Editorial

Editorial

Everybody's after truffles
10.7.2014

Dear Insiders,
Even the quarter final match couldn't keep guests away from attending a talkround on luxury last Friday in the Nassauer Hof Wiesbaden. Once per year, hospitalityInside invites an exclusive circle to open exchange of ideas. Football played on the TV in the background, in the foreground, thoughts were focussed on "finding truffles" in the high-end segment.
Our conversations with the directors of the Dolder Grand and Baur au Lac in Zurich sat well with this. Mark Jacob and Wilhelm Luxem reported on figures, renovation - still sufficient potential to be able to stand apart from the new 5-star competitors on the market.
Another man will leave the world of luxury: Rupert Simoner, Senior Vice President Europe for Kempinski Hotels and GM of the Kempinski Grand Hotel des Bains in St. Moritz will succeed CEO Dr Andreas Karsten of Vienna International. One thing is odd though: Karsten announced two weeks ago that he was leaving for "private reasons", though he continues to work for VI as a contracted consultant for financing and projects – as well as Managing Director for the VI's German subsidiaries ... now, is he in or out?
Development specialists are always in demand, the hotel real estate market is in a constant state of flux after all, as the talkround of PKF hotelexperts in Munich revealed. At present, the Chinese, the restaurant business and secondary markets are shaking the hotel real estate scene in Germany.
And in the news this week: The biggest Czech player CPI has bought the boutique hotel group Mamaison and therefore ventures a step into Eastern European neighbouring countries. In Austria, the High Court has provided a severe knock-back for airbnb & Co.: Residential real estate may no longer by rented out as holiday home.
You can still secure a place on the joint stand "World of Hospitality" at the Expo Real in October. There are still three months until Europe's leading trade fair for real estate and investments gets underway and the hospitality sector's presence is growing. The joint stand already sees a new participant record today, though still has space for further companies. All users will find the names of co-exhibitors on our Page 1. – The full editorial …

Solutions with art, music and literature
3.7.2014

Dear Insiders,
Dr Andreas Karsten, CEO of Vienna International, spoke of an initial public offering and a hyper-dynamic expansion during an interview with us just two weeks ago. On Wednesday, the company announced that the CEO is leaving – for "private reasons". But it strikes me that the "for private reasons" wording has very frequently been the case with such news recently …
Florian Werner of the Arlberg Hospiz Hotel in Austria will not let off the hook overnight. The luxury hotelier has found his own strategy for survival in the mountains: The 87 room-hotel in St. Christoph on Arlberg/Austria is now building the highest art and concert hall in Europe 1,800 metres above sea-level! The individual hotelier wangled the interim financing for the 27 million Euro project at the last minute.
From art to music and literature: The young lifestyle hotels are making use of streams, the web and the cloud to connect with their hip guests through music. Ruby, prizeotel, Rilano and Starwood Hotels speak about the right music mix and their own radio stations.
Meanwhile in Austria, some resorts are utilising literary readings as a marketing tool and are inspiring a loyal guest crowd with this. Our author, Fred Fettner, introduces the different strategies surrounding books.
The sober subject of franchise is less buoyant, but very profound: Guest Author Christian Zerr describes the legal scenarios in crisis situations in the 3rd part of his series today.
Annoyingly: In France, the tourist taxes are to be increased to an unbelievable 8 Euro per night. Katara Hospitality has once again been active as an investor in Europe, Kempinski shrinks and grows, TUI and TUI Travel will merge. And there is news from the court about the funds initator Anno August Jagdfeld and the Hotel Adlon Berlin. This and more in today's issue of our magazine.
On Page 1: The successful "loop" luxury travel trade fair has already announced its dates for 2015 and is already accepting registrations. hospitalityInside.com will once again support the event as a media partner. – The full editorial …

