Dear Insiders,
Sustainability is a long way off from being a sustainable issue in the hotel industry. As far as hotel real estate owners are concerned, the profit motive still dominates. Hotel operators will have to put pressure on owners in future though. Why not build in an environmentally friendly way based on new models right from the very start? Have you already heard of the "material passport" or the cradle-to-cradle recycling approach? Drees & Sommer – and others – are already betting on it.
The International Tourism Partnership has the objective of pushing sustainability across the sector internationally. The partnership, which includes 14 global chains, focuses on making water consumption and CO2 emissions measurable and is developing programmes focused on combating youth unemployment and on the promotion of human rights. For example, the hotel industry currently accounts for around one percent of global emissions.
For this reason, today’s edition includes no less than three articles on sustainability. In the background, much is in flux, as we experienced on the Expo Real panel, at the 2nd Invesco Real Estate Sustainability Roundtable and from ITP Chairman Wolfgang Neumann. Neumann personally, cares a lot about staff. For this reason, the former Rezidor CEO this week took on a further suitable job: He was appointed Chairman of the Hotel School The Hague.
Back to real estate: The hospitalityInside Investment BAROMETER Autumn 2017 has been evaluated. The current sentiment in the hotel real estate and investment sector remains good. Demand pressure on A locations does not mean that C locations become more attractive though. An initial summary can be found on our Page 1, further details can be found in the magazine, and all who took part have already received the full assessment.
And in our news this week: Barcelo CEO EMEA Raúl Gonzales spoke to us about the takeover offer for NH. Prince Alwaleeds Kingdom Holding has obviously lost the confidence of the banks after his arrest in Saudi Arabia. And hotel groups based in Barcelona have now chosen to move their headquarters out of a restive Catalonia and to Madrid. Airbnb, as business savvy as it is, is now focusing on the sector for disabled travellers; at the same time Morgan Stanley has stated that the platform has reached a saturation threshold.
This and more today in an especially varied edition. Enjoy reading!

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

Dear Insiders,
AccorHotels will in future again exclude independent hotels from its distribution platform. For Sébastien Bazin's idea, the group was only able to win over 2,200 hotels instead of the planned 10,000. This means a wasted expenditure of some EUR 22 million. In Paris, the CEO has let heads roll. This is his first defeat on a very ambitious path to turning the hotel chain into a world-leading travel & lifestyle group and digital innovator. On the other hand, the statements made by disappointed individual hoteliers who describe their experiences with AccorHotels'  distribution as a "nightmare" don't really fit with this hyper-confident formulation. Sarah Douag brings us the background.
By contrast, the mood was excellent at the CEE-focused IHIDFC conference in Vienna last week: The Eastern European markets are flourishing and are even driving development for the whole of Europe. Today, initial figures. We'll provide more detailed information shortly.
The mood is mixed when it comes to the issue of cancellation. In contrast to come US chains, Europe-sensitive groups are not prepared to introduce stricter rules. They fear losing valuable corporate clients. And rightly so. Managers at BestWestern, AccorHotels, Louvre and Choice explain their approaches.
The experience recently announced by Marriott sounds very interesting. It wants to test out the Internet of Things in a room. Its experience will help the market to find its feet in the prevailing tech chaos. Four Seasons is also doing its bit here. It chats with its guests via many channels and can already report initial positive results on acceptance. The digital service is now being introduced worldwide.
In the personnel section today, some sad news: Henk R. Oosterhuis has died. During the pre-opening phase of the Estrel Hotel Berlin, he was Managing Partner of the 1,125-room property which is today an event and convention giant.

Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

Dear Insiders,
Big party at 25 hours: Yesterday, the lifestyle group opened its 10th hotel at Munich's central station. "The Royal Bavarian" offers "Royal Chambers" and "Box Rooms"… And there are royally pompous paintings opposite the reception: In rank and file, the "highly decorated" partners of 25hours hang in golden frames – and amongst them, 25hours' shareholder AccorHotels in the person of CEO Sébastien Bazin. Petit Napoleón – a royalist? That's the question here. Simply humour with style.
Munich is also home to another young lifestyle company, which wants to diversify its portfolio with co-working spaces in future. Michael Struck at Ruby Hotels fully relies on Ruby Works; sometimes with, sometimes without a hotel. He is testing this model via a joint venture with Europe's largest advertisement agency Serviceplan. Fittingly, an up-to-date co-working study taking Hamburg as an example, was published today. Struck's vision and bare market figures, recorded by Beatrix Boutonnet.
Rome is "out", the rest of Italy is "in": This is what Giuseppe Rojo, CEO Coldwell Banker Commercial Italy, a large real estate intermediary, is experiencing with regard to the current demand of investors. International funds recognise the present investment opportunities, Italian funds don't. The scene is slowly coming into motion now. The banks have started to provide the market with non-performing loans, as Massimiliano Sarti observed.
A leap to Vietnam, to the Austrian hotelier Herbert Laubichler-Pichler, who has to establish the new luxury resort The Anam in Cam Ranh. And one thing became clear: The demands in Asia have increased drastically. The Asian guests want to know more about fine dining, and the Asian staff members are demanding three times higher wages. In return, foreign chefs have to furnish proof of a university degree or similar if they want to work in the country. The Vietnamese learn quickly: They are also provided with knowledge by the ICM University of Applied Sciences Krems, as Fred Fettner found out.
This week, the internet vaulted some news around the globe: Prince Alwaleed of Saudi-Arabia has to defend himself against accusations of corruption, just like other ministers and princes in the country. His jail is the Ritz-Carlton. However, the investor, who is very respected in the hotel world is not happy: His Kingdom Holding has lost two billion US dollars in value this week.
We are talking about only one billion at Wyndham. The chain wants to sell its European Vacation Rentals: Airbnb and others are lining up. At Meininger Hotels, only hotel media will probably line up, after the hotel company appeared on the list of the "Paradise Papers" this week. Investigative journalists are accusing the hotel group and its parent company Holidaybreak, based in London, of a borderline approach concerning tax avoidance. Of course, there is no statement available on this matter, but a "bad taste" remains.
HNA has to do some serious thinking now: How do they want to continue with NH Hotels? Apparently, the Chinese conglomerate plans a slow withdrawal. The group has already sold the first 1.14 percent of its NH shares. Do they want to sell all their shares? Interested parties are lining up here as well.
Interesting news concerning personnel matters: Christoph Mares has been promoted to COO at Mandarin Oriental, while the German Novum Hotels and their COO Mario Pick are going separate ways again after just nine months.

Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

Dear Insiders,
The segment of Serviced Apartments increased by 17 percent in Germany in 2016, and the current year should end with another increase of 14 percent. No wonder the hotel conference at Expo Real was overflowing with more than 200 participants. Even conservative investors are flirting seriously with the new darling. Against this, student apartments or micro apartments have no chance. However, it is alarming that every operator of Serviced Apartments is defining "long-stays" continually shorter. This way, the model is becoming diluted, and in the long term, the ROI will decrease. But does this concern anybody right now? No.
It is no coincidence that open-end real estate funds want to include Serviced Apartments. The hotel boom brought these products to the fore, too. Within two years, open-end funds increased their investments in hotels by 12 percent, also in foreign countries. Deutsche Bank, Deka, Union Investment, and CommerzReal explain why.
In Brussels, the President of the European Parliament, Antonio Tajani, praised tourism as an overall job creator in the presence of lobbyists, experts and media, and wants to further promote this great industry with – a ridiculous – 25 million euros. Hotrec's President Susanne Kraus-Winkler, however, demanded something concrete and useful, such as flexible employment legislation for the industry. Fred Fettner captured the buzzwords and statements hotly debated in Brussels.
The independence efforts by Catalonia have decreased the hotel bookings by 20 percent, investments are being placed on hold for the time being. Just recently, Barcelona complained about "overtourism"; now, the industry is already suffering. Sarah Douag describes the first effects. In Great Britain, the watch dogs have targeted OTAs and are presently analysing hostile consumer clauses, discounts and fees. Falkensteiner Hotels collected 2.5 million euros in one month via crowdfunding. Belmond, B&B, and Romantik Hotels show in their current marketing and communications campaigns: The world only wants grand emotions!

Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

  

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Dear Insiders,
For years, we have been taking part in Choice Hotels' Europe Conventions. Sarah Douag brought back interesting information on new useful technology tools for the group's franchisees from the convention in Valencia. Everything appears geared to the future, whilst at the same time remaining firmly rooted in practice. The new CEO Pat Pacious also gave an interview. "Europe is full of opportunities", he said. At present, that's truer than ever. Here, Choice has grown by 25 percent over the last two years with its Comfort brand. Now, Pat Pacious is focusing on the soft brand The Ascend Collection. Technology also remains Pat's favourite: Choice is testing its own chatbot.
This brings us to the article by Macy Marvel this week who reports from a conference in London – and who reduces the benefits of the hyped chatbots to the currently feasible. Artificial intelligence currently helps hotels best with the analysis of revenue management, in cost control and for automated front desk tasks. That was it. For PR reasons, the service robot is part of the team, but for the moment, it's no real help.
Following its current quarterly results, Whitbread is eager to expand and to acquire new hotels – and speaks only in millions. Luxury travel is booming more than ever and the world's smallest palace hotel will benefit from this - Alain Ducasse's composition in the Palace of Versailles. In Germany, the Federal Cartel Office has launched an investigation into travel comparison sites.
Our survey on the sentiment in the hotel market in collaboration with Union Investment is still underway! What do you think the trend will be over the coming months? The link in our Friday newsletter directs you to the questionnaire, and will work just once! If you haven't registered for our newsletter yet, please go ahead… Those taking part will receive the INVESTMENT BAROMETER results.

Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

 
Those who do not receive a newsletter on Friday can  register here  in order to join the survey. Please click this link and register for the Newsletter or Barometer and participate; both is free of charge.

Dear Insiders,
A week ago, Hyatt Hotels announced that it had fallen victim to a second cyber attack. In 2015, the virtual thieves gained access to the company's payment system via malware and stole customer data from 250 hotels in over 50 countries. This time, only 41 hotels in 13 countries were affected. The malware was obviously active for almost four months before the IT department discovered it. There can be no better proof of the topicality of this subject. And so today we include a summary from the Cyber Crime Panel at Expo Real, whose high calibre experts issue an appeal to everyone with the warning: This threat can only be limited by prevention and staff training. Costs here are nothing compared to the damage that will result once guests decide to stay away! Read it yourself.
In these days, Google's parent company presents its new smartphone "Pixel 2", whose display shows information on the user's environment, e.g. churches, museums, opening times etc. The point here: Artificial intelligence is pushing ever further into our day-to-day lives – and is taking on an increasing number of functions. Yet despite all the hype, it will still take a while it seems.
The two chatbots from Amazon and Google we tested were by no means as clever as the hype claims. We carried out an interview with Alexa and Siri – and asked both chatbots specific questions as regards hotels. Their answers were comical and embarrassing at the same time. Smile with us when Alexa has a cup of WiFi for breakfast in the morning!
The smartphone has meanwhile penetrated deep into the Human Resources department – but HR managers simply don't want to accept that they lose every second potential applicant when they fail to post job adverts in smartphone-compatible form and/or when they are not prepared to communicate with applicants via the now ubiquitous pocket device. A study reveals some sobering statistics. The industry is once again asleep at the wheel.
Airbnb turns around: Just a few days ago, they announced their first apartment high-rise in Florida – with standardised units. With this, the sharing economy pioneer is changing its business model – and is increasingly beginning to copy hotels. This is a 180 degree turn and the end for their own business model. You can only shake your head...
Louvre has this week also sent an "attack" signal to the world: It acquired the French upscale and luxury group Hôtels & Préférences in order to secure itself a piece of the high-end pie. Further deals are to follow, hospitalityInside.com heard in an interview.
That's all the important stuff – dive deep into the issues of the week!

