Editorial

Editorial

Misery of refugees and escapes into lifestyle
17.9.2015

Dear Insiders,
Where are the refugees supposed to live? While the EU has no solution to this question, German and Austrian cities and communities have to react. And they are cooperating with hotels. Maritim leased its hotel in Halle for three years, H Hotels are already accommodating refugees at three locations, and the Austrian Hotelier Association helps wherever it can... However, we think that more could be done. Which other industry is able to cope as easily with the multicultural mix and offer workforces easy access under the most varied conditions?
The contribution of Susanne Stauss shows the dramatic side of our society that prevails at present; therefore, it seems a little cynical to talk about the nice sides of the hotel industry at the same time: about lifestyle hotels where the spoilt Gen Y cannot get enough entertainment and enough of the good life. But this success is the result of the brand creators' hard work in the end. Therefore, some weeks ago, also in view of the premiere of aloft in Germany, we talked to brand managers of Starwood Hotels und IHG about what should be considered for these lifestyle concepts.
Lifestyle hotels are nice meeting spots, as long as the hotel "booms". As soon as the hotel is empty, as the W Verbier at the end of June, lifestyle is no longer fun. Then, dark corridors and large rhinoceros artworks easily fail to have the desired effect. During her visit in the Swiss Alps, Baerbel Schwertfeger did not experience any of Starwood's spirit.
Maybe, the W Verbier would have been better off as a "pop-up" hotel. This funny term refers to temporary hotels, which can be set up as individual boxes or classical hotels at the beach or in the city within a few hours or days. They are able to adapt to any purpose, ambience and desired size. Sarah Douag introduces clever providers.
The merger of Expedia and Orbitz has been officially approved yesterday: another concentration in hotel distribution is impending. An internet talk provided positive comments about Airbnb, for once. The Alpine regions continue to work on common marketing goals under the name of "The Alps", and a study analysed the wave of bike riders in the Alps. In Thailand, Dusit CEO Chanin Donavanik will leave his position in January; additional current particulars involve development. The full editorial ...

It's all a question of definition
10.9.2015

Dear Insiders,
For four weeks now, the "Macron Law" has been in force in France which gives hoteliers back their freedom over OTAs. By act of law, old contracts are rendered invalid and the hotel must come to a new agreement with the OTA. Booking.com obviously hasn't understood this though and has simply sent a contract supplement. You can read the letter sent to hoteliers here - cheek! Sarah Douag explains why this approach is unlawful and how the hoteliers can fight back.
That the air for OTAs is getting thinner and that they must become more creative is also seen in a decision by HRS. It will invest a high seven-figure sum in a start-up whose app makes digital check-in/check-out and payment a reality. In Sardinia, regional authorities have demanded subsidies back from 30 hotels - a total of EUR 35 million. This has put medium-sized hotels under enormous pressure. A grotesque story from a chaotic country.
aloft has an upbeat story to tell: On Tuesday, Starwood Hotels officially presented its midscale lifestyle baby in Munich. Yesterday it was Stuttgart's turn. This is the aloft premiere for Germany. I was there in Munich. The location is top, and the concept in theory too.
Bavaria's capital remains attractive - also for small groups. Quite unnoticed by the Munich scene, an Austrian brand has taken residence directly before the city tram and underground station of Moosach: Harry's Home. A mix of hotel and apartment hotel here.
The Austrian hoteliers are creative: Now, Florian Weitzer has launched a new product in Vienna in the Imperial and Royal style with Leberkas and Champagne. For the backpacker and the hipster... Again a new facet.
Youth travel is booming, and a report on providers in this price-sensitive segment today shows how ancillary earnings can be increased here. And in a reader's letter today, Prof. Christian Buer predicts that young travellers will stay away from Barcelona if new stylish hotel projects are put on ice. He gives other negative examples.
Participants of the Cornell German Chapter Meeting last Saturday saw what forces this eccentric and colourful industry can unleash. At the Annual Meeting, they all listened attentively to stories from Munich top caterers and hoteliers and were given insight into Gen Y and management. The summary can be found on our page 1. – The full editorial …

