Editorial
Dear Insiders,
Across the globe, the hotel industry suffers much less as a result of Airbnb than the housing market! That is the core statement from a long discussion at the Expo Real Hotel Conference last week in Munich. The panel was made up of distinguished speakers, including Airbnb critic and activist Murray Cox from New York as well as representatives from academia, from project development, from the cities affected as well as from the hotel industry. Facts presented by researchers refuted the story as put forward by Airbnb and showed just how significantly the giant had penetrated the most popular tourist destinations – and also how it is biting at the heals of the hotel industry. We have prepared the first instalment of our report on this issue for you today. Part 2 will follow next Friday. Once you have read both, dear hoteliers, you will certainly stop your lamenting over Airbnb!
Airbnb and Wimdu were both invited to the discussion, but neither responded. Since last week, we know what Wimdu's reason is: The former number 2 among the holiday home providers has been acquired by former number 3, 9flats. Roman Bach, the new Managing Director of the merged company, spoke with me on the background to the deal.
Data analyst STR based in London delivered facts and figures on the European hotel market in a keynote speech at the Expo Real Conference. James Parsons also had some words on Brexit.
Drawing on our conversations with hotel groups at the Expo Real, we have also summarised the news, inter alia from IHG, der Patrizia, Moxy, Zoku, TUI, Motel One and The Student Hotels. Further, real estate consultants and brokers presented their current transaction figures for Germany at the end of the trade fair. Even institutional investors are moving in on projects now!
On his return from a hotel conference in London at the end of September, Macy Marvel returned will lots of figures on the Spanish hotel market: Things are on their way up there!
The good thing about trade fairs and conferences is this: You feel the pulse of the market. As reported last Friday, the Expo Real was once again a bubbling hive of activity so that exhibitors at our stand "World of Hospitality" all returned home happy. We have produced two videos for you: Impressions from the Joint Stand and from our networking event "BRICKS & BRAINS". Take a look at our Page 1!
Trade fair statistics for the Expo Real revealed the following: 39,100 participants attended, 11,300 of these were interested in hotel/restaurant real estate – just as many as last year. This shows: The high participation of hotel exhibitors has consolidated this trend. We are therefore already looking forward to 2017. After the trade fair is before the trade fair after all!
And last but not least: Save the date! From 28-30 October, the German chapter of the Cornell Hotel Society will meet in Frankfurt. External guests are also welcome to attend the Saturday morning programme. Further information here.
Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Business was hectic at the Expo Real Munich, which came to an end yesterday with visitor and exhibitor numbers up. Happy faces had again just made their investments, whereas others were looking concerned about the disproportionately high prices and lease charges currently being demanded. One consultant spoke of wildwest methods. The mood among real estate and investment experts is at tipping point.
We also report today on the recently published Investment Ranking and the assessment of the German market by Treugast experts as well as from Steigenberger's corporate name change and we summed up the first smaller news. More comprehensive reports, including summaries from the hotel conference and more news, will then be provided next week. There was no mega news this time.
Baerbel Schwertfeger's interview with a Stanford Professor this week should be read with a little smile - not only in view of the many managers attending yesterday's pulsating trade fair halls. Title: The boss must be horrible. All belief in leadership with competence fails here.
Sarah Douag looks once again at the cruise industry: In contrast to the hotel industry, the cruise industry speaks with one voice, adjusts its products rapidly and flexibly to rapidly changing markets. Growth figures have wow character. There's a segment moving forward in seven-league boots!
Further articles today take a look at the broader picture: The International Hotel Association of Executives is working on a career management centre as well as for globally valid pension scheme for dismissed managers. More employers support long-distance study and highly digitalised companies generate better results. - An edition to learn from!
Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Just thinking about how much information has come in this week regarding the upcoming Expo Real in Munich, this trade fair has become tremendously important with respect to the hotel industry. We have already managed to touch on some of this information, and further content will follow in our next issues.
Expo Real itself will be much about funds, financing, and ringing tills. A consultant says: This bubble has to burst! We've gathered several opinions on the latest buzz words – a little teaser to get you in the mood for the trade fair.
