Dear Insiders,

A summer break refreshes one’s strength. And strength is something we need more than ever in these crazy times. The realist in us sees new developments threatening our existence every week, the optimist in us designs the future and motivates the team. A difficult balancing act for managers.

Decisive entrepreneurs take action - without knowing the exact result, but trusting in their previous strengths. That's why there is no Excel sheet for what the Ruby lifestyle group decided Tuesday night. CEO Michael Struck, his management team as well as Ruby shareholders have agreed to a fundamental change of direction in Human Resources: Ruby will massively upgrade the status of its employees, introduce a 35-hour week, make everyone's working hours more flexible, allow workation in other European countries, offer a whole range of additional benefits and will finally give employees a share in the company's profits. Wow.

Personnel costs are shooting up. Obviously. "We don't have to do all this, we want to," Michael Struck says, commenting on this internal "epochal decision". He reveals the details in an interview with me. He is thinking far into the future. He doesn’t want to fail because of the current crises and cost increases, and rather wants to continue conquering the world, with Ruby Leisure Hotels.

Austrian hoteliers are currently thinking more locally. Some of them have discovered alternative energy sources on their doorstep. Some are already energy self-sufficient, others are on their way. Fred Fettner has found rural hotels like city hotels that already keep their energy costs well below the hotel average with photovoltaics and a wood chip plant. For some it was just luck, for others it was sensitive pioneering behaviour.

Hoteliers in gas-dependent countries are facing an autumn of worry, and in Germany confused politicians are only making the mood worse with their reformed Corona Infection Protection Act. In Austria, hoteliers have to hold their breath when politicians discuss whether to activate snowmaking systems in the winter...

Our reports take a look into both the past and the future: at the huge drops in franchise fees in the U.S. during the Corona years, at the new priorities of consumers worldwide, at the half-year financial statements of IHG and Hyatt and the crowdfunding of Falkensteiner... And in addition, after a two-week summer break, we also bring your the most important market and real estate news and personalia.

Yesterday's latest news: The expansive HR Group from Berlin continues its shopping spree. It has acquired the Austrian group Amedia Hotels. HR did not respond to hospitalityInside.com's question about the deal; however, an owner of Amedia Hotels confirmed the deal.

From now until Christmas, hospitalityInside will be there for you again every Friday, reliable as always, with a lot of background information and positive examples that will hopefully help you to keep the balance in everyday life.

Yours, Maria Pütz-Willems
editor-in-chief

Your opinion? editor@hospitalityInside.com

Dear Insiders,

The global news situation will accompany many into their August holidays this year, making it difficult to switch off from everyday life. America has chosen open confrontation with China, Putin continues his perfidious game with Europe and the gas, and the economic impact will be lasting. We're not out of the woods after the corona crisis yet either. The German government, faced with increasing pressure from corona in a third autumn period, has already presented another unclear, non-nationally anchored plan on how to deal with the obligatory use of masks, testing and hygiene measures. It's just embarrassing.

On the other hand, the partly euphoric figures on the recovery in the industry seem almost surreal. Market studies and forecasts uniformly underline it though. Even in the German A-destinations, which are heavily dependent on the international market, there are clear signs of movement again. The next international hotel chains are already back to the super year 2019, at least in terms of revenue, and the UNWTO is also coming up with unexpectedly high arrival data just in time for the peak season. Europe and North/South America take the lead in the recovery!

The desire for it to stay that way is large. Yet what the future holds in store for us is anybody's guess. What we do know is that companies can prepare for some challenges.

And so Hannes Antonschmidt, Professor of International Hotel Management, explains in today's guest article about new requirements that will affect significantly more SMEs from 2024 - including in the hotel industry. In July, the EU Commission adopted a new Corporate Sustainability Reporting Directive: tougher standards for the publication of sustainability reports! This can also already apply to single hotels! Check in good time whether you are subject to the new reporting obligation.

