Dear Insiders,

We are trapped between the garden fence and despair, with limited freedom of movement but far too much room for negative thoughts. Therefore, we are happy to spread the views of the German futurologist Matthias Horx, who has mentally rushed ahead 12 months from now. Until then, we will have learned to use technology differently, be more social, have voted Trump out of office, and have experienced smog-free cities in China for the first time. Thanks to corona.

Tomorrow, Saturday, we have "Earth Hour" again at 8:30 pm: For one hour, everybody is asked to turn off the lights and think of the planet. Corona has swiped away the topic of sustainability… But the virus will disappear, our climate problems will not, unfortunately. Therefore, we are showing how real estate experts and sustainably-thinking hotel operators at the ESG Conference in Frankfurt saw certificates critically, talked about energetic upgrades and cost-savings, and apparently showed a lot of trust in the cradle-to-cradle principle…

Stay positive: Sustainability will change the world for the better. This is future, just like the corona vaccine, which will be available in future. The wheel of economy has to start turning again soon. Therefore, it is important to slowly and carefully start the discussion about the right time for the "re-start".

Governments around the globe are fighting the virus with rescue programmes amounting to billions. If short-time compensation or loans are too late in arriving at companies and employees, corona will have won. Hotels, restaurants and cafés are only able to survive economically for a few weeks when the cash flow is cut off. Despite everything, Markus Luthe and Otto Lindner from the German Hotel Association IHA found calm words although they strongly criticised the government's programmes in their details: They fear that the industry is going to fall through the grid. On Tuesday, the lobbyists sent an urgent reminder to Angela Merkel and her ministers.

"Government money is not a horn of plenty," cautioned Martina Fidlschuster of Hotour Consulting the industry. As one of the most crisis-experienced consultants in the market, she provided a checklist for owners and operators, which helps them to prepare for their negotiations with the banks.

Corona continues to rage and is forcing angry employers to cut labor costs radically. Dismissing, granting leave or promoting? The latter is only done by private hotels, the chains execute the first. Sylvie Konzack has discovered blatant reactions. Marriott, IHG and Hyatt have reported how and where they will reduce labor costs: There will be dismissals in the tens of thousands.

As a growing number of hotels have their eye out for conversions, we asked our editorial experts about the legal framework in Germany.

However, corona might provide some other unexpected positive effects: Due to the crisis, Airbnb and Oyo are losing a lot of power, as well as OTAs. This would be a mega chance for the hotel industry to re-position themselves collectively, says Susanne Stauss. And one other positive aspect. Today, we have another non-corona article for you: the further development of Travel Charme Hotels.

In the light of the flood of information, we will be even more selective in future to provide you with a more compact overview. Please regard the second edition of our "snippets" as quick reading of mixed news. Our corona link list on page 1 has been refined and supplemented by new links. On the front page, two CEOs - Giovanna Manzi of Best Western Italy and Prof. Max Schlereth of Living Hotels from Germany -, tell us what they think about corona.

What are your thoughts about the crisis? Please write to me…

Yours, Maria Pütz-Willems
Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

Things are the way they are. Within two months, the entire world is now sitting in the same corona boat. Everyone is suffering the same thing – albeit slightly time-delayed. The outcry of tourism and the hotel industry and their call for state rescue aid is more than justified. From the hotel companies in our vicinity, hardly anything is seeping out. Officially, nobody wants to say anything at the moment.

But behind the scenes, the priorities are clear: secure liquidity, cut costs and secure employees! The latter is different from Lehmann 2008, but the current KPIs of the hotel industry in Europe are the same or even worse than in 2008. I listened to an STR webinar yesterday, which presented the latest figures. Almost all countries are following the same pattern: as soon as the corona cases start to rise, occupancy and RevPAR hit rock bottom within ten days. Recovery will take longer: While China's economy recovers rapidly, the Western world will still be battling the virus.

