Editorial
Dear Insiders,
I've known it since last week: the super-rich in this world have their own "misery". They need cash, but facing the current financial crisis, they remain sitting on their villas, yachts and paintings. Apart from two highly interesting talks on the decreasing luxury level in the US at the Leading Hotels Convention in Boston, today's article about the changed leisure time behaviour of Austrians also shows that the crisis has effects everywhere. Even the "broad masses" are showing a reaction - they are reducing their parties, shopping, wellness and breathing in fresh air instead. It is for free.
The Austrians, Europe's seismograph for tourism developments, live in the fear that a snow crisis might come in the next few years. Their winter sport is worth 11 billion euros after all! An enormous amount for such a small country. They are therefore taking immediate action looking for an alliance with winter sport partners.
At the Design Hotel Conference in London, Guy Dittrich learned that a huge gap lies between the desires of designers and those of the hotel operators. That is nothing new for realists, but in times of crisis, this is becoming critical. At the moment, there seems to be hardly any leeway for experiments.
Accordingly, the engagement of the famous Sacher Hotel in the mountains of Austria can be seen as a small experiment. As of December 1, the grand hotel dynasty will manage the domicile of a rich Russian. 19 rooms "all inclusive". But: the oligarch lost a lot of money. Despite this, the Sacher remains true to him. The famous cake is to be exported to Russia in the long term.
Today's top news: our staff reports - mainly on Wolfgang Neumann and Moreno Occhiolini. Two big managers have new plans. And Wyndham's Rudnitsky has turned up again as well...
Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Singapore wants to push on. The Asian city state is improving its tourist offer. Ageing hotels are to be renovated and top integrated resorts are to be built in the city and the island of Sentosa. Singaporeans of course are a little concerned than billion-strong investors may renege at short notice, but for the moment everything is in order and the construction cranes are growing higher and higher on the skyline.
The picture is different in Europe. Here, banks and car manufacturers have discovered the State as saviour in respect of their economic failings and they withdraw unashamedly beneath its protective wing. SMEs, on the other hand, continue to struggle alone against the full force of the crisis and are even confronted by new restrictions, an injustice which led the European hotel and restaurant association Hotrec to make an appeal to European politicians at its annual congress in Prague recently, to finally change their course in such hard economic times: away from the glut of excessive regulation and towards real support for the industry in the form of reduced VAT rates and subsidy for training. But such appeals are likely to fall on deaf ears.
In such a situation, a modicum of solace might be found in predictions from Dr Volker Boettcher, Head of the tour operator TUI Germany. According to him, 2009 won't be too bad a year for tourism. Boettcher is convinced that the holiday is considered important in Germany and that in 2009 too, Germans won't be too willing to do without their "nicest weeks of the year". TUI's strategists have extended the number of four and five star hotels in their portfolio for their financially strong clientele.
Guests whose belts have had to be tightened in the wake of the financial crisis, however, can also expect a large selection of all inclusive trips. "2009 will be an all-inclusive" year, Boettcher said firmly at the presentation of TUI's summer programme for 2009 at Agadir in Morocco. Further focuses of the programme - in line with trends - are to be found on best agers and environment. Expensive air fares which may ruin the tour operator's business, have been pushed back by way of caution. And: TUI has not been afraid to announce price increases for the coming year.
Modified concepts in this edition of hospitalityInside.com are not only presented by TUI though. Fairmont, Raffles and Swissôtel - meanwhile all united in one single parent company - also announce their new strategies. Further articles bring us to Switzerland's top class hotels and to sensitive takeover negotiations: Starwood Capital plans the sale of numerous luxury hotels, among them the 33 Concorde Hotels and JJW Hotels. Have fun on our journey across the globe.
Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Kurt Ritter and Barack Obama have something in common: With the slogan "Yes, I can", the Rezidor CEO has been trying to motivate his team for years, and with "Yes, we can", the American President Elect has this week managed to mobilise an entire country. Both have to struggle against the economic downturn and Rezidor wasn't the first this week to announce falling figures. But more on this and on other ramifications of the global financial crisis next week.
