Editorial
Dear Insiders,
This week, Susanne Stauss dives into the flood of lifestyle brands, studies their descriptions and has found a lot of nonsense. Her conclusion: Lifestyle is again a commodity - but the chain brand managers have not yet tired of pushing this copy and paste wave further.
I explain the flood of brands as follows: CEOs only have eyes and ears for capital and investment - because most of them, as we know, come from the real estate and investment industry. As a result, they have no idea when it comes to operations and leave this business up to the top-creative super-trendy hyper-innovative brand managers. These self-proclaimed innovators then presumably stay up night after night exchanging chairs, materials, colours, target groups and words...
In Italy, investment CEOs and their investors are moving quickly forwards. The hotel industry is increasingly becoming a bargain heaven, as Massimiliano Sarti reports in two contributions this week. Everyone is going for the trophy asset. And the sector continues to struggle for revenues and occupancy.
Wyndham has acquired Dolce. Which hotel will be the next to merge? We still have 11 months of the year to go.
Preferred Hotels intends to push business forward in future with a "Residence" pillar.
In Zurich and Basel long-term projects take the next steps. And last Monday, 1,000 guests talked about both old and new business at the award ceremony for the "Hotelier of the Year". Many of them will see each other again at the ITB and IHIF in four weeks time in Berlin. Cornell and EHL have therefore already announced dates for their alumni event.
If you're bored before Berlin, then perhaps you could take part in our new online survey on the future of hotel online distribution!!! Or take a look at our spa marketing workshop on cross and upselling in March - the registration deadline is moving ever closer! The organisation of our joint stand "World of Hospitality" is also close to completion - if you still wish to get on board, please contact us... Details on all of this can be found on our page 1. – The full editorial…
Dear Insiders,
UNWTO, renowned polling institutes and STR Global expect 2015 to be a great year for tourism companies as well as for the hotel market, indeed they expect most markets to grow. For this reason, several releases today focus on these forecasts.
Not only the desire to travel persists, but also the desire for new brands and for acquisitions. But lifestyle is only interesting if you have the necessary spare change to implement the trend on the world's big stages.
For the Kuwaiti IFA Hotels & Resorts, this isn't a problem, and so they have changed the cabin character of their low budget design brand Yotel into a comfortable concept for the centres of the world's big cities. CEO Hubert Viriot on the expansion and key ratios of the strategy. He is also guest at the CEO panel at the ITB Hotel Conference on March 5 in Berlin.
Energy and stamina is now what's demanded of those hotels and funds which have financed in Swiss francs. Beatrix Boutonnet looks at the knock-on effects on the market of the decoupling of the Swiss franc and the euro in mid-January, and Fred Fettner describes the double-edged sword that this can be for Austria.
With this in mind, it's not difficult to imagine that after such financial surprises, bankers can't really muster interest for this special segment of real estate finance. A bank discussion round in Berlin revealed much prejudice and ignorance with regard to hotel real estate. This and more only for you!
Dear Insiders,
The year is only three weeks old but the abundance of negative news already gives one the feeling of being breathless again. In these difficult times, the Swiss tourism experts and hoteliers are trying not to panic after the de-pegging of the Swiss franc to the euro. However, this is easier said than done: the Swiss National Bank has dealt the hotel industry a hard blow. The surprising move to scrap the peg of the Swiss franc to the euro will probably cost one quarter if not one third of all businesses, says the association.
What are agreements and promises still worth today? Change of scene to Guangzhou in China. There, Worldhotels is currently holding a meeting. And the consortium is presently giving its members a sales promise – combined with a satisfaction guarantee. Those who are no longer satisfied with Worldhotels, will be able to terminate the agreement in future.
At the moment, Austrian hoteliers are very satisfied with the European Investment Bank: it just provided 250 million euros for tourism. For hotels, loans are available again – just in contrast to Switzerland.
The exciting and equally bizarre news continues today: allegedly, cannabis is finding its way into the wellness industry; IHG is currently trying to impress the participants of WEF in Davos with a new trend report about "Trust Capital"; Accor announced its revenues for 2014; an oil company is endangering Spanish island paradises...
But we are also looking forward: participate in our new survey concerning the future of hotel online distribution! Will OTAs die out; will chains keep their brand significance...? Read details about the 2nd luxury trade fair, loop, which takes place in Frankfurt after the ITB! And we are presenting the concept of the ITB hotel conference: this March, it will celebrate its 10th anniversary; therefore, there will be discussions with renowned experts and external parties only about the large trends in the hotel industry. You will find details on all this on page 1. – The full editorial…
Dear Insiders,
The terrorist attacks in Paris shook everyone awake anyhow. What does this mean for tourism in Paris? Sarah Douag provides first assessments. As well as permitted assumptions that hotel occupancy could fall deeply in the near future.
Austria's hoteliers are on the retreat: for the summer, the minister of economic affairs has announced a radical smoking ban in the gastronomy. At OEHV's annual meeting, the hoteliers also smirked with politicians about unemployment and the blatant lack of trainees. Currently, the industry has 30 percent fewer trainees!
The Asian Shangri-La Hotels are looking forward. They are open for all types of agreement and equity variants, as long as expansion proceeds – preferably also in Europe and the rest of the world. CEO Greg Dogan about the focus of the 5-star luxury and lifestyle chain.
The number of adults-only hotels has been growing in Spain only since the crisis. Hoteliers have found a specialisation and new revenue opportunities as a result.
The established real estate brokers announced record numbers for the German hotel real estate market. Never before have more than 3 billion euros in transactions been transferred in one year! However, the paths to new deals and hotel projects are becoming increasingly subtle and delicate, as the approach of the developer UBM from Vienna and the IHG shows. Yesterday, also Invesco Real Estate explained its differentiated strategy in London.
This week, hotels deals direct vanished from the market. The German OTA start-up, which started in December and wanted to attract hoteliers with only 5 percent provision, has given up already. You will find information on this matter in the article about HRS, as this shows how hard OTAs are fighting among each other. Fact is that HRS has a clear disadvantage in comparison to Booking.com and Expedia. Now, OTAs are allowed to work with two types of general business terms in the German market. This is not allowed to happen!
Since yesterday afternoon, frustration is running high in Switzerland: unexpectedly, the Swiss National Bank cancelled the minimum rate for the euro. In one day, Switzerland's prices went up by 15 percent compared to the euro, dollar, pound and other currencies… This is once again a hard strike for the hotel industry. More on this subject soon.
Today's edition offers enough dynamite for discussion – continue to discuss it at our ITB joint stand "World of Hospitality" – this year with a new profile. Among the most renowned co-exhibitors in 2015 are Horwath HTL and the Motel One Group. You will find more on this subject on page 1. – The full editorial…
The new year
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 …









