Dear Insiders,
Yesterday, the turbulences of the last five months within Kempinski came to an end with the supervisory board changing the CEO: Vice Chairman Markus Semer, 39 years old, is taking over. He enjoys the trust of the shareholders as well as of hotel colleagues and he is supposed to bring peace and motivation back to the business. There was a lot going on behind the scenes, even though everyone was on a speaking ban.
Kempinski's criminal charge against Reto Wittwer last November triggered more than a wave of headlines in the media. Today, the former CEO explains to hospitalityInside.com what has happened since he fighted the suspected fraud and how he finally reached his rehabilitation, by being dispelled from any suspicion in the beginning of March.
Since a year and a half, since the surprising, incomprehensible departure of Reto Wittwer in October 2014, I have been silently following the story and kept researching continuously. The swift decisions and the short and rigorous explanations of the last weeks show: The story is still not completely transparent – the Kempinski owners from Thailand and Bahrain simply pulled the emergency brake. The priority was to avert further damage from the company.
Starwood shareholders should have been at ease in the last days celebrating their rising share prices. Marriott and Anbang have been fighting an exciting bidding battle – until last night. At 1am Central European time Starwood Hotels reported that Anbang will give up. For first details see the article. We will leave this article for today's issue untouched, as it still explains the pros and contras of the different merger options, based on yesterday's information.
Selling is always the focus at OTAs, even if they – as Google – are not yet officially or do not want to be categorized as such. Our summary of the panel discussion at the ITB Hospitality Day in March with Google and Booking.com can be found by our users on page 1; Terri Scriven and Peter Verhoeven show subtle, important distinctions in their expansion strategy.
The hotel association in Germany is now suing Expedia. A new study is out about the anticipated market performances in 2016/2017. Furthermore the ITB delivered new wellness indicators. A sad message which needs to be spread is that the German wellness pioneer Barbara Richter passed away this week. In 2002, we jointly published the trade book "Wellness + Wirtschaft". And I am sure that I will not be the only one who is going to miss her.
These kinds of headlines also remind us that money, greed and power should not always be in focus. Nevertheless, I wish you enjoyable reading today... Last but not least we would also like to invite all hotel real estate experts again to participate in our online "Investment Barometer" in cooperation with Union Investment. On April 10, we will close the survey. – The full editorial…

Dear Insiders,
The small robot was the hit at ITB Hospitality Day in Berlin last week. But it is a strange feeling to have an automated "co-host" like Mario at your side – even if he fascinated everyone with his radiant children's eyes and dancing skills. Mario still appears like a toy and there are no really useful, interactive acting robots available for everyday life yet. But they will come; therefore, software solutions, robots and smart machines could take over up to 50 percent of the jobs in the hotel industry in future, especially in the low-wage and unqualified job segment.
The panel talk after the entertainment by Mario provided food for thought. In the magazine, Fred Fettner examines the subject extensively with facts and figures and also compares Mario with Toshiba's female robot ChihiraKanae. On page 1, you will find a shortened version. And soon, you will be able see the respective videos on the subject at the website of ITB Berlin.
Today, nearly all of our articles are based on interviews and events at IHIF and ITB Berlin. Based on the new nuances at prizeotel, B&B and Super 8 it becomes obvious that the budget players have to sharpen their profile very clearly in order to survive. However, it is funny, that all players – and not only these players – have their own mega expansion plans and are thus increasing the pressure on themselves and others dramatically. This smells like imminent consolidation in the budget segment.
Louvre Hotels Group is slowly emerging from the shadows now. After Jin Jiang's appearance on the scene, CEO Pierre-Fréderic Roulot spoke in public for the first time at the ITB. Very quickly, Sarah Douag was able to elicit a flood of figures and hyper-dynamical plans from him. AccorHotels ought to listen.
What current consolidation looks like becomes obvious by the surprising and almost comedy-like act of the Chinese insurance group Anbang with a consortium backing it up. They are offering two billion USD more for Starwood than Marriott. Very soon, we will know how eager the Starwood shareholders really are.
Maybe, the global greed will cool down soon, as trend researchers have found out that global tourism will grow by 2 percent less in 2016. Terror and refugees are changing travelling behaviours. But China is moving everyone and everything; therefore, Messe Berlin is even launching its first ITB China in May 2017.
The 50th ITB in Berlin was an event of record figures by all means and despite all changes – even in the hotel hall 9 – the spirits were high and business was flourishing. Also the co-exhibitors at "World of Hospitality" had the same impression; in our YouTube video you can view some impressions from the stand and the conference.
At the same time, we would like to invite hotel experts again to participate in our online "Investment Barometer" in cooperation with Union Investment. On April 10, we will close the survey.
After the exhausting days at the exhibition, many participants are recovering during the upcoming Easter days. Just like us! Therefore, the next issue will not be published next Friday but on April 1!

