Editorial
Dear Insiders,
In the context of the ITB, there are always opportunities for good talks: last Wednesday, we talked to Sir Rocco Forte, who is opening two new hotels in May and terms the hotel in Munich as his most successful in Germany. The talks with Sofitel were highly interesting too - first details about the future concept were revealed. In the meantime, Sofitel has become an independent unit in the Accor group; however, the interview with Marc Hildebrand, CEO Accor Germany, is opportune concerning point of time and subject. Yesterday we met with him and he gave an insight into his management style and Accor's way of coping with these hard times.
The International Tourism Exchange Berlin is about to open its gates - with filled appointment books for many of us. The hotel conference "ITB Hospitality Day" organised by hospitalityInside.com next Thursday is approaching as well. Our final article on this subject today announces the two last highly interesting panel discussions about "Integrated Resorts" and "Reactions in times of the crisis".
Before the ITB, the independent event International Hotel Investment Forum will take place in Berlin - we will be very curious to know whether they drink more prosecco than champagne this year. Large events are overlapping; however, the number of small events has clearly decreased this year. Nevertheless, networking will be of utmost importance - and I am very much looking forward to this trend indicator.
Next week, our main team will be in Berlin and we are looking forward to meeting you at some of the events - the detailed summaries will be available in the issue after the ITB.
In addition, today's issue contains down-to-earth business figures of Motel One, Sol Meliá and NH Hoteles.
On time for ITB, our partner PKF hotelexperts in Munich completed its first "Budget Report Germany". The report includes brand new figures of the budget suppliers and their products; also experts explain the economical backgrounds in this boom branch.
Good news also to find on our related site hospitalitySolutions: Software specialist ISO from Nuremberg introduces its extended software solution to feed different distribution channels with one system. Save time and money with innovative IT!
See you in Berlin!
Yours, Maria Puetz-Willems
Editor in Chief
Your comment? maria@hospitalityInside.com
Dear Insiders,
In 12 days, the ITB Berlin will open its gates. The world's largest tourism fair will be a highly sensitive trend barometer. Today, before new statistics and forecasts from Berlin smother us, we are presenting you with statements made by researchers in many fields - from a touristic point of view, from the operator's point of view and from the investment perspective.
Of course, the ITB will improve global networking again; therefore hospitalityInside.com is pleased to support the first IHIF/ITB reception of the Cornell University, Ithaca, in the Kempinski Bristol Berlin. Alumni as well as Cornell friends are very welcome.
The ITB has a special exhibition about a subject that could lead to a new target group in the times of crisis: children and youth travels! However, young travellers also want their needs addressed in the same way as older travellers. Here, the hotel industry underestimates this segment and is still acting too generally.
Future subjects are the efforts of the marketing cooperation Alpine Pearls, which have a focal point on car-free holidays. However, it is not easy to gain destinations for this idea.
Accor CEO Gilles Pélisson won on power by combining two posts in his person in Paris last Tuesday. As a result, six members of the governing board left. The year-end-results 2008 were published the day after. We are reporting on these figures today, as well as about the business results of ArabellaStarwood, Wyndham and Orient-Express.
At the ITB hotel conference "ITB Hospitality Day", the topics of the panel discussion "Residences" will be about calculating with a sharp pencil and the choice of general business modes. Four international experts from four countries will be giving insight into various residence models at the ITB Thursday. Is it "only" a financing model or a lifestyle model? For whom does it pay off, for the investor/project developer or the hotel operator? The answers will be given on March 12, between 2.15 pm and 3.15 pm.
We wish you a pleasant week,
Yours, Maria Puetz-Willems
Editor in Chief
Fragen? maria@hospitalityInside.com
Dear Insiders,
The managing director of the real estate investor Eurojendomme is tired of hearing the word "crisis", as he told us. This is no surprise as his business is currently motivating investors to sign for a 500-million Euro hotel fund. He believes in hotels in the German-speaking countries of Europe! Good to hear!
As a journalist, it is not easy to avoid the word starting with a "c". Therefore, it is sometimes good to hear that the current situation also affects other industries too. A workshop in Berlin came to the conclusion that business travel chains and car rentals have to approach customers more actively than ever, too. The bitter realisation here today: the hotel industry is seen as a slow and slowly reacting industry from the outside.....
There are also Russians who trust the local market in Continental Europe: Azimut Hotels. And because they know how hard it is to talk to banks; they are safeguarding themselves from the beginning: they trust in own properties and self-operation. And they are creating one brand out of three.
