Editorial

Dear Insiders,
Our budget market series in recent weeks has shown just how close many concepts today are. This prompted me to ask Daniel Mueller, COO of Motel One, how they manage to stay ahead with design and lifestyle - and so stay ahead of the competition. Motel One now consistently focuses on expensive original design. "We have a value surplus!" he says surprisingly. What he means with this and what's new to follow, you can find out in the article.
Italy still has a lot of potential in the economy and midscale segments. And nobody knows this better than the chains; since 2003, they have increased their share of the market considerably. But: National brands still dominate. Now, a discussion has arisen as to what contract form is best for growth. Together with the author, Massimiliano Sarti has analysed the highlights of a large recent market study on Italy.
Have you heard of debt funds? In the US, this alternative means of finance is gaining momentum for medium-sized hotels. Here in Germany, it's still relatively unknown. But that's changing. Why? Our funds expert Beatrix Boutonnet explains.
In the US, Choice Hotels has made a surprising move into the vacation rental business and has become the first hotel group to enter into partnership with local providers of holiday homes. That this segment has lots of potential here in Germany too is confirmed by an analysis of the German Travel Agency Association. In Switzerland, tourism figures for 2015 are now available: sad. Demand from Europe fell back to the level from 1958. But there's cause for celebration for IHG, Marriott and Belmond: their balance sheets for 2015 are strong.
Since the ITB is approaching at a rapid pace, I would like to draw your attention to the OTA Dual, which you can see on Thursday at the ITB Hospitality Day: At 3:45 p.m., Terri Scriven from Google and Peter Verhoeven from Booking.com take the stage. More on our Page 1. - The full editorial…

Dear Insiders,
Morgan Stanley is sending new signals in the resorts sector: A fund by the London-based investment house is set to launch a joint venture with Falkensteiner Michaeler Tourism Group based in Vienna. This solves the problems faced by FMTG in the case of Punta Skala in Croatia. The pair also intends to develop resorts together in South Eastern Europe. At the same time, the hotel group is focussing its concept more on families and wellness - even for city hotels.
Demand for accommodation options with privacy has led to many chalet villages in Austria. Even construction companies have become bed giants here. Fred Fettner describes various schemes for the rental and/or sale of chalets, suites and apartments. Banks like these real estate models.
In the third and final part of our series on the budget market in Germany, we provide various facts and figures on the market players, their expansion and their market penetration as well as comparative figures to other EU countries.
Accor, Hyatt, Starwood, Rezidor and Pandox have published their results for 2015: It was a mixed year for them all. In France, bed growth is unabated; AccorHotels invests again in two young companies, for the resale of 11 Interhotels Due Diligence has obviously begun, and Choice and Hilton show the various strategies with which guests can be prompted to make direct bookings. And at Moevenpick, CEO Jean-Gabriel Peres has surprisingly tendered his resignation.
Are you already making your ITB plans? Have you already registered for the Cornell/EHL reception? More on this on page 1. We also present the next panel of ITB Hospitality Day: Here, it's about Digital Natives and the "investment guest". – The full editorial …

