Editorial

Dear Insiders,
I will see some of you at Expo Real in Munich, starting on Monday. The investment and real estate industry seems to be well off thanks to the low interest rates, especially in Germany; the hotel industry should also benefit from this fact. The first news reports in advance such as a new special hotel fund or market analyses hint at continuing positive development. Russell Kett, Chairman at HVS London and keynote speaker at the hotel conference, already talks today about the question, whether the industry has to fear another economical crash or not. We will report on all subjects. Through various activities at Expo Real, hospitalityInside will be right up close to the happenings for you.
For the first time, we will have a polling terminal at our booth – now, trade fair visitors will be able to participate easily in the current "Investment BAROMETER", carried out by us and Union Investment. Of course, you are also able to login online – you will find details in the respective article on our homepage. This time, we would like to know why the roll-out of most hotel chains does not work out...
Last week, Choice Hotels announced new expansion targets in Istanbul; however, CEO Stephen P. Joyce surprised his listeners with a totally different tone: "We'll attack the market a lot more aggressively using more capital in the future," he told hospitalityInside.com resolutely. The Choice account is full, the homework as a technology business has been done, the services for the franchisees have been fixed. From now on, everything is primarily about deals in Europe – especially about multiple deals. Moreover, three new staff members will establish specific contacts to investors etc. in future from Amsterdam.
Compared to Choice, easyHotel is very small with only 19 hotels at present. During the inspection of the second hotel in Germany – in Frankfurt – Achim Marowsky of the German master franchisee i.gen hotels enumerated how additional revenues can be generated with a low-budget product.
Today's interview with the General Manager of the legendary luxury hotel Principe di Savoia in Milan leads us away from these down-to-earth figures. He explains, amongst others, how this member of the Dorchester Collection wants to maintain its quality.
From the news: at Romantik Hotels, nothing is very romantic right now – the new chairman Michael Simon just resigned, only three months after taking office. And firms are far less likely to take on more debt when their CEO is compensated through options according to new research. – The full editorial …

Dear Insiders,
We all need some fun say cruise guests thus preferring club and resort ships offering extensive entertainment programmes. Environmental aspects are of next to no interest. However, they should be, particularly when reading the second part about the polluting ocean liners. Slowly, the shipping companies are taking initial measures to save energy, water, gas and to reduce waste, first and foremost, the AIDA ships.
The major providers of serviced apartments in Germany are ready to take their own initiative to further develop the still young segment. Since last autumn, Adagio, Adina, Citadines, Derag Livinghotels, Marriott Hotels and Boardinghouse Consulting have been working together in order to prepare definitions and guidelines for interested investors. The group will present its results at the Expo Real hotel conference on Monday, October 6. Today's detailed article will give you a first taste of what to expect.
Expo Real, for which we will provide a final update next week, will likely radiate lots of optimism including the hotel investment sector. At the 6th "Hogan Lovells Hotel Day" in Berlin two weeks ago, experts attested to Expo Real's bright future – despite the fact that the EU and the ongoing crises surely won't serve to drive away our worries.
According to a recent survey by Treugast, the current crises and rising energy costs are also dampening optimism regarding the operational field of the German hotel industry. Another issue regarding Germany is an ongoing struggle for "motel" as a designation for downtown budget hotels. You will learn what the affected Munich-based Motel One Group has to say about it. In this issue, you will also learn about recent trends in tourism throughout and south of the Alps. Our colleague Fred Fettner discovered destinations that entice people into the woods via social media.
On the other hand, the international Alpnet platform founded four years ago, triggers rather cautious enthusiasm. People in Switzerland might possibly be frustrated again since yesterday: the government decided that weak hotels are not allowed to convert hotel rooms into secondary homes. This could accelerate the decline of medium-sized businesses.
If you need some encouragement, have a look at page 1 and our announcement of the spa workshop about cross selling: Rizzato Spa-Consulting and HospitalityInside aim at supporting spa hotels in optimizing their marketing, making it measurable and driving up profit margins. Register! – The full editorial …

