The hotel sector: a land of opportunity

The hotel industry, and tourism generally, is one of the world’s main growth industries. Recent global events have shown that the industry is still cyclical and can be hard hit by economic and political events. However the industry has also demonstrated its resilience and has bounced back after every setback.

The 21st century hotel industry is facing up to a number of issues including the following:

• A changing capital structure which sees increasing separation of owners, operators and debt financing arrangements;
• The internet and its impact on consumers and operators along with the advent of new intermediaries;
• Globalisation, consolidation and branding;
• Planning and regulation, including the frequent request to include a hotel as part of a multi-component development;
• Finding and evaluating suitable sites;
• Alternative uses for property, and the opportunities to brand existing hotels.

The hotel industry has recently experienced a resurgent and strong trading environment in most countries, but is now facing uncertainty and, in most countries, a downturn in fortunes. This is caused by the economic downturn, which has developed into recession in many countries, and the impact of the ‘credit crunch’. The bounce-back will come, as it always has in the past, although the timing is uncertain and is largely dependent on the economic environment. Although trading is currently subdued and development financing is difficult, now may well be the time to begin planning future development – hotel projects take a significant time to materialise and now may be the time to plan for the next cycle.

This sector is a land of opportunity and if this is a journey which you are keen to take, whatever your level of past experience in the sector, Melvin Gold Consulting Limited is well equipped to assist you on your exciting next steps in the hotel sector.