Open, expand, bust
26.6.2014

Dear Insiders,
The first off-shoot of a promising "lean luxury" concept officially opened in Vienna this week. Ruby is the name. With this, creator Michael Struck takes his budget concept one step further in German-speaking Europe.
The brand complex with an H2 and a Ramada hotel with a total of 536 rooms at Munich Messe is in full operation now. The initial key figures are good. But operator Hospitality Alliance had more news on the new strategy last Friday: Alexander Fitz also announced a new full service-hotel brand, and another 350-room hotel for Munich and more about its own brands.
Warsaw still has lots of space for lots of hotels. Ambitious developers find the Polish market has a few peculiarities of its own though and banks are conservative - the second instalment from the 1st "Spotlight Hotel Investment Poland" conference. This article is accessible to all readers on our Page 1 – hospitalityInside was media partner for this event.
Our two legal articles today are reserved for subscribers: In the first, Christian Zerr explains the options for franchisors in Part 2 of his series on franchise agreements in Germany. In the second, our hospitalityInside expert for online law, Peter Hense, draws hoteliers' attention to a new law which, from June 13, has set out exact information requirements for online bookings and web shops. The devil is in the detail!
In the Méridien Brussels, things are playing out in a similar way to Davos recently. There too the leaseholder is insolvent. In the U.S., HotelTonight just presented its App as the new "door opener" to hotels and their check-in procedures, Oracle is to acquire Micros, Mélia's brand Sol has created new sub-brands. And more in our news. – The full editorial …

Surprise eggs
19.6.2014

Dear Insiders,
The "golden egg" of Davos, the InterContinental Hotel, has become a "surprise egg" since the lessee company filed for bankruptcy two weeks ago. After many insider talks, a bizarre bankruptcy puzzle has emerged. Credit Suisse's funds manager Lucas Meier resigned from his post this week. However, today's article will certainly not be the end of the story.
For Vienna International, the story has just begun: the Austrian hotel group wants to go public. After three years in office, CEO Dr. Andreas Karsten is bursting with self-confidence and pushing the company in all different directions. VI not only wants to own, operate and consult but also appear as franchisee for large international brands.
Against this backdrop, our article "Give and take" sounds rather modest: Dr. Christian Zerr, lawyer at Hogan Lovells, starts a three-part series about franchising today, which commences with the legal framework in Germany and the interests of the contracting parties in the franchise relationship. As management agreements are not very successful in Germany, operators are increasingly pushing franchise agreements. Will the keen interest remain in light of the legal framework?
Change of mood: did you know that wine tastes different when listening to classical music? At a wine degustation, two different worlds of indulgence encountered each other. Hotels are also able to offer their guests something special this way.
Everything is about enjoyment concerning the vouchers offered by a new online portal: however, no one wants anything to do with dubious discount portals. The operator GHM had doubts about the hostile hotel takeover of the Setai Miami in 2012, filed a suit and won against Lehman. Valamar will become the largest hotel group in Croatia after the fusion of several companies. US-based Interstate's appetite for Europe is growing. The global internet administrative organisation ICANN has swallowed a very large chunk: it awarded the hotel industry with the internet domain .hotel this week!
We are able to provide positive news for Europe's leading property and investment trade fair Expo Real in October: for the "World of Hospitality", 18 businesses have confirmed their participation so far; among them new exhibitors such as Azimut Hotels, Letomotel as well as Horwath HTL, and the Falkensteiner Michaeler Tourism Group shows its colours for the first time at the joint stand in Hall C2. Those who want to be included in the official trade show catalogue as co-exhibitors will have to hurry – the application deadline ends in two weeks. – The full editorial …

The balls are rolling - in Brazil, Qatar and Warsaw
12.6.2014

Dear Insiders,
Kick-off in Brazil! Campo Bahia, the base camp of the German national football team was barely finished for the opening of the FIFA World Cup 2014. The hotel consultant and operator Stephan Gerhard talks about single kitchen pieces, water in the rooms, headstrong employees and traffic chaos.
And once more the World Cup – 2022 in Qatar! It was the main reason for a 20-minute interview with Qatar's head of tourism, Issa Al-Mohannadi – enough to draw some core statements from him and get a bit more of a feel for the Arabian mentality. They are drawing up plans on paper in a professional way, as shown by their tourism strategy 2030. The kick-off in Doha is eight years away – team spirit is what is needed. And that is the actual challenge for the super rich emirate, whose managers have surely never met any hooligans and whose traditional country will be churned up by diggers and picked to pieces by the media ...
Diggers and cranes currently dominate the cityscape of Warsaw. Here, the 1st "Spotlight Hotel Investment Poland" hotel conference took place, attracting nameable investors and operators and thus demonstrating: Poland wants more! Local hoteliers partly criticized a politician in attendance. An initial summary of the status quo on Poland's hotel market can be found on our first page accessible to every user. hospitalityInside acted as a media partner at this event.
Speaking of partners, HR heads should consider themselves partners of their future employees and try to understand their wishes – paying a visit to blogs and social media once in a while. This is where employees relentlessly evaluate their companies. We will present you with tips from two longstanding hotel experts in book format.
And today's news: a report on franchising in Europe, Schoerghuber's hotel losses, Jumeirah's mega cash injection and poor PR performance, and more. – The full editorial …

