Dear Insiders,
It's not just the engine of the Middle East - Dubai - that's spluttering, it's the entire region. As a result of terror and political turmoil, entire groups of guests are staying away, and even the Arabs themselves are booking with increasingly short notice... The low price of oil is forcing the oil-producing countries to their knees - and the response from Saudi Arabia has been to present its Vision 2030, which places continued focus on tourism. Hoteliers find currencies a bigger problem: Shopping in Dubai & Co used to be an awful lot cheaper.
Dubai is bursting with construction sites again as the hotel construction boom continues unabated. Though as demand falls, ARR and RevPar are also slipping: The negative trend from 2015 has intensified in 2016. - Today an initial summary of developments in the region, in forthcoming editions then a more detailed look at the hotel industry.
Compared to the Middle East, Europe is currently doing well, even if the downward trend is apparent here too. But it's enough that even smaller markets such as Benelux or even just the Netherlands are benefiting from the butterfly effect of larger neighbours. 120 hotel experts met at the annual investment seminar in Amsterdam.
"A hotel is like a smartphone," Sonu Shivadasani claims. The former founder of Six Senses switched to the real estate sector and has today gone his own way with Soneva Hotels and Soneva Private Residences. In his view, luxury still means experience. Which is why he has little time for the diluted luxury chains. Baerbel Schwertfeger interviewed him following her visit to the model residence resort Soneva Kiri, Thailand, where guests enjoy being served sandwiches in the tree canopy - although they have bought million dollar villas. A lesson in luxury.
And in the news this week: Two new market analyses have been released, one with a global focus and the other concentrating on Europe; also a study on trends in future consumer behaviour. In Berlin last Sunday, the ban on letting apartments to tourists for short-term stays without a city permit entered into force. It limits room for manoeuvre for Airbnb & Co - at least in the cities. As a result, Airbnb has headed into the country and is making acquisitions among Austria's private landlords. There's even an official deal!
Pressure on the hotel industry is also falling from the OTAs. Booking.com has now introduced a chat function in real time: Those booking rooms can now communicate directly with the hoteliers. This is another opportunity and risk for the professional host.
Green Hotels are an opportunity: Learn about sustainability certificates for hotel real estate from those practising the philosophy. We will hold the corresponding seminar together with our colleague from hotelbau on 22 June in Munich. Details on the final issues and speakers can be found on our Page 1. Enjoy reading!
