Horwath Executive to Share Latest Outlook on China Hotels

Hong Kong Polytechnic University's first-ever U.S. event

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. October 14, 2008

NEW YORK, NY, APRIL 3, 2007. Leo Yen, Director of Horwath HTL Asia Pacific, a veteran industry consultant and an acknowledged expert on the hotel and tourism market in the Asia region, will share his expertise as a featured speaker at the Seminar on China Hotel & Tourism Development, to be held at New York's Le Parker Meridien April 27. With 50 offices in 30 countries, Horwath HTL is the world's largest consulting organization specializing in the hospitality and tourism industry.

The Seminar on China Hotel & Tourism Development-which is being held in the United States for the first time ever-is co-sponsored by The Hong Kong Polytechnic University's School of Hotel & Tourism Management and Hotel Online.

In his presentation, "The Hotel Industry Performance, Profitability and Outlook," Yen will discuss China's hotel and tourism market potential from a financial perspective, and will reveal the latest data from the 2007 China Hotel Industry Study, a joint project produced by Horwath HTL and the China National Tourism Administration.

"This is the most authoritative benchmarking study regarding the industry in China," Yen says. "In addition, in my session I will discuss supply-and-demand dynamics for the industry over the past few years."

According to Yen, the outlook for hotel-industry performance in China is poised for positive positioning looking into the near and mid-term future. He says some of the reasons for this positive outlook include:

---|The 2008 Beijing Olympics and 2010 Shanghai World Expo, with their associated hype and frenzy

---|A dramatic increase in domestically generated demand

---|The new focus on secondary and tertiary cities in China, which are experiencing renewed tourism and industrial development

---|A rapidly developing domestic leisure markets

---|A high-growth economy, which features a substantial amount of direct foreign investment

---|The consolidation of mid- to budget-tier hotels

---|Long-term outlook for China may prove as promising as near-term view

---|Yen also will discuss the outlook for hotel development and tourism in China on a long-term basis-an outlook that may well prove to be every bit as positive as the short-term outlook.

"The long term fundamentals in China will continue to be strong," Yen says. "There might be short-term volatility following the 2008 Beijing Olympics and 2010 Shanghai World Expo, but they should not have a long-term impact on hotel performance.

"China's hotel industry is still considered to be in its infancy compared with other cities and countries in the region and worldwide," he adds. "The amount of growth to be realized in China is significant."

In his seminar, Yen will take a look at which segments and which locations look the most promising for hotel development in China.

"All segments should benefit from high growth in demand and average rates," Yen says. "In secondary cities, budget- to upper mid-tier hotels should continue to provide the best investment return for owners. Some resort destinations, such as Sanya, will continue to dominate the high end leisure demand."