Editorial

Dear Insiders,

Three terms which will determine the future of the hotel industry are the topic of this edition of hospitalityInside.com. The first is real estate and its investors, a topic which gains greater influence by the day.

Something which isn't all good for the peaceful co-existence of investor, operator and guest as our correspondent Karin Krentz just back from "Hotel Dialogue Asset Hotel Real Estate - A Complex Management Mix" reports. Investors will place increasing pressure on operators whose life is also complicated by the ever more rapidly changing demands of guests.

Niche products created to satisfy these demands, are developing faster than conventional hotel types, something which is having negative ramifications for real estate. A vicious circle as it seems. Maria Puetz-Willems saw a lot on the topic of real estate during her trip to Dubai as she visited "The Palm Jumeirah". There, accommodation of many varieties is being built.

The hotel chains ready to present themselves on the island, are for the most part, already represented on mainland Dubai. In order to attract guests to the island then, special motivation will be needed. Investors must both bring out the exceptional in the hotels as well as find new niches to entice their target groups.

And what's happening in Dubai on a grand scale, our author Fred Fettner was also able to observe on a small scale at the Austrian Hotel Spitz in Linz. There, a daring investor and two internationally experienced experts, a designer and a manager, sought a niche for a hotel product, painstakingly renovated it, and have managed to construct a bridge between design, culture and regional charm - an achievement which has been rewarded by the guests.

Our Swiss correspondent Silvia Pfenniger meanwhile met with the American Mark Advent, who together with financial heavyweights is planning a "Las Vegas" in Hungary. "Euro Vegas" will not only look impressive and earn its money with hotel rooms and one armed bandits, but will also be designed with the environment in mind. Which brings us to our third topic of interest this week.

Every second property developer, whether in Europe or on the Seychelles, purports  today to give thought to the environmental ramifications of the construction project. Taking the building boom in Dubai as an example, which Maria Puetz-Willems has been able to describe for us in recent weeks, one can certainly say that such considerations don't really seem to have much weight there. But perhaps investors in Dubai are simply just more honest and know that an indoor ski-slope in the middle of the desert or an artificial island with six lane access roads is just as incapable of being environmentally friendly as a Las Vegas in the Hungarian Steppes. Let us take you on a journey into a world of illusion, passion and hard and simple fact: the hotel industry.

Let yourself be taken by surprise.

Yours, Susanne Stauss
Senior Editor

Questions? Comments? susanne@hospitalityInside.com

Dear Insiders,

With the European Tourism Conference and the Germany Travel Market both taking place on home soil, the gaze of many tourist specialists is likely to have been fixed on Germany over the past few days. There, two tourist destinations, both of which up until recently have tended to work against rather than for one another, presented their best sides to colleagues from abroad: Berlin and Brandenburg. The potential locked up in Brandenburg and how the topic of tourism is being dealt with is looked at in an article by our correspondent Karin Krentz.

Germany's upturn - and concomitant strategies - are a further topic in a number of announcements in this week's edition. For the first time in nine years, Hyatt has announced a new hotel in Germany, a Hyatt Regency in Duesseldorf. And full of optimism, the meanwhile once again independently operating 4 star brands Dorint and Novotel, present their new brand strategy for Germany. The feeling of progression is also underlined by announcements from the German Hotel and Restaurant Association which predicts further positive development ahead of the German hotel industry.

Maria Puetz-Willems in Dubai brings further interesting news on investments, human resources and strategies from the Emirates. And during her research, she happened upon an old colleague: Thomas Klippstein, former Director of the Kempinski Hotel Adlon in Berlin, today working for the management company Emerald Palace Group. But it's not only Germans who are tripping off to Dubai, wealthy citizens from Asia, Arabia and South Africa have meanwhile also acquired properties or second homes. On arrival, they find western standard of living and buy themselves a "secure" second home - and that closer to their countries of origin. Many take advantage of the rule in Dubai that whoever buys property immediately acquires residence status.

