Asia/Pacific Has ?Turned Corner?

ASIA/PACIFIC? Despite the painful reality that the past several years have proven to be largely ?disappointing? for those bent on investing in Asia/Pacific hotels, the opinion shared by a perhaps surprising number of top-level international lodging industry executives is that a sense of stability may well be returning to that region. Setting the scene internationally via remarks included in his recent announcement of Marriott International?s first-quarter earnings, Chairman/CEO J.W. Marriott, Jr. admitted to ?continued weakness in many Asian markets.? This negative assessment was somewhat counterbalanced by his accompanying contention that the organization?s outlook for its international operations is nonetheless ?improving.? Providing further definition to the present-day Asia/Pacific hotel business situation, Carlson Hotels Worldwide President/COO Eric Danziger maintains: ?Now is a good time to acquire and grow, just as it?s a good time to be [back]in full control of one?s hotel operations [in the Asia/Pacific sector].? To this end, Danziger has been quick to back his words with deeds, pointing out that the company last year jumped at the chance to reacquire its master franchise for Southeast Asia and Australia. Recognizing the cyclic nature of the business, Danziger believes the Asia/Pacific region has ?definitely turned the corner.? As he says: ?With things beginning to look good, now is an opportune time to start planning for strategic growth [in that part of the world]again. A full return to a stabilized marketplace doesn?t look to be more than a year or two off. Accordingly, the time is coming when people will once again be anxious to visit? and stay with? brands with which they?re familiar.? On the other hand, Danziger similarly realizes not everything is progressing smoothly in terms of the overall Asia/Pacific picture. For instance, he concurs that Hong Kong is suffering from what amounts to a ?wait-and-see attitude? arising out of recently heightened China/U.S. tensions. ?Oftentimes in our business,? he offers, ?politics can be at least as important as economics.? Of course, Danziger is far from alone when it comes to being upbeat about ?a return to normalcy? in the Asia/Pacific region. Gathered at the 21st Annual NYU International Hospitality Investment Conference in New York City last month for a primarily positive look at the current state of the Asia hotel industry were such Singapore-based lodging industry leaders as: Theodore Teng, president, Asia/Pacific for Starwood Hotels & Resorts Worldwide; Richard C. Helfer, president of Raffles Holdings and chairman/CEO of Raffles International; Ichigo Umehara, president of Pan Pacific Hotels; and PKF Consulting president/CEO Patrick Quek who also served as session moderator. Joining them on the panel were Asia/Pacific regional director for Knight Frank Expotel William J.R. Gross and Jones Lang LaSalle Hotels Chairman/CEO Peter Barge. In line with the consensus aired by the international hospitality industry ?savants,? a collection of market-specific reports accompanied a PC-generated on-line opinion poll underscoring what appears to be an increasingly optimistic outlook regarding lodging arena conditions in that part of the world. Additionally, poll results similarly indicate a definite order of preference vis-a-vis business environment improvement and overall marketplace potential. Meanwhile, something of a more cautious approach is forthcoming from researchers, statisticians and executives alike at Jones Lang LaSalle Hotels. As graphically spelled out in the pages of the organization?s inaugural International Hotel Property Digest, conjecture is that the majority of Asian economies will have to wait until at least the year 2000 before economic revitalization is realized. Specifically, Managing Director Doug Hercher claims: ?The timing [of the Asian recovery]will be dependent on the economic restructuring of countries such as Japan, as well as the ability of the