Dear Insiders,

Moxy is here: The first journalists were able to visit the budget baby in Milan. And now? The PR mix from Ikea and Marriott has kept the media cogs turning for a year already. But why? Moxy is a baby for which Marriott does not take responsibility and which Ikea officially doesn't want to commit itself to do either. Up to now, the expansion has comprised only of announcements which currently are again being postponed... The developers and implementers between Ikea and Marriott - those at the seldomly named company InterHospitality - provided some interesting details for our Italian correspondent Massimiliano Sarti. Ramesh Jackson sees Moxy as a super career springboard for unskilled staff at the hotel. The RevPAR at the budget hotel is to be improved with more expensive "premium rooms". It doesn't sound as if Moxy-baby is a finished child.
For years, Alexander Winter and his team have been carefully feeling their way forward and have refined their concept. Now they are certain: arcona Hotels & Resorts will in future expand only with the serviced apartment brand LIVING and no longer with classic hotels. Why? This niche is more profitable. At the opening of the 4th arcona LIVING in Munich last Friday, Winter gave away a few details.
And it's back to school with the international shipping companies: They haven't done their environment homework for a long while, as German NABU now shows: The "dreamliners" of the world pollute the air with diesel fumes and particulates, obviously causing illness and death. The environmental footprint of these floating hotels is terrible, as author Ralph Langrock shows in the first instalment on cruise ships.
Dorint Hotels made the headlines again yesterday in the German real estate newspaper "Immobilienzeitung". Allegedly, Dorint is to clear its flagship hotel Messmer in Baden-Baden. Dirk Iserlohe from Dorint's parent company E&P clarified the situation with hospitalityInside.com. And in Austria, hotel sales slumped significantly on the previous year, the soon-to-merge travel giants TUI and TUI Travel want to make cost savings even increase together, whilst most holidaymakers spend lots of money for shopping on their travels.
In 17 days, Expo Real will start: We are prepared for this important property and investment show - accompanied by 20 Co-exhibitors. At the "World of Hospitality" in Hall C2/230, you will meet global hotel chains, hotel newcomers, consultants, project developers and Private Equity companies. Arrange your appointments! You will find all company names in our update on the front page, as well links to the hotel conference and more information. - The full editorial …

Dear Insiders,

Our pipeline article last week obviously drew lots of attention: Amongst others, Beat Sigg, Delegate of the Advisory Board of the Victoria-Jungfrau Collection in Switzerland thanked us for our "stance on the 'world champions of announcements'" and commented: This is "a real problem which weighs significantly on the credibility of the sector in the minds of investors and staff."
Nevertheless, we must also correct a typo in the pipeline table: Kempinski realised not 8 but 80% of its projects. Thank you to our attentive readers for pointing that out!
Our article on the costs of customer acquisition also deals with the "guest pipeline" in the broadest sense. In order to attract new guests, the hotelier must spend an increasing amount of money. These costs are rising faster than revenues in some cases. Once again a gulf is opening up. The drivers of this development are, inter alia, OTAs and Google.
Vienna International also has a "driver": its new CEO Rupert Simoner. In Poland, he gave a first insight into his strategy. He rigorously questions everything. I ask myself here: Why has Warimpex as parent company allowed the hotel group to drift in exactly the opposite direction over recent years? Or was it fooled by its last CEOs?
In court, emotions have no role to play, especially when employees provide false information. An employer does not discriminate when seeking to determine disability status - and as a result cannot be sued for doing so. A decision from the Federal Labour Court in Germany.
And other news: Budget provider Wombat's based in Austria also intends to expand, recent wet weather luckily only ruined the summer in Northern Italy and, after recent court judgements, the bed-tax chaos in Germany becomes almost unintelligible - just like the behaviour of some hotel groups.
Jumeirah, for instance, presented its lifestyle brand for the second time - without mentioning that this was created in 2010 and then to be condemned to death. In cases like this, the long-term memory of hotel trade magazines and its online archives can be quite an irritation!
And the design brand Kameha is now a member of the Marriott brand Autograph with its new hotel. I've been thinking about the two latter points as well as the about the young "croissant runner" in the Adlon Kempinski Berlin. Read a remarkable story...
Did you read the announcement for our spa workshop on cross-selling last week? If you didn't, take a look at our homepage. The seminar price already includes VAT. If you have any questions regarding the workshop, please don't hesitate to contact me as always at maria@hospitalityInside.com. – The full editorial…

