Hotels Are Back?

The property type was down, but it's not out, DLA Piper's Sandi Kellerman reports in her new 2011 Hospitality Survey for the Americas Lodging and Investment Summit. 88% of respondents were bullish on hospitality for 2011.
 
The most new investment will come from investors in China, likeGreat Eagle Holdings, which recently put money in the Langham Hotel under development at 330 N. Wabash, and also from REIT and private capital, respondents predicted. Sandi says REITs have been sitting on the sidelines for a long time and hotels seem like a good opportunity for new investment since some of the supply, especially in the luxury segment, is being absorbed.
In the survey, 69% said social media and Internet reviews were impacting their business. Some indicated they've hired a full-time employee just to monitor their hotel's ratings on Trip Advisor and check the chatter on Facebook and Twitter. The availability of info to potential customers has made managers more accountable for their behavior, Sandi says, allowing owners to make management changes more swiftly as needed. And remember how we tried to scare you about bedbugs this summer? Survey says the trend was overblown; just 15% of hotel clients thought their business was affected by the scare.

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