How to escape from the stress of everyday life? Log in to the new virtual space worlds, the Metaverse. Moxy is just now gaining new horizons of experience here: In twelve Moxy hotels from Shanghai to Tokyo, guests are invited to check in with their specially designed avatar at the virtual hotel's bar, sip a 3D cocktail, and later dance on the bed in their room or sweat in the fitness area. Sounds crazy. Several other hotels, such as Le Bristol Paris, the RIU Plaza España in Madrid or The Chedi Andermatt, are also feeling their way forward here.

So, discovering the world without a passport is one of the next big goals within the travel industry. It would be "virus-free" after all. Metaversum author Sylvie Konzack says today: Hoteliers still have opportunities in this new field to act and not just react.

The group most receptive to the Metaverse is Gen Z, studies have found. And they are not so different from their predecessors, the Millennials, as one might assume. With one difference: Instead of career and wealth, they focus on the social contribution of their work - and a healthy work-life balance.

With the latter in mind, this issue is the last before a well-deserved summer break!

The next issue of hospitalityInside.com will be published on 26 August; the office will be staffed again from 22 August.

Enjoy the summer!

Susanne Stauss
& the entire hospitalityInside team

Your opinion? editor@hospitalityInside.com

Dear Insiders,

So far, EU member states have shown themselves to be more united than expected in their dealings with Russia over the Ukraine war, but when it comes to the issue of gas, this new solidarity is beginning to fray with the familiar tensions bubbling to the surface. Meanwhile, the pokering with gas supplies through Nord Stream 1 continues. Will Germany receive 40, 20 or 0 percent of the gas flow tomorrow?

In the country known for its "Angst," this question, coupled with increasingly poor forecasts for global economic growth, is causing great anxiety.

In the meantime, more and more guests are cancelling their holidays following the horrendous bills sent to them by their energy suppliers. At the same time, fears of government-imposed hotel closures to save energy are sweeping the industry. Maria Pütz-Willems, Sylvie Konzack and I have zoomed in on this multi-faceted topic and have spoken with at-risk hoteliers, developers, and energy specialists. Given the complexity of the issue, we have broken it down into two parts today.

Other articles in this issue provide encouragement though: In beleaguered Germany, the number of new hotel projects has decreased as a consequence of the pandemic for many reasons. Thus, the new competition turns out weaker than expected. This is equally negative now as it can be positive in the medium term: Banks are helping to establish more resilient concepts with their increased specifications and more intensive checks.

The half-year results of Accor and Motel One are also encouraging. They confirm a trend that we are hearing from many quarters these days: Quite a few market participants are already picking up where they left off in 2019 or even outperforming them.

There is also positive news from Spain, where the hotel investment market reached unexpected heights in the first quarter of 2022; around 55 percent of transactions took place in the city hotel sector. Madrid and Barcelona are booming.

So, there are also reasons not to bury your head in the sand.

Yours, Susanne Stauss
Senior Editor

Your opinion? editor@hospitalityInside.com

Dear Insiders,

They're on their way: the first 4,000 workers from Tunisia. They will help French hoteliers and restaurateurs cope with the high season. They met their employers through a "dating portal" and they will earn the same as their French colleagues. Finally a concrete solution! Hats off to the French, who have been firm in taking action and are no longer dithering.

Sarah Douag sheds light on how recruitment in Tunisia was managed so quickly and contrasts it with the cumbersome and long-term model of the British. They are launching the biggest hospitality campaign of their lives to first find the best, then to build a dynamic "workforce" to improve the image of the industry... It all sounds very old school. If this is the solution, I want the problem back!

Accor is by far Europe's largest hotel group by hotels and rooms. Runner-up Jin Jiang has only half as many hotels, and the world's largest chain, Marriott, in third place, is almost a dwarf... Macy Marvel looked at individual brands in the top 10 chains in Europe in terms of the rooms lost or added. The result is clear: Strength is now only based on the strength of individual brands. And that means: The brand portfolios have ballooned.

The Italians have learned to remain modest. They are all the more pleased that investor interest is picking up again and that the pipeline already includes more than 100 projects. Massimiliano Sarti describes the roller coaster of desire and reality.

