Editorial
Dear Insiders,
The crisis has brought the old topic of 'lease' back into focus for banks, investors and operators. Jones Lang LaSalle Hotels in Munich shares its view on a new crisis-determined focus in the arrangement of contract terms and gives an example of profit from fixed-lease, turnover lease and management contract. Read for yourself!
Prague too is struggling hard in the wake of the economic downturn. Its currency is weak and the new luxury hotels on the market - all high value hotels - worsen the situation for everybody. Two articles on the hotel situation in Prague.
More transparency is promised by the hotel associations in Germany, Austria and Switzerland, which will begin to introduce joint star classification criteria as of January 2010. Experts presented the new system in Vienna. The minimum criteria system used to now has been extended to form a mixed system.
After the summer break, the annual autumn trade fair events draw closer. The Messe Berlin is also working hard on preparing the second "ITB Asia" in Singapore. Reservations from exhibitors are going well. hospitalityInside will again accompany the event as media partner and keep you informed. Today, a little foretaste of the event whose premier last year was a resounding success.
Rezidor's, Marriott's and Starwood's results for the first-half of 2009 weren't good, NH intends to generate additional revenues by selling advertising space in the hotel, and InterCity will give a contemporary feel to its lobbies in new hotels. This and much more in this week's edition.
Until next week!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
These days, it is extremely vital to take the right steps for the future: in doing so, you'll be assisted by a research company in London, which published its first hospitality future report. The trend towards "less is more" is growing. Hotels realising this "issue" in an emotional way stand a chance. Designer chairs are no longer enough in order to inspire your guests.
More and more, small top-level groups from abroad are introducing themselves in Germany. Accordingly, Baglioni Hotels from Milan, a group of palazzos and resorts with a boutique character, which we have characterised today, remind me of the recently introduced Franklyn Hotels from Spain. Even the dolce vita experts are striving only for top locations entering the same destinations all over the world....
The hotel industry is actually not seeking expansion, but hosting guests. This is pointed out by Ljuba Manz-Lurje, President of Manz Privacy Hotels in Switzerland. The Russian-born manageress has been one of the most elusive characters in Zurich over the past few decades. The group has just turned 120 years old. "It pays off to lead a company through insecure times with persistence, ambition and dedication," says the grande dame. An appeal to hospitality and sustainability.
Libya is a country you hardly notice from the European perspective. However, insiders consider the destination a secret tip and the first international chains have now announced their arrival. We’ll provide a market overview.
In Austria, Hypo Alpe Adria is currently considering selling its entire hotel portfolio in Carinthia, while Falkensteiner is increasing its presence in Croatia, and at the Arabella Hospitality Group in Munich, CEO Wolfgang Neumann is setting initial strategic signals internally. After eight years, there is a new timeshare survey, Accor has announced its half-year results, and finally, there are some interesting staff issues. A colourful issue today - enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
The keyword "discrimination" is taken up again and again in this issue. A table with value added taxes in the EU shows the extent to which Germany is discriminated against in competition. Hoteliers in border regions are frustrated to a certain extent. Understandably! But the German Chancellor is still not listening.
We can also understand the investors of the fund for the Hotel Adlon in Berlin. Their spokesman, a lawyer, gives a detailed insight into the complicated facts behind the announcement of Anno August Jagdfeld, who is discontinuing the lease payments in parts of the Adlon. Kempinski, the operator, is not affected by this affair.
The two partners running gambino Hotels in Munich are resisting discrimination of traditional 2 and 3-star hotels. They are leasing such "wallflowers" and pepping them up again on behalf of the owners. Their commitment is not to be restricted to Munich.
Those TUI hotels that decided for the newly offered quality and performance check are well on the way to turning disadvantages into advantages. However, this method is still far away from an independent, external quality analysis.
Negotiations between Starwood Capital and Golden Tulip are close to the goal in the meantime; in Switzerland, there is a new state employment agreement and luxury hotels keen to invest. And in Germany, most Internet users still fear data theft.
I wish you a week full of benefits.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Luxury hotels aren't doing well! Is it true or not? After weeks of research, we can't say we agree with such a statement. And so, this week's edition revels in luxury: What do the trend reports say about the spending habits of the rich? How has the luxury guest changed in the wake of the crisis? What can hotel directors say about the current situation? The answers aren't quite so straightforward. On the upside though, there are many small ideas from your colleagues, especially from Germany. Austrian hoteliers were, however, keeping quiet. Our Austrian correspondent, Fred Fettner, had difficulties in coaxing out a statement or two from Austrian luxury hoteliers on the challenges facing their houses. The difference between highly competitive Germany and the fussy private hotel republic Austria seems to be nowhere quite as stark.
Accor Paris was also keeping stumm. The surprising departure of the German CEO last Friday gave me cause to put together a number of questions.
Part awe and part incomprehension is feeling inspired by the new million Euro state guarantee for the permanently loss-making Grand Hotel Heiligendamm, meanwhile no longer managed by Kempinski - we took a look. Less surprising is that negotiations between Starwood Capital and the insolvent Golden Tulip Group are taking longer. And again, this week wellknown executives of the industry changed positions.
