Editorial
Dear Insiders,
The resort hotel business is experiencing a rapid change - just like the city hotel industry. There are lots of investments and experiments as new paths are being pursued. However, the secrets of success for resort hotels are more different than ever. Friendly service is a must, but that alone is far from being enough. Fred Fettner, our correspondent in Austria sheds light on the most recent strategies and investments of the hoteliers in the skiing destinations Kitzbuehel and Seefeld. They are refitting their hotels with conference rooms. The goal is to have them benefit from the MICE market apart from their main purpose as resort hotels. In the Burgenland region, a new thermal bath hotel where construction has just begun also counts on conference guests as a means to fill its beds.
The new, stylish Hotel Cerês on the resort island of Ruegen, which was visited by editor in chief, Maria Puetz-Willems, this week takes a different path. The "lifestyle-hotel" has created a very promising niche of its own with its extraordinary architecture.
The most recent resort hotel strategy of the Steigenberger Hotel Group starting in November aims at the traditional target groups of resort hotels, such as families, wellness guests and activity vacationers. We can already reveal some details about the contents - like improved equipment, extended F&B offerings and a resort concierge. Improvements are absolutely welcome, according to Maria Pütz-Willems who stayed at the Steigenberger Resort in Ruegen this week: There, the investment delay is more than obvious, rooms are sold by the cheapest distribution channels. The result: a Steigenberger resort on budget level.
Another topic leads us to Spain this week. There, the former Hotusa consortium has transformed into a diverse company with more than 2,000 hotels in 40 countries. Hotusa has long since been operating hotels owned by itself or via lease or management agreement. In the meantime, this segment is growing faster than the actual cooperative. Further short news and talks with insiders show international trends and tendencies in the industry. Next week, the editing team of hospitalityInside.com will visit Expo Real in Munich for you looking out for further interesting news.
Yours,
Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Dear Insiders,
Meeting cards, yes please, but without disagio! The hotel industry doesn't want to be left holding the bill for others yet again. Who profits when companies pay their seminar bills by credit card? Our conference specialist Ralph Langrock has tested the waters on the market. The mood seems to be changing - in favour of the Meeting Card!
Possible mood-killer, on the other hand, may well be the report from Susanne Stauss: Even travel agencies now plan to rate hotels! Should we be expecting the German Pensioner Association, the Butcher's Guild and the Union of Chiropodists to follow suit?
The hotel industry is also playground for architects, as can be seen at the Development Fair in London. Should you be visiting the English capital before the end of October, remember to make time to visit this extraordinary event. Entrance is free of charge!
Peninsula hotels is also looking steadfastly into the future. The small, fine collection, easily among the most luxurious in the world, paid 20 employees a whole year's salary in a unique initiative to ensure the best training prior to the opening of the Peninsula Tokyo. At the same time, Peninsula's own specialists in Hong Kong/Aberdeen were working on new ideas to improve the guest's stay even more.
We've described some of these innovations for you. Peninsula's commitment once again shows that quality only comes from knowledge of the market and of guest needs and that quality is not a commodity which can be obtained at will.
Our employment law specialist Hans Joachim Jungbluth also shows how politicians should be taking care of Germany's future potential: young workers in the hotel industry. Yet once again the law courts are having problems.
Of today's news: Hilton expands in Russia costing it its contract with Trident in India; Golden Tulip says goodbye to its master franchise partner in Great Britain and Crowne Plaza can no longer extend its contract in Cologne.
We wish you a successful week,
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Questions? maria@hospitalityInside.com
The turbulence on the financial markets could affect the field of hotel real estate as well. But nobody can foretell the degree of price reduction of the properties. Investors and consultants are still convinced that investing in hotel properties is a secure type of investment in the long term.
