Zirve Eki - ISTANBUL REstate

Gayrimenkul Zirvesi 10
Georg Wailand: Thank you. Mr. Nasser, if you look to the next 3 or
5 years, do you expect that the international groups, hotel groups will
have more growth potential than the national investors here? And who
will make the better profit?
Tar›k Nasser: The answer to your question is yes. The international
brands will have much quicker and larger growth in Turkey. This is due
to tourism. It is not our primary strategy, most of our competitors are in
this, they do go with cluster deals. It is either an investment fund or a
local investor, they sign deals for 10-15 hotels, 20 hotels and then go to
acquire land. Look at what accorded with the local investor. They start
acquiring land and they put hotels wherever they would like to put hotels.
We, as Marriott look into it on a different scale. We don't like to put all
eggs in one basket. Although we are in favor of cluster deals, we don't
like exclusive deals. That will put a heavy burden on both parties because
there will be times our investor will not have the means to invest on a
hotel in a market where we want to go in that market. So we should be
flexible enough to choose another investor or partner to go into that
market and vice versa. There will be a market that we wouldn't see any
future in, however a local operator would be doing a much better job
and that investor should be able to go with that local operator. So there
are deals in the market. I am sure the local and international press is
talking about those deals. 60 hotels, 70 hotels are being announced. So
yes I think the international brands will grow faster, quicker in this country.
Georg Wailand: Mr. Schnorr, what is your expectation and maybe
you can us tell your experience looking for a good place for an investment
in Turkey. Is it very difficult?
Stephen Schnorr: Well, we tried since last year. We have some local
people helping us. We investigated several plots but pricing here in Istanbul
is not so easy and so, I think, we are going to establish a small office here
and then employ a local real estate expert. So I think this should be the
way to get.
Georg Wailand: In former times there was a chance to get land from
the government. The time has come?
Stephen Schnorr: We didn't try this because I think...
Tar›k Nasser: Maybe I can answer that question. The municipalities
in respective cities are very keen on doing that. They have access to
government, to state land officially. And they are happy to provide it for
development in relatively underdeveloped regions. That would be very
difficult to get in Istanbul but in secondary cities yes.
Stephen Schnorr: This is a difference from Marriott to Motel One.
We have to have an urban environment around our hotel because we
don't have a restaurant and conference rooms. So where we are looking
is let's say in Istanbul we are looking around the Taksim square, the
Sultanahmet, like absolutely downtown areas. We can build a hotel near
the airport. You must have a restaurant and everything by walking distance.
So we are looking absolutely downtown and at a state ground in downtown
areas isn't the thing for us.
Georg Wailand: Miss Kaya, in five years how many hotels will your
group have in Turkey and abroad?
Begüm Kaya: We actually pronunciate some numbers and we are
really working hard on that. I don't like to know just our aim per year. We
are first of all concentrating on improving our infrastructure so that our
aims, targets are not a dream. I would like to just give a brief mention
about what we have done so far; an example to improve, to realize and
to make our plans real. We have been included in the membership for
170 GYODER
16-17 Haziran 2010
the preferred hotels network currently. It is a very new thing. This is one
of the world's largest hotel season marketing consorsium which is listed
as sixth by the hotels magazine which represents more than 150 thousand
rooms. So we will be improving our international customer portfolio through
online sales channels. And this will also enable us and make it easy for us
to get into the international markets. And currently we are planning to
sign at least three contracts per year in the domestic market. And after
reaching a certain stock as I mentioned, we are planning to get some
international contracts as well. But it doesn't mean that we are not open
for opportunities. If we come across with some good plots, some good
investors, good contracts and contract terms we would be happy to sign
maybe 3 or 4 contracts per year. So we make basic calculation like from
4 or in the 5 years time we could be reaching in total a number of 30.
Georg Wailand: Right?
Begüm Kaya: Calculated, you are right.
Georg Wailand: We are looking forward to this..
Begüm Kaya: Hopefully.
Georg Wailand: (We are looking forward to this) last question to all
three panelists. Turkey has a growing economy, growing population. It is
an important spot to make investments. How important is it from your
point of view, from your business that Turkey and European Union have
come to a solution?
Tar›k Nasser: If anyone read the local newspapers today, it is very
important because now European Union have realized that our government
is establishing strong relations with the Middle East. Turkey is very important
for Europe because of its young population and its market. It is a consumer
market, I mean. In Turkey everybody consumes important stuff, mobile
phones, electronic appliances, fashion, textile although they are mostly
made in Turkey but we still buy it from Europe. So it is very important for
Europe to realize that Turkey is very important for Europe. Turkey has a
place in Europe's future. Is European Union very important for Turkey?
Certainly. European Union sets the standards for a modern, established,
well-developed country. So, in our business as well, in hotel business as
well we are one of the most interesting destinations as Turkey which is 2
hour, maximum 3 hour flight, you can reach to unspoiled beaches, excellent
resorts branded and unbranded. So that market that we can easily step
in as Europe and Russia is very important for Turkey. Now we have managed
to resolve a few visa applications with some neighboring countries, currently
mostly for the Middle East. But we are now cancelling the visa application
between Russia and Turkey which is a very big step forward for hotel
industry as well because it will affect mostly resort destinations but city
travel as well. Because lots of Russian business people upper to mid level
will travel to major cities in Turkey. They will travel to Anatolian cities in
Turkey to look for opportunities, to seek partnership with local businessmen.
So this is good news for hotel business. Also getting rid of the visa between
Europe and Turkey will give a boost to the Turkish business environment
as well. People will start traveling, having more contacts, meetings in
Europe, inviting people over to Turkey and all. So European Union, yes,
is very important for hotel business in Turkey.
Georg Wailand: Thank you. Mr. Schnorr, your opinion?
Stephen Schnorr: Out of the view from Motel One, it think it is not
absolutely necessary that Turkey gets into the European Union. I hope it
for Turkey but the hotel market is in Istanbul, for example, is so big right
now. It is already so big that we don't see any problems for us that the
European Union should be. For example, could be maybe little bit easier