Editorial

Dear Insiders,
Investors watch Hilton's planned IPO like hawks. Our author, Macy Marvel, sees the Hilton public offering as a signal for a new capitalization wave after Lehman and expects more IPOs and mergers such as, for instance, Fairmont/Four Seasons.
The confidence of the already confident Hilton CEO Chris Nassetta will strengthen the expected stock market proceeds even further. The new Accor CEO, Sébastien Bazin, was also super positive on the presentation of his new strategy, as reported last week. One statement that stood out was: "I am a manager, but this group belongs to the shareholders, not to the franchisees, not the unions, not to the staff. Shareholders are the one who take risks and they need to be compensated for that."
One reader wrote afterwards: "Who says that shareholders are the only ones to bear the risk and in the same breath points at franchisees disqualifies completely as franchisor!"
Business psychologist Leopold Hueffer provides consolation of a special kind here. He says clearly: Finance experts don't understand the hotel business! In his book, he describes why top jobs are filled with top flops. Baerbel Schwertfeger asked him for an assessment of the "wrong" hospitality CEO. Top stuff to read for top managers and their human resources specialists!
We also detect a lot of hot air about Facebook this week. We asked a dozen hotel groups whether and how many ideas they have gained from the super network. The result: Frustration. Only two - Lindner and Vienna International - managed to provide more precise answers.
Paulo Salvador, Executive Vice President EMEA of Worldhotels told us that the marketing consortium will launch a news loyalty programme. At Scandic Hotels, all guests can now check out digitally. And in Germany, there's a new judgement on the taxation of breakfast. More in our news.
Have you already registered for the new "hospitalityINSIDE Investment BAROMETER"? In collaboration with Union Investment, we measure sentiment every quarter. First register and you'll be
The preparations for ITB 2014 are making solid headway: The topics for the "ITB Hospitality Day" are roughly formulated and also more than half of the co-exhibitor spaces in the joint stand are already firmly booked. The first deadline for co-exhibiting companies in our "World of Hospitality" is December 15, 2013. Those who register up to this date will definitely still be incorporated into the printed trade show catalogue. A presence in the "ITB Virtual Market Place" can still be secured with a later reservation. If you are interested in participation in the joint stand or have questions, please contact our trade show team.   sent the questionnaire. Anyone can participate. - The full editorial …

Dear Insiders,
Accor's new CEO Sébastien Bazin declaring the chain's "asset light" strategy null and void on Wednesday. But didn't he accept the strategy as a representative of the main shareholder Colony Capital in the last years, and didn't he fire the last CEO Denis Hennequin because of the strategy's slow realisation? Hennequin's brand restructuring is also history...
Accor seems to be on a sightseeing bus tour, hopping on and off. I watched Bazin's presentation at Accor's "Investors Day" live in the internet and observed a charming Frenchman who first insulted and put down his own company only to build it up again afterwards with encouraging words. Carrot and stick – is this the new strategy at Accor?
Concerning Moxy, the budget brand of Marriott and Inter Hospitality, people also have to ask themselves if there is a powerful strategy. The project list lags far behind the pre-announced plans. This week, industry insiders told me that there are apparently discrepancies with the Scandinavian lease partner Nordic Hospitality, which may not be very familiar with the Central European market. There seems to be friction in the triangle of investor, leaseholder and franchisor. Of course, the Moxy managers are not saying anything on this matter, but finally reveal more details about the construction: the pre-fabricated modules will remain. At once, insiders raise the question of noise protection... Moxy - go live! Then we will be able to test the concept ourselves!
Currently Marriott is celebrating its 25 years of presence in Germany – an occasion for a short brand update with Gitta Brueckmann, Area Vice President Central Europe, independently of the Moxy story.
Relais & Châteaux has a new president too, as reported - and 85 new members: villas and private homes.
The senate in Berlin passed a fairly weak resolution against the grey market of holiday apartments; in France, more signs of insolvencies in the building sector are appearing; the budget chain Motel One will promote its young talents on its own campus; and the first key words about what is new at ITB 2014.
NEW: Today, hospitalityInside officially starts its cooperation with Union Investment. You are invited to participate in the new Investment BAROMETER. As soon as you are registered, you will receive an eMail with a link to the current survey once every quarter. This way, you will help to draw up an overall picture of the mood within the industry.
The result will be published as a common index on hospitalityInside's website and it will be visible for every user. As a participant, you will receive survey details via eMail. Of course, the participation does not cost extra. Your answers will be anonymised.
Since you receive this newsletter, you are already registered at hospitalityInside. When you click on this link you will be forwarded to the login page. Please login first with your access data and then register for the Investment BAROMETER.
With the start of the online barometer, hospitalityInside has moved to a newer and faster web server. The loading times of the pages should be shorter now. – The full editorial …

