Global hospitality insights, issues and trends: 2010 - Ernst & Young - United States

Key drivers in determining winners and losers in the hospitality industry: 2010 and beyond

With consumer confidence at historical lows and weak economic fundamentals, the global lodging industry in 2009 suffered its most severe demand and rate contraction since the Great Depression. Now that we have entered a new decade and the first signs of recovery are showing, companies are finding new and creative ways to enhance revenues, cut costs and position themselves for future growth.

As hospitality executives continue to face a wave of challenges, we offer fundamental insights into today’s ever-changing environment and reveal key trends that will be top-of-mind this year. Discover more about:

• The outlook for commercial real estate and the new face of commercial lending
• The ways in which companies can differentiate themselves in today’s market
• Measures companies can take to free up cash and position themselves for success
• The reasons for the decline in global tourism and the future outlook on business and leisure travel
• The challenges of financial reporting, including the debate around the merits of US Generally Accepted Accounting Principles (GAAP) standards, which embody specificity and “bright lines,” versus International Financial Reporting Standards (IFRS), which are principles-based and inherently more judgmental
• The current transaction market, the appetite for hotel acquisitions and the outlook for distressed properties
• The paradigm shift of real estate companies using IPOs to address capital requirements, reduce debt and take advantage of distressed investment opportunities
• The outlook for the luxury hotel sector, upscale hotel REITS and investor sentiment
• Mounting concerns that depleted reserves and the trajectory of economic recovery may require a significant number of restructurings to take place
• Speculation over when the next new lodging cycle will take place and forecasts on the industry for the remainder of 2010

While it’s true many expect the credit crunch to ease this year, the road to recovery will likely be longer, which could foster very different courses of action taken by companies to improve their bottom line.

To learn more about how you can maintain strong client retention rates and secure new business in today’s competitive landscape, download our not-to-be-missed report “Global Hospitality Insights: Top thoughts for 2010 ” (pdf, 821.4kb) today.