Editorial
Dear Insiders,
The mood is good, the trend is declining. This is the result of the current "Investment BAROMETER" we conduct together with Union Investment around Expo Real once a year. Transactions and hotel development are definitely becoming more difficult, stated the people surveyed. All individual indices are dropping, this means that caution is advised. Nevertheless, the satisfaction in the market is still great. You will find an overview of the results on our page 1; our subscribers will find all details in the magazine.
Almost four weeks after the Expo Real, we are able to present you with other positive statistics from Messe Muenchen: Again, about 31 percent of the participants stated upon registration that "hotel/gastronomy properties" are currently very interesting for them. Considering the fact that Expo Real had a plus of 6.6 percent participants, this is a very pleasing result. Also in Expo Real's own mood barometer prior to the trade fair, about 31 percent were convinced that hotels in Germany would become more important this/next year.
This means: After Expo Real is before Expo Real! If you want to participate in our "World of Hospitality" or co-operate with us in any other way, please contact us! The preparations are already under way.
Today's article about the never-ending hotel boom at the central station in Vienna proves the unbridled euphoria in the industry as well as caution at the same time, as revealed by the BAROMETER: The hotels at the Westbahnhof, which have been popular in Vienna up to now, are starting to suffer. Fred Fettner looked around Vienna.
It has become tedious to be in and around Amsterdam City as a tourist. One million inhabitants are being overrun by 18 million tourists every year in the meantime. Overtourism at its best! Now, the city is taking measures: It is stopping new hotel projects, limiting travel groups – and reconstructing the historic city centre outside the city in a separate theme park. Clever. Will the tourists accept it? René van Schie at Metropoolregio Amsterdam explained the situation and the counter measures at the Expo Real hotel conference.
We have become used to lateral thinking when it comes to AccorHotels, also concerning the topic of digitalisation. But "Seeker" seems to have been purely show: With the aid of biometric data such as brain waves and pulse rate, they wanted to identify the unconscious desires of their loyalty members in this project. Baerbel Schwertfeger rated the entire project as a flop; loyalty members contributed scornful comments in an online forum.
From today's news: The new "EU Chains Report 2018" by Horwath HTL has been published for the second time and is starting to show the further development of hotel chains and brands in 12 EU countries. One thing has become clear: The chains are penetrating nearly all markets with an increasing number of rooms – national groups are being left behind. Our readers have exclusive access to this report for one week. And: Treugast is giving thought to the hotel market development in Germany until 2030. Managing Partner Michael Lidl explains.
Until next Friday!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The sector is drowning in a flood of brands: This week, Hilton and Premier Inn have announced their next brands. Even insiders can no longer differentiate between brands and taxi-drivers have only cursed about them for a while already. And so it didn't come as a surprise when the discussion at the Expo Real hotel conference touched on the global brand chaos and moved towards justification for either a mono-brand or multi-brand structure.
Serious brand awareness is at best achieved by old, organically established brands, whilst young brands tend to make their way into the traveller’s memory with extreme USPs. The brand chaos, which the large chains only encourage, is a curse for small and creative businesses. It's a shame about the millions of euros spent on marketing a new brand – millions which are no guarantee that the 5th, 15th or 25th brand will make investors and operators any happier.
Thomas Emanuel from STR also revealed another brand dilemma at the Expo Real. Boutique and lifestyle hotels are, on the one hand, no longer clearly distinguishable as segment. On the other hand, despite their sexiness, they still haven't managed to record the same RevPAR as traditional hotels.
Brands, and above all the brand bandwidth here, meanwhile play a significant role in conquering continents. Africa has long been touted as "the new Asia" – there are prospering landscapes almost everywhere. Of all the groups looking to expand and storming towards Africa, Sarah Douag took a look at AccorHotels. CEO Sébastien Bazin explains in detail how he secures locations and wants to include young Africans. The 1 billion dollar investment fund with Katara Hospitality might help a little there...
A Chinese online giant perhaps gave the subject of brands another decisive twist this week: Ctrip will establish its own hotel group. Chinese media are still providing confusing reports, Ctrip itself told hospitalityInside.com it is still too early... One thing is clear though: It will be easier for an OTA to transform into hotelier than the reverse.
Germany's largest automobile club, the ADAC, makes camping and glamping digital: In November, it will launch a new booking portal for camp sites, including story-telling and reviews for the campers. Hotel groups like Valamar in Croatia, who themselves market camp sites, will certainly find that a good thing, even if they have quite different problems to solve: The first expansion foray into the Austrian Alps served primarily the purpose of full-year staff employment.
