Editorial

Dear Insiders,
The hospitalityInside team wishes you a great start into the New Year! It will certainly be thrilling and fast-paced once again, as many issues that dominated 2014 will continue this year. In our review of 2014 and outlook on 2015, we describe the major topics that keep the hospitality sector in suspense.
Yesterday, HVS confirmed one of our interpretations: the renowned consultancy always keeping its finger on the pulse of the financial centre London expects numerous acquisitions in 2015. To put it kindly: consolidation is the order of the day.
This fits in well with the latest news from the bargain paradise of Italy: here, international investors such as Starwood Capital or Accor are haggling over the 31 UNA hotels. Speaking of Italy, the government imposed a penalty of half a million euros on TripAdvisor due to false hotel reviews.
2015 will unquestionably become a decisive year for DSR Hotel Holding and its a-ja hotel brand. On the one hand, there is Richard Vogel, the holding's new partner, who seemed rather insecure when it comes to hotel strategies in an interview back in December. For him, transferring a-ja's budget resort hotel concept into the city will certainly turn out to be a lesson in terms of hospitality industry. Industry insiders will be watching closely, making detailed calculations how DSR, a-ja and partners will manage to finance rooms of 24 sqm in the city and then allow them to sell at 39 euros per guest – just as in rural regions.
Unusual ideas are not always doomed to fail, as the small Lungolivigno boutique hotel group in Northern Italy shows. A family has become a driver of tourism with their hotels and their seven boutiques.
At the start of the year, there are once again a few interesting personnel issues. Accordingly, Romantik Hotels have a new chairman again. And you, dear readers, will hopefully find many new interesting topics and inspiration for your daily routine in hospitalityInside.
If your spa requires some new marketing power, how about registering your spa or marketing managers for a workshop on pre, up and cross-selling organised by Rizzato Spa Consulting and hospitalityInside on March 23 in Munich. For all details see our start page.
From now on, the rule of the week is once again: Friday is hospitalityInside day!

Dear Insiders,
It's nearly Christmas – a signal every year for "letting go", in the business world too... We are interpreting these words differently in this edition: today, three top managers from the hotel industry – Ed Fuller, André Witschi and Horst Schaffer – report how they "let go" of their businesses and careers planned and unplanned, which emotions shocked them and how they managed a rational transition into a new future. Their words are good advice for many management colleagues.
On the threshold to the New Year, the word future is often mentioned. We shed light on the mobile customers of the future, who wish to obtain unrequested information on their smartphones when they are enroute and are even willing to pay for entertainment.
And today, we talk about the future of hotel marketing: about videos provided by a drone. Professional photographer Jochen Tack bought such a flying robot and equipped it with a digital camera. The "octocopter" is now delivering lively videos in bird's eye perspective.
The strong alliance between Accor and the Chinese Huazhu Hotel Group is very future-oriented. This way, Accor obtains hundreds of locations in China; Huazhu obtains knowledge and a RevPar engine. Together, they will have 47 million members in the customer loyalty programme. This smacks of real power.
However, I sense even more joint ventures, participations and mergers in the next few months. Therefore, the IHG-Kimpton deal was probably just the beginning. There is simply too much good money in the market and the pressure of competition is too high. But we will save our report about review and preview until the New Year as many things could still happen up until New Year's Eve.
The old year is still keeping us occupied with Booking.com, which very skilfully launched its most recent rate parity offer this week. Ultimately, this gives hoteliers no freedom.
We are now taking the liberty of starting into our Christmas break. For hospitalityInside, a good year comes to a close – to which you, dear readers and business partners, have strongly contributed! We would like to thank our team, our editorial staff and experts as well as our translators who all contribute to a new and colourful edition every week.
hospitalityInside wishes you a Merry Christmas and will be back on Friday, January 9, 2015.

