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Discussion in 'Luxury Hotels' started by uggboy, Jul 19, 2013.
|| Luxury Hotels Dominate Asian Market ||
Fascinating insights, but is it sustainable?
Not surprising, but it will burst like all bubbles.
As long there's demand I can see the advantage of investing into luxury hotels, especially now, Asia is growing, there's a demand for travel and as people travel more often they demand different standards, so luxury will grow for awhile now, but it's important that they keep rooms affordable too, that's the one new challenge, the second is, keeping "whatever" the price is rooms occupied and profitable. Having said this, there's an influx of investment into the budget / middle market segments too, this market has also a great future especially for Asia where business travel "hots" also up in parallel to leisure travel.
In this industry there will always be bubbles, but there will always be a certain demand too. So it's a win / win or even situation, that's why many investors like to invest into the hospitality sector in the first place, I presume, plus for every new hotel, this means new inventory and this also means more choice / diverse price points for guests too. Again, a win / win or even situation. No one really looses as long the economy hums and the people can afford plane tickets and room nights.
I personally see the bigger threat to hotels from unprecedented world events think 9/11 or the SARS Virus. This worries hotels much more right now IMHO.
I remember finding out after I got back from a trip to HK/SIN/THAI that SARS was starting to break out. Up until I read the news, I just thought it weird that everyone was asking how I was feeling. interesting bit - I was at the hotel where SARS supposedly "broke out" or was where it started spreading.
You can see the Four Seasons building everywhere in China, they seem to want to cater for the business traveller rather than build hotels where tourists want them