Dirk Iserlohe, Head of E&P, uses the context of this trade fair in order to introduce his new HONESTIS AG. Under this roof, he will newly align the current company structure and straighten the close relations between Dorint Hotels and the E&P funds. The difficult restructuring process of Dorint Hotels, which started back in 2009, thus enters a new phase with new investors. Four weeks ago, we had a long, intense talk with Dirk Iserlohe. Our fund specialist, Beatrix Boutonnet, had asked the questions. The result is a very extensive interview full of figures and statements by a thoroughly self-critical fund manager.
In Austria, there is an official website for tourist professionals interested in crowd funding or crowd investing. It worked with the Harry's Home hotel group, for example.
The future will show whether the Carehotels concept will work or not. Anyway, Karina-Anna Doerschel is venturing out on a tightrope walk between hotel and care services. Her goal: "Families nursing their relatives at home should be able to go hiking while securely leaving their patients behind at the hotel." This concept is not easy, but it fully hits a seminal niche with high demand.
Absolutely well-covered by the media, AccorHotels introduced its new "Jo&Joe" concept: super sexy in its wording full of Anglicisms. Once again, a few marketing freaks have newly discovered the world. But the message behind it is really simple: AccorHotels is entering the low-budget segment. Full-stop.
The German Novum Group signed an MDA with IHG for the purpose of quick expansion in Europe. Messe Berlin, the Berlin trade fair company, is advertising its ITB premiere in China next May, and TUI is happy about a good fiscal year.
Right on time for the start of the trade fair, we have finished our new special issue, the high-class EXPO REAL SPECIAL. You'll find it on our website but also at our booth and in Munich trade fair hotels!
Moreover, we'll be restarting our "Investment Barometer" together with Union Investment today! What are your yield and risk strategies? Take part either online or at our survey terminal at the "World of Hospitality" at Expo Real.
Our entire team will be present at Expo Real in Munich as well as several correspondents of hospitalityInside.com. We're all looking forward to seeing you and having a chat!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The OTAs are gradually moving into every niche that has ever provided the hotel industry with a small income. Now, it's the turn of excursions and events. A multi-billion euro business there for the taking. Booking.com and Google presented "Booking Experiences" and "Google Trips" this week, and Airbnb even bought a start-up in this field this week. TripAdvisor is also moving in on the game – as is AccorHotels. Sarah Douag summarises what these portals, tools and apps offer at first glance.
The budget market is also moving into new territory: Yesterday, the Berlin-based project developer MQ Real Estate revealed its first hotel room, a wooden module on the roof of a Berlin parking garage: The start-up will build hotels from wooden modular units on the upper storeys of car parks. Hotel chains have already shown an interest, as what hotelier doesn't want the top floor in a premium location?
IBB Hotels is focusing on another niche, namely B and C locations. The Spanish company is currently in the process of conducting an intense analysis of the German market and is already in the process of building its next five hotels. In Poland it focuses on A locations. CEO Vladimir Saal on the plan to double the size of the hotel portfolio by 2021.
In France, the government has approved an emergency fund for tourism; after regulatory approval in China for the Marriott/Starwood merger, there's now the internal matter of personnel; and the EU has once again let the hotel industry down with regard to liability for WiFi use.
Here at hospitalityInside, we are in the final sprint for the Expo Real in Munich on 4 October. If you're planning on visiting the trade fair for property and investment and would like to make appointments with exhibitors at the "World of Hospitality, you can find the contact data in the individual portraits of the hotel operators, funds, financiers and consultants. These can be found as of today on our Page 1.
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
If AccorHotels can entice third-party hotels on to its booking platform, then Plateno can do it too. China's largest hotel group now offers all individual hotels as well as smaller hotel groups its help it placing their offers in Chinese distribution and social media channels, as well as providing translation, cultural training and a Chinese website. On hospitalityInside.com, Roland Paar, Regional VP Europe, and his eCommerce Manager Tomasz Janczak for first time present "Plateno Connect" – including concrete packages and prices, which are not yet online.
