Editorial

Dear Insider,

Adina did not choose Munich as the location for its first premium brand, but rather Vienna, Austria's serviced apartment stronghold, where many international competitors are already active. The sensational pool on the roof with its excellent city view gives it away: A by Adina makes the difference. There are also 120 stylish rooms in a Danube wave-like tower, in which the top apartments have their own terrace. It has more of a hotel feel than its more slim-service apartment house sister, which is also located in Vienna. Sylvie Konzack explains the difference.

But luxury is more than just a top location and chic design. Because if the acoustic quality in rooms is not right, it causes sleepless nights for guests or stress during dinner in the restaurant. Good architects use sound absorbers to "calm" the rooms. Kirsten Posautz uses examples and many subtleties to show that the interior design concept does not have to suffer as a result.  

Behind every brand is the passion of its inventors and designers. Europeans have become so creative in the last 30 years that their brands are being absorbed by the lifestyle-hungry US chains. And yet the giants have still not penetrated this travel-loving market - partly because the (German-speaking) middle class will not stop creating its own brands. 

Dear Insider,

Big changes always start small. The Austrians might be able to talk up the 0.9 percent fewer overnight stays in winter 2024/25, but when compared the revenue of hotels and holiday apartments, there's no hiding anything anymore. Vienna is a great example: In the last decade, the number of beds on offer in commercial holiday apartments has tripled and the number of overnight stays has increased even more massively. Hundreds of hotels have also contributed to this by turning rooms into self-catering serviced apartments. Service is a thing of the past, says Fred Fettner, describing a drastically changed market with serious consequences for the local structure.

There are small, subtle changes in Germany's MICE industry too: More and more international guests are flocking to events. Online and hybrid are out! Congresses and conferences are growing strongly, but revenue in conference hotels has barely increased. Sylvie Konzack on a segment that has more fun again.

We also enjoyed the 3rd part of our series on CO2 and offsetting - because Prof Willy Legrand is shaking up everyone's conscience today: "Stop outsourcing your climate conscience!" he demands. Compensation (the so-called "indulgence trade" - pay and forget) are the last resort. The right thing to do is to get to work and actively tackle emissions locally. Even small hotels can do this. Willy is happy to give specific advice again, even to the grown-ups.

Dear Insider,

You're probably already saving water at the hotel, are your guests too? If your guest showers for 25 minutes, the climate target has already been missed. Carbon reductions cannot be achieved single-handedly, sustainability expert Prof. Willy Legrand reminds us. Today, he vividly describes why and how guests and suppliers need to be brought on board - part 2 of our series on bringing down CO2 emissions.

The new "Green Stay Audit Platform" from HRS, with which sustainable hotels can increase their bookings, is also very important. You can think alternatively in so many ways. That's what a hotel manager did and designed a "jungle room" in a Swiss Lab Hotel. Anyone can spend the night in this and five other themed rooms. Instead of plants, there's a vertical garden in the room, for example. And the VR glasses are practically on the bedside table. Nicola Kübler took a look. 

European tourism will benefit from the hostilities between the United States and China, data experts predict. Antalya, Florence, Berlin, Brussels, Prague, Vienna, Milan and Stockholm can expect average annual growth of 10-12% in overnight stays between 2024 and 2026. The most important performance indicator this year will be occupancy. 

Dear Insider,

It's only May and M&A momentum is picking up. But Big is only buying Small. Big or not though, the prices are considerable, which eases the pain of the small. Marriott's current acquisition of citizenM and the IHG/Ruby deal tell us something else: The chain giants are buying lifestyle brands because they themselves have become old, immobile and boring over the decades. Now, everyone is rushing into lifestyle to secure demand and a foothold in the market. Accor hit on this trend early on and sailed away from the other chains around the year 2000 with the purchase of Hoxton and the founding of Ennismore.  

The powerful First Lady of the US hotel world has adopted a very self-confident franchise granddaughter who comes from these free-thinking lowlands (the Netherlands), loves to think outside the box and break standards. High heels meets sneakers. It remains exciting - and reminds me of the difficult and emotionally charged integration of the completely different thinking Design Hotels into the Marriott Group. Sarah Douag raises many other questions about this deal in her Marriott/citizenM article. 

Another question for senior executives today: Is your (variable) salary already linked to incentives if you meet the ESG targets? In Europe, almost all companies have switched to the new model; Japan is a positive role model.

Dear Insider, 

Trump is trampling the world underfoot - and is tourism a good kick too. From the three intensively researched opening articles this week, each full of facts, figures and expert commentary, we learn that everyone should remain flexible. Elastic like a rubber band. US hotels have already lost 2.1 billion dollars in revenue. People still want to travel, yes, but they are worried and there’s a rising sense of insecurity. A fifth of Americans have already cancelled their trips due to rising prices for flights and accommodation. Customs duties are causing even more problems for companies, hotel buildings are becoming more expensive, and the employee drama remains. AI is already far enough along to help you to re-filter your target guest groups. 

