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Ernst & Young Finds Asia Leads as Epicenter of New Hospitality Investment
By Big4.com Staff Writers
According to a study carried out by Ernst & Young, promising markets in Asia
are viewed as leading global prospect for new hospitality investment. As per
Ernst & Young Hospitality Investment study, that reviewed over 300 industry
executives all over the world, rates of capitalization for hotels are likely to
become stable and even augment during short-to-mid-term in United States.
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Brian Tress of Ernst & Young's Hospitality Advisory Services Group said, "Even
with the dramatic shift in the debt markets over the last few months, hotel
industry sector fundamentals continue to be strong."
Respondents forecasted that on the whole, hotel investment policy will be
dominated by those making new facilities for upper-upscale and luxury segment,
which is supported all over the world by leisure, convention and corporate
users. Hotels, that do not provide beverage and food amenities, but have good
margins and low construction costs will continue to gather investor dollars.
As per the study, Asia exceeded other regions having the largest potential for
the hospitality investment. India and China opened their markets to the foreign
investment, and Asia will turn out to be a key center of investment in the
coming years. It is also quite interesting that Europe is edged out by Latin
America in investor popularity poll. Some respondents believe that the greatest
disadvantage for investment worldwide is the potential for political
unsteadiness in growing markets.
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