Editorial
Dear Insiders,
Today is the first time that we've turned a complete issue into a special one. With this we want to create more awareness for special developments within the industry. Human resources deserves it. We're no longer talking about a shortage of skilled workers, but about a shortage of employees in general. The situation at the grassroots level is already dire.
But this has by no means reached the minds of politicians and association functionaries, and certainly not the minds of investors and owners. The latter ones simply shift everything to their operator. To be honest, we could fill five extra editions with HR right away, as there are so many hot spots at the moment. So let's just start today ...
The reports reflect studies that provide facts: about the snail's pace of employers, the growing desire of employees to switch their job and questionable employer rankings. They also report on new market ideas.
Operators, which offer new employees an apartment on top, clearly have an advantage. But that alone is no longer enough. They have to add a "value-added package". Payment above the standard salary is only the beginning. Competitive pressure is driving up the benefits for employees. And all this needs to be priced in ...
Investors must also know this, because they should not only sign contracts, but also ask themselves how paradoxical the entire situation has become: on the one hand, Germany's hotel industry is flourishing and blossoming, but on the other hand, restaurants and terraces are closing because of a lack of employees. This bottleneck prevents turnover and profits and does not increase the value of property. A bizarre boom.
Hoteliers/operators still have quite different needs, e.g. to face the digital challenges in human resources: There are so many mysterious AI tools around that recruiting is in danger of becoming an outright software party.
Digital + party. This leads me straight to our HITT Think Tank in Berlin on May 19/20. Although our event ship does not create any party mood, it will surely spread high spirits and a positive environment for creative thinking with contributions by critical non-hoteliers. We will tackle scenarios from the future from retail and other industries as well as transformation of HR into the digital age.
By the way, our sponsors are highly enthusiastic about HITT, and our driving forces are also happy to be on board. That is why we let them speak on our page 1 today. We will gladly take you on board as well! You will find all information and the registration field in this article and, of course, on the Think Tank website: www.hitt.world.
Happy Easter! hospitalityInside.com will return on Friday, May 3. The office is open again from April 29.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
So it's Brexit again in October. For the 3rd time. The hotel and tourism industry are worried most about Sterling depreciating further. Profit margins are already squeezed. In the first two months of this year, uncertainty, rising costs and falling earnings have already developed into a dangerous trio. Macy Marvel looks at the details, together with an assessment by Kate Nicholls, CEO of the hotel association UKHospitality.
We live in times in which anything is possible. Times in which a 24-year-old can turn his company into the world's eighth largest hotel group in just five years. Our author Sarah Douag interviewed Ritesh Agarwal, CEO of OYO, the founder of the Indian start-up seeking the change the hotel world just as much as Airbnb. In this six-page interview, Ritesh's responses exude self-confidence and superlatives, but his business model is clear and sober.
And what do the established chains like Choice and Taj have to say? That’s no competition! Sarah warns in her commentary of a second disruptor à la Airbnb. They are already on board with OYO after the billion dollar capital injection four weeks ago. For this reason alone, OYO is to be taken seriously.
And from India to China, to a cosy place by the name of West Lake. Today, many tourists are to be found at the huge lake. It was the place that Marco Polo stayed when he came to China. There, the explorer contemplated the world. Today, tourists stream into the mega shopping mall and into the robot hotel FlyZoo. Its creator, Alibaba, is at home here – on West Lake. On our page 1 this week, our China columnist and expert Prof Wolfgang Arlt describes the fascinating connections between self recognition and face recognition. Entertaining reading after the other challenging topics today!
Our news this week are also very mixed: The first quarter in the real estate and transaction market continues just as last year left off. Italians begin to use the smartphone increasingly for tourist purposes. Austria reinvents the wheel: With its next campaign, it wants to entice leisure cyclists and mountain bikers, mainly from Germany. Germany's largest hotel developer GBI now collaborates with a new EUR 500 million hotel fund. Orascom reports top results for 2018. And Design Hotels will be delisted at the end of the year; Board Chairman Peter Cole explains the background and the status quo of the consortium under Marriott.
