BERLIN — The first day of the International Hotel Investment Forum in Berlin was notable for back-to-back-to-back keynote talks from the CEOs of the world’s largest hotel firms.
Elie Maalouf from IHG Hotels & Resorts, Mark Hoplamazian from Hyatt Hotels Corp., Federico González of Radisson Hotel Group and Louvre Hotel Group, and Sébastien Bazin of Accor each addressed some key issues that affect the hotel business in Europe.
They each praised the value of the hotel industry that is a force for good.
The CEOs also agreed they must not compete with one another in terms of sustainability initiatives. Rather, such initiatives will from cooperation and goodwill, leading to a tide that lifts all boats, as the saying goes.
Interest rates might stay steady, or high, and stubborn inflation might be the cause of that, but the hotel industry has in abundance the tools that can offset such economic ills.
Quotes of the Day
“I know I am too candid, but the world is a mess. The leaders do what they can do, but 50 years ago we would have spotted four or so leaders that you would point out that you would admire. Today? Would you point out any? I do not want to blame any of them, as leading a country is one of the toughest roles in the world. Nowadays it is also about social networks. You are on the defensive all the time.”
—Sébastien Bazin, chairman and CEO of Accor, on leadership and the uphill battle many leaders have in the face of a constant barrage of uninformed and unneeded social-media commentary.
"You have to help people understand sustainability. I always use the example of when you talk about carbon reduction ... it’s like asking someone to reduce their speed without a speedometer.”
—Federico González, CEO of Radisson Hotel Group and Louvre Hotel Group, on the importance of setting clear goals and measurable results in environmental, social and governance initiatives.
Editors’ Takeaways
It is hard even for a cynical observer to find too much pessimism in the European hotel industry, especially in a year that provides the Paris Olympics, the Barcelona America's Cup and the Germany-Austria Euros soccer championships.
Accor Chairman and CEO Sébastien Bazin said during his keynote address on the first day of IHIF that he had every sympathy for politicians trying to do their best for their countries in an epoch of 24/7 social media coverage, but that they should leave the private sector to do what it does best.
In the hotel industry, that “best” comprises adept navigation of multiple crises. Yet still the industry is blessed, is desired by consumers who see holidays as a right, not an indulgence, at least in most cases, and an Indian and Chinese demand that is set to grow and grow.
Inflation is still a sticky wicket, but it is not going to affect the bottom line immensely if operators and owners work sensibly together to maintain asset values and bottom-line economics.
—Terence Baker, news editor, EMEA
@terencebakerhnn
Things are good for European hotels right now, but there are signs things can get even better.
That’s the broadest possible takeaway from the first day of IHIF, but I feel it’s a fitting one. During the very first presentation of the day, HSBC global economist James Pomeroy outlined why there are more reasons for optimism than pessimism across the continent, even at a period when central banks across the globe seem to be delaying plans to cut rates.
But even with a delay, interest rate cuts are exceedingly likely across the globe before the end of the year, which boosts the investment outlook.
A growing global middle class, along with the increasing likelihood of Chinese travelers once again traveling abroad, could represent a huge opportunity for desirable locations across Europe, and leisure spending remains strong across the board. So even in an election year, people should feel good about the prospects of European travel.
—Sean McCracken, news editor
@HNN_Sean