Editorial

Dear Insider,

If capital is hard to come by recently, in particular for hotel refurbishments, then debt funds could be a solution. Our fund specialist Beatrix Boutonnet sees this as a lifeline: The model is similar to that of the banks.            

Which path to sustainability do you choose when you are travelling as a chain in over 100 countries? "Who says it's easy?" asks Brune Poirson, Chief Sustainability Officer at Accor. She certainly tackles things pragmatically and looks to the future. Solutions can be found for water shortages and expensive energy. And with a luxury brand from the Accor portfolio, it reduces waste: How about an a la carte breakfast instead of an overloaded buffet? If you do nothing sustainable, you increase the risk to your own business - which is why she motivates her colleagues. An interesting conversation.                

Dear Insider,

Lindner Hotel CEO Arno Schwalie disappeared in a flash from the Lindner Group's stage this week. According to our information, no, he is not going to Hyatt, but to B&B Hotels Germany. B&B has so far declined to respond to our enquiries. It remains an interesting development. A person can be CEO for a long time: After his 75th birthday, Karl-Anton Schattmaier, the man who shaped Steigenberger, has left his last stage, that of Welcome Hotels.        

In the midst of Germany's real estate slump, the hotel asset class is increasingly taking centre stage. I was pleased to hear in an online talk with five experts (Acron, CBRE, Arbireo Capital Invest, Commerz Real, Magna Asset Management) how sensitively the hotel industry with all its advantages and risks is being discussed today. Since Lehman and Covid, the dialogue has become much more professional. In the meantime, hotels have even overtaken offices. Who would have thought it?

Dear Insider, 

We sweated with the Olympians in what was, at times, a very hot Paris during our vacation and admired them for their heat resilience. Not only the best athletes stood on the winners' podium though, but the hoteliers too. Parisian hosts were able to make up for revenues lost before the games and in so doing claimed silver. The gold medal went to the region’s hoteliers though: Prices quadrupled in the areas around the venues. Kirsten Posautz has the figures and comments from Paris.        

German hoteliers, on the other hand, have fallen into the cost trap - and this is despite a good summer season, which most of the ten hotel groups surveyed happily report today. Arabella, Hyatt, DSR Holding, Maritim, Seetelhotels, H World (Steigenberger), Munich Hotel Partners, H-Hotels, Achat and the HR Group told our colleague Susanne Stauss how they (want to) maintain a smart balance between cost increases and profit. 

Dear Insider,

With this weekend, the world is travelling, half of Europe will go on vacation. It feels like the industry is booming, but DACH hoteliers have tears in their eyes: At the end of the year, their profit may have risen by just 1 percent. GOP is dragging everything down with it... Susanne Stauss listened in on a discussion at "half-time" this year.     

One of the industry's larger groups, Louvre Hotels, is embarking on its own journey. CEO Federico González explains in a long interview with Sarah Douag how he wants to spice up Première Classe, Campanile & Co. The ex-Radisson CEO has taken 14 months to find his feet in the new terrain, and now comes the 5-year plan and a €400 million transformation for the group. 940 out of 1,720 hotels are still in France. Federico is now using the synergies with Radisson, including in e-commerce. Jin Jang, the parent company, watches respectfully, he says.      

Dear Insider,

Up to 80% of a hotel's carbon footprint is attributable to the supply chain. Did you know that? Interior design is a major contributor here. JoAnna Abrams, founder and CEO of MindClick in the United States, was a very interesting source of inspiration at our HITT Think Tank in Amsterdam. I conducted a special interview with her having discovered that her business model has been working for years in the US - but that nobody knows it in Europe.         

MindClick analyses the material of furniture, textiles, etc., collects data and translates data into information that meets sustainability reporting requirements. Arne Sorenson, the visionary CEO of Marriott, worked with her on the "greening supply chain". She involves owners, operators, architects, designers and other suppliers, for example through motivating ratings and webinars. With this strategy, she’s able to turn data laggards into data masters. 