Dear Insiders,
The industry has two inherent quirks: mania craze for titles and announcements. The latter is a factual matter today – it is about the pipelines of the hotel chains. The table at the end shows all too clearly how differently this term is defined and communicated by them. We probed into the subject at hotel groups with various profiles and market priorities: such as Accor, B&B, Choice, IHG, Kempinski, Marriott, Mélia, Rezidor and Starwood as well as at the consultants and real estate brokers Christie+Co and JJL. There are many explanations for the barrel bursts in the pipeline... Nearly as many as titles in the industry.
The Ukraine crisis already shows statistically measurable effects on the business with the Russians in Western Europe. Destination marketers say: Depending on the escalation, the worst decline may yet come. In Austria, the Russian "strongholds" fear for their winter business. In Switzerland and in popular German destinations such as Munich, the luxury boutiques are probably suffering the most at the moment. But the Russians themselves are also insecure and distrusting because of the crisis: Apparently, some of them are now transferring their money ear-marked for German hotel projects to Africa. One developer even had to pray for peace with her Russian dialogue partners... Susanne Stauss and Fred Fettner kept their ears open in the West, across the borders.
Funds initiator August Jagdfeld has "bought his freedom" from the allegations concerning the Grand Hotel Heiligendamm, this week's news claimed. All the facts which the headline craving, hyper-fast industry newsletters did not report, you can read in our magazine: This deal was initiated by the prosecutor's office! Beatrix Boutonnet about the backgrounds and the difference to the case of Yachthafen Hohe Duene in Warnemuende.
The Roman government increased bed taxes for Italy's capital shortly after the holidays: Hotel associations see their country in a downward spiral. Therefore, a study carried out by the EU provides positive news, stating that all of Europe remains a travel destination with growth potential. In Germany, long-distance coaches are on the rise: 14.5 million people used this means of transportation in the first eight months of the year. In addition, there is a new study about hotel management agreements, and yet another manager has left Steigenberger...
And finally, we would like to make the following announcement: On November 14, Rizzato Spa Consulting and HospitalityInside will be organising a workshop on spa marketing & cross-selling. How can you sell well-being? Dagmar Rizzato and I see a great need to catch up in the spa industry, where revenues are partially stagnating. This will be an interesting day for hoteliers, spa/marketing managers and others. You will find all the details on our page 1!

