Editorial
Dear Insiders,
Coronavirus shows how volatile our globalised coexistence is today. How are hotel groups in China coping with this, how have they secured their cash flow? The occupancy rate has collapsed and stands at close to 1%, employees are in quarantine. Kempinski Hotels has closed just five hotels, Hilton 150, IHG 160, Wyndham 1,000. Fees are lost, management fees have been waived and suppliers are asked for understanding. Sylvie Konzack and I checked some chains and asked people who live in China about their experience. Today, we provide a snapshot of current events, with the end to this drama still not in sight; Covid-19 infects the hotel industry, tourism and the entire economy.
The global chains are currently presenting their financial statements for the 2019 year and in this context, the CEOs also reported on their concerns and measures in China.
One of the silent but very successful owner-operators in the industry is the Swedish Pandox Group. Its share price is currently on a tremendous rally. Even the daring Jury Inn deal in the UK in the opaque fight before the final Brexit decision has turned out to be perfect timing. A portfolio analysis by Macy Marvel.
After we analysed the state of the German wellness landscape last week, it's the Austrians' turn today. Michaela Thaler, the Managing Director of Best Alpine Wellness, the consortium with the best wellness hotels in the country, puts comparative figures on the table. The well-being pioneers did such a good job over the years that their concepts were broadly copied across the sector. Now, everyone is plagued by the mass commodity wellness – and could kick themselves.
In 2019, the German hotel and restaurant industry recorded an increase in revenue in all segments for the 10th time in a row. As a single destination, Munich can also once again boast strong increases in tourist numbers and turnover. Yet such records are confront the industry with the question of sustainability both on a large and small scale: How long such volumes be tolerated?
In this context, we will also briefly look again at the EU's "Green Deal".
And as far as our own activities are concerned, we can announce today to the HITT Think Tank in Potsdam on 22/23 June: Two more innovative software companies will venture into the "spotlight" of the first day of events. After Mews, Ireckonu and Sabre Hospitality, hotelkit and Robotise are now also addressing the questions of the industry. By the way, you can book the Spotlight Day independently! Get on board, and please tell your colleagues as well. Our article on page 1 has also been updated as well as the PDF of the programme of events. More news and names will follow.
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
Cast off for the 3rd HospitalityInside Think Tank on June 22/23 in Potsdam/Berlin! The motto is "Boost your Service Delivery" and our initiators and hotel executives will discuss with you how the digital world can become alive in your hotel. New: We extended the programme by SPOTLIGHTs. The next tech generation takes the spotlight: Mews and Ireckonu; and Sabre will present their new Hospitality Retail Tool. Those who want to talk to the young innovators and agile market leaders directly, are at the right place here! The SPOTLIGHT on day 1 of the Think Tank can also be booked separately!
Day 2 is reserved again for the Think Tank on the ship. We will cruise the Brandenburg lake district, and listen and discuss about whether and how AI will be able to increase the hotel's performance; and we will discuss the dissimilar requirements and challenges for established global chains and smaller, young branded businesses on their way to the "guest experience". In addition, retail and mixed-use scenes will play an important role this time. You will find all details on our page 1 today! Including programme, prices and booking link.
We are also following the trail of the future with the contribution about new forms of living. Serviced apartments but also nursing real estate are slowly becoming competition for the classical hotel industry. Susanne Stauss collected brand facts and asked experts if they have observed the shifting of investors' funds.
The wanderlust and desire to travel amongst the Germans still remains a benchmark for the travel forecasts in 2020. In comparison to the previous year, only details change. By no means are bankruptcies and climate discussions a reason to alter travel behaviour.
The German wellness scene has to change urgently. Today, it suffers extremely from hardware overkill, especially pursued by the Austrians with their great urge to build. Michael Altewischer from the Wellness Hotels & Resorts consortium and two hoteliers with critical statements about the status quo.
From our news: TUI wants to create its own PMS. Hilton's balance sheet for 2019 arrived, including cautious forecasts for the virus-infested year 2020; in Catalonia, a new group wants to establish itself in Germany, Austria and Switzerland … And much more.
Have fun reading!
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
20 years have passed since the wellness boom took hold in German-speaking Europe. It has become quiet around this segment; a segment that promises well-being, but tends to provoke frustration among hotel owners and operators. Some old problems have remained surprisingly simple: The spa and its staff are still not accepted as equal in the hotel and currently there is a massive shortage of personnel. Lack of training, inadequate provision of staff rooms, bad food and the wrong work clothes leave their mark. On the other hand, hoteliers like to show off with their mega hardware. After Tyrol, South Tyrol is now upgrading. This is also easier than trying to deal with the sensitive "software" in the form of another human being. Only those operating at the very top level make a profit. With the exception of these special companies, the scene has obviously not learned very much over the last two decades.