Dear Insiders,
We have already reported a lot about Airbnb, but I'm amazed time and time again just how much one can "learn" from this company: Today, Sarah Douag describes how city officials in large American cities are subtly manipulated with study reports and tax promises and how hosts/apartment owners are reconfigured as "union representatives". Airbnb obviously recruited many lobbyists from the US government circles. Quietly and secretly, a huge Airbnb web has been spun around the entire globe. Wow. But watch out! Who's failed to notice again? The hotel industry! Read about Airbnb's "Guerilla growth strategy" today.
Part 2 of our series on hostels and budget hotels in Germany looks at how hostels are growing in appeal through entertainment and how they are moving ever closer to budget hotels. Both segments currently focus on business travellers. In a nutshell: Both are competing with one another to improve their profile. MKG Hospitality provides additional information here with key ratios for 2015 for the budget market in Germany.
Beatrix Boutonnet asked investors, insurance companies and hotels how they see the current terror risk. Result: Capital has no fear of terrorism. It's all a question of insurance. But not everyone takes such a cool stance, as I know from numerous conversations over recent months. Some asked me quite surprised: "What sort of an answer do you expect? Greed rots the mind. It was the same in 2007/2008." We will see.
2016 at least could be a similarly strong investment year for hotel real estate, analysts recently reported. Tourism experts expect similar results: Germany's official statisticians reported the 6th record year in a row in terms of the number of overnight stays made in Germany. Best Western also explained this week that less growth is on the cards for Germany in its new European structure, though more for Central Europe. In Austria, Innsbruck, the third most important city destination in the country, wants to sharpen its profile. And Wyndham is one of the first chains to publish its balance sheet results 2015.
Last but not least, we are announcing our first joint seminar with our colleagues from hotelbau. In June, we would like to discuss a specific issue intensely within a small circle in Munich: Green Hotels. All speakers will report directly from practical experience. Please find more information on our first page. - The full editorial...

Dear Insiders,
In the never-ending dispute between hotel industry and the OTAs, there is always a slow stream of companies looking to help the hotelier with the direct reservation. Sarah Douag spoke with co-founder Charlie Osmond on the business model of the tech start-up Triptease and why they annoy the OTAs with their "price check".
In order to keep on top of the booming German budget market, we are today launching an exclusive three-part series in which Christie & Co summarises recent developments. Interview partner Constanze Maass sees hostels become increasingly attractive. From the investor standpoint, they are moving ever closer to budget hotels. We look at Terror and Tourism in a two-part series. Although tourism has all but collapsed in certain destinations, there is still a lot of optimism among consultants, risk researchers and market observers. Next week, investors, insurance companies and hotels get their say.
The market dynamic is also reflected in our smaller news articles today: Jin Jiang has silently gained a stake in AccorHotels. GCH distances itself from media reports claiming the group intends to convert 22 hotels into refugee housing. Union Investment saw record investments last year. The famed Cornell Hotel School loses its independence. And Frank Marrenbach of Brenners Park-Hotel & Spa in Baden-Baden is "Hotelier of the Year".
In four and a half weeks, dear readers, many of us will meet again in Berlin. Today, we publish our first focus on the "ITB Hospitality Day". Almost everything at the hotel conference on the Thursday at ITB will stand in connection with digitalisation. For this reason, the event will open with Europe's first humanoid hotel robot named Mario. The impact of robots and high-tech on the sector, including innovation labs, will be this year's central theme. More on this in the magazine and on our start page! Today, HospitalityInside also presents its stand partners at the joint stand "World of Hospitality" in Hall 9/109. This clears the way for agreement on trade fair appointments with hotel groups as well as with software, e-commerce and media representatives.
Anyone interested in B2B business in the luxury sector should take a look at "loop": The small tourism trade fair is set to take place for the third time – at a new date in April! We will once again be on board as media partner. More on Page 1. – The full editorial…

Dear Insiders,
In Turkey, tourism figures, in particular from Western source markets, have fallen dramatically - and Russian guests are absent altogether this year. There are crises everywhere. The Turkish Minister for Tourism is going to tour India and China in an attempt to drum up new guests.
The Swedes are trying to make the best of the situation: As part of their "Fast Track to Integration" scheme, they are collaborating with authorities in order to make kitchen staff and chefs out of the pool of refugees in the country. It's an experiment, but a good one.
Another experiment is the cryptocurrency Bitcoin. A Dutch hotelier and a Viennese wine tavern owner accept the virtual currency - but a whole lot more remain sceptical.
Slowly, it can no longer be denied that Alpine winter sport hotels will no longer be able to rely on "timely" snow for the high season. The weather has ruined the start into the winter season for the Austrians, only the glacier hoteliers were happy. And another statistic became apparent with regard to Austrian travel destinations: There's a certain fear with regard to "dangerous" countries. Terror now affects everybody - see Turkey.
Neue Dorint GmbH also granted us an insight into its balance sheet 2014: Dorint Hotels & Resorts report a "black zero" for 2014. Liquidity remains tight, but 2015 will solve various problems from 2014 - as Dirk Iserlohe from the parent company E&P explains.
AccorHotels and Eurazeo have together founded a new company which appears to be a shrewd finance vehicle for improving real estate values and hotel performance. Hilton adds to the sea of brands with "Tru", the Chinese love Europe and Germany as travel destination, Althoff Hotels want to expand and hand over greater responsibility, and our trend scout Oliver Pichler has identified high quality paper as success factor in the online era.
And last but not least about us and the ITB: With Private Palace Hotels, the team of exhibitors at our joint stand "World of Hospitality" in Hall 9 is now complete. Next week, we'll present all our stand partners. – The full editorial…

