An industry under pressure

Dear Insider,

This scorching summer has the potential to cause a major upheaval in the hotel industry. We are therefore kicking off today’s edition with a rather unusual call into the woods: "RevPAR is falling!" Dirk Iserlohe could only shake his head when he heard that hotels on the Baltic Sea were cutting their prices. Rates and RevPAR shouldn’t be going down – they should be going up!! By €20 to €30! The Executive Board of Honestis AG (Dorint Hotels) is speaking plainly, because it is intolerable that the price war is hindering quality and value creation.

The industry is facing massive change. The German hotel market is under pressure – partly due to the Revo Hospitality insolvency and the lack of transparency surrounding it. Owners are learning the name of their new operator from the press, whilst interested bidders are complaining about a chaotic data room and “communication bans” between the owners and the bidders. A confidential document shows us how insolvency lawyers can put pressure on landlords.

In general, we are seeing how individual operators in various countries are transforming themselves into European platforms (just as Ruslan Husry had planned). Operators bear the full operational and financial risk, whilst franchisors receive remuneration. The balance isn’t quite right anymore. Business models must be resilient.

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Business takeovers by feel?

24.7.2026

Dear Insider,

Is it possible to think like an Indian and act like a German? In theory, yes, but the differences in culture and in how quality and profit are defined do tend to come to the fore – in the 'little' things of working life. Our first article today explores the structure of PRISM in a little more depth – to help us understand the size of this tech giant and what drives the hotel operator. What are 'storefronts'? This unusual method of counting (for Europeans) shows, amongst other things, just how small the hotel sector is in Europe compared with all other types of accommodation. So, they will acquire even more hotels in Germany than the 24 that PRISM confirmed this week. Yes, the contracts have been officially signed, according to the Indian PR manager. We checked the list of names to see if all the hotels were still available for booking.

PRISM's managers are open and answer questions in a friendly and polite manner. However, due to the IPO application, much of the information provided to the press is severely restricted, so we have turned to our own extensive network. We noticed a great deal of nervousness and some odd behaviour during the first 'blind transfers of undertakings'.

Suddenly, an auditor from India turns up unannounced in the lobby; ad hoc requests for system access are made; the hotel staff are frustrated; and those who have spontaneously been handed their notice are still trembling. And just as it was back when US chains first ventured into Europe, it is now the Indians who are struggling with German law, for example with German works councils and the GDPR. Our sources point to weaknesses in operational implementation – more than we are describing today. That’s why most people call it chaos, speaking confidentially.