Dear Insiders,
The end of year hectic has begun, that's clear to see. Tomorrow, December 13, the new Allergen Regulation will enter into force in the EU. Like the Austrians, the Germans have also found a less bureaucratic national solution...
The Higher Regional Court Duesseldorf again looked at the HRS case on Wednesday and admitted new information in the review of the cartel office's decision from spring. Now, the final decision with respect to HRS's complaint with regard to rate parity is to be made on January 9, 2015. HRS wants Booking.com and Expedia to adjust their GTCs too.
In this week's edition: Four months ago, the Starwood Extended Stay brand Element opened at Frankfurt Airport. Now, I had the opportunity to speak to Starwood's Senior VP for speciality brands, Brian McGuinness. I also spoke with Marco Bari, the new Element operator and franchise partner. Interesting discussions around a product which has to close the gap between American brand standards and local markets outside the US. Is it more hotel or more long-term home? And is it as "green" and "healthy" as Starwood would like?
One also has to look behind the scenes at companies such as JSH Hotels & Resorts in Italy: The group operates hotels under renowned chain names. Among the large international chains active in the fragmented Italian market, it has done well with this strategy, also in these difficult times.
White label, management, lease or franchise - owners across the entire world ask themselves these questions. Macy Marvel reports from a London conference at which the role of "key money" was discussed in this context.
If the EU is to change its Package Holiday Directive in line with current proposals, hoteliers could also be made liable, alongside the tour operators. The European hotel association Hotrec about the possible consequences.
On the German market, Althoff Hotels will cease operations at a small Schlosshotel in January, the Atantic Kempinski Hamburg has, after a long wait, now been surprisingly sold to a large clinic operator, and Preferred Hotels have looked into how grandparents boost cross-generational travel.
And last but not least, a bonmot from the German Sunday newspaper "Welt am Sonntag" from December 7, 2014: There, the industrial magnate August Oetker, Chairman of the Advisory Board of August Oetker KG, spoke about the Oetker Hotel Collection, which is currently expanding quickly with news hotels such as the legendary Lanesborough London and Frégate Island Private on the Seychelles. For this, the Collection CEO Frank Marrenbach has earned much respect in the industry.
As the industrial magnate sees things though, the world looks different. He said: "The hotels are not a core business, it's not so much about earnings figures there. We see them more as objects of value. But on the other hand, the hotels are more than just a playground. We are currently in the process of expanding business by taking on administration of other hotels, like the "Landsdowne" in London. ... And one more thing I have to mention: They are all hotels from the very top category. For our family, it is too expensive to stay there." - The full editorial…

Dear Insiders,
In Germany, the new booking portal Hotel Deals Direct wants to charge hoteliers only 5% commission. Super! Small catch: First the chains and individual hotels have to stump up the capital. One million euros is the minimum set for the launch. Already though, the portal's courageous initiators have met with scepticism.
I ask myself why hoteliers in certain forums are complaining though. Perhaps they should first take a look at their own websites. Some users would likely to book directly and would do so more often if this "home-made" booking portal were easier to use. Such deficits are identified - on a global basis - by a recent study by Google on travellers' decision-making. eCommerce specialist Michael Puetter summarises the hotel-relevant findings.
A look at the broader picture helps - and this is also true for the members of the first international chain-independent owners' association, Hoftel. Founder Simon Allison provides an insight into Hoftel's structure and into the brand perception of its members.
A year ago, we created the "Investment Barometer" in collaboration with Union Investment. Our 3rd survey focused on the chains and the slow implementation of their expansion plans. What's the reason? 40% of the hotel experts that responded said: "False expectations from investors as well as operators." That sounds like a need for better communication from both sides. Read a short summary of the survey's findings on our Page 1 today. Subscribers have access to a more in-depth report. Would you like to see the full results? No problem, then get on board - the next survey will launch in March.
Because large chains were all small once, we began our "Small Chains" series some time ago now. In today's edition, our Italian colleague describes the London-based Nira Hotels which will today open their 4th boutique hotel in Italy, though don't wish to expand there only.
Even the London-based budget design chain Yotel has large expansion plans. Also, German Hospitality Alliance presented its new H2, H4, H+ brand world alongside its core brand Ramada yesterday. And the tax issue will return towards the end of the year in various guises - in Lisbon, Greece and Austria. – The full editorial …

