South East Europe Shows Potential in Spite of General Economic Woes

Horwath HTL hosted a round table discussion on Investment Opportunities in South East Europe, under the heading ‘The Mediterranean/Southern European Track, a Focus on the Balkans. The round table, which was led by Dr Miroslav Dragicevic, Senior Partner Horwath HTL Croatia, Serbia and Bulgaria and Kristian Sustar, Executive Director, HUP Zagreb d.d was part of the inaugural Hotel Investment Conference Europe, organized by Burba Hotel Networks. The discussion focused on whether the region was an economic black hole, or whether there was emerging potential to be exploited.

Dr. Dragicevic, an industry veteran of over 40 years experience, presented the challenges and opportunities facing the region. The challenges are well documented and shared by a great number of other countries in and around the Eurozone, namely high foreign debt, slow recovery of 1-3% estimated and few local business players with global or regional ambitions. However, this has not stopped significant developments being undertaken in the region, with Global Hotel Chains, most noticeably Hilton, developing properties in the region. In fact, there are currently 60 hotel deals in negotiation with 20 having already being concluded with Banks acting as the major agent for hotel brands.

Development

Dr. Dragicevic went on to outline the major projects under development or completion in the region with projects in Greece, Serbia, Croatia, Montenegro, Romania, Bulgaria and Macedonia all proceeding. Mr Dragicevic said” The South East of Europe has quietly continued to present opportunities for investors with imagination and a long term strategy. Against a backdrop of constant negative economic news, developers and developments have continued to proceed and there are indications of other international brands following Hilton into the region. The lack of supply in the upscale hotel market and a management contacting culture that has yet to be fully developed are opportunities as brands inevitably will look for in areas outside of primary, secondary and even tertiary markets in Europe that have achieved saturation. The risks involved should not be downplayed, but the requirements for sustainable long term growth are in place”

About Horwath HTL

Horwath HTL (Hotels Tourism and Leisure) is one of the pre-eminent consulting specialists in the hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world's largest consulting organization specialized in the hospitality industry, with 50 offices in 39 countries.

Horwath HTL is a member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915. Crowe Horwath International is currently ranked among the top ten international professional service groups with offices in close to 400 cities in 88 countries.


For more information, contact Ivana Durdic on idurdic@horwathhtl.com  or James Chappell, Global Marketing Director of Horwath HTL at jchappell@horwathhtl.com.

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