Editorial
Dear Insiders,
Marco Nussbaum, Chief "Enabling" Officer of the prizeotel budget design group just hired two "kids" and made them responsible for human resources. The first measure of the 24-year-old was: good-bye to old-fashioned job ads and hello Gen Y speech! This is why prizeotel is attracting its future employees solely with emoji language and via social media. A real move in the conservative hotel world. Please tell me how long it took you to decrypt the new advertising slogan using emoji wording. Good luck!
I brought an article about Emaar Hospitality along with me from Dubai, where Olivier Harnisch has been CEO since March. Compared to Europe he seems to have a pretty laid-back situation: in terms of expansion, he has the green light to take quick measures. His first action was to modify the management agreement model that is typical for the industry. He is looking for investors.
Italy's hoteliers are eagerly awaiting a more efficient and decisive government that would grant them certainty in terms of legal decisions and actions. Business has been performing well in 2017 so far, but basic nuisances like Airbnb, rate parity, taxes and job vouchers are still unsolved. At the Federalberghi annual meeting the hoteliers even wore defying t-shirts to get across their message.
Individual hotels in Vienna are significantly smaller than chain hotels, but more profitable as revealed by a new survey. Gambino hotels opened their first budget hotel under their own brand – a small gem with an experiment: F&B is reduced to a new snack machine that can be operated solely via an app. Those who wish to insert money will starve right in front of this metal box.
AccorHotels is hungry for junior employees: the chain is looking for young people willing to take on a three-year vocational training programme in several brand hotels. A smart idea of the expansionist multi-brand group. In addition, we received a letter to the editor regarding our article on the sustainability year of UNWTO in our last issue: a call to attend more to this topic.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Pierre-Frédéric Roulot, CEO of Louvre Hotels Group, is successfully exporting French savoir vivre to China and wants to bring Chinese flair to Europe. "We have a number of things planned, most of it in Asia, but also in France and Germany," he says. Yet the parent company, the Chinese Jin Jiang Group, wants to wait until autumn before making its decisions – until the elections in Germany are over. A year ago, he spoke with Sarah Douag, now he provides further insights into strategy and market assessments.
B&B Hotels Germany will upgrade its breakfast offer and will make fine adjustments in other areas too, optimising its product and shoring up profitability. The increasing competition in the budget segment – in which many chains already have a stake, some of which have long since no longer provided budget services – demands a more sensitive observation of market and customer behaviour. Managing Director Max Luscher with news.
A land full of opportunities in Georgia. A country blessed by nature and rich in attractions, Georgia, which is roughly the size of Austria, managed to triple the number of visitors it attracted last year. This positively screams for more hotels and rooms, though critical voices are also heard. Macy Marvel with current figures on the hotel landscape and opinions on market potential.
UNWTO has declared 2017 the Year of Sustainable Tourism Development. Sounds good. One academic sees an absolute contradiction here though: After all, the point of the UNWTO is to encourage growth in tourism. Yet at least it sounds like the UNWTO is turning attention to the issue. Fred Fettner's article leaves behind an odd impression.
People meanwhile show no signs of stopping travelling – and so a new study identifies the profiles of the next travel generation. Dubai has announced a new 1.3 billion euro destination and entertainment project - the Marsa Al Arab. Unfortunately, this is directly adjacent to the Burj Al Arab, which in my opinion places the exclusively of the pearl necklace of Jumeirah Hotels in jeopardy.
After the successful start for the first Capri by Fraser, EMEA CEO Guus Baker continues to focus on Germany, France and UK. The German recruitment agency YourCareerGroup has begun to establish an employer portal; we provide details. And HRS has set up a new "Market Place" for hotels and travel managers.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Is the photo from the Hotel Provocateur in Berlin sexist or creative? Will it bother developers and investors or not? The half-naked woman in leather and the grumpy-looking man have prompted us to carry out a small survey: What impression does this picture have on you? The marketing strategists of the recently opened boutique hotel will be pleased that we too contribute to the conversation surrounding the hotel name today – Mission accomplished?
The hostel panel at the ITB hotel conference was an audience magnet; for this reason, we asked Generator and A&O about the profitability of this segment. Invesco Real Estate and Treugast comment on the hostel boom, Max Luscher from B&B relativises it.
Although the skiing season is already over, at least in Austria the discussion surrounding it continues. Whether the marketing methods of American cable car and ski region operators can be copied? Can ski and wintersport fans be converted into summer mountain fans by giving them a season card and extras? Since the glaciers are melting, marketing too must evolve in these matters. And fitting here: In Austria, the first Chinese delegation spoke at a congress in the hope of attracting experts and cable car operators for their aggressive wintersport expansion in China.
For a week already, flights can also be booked via AccorHotels in France. The hotel chain takes off the gloves. Sarah Douag took a serious look and is moderately impressed.