Dear Insiders,
The participants of this year's International Hotel Investment Forum and ITB in Berlin this week appeared extremely dynamic, almost hectic. Capital and IT are driving the hotel industry – nothing else.
One of IHIF's surprises was the news that Rezidor will participate in the German prizeotel brand by Marco Nussbaum with a share of 49 percent. Many considered this a smart deal, and I think: it is a signal to the market that minor creatives should be taken seriously, and it shows these minors what they need to do in order to become fundable.
The brand frenzy won't stop: Althoff Hotels has announced Urban Loft – also ready to expand in Central Europe. At the same time the Althoff Group signed a joint venture with the Chinese giant Plateno Group to expand its Ameron brand in China. 
In the midst of announcements and rumours around AccorHotels, Sarah Douag took a closer look at their agenda – and we think: should Accor take over Carlson Rezidor with its 1,400 hotels, CEO Sébastien Bazin would mark the beginning of Accor's end. Instead, yesterday media speculated about a share deal between AccorHotels and the Chinese Huazhou Group. And there are other new rumours about Carlson Rezidor again...
At the ITB hotel conference, hotel robot Mario proved an absolute magnet – and the debates on digitization, OTAs and loyalty programmes attracted more than 1,700 people in total. Neither the IHIF nor ITB offered any mega news, but instead many good talks and thoughts off the record. Next week, we will report in more detail about all issues that dominated Berlin and the ITB Hospitality Day.
But those who are not in Berlin don't need to worry, we're still tackling many exciting issues: Sarah Douag reports on the growing online hotel reservation fraud, Susanne Stauss covers the increasing number of guests with allergies who make chefs go mad, but usually know how to help themselves. And in a guest contribution, Tina Froboese of BBG-Consulting in Duesseldorf shows how to be more efficient and profitable thanks to well thought-out kitchen planning. Sample calculation included. - Our team will be at ITB today as well. But next week, we'll be back for you as usual...

Dear Insiders,
The ITB is just around the corner. If the hectic this week is an indication of success, then it should be really buzzing in Berlin. Sector gossip will this time focus on Kempinski, that had to publicly apologise on Wednesday for accusations made against its former CEO Reto Wittwer. Yet as we said in our "Breaking News" on Wednesday evening, an end to the story is not yet in sight. Now, initial positions have been replaced from the background.
The issue of digitalisation at ITB conferences is also reflected in our hot-off-the-press ITB SPECIAL, which we release today as eMagazine. The publication will also be available free of charge on the ITB Hospitality Day and can be collected from many of Berlin's hotels, and of course also at our joint stand "World of Hospitality" in Hall 9/109. There you will meet experts in software, eCommerce, media, consulting and the hotel industry. All details can be found via a link in the corresponding texts or in the banner on our Page 1.
This is also true for our "Investment BAROMETER" which we launch today again. Together with Union Investment, we once again pose interesting questions on yield and top locations. You can take the survey live at the stand, or at home online.
The joint stand, initiated by HospitalityInside, this year awaits with something special: Together with the software company HSDS, we are launching a project intended to help managers of small and larger hotels and groups to keep an eye on competition, the market and reviews - and all of that in real time. A new app will offer direct benefit and value; can be used on a smartphone and managed via the new "Hospitality Business Cockpit". Also new: The user only pays for what he or she really needs. A description can also be found on our Page 1. Curious visitors are welcome at the stand.
And now to the magazine: Two weeks ago, Puneet Chhatwal gave us an update on the Steigenberger expansion. Sarah Douag also took a look at the new Jaz in the City in Amsterdam. She was very impressed, even if the target group wasn't yet sitting in the lobby. At Banyan Tree, we had an interview with CEO Abid Butt in the bag, before his contract was then terminated two weeks ago. Let's see what becomes of his strategy approaches. Europe at least, he had fixed in his sights. Choice Hotels has now grown by 16 hotels by way of unusual co-branding with Star Inn Hotels. A surprising milestone for the American franchisee, but the model sounds like a blueprint. arcona Hotels was once owned by Deutsche Seereederei - now, it will return to the group, but in a new constellation. For the mega chains Plateno and Accor Hotels, shareholdings have once again changed. Sébastin Bazin is now getting nervous: Within a few weeks, Jin Jiang has a greater stake than the Qataris!
That and much more in our news today.... Have a good journey, see you in Berlin!

