Editorial

Editorial

Editorial September 6, 2013 - CEOs, banks, Expo Real: Everything is in motion
5.9.2013

Dear Insiders,
Is the CEO of your business a financial or real estate expert? Does the CEO get fired every two years? Then your hotel group is in vogue. Or does your CEO have his own Chief Financial Officer and, on top of that, the time to talk to him? Then your hotel group belongs to the old guard! The new hospitality leaders are non-hoteliers. They are seen as creative and non-conventional thinkers. What can these new leaders in the industry do better? How long will this change last? hospitalityInside.com talked to former CEOs, executives and head hunters.
The trigger for this article was last week's CEO change at Accor where the last Colony shareholder took over the operative business. Sébastien Bazin told Accor employees in Paris: "I am here to stay!"
In Austria and in the Engadine in Switzerland, the Italian tourists are staying away. The "Ferragosto", the long vacation, has just ended and confirmed the sad tendency of the first half of the year. 30 million Italians remained at home. Only Germany reports a growing number of tourists from the economically severely shaken country.
When Deutsche Hypo started to finance hotels 30 years ago, there were no reference numbers back then. Today, Deutsche Hypo still finances hotels and it is to remain this way. However, internal pressure makes stricter selection necessary. Executive Board member Andreas Pohl provides an insight into the banks' way of thinking and their standards. Even though many readers have told me horror stories about banks, I am happy to hear a banker express his personal thoughts here. Maybe in this way we shall be able to encourage other banks to tell us more about their dealings with hotels.
The news is as colourful as always and this colourful hospitality world is reflected in the 3rd joint stand of "World of Hospitality" at Expo Real this year. There have never been as many hotels at the trade fair for property and investment as this year! 16 hotel businesses and hotel specialists look forward to new contacts with banks, project developers and investors. Take the 10 hotel groups alone that are represented with more than 27,000 hotels and 3.1 million rooms all over the world! You will find renowned names of the people you can meet at the trade fair on our homepage!
If you want to join the hotel conference on the first day of the trade fair: 32 top-class experts from eight countries will debate the current financial and property subjects of the industry. For the first time, there will be a CEO panel – with 3 CEOs. You will find more information in the report on our homepage! For non-subscribers as well. - The full editorial…

Editorial August 30, 2013 - Accor, Egypt: From unscrupulous to optimistic
29.8.2013

Dear Insiders,
Accor has obligingly waited with the announcement of its new CEO until we returned from our summer break ... And so we are today able to report comprehensively on what happened behind the scenes this week in Paris. It is unusual that a shareholder switches to operations. As Colony Capital representative, Sébastien Bazin has put a lot of pressure on Accor CEOs over recent years, now it’s his turn to be subject to the pressure. Though there’s no need to worry about him, French media describe him as relatively unscrupulous.
Many countries have meanwhile issued warnings against travelling to Egypt. Moevenpick can already see evidence of the collapse in tourism in its results. "It's tough", says Area Manager Alan O'Dea. Orascom chief Samih Sawiris is also very optimistic: He expects "business as usual" for the next winter season.
Ramsey Mankarious provides some insight on movements on the hotel investment market today: Europe will have to accept that money flows of the future will come from Arabia and Asia. The equity expert will also participate on a panel at the hotel conference at Expo Real.
Online lawyer Peter Hense leads us into quite a different world again. He describes how hoteliers can defend themselves against false or unfair accusations on ratings portals - or not.
Of the smaller news today, one or other might appear familiar; like every year, we report on the most important events from the summer break in order to keep our archive up to date. But from now on, we are back with you every Friday until Christmas. I wish you today a pleasant read! – The full editorial …

Editorial August 9, 2013 – Internet giants and niche products
8.8.2013

Dear Insiders,
Only recently, futurologists reported in the "Design Hotels Arena" how 10-year old children "advise" their parents and them on the purchase of individual goods. The influence of internet giants like Google, Facebook, Amazon and others has been increasing constantly.
Here is our summary for you – with increasing worries in view of the current news: the Amazon founder purchases the "Washington Post", a media legend; and Google and Facebook & Co are said to have provided US intelligence NSA with data... The futurologists mentioned precisely these internet giants in the Design Hotels Arena. Those, who do not think of their own interests, social and medial manipulations, are blind...
Today, at the end of Ramadan, we are dealing with an increasing number of travel-keen Muslims. Shaza Hotels is the only luxury hotel group that fulfils their needs of halal and more. The Shaza concept, however, provides this in a new lifestyle concept, which can also be visualised in Europe.
In our series about sustainable hotels, we introduce the Asian serviced apartment brand Ascott today. The brand was able to achieve the target goals of its "green" programme scheduled for 2015 already one year after the introduction. Meanwhile, their guests carry reusable shopping bags instead of plastic bags.
From the news: interesting staff issues, IHG and Motel One earned a lot in the first half of the year, a HSMA survey in Germany reveals the industry's turmoil concerning rate parity, Dubai strongly profited from the Chinese, among others, in the first half of the year, and the Chinese award several countries satisfaction points...
With this issue, hospitalityInside.com starts its two-week summer break. We will be back with our next "hot" news for you on August 30. The hospitalityInside team wishes you good summer business and/or a good rest! – The full editorial …