Last but not least, this edition of hospitalityInside.com sees the introduction of a new topic column. hospitalityWHISPERINGS is to be our "people column". There'll be branch chitchat, a hint of rumour and other noteworthy additions. The column will entertain and amaze as we keep an eye out for interesting people and events.

Let yourself be taken by surprise.

Yours, Susanne Stauss
Senior Editor

Questions? Comments? susanne@hospitalityInside.com

Dear Insider,

Life long learning is necessary in all branches of industry today. Whilst management staff in the hotel industry not only have to learn to take advantage of the newest technological advances, they must also stretch and add to their knowledge of personnel leadership, finance and property development as well as keeping on top of the rapid changes of the international tourism industry.

The importance of choosing the right training provider for your course is this week highlighted in an article by our Switzerland correspondent. Silvia Pfenniger writes on dubious training providers in her native Switzerland and shows the way to avoid falling into such pitfalls, pointing the way to the more serious of Switzerland's institutions.

We also bring you much more inside news from the branch and its international developments. Whilst Editor in Chief Maria Puetz-Willems continues to report live from the breathtaking developments in Dubai, our finance expert Karin Krentz reports on the introduction of Real Estate Investment Funds in Germany. Our Austria correspondent Fred Fettner has also discovered that the last winter season at home in Austria did in fact, contrary to all expectations, close with thoroughly positive results. The road is certainly open for further investment in tourism in Austria.

Across the border in France, Le Méridien, recently swallowed by the hotel giant Starwood, announced its new strategy. And the marketing machine surrounding the "fitness guru" Dr. Ulrich Strunz is despite a recent cycling accident once again running at top steam. A hotel consortium founded last year under the name "forever young" in accordance with his philosophy already counts 15 members and aims for double this figure by the end of this year.

Have fun reading, or better "lifelong learning".

Yours, Susanne Stauss
Senior Editor

Questions? susanne@hospitalityInside.com

Dear  Insider,

Alone in the past few days, various hotel groups in the United Arab Emirates have announced a flurry of new brands and massive expansion plans. In the luxury market, Dubai, where Editor in Chief Maria Puetz-Willems will be for the next weeks, budget hotels too are hoping for a piece of the cake from this rapidly developing hotel economy. Yet, investors in budget hotel meet with scepticism from the locals, as Maria has observed. Another exiting topic: We got first details from the CEO of Bawadi about the progress of the world's biggest hotel project with 31 hotels and 29,200 rooms.

In the USA, there's also movement on the budget market. The French Accor group has decided to concentrate on its budget brand Motel 6. The sale of their Red Roof Inns brand to Westbridge, a partnership between Westmont Hospitality and Canadian pension funds, opens up the necessary funds for the French to drive forward their expansion plans for Motel 6. At the same time, however, competition is strengthened.

As for new developments closer to home, the German chain 25hours, still very much in its formative stages, has managed to span the gap between luxury and budget. More on their refreshing - and up to now very successful - concept is also to be found in this edition of hospitalityInside.com. Germany remains, it seems, an attractive market for foreign hotel investors. With Grand City Hotels, we present a relatively young hotel group on the German market behind which international financial heavy weights are hiding.

Meanwhile across the border in Switzerland, the luxury hotel industry is recovering well. Members of the consortia Swiss Deluxe Hotels are celebrating a successful winter season. Finally, recently made and long overdue investments in hotel hardware are paying off.

Dubai will continue to be in focus next week, whilst those of us who remain at home bring you the latest news and trends from the rest of the world.

Enjoy your week,
Yours, Susanne Stauss
Senior Editor

Questions? susanne@hospitalityInside.com

Dear Insiders,

That is what we call up-to-the-minute: all main news of today's issue deals with press conferences and talks of this week. That is why we are focusing on figures and strategies today.

But that is the way it has to be when important players like InterContinental finally say something about the German market or when Steigenberger, the biggest hotel group of German origine, announces its 2006 annual account figures. The same goes for Victoria-Jungfrau AG in Switzerland. Its hotels are among the leading businesses there.