And in other news: Dehoga has let the lawyers clear up as regards improper use of stars and the EU subsidises a study on the health-related aspects of hiking and therapeutic spas in Bavaria and the Salzburg region. And last but not least: with the MICE trade fair IMEX in Frankfurt this week, the German market is once again likely to shine with exceptional results, high demand and its high international standing as number 1 MICE destination.
Personnel news: CEO Stefan Leser of Jumeirah Group is about to leave the company after 15 months only; Frederik Korallus, CEO of Generator Hostels has already left the company as we were told yesterday shortly before our editorial deadline for today's hostel article.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The hotel world continues to shake itself up and redefine its limits. France shows courage and has passed legislation to force Airbnb hosts to register officially online. Only then, when in possession of their ID number, will they be able to rent property in future. Victory!! The hotel associations celebrate. Amsterdam, on the other hand, is finding it difficult; its recent measures won't have enough of an impact, Sarah Douag says today in her current summary on the topic of Airbnb.
With their new young President Emmanuel Macron, the French have voted in a man who made hoteliers happy with his Macron Law – which forbade rate parity clauses. A new wave of courage appears to be sweeping across France! Let it continue! Here, I extend my heartfelt congratulations, also in the name of all those who are afraid of making a clear statement and decisions.
Such clear statements aren't a trait of HNA, in fact HNA doesn't make statements at all. And so we can only stand back in surprise at the company and affiliate network that the Chinese conglomerate has established and draw our own conclusions from events such as those that have recently occured at Carlson and Rezidor. An update on HNA and a short conversation with the former CEO Wolfgang Neumann, who officially stepped down exactly a week ago.
The hotel industry was the talk of everybody at the Urban Leader Summit in Frankfurt: The current political chaos in the world prompts investors to focus increasingly on security – and more than ever before attention has turned here to the stable asset class 'hotel'. Who would have thought that five years ago?
Europe and Germany remain hot. Also the US third party hotel operator Interstate is forming initial alliances for continental Europe. We reactivate this article from April 28th today, after discussions with Interstate about the handling of leases.
As known for a long time already, AccorHotels is preparing for the sale of its real estate division this summer. Now, it seems a few more shares than originally anticipated will be sold, and rumours are that they will go to Saudi investors. But everything is still open. Venice is seriously thinking of measures to control mass tourism to the city. This and more interesting news today, including some interesting personalia.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
New breaking news from Brussels this morning: Wolfgang M. Neumann leaves Rezidor. His position as President & CEO of Rezidor will be taken by the former NH CEO and today's Carlson CEO Federico González-Tejera. Neumann remains on Rezidor's Board of Directors. Will the merger of Rezidor and NH now become reality?
For those who missed our breaking news yesterday: Kempinski Hotels announced its new management structure giving its regional executives much more responsibility.
Dubai is a phenomenon: From such professional optimists, the Europeans could learn a thing or two. Perhaps Angela Merkel could also provide us with a Minister for Happiness? 
Okay, so it doesn't change the facts, not even in Dubai. The entire region is suffering from a fall in RevPAR, only slowly is the fall becoming slowing, though the room supply – especially in Dubai – is growing. And so the city – even in difficult times – is still doing best among the emirates. The glitzy city never stops to attract guests – with superlatives, theme parks, water shows, the new opera and the launch of the first passenger drones... Behind the scenes though, hoteliers are dismissing staff and in 2018, Dubai will introduce VAT for the first time. No wonder that in this bizarre situation, Dubai's marketing company DTCM didn't want to speak to media at the Arabian Travel Market this year; I took an empty USB stick back home with me, no joke...
The Chinese are now to learn to ski: It will be a school subject! The government is spending billions in order to build hundreds of new ski resorts in preparation for the Olympic Winter Games 2020. And so also millions of new skiers might populate the half-empty ski slopes of the world. Professor Wolfgang Arlt, our China expert, describes in his new column the current drive for ski slopes.
A more serious subject is Safety & Security. The corresponding panel at the ITB hotel conference was attended by hundreds of guests. On the podium was Paul Moxness, Vice President of Corporate Safety and Security at Carlson Rezidor Hotel Group, one of the best positioned experts in this field. In a comprehensive interview today, he calls on hotels to fully integrate the issues into day-to-day business. "If people don't think you are safe then it doesn't matter if you have free wifi, people will simply not come", he says. What chains can do – read for yourself the advice from a security professional.