Dear Insiders,
Our budget market series in recent weeks has shown just how close many concepts today are. This prompted me to ask Daniel Mueller, COO of Motel One, how they manage to stay ahead with design and lifestyle - and so stay ahead of the competition. Motel One now consistently focuses on expensive original design. "We have a value surplus!" he says surprisingly. What he means with this and what's new to follow, you can find out in the article.
Italy still has a lot of potential in the economy and midscale segments. And nobody knows this better than the chains; since 2003, they have increased their share of the market considerably. But: National brands still dominate. Now, a discussion has arisen as to what contract form is best for growth. Together with the author, Massimiliano Sarti has analysed the highlights of a large recent market study on Italy.
Have you heard of debt funds? In the US, this alternative means of finance is gaining momentum for medium-sized hotels. Here in Germany, it's still relatively unknown. But that's changing. Why? Our funds expert Beatrix Boutonnet explains.
In the US, Choice Hotels has made a surprising move into the vacation rental business and has become the first hotel group to enter into partnership with local providers of holiday homes. That this segment has lots of potential here in Germany too is confirmed by an analysis of the German Travel Agency Association. In Switzerland, tourism figures for 2015 are now available: sad. Demand from Europe fell back to the level from 1958. But there's cause for celebration for IHG, Marriott and Belmond: their balance sheets for 2015 are strong.
Since the ITB is approaching at a rapid pace, I would like to draw your attention to the OTA Dual, which you can see on Thursday at the ITB Hospitality Day: At 3:45 p.m., Terri Scriven from Google and Peter Verhoeven from Booking.com take the stage. More on our Page 1. - The full editorial…

Dear Insiders,
Morgan Stanley is sending new signals in the resorts sector: A fund by the London-based investment house is set to launch a joint venture with Falkensteiner Michaeler Tourism Group based in Vienna. This solves the problems faced by FMTG in the case of Punta Skala in Croatia. The pair also intends to develop resorts together in South Eastern Europe. At the same time, the hotel group is focussing its concept more on families and wellness - even for city hotels.
Demand for accommodation options with privacy has led to many chalet villages in Austria. Even construction companies have become bed giants here. Fred Fettner describes various schemes for the rental and/or sale of chalets, suites and apartments. Banks like these real estate models.
In the third and final part of our series on the budget market in Germany, we provide various facts and figures on the market players, their expansion and their market penetration as well as comparative figures to other EU countries.
Accor, Hyatt, Starwood, Rezidor and Pandox have published their results for 2015: It was a mixed year for them all. In France, bed growth is unabated; AccorHotels invests again in two young companies, for the resale of 11 Interhotels Due Diligence has obviously begun, and Choice and Hilton show the various strategies with which guests can be prompted to make direct bookings. And at Moevenpick, CEO Jean-Gabriel Peres has surprisingly tendered his resignation.
Are you already making your ITB plans? Have you already registered for the Cornell/EHL reception? More on this on page 1. We also present the next panel of ITB Hospitality Day: Here, it's about Digital Natives and the "investment guest". – The full editorial …