The positive trend in every case: figures point upwards and expansion is ongoing. Although, not all brands are included, as InterConti shows: there was no room for Crowne Plaza in "low-price Germany", but for more upmarket InterContinental. Strange. How do the British calculate? A typical phenomenon for quoted companies: their panic before lease agreements. They prefer tricky triangular structures with Dorint and the investors.

A few weeks ago, a study about hostels was issued; our colleague Karin Krentz looked for an in-depth explanation of the economic characteristics of this new hotel segment, which comes "dangerously" close to the classic budget hotel segment. Etap, Motel One, B&B and co should keep an eye on this!

The field of MICE is another booming segment. Susanne Stauss gathered some facts & figures round about the Frankfurt Fair IMEX.

Susanne will be welcoming you, dear readers, in the next four weeks as well. I will be in Dubai on the occasion of the Arabian Travel Market and will of course take the opportunity of having a close look at this bustling city and its existing and new hotel projects. The aim: to provide you with top first hand information as an "editor at the destination". As an online medium, this is possible and thus you hear from me "live" from Dubai in the next few issues.

Best regards
Yours, Maria Puetz-Willems
Editor in Chief

Questions? Wishes? maria@hospitalityInside.com

Dear Insiders,

Steve Heyer was CEO of Starwood Hotels & Resorts for two and a half years only - he has thus lowered the statistics significantly. Most CEOs stay much longer - for nine years on average. Our own survey in hotel groups emphasises this impressively. Steve Hayer, a leader I described as "colourless" last week, apparently had non-business reasons as well for leaving the company according to US media.

Today's issue has relaxing aspects to end the Easter week, although the fitness subject - under business aspects - should strain many brain cells. In order to offer business travellers relaxation, city hotel managers do not have to put up fitness parks any longer. A qualified fitness counsellor offers ideas. The Radisson in Frankfurt reveals how it uses fitness to lure new guests from nearby offices.

Fitness and movement are also an elemental part of the Kneipp Cure. In the workplace of the priest Kneipp in Bad Woerishofen in Allgaeu, a classical cure hospital was transformed into a medical wellness resort with the emphasis on Kneipp. I visited the "Kneippianum" four days after its opening. With projects like this, Germany could market itself very well internationally - if there were not envious and narrow-minded persons in local districts and among hotel managers. Other countries would be proud of possessing such wellness roots.

Next Tuesday, the IMEX starts in Frankfurt. The MICE Trade Fair grows every year. This is reason enough for us to draw up an overview of all trade fairs which are important for hotel managers. You can read details about the development of trade fairs and about the individual trade fairs we summed up in a table.

Our articles contain news about balance sheet figures, projects, European hotel performance figures and hotels changing their brands.

Have a nice week!
Yours, Maria Puetz-Willems
Editor in Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

One year ago in New York, I experienced the Starwood boss Steve Heyer live and very close for the first time: a colourless man. Now he is gone - and the board reproaches him for his leadership style. Categorically - no details offered. It was obvious that the ex-Coca-Cola manager had knowledge of the brand but he was not able to share it. On the outside, he seemed dull, but he obviously acted more aggressively on the inside. A more personal examination of the dismissal of the Starwood CEO this week.

Today, Starwood also appears in another brand context: in a deluge of brands, the chains are swamping us with at the moment. We tried to establish whether people need so many brands and why the chains just continue to create more and more brands.

People surely do not need any cigarette smoke but the German drama about the clouds of smoke is causing a haze. Therefore, my colleague Susanne Stauss put out her feelers towards Brussels and questioned the German legal chaos from a European view. In fact, the EU could still stop the right to smoke through a loophole - by means of the industrial safety act. This subject also gripped Anja Schmidt. Today, the designer suggests an "enjoyment area" as a concrete architectural solution for hotel managers. Smoking areas could easily be transformed by this… Read for yourself - an interesting idea!

