Editorial

Dear Insiders,
The glass is either half full or half empty. Depending on who you talk to, as far as BREXIT is concerned, either the optimism or the pessimism outweighs. In the hotel industry and tourism, it's no different, as the reactions from real estate, hotel and tourism experts both within and outside Great Britain show. Even in London where this week the British Hospitality Association – by coincidence, but perfectly timed – met, it was stated that things were not that dramatic.
The most important questions - when and how - hang like thunderclouds in the air: How seriously will the London financial centre be at risk, how quickly will foreign investors begin to go on a bargain real estate shopping spree, how few/many tourists will come or not come? And above all: Where will the British hotel industry find its staff in future? Here, the BHA will be banging on the future government's table and will demand a right of consultation on future laws - "so that there's no non-sense," BHA Chairman Nick Varney says.
Even without a crystal ball, it can be said: Great Britain will have a few difficult years ahead of it, as confidence has been ruined. The currency of our time is no longer the dollar, sterling or the euro - it's credibility. It's credibility that provides stability and security. When referring to the shrunken Kingdom, sarcastic voices in London are already speaking of “Little England” or “Greater Guernsey”.
We are living in turbulent times. Airbnb is hitting upon resistance in more countries and cities. Regulation, penalties and law suits. Now, the P2P platform heads to the courts in San Franscisco, because the city has proposed forcing hosts to register.
In Poland, the market for hotels is certainly big enough, as the 3rd hotel conference "Spotlight Hotel Investment" in Warsaw revealed. Poland remains the motor of the CEE, but other countries are catching up - as Lukas Hochedlinger of Christie & Co and others show.
Our "Freitagshappen" last week focused not on housing but on residences and serviced apartments; this small and exclusive talk round is organised by us once per year and takes place at the Nassauer Hof in Wiesbaden. We provide a brief insight into the contents, but don't give everything away, the event is intended as informal exchange after all.
This and more news in today's edition... – The full editorial…

Dear Insiders,
On Tuesday, I met the CEO of the third largest Spanish hotel group, Barceló in Munich. Raúl Gonzaléz spoke modestly but optimistically about the new brand strategy and the new EUR 500 million REIT which now enables the company to drive forward the expansion much more rapidly. Quite incidentally, he mentioned that the company is so well positioned today because it has consistently paid down debt since the crisis in 2008 and has invested in all its hotels.
Spain's second largest player, NH Hoteles, also tried this, though obviously not enough or at least not to the palpable benefit of its very hungry shareholders. Recently, representatives of 70% of stock made a surprising and hard move in Madrid: They refused to re-elect NH-CEO Federico González Tejera and at the same time removed NH's largest individual shareholder – the Chinese HNA with 29.9% - from the supervisory board. Didn't HNA save NH from insolvency in 2013? Yes, they did. And did Federico do a bad job? I don't think so. It seems that hot Spanish blood played a role there, and the cool Chinese are at least likely to see red. They have just lost face.
The consolidation wave in the industry is slowly becoming a real rush. Meanwhile, the deck is being reshuffled almost monthly among merger candidates. Plateno Hotels, part of the giant Jin Jiang conglomerate, is likely to grin: This Chinese company acts discreetly in the background - and then announces almost unnoticed that it will operate 100 hotels in Asia together with Barceló over the next few years.
There were loud protests in Berlin at the ZIA Conference: Suddenly, 300 demonstrators descended and gave expression to their dissatisfaction with the current housing situation. Beatrix Boutonnet was present and reports: The situation on the housing market is indeed tense. For this reason too, the event presumably attracted more celebrities and participants than ever before.
Steigenberger has made a strategic move into India by way of joint venture, TUI Hotels is also looking at Asia with its brands. In Austria, industry lobbyists are pushing for lower labour costs and lower taxes. And the Oetker Collection posted mixed results for last year.
Looking back on our reporting for the first half-year, I can only say this: The international hospitality sector has not been so shaken for a long time. Aggressiveness and rigorousness have been unmerciful in letting heads roll, shareholders have bluffed like poker professionals and the rest have not been asked.
This morning forceasts name the next upheavel: the Brexit. It will have a dramatic impact on tourism. Watch the news! – The full editorial…