Interchangeable, innovative, skandalous
5.6.2014

Dear Insiders,
The chains are becoming increasingly interchangeable – yet at the same time are increasingly falling back on private hotels. Now, Hilton has also launched a "soft brand". Curio does indeed pique one's interest, in particular because the very same interchangeable hotels would fit into this pool as into Marriott's Autograph Collection, Accor's MGallery or into Rezidor's new Quorvus Collection. One can only say to owners of individual hotels here: Accurately compare the fees and check system delivery!
Conchita Wurst, the man with a beard in a dress, recently won the Eurovision Song Contest. As a result, Eurovision will be hosted by Austria next year. Hotel rates are already going up.
The Austrians are very sensitive and progressive when it comes to tourist events and trends. Accordingly, a traditional cure hotel shows how to respond flexibly to changes in the market with a vegan fasting offer. This has brought the industry together with medics and researchers. Their findings have provided many ideas for new concepts in health tourism.
In the second instalment of our Arabia article today, Hilton, Carlson Rezidor and IHG report on their plans for expansion - above all in Saudi Arabia.
The InterConti Davos is insolvent. Only six months after its opening. Its plight is due to the leaseholder and perhaps also a few other parties. Who got their sums wrong? As I see it, this is a case of unbelievable unprofessionalism. This is far from Spain's hoteliers' wishes, they want to be more professional. They demand special regulation for the industry, in particular in view of taxation and costs. In Austria, Red Bull is visible as hotel industry patron, whilst tourist boards all but directly impede financially strong visitors from Scandinavia.
Results from the 2nd "Investment BAROMETER" by hospitalityInside.com and Union Investment are now available. Return considerations are the main driver of investment in hotels at the moment, ahead of diversification and security. The overall sentiment on the hotel real estate market remained good in the 1st quarter. The general trend is described on our Page 1 under "Market Check", subscribers can already read more in the magazine. – The full editorial …

Of milk & honey, profit & frustration
29.5.2014

Dear Insiders,
One side of Dubai that always excited me was how it always set trends and realised brave projects, for instance with spectacular architecture. From the flood of information I receive as a journalist, this time it was the futuristic plans for the new ME by Meliá that caught my attention.
From the perspective of hotel developers, the world appears considerably more sober. Dubai has meanwhile been inundated with hotels, now they have to push new regions: Their favourite country in the Middle East is currently Saudi Arabia. The Kingdom, which is difficult to access for non-Muslims, markets itself as the land of milk and honey... Dania Saadi asked regional heads of large hotel chains where they will empty their horns of plenty - and why.
Participation certificates: Do SMEs have a real chance of accessing capital in this way as an alternative to bank loans? Beatrix Boutonnet is sceptical. She provides a comprehensive explanation of the pros and cons of these little "preference shares".
In France, the government has waded into the court case against booking.com.; the Chinese have increased their stake in NH through Italy; Accor CEO Bazin comments on the mega purchase of 97 hotels and the Austrian spa specialist Schletterer is insolvent. And we comment on the rumours surrounding the IHG takeover in another way. – The full editorial …