Dear Insiders,
We have already reported a lot about Airbnb, but I'm amazed time and time again just how much one can "learn" from this company: Today, Sarah Douag describes how city officials in large American cities are subtly manipulated with study reports and tax promises and how hosts/apartment owners are reconfigured as "union representatives". Airbnb obviously recruited many lobbyists from the US government circles. Quietly and secretly, a huge Airbnb web has been spun around the entire globe. Wow. But watch out! Who's failed to notice again? The hotel industry! Read about Airbnb's "Guerilla growth strategy" today.
Part 2 of our series on hostels and budget hotels in Germany looks at how hostels are growing in appeal through entertainment and how they are moving ever closer to budget hotels. Both segments currently focus on business travellers. In a nutshell: Both are competing with one another to improve their profile. MKG Hospitality provides additional information here with key ratios for 2015 for the budget market in Germany.
Beatrix Boutonnet asked investors, insurance companies and hotels how they see the current terror risk. Result: Capital has no fear of terrorism. It's all a question of insurance. But not everyone takes such a cool stance, as I know from numerous conversations over recent months. Some asked me quite surprised: "What sort of an answer do you expect? Greed rots the mind. It was the same in 2007/2008." We will see.
2016 at least could be a similarly strong investment year for hotel real estate, analysts recently reported. Tourism experts expect similar results: Germany's official statisticians reported the 6th record year in a row in terms of the number of overnight stays made in Germany. Best Western also explained this week that less growth is on the cards for Germany in its new European structure, though more for Central Europe. In Austria, Innsbruck, the third most important city destination in the country, wants to sharpen its profile. And Wyndham is one of the first chains to publish its balance sheet results 2015.
Last but not least, we are announcing our first joint seminar with our colleagues from hotelbau. In June, we would like to discuss a specific issue intensely within a small circle in Munich: Green Hotels. All speakers will report directly from practical experience. Please find more information on our first page. - The full editorial...

Dear Insiders,
In the never-ending dispute between hotel industry and the OTAs, there is always a slow stream of companies looking to help the hotelier with the direct reservation. Sarah Douag spoke with co-founder Charlie Osmond on the business model of the tech start-up Triptease and why they annoy the OTAs with their "price check".
In order to keep on top of the booming German budget market, we are today launching an exclusive three-part series in which Christie & Co summarises recent developments. Interview partner Constanze Maass sees hostels become increasingly attractive. From the investor standpoint, they are moving ever closer to budget hotels. We look at Terror and Tourism in a two-part series. Although tourism has all but collapsed in certain destinations, there is still a lot of optimism among consultants, risk researchers and market observers. Next week, investors, insurance companies and hotels get their say.
The market dynamic is also reflected in our smaller news articles today: Jin Jiang has silently gained a stake in AccorHotels. GCH distances itself from media reports claiming the group intends to convert 22 hotels into refugee housing. Union Investment saw record investments last year. The famed Cornell Hotel School loses its independence. And Frank Marrenbach of Brenners Park-Hotel & Spa in Baden-Baden is "Hotelier of the Year".
In four and a half weeks, dear readers, many of us will meet again in Berlin. Today, we publish our first focus on the "ITB Hospitality Day". Almost everything at the hotel conference on the Thursday at ITB will stand in connection with digitalisation. For this reason, the event will open with Europe's first humanoid hotel robot named Mario. The impact of robots and high-tech on the sector, including innovation labs, will be this year's central theme. More on this in the magazine and on our start page! Today, HospitalityInside also presents its stand partners at the joint stand "World of Hospitality" in Hall 9/109. This clears the way for agreement on trade fair appointments with hotel groups as well as with software, e-commerce and media representatives.
Anyone interested in B2B business in the luxury sector should take a look at "loop": The small tourism trade fair is set to take place for the third time – at a new date in April! We will once again be on board as media partner. More on Page 1. – The full editorial…