Dear Insiders,
Hotel operators and developers evaluate markets and locations in Germany quite differently. This was a result of the most recent study of ZIA/German Property Federation and Deloitte, which is only based on the information provided by 26 directors and CEOs. A clever PR move by the ZIA. Nevertheless, the individual aspects are interesting.
Providers of serviced apartments see their perspective very positively. Businesses like Accor/Adagio, Adina, Citadines, Derag or Marriott/Residence Inn, which have one or several properties in Germany, operate well and do not have to fear any competition in the near future. Therefore, in the pleasant atmosphere of the 4th "Serviced Apartment Camp" in Bonn last week the chains talked amiably for three hours and promised to define the lowest common denominator.
Hartwig Bohne, our new editorial expert for Human Resources, provided a summary of the discussion about minimum wages at the 4th "Hospitality Symposium" at Heilbronn University. There, the majority was in favour of 8.50 euros per hour. The news on the subject of the newest "wages mirror" in the industry is appropriate here, but in a negative context of course.
Relais & Châteaux elected a new President, Union Investment is looking for smaller hotels for its Germany fund, and Ecole hotelière de Lausanne took over 75 percent of the stock capital of the Swiss School of Tourism and Hospitality yesterday. In doing so, the Schoerghuber family from Munich parted with one of the last remains of the old hotel operating group Arabella/ArabellaStarwood.
Finally, we are promoting ourselves today and letting pictures tell a story in a video. Impressions from the trade show, opinions of readers, and statements about the future development. You'll find the video about the "hospitalityInside story" on page 1. Just activate it via Start!
Last but not least, an announcement: next week, we are starting a cooperation with the Union Investment, the so-called "hospitalityINSIDE Investment BAROMETER" – and everybody can participate. At the beginning of next week, our registered users will obtain a personal invitation to participate. Those who are not yet registered will then be able to register for the participation in the barometer on our website. - The full editorial …

Dear Insiders,
Asian Peninsula Hotels currently count only nine properties, yet wherever they announce expansion plans, Four Seasons, Mandarin Oriental, Ritz-Carlton & Co. sit up and take note. They know this small chain with its extremely high quality standards and feel its strength every day. Peninsula is considered to be one of the most innovative luxury hotel chains of all. It was them who introduced touch panels in guest rooms and who provided the nail varnish dryer for their female guests. Now, Paris awaits Peninsula. They have announced the opening date for their first European hotel: August 1, 2014.
COO Peter Borer, who has been with Peninsula for 32 years, is already thinking further though - about the second European hotel in London... I met Mr Borer, originally from Switzerland, and his new GM for the Peninsula Paris, in Munich this week and discovered some interesting details on the hotels as well as the extreme innovative pressure the company voluntarily takes on.
At the same time, my colleague Baerbel Schwertfeger was underway in Hong Kong. There, she took a look at the hotel group's innovation workshop. Peninsula is the only hotel chain in the world with its own research and technology department. She felt as if she'd walked into a James Bond film with 25 technical tinkerers...
Falkensteiner Hotels is also working on the right "road map" ... After a long quiet period, the hotel group again spoke publically about its strategy: It now targets Germany and Italy. It also plans on introducing a medical spa concept. No less interesting this week is the contribution from our Labour Lawyer Joachim Jungbluth, who comments on the judgement from the German Federal Labour Court on overtime.
Starwood Hotels has also presented the new lobby design for its Le Méridien Hotels and the InterCity Berlin opened as the new flagship hotel for the Steigenberger Group's brand. In Austria, HRS attempts to put pressure on hoteliers and last but not least, conference hotels and conference centres are finally also beginning to recover in the US, and the Cornell Hotel Society announced its next meetings for the German and EMEA Chapter. – The full editorial…