Dear Insiders,
At the World Economic Forum in Davos this week, sombre politicians tell the world how they are surrounded by chaos. To see where the fires are burning, they should take a look on a world tourism map. After the terror attacks, Egypt has not settled. Instability and fluctuation on micro-markets are again the norm. Current reports by Moevenpick, Orascom and Steigenberger prove just as much.
Italy is also suffering, though here the chaos has a domestic cause: Hotels have fewer and fewer employees, more and more hotels are being offered for sale by auction and important legislation has not got off the ground.
IT trends and the OTAs are a thorn in the side of all concerned: The Austrian Hotelier Association found in one study in German-speaking Europe that not even half of all hotels consider themselves to be "digitally advanced". Put differently: Hoteliers still haven't understood distribution - and are still not using painstakingly collected guest data for attracting more guests, as they themselves admit. The OEHV also plans to take legal action against the OTAs.
Our three articles this week - on Egypt at present, Italy in review/outlook 2015/16 and on the OEHV annual congress - show just how challenging it has become to be a hotelier. What the sector needs now are charismatic ambassadors, effective lobbyists in Davos and at the heart of government... But I've never heard of there being such people in the hotel industry. Or do you know any?
One can cling to statistics with hope though: The "World Travel Trends Report 2015/16" expects further growth in city travel. But trend researchers raise a finger in caution: For the first time, they mention that popular destinations will suffer as a result of terrorism, and they also warn of the negative impact of mass tourism. New songs in paradise?
The news that Paris still has the best image of all of the world's cities is good. It's like balm for the soul of the city. Berlin and Amsterdam also come in under the top 10 for the first time. Michael Altewischer from Wellness-Hotels & Resorts didn't agree with the top 10 spa trends from the US. He provides his comments this week from a European perspective.
This and more in today's edition. Take a dip into the confusing and confused world of hotels. I think 2016 still has an awful lot of new explosive material waiting.
The next ITB will give an initial impression here. The "ITB Hospitality Day", which we will organise for the 11th time will this year focus on the topic of digitisation. More shortly when all participants are clear. We are also preparing our "ITB SPECIAL" which we provide free of charge at the trade fair itself and in Berlin hotels and of course also online. If you'd like to use this marketing platform - production of the high gloss magazine has not yet begun. Our joint stand "World of Hospitality" in Hall 9 will this year also include Al Jazeera Media Networks, as already in 2014. Two places for participation at the stand are still open, last opportunity for last-minute decision-makers. More on this on page 1.
Alumni of Cornell and EHL should also resevere Tuesday evening ahead of ITB for the traditional Get-Together at the Adlon Berlin! More on page 1.