A slight "consolation" comes from another direction: scientists are discussing how long the individual measures should be maintained. There is at least some doubt whether major events have to be cancelled in order to fight faster and better. Corona will remain with us all despite the containment strategy – and will return in several waves. 30 days of closed borders, locked hotels and an economic life reduced to zero will not stop the virus from returning.

Our task is to inform you from many different perspectives and to provide ourselves with new background information. If we include medical and scientific news in the future, you can be certain that we will rely on trusted scientific sources in our articles.

In addition, you will find a reference to useful links concerning corona on our front page today. We will constantly be expanding this international link list and filtering it again so as not to overwhelm you. We consider all articles in this phase as "snapshots", because things may change on an hourly basis; therefore, from now on, each of our articles will receive a "time stamp" at the end.

This week, it has become much quieter in Europe. The prescribed states of emergency are beginning to have an effect on the public. That is why we are also looking at the current situations in France, Spain, Italy and Austria. Macy Marvel analysed the long hesitation and the abrupt turnaround of Prime Minister Boris Johnson.

And now finally something positive: Our survey among investors and funds have shown that almost all of them consider the corona "black swan" a seasonal event and are sticking to their long-term plans, even in the asset class hotel.

And finally something positive on our own behalf: We were so caught up in corona "fever" last week that we didn't mention in our editorial that hospitalityInside.com turned 15 on March 11! Our posts on LinkedIn for this anniversary have now reached about 10,000 people, and we would like to thank everyone for the many likes and the great comments about our team and our coverage. All this has only been possible thanks to you and through our subscribers! And just like on the first day, we look forward to fruitful discussions, collaboration, events and new subscriptions!

Today, we send a big thank you to our readers in 20 countries, in all offices and home offices around the world ...

There will be a life after coronavirus. More on that next week.

Yours, Maria Pütz-Willems
Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

Germany has a fever. High fever, probably higher than most coronavirus patients. As of this week, the whole country sees itself already in intensive care. Clear, reassuring words are what’s needed, but the German government is the world’s worst epidemiologist: no or no clear communication, hesitant responses and a tendency to leave patients to the mercy of economic forces - until last night…

Today we divide our – inevitable – reporting on the corona crisis into feelings and facts. One article contains more comments and lets the CEO of Hospitality Group from Hong Kong, Stefan Leser, speak, among others, together with our correspondent Massimiliano Sarti, who reports from an Italy on lock down. He reports on his experiences on his doorstep in Milan.

Four other news today deal with the effects of coronavirus in Austria and Spain, with corona in the increasingly restrictive Germany, with the annoying discussions regarding cancellations and the recovery of MICE business, and finally we provide current industry figures from STR and Fairmas for Germany as well as for China.

In contrast to last Friday, today I notice: Companies are increasingly turning inward, scenario testing between 'best and worst case' is in full swing. It's now all a matter of securing liquidity. And this in particular is a sore point for small and medium-sized businesses. For this reason, every "cry" from the industry, infected through no fault of its own, does good. Those cries are indeed heard, also in economic statistics and in the news. Yet this time, only determined government action can really help.

If you still believe in a time post-coronavirus: Beatrix Boutonnet has sat down with the accounting whizzes and has had the subject of real estate leasing explained to her in detail – a new possibility for hotels as well. And Fred Fettner shows why Swiss and Austrian tourism associations are missing a whole lot of marketing opportunities: They don’t really know what to do with the customer data they collect. Somehow this issue fits well with this week.

If you do not get emotional support from your doctor or family during these times: Treat yourself to a wellness holiday! There you’ll find "Social & Emotional Support".

Stay healthy.
Yours, Maria Pütz-Willems
Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

It is frightening to see how, within the space of just one week, educated society launches itself headlong into a self-made crisis. Since the ITB was cancelled last Friday, all hell has broken loose. Yes, coronavirus is also able to travel and is multiplying. But must all events really be cancelled? Of course, responsibility for employees is important. But so is not panicking: In Germany last night, there were 482 officially confirmed cases of corona-infected persons and zero deaths. To put this in context, in the current winter season, there have been 98,442 flu infections so far and 161 deaths. Yet nobody says a word about this.

