No Lack Of Opportunities, Greatness

IT IS A MOMENT IN TIME LIKE THIS that I truly appreciate HOTELS’ unique global position in the marketplace. While there are now growing concerns about the economy in the United States mainly due to a serious slowdown in the residential housing market, I can turn my attention to India, China, the GCC states and eastern Europe, among others, to find exciting expansion stories.

By Jeff Weinstein, Editor in Chief -- HOTELS Magazine, 11/1/2007

IT IS A MOMENT IN TIME LIKE THIS that I truly appreciate HOTELS’ unique global

position in the marketplace. While there are now growing concerns about the

economy in the United States mainly due to a serious slowdown in the residential

housing market, I can turn my attention to India, China, the GCC states and

eastern Europe, among others, to find exciting expansion stories. Of course, the

same applies to the big hotel chains, who need new markets to develop and emerging

markets that can help deflect weak operating performance from one region to the

next. For example, Moscow is now considered one of the most expensive cities in

the world. Combine that with very reasonable operating

costs and you have a recipe for big success.

In today’s shrinking world theater, even the smaller

yet nimble entrepreneurs with global ambition have

opportunities to expand their footprints in eastern

Europe and beyond. I recently talked to an executive

with one highly capitalized lifestyle hotel company

from California on a swift buying pace, including the

hot skiing market of Bansko, Bulgaria, where his

company is opening a 109-room boutique hotel.

While Russia has seemed so important, yet for years

so elusive as an investment opportunity, today I talk to

many investors making deals there and throughout the

Baltics. A developer recently told me about working

with Kempinski in Moscow and how she is creating

a partnership to develop and roll out a mid-market

product in several Russian markets. Interstate Hotels

& Resorts is another company developing mid-market brands there, as well as

branded full-service hotels, including a new Hilton in Moscow. And of course the

powerhouses like Marriott, IHG and Starwood are either there or being courted.

This month, our lead story in Global Update is all about Kazakhstan and it

does not require even a single Borat joke to be compelling. This oil-rich nation is

a great example of an opportunity truly becoming a reality. Mary Scoviak talks

about real GDP growth estimated at 9.2% for 2007, potential created by relocation of

the capital from Almaty to Astana, diversification of the economy, and the future

promise of a tourist market.

I don’t think I have to tell you too much more about the ongoing booms in

China, Macau, India and the GCC states, but it all adds up to a very vibrant future.

So even if you have heavy exposure in the United States and might get pinched a

bit in 2008 (and the jury is still out on any downturn, as current data and projected

performance forecasts remain pretty strong), for a number of you with global

exposure, overall company execution looks great.

Last but certainly not least, I have to mention our Hotelier of the World awards.

First let me congratulate the nominees, who are all so worthy of winning the

award, including Thomas Hewitt of Interstate; Jonathan Tisch of Loews Hotels;

Reto Wittwer of Kempinski; Elisabeth Gurtler of the Hotel Sacher, Vienna; James

McBride of The Carlyle, New York City; and Hans Wiedemann of Badrutt’s Palace,

St. Moritz, Switzerland. The readers have chosen as the winners Raymond Bickson

of Taj Hotels Resorts and Palaces, and Dr. Natale Rusconi of the Cipriani,

Venice—two legends known for their charm, grace and impeccable service

standards. In an industry increasingly filled with dealmakers and financiers, we are

thrilled to be honoring lifelong hoteliers in the truest sense. I only hope we don’t

run out of the likes of Bickson and Rusconi anytime soon.

Jeff Weinstein, Editor In Chief