A look at challenges in six markets around the globe
 
A look at challenges in six markets around the globe
06 DECEMBER 2018 8:18 AM

Here’s a look back at how some markets, including Portland, Oregon, Portugal and Sochi, Russia, are faring amid opportunities and challenges, including supply and demand dynamics.  

GLOBAL REPORT—Hoteliers in markets from Portland, Oregon, to Portugal have something in common: They’re all looking to capitalize on opportunities to drive demand while overcoming their own unique challenges. 

Here’s a look back at a series of articles from Hotel News Now over the past six months that offer insights into how some markets are faring.

A boom in Portugal’s tourism is driving the country’s healthiest hotel performance in two decades, namely from its two major cities Lisbon and Porto, Hotel News Now contributor Tamara Thiessen reported in June. But analysts worry a persistent labor shortage in the region will continue to create challenges with investment opportunities. Global investors are also having a hard time finding suitable locations to develop.

“The major international hotel brands are looking to enter in Lisbon and Porto, but they haven’t found yet the sizable property in the required location to install the concept,” said Gonçalo Garcia, director of business advisory Cushman & Wakefield’s hospitality division in Lisbon.

Hoteliers in Estonia’s capital of Tallinn are seeing the benefits of coordinated efforts to change its reputation among travelers as a heavy party destination, HNN’s Terence Baker reported in June. Much of the help is coming from government officials placing new regulations on alcohol in hopes of attracting other traveler types.

The hotel industry in Sochi has reported improved performance over the last few years, but some worry tourism could take a hit come May 2018 when the new Crimean Bridge opens, HNN contributor Vladislav Vorotnikov reported in July. The concern is that the bridge, an east-west road connecting to the Crimean Peninsula, could divert travelers. Both Crimea and Sochi have been gaining popularity as winter destinations among regional travelers.

“Higher-level hotels have also been increasing rates, with (average daily rate) there increasing by 900 rubles ($14.33) to 8,100 rubles ($128.95),” said Tatiana Veller, head of JLL’s hotels and hospitality group in Russia and the Commonwealth of Independent States.

Hotel owners and operators in Portland are seeing the effects of new supply in the market and are looking to boost demand by offering more unique experiences, HNN’s Dan Kubacki wrote in July.

“While domestic travel certainly has increased over time, the biggest increase is in foreign travel coming in to Portland,” said Chris Bebo, corporate director of operations at Provenance Hotels.

“We create menu offerings in our restaurants that reflect that changing demographic and create curated experiences here in Portland that help us tell the Portland story specifically to those who have never been to Portland before or who are traveling from outside the country.” 

Meanwhile, while some Caribbean island nations still hadn’t fully recovered from a series of hurricanes in 2017, speakers at last month’s Caribbean Hotel Investment Conference and Operations Summit in Bermuda said overall performance and pipeline numbers are up, which means investment opportunities are there, reports HNN’s Stephanie Ricca.

“Demand for the region is incredible—it’s grown every year for the past seven years,” said Parris Jordan, VP with HVS New York and Managing Director of HVS Bahamas. “That demand helps drive investments.”

Egypt is also making a comeback, particularly as a favorable destination for both hoteliers and owners, HNN’s Baker reported this month. Sources said there’s been a number of factors strengthening its recovery and boost in hotel development, including new investment laws passed in 2017; a growing Egyptian middle class; and the reappearance of international travelers visiting since terrorist incidents.

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