A survey also confirmed that security now also has high priority for corporate travellers. And Italy's hoteliers are worried about the summer season in the wake of signs of Alitalia's insolvency. Austria's Alpine regions complain this winter from a privileged position. And Hilton CEO Chris Nassetta spoke at the "Arabian Hotel Investment Conference" on plans and focal points.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Europe remains hot for investors and operators from all over the world. Two current examples: The US third party hotel operator Interstate is forming initial alliances for continental Europe. Aaron Greenman, Executive VP Acquisitions & Development, provides details. In China, meanwhile, the Dossen International Group has an eye on Central and Eastern Europe. With 1,000 hotels, it is one of the rather unknown regional players active in the West.
Interest in Europe is still high with terror attacks only affecting the specific destinations in which they have occurred. Unfortunately, Paris has just seen another such attack, this time on the Champs Elysées. Yet bookings have not slumped for the moment at least. The city continues to fight and is now focusing on improving its image with a multi-million euro budget and a new strategy.
Developments at Alberghi Diffusi reveal a very special phenomenon. Up to now, Italy has counted around 130 of these hotels which allow guests to reside in restored ancient buildings off the beaten tourist track. All the framework conditions appear to be right, though the Alberghi don't appear to quite be getting off the ground all the same. Massimiliano Sarti explains why.
Maria has fled Europe's variable April weather for the sun of Dubai and reports today on the notable and nervous mood at the "Arabian Travel Market" as well as at the "Arabian Hotel Investment Conference". Dubai is preparing for EXPO 2020. The city remains a huge building site – and continues its romance with luxury. Only a few investors are driving the urgently needed midscale hotels. For this reason, there are discussions – because the gigantic entertainment parks now demand masses of visitors.
Yours, Susanne Stauss, Senior Editor
Your opinion? susanne@hospitalityinside.com
Dear Insiders,
In our summary of the ITB talkround on metasearchers, we ask who will win the online monopoly. All users will find this interesting article on our Page 1, again with video link to the complete discussion. This final article brings our "ITB Hospitality Day" reporting to a close. Participating in the discussion were Trivago, HRS and a private hotelier.
Following on from the discussion, HRS CEO Tobias Ragge explained to a handful of journalists how he places HRS in the world of the OTA. He focuses on multi-source, silent partners who are officially rivals, and on satisfied customers. As regards the chains, he wasn't sparing in his criticism.
The German International Hotel Association is also likely to question its position. Otto Lindner, in office as new Chairman of IHA for ten months now, offers the best requirements with his temperament and his entrepreneurial point of view. In our personal conversations, I had the impression that he would like to set things moving. Whether he'll be allowed to? In terms of contents, we have focused on the issues of the lack of employees and the change in image. Both are closely linked, and the Association must get a move on. If it doesn't, even more rankings will take their shot on this "flop" sector.
Rezidor is on the look out for more female managers. It is the first group to have appointed a female director in Saudi Arabia. This success is due to a special support programme established by the hotel group. Kempinski Hotels also uses every niche in order to support Arabian women. Its "Ladies in Red" now also includes a woman in Saudi Arabia. She made her way to Berlin for the big gala event to mark the company's 120th anniversary.
There are more facts and figures today: The first quarter of 2017 sees hotel real estate in Germany continue to boom. In Germany, the OTAs continue to gain in dominance, in particular Booking.com. At the same time, the EU Commission warns the booking portals about misleading descriptions.
The Chinese are meanwhile spending more money on their trips abroad. And Mövenpick doesn't only want to please Chinese guests with its new sleep concept which promises gentle peace on individually adjustable mattresses.
The US is already feeling the impact of the restrictive travel policies of President Trump, even the Marriott CEO Arne Sorenson demurs gently. And a current survey reveals that even more travellers will stay away if entry/visa requirements are intensified further. In France, after the acquisition of Availpro, AccorHotels is suddenly confronted with an angry union fearing data abuse and breach of confidence.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
AccorHotels on a shopping frenzy: This week, the company acquired not one but two companies. CEO Sébastien Bazin is rushing forward in IT and luxury. It still looks quite chaotic, but slowly but surely tender paths through the jungle are becoming apparent. This is how Sarah Douah described things following the analysis by Travelsify and VeryChic. At the same time, she has discovered that you can now make your selection by mood on the AccorHotels website! Among hotel groups, that is indeed something quite unique. So we still have some patience with non-stop shopper Bazin.
Franchise is losing friends, some franchisees report. The big chain name above the door can mean greater costs than benefits. Others assert: Without the franchise, the sales just doesn't materialise. In these "boom times" in particular, we are noticing fluctuations in mood for franchise; Susanne Stauss took a look.
Leisure is pleasure: Holiday tourism in Croatia and Spain is flourishing. Both countries benefit from tourist flows redirected from countries touched by terror. Each destination writes its own chain story though, as the underlying data in the first "European Hotels & Chains Report 2017" by Horwath HTL show. The tourism consultants will post the entire report online today. Our subscribers will find the PDF as attachment to the text.
