Mega events in Europe and South America from 2012 through 2016 will impact the global hospitality sector.
The lodging sector is expected to continue its recovery in 2012, despite the hurdles in the second half of 2011.
We are pleased to present our Global Hospitality Insights: top thoughts for 2012. The report reveals key issues and trends we believe will be the primary areas of focus in the global hospitality industry in 2012.
Transaction activity is anticipated to improve with a focus on core assets in key gateway markets. At least in the initial months of 2012, debt financing is expected to remain scarce, requiring investors to be resourceful. International travel and tourism volumes, driven by the burgeoning BRIC economies, are anticipated to increase.
Furthermore, mega events in Europe and South America from 2012 through 2016 will impact the global hospitality sector. As owners and operators strive to enhance value and competitiveness, industry best practices, such as sustainability and brand refreshment, will remain top of mind throughout the year.
Take a closer look at how these and other key issues will impact 2012.
Where do we go from here?
Although lodging market participants remain optimistic and the global lodging market is expected to grow in 2012, a number of analysts downgraded performance projections in the third quarter of 2011 because of deceleration in the broader economy and uncertainty about the path and speed of recovery.
In the US, there are divergent 2012 forecasts, with analysts estimating RevPAR growth from a low of 3.9% to more than 7.0%1 .
Europe is anticipated to see marginal increases in 2012 with inbound travel growth expected to slow from 5.6% in 2011 to 2.3% in 20122.
Lodging markets in the Asia-Pacific region are expected to continue performing well through 2012.
1 “PKF Forecasts 2012: Optimism Among Pessimism,” hospitalitynet.org, November 2011; and “STR Projections 2012,” Hotel News Now, November 2011.
2 “European Tourism 2011 — Trends & Prospects, Q3/2011,” European Travel Commission.
Next >>
