Hotel & Motel Management - November 3, 2008 - (Page 60)

60 News H&MM November 3, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Lodging Conference Continued from page 8 His remarks reﬂected much of what the attendees would hear over the next two days. “2009 is going to be a very challenging year; it’s going to be challenging for the hotel industry, it’s going to be challenging for every industry, it’s going to be challenging for our country,” he said. “But I think that this industry has shown in the past that it’s up to the task of weathering the storm.” A different economy “This is different than anything that we have seen before,” said Arthur Adler, managing director & CEO-Americas, Jones Lang LaSalle Hotels. Adler said JLLS Hotels is changing its business model to be more of an adviser. Many of the groups that own loans or assets may not really understand the industry and need guidance. Mitesh Shah, senior managing principal and CEO of Noble Investment Group, said his company will be challenged to continue to run its business in this capital market. “Values from that standpoint are going to be very much determined on what this economy is going to mean to businesses in general,” he said. Gamal Aziz, president and CEO of MGM Mirage Hospitality, said he sees the international market as a way to minimize the hurt from current U.S. troubles. “As far as these current economic conditions, as difﬁcult and as bafﬂing as they are, they really present an extraordinary opportunity, especially if you’re not limiting yourself to just being within the United States or North America. We’ve made tremendous strides in partnerships in China, in India, More Than Ever You Need Information and Insight To Chart Your Course. NOW A Hotel Real Estate and Finance Conference Designed for Today’s Hotel Owners and Investors FOUNDERS: Hunter, Hotel Brokers Since 1978 Georgia State University J. Mack Robinson College of Business, Cecil B. Day School of Hospitality PREMIER MEDIA SPONSOR: Hotel & Motel Management SPONSORS: Accor Hospitality America’s Best Franchising Best Western International Capmark Finance, Inc. Carlson Hotels Worldwide Choice Hotels / Cambria Suites Hilton Hotels Corporation Hostmark Hospitality Group Hotel Brokers International La Quinta Inns & Suites Marriott International Mumford Company Starwood Hotels & Resorts Tech Rentals, Inc. Wyndham Hotel Group La Quinta Inns & Suites Marriott International, Inc. McSam Hotel Group, LLC Noble Investment Group Panther Hospitality Pinkowski & Company PKF Consulting, Inc. Shaner Hotel Group Hunter Hotel Investment Conference in the Middle East, and there is a tremendous amount of money and a great deal of liquidity … in those emerging markets.” Aziz noted for a project like MGM’s CityCenter in Las Vegas, which cost more than $9 billion, foreign partnerships were crucial, including two Chinese banks that recently committed money to the project. “As much as this represents an awesome difﬁculty … it is also going to be a time where we look back and say, ‘This was probably one of the best opportunities we’ve ever had,’” Aziz said. Shah agreed, explaining that with crisis comes opportunity. “This business, as we all know, is cyclical. This business is tied to exactly how we’re doing from an economic standpoint,” Shah said. Adler said many investors are afraid of the perceived volatility of the lodging industry. However, hotels, even on a risk-adjusted basis, present a better investment than other types of real estate, he said. “Over the long term, they generate not only the same returns, but higher returns. And if you can time the market, if you are opportunistic, if you have the wherewithal to hold through the downturns and are not forced to sell by some external factor, you will be very proﬁtable in the business,” Adler said. Consumers are key “The consumer conﬁdence is of huge importance,” Aziz said. “You have now a disorientation of the consumer because they went from this euphoria of ’06 or ’07, where you had this wealth effect Now you have the opposite, the other extreme, where everybody has the poverty effect.” Aziz said the end result eventually will be somewhere between these two extremes. But he warned that unemployment crossing into 6.5 or 7 percent will weigh on the psyche of consumers, who may then question their ability to make a living. Aziz pointed out there is another silver lining. “It does make for a stronger company, though, when you go through a severe economic crisis— that learning, that experience really becomes a part of your DNA as an organization. It helps you tolerate the next crisis,” Aziz said. pheney@questex.com ADVISORY BOARD: Ashford Hospitality Trust Atlantic Hospitality Advisors Carlson Hotels Worldwide Daly Gray Public Relations GE Real Estate The Highland Group Hostmark Hospitality Group International Society of Hospitality Consultants (ISHC) Save the Date & Register Now HUNTERCONFERENCE.COM http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.hunterconference.com http://www.hunterconference.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 3, 2008

Hotel & Motel Management - November 3, 2008 Contents The Rate Debate Accor Defines Motel 6 Prototype Rollout Holiday Inn Eyes Upscale, Timeshare Perspective Economy Sets Tone at The Lodging Conference Mellow Vibe Meets Bold Design at HD Boutique Expo IH/M&RS to Focus on Going Green Legally Speaking Sales Clinic On Finance Travel Trends Cornell Insights Franchise Law HotelWorld Update Trends & Stats Energy Star Update Energy Star Update An Industry Connected People on The Move Annual GM Survey Point-of-Sale Systems IH/M&RS Product Preview Outdoor Lighting Refrigeration Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - November 3, 2008

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