Dear Insiders,
Motel One's success story continues and CEO Dieter Mueller has no ambitions whatsoever to change anything at all concerning the strategy of this low-budget design group. Mueller and his wife Ursula Schelle-Mueller, Chief Marketing Officer & Design, still see a lot of potential through fine tuning of both the product and digitisation. How long does upgrading work at budget rates? Last week, I met the entrepreneur couple at the group's Campus hotel.
The story of Austrian hotels unfortunately drifts off right in the opposite direction. Surveys of Tourismusbank OEHT and Austria's OEHV hotel association drastically show: most hotels are barely able to survive. Only top-performing hotels were able to increase their results sustainably. 1,250 hotels ought to better disappear from the market. Now, the government is supporting financing once again.
The gap between theory and practice is wide. This was clearly the tenor at the first "Sustainability Roundtable" to which Invesco Real Estate had invited seven major chains. There were the practitioners, profit-oriented experts. And not all of them consider certifications reasonable, preferably relying on their own fair benchmarks.
A new European analysis based on the figures of 2016 defines winners and losers in tourism among destinations. The result was basically known already, but now it is supported by figures. Among other things, the new "snow sports hotel" category is to help ailing mountain hotels in Switzerland. The Airbnb start-up favourite is profitabl for the first time and aims at buying additional companies. In contrast, money is not an issue in a new, unusual start-up competition that everybody can participate in with their idea receiving expert feedback and know-how. And Four Seasons comes to the fore again with a few announcements. In addition, there are some interesting staff issues today – another colourful edition. Enjoy reading!

Ihre Maria Pütz-Willems, Chefredakteurin
Your opinion? maria@hospitalityInside.com

Dear Insiders,
As of January, Austria has been free of the requirement for rate parity. Yet the discussion at the annual conference of the Austrian Hoteliers Association showed that private hoteliers are still very much dependent on the OTA giants. Also, more and more young companies are entering the market. Fred Fettner looks at the persistent pressure faced by hoteliers.
As far as real estate is concerned, things are more relaxed. Even experts meanwhile hunt for hotels as they do truffles. The asset class with its high yields currently has an appeal like no other. Beatrix Boutonnet took part in the truffle hunt at the BIIS Annual Conference.
For Elisabeth Guertler, the grande dame of the Hotel Sacher in Vienna, staff are the diamonds in the relationship with the guest. Now she's venturing the leap to a resort location, Seefeld in Tyrol, and will attempt to create there what has been successful in Vienna and Salzburg: a real luxury hotel among the spa resorts. She's investing 23 million euros in the Astoria Relax & Spa Resort set to open in June. I met her in Vienna, we talked about the project and about true luxury.
Our correspondents bring lots of interesting news today: The earthquake in Italy now appears to have put tourists off in more significant numbers; Spain has recorded a super year with transactions and the Fitur International Tourism Fair in Madrid presented a number of local news. In France, the next hostel brand is on the up, as competition to AccorHotels' Jo&Joe.
The CEO carousel at NH and Carlson surprised yesterday: is it a sign of the imminent merger of NH and Rezidor – as soon as the latter is also acquired by HNA? We will report as soon as the facts are clear.
At hospitalityInside there are no "alternative facts"... Whoever I spoke to over the last few days with regards to Trump's media bashing, everyone is appalled by his claims. I wish my American colleagues all the best in making it clear to this political newcomer exactly where the line is. For this reason I'd like to add a link here to a notable letter to US media which set out the rules of journalism to Donald Trump three days before his inauguration.

Ihre Maria Pütz-Willems, Chefredakteurin
Your opinion? maria@hospitalityInside.com

Dear Insiders,
What figures did last year provide, what trends will everybody have to pay attention to this year? Current surveys show that Austrians will travel more in summer,  spend more and book earlier. The winter left the tourist destination Austria in a fix in December. January, on the other hand, will put things back in order with plenty of snow. Lots of Austrians believe in the persistent appeal of winter sport.
The Italians look back on a record investment year in the hotel industry and to a surprising development in the sale of Boscolo Hotels.
In Spain, chambermaids have long fought for fairer working conditions in outsourcing after many hotel groups deliberately terminated their contracts in order to immediately re-employ them through cheap service companies. Interestingly, a new protest movement known as Las Kellys has now grown up through social media.
Good news for hoteliers worldwide: Airbnb is by far not as successful around the globe as the portal would have you believe. STR has analysed hotels and Airbnb in 13 markets: In most of these, hotels achieved considerably better occupancy and room rates. Fitting here in our personnel news today: Chip Conley, the hotelier from Airbnb, has left the company.
Jean-Gabriel Pérès, the new CEO of Kerzner International, reported recently in Paris that he will not only push forward with the brands One & Only and Atlantis. We also have many small market news articles today in our news mix.
The mega industry meetings of spring are moving closer: "World of Hospitality", our joint stand at the ITB, gets a new design this year, introduced on our home page. The organisation of the "ITB Hospitality Day" is being finalised. New this year is our media partnership with IHIF Berlin, the International Hotel Investment Forum, which will also celebrate its 20th anniversary. Together with the IHIF organiser, Questex Hospitality & Travel in New York, we have compiled a white paper for this event; initial details today on our Page 1, further information over the coming weeks.

