I visited the International Hotel Investment Forum this week in Berlin, at significant cost I might add, so I was pretty keen to get something out of it. There was an air of pessimism, certainly on the first day, coming from most people I interacted with. The exception was the more senior, publicly listed company representatives. No dirty washing in public sort of thing.
There seems to be an ocean of people who are now feeling so depressed that not only have they become resigned to the fact that they are in deep trouble, they have told everybody else that they are in deep trouble. And then we all have a good laugh about it. Ha ha ha ha…how we laughed.
On the second day, I attended a session entitled "Mitigating Collateral Damage and Maximising Opportunities" and was well pleased that I did. There was a highly qualified team of panelists and it struck me as the session started, why on earth was this room not full? With other sessions being about Russia, management agreements, brand confusion, leases, developers and Turkey, you would have thought that any presentation with "Maximising Opportunities” in the title would have people hanging from the rafters!
The session was full of great practical advice and discussion. Some of the comments I noted:
• Do something uncommon, introduce common sense.
• Check that your suppliers are in good health.
• Don’t fall out with your partners - get closer to them.
• Search for the best people as others are cutting staff.
• Accurate and realistic forecasting is the biggest challenge.
• Seek to package your business in a different way.
• Don’t focus on RevPAR (Revenue Per Available Room). A 12 percent drop in RevPAR could be a 26 percent drop in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). Think cash.
Overall, it was a great discussion and it is becoming clear – we cannot "save" our way out of difficult times, we have to "sell" our way out. And that’s where the fun and creativity begins. Apple, for example, seeks to provide what the customer should want rather than what he thinks he wants. Neat.
I enjoyed the session immensely. Difficult questions without all the answers, but a willingness to really take them on. Optimism grows on you.