Editorial

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 …

Dear Insiders,
The world of hotel real estate keeps us on our toes in this edition: Louvre Hotels is now officially for sale - developer Willemijn Geels reports; the recently announced sale of the Balladins hotel portfolio has failed to go through; in the InterContinental Berchtesgaden, an operator switch seems to be underway, and Dorint paid the lease debts for its flagship hotel Maison Messmer in Baden-Baden.
There's also an article on new records: Transactions on the German hotel real estate market are breaking new records - for the first time crossing the EUR 2 billion mark! Never before has so much capital been on the move in Germany!
This also means: The hotel construction boom in Germany will continue unabated for the time being. Although developers still fight over top locations - as one discussion showed - there is still "lots of room" in Germany - especially in good B locations or busy micro-markets. The chains are currently attracted to those locations where medium-sized hoteliers previously felt they were the top dogs... from competition comes displacement.
For the moment, this change is not perceived as a wave. But a closer look is required when large chains such as Accor change their entire strategy: They also have the financial power to buy hotels. Sébastien Bazin, CEO of Europe's largest hotel chain, explained at the "CEO Panel" at the Expo Real hotel conference why he is suddently ready to invest millions in the acquisition of economy and midscale hotels. Only cash cows are still being coddled. Much more flexible yet hardly more dynamic is the strategy of the Rezidor Group. Alongside Bazin, CEO Wolfgang Neumann explained how you could push an "asset light" strategy forward with selective lease contracts and fewer brands. The two top managers embody the ever sharper divide in the hotel business: real estate appreciation contra hotel expertise.
And in the broader context: Dubai and Doha are in the process of learning from the mistakes of other markets. The "Vision" conference recently focused on how mega events fun parks and mega malls can impact on hotel development. Now, everyone fears stagnation, falling returns, higher construction costs and increased competition for staff. The cream in the land of milk and honey is melting...
And just one more thing on the Expo Real: We have put together some photos from our networking event "BRICKS & BRAINS". We also asked co-exhibitors at the "World of Hospitapity" joint stand why they take part in the trade fair and how they saw current industry topics - all on camera. See the result on YouTube! Photos and video links are all to be found on our Page 1.
And now a small request: Our "Investment Barometer" in collaboration with Union Investment runs until the end of October. Please take part and answer the 5 questions - and you'll receive all the results in detail at the end of the survey. – The full editorial …

Dear Insiders,
The Expo Real in Munich was a success for all - especially for hotel exhibitors. Their statements today prove one thing: Hotels finally have a fixed place in the memory of real estate and investment experts. More and more of them are finding their way into hall C2 and to the "World of Hospitality" - this is a physical indicator. On Monday and Tuesday, for several hours the stand was extremely busy. The other indicator is the good talks between all participants as the obviously available and gigantic sums on the capital market which are now also looking for their place on the hotel market.
That the Expo Real has developed into a platform for the hotel industry is clear from trade fair statistics: Initial analyses from yesterday reveal that 30% of all participants at the 2014 trade show are interested in hotel real estate. The figures, that is 11,070 persons, up 1,070 on the previous year.
As initiator of the joint stand, the networking event "BRICKS & BRAINS", as organiser of the Expo Real hotel conference and as publisher of the SPECIAL, hospitalityInside shares the delight of the 20 co-exhibitors at the joint stand and other hotel exhibitors at the trade fair with respect to the resonance from the market.
A super mood, even better than last year, characterised the three days of the Expo Real. We have summarised news and opinions from the trade fair which show how hotels have no established themselves as popular assets in the large real estate pool. We also provide a summary of the Europe panel at the hotel conference. Further reports will follow.
In other news: Treugast has also presented its investment ranking for Germany and Austria and  Duesseldorf-based LMI Management explained details on their new acquisition Resort Land Fleesensee. Also, A-ja Resorts and the new Alp Style Hotels have not yet found their feet in the resort segment, yet already they have fixed their sights on the big cities. Alongside the announcement for the next Super 8 in Freiburg, Wyndham still has a few locations up its sleeve, and the new Meininger CEO Navneet Bali from London has for the first time spoken of the status quo and plans after the acquisition of the German hostel and budget hotel group.
Last but not least: Did you already log in for our "Investment Barometer"? 5 clicks for 5 questions require one minute. Participants will receive the detailed results. Here is your direct access!