This and more in our edition today... And since we mention China: Do you still have the m2C – the "marketing to China" – conference on the radar. It will take place in January 2019 in Prague. Learn more there from the Chinese on their digital marketing & e-commerce. The direct dialogue is still the best. HospitalityInside subscribers receive special terms. More on our Page 1!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Today, we will review Expo Real again in the videos and pictures from our own activities, from the joint stand "World of Hospitality", the 10th edition of our networking event "Bricks & Brains", and the Expo Real hotel conference "Hospitality Industry Dialogue", which was very well attended. You will find the links in the respective article on page 1.
The couches and seats were packed at the panel discussions which dealt with deals and rates of return. Our authors have taken notes: In the fight for deals, bad manners are spreading. A handshake is not worth anything anymore, and the developers are exerting pressure on the buyers to squeeze out more money, just before the notary appointment.
As is well known, ROI is also decreasing so that investors are looking for new concepts, e.g. co-working spaces, which are said to be very successful. Nevertheless, Patrick Nelson from WeWork had a hard time at the panel, as he could not disclose any figures officially. Without a comprehensible track record, these young companies are not going to easily become partners for investors.
The trade show marketplace also brought up new personal data and allowed for interesting individual conversations: Hilton is stepping up its pace in Germany, Scandic's CEO Even Frydenberg wants to increase the company's activities in Germany, and developer Nakheel from Dubai is looking for hotel brands from all over Europe.
Leaving Expo Real aside today, we are reporting about TripAdvisor's counter measures concerning fake news, after the first professional manipulator went to prison in Italy. But one massive problem remains: as long as the review platforms allow anonymous reviews, they themselves hinder the tracking of criminals. Randomly, the case in Italy provided good preconditions as all participating parties – hunter as well as hunted – were within the same legal framework. This way, the manipulator was traceable.
Marriott wants a closer connection of Design Hotels to all its distribution channels; therefore, it terminated all current agreements, which related exclusively to the loyalty programme. Within two years, the private hotels under the roof of the chain have to decide: going all in with Marriott or leaving? There is a first new benchmark provided by STR about the performance of the Austrian city hotels, and Deutsche Hypo has compiled a current report full of figures about the hotel country Spain. You will find the details here with us, where else?
Have you already participated in our "Investment Barometer"? How has the mood changed since last year? This link will bring you directly to our survey! As of next Monday, we will be winding up the survey. Participate to get the results!
Until next Friday,
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Europe is booming, but Germany is being veritably flooded – with more and more capital and hotel brands. Who and what was Lehman again?? Nobody wants to know. The Expo Real revealed a divided view of Germany. Those from outside view the country as secure, stable and robust... Adjectives which are beginning to take on creed character. As a German, I ask myself here: Does nobody abroad read the newspaper about this “wonderland” and its current weaknesses? On the other hand, Germans themselves have a much more critical opinion of things. Beatrix Boutonnet summarised the mood at the entire Expo Real – and reveals how the hotel industry is, in some approaches, beginning to merge together with developments in the wider real estate industry.
Susanne Stauss and I focused on the hotel industry. There, the party continues, above all among project developers, who are the key to the desired plot and/or end investor. Operators are meanwhile cautious; the hotels are already no longer filling up in every popular location. The current sector analysis conducted by Treugast proves the negative shift by figures.
And because everyone at the trade fair is focused on projects and brands, we offset the euphoria with an article on the desperate search for qualified staff across the whole of Europe. A drama! Refugees will only partially solve this problem. Sarah Douag collected examples, both encouraging and frustrating at the same time.
For us, the trade fair was a success: 30 satisfied co-exhibitors will go home with many new contacts and projects... More on this on our Page 1.
There you will also find information about our "Investment Barometer" in cooperation with Union Investment: We deliberately leave this survey open after the fair because your discussions there may have influenced your opinion. Click here to quickly and easily answer our few questions about transactions! Thank you very much!
Treugast also again presented its "Investment Ranking" at the Expo Real. H-Hotels, little known just a few years ago, have now made it into the premier league. Our Expo Real News Mix also includes reports on our conversations with the hotel groups. More here next week. Summaries of the talk rounds from the hotel conference, which were this time very informative in terms of contents, will also follow.
Another topic of conversation at the trade fair was of course the many mergers and the future of the chains. A subject which remains explosive: NH has this week rejected the takeover offer of Minor. The game will therefore continue, just as it does for Radisson, where still nobody knows what will happen under Jin Jiang.
