Dear Insiders,
Hyatt developer Peter Norman explained the cardinal error the hotel industry makes with regard to Airbnb & Co: There's a lack of excitement in the industry – it's too uniform and has become too standardised over the years. And whoever has analysed the short term rental platforms, as Hyatt has done recently, sees the next fights coming. Just how deeply P2P platforms have impacted on day-to-day business of project developers has been experienced by GBI Chairman Reiner Nittka with respect to his own serviced apartment projects. Almost everyone demanded national or municipal regulation, but the cities don't have it easy, as Munich councillor Christian Mueller explained. Read today the second and final instalment on the exciting Expo Real talk round on Airbnb & Co.
Meanwhile, the wave of mergers and acquisitions in the hotel industry continues unabated – a development which in my opinion will make Airbnb stronger rather than weaker. Yet the merged companies focus initially only on their own economy-of-scale, which only drives managers like David Etmenan from Novum forward in accordance with the motto "bigger, faster, better"... Industry veteran Ingo Peters from Fairmont Hotel Vier Jahreszeiten, on the other hand, sees the world with its finer differences. The Expo Real discussion on mergers revealed both positive and negative elements.
Anyone looking to test his or her own resilience might wish to oversee expansion in Africa. The continent plays by its own rules, though reveals incredibly positive results and enormous potential. There's a lack of branded hotels everywhere.
Peninsula is positioning itself exactly where there are already many luxury rivals – and it wants to be even better – which indeed the small chain often manages. COO Peter Borer and the new General Manager of The Peninsula Paris report of the group's newest projects and challenges.
Karl Lagerfeld is still challenging himself at the age of 83: Let's see how extravagant his own hotel group will then be. In comparison, Deutsche Hospitality performs only a little brand cosmetics on its Intercity Hotels, as was announced yesterday at a press conference. In Austria, it's snowing new hotels, exactly on time for winter, and in Spain a new brand for "quiet" hotels is to be established.
Our Investment Barometer in collaboration with Union Investment is still running. Have you already taken part? We would be very pleased if you do as the opinion of market participants is important - especially this time where we ask about your yield and risk expectations. Log in here!
Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com