Dear Insiders,
I will see some of you at Expo Real in Munich, starting on Monday. The investment and real estate industry seems to be well off thanks to the low interest rates, especially in Germany; the hotel industry should also benefit from this fact. The first news reports in advance such as a new special hotel fund or market analyses hint at continuing positive development. Russell Kett, Chairman at HVS London and keynote speaker at the hotel conference, already talks today about the question, whether the industry has to fear another economical crash or not. We will report on all subjects. Through various activities at Expo Real, hospitalityInside will be right up close to the happenings for you.
For the first time, we will have a polling terminal at our booth – now, trade fair visitors will be able to participate easily in the current "Investment BAROMETER", carried out by us and Union Investment. Of course, you are also able to login online – you will find details in the respective article on our homepage. This time, we would like to know why the roll-out of most hotel chains does not work out...
Last week, Choice Hotels announced new expansion targets in Istanbul; however, CEO Stephen P. Joyce surprised his listeners with a totally different tone: "We'll attack the market a lot more aggressively using more capital in the future," he told hospitalityInside.com resolutely. The Choice account is full, the homework as a technology business has been done, the services for the franchisees have been fixed. From now on, everything is primarily about deals in Europe – especially about multiple deals. Moreover, three new staff members will establish specific contacts to investors etc. in future from Amsterdam.
Compared to Choice, easyHotel is very small with only 19 hotels at present. During the inspection of the second hotel in Germany – in Frankfurt – Achim Marowsky of the German master franchisee i.gen hotels enumerated how additional revenues can be generated with a low-budget product.
Today's interview with the General Manager of the legendary luxury hotel Principe di Savoia in Milan leads us away from these down-to-earth figures. He explains, amongst others, how this member of the Dorchester Collection wants to maintain its quality.
From the news: at Romantik Hotels, nothing is very romantic right now – the new chairman Michael Simon just resigned, only three months after taking office. And firms are far less likely to take on more debt when their CEO is compensated through options according to new research. – The full editorial …

Dear Insiders,
We all need some fun say cruise guests thus preferring club and resort ships offering extensive entertainment programmes. Environmental aspects are of next to no interest. However, they should be, particularly when reading the second part about the polluting ocean liners. Slowly, the shipping companies are taking initial measures to save energy, water, gas and to reduce waste, first and foremost, the AIDA ships.
The major providers of serviced apartments in Germany are ready to take their own initiative to further develop the still young segment. Since last autumn, Adagio, Adina, Citadines, Derag Livinghotels, Marriott Hotels and Boardinghouse Consulting have been working together in order to prepare definitions and guidelines for interested investors. The group will present its results at the Expo Real hotel conference on Monday, October 6. Today's detailed article will give you a first taste of what to expect.
Expo Real, for which we will provide a final update next week, will likely radiate lots of optimism including the hotel investment sector. At the 6th "Hogan Lovells Hotel Day" in Berlin two weeks ago, experts attested to Expo Real's bright future – despite the fact that the EU and the ongoing crises surely won't serve to drive away our worries.
According to a recent survey by Treugast, the current crises and rising energy costs are also dampening optimism regarding the operational field of the German hotel industry. Another issue regarding Germany is an ongoing struggle for "motel" as a designation for downtown budget hotels. You will learn what the affected Munich-based Motel One Group has to say about it. In this issue, you will also learn about recent trends in tourism throughout and south of the Alps. Our colleague Fred Fettner discovered destinations that entice people into the woods via social media.
On the other hand, the international Alpnet platform founded four years ago, triggers rather cautious enthusiasm. People in Switzerland might possibly be frustrated again since yesterday: the government decided that weak hotels are not allowed to convert hotel rooms into secondary homes. This could accelerate the decline of medium-sized businesses.
If you need some encouragement, have a look at page 1 and our announcement of the spa workshop about cross selling: Rizzato Spa-Consulting and HospitalityInside aim at supporting spa hotels in optimizing their marketing, making it measurable and driving up profit margins. Register! – The full editorial …

Dear Insiders,

Moxy is here: The first journalists were able to visit the budget baby in Milan. And now? The PR mix from Ikea and Marriott has kept the media cogs turning for a year already. But why? Moxy is a baby for which Marriott does not take responsibility and which Ikea officially doesn't want to commit itself to do either. Up to now, the expansion has comprised only of announcements which currently are again being postponed... The developers and implementers between Ikea and Marriott - those at the seldomly named company InterHospitality - provided some interesting details for our Italian correspondent Massimiliano Sarti. Ramesh Jackson sees Moxy as a super career springboard for unskilled staff at the hotel. The RevPAR at the budget hotel is to be improved with more expensive "premium rooms". It doesn't sound as if Moxy-baby is a finished child.
For years, Alexander Winter and his team have been carefully feeling their way forward and have refined their concept. Now they are certain: arcona Hotels & Resorts will in future expand only with the serviced apartment brand LIVING and no longer with classic hotels. Why? This niche is more profitable. At the opening of the 4th arcona LIVING in Munich last Friday, Winter gave away a few details.
And it's back to school with the international shipping companies: They haven't done their environment homework for a long while, as German NABU now shows: The "dreamliners" of the world pollute the air with diesel fumes and particulates, obviously causing illness and death. The environmental footprint of these floating hotels is terrible, as author Ralph Langrock shows in the first instalment on cruise ships.
Dorint Hotels made the headlines again yesterday in the German real estate newspaper "Immobilienzeitung". Allegedly, Dorint is to clear its flagship hotel Messmer in Baden-Baden. Dirk Iserlohe from Dorint's parent company E&P clarified the situation with hospitalityInside.com. And in Austria, hotel sales slumped significantly on the previous year, the soon-to-merge travel giants TUI and TUI Travel want to make cost savings even increase together, whilst most holidaymakers spend lots of money for shopping on their travels.
In 17 days, Expo Real will start: We are prepared for this important property and investment show - accompanied by 20 Co-exhibitors. At the "World of Hospitality" in Hall C2/230, you will meet global hotel chains, hotel newcomers, consultants, project developers and Private Equity companies. Arrange your appointments! You will find all company names in our update on the front page, as well links to the hotel conference and more information. - The full editorial …