AccorHotels' first marketing campaign supported by artificial intelligence was a success. And Rilano Hotels offers its first room shopping robot in Munich. The machine sells drinks direct to the guest's door. This and much more in today's edition... Enjoy reading!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The hotel industry is gasping again: The Expo Real Munich is about to begin. Starting on Monday, many will be chasing after the best deals and last available properties again, no matter what the cost. Ten years ago, the industry was also gasping – but in a negative sense. The Lehman crisis was showing its grim face. Will the hotel industry suffer again in the next crisis? Probably not. Did the industry learn anything from Lehman? No, nothing at all, says Dirk Bakker at Colliers International in a review today.
Next Friday, we will be able to tell you how euphoric the mood really is, when we have collected facts and opinions at Europe's leading trade fair for property and investment. Talk to the experts yourselves! Visit our 30 co-exhibitors at the WoH, the "World of Hospitality". You will find their profiles at the Expo Real website and in our brand-new EXPO REAL SPECIAL, published today. Browse the new issue online! The banner on our page 1 also leads to the freshly printed special issue, whose link you are also welcome to pass on to your business partners.
The market is acting up, but prizeotel is experiencing it completely differently at the moment: there is a stand-still! Two and a half years after selling 49 percent to Rezidor, the brand was sold by Rezidor's parent company, Carlson, to HNA and then again to Jin Jiang. CEO Marco Nussbaum is very frustrated: The brand is being ground in the merger mills, the large partners have caused more bureaucracy, slowness and higher costs. And now, the demanding economy lifestyle brand, which is exclusively connected to the internationally renowned designer Karim Rashid, is even being put in the same box as the budget brands of Plateno or Louvre?! Nussbaum: "The cultures simply no longer fit together," he said at the end of our candid interview. This is the other face of globalisation.
While investors focus on Europe north of the Alps, Italians are still struggling to find financially strong investors for their hotels. Now, the interest in NPLs seems to be increasing – mainly for trophy assets. Or they are looking for short-term rental objects and serviced apartments. In these fields, Italy still has plenty of non-performing loans to offer.
For the first time, Engel & Voelkers carried out a survey exclusively about hotel sentiments. And there is a first survey about electric charging stations in the hotel industry. After its successful pilot phase in London, Marriott is extending its Home Sharing to Paris, Rome and Lisbon. Air France and Booking.com are entering a cooperation for the booking of rooms, which seems like a dig at AccorHotels' NO a few weeks ago…
Please, don't forget to participate in our "Investment Barometer" despite the excitement around Expo Real. Open our very easy survey tool with one click here, where you no longer have to register. Or come and visit us at our stand at Expo Real and vote live at our terminal!
Right next to us, there is the "Planning & Partnerships Forum", where the hotel conference "Hospitality Industry Dialogue" will start on Monday at 1 pm. You will listen to high-calibre experts on the topics of boutique hotel performance compared to traditional hotels, brand chaos, deal actionism, ROI increases, overtourism, and digitalisation in hotel properties. The latter also ties up to our first Think Tank last June.
We will probably see many of you at Expo Real next week as well as at "BRICKS & BRAINS", where we will be toasting the 10th anniversary of our networking event! After the Lehman crash, we started this event to build some trust between hotel operations and hotel investment…
I wish you all a successful week!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Millennials are already marketing history. In future, the focus will be on the "nomads"; people who travel a lot, who are self-employed and work when travelling. The places they stay will be just as trendy and relaxed – like Selina. This young company, founded by two Israelis, counts 27 hotels in South and Central America. Now, it is scouting out Europe, especially Britain and Germany.
Their concept is fully scalable and their processes are data-driven, process-optimised and lean. Whether their leisure-heavy approach works in more urban markets, remains to be seen: The money is to be made with beds and not with rooms. And with more services for which the guest is happy to pay. Selina is another hybrid on the market: "A boutique hotel with the power of a hostel". Selina's self-confidence is great.
You have to be ready for new competitors, just as you are for IFRS 16. From January, the new EU-wide standard shall apply for lease contracts. Listed companies will then be obliged to amend their accounts. Non-listed companies should consider doing this voluntarily, Jeroen Krijnen from PwC Netherlands says. He regularly draws attention when he asserts: The new regulation will raise the debt ratio by 22% in general! Sarah Douag interviewed him.
Entrepreneurs feel a shudder run down their spine here. Guests, on the other hand, love phases of hot and cold – such as those you might experience when you step out of a hot pool and into a cold natural lake, for instance. This combination has meant record visitor numbers for thermal spas in Austria this summer. As well as more revenue. Fred Fettner dived into the reasons.
