Turkey records best growth in 2011, the hotel market is growing rapidly where recent figures reveal ADR growth of 34 per cent and RevPAR of 29 per cent for the Turkey Hospitality market for the year end of 2011. Over 36 million visitors created over US$ 23 billion annual tourism income while Istanbul has become the third-fastest growing tourist destination in terms of visitor numbers. The number of hotel rooms is increasing rapidly to satisfy the demand, currently more than 5000 rooms are in the pipeline. IHG, Hilton, Marriott, Wyndham, Radisson, Carlson Rezidor and UAE’s Jumeirah are just a few of the market leaders vastly expanding in Turkey`s hospitality industry.
In order to celebrate the 100th Anniversary of the Turkish Republic, a goal has been set to reach 70 million tourist arrivals to Turkey with US$80 billion by 2023.
2nd Annual Turkey Hotel Expansion Summit brought together hotel & real estate developers, investors, hotel operators & management groups, architects and service providers to discuss long-term growth and future expansion plans for the hospitality market in Turkey.
While there were a number of outstanding speakers at the event, the Chairman of the summit, Mr. Haluk Kaya from Bekay Property Partners particularly stood out. Not only was he a brilliant Chairman, ensuring that the summit ran smoothly, but his long experience in this industry makes him a well-respected figure and the delegates listened intently to his comments and evaluation. His extensive knowledge and management skill shaped up the event from the very beginning until the end.
Following Chairman’s opening speech, the event started with the joint session of 2nd Annual Turkey Hotel Expansion and Turkey Commercial Property Development Summits where Ms. Özlem Gökçe provided the participants a brief summary of 2012 and the GYODER’s expectations of 2013 for Real Estate Market Development in Turkey. Following that Mr. Ömer Isvan, President of Servotel Corporation, presented a very comprehensive outlook about the present and future development climate in Turkey. He not only highlighted the positive angels but also drew attention to possible setbacks. Ms.Işıl Dinçer, General Manager of TSKB Appraisals, updated the participants of the both events regarding the recent developments in regulations and their possible effects in Real Estate Markets.
The following discussion panel led by Mr. Kıvanç Erman, Director of Capital Markets of JLL, where participants of the panel Mr. Ertan Dal, General Manager of Taurus Investments, Mr. Yağmur Yaşar, CFO of Cefic Turkey, Mr. Henry Morris, Associate Director of Head of Acquisitions Emerging Europe of Europa Capital, and Mr. Ulf Pettersson, Director of Development and Construction of Amstar Global, submitted their expectations of Real Estate Market Development in Turkey as foreign investors. Being the most rapidly developing market in the region, numerous opportunities in different cities were discussed. Panelists also mentioned the ways to increase foreign investor’s involvement by discussing some regulatory and transparency issues that the newcomers are facing when entering the market.
Mr. Filippo Sona, Head of Hotels & Resorts Mena Region of Colliers International, moderated the discussion panel for enhancing a win-win for investor-developer-operator, highlighted the situation from the operator’s perspective. Mr. Murat Yılmaz, Senior Director, Acquisition & Development EMEA of Starwood Hotels & Resorts , Mr. Philippe Baretaud, Senior Vice President Head of Development EMEA of Accor, Mr. Melik Kızılcan, General Manager of Mövenpick Hotel İzmir, and Mr. Bilge Turcan,Chief Business Development Officer of Dedeman Hotels & Resorts International,provided their most valuable insight and finally agreed and pointed out to achieve a win-win scenario; the developer-investor-operator-financer should start working together on day one. Expectations of the all parties should be clearly agreed and respected to achieve success.
Ms. Buket Hayretçi, First Vice President of Aareal Bank AG Turkey presented a very well prepared paper on the philosophy of project financing, reasons of rules and expected securities. The questions and answers part was a result of her great experience in project financing and found interested ears in the audience.
The Final discussion panel of the joint session was led by Mr. Mete Varas, Head of Business Development – Europe of Reidin.com, with the participation of Mr. Alaeddin Babaoğlu, President & CEO of Amplio Real Estate Investments, Mr. Erol Özmandıracı, Chairman of Bay Construction, Mr. Arda Taşarkan, Business Development Director of Cefic Turkey, Mr. Serdar Garan, Founder & General Manager of Segment Property Development & Construction. The discussion about bigger and luxurious or smaller and affordable developments showed that if a project is well examined and the reasons bringing to a conclusion are based on reality the question is not big or small because the study will lead to a profitable solution anyway.