Dear Insiders,
Happy New Year to all of you! But will it really be a happy year? We don't know as we don't have a crystal ball, too but looking back to 2015, we can see, which subjects will drag into this year or will even be intensified. I'm currently most worried about the issue of terror + tourism.
You are able to take legal action against questionable general terms and conditions of OTAs as well as Airbnb's arbitrariness; however, will the majority of travellers make a stand against terror in the long run? I believe that this lasting series of negative events will have an impact on the behaviour of leisure travellers. We have therefore given today's general industry review the title "A year of signals".
In Switzerland, it's about time to follow up the signals with concrete actions very quickly. Precisely one year ago, the francs/euro decoupling dragged the hotel industry down. Since then, the number of overnight stays has been decreasing. The situation has become dramatic for the small alpine hoteliers. Christoph Juen, disillusioned CEO of the industry association hotelleriesuisse, summarises the situation after 12 months and severely presses for the solidarity of hoteliers and tourism experts.
The European industry association HOTREC hopes for faster answers too, as it keeps fighting for the micro-structured hotel industry on many levels. CEO Christian de Barrin and Sarah Douag take stock of the lobby's successes in 2015 as well as continuing challenges such as OTAs, sharing economy and jobs.
In the meantime, the rejoicing in the investment industry knows no bounds: 2015 provides historic records concerning transactions, and the demand among investors – an increasing number of Asian investors is amongst them – maintains the cheerful mood at a high level. The message of the German Cartel Office on December 23, 2015 was not a joyous Christmas message for Booking.com: just like HRS, the OTA has to do without rate parity now. However, Booking is not willing to put up with this, as shown in two answers this week.
2016 continues to be as exciting as 2015 ended. We can only hope that some things will finally be clarified and get some structure... At least, we will stick to our resolution to provide you with solid background information and first-hand opinions! In 2016, we look forward to your many good suggestions again, dear readers. hospitalityInside is made for YOU. – The full editorial…

Dear Insiders,

It's Christmas again! A hyper-dynamic year comes to an end, a year with ups and downs and with far-reaching circumstances. Only very rarely has this review been associated with so many negative, aggressive and threatening aspects as in 2015. However, I will write the industry review in our first issue in January as a large merger seems to be in the making, according to insider rumours.
This week, there was "only" the announcement of the final sale of B&B Hotels. But here, we are talking again about the mega sum of 850 to 900 million euros. In the aftermath of the merger of AccorHotels/FRHI, we were able to gather some new figures and interesting statements.
Members of the Accor family will not be able to forget this year easily: the attacks in Paris weighed heavily on everyone; internal projects such as the online platform of AccorHotels and the current merger kept them in further suspense. How are businesses able to manoeuvre through such waves?
t the end of this memorable year, I wanted to know from Eike Kraft, Vice President Communications at AccorHotels, what large and small crises mean for the communication in today's business and how crises can be nipped in the bud and controlled faster. Social media and their speed are the biggest "danger potential" in harming a business. Kraft: "In the online channels, everything is being discussed: from a fly in the ointment up to terrorism. The businesses have to rethink!"
The OTA industry is also consolidating and looking for new business segments at the same time, e.g. the sector of rental homes and houses. In the second part about OTA dynamics in the market, Sarah Douag reports that we should not only have our eye on western giants like Booking.com, Expedia, TripAdvisor and HRS, but also eastern ones, especially from China.
Since many hoteliers and hotel experts are railing against Airbnb, we found three, who experienced Airbnb & Co. in a "self-experiment" and were willing to talk about it: banker Uwe Niemann in New York with his family, hotelier Otto Lindner about an apartment in Tokyo, and the luxury brand consultant Claudia Roth about a rented villa in Bali.

With this easy reading and some colourful bits of news, we would like to take our leave into the winter break. Our office will be open again on January 11. And our next issue will be published on January 15, as usual!

In light of this very dynamic year, we would like to thank all our readers, business partners and our own staff members, authors, experts and translators very cordially. They helped us again to publish hundreds of interesting articles and realise many top-class events in the 10th year of HospitalityInside.