Sarah Douag describes the plight and gives tips in the article "USA bookings tumble". And in her further contribution on sustainable innovations, she shows that European CEOs in particular will maintain their decarbonisation targets - this is more sustainable than uncontrolled political action. The first companies are already reporting increased revenues following climate-related investments. Incidentally, there is a platform on which companies, cities and governments can voluntarily enter their environmental data.

Trump's campaign against the climate and ESG remains unbelievable. Since 2023, one Washington-based foundation has been listing which executive orders have caused global harm. The planned abolition of the DEI guidelines (for diversity, equality and inclusion) would severely affect the hotel industry around the world. Macy Marvel lists in detail what else can damage the industry. The first lawsuits against the US administration are now rolling in. 

Dear Insider,

Tariffs, taxes, prices, stock market crash... The bars on our stock market chart are also deep in the red today. A dramatic snapshot. 

In this global chaos, the newly formed German government coalition is giving the hotel and restaurant industry back its 7% VAT on food. This is good news for an overpriced country. However, the minimum wage will rise again in 2026. The hot flushes in HR departments are set to remain a feature then. Our political columnist Frank Tetzel in Berlin provides analysis.

Within Europe, more and more countries are adopting a tourist tax - such as the Netherlands recently. The money from holidaymakers is to be used to save the destination's splendor. London is now even considering a 5% tax. Hoteliers under high financial pressure are beginning to tremble: RevPAR could collapse, distorting competition. Sarah Douag has illuminated several countries.                      

Dear Insider,

Three percent RevPAR growth in global tourism is still a solid figure under the new geopolitical conditions, says "true optimist" Sébastien Bazin. The Accor Group CEO is also pleased that the development and brand plans will absorb the new travel flows from Asia. In his mind, he now finds himself increasingly flirting with entering the US market; he sees a goal. Globally, lifestyle hotels are triggering strong revenues; they are the new cash cow.

Bazin always seeks an exchange of opinions and answers everything, while most of the other CEOs on the stage at the IHIF EMEA in Berlin say the same boring things every year and then immediately disappear back to platform 9 3/4. Meanwhile, the Investment Forum, which has been hyped for decades, is losing its lustre and along with it a visible number of exhibitors and participants. Never before have there been so many gaps between stands. Susanne Stauss summarises the changes at IHIF and on the market. She also discovered an increased sensitivity among hoteliers. 

Dear Insider,

Only expect the unexpected. And then react to it: Ignore weak markets immediately and go full throttle to new promising regions. And move your employees with you. This is the somewhat simplified business model of Group CEO Dillip Rajakarier of the Thai Minor Group. This sounds like chaos, but it has something positive about it, because the Asian company acts agilely and quickly, bypassing trouble spots, expanding and reaping profits. In our interview this week, we both talked about such things, not much about figures, but of course also about the new Minor umbrella brand.                

You have to know exactly what you want: Luxury or Lifestyle? No, it's not the same, because figures show that the casual and informal leave the classic and elegant far behind. Macy Marvel has drawn conclusions from the expansion of the top chains.           

Dear Insider,

Brace, relax, profit and protest, share and pay back... These are the opposing pairs of words in our top stories today, in which contradictions form a new image. Developers and brokers in Germany are praying for growing transaction volumes, yet hotel financing simply remains difficult. Investors (Art-Invest, Union Investment), consultants (Hotour, Select Hotel) and banks (BNP Paribas) with their feet on the ground do not deny this today. But they, too, look with sorrow at other EU countries where access to credit is so much easier and yields are really taking off. 

Things have been boiling over again in Mallorca this week. "Stay home", demanded seven environmental organisations and anti-tourism associations in an incendiary letter to tourists, the perpetrators of overtourism. The pressure in the public opinion cauldron is rising, yet our interviewees remain cool but critical: Arabella Hospitality Espana CEO Francisco Vila, Managing Director Björn Spaude from Castell Son Claret, Rolf Seelige-Steinhoff from Bahia del Sol and the Mallorcan hotel association FEHM make it clear that the protests are not representative, that much is politicised and that growth generates positive synergy effects. 

Dear Insider,

The French government has now placed hospitality on its "shortage occupation list" and, among other things, is accelerating the hiring of undocumented migrants. The situation is urgent: Since 2021, there has been a shortage of 100,000 employees with 150,000 vacancies unfilled. Every country, city and hotel group now has the same trauma: Maritim and the Rosewood Amsterdam are currently jointly looking for 700 employees; the planned openings are just around the corner.  Both offer a lot of flexibility and perks, just like American hotels. But can this be implemented in practice? Sarah Douag brings us the details. 

Is the software I just bought any good? Every operator hopes so, but who can see through the IT jungle at the ITB alone? And now AI too... We see: Millions of dollars in capital are flowing towards the tech-giants, which in turn are investing again themselves in order to remain the masters of distribution. "AI" now consists of networked "agent tools" - digital helpers in specific areas. In his commentary, Martin Kemmer, a tech-savvy hotelier, warns his colleagues "not to be mere spectators of this development again".