Figures from Forwardkeys show the havoc that recent air traffic chaos has wrought: three times as many cancellations and flight changes at airports as in 2019. No wonder holidaymakers are switching to the car and increasingly prefer to travel with motorhome or tent. Two-thirds of German drivers can therefore now imagine a camping vacation. What mobile people no longer want are outdated means of payment in hotels. The guest finds paying there to be much more stressful than at home.

Orascom and Scandic are sucking plenty of honey from their strong half-year results for a positive year, new GMs are hoping for new career opportunities, and real estate owners continue to sell or buy, all regardless of the crises.

Positive news yesterday from Expo Real: The fair has now confirmed 7 exhibition halls for October - after 5 last year, as well as a strong increase in demand from exhibitors, also internationally. Companies that are only now deciding on their participation can still join the World of Hosptiality.  

For the next two weeks, Susanne Stauss will welcome you here; in a team with Malin Flamm and Sylvie Konzack, the trio of editors will handle the next two issues before HospitalityInside goes on vacation on 5 August. My husband and I are already doing that today: We will thoroughly recharge our batteries during a longer holiday!

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

Why does Airbnb always leave a bad taste in your mouth when you talk about it? This company, now listed, is obligated to transparency but does not follow this obligation. The accommodation rental platform will withdraw silently from the mega market of China by July 30, 2022. A little post on WeChat has revealed it – a humiliation for the boastful CEO. He is losing about 150,000 listed accommodations…

However, he is happy about the fact that inflation is now tying families in distress even closer to his business. Many hosts need the income to get by economically. Airbnb still pretends to be the saviour of the people, but its activities are the reason for increasing rental costs for the population, as our Airbnb expert Sarah Douag reports.

What will the near future bring? Currently, it is difficult or even impossible to make a forecast in the German hotel real estate transaction market. Never before have I heard this from the broker and consultant scene, which has always been spoiled by success. However, the dramatically decreased numbers in transactions in the second quarter of 2022 revealed a massive turning point. This is sad but true.

While the madames et messieurs continue to discuss their ROIs and risk portfolios for hours on end, small operators such as Halbersbacher Hospitality are taking big steps in comparison. Arne Mundt's new mightyTwice Hotel in Dresden is a rock-solid, high-quality and most importantly, 4-star hotel, which has earned this category at long last again. Since July 1, he has also been expanding in Thailand. A combination scrutinised by Susanne Stauss.

The planned acquisition of the insolvent Success Hotels by the HR Group, which we reported in May, has been confirmed officially now. The good thing about it: All employees have been taken over; the old Success managers are the new ones. But HR's CEO Ruslan Husry does not know exactly yet, how many hotels and hotel projects he is taking over; he is still involved in talks with individual owners. However, it is certain that the HR Group has increased its number to "over 100" hotels and has become an important player in the German market now.

It is certainly clever to "purchase" employees as well with an acquisition. Because experts forecast that the shortage of staff members and mini jobbers will increase drastically instead. Hotel associations are challenging politicians more urgently, entrepreneurs are motivating their staff with shares, bonuses, or the hiring of retired colleagues.

And currently, everyone is under pressure, even the banks. The European Central Bank did a climate stress test on more than 100 banks: 60% failed! They did not include climatic risks in their credit risk models. This means that there are billions of losses lurking in their books…

Our other news today is about the "Inspired by B&B Hotels" – a new growth idea with private hotels, currently tested in Spain, as well as about the positive development of the hotel markets in Madrid and Barcelona. Other market and real estate news in the mix as usual as well as our usual personal particulars.

The news of the World Economic Forum relaxed me a bit: Its new Gender Gap Report has been published and it says: Reaching full equality will take another 132 years… For once, this is a piece of news that does not put us under pressure today.

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

Summer has arrived, and with it the panic that rising corona infections could again throw a wrench in everything. And how are the individual countries in Europe reacting? Just as uncoordinated and chaotic as the last two years. Sarah Douag shows which countries are again planning quarantines and tightening entry requirements.