Dear Insiders,
After our two-week summer break, we are back again – relaxed and rejuvenated! Expo Real – for many an important trade show in the fall – will take place in six weeks. Our preparations and deadlines are in full swing; you will find more on this subject in the coming editions. In the footer of this newsletter, you will already see the names of our current trade show partners.
The internet is characterised by a permanent dynamism. After B&B Hotels announced their Germany-wide online and mobile check-in in July, we also asked Marriott and Scandic Hotels about their experiences. The feedback certainly confirms one thing: Guests WANT this innovation!
Starting September 1, the Grand Resort Bad Ragaz will be breaking fresh ground once again. The Swiss wellbeing and medical resort has been granted the – rare – permission to open an in-patient clinic. To this end, 18 design suites in the elegant spa suites tower have now been converted into stylish patient rooms. And the healthy diet is being hidden underneath the silver cloches! Peter Tschirky explains the new synergies between medicine and the hotel industry. Only a few businesses have the gift of being able to reinvent themselves time and again – especially in difficult times.
The Belgians are whining. "The labour costs are killing us," moans the Hotels Association, amongst others, and the trade union accuses the industry of acting unprofessionally. In her portrait of Brussels, our colleague Sarah Douag reveals why and how the Brussels Capital Region suffers, which is also reflected in her interview with the Secretary General of the Brussels Hotels Association, Rodolphe Van Weyenbergh.
Accor has wangled several hotels from competitor Rezidor, the US hotels have been performing much better in the meantime, and the results of other chains continue to underline that the industry had been well off in the first half of the year. HVS presents its first hotel valuation index for Africa. Our Indian colleague Hoihnu Hauzel questioned the sudden departure of Taj's CEO Raymond Bickson three weeks ago. Read all this – and more – yourself! In the News Mix, some news might seem familiar to you; as always, I rework these little important reports from our summer break – so that you will be able to keep track of individual events in the archive later as well. – The full editorial ….

Dear Insiders,
The waves of news in the office are subsiding, the number of people talking into their smartphones out of their deck chairs is increasing... Therefore, with this edition, we want to say goodbye and head off into our two-week summer break.
However, before doing so, we cast a glance at Vienna, where the expected flood of beds around the new central station is already under fierce discussion. A respective low tide will occur at Vienna Westbahnhof. The real estate prices at the central station are increasing, but mainly budget and middle-class hotels will be located there. People are therefore asking themselves in Vienna, who will still be able to earn money at all: today, the 5-star rates are scandalizing low and leading brands are incessantly spiralling downwards.
Italy's tourism and hotel industry is hoping for an upswing. The parliament decided to offer tax credits for renovations and conversions, amongst others. The first half of 2014 provided the Italian hotel industry with a roller coaster of emotions: the foreign demand was the only stable figure.
When a spa has lost its initial opening glamour and everyday life sets in, the revenue often stagnates. Then, the up and cross-selling activities have to be increased. How to discreetly induce the demanding guest to book spontaneously and in advance: Spa consultant Dagmar Rizzato, member of the editorial expert team, provides tips and examples.
From my conversation with Dagmar Rizzato, the idea arose to convey exactly this subject to hoteliers, their spa or marketing directors in a one-day workshop. Save the date: Friday, November 14, 2014! I will provide you with further details after our summer break.
Today's reports: Design Hotels, IHG, Hyatt, and Meliá published their half-year figures. Moreover, we are presenting several studies describing the Germans' never ending willingness to travel and spend money, the Americans' reserve to go on their own vacations, the continued low interest in smartwatches and fitness wristbands, and the consumers' revulsion of sponsored content.
Concerning the last subject, everybody should love hospitalityInside. Starting August 25, we will be on duty again in our office.
Then, the final spurt for the Expo Real registrations will start! Drees & Sommer decided to join the joint stand of "World of Hospitality" as 20th co-exhibitor. For the first time, a business is contributing an extra hospitality accent even though it has its own large stand at the trade show.
We wish you all a good time with family and friends – and a successful summer season!

Dear Insiders,
Europe's first Peninsula hotel will today open in Paris. It's a long awaited milestone for the Hong Kong Chinese Kadoorie family, whose hotel collection consists exclusively of flagships. Peninsula's attention to service and innovativeness has even drawn the respect of Four Seasons and other luxury icons. The Arabian real estate company behind the new Peninsula in Paris, Katara Hospitality, is also making a good name for itself with its long-term strategy for premium assets. In the imposing Parisian hotel, two capital-strong and quality-oriented partners have now come together and they won't rest until the EUR 429 million investment begins to pay off.
Sarah Douag interviewed Nicolas Béliard, the GM for the new hotel, a Frenchman with experience with Peninsula. She also looks again at the hotel's rivals in Paris. Shangria-La, Mandarin Oriental, Le Royal Monceau Raffles and others.
That cost-conscious business travellers can find suitable accommodation is seen with respect to the developing market for serviced apartments. An overview of the projects supplemented by market facts and figures from corresponding studies in Germany.
Vegan is on trend - and hotels have to adjust accordingly. The demand for food without animal products has obviously been recognised by many very quickly, from top hotels to mountain chalets. Fred Fettner has therefore asked a number of Austrian resorts how they face the new culinary challenge.
Alongside Paris, we also look today towards Istanbul, also at the super figures produced by Russian travellers last year. Both markets are now suffering as a result of political turmoil. Marriott and Belmond have posted their quarterly/semi-annual results, Airbnb focuses on business travellers, and at Kempinski renowned GMs are switching between hotels in Berlin, Moscow and Budapest. – The full editorial …