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

Dear Insiders,
Next Wednesday, Expo Real starts in Munich and both the trade fair and we are expecting a "full house". The hotel real estate industry is buzzing; this is also obvious at the joint stand "World of Hospitality", which is fully booked again this year with 31 co-exhibitors. This week, citizenM joined the names of those already well-known. The large logos above the stand will show the way to the renowned hotel operators, investment companies, project developers, prime contractors and consultants from afar. Get to know all co-exhibitors in a short portrait! We are very happy about this feedback and the huge know-how all assembled on 230 sqm of space.
On Thursday, we expect visitors from politics again: Thuringia's Minister-President Bodo Ramelow has an appointment to chat with several exhibitors of the "World of Hospitality".
Right on time for the trade fair, our SPECIAL has been published again and boasts 108 pages this time, in English and German as usual, and it is already available on our website as an eMagazine. The title "Beds, Boom & Bubbles" hints at what many talks will be about. You will find more on page 1. You can also get your printed edition at our stand, starting on Wednesday! Or watch out for it at your fair-hotel; it will be distributed to 66 hotels in Munich.
With Expo Real, we will start our social media activities – at LinkedIn. Nonetheless, we will not flood you with information in future, but provide you with selected topics at this business platform and inform you about all our activities. As an opinion maker, we are always interested in your opinion. Please share your thoughts with us, also via this communications channel.
About today's edition: The topics that stir people became obvious at the Hogan Lovells hotel day in Hamburg last week. Rates of return, yields, new and promising niche concepts… Much of this will become more precise automatically through our coverage in the next few weeks. I can already tell you about the new plans of citizenM: The company wants to expand in 30 cities and be present with several hotels in each city, and Germany/Europe will be at the top of their agenda.
Sarah Douag explains today why you should deal with the new EU General Data Protection Regulation: Your business and the people responsible for digital data could be fined starting in 2018 – up to 20 million euros!
In Italy, many things have been running better than in the last few years now: The summer of 2017 was fantastic, but Italy can never compete with its main rival Spain.
There is more news about the market in Poland, and also changes concerning personnel in the developer's scene due to Expo Real.

We look forward to meeting you at Expo Real in Munich! Our team will be there.

We will see each other at "World of Hospitality", the hotel conference on Wednesday and/or at our networking event BRICKS & BRAINS.

Full house – full programme!

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

Dear Insiders,
Nothing, absolutely nothing appears to be putting investors and operators off from making further investments in the hotel industry, and in particular in hotels in Germany. This is the conclusion that can be drawn just a week after the end of the bubbling Expo Real 2017. There are certainly concerned voices, but the desire to make deals simply trumps everything else. Sentiment, opinions and facts in summary. This week's edition also includes more news on individual hotel brands and the transaction figures for the 3rd quarter for Germany.
For us at HospitalityInside, the trade fair was also a success. We would like to thank all our exhibitors for their wonderful collaboration! The hustle and bustle at the "World of Hospitality" reflected the market's dynamics. All the more relaxing it was then to attend our networking event "Bricks & Brains" in the evening with around 200 high-calibre guests.
On our Page 1, you find today a short text on hotelier opinions on the trade fair. There are also a few lines about out networking event, including links to photos of the event. Or click on the two corresponding banners in the right column of our home page... Enjoy the picture show!
Today, we also launch our "Investment Barometer" in collaboration with Union Investment – consciously after the trade fair. This time, it's about the ability of the hotel market to absorb the new. Anyone can take part. Accordingly, we include the link to the questionnaire with our Friday newsletter. There, all recipients of our morning newsletter will find a participation link and will be immediately redirected to the questionnaire, without the need to enter a code or password. We have simplified the procedure. Those taking part by 3 November will subsequently receive the entire analysis.
Those who haven't registered yet should register soon in order to join the survey next Friday, with the next Friday newsletter. Please go to www.hospitalityInside.com, look for the Newsletter or Barometer registration; both is free of charge.
On today's edition: The Expo Real hotel conference brought together three China experts from Deutsche Bank Wealth Management, from CBRE London, Kempinski and the research institute COTRI. They provided insight into the strategic thinking of investors from the Far East. They warned sceptical Europeans not to be so wary of the Chinese. There's no use in it.
Putting Chinese superlatives and gigantism in the right context is not easy though. This was certainly Fred Fettner's experience on his Shanghai visit. There he met the Austrian COO of the rapidly expanding Greenland Group, which aims to become one of the world's Top 100 companies within just five years. At the moment, it must content itself with a Top 500 listing. Greenland's new brand Primus Hotels already offers residences, too.
AccorHotels again wants to acquire a company – this time the second largest hotel group in Australia. This would make the French company the no.1 there. But nothing has been decided yet. There are also big hopes in the MICE sector worldwide: It is blossoming as competition on the market blooms.