The two experienced wellness consultants Dagmar Rizzato from Germany and Karin Niederer from Austria have just published a new "Wellness Bible" in collaboration with Prof. Stefan Nungesser. In an interview with me, the experts describe their sobering experiences from the market. - We will continue the wellness theme next week.
Similar to the wellness hotels, international hosts' gaze is often set on the sky. And the Austrians as well as the Scandinavians have woefully noticed: It’s no longer snowing. This will also change the winter business, as Fred Fettner noted at the sporting goods fair ispo in Munich. Now creativity and jest are what's required. But the transition is difficult.
Meanwhile Poland is basking in business. The hotel industry is doing well, and it should stay that way until 2024. The airport is growing, more and more international brands are moving into the country, and now the niche of condo hotels is flourishing. Macy Marvel provides a summary.
Italy is now proving its transaction record for 2019 by numbers, the German hotel industry is losing its RevPAR momentum, but B&B Germany draws a positive conclusion. Kempinski Hotels wants to establish itself in many places as quickly as possible. And yesterday, HOTREC called on the industry to participate again in the biennial survey on OTAs.
There was room for the show on Monday at the "Hotelier of the Year" in Berlin – the German hotel industry's annual kick-off event at the InterContinental Berlin with 1,000 guests and two worthy award winners. A hospitality PropTech could also secure a place on the stage: Do you know of any novel ideas or young innovators from the hotel industry? Then they should apply for the award before the end of next week... The details on our page 1.
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
What can hotels and health care facilities learn from each other? A lot. And many things can even be merged, as the Sonnenhotels demonstrate. They originally launched their idea under the name Care Hotels, but Managing Director Karina Doerschel no longer uses this name. In addition, she fine-tuned the concept meticulously, hired a caregiver permanently for her hotel, and finally found a sensitive investor. Enabling families with people in need of care to enjoy nice holidays is a topic, which has to come out of the taboo zone for good.
The Sonnenhotel in Bad Rappenau shows that accessibility in a holiday resort does not automatically mean handicaps for healthy holidaymakers; everything simply needs a touch of wellbeing. We have followed Karina Doerschel's path for a long time now, and after her visit on site, author Sylvie Konzack is convinced as well: This woman, full of energy, optimism and knowhow, has found a very promising niche. Aren't quite a number of investors and project developers eyeing with niches these days?
Finding staff members for such delicate projects is a real challenge and this leads us to the topic of HR again. But in a very different way: The Belgian Patrick Vermeren, consultant, author and sceptic by trade, does not understand who made companies believe that their leaders have to be coaches too. Or that teams are able to manage themselves. For him, the so-called HR experts are victims of myths and skilled marketing methods.
Listening, enquiring, researching. Quite a few Eastern Europeans have done their homework in the last few years. At the 4th Hotel Investment Conference HOTCO in Budapest last week, it became obvious that the development experts see the difficulties and chances of their hotels/hotel brands in Southeast Europe very quickly and approach them much more unemotionally and numbers-driven than I experienced five years ago in Poland, for example.
However, Budapest is booming, all chains are knocking on its door – and even Budapest expert Stephan Interthal of Kempinski-Hotel, GM and 12 years' experience in situ, is convinced: There is still room for many brands and the flood of guests will not stop … As media partner of this event, we share our first impressions with you on our page 1.
Our news in the magazine: Tonight, Great Britain is leaving the EU; however, nothing will be changing yet for the travel year 2020. But in the hotel market, the gap between city and countryside has already started to widen. Compared to this, Europe's hotel industry has already experienced ten years of growth! The boom in Germany has also been driven by holiday apartments. However, this segment is in motion again: Oyo Vacation Homes acquires the holiday homes specialist Wolters Reisen, media report and Booking.com introduces its own classification for holiday apartments.
Austria, a rather small market for hotel transactions, also reports a new superlative: 2019 concluded with deals worth over 1.26 billion euros. And the Spanish Room Mate group also has positive news.
The year seems to be getting off to a good start for many. But will it continue that way? The coronavirus from China is already endangering the global tourism business… Our everyday lives is more often hanging by silk threads. This, however, puts everything into perspective again.