So far, the summer has been a success story across Europe. STR also shows this with dream figures on occupancy and ADR. Industry expert Prof. Macy Marvel says: There's far too much optimism in that. Because profitability is only briefly highlighted. Indeed, Paris is the only one of the five major European cities to have fully returned to 2019 GOPPAR levels in April.

A deeper look and conversations with colleagues in particular have shown BWH Hotel Group Central Europe: The lack of employees is the biggest brake on revenues. That's why Managing Director Marcus Smola has started to build up a Human Resources Service: with concrete help for hoteliers. Headquarters could take on even more outsourcing services in the future. An update on the current situation, sustainability and digitisation, direct bookings and softbrands.

Dorint and Barceló Hotels are also breaking new ground: The German and Spanish groups co-market the partner hotels through their distribution channels. That sounds reasonable, both want more revenue that circumvents the OTAs. And this cooperation - a first for both sides - is where it is to remain for the time being, even though Barceló CEO Raúl González already told me at the end of February that even after the pandemic they still have enough power to be able to buy medium-sized groups in core Europe. From this background conversation, I add other important statements. Barceló has learned a lot from the pandemic.

The goal of the cooperation between the IHA Hotel Association Germany and the employer rating portal kununu is to positively change the image of the industry. The industry gets its own "Hotel" button on the portal, allowing it to differentiate itself from other hospitality segments. An experiment with an open outcome... In our April interview, IHA Chairman Otto Lindner had still wished: "I want us to have at least 50,000 to 100,000 ratings per year as an industry - measured by the 2.4 million direct and indirect employees!"

The Germans will also have to be patient in another matter: The Federal Cabinet has presented key points of the planned National Tourism Strategy for the first time. It's all hot air, all buzzwords and no substance. For this reason, we are not reporting on this for the moment and will wait. Hopefully the industry lobbyists won’t do the same!?!

And last but not least, a quick word about our HITT Think Tank last week in Berlin: 94% of our participants gave the HITT the mark "very good", the rest "good". A greater compliment cannot be paid to HospitalityInside as organiser and also to the impulse generators. So, the bar is set high for the next Think Tank. Save the date: 26/27 June 2023.

Under THIS LINK we have compiled more impressions of the current HITT - a potpourri of smiling faces.

Good luck with everything you set out to do! Till next Friday!

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

We too this week were anxious to see if our guests would be able to arrive on time for our HITT event. Everyone was there, after hours of queuing at Schiphol, flight cancellations in Germany and train delays. The same chaos everywhere! The general tenor: More and more people no longer want to fly or take the train. They prefer the car. This makes the idea of sustainability somewhat paradoxical.

Nevertheless, the will to do things differently was still palpable at our think tank. It was a lively circle with interesting exchange as participants showered the impulse-provides with questions: about the planned rigorous green real estate financing requirements, about the risks of sustainable hotel real estate, and about green programmes for franchisees. Architects love building with wood, but are already keeping a keen eye out for alternative construction materials. Consumers stress their green requirements, but old habits remain largely unchanged. In return, the job seekers hold up a mirror to the unresponsive employers: Some receive 12 job offers today. Is a job in the hospitality industry really desirable?

The 5th HITT showed: Knowledge about sustainability is growing, as is the realisation that the goals can only be solved together. We say a big thank you to our 12 world-renowned experts, our knowledge-thirsty participants, and our eight sponsors! Four editors from our team extracted interesting statements from the HITT. You all can find the article on our home page. Including a link to a first photo collection.

Save the date - for the next HITT on 26/27 June 2023!

Everything is in flux now, even in the luxury hotel industry. Wilhelm Luxem said goodbye to the famous Baur au Lac in Zurich yesterday after almost ten years as Director. I spoke to him about the changes in this segment. In design, it's the man-made, the real thing that counts again. So does the genuine, authentic employee. Just like the genuine, authentic employee. The luxury hotel industry is facing a prosperous age again, he says. Why? And what do you have to do for it?

Fred Fettner takes us down a completely different path and looks at the issue of cookies. But in the end, this too shows the new power of the consumer: They are increasingly refusing to consent to tracking cookies. This triggers a chain reaction.