Dear Insider,

Transaction figures in the hotel industry in Germany were still at a low in the first half of 2024, but compared to the other asset classes, the tender movements observed in the hospitality segment are already starting to look like a veritable rally. This makes the official news of Reiner Nittka's departure all the more sobering. According to insiders, Henderson Park, the new GBI owner, has gradually let him go. The highly respected industry professional was very well connected, and after 23 years his successors have some big shoes to fill. 

Let's stay with the persistent high in the sector: Minor CEO Dillip Rajakarier keeps his foot on the accelerator. He has handled 30 hotel takeovers and rebrandings in the last 18 months. The Spanish NH brands are already celebrating various premiers in Asia and the Thai brands Ananatara and Avani are flying their flags in Europe. For the first time, Dillip is now thinking about soft brands; he only has seven. 

Dear Insider,

The best first: On Monday, 100 guests celebrated the opening of Rosewood Schloss Fuschl in Salzburger Land, majestically enthroned above Lake Fuschl. Almost every one of the 98 rooms has a lake view, and 245 of the planned 270 employees are already in their posts and looking after the guests. With this, the ultra-luxury operator from Hong Kong takes the Munich-based Schörghuber Group and Arabella Hospitality together with it on its journey into the international resort business. And from now on, the Schloss will take locals on a trip to the new Sea Club, right on the lake. It is to become "the Saint Tropez on Lake Fuschl". 

"We are collectively in love [with this hotel]," CEO Florian Schörghuber said, describing the special magic of this place. His mother Alexandra and Rosewood President Radha Arora already seemed like good friends. After some less fortunate years, Fuschl is now embarking on a new success story. I brought you the details and my own inspiring photos. 

Dear Insider,

Software (AI) and machines (robots) can become teammates, but they will never inspire guests. Even the researchers who explained the tech world to us at the Innovation Day at HITT in Amsterdam last week were convinced of the value of people working with us. The hospitality insiders in the room breathed a sigh of relief. Our summary today is just a mini-teaser from these four hours of surprising approaches, practical examples from the hotel lab and experiments with augmented reality. Hotelschool The Hague, TU Delft, Accor Innovation Lab and Mews managed to translate confusion into logic. 

The article is freely available on our HITT page, where you can also find the picture gallery. In two further videos, we have captured voices on pressing issues as regards the transformation. Well done to everyone who taught and learned so much in two days! Many thanks to the initiators, our experts, the knowledge-hungry visitors to the old barn, and to the sponsors who once again made this "sharing platform" possible! 

Dear Insider,

With its outstanding experts/speakers and topics, our HITT has obviously once again clearly recognised the mood and stress level of the industry in terms of sustainability... Our guests have been showering us with praise on LinkedIn since Monday - at this point, many thanks from our entire team to all of you!!! Our yellow Catch Box (with the integrated microphone) once again flew back and forth in the discussions, all of which had a lot of depth and clearly described the gap between investors and operators. And the asset risks. Also, the progress that CRREM is making in recording CO2 emissions. And further the circular economy from the perspective of Madaster and MindClick. There was also the professor who provocatively said that the industry should be allowed to "die with dignity" - and then be rebuilt. Every impulse generator spoke plainly and with constructive criticism. Our premier in free-spirited Amsterdam and in an old barn in the middle of an urban biotope was a success. "Listen, guys, we need to start"! 

Dear Insider,

In spirit, we are already present at HITT in Amsterdam and are looking forward to welcoming over 60 top-class think tank fans and experts from all over Europe - starting on Monday. The event is now being brought to life by the next generation: Two student teams, from Belgium and the UK, have recently fought their way through to the final in the current competition of the global Sustainable Hospitality Challenge 2024 and present their ideas to us. The initiator of all this is Hotelschool The Hague. We would like to take this opportunity to thank our Think Tank partners, especially Paul Griep for the Next Gen touch and Prof. Alexander Schmidt for the great teamwork on the Innovation Theme Day. 

Our thanks also go to our sponsors Accor, Arabella Hospitality, Wyndham, Drees & Sommer, Häfele, Expo Real, Proline Systems and The Hague. Six of them have built up the Think Tank with us since 2018. They are behind the concept, which openly and honestly discusses the challenges of sustainability and innovation in a small, exclusive circle, across borders and competition. It is no longer a matter of course that marketing budgets are allocated for quality. Thank you very much!