Dear Insiders,
Since Monday, Design Hotels has been a subsidiary of Starwood Hotels. The decision was taken by shareholder resolution, the formal procedure is still not completed. For this reason Starwood cannot and doesn't want to answer the following question: What does the chain hope to achieve through the consortium? Christoph Hoffmann, with his 25hours Hotels a member of Design Hotels gives some food for thought…
The devil is in the detail, as is so often the case... This is true for the 11th Revised Edition of USALI. In a guest contribution today, Michael Regner draws attention to the small and often easily missed changes in the accounting standards.
The luxury expert, Claudia Roth, and I wanted to gain a closer insight into societal trends and for adjustments to operations at the first ITB webinar on luxury last week. It's no longer about USPs, but USEs - Unique Selling Emotions, despite the obsession with the Internet. I've collected a few basic thoughts here, and at the end of the article, included a link to the 60-minute YouTube video.
The German Hotel Association has lost in negotiations with the union for adjustment in preparation for the imminent statutory minimum wage in former East Germany.
In the news this week: NH Hotel introduces its NH Collection, Christie + Co sums up the transaction in the Austrian hotel investment market, consumers support Peer-2-Peer platforms and reject regulation, Starwood Hotels and Carlson Rezidor post semi-annual results and, in personnel news, there are some surprising changes among top managers. – The full editorial …

Dear Insiders,
The sheer joy of Germany winning the FIFA Football World Cup in Brazil on Sunday overshadowed everything at the beginning of the week from the "victory flight" by "Fanhansa" and fan celebrations at the Brandenburg Gate, which had been copied in Lego bricks....
Staff at the German national team's hotel Campo Bahia in Brazil posed for photos with the footballers before they left, now they're just waiting for their personal pictures from the German Football Federation. This will be their only keepsakes from the event. During the team's stay, they were expressly forbidden from asking for autographs in the hotel. Just four weeks ago, Stephan Gerhard from Treugast reported on the difficulties faced through the construction and completion of the resort. Today, he describes last weeks' life and work "inside Campo Bahia" - alongside the German winner team.
On what do hoteliers spend money today? Purchasing companies know. Progros, Atlas and Hogast tell us today how the new generation of hoteliers calculates their interior purchases. Nice to hear: The "standard" room is finally passé!
In the European hotel industry, there are currently more than two million vacancies. Now, the "European Hospitality Skills Passport" is to help speed up the application process for prospective employees. HOTREC manager Isabel Sobrino Maté explains how the pass works for employers and employees.
Our fund expert Beatrix Boutonnet has long followed the controversial fund initiator Anno August Jagdfeld. She takes a closer look at the decision from the Higher Regional Court in Cologne which two weeks ago refused to initiate main proceedings against Jagdfeld. The accusations were of fraud and embezzlement in connection with the Fundus Fund 31. She explains why Jadgfeld can't really claim a "first class acquittal".
In other news, hotel real estate transactions came close to record levels last seen in 2006/2007 over the first half of 2014. And according to the EU, tourism across the whole of Europe should continue to blossom this year... All awaits you in today's colourful edition. – The full editorial …