Dear Insiders,
Initial industry figures from Paris show that hotels are experiencing dropping occupancy despite the European Football Championship. France is going through a difficult time.
Partners of the Chinese HNA group might also be facing hard times should it react more often as extremely as it did this week: The company issued a press release stating that it was not involved in any discussions whatsoever with AccorHotels concerning investments. In order to avoid speculations of this kind in the future, the paper concludes with the following threat: "HNA Hospitality Group reserves the rights to pursue any legal rights available should any individual or company discuss project acquisition in the name of HNA Hospitality Group without authorization." With regard to the media, the European-Chinese friendship might take a little while longer to grow ...
Nonetheless, China is not giving up for the most part. The appetite for European know-how and the financially strong European clientele is too strong. Two Asia experts at DLA Piper Hong Kong and CBRE London explain today the players in the ongoing wave of mergers and acquisitions in the tourism sector. Insurance companies, sovereign wealth funds, hotel operators and mining companies have already spent impressive seven-figure sums to enter the European market and will continue to do so.
The "fund summit" in Berlin revealed the current problems faced by mutual funds, but it also opened up new doors with the start of its new fund online platform. The struggling sector is drawing hope again.
Hope for more and in particular for the right employees is what the new recruiting methods are giving hotel groups: Lindner, Vienna House, and Derag Livinghotels tested casting and other types of job interviews and are happy about it. Uwe Kanning, professor of business psychology, does not think much of such practices however. From the world of distribution: Austria will overturn the best rate clause of Booking.com and others by law next year. Germany's business travel analysts expect travel to drop in the future. Romantik Hotels does it like the chains: The consortium has joined forces with Châteaux-Hotels from France with the aim of conducting marketing campaigns together.
Derag Livinghotels introduce a new independent brand: Soulmade – hotels made of wood offering a lot of warmth and soul. And the Progros procurement company is increasingly becoming an all-round partner of the hotel industry.
Last but not least, hospitalityInside itself has some good news to report: So far, 28 companies have registered for our "World of Hospitality" joint booth at the coming Expo Real in Munich, among them nine new companies! You can an update on activities, schedules and opportunities to join Europe's largest real estate and investment trade fair in October on page 1. - The full editorial...

Dear Insiders,
Despite all political uncertainties, UBM will continue to invest in the emerging Polish economy. In Gdansk last week, the project development and investment company based in Vienna presented its newest Holiday Inn project for Granary Island, Gdansk, at the very centre of the picturesque old town. It also presented UBMhotels, the new management company. In future, this company will take operations in hand and will even keep a lookout for "third-party" hotels. COO Martin Loecker and colleagues explain.
This was good mental preparation for my imminent trip to Warsaw for the "Spotlight Hotel Investment Poland" conference on Monday, where details will certainly be provided on CEE trends. We report.
Portugal is also coming back into investors' focus. Macy Marvel has summarised the current hotel market, including both national and international players. The figures are on the up, especially in Lisbon.
China's response to Airbnb is Tujia, a holiday home intermediary with state support and with money from some of Asia's wealthiest real estate companies, including the heavyweight Capitaland. Airbnb has already made its move into China, but it quickly ran into challenges there. Sarah Douag thinks Tujia is a sort of virtual Chinese wall.
Will the start of the European Football Championships in Paris today be the kick-off for disaster? It certainly looks like it with strikes, floods, terror risks and frustrated Frenchmen. Even the big French hotel company, Accor, sees itself challenged by China's largest chain, Jin Jiang. It wants more influence on shareholders; now even the French government is getting involved.
Chain giant Wyndham has meanwhile launched the revitalisation of its 16 brands - because the customer wants something else. And the young German resort group a-ja has announced its first a-ja City Resort - and of all cities it has chosen Zurich, and a high-rise at that! There it hopes to provide its guests with that holiday feeling and with entertainment. And all of this will be on offer at a bargain price.
And in two weeks it will all be about prices and costs. On 22 June, we will hold the "Green Hotels" day seminar together with our partner hotelbau. Don't miss the practical information. Last minute registration is still possible. More information is provided on our page 1! – Das vollständige Editorial…