Wishing you a virus-free week,
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
It might be astonishing and then not at all: Our six chains concluded the year 2019 happy and very happy – probably just like many others in the German hotel industry. But what do the six chains expect from 2020? Vienna House, Choice, Achat Hotels, Intercity, IHG, and Novum provided answers. Three of them expect moderate increases, two of them higher budgets. This mixture probably corresponds well to the industry's mood concerning the new year.
The new year would be fine, if there wasn't the problem with the employees. In Italy, even Bachelor graduates earn 20% less in the hospitality segment than average employees. In addition, hotel staff are not educated sufficiently. At the same time, businesses are burdened with significantly higher personnel costs than in other countries. In their HR studies, two renowned universities present Italy's misery in plain figures.
First stages of sustainable initiatives concerning individual Serviced Apartment brands give rise to slight optimism. There are investors and operators with different ways of thinking and acting – and today the first details about a new agreement model, the so-called Green Lease.
The travel year 2019 was bombastic again, as officially confirmed by the UNWTO this week: 1.5 billion people travelled around the world, which is 4% more than in 2018. And it predicts repeated growth of 3-4% this year. In other words: The industry needs to cope with its challenges – from HR to overtourism… The Austrians are a very good example for the fondness of travelling: They love to travel long distances by plane, but also stay in their home country. The current travel compass reveals everything.
The world's largest tour operator TUI will soon shut down its subsidiary TUI Italia, which does not seem very logical in light of the record turnovers in the country. The Austrian hotel group B(l)ackhome is pushing from Germany into the German-speaking countries and beyond now. And Sabre wants to operate its business from the cloud, in future – the Google-Cloud. Somebody seems to be ready to compete with WeChat & Co. This big announcement was immediately followed by a second piece of news: Sabre and Accor developed a common PMS for all 5,000 hotels; which is a novelty in this way.
And we are happy to point out this call for innovative PropTechs: Union Investment and the start-up platform GERMANTECH from Berlin are looking for the best PropTech in the hospitality industry. Are you one or do you know one? Then please apply today… The countdown has already started. Applications can be handed in until February 15, 2020. More details on our page 1.
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
If you'd like to know how best to fight the hotel industry's corner, then you should become a member of the Austrian Hoteliers Association – or at least ask for training there. At the ÖHV's annual conference in Bregenz this week, the recently re-elected Austrian Minister of Tourism only had positive things to say about the association and even thanked it for its huge and very constructive contribution to the current programme of government. Elisabeth Köstinger even explicitly praised ÖHV President Michaela Reitterer: as a super-strong lobbyist, "who, de facto, there really is no getting past".
Others can only dream of such a close connection. In Germany, for example, a country ten times the size of Austria, there is no national tourism minister and many in Berlin don’t even know what Dehoga does and thinks.
Yet despite these impressions, our correspondent in Austria, Fred Fettner, this week provides a sober and objective summary of exactly what ÖHV and the government have together achieved and what they still have to do. Just how close you have to be in politics today is also revealed by Macy Marvel's article on Ireland's leading hotel group Dalata. It already has a presence in the UK, where it intends to expand even further after Brexit. Macy incorporates the current political framework into the article here – so that the real challenges for such hotel chains can be understood in more detail.
Our third major contribution this week also has a political focus; a focus on the regulations and penalties that dithering investors will in all likelihood have to pay in future if they do not build sustainably. Yet Wolfgang M. Neumann remains optimistic: "If sustainability slowly evolves into additional value, it will gradually move up the investor agenda," he is convinced. As Chairman of the ITP/InternationalTourism Partnership, which currently brings together 14 sustainability-oriented hotel groups, he is currently compiling a comprehensive report together with the World Bank's International Finance Corporation aimed at both educating and motivating. Our article gives a foretaste of this.
The German Property Federation has this week translated the EU's "Green Deal" into hard figures: For Germany, it expects an annual investment requirement of around EUR 100 billion in buildings and buildings technology by 2030. Depending on the targeted reduction of CO2, another EUR 34 billion are added. These are enormous sums.
At the same time, the Fraunhofer Institute asked how the world of work in the hospitality industry will change. Don't worry: The human being will remain, but new technology will be added. You can find the link to the brand-new study here with us today.
People will of course continue to travel. This can be seen in the new record numbers of motor-home registrations. And alongside personnel news and our colourfulm comprehensive news mix today, we are happy to publish two reader opinions on our latest article about the "Silent earthquakes" in the chain hotel industry.