Dear Insiders,
After we explored why there is an increasing number of CEOs in the hotel industry that are coming from the financial world some weeks ago, we asked ourselves which management experience is more likely to lead to the career goal: The "internal" or "external" boss, the "novice" or the "old hand"? Psychology Professor Uwe Peter Kanning reports on who has the better potential.
British psychologist Kevin Dutton, also author of the book "The Wisdom of Psychopaths" rounds off this subject with a few statements. Dutton about these species: "They are fearless, charming and without scruple." Hopefully you do not recognise this in your boss!
A look to Northern Europe: The Irish hotel industry has entirely felt the results of the Lehman crash. Ireland has lost 2,500 hotel rooms since 2009. Now, however, the industry is once again in an upward trend. The current figures.
At the 6th ITB Asia in Singapore countries from all continents have clearly increased their exhibition space this year since Asia remains a powerhouse. However: It is no longer concentrating everything on China and India. And: The tourist masses travel low cost.
There are many indicators of a positive tourism and hotel development: According to a study, most hotel rates worldwide will rise in 2014; in EMEA, the hotel real estate transactions have significantly increased in the 3rd quarter; Louvre Hotels just sold off 40 hotels, and the number of smartphone buyers has officially exploded as well as their desire to shop online. In Switzerland, there are the continual hotel re-openings and smaller takeovers; in Austria, the cost pressures are rising for the hoteliers, but there is no price dumping. This and more in our colourful news today! – The full editorial …

Dear Insiders,
98 days remaining until Sochi … The Olympic Winter Olympics in Russia will supposedly cost more than 37 billion Euro – according to media reports, the Russian opposition is even speaking of up to 50 billion Euro. Fred Fettner has the mega figures broken down on the engagement of the Austrians, Germans and Swiss in Sochi: They will also pay millions for their representative base by the Black Sea or in the middle of the ski centre! Unanimous enthusiasm over these expensive games does not rule with the tourism professionals and sponsors from any of the German-speaking countries. A somewhat different view of Sochi.
At first glance, private equity as a financing alternative to classic banks also sounds good. Nevertheless, several differences can be discovered with a second look: Above all, the yield expectations rise. Private and institutional investors have their own vision of what worthwhile hotel real estate is. A summary of an Expo Real panel.
A topic in the panorama of business travel: In Austria, the Verkehrsbuero Group takes a closer look to this business field. It has developed an online tool for SME through which flights and hotels can be easily booked – and settles accounts with the companies as a lump amount. An interesting development whose path we will certainly pursue …
Our Social Media columnist, hotelier Marco Nussbaum, describes today how he installed his prizeotel in 360-degree pictures within Google; from Pisa, the ITB "World Monitor" has issued current figures on tourism development; TUI and Google have launched a survey together; and now the suppliers of private lodgings want to create a positive mood in the market with "one voice".
Last but not least: HospitalityInside is already in its trade show preparations for 2014 – and, among other things, is planning "World of Hospitality" joint stand for ITB Berlin. If you are interested in a partnership as a co-exhibitor in the Hotel Hall 9, please read the text on our homepage or contact us directly. - The full editorial ...

Dear Insiders,
Russia's largest national hotel chain, Azimut, is positioned anew, also in the German-speaking realm. Moreover and as of last week, Azimut has two German managers at the top: Walter Neumann and Sebastian Kraemer. They should bring the group to an internationally competitive level and there will additionally be a new hotel track alongside Azimut.
The ancient Congress of Vienna does not dance any longer. Austrian MICE managers have determined: Convention organisers today must not only pay attention to costs, the tourist environment of the event - the incentive sweetener - has become a deficiency rather than a plus. An interesting trend.
How does luxury define itself anew? Much of what was to be heard at the second "Luxperience" trade show in Sydney sounds close. It is a global confirmation of a trend that knows no borders, but lives on extremes - between nature and nirvana, exoticism and absolute ecstasy. From these emotional subjects there blossoms a new branch of business within the high-end.
HRS has concluded the squeeze out with hotel.de; Accor's individual brand pool MGallery strengthens its growth efforts in Europe; two new studies deal with the travel and mobility of the future; and now, the German serviced apartments scene has also distributed its first awards.
Last but not least: Today on our YouTube channel "The Hospitality TV", we have compiled photos of our Expo Real networking event "BRICKS & BRAINS". It took place for the first time in the new lounge of the trade show management Munich and we thank the management for this appreciation of the hospitality industry, just the same as our sponsors and guests! You can find the link to it within the corresponding text on our homepage. – The full editorial …

