The mid-market hotels can deliver better return on investment than five-star properties thanks to their lower development and operational costs, said an expert at a major summit in Istanbul.

“Turkey is crying out for branded, consistent, quality mid-market hospitality products. It needs quality, branded mid-market and economy hotels in secondary cities,” said Michael Collini of Hilton Worldwide on the closing day of Central Asia & Turkey Hotel Investment Conference in Turkey on Wednesday.

Echoing his sentiments, Poğda Demircan, Hilton’s development manager for Turkey said the room rate gap between upscale and mid-market hotels could be quite small in regional cities.

“At the end of the day, there is a maximum price customers will pay for a room in  provincial city locations. This means that the greater operating profit will be for the mid-market operator who has lower development and operational costs, and not for the five-star properties,” he added.

Potential investors and developers also heard the case for and against opting for Turkish and international brands.

The general consensus at the summit was that home-grown brands, such as the event’s supporters - Rixos, Dedemann and Marmara - have excellent local knowledge and know what suits the market.

On the flip side, the international brands have high global visibility and well-tuned operations.

“The conclusion is to avoid making choices based on ‘ego’ and choose the brand that will deliver the best return on investment for each project,” said conference delegate, Turkey-based Banu Ogawal.

Elif Egeli Nişanci of Jones Lang LeSalle Hotels summed up the issue by advising that development should not be for the sake of development. “Make sure that the supply matches the demands of market to ensure the project will maintain good rates,” he noted.

The delegates also got a taste of Turkey's best on the concluding day - An evening at the stunning Marmara Esma Sultan provided an opportunity to digest the day’s events.

This is a memorable venue, with views of the Bosphorous Bridge and Ortaköy Mosque, innovative design with a steel and glass structure within the walls of the historic palace, and delightful staff and service. All who attended agreed that this venue certainly has the ‘wow’ factor.

The event also saw spotlight falling on region-based hotels which won the Cathic Hotel Investment Awards.

Pera Palace Hotel Istanbul bagged the award for the Best new hotel in Turkey, while Radisson Blu Iveria Hotel, Tbilisi won the award for the best new hotel in Central Asia. The outstanding achievement award went to Haluk Kaya, chairman of Bekay Property Partners.-TradeArabia News Service