Globally and across Europe, performance figures this summer are almost back to where they were in the 2019 boom year. The rush of travel is enormous. Nevertheless, patience is required: Bookings are often made just 0 to 7 days before arrival!

In Italy, my colleague Massimiliano Sarti sees leases disappearing; in Spain, Room Mate has filed for insolvency.  However, the project announcements in the news mix are not yet dying down, and the personnel situation also remains interesting.

We wish you a great week, not too hot and not too chaotic!

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

Hotels in Germany are slowly dying. And it’s in Berlin that it’s most visible. Conversions are in full swing, new projects are hardly possible. Construction costs make hotels unattractive. The fixed lease is coming under pressure. Renegotiations are taking place, with developers looking to kick out inconvenient operators. The merry-go-round has begun. And now, it's all blowing up in the industry’s face. Life is the best writer of crime stories. Read how investors and operators are responding to the acute pressure..

The Ukraine war has consequences in every country. That is why the EU now wants to help its member states. Unions are otherwise warning of the death of thousands of businesses this summer, including those in the hospitality industry. All companies with liquidity shortages are entitled to direct grants, guarantees, loans and credits with subsidised interest rates. Aid must be linked to increases in energy prices. We summarise the measures in France, Ireland, the United Kingdom, the Netherlands and Belgium.

Radisson CEO Federico González has no fears about the future. Business is picking up strongly almost everywhere in the Middle East and Europe - welcome back to 2019! González is also reviving old expansion plans, especially the 2019 co-branding with the Chinese parent company. The Jin Jiang and Radisson names will soon be emblazoned on 40 properties around the globe! The Chinese will flock again... It will be all right at Radisson... Will it? By the way, our conversation took place before the deal with Choice that was announced last week.

Meanwhile, individual news items show that the temperature is rising, especially in the financial and investment sectors: Accor just bought lifestyle creator Ennismore in September 2020, now it's already selling 10.8% of that same investment on to Qatar. The Student Hotels, previously perceived as a mini-group, secures €2.1 billion for international expansion.... And on we go with the 2019 hype...

The current summer season will make many hoteliers in many countries both sweat and shiver. We summarise the woes in Germany and Austria.

Heidelberg will become Europe's first circular city - finally a courageous project from this land of procrastinators. arcona Hotels, on the other hand, are looking for new ways in their microcosm: They now also motivate their employees with a new booklet that places emphasis on working together.

We round off this issue with our usual personalia and news from the market. On Sunday we’ll be off to Berlin and on Monday and Tuesday we are very much looking forward to our 5th HITT - another small anniversary in our 18 year history. www.hitt.world

It's set to be a hot one again this coming week; so keep cool.

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

It’s been clear since the beginning of June: The government in Berlin will definitely not lift the subsidy cap for the large and medium-sized enterprises! Yet it could, if it wanted to. hospitalityInside has seen letters between hotel entrepreneurs, industry association and politicians. The general tone of the policy running through all this correspondence is dismissive, rubbishing every argument put forward by the sector.

Yet Dehoga Managing Director Ingrid Hartges made concrete and sensible proposals for solutions. And not just once. She still hasn’t given up. Hoteliers and benchmark specialists provided support with figures. Dirk Iserlohe also continues to fight for his Dorint Hotels. He has written his 116th letter and remains frank - as one of the few entrepreneurs.

How about the rest of the industry becoming more productive as well? More committed, more concrete, louder? Pro industry? For this reason, the next step can only be to be more self-critical and to look for allies. Let's go!

"Away with it" was more what the Chinese thought when Jin Jiang this week sold the complete Americas business of its hotel subsidiary Radisson to franchise giant Choice Hotels. A coup, a surprise, and a lot of confusion about whether Radisson will even be able to operate globally in the future. Curiously, only Choice issued a press release about the deal; Radisson did not. And both CEOs declined our request for details. Sarah Doug found out much of the inside detail anyway.

