ATLANTA–– The 19th annual Hotel Investment Conference here has provided existing and potential investors plenty of incentive to put still more money into the hotel industry, but also acknowledged that this window of opportunity may be closing soon. With some 850 attendees on hand, Arne Sorenson, executive vp/CFO, Marriott International, noted “hotel real estate has become a much more favored place to invest capital.” In the Presidents Panel, Neil Shah, president/COO of Hersha Hospitality Trust, agreed. “Institutionalized capital is coming into the industry like never before. Wall Street has started covering it and it brings more transparency to the industry,” he said. During the same session, however, Anthony L. Berger, COO Wyndham Hotel Group, was more cautious, particulary with the proliferation of brands. “The indsutry runs the risk of being overextended,” he said, adding “this industry relative to lower industries, has realtively low barriers to entry.” Meanwhile, statistical evidence is starting to show that the good times, while probably not coming to an end soon, may be tempered a little. Mark Lomanno, president, Smith Travel Research, noted “suply is now growing faster than demand and occupancies are on the decline.” He did add, however, that the second half will be “considerably stronger than the first half in demand.” Economist Dr. Dhawan, noted that housing weakness has not spilled over to other segments.” He also noted “that the Federal government will keep a recession at bay with rate cuts.” Lomanno also commented that “weve had four consecutive months were the number of rooms purchased was slower than last year.” Sorenson, for his part, is not concerned about the economy, at least for the long term. “2007 is off to a slower start, part of it is a pause. Theres some anxiety in the markets, but it is primairly driven by consumer markets not business markets,” he said.