Merry Christmas and a happy New Year!
Yours, Maria Puetz-Willems & the hospitalityInside team

Dear Insiders,
The ticket into the luxury segment wasn't exactly cheap, but it obviously arrived more quickly than anticipated: AccorHotels can now extend its portfolio to include luxury legends with names like Fairmont and Raffles. And the ambitious Sébastien Bazin can finally take a step into a glamorous world populated by Arab sheikhs.
Both the Qataris and the Saudi Prince Alwaleed are, however, known to be meticulous businessmen and will look carefully at Bazin's plans - not only as owner of individual luxury hotels, but now also as influential Accor shareholders. Has Bazin perhaps let the wolf through the door here? Now, the ex-investment banker must prove his strategy and explain his mistakes as operations man to the most influential hotel investors in the world. That'll be exciting.
Of the three brands acquired - Fairmont, Raffles and Swissôtel - at first glance only Swissôtel would appear at risk of being absorbed by the Accor hotel brands. With respect to the other two, AccorHotels is more likely to bask in their renown. AccorHotels will now learn what real international luxury looks like...
I believe: The brands did not play the leading role, despite all the talk. It's a matter of market capitalisation. The two other - smaller - deals this week were quite different: Pandox bought 18 Leonardo hotel properties together with lease agreements and Louvre took on operations for the German Nordic Hotels. Also exciting.
The first part of two contributions on OTAs fits well with these mergers today: In this segment too, the one eats up the other and nobody cares about the business model from yesterday. Sarah Douag on the evolution of Expedia, Sabre, TripAdvisor, Priceline and Google.
And the "consolidation" of the big companies, is also having an impact on the small. The renowned US data research company Phocuswright analysed the distribution behaviour of American and European private hoteliers. And some very interesting findings came of it.
And figures once again - even if Expo Milan didn't want to publish these officially. Massimiliano Sarti has succeeded in estimating what the exhibition in Milan has done for Italy.
And in other news: Airbnb gains presence in Switzerland, AccorHotels and IHG increased security after the terror attacks. Karl Nueser hands over the reins at Nassauer Hof Wiesbaden to a younger team after 40 years, and Kneipp cures are now part of our intangible cultural heritage. At least we end on something positive today. – The full editorial …

Dear Insiders,
Whereas online check-in was very much the exception just a year ago, the number of hotels taking the plunge has meanwhile grown considerably. Now, the first hotels/hotel groups are even allowing their guests to open their room doors by smartphone. And already a third of guests are doing it! In five years, this IT service will be a must - everyone agrees. Susanne Stauss asked prizeotel, B&B, Lindner Hotels, the private hotel Schani Vienna and AccorHotels.
The hotel industry must think more about the "customer journey" and about the types of guests it has. The sector is still simply too slow. I once again noticed this at a media workshop on start-ups and innovative ideas. Three examples - the cruise portal Dreamlines, the good old Post bus and the Deutsche Bahn - report on their efforts to keep up with the trend in digitization and personalisation. If monoliths like the Deutsche Bahn can move here, it should certainly be possible for the more diverse and spontaneously creative hotel sector to look more closely at its guests needs. Or in networks or in partnerships perhaps...
Companies like Siteminder want to relieve the hotelier's burden, at least as far as spreading their booking channels goes. Sarah Douag describes the channel manager and its services.
The result of the autumn survey for the hospitalityInside INVESTMENT BAROMETER, which we conduct in collaboration with Union Investment, is extremely motivating. For the first time since the start of the survey two years ago, all sub-indices have revealed a clear movement upwards - the hotel real estate sector has never been so euphoric! A summary of results can be found on Page 1. Subscribers find an extended version in the magazine. Those who took part will receive the full analysis by e-mail.
In the news this week: The climate conference in Paris has brought some relief to Parisian hoteliers - as well as to Airbnb. But the P2P website now has a little competition. A new website also aims to bring together host and guest - but only within the framework of certain events. City tourism is also growing, but certain of Europe's cities still have a persistent need for beds, one study finds.
And last but not least: The joint stand "World of Hospitality" at ITB 2016 is taking shape. Would you like to benefit from our network in hall 9? Talk to us! – The full editorial…