Editorial

Dear Insider,

Change is here, holiday patterns are collapsing... These are the headlines of the two articles about the current summer season. Four authors describe the mood in eight countries (Germany, Austria, Switzerland, Spain, Italy, France, Belgium and the Netherlands). No country is cheering, the positive news is always followed by a "but". Germany is moving backwards, which was to be expected. Italians are looking forward to summer, but the mountains are taking over from the beaches. Spain remains the sunshine of Europe, France gets a cold shower.

What moved me: The Spaniards and the French complain that they can no longer afford an island holiday in their own country. Is this the next trigger for even more protests against tourism? One thing has bothered me for a long while: Time and again, associations such as hotel groups draw comparisons between 2025 and pre-Covid. Hello! This no longer works. Today, the hotel industry operates in a completely different environment; an environment that in 2019 certainly could not have even been imagined. Let’s put an end to these illogical conclusions! Brilliant figures in large volumes secure the show, but not the profit backstage.

In Italy, international hotel investors are already channelling their capital into fewer and new segments, e.g. outdoor tourism, new types of hostels, branded residences and serviced apartments. In a nutshell: They invest for those on a smaller budget as well as for the bulging wallets of the wealthy. Capital follows the social divide. Massimiliano Sarti on the latest real estate trend in his home country.

Dear Insider,

A year ago, hoteliers were still fiddling around with ChatGPT on the sofa, but now the AI assistants proliferate, each one better than the one before. It's about power over travel bookings. SEO, the internet search engine that everyone had to feed with buzzwords for years to generate clicks, is now just the fodder for GEO: for that AI colleague that can immediately provide answers and offers to the web surfer. The term for this is Generative Engine Optimisation. Today, our AI-expert Catherine Bouchon explains the advantages and disadvantages of GEO. Only the best stories will win. 

The story of the aparthotel provider Staycity is simple: It is based on one company, two brands, three apartment sizes and a kitchenette in every apartment. The two growth drivers are Staycity and Wilde. With a more flexible ground floor, more service, more food and more quality, the twin sisters are becoming more visible in Europe, always in key cities, please. The profit margin is fantastic.  

Adrian Lindner is a long way from dreaming. He does not want to expand at present but wants to further stabilise the restructured Lindner Group in Germany. The hotel operator is out of insolvency under the debtor-in-possession rules. He wants to rebuild trust in the market. The designated new CEO (35), the third generation in the large Lindner family, was involved from the outset as "insolvency project manager". And as a manager, he admits self-critically and with unexpected frankness to "many mistakes" in our very first conversation. And that the family has lost its closeness to the company. 

Dear Insider,

I saw them myself two weeks ago: the countless unoccupied beach loungers on the Italian Mediterranean coast. For me, it's the vacation picture of the year. Neither locals nor tourists want to pay over €30 and certainly not €50 or €60 per day for sun loungers and umbrellas. The evidence lies a few meters away in the sand: on the towel, under your own little parasol, like sardines in a tin next to each other. It's cheaper.

In today's extremely comprehensive issue after the summer break, this topic pops up again and again, including in the eight chain balance sheets of recent weeks as well as in medium-sized hotel groups. Consumption is falling, demand is beginning to crumble. It can no longer be overlooked or ignored.

Don't cry, read on. I have a good mood topic for the Booking.com haters among you. At least 15,000 hotels have so far joined the pan-European class action against the OTA and the best price clause, HOTREC reported yesterday. These include the largest chains in Europe as well small guesthouses. The lead lawyer behind this lawsuit and coordinator of previous Booking proceedings is very, very confident of winning this case. The antitrust lawyer from the renowned German law firm Schneider Geiwitz & Partner explains his logic in a six-page interview. He expects a "ten-digit figure" as compensation. Billions are at stake.

Dear Insider,

Today we head into our summer break, presumably with the same question many are asking: Will I be able to switch off at all? Shouldn't I be doing better in these times... ??? 

