Editorial
Dear Insider,
Just 16 days to go until Expo Real in Munich. It's difficult to gauge the mood on the ground; there'll certainly be plenty of discussion. A great deal can already be deduced from today's topics and market movements. Let's get straight into it: The growth of the "Collection" brands run by the major chains is not as strong as one might think – established independent hotels are holding their own (after all, which of them would want to pay expensive franchise fees?) and are entering into partnerships. Preferred Hotels is expanding by 40-50 hotels a year. The family-run business Ueberroth knows how to deal with hotel-owning families. Lead Developer Philippe Weghmann explains which tools, partners and programmes are used to turn independent hotels into long-standing members.
At a conference in the US, Booking.com’s chief financial officer described himself as the "best friend" of small hotels: Independent hotels and small groups account for a third of bookings, whilst chains account for just 10 percent, he says. The situation is different in Europe, as the latest HOTREC distribution figures show. The OTA giant remains super confident: AI won't keep Booking awake at night – because after visiting five platforms, consumers only book with one (of their) brands.
Dear Insider,
You can’t help but come across speeches and articles on the subject of Branded Residences these days. The trend, which first emerged in Miami, is now reaching its limits in Dubai, the epicentre of the boom. On the one hand because of the US-Iran conflict, and on the other because the Residence building is no longer adorned with the names of hotels, but with fashion brands and football clubs. Because customers are currently no longer keen to travel to the Middle East, sales managers are now flying out, for example to Amsterdam, to a huge shopping mall teeming with people, where holiday homes can be sold quickly (just like in the days of timesharing?). An era of "mass residences" is beginning.
Many impulse buyers pay little attention to the details of the property. And above all: They sign long-term contracts. But what happens if the hotel brand pulls out? Who will offer this service then? By how much will the brand value decrease for the owner, and by how much for the buyer/customer? In which phase of the cycle do which stakeholders actually make the big money?
Jeff Tisdall of Accor One Living, Henk Meyknecht of the private equity firm SAH in Dubai, and Hans Peter Betz, a consultant specialising in advising property owners in the Middle East, begin by highlighting just how complex everything has become. Which is why they themselves are taking a highly critical look at the changes and the future of residence operators and brands, right here and right now. Sarah Douag has recorded everything in detail, including the stumbling blocks. A massive research project for you, dear subscribers!
Dear Insider,
Famous names such as Adlon Kempinski trigger a media storm, particularly when the planned sale of the hotel property falls through, as happened this week. Our finance and funds specialist, Beatrix Boutonnet, remains calm and continues to analyse this complex situation. Today, she is questioning the figures relating to the return on investment. And the timing of this plan, which remains rather odd. Meanwhile, Jagdfeld, the founder of the Adlon Fund, is already celebrating his second opportunity to sell.
Change of subject: Away with boring lobbies and empty workspaces! ATworld, a subsidiary of the investor Aroundtown, has turned a quiet mega-trend into a structured membership programme: At 2,500 locations (well-known hotels, hotel chains and airport lounges), traditional business travellers and digital nomads can find workspaces ranging from relaxed to professional, as well as other amenities, all bookable via the ATworld app, along with useful benefits for guests. This is more than just a matter of optimising floor space.
Dear Insider,
The holiday month of August brought little respite, neither on the motorways nor in our inboxes, and certainly not in the hotel sector. Hardly a week goes by without a bankruptcy, a scandal or some bizarre story. We immediately channelled our holiday energy into two major stories. Our (hotel) finance and investment fund specialist, Beatrix Boutonnet, takes an in-depth look at what would happen if the Adlon Kempinski were to be sold, either with or without the brand.
The bidding war over the naked real estate and the sexy brand has begun; neither the Jagdfeld family, as brand owners, nor the Fundus Fund, nor Kempinski are currently managing to sell the two together. I've also added a few provocative thoughts of my own to Beatrix's in-depth analysis. Yesterday, over 4,000 investors in the Fundus Fund voted for or against the sale of the property; the result will not be known for a few days. Whatever happens, we're sticking with it. This announcement that the property is up for sale set things in motion – and brings the matter to the public's attention.
Story 2 is really just a short story; the names 12.18., Lindner and the Berlin Dental Association’s Pension Fund (VZB) make it exciting once again. Investment Company 12.18 has filed for insolvency under self-administration on behalf of its parent company: Behind this are the associated companies. Susanne Stauss has raised the first important questions though. And her sense is that there's tension between 12.18 and the VZB.
Dear Insider,
This scorching summer has the potential to cause a major upheaval in the hotel industry. We are therefore kicking off today’s edition with a rather unusual call into the woods: "RevPAR is falling!" Dirk Iserlohe could only shake his head when he heard that hotels on the Baltic Sea were cutting their prices. Rates and RevPAR shouldn’t be going down – they should be going up!! By €20 to €30! The Executive Board of Honestis AG (Dorint Hotels) is speaking plainly, because it is intolerable that the price war is hindering quality and value creation.
The industry is facing massive change. The German hotel market is under pressure – partly due to the Revo Hospitality insolvency and the lack of transparency surrounding it. Owners are learning the name of their new operator from the press, whilst interested bidders are complaining about a chaotic data room and “communication bans” between the owners and the bidders. A confidential document shows us how insolvency lawyers can put pressure on landlords.
In general, we are seeing how individual operators in various countries are transforming themselves into European platforms (just as Ruslan Husry had planned). Operators bear the full operational and financial risk, whilst franchisors receive remuneration. The balance isn’t quite right anymore. Business models must be resilient.
