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Hospitality & Leisure

The Deloitte Hospitality Group has unrivalled knowledge of both the industry and the business imperatives that face individual clients. As a leading provider of professional services to the international hospitality industry we act for owners, operators, developers and investors. We work with most of the world’s leading companies in each of these categories as well as fast developing branded hotel groups domestically and internationally.

Destination Leisure largely comprises places of entertainment, theatres, cinemas and visitor attractions. It is a very diverse sector but shares common issues and opportunities. The sector is closely tied to real estate and, with the current strength of the property funding market, sales and leasebacks are becoming more attractive. Another example of a common challenge is the availability and cost of entertainment products, e.g. shorter time periods of DVD releases affect cinema admissions and there is a challenge for theme parks to make a return on the increasingly large investment required to add a ride with sufficient impact to improve spendings or visitor numbers. The attraction of this sector from an investment perspective is that it is a very consistent performer, indeed much of the product has been around in one form another for hundreds of year. However, there is a significant increase in the availability of all forms of entertainment, particularly within the home, and successful players need to adapt and evolve.

The travel sector has undergone tremendous change in recent years driven by the emergence and widespread use of the Internet, demographic and social changes, new business models such as low cost airlines and all against a background of worldwide turbulence from terrorism, warfare and natural disasters. Concerns over the environmental damage caused by airlines and travellers and ensuring the sustainability of tourism are prominent issues in industry discussions. Deloitte provides services to a wide range of clients in this sector including tour operators, travel agents (both online and high street retail) and the global distribution systems, or GDS, which are distributors of travel products to agents and tour operators.

The hotels sector has experienced growth and continuing growth is predicted for the future. With the increased focus on cost, shared services is high on the CXO’s radar. We have pioneered the blueprint for the industry for a shared service platform and remain uniquely placed to assist the industry in transitioning to such a platform. The development of the Internet as a distribution channel has challenged the hoteliers to respond and ensure that brand ownership remains a key asset of the operator and investor. We are working with some of the largest hotel operators in the world to develop strategies to manage and develop their intellectual property.