Luxury Hoteliers: Soft Market Wonít Last Long

NEW YORK— At the “Carriage Trade: Luxury Segment” panel during the NYU Hospitality Industry Investment Conference, industry executives gave their take on the state of the economy and its effect on the luxury side of the business. Jim Brown, president of Rosewood Hotels & Resorts, said that he does not expect to see “any significant drop off unless everyone talks the economy down.” Moreover, such a drop would have to go on for at least 18 months to have any significant effect, he noted. Edouard Ettedgui, managing director of Mandarin Oriental Hotel Group, meanwhile, said that “a slowdown exists where we operate, which is in Asia. In Hong Kong and Singapore things are slow. Also, London is starting to show signs of slowing,” he said, adding that areas that are used to experiencing a boom, like New York and San Francisco, are also seeing a slowdown. Michael Glennie, svp/resort operations for Boca Resorts, said his company is seeing a softening of the corporate transient market. Sixty-five percent of Boca Resorts’ business, however, is in the the group market, and while that group is seeing “some fall off” they are also spending a lot once they get on property, said Glennie. Paul McManus, president/CEO of The Leading Hotels of the World, said that after a few slow months, his company expects to end 2001 just two percent below 2000’s figures, which isn’t bad, since last year was a record year for the company, he said. —Ruthanne Terrero