The first surprise in terms of consolidation in 2020 came last night: Investor and project developer Art-Invest from Cologne is buying an operator: the Ghotel Group with 17 business hotels. Only fully integrated can money be earned, says Art-Invest partner Dr Peter Ebertz.
I will be at the HOTCO in Budapest from Monday and hopefully I will have brought some news from South-East Europe by next Friday. Let's see how much foresight I identify here.
Yours, Maria Pütz-Willems, Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
First and foremost, the hospitalityInside team would like to wish everyone a Happy New Year! For 2020 the same applies: Nobody has a crystal ball to predict how this new decade will unfold. And so everyone is well advised to sharpen their senses for market movements and trends – which more often than not arise from old mistakes. Those who move between worlds hear and see much earlier and in sharper focus. One of them is Richard Adam from Munich. I got to know him many years ago as a hotelier. Today, he works as a global advisor for various stakeholders.
All the sharper then is his judgement on the future of hotel chains. He believes that Asset Light is dying, that brands and loyalty programmes are self-created bubbles. As it's no longer the traveller, but rather the investor who's the customer. Why don't you take a look at Richard Adam's message under "Silent earthquakes" and tell me what you think about it. We will gladly respond to your opinion.
And this is how we want to continue over the next 12 months – there for you with well-founded opinions and news on background developments, so that nobody slips into the crevice opened up by that quake. It's with this in mind that Macy Marvel provides a summary of the state of play as regards Brexit: The hotel industry must prepare for difficult months. Yields are declining, performance will stagnate rather than improve, capacity continues to increase and the workforce remains threatened: The Conservatives are now calling for an end to the free movement of people from the EU.
It is therefore still necessary to listen and look carefully. The waves sometimes hit hard, and this is certainly true of climate protection and cruise ships. The pressure on them is growing, but so also is the pressure on airlines. Shipping companies and airlines currently seek to avoid reducing their emissions and are instead focusing on offsetting them. This provides relief for the conscience, and is easy on the wallet. Hoteliers should also listen to this discussion – so that one day they themselves are not accused of greenwashing.
A super-strong 4th quarter of 2019 has pushed up year-end transaction figures for hotel properties in Geermany, yet yields continue to fall. The Italian Boscolo Hotels are an example of how quickly hotels have turned into the brokers' latest plaything. The current beneficiary is NH Hotels, who this week secured palace pearls as leaseholder. And prizeotel will in future no longer accept cash – another trailblazing step by the group. And Booking.com has now officially committed to more consumer protection under pressure from the EU.
Starting this year, we commit ourselves to greater reporting on sustainability. Just like digitalisation, it is a cross-sector issue and will have a strong impact on hotel balance sheets in the future.
You will hear about our other activities in 2020, regarding IHIF/ITB and the HITT Think Tank, in more detail shortly. Some of you will see me in 10 days at the Eastern Europe-focused conference HOTCO in Budapest; hospitalityInside will be there as media partner. More on this on page 1.
Yours, Maria Pütz-Willems & the hospitalityInside team
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
We are leaving the teenage years of this century behind: now the positive energy, creativity and desire of young adults to experiment should characterise the years 2020-2030. Digitization and sustainability will be the major social trends which the hotel industry will also have to follow.
Many things revolve around this range of topics in our final issue of 2019. The German Fraunhofer Institute has just published the results of a study on smart hotel rooms, and the digital registration form will become reality in digitally backward Germany on January 1. Its introduction is nothing compared to the scenario of what will soon be happening with digital security checks at airports. And much of this prediction is guaranteed to be transferred to hotels, especially mega hotels.
The Balearic Islands are not only using the fresh millions from their new tourist tax for sustainability purposes in the industry – this is debatable. But: the main thing is that the issue is firmly established in everyone's minds, and new positive forces are developing from every action.
The New Year will not let us forget the old problems: Macy Marvel has once again broken up the intrigues of hotel bed banks. What is going on behind the scenes sounds like a crime thriller.
In contrast, the city of Zurich should be taking the bull by the horns if it still wants to have control over the thousands of new rooms in the city by 2022. Experts advise existing hotels to make an uncompromising high-quality attack. And the city to reposition itself.
Some of you will certainly stay in the Alps over the holidays. Hardcore skiers will probably get the full attention of the hoteliers again, although they are the minority of all winter holidaymakers. But professional hosts obviously lack the time and desire to deal with the other colourful crowd. This would mean they have to change. This is not necessary, particularly at the end of the year.
The hospitalityInside team is guaranteed to resume work with new momentum after its Christmas break! Our office will be open again from January 7. The next issue will be published on January 10, 2020.