MICE, Italy and climate: Highs and lows
22.5.2014

Dear Insiders,
The MICE trade fair IMEX again revealed the analysis of event business: Germany maintains its position as MICE leader in Europe and also benefits from much more international business flowing into the country.
In Italy, the hotel industry is characterised by frustration. President of Federalberghi, Bernabò Bocca, gave a speech at the association's general meeting. From this, the entire misery of the Italian hotel industry was clear. Nevertheless, there is hope: Overnight stays were up for the first time in the first quarter of 2014.
In our series on sustainability, the Spanish Meliá Hotels explains this week what it is doing in each of its individual brands as well as at corporate level in various committees.
In keeping with sustainability, this week's edition also contains an article on climate change which will change tourism. "We need a new holiday!" one expert claims.
Swiss citizens also decided last Sunday that Switzerland doesn't need a minimum wage. This lifted a huge worry from the hotel industry's shoulders. The Football World Cup in Brazil moves ever closer. HVS has analysed the hotel market in the land of the Sugar Loaf. In Austria, mass tourism weighs on added value, and a new hotel collection has been created in a joint venture with the Global Hotel Alliance and others.
The first "Spotlight Hotel Investment Poland" also moves closer. The new investment conference, for which hospitalityInside.com is media partner, had some very prominent speakers for its guests, as you will read on our front page. – The full editorial…

Dubai's 2nd boom, IPOs and mountain idyll
15.5.2014

Dear Insiders,
More than a decade ago, Emirates managers told me that Dubai would be redirecting worldwide tourist flows. This is coming true. Dubai Airport's passenger figures surpass those of London-Heathrow, and soon, Dubai will take over the title of most frequently visited city of the world from London.
For the eighth time in a row, I was on my annual visit to Dubai, and last week's images resemble those of 2007/2008. The second boom has arrived. But is it good or bad? The fact of the matter is, the Emirate is realizing its vision thanks to billions of dollars, extreme discipline, and perseverance. No other region in the world is able to manage this at the moment, which should be acknowledged, despite all skepticism. Dubai has become purely multi-cultural, a bustling mixture of people from all over the world and no longer a hardware potpourri consisting of glass towers and malls…
Today, my colleague Dania Saadi from Dubai and I are reporting on self-confident Arabian statements, the latest trends in the real estate sector, giant new projects and concrete new hotels. Expo 2020 has triggered an unimaginable boost. And that is why now, in May 2014, there is no criticism at all regarding this new boom, just like in 2007.
The fact that investing in hotels is considered sexy is documented by the most recent and upcoming IPOs of international hotel groups. However, share values often show great volatility. We report about the IPOs of La Quinta and Playa Hotels, Dalata, Prince Hotels, Scandic, and Gruppo Statuto.
Change of subject – change of pace: the new mountain resort For Friends lures us into the mountains of Tyrol. Ukrainian capital, however, demands 5 stars including gourmet cuisine in this idyllic solitude. Will this concept work out?
In addition, we have various contributions on TripAdvisor and Choice, booking.com, quarterly results of Hilton, Meliá, Motel One, Preferred, and the Grand Resort Bad Ragaz – and more!
An editorial note: Some readers did not receive last Friday's newsletter including the headlines of last week's issue. In the meantime, we suspect the reason: we used common terms for same-sex partners in our article on Axel Hotels and several firewalls prevented the forwarding of the newsletter. – The full editorial…

Flying hotel rooms, unusual concepts
8.5.2014

Dear Insiders,
Since the "Arabian Travel Market" in Dubai this week, there are now hotel rooms above the clouds. Maria Puetz-Willems admired the suites and apartments of Etihad Airways on site. As hoteliers, you too will be amazed at the meticulous detail of the hotel atmosphere and services offered in the air.
This edition provides an initial summary of the extremely dynamic tourism fair as well as further news from the Middle East. More from Dubai and from the ATM then next week.
Switzerland was also an issue in Dubai - Arabian investors love the Alpine country. A scientific analysis of the 5-star investors in Switzerland shows their share is growing. The study with its many tables, names, figures and background detail is, however, only available in Germany.
Also attractive for investors is the Spanish hotel brand Axel geared towards the gay market. In an interview given to our Spanish correspondent Beatriz de Lucas, Axel founder Juan P. Juliá describes the key characteristics of his unusual group.
Improved operational expertise by investors is a reason for one trend identified by associations such as Worldhotels and Preferred: More chain hotels are switching to consortia. One of their explanations for this is that investors are focusing more than ever on the ROI on their hotel real estate...
Also this week: Students in Schwerin describe culinary destinations in Germany, hotel groups including IHG, Marriott, Steigenberger and Victoria-Jungfrau Collection publish their quarterly or annual results, HRS surprises with a change to their listings and Adrian Zecha resigns. The internationally highly-regards pioneer changed the luxury world with Amanresorts. After the sale of Aman Group, new managers are now in control. – The full editorial …

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