Dear Insiders,
Greece is now linked in everybody's mind with the debt crisis and refugees. And both are impacting on tourism there. Massimiliano Sarti went in search of the facts. This week, he gives us the figures and identifies the changes. Athens is suffering in particular. Even if tourist numbers are rising, it appears that the Sharing Economy is peeling them off quite successfully. Occupancy is rising slightly, but the ADR shows sharp falls. The Greek islands tell a different story though. For 2016, expectations are generally high. But is this realistic?
In Brussels, I saw red last week: lots of Rezidor RED-red. From the entrance, into the lobby and in the rooms themselves. Yet the brand alarm is working. Investors are already taking notice. And the concept for the millennials makes sense at second glance, even if a lot of training on the job is necessary. The global pilot project has been set, and Rezidor falls in line with the "limited lifestyle" hotels.
How does the future look for Rezidor though - after the purchase of the parent company Carlson by the Chinese HNA group? CEO Wolfgang Neumann can't yet take part in speculation, whilst colleagues at NH Hotels certainly see the benefit of a merger of NH and Rezidor in Europe. And: Is there are fight on the horizon between HNA and Jin Jiang?
Sarah Douag was told where NH Hotels intends to go with its now officially presented NH Collection. Examples from Benelux and explanations from Maarten Markus show the way. "We are back in the game," he says.
In one week's time the Football European Championships will begin in Paris, but room rates are fluctuating sharply, even at match locations. A new study draws attention to the hidden gems in CEE. Union Investment Real Estate found out how many investment-relevant hotels are there in Germany. At least, in Germany revenues generated in the hospitality industry continue to rise. Also on the rise - just in case you've not yet read our Breaking News from Tuesday - is uncertainty at Four Seasons as a result of radical personnel changes.
Yesterday morning, I was in Gdansk in Poland as Austria's leading developer UBM announced the foundation of the new management company "UBMhotels". It will not only develop, but also operate hotels in future. UBM COO Martin Loecker brought Martin Loecker brought a wellknown name along: former IHG manager Rolf Huebner. More on this next week!
Last week, we at hospitalityInside welcomed a new member to our team: Karoline Giokas, our new editor. She brings experience in hospitality journalism with her from her time with a specialist magazine in Munich. I would be pleased to introduce her to you personally at upcoming events.
Have you already taken a look at the Green Hotels event that we will initial in collaboration with hotelbau on 22 June in Munich? Take a look on our Page 1 - the countdown for the last registrations has begun. - The full editorial ...

Dear Insiders,
Today, we're being a little "retro", even a little romantic in our desire for the simple and authentic. The Ringhotels consortium, the change from Vienna International to Vienna House, the 'mother' concept of Arcona Hotels, a Genuss portal and Genuss region shows from various perspectives that "old fashioned" is back. Call it "house" or "home" - your guest feels whether you mean it with the new concept.
Today's examples are wonderful proof of how focus has shifted back to what's really important - to true hospitality. The new retro is old fashioned pleasures! All the same, the simple, authentic must also be professionally implemented. Vienna House has for six months seen that its decision to go "back to its roots" was the right one.
A perfect accompaniment here are Macy Marvel's impressions of the Hotel Bellevue des Alpes in the Swiss mountains. At 2,070m, time has stood still - and intentionally so! Since 1840, the family has steered business by sheer stomach feeling. The entire hotel is retro. And still today, it survives without Facebook friends or Twitter. A millennial could hardly believe it.
And what does it all tell us? Every hotel, every hotel group needs an unmistakable profile, a clear position. The reality then often looks different. In Austria, the land of the resort, the majority of small and medium-sized companies in tourism are writing losses. This was the finding of a current study. Nobody in the industry is paying zero-rates of interest. Their low equity ratios are a hindrances, and personnel costs a further obstacle.
Wish and reality are two different things. All the more naive then appears the plan of the new Dutch startup, Bidroom, which pits itself against the OTA giants with low commissions. The German OTA HRS is expanding its foreign commitment. Trainees often take company tests in cases where school grades are not appropriate - a new large study provides employers with valuable orientation. In other news, the German Event Hotels were part of the recent Interhotel deal. And an independent research institute has for the first time published figures on Chinese outbound tourism.