In 2008, Austrian nature and culture attracted far more Germans than predicted. Opaschowski, a trend analyst from Hamburg, misjudged the situation which is why the Austrian tourism experts are disappointed by him now.
Forecasts will also play a role in the first panel discussion on the 4th "ITB Hospitality Day" in Berlin. "Who knows the Eco Guest?" is the question for the opening panel where three hoteliers, an online provider and a service provider will participate. All of them already deal with environmentally aware travellers and are trying to provide a profile on these hotly discussed customers. Please note: the ITB hotel conference, the content of which is organised by hospitalityInside.com, is free of charge for all ITB visitors and takes place on March 12.
Speaking of the ITB: TUI wants to explain at the tourism fair, how it wants to support hoteliers in the future qualitatively. Tour operators are becoming consultants now!
Again, our small pieces of news are absolutely worth reading today! And: The importance of an excellent customer relationship becomes obvious in economic downturns. Our hospitalitySolutions partner Micros-Fidelio explains today which criteria are relevant for a successful CRM. Visit our related website hospitalitySolutions!
We wish you a successful week.
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Last week's subject, the cancellation of the management agreement for the Grand Hotel Heiligendamm by Kempinski, was a reason for us to examine the situation of August Jagdfeld, the funds' initiator: he has many battles to fight, concerning commercial projects as well as hotel projects.
Generally, closed real estate funds are still looking positive in the hotel asset class; this became obvious at the Feri Symposium of the participation models a short while ago. This is also remarkable: the holding back of investors concerning low budget hotels is mostly caused by the transaction volume.
We show you the attractiveness of these budget, economy or midscale products taking aloft and element as examples. I had a closer look at the prototypes of these new Starwood brands near Boston. There is no reason why these midscale brands should not be able to establish themselves in Europe in a long term run. This is also known to the competitors of Starwood; thus, a fascinating competition will ensue concerning these new types of hotels, which are positioning themselves in the middle of all established categories.
Competition is the keyword the Swiss are suffering from. Two studies are out in the open. Austria, in particular, with its splendid price-performance ratio, is giving Switzerland a hard time. A serious discussion about price reduction is now taking place in the industry association hotelleriesuisse.
Employees should not be regarded as costs but as a long-term investment, according to the opinion of two representatives of the Hyatt International and the Lausanne Hotel School. Both representatives will answer the audience's questions on the subject "Talent Management" at the hotel conference "ITB Hospitality Day" in Berlin on Thursday, March 12, 2009. Prepare your own questions and ask them from 11.45am to 12.15pm in Hall 7.1b, Auditorium London.
This week, several hotel chains issued their 2008 balance. Unfortunately, the tendency for most of them is declining and will result in new cost reduction measures.
With our weekly contribution, we hope to give you new impulses for your day-to-day business and your observation of the market...
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
It's not often in the hotel business that operators "voluntarily" leave a hotel: This week Kempinski terminated its contract for the Grand Hotel Heiligendamm over night. Since the G8 summit 2008, the hotel has enjoyed world fame. Interference from owners - the Fundus Group - was unreasonable, Kempinski asserted. Fundus denies such claims and also terminated the deal. Accusations from both sides are serious.
The World Economic Forum in Davos was less fraught. Our correspondent Silvia Pfenniger was allowed behind the scenes and her experience was different to rumours circulating in larger media. She too paid a hefty sum for a small room - but she wasn't complaining. Nobody does. Everyone hopes that the WEF will remain in Davos. Hoteliers there take a large proportion of their annual revenue through the event - water damage during a VIP dinner aside...
"Hotel rates in Dubai go up and down like a rollercoaster ride," our Dubai correspondent Maan Hamzi writes. His article takes a look at the current situation in the small Gulf state which, in recent months, has taken an extraordinary turn for the worse. Hamzi found it difficult to find hoteliers who were willing to be quoted. The fear of admitting weakness and losing face is all too large. Yet here too Dubai should learn an important lesson: a very real crisis doesn't leave "fairy-tale destinations" untouched. Dubai too is subject to market whims - just like everywhere else in the world: London, New York and Tokyo included.
A few weeks ago, I interviewed the CEO of the Jumeirah Group. As part of a - state supported - company group, CEO Gerald Lawless can feel a little safer than the other chains in Dubai. And his plans are enormous: Today, Jumeirah counts eight hotels, by 2012 the company intends to have 60 in its portfolio. And the plans remain unchanged despite the crisis. An exciting undertaking.