If you would like to keep ahead in terms of digitalisation, you should register for our 2nd HITT, the HospitalityInside Think Tank, on 19/20 May in Berlin. The event on the ship is unique, the speakers of high calibre and the number of participants small – and there are still places free. All details on www.hitt.world and on our hospitalityInside homepage.
With our first-hand information and exclusive events, you remain fully up to date on what's happening in the market.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
It's all about dynamism and critics today: Germany's new power package, H-Hotels, opened its first hotel of its most recent brand this week – the Home.s Serviced Apartment hotel in Munich. With six brands from hostels to first-class hotels, the company now covers a wide market. Moreover, CEO Alexander Fitz and CCO Andreas von Reitzenstein love to have a varied brand mixture. The previous duo demonstrated its sales muscles. This is why Fitz dreams of a "hub".
By the way, this includes digital things: a small hotel of the H-Hotel group serves as a laboratory. Not only is Alexa put to the acid test here, but worst-case scenarios are staged as well according to the motto of "Our Wi-Fi can't handle it" ...
After reading these two articles, it becomes clear that future-oriented brands and digital things are inseparably linked to one another. And today, our interview with GBI's chairman Reiner Nittka is an essential part of this. The statements go hand in hand. The developer based in Berlin provocatively sums up his digital experience in hotel construction like this: developers pay the bill while hotel operators currently have the biggest benefit.
You can learn from others, yes! And we will do so with the HospitalityInside Think Tank in Berlin on May 19-20. Today, we introduce to you yet another two high-profile driving forces: retail specialist Dr Marc Schumacher, who was already Chief Retail Officer at Tom Tailor Group at the age of 34, and is now a partner at Liganova, a company belonging to the renowned Brand Retail Company in Stuttgart, and Bill Kanarick, who brings with him great expertise from the US. For more than 20 years, he accompanied the development of Sapient, a world leader in the fields of digital experience, digital marketing and technology, were he lastly held the position of Chief Strategy Officer. Bill joined EY earlier this year as Global Customer Leader.
You will find more information on this on our first page. We will update our programme at www.hitt.world during the day. The exchange of experiences on the boat on May 20, inspired by disruptive minds and people with international experience, will be very exciting. Have you already registered?
This video will show you what to expect. HITT will be held entirely in English, by the way.
In other respects, things remain dynamic and exciting in Russia. Despite all the sanctions, this market proves extremely resilient and continues to attract international brand hotels.
prizeotel's CEO, Marco Nussbaum, wants to save his own brand: he terminated the license agreement with Radisson. A rare event ... The formerly British MICE brand Great Hotels of the World now wants toconquer the continental European market, just as the white label operator of RIMC Hotels & Resorts is restructuring itself internally on a European level. With its current brand report, the German International Hotel Association confirmed the hotel market's massive success this week. However, the market continues to be flooded by projects and brands resulting in slower growth.
Here is wishing you a zestful Friday,
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The chatbots are amid us. Thanks to artificial intelligence, which is able to read along and "sort" our data and messages, these various virtual assistants are slowly becoming useful. How would Hilton otherwise be able to analyse 23 million customer comments per day? Already 20% of the guests' engagements are done via chatbot, said Hilton's CCO Chris Silcock in a discussion with Google and Sabre Hospitality in Berlin. But the investment seems to pay off: 60% of the customers are ready to pay more for personalised service.
I love to listen to experts with high-tech affinity, but some scepticism remains whether it will work out in reality or not. Therefore, it is pleasant to meet highly motivated start-ups such as SABA Hospitality, which invent target-oriented chatbots – and thus close gaps in the customer journey.