Airbnb, minimum wage and more: Under fire
3.9.2015

Dear Insiders,
Airbnb's strategy "Taking not Sharing" becomes clear today in the second instalment of our big background report by Sarah Douag: She looks at how the platform has successively moved into the classic hotel business. And TripAdvisor appears to copy the concept of Airbnb as well as the bad behaviour.
Airbnb will continue to cause the industry a headache. Professor Frédéric Dimanche from Ryerson University in Canada provides encouragement to the professional hosts though: "Just be hospitable!" he says. And it's exactly this that the aggressively expanding Airbnb and co. will not be able to manage.
Also today, our legal expert Joachim Jungbluth contributes Part 2 of our series on the minimum wage focussing here on the legal aspects of the duty of documentation. Just how sharply this bureaucracy monster will push up personnel costs is a question looked at by the University of Heilbronn and Susanne Stauss has also asked hoteliers how they plan to deal with the change. It remains frustrating, especially in high-end catering, which feels particularly hard hit.
Airbnb, the German Minimum Wage Act and the bed tax/VAT are excellent examples of how often, and also unexpectedly, the industry falls under fire. Meanwhile, rarely a week goes by without a new knock: The mayor of Barcelona has just stopped 40 hotel projects saying that Barcelona is not to be become like the tourist-plagued Venice. And in the US, Google has secretly tested an alert which shows customers falling hotel prices and thus prompts rebookings...
Loud complaints and silent suffering are guaranteed, though this not the right way to meet these challenges. More forceful lobbyists would be desirable here, though are lacking. The hotel chain and the private hotelier are only helped here through research and by spending more time thinking about position and strategy of the hotel. - The full editorial ...

Tracking down the background
27.8.2015

Dear Insiders,
Off we go again after the summer break - into the autumn of trade fairs and the last crucial revenue-generating months of 2015! The good weather over the summer has invigorated our correspondents and experts in their analysis of background issues, all of which affect the hotel industry at its very core. Our correspondent Sarah Douag and I have for weeks been disturbed by the unfair comparison of Airbnb with the hotel chains - mainly fanned by US media reports, all of which appear to idolise Airbnb. We asked European experts and take an objective look at the phenomenon. In two articles today and next week, we ask: Where's the value of Airbnb?
Our legal expert for labour law Joachim Jungbluth is just as analytical today and next Friday with regard to new German minimum wage legislation. The minimum wage has been mandatory in Germany since January and has caused many a discussion, as articles next week will show.
Karl-Heinz Kreuzig from bbg-Consulting Düsseldorf is also analytical when he talks of cross-subsidies and reserves in earnings management in a guest contribution today. "Whenever large hotel groups post their semi-annual or annual results, the questions pile up," the consultant says.
The BAT "Leisure Monitor" looked at stress factors in leisure time yesterday; one consultancy based in the US looked at turnover among CEOs and at remuneration of the world's top 38 managers. A table lists the millions and the incentives.
Good news for the sometimes frustrated Germans: Their hotel market ratios are finally moving closer to European averages. The Grand Resort Bad Ragaz has performed very well in the difficult Swiss currency environment, and Orascom has also taken huge steps forward.
Among our personalia today are somewhat longer than usual - also because we cover a number of switches missed in our two-week break.
We now move into the organisational home straight for Expo Real Munich. The number of co-exhibitors at our "World of Hospitality" joint stand has settled at 23. The current list can be found on our page 1. Further information on the Expo and on the hotel conference will follow. – The full editorial …

On the power of capital and women
6.8.2015

Dear Insiders,
The global hotel real estate market is booming, as is the European and German market. Buyers are increasingly willing to conclude cross-border transactions, as the analysis by JLL today shows.
In light of such global movements, capital investment companies are becoming more international, even if the investment focus remains clearly defined in geographical terms. The best access to "limitless" capital is still the move on to the stock exchange. And it's exactly this step that Primecity Investment ventured last October. Revenues generated by the company, which is specialised entirely on hotel assets, rose by 159% within the space of a year, and the number of hotel assets doubled. Four weeks ago, the parent company Aroundtown Property Holdings also went public; today it has a market capitalisation of two billion euros. This brings new weight to the game. Primecity CEO Philipp von Bodman explains what such a capital base means for rapid cash-driven hotel expansion.
The GCH Hotel Group based in Munich has nothing more to do with Grand City Hotels, whose initial letters still form its name. GCH is now open for every hotel and hotel group looking for professional, brand-driven marketing. Vice President Commercial, Bart Beerkens, explains the new profile and new services.
"The air is often thick with testosterone," one of our career women says today in reference to the atmosphere at meetings. In today's third and final instalment of our series on career women and the promotion of women in the workplace, we look at team work, bullying, networks and young women. We will look at further women's issues in subsequent editions: Our readers have asked specifically about the issue of motherhood and young women. I'll be happy to look into it!
Since last week, Expedia has been trying to push through its interpretation of parity in contract. Hotel associations are resisting fiercely. In Vienna, the Austrian Hotel Association is discussing how to deal with the OTAs. Distribution expert Carolin Brauer explains the various OTA channels with a White Paper. All of this is one of our releases today.
Further news includes semi-annual and quarterly results from Design Hotels, Hyatt, Marriott, Meliá and Motel One; and how France is currently benefiting enormously from the Tour de France. Yesterday, German Novum Hotel Group talked about its take-over of the small Winters Hotel Company: a deal that underlines the current hotel hype.
With this issue, we start into our two-week summer break - and will be back again on August 28 with the next issue. From then until Christmas, every Friday will be your hospitalityInside day again!

