PHOENIX Stating the obvious might well have been a hallmark of the Lodging Conference 2000 session on hotel investment and operations in foreign markets, what with a consensus opinion aired being that to succeed in the overseas markets, one has to have a full presence [over there].
As espoused by independent consultant Craig Farrell, Stephen Cox of SRE International (Americas Division), Rudy Reudelhuber of Hodges Ward Elliott and Brendan Sullivan of InterBank Brener Hospitality, not all overseas markets are necessarily created equal.
For instance, Cox called Mexico an extension of the U.S. marketplace and, for that reason, is doing very well. With regard to the Andean region s social and political climate, Cox said difficult times abound there, with only Peru showing any kind of stability and marginal attraction to investors. Across the rest of the southern continent, he contended: Argentina offers some shining opportunities, and Chile [weighs in as]Number 2. However, he added that Brazil may well have too much building going on [to make it a good investment].
On the subject of Europe, Sullivan maintained much of the focus falls on the United Kingdom, which has been fairly stable year-over-year, though yields have largely been of the single-digit variety. Accordingly, any real development opportunity could be in either the very high-end or the budget sectors.
Meanwhile, the word on Asia and The Pacific Rim was that any real transaction activity is still probably at least a year away, what with the culture in that part of the world generally being one of develop the real estate and hold on to it forever. (9/19/00) Michael Billig