Dear Insiders,
In Turkey, tourism figures, in particular from Western source markets, have fallen dramatically - and Russian guests are absent altogether this year. There are crises everywhere. The Turkish Minister for Tourism is going to tour India and China in an attempt to drum up new guests.
The Swedes are trying to make the best of the situation: As part of their "Fast Track to Integration" scheme, they are collaborating with authorities in order to make kitchen staff and chefs out of the pool of refugees in the country. It's an experiment, but a good one.
Another experiment is the cryptocurrency Bitcoin. A Dutch hotelier and a Viennese wine tavern owner accept the virtual currency - but a whole lot more remain sceptical.
Slowly, it can no longer be denied that Alpine winter sport hotels will no longer be able to rely on "timely" snow for the high season. The weather has ruined the start into the winter season for the Austrians, only the glacier hoteliers were happy. And another statistic became apparent with regard to Austrian travel destinations: There's a certain fear with regard to "dangerous" countries. Terror now affects everybody - see Turkey.
Neue Dorint GmbH also granted us an insight into its balance sheet 2014: Dorint Hotels & Resorts report a "black zero" for 2014. Liquidity remains tight, but 2015 will solve various problems from 2014 - as Dirk Iserlohe from the parent company E&P explains.
AccorHotels and Eurazeo have together founded a new company which appears to be a shrewd finance vehicle for improving real estate values and hotel performance. Hilton adds to the sea of brands with "Tru", the Chinese love Europe and Germany as travel destination, Althoff Hotels want to expand and hand over greater responsibility, and our trend scout Oliver Pichler has identified high quality paper as success factor in the online era.
And last but not least about us and the ITB: With Private Palace Hotels, the team of exhibitors at our joint stand "World of Hospitality" in Hall 9 is now complete. Next week, we'll present all our stand partners. – The full editorial…

Dear Insiders,
At the World Economic Forum in Davos this week, sombre politicians tell the world how they are surrounded by chaos. To see where the fires are burning, they should take a look on a world tourism map. After the terror attacks, Egypt has not settled. Instability and fluctuation on micro-markets are again the norm. Current reports by Moevenpick, Orascom and Steigenberger prove just as much.
Italy is also suffering, though here the chaos has a domestic cause: Hotels have fewer and fewer employees, more and more hotels are being offered for sale by auction and important legislation has not got off the ground.
IT trends and the OTAs are a thorn in the side of all concerned: The Austrian Hotelier Association found in one study in German-speaking Europe that not even half of all hotels consider themselves to be "digitally advanced". Put differently: Hoteliers still haven't understood distribution - and are still not using painstakingly collected guest data for attracting more guests, as they themselves admit. The OEHV also plans to take legal action against the OTAs.
Our three articles this week - on Egypt at present, Italy in review/outlook 2015/16 and on the OEHV annual congress - show just how challenging it has become to be a hotelier. What the sector needs now are charismatic ambassadors, effective lobbyists in Davos and at the heart of government... But I've never heard of there being such people in the hotel industry. Or do you know any?
One can cling to statistics with hope though: The "World Travel Trends Report 2015/16" expects further growth in city travel. But trend researchers raise a finger in caution: For the first time, they mention that popular destinations will suffer as a result of terrorism, and they also warn of the negative impact of mass tourism. New songs in paradise?
The news that Paris still has the best image of all of the world's cities is good. It's like balm for the soul of the city. Berlin and Amsterdam also come in under the top 10 for the first time. Michael Altewischer from Wellness-Hotels & Resorts didn't agree with the top 10 spa trends from the US. He provides his comments this week from a European perspective.
This and more in today's edition. Take a dip into the confusing and confused world of hotels. I think 2016 still has an awful lot of new explosive material waiting.
The next ITB will give an initial impression here. The "ITB Hospitality Day", which we will organise for the 11th time will this year focus on the topic of digitisation. More shortly when all participants are clear. We are also preparing our "ITB SPECIAL" which we provide free of charge at the trade fair itself and in Berlin hotels and of course also online. If you'd like to use this marketing platform - production of the high gloss magazine has not yet begun. Our joint stand "World of Hospitality" in Hall 9 will this year also include Al Jazeera Media Networks, as already in 2014. Two places for participation at the stand are still open, last opportunity for last-minute decision-makers. More on this on page 1.
Alumni of Cornell and EHL should also resevere Tuesday evening ahead of ITB for the traditional Get-Together at the Adlon Berlin! More on page 1.