EXPO REAL 2007 - Big Changes in the European Hotels Market

MUNICH, Germany, July 10 /PRNewswire/ --

- 6th Hospitality Industry Dialogue on 8 October 2007

- Investment Hits New Record

- Stronger Focus on Central and Eastern Europe

2006 was a record year on the global hotels market. Around 72.5 billion
US dollars were invested in hotels in the year - that's 63 percent more than
the year before. And the boom is continuing in 2007. Where developments are
headed next will be analysed by experts at the 6th Hospitality Industry
Dialogue to be held on 8 October 2007 at EXPO REAL 2007, when they explore
the question of 'Hotel investment worldwide - where is the capital going, and
where is it coming from?'. Representatives of companies that are currently
active on the European and global hotels market will be explaining why it's
the right time to invest in the German hotels market, what new investment
vehicles there are, when we can expect the first hotels REIT and what effect
this will have on the market for hotel investment.

Europe's hotels market is in a state of flux. The reasons behind this are
on the one hand a high demand on the part of investors for investment
products, and on the other the wish of the larger hotel chains to continue
managing their hotels as before, but to divest themselves of ownership of the
actual properties. Accordingly most of the transactions were portfolio sales,
by Accor, Marriott and InterContinental, for example. There is of course a
natural limit to this development, and already the large chains now only own
a few hotels, so portfolio transactions at least will decline in 2007.

The structure of the hotel owners has also changed radically - the
purchasers were primarily private equity companies - they made up 43.8
percent of the buyers, followed by wealthy individuals (eleven percent) and
property companies. According to estimates by Eurohypo, the influence of
REITs on the hotel investment market will rise over the coming years in
Europe, in a similar way to the developments in the US since the 1970s. A
first hotel REIT is expected to be launched on the stock market in the UK
this year.

The rise in investor interest in hotels is not only associated with the
increase in investment capital and a lack of suitable investment property -
it also has several other specific reasons related to the hotel and tourism
sector. These are the fastest growing segments of the economy. In Europe in
particular, which is the world's largest hotels market (over five million
rooms, compared to 4.5 million in the whole of North America), the number and
range of hotels is once again expanding, for the first time in many years.
This is true not only of the higher-class and luxury segment, but also,
according to Eurohypo estimates, for the economy class (with two to three
stars).

The western European capitals remain the preferred locations, but the
hotel markets in central and eastern Europe are becoming ever more attractive
as the risks are now sustainably reduced, particularly in the EU
member-states, and the yields are continuing to be attractive. However, a
clear shift in emphasis is being seen here - in 2005 it was on Russia and
Turkey, but in 2006 it moved distinctly in favour of Poland, Bulgaria, the
Slovak Republic and Serbia. With the exception of Prague and Budapest,
tourist numbers in central and eastern Europe have risen strongly in the past
two years, but on the other hand the rising prices for overnight stays have
had a dampening effect on capacity utilisation in the hotels.

For a full conference programme for EXPO REAL go to: www.exporeal.net

EXPO REAL

EXPO REAL, the 10th International Commercial Property
Exposition, takes place from 8 to 10 October 2007 at the New Munich Trade
Fair Centre. The event is an international platform for networking on
projects, investment and finance. It covers the entire spectrum of the
property sector and brings together players from all the key markets from
Europe, to Russia, the Middle East and the US. An extensive conference
programme, featuring around 400 speakers, provides an in-depth overview of
current trends and innovations in property investment and finance. EXPO REAL
2006 attracted 1,638 exhibitors from 40 countries and 21,112 visitors from 65
countries. The statistics for EXPO REAL are independently audited on behalf
of the Gesellschaft zur Freiwilligen Kontrolle von Messe- und
Ausstellungszahlen (FKM), a society for the voluntary control of fair and
exhibition statistics.

Messe München International MMI

Messe München International (MMI) is one of the world's
leading trade-fair organisations. It organises around 40 trade fairs for
capital and consumer goods, and new technology. Over 30,000 exhibitors from
more than 100 countries, and over two million visitors from more than 200
countries take part each year in the trade fairs in Munich. In addition, MMI
organises trade fairs in Asia, Russia, the Middle East and in South America.
With four subsidiaries abroad and 66 foreign representatives covering 89
countries, MMI has a truly global network.

Press contact:

    Petra Gagel
    Tel: +49-89-9-49-20244, Fax: +49-89-9-49-20249
    E-mail: petra.gagel@messe-muenchen.de