The small, fine Atlantic Hotels Group presented its smart 'unique' brand last week in Kiel: Lifestyle under €100 for the young at heart, right in the city centre, with an indoor bakery and food locations in the neighbourhood. Great opportunities, low costs and still no rush to expand. The German parent Zech, a construction and real estate group, wants to top everything that has gone before: in location and quality, including the luxury Severin's brand and the upscale Atlantic brand. Kurt Zech and his two Managing Directors Markus Griesenbeck and Marc Rohe took time to answer my questions.

My colleagues have put together further news, individually and bundled into columns - about Smeralda Holding as well as about the latest distribution study, digital news, market news and personalia. Almost everywhere, the signs are pointing to change.

We are now in the final spurt to the HITT: only 10 days left until the Think Tank in Berlin. The programme is fixed, the impulse providers and participants are already looking forward to the intensive discussions among colleagues and experts. Yes, we all need to change the way we think and act. Such small, fine forums are an excellent help with this. www.hitt.world

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com 

Dear Insiders,

The waves of travel roll on in again. At Munich's main train station, passengers poured out of trains on Tuesday – among them many families and senior citizens with a lot of luggage. The station's large hall was packed. This is what alternative mobility looks like in Germany, fuelled as it will be for the next three months by a pointless €9 ticket offered by Deutsche Bahn. The ticket allows holders to travel the entire length and breadth of the country using the regional train network... Omicron and monkey pox will welcome the opportunity to mingle in packed local trains! At the same time, Lufthansa is already threatening to cancel 900 flights in Europe in July alone – due to staff shortages. It's going to be a chaotic summer.

According to a survey conducted by the German hotel and restaurant association Dehoga for the month of May, the gap between revenue losers and winners in Germany is widening. Approximately 23% of the companies report an increase of 20% or more. Whilst another 34% or so are struggling with losses of 20% or more. It remains difficult overall. But there are also highlights: Ruby Hotels told me this week, for instance, that it had made up five months of revenue in just five weeks at its city hotels, in addition to being 5-10% over budget.

Just take the example from Ruby as motivation! Currently things are looking up! Just as travellers race to make up lost holiday, the industry is also working hard to make up for the two lost years, gasping breathlessly into this half-year. By the way, this is not only how it feels in Germany.

Greece can almost sit back and relax. Hotel chains and investors are increasingly coming to the country again, and tourism, of all things, has become the driving force behind the overall economic recovery. 47% of the visitors in 2021 were already international guests! Now new hotel buildings are being approved again. And from the summer there will be 43 new flight connections. BUT: There is a shortage of 50,000 employees in tourism – and there is no satisfactory short-term solution to this.

Hoteliers in Central & Eastern Europe are experiencing a similar situation, as the HOTCO conference revealed last week in Budapest. After the pandemic, no one in the region seems to want to work for this "unreliable" industry; and the talent pools of neighbouring Eastern European countries are also showing themselves resistant to being lured. The performance of cities improved pleasantly, but at different rates and still lags far behind the European values. New buildings are cancelled, only conversions are possible.

ESG is now a hot topic everywhere. Because new profit paths can only be found through this change. The insight about this is growing: "For the first time, we've reached real momentum, a sweet spot, as it were, on sustainability. And for the first time, all stakeholders are paying attention: The pressure now comes from all directions, simultaneously," says Brune Poirson, Accor's new Chief Sustainability Officer. She moved from politics to the hospitality industry.

I met the passionate 38-year-old in Berlin in May and can only say: Pay attention to her words today in our article and also watch the new video featuring this feisty, determined woman: It may be a promotional video, but it provides a clear picture of exactly what everyone needs to implement in terms of ESG goals: Power, self-confidence, deep knowledge, clear language and the courage to make important changes.

This is exactly what we want to convey with our HITT Think Tank in two weeks. Are you already on board? Our event will take place entirely on and around our event ship. We are also sailing through uncharted waters... And looking forward to it! www.hitt.world

Yours, Maria Pütz-Willems
editor-in-chief 

Your opinion? maria[at]hospitalityInside.com