Four editors from our team have been doing research since last week, have spoken to many people and companies and even went to Berlin – where not everything was cancelled. Others were suddenly live online with their presentations: The cancellation of the trade fair will give a significant boost to efforts to move things online.

We asked 11 hotel groups – from Accor to Yotel – how they react in terms of cancellations and what the current business situation is. Most are pessimistic and an IHIF insider reports that all IPO plans and real estate transactions have been rigorously put on hold. Standstill looms. "Yet cutting costs and hoping for the best is not a strategy," this insider criticises.

Others have sought out lawyers, which is why we asked a Munich-based law firm to shed light on the topic of "force majeure and legal consequences". mrp Hotels has also compiled tips exclusively for us for owners and operators on how to deal with the crisis in the right way.

Quietly, the ITB responded to a user's question on Facebook about compensation for exhibitors: Yes, it will refund entrance tickets and the advance payments for the stand rental fee. Meanwhile, we once again approached the responsible health authority in Berlin for the reason for the cancellation. We were told "the risk of the virus being introduced and spread is inherent in such a large exhibition with a high density of people and insufficient ventilation". There was no response from the ITB as regards that keyword ‘ventilation’. Now it can be speculated further...

The German Travel Analysis makes little sense this week. Its forecasts are based on "outdated" information from the end of January 2020. According to its findings, Germans have not lost their desire to travel... Speaking to my circle of friends though, things sound very different at the moment.

An American consultancy describes the extent of the global impact for quoted hotel chains. Let's be happy that 2019 was still a mega-year for transactions, and that Kempinski will be able to make massive investment in the new Mega Park Universal Resort Beijing in China – as manager of a total of over 6,000 rooms.

There is news other than coronavirus, fortunately. Romantik Hotels cancelled its conference on Monday in Frankfurt, but still told us why chalets, lodges and B&B hotels should now also be "romantic".
We won't be able to avoid following developments surrounding covid-19. But you should only get infected with the hospitalityInside "virus". 

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

Since this week, it is hard to remain calm when it comes to the coronavirus. Since yesterday, first cancellations of exhibitors and visitors at IHIF Berlin have become public, even for the MIPIM in Cannes. Amongst them are renowned names such as Invesco, CBRE and HRS. ITB will probably not be able to evade the pressure, especially politically: Today, Messe Berlin has an appointment with the German Federal Ministry of Health and the Federal Ministry of the Interior, Building and Community. The highly explosive question is: Will ITB be cancelled or not?

The fear spread by the "travel-keen" COVID-19 is no longer controllable. The silent companion, which multiplies at an incredible speed, awakens primal fears in humans. The cancellation of the companies shows: It is not so much the fear of the virus group that dominates, but rather the fear of being potentially put under quarantine. The consequences for economy and tourism have become clearly visible now: from tumbling stock exchange values of hotel chains over cancelled flights of airlines to adjusted travel routes of cruise ships.

Our two correspondents in Italy and Austria, Massimiliano Sarti and Fred Fettner, describe the events in their regions and they have gathered facts. The hotels in Northern Italy are experiencing massive cancellation waves, even if they are not located in the near proximity of the trouble spots. Experts say: The first quarter 2020 is lost from a tourism viewpoint.

The coronavirus has thus become a global game changer. Therefore, it dominates our today's edition. Nevertheless, we should be happy that Europe's hotels were still able to increase their asset values last year. And that owner, operator and franchisor will gather at one table for the first time and discuss their common goals for sustainability; this is new and good. And we gathered more news from the world of sustainability for you.

And more chains can be happy about good annual results: Barceló, Best Western, Marriott, Meliá, NH and Radisson Hotels. However, Meliá Hotels have no reason to celebrate the EU Commission's decision to sanction the group for depriving shopping consumers of better offers.

