BTN Europe presents an overview of business travel and MICE predictions for this year
Virtual Event - 1 October 2020
ExCeL London - 22-23 June 2021
Most expect bankruptcies
A large majority of European hotel executives expect chains to go bankrupt this year.
The bulk of the executives (70%) also said there had been a "significant reduction" in business travel.
The figures are revealed in the DLA Piper 2009 Europe Hospitality Report.
The report, launched at the International Hotel Investment Forum in Berlin, found that European were less optimistic about the industry than their American counterparts.
While 59% of the Americans expected the industry to recover by 2010, only 39% of the European shared the same view.
Most European (52%) did not expect any recovery until 2011. The two main reasons for their pessimism were difficulty in raising capital for investment (43%) and the poor state of the European economy (33%).
Other main findings were:
Karen Friebe, global co-chair of DLA Piper's Hospitality and Leisure practice, said: "Given the current economic climate it comes as no surprise that the majority of European hotel executives are decidedly bearish about the health of industry."
She said that while those likely to emerge as winners were making their company structure "leaner and fitter", the "losers are doing nothing."
Jonathan Worsley, an organisers of the International Hotel Investment Forum and an advisor to the World Travel & Tourism Council, added: "There can be no doubt economic conditions are putting significant pressure on all investment and development decisions.
"But opportunities remain for well-capitalised investors."