The German-Australian founding team behind Saba built a messenger system from the hotel's perspective and not from the tech perspective. The invisible butler answers guest's queries quickly and efficiently, it accepts bookings and scouts the guest's satisfaction. Push messages facilitate many things and also provide additional turnover. The first hotel in Asia has the chatbot in operation.
In the luxury world, the focus is still more on personal guest support than on chatbots at the moment. At the Kempinski Emerald Palace on Palm Jumeirah in Dubai, human eyes and ears still anticipate the desires of their affluent guests, as has always been the case in this segment. Around the clock, 800 staff members are at the guests' disposal in about 400 rooms, suites and villas. The guests live in a breath-taking copy of the Palace of Versailles, among a lot of gold, a sand beach and a three-star Alain Ducasse restaurant. Baerbel Schwertfeger took a closer look at the young palace.
Today's contributions symbolise the large gap in the industry: personal service versus chatbot service. If people are already willing to pay more for personalised service via Chatbot, they will also be willing to pay more for human services in ten years. Dear luxury hoteliers, please persevere, the slogan "served by humans" will become the benchmark of the next decade(s)!
From our news: Fattal invests into travel technology, citizenM obtained a cash infusion, Austria is working on a draft bill for reporting obligation and mandatory registration for sharing platforms; Turkey profited from the rebound of tourism in 2018; and our Digi News provide exciting topics from the vast digital world.
Enjoy reading!
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Deals get prepared at MIPIM in Cannes, at Expo Real Munich, they are made. This is perhaps the best way to differentiate between the two international real estate fairs. But you can't describe MIPIM very well. You've got to experience it. The familiar image of the "beach party" is correct, but it's not everything. I personally didn't take much from Cannes, our MIPIM-experienced real estate specialist, Beatrix Boutonnet, took more. That's why she wrote the article and I added the "newcomer" commentary.
No commentary is required when it comes to the decline of Trump Hotels. Macy Marvel lists which hotel is no longer a Trump Hotel, and for what reason, which of Trump's golf courses are losing money, and why the property in Washington D.C. is the only blossom in this de-flagging drama. Even their own brands have placed Donald's sons, the hotel makers, on the back burner. And who is to blame for all this? The Democrats and fake media, of course!
Florian Werner, head of the famous Arlberg 1800 Resort in Austria, surely doesn’t have much time for golfing and twittering. However, his new idea deserves serious consideration. With A3 Tourism Pearls AG, he wants to build a bridge to retreat for family businesses lacking a successor: they entrust management to professionals, but still retain their influence on the property.
Lateral thinking is the order of the day. That's why disruptors like Oyo immediately stand out. At IHIF, STR London depicted the chains' catch-up chase with respect to independent hotels. This week, Airbnb already talked about its appetite for the start-up from India: after only six years on the market, Oyo, the technology company with operator expertise, has moved up and ranks 8th among the world's largest hotel chains.
Chains are also gaining ground in Italy, but some independent companies are holding their own thanks to several successful years. In Germany, despite the 9th boom year in a row, not all of the top destinations have the same radiance. Wyndham Hotels is focusing on the EMEA region and noticeably expanding its presence.
This and more in today's issue, which we round off with a nice video of our 1st HITT Breakfast in Berlin two weeks ago. Between the end of IHIF and the start of ITB, 70 guests found their way to our networking premiere with a keynote by Yaning Liu, Diaoyutai MGM Hospitality, China. After all, it's all about digitisation, which we'd like to keep on everyone's lips via such events.
Further in-depth discussions will follow in Berlin on our seminar ship on May 19/20. Today, we present the details of the supporting programme. The first batch of registrations have come in, but there are still vacant slots. Exchange ideas with top-class colleagues and experts, learn from others, understand digitisation as a value creator. You can find the video and further details on our page 1.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
This issue was created in Cannes, where my colleague Beatrix Boutonnet introduced me to the MIPIM. I've never visited such a chaotic fair before. The fact that visitors here like to indulge in expensive champagne on luxury yachts under the warming sun probably ensures that they don't talk that much about it. You will read more on the topics of the fair next week.