Editorial August 2, 2013 – Trust and Facts
1.8.2013

Dear Insiders,
Why do investors and banks often trust only large international chains? What justifies the bonus enjoyed by the chains over professionally managed private operators? Private and medium-sized enterprises struggle to secure finance today. We have heard horror stories from our readers on exactly these issues. Yet we have left emotion to one side in our article today and asked private hoteliers and consultants to think about their own image and the chains…
Breakfast is meanwhile anything between coffee and croissant and huge buffet... In the resorts, a veritable breakfast competition has been long underway - and has become a question of profitability: We have found a hotel which spends 17 Euro per guest on breakfast!
The new AIFM Directive for funds entered into force in mid-July in Germany; its introduction will mean new costs for companies. Hoteliers also face additional costs from new requirements with respect to barrier-free entry.
Adrian Zecha is obviously not in a position to buy back his Amanresorts from DLF. Hyatt, Meliá and Orient-Express also publish their half-year and quarterly results, and Grandhotel Heiligendamm finally has a new owner since yesterday – and hopefully he will be able to pay the price… As a surprise, after 6 months of searching Four Seasons introduced the group's new CEO yesterday - from the real estate business.
In two months, Expo Real is back. For the hotel industry, Europe's leading trade fair for real estate and investment has become an ever stronger magnet, also thanks to the activities of HospitalityInside. We provide an update on our joint stand "World of Hospitality", on the hotel conference, on networking events and on our marketing special. Partners can still take part. – The full editorial …

Editorial July 26, 2013 – Course changes
25.7.2013

Dear Insiders,
Two days ago, HRS received the 2nd caution by the German Federal Cartel Office. This time, the best price clauses are being criticised in more detail. Indeed: Now the German competition guardians are connecting themselves with colleagues abroad. This could grow into an avalanche: Now all OTAs have come into the focus. It looks as though the rate parity will soon fall. However, HRS has not surrendered yet.
Destinations can very quickly feel when the regional marketing is not functioning well. That is why there are also several discussions at the moment between various institutions in Austria who all would like to and should market the "Beautiful, Blue Danube". Critics find fault with the "well-trodden lines" and "paper tiger" mentality.
Morocco, profiteer of the Arabian spring and the European financial crisis counts among the markets with potential. However, even more guests are also wanted here – and the mass tourism. The Moroccan Tourism Minister, Lahcen Haddad, explains.
Because the search for new talent is becoming increasingly more serious, Kempinski CEO Reto Wittwer is altering the course: He is now calling the hotel general managers to the task and stripping the central personnel department of that power: "Corporate HR brings no value".
From the news: The Oetker Collection grows further with the prestige resort, Frégate Island Private, the parent company of Trust, Worldhotels and IFH has resold the companies and with the imminent resignation of GM Friedrich Niemann from the Waldorf Astoria Berlin, Hilton's course is put to question. Dirk Iserlohe from E&P must defend himself against accusations of witness bribery in the sale of a retirement home in Cologne. – The full editorial …

Editorial July 19, 2013 – Heiligendamm and Titanic
18.7.2013

Dear Insiders,
The Heiligendamm story offers material for the big screen … A heavy silence rules among all partners after the new buyers have stood under suspicion of fraud. The core issue is to what extent the current legal registrations are valid.
This rings of gloom and doom. But ironically, the group named Titanic is riding on the wave of success. The Turkish Ayguen family by no means wishes to suffer a shipwreck with their hotel and restaurant group. In Berlin, they are currently building their German flagship, near Gendarmenmarkt. In Turkey, they have already made a name for themselves with city hotels and resorts.
Berlin: The hotels are still fighting valiantly while the tourists flock. Meanwhile, capital insiders see several dark clouds gathering in the sky: Will the Messe Berlin be able to retain the trade show business with its reconstructions? The ensuing question is only one of the shadows that have fallen over the city and its hotel oversupply.
At the moment, everyone is talking about the data spying by the USA and many do not know: The hospitality industry is one of the popular targets of data attacks because it stores most payment data in accordance with its financial systems. Today, our editorial expert and lawyer, Peter Hense, explains the consequences for Managing Directors and Boards of Directors should one be able to prove these data protection violations. – The full editorial …