We would like to thank our loyal readers, the growing number of business and event partners, and, of course, from the bottom of our hearts, our own staff, freelance writers and translators for the fantastic teamwork in a demanding 2019. Merry Christmas to you all and a great start into the new decade!
Yours, Maria Pütz-Willems & the hospitalityInside team
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
As the German federal government announced that it would compensate stranded Thomas Cook holidaymakers on Wednesday, the German Travel Association was meeting in Hamburg. There was relief on all faces. But the core challenge remains: "The big tour operators are the problem," DRV President Norbert Fiebig told media just before. Now, we have to talk again about the extent of liability. Fiebig would like to individualise protection from insolvency, as the German travel industry largely comprises medium-sized enterprises.
The package trips, in any case, appear to have survived: In good time for the conference – and in the run-up to the imminent elections to the board – the DSR had initiated a Forsa survey in November, under which the organised travel deal scored well. So the Cook didn’t spoil the broth after all.
There is no sigh of relief for the cruise industry though. The floating giants have come under intense pressure to improve their sustainability balance. The conference itself took place on a mega steamer docked in the port of Hamburg, the MS Artania of Phoenix Tours. Yet instead of pro-actively and purposefully addressing the topic through an open discussion on stage, the DSR ducked the issue. And the greater for it was the focus of individual speakers on the ship building companies: Alternative drive technologies already exist and more are in development. Those who today have commissioned the new ocean-going cruise ships and do not allow any room for alternatives during construction are acting irresponsibly.
A study examined 203 cruise ships on their routes through Europe and determined: 47 Carnival Corporation ships docking in Europe emit 10 times more sulphur than all the passenger cars in the whole of Europe. Macy Marvel has identified even more frightening facts from the study.
Two architects and one project developer answered our questions openly and explained why there will be more and more "rabbit hutch"-sized rooms in hotels in future: By this, we mean rooms compacted down to 16 sqm, which will in future also make an appearance in 4-star hotels. A new trend is emerging.
Our releases today draw further attention to the issues of cruise ships, emissions and tourism development and present, among other things, the new Online Subsidy Guide in Germany.
We also cast our glance far into the year 2020 and present partner terms for participation at the joint stand "World of Hospitality" at the Expo Real next October. Please don't hesitate to contact us if you have any questions, in particular as regards customised spaces.
My first big date in January will be at HOTCO in Budapest – an investor and real estate focused conference for Central and South Eastern Europe. We support the event as a media partner.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
Today, Saint Nicholas will not be able to tell us if a crisis is approaching or not. He prefers to distribute gifts – like the optimists in our article today. Susanne Stauss traced some of them. But first figures show that the wind is already changing in everyday life. First developers and operators are starting to change their strategies and concepts respectively.
This is also reflected in individual activities, as found in the news: Hyatt wants to rev up now concerning expansion, especially in Europe; Radisson, on the other hand, wants to focus on 16-sqm "compact rooms" starting now.
Smart thinking is in vogue, indeed: especially concerning mixed-use, sustainably and digitally interconnected. Investors are still lacking courage here, as the H3 Think Tank by Drees & Sommer in Hamburg revealed. Experts from Hospitality, Housing and Health Care exchanged ideas. All three asset classes are part of mixed-use quarters, whose vitality can only be controlled digitally in future – while saving costs at the same time. A female start-up founder asked the white-haired men, who are spoiled by success and yield-hungry, to test more and to learn more. And she is right.
Smart thinking knows no boundaries and does not stop at HR. You should start collecting HR data, the same way as financial data. Knowing the exact qualifications and performances of your own staff members will also have an influence on business decisions. HR data should be part of every meeting, says one business. The path towards this is via PPA, Predictive People Analytics. Baerbel Schwertfeger explains.
Accor sold half of its shares of Huazhu. We would like to do some guessing and look a bit further down the road to see what this means… Credit Suisse sold 8 hotels to Aevis Victoria – at strong discounts. Thus, the parent company of Victoria-Jungfrau Collection and Seiler Hotels now owns the InterConti Davos – the "golden egg". A big leap towards more presence in little Switzerland! Hopefully, European guests will keep arriving: In the last eight months, trips of European citizens abroad only increased by 2.5% and no longer by 5% as in the previous year.
Kempinski's CEO Martin Smura is expanding his executive board massively, as can be read in the personal particulars. However, the loss of the Kempinski Geneva to the luxury competitor Fairmont Hotels is painful as it happened right next door.
Have a good and smart time… Until next Friday!
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com