Wesley Paul, the keynote speaker at HOT/Hotels Tomorrow, advises managers to abandon outdated planning models and pursue agile strategies in order to keep pace with such rapid change. Six weeks ago in Paris, he explained this new world, its uncertainties and the consequences for the industry. We are sharing his keynote with our subscribers today, in a slightly edited video version. It's not a summer fairytale, but it is an illuminating moment in the information overflow. 

Journalists don't dream, they follow reality. And Google wants to change that - with its AI, Gemini. The idea is that the guest is no longer supposed to find his destination by doing the internet surfing himself. Rather, he is expected to swallow the results presented to him by an invisible algorithm. Of course, the AI suggestions also contain Google Ads. The giant is about to completely change search and bookings! The victims are travellers and smaller hotels. Sarah Douag also finds this devastating. 

Everything is in flux, and above all the stock market. But Richard Clarke from the research house Bernstein in London sheds light on more than share values and price manoeuvres. For decades, many companies, including those in the hotel industry, have passed the beauty contest on the stock market based on their growth rates. Now the stock market wants to know how robust, scalable and competitive your business model is in the industry environment! Beatrix Boutonnet reports.  

Dear Insider,

At midnight on 1 August, the Spanish government will implement a crack down: Any short-term tourist landlord who is not officially registered by this time will be removed from the central database. So far, only 13% have registered. This means a whole 87% have just one week left. This corresponds to 1.1 million beds - which would then simply disappear. In the middle of the season. This has all the trappings of a great drama - and all of it to the advantage of the hotel industry. Set the clock! Sarah Douag brings us the details. 

Almost all of Europe will be going on summer holidays in the coming weeks; certain destinations and cities will be overcrowded again. How high is the burden on local residents in popular cities with a lot of tourism? Austria's eight provincial capitals are looking for and finding solutions, e.g. "Grätzel Tourism". This is "life-seeing" instead of "sightseeing". Fred Fettner has collected figures, examples and opinions on how to reinvent the "experience value" for locals. 

Radisson didn't have to invent anything new, but jumped in at the deep end: The chain was determined to show its investors two sustainable hotels with verified net-zero status - not according to its own standards, but also according to the methodology of third parties. The two buildings in Manchester and Oslo already serve as learning platforms. Head of Sustainability Inge Huijbrechts on her experiences: "I would never claim that we are perfect. But we are transparent. We share what worked and what didn't, and we keep asking ourselves: Can we go any further?"

Dear Insider,

Can you imagine that there is a shortage of staff in the Indian hotel industry? With 1.4 billion people and 500 million potential travellers? Puneet Chhatwal, CEO Taj Hotel Group, has to find 100,000 employees within five years in view of the planned expansion. He is currently building 50 "skilling" centres in the country. It will be incredibly hard work. But it increases the ethical value of the company, the economic value of the properties and the added value in market capitalisation. Taj's market cap has risen by 850% in the past five years, he says.           

Why am I telling you this? It is always worth thinking outside the box. Puneet made his career in development at Rezidor, was CEO of Steigenberger Hotels for five years and is now a VIP in India himself. The Indian European or European Indian has his own opinion on real estate: Asset heavy secures every company, Asset light does not pay off.  

Dear Insider, 

There are still politicians out there who don't just congratulate themselves, but also listen carefully to criticism. At our HOT premier last week, one might have wondered whether that's because this first dialogue – the "Window to Politics" - was dominated by three women? Everything just sounded so pragmatic. The only man in this group was a perfect complement. As COO of Extendam, a European private equity company, Matthieu Dracs knew how to formulate investor interests in a brisk and succinct manner.  

Sarah Douag felt the fresh breeze through the window. Moderator Ufi Ibrahim, now Chief Executive of the investor club Energy and Environment Alliance (EEA), also knows politics from the inside (e.g. through the WTTC) and brought the statements to the point; Susanne Kraus-Winkler, newly appointed Chairwoman of the Federal Tourism and Leisure Industry Division in the Austrian Chamber of Commerce, criticised the EU repeatedly and clearly in her role as lobbyist. But Dr. Nikolina Brnjac, MEP (Member of the European Parliament) and former Croatian Minister of Tourism, stood her ground - and in the end urged the hospitality industry to work together with the EU. 