Dear Insiders,

Our pipeline article last week obviously drew lots of attention: Amongst others, Beat Sigg, Delegate of the Advisory Board of the Victoria-Jungfrau Collection in Switzerland thanked us for our "stance on the 'world champions of announcements'" and commented: This is "a real problem which weighs significantly on the credibility of the sector in the minds of investors and staff."
Nevertheless, we must also correct a typo in the pipeline table: Kempinski realised not 8 but 80% of its projects. Thank you to our attentive readers for pointing that out!
Our article on the costs of customer acquisition also deals with the "guest pipeline" in the broadest sense. In order to attract new guests, the hotelier must spend an increasing amount of money. These costs are rising faster than revenues in some cases. Once again a gulf is opening up. The drivers of this development are, inter alia, OTAs and Google.
Vienna International also has a "driver": its new CEO Rupert Simoner. In Poland, he gave a first insight into his strategy. He rigorously questions everything. I ask myself here: Why has Warimpex as parent company allowed the hotel group to drift in exactly the opposite direction over recent years? Or was it fooled by its last CEOs?
In court, emotions have no role to play, especially when employees provide false information. An employer does not discriminate when seeking to determine disability status - and as a result cannot be sued for doing so. A decision from the Federal Labour Court in Germany.
And other news: Budget provider Wombat's based in Austria also intends to expand, recent wet weather luckily only ruined the summer in Northern Italy and, after recent court judgements, the bed-tax chaos in Germany becomes almost unintelligible - just like the behaviour of some hotel groups.
Jumeirah, for instance, presented its lifestyle brand for the second time - without mentioning that this was created in 2010 and then to be condemned to death. In cases like this, the long-term memory of hotel trade magazines and its online archives can be quite an irritation!
And the design brand Kameha is now a member of the Marriott brand Autograph with its new hotel. I've been thinking about the two latter points as well as the about the young "croissant runner" in the Adlon Kempinski Berlin. Read a remarkable story...
Did you read the announcement for our spa workshop on cross-selling last week? If you didn't, take a look at our homepage. The seminar price already includes VAT. If you have any questions regarding the workshop, please don't hesitate to contact me as always at maria@hospitalityInside.com. – The full editorial…

Dear Insiders,
The industry has two inherent quirks: mania craze for titles and announcements. The latter is a factual matter today – it is about the pipelines of the hotel chains. The table at the end shows all too clearly how differently this term is defined and communicated by them. We probed into the subject at hotel groups with various profiles and market priorities: such as Accor, B&B, Choice, IHG, Kempinski, Marriott, Mélia, Rezidor and Starwood as well as at the consultants and real estate brokers Christie+Co and JJL. There are many explanations for the barrel bursts in the pipeline... Nearly as many as titles in the industry.
The Ukraine crisis already shows statistically measurable effects on the business with the Russians in Western Europe. Destination marketers say: Depending on the escalation, the worst decline may yet come. In Austria, the Russian "strongholds" fear for their winter business. In Switzerland and in popular German destinations such as Munich, the luxury boutiques are probably suffering the most at the moment. But the Russians themselves are also insecure and distrusting because of the crisis: Apparently, some of them are now transferring their money ear-marked for German hotel projects to Africa. One developer even had to pray for peace with her Russian dialogue partners... Susanne Stauss and Fred Fettner kept their ears open in the West, across the borders.
Funds initiator August Jagdfeld has "bought his freedom" from the allegations concerning the Grand Hotel Heiligendamm, this week's news claimed. All the facts which the headline craving, hyper-fast industry newsletters did not report, you can read in our magazine: This deal was initiated by the prosecutor's office! Beatrix Boutonnet about the backgrounds and the difference to the case of Yachthafen Hohe Duene in Warnemuende.
The Roman government increased bed taxes for Italy's capital shortly after the holidays: Hotel associations see their country in a downward spiral. Therefore, a study carried out by the EU provides positive news, stating that all of Europe remains a travel destination with growth potential. In Germany, long-distance coaches are on the rise: 14.5 million people used this means of transportation in the first eight months of the year. In addition, there is a new study about hotel management agreements, and yet another manager has left Steigenberger...
And finally, we would like to make the following announcement: On November 14, Rizzato Spa Consulting and HospitalityInside will be organising a workshop on spa marketing & cross-selling. How can you sell well-being? Dagmar Rizzato and I see a great need to catch up in the spa industry, where revenues are partially stagnating. This will be an interesting day for hoteliers, spa/marketing managers and others. You will find all the details on our page 1!