We are still working on IHIF and ITB topics today. Susanne Stauss identified one trend: every operator will be doing everything in the near future. Brands, segments and investments are merging. "Soon, every operator will also have a residential brand," predicted an IHIF speaker.
Fred Fettner took a closer look at the travel analyses presented at ITB by IPK, WTTC, Deutsche Reiseanalyse, BAT and ADAC and, among other things, found out: Europe's tourist power is not diminishing, although Germany is not yet exploiting its full potential. Long-haul trips and cruises are overvalued, the USA and Turkey are the worst performers in terms of security. All that does not prevent the world from travelling on.
This makes it all the more interesting to learn from other industries how to capture customers even more professionally and subtly. That's why my second contribution from the m2C marketing to China conference in Prague at the end of January is about "new retail".
However, this week's major headlines were delivered by Kempinski – as reported via Breaking News on Wednesday: CEO Markus Semer and CFO Colin Lubbe are not extending their executive board mandates. Both are leaving at the same time. If you haven't read it yet, you'll also find the relevant information on page 1, and, of course, in the magazine as well.
In our news, you'll find numerous market news and further news from Berlin. Airbnb bought the last-minute app provider HotelTonight and is now also involved in direct hotel operations. And vice versa: the Arab Rotana hotel group concluded a direct distribution agreement with Airbnb for testing purposes. As mentioned above: everybody does everything!
You will also hear about the latest wellness trends, the 2018 balance sheets of Hyatt, Motel One and Maritim. And in our recently launched "Digi Talk" section, you'll learn about a&o Hostels, which invest lots of money in voice search and are convinced they will leave many competitors behind with this.
For early birds, we've got the following important note today: for both co-exhibitors at our Expo Real "World of Hospitality" joint stand in Munich next October and for participants of our 2nd HITT Think Tank in Berlin in May, the early booking deadlines end today! Please find further information at office@hospitalityInside.com or call the office under +49 821 885 880 20.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The real estate industry feels like a bee in clover, brokers are out of business due to lacking projects; nevertheless, there are many conversations in the background about portfolio deals and additional mergers – even in the medium-sized segment. This is how you could sum up the atmosphere at the 22nd IHIF in Berlin this week. Regarding content, the well-attended investment forum was seldom as weak as this time: There was almost no mention of the Brexit chaos, and when asked the question when the crisis will finally hit, most people just smiled cheerfully…
The ITB buzzed on Wednesday and Thursday; today's Friday – the third day of the fair – has probably been cancelled from the top managers' schedules once and for all. More about the two mega events next week.
Without Accor, there would be much less to report on today. Sébastien Bazin explained the "Augmented Hospitality" concept to investors and media, as we already reported two weeks ago – after the presentation in Paris. But there are more interesting details available and I had a few minutes for a personal talk with Bazin. With AH, the shift towards lifestyle business has also reached a turning point for the CEO now: Bazin has to deliver operative results. In order to do so, he would have to slow down, at least for a while. But this does not seem to be happening.
The hostel world is considered to be one of the next segments, which will be in stronger demand amongst investors. This is what it sounded like at IHIF, where a&o Hostels' CEO Oliver Winter frankly admitted, amongst other things, that he had no cash problems. Therefore, a&o is improving its design and is expanding faster, as he told us in an extensive interview beforehand. The Steigenberger brand also wants to double in size. The InterConti Berlin is getting a facelift for 60 million euros, and IHG happily signed the extension of the lease agreement with Union Investment ahead of time.
Horwarth HTL published the current report about the latest development of hotel brands in Europe. And STR questioned the travel behaviour of Britons and Europeans in view of the imminent Brexit.
This and more live from Berlin… Next week, I'll be visiting the MIPIM in Cannes. As slowing down seems to be uncool at the moment.