But it's not only worth reading hospitalityInside.com for that. Europe's fittest tourism companies are in Austria, and they are currently having a heated debate on digitalisation in tourism, and are once again hitting nails on the head. Slow progress in discussions at the EU level has provided an opportunity for rivals - for instance Korea. Korea is certainly no snail in terms of the speed of development.
We take a look at the broader picture, also in Almere in the Netherlands today. There, Carnival Cruises has opened its first hotel, together with a training academy for its own staff. With this impressive project, the cruise travel giant takes over 20,000 overnight stays away from the hotel industry in one fell swoop. An interview with Captain Hans Hederstrom and hotel manager Jan Hein Roersma.
NH Hotels has confirmed that its shareholder HNA has now launched court proceedings against the hotel group. The Chinese want to get back on board. A really strange story: A major shareholder sues his own company. The Chinese are marking out their claims.
Their interest in keeping a foothold in a European hotel company is justified. The majority of Chinese nationals are becoming increasingly willing to travel, are spending more and are also looking to Europe. By contrast, business travellers are becoming more cautious in light of terror scares; and they have little time for hotels without free internet access. These were the findings of two surveys.
In Switzerland, Airbnb has substantially expanded its presence. In the German market, the brands of the recently merged Deutsche Hotel & Resort Holding is making larger steps than it has taken up to now.
Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Four weeks ago, the Chinese government stipulated another 60 days to examine the merger of Marriott/Starwood in its country. The outcome is still open. The expected economic benefits for this year are slowly melting away... Will China protect its own hotel chains? Sarah Douag has assembled expert opinions. However, in the end, we were outmanoeuvred, too: The international law firms we interviewed on that matter in China withdrew their answers and prohibited us to use any of their comments – not even anonymously. A global power exerts pressure. I don't want to imagine how CEO Arne Sorenson feels right now. He has my sympathy.
Roeland Vos, CEO of Belmond, and I are sharing our passion for the real and honest. On Wednesday in Munich, he presented the new strategy of Belmond: luxury as an understatement is in, realised by "genuine people serving genuine people". The hotels, house boats, ships, and trains of Belmond will become "authentic escapes". This mixture will top all luxury master brands. By 2020, he wants to double the portfolio. Roeland presents himself in top form – just as he did at Starwood once.
Authenticity during holidays is also sought after in the budget segment, but with comfort, please! Therefore, glamping is booming. Unbelievable what is available in this segment: Tents with wooden floors, safari tents in trees, round wood lodges – and an endless variety of mobile homes. In Germany, Croatia, Austria, and France, simple camping sites turn into multifaceted holiday resorts, which are also taking away guests from hotels.
French hoteliers have real reason for concern: The hotel association GNI presented alarming figures for the summer season and is urging the government to limit the damage. Steve Joyce, CEO of Choice, recently contemplated on various topics such as rock bottom rates, loyalty and OTAs. TrustYou publishes an ebook with advice for the perfect guest questionnaire.
And I would like to briefly present to you the topics of the "Hospitality Industry Dialogue", the hotel conference at Expo Real, which takes place on October 4. In the meantime, the preparations for Expo Real are keeping us moving. The holidays are over, the final spurt has started!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Current market figures testify to the really good opportunities in the Serviced Apartment segment; however, the confusion concerning terminology still gives providers as well as investors/financiers a hard time. What is Serviced Apartment, what is Aparthotel, what is Longstay? After the industry summit in London in July, we are trying to bring clarification into the mixture of Anglo-Saxon and German definitions in today's issue. Another table shows the strong commitment of global hotel chains in this segment.
In Austria, a building contractor and two real estate companies are venturing into the market with the new brands b(l)ackhome and Phil's Place, introducing new Serviced Apartment variations – partly very aspiring concerning rates.
The fact that only profit from space utilisation counts at the end of the day is widely known by experienced hotel experts like the ones at Feuring. Today, the project developer, based in Mainz, is able to calculate locations and agreements exactly based on its own data base. Recently, Feuring has also taken over a few more things: e.g. asset management and even leaseholder activities in a few cases. The two Managing Directors Bardo-M. Feuring and Matthias Lowin explain.