We wish you pleasant holidays.
Maria Puetz-Willems & and the hospitalityInside-Team!

Sellout & break-even, career & selfness
30.7.2015

Dear Insiders,
Many investors, especially private equity companies, currently recognise the peak in the market and want to cash in. But this means consolidation, which will lead to a next wave of mergers: well-informed sources confirm that the two Chinese mega chains Jin Jiang and Plateno are conducting merger talks. Whether they will swallow up a US chain afterwards together, remains to be seen. In any case, a new dimension in the global sellout of hospitality businesses is taking shape. The backgrounds.
The industry is in full swing right now, as shown by the half-yearly and quarterly figures of the operators Accor, Belmond, Choice, Hilton, IHG, NH, Starwood, and Wyndham.
Dorint Hotels seem to be approaching better times too. With 39 hotels and 3,300 staff members, this hotel group is a pillar in the German market. Dirk Iserlohe, Partner at E&P, the parent company of Dorint Hotels, remains determined to lead the hotel group out of its depression. This strenuous effort has been taking place for eight years now. However, the Profit & Loss account for 2014 implies that the leap into the profit zone could be imminent. Iserlohe is adjusting the portfolio rigorously, is looking for better financing options, and reducing staff costs... In several conversations, summarised in one extensive story today, he exclusively explains the tough fight for Dorint and why he remains motivated.
Women have to remain tenacious too if they want to pursue a career. But career women refuse the promotion of women – just like ultra conservative boys clubs and insensitive male colleagues. In the second part of our three-part series about the promotion of women, the eight surveyed female top managers give a sharp and unemotional analysis on how they see the subjects of mothers and career women, gender balance and mentors.
The subject of selfness evolves around the subjects of teambuilding and self-awareness today. Hotel Eiger in Grindelwald in Switzerland sells the "path to Myself"; however, the guests are struggling to accept these offers, while the team profits from the concept all the more. It still has an exotic character in Europe's spa landscape.
Although we are still in the middle of the preparations of Expo Real, we already have to think of ITB 2016. HospitalityInside will initiate a joint booth in the "hotel" Hall 9 again. If you are interested to co-exhibit, please contact us soon. The first deadline will be September 1, 2015. On page 1, you will find a description and the conditions. – The full editorial…

Hyper-dynamic in the real estate and IT world
23.7.2015

Dear Insiders,
Real estate transactions are booming, also in Europe, as JLL today shows for the first half-year. And already, the next mega deals are on the horizon: The majority shareholder of B&B Hotels, Carlyle, wants to sell. The budget chain is doing well, and so Carlyle is looking to cash in. The same applies for Travelodge: A sale is being reviewed. For both, an initial public offer would also be nice idea. And for both, the Chinese could be interested too.
The new robot receptionists at the Henna-na Hotel Nagasaki look very human. They can also smile and talk. The hotel industry begins the next stage of automation.
And the hotel industry also takes the next step with OTAs. Google is already testing direct hotel bookings therefore making itself a direct competitor to Booking.com & Co. And the hotels are being squeezed like a lemon.
Electric cars and e-filling stations are no longer a thing of the future. Various hotel groups and hotels meanwhile offer their guests "juice" from the socket, or from their own solar roof panels. An e-car trade fair in autumn promises to help. Susanne Stauss has collected positive hotel examples for e-filling stations and has looked into the costs and resonance among guests!
Hoteliers should more often question their own actions, spa consultant Dagmar Rizzato says considering the many mistakes even experienced wellness hoteliers and their architects/designers still make. There any many analyses of guest wishes, but why should a hotelier be interested in towel inventory, sauna paths, cross-selling or even considerate staff?
Certainly, companies should focus more on women. They are an important resource for the future, after all. Accor and Rezidor have already committed themselves with strategy support programmes in order to win over women for senior management posts. I interviewed both of these companies and eight career women. Who supported them, what motivated them, how are women doing in male teams, how important are networks? Read Part 1 today, Part 2 will follow next week. – The full editorial …

