Mixed picture for 2004, Berlin conference told

Mixed economic and political messages will continue to impact on hotel trading this year, but 2004 should provide some optimism for the industry.

That was the view of Nick van Marken, lead partner, hospitality advisory services, at consultants Deloitte, speaking at the 7th International Hotel Investment Forum in Berlin today.

Van Marken said that although occupancy levels in gateway cities across Europe were starting to rise, there would be no real strong recovery in market confidence until transatlantic travel rebounded and room rates started to climb.

But it was not all bad news for the industry. He added that the hotel sales market remained strong, with no reduction in the level of hotel transactions since 11 September 2001.

Van Marken expected this trend to continue, with new real estate investment trusts in the UK - provided they are given the go-ahead by Chancellor Gordon Brown in the budget tomorrow - adding a new dimension.

Public companies would continue to shed assets and move to the private sector, adding more stock to the market, said Van Marken.

InterContinental has already announced plans to sell up to £1b-worth of assets and Hilton, Whitbread, Millennium & Copthorne and others are all thought likely to follow suit.

Mark Finnie, managing director of European equity research at Deutsche Bank, also speaking at the conference, added that he thought asset ownership would be the biggest issue for hoteliers this year.

by Samantha McClary

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