Until next Friday!
Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

Dear Insiders,
Expo Real is still in full swing today… The first two days at the fair in Munich knew just one scenario: overcrowded halls, hectic crowds, non-stop meetings and networking to excess. The sector is already breathless, working as if there were no tomorrow. Is this the fear that the bubble is about to burst? The experts attending the hotel conference completely denied this was the case.
Our editorial team is fully immersed in the trade fair events, and because of the overlapping with our editorial deadline yesterday evening, it will only be able to report in more detail next week – including conversations with hotel exhibitors and other hotel experts as well as about the hotel conference. You will therefore find the most important news in a nutshell in today's edition.
Nevertheless, we are able to present exciting topics related to real estate and investments: Amsterdam, a city with 850,000 inhabitants struggles under the burden of 17 million tourists in 2016; for this reason, the city of Amsterdam proclaimed a hotel ban. Despite the ban, more hotels can be developed but only in the "Amsterdam Metropolitan Region". The region attracts investors and operators with good infrastructure, airports and bleisure offers. Sarah Douag with more details.
Beatrix Boutonnet unveiled details about the latest Invesco deal. In September, the investment company paid 530 million euros for 13 European hotels – for their first open fund for institutional investors. Now, Managing Director Robert Stolfo and Asset Director Hans-Peter Hermann have revealed more about the deal, the growing time pressure, and the new modesty of the investors concerning leverage.
International investors have many questions when they want to gain a foothold in Germany. And there are many who are willing to do so, but are often frustrated due to the specified legislation. Therefore, Dr. Anton Ostler, one of our editorial experts for legal aspects, explains the basic structures of German law to newcomers.
In the news section, amongst others, we are reporting about Preferred Hotels. The company is growing fast in its preferred segment of Preferred Residences at the moment; and its consulting subsidiary, which was established quietly, is expanding. Again, AccorHotels is spending millions for the business travel hotel reservation platform Gekko and for share in the Orient Express brand.

Yours, Maria Puetz-Willems, Editor in Chief

Your opinion? maria@hospitalityInside.com

Dear Insiders,
It is not easy to understand the differentiation between the two new and independent companies AccorInvest and AccorHotels. Therefore, my conversation with Andrea Agrusow, the new COO AccorInvest Central Europe, was highly informative. At least, many questions were answered, and the success of the "booster project" strongly depends on the ongoing negotiations between Sébastien Bazin and the new investors. But they are not jumping onto the booster project as quickly as hoped for, as I heard from well-informed circles. We shall have to wait and see.
The fact of the matter is AccorHotels is retaining its old name but as of July 1 "is only" a partner of AccorInvest, provides services on demand for its colleagues and "only" bundles the brand leadership for the marketing and franchise hotels itself. The responsibility for assets as well as for personnel has shifted to AccorInvest. This way, it becomes obvious for the first time that Accor has changed and become a real estate group now. Therefore, a member of AccorHotels' business management is leaving in the next few weeks: Eike Alexander Kraft, VP Corporate Communications & Social Responsibility for Germany and Central Europe. His job will be taken over by the marketing department.
The Swiss SV Group wants to grow. Of their ten new hotel projects, seven will be Moxy Hotels, and three Residence Inn properties. SV Hotel Managing Director Beat Kuhn will continue his exclusive partnership with the Marriott brands.
In Zurich, Motel One recently made its debut, but other budget operators will be knocking on the door in the next few years. An unusual development for Switzerland where the market has been exclusively dominated by 3 and 4-star properties so far. But in light of a strong Swiss franc and high personnel costs, these lean concepts make sense. Their peppy design, however, is a source of distress for the outdated private hotel industry. A development, which began in Germany 15 years ago, and has now reached the cities in Switzerland.
On the news front: The first hotels in Paris are fighting for more trust among the tourists by putting up a security label on their doors. Good times are in store for sellers of leisure properties to Germans who tend to re-finance these properties by renting them out to guests. And Falkensteiner is betting on crowdfunding.

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