Editorial July 12, 2013 – Google perspectives and others
11.7.2013

Dear Insiders,
The hottest news of the week occurred last night – once more regarding the sale of the Grand Hotel Heiligendamm: The "Ostsee Zeitung" reported that the Rostock Public Prosecutor's Office searched the business premises and offices as well as the flats of the new buyers in Berlin yesterday. The six persons accused were charged with fraud and professional deception in the purchase of the Grand Hotel Heiligendamm. According to a statement by the Public Prosecutor a "falsified financing confirmation" was presented during the purchase negotiations. As a result, the 30 million Euro deal has ruptured. What will come as the next one? We will stay closely tuned.
Google Hotel Finder has answered our professional interview questions with one to three sentences. A company could not demonstrate more drastically that it is not interested in communication with the hotel industry. And not at all in transparency.
We could not be discouraged by this and asked two online experts, Bruno Wolf and Marco Nussbaum, to comment on the flimsy answers. Then the world looks a little different. Moreover, we inquired with an eCommerce specialist: He installed a Google Hotel Finder calculator half a year ago. His summary: At the moment, AdWords is the clearer and more favourable booking model in the Google world.
Transparency also is not necessarily the strength of the Turkish hotel market; I noticed this in the many questions during the latest investment conference in Istanbul. I asked two well-known experts in the Turkish market to provide us with "tutoring" in the matter of investments, yields and markets.
A London-based consulting company has conducted a study of the Serviced Apartment market in Europe. The EU is directly intervening in travel package rights; hotel transactions in Germany have been tracked for the first half of the year; with Travelfruits, a club for luxury travelling, making a name for itself; and what has personally surprised me the most in the weekly flood of news is the fact that German citizens feel that the media is especially corrupt. – The full editorial …

Editorial July 5, 2013 – Big Data & other large problems
4.7.2013

Dear Insiders,
"Big Data" swarms around us every second; but, how does one deal with it? The hotel industry does not know how to yet. Data Specialist Michael Toedt reckons: The position of the marketing manager must be re-evaluated. Or employ one's own data specialist? Once more, this discussion over data management shows that the hotel of the future will only seemingly have something to do with the hospitality.
The rapid developments in IT have made the concepts of the young, fresh Dormero hotels possible in the first place, but now the paths of developer Aleksej Leunov and the Woehrl family have separated. Apparently there are discrepancies; the new generation is taking over.
Already knew this? In 2012, 40 percent of the Swiss 5-star hotels belonged to foreign investors. What families had frequently built up over generations has moved into the international real estate business.
Austria in festival fever: The large festivals bring in millions, but the small pop festivals and rural events often fill the beds without anyone giving them a thank you or the millions in revenue being made public. In any event, this field involves a great deal of revenue potential for hotels.
The infinite history of the Grand Hotel Heiligendamm goes on; there are still no regulated conditions. Consulting and broker companies report that hotel real estate transactions in EMEA and Austria in the first half-year were very active. Also, investors are in a good mood.
There are not only problems, but also positives. A good week!

Editorial June 28, 2013 - Between emotion and denunciation
27.6.2013

Dear Insiders,
After ibis and Pullman, Accor is now also cleaning its large pool of non-standardised midscale hotels, Mercure. The new images indeed promise a new familiar experience, yet Mercure's European Chief Volkmar Pfaff is unable to speak of the costs for the franchisee…
Accor will break with the purely functional anonymous hotel and moves with the flow and the general wave of emotion. The "Freitagshappen" which Nassauer Hof Wiesbaden and hospitalityInside held a week ago in Wiesbaden for the third time, picked up on this theme indirectly. A small, exclusive circle of participants discussed how much anonymity the hotel industry can bear.
In China, anonymity is not guaranteed. Quite the opposite: The new President of the People's Republic has moved against luxury indulgence and corruption - and with his new provisions promotes denunciation by the people. Luxury hotels will suffer here just like the smallest florist.
In terms of sustainability, Swissôtel trusts in loyal cooperation with its staff, and that worldwide. Intensive and individual training sessions are intended to prevent the concept being applied in a simple "copy-paste" manner in different countries.
Our press releases include interesting personalia and information on the new pan-European performance report.
And last but not least: The registration period for the joint stand "World of Hospitality" at Expo Real in October officially ends today. Global chains - Choice, LFPI, Kempinski, Marriott, Wyndham - and other hospitality players give this year's stand a new class. The stand itself remains flexible in its planning: Anyone wishing to jump on board "last minute", should get in touch as soon as possible. For details see HOME. – The full editorial …

 

Editorial 21.6.2013 - Luxury & Luxury, Emotions & Explanations
20.6.2013

Dear Insiders,
Today, luxury hotels face competition from areas which no longer have anything to do with the classic accommodation industry. Here too, the internet is the motor behind such changes. Macy Marvel presents a few examples.
Again and again, the questions arises: What is luxury? The experience from day-to-day travel reveals that there's luxury and there‘s luxury. For this reason, we have asked Peninsula Hotels and Waldorf Astoria the same concrete questions in order to find out what they offer and how they set themselves apart from the competition. Who performed better in this comparison? Read for yourself.
Convincing the guest that simple is luxuriant is a challenge for the Austrians. They feel that nature and simple food represent huge potential for international marketing, at the same time, they must explain why more must be spent for the "less is more" motto. Observations from the fringes of the new trade fair ATBexperience.
REITs are now not to be treated like funds. This topic is sober but valuable knowledge for all those active in investment. Beatrix Boutonnet explains the recently published BaFin guidance.
And among this week's news: Marriott revitalises its Marriott brand, the Austrian Verkehrsbuero Group is touching up its brands and creating the "Good Morning Master" as well as the Cypriot Thanos Hotels report how they're doing after the banking crisis. - The full editorial ...

 

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