Will TripAdvisor become the Facebook of the world of travel? Stephen Kaufer’s vision goes some way in this direction. He wants to turn the ratings platform into a community and content platform. In contrast, Wimdu is leaving the sharing economy race: Its owner is shutting down the platform, once a rival to Airbnb. Though young people need places to stay.
As regards the "panic button" the large US chains are now introducing to protect their housekeeping staff, we in Germany can only shake our heads. For this reason, we will refer only briefly to the issue, to document it and to show that although the leap from one continent to another has become easier, but not every culture is the same. In addition: Vienna International and UBM hotels are united by joint venture: Vienna CEO Rupert Simoner now also wants to franchise international third-party brands.
We find ourselves in the home straight for preparations for the Expo Real, which will take place in 10 days in Munich. For this reason, we start today with the annual "Investment Barometer" in collaboration with Union Investment. Anyone can take part in the survey: You can begin immediately with our tool. Click on this link. Take part online! You can also take part at our stand terminal at "World of Hospitality" and have a coffee with us.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Carry on!
Dear Insiders,
The "real estate autumn" has begun and with it increased speculation as to the anticipated economic downturn. It will certainly come, as figures quoted by one CBRE investment professional last week in Amsterdam seem quite unsustainable: In 10 years, from 2007 to 2017, investments in hotels in Europe have tripled from EUR 7.5 to 22 billion. Of all of the world's markets, Colin Low believes Europe to be the only one in which market conditions are round about right. His appeal: Carry on, invest!
Bulwiengesa doesn't see the current situation quite so euphorically. In all asset classes, yields are tanking, only logistics and the hotel industry are holding out. The hotel sector still makes a good figure when it comes to ROI, though is under pressure nonetheless as many new players arrive on the scene. Beatrix Boutonnet compared all asset classes: Decisions for or against the desired asset class must be taken by many investors in the dark...
Tourist destinations and hotels have meanwhile made their way out of the E-mobility fog. After E-bikes on holiday, an increasing number of travellers and holidaymakers are now asking for E-cars and E-fun-vehicles. And Switzerland has created the first holiday road which can be travelled completely by E-car – along a route with more than 20 lakes. And the best thing: You can even earn money with the new E-offers. We have collected some examples.
Choice Hotels has become the first chain in the hotel sector in the US to present virtual payments for corporate clients. A trailblazing step, even if the introduction of such technology in Europe is still awaited. Austria's Supreme Court has handed down judgement: Anybody subletting their home through a sharing platform risks his or her own tenancy. At the same time, Italy has Airbnb & Co in its sights and like other countries now also demands an ID code for short-term rental. The desire for new destinations is growing and growing. Meanwhile, city trips have overtaken the popular sun and beach holiday.
Alibaba from China is now launching a service robot for the hospitality industry - an all-round talent that allegedly can do everything from delivering meals to washing laundry. And it also talks to the guests.
We can no longer shake off China. That is why I recommend you to take a look at the new m2C - marketing to China Conference for Digital Marketing & E-commerce which will take place at the end of January in Prague, though which already deserves your attention. Learn more about Chinese thinking and get to know new partners if you want to build contacts in China, a country with huge travel potential. More on this on page 1.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
There's hardly any other company that so cleverly opens the side door like Airbnb. Now, the profit-seeking "sharing economy" platform has closed a deal with the Paris-based real estate office Century 21. Century 21 is to list the apartments for sub-letting – landlord, tenant and real estate office then share the booking income. Experts place a huge question mark behind the plan though, mainly as regards insurance. The mood at Paris town hall has also changed: As well as pursuing Airbnb through legal channels, it is now also considering an outright Airbnb ban in several arrondissements.
A cross-sector discussion round between "3H" properties gives cause for hope: healthcare, housing and hospitality. There are numerous interfaces here and the desperation as regards digitalisation is similar. Project manager Drees & Sommer got the roundtable up and running. In the end, it was the conservative construction industry that was the bogeyman.
Beach holidays are easy and safe. Alpine holidays are expensive and perhaps also dangerous. These are the images in the heads of many travellers. This was the finding of a survey conducted by the Austrian Tourist Board. In response, the ATB has now come up with inspiring ideas for tourist companies and hoteliers as a means of helping them prevent the mountain holidays fall into irrelevance.