Gerald Lawless is also one of four CEOs who will take current and strategic questions at the first "CEO-Panel" at the "ITB Hospitality Day". As media partner to the event, hospitalityInside.com will present the various participants today. Every ITB visitor is welcome to attend the discussion - entrance is free of charge.
Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Germany is changing - Germany no longer practices wholesale moaning. At the first major industry meeting in 2009, the "Hotelier of the Year" in Berlin, most hotel representatives displayed cautious optimism, and above all, true willingness to defy this crisis with flexibility. After the economy and natural disasters keep hitting the industry almost on a frequent basis, a new mood is spreading according to the motto: "...and we will make it this time as well." Germany, which is often reproached for its conservative, sober behaviour, is benefitting from this mentality right now. It helps to overcome difficult times better. British hoteliers, spoiled by success, are falling into a much deeper hole! Personally, the new behaviour of German hoteliers is boosting my courage. Very good, keep it up! And keep up the rates as well!
On the Berlin market, rates will be the principal aspect of the future, as our hotel market analysis shows. A Waldorf Astoria has been announced - this is great for the city's image and will hopefully help to raise rates of luxury hotels. But insiders remain sceptical. The flood of hotel projects seems to be endless: 5,100 rooms will be added over the next two years, more than 11,000 are currently under construction or planned... Read figures and facts about the most recent Hilton hotel and the Berlin market. Moreover, Hilton Hotels Corporation gave birth to two further brands!
Hotel partnerships mostly carry out their work in quiet. Despite this, Relais & Châteaux has a lot to report each January. The consortium of spruce historical hotels overtook Leading Hotels in terms of members and gladly announced remarkable increases in turnover in 2008 - although individual markets suffered heavy losses in the fourth quarter. This includes the US market as well. As expected, all key figures are experiencing a dramatic drop in the US, as you can gather from the news. Starwood Hotels also reports heavy losses.
Now Austrian investors and InterContinental Europe are transporting a US business model to Europe: a cardiac clinic will be established close to Vienna. After the third attempt, the location has been secured. In terms of health tourism, this model shows promising new ways!
This year, the ITB travel trade show in Berlin will sound out the global development of the industry this year. It will start in six weeks! And, once again, hospitalityInside.com will provide a first-class programme for the 4th "ITB Hospitality Day". The highlight: a CEO panel with the heads of 5 international hotel groups! Read for yourself and follow our detailed preliminary reporting about the individual panels in the weeks to come!
Yours, Maria Puetz-Willems
Editor in Chief
Your comment? maria@hospitalityInside.com
Dear Insiders,
At last week's annual, highly frequented conference with top-flight guests organised by the Austrian Hotelier Association, it became clear once again how intensely the country's tourism experts keep close tabs on their source markets. They are spending millions for advertising in their neighbouring countries, mainly in Germany. Nevertheless, the OEHV still considers this insufficient. But in practice, this means: German vacationers will presumably get tempting offers from Austria once again in 2009. Another form of tightened competition.
In the course of the OEHV conference, our editor Fred Fettner took the opportunity to talk with Horst Schulze, CEO of Capella Hotels. The Capella hotel at Lake Woerth was the conference venue, but in general, the hotel experiences such a "full house" only very rarely. Three years after the opening, both owner and operator disillusionment prevails. Despite that, Horst Schulze still fascinates many colleagues with his passion.
Passion also plays a part in the philosophy of the new Kameha Hotels and Resorts - we provided a short report last week. Today, read more details about this new lifestyle concept, which I definitely think has good chances in the lifestyle niche - if realised in the way the pictures and CEO Carsten Rath promise. It will probably all depend on the success or failure in finding like-minded investors who can literally "afford" such objects.
Finally, there is a number of interesting news items! The Swiss Tschuggen Hotels are adding some spice to it this time - with their creative "Seven Soup" menu.
Enjoy reading.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Today, the brand new information on staff issues and projects is hidden in many short bits of news... Read for yourself!For example: Carsten Rath is doing Kameha Hotels.
At the beginning of the year, we took the opportunity to talk to the German-speaking COO of a new design hotel group in Dubai. Apart from the crisis, the group plans to open - would you believe it - up to 100 hotels around the globe in ten years! Europe is also on the expansion list; however, Germany is not. A Bavarian would nonchalantly say: "We'll see what happens..."
