Portfolio
Old Town at Sahl HasheeshHurghada, Egypt
/ 0 comments / Permalink
My keynote speech, delivered to 420 attendees at the Russia & CIS Hotel Investment Conference in Moscow last week, was entitled, “Turning Troubling Trends Into Opportunities.” Even though I pointed out many problems associated with hotel development in this part of the world, the presentation was well-received and much appreciated. (At least that’s what they told me.)
While the delegates were aware of rising construction costs and declining hotel occupancies, the worldwide credit crunch and the volatility of the stock market, escalating payroll expenses and staff recruitment challenges, cumbersome bureaucracies and opaque regulations … most see the glass as half full – of vodka no less – and are bullish on the opportunities in the region.
Why?
• Many clients are wealthy enough to fund their own developments without needing to seek international sources of financing.
• While the Russian stock market just hit a three-year low, only one percent of the population has money in the market (compared to 45% in the US).
• There is a significant shortage of quality hotel rooms in Moscow, St. Petersburg, and many of the former Soviet countries – and lots of interest from international operators.
• Average daily room rates in Russia are among the highest in the world. They’ve had RevPAR growth in the double digits for each of the last three years.
With 19 active projects in the region, WATG is well-positioned to be a major player in this market. And while growth may decline to single digits in the near term, it will still outpace Western Europe and the US.
WATG was well-represented at this conference by John Goldwyn, Jeremy Heyes, Aaron Minson and Nick Poynton. We came away with new contacts, stronger relationships, a better understanding of the market’s pitfalls and possibilities, several leads and prospects, and bellies full of caviar.
 |
|
In front of St. Basil's Cathedral (Red Square) L-R: Howard Wolff, Nick Poynton, John Goldwyn, and Aaron Minson |
/ 0 comments / Permalink
 |
|
Rory and Nick with Dorsai Khaghani in front of the Chihuly sculpture.
|
/ 0 comments / Permalink
 |
/ 0 comments / Permalink
/ 0 comments / Permalink
Flying into Johannesburg over miles of undeveloped Africa, I'm reminded of all the bad press this continent gets. On the ground, however, I'm immediately overwhelmed by the warmth and enthusiasm of the people here in South Africa. My taxi driver chats happily about his job and how fortunate he was to get it. He leaps out the car at the hotel, whisks my bag out of the car, and wishes me a wonderful stay.
At the Hospitality Investment Conference Africa, I met delegates from all over the continent who were optimistic about the growth of Africa's hospitality industry.
Although often overlooked, I think Africa really has all the key ingredients for the development of successful industry—warm hospitable people (natural hosts), enthusiasm, unrivalled natural beauty and wildlife.
I look forward to us engaging in new projects on the continent as Africa emerges.
For some years, there has been a widely acknowledged correlation between building golf courses adjacent to residential and second home developments and a 15-20 percent uplift in the sales price of golf frontage units—regardless of whether the residents play golf or not. Golf is nothing short of a global phenomenon and has an army of devoted followers—both as spectators and players. The big personalities from the game have design studios who are busily creating new courses all over the world. People are excited by the idea of playing golf and the lifestyle it represents, particularly in emerging markets. Playing golf is a sign that they have "made it," and living in a community of like-minded individuals is often very attractive. It is also pleasant to look out onto a green open space while enjoying a drink on the terrace.
What worries me is there simply isn't the millions of gallons of water required to provide golf in many locations. In locations where rain is plentiful—such as in the UK, the US Pacific Northwest, in the mountains or much of the tropics, golf is a logical fit. However, in dry Mediterranean, maqui or desert environments, golf simply doesn't work without huge investment in desalination or other unsustainable means. We are frequently presented with clients who wish to turn deserts green.
This presents a challenge—we are a commercial firm working in every geographical location in the world, and are acutely aware that we are there to help clients maximize their return on investment in their land. We know that golf raises the value of this investment but we know that this comes at a price: shortage of water is one of the biggest environmental problems facing our generation.
What are we to do? This is a huge question that we should not be afraid to ask. We are currently thinking in-depth about what lies beyond golf in the desert and how we can find other, more sustainable ways to increase value and amenity for property on integrated resorts. We are also engaging with golf designers to make sure we team up and follow best practice with them in terms of using drought-tolerant grass species: re-use of grey water for irrigation and smaller fairways so that there is less to irrigate. We don't have all the answers yet, but rest assured that we are committed to a sustainable future. More to follow!
| Blog Home |