Today's edition of hospitalityInside.com moves a little away from the topic of financial turmoil. Guy Dittrich once again summarises statements from the International Hotel Conference in Rome where positive approaches for boutique and budget hotels are found despite the financial crisis. And the tenor was similar at the hotel discussions during the ITB Asia. Here, it was reassuring for visitors from "good old Europe" to hear that the boom continent has now found itself subject to exactly the same market mechanisms as have long established themselves here at home. That is, competition between sectors, brands and prices.
In almost all discussions in which I have listened this autumn, an appeal can be made out to set oneself apart from the competition through "differentiation". The Fraunhofer Institute in Duisburg may be able to help here. It has recently completed the first two "experimental rooms of the future" and invites all those curious to know more to come and test them. How does it feel when a robot brings room service to your door? Or when the bidet disappears into the floor at the touch of a button?
The Swiss have once again proved their sense for hyper-progressive architecture: In Bern, the Westside - a mixed use project by star architect Daniel Libeskind including shopping, spa, entertainment, hotel and residences - has opened. The modern building hides a smart concept and the Holiday Inn is part of it. This hotel is once again living proof that the classic "stand alone hotel" isn't the ultima ratio. Here it's about concept synergies.
And last but not least, I'd like to present a row of current personality portraits and to point the Cornell alumni among them to a corresponding article. Here, you will find all dates for 2009 on which you can meet your international colleagues.
Because the year is slowly coming to a close, hospitalityInside.com would like to know from its readers how you view our magazine. For this reason, from this day on we will include testimonials. These are a huge motivation to us in giving you our best week for week.
Yours,
Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Could it be that the rumour of the week about the imminent sale of Steigenberger to Marriott was a retaliation campaign of former employees? Even Dr. Ralf Corsten, Chairman of Steigenberger's supervisory board, who is rather considered a mastermind in the background, allegedly knew nothing about this rumour let alone activities of that kind.
Consequently, the floodgates have been opened to speculation. And in the middle we have the dynamic Chair André Witschi, who allows a short glimpse at the strategy he is following with Steigenberger for the first time after this week's events. And it says: tidying up! The investment crunch puts too much strain on the hotel group, and it is only able to divorce itself from old agreements very slowly. Anne-Marie Steigenberger and her daughters have lived on the "gold rush" for many years. Now they have to use all the more money in order to make their company attractive again.
Last week saw humming business in Singapore: the first ITB Asia was a complete success. Messe Berlin, the Berlin trade fair company, is pleased about 24% more visitors than expected as well as positive comments from both exhibitors and buyers. The trust in the ITB brand and the German organisational talent is amazingly big in Asia. As a German in Asia, you perceive this with respect. Being a media partner, hospitalityInside.com was on sight throughout the entire week: for starters, we will describe our impressions from the fair, and next week you will read more about the current hotel situation and up-to-date discussion topics in Singapore and Asia.
In Switzerland, the hotelleriesuisse industry association has drawn conclusions from a guest survey. By 2010, demands of guests will change criteria for awarding hotel stars. And based on the motto of "less industry sleaze, more objectivity", the association is filling its committees with external experts.
"Green meetings" remain wishful thinking, as our editor Simone Spohr found out. The hotel offers in this segment are far from being applicable.
Enjoy surfing and reading,
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
Dear Insiders,
The finance crisis this week too continues to keep the hospitality industry on its toes. Tour operators and representatives of the hotel industry all agree, tourism will be affected by the imminent recession. Across the globe, the ramifications of the events we've been witness over recent weeks will be felt in many forms. This week, hospitalityInside.com reports on the mood at various of the world's tourist hotspots.
Although the effects of the financial crisis are still not felt quite so strongly in the Middle East, it struggles against a different problem. There, rising construction costs, a lack of skilled labour and quality building materials are the talk of the day. The mood at the International Hotel Conference in Rome last week reflected the problems of the finance crisis, yet our correspondent Guy Dittrich, who attended the event, wasn't just confronted with tales of doom and gloom, but also noted a glimmer of hope. First and foremost, the large hotel chains see the crisis as an opportunity. In times of crisis, so the general idea goes, consumers look more than ever to what they know and trust and come to the strong brands in search of security.
