insights from the recent 25th Deloitte Hotel Investment Conference - Miguel Guedes de Sousa

insights from the recent 25th Deloitte Hotel Investment Conference. Tuesday, 19th November 2013

Exclusive Reporting: At the beginning of November, over 400 leaders of the European hotel sector, gathered up at the London Dorchester hotel to listen to some of the world's biggest lodging players;

In my view, this event is one of the two top yearly events for the European Lodging industry and I will name just a few panelists.

On the brand side:

• Richard Solomons – Chief Executive – InterContinental Hotels.
• Frits van Paasschen- President & CEO Starwood Hotels & Resorts. Michael Glennie-President & CEO, Fairmont Raffles Hotels.
• John M. Scott III, President & CEO, Orient Express Hotels.
• Puneet Chhatwal – CEO, Steigenberger Hotel Group 

On the Investors side:

• Cody Bradshow – Senior Vice President , Starwood Capital.
• Coley Brenan-Principal, KSL Capital Partners
• Helder Pereira, Chairman, Redefine BDL Hotels
• Struan Robertson-Executive Vice President & Chief Investment Officer, Host Hotels & Resorts.

The general feeling, almost across the board, was of cautious optimism.

Even the world class economist Sir Roger Bootle or as some of us nickname him "Sir Doom and Gloom", has made an unusual statement that "contrary to previous years he is optimistic of the near future"

The hotels CEO's shared their views and pointed out some of the currents changes in strategies. The big changes I noticed where:

• The willingness of the big brands to start investing again in hotels. These investments will be limited, selective and strategic to the brands but it is a big change from the "Asset Light, Asset Right" that we saw for the last five years.
• Significant investment in technology is a key to the future success of the big brands. All the panelists emphasized that they invest and that they will continue investing significant amounts of money in the direct distribution channels as well as into the social media. The direct contact between the guest and the brand is the key to the success of the brands.
• Researching, understanding customer needs and adjusting the hotels to the needs and expectations of the new guests – Generation X and Generation Y.  Hangouts and lounges rather than the classical lobbies will be incorporated in the new hotels.
• Diverting bookings from the intermediaries or best knows to us as OTA's into the brand's own web sites. This will be done mainly by investment in mobile technologies, pricing and last room availability via own brand own sites.
• All global brands want to localize branded hotels in order to fit them to where they are located. Becoming a part of the local community and local scene.