In the run-up to the Expo Real real estate trade fair that will take place in Munich in early October and will deal with the issue of hotel properties with increasing intensity, two German hotel real estate funds have introduced themselves to the public. Their initiators see a great chance for their products particularly regarding the growing problems of private equity financings. One of the funds concentrates on downtown Hamburg and a resort hotel on Sylt, while another one turns to institutional investors promoting investments in hotels at German B locations. Both probably make sense. With the right concept, A locations are sure-fire successes offering reasonable investment prices that are hard to supersede. At the moment, B locations take the industry's heart by storm, as the markets of mid-sized cities have proved stable and relatively unaffected by crises in the past.
However, the German funds still cannot expect rapid increases in room rates. After a calm year due to the World Cup, the discussion about rates has flared up again. Despite the fact that the country is becoming increasingly popular as a travel destination among foreign guests, room rates are lagging behind compared to the rest of Europe. Nonetheless: more and more Arabian guests have been turning their backs on the expensive British hotels and let the German retail business, medical sector and our "cheap" luxury hotels benefit from their strong buying power.
Additonal exciting topics of this hospitalityInside.com issue are the personal search for employees of Kempinski CEO Reto Wittwer, who decided to give top priority to the topic of "people", planned mergers and the report about the first Yotel in Great Britain by our correspondent Guy Dittrich, accompanied by a background interview about the Yotel concept.
Check it out with us.
Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Dear Insiders,
Now the budget flood is coming! Two similar concepts are announced in the Netherlands on the same day, while a Malayan airline boss boasts about a hotel concept on a 3-dollar level. Only those who have their own towel with them should dare visit a Tune Hotel. This little bit of fun only costs 3 dollars though.
The Dutch at least provide a bed in a box: the rooms of Qbic are to be put together like Ikea furniture - this would be the best solution for underutilised or old real estate that cannot be changed in terms of its floor plan. With Qbic and the second budget novum called CitizenM, guests are allowed to join the game and determine and programme the degree of light and colours of their room. Two articles about design and future technology pointing the way.
The description of the Lánchid19 comes from reality. Guy Dittrich shows that European cities like Budapest smoothly connect to the "western world". His detailed description makes us think that this project will probably be among the valuable and durable design objects.
By the way, Asians and Dutch want to expand with their budget concepts - on a large scale. Will these become tourist brands? The first "Marken-Tag" of the Travel Industry Club in Frankfurt last Monday showed the difficulties in changing from a product into a brand. However, the contributions also revealed that it is hard to find speakers who do not bore a demanding audience with their superficial contributions.
In contrast, the world of banking is quite demanding. So you should take some time to read the article written by our financial and real estate journalist Karin Krentz. She explains the positioning of the German banks on an international level - an important background even for the hotel industry!
One of this week's "minor" pieces of news should be specially mentioned: the hotel chain of Jumeirah from Dubai with a single European presence in London will soon be present on Mallorca as well. And maybe even in Germany.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Limitless thinking creates connections - and brings up new ways of access to "good old Europe". The Kuwaiti company of Refad already set a foot into Germany several years ago. Now, it is about to fetch a German COO to Kuwait. The Arab, regionally designed brand of Shaza Hotels has gained a foothold in Europe through its connection with Kempinski.
Germany has been benefiting from a particularly positive image boost since the Football World Cup last year. The German National Tourist Board confirmed that again in a recent survey. Travellers also rated German hotels absolutely positively, however, Petra Hedorfer, Head of the GNTB, wants a lot more interested hotel groups to join the association.
The supra-organisation of the EU always thinks as a whole. It indirectly forced HOTREC, the European umbrella association for the hotel industry, to pave the way for an all-European certificate of existing quality management systems in the industry. A rather dull but future-oriented issue for those who want to market their quality!
HTNG - Hotel Technology Next Generation - thinks across all boundaries. The association located in Chicago and hospitalityInside.com will start a collaboration beginning as from today that is to give you - dear Insiders - new ideas on the topic of technology. This association includes experts from the fields of hospitality and industry thinking about trends and whether they can be realised technologically hospitalityInside.com will be at that round table in future in order to find out next generation issues for you. So you know what investments make sense in future. We are very glad about this new transcontinental collaboration and express a very warm welcome to HTNG among hospitalityInsiders!
