The Hotel Times - December 2008 - (Page 8)

COVER STORY: GLOBAL ECONOMY Where bottom is the Industry waits to see when global economy will bounce back ? BY PAUL J. HENEY AND JENNIFER KOVACS E D I TO R I A L D I R E C TO R / S E N I O R E D I TO R T alk to any hoteliers, developers, lenders or brokers, and they all seem to agree on one thing—2009 will be a year of economic recession across the globe. “The only debate is about how deep and long the recession will be,” said Daniel Thorniley, SVP of The Economist Group. Thorniley said in terms of the money expended as a proportion of gross domestic product globally, the current crisis is not as deep as the one in 1929 or some events in the 1980s and 1990s. But we are not through with this event’s shock waves. “By all accounts, it will be a very challenging year,” said Bob Eaton, executive managing partner of PKF Capital. “Our current forecasting sees [revenue per available room] decreases industrywide well into 2009.” And finding financing for new projects, while not impossible, will be an uphill struggle. “We anticipate that the logjam of properties seeking financing will have a very difficult time. The financial mar-

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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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