Dear Insiders,
After our two-week summer break, we are back again – relaxed and rejuvenated! Expo Real – for many an important trade show in the fall – will take place in six weeks. Our preparations and deadlines are in full swing; you will find more on this subject in the coming editions. In the footer of this newsletter, you will already see the names of our current trade show partners.
The internet is characterised by a permanent dynamism. After B&B Hotels announced their Germany-wide online and mobile check-in in July, we also asked Marriott and Scandic Hotels about their experiences. The feedback certainly confirms one thing: Guests WANT this innovation!
Starting September 1, the Grand Resort Bad Ragaz will be breaking fresh ground once again. The Swiss wellbeing and medical resort has been granted the – rare – permission to open an in-patient clinic. To this end, 18 design suites in the elegant spa suites tower have now been converted into stylish patient rooms. And the healthy diet is being hidden underneath the silver cloches! Peter Tschirky explains the new synergies between medicine and the hotel industry. Only a few businesses have the gift of being able to reinvent themselves time and again – especially in difficult times.
The Belgians are whining. "The labour costs are killing us," moans the Hotels Association, amongst others, and the trade union accuses the industry of acting unprofessionally. In her portrait of Brussels, our colleague Sarah Douag reveals why and how the Brussels Capital Region suffers, which is also reflected in her interview with the Secretary General of the Brussels Hotels Association, Rodolphe Van Weyenbergh.
Accor has wangled several hotels from competitor Rezidor, the US hotels have been performing much better in the meantime, and the results of other chains continue to underline that the industry had been well off in the first half of the year. HVS presents its first hotel valuation index for Africa. Our Indian colleague Hoihnu Hauzel questioned the sudden departure of Taj's CEO Raymond Bickson three weeks ago. Read all this – and more – yourself! In the News Mix, some news might seem familiar to you; as always, I rework these little important reports from our summer break – so that you will be able to keep track of individual events in the archive later as well. – The full editorial ….

Dear Insiders,
The waves of news in the office are subsiding, the number of people talking into their smartphones out of their deck chairs is increasing... Therefore, with this edition, we want to say goodbye and head off into our two-week summer break.
However, before doing so, we cast a glance at Vienna, where the expected flood of beds around the new central station is already under fierce discussion. A respective low tide will occur at Vienna Westbahnhof. The real estate prices at the central station are increasing, but mainly budget and middle-class hotels will be located there. People are therefore asking themselves in Vienna, who will still be able to earn money at all: today, the 5-star rates are scandalizing low and leading brands are incessantly spiralling downwards.
Italy's tourism and hotel industry is hoping for an upswing. The parliament decided to offer tax credits for renovations and conversions, amongst others. The first half of 2014 provided the Italian hotel industry with a roller coaster of emotions: the foreign demand was the only stable figure.
When a spa has lost its initial opening glamour and everyday life sets in, the revenue often stagnates. Then, the up and cross-selling activities have to be increased. How to discreetly induce the demanding guest to book spontaneously and in advance: Spa consultant Dagmar Rizzato, member of the editorial expert team, provides tips and examples.
From my conversation with Dagmar Rizzato, the idea arose to convey exactly this subject to hoteliers, their spa or marketing directors in a one-day workshop. Save the date: Friday, November 14, 2014! I will provide you with further details after our summer break.
Today's reports: Design Hotels, IHG, Hyatt, and Meliá published their half-year figures. Moreover, we are presenting several studies describing the Germans' never ending willingness to travel and spend money, the Americans' reserve to go on their own vacations, the continued low interest in smartwatches and fitness wristbands, and the consumers' revulsion of sponsored content.
Concerning the last subject, everybody should love hospitalityInside. Starting August 25, we will be on duty again in our office.
Then, the final spurt for the Expo Real registrations will start! Drees & Sommer decided to join the joint stand of "World of Hospitality" as 20th co-exhibitor. For the first time, a business is contributing an extra hospitality accent even though it has its own large stand at the trade show.
We wish you all a good time with family and friends – and a successful summer season!