Operating in an oversupply market
Posted on January 29, 2018
We sat down with Filippo Sona, Director, Head of Hotels, (MENA Region), Colliers International to get his views on Dubai’s inevitable oversupply situation is forward-facing and opportunistic in this interview. He summarises the situation as:
“A shift from a revenue driven economy… to a cost driven economy”
As such, he calls upon the innovators across hospitality to take advantage of the market conditions. With such a skew towards luxury assets in the region, it would be natural to think that these classes would be the most over-exposed. Filippo addresses the topic head-on, reminding us that luxury is about being bespoke and that hoteliers need to step up their game.
Finally, we speak about source markets, particularly the ones that may help counter the oversupply issue by bringing in new demand. Surprisingly, Filippo suggests that the mega markets of China and India are less efficient source markets due to the narrow margins available from the consumers emerging from those regions.
Filippo Sona is one of the most recognisable names in the international hotel investment community. With 20 years’ experience working for international hotel companies and consultancies in UK, USA, Middle East and North Africa, Filippo specializes in destination and hotel development for mixed uses and stand alone projects, market & financial feasibility study, operator selection and strategic asset management. He is a trusted voice on the AHIC advisory board known for his firm and frank views that often capture headlines across industry press.