And so it's on to Expo Real Munich in October: The Early Bird deadline for co-exhibitors at our "World of Hospitality" ends in 7 days: Early registration still secures top conditions! See page 1.
The same applies to the registration for our 2nd HITT Think Tank on 19/20 May in Berlin: The early booking deadline for this will also end on 15 March. See page 1.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
With a diary full of appointments, our bags are again packed for Berlin. We also take with us new ideas and a new networking event: We will use the IHIF/ITB to encourage networking and exchange around the topic of digitisation with the first HITT Breakfast. Together with our co-host mrp Hotels, we have managed to secure an executive from Diaoyutai MGM Hospitality in China as keynote speaker.
We aim to keep communication going in our HITT Community through the entire year with such platforms, from one Think Tank to the next. Last week, a small group met at the University of Aachen where we held discussions with Drees & Sommer on digital real estate and research. Perhaps you'd like to use our 2nd Think Tank on 19/20 May 2019 in order to become part of the HITT Community? More on the contents and dates on our Page 1.
The world's largest travel show will celebrate tourism over a whole five days. As European Capital of Culture, the Italian city of Matera will enjoy the world's attention for the whole of 2019. Our Italian colleague Massimiliano Sarti interviewed Antonio Panetta, the President of Federalberghi Matera, on the effect for the city and what can be expected from the ECOC in terms of tourism. There is also a second ECOC: Plovdiv in Bulgaria. More on this next week.
A year go, Hirmer Group acquired the German resort hotel chain Travel Charme. Top management of both companies spoke with us on the first synergies, marketing approaches and plans for the "new face" of the resorts: The flagship will be installed in Bad Gastein, Austria. Everything will otherwise become more local, more authentic and more cosy... The men's fashion specialist Hirmer is serious when it refers to lifestyle in the common DNA.
With our high-calibre China expert Prof Wolfgang Arlt and his specialised Hamburg-based independent data research company China Outbound, we begin a more intensive partnership under the title "CHINA Inside". Today with the new "Radar”, which analyses Chinese travel trends. Travel to Europe waned in the 4th quarter of 2018. Yet if the Spanish flight data analysts Forwardkeys are to be believed, the trend is different though. "CHINA Inside" will become a fixed element on our Page 1 – and will in future provide lots of insider information, based on the 30 years of experience of our Wolfgang Arlt and his institute.
Prior to the investment conference IHIF, the large consultancies and brokers have made their statements on the hotel markets in Europe and Germany, as well as on hotel trends. And STR launches a new ranking on the room giants. Belmond, Marriott, NH and Radisson have this week published their financial statements for 2018: All are happy. This and more in today's edition...
We'll see you in Berlin?!?
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Surprises won't stop. Even Best Western managers in Europe had no idea of the Worldhotels deal. After all, it is a rather unusual thought that a chain-like group would buy a consortium. This gives David Kong a foothold in the upper upscale segment. Geoff Andrew, CEO of Worldhotels, is also happy because of his connection to the globally known Best Western brand brings him visible benefits: among other things, greater brand awareness and scalability through reservations and loyalty programmes. But both sides don't want to rush things. Both have time now.
Not foreseeing this current deal, Susanne Stauss has been working on a long interview with Marcus Smola of Best Western Central Europe in the last weeks. Now, it fits perfectly with the 14th brand and explains the other 13. In our "Digi Talk" column, Smola once again talks separately about the subject of digitisation.
Accor CEO Sébastien Bazin has little time. The excellent 2018 results gives him wings. Now he wants more revenue from the conversion of relationships. The brand needs to enter the minds of people! With "bold letters", like Coca-Cola and MacDonald's, he said yesterday in Paris. That's why there's a new Accor logo. The loyalty programme is now called ALL – Accor Live Limitless. So, with Accor, it's off to the new experience… A multi-million-dollar brand push is on the agenda, as well as more care for the company's employees. Losing 50,000 employees in a single year is simply too expensive. Bazin wants lifestyle and top talents – and is turning the revenue screws to achieve this goal.