Dear Insiders,
Jumping on board the lifestyle waggon two years ago with its own brand was certainly a good idea of German Lindner Hotels. But what to do when suitable locations just can't be found? Many chains have made serious compromises on this point. A medium-sized hotel group can't afford to make such mistakes. The modified lifestyle product has its own charm, as the renderings published for the first time here today show. Lifestyle is now no longer cool, but again cosily warm. Linder Chairmen Otto Lindner and Andreas Kroekel also showed themselves to be relaxed in an interview with us.
The EU regulation on allergens which we outlined for Germany last week has now been interpreted by the Austrians. There, the guest has to make do with general information, or staff will tell him. Austria Trend Hotels is still annoyed by the rule and says on behalf of colleagues too: Alone the relabeling for the breakfast buffet and door hangers for breakfast in bed will cost EUR 8,000 for 28 hotels.
Because Austria is very much dependent on tourism, the country is also very sensitive: Tourism experts have now meticulously analysed new target groups to help offset the threat from a sinking winter business, above all the "empty nesters". Livecams and social media are to help here.
Amazon has not yet officially confirmed that it intends to move into the hotel business as OTA and insofar - after the media reports in the US – the industry remains relaxed. Hoteliers have got used to OTAs and know now anyway that they need to improve direct distribution. In Switzerland, another much-discussed OTA, Airbnb, has now started to focus on second homes in the Alps. IT distribution is also seeing movement at the moment. In the flood of software manufacturers, HSDS now aims to raise its profile by offering customised software at reasonable prices to private and chain hotels. Up to now, HSDS was only known to insiders.
All this is a sign of the enormous speed to which all on the market are subject. And this is also felt by another young sector, namely the Serviced Apartments. Experts and large chains in Germany and Great Britain have agreed to no longer refer to this segment with this term, but rather to use the term Apartment Hotels or Apart-Hotels. And a brand-new report explains why hostels and limited servicee hotel have a great future in Europe. - The full editorial …

Dear Insiders,
Travellers obviously love Airbnb. Certainly, they aren't put off by the criticism of this provider. After all, why should they bother about security and unpaid taxes when they can book a cheap private room online, or even an entire house in one of the world's top destinations?
Airbnb founder Brian Chesky loves to praise the new "sharing economy" in public - as of immediately, the European Hotel Association HOTREC will refer to it only as the "shadow economy". The US company obviously doesn't want to share anything - not fairness, not responsibility and not transparency. Its business model is similar to a shadow economy, and many things are left in the dark.
HOTREC-CEO Christian de Barrin gives his opinion on this OTA-like company in an interview today and demands the same rules are applied to it as to hotels. A task force has been founded. Author Sarah Douag looked around the globe – in particular to cities such as New York, Amsterdam and Paris which have become hot spots for Airbnb – and summarizes how cities take aim against illegal Airbnb apartments and how associations fight the war of words.
There's also an awful lot happening currently in the MICE market. Now, bookings for conference space can also be made directly online. Several providers have recently come on to the market in Europe, or will do: Okanda in Germany, Book2Meet based in Brussels and MeetingMarket by Expedia.
You'll certainly not fall asleep reading today's edition! Not even when you read the summary of a new sleep study. A whole range of business models are coming into existance here - e.g. sleeping in the café!
And you won't be nodding off in the Kameha Grand Zurich set to open at the end of February 2015 either. Its design - by Marcel Wanders - will also impress the spoiled Swiss. Sabre has presented the first smartwatch which can be used to call up travel information. In a survey conducted by the German Hotel and Restaurant Association Dehoga, hoteliers were pleased by the good summer, though more expect a worse winter.
For us, spring is hurtling towards us and so also the ITB Berlin. In Hall 9, HospitalityInside will next year, for the first time, offer a new module which allows suppliers to present new concepts and solutions to hotel operators, video recordings included: the Hospitality X-PERTS Lounge. It will supplement the joint stand, though you don't have to be a co-exhibitor. To external parties we offer attractive partner packages. Talk to us! Details and contact information on our Page 1. – The full editorial …