What about Uber and Airbnb as companies? After all, both companies are being regarded as high flyers of the Sharing Economy. But, at the moment, they are more low flyers, economically speaking, with reported losses.
However, the spirit they called into tourism, especially Airbnb, is perceptible, e.g. also in Austria where holiday apartments were booked more frequently than hotel rooms in the splendid summer season. The figures from Switzerland, however, have been very sobering so far: 7 of 14 mountain regions lost considerable numbers of holidaymakers.
Furthermore, Carlson Wagonlit found out that "bleisure" travels are not increasing, despite common opinion; and in Austria we are wondering about the "Global Wellness Summit", taking place in Kitzbuehel soon: politics are supporting this summit with 300,000 euros of tax money.
This week, I also wondered about the coverage of the German magazine "Wirtschaftswoche" concerning Dorint Hotels: tendentious – and then just copied from the daily newsletters without verification the next day... My colleague Beatrix Boutonnet and I had, at the same time, so to speak, a very extensive personal interview with Dirk Iserlohe, Managing Partner of the parent company Ebertz & Partner. At the moment, we are quietly working on the complex subject of Dorint and Honestis, the new real estate corporation. It is always difficult to describe reorganisation processes. But it becomes tendentious when media are not willing to deal seriously with subjects. We, however, prefer to investigate more profoundly, as always. And I believe this is what you want us to do, dear readers.
Wishing you a good week.
Yours, Maria Puetz-Willems, Editor in Chief.
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Refreshed from our holiday in Croatia, we're now back at our desks and ready for the autumn! Our joy on holiday was only briefly interrupted by the border checks at the Austrian-German border near Salzburg: two hours of traffic jam for just three kilometres. Why must four lanes be reduced down to one in the main holiday travel season, without any reason? Children scream in the cars, caravans scratch their neighbours... This is certainly no good reference for Destination Germany. For tourists it's simply an affront! Lobbyists, please get to work!
The damage done to France this summer by the terror attacks won't be reversed so quickly. The initial figures are sobering. Paris in particular has experienced a dramatic fall. But Rome too has suffered this season - though as the only destination in an otherwise brilliant holiday destination, Italy. On the other hand, Germany has recorded new super results for the first half-year of 2016 - and is finally moving towards European RevPAR values!
A number of hotel groups are suffering headaches as a result of the imminent accounting changes under IFRS rules. In her research, Beatrix Boutonnet came close to becoming a financial auditor herself; though she leaves the answers to the experts from Colliers, JLL, Roedl & Partner, Jung & Schleicher, Bayern LB, DG Hyp and the Deutsche Hypothekenbank.
In Italy, Massimilano Sarti interviewed Damiano De Crescenzo, Director General of the private hotel group Planetaria which, under its own initiative, is in the process of setting up a network with other hotelier friends. An unconventional approach.
Over recent months, we have written a lot about China. Today, we talk about India. "Is India the next China?" Macy Marvel asks and sets out the potential and challenges facing the fragmented hotel market there with facts and figures – also compared to China as well as comparing national and international chains with each other.
The first two Aloft Hotels now allow room experiences activated by the guest's voice; in Innsbruck the industry is getting in a twist over a possible new player by the name of Motel One; and Thomas Cook outsources over 3,000 hotel contracts.
Today's News Mix also includes individual announcements from the last three weeks which you have perhaps already registered. This ensures our archive is up to date.
And last but not least to our own "hot autumn": In 39 days, the Expo Real Munich will begin. Our Joint Stand "World of Hospitality" will this time comprise of a record 30 co-exhibitors showing once again just how strong a magnet it has become in Hall C2. All names and information can be found today on our Page 1!
