With the experience of Dubai fresh in their minds, hotel owners and operators are now looking to spread both their risk and their geographical reach.
Dubai’s meteoric rise from a small pearl-fishing port to the eighth wonder of the world – even boasting a seven-star hotel – has been matched only by its fall.
The lesson has not been missed by the world’s hotel operators and consultants. And that lesson is this: spread your risks.
Philippe Doizelet, a Paris-based manager of consultant Horwath Hotel, Tourism, and Leisure, says: “Extreme liquidity created a bubble of over-supply. Apartments that were not even built were being bought and sold four times over, and hotels were over-trading at 85% occupancy, charging $350 a night.”
Then the bubble burst.