Accor introduced a new loyalty programme, which also rewards guests of 2-star hotels for the first time. This is a new dimension in the big hotel chains' fight for customer loyalty. What is more interesting is that a critical Cornell report does not rate these bonus programmes as very important marketing programmes.
Behind the scenes, the staff issue is becoming increasingly important. Every hotel group in the world is already facing an undeniable challenge. They are not only looking for low-level staff members but also for qualified staff members at management level. Thus, the universities are in the focus now. Today, our author Baerbel Schwertfeger describes the subject of university marketing from the hotel groups' point of view. Moreover, she interviewed the new university marketing commissioner of the Kempinski Hotels. In the meantime, Kempinski is looking for 20,000 staff members all over the world.
In the next few weeks, various industry events will be taking place. hospitalityInside.com will be there to inform you about the current mood in the industry at the beginning of the year. Enjoy a great week!
Yours, Maria Puetz-Willems
Editor in Chief
Your comment? maria@hospitalityInside.com
Dear Insiders,
hospitalityInside.com would first like to wish everyone a happy and successful new year - whatever the financial analysts predict. Just how dominant the financial crisis has been over the second half of 2008 is seen in our annual review. Nevertheless, there have been individual movements and news which have consolidated existing trends or introduced new ones. Read our summary of the most important events. Throughout 2009, finance will of course remain a hot topic. The conference market was the first to publish its figures and these are all but encouraging. Even the current "ITB World Travel Trends Report" expects a bad year for travel.
The start of a new year also brings with it new personnel news, some quite surprising: The new Leading CEO made surprise dismissals before Christmas letting go three long term management staff. HRS, on the other hand, has extended its management team. Consistency also seems to have made a return to the Schoerghuber Group with a new appointment for the top job. The move sends positive signals to the hotel division which this year needs a new CEO.
Hotel spas looking to arm themselves for the battle of 2009 are well advised to take a look at current trends: Although these were determined in the USA, they are certain to provide relevant impetus and orientation here in Europe.
Until next week and the 2nd edition 2009, best wishes,
Maria Puetz-Willems
Editor in Chief
Any ideas for the new year? maria@hospitalityInside.com
For hospitalityInside.com a fast-moving and good year is coming to an end. Many new readers from the hotel industry as well as from the supplier industry, banks, project developers and universities placed their trust in us; therefore, hospitalityInside.com was able to register a new visitor record - which is an enormous encouragement to the team. Our claim to offer high-quality information to the industry's decision makers has been a new challenge with every single issue. Therefore, I want to especially thank our international team of editors and experts for their commitment - without their involvement, this interesting mix would not have been possible.
In 2008, we were able to improve and develop the profile of hospitalityInside further. Our Friday issue is still the core of our portal where more and more important synergies and partnerships are developing. We started new projects: our first readers' trip to Dubai in May was a complete success. The hotel conference at the Expo Real in Munich got best marks from the participants and the Munich International Trade Fair too. And we accompanied the Messe Berlin as a media partner at its first "ITB Asia" in Singapore. After issuing the first brand report in November with our partner PKF hotel experts in Munich, the next most up-to-date budget report is waiting. If you want to order these publications as print versions, please contact us. The ebook versions of the reports are still under preparation.
In 2009, the two hotel conferences at the ITB Berlin and at the Expo Real in Munich will remain our congress focal points. Both conferences reflect the focus of hospitalityInside.com: they are focused on international issues, they concentrate on high-quality values, they have top-class participants and they are constructive and critical platforms. We will provide you with up-to-date subjects, high-quality panels - and many new ideas! We are waiting for you in Berlin and Munich.
There are many dismissals in the global publishing industry at present, which concern editorial staff as well. In the US, traditional publishing houses are affected, such as the media group Tribune and the New York Times, and most leading publishing houses in Germany, too. A decline of the editorial level might be imminent now; however, up-to-date and well-founded pieces of information are essential in difficult times.
You can still rely on hospitalityInside.com as we will enlarge our team in 2009. As we are an advertisement-free media, we are able to fully concentrate on the content. And these substantiated pieces of information will not be found in any Google machines.
Dear Insiders, after last weeks' permanent crises reports, we want to end this year with a "crisis-free" but nevertheless interesting and up-to-date issue.
We hope that you will read our issues next year - and that hospitalityInside.com remains your "information network" in the future!
The next issue of hospitalityInside.com will be published on January 9, 2009.