Following our reports on the increased "challenges" facing Dorint Hotels last week, we received an e-Mail from a Dorint director: "We, the hotel team, will do everything to ensure that life for Dorint fans/friends/guests as well as owners is made as easy as possible. Others might stick their heads in the sand, but we won't." Well if that doesn't illustrate identification with the company… Congratulations to Dorint! Hang on in there!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
Dear Insiders,
When the German Dorint Hotels & Resorts makes invitations to a press conference, many journalists respond agitatedly: The hotel group remains intimately bound with the memory of its former majority shareholder Herbert Ebertz, which explains why Dorint often faces much more intense scrutiny than other hotel companies. Not entirely fair. Ebertz has gone and the old burden has been cast away. Yet, journalists less intimate with the industry remain sceptical. Accordingly, Wednesday's conference was a real challenge for Managing Director Elke Schade to explain why, despite slumps, Dorint has reported good operating results.
The problems faced by Dorint today are no different to those of other hotel companies. Almost every company is having to re-evaluate or renegotiate its contracts and both owners and operators remain challenged. Dirk Iserlohe, Managing Director of the Dorint parent company, appeals to this sense of fairness and demands lease reductions for the fourth time. His demand, however, won't come unrecompensed. He's prepared to concede a lot. In spite of all adversity, Iserlohe is fully behind Dorint.
Long-term thinking is also what it's about in Bad Ragaz in Switzerland. There, the Grand Resort Bad Ragaz will open Europe's first "Spa Suites Hotel". The classic Grand Hotel has created a design refuge for the lifestyle-conscious younger guests. And with it comes a modified wellbeing concept. The owners have also created a public spa on a 5-star level - a truly unique addition.
The new Kempinski hotels in Slovenia and Croatia are also the essence of luxury; not true of their surroundings. General Managers are also struggling against many smaller everyday problems.
In Moscow, the famed hotels Rossiya and Moskwa have hit the news for illegitimate tenders and missing millions and Saudi Arabia next year expects eight million pilgrims .... This - and more in the smaller news articles.
Pleasant reading!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
Dear Insiders,
The rumour about Starwood's interest in the insolvent Golden Tulip Group and the brands and agreements has already been floating around the industry for two weeks now. Admittedly, we also thought solely of Starwood Hotels at first. However, it is Barry Sternlicht, CEO of Starwood Capital, who is in the process of analysing the group via due diligence and aiming to announce whether he wants to take it over or not by next Friday. This coup would increase Sternlicht’s budget and medium-class brand network to more than 1,000 hotels and 82,000 rooms in 40 countries! Barry is pressing ahead once again.
Moreover, several weeks ago, we dealt with the issue of whether a franchise group can become insolvent or not. We asked a legal expert of Hospitality Legal Group for a precise description of all those questions arising in the course of insolvency of property owners, operators or franchisors. Today’s answers, based on German law, although somewhat dry in legal terms, are highly interesting.
In many articles and talks over the past few months, we have heard again and again that hotel groups aim at communicating personally with their employees in Germany. The same phenomenon is showing up in Asia. HR specialists of major hotel chains in Asia described their creative ways of getting the "message" to their employees.
Technology expert Carolin Brauer also sends a message to the Internet portal providers in the final part of our Internet portal series. They have to upgrade their websites and IT systems if they want to benefit from the enormous sales potential of the offers of leisure hotels.
A survey carried out by Munich University about the support quality of IT companies awarded Micros-Fidelio at its best. Our site hospitalitySolutions describes the success story and how Micros-Fidelio managed the optimisation of its after sales service.
A lot to read and learn today! And lots of mixed news.
Yours, Maria Puetz-Willems
Editor in Chief
Comments? maria@hospitalityInside.com
Dear Insiders,
Figures and evaluations by the experts at the first "Commercial and Hospitality Real Estate" Forum in Paris with regard to hotel financing are hardly encouraging. Prospects for this and next year in the least remain rather gloomy. In addition, once more the industry’s high risk factor strikes back: Banks will probably start listening to the hotel industry only after the remaining sectors have recovered. All that becomes even worse thanks to the fact that many banks have laid off their hotel financing experts. Thus, the hotel industry seems to be back on the horns of the old dilemma. Macy Marvel, professor for hospitality research at the Hotel School Lausanne, summarises the current situation from an international perspective.
Leisure marketing of hotels is reflected neither in the GDS nor in the Internet portals - a true dilemma! The second part of our series on Internet portals explains the reasons for this and provides some suggestions for portal operators to help them take full advantage of this business potential.
Furthermore, we have summarised the most important trend news from the IMEX MICE fair in Frankfurt dealing with budget or trends, and in a spa hotel in Austria, we came across an ingenious idea, which involves guests crawling on the floor... From time to time, we will present you with creative and innovative concepts to enthral guests with under the keyword ”Seen on the road”.
