Hotel Conference Attendees Predict More Portfolio Sales

BERLIN-Over 1,000 delegates from more than 50 countries attended the 6th International Hotel Investment Forum held in Berlin earlier this month–a record number despite gloomy forecasts from many industry analysts, according to Jonathan Worsley of event co-host Insignia Hotels, a member of Insignia Financial Group. “There was a real air of anticipation at this year’s IHIF, given the turbulent times affecting travel and tourism,” said Worsley.

Polled on their outlook for the industry in a pre-conference survey, 67% of delegates believe there will be less new construction in 2003 versus 2002; 52% believe there will be more portfolio transactions, and; 47% believe there will be more sale and leasebacks. Poland, Russia, Germany and the Czech Republic are the top four countries where delegates believe demand for economy lodging will grow most during the next three years.

“These survey results reflect the cautious mood in the capital markets regarding new development and the belief that many hospitality companies might actually be good acquisitions today, the later view validating the underlying belief in the long term prospects in the industry,” said co-host Jim Burba, President of Burba Hotel Network.