Dear readers, you can also carry out some transfer work in the Internet with regard to videos. The latest study of an Internet research company in Hamburg reveals initial user trends: Which are the offers where users prefer Internet to television?

However, this Easter issue also offers reading matters for relaxation: The first hotels gained their first experiences in "Second Life," an imaginary Internet world, where you can earn real money and live life to the full. Let yourself be carried away… As 5 million users have done before you.

The small reports contain lots of colourful news… I wish you either Happy Easter in private with your family or - if you are in operations - simply sweet turnovers….

Yours, Maria Puetz-Willems
Editor in Chief

Any wishes? maria@hospitalityInside.com

Dear Insiders,

Hidden subjects dominate this issue: the emerging and useless deluge of hotel brands as we are demonstrating; hidden staff costs which some businesses are not aware of; and unnoticed court rulings that now suddenly allow commission payments for the placement of hired workers.

How an alpine hotel manager in Austria will be able to amortize his millions of investments will probably remain his secret for yet longer. However, with his business concept about the financial standing of hotel businesses, Werner Pauen is willing to disclose secrets - a further selection of the second "ITB Hospitality Day" in Berlin.

Eastern Europe is bringing an increasing number of mega partners to the scene: Now, Louvre Hotels and Warimpex have joined forces - Motel One and the Verkehrsbuero Group in Austria did so last week. In doing so, Austria distinguishes itself increasingly as a base for expansion to the east!

The industry is never at a standstill, not even three weeks after the Investment Forum, ITB and MIPIM. By the way: MIPIM is allegedly planning a second MIPIM in Cannes in October to compete with the Expo Real in Munich. The Rome Globe 07, announced as competition for the ITB, was a dolce vita disaster at its premiere: The trade fair visitors had to drag their suitcases over the fields in pouring rain; there was no taxi stand in front of the trade fair; the lavatories were locked in the first halls and the conferences did not start on time. Last but not least, the planned and supposedly integrated investment conference did not take place at the new trade fair area, but rather at the Sheraton Golf Hotel outside of Rome. Our freelance Elisabeth Lang was not amused!

We hope that you are enthused by the savings potential which the new technologies of Winterhalter make possible! The consumption of energy and water in the kitchen is a crucial cost factor. Today, on our sub website for industry know-how, the dishwasher specialist from southern Germany presents its two world novelties which were introduced at the Internorga in Hamburg for the first time a few weeks ago. Click on hospitalitySolutions in the left columns below "Related Sites"!

We wish you good business through the Easter season.

Yours Yours, Maria Puetz-Willems
Editor in Chief

Comments? maria@hospitalityInside.com  

Dear Insiders,

The EU hotel market has grown yet again: the boom seems without end. All the same, amongst the ten large chains, there's hardly any difference in relative performance. Only the Spanish - NH Hoteles - managed to push forward into MKG's Top Ten Hitlist last year.

But it would be even more interesting to see the lower ranks. There, it's to be expected, the real market changes can be observed. The success of Motel One should give pause for thought. This small German budget chain, up to know viewed with simple disdain by the Accor bed giant, sought and found a partner almost "over night" and now intends to expand into eastern Europe adding 3,700 beds as it goes. As Motel One is well placed financially, such movements really do have to be taken seriously.

Germany is making its comeback, the International Hotel Association GErmany confirmed during its annual press conference this week presenting outline figures for 2006. All the same, German politics continues to hound its hoteliers - and the disadvantages in comparison to their European neighbours are showing. IHA Chairman Fritz Dreesen denounced the state of affairs once again and rightly so, as I see it. All the same, the Association should also see itself set before a new political battle.

How nice, that there are still markets with lots of potential. Taking India as an example - and here we close our focus on this year's ITB partner land - you can see just how quickly markets catch on to niche concepts and successful ideas such as boutique hotels, and quickly translate these into profit. From a distance - and this is equally true for China and the Arab countries - it's fascinating to see how western European developments are repeated. And certainly the same problems should also be expected. The Americans, for instance, have seen a flood of hotel brands like never before in the last two years. The chains obviously view brands on mass as the best expansion strategy, as our report on one particular panel from the International Hotel Investment Forum Berlin shows.