We need to come together! And take advantage of the new proximity to the EU for next year's HOT Edition 2 (we're working on the date!). 

Dear Insider,

It's been a hot week in Paris, but the heat will pass and Hotels Tomorrow will stay! Yes, there will be a 2nd edition of HOT in 2026, again in Paris! We are now in the process of agreeing the date. After so many positive reactions, tips and fortunately also critical comments, we will continue to sharpen the profile of the "Unconference". Marius, Marc and I (the 3 founder M's) would like to take this opportunity to thank around 180 guests from 100 companies, 24 countries and of course our 48 experts and speakers, who have placed in us a great amount of trust with their reputation and knowledge. And of course this also applies to our international sponsors from the world of investors and operators!

HOT No. 1 was more than just a networking event, writes my colleague Beatrix Boutonnet in her summary today, it was "a necessary orientation point in an increasingly complex world - with honest analyses, courageous demands and a clear goal: to actively shape the future of the - European - hotel industry." Our authors have picked out trends and statements from the discussions; more in-depth information will follow. You are used to this from hospitalityInside. We are pleased to present this first editorial summary of the first HOT today IN FRONT OF the paywall. Simply forward it on to others if you wish. And we are also happy to give you access to an extensive picture gallery.

Europe's most expansive hotel group is the Revo Hospitality Group from Berlin. The new strategy was presented to the first HOT guests at the H4 Hotel Wyndham Paris Pleyel on Sunday evening. The Lease-Lover switches to Franchise. CEO Ruslan Husry explained the details in a HOT panel discussion and I was able to ask him additional questions about the financing; you can find his answer in the video below the article.

Dear Insider, 

Just four days to go until Paris. And it’s set to reach 35 degrees there, in keeping with the HOT. Hotels Tomorrow celebrates its premier. The last weeks have been intense in the background, with many registrations coming in at the last minute. The level of the 48 speakers is high yet varied - take a look at the program. Over 100 companies from around 20 European countries will be attending. Keep your fingers crossed for the "3M's" (the founders Maria, Marius Gomola and Marc Werner)! www.hotelstomorrow.eu 

Do you already know? The hotel industry is to blame for over-tourism! For Airbnb founder Brian Chesky, this is quite clear. And Airbnb can't help the housing shortage either. He feels unfairly treated. Researchers are now strongly opposing this with facts and figures. In Paris alone, Airbnb occupies around 4% of apartments, and the figure around the Louvre Museum is already 15%. Across Europe, municipalities and governments are now pointing the finger at the supposedly 'social provider' under the untouchable umbrella of the "sharing economy". What a beautiful name, what a fake story. 

I wonder if Airbnb already has voicebots that can be used to collect bookings even faster? More and more travellers are making friends with this AI voice and enjoy making online bookings verbally. The voicebot has overtaken the chatbot. Our new author Catherine Bouchon will be researching the topic of AI intensively for us in future. 

Dear Insider, 

How do you push the quality of hotels? Turkish authorities close (4,000) hotels without warning, Morocco gives hotels, apartments, riads, bivouacs and other accommodation providers two years to improve their product and services, including security and fire safety. 800 criteria must stand up to a mystery check. The North African country is set to become a high-end destination, and not just because of the 2030 FIFA World Cup. This will be tough, especially for small family businesses. 

I can only imagine the outcry if such an announcement were made in Central Europe. Who identifies the "hotel ruins" in this region? I don't know anyone. Tens of thousands of accommodation businesses are probably wasting away in every country. On the other hand, the wealthy countries are world champions when it comes to announcing new hotels. 

Turkish hoteliers are frustrated because the looming summer drama is becoming existential. However, the authorities are also insisting on a "reset" here. Investors, operators and guests have been hit very hard. Sarah Douag shows both "transformation models". Just crazy.