Spread's the word - Steve Killick

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.

Click here to read the full article in MIPIM News 3, 2010.

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