Not least because of 9/11, the hospitality industry has learnt how to deal with crises. The results of a survey on "Sales & Marketing in Crises" are positive. No hotel chain spoke of lowering rates - and that, although it's certain that the crisis will reach their businesses. With the support of the "early warning systems", such as yield and revenue management, established over recent years, hoteliers have a good overview of reservations, are in a position to deal with cancellations and are able to fill rooms with other target groups. Drastic cuts to room rates were excluded by the hoteliers. In comparable situations, it has simply taken too long, they noted, before rates could be increased after all other markets had recovered. We hope that hoteliers will be able to stick to this approach.
Whilst I'm writing these lines, Maria Puetz Willems is researching moods and trends on the other side of the world at the ITB Asia. More next week. Have fun reading!
Yours, Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Dear Insiders,
The current financial crisis has also sent the share prices of the hotel chains plummeting - Wyndham, for instance, lost 75 percent! Nevertheless, our correspondent and economic expert Prof Macy Marvel from the EHL gives calming news: there's no reason to fear mergers and acquisitions in the industry.
For this first time this year, the Expo Real Munich made the "Green Thinker award", an award for responsible companies and project developers; our correspondent Guy Dittrich met many such characters in the Kruger National Park in Africa in an exchange of ideas in relation to the "Eco Resort" of the future. It soon became clear that the issues here weren't only related to solar energy and moderate water consumption, but also about the varying expectations of investors and the local population.
Not the environment, but the desire for wellness motivated gourmet chef Joerg Sackmann in the development of his "Indulgence Spa" in the Black Forest. In the end though, "eco" thoughts also characterised the project: The new spa also uses native woods and home grown herbs. Sackmann introduces his guests to the "roots" of aroma and scent. A perfect symbiosis between kitchen and spa.
Swiss Deluxe Hotels too plan to invest around one billion CHF in wellbeing. After rich patrons have meanwhile restored dilapidated grand hotels to their former glory, the noble middle class hotels follow suit. Their projects and plans are further proof that the Swiss hotel industry is finally about to return to its former prominence amidst the international competition. This, however, is not true of Switzerland's small and medium sized hotels: One quarter of them aren't in a position to survive, the study finds.
Our legal expert Joachim Jungbluth once again busies himself with the harsh reality for employers: Companies in Germany hardly have a chance to prevent a member of staff leaving to temporarily care for a family member.
In the coming week, my colleague Susanne Stauss will greet you here. I will be in Singapore where I will take part in the first "ITB Asia". Hopefully, I'll return with lots of news in my suitcase.
Have a pleasant week with few surprises,
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
News from Schoerghuber: Stefan Schoerghuber himself will take over management of ArabellaStarwood. The leader of a true empire of enterprises will be discussing everyday operational issues with his hotel managers in future. It is one of the most unusual human resources "decisions" of the hotel industry. Who would want to contradict the chief of chiefs?
For many, last week's focus was on the Expo Real real estate trade fair in Munich. In the end, the trade fair recorded 42,000 participants - not a trace of any crisis mood. The hotel industry is gaining increasing importance there. The "Hospitality Industry Dialogue" hotel conference, the content of which I arranged for the first time this year by commission of Messe Muenchen, attracted about 1,200 visitors with six panel discussions. Today and in the following issues, you will find summaries of the respective topics; in addition, we will make the panels accessible for download on our website within a short time.
The mood was quite subdued, but it was not extremely negative. Read a first report and a summary on how the new situation will affect the private equity scene. On Monday, Treugast presented its annual investment ranking for Germany and Austria. The top news is that the budget sector is becoming presentable in financial circles thanks to Motel One.
Among the briefer contributions, you will find another interesting staffing issue: the new CEO of Accor Deutschland has introduced a new management level.
Read for yourself - and look forward to even more insider information next week!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
A clever management consultant calculated that the landlords earn about 25,000 euros each time a toast is pronounced by the bands in the tents at the Oktoberfest in Munich. Next Monday, right after the Oktoberfest, the commercial real estate fair Expo Real will begin in Munich. Many topics will be discussed at the fair. The financial crisis will be a mega issue and hopefully the "Hospitality Industry Dialogue" too, where hotel and investment experts meet in six panel discussions. Starting: 10 am! You can meet the hospitalityInside team in Hall B3/Special Real Estate Forum over the course of the whole day.
