Editorial

Dear Insider,

While Donald Trump and Kamala Harris faced off in the USA for the final election campaign battle, delegates from 200 countries met in Colombia for the 16th World Nature Conference under the motto "Peace with Nature". For two weeks, they sought to protect biodiversity as the basis of human existence. When it came to financing, the conference failed. And biodiversity continues to shrink.

Trump's victory has been certain since Wednesday. This does not bode well for peace with nature and, above all, for world peace. And the outlook for the US hotel industry isn’t good either. According to our author Macy Marvel, it will suffer further cost explosions and probably lose lower-ranking employees. Conversely, Europe's tourism industry will benefit from the US turnaround. We have summarised initial reactions.

And the week brought even more political chaos: The collapse of the German government on Wednesday evening will further weaken the country's economic power. Tourism too? The US election also makes it clear: Europeans must act now. Also in the hotel industry, also in tourism. And above all, investors/operators and related stakeholders must join forces. The new event "Hotels Tomorrow" (HOT) hits the nail right on the head with its European focus (17/18 February 2025 in Paris; update on our page 1).

Dear Insider,

For days now and with consternation, everyone has seen the suffering caused by climate in Spain after the enormous floodings. Doesn't everybody ask themselves: When will it hit me? Therefore, it is more important than ever for hotel businessmen, investors and operators to regulate extreme weather events as well as sustainability topics in agreements. The industry has shown more flexibility since Covid. Susanne Stauss interviewed Felix Krieglstein of the solicitor's office Jung & Schleicher, which is focused on hospitality. 

The Serviced Apartment industry has become very flexible as well: an increasing number of operators has been switching from long stays to short stays because it brings in more money. However, they are moving very close to the classical hotel industry – with or without kitchen. Yes, there are serviced apartments in the market without kitchenette. At the Expo Real hotel conference, Adina, StayCity, Stay Kooook, and Apartmentservice revealed interesting details about the current changes in their segment.

Dear Insider,

Today, it is mostly about opportunities – the opportunities you hope to find after acquiring a brand, in conversions in premium locations, and in a destination resort in the Swiss Alps. It all sounds sexy, but it is not easy.

Choice International is about to launch the Radisson brand in the Americas, which was bought two years ago. Things are getting serious because a US company (Choice) and a Chinese company (Jin Jiang) are using the name around the globe. Will this cause confusion for investors, developers and guests? Sarah Douag investigated how both sides (plan to) keep their loyalty programmes – and more – separate.

The message about conversions was very clear, however: putting a hotel in a warehouse is just as expensive as building from scratch. Excessively large areas, depths and heights require imagination and willpower.

Dear Insider,

Between business and leisure, a new flower is blossoming: workation hotels. Franz & Mathilde know what they need to offer, a soundproof office for video calls and standing desks on the balcony with a view into the garden, for example. Executives, employees or freelancers – after one week, they all have breakfast together. And the best part: bleisure tourists spend more money than normal tourists. Sylvie Konzack followed this new trend – professional – "working tourism" and provides us with good examples, ideas and figures.

In the hospitality industry, the ones who create emotions will survive. And this is also true for investments. Therefore, FMTG (Falkensteiner) will develop its successful crowdfunding further into a private equity vehicle, Ruslan Husry of HRG will continue to love and finetune his leases even more… The investment panel at the Expo Real Hotel Conference clearly showed that the industry is cautiously getting ready for alternative financing – or for improving already existing models (funds, REITs).

Dear Insider,

Rarely has the mood at Expo Real been so good in unstable times. And nobody knows why. But it was great. The noise level went up by the hour, the hotel booths were buzzing with activity, the talks were excellent, and the conference forum was packed with visitors as it had not been for a long time. It was the hour of the experts, subtleties and mutual exchange. We asked people about trends, added a bit of industry gossip and gathered statements from the worlds of hospitality and finance. And on our first page, you will find the first 30 pictures of Expo Real and our activities as well as a short summary of our own Expo Real booth. More pictures will follow next week!

Dear Insider,

As of Monday, many of us will be at Expo Real in Munich. What will the mood be like this time? Seven halls will be full, the trade fair reports. But how many visitors will come? The number of tickets sold will also say something about the market; despite the crisis, the trade fair has pushed ticket prices above the €800 mark. This reminds me of the poker-happy hoteliers who have increased overnight stays by another 10% or more. 

Of all the asset classes, only the hotel industry is robust and can smile even more often. In this respect, the Expo Real hotel conference will have a relatively large number of positive things to report. The number of panels on Monday (Forum in Hall A1) has increased to six at the last minute: The Hospitality Industry Dialogue will therefore begin at 11 a.m. with an update on Serviced Apartments. You can find the complete programme on our Expo Real page. 

You can already give your opinion on the sentiment on the transaction market in our Investment BAROMETER. Our survey, supported by Union Investment, is conducted every year at Expo Real. This way please! Thank you for the click.  

Dear Insider,

The small ones are the sweetest. This is the title of our article on the current flood of conversions and takeovers. The chains continue to grow as they take over boutique hotels and smaller groups. At the same time, they are softening their chain standards and delighting investors afresh. Susanne Stauss interviewed Accor, Hyatt and IHG. Marriott spoke plainly at the Hogan Lovells Hotel Day in Berlin last week and real estate specialist René Schappner comments on the brand development.

The global travel market is stabilising, with Europe as the driving force. Travellers are even spending more again, says a comprehensive report based on an analysis of 14 brands. The OTAs are also taking their slice of the cake though. Sarah Douag provides a summary.

The crisis has also made OYO hungry again. The Indian "copy" of Airbnb, still with founder Ritesh Agarwal at the helm, has suddenly re-emerged after four years of pandemic pain and has now acquired 320 Motel 6 hotels in the United States. By 2025, Ritesh wants to have tripled his profit. Once again he is aiming for an IPO. Let’s wait and see. In any case, our colleague Sarah is back on the OYO trail.

Dear Insider, 

Today, it's almost all about power and markets. The pace of work in the industry is currently brisk, a day is just the blink of an eye. With every day of crisis, the big players, the giants, determine the direction. Expansion only means multiplication, innovation is still lagging behind. 

AI is turning Google and Sabre into a powerful duo: Both want to set new automated standards for travel - from controlled seat upgrades on the plane to personalised booking machines for the hotel of your dreams. Both now program the entire journey without a digital break. 

Wellness hotels and resorts are often far removed from such discipline and logic. In times of crisis like these, they are a wonderland of feel-good promises, but ultimately remain stuck in the grey area between science and pseudo-science. A Canadian psychologist and author sharply criticises the industry. Things are currently moving in the wrong direction.

Dear Insider,

Today is Friday the 13th - though this is not the bad omen it’s usually taken to be. Superstition is largely alien to the industry, even if some hotels do not have a 13th floor.

The Koenigshof in Munich, which officially opened yesterday, has nine floors. The grand hotel legend is a thing of the past, 5 stars are wrapped in travertine, large windows offer fantastic views of Munich's rooftops and sights. Spanish star architect Nieto Sobejano has catapulted the traditional hotel into the modern age with cubist forms and the delicate shimmer of gold. 

With small, subtle differences, Marriott's new Luxury Collection member aims to position itself alongside the RevPAR leader Mandarin Oriental and the upscale Rosewood, which opened just a year ago. All three are boutique hotels, but will drive competition in Munich's luxury hotel sector. Maria Pütz-Willems brings us a summary.