Ihre Maria Pütz-Willems, Chefredakteurin
Your opinion? maria@hospitalityInside.com

Dear Insiders,

The hospitalityInside team wishes you all a happy new year with good business in a more peaceful environment with positive news.

My review of the past year has become more of a comment: The centre points in the world of hospitality shifted considerably last year thanks to a wave of mergers. Chinese groups, Marriott and AccorHotels simply bought in size and dynamics in 2016. That was courageous, but not really innovative. Up to now, the top dogs have only adjusted their expansion targets at high speed. Private hotels and smaller groups should therefore carefully watch the top dogs. The consolidation among the giants provides new opportunities for the small. But for this, new courage will be required on their part!
2017 will bring movement, clear words and more togetherness, it is stated in descriptions of the Chinese Year of the Red Fire Rooster, which will begin on 28 January. It will demand and also encourage those who maintain an overview...
Here we are exactly right with our new China column: From today, Prof Wolfgang Arlt will provide regular contributions and an intercultural bridge to the Far East. He has been travelling to China for more than 30 years, he built up the China Outbound Tourism Research Institute in Hamburg and was recently appointed by the UNWTO into a group of 500 globally leading tourism experts. He will analyse both tourist market statistics as well as provide explanation with regard to the peculiarities of Chinese travel behaviour. To kick things off, he has chosen a soft topic: No Chinese food for Chinese travellers please!
Elisabetta Fabri, CEO of the Italian Starhotels, also goes into the new year full of courage: In an interview, she explains how she wants to expand outside Italy and will bring external investment partners on board in future. At present though, she is at loggerheads with her brother Francis.
The transaction results 2016 for the hotel investment markets Germany and Austria are now available: New incredible records were set with the last quarter! The results confirm the enormous pressure on capital to find a safe haven. In other news, hoteliers in the Brussels region have meanwhile thankfully received a tax gift, agreed at the end of December.
We also summarise the European mergers officially completed at the end of the year or which will soon complete. The new year also means lots of job changes, both in the international hotel industry as well as among consultants.
We look forward to again bringing you interesting topics in 46 current editions and two special publications in 2017. And as always, we will also keep an open ear for your ideas, concerns and problems throughout 2017.

Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com

Dear Insiders,

An exhausting year comes to an end, flanked by extremes, between real estate boom and terror, suffering people and the super-rich, frustrated voters and unpredictable statesmen. The year 2017 will not be easier – but I will worry about that in our next edition on January 13. And who knows, this year might indeed still have some surprises in store until New Year's Eve.
In 2016, one of the most frequently used words was "disruption". Therefore, at the end of the year, we are doing away with a misunderstanding: Airbnb and Uber are not disruptive businesses, for example, according to Clayton Christensen, Professor at Harvard, and the man who invented the term "disruption". Baerbel Schwertfeger met him in Vienna and quizzed him about innovation. A must-read for top managers today!
Thus reassured, we are able to turn towards the nicer things in life: One year ago, a family hotel opened in the Italian Alps, where people can celebrate Christmas between the 24th and 26th of every month for nine months of the year. At the Mirtillo Rosso Hotel, Santa Claus sits at the pool in August. Hotelier Stefano Cerutti explains the challenges behind his idea in an interview with Massimiliano Sarti.
Bayern Tourismus had another good idea: the Bavarian tourism association made "quiet times" bookable – at farms, in monasteries and in very peaceful hotels. Market researchers confirm: After the summer, sun & beach holidays, an increasing number of people wish for quiet and absolute silence, and letting go... More than 90 providers have already got together for 2017 – some of them even offer silence for free. "The cry for silence", a current trend.

With that being said, the team of hospitalityInside.com starts into its Christmas break.
We will be back in the office on January 9, 2017,
and the next edition appears on Friday, January 13.

For us, a demanding but also good year draws to an end. And you, dear readers, business partners, co-exhibitors and sponsors contributed to that in every single edition of the online magazine as well as at the trade shows and events. We are especially happy about the success at the Expo Real where the hotel industry has finally found its international "showroom" in the real estate and investment industry. The industry needs room for profiles! We are happy to contribute our part again in 2017.
And we would also like to thank our own staff members, the authors and translators, a core team of more than 20 people. Without their reliability and expertise, hospitalityInside.com would not be able to start into its 12th year.

We wish everyone a Merry Christmas and a peaceful New Year!

