LOS ANGELES-“We got lazy, took things for granted, put our feet up and rested on our reputation. We didn’t invest in our lead.” So said Lt. Gov. Gavin Newsom when talking about California at the Americas Lodging Investment Summit conference on Tuesday. “If you aren’t investing in the future, you won’t do very well. We are no longer living on the interest of our investments of our past.”
Newsom opened the second day’s panels by talking about how California “needs to get back to its leadership position by reinvigorating in its formula for success,” he said. “Unless we change the way we do business, we are going to be left in the dust.”
He pointed out to the nearly 2,400 attendees that “the government needs to evolve and modernize. We need to wake up every day and ask ourselves: what world are we living in?”
Newsom ended his discussion by pointing out that attendees should not give up on California. “We are coming back …we are seeing signs of life and growth,” he said. “Thank you tourism, which is helping bring California back.”
He added that “We are on the move and are reconciling our problems. The best is yet to come in California.”
In the Boardroom Panel, Scott Berman, principal of PwC, asked panelists about the conference title: Rebound. “Are we in a rebound?” Stephen Joyce, president and CEO and member of the board at Choice Hotels, said that there are still a number of things that still need to work through the system. “You are going to still see some struggles to get developments going,” he said. “Once we see how quickly we deal with the problems we’ve ignored over the past few years, then you will see some good things in the capital markets.”
Joyce pointed out that he is seeing companies put people back on the road, which is encouraging. “There is probably more upside to 2012 than downside,” he said. “The issue that is hurting us is the unemployment picture.”
Richard Solomons, CEO of IHG, noted that according to a recent survey the company conducted, “More than half of our customers are looking to travel more in the next 12 months than they were in the last 12 months according to a survey, so that’s good news.”
Next up was Donald Trump, chairman and president of the Trump Organization, who began his discussion by saying that he was happy to be speaking on the hotel business rather than politics. “I love this business, it’s been great.”
Trump pointed out that one of the keys to success for him is due to his brand. “I help developers get zoning when they can’t,” he said. “So whether it is me or another brand, developers should team with someone that has a good brand to get things done.”
At the ALIS event, GlobeSt.com also sat down with Paul Whetsell, who was just appointed president and CEO of Loews Corp.’s Loews Hotels Group, as GlobeSt.com previously reported. Whetsell tells GlobeSt.com that “this is going to be a good year,” when asked about his hotel forecast for 2012. He added that there isn’t as much uncertainty out there, which leads to less sitting on the sidelines. He also predicted that “There will be more deals being done” in 2012.
GlobeSt.com also ran into Sumner Baye, president of International Hotel Network LLC, an attendee at the event, who is “cautiously optimistic” about hotels in 2012. One of the main reasons for his view, which was echoed by panelists in the opening day sessions, is due to the European global economy and the domino effect that it has. “The situation in Greece is very bad and other countries, like Spain, Italy and Portugal are also being affected,” he said. “Our hospitality industry is a worldwide industry today, and several of our major brands are all over the world.”
One positive point Baye pointed to on the global front is China. “The Chinese are still very strong and are making investments in North America.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
