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.

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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