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Pkf Hotelexperts Presentation 2006

Pkf Hotelexperts Presentation 2006



Hotel presentation Michael Widmann for PKF hotelexperts

Hotel presentation Michael Widmann for PKF hotelexperts



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    Pkf Hotelexperts Presentation 2006 Pkf Hotelexperts Presentation 2006 Presentation Transcript

    • Hotel & Event Profit Congress of Hotel Business 5-6 October 2006, Hyatt Regency Hotel, Warsaw Future of the Hotel Industry Michael Widmann, PKF hotelexperts, Wien www.pkfhotels.com
    • PKF hotelexperts Vienna • part of PKF (with more than 500 locations worldwide, including 20 hotel consulting offices) • specialised in: feasibility studies, valuation (single assets and portfolios), operator selection, negotiation of management/lease contracts, project development consulting, architectural consulting • focus of PKF hotelexperts Vienna on hotels/hotel projects in Central/Eastern Europe www.pkfhotels.com
    • Global growth markets • China (Shanghai...) • Russia (Moscow...) • Gulf (Dubai...) • India • Eastern Europe • regions with gas/oil/natural resources (Kazakhstan, Azerbaijan, Sudan etc.) • coasts (beaches/warm weather/year-round potential) • gambling areas (Las Vegas, New Orleans, Macau) • cruises www.pkfhotels.com
    • Challenges regarding hotel real estate • lack of possibilities for alternative use • in many countries: lower rent in comparison to office buildings - but higher investment per sqm • hotels' return on investment depends on category (five star hotels generally have lowest ROI) • long start-up phase of hotels • shorter (re) investment cycles • growing expectations of hotel guests (especially regarding resorts) www.pkfhotels.com
    • General hospitality industry trends • separation of hotel real estate and management • hotel groups listed on stock exchanges • sale of assets by hotel groups • mergers & acquisitions • international investors, private equity funds etc. on buying spree (especially from UK, USA, Arab countries) • professionalised operations (yield management, controlling, benchmarking etc.) www.pkfhotels.com
    • Demand trends • continuing trend towards short vacations & spontaneous decisions • event-oriented leisure planning • cheap, cheap, cheap or luxurious, luxurious, luxurious • city hotels: efficient & functional • resort hotels: romantic & sensual www.pkfhotels.com
    • Supply trends • all-inclusive offers • growing variety of accomodation options (serviced apartments, budget hotels, design hotels etc.) • price, price, price or service, service, service • usual classification becomes obsolete • differing products for short and long stays • specialised wellness offers • focused investments: USPs instead of covering all bases www.pkfhotels.com
    • Hotel types senior c. hotel sport hotel airport hotel economy hotel spa hotel budget hotel luxury hotel boarding house grand hotel resort hotel businesshotel womens' hotel art hotel hospital hotel country hotel pavillon hotel all-suites hotel atrium hotel design hotel childrens' hotel baby hotel vacation villas motel family hotel apartment hotel railway hotel seminar hotel .......... hotel club hotel www.pkfhotels.com
    • Changes regarding contracts • major international hotel groups do not want to sign lease contracts • if lease contracts are signed, they usually carry significant restrictions (cap clause, term limitation, ...) and unfavourable conditions for owner • growing trend toward management contracts • number of franchise contracts growing (but high costs; also: significant risk if concept without proven success) • hot trend: shared ownership concepts (time sharing, fractional owbership) and sale & lease-back options www.pkfhotels.com
    • Success factors • competitive environment (other hotels or markets) • general environment (demographical, economical, social, cultural and political factors) • competence, qualification and motivation of management and employees • marketing & technological know-how • image of hotel and its brand • access to distribution channels • long-term (cyclical and other) developments • good or bad luck www.pkfhotels.com
    • Success factor: intelligent overall planning kitchen FOOD & BEVERAGE restau- bar rants MEETINGS & wellness sports EVENTS pool foyer solarium sauna SPA LOBBY reception fitness recep- tion SHOPS beauty PARKING ROOMS www.pkfhotels.com
    • Success factor: intelligent room's layout • good ideas and bad ideas www.pkfhotels.com
    • Market potentials • hotel investments with an eye on operating costs (staffing, energy, water, maintenance) • avoidance of unnecessary facilities and services • strong focus on main target groups • innovative lifestyle products in all segments • specialised/differentiated wellness offer • hotels with USP/quot;photo opportunityquot; www.pkfhotels.com
    • Growth of global chains • the big get bigger... country hotels rooms 1 InterContinental UK 3.520 536.318 2 Wyndham USA 6.403 518.435 3 Marriott USA 2.656 479.882 4 Accor France 3.894 453.403 5 Choice USA 4.810 388.618 6 Hilton USA 2.161 349.965 7 Best Western USA 4.110 310.245 8 Starwood USA 748 229.247 9 Carlson USA 881 147.624 10 Hyatt USA 412 99.364 www.pkfhotels.com
    • Strategies of growth for hotel groups • mergers & acquisitions • franchising (except luxury segment) • management contracts (instead of lease contracts & ownership) • liquidity through divestments (sale & manage-back) • shared ownership projects • market & product segmentation strategies • global branding www.pkfhotels.com
    • Phases of hotel development in CEE • #1: 4* hotels in Warsaw, Budapest, Prague • #2: 4* hotels in Bucharest, Sofia, Bratislava, Zagreb, Moscow, St. Petersburg etc. • #3: 3/4* hotels in main Central European cities • #4: 5* hotels in Budapest, Prague, Moscow & St. P. • #5: 3/4* in major cities in Russia/Ukraine • #6: 4* hotels in Tblissi, Baku, Almaty, Astana, ... • #7: budget hotels in Poland, followed by other countries • #8: lifestyle hotels in CEE www.pkfhotels.com
    • Hottest CEE markets from the perspective of a hotel group development manager: • Moscow • Kiev • St. Petersburg • secondary cities in Russia (and partially Ukraine) • coast of Croatia & Montenegro • quot;Stansquot; (especially Kazakhstan) & Caucasus region • secondary cities in Poland, Czech Republic, Hungary, Bulgaria, Romania www.pkfhotels.com
    • Development opportunities in Poland • one 5*+ hotel in Warsaw • selected mid-segment (2/3*) hotels in Warsaw • budget hotels in all Polish cities • mid-segment hotels in secondary Polish cities • 4* resort hotels in selected tourism destinations www.pkfhotels.com
    • How to earn good money with hotels in Poland? • stay away from 4/5* hotel projects in Warsaw for the next five years • invest in budget hotels (multi property development necessary) in Warsaw and in all secondary cities • invest in no-frills mid-segment hotels in major secondary cities • lifestyle and design-oriented products in all segments • develop shared ownership/sale & lease-back projects in key tourism destinations (Sopot, Krakow, ...) • select hotel groups and brands which fulfil future expectations • keep an eye on investment expenditures & planning www.pkfhotels.com
    • Key issues to influence success • select right partners • plan intelligently • control costs • make product sexy www.pkfhotels.com
    • Contact info Michael Widmann PKF hotelexperts GmbH Hegelgasse 8 1010 Vienna Austria telephone +43 1 5120707 facsimile +43 1 5120607 e-mail michael.widmann@pkfhotels.com internet www.pkfhotels.com www.pkfhotels.com