Hospitality leaders and investors remain confident in the outlook for the sector despite forecasting a deterioration in margins over the next year, the European Hotel Investment Conference heard.
Radisson’s Federico Gonzalez said: “We designed a five‑year plan in 2018 [and] felt positive in 2019. [But] I feel more positive now. There are huge opportunities around the world no matter the economic situation – more today than in 2019.”
But he warned: “There will be a deterioration in margins in the next 12 months because of energy costs. We need to obsess on revenue management.”
The Indian Hotels Company managing director and chief executive Puneet Chhatwal agreed, arguing: “There are more opportunities than a few years ago. The sector became more efficient than it ever was.”
Krysto Nikolic, senior managing director and global head of real estate at private equity fund ICG, said: “We try to look beyond the immediate recession. The most destructive thing is over-reacting to short‑term challenges.”