For a long time the industry hasn't been able to show such consistently positive figures like those recently: Even Moevenpick and Marriott are shining with good operating profits.

This and more from the colourful hotel jigsaw today.
We wish you a pleasant week!

Yours, Maria Puetz-Willems
Editor in Chief

Comments? maria@hospitalityInside.com  

Dear Insiders,

The MIPIM in Cannes, a meeting for real estate specialists, is still in full swing. The International Investment Forum and the ITB are over. For years, the mood at both meeting places had not been as positive and elated as this year - even if some dissatisfied people said: "Now, we have only reached the figures of 2001."

Insiders could have been encouraged even more, if Barry Sternlicht of Starwood Capital - keynote speaker at the IHIF - had revealed more of his personal spirit of success. After an interview I had with him I know what this highly intelligent and analytically talented man is able to say in 45 minutes. Thus, his appearance in front of 1,500 industry experts was disappointing. He talked about five ways to success starting with a "c" and he reminded me of the former president of Relais & Châteaux who only wanted to defend the old patina with his own 5 credo "c's".

IHIF President Jim Burba should start thinking about how much more meaningless content his participants will have to put up with. During side talks, many critical voices could be heard and many were saying that they would not pay another 1,700 euros for this content-less event next year.

The ITB is more fun. The colourful people of the tourism industry come together to embrace each other, to celebrate, laugh and mock affectionately once a year. New record numbers of visitors show: the system works - and that for a visitors fee of only 40 euros at most. Now, let us enter the rumour mill: Swissôtel will be sold?! No. Is it true that daddy Sherwood and son Sherwood had a huge quarrel, and because of that will give up their jobs at Orient-Express? Yes. Ringhotels has a woman as new managing director? Yes, at least the prospect of one. She has not signed yet, but at least she wants to change the Ringhotel's ITB booth in 2008. Interhotel`s Managing Director Martin Ernst is changing to consultancy? Not confirmed. Dietmar Mueller-Elmau, founder of Micros-Fidelio and Hotel Manager of Schloss Elmau is tinkering at a new software for the hotel industry? Yes. Will be released in summer. Rezidor President Kurt Ritter still loves red wine, Steigenberger`s Managing Director Karl-Anton Schattmeier loves white wine, Accor celebrated his top figures with star-shaped snacks in the Sofitel Gendarmenmarkt and Kempinski served the journalists a standing breakfast.

In hall 7.1a, hospitalityInside.com and the Messe Berlin were prepared for many guests but the 200 chairs were not sufficient for most of the talks. The second "ITB Hospitality Day" was fully attended all the time. For the hotel conference on Thursday, there were more than 1,000 visitors - and thus made this event one of the three best-attended conferences of all 20 big ITB conferences! Here, I would like to thank all 26 speakers of and contributors to the Hospitality Day personally! Your important contributions to partly unusual subjects were the key to our success.

Today, we would like to publish only a rough summary of all the subjects; in the next few weeks, we deal with every round of talks in due depth. For those who want to call up the single presentations, they will find them at the website www.itb-kongress.de , under ITB Hospitality Day and then under the speaker`s name.

Those who want to get an impression of the event itself should click on the website of www.hotelpress.de : This specialist for guest newspapers for hotels issued a small ITB newspaper together with hospitalityInside.com for the first time - about every panel! You can still download or print your issue of every round of talks!

hospitalityInside.com will organise the ITB Hospitality Day in 2008 again. We are already looking forward to it. But until then, there are 50 new issues of hospitalityInside.com - every Friday with up-to-date news just for you!

Sincerely yours,
Maria Puetz-Willems
Editor in Chief


Your IHIF and ITB experiences? Please, write to maria@hospitalityInside.com