Hotels near to bankruptcies

Four in ten hotel executives anticipate that more than five chains will go into administration in the next year.

According to the DLA Piper 2009 Europe
Hospitality Outlook Report European hospitality executives are less
optimistic about the health of their industry than their US
counterparts. The survey of 261 European hotel executives has
revealed a worse-than-expected outlook for the hospitality industry
with 79 percent of respondents predicting hotel chain bankruptcies in
the next twelve months. Only 39 percent of European hotel executives
expect the industry to recover in 2010, compared to 59 percent of US
hotel executives. Over half of European executives (52 percent) do
not expect a recovery until 2011.

However, for well-capitalised investors
there are opportunities in the current market – eight out of ten
respondents recognise the 'good' buying opportunities, with the
economy/budget hotel sector representing the most attractive
investment opportunity. The majority of respondents – 71 percent –
also regard investment in sustainable hotel development as a
long-term trend.