The new HOTREC President, Jens Zimmer Christensen, who has been in office since January, has a lot of time. Well, in politics, you need a lot of patience. In his interview with Sarah Douag, however, he seems quite satisfied with the industry. But this is something you can really discuss on.
From the news: Accor, Hilton, Hyatt, IHG, Marriott, Scandic, and Wyndham have presented their balance sheet figures for Q4 2018 or the entire year. Reports shed light on the hotel markets in Greece and Lisbon, others predict market developments for the EU. In Italy, a court sentenced Airbnb to pay the flat-rate tax on short-term rental. And there is a lot more in today's colourful edition. And there is a lot more in today's colourful edition... Have fun reading, dear Insiders!
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Our think tank website, www.hitt.world, has been updated, so nothing stands in the way of booking for the day on the seminar ship in Berlin on May 19 and 20! Who can't decide for the day on the topic "Digitalisation - The new value creator" yet should read the testimonials on the website ... We are also very pleased that the following companies from the circle of premiere sponsors have confirmed their support for the second time: Sabre Hospitality Solutions, AccorHotels, Drees & Sommer, and Expo Real. We'll be presenting all of them again in a compact form.
Inspired by HITT, we shall be launching a new networking event at the upcoming ITB: the "HITT Breakfast". A Chinese key note speaker will give this premiere a special note. The event will be sponsored by the mrp hotels consultancy from Vienna/Berlin/Amsterdam; it will be reserved for guests with a personal invitation.
IHIF and ITB Berlin are indeed already in the making while the industry is currently transforming into a bee hive again. This can also be seen when looking at two merger reports this week: IHG acquired Six Senses on Wednesday, and I'm still puzzled. With its locations, creativity and quality, this unique luxury resort and spa chain is far above anything IHG has had to offer so far. President Bernhard Bohnenberger, who has been literally living Six Senses for 27 years, has asked the chain for "peace and quiet" in any event – no interference in internal affairs. Once again, this is something new in our industry.
There is consolidation going on in the German Mittelstand: Gorgeous Smiling Hotels buy 60% of Rilano Hotels. Two equal-minded companies have found each other simply willing to bundle solely their hotel power and benefit from cost synergies. A crystal-clear deal.
The term dynamics takes on a new dimension in discussions with the Chinese. Their life is controlled via apps and apps circle around the Chinese every minute. They have become indispensable helpers in everyday life. At the end of January, I spent two days in Prague at the new m2C marketing to China conference – and learned a lot myself. Thus, today, you will read an initial comprehensive summary about the Chinese "app economy". More about Alibaba, Tencent, WeChat, Mini Program, KOLs, digital payments, retail and consumer trends will follow – in easy-to-digest appetizers.
How do all these environmental signs in the hotel rooms actually affect the guests? The answer is quite simple: not at all! In January, a researcher from Australia amazed the hoteliers at the ÖHV congress in Austria with her results. Once again, a discussion about honesty in sustainability was kicked off.
Today, out guest authors from Horwath HTL and Trinavis Berlin say goodbye with the fourth part of the FF&E series – and provide hints for the right form of agreement. With this difficult topic, caution is vital in every detail.
Neither the tourism boom nor the hotel investment market will slow down this year. This is what the latest market analyses tell us. Germany expects its 9th record year in a row. Airbnb is tormenting itself in several countries. The rental platform has met the revenge of the cities numerous times – more specifically in Paris, where the portal is to pay a fine of 12.5 million euros, but also in Munich and Austria. A lot of staff issues, even including well-known names, round off today's colourful edition.
I wish you a week free of any hyper-dynamics.
Yours, Maria Pütz-Willems, Editor in Chief
Your opinion? maria[at]hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world