Hospitality sector is looking up and investors, both foreign and domestic, who have preferred to stay away since October 2008, are now exploring private equity deals in the region. However investors are not rushing in to the deals. They are taking their time for analysis as far as mergers and acquisitions are concerned. Investors who have started to explore deals are making initiative towards Dubai and Middle East. Deals will start to flow in once the financing problem is sorted out. Analysts view this as a positive move towards recovery. By the end of 2008 deals have frozen but the situation is looking upbeat in January 2010.
Faced with an oversupply and a decline in revenues, the hospitality industry is hunting for new alternatives to save costs. One of the top four global consultants, Deloitte, yesterday entered an agreement with Roya International whereby it would provide hotel management oversight services in the Middle East. Some of the HMO functions include monitoring ongoing financial performance, evaluating the sales and marketing process and reviewing the budgeting process. Investors are waiting for right valuations and they are unsure if that has hit a nadir or will go down further. But the interesting thing is that investors who were not even considering deals in this region have now at least started to explore.
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