The event continued in the afternoon with the detailed presentation of Mr. Levent Egeli, Secretary General of TYD – Turkish Tourism Investors Association, who presented the latest figures, updates, incentives and diversification of Tourism Industry in Turkey. He finalized his presentation with 2023 objectives of TYD and opportunities awaiting investors.
In the afternoon session two eminent speakers of Hilton and Accor presented Investor/Operator point of view in developing Turkey Market. Mr. Mike Collini,Vice President Development Turkey, Russia &Eastern Europe of Hilton Worldwide, based on his experience in Turkish Hotel Industry showed why and how branding could add value to a hotel. As the one of the oldest and most successfully developed International Hotel Group in Turkey, he gave detailed information about the possibilities the brands offer. Mr. Philippe Baretaud, Senior Vice President Head of Development EMEA of Accor explained their criteria that are shaping their investments entering the market as an international group. He also mentioned the importance of updating strategies to achieve new goals through extensive research and observations when developing in countries like Turkey.
Mr. Sotiris Tsoulos, Architect of RMJM Architects, showed design examples showing the way to the future in hotel buildings for demanding clients and brands. The day has ended with the design related discussion panel led by Mr. Haluk Kaya where Mr. Javier Hortal, Project Leader EMEA of Mandarin Oriental Hotel Group, and Mr. Gökhan Avcıoğlu, Founder & Principal of GAD Architecture, emphasized the success of a property is decided during the design stage. They all agreed that the parties must clearly express their needs and vision for the future to create a design that reflects characteristics and functionality of the brand.
Day 2 started with Ms. Defne Gezen’s, Vice President of Jones Lang LaSalle Hotels, presentation of analyzing the appetite of International Operators towards Turkey. As one of these operators, Mr. Tarık Nasser, Vice President Development Turkey of Marriot International, showed answers to the questions how problems could be turned into opportunity.
On behalf of one of the most rapidly developing local hotel group, Mr. Mustafa Üstünsöz, Cluster General Manager of Rixos Hotels & Resorts, gave a presentation describing the financial and geographic criteria of local hotel developers with various examples. Mr. Metin Eroğlu, President of PFD Real Estate & Hospitality Consulting, went further in details and shared his experiences in developing hotels with the participants. He showed how to value the various essential aspects of hotel investment and provided some essential information.
Afternoon session of day two opened with the discussion panel about alternative luxury showed that especially in “boutique hotels” luxury can mean anything and that many “boutique hotels” create their own luxury style for their clientele. Mr. Haluk Kaya encouraged Mr. Mehmet Önkal,Managing Partner of BDO Hospitality Consulting, Ms. Tuba Tekeli, General Manager of Sumahan Hotel, and Ms. ŞebnemUyar, Owner of Golden Key Hotels, to define different means of luxury alternatives with examples around the world.
Mr. Tuncay Kalfa, Senior Consultant of Servotel Corporation, presented interesting numbers to draw attention to what can be achieved by saving energy in various ways and using less water. Which was followed by Mr. Gökhan Avcıoğlu’s Green-Hotels presentation from architect point of view and Sustainable-Hotels presentation of Mr. Curt Garrigan’s, Coordinator of United Nations Environment Program Sustainable Buildings and Climate Initiative, which derived from United Nation’s Global Sustainability perspective? Final panel of the summit, Investing in Green Hotel in Turkey, Mr. Daniel Frey, Founder & CEO of Green Growth, gave a short presentation regarding the top down leadership as being a key factor to the responsible and sustainable development practices where panelists tried to encourage the audience to design and operate environmental friendly sustainable hotels as a commitment to the future.
We also want to extend our gratitude to all delegates for their active participations. Their questions spoke to the heart of the main issues facing the hospitality industry and their eagerness to build the industry is commendable.
Noppen would like to express a special thanks to the sponsors of the 2nd Annual Turkey Hotel Expansion Summit; NecTeksam, VDA Karadağ, Fastbooking, Somfy, Tiger TMS, Precor, Technogym, NTL Lemnis, Teleadapt, Inncom, Optii, Iss Facility Services, ÇanakkaleSeramik, Halton, Leds C4, Paşabahçe and Skyline Parking. We have no doubt that your contribution helped in making this event a success.