Dear Insiders,
The Chinese are among us: With the 1,100 hotels acquired by Jin Jiang Hotels with the spectacular purchase of the French Louvre Hotels, a new giant is made from the Far East. The chain was already the ninth biggest in the world. And they're not alone. Other Chinese investors have long been present in Europe. Sarah Douag on the mega-deal and the new names on the hotel scene.
Jin Jiang is therefore no longer a prospective buyer for IHG. Marcato Capital Management based in San Francisco had the Chinese in mind: The small IHG shareholder recently pushed IHG to consider a merger with another chain - e.g. Starwood, Hyatt, Hilton, Accor or Chinese companies. IHG rejected Marcato's proposal this week. The frustrated investor posted a 76-page report online including stock market prices and table comparisons which were intended to show exactly how much potential IHG management have failed to exploit. See it on the Internet for yourself, exciting! The details of the IHG shareholder incident aside, it does show just how voracious the financial world has again become. The call for consolidation is becoming ever louder. Look at Louvre.
This week, I can't shake the feeling that the chains are acting more and more in an increasingly similar way and increasingly secure the deals with groups from the same pool only. And that obviously puts pressure on the medium-sized and small groups in the market. The big players were also the pin-ups for the Scandinavian Pandox which has now split into a property holding company and a hotel operating company. Also, the aim here is: quicker expansion.
Moevenpick Hotels are still independent in this regard. Yet my talk with Moevenpick CEO Jean Gabriel Pérès reveals changing accents which is similar to the strategies of the mega players. Pérès has by the way now been CEO for 15 years and is thus the longest standing in the sector. For his final years, he wants Moevenpick to remain profitable.
In Italy this week, there was an outcry as an Italian sovereign fund acquired 23% in Rocco Forte Hotels thereby supporting the expansion plans of a British company; Rocco Forte explained the reasons for the participation and its next expansion targets.
The recent opening of the new Motel One Vienna in super-central location near the National Opera House and a visit to the Ruby Vienna prompted me to point out some new accents in the budget/lean luxury segment. In terms of hardware, there's little to be upgraded, but perhaps on the breakfast buffet... And Beatriz de Lucas has discovered a new trend in Spain. Halal tourism. A first halal hotel is on the market, and a first halal tour operator too. That and a whole lot more - enjoy your read! - The full editorial …

Dear Insiders,
Accor's new digital strategy aims primarily to benefit from its own guest data and so circumvent the OTAs wherever possible. Whether the chain can fire up the mobile generation on which it now focuses remains to be seen. In just a few years, Accor aims to raise the direct mobile booking ratio from 12 to 40 percent! Sébastien Bazin's standards for the new drive in online distribution are high. On the big announcement day in London, the CEO appeared on stage as a "Silicon Valley guru", with black t-shire and barefoot. Cool for an investment professional. It will certainly earn a few clicks on Facebook.
A consistent strategy can certainly result in success, as the customised MBA programme shows. Kempinski Hotels now requires its GMs to complete the course and the undertaking certainly requires a lot of discipline from the managers too. But it works. Lindner Hotels and Travel Charme also offered similar programmes for their managers, though later gave up.
In the Alps, the first snow has fallen. And the Austrians have again invested a lot in the "mountain economy". They once again hope to attract German skiers - in particular because the Russians may well stay away. If this does occur, it would certain chill the winter sport business. Nevertheless, we again see new hotels in Austria.
And last but not least: Sustainability leads to overnight stays. This is the finding of IHG in its current Sustainability Report. Two studies also look at professional skills and opportunism by hoteliers, and there's also a new course of study for operator real estate in Germany. - The full editorial …

