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hotels ,” says Sean Hehir , principal , president and CEO of Trinity Investments . “ There ’ s not going to suddenly be a dearth in supply . In the near time , it ’ s a major financial and tourist hub . London been through a lot in the last 30 years and I remain bullish on the hospitality space .”
Starwood Capital Group is not straying from its investment strategy . The company counts 50 U . K . properties in its Principal Hotel Company . “ We continue to be active on the acquisition front in the U . K . and the continent ,” says Cody Bradshaw , senior vice president at Starwood Capital and head of European hotels . “ We wouldn ’ t buy a property in the U . K . based solely on GDP and RevPAR growth . That ’ s not our business model .”
Bigger picture , Bradshaw says that the rest of Europe , particularly Germany and its robust trade partnership , has a vested interest in keeping the U . K .’ s economy chugging .
“ The investors I ’ ve spoken to are not looking to exit right now ,” Hehir says . “ For new investors coming in , the question is around the currency and how that ’ s going to behave .” Those
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investors – Kett cites China and elsewhere in Asia , Bradshaw points to the Middle East – are circling for bargain properties , but they ’ re not seeing the smoke of fire sales . “ That ’ s where you need the passage of time to see where the trend is going to be ,” Hehir continues . “ I ’ m very focused to see whether there are opportunities to enter
" I don ’ t think London will disappear overnight ." — RUSSELL KETT , CHAIRMAN , HVS
the market again .”
Some of those properties may come from Starwood , Bradshaw says : It has sold five non-core provincial assets and it may sell another 10 , possibly achieving about £ 150 million in dispositions . “ Our strategy was always to capitalize on a fragmentary U . K . and European space .”
WHAT TO WATCH Crowley says it ’ s too early to say whether London will see an exodus of jobs , particularly in financial services , as
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Brexit unfolds . But he is most concerned about the performance of the U . K . economy and the effect on the performance of Dalata ’ s hotels there , along with the number of U . K . visitors to Ireland . The next step – triggering Article 50 , the declaration of withdrawal in the EU treaty – is expected in March , with formal ties finally cut in early 2019 . “ As the only English-speaking country in the EU , Ireland is likely to become even more attractive as a location for U . S . foreign direct investment ,” he says .
Hehir is watching tourism trends for a change in pattern , perhaps a shift to other European countries . “ People tend to have very short memories when it comes to major events ,” he says , recalling a visit to Japan shortly after the Fukushima nuclear disaster in 2011 and seeing a “ ghost town ” in Tokyo . A couple of years later , it had bounced back . “ It ’ s interesting how resilient people are and how quickly they can resume normal activity .”
Bradshaw is briskly optimistic . “ We can ’ t sit around and wait to see what ’ s going to happen five years from now ,” he says .
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SUNSET ON STARWOOD " THE REAL WORK BEGINS NOW . WE ARE OVERWHELMINGLY EXCITED ABOUT THE OPPORTUNITY TO MAKE WHAT WE CAN MAKE OF THIS NEW BIG COMPANY . AT THE SAME TIME THERE ’ S A LOT OF WORK TO DO , AND I THINK WE ’ RE QUITE MINDFUL THAT WE ’ VE GOT TO ROLL UP OUR SLEEVES ... THERE ' S DUE REGARD FOR THE ENORMITY OF THE TASK AHEAD OF US , BUT ALSO GREAT ENTHUSIASM ABOUT WHAT WE THINK WE MIGHT ACCOMPLISH ."
— ARNE SORENSON , PRESIDENT AND CEO OF MARRIOTT INTERNATIONAL , ON THE SEPTEMBER DAY HIS TEAM CLOSED THE DEAL TO ACQUIRE STARWOOD HOTELS & RESORTS AND BECOME THE WORLD ’ S BIGGEST HOTEL COMPANY , WITH 30 BRANDS
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