
the HVS Timeshare Consulting Services division of HVS International and
appointed Mark Earle as the Managing Director. The Resort
Development Services group will provide acquisition and development
services including growth plan execution, branding and marketing
alliances, owner representation and supervisory services for operations
during vacation ownership product sales, and assistance with securing
partners and financing for vacation ownership projects. In making the announcement, Rushmore said “This HVS group
was created to meet the complex demands of vacation ownership and mixed
use resorts, both of which represent the fastest growing segments of the
hospitality industry.” Kathy Conroy, President of HVS Timeshare Consulting Services
added, “The mission of HVS Resort Development Services will be to assist
HVS International clients in both the new development and conversion of
existing resort assets through our expertise and the contributions of
strategically selected partners. Mark and his group now enable HVS
to assist clients in implementing and executing the development plans
recommended by the firm’s consulting group during the feasibility and
planning process.“ Prior to his joining the HVS organization, Earle was a 22-year
veteran with Marriott, where he successfully tackled numerous development
assignments with emphasis on international and domestic full-service and
luxury hotel, resort, and fractional ownership projects. Most recently, as Vice President of Resort Development for
Marriott International’s fractional ownership division, Mark developed
projects generating $2 billion in total sales, including the award-winning
landmark Boston Custom House conversion. He was also instrumental in
launching the Ritz-Carlton Club development pipeline and producing its
inaugural project in St. Thomas, U.S. Virgin Islands. Earlier, he spearheaded Marriott International’s franchise
presence in the United Kingdom by generating a 12-deal pipeline of hotels,
working from Marriott’s London office. As a Marriott full- and
limited-service hotel developer, he produced 26 new hotels with 6,100
rooms and negotiated management contracts for hotels valued at more than
$50 million. As director of hotel business planning, Mark conducted
comprehensive market analysis, feasibility studies, and business plans for
22 hotels totaling 6,850 rooms. Included is Marriott’s pivotal
Marquis Hotel in New York’s Times Square and Palm Springs’ famous
Desert Springs Resort. In his earlier Marriott years, he opened new
markets for Marriott’s chain restaurants. Mark has a master’s degree from Cornell University’s
School of Hotel Management and has since lectured at Cornell, as well as
at industry development conferences. He is a member of several
industry associations including the American Resort Development
Association, the Cornell Hotel Society, and the Cornell Real Estate
Council. China’s
Tourism revenue surges to $ 523b; arrivals up 9pc The
main factors behind the increase were long domestic holidays and an
increase in foreign travellers. The
China National Tourism Administration revealed last month that the
increase in foreign arrivals was helped by the slowdown in global tourism
caused by the risk of terrorist attacks in other destinations. Meanwhile,
arrivals from Hong Kong rose to 61.87 million, representing a year-on-year
increase of 5.65 per cent. Tourist arrivals from Macau grew 19.98 per cent
to 18.92 million, while more than 3.66 million Taiwanese visited the
mainland last year, up 6.35 per cent. More
than 16.6 million mainland residents travelled abroad last year,
representing a rise of 36.84 per cent. Australia:
Ramada Aims For Middle Market As It Surveys Hotel Scene The
managing director of Ramada International Hotels, Reas Kondraschow,
yesterday made a flying visit to officially open the Melbourne Ramada on
Flinders Street. The
Melbourne Ramada, together with a new hotel in Adelaide, marks the return
to Australia for the global chain since it left in the mid-1990s. "We
are the fastest-growing international hotel chain in the world right
now," he said. "In 2001 we had 26 hotels, now we've got 148
hotels, and by the middle of this year we'll have 200 hotels. "In
Australia, we've been looking to expand, and come back here, since 1997
and it was just a matter of finding the right opportunities. We'll now be
looking to expand to every major capital city and some of the major
provincial centres as well." Ramada's
vice-president for operations in Asia-Pacific, Robert Wilson, says he
expects that there will be between 12 and 15 hotels established in
Australia over the next three to four years. "We're
back, we're aggressive, we're contemporary and we want to grow," he
said. "We will just look for like-minded developers to help us with
our expansion here in Australia." Ramada
believes that its positioning as a four-star or middle-tier hotel group
will mean it can avoid what has been widely reported as an oversupply of
luxury hotels in Melbourne and other capital cities. "We
are the Holden Commodore of the Australian hotel market," Mr Wilson
said. "We're well-priced and we hope we deliver the products. The
guys at the top end . . . are finding it a bit tough right now." Mr
Wilson said that while establishing a hotel in Sydney was a priority, the
city was the most competitive market in Australia. The company had yet to
find a property it could take over. "I
think's it's more likely you'll see us next in Western Australia and
Queensland," he said. Mr
Kondraschow said the Ramada strategy globally - especially in Europe -
would be to form alliances with existing hotel chains and rebadge them as
Ramada, after a refit. He
said he expected that at the group's rate of growth there would be at
least 400 Ramada hotels around the world within four years - excluding the
company's operations in the United States, which are run by Cendant.
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