Hoteliers Believe “Worst of Recession is Over”

Tuesday, 02 March 2010 11:54

SINGAPORE — In the newest edition of Horwath HTL’s Global Hotel Market Sentiment Survey, hotel operators claim that the worst of the economic crisis is over, and 2010 will see the beginning of a recovery.

“It’s too early to say if this feeling will translate into tangible results this year, but if the market feels we are at the bottom and the only way is up, that can only have a positive effect on the industry,” said Robert Hecker who heads Horwath HTL in Asia.

According to survey results, there’s a change in perception from six months ago, when the majority of respondents believed conditions would get worse, than they were at the beginning of last year.

Regions exhibiting the most resilience to the global recession came back the strongest, with Asia and Oceania moving from scores of -41 and -48 six months ago, to 47 and 42 today. Europe, the most pessimistic region at the time of the last survey, just entered positive territory and feel 2010 will be the same as last year — not worse. Hoteliers in America feel more positive about the coming year than they did in the middle of last year. And most respondents feel their local markets will stay the same, or slightly improve over the coming year in average room rate and occupancy, and that their own hotel will outperform the market. Participants also see ADR remaining the same in 2010, with weak corporate and leisure group business demand; they do expect a slight improvement in occupancy.

 

Intrawest Auction Rescheduled

Tuesday, 23 February 2010 11:56

VANCOUVER — Vancouver-based Intrawest ULC and its owner, New York-based Fortress Investment Group LLC, have been given an extension from creditors on the foreclosure auction scheduled for last week and now set for Feb. 26. The lender, led by New York-based investment bank Lehman Brothers Holdings Inc., have sought control of Intrawest since it missed a final payment in December on a US$1.4-billion loan. Intrawest ULC owns, among other assets, the Olympic skiing venue Whistler Blackcomb, Mont Tremblant in Quebec and Stratton Mountain in Vermont.

Intrawest has been selling off assets to pay down its debt. Most recently, it sold Panorama Mountain Village in British Columbia and Sandestin Golf and Beach Resort in Florida to raise about US$65 million. Other Intrawest sales included Copper Mountain in Colorado for about US$100 million and Squaw Valley ski resort and the The Village at Squaw Valley in California for an undisclosed amount.