Will we see each other in Berlin? A lot can happen until Monday or Wednesday. Our editorial team is traveling to Berlin –"crisis coverage" is ultimately part of our job. Masks and disinfectant sprays are ready to go. The HITT Breakfast on Wednesday remains part of our Berlin week and will take place.

With the trade fairs in spring, we are already thinking about autumn again. Until 15 March you can still enjoy the early booking conditions for the "World of Hospitality" at Expo Real 2020 in October. You can also benefit from our networking at executive level, ask for smaller, larger and individual exhibition tables and seats. The new 2019 model has proven itself once again. All information about it on our page 1.

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

Coronavirus shows how volatile our globalised coexistence is today. How are hotel groups in China coping with this, how have they secured their cash flow? The occupancy rate has collapsed and stands at close to 1%, employees are in quarantine. Kempinski Hotels has closed just five hotels, Hilton 150, IHG 160, Wyndham 1,000. Fees are lost, management fees have been waived and suppliers are asked for understanding. Sylvie Konzack and I checked some chains and asked people who live in China about their experience. Today, we provide a snapshot of current events, with the end to this drama still not in sight; Covid-19 infects the hotel industry, tourism and the entire economy.

The global chains are currently presenting their financial statements for the 2019 year and in this context, the CEOs also reported on their concerns and measures in China.

One of the silent but very successful owner-operators in the industry is the Swedish Pandox Group. Its share price is currently on a tremendous rally. Even the daring Jury Inn deal in the UK in the opaque fight before the final Brexit decision has turned out to be perfect timing. A portfolio analysis by Macy Marvel.

After we analysed the state of the German wellness landscape last week, it's the Austrians' turn today. Michaela Thaler, the Managing Director of Best Alpine Wellness, the consortium with the best wellness hotels in the country, puts comparative figures on the table. The well-being pioneers did such a good job over the years that their concepts were broadly copied across the sector. Now, everyone is plagued by the mass commodity wellness – and could kick themselves.

In 2019, the German hotel and restaurant industry recorded an increase in revenue in all segments for the 10th time in a row. As a single destination, Munich can also once again boast strong increases in tourist numbers and turnover. Yet such records are confront the industry with the question of sustainability both on a large and small scale: How long such volumes be tolerated?
In this context, we will also briefly look again at the EU's "Green Deal".

And as far as our own activities are concerned, we can announce today to the HITT Think Tank in Potsdam on 22/23 June: Two more innovative software companies will venture into the "spotlight" of the first day of events. After Mews, Ireckonu and Sabre Hospitality, hotelkit and Robotise are now also addressing the questions of the industry. By the way, you can book the Spotlight Day independently! Get on board, and please tell your colleagues as well. Our article on page 1 has also been updated as well as the PDF of the programme of events. More news and names will follow.

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

Cast off for the 3rd HospitalityInside Think Tank on June 22/23 in Potsdam/Berlin! The motto is "Boost your Service Delivery" and our initiators and hotel executives will discuss with you how the digital world can become alive in your hotel. New: We extended the programme by SPOTLIGHTs. The next tech generation takes the spotlight: Mews and Ireckonu; and Sabre will present their new Hospitality Retail Tool. Those who want to talk to the young innovators and agile market leaders directly, are at the right place here! The SPOTLIGHT on day 1 of the Think Tank can also be booked separately!

Day 2 is reserved again for the Think Tank on the ship. We will cruise the Brandenburg lake district, and listen and discuss about whether and how AI will be able to increase the hotel's performance; and we will discuss the dissimilar requirements and challenges for established global chains and smaller, young branded businesses on their way to the "guest experience". In addition, retail and mixed-use scenes will play an important role this time. You will find all details on our page 1 today! Including programme, prices and booking link.

We are also following the trail of the future with the contribution about new forms of living. Serviced apartments but also nursing real estate are slowly becoming competition for the classical hotel industry. Susanne Stauss collected brand facts and asked experts if they have observed the shifting of investors' funds.