Dear Insiders,
Adjusting in line with turbulent times requires creativity and, in spite of all the uncertainties, it also requires patience. The GMs from the Hotel Belvedere in Locarno, Kempinski St. Moritz and the former TH Resort Schloss in Pontresina report on how they saved their performance since Switzerland's decision to come off the euro peg. One shocked his guests with dynamic pricing, the other adjusted his product to fit better with the seasons, and the third simply gave up.
After the introduction of the higher rate of VAT in Austria three weeks ago, hoteliers are also looking for a suitable painkiller. The chaotic new rules prompt hoteliers to perform their own financial acrobatics. I ask myself how the individual guest is supposed to understand it all.
And it was just as difficult for the CEOs of Priceline, TripAdvisor and Expedia as they had to admit that they are losing profit after publication of their Q1 results. Are the OTA giants beginning to falter?
Global turbulence is also being felt in Qatar. But the Emirate intends to sit out the various crises and continues to work on its long-term strategy. This year, the Qatar Tourism Authority will implement long-held plans: A new system of hotel classification also undertake both owners and developers, and renowned cruise companies will have their cruise ships dock in Doha from the 2016/2017 season, including TUI Cruises. More beach resorts are also being built. And certainly one thing must be conceded to Qatar: In contrast to Dubai, Qatar is more open with regard to its figures, also in difficult times - at least that was the case for us. t the end of this story, Jawad Khan, Director, Debt & Capital Advisory, PricewaterhouseCoopers Dubai explains the current investment climate in the region.
And in the news this week: Italy can provide national but no international figures on the winter season; the courts have stopped an idea on the Canary Islands which would limit hotel construction to 5-star hotels; a new study describes the next luxury travellers; and the Swiss have analysed the subject of food waste in the hotel industry.
If you're interested in a country with potential, then you should look more closely at Poland. Thanks to our media partnership with the still small and personal conference "Spotlight Hotel Investment Poland" on 13/14 June in Warsaw, I will certainly learn a thing or two myself. Christie & Co explains the positive development in an interview today. More on this on page 1. Another banner there leads you to our seminar "Green Hotels" on 22 June in Munich, with special rates for our subscribers. – The full editorial…

Dear Insiders,
Should the British decide to leave the EU on 23 June, this would also have severe consequences for tourism and the hotel industry - on both sides... Outside the EU, the British would shrink as guest group - and in Great Britain, tourism companies would be forced to plug massive personnel holes. In the hotel industry, employees from the EU account for 42% of staff. Investors are just as worried: They have put UK projects on ice: There is plenty of angst… Sarah Douag provides the facts.
In Italy by contrast, there's more hope. Transactions on the hotel real estate market are again beginning to rise - and thus also the interest from international investors. A new fund, exclusively conceived for tourism projects, is intended to attract further capital here, also for secondary destinations. Up to now, it's been almost exclusively the big names signing trophy asset deals. Massimiliano Sarti explains.
The current results from the hotel industry in Dubai speak a language quite different to that of the incurable optimism generally exuded from this city. "Think Big" is still the motto. The many new theme and entertainment parks, all of which will open pretty much at the same time and all of which aim to attract millions of visitors, show precisely this. Anyone visiting the newly opened hotels feels the sober deliberation over the current market situation and a touch more creativity. This month, Dubai will pass the magic threshold of 100,000 rooms.
And among the 100 luxury hotels in the city, there is now a second Four Seasons - a boutique hotel in the Financial Center - as well as the Steigenberger Business Bay with a charming German touch. The land and project developer Emaar, has also opened its first midscale hotel. I visited the three hotels mentioned. And alongside this in today's news mix from the Middle East today, I have again collected some interesting news on the clever Choice deals with the Saudis.
Also in the news this week: Shortly before the merger with Marriott, suddenly one Starwood property after the other is being sold. Panic before the wedding? Whether the deal will close at all is again questionable: Two Starwood owners from New York and Chicago have taken a claim to court - they assert contractual protection for their brand hotels.
And German bureaucracy has finally made life easier for hoteliers. They will soon no longer be liable for guests surfing on WiFi connections with malicious intentions. Booking.com is still having a hard time with the German competition authorities: a decision has overturned recent arguments made by the OTAs. And according to annual reports, the hotel industry is still a joy for tour operator TUI. Enjoy! – The full editorial…