Life in the sun, and in the shade
16.7.2015

Dear Insiders,
With tourism, the hotel industry is also booming, especially in high season. Operators as well as project developers are thoroughly satisfied, at least in Germany. But there are no bargain-priced properties to be had anymore. This was the general tone of the PKF talk round in Munich. Transactions for the first half-year also give rise to hope for new records in Germany. All sun themselves in the demand for hotel real estate. Another study shows that branded hotels boost room rates, and another still attempts to sell investors resorts as the better asset class.
In Italy, on the other hand, trophy assets repeatedly pop up for sale. And so Millennium & Copthorne have moved into the market, bought the famous Grand Hotel Palace Rome from Boscolo and immediately throws out the Autograph Collection, which celebrated the European launch of its new brand there in 2011. The London-based hotel group has developed into an asset manager and has an awful lot more planned.
Over the holidays, many are talking about the environmental burden of mass tourism. Many holidaymakers appreciate alternative energies, wind turbines and solar panels, but don't want to see them on holiday. Here, an Austrian university has revealed a streak of hypocritical nimbyism.
And the rollercoaster ride of the OTAs and review platforms continues: Now, TripAdvisor has won its case in Italy. According to a VDR analysis, German business travellers have little use for the sharing economy. On the other hand, German, French and British travellers are all pushing for WiFi everywhere during their business trip and freely admit that losing their mobile phone would be worse than losing their luggage or travel companion.
Hot claims in hot times. For those looking to plan for the cooler April 2016, the 3rd luxury trade fair "Loop" will take place in Frankfurt in that month. This time, the organiser has separated the event from the ITB. – The full editorial…

Of Tourism turbos and sensations
9.7.2015

Dear Insiders,
The last news first: Yesterday, the French National Assembly definitely voted for the "Macron law" against OTAs. French Prime Minister Manuel Valls will validate the law today, at noon. Hoteliers now know for sure, that it is illegal in France for an OTA to impose rate parity. A sensation! Will the price war start now?
NH Hotels have come out of hiding. About 230 million euros bring fresh wind from Madrid. Yet the dust is to be swept out from the tiniest of structures. After the brand streamlining last year, the company is now pushing forward with its expansion and shoring up its brand network. Various hotels are closed for a complete makeover. Some then immediately present themselves to their guests as "NH Collection" beauties. Maarten Markus and Christian Koerfgen, the two Area Managers for Benelux, France and UK and Central Europe respectively, speak about the changes. Koerfgen has even brought in a hotel specialist from Invesco.
Our correspondent Sarah Douag was in Amsterdam for a live presentation on NH's newest technology push, the Telepresence. She saw Maarten Markus not in person, but as life-size hologram in front of her and an image of the inner ear. Three event managers explain why they give this technology a chance.
The Serviced Apartment Camp appealed to the creativity of apartment hotel operators two weeks ago in Berlin. The result was the idea of a washing machine in the lobby. It will be the hot spot in the apartment hotel of the future. A current report by HVS summarises the growth of this young segment in Europe over the last 12 months.
In many industries, the "Bachelor" is considered somewhat of a half-hearted degree. In the hotel industry, on the other hand, the experience has been good with these graduates. Many see it as career turbo. Greece and Switzerland on the other hand can only dream of a tourism turbo. South of the Alps, a little movement can be watched for bookings: Above all, last minute travel is falling victim to the unclear political situation. Absolute sobriety and pessimism in Switzerland: Only the weather can slow the downwards trend in summer business.
In other news, HVS London has published an interesting report today - on OTAs and it has discovered they are now also competing with the chains with their own loyalty programmes. Jan Hein Simons is now officially COO of Falkensteiner - and that's not the only interesting personnel story today. This and more in a colourful but by no means sunny and carefree edition. – The full editorial …

It's all a question of common ground
2.7.2015

Dear Insiders,
The first humanoid robot just started its career at Marriott Ghent in Belgium. "Super Mario" speaks 19 languages, hands out room keys and starts Power Point presentations. Its colleagues love him dearly. You too?
The IT expertise of a last-minute provider was highly valued by Secret Escapes when recently buying JustBook. Together, they now control the "flash sales" of luxury hotels: short-term offers at significant discounts. Romana Kanzian informed herself about the philosophy and strategy of this successful shopping club.
The secret of service excellence and technology will likely be found in their combination. After all, this was what both hoteliers and IT experts agreed on at our 5th "Freitagshappen" event. However, it is a great challenge to find out what the one side wants and what the other side is able to deliver. The parlour panel we stage once a year together with host Karl Nueser at Nassauer Hof Wiesbaden provided an excellent setting for an intense exchange. There were some good links.
"Spotlight Hotel Investment Poland" demonstrated that encountering people remains extremely important despite all the technology. My second summary of this second conference in Warsaw in mid-June clearly shows across all discussions that there is no strict development and investment pattern. The Polish listen well to their neighbours and look for an ideal mixture to apply to their country, which is in high demand.
This week was dominated by the political drama involving Greece and the terrorist attack in Tunisia: there is uncertainty as well as restrained or open despair everywhere ... Once more, tourism is a victim. Sarah Douag provides a brief summary of the current situation.
In addition, she explains why Hyatt likely bought the Onefinestay luxury rental platform. Booking.com and Expedia have been operating since Wednesday based on new terms and conditions – the hotel associations in Germany, Switzerland and HOTREC are cautioning against these provisions. One year after the football world cup in Brazil, the owner wants to sell Campo Bahia, which accommodated the German national team during the world cup. Immerse yourself in the details. – The full editorial…

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