The wanderlust and desire to travel amongst the Germans still remains a benchmark for the travel forecasts in 2020. In comparison to the previous year, only details change. By no means are bankruptcies and climate discussions a reason to alter travel behaviour.

The German wellness scene has to change urgently. Today, it suffers extremely from hardware overkill, especially pursued by the Austrians with their great urge to build. Michael Altewischer from the Wellness Hotels & Resorts consortium and two hoteliers with critical statements about the status quo.

From our news: TUI wants to create its own PMS. Hilton's balance sheet for 2019 arrived, including cautious forecasts for the virus-infested year 2020; in Catalonia, a new group wants to establish itself in Germany, Austria and Switzerland … And much more.

Have fun reading!

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

20 years have passed since the wellness boom took hold in German-speaking Europe. It has become quiet around this segment; a segment that promises well-being, but tends to provoke frustration among hotel owners and operators. Some old problems have remained surprisingly simple: The spa and its staff are still not accepted as equal in the hotel and currently there is a massive shortage of personnel. Lack of training, inadequate provision of staff rooms, bad food and the wrong work clothes leave their mark. On the other hand, hoteliers like to show off with their mega hardware. After Tyrol, South Tyrol is now upgrading. This is also easier than trying to deal with the sensitive "software" in the form of another human being. Only those operating at the very top level make a profit. With the exception of these special companies, the scene has obviously not learned very much over the last two decades.

The two experienced wellness consultants Dagmar Rizzato from Germany and Karin Niederer from Austria have just published a new "Wellness Bible" in collaboration with Prof. Stefan Nungesser. In an interview with me, the experts describe their sobering experiences from the market. - We will continue the wellness theme next week.

Similar to the wellness hotels, international hosts' gaze is often set on the sky. And the Austrians as well as the Scandinavians have woefully noticed: It’s no longer snowing. This will also change the winter business, as Fred Fettner noted at the sporting goods fair ispo in Munich. Now creativity and jest are what's required. But the transition is difficult.

Meanwhile Poland is basking in business. The hotel industry is doing well, and it should stay that way until 2024. The airport is growing, more and more international brands are moving into the country, and now the niche of condo hotels is flourishing. Macy Marvel provides a summary.

Italy is now proving its transaction record for 2019 by numbers, the German hotel industry is losing its RevPAR momentum, but B&B Germany draws a positive conclusion. Kempinski Hotels wants to establish itself in many places as quickly as possible. And yesterday, HOTREC called on the industry to participate again in the biennial survey on OTAs.

There was room for the show on Monday at the "Hotelier of the Year" in Berlin – the German hotel industry's annual kick-off event at the InterContinental Berlin with 1,000 guests and two worthy award winners. A hospitality PropTech could also secure a place on the stage: Do you know of any novel ideas or young innovators from the hotel industry? Then they should apply for the award before the end of next week... The details on our page 1.

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

What can hotels and health care facilities learn from each other? A lot. And many things can even be merged, as the Sonnenhotels demonstrate. They originally launched their idea under the name Care Hotels, but Managing Director Karina Doerschel no longer uses this name. In addition, she fine-tuned the concept meticulously, hired a caregiver permanently for her hotel, and finally found a sensitive investor. Enabling families with people in need of care to enjoy nice holidays is a topic, which has to come out of the taboo zone for good.

The Sonnenhotel in Bad Rappenau shows that accessibility in a holiday resort does not automatically mean handicaps for healthy holidaymakers; everything simply needs a touch of wellbeing. We have followed Karina Doerschel's path for a long time now, and after her visit on site, author Sylvie Konzack is convinced as well: This woman, full of energy, optimism and knowhow, has found a very promising niche. Aren't quite a number of investors and project developers eyeing with niches these days?