Yours, Maria Puetz-Willems & the hospitalityInside team

Dear Insiders,
Olivier Chavy has been CEO of Mövenpick Hotels for 100 days. Now, he talks of his plans and market assessments. Interestingly, he's open for everybody showing interest in the group and for groups which Mövenpick would itself like to acquire. The brand is currently giving itself a makeover, innovative ideas are being tested. Mövenpick is to become more relaxed and more of a lifestyle brand. He is also thinking about a second brand. In my opinion, he should leave this alone. After all, Mövenpick - the brand with a seagull in its logo – has made such a name for itself, that even German-speakers are misspelling "Möwe" as "Möve"...
In Italy, the market is again becoming more transparent and attractive. The country is recovering rapidly. More and more international investors are knocking at the door, especially in Milan. However, the hotel morsels are often too small for the interested funds and HNWIs. At the same time, Italy relies on many private owners who are often prepared to resist difficulties longer than a fund. Massimiliano Sarti on the current trend.
At the "International Hotel Investment & Design Club Forum" held in Vienna's renowned Hotel Sacher in November, conversation turned to the new upswing in Eastern Europe which - just like in Italy - is attracting international investment. Croatia in particular stands out and so too the resort segment. That will remain an issue in 2017.
Airbnb is increasingly being forced to wrap up warmer: Paris has now forced the P2P platform to post its revenue statistics. This will be the basis on which the company is then taxed. An alarm signal is also sounded from Switzerland: There, Airbnb is again pushing further into the hotel market.
Just four weeks ago, the German Airbnb clone 9flats acquired the competitor Wimdu - and shortly afterwards sold it on to Novasol. With this, Wyndham now also has a P2P platform in its vacation network.
News from the real estate world: Soravia Capital in Austria wants to dive deeper into the sector and to this end has set up its own Hospitality Development AG and seeks to attract investment with a new model. And an unusual experiment is being ventured by 81 luxury companies based in Paris. They introduced wealthy guests to the city through experiences which can't be bought with money. This way, they hope to become ambassadors for the terror-plagued city. Enjoy reading more… Until next Friday and our last edition for this year.

Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com

Dear Insiders,
The wave of mergers continues to roll over us: AccorHotels has now secured itself a stake in the Banyan Tree Hotels. But doesn't this torpedo the top hotels of Raffles and Fairmont in Asia? It remains an interesting field. Gaurav Bhushan, Global Chief Development at AccorHotels, answered our questions on an ad hoc basis yesterday.
The Chinese will also keep us holding our breath with their 'octopus' strategies. But they won't talk about them much. Prompted by the "China Market Day" by Pandox in Stockholm, we asked three China experts and a Chinese EHL student what Chinese companies think of investment outside China, about Europeans, about employees and about culture clashes... Prof Wolfgang Arlt from the research institute COTRI, Jileen Loo from CBRE and Cornelia Kausch from Pandox provide their insight.
The extraordinary reception of the new Elbphilharmonie in Hamburg also benefits the integrated Westin Hotel, though brings with it challenges of its own, in particular with regard to infrastructure. Last week, we reported briefly on the official opening - today we provide more comprehensive reporting on the choice of the Westin brand, the lack of a fine dining restaurant, the shortage of parking and the full-to-bursting visitor terraces.
The new "Lausanne Report", which is now online, focuses on future scenarios; experts at the World Travel Monitor Forum in Pisa concentrate on the Sharing Economy. This and more in today's edition.
Just three weeks until the end of the year. How many mergers/equity participations have we yet to experience before then? In the run up to Christmas, the question as to the rationale behind many company mergers poses itself.

Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com

Dear Insiders,
With the official opening of the Westin Hotel Elbphilharmonie Hamburg on Wednesday evening, the long wait of the Schoerghuber subsidiary Arabella Hospitality and of Starwood Hotels has finally come to an end. 13 years after the first design presentation was made, the hotel now benefits from a crazy storm of visitors to the new concert house: each day, 9,000 visitors head to the public "plaza" at the Elbphilharmonie, and some also find their way into Westin's "Bridge Bar" too. General Manager Dagmar Zechmann now markets "views with a room" instead of "rooms with a view" - thanks to this grandiose cultural monument, which is certainly one of the most stunning of Europe's landmarks. A first impression today, more next week.
"AccorHotels will pamper us," 25hours CEO Christoph Hoffmann and co-shareholder Prof Stephan Gerhard said of their new 30% liaison with AccorHotels: "We are already a lifestyle group". Just how these creatives will sit with the chain in future, and how the unique deal came into being – this is revealed in an interview today with the two of the original three shareholders, with their characteristic humour and with unshakeable confidence.
Whilst some silver-plate their brand, others cling just as hard to their original ideas. Susanne Stauss interviewed the operators Ruby Hotels, Rilana, prizeotel, Gambino Hotels and the resort brand Arborea - all German companies. And Germans are renowned for sticking to their brands. "I'm looking for a different type of return," they all say.
Macy Marvel returned from a finance conference in London with concrete statements from British hoteliers on the impact of Brexit: Already there are signs of considerably higher wage and food costs, and substantial price hikes for imported washing machines and fridges. All negative consequences of a weak pound. Worse though is the labour market: At Christmas, qualified chefs are lacking.
The Marriott brand package is now fixed: It will stay at 30 brands, though they are now sorted into four segments Luxury, Premium, Select and Longer Stays and then into sub-categories. Barcelona has finally reached the end of its tether with false promises and has slapped Airbnb and Homeway each with a €600,000 fine for listing unlicensed apartments. The two Asian rivals Shangri-La Hotels and Taj have now decided to pool their loyalty programs. And according to the World Travel Monitor, the strong US dollar has boosted demand for foreign travel among Americans.
This and more in today's edition which I edited yesterday from the top storey of the Westin Elbphilharmonie with a spectacular view of the harbour, complete with shipping horns and an impressive sea of light in the evening hours.

Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com

Dear Insiders,
Does your hotel property wear the label "German" on its roof? Then you will probably get a good price for it at the moment. If you are clever, you can try an off-market deal. Bidding processes are developing into fierce combats with inflated prices. This is not my opinion but rather what I gained from conversations with renowned consultants, lawyers and investors. The real estate industry is in its year-end frenzy and is speeding from deal to deal. Nonetheless, others remain cool: 2016 is not comparable to 2007.
Airbnb now offers two kinds of "experiences": those travellers got automatically and for free up to now, when they stayed with locals and these people told or showed them things to know or funny things in the neighbourhood, just out of friendship. Last Friday, Airbnb presented "Trips", a whole world of colourful experiences. But now, these experiences – excursions and activities – are labelled with a big price tag. By doing so, Airbnb risks its USP and drifts off into the exchangeable world of OTAs... Also because the business even wants to offer flights and other services in future. Sarah Douag struggles to keep seeing the uniqueness of Airbnb, even though its new app looks splendid.
Fred Fettner, for his part, put on an entirely different pair of glasses: namely virtual reality glasses. At the "VR-Summit" in Salzburg, he met known experts from the virtual world, who talked about entertainment with drama and eye tracking, amongst others. Disguised as Virtual, Augmented or Mixed Reality, this is all finding its way into tourism gradually.
Austria and Switzerland still have a lot of room for Serviced Apartments, was the message at another conference Susanne Stauss attended. In the world of OTAs, Booking.com, as of late, is also flirting with travel agents and is offering hotels the possibility of transmitting updated contents and pictures even faster now. This year so far, Asians travelled more than ever before. However, they are slowly starting to prefer beach holidays over city sightseeing tours as the last World Travel Monitor reports. In 2016, most Germans chose a holiday home in their own country, another study says.
In exactly four weeks time, it is Christmas. Please don't become breathless – as reflection is very important in a time where reality, reality shows and virtual worlds are merging increasingly.

Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com

Dear Insiders,
Brexit and Trump, terror and war are slowly having an effect: The expectations are decreasing everywhere for 2017; some places even show signs of stagnation. Whether World Travel Monitor or global business travel analysis or Brexit voices at WTM London last week, scepticism and caution are gaining a foothold everywhere – even if STR forecasts a quite strong year 2017 for the European hotel market at Deloitte's conference last week.
But, the entire environment has become much more fragile, everybody feels that – even if the Deloitte speakers say that the cycle will last 18 more months, at least in Continental Europe. But this was, as said before, an estimation before Trump got elected.
Therefore, the results of the fall survey of our INVESTMENT Barometer in cooperation with Union Investment are fitting: In the booming real estate industry only a small majority wants to take more risk to keep the yield stable, while nearly as many people surveyed prefer a lower yield including less risk... You will find the public evaluation on our page 1, our subscribers will find a more detailed version in the magazine and the whole evaluation will be sent to the participants.
Do you know MOOCs? Massive Open Online Courses? In the hotel industry, word has apparently not got round yet that businesses could include this – in most cases still free of charge – online advanced training in their own career support schemes. Top-class professors of renowned international universities are sharing their knowledge this way in the meantime. Baerbel Schwertfeger describes examples and names the most important platforms.
Only recently did I get a glimpse at the bigger picture in Berlin, where Uber's Managing Director for Germany answered to a small circle. At the end I was quite disillusioned: Here, "sharing" is only a disguise for a long-term, uncompromising capitalistic strategy for the domination of large market shares. Uber does not want to drive cars, but wants to make them drive autonomously – without redundant people… And this model is already scratching at the doors of the hotel industry and gastronomy.

Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com