Dear Insider,
Is it possible to think like an Indian and act like a German? In theory, yes, but the differences in culture and in how quality and profit are defined do tend to come to the fore – in the 'little' things of working life. Our first article today explores the structure of PRISM in a little more depth – to help us understand the size of this tech giant and what drives the hotel operator. What are 'storefronts'? This unusual method of counting (for Europeans) shows, amongst other things, just how small the hotel sector is in Europe compared with all other types of accommodation. So, they will acquire even more hotels in Germany than the 24 that PRISM confirmed this week. Yes, the contracts have been officially signed, according to the Indian PR manager. We checked the list of names to see if all the hotels were still available for booking.
PRISM's managers are open and answer questions in a friendly and polite manner. However, due to the IPO application, much of the information provided to the press is severely restricted, so we have turned to our own extensive network. We noticed a great deal of nervousness and some odd behaviour during the first 'blind transfers of undertakings'.
Suddenly, an auditor from India turns up unannounced in the lobby; ad hoc requests for system access are made; the hotel staff are frustrated; and those who have spontaneously been handed their notice are still trembling. And just as it was back when US chains first ventured into Europe, it is now the Indians who are struggling with German law, for example with German works councils and the GDPR. Our sources point to weaknesses in operational implementation – more than we are describing today. That’s why most people call it chaos, speaking confidentially.
Dear Insider,
Latest from the court: In proceedings in Amsterdam, the Pension Fund of the Berlin Dental Association (VZB) had applied for an investigation into the business practices and management of Grand Metropolitan Hotels Holding B.V. (GMH), for the suspension of the chairman and for the appointment of an independent person (a lawyer) to the board. The court granted this request yesterday. Both companies are linked through a joint venture.
GMH Holding B.V. announced the "split" yesterday in a press release of its own. The general consensus was that an agreement with the VZB was clearly no longer possible. Smura points out that B.V. is an investment holding company within the existing structure and should not be equated with the GMH Group.
And we're staying in Amsterdam for a while longer. This time, Dutch hoteliers have taken the city to court – because it is set to raise taxes relentlessly and consistently until 2031. The first step was to increase VAT from 9% to 21% on 1 January this year. Then there's the tourist tax on top of that. Already, instead of paying €100 for the room, they're paying €133.50, and by 2031 it will be €141. Crazy. The first impact is already apparent.
Dear Insider,
A ranking of hotel chains has piqued our curiosity: India’s OYO has moved up three places in terms of the number of rooms, placing it between IHG and Accor. OYO has grown by around 350,000 rooms year-on-year in 2025/26. How do you grow so quickly? Through takeovers, yes. But in this case, it's also due to a franchise model that is considerably less rigorous than the American one. Whilst Wyndham and Choice also place importance on room quality, this seems to be less of a priority for OYO. Our author, Macy Marvel, has uncovered this and many more figures on the subject. I’m sure we're all keen to see how a tech company can become a competitive hotel operator in the European market.
A lively discussion on technology and AI lasted two and a half hours at our HITT Think Tank in May. We learnt: AI is not a strategy, but a toolbox. And that the big chains are not neutral players in the data debate. Franchisees therefore find it difficult to familiarise themselves with the entire AI toolkit. Details like these is the spice in the data lake soup.
Dear Insider,
The Swiss countryside is as colourful as the Swiss hotel schools. The majority of them are owned by profit-making companies. There were also M&A deals in this segment. The number of students from Asia and Russia is falling; this is partly due to the strong Swiss franc and the relaxation of banking secrecy. Some hotel schools have also done themselves a disservice, for example through overly ambitious construction projects. Our author, Prof. Macy Marvel – who lectured at the EHL for 18 years – describes the changes and the current pressures facing these world-renowned educational institutions.
Charlie MacGregor, the founder of The Social Hub, loves disruption. He’s been thinking out loud where the revenue figures will be and what social communities and with what values will continue after his death. As well as two of his 21 "hubs" (hotels), he has also built a "Social Park" next to them in Rome and Florence. He sees a new "purpose" that brings locals and visitors together. The Social Hub in Rome is worth €13.8 million. How does it all fit together? Sarah Douag listened intently to this socially minded maverick.
Max Schlereth too once went his own way; he set up Derag Serviced Apartments in Germany. These have long been known as Living Hotels – and now this courageous entrepreneur is converting a historic building from the Nazi era in Hamburg into a luxury boutique hotel. In addition, a new upscale brand for living has been announced.
Dear Insider,
Please cool off – in the hotel! Seven hotels in the lovely little town of Mainz (near Frankfurt) are offering a cool double room during the hot weather, for just €55. It must be at least 33 degrees, and the weatherman must have forecast the heat five days in advance.
The German hotel industry has been smouldering since January this year. Behind the scenes, the sell-off continues as part of the Revo insolvency proceedings. The leading insolvency solicitors have everything under control – or so they believe. Four weeks ago, they announced five groups of bidders, but they still haven't revealed their names. The only thing that helps is media research. Thanks to the Federal Cartel Office, Motel One has now been ‘officially’ identified as intending to take over 10 properties. An interview in Israel reveals a new player entering the fray: the developer and investor Israel Canada plans to enter the German hotel market through its company “Brown Hotels” – via five operating agreements and one property (four of which are H Hotels from the Revo estate), according to the newsletter tageskarte.