The hot summer drove business in Great Britain, Italians received a cold shower when it came to the beach holiday though – the figures at "Sun & Beach" contracted. Booking.com is pushing its "Experiences" in the US and is catching up on Airbnb. The Spanish Hesperia Group is now provoking Minor in the acquisition process for NH. And Steigenberger Hotels is still busy with the two British deaths in Egypt, a case that still leaves many open questions despite publication of the autopsy results; the media are still doing somersaults.
For us, the Real Estate and Investment Fair, Expo Real in Munich, is moving ever close. Appointments are piling up on all sides. For this reason, we publish today the profiles of our 31 exhibitors and the stand plan for our joint stand "World of Hospitality”. We round off with a mix of colourful personnel and short news. Till next Friday!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The research carried out by our correspondent Sarah Douag can be compared to a leap into unknown waters: Her first blockchain article submerged her into the dark. She then surfaced to catch breath and went to a pure blockchain conference in Amsterdam. There she spoke to start-ups offering solutions in specific subject fields, e.g. how to check a person's identity, how to link locals up with each other, how to avoid intermediaries, how to track goods and products and, of course, how you can pay with blockchain. She recommends hoteliers to remain attentive and informed and even perhaps make a few tests. Take some time for this compact report.
Compared to this, Hammerle and Huber Hotels are much more familiar subject matter. These family names stand symbolically for committed hoteliers which have evolved into influential mini-groups in smaller destinations. Here, not only children and grandchildren help out, but the owners also have crystal-clear and strict concepts – like the chains. Fred Fettner talked with such multi-hoteliers in Tyrol.
Klaus Lengefeld has given his life to the subject of sustainability, and has assessed destinations and hotels around the globe in this regard. Today, he is an independent consultant and will question future concepts and initiatives for us. We begin with a comparison between sustainability standards for farmers and hoteliers.
Collaboration between hotel groups continues – fear of losing market share is enormous. Now, Louvre Hotels Group is collaborating with the luxury hotel group Lucien Barrière: Both want to expand luxury and attract Chinese guests. Egypt and Greece have this year ensured that tourism figures in Spain have stagnated.
Marriott Vacations is growing – just like Marriott Hotels – through acquisitions: The acquisitions of the Interval Leisure Group is now complete. This move is also newsworthy. AccorHotels has also officially concluded the acquisition of Mövenpick: CEO Olivier Chavy is thus no longer in office. He will now take a year off. The Germans too take too much time off and suffer – from leisure stress! This is the finding of a recent study.
On Tuesday, 13 think tank members met for the 1st post event at Sabre Hospitality in Frankfurt. The discussion surrounding the networked real estate and the networked processes in hotel operations was lively and very open again! Thoughts from the starter event in Berlin could be refined – and have revealed a whole range of exciting topics for the HITT 2019. We are sticking with it!
I wish you a good week, without work or leisure stress....
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Two deaths at the Hotel Aqua in Hurghada have revealed the turbulent media times we live in and how quickly a franchisor can get caught in the line of fire internationally. Press articles in tabloid style and a self-centred tour operator are not helping to calm the situation in this time of crisis. We asked a lawyer how a non-involved franchisor can avert damage from the company. It is still not clear why the British couple died in Egypt.
1+1=3. This formula stands for innovation, at least for Vienna House CEO Rupert Simoner. In autumn, the construction for the first tribrid brand R.evo will start in Munich. Behind the scenes, many discussions are taking place about how to meet the demands of the various target groups of hotel, living, and serviced apartments – via app, via chat, with an individual fridge and croissants, which can be bought at the bar and consumed in the hotel room. A first glimpse into a new concept.
Employer competitions? The business with the seals is flourishing. In the end, it is only about more marketing than substance, as Baerbel Schwertfeger found out. Scandic and Lindner Hotels explain why they participate nonetheless, other groups such as Motel One or AccorHotels are rather tight-lipped. The lack of talents fuels the business in HR, and vanity opens the wallets of hoteliers – just like with most awards.
These pieces of news also concern staff members: After a survey among non-academics, the so-called "Blue-Collar-Kompass" asks companies to describe the team spirit in job advertisements too. If the spirit is not right later on, 36 percent will quit afterwards only because of that. And the Italian Parliament has approved the reforms in employment law, as expected.
The Chinese, who are fond of travelling, set new records in the first half of 2018: 80 million crossed the borders, which is 16.4 percent more than in the same period last year. And Portugal experienced how direct flights to Lisbon caused the figures of Chinese arrivals to explode. Every mobile picture of a trip abroad increases the people's social media status; this is very important to the Millennials, as another survey reveals. Finally, there are new figures and statistics about chains and market developments in Switzerland: The pressure is growing.
Have a successful week!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world