Mid-market hotels offer best ROI potential
SECONDARY CITIES IN TURKEY DON´T NEED FIVE STAR HOTELS INVESTORS ARE TOLD
· Mid-market hotels can deliver better return on investment than upscale
· Ego has no place in development decisions
ISTANBUL February 9 2011: Turkey needs quality, branded mid-market and economy hotels in secondary cities delegates were told at CATHIC (Central Asia & Turkey Hotel Investment Conference) which concluded in Istanbul (on Wednesday February 9 2011).
Haluk Kaya, Chairman, Bekay Property Partners received one of three awards presented by the hospitality industry at CATHIC 2011 Feb 8- 9 in Istanbul.
“Turkey is crying out for branded, consistent, quality mid-market hospitality products,” said Michael Collini of Hilton Worldwide. Poğda Demircan, Hilton’s Development Manager for Turkey agreed. He also pointed out that the room rate gap between upscale and mid-market hotels could be quite small in regional cities.
“At the end of the day, there is a maximum price customers will pay for a room in provincial city locations. This means that the greater operating profit will be for the mid-market operator who has lower development and operational costs, and not for the five-star properties.”
Potential investors and developers also heard the case for and against opting for Turkish and international brands.
The general consensus was that home-grown brands, such as the event’s supporters - Rixos, Dedemann and Marmara have excellent local knowledge and know what suits the market. On the flip side,the international brands have high global visibility and well-tuned operations.
“The conclusion is to avoid making choices based on ‘ego’ and choose the brand that will deliver the best return on investment for each project,” said conference delegate, Turkey-based Banu Ogawal.
Elif Egeli Nişanci of Jones Lang LeSalle Hotels summed up the issue by advising that development should not be for the sake of development: “Make sure that the supply matches the demands of market to ensure the project will maintain good rates.”
Delegates taste Turkey An evening at the stunning Marmara Esma Sultan provided an opportunity to digest the day’s events. This is a memorable venue, with views of the Bosphorous Bridge and Ortaköy Mosque, innovative design with a steel and glass structure within the walls of the historic palace, and delightful staff and service. All who attended agreed that this venue certainly has the ‘wow’ factor.
Spotlight on region-based award winners The CATHIC Hotel Investment Awards were presented to:
· Best new hotel in Turkey: Pera Palace Hotel Istanbul
· Best new hotel in Central Asia: Radisson Blu Iveria Hotel, Tbilisi
· Outstanding achievement award: Haluk Kaya, Chairman of Bekay Property Partners.
Central Asia and Turkey Hotel Investment Conference (CATHIC) - February 7 - 9 2011, InterContinental Hotel, Istanbul.
CATHIC Sponsors include: Accor, Aecom, BDO Hospitality Consulting, Best Western International, Carlson Hotels, Corinthia Hotels, Dedeman Hotels & Resorts International, Hilton Worldwide, Horwath HTL, Hyatt International, IHG, Jones Lang LaSalle Hotels, Jumeirah Group, Orient-Express Hotels, Rixos Hotels, Servotel Corporation, Starwood Hotels & Resorts Worldwide, Inc., Strategic Solutions, T&T Consulting, The Marmara Hotels & Residencies, The Rezidor Hotel Group, WATG and Wyndham Hotel Group.
CATHIC is co-organised by Bench Events and Questex Media, who also organise the Russia and CIS Hotel Investment Conference, Arabian Hotel Investment Conference, International Hotel Investment Forum Asia Pacific and the International Hotel Investment Forum Berlin.
About the Turkish Tourism Investors Association
(Türkiye Turizm Yatırımcıları Dernegi -TYD)
Established in 1988, TYD is a private, non-governmental association comprising the principal tourism investors in Turkey. TYD members represent two thirds of all private investment in tourism in Turkey. The organisation’s objectives include increasing Turkey’s share of the global tourism industry, bringing together entrepreneurs who wish to invest in the tourism sector, and promoting the importance of the tourism sector to the Turkish economy to a wide audience. TYD members represent two thirds of private investment in tourism in Turkey and the organisation works with government and non-governmental organisations in furthering its objectives. For further information, please visit www.ttyd.org.tr
About Bench Events
Bench Events has a long track record in co-hosting the premier hotel investment events in Europe and the Middle East. Bench Events’ Chairman, Jonathan Worsley, is one of the organisers and founders of the highly successful International Hotel Investment Forum now in its fourteenth year (www.berlinconference.com). In 2005, he was responsible for launching the Arabian Hotel Investment Conference in Dubai (www.arabianconference.com); in 2008 launched the Russia & CIS Hotel Investment Conference (www.russia-cisconference.com). In 2011 Bench Events will co-host the Central Asia and Turkey Hotel Investment Conference (www.cathic.com), International Hotel Investment Forum, Asia Pacific (www.ihif-asiapacific.com) and launch Hotel Investment Conference Africa, in Morocco. www.africa-conference.com
Bench Events’ sister company, JW Bench, is a benchmarking company that has successfully launched the Conference Bench and the Productivity Bench. An industry first, the Conference Bench, measures performance data for conference and banqueting space in 10 cities throughout Europe and the Middle East. www.benchevents.com
About HotelWorld Network – Questex Media Group LLC
The HotelWorld Network encompasses a series of publications and live events that provide news and networking to the largest group of hospitality professionals in the industry. HotelWorld Network delivers hotel industry news through its print publications Hotel & Motel Management and Hotel Design magazines in addition to its innovative breaking-news portal www.hotelworldnetwork.com.
The HotelWorld Network also offers cutting-edge educational content and valuable networking opportunities via its International Hotel Investment Forum (IHIF) Berlin, IHIF Asia Pacific, Russia & CIS Hotel Investment Conference, Distressed Hotels Summit, Central Asia & Turkey Hotel Investment Forum, HotelWorld Asia, and transform: design differently.