Risk Analysis with Long Term Vision
First, from a macro perspective, Mr. Kang and Mr. Shen are optimistic about the outlook of hotel. They thinks hotels generates long-term and stable cash flow, which can balance entire development and add value to assets. By the time real estate returns gradually to normal, hotel investment will become a good business.
Hotel Investment Analysis
Mr. Kang emphasized that it is impossible to make a sweeping generalization on judging hotel investment. Hotel owners should evaluate hotels according to their cities, locations and product types. If owners judge hotels from a strategic perspective, hotel values are different. Besides, he believes that leisure tourism product should be owners’ next focus as the product is going to induce massive business opportunities. Hotel owners will then benefit from them.
Decline Unwise Development, Rejuvenate Existing Hotels
Both guests believe that the traditional business hotel will face great challenges very soon. In the future, the hotel market development will not rely on blind investment, but repositioning and redevelopment projects to rejuvenate existing hotels. Therefore, the future hotel owners should also focus on how to differentiate their hotel products and induce more demand.
Believe, But Not Be Superstitious
To the last part of the discussion, Mr. Kang advised the owners should believe in hotel management companies, but do not be superstitious. Owners should have control rights and budget control of their hotels. He also believes that the traditional management model is changing in unnoticed. He even made a bold prediction that the franchise model will emerge in China in 3 years.
Horwath HTL has created a new brand identity – CHAT, tailored for China’s hotel and tourism industry! CHAT, the abbreviation for China Hotels And Tourism, encourages industry people to gather, create dialogue and network through the platform, as well as exchange and share experience and knowledge. CHAT Beijing is an enhancement of the “China Hotel Development and Financing Conference”, which has been held for eleven years in Beijing. We further focus the conference specifically on hotel and tourism development and investment issues. There are 650 delegates attended 2015 CHAT Beijing with the largest segment being domestic hotel and tourism developers and owners. CHAT Shanghai is an upgrade of our annual “China Hotel Market Review and Outlook Seminar”, which has been held over the past six years. CHAT Shanghai focus on hotel asset management and operations. 510 delegates attended CHAT Shanghai in September 2015. CHAT Beijing and CHAT Shanghai held in Spring and Autumn respectively cover the full hotel and tourism business cycle from development and investment to asset management and operations. CHAT will enable you to achieve successful business development through its various powerful platforms!
About Horwath HTL
Horwath HTL is the management consulting of Crowe Horwath International that specializes in hotel, leisure and tourism industries. Established in Asia in 1987, Horwath HTL has consulted about 4,000 hotel and tourism related projects throughout the region (including over 1,200 projects in China) for clients ranging from individually held businesses to the world’s most prominent operators, developers, lenders, investors and industrial corporations. Horwath HTL now operates offices in several key cities throughout the Asia Pacific region, including Auckland, Beijing, Hong Kong, Jakarta, Kuala Lumpur, Mumbai, Shanghai, Singapore, Sydney and Tokyo. Our offices work closely together to ensure that our clients receive a multi-skilled international perspective for their projects. Horwath HTL is also supported by the Horwath database, the largest and most complete hotel and tourism related database in the world. No other firm is better positioned to meet today’s and tomorrow’s industry challenges than Horwath HTL – Experts in the hotel, tourism and leisure industries.