Finding staff members for such delicate projects is a real challenge and this leads us to the topic of HR again. But in a very different way: The Belgian Patrick Vermeren, consultant, author and sceptic by trade, does not understand who made companies believe that their leaders have to be coaches too. Or that teams are able to manage themselves. For him, the so-called HR experts are victims of myths and skilled marketing methods.

Listening, enquiring, researching. Quite a few Eastern Europeans have done their homework in the last few years. At the 4th Hotel Investment Conference HOTCO in Budapest last week, it became obvious that the development experts see the difficulties and chances of their hotels/hotel brands in Southeast Europe very quickly and approach them much more unemotionally and numbers-driven than I experienced five years ago in Poland, for example.
However, Budapest is booming, all chains are knocking on its door – and even Budapest expert Stephan Interthal of Kempinski-Hotel, GM and 12 years' experience in situ, is convinced: There is still room for many brands and the flood of guests will not stop … As media partner of this event, we share our first impressions with you on our page 1.

Our news in the magazine: Tonight, Great Britain is leaving the EU; however, nothing will be changing yet for the travel year 2020. But in the hotel market, the gap between city and countryside has already started to widen. Compared to this, Europe's hotel industry has already experienced ten years of growth! The boom in Germany has also been driven by holiday apartments. However, this segment is in motion again: Oyo Vacation Homes acquires the holiday homes specialist Wolters Reisen, media report and Booking.com introduces its own classification for holiday apartments.

Austria, a rather small market for hotel transactions, also reports a new superlative: 2019 concluded with deals worth over 1.26 billion euros. And the Spanish Room Mate group also has positive news.

The year seems to be getting off to a good start for many. But will it continue that way? The coronavirus from China is already endangering the global tourism business… Our everyday lives is more often hanging by silk threads. This, however, puts everything into perspective again.

Wishing you a virus-free week,
Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com

Dear Insiders,

It might be astonishing and then not at all: Our six chains concluded the year 2019 happy and very happy – probably just like many others in the German hotel industry. But what do the six chains expect from 2020? Vienna House, Choice, Achat Hotels, Intercity, IHG, and Novum provided answers. Three of them expect moderate increases, two of them higher budgets. This mixture probably corresponds well to the industry's mood concerning the new year.

The new year would be fine, if there wasn't the problem with the employees. In Italy, even Bachelor graduates earn 20% less in the hospitality segment than average employees. In addition, hotel staff are not educated sufficiently. At the same time, businesses are burdened with significantly higher personnel costs than in other countries. In their HR studies, two renowned universities present Italy's misery in plain figures.

First stages of sustainable initiatives concerning individual Serviced Apartment brands give rise to slight optimism. There are investors and operators with different ways of thinking and acting – and today the first details about a new agreement model, the so-called Green Lease.

The travel year 2019 was bombastic again, as officially confirmed by the UNWTO this week: 1.5 billion people travelled around the world, which is 4% more than in 2018. And it predicts repeated growth of 3-4% this year. In other words: The industry needs to cope with its challenges – from HR to overtourism… The Austrians are a very good example for the fondness of travelling: They love to travel long distances by plane, but also stay in their home country. The current travel compass reveals everything.

The world's largest tour operator TUI will soon shut down its subsidiary TUI Italia, which does not seem very logical in light of the record turnovers in the country. The Austrian hotel group B(l)ackhome is pushing from Germany into the German-speaking countries and beyond now. And Sabre wants to operate its business from the cloud, in future – the Google-Cloud. Somebody seems to be ready to compete with WeChat & Co. This big announcement was immediately followed by a second piece of news: Sabre and Accor developed a common PMS for all 5,000 hotels; which is a novelty in this way.

And we are happy to point out this call for innovative PropTechs: Union Investment and the start-up platform GERMANTECH from Berlin are looking for the best PropTech in the hospitality industry. Are you one or do you know one? Then please apply today… The countdown has already started. Applications can be handed in until February 15, 2020. More details on our page 1.

Yours, Maria Pütz-Willems, Editor-in-chief

Your opinion? maria[at]hospitalityInside.com