TOP STORY Video: Rohit Talwar of Fast Future: Will hotel companies abandon the asset-light strategy? LATEST NEWS FEATURES VIDEOS
Editor's comment 09/10/2019
Fast Future's Rohit Talwar had some interesting observations on the hospitality industry when we spoke to him at the recent Hot.E conference in London.
While focusing on the impact that the transformation to a digital economy has had on the travel sector, he also outlined some possible scenarios for hotel groups. One of these is a wave of consolidation, something that seems very plausible as the likes of Accor continue to buy up other hotel companies.
But another scenario Talwar foresees is an increase of distressed inventory hitting the market as a result of owners being unable to service their debt, and for this inventory to be acquired by savvy opportunistic investors or the very hotel companies that have vigorously pursued asset-light strategies in recent years.
Talwar's argument is that without an owner in the equation, the hotel brands' cost of operation comes down and they are able to boost their returns from properties acquired at low prices, before possibly selling them on after a five-year hold, when values have increased.
Is it likely to happen? You heard it here first.
George Sell, editor
Katie Houghton
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