Dear Insiders,
It's not just the engine of the Middle East - Dubai - that's spluttering, it's the entire region. As a result of terror and political turmoil, entire groups of guests are staying away, and even the Arabs themselves are booking with increasingly short notice... The low price of oil is forcing the oil-producing countries to their knees - and the response from Saudi Arabia has been to present its Vision 2030, which places continued focus on tourism. Hoteliers find currencies a bigger problem: Shopping in Dubai & Co used to be an awful lot cheaper.
Dubai is bursting with construction sites again as the hotel construction boom continues unabated. Though as demand falls, ARR and RevPar are also slipping: The negative trend from 2015 has intensified in 2016. - Today an initial summary of developments in the region, in forthcoming editions then a more detailed look at the hotel industry.
Compared to the Middle East, Europe is currently doing well, even if the downward trend is apparent here too. But it's enough that even smaller markets such as Benelux or even just the Netherlands are benefiting from the butterfly effect of larger neighbours. 120 hotel experts met at the annual investment seminar in Amsterdam.
"A hotel is like a smartphone," Sonu Shivadasani claims. The former founder of Six Senses switched to the real estate sector and has today gone his own way with Soneva Hotels and Soneva Private Residences. In his view, luxury still means experience. Which is why he has little time for the diluted luxury chains. Baerbel Schwertfeger interviewed him following her visit to the model residence resort Soneva Kiri, Thailand, where guests enjoy being served sandwiches in the tree canopy - although they have bought million dollar villas. A lesson in luxury.
And in the news this week: Two new market analyses have been released, one with a global focus and the other concentrating on Europe; also a study on trends in future consumer behaviour. In Berlin last Sunday, the ban on letting apartments to tourists for short-term stays without a city permit entered into force. It limits room for manoeuvre for Airbnb & Co - at least in the cities. As a result, Airbnb has headed into the country and is making acquisitions among Austria's private landlords. There's even an official deal!
Pressure on the hotel industry is also falling from the OTAs. Booking.com has now introduced a chat function in real time: Those booking rooms can now communicate directly with the hoteliers. This is another opportunity and risk for the professional host.
Green Hotels are an opportunity: Learn about sustainability certificates for hotel real estate from those practising the philosophy. We will hold the corresponding seminar together with our colleague from hotelbau on 22 June in Munich. Details on the final issues and speakers can be found on our Page 1. Enjoy reading!

Dear Insiders,
It hides a certain special irony: At the Arabian Hotel Investment Conference in Dubai, which Maria Puetz-Willems visited the day before yesterday, Rezidor CEO Wolfgang Neumann was to speak on mergers and acquisitions. His sudden and premature departure raised questions which remain unanswered since yesterday: The Chinese HNA Tourism Group is set to acquire Carlson including its 51.3-percent stake in Rezidor. Neumann it seems doesn't only talk about takeovers, but is himself right in the middle of one. Sarah Douag explains the deal.
The Chinese appetite for Western hotel and tourism companies is unabated. The reasons for this are obvious. Whereas we reported last week that China for the first time made it into the Top 10 preferred conference destinations, today's news is that in 2015 the expenditure of Chinese business travellers for the first time exceeded those from the US. And the gap continues to widen in favour of the Chinese.
Back to good old Europe: Here, the Southern European holiday destination countries Italy and Spain have enjoyed great popularity. This of course also raises interest in real estate there. In Spain, investment in historic buildings has increased, many of which are to be converted into hotels.
Massimiliano Sarti visited the annual conference of the biggest Italian hotelier association Federalberghi and identified various shadowy areas there despite the sunny booking figures. President Bernabò Bocco, again criticised the unfair tax treatment of the shadow hotel industry and the bed tax imposed on hotels.
In other releases today: Dubai is back down to reality. Tourism in the Arab world has waned in the wake of the oil crisis and exchange rate gyrations. A first impression from this year's Arabian Travel Market and from the AHIC this week. Booking.com has asked customers about sustainable travel, TUI has found buyer for its bed bank Hotelbeds.com Another article summarises the current state of mergers and hopes: of Marriott/Starwood of AccorHotels/FRHI and of TripAdvisor, which has acquired HouseTrip.
On our Page 1, all users also find the last written summary of the "ITB Hospitality Day" panel, this time on loyalty programmes. And a nice coincidence: A Marriott representative also sat on this panel. And Arne Sorenson, speaking at the AHIC, has just described the power of the loyalty programme as crucial reason for the merger with Starwood.
And here is the very last news of last night: Darren Huston, CEO of Priceline Group has resigned, effective immediately, following an investigation linked to a personal relationship that he had with an employee who was not under his direct supervision - an act which is contrary to the company internal code of conduct. He is replaced by the ex CEO and current chairman Jeffery Boyd, while the Group is looking for a new CEO now. Darren Huston, who was also the CEO of Booking.com has been replaced by Gillian Tans. She was already COO at Booking.com.