This time, we have lots of news from Switzerland: The hotel industry met at the "Industry Day" and President Brentele made some intense appeals to colleagues. For the first time, there is a "Jahrbuch der Schweizer Hotellerie", full of figures and statistics, and in the course of the conference, people talked about last week’s sale of Oetker’s Park Hotel Vitznau.
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
Dear Insiders,
In comparison to bankers, hoteliers are modest creatures. A lot of work for relatively little pay - at least that's the way it is here in Europe. Large European groups this week allow us a quick peek into their pay structures and the CEOs comment on their remuneration. A discussion on fixed and variable pay elements. The pay structures of listed and above all American groups sometimes look more attractive.
For this reason, the supplementary report from the internationally active consultancy firm HVS is all the more interesting: Its experts have listed 31 CEOs of international hospitality companies by their salary in 2008. The bosses of Walt Disney, Marriott and the Morgans Hotel Group earn the most. See the details for yourself!
It's unlikely that anyone outside Portugal has heard of Dr Jorge Armindo Teixeira; at home, however, he's one of the country's most influential businessmen. The dissolution of the joint venture between Accor was for him the start of his own resort and boutique chain. In the background, casino-cash calls the orders. A small chain on which a close watch should be kept.
At first sight, the connection or merger of internet portal providers is anything but obvious. And so Carolin Brauer, Managing Director of Quality Reservations, today throws some light on a pretty dark subject and shows who is behind what name. This article sets the ball rolling on a mini-series of three articles on the subject of internet portals which will uncover why they have up to now responded only to the needs of business travellers.
Important résumés are found among the smaller releases this week. Enjoy surfing!
And have a pleasant week,
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Mankind needs visions - and one of them is about to turn into reality: by 2011 at the latest, the first spaceship with six tourists on board will take off for space. The test flights are underway. Richard Branson’s Virgin Galactic space travel company introduced the details and Germany’s first space tourist in Munich this week. Let yourself be taken away to unimaginable dimensions for a moment. But it’s really becoming reality: Now you can book your flights in travel agencies - via the "Accredited Space Agent"! With this in mind, the first "heavenly hotel" might only be a question of time...
In contrast to that, providers of conferences and seminars feel unimaginably bad. The third ”Meeting and Event Barometer” introduced at the IMEX trade fair in Frankfurt this week clearly proves the intensity of the crash the MICE segment experienced in 2008. The only thing still working seem to be extremes - and absolutely personal and flexible service.
People are also the focal point of the franchisor Choice. At this week’s European meeting in Prague, the American chain explained its new main emphasis: increasing the membership of the bonus programme, online marketing and employee training! Choice has turned its back on the master franchising principle as Steve Joyce, Choice’s new CEO, explained. By the way, he left Marriott after 26 years due to diverging views with Bill Marriott, as he has indicated in the meantime.
The management of the German National Tourist Board would probably also like to be heard - by the federal government. As marketing company of Germany as a destination, the German National Tourist Board drew the short straw in financial terms compared to the neighbouring countries of Austria and Switzerland. These are currently investing millions of euros in order to attract German tourists. And vice versa? Unfair competition is in the offing.
Another highlight today: hospitalityInside starts its first "GM weekend". Learn more about the optimisation of search engines and social media like Twitter. Not in a large convention venue but in a small group. Take precise support home! Your instructor will be your colleague - the eCommerce specialist of Marriott International! Your host hotel will be Elmau Castle in the Bavarian Alps.
Read this and many more news in today’s issue... Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
"Location" is the keyword of today's issue. Since last week, the otherwise rather sleepy health resort of Bad Ragaz in Switzerland has become a much sought-after event location. The biggest European open air sculpture park is attracting hundreds of thousands of guests.
Locations play a much bigger role in the real estate sector. "The false evaluation of a location is a fatal mistake in the industry," warns Berno-H. Feuring, founder of the Feuring Group in Mainz. The "old hand" of the German(-speaking) real estate scene, whose company has managed more than 400 projects in the past 50 years, describes his view on the current economic crisis and its effects on the real estate market in an interview with hospitalityInside.com.
Exclusiveness of a location is a main sales reason for Kempinski Residences. The Swiss luxury hotel group is in the process of slowly becoming one of the world's important residence providers. However, Kempinski sets great store by the seriousness of its development partner particularly with respect to the interior relationship. In contrast to many other hotel groups, Kempinski insists that its development partner hold a "lifelong" share in the real estate in question.
Concerning human resources, it is also of great importance where the employees are situated that are responsible for applications. Is it possible to outsource recruitment tasks? After all, it is becoming ever more important to find the right employees right from the start. However, reality proves to be a paradox: right now, in difficult times, many companies consider their recruitment specialists a cost factor and are cutting their jobs. Our colleague Baerbel Schwertfeger has drawn a comparison between the hotel sector and other industries.
There are numerous highly interesting facts in our news section today: Hassler aims to become an international hotel chain, the Dolder Zurich is in the red, and Motel One has hit the bull's eye again in terms of location with its fourth budget hotel in Munich, which will be located inside the much sought-after inner city ring....
Have a great week.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com