The Hotel Times - December 2008 - (Page 3)

BUSINESS OUTLOOK » BY STACY SILVER Opportunities still exist for many atience and agility are the two qualities savvy hoteliers will need as we enter 2009. Patience will be required to navigate your way through the credit swamp, which is currently as easy to swim across as a tar pit. In addition to patience, hoteliers will need persistence and commitment. Probably within the next 60 to 90 days we will have a much better idea of what the future global economic picture will look like and, equally important, what the availability of capital will be. Until then, patience is the watchword. P Patience will be required to navigate your way through the credit swamp. At the opposite end of the spectrum, agility will be required to move quickly as the market begins to take shape. Adapting to the “new rules” of the emerging global economy will require focus, precision and the courage of your convictions. When I ﬁrst started in the business, the Resolution Trust Corp. had just been created to deal with the fallout from the savings and loan crisis. In hindsight, the agency created unprecedented opportunities for the patient and agile hotel owner and developer. It is still too early to determine whether history will repeat itself, but there certainly are plenty of well-capitalized owners and developers out there with equity in hand, waiting for the right time and the right deal. I am inclined to think the coming buying opportunities won’t be quite as plentiful, but there certainly will be a plethora of prospects coming to market. The window may open and close quickly, www.TheHotelTimes.com and only those with foresight and commitment will come out winners. Risk-takers are amassing resources around the globe to take those bold leaps—I saw this ﬁrsthand at the Russia & CIS Hotel Investment Conference that was held in Moscow in October. At the time, Russia was one of the top three countries in terms of macroeconomic growth, although plummeting oil prices and the subprime debt crisis are presenting major challenges and slowing its ascent. Many people’s perceptions of Russia are similar to the days of the Wild West in the U.S., but perception is not reality, according to panelists at the conference. Economist Daniel Thorniley put it best, tongue in cheek: You can do business in Russia—your Russian partner won’t steal from you; and while staying at The RitzCarlton, you will not get bumped off by the Russian Maﬁa. There are numerous other pockets of opportunity throughout the world, such as India and China. In both cases, there is signiﬁcant undersupply and growing demand from both in-country and inbound travelers. The world is getting smaller and travel is becoming an integral part of doing business, no matter the region, country or political climate. We have entered a new global reality. I hope you have all the tools and information you will need to succeed. And don’t forget: Two of the most important tools you will need are patience and agility—now more than ever. Survival depends on ability to act, not react ssilver@questex.com Business development director December 2008 The Hotel Times 3 http://www.TheHotelTimes.com

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The Hotel Times - December 2008 Business Outlook Contents In the News Where is the Bottom? Capital Outlook Timeshare Report In Closing

The Hotel Times - December 2008

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