Yours, Maria Puetz-Willems, Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
In view of half of Europe enjoying its summer holidays in these weeks, today's issue is also a bit leisure-weighted. In this vein, we are seeing an upswing among resorts in Germany – a tourist region definitely without a guarantee of sunshine, but coming up with new concepts and brands, new operators and courageous financiers. Critically scrutinising banks urge hoteliers to become more professional here as well. "The financing situation has never been better for holiday hotels," says Juernjakob Reisigl from the small, expanding Explorer Hotels group, for example.
Regarding Club Aldiana, an upswing can only be guessed. The two Managing Directors Phillip Schmidt and Max-Peter Droll answered our basic questions, but they remain silent about figures, ideas, investments, and resort developments. Maybe this is only the new investors' fault. However, it surely does not create trust in the company.
A target group everybody would like to have are Chinese Millennials. But how to attract them? The answer is quite simple: with video blogs on social media channels where this group of travel-addicted FITs is roaming about. Marketing specialist Welf Ebeling founded a company with a Chinese star travel blogger and tells us how to virtually attract this smartphone generation today.
Marriott's CEO, Arne Sorenson, not only commented on the weak results of the second quarter towards media and stakeholders, but also spoke on Starwood and the fast-growing loyalty programme last week. This week, Belmond, Design Hotels, Choice, Hyatt, IHG, NH, and Meliá presented their results.
In Germany, rumour had it this week that the Airbnb competitor Wimdu is almost facing collapse. This would leave the market entirely to Airbnb. Apart from that, consolidation continues regarding tourist travel: Flixbus acquired Postbus, becoming an unchallengeable monopolist.
The Spanish summer season will be tremendous, but experts know that the currently high demand is only "borrowed" from Mediterranean countries in trouble. Greater fears are aroused by the absence of British guests as a consequence of the Brexit.
As always around this time, this issue will be the last one before our own summer holidays! By the way, I am packing away a painting book for adults in my suitcase – they are absolutely en vogue at the moment...
Our next issue will appear on Friday, August 26, 2016. We will be back in the office on August 22.
Sunny days and a relaxing summer!
Dear Insiders,
Within the space of six years, from 12 hotels and 560 rooms to 84 hotels with 8,000 rooms. The German company Novum Group Hotels managed precisely this huge leap. CEO David Etmenan today explains how the family company did this, both from an organisational as well as financial standpoint. Novum now wants to push forward in an even more targeted way and even more quickly with large institutional partners and international franchisors at its side. The group is now on the way to the Top 3 in the German hotel sector.
The Chinese New Century Group has also discovered Germany as a base for expansion. The privately-operated company with over 200 hotels and 50,000 rooms has now opened its first hotel outside China - in Offenbach near Frankfurt. A tasteful hotel, as Susanne Stauss reports. At the fringe of its official opening celebrations, she had the opportunity to ask founder Miaolin Chen a few questions. And what does he want? To continue to grow, also in Europe.
Because supply and demand continue to grow, the Polish market continues to attract more international investors, and of course operators too. The critical Polish are learning fast and are now also beginning to consider what makes sense and what may cost how much. A positive development, in my view. The 3rd "Sportlight Hotel Investment Poland" conference provided material for another summary article today as well as a more data-heavy market snapshot, published this week by Christie & Co.
And in the news this week: The emirate Ras Al Khaimah is currently touring its source markets in order to promote its tourism strategy. The Chinese continue to spend a lot of money on travel. And in Austria, the government faces making substantial payments to hotels after a ECJ judgement. Booking.com, Expedia and HRS dominate hotel distribution - nothing new here, but recent Hotrec figures are shocking.
In Nice, the recent terror attack has caused a crisis for local hotels - we have the first drastic figures. The season is over already, some believe.
The coup in Turkey last week followed by the extension of the state of emergency yesterday prompted me to contact a number of hotel experts in Istanbul. The situation is currently extremely chaotic. Only one thing is clear: tourism is suffering everywhere, and will continue to do so for a not-foreseeable future, and will presumably hit the smaller family-run suppliers first. Since the situation at present is dominated more by emotion than facts, and on account of speculation, I have decided to postpone a report on Turkey for the moment. – The full editorial…