A roller coaster ride

Dear Insider,

A roller coaster ride... That's what today's issue feels like. Depending on the country, the hospitality sector goes up and down. At high speed. Anyone who flies off at the curve files for bankruptcy. Those who take advantage of the upswing go public. In between, there is a lot of pressure and few opportunities.

Family-run hotels or small hotel groups often have an even harder time than chain hotels, and not only in Italy. Their plus is often excellent locations, their minus the hole in the till. Foreign investors, mostly private equity, are sniffing out many cheap assets from depressed families between the beach and the mountains, from hostels to boutique lifestyle hotels. And they see the new flight routes that are bringing more and more travellers to the land of the dolce vita.

Fewer and fewer business travellers are boarding planes in and to Germany. And the Serviced Apartment segment is feeling the effects. The ratio of business to leisure has completely reversed this year, and the volatility of the traditional hotel industry is now also affecting this type of accommodation, which investors still like.