Four weeks ago, a panel at the ITB hotel conference discussed the opportunities and challenges facing Greece, Georgia, Iran and Russia. Omer Kaddouri, CEO of Rotana, his colleague Walter Neumann from Azimut and their two tourism colleagues spoke openly about the current situation at these destinations. A summary by Fred Fettner together with video link can be found by all users on our Page 1.
Other analyses are today provided on the CEE states. The German hotel industry once again boomed in 2016 and posted new records for the 7th year in a row. Now, the hotel association fears that the boom will be choked off by bureaucracy; it is fighting back. Ringhotels continue to strengthen their brand and direct distribution. This and more in today's edition before Easter.
hospitalityInside will take one week's break over Easter; the next edition will appear on Friday, 21 April. We wish you all good Easter business and a pleasant break!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Listening to CEO Arne Sorenson as he explained the integration of Starwood Hotels to analysts, it all seems strategically thought-through. That the giant Marriott now wants to determine commissions in OTA negotiations and in purchasing was foreseen by experts early. Muscles make market economy easier. In order to keep loyalty members happy, Marriott has even acquired a meta-searcher for local activities. That hardly makes a creative impression, rather one of copying. Also, Starwoods cash-cow Sheraton is now to be milked – as the first of all 30 brands, this will now be given a make-over worldwide. In its implementation, the Marriott Starwood puzzle is now slowly getting interesting.
But the AccorHotels puzzle is already really interesting. Now, a party girl has arrived: the French event specialist Potel & Chabot. Why does Bazin now need this – relatively small – player? He is meanwhile connecting rather a lot of French companies.
It's hotting up at Horwarth consultants as they for the first time looked through all data for 13 European countries. The result is a 90-page "European Hotels & Chains Report 2017" which contains aggregate market ratios and hotel group rankings. We currently have exclusive access to the report; today we tease out the first three countries. The report will appear every year in future.
Emotion is not part of the issue Safety & Security. At the ITB hotel conference, experienced crisis managers explained how hoteliers can contribute in times of crisis. Everybody's aim is networked thinking. All users can access this exciting article with video link on our home page.
Sobriety returns to the Austrian Alpine hotel industry when talk turns to staff. The German source has dried up, Austrian employees don't want to move to the mountains - and so politicians have now responded with tax incentives and bonuses. Whether it will help? Fred Fettner provides the details.
Leonardo Hotels go on a European tour, though still see room in Germany. Center Parcs has Germany in its sights. The run on Germany is showing no signs of stopping, incredible... Some developers should take time out to relax in the spa compartment of the Belmond Royal Scotsman. Or remind themselves what it costs to take a brand to the very top of brand rankings. Or otherwise chat to hotel vendors at the luxury trade fair Loop, who must also work hard in the good times until revenues are right. Our news today is well-suited to self-critical thinking.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Today, two articles tackle the balancing act hoteliers are currently facing: between classic hospitality and the feel for trends and innovation. This is why it is good to hear that 25hours Hotels fully commit themselves to being hosts lending themselves the souls of full-hearted restaurateurs for their F&B concepts. Combining it all with design and entertainment. This recipe has turned global in the meantime. The ITB panel about food showed how hotel groups pick up their guests in terms of culinary delights – with down-to-earth and simple offers ...
At the same time, the zany opposite is breathing down the hoteliers' necks: digitisation. As millennials drool over anything involving sharing, partaking and boosting their ego, hosts have to x-ray them virtually addressing their preferences. But before hoteliers can do that, they first need to learn quite a lot about data and digital reception. It became clear that they are far from being able to do just that. Nonetheless, the next digital bogy is looming large: IOT, the Internet of Things. Millennials fully dig it – and soon they'll be screaming for "Hospitality of Things". All that is far from being simple, as the panel discussion on digitisation and automation revealed on ITB Hospitality Day in Berlin. You'll find both reports free for all to read on our first page – including links to the corresponding videos.
My colleague Massimiliano Sarti sensitively tracks all movements on the Italian market. Accordingly, he quotes influential asset management companies that have finally understood how the hotel business is working – and are now willing to invest millions. In a major discussion, the courageous sat together, among others InvestiRe, Castello, Unipol, and HNH.
From the reports: in Switzerland, OTAs continue to grab further market shares, Dehoga Germany is issuing a campaign against strict working hours in the wake of the starting election battle, and spa vacation are being increasingly scrutinised. And two German down-to-earth companies, SeetelHotels and Raphael Hotels show how solid, sensitive and successful independent hotels can be.
By the way, behind the scenes at Rezidor, HNA sold shares worth only 5.6 percent. The acceptance period was prolonged until today, March 24th. From March 29th, it should be clear how great the Chinese influence will ultimately be.
Have fun delving into new trends and concepts!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com