Dear Insiders,
The British budget hotel chain Premier Inn intends to have a higher quality presence in Germany than in its domestic market. That fact that the Whitbread subsidiary can always function as end investor though could be a considerable advantage in the very cautious German market. "We are buying!" is for me then the headline of the day.
Competition is hotting up. This was also made clear during Accor's extra press conference during the Expo Real. Accor aimed to defy the unstoppable announcement marathon of other players and provided some full performance data. Nevertheless, budget rival Motel One has today again made a special announcement: In 2016, the Motel One New York will open!
Since the big franchise companies were present at this year's Expo Real joint stand "World of Hospitality", there was also a franchise panel at the Hotel Conference. Host Christian Walter identified some interesting differences in the franchise models pursued by Accor, Choice, IHG, Marriott and Wyndham.
An encouraging keynote speech was given by Simon Redman from Invesco Real Estate London at the hotel conference: He praised the hotel industry and described its appeal from the perspective of an institutional investor. His keynote in a slightly abridged form.
You can also see and listen to some of the topics today on our YouTube channel "The hospitalityTV". There, pairs of exhibitors at the joint stand "World of Hospitality" have their say on what motivates them on the German investment market, on market displacement in budget, franchising, architecture and chains... More on this on our homepage.
And more on the international hotel market inside the magazine. – The full editorial…

Dear Insiders,
A positive mood, well-prepared contacts, many deals and a range of awards ... The Expo Real 2013 was buzzing this week. Funds are gaining pace and even among the banks there are a few new players. Once again, there is traction on all sides. This is also true for the hotel industry in which one market attracts investors and hotel operators like no other: Germany.
"Wow, finally a statement for our industry in the property market," one visitor at "World of Hospitality" said as he saw the 200 sq.m. stand in hall C2. Of course, as organiser of the stand, hospitalityInside was very pleased with this, though other statements from co-exhibitors show that the hotel industry really has been established in the minds of other visitors thanks to the successful joint stand. The names of the mega chains at the stand gave a large boost to this new awareness and the entire sector benefits as a result.
Read the first summary today and more detailed reports and trade fair news will follow in subsequent issues. We will also report on the hotel conference "Hospitality Industry Dialogue". The event attracted around 850 visitors. The most popular panels were those on Opportunity Funds, Private Equity & Institutional Investors and the Banks and CEO Panel.
But there are other topics today too: In Chamonix, France, tourism experts recently met to discuss marketing of the Alps. A very sensible approach, but our correspondent Fred Fettner shows how difficult it is to put these good intentions into practice. And our legal expert, employment lawyer Joachim Jungbluth, explains a recent decision from the Federal Labour Court on written warnings.
And Treugast presents its "Investment Ranking" for Germany and Austria, Premier Inn announced a massive expansion drive in Germany, citizenM has found a partner for the expansion in Asia, and the French consider levying a tax on OTAs. – The full editorial …

Dear Insiders,
Expo Real, starting on Monday in Munich, has some news in store and will provide for interesting talks: Wyndham shows its colours for the first time after its deal with Grand City – this week, the two groups announced the re-branding of 17 additional hotels. Now, Ruby Hotels is coming out of the woods as well, a new brand of Michael Struck who wants to elevate Budget Design one step up to "Lean Luxury". A budget evolution seems to be looming on the horizon.
Nearly unnoticed by most people, the large chains have tightened their conditions for loyalty programmes – a consequence from the crisis. Macy Marvel, Economy Professor at the Ecôle hôtelière de Lausanne, analysed these programmes in detail and collected many figures about the mega chains and their activities in this segment. He asks the question: are these programmes actually more than a necessary evil?
Ritz-Carlton appreciates Europe, but is expanding elsewhere. At least, this was the impression Susanne Stauss had after a conversation with Europe's Head Walia Sandeep. Apart from that, the luxury subsidiary of Marriott seems to be meandering along...
In Vienna, a new boutique hotel opened at a top location but does not want to affiliate with any consortium. Generally speaking, consortia are growing further as revealed by a ranking. A Spanish consortium has now become the largest in the world.
Last week, our India correspondent Hoihnu Hauzel talked about the important infrastructure status for the hotel industry. Yesterday, government approved and signed the status file! So, realisation can start soon.
We will meet some of you at Expo Real; and those, who are unable to visit Europe's largest property and investment trade show can browse in our new hospitalityInside SPECIAL EXPO REAL online, which we present to all users on page 1 today. Take a look at the eMagazine and you will see who is present from the hospitality industry. Trade fair visitors are invited to pick up a printed copy of the glossy magazine at the joint stand "World of Hospitality", at the hotel conference or at the stands of our partners. For the first time, the special is also available in all hotels of our trade fair partners in Munich.
Until next Friday with the most important news and reactions from the Expo Real... – The full editorial …