B&B thinks that it indirectly profited by the crisis: in hard times, budget concepts attract even more travellers, mostly more business travellers. An Amex survey confirms this. Therefore, the French group regards itself well established in Germany for the next few months. Its expansion is progressing.
Women progress too, but not as fast as men do. However, they are clearly on their way up to the top levels of companies. Gabriele Maessen, GM for the new Leonardo Royal in Berlin, devoted her dissertation to the subject "Women in leading positions," shedding some light on the question of women's rights in the German hotel industry and animating us to conduct a survey among international hotel chains: how do these chains regard women? A "must-read" for men, too!
If male executives are not able to sleep after reading the matter - just try the new high-tech pyjamas of Travelodge....
After two cheerful Oktoberfest weeks, I wish all of us successful trade fair weeks and conferences featuring interesting subject matter in October.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
It is always exciting to see how new brands try to conquer Europe, and with what partly tiny differences they hope to assert themselves against competitors. Hilton is currently presenting its US brands Hilton Garden Inn and Hampton with a road show hoping to find enough investors and franchise partners. When a Hilton manager showed how many Hampton there are at a presentation in Berlin this week, it was primarily North America that was dramatically strewn with tiny spots for this brand.
Expectations are therefore quite big for Europe. Since the merger of Hilton & Hilton about two years ago, the managers in Europe have been working on the adaptation and market introduction. Now, the sportive competition with IHG and Starwood can begin.
I doubt whether the plans of hotel groups - and I mean all of them - can be realised as they have been so far. The first signals in this second week after the insolvency of Lehmann Brothers hinted instead that the worst is yet to come. We have collected further statements, figures and facts about the financial market crisis and its effects.
In a way, you can rely on women. They make 80% of all buying decisions. Our profile of this target group shows what tourist professionals and hoteliers should adjust to. And this is considerable: women have many facets... To put it soberly, this target group holds enormous potential!
PKF hotelexperts and hospitalityInside see a lot of potential in preparing fact-oriented reports as well. Your online magazine supported the hotel consultants from Munich in developing an database which allows you to gather fantastic profiles and market overviews over time. Our common goal is to provide first-hand objective, plain information instead of PR-intense reports with estimated figures or questionable secondary sources. At the Expo Real in Munich beginning on October 6, you can take a look at the first report "Hotel Company Profiles" at the PKF hotel experts' booth. The reports will be distributed as personalised e-books via hospitalityInside. For us, this initiative will mark the start of the planned "hospitalityShop", which will provide you with a large pool of studies, analyses and books over time. Get to know more about this after the Expo Real - we are just putting the final touches on the reports.
Yours, Maria Puetz-Willems
Editor in Chief
Any suggestions? Critique?
The financial inferno of New York makes everybody feel uneasy. How strongly will the most recent "black Monday" affect the world economy and the individual industries? It is all the more understandable that the financial heads of the major hotel chains refused to take part in our spontaneous survey. Who would want to spread additional scenarios of fear? Uncertainty sits deep anyway, and many are probably checking their involvement in international financial institutions. This is what we learned from the feedback. We will stick to this issue for you over the next few weeks.
As October will see a good many conferences, we have concentrated on "Eastern Europe" today. An experienced developer from Belgrade emphasised the situation of the Balkan countries, and our editor Fred Fettner provides a report on a booming Serbia and Belgrade. The conclusion: the path to hotel heaven is still long and winding.
In its recent survey, Deutsche Hypo considers hotel development in Mecklenburg-Western Pomerania, Germany positive but not euphoric. The market analysis featuring many figures and facts is part of the bank's first hotel survey, which also provides German-wide figures in a well-prepared form.
And finally, we will skip over to Asia once more, in order to draw your attention to the first "ITB Asia" five weeks from today. Head of the trade fair, Dr Martin Buck, explains the difference between the ITB in Berlin and in Singapore.
Two of today's three trade fair news reports refer to new events with a trade-fair character. But read for yourself...
Have an crisis-proof week.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com