Editorial
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
Dear Insiders,
As you read these words, the International Tourism Exchange in Berlin is still in full swing. From the abundance of much news, we have already reported on one in detail: the Investment Ranking of the hotel chains which contains many surprises this year. Yesterday, the Treugast introduced the ranking at the fair.
The International Hotel Investment Forum, which took place prior to this for the tenth time in Berlin, has once more been true to its reputation of only being a networking market - without laying claim to news containing content or even a higher level in the accompanying conference section. During lunch, keynote speaker Barry Sternlicht disappointed the industry's insiders in the same way as he had disappointed the majority of participants in the panels beforehand. Nevertheless, I shall be summarizing the main statements of the opening session for you next week. They confirm trends that are already familiar.
Two current pieces of news that became public during the IHIF were good "food-for-talk": Hilton is selling its Scandic chain to a group of investors unknown in Germany, and Accor was able to sell 91 hotel properties in western Europe, thus gaining back the operator agreements with modified conditions.
At the Investment Forum as well as at the ITB, tribute was paid to the founder of the former Forte Hotels, Lord Charles Forte who died last week. On Tuesday evening, his son Sir Rocco accepted the "Lifetime Achievement Award" of the Travel Industry Club in the Hotel Concorde for him in Berlin posthum. This honour was awarded for the first time. Exactly one year ago, Rocco Forte Hotels opened its first hotel in Germany. Unintentionally, our review with the motto "...one year later" matches the context of the hotelier`s family who always believed in its concepts.
Two weeks ago, Sir Rocco was also the keynote speaker at the annual meeting of the European Hotel Manager Association in Munich. Today, we also report about this congress.
On Tuesday afternoon at the Investment Forum, when Starwood introduced its new and also for Europe adjusted aloft-concept, InterConti had just introduced its new concept for the Holiday Inn brand, including first business figures. Today, we are only touching on this subject and shall pick up on it later again. Both events nevertheless show: The competition concerning design and profitability in the 3-star category has already started.
Until next week, after the ITB!
Yours, Maria Puetz-Willems
Editor in Chief
Comments? maria@hospitalityInside.com
Dear Insiders,
It was the last significant appearance of a big man: Dr. Herbert Ebertz. Clearly moved by the event, the Dorint founder took his leave this week at the Dorint plc extraordinary shareholders meeting. The real estate man, spoiled by decades of success, finally had to concede defeat. His words were marked by both candour and insight. And some were almost tempted to believe him.
Later, his responses to the questions and accusation of small shareholders showed, however, that he still hasn't learned his lesson. He simply refuses to admit that he personally shoulders at least part of the blame for the entire Dorint disaster. It was him, both in his double capacity and with his business ties to both his funds and the operating company Dorint, that landed the hotel group with the high lease charges which in December almost pushed the group into bankruptcy after four agonising years.
Ebertz' departure from the plc this week is more than deserving. The irony of the whole affair is, however, that he as "the Dorint Father" in the same moment will continue on as joint owner of the new commercial partnership acquired by the new Dorint Ltd. He remains, therefore "Mr. Dorint", despite a clear loss of influence. Behind the scenes, in his new team, he has a new and strong anti-pole: Dirk Iserlohe. Iserlohe had supported the spin-off from the very beginning, whilst Ebertz continued to search for an investor/buyer for the group. The future of the new Dorint Ltd will thus depend on in how far the old man shows himself capable of working in a team and whether he can put his ego behind the economic interests of the firm.
On the ups and downs of the hotels and tourism firms will be a lot to be heard in the upcoming week: The trade fair week of the year is just around the corner - beginning with the International Investment Forum in the InterConti Berlin directly followed by the world's biggest tourism fair, the ITB in Berlin. We're sure to see each other there? hospitalityInside.com will be present to greet and hear your comments on ITB Thursday, during the hotel congress "ITB Hospitality Day"! Come and visit us, learn about new trends and figures from the talk rounds! hospitalityInside.com Managing Director Michael Willems will also be available for discussion.
By the way, together with our hospitalitySolutions partner hotelpress.de, we will produce a little ITB Hospitality Day newspaper after each round of discussions summarising the topics of discussion and further ITB news. One more reason to pick up this specifically tailored newspaper from us! It may even inspire you to your own guest newspaper.
And because India will be partner country to this year's ITB, our journalist Baerbel Schwertfeger reports in this week's edition on brand new developments in India's hotel market: She was underway in India for six weeks over new year. The second part of her India talks may be read next week.
Should during the ITB any important news come to light, we will inform you immediately by "breaking news" announcement. Otherwise next Friday - ITB Friday - only part of the news from the ITB will be published. We ourselves will be there at the event and want instead to use every moment to be able to bring you interesting news and stories in following editions.
Have fun reading today! hospitalityInside.com once again brings you lots of further probing news in this edition.
On our website hospitalitySolutions, you will also find one more new company creating a name for itself with the quality of its products: Schwoerer Bauindustrie, producers of made to measure hotel baths.
So, till next week in Berlin then! I'm looking forward to it!
With best wishes,
yours,
Maria Puetz-Willems
Editor in Chief
Comments? maria@hospitalityInside.com
Dear Insiders,
The telephone is ringing off the hook, once again a flood of e-mails repeatedly clogs your inbox: unmistakable symptoms of the upcoming ITB in Berlin. The countdown for the world's biggest tourism fair has begun. If you're looking for a quick transfer from the airport: Germanwings is offering a helicopter shuttle service. Whatever happens, please be on time for the second "Hospitality Day": For the second time the editorial team at hospitalityInside.com has defined the contents of this hotel congress and has secured top international guests to discussions. We'll see you there then at 10:30 in hall 7.1a, room New York! Incidentally admission to the discussion rounds is free of charge to all ITB visitors. More in our "Event Promotion" column. - While I will moderate the event, our Managing Director Michael Willems will be at your disposal at the presentation desk in the auditorium.
Health and wellness will also not come too short at this year's ITB. For us, this has been a topic the whole year through. A trend study from the USA affirms the gut feeling of lots of hoteliers here: Wellness can increase RevPar, but not necessarily the net result. The subject of health is being discussed in Switzerland quite differently of late. With its first "Forum fuer Gesundheit" the Grand Hotels Bad Ragaz touched on a subject that many companies - amongst them hotel companies - have only perceived in passing: keeping their staff healthy and encouraging their health. The experts demonstrated that a great deal can be achieved using few means. The hotel industry talks a lot about "human resources" and "human capital" these days. The question is: When will the talk be put into action?
Trends are appropriate to two other topics today: Firstly, there's the high-tech irritations and high-tech gadgets in hotels - in terms of the latter, the Americans have a couple of years on us; secondly we describe a hotel with eight rooms offering luxury only of first class standard. Niche offers aren't on the cards here.
Back to the mainstream, however, we bring you the year end results from InterConti. Turnover and operative profit increased in 2006. This and much more in the news section.
Please, also look at hospitalitySOLUTIONS: Today, Micros-Fidelio presents its brand new offer! Should you need any relaxation after ITB, feel inspired by our "travel tipp for hoteliers".
Have a pleasant week,
yours, Maria Puetz-Willems
Editor in Chief
Questions? Comments? Any wishes for ITB? maria@hospitalityInside.com