After Cornell University/The Hotel School, HTNG is our second partner in the US we collaborate with to keep up to the minute with the hospitality industry. Furthermore, hospitalityInside.com will continue to be active behind the scene for you: we will be participating in ExpoReal in Munich, International Hotel Conference in Rome and at the same time, we are about to start organising the third "Hospitality Day" hotel conference at ITB 2008!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Remarks? maria@hospitalityInside.com
The true dimensions of an announcement or an action are often revealed only then when one probes a bit. This is why several initially small bits of news turned into major stories this week. And they are all about brands - how to make them more attractive and how to place them more quickly on the market.
First, there is Accor: Europe's bed giant announces good semi-annual figures and in passing, the much hotter news that Sofitel will be upgraded and the old Accor brand Pullman will be revived. hospitalityInside.com whisperings revealed this already two weeks ago. But Accor's CEO Gilles Pélisson will not disclose before the end of October how the brands will distinguish themselves from one another. Should the financial media have correctly quoted the CEO after the press conference this week, he plans to position Sofitel on the same level as absolute top luxury brands like Ritz-Carlton and Peninsula. High-brow ambitions. Ambitions that could cost shareholders lots of money. As there is a small difference between luxury and luxury.
There is Hyatt - up to now a fairly closed shop of brands directed by the Pritzker Clan from Chicago. For the first time, Pritzker now allows foreign investors to step in - as an alternative to an IPO. The brand expansion requires higher investments.
Then there is Best Western: the hotel group reacts a bit hesitantly when hospitalityInside.com digs deeper asking whether the first lease businesses could become a new pillar of business. But Markus Keller, Head of the mother company Dehag, gladly explains to hospitalityInsiders the details of the new model, which differs from franchising in order to protect the Best Western brand.
And then there is Barceló Hotels from Spain: they are buying a UK chain so they can survive at home. A fantastic example for the cross-border amalgamation of continental/global problems and chances. And finally, there is the small village of Alpbach near Innsbruck in Austria, whose success originates from "thinking without borders" as well. It owes the increasing rates in the congress business to international companies mainly from Germany.
Today, hospitalityInside.com will hopefully grant to you again some new "insights" about markets and people .....
Have a great week,
yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Today, we will steal several glances into the future: do you believe that guests need 500 or 1,000 TV channels in their rooms? It is said that this even pays off for the hotelier! The Mandarin Oriental in Munich is daring enough to take the plunge into the unknown, and that as a trial run for the entire group. Two weeks from now, the luxury hotel in Munich will receive interactive and personalised TV.
Lindner Hotels also "play" a bit with the future. They are among the partners of the Fraunhofer Institute in Duisburg, which is creating a laboratory of dreams on its premises for the hotels of the future. The institute's project manager explains the interesting background.
Another thrilling story is "Mr and Mrs Smith": some of you might know this clever, multi-level marketing concept from Great Britain, which brought a good many individual hotels a good many well-paying guests. On the continental European and German-speaking markets, the idea is still unknown, although it has existed for some time. This market also fascinated a American family, which opened up a stylish design hotel in conservative Bad Ischl, Austria. An emigrant story - this time, Europe is the goal.
The general equal treatment act has resulted in many different perspectives over the past twelve months. In many HR departments there is a great feeling of uncertainty about what formulations and questions are still permissible in legal terms. This is why a labour lawyer has gathered 20 "sample questions" that are meant to help you react correctly.
Today's news consists of a mixture of interesting staff issues, expansion announcements and concept changes.
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
The flight attendant on the Air Berlin plane from Hamburg to Munich announced the snacks served: crisps - and popcorn "sponsored by Ibis Hotels"(!) .... Not a bad idea, advertisement in the clouds as it were; I had to grin at least .... The majority of the passengers chose the crisps.