Dear Insiders,
Reto Wittwer's personnel changes have been as feared internally as they were regular. Now, the Kempinski CEO has ended his own career. As we reported yesterday in Breaking News, nearly the entire Kempinski management board has been reformed. I was able to speak to the new CEO, Alejandro Bernabé, briefly yesterday. He does not carry the title "President", as reported.
With Reto Wittwer, the industry loses another extremely competent and agile top manager. For 20 years, he was CEO of a Thai-owned luxury group which is still proud of its German roots. This multi-cultural bridge could only be achieved by a Swiss national. Reto Wittwer can be described as truly cosmopolitan, a description which applies to few in the industry. He embodied German directness, Swiss elegance and Asian sensitivity all in one: he loved his life as a real luxury hotelier. More in the magazine under "VIP".
Last week brought particularly exciting news. The biggest British budget chain, Premier Inn is up and running with its first hotel in Germany; Accor announced a big digital strategy in London yesterday and also acquired a stake in the small boutique group Mama Shelter. Everywhere today, whether in the digital or physical world, individualism is gaining ground. With the merger of TUI Travel and TUI, the world's biggest tourism group has been created. How reassuring that market researchers in Pisa attested good prospects for tourism in future.
Demand for Italian hotel real estate is not very high at the moment, everyone is waiting to find a bargain, as our Italian correspondent Massimiliano Sarti discovered at a sector Get-Together. The industry's "brand supermarket" was recently discussed at Expo Real. Obviously little shakes the chains' confidence. We also include this week a comparison between the hotel industry in Vienna and Munich, which may make you smile, and a contribution from our legal expert on disabled job applications which is quite a serious piece.
Last chance to join the "Investment Barometer" today! What you think of the mega roll-outs of the chains? One minute will suffice to answer the 5 questions. Only those who take part will receive the result! Your vote counts – here is the direct link!

Dear Insiders,
A hotel group, which is quietly trying not to stretch its balance sheet, is consistently upgrading existing hotels and soon intends to increase its presence in Italy six-fold. The group in question is the Spanish Barceló Hotels. Our correspondent, Beatriz de Lucas asked EMEA CEO Raul Gonzales for details on the current strategy.
A current study also attempts to identify the successes in market penetration and price policy secured by private hotels and chain hotels in Germany. Brand hotels are catching up, yet independent hotels are increasingly doing better - and are even generating better rates. The midscale segment is almost entirely owned by private individuals, which means there is still room for the chains here.
The issue of hotel real estate will remain a hot topic in autumn. We have summarised the core statements from the Expo Real - original statements can be found on our YouTube page "The Hospitality TV". The basic impression: everything is positive. This also sits well with current observations from the US: There, the market is growing sharply, and hoteliers forecasts are satisfied.
How much more quality can budget provide? This question couldn't be satisfactorily answered in the 20 minutes available at this year's Expo Real hotel conference. Accordingly, we have asked Mark Thompson from B&B and Marco Nussbaum from prizeotel for further details on the issue. Both think, the price is the wrong approach.
A look forward: HospitalityInside leaves Expo Real 2014 and moves smoothly into planning for the ITB 2015. As usual, we will have a joint stand at the event - meanwhile on 110 sq.m. - and will also organise an X-PERTS Lounge for the first time. In this separate area, companies will be able to present products and solutions. If you'd like to take part and/or would like co-exhibit at the stand, please contact us at office@hospitalityInside.com.
Immediately after the ITB, the second B2B trade fair "loop" for luxury hotels will take place in Frankfurt. The premier last year was a resounding success. This year there will be even more hotels and buyers which thanks to systematic appointment agreements will have two days to get to know each other intensively. HospitalityInside will again be media partner at the event.
We are also partners for the "Investment Barometer" by Union Investment: Let us know what you think of the mega expansion plans of the chains. One minute will suffice to answer the 5 questions. Only those who take part will receive the result! At the end of October, the current survey will finish. Take part now under this link! Your vote counts. - The full editorial …