The flights are full, the cities are full. It's the holidays. And it was accordingly quiet on the news front. Then came the reports from the battered stock markets and in the middle of the summer break, it all seemed a little more threatening. What the crisis means for the hotel industry and how it came to pass, is explained exclusively by Martina Fidlschuster. The Hotour Managing Director has done some extensive research into the topic and explains the complicated processes in plain English. A must read for all working in finance!
"A little too simple" is the impression provoked by the "Outlook" report by the Swiss Credit Institute UBS. The bank formulated its expectations of the hotel industry in a report, expectations which for an insider sound so banal that they're almost embarrassing. But obviously not all hoteliers have understood the core of their business, nor what the banks expect of them. UBS, at least, was taking the contents of its report very seriously indeed.
As it's the holidays, I took a small trip through South Tyrol's wellness hotels - through those implementing regional concepts with convincing authenticity. If you're already caught up in your wellness planning, I recommend the "colleague visits" in South Tyrol. The region and its wellness hotels lag behind Austria no longer. It's a shame therefore when such well founded wellness concepts are not convincingly and logically conveyed. And after a treatment à la Henri Chenot, my colleague Baerbel Schwertfeger was confused after being presented with appendix values for an appendix which she no longer has. Such moments often give me pause to contemplate what actually runs through wellness providers' minds after leaving their guests in such a state of unease. Whatever they think, it's certainly not professional.
Professional and light hearted are, however, the Hotel "CaricaTours". Take a little popcorn and just a moment for a little satire ....
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Investors are flooding the hotel industry: there are four times more buyers in the market than sellers. This remark and the most recent investment study by Jones Lang LaSalle Hotels correspond to the general assessment of asset managers and consultants: real estate is changing hands ever more quickly. In the process, operators do not always topple, but the agreements are often adjusted. German hotel real estate obviously holds great potential for an increase in value. Today, two articles deal with investors, investments and assets.
Increasing a spa's value begins with choosing the right concept. Those who want to stand out in the wellness market by offering medical beauty require convincing products. An overview of 14 brands - keyword "cosmeneuticals" - is to provide some orientation.
Private hoteliers often face the agony of choice when they have to decide on a marketing consortium. Historic Hotels of Europe are now intensely competing for new members - in bulk. The association only accepts groups. In Italy, we are dealing with quantities of an entirely different dimension: Italian "alberghi" add up to the fourth largest number of beds in the world. A statistical game of numbers.
Immerse yourself, too, in the news in brief and in our hospitalityWhisperings. Let's see what proves to be true after the summer holidays.
Have a great week,
Yours, Maria Puetz-Willems
Editor in Chief
Remarks? maria@hospitalityInside.com
Dear Insiders,
It's becoming increasingly difficult to attract and hold holiday guests. If this were otherwise, the Austrians wouldn't be building a visitor centre in a national park with a price tag in the millions of Euros. And Andrea Scherz, owner of the famous Gstaad Palace in Switzerland, is also not exactly swimming in Champagne. Both articles show from completely different perspectives what difficulties the tourism industry faces in its attempt to bring together innovation and amortisation. Whilst the Austrians have discovered nature as holiday potential, the Palace has no "exit" strategy should snowless winters persist.
In black and white, neither the hotel purchasers nor the hotels want to see the mutuality of their relationship. On the contrary, our article on hotel purchasing shows that the price is important, but isn't everything.
Dreams of high rates are spurned by the results of the Deloitte survey of European hotels. Every where is booming! Two digit RevPar increases confirm what the large chains have been announcing for the first six months of 2007 - once again the trend is upwards as current figures from Hilton, Starwood, Sol Meliá and the Hospitality Allicance also show.
Two interesting CVs: Rocco Forte has found a GM for his third German hotel and a well known Ritz-Carlton hotel manager moves to China.
We wish you a pleasant week!
Yours, Maria Puetz-Willems
Editor in Chief
Remarks? maria@hospitalityInside.com