Editorial

Dear Insiders,
Is the luxury hotel industry the big loser after the crisis? Is a wave of insolvencies looming on the horizon? And of all places in Germany - the stable and internationally highly praised hotel country? After the insolvencies of InterContinental Hamburg and the current insolvency of Parkhotel Bremen, the Fairmont Vier Jahreszeiten Hamburg was sold under price this week too. One thing is certain: Germany's 5-star hotels are hanging by a thread.
The evaluation of the consultants and bankers is supported by another current market analysis of PKF hotelexperts Munich. The situation in Great Britain is also difficult and unstable, as a recent report by Deloitte reveals.
In this context, the information provided by Vienna International is motivating: CEO Andreas Karsten talks of high profits in the last year. And he plans to expand – in Germany, driven by midscale and mixed use.
Financial experts are starting to get interested in the health market. Interestingly, a combination of hotel and health care has been developed in Italy, financed by private investors. However, will this be the kick-off of a wave? My opinion is: Let's wait and see! Despite all theoretical market potentials.
The hotel industry will have to find new ways to inspire young people as employees and guests. Two panels at this year's hotel conference at the ITB, the "ITB Hospitality Day", are devoted to "young travellers" and "Generation Y". More on our front page.
From the news: businesses from Qatar purchase luxury hotel properties in Berlin and France; the Germans remain fond of travelling in 2013; Starwood Hotels presented its annual report 2012, and more. The sudden departure of Four Seasons' CEO Katie Taylor this week was a surprise. In addition, Dr. Herbert Ebertz died of cancer on Wednesday. The funds initiator expanded Dorint Hotels into a chain. – The full editorial …

Dear Insiders,
Now even England's influential Travelodge chain has asked its Prime Minister to reduce VAT drastically. And the European umbrella organisation Hotrec are to do the utmost for a European flat rate. Studies demonstrate the dependence on diminished value added tax and jobs. Movement comes from the topic once again and it is welcome to be at the European level this time! This week also the Federal Council of Switzerland outlined a new plan for reduced taxes.
Taxes are among the determining frame conditions of the operational business. Today, however, the greatest problems always arise in hotel financing – and this is valid for the whole of Europe. My colleague, Beatrix Boutonnet, swept back from the convention of real estate surveyors with the question "Do we fall into the real interest rate trap?" Surveys prove that an increasing number investors fear for their money. The "Investment Climate Index" by Union Investment is far more positive.
The supposed "distribution trap" of the OTAs leaves no hotelier indifferent. So similar cries for help from the industry in Austria as well as Germany can be heard. While the Austrians await the soon to be served solid study, the Germans only continue to moan about it.
ITB Berlin begins in five weeks. The hospitalityInside preparations for the hotel conference are virtually complete: You will find the complete program description today on our Page 1 and within "Network". The 8th "ITB Hospitality Day" stands under one single motto for the first time - "Young": We will present young hotel concepts, young travellers, young CEOs and young distribution channels. We have invited people from half of Europe and Asia. It will be very diverse, interactive and exciting. - The full editorial ...

Dear Insiders,
Parting Chairmen of the Austrian Hotelier Association showed how lobbying works live as the association celebrated its 60th anniversary on Wednesday. Before the eyes and ears of Austria's Federal President and Minister for the Economy, Peter Peer and Sepp Schellhorn gave an irony-packed political speech making the position of the industry crystal clear. Everyone laughed and thought at the same time: there are competent leaders in other countries, though who would have the courage to do that?
A few hours later the new Chairmen Michaela Reitterer and Gregor Hoch took to the stage and certainly gave the impression that Austrian tourism would retain its position in Europe. A report from Vienna.
And news from Berlin: There, the ratings agency Moody's has caused a stir surrounding the Adlon financier Anno August Jagdfeld. The agency warned of a possible default by the Hotel Adlon. Jagdfeld also restructures Fundus Group.
Kempinski, the Adlon operator, has meanwhile joined the list of pilot companies for the new American last minute app "HotelTonight" which according to revenue managers tops the apps from HRS and JustBook. For us, also a reason to ask the two providers about the current state of play.
Ringhotels also looks back on its past this week as well a forward into the future: The company will become 40 years old today. Three women have left their stamp on the consortium over the last two decades and have navigated the many medium-sized member hotels through the finer points of distribution and marketing. At the moment though, the private hotels are struggling with different problems.
In our "Small Chains" series this week, we present H'Otello, and among other news, you'll find information on movement on the transaction market, hotel balance sheets and more. – The full editorial…

Dear Insiders,
For Sir Rocco Forte, the year hasn't begun so well: In February, a new operator will take on "his" hotel in Prague; he decided - unwillingly - to make an exit. Real challenges, however, face other hotels. It looks as if high leases, his inconsistent location strategy and inflated self-confidence are now making themselves felt – and with a vengeance. A mood report on the situation of the luxury boutique hotel operator.
Sonu Shivdasani, the pioneer of the eco-luxury chain Six Senses, now seeks his fortune in real estate. Last year, he had to sell the brand due to operational difficulties. Now, Sonu is making a new start with Soneva Private Residences. Details.
Lorenz Adlon also had a vision as proved by the three-part TV series that aired last week on German television. It kept the telephone ringing for an entire week in today's Adlon Kempinski Hotel Berlin. Last news last night in the Adlon context: Again, owner August Jagdfeld fights against new criticism after Fundus Funds' annual report 2011 became public yesterday.
The World War events featured in the "Adlon Saga" are viewed by experts as the cause of German Angst. They also contribute towards Germans looking at demographic change with concern rather than viewing it as an opportunity. The effect of an aging society are summarised today by our colleague Beatrix Boutonnet.
And other news: In Hamburg, InterConti will check out its last guests on February 1 - and will leave the city after 41 years. The hotel will be closed, the real estate will not emerge from the insolvency. Real estate consultants meanwhile report rising transaction volumes over the final quarter of 2012. This can also be viewed as a dangerous signal ...
The year has just begun and the ITB Berlin is moving ever closer. If you want to be right in the thick of things in the middle of Hall 9, we recommend a table at our joint stand "World of Hospitality". We also have suitable offers for small hotel groups and service providers.
Also, save the date please for the annual ITB reception in Berlin hosted by Cornell and EHL/Ecole hotelière de Lausanne on March 5th. For details see our front page or click the Cornell banner. – The full editorial ...

Dear Insiders,
First and foremost, the hospitalityInside team would like to wish everyone a Happy New Year! What will 2013 bring? Looking back on 2012, we see that the industry has been buffeted by many small issues, and that many battles are fought in areas which have nothing to do with hospitality at all.
The new Steigenberger CEO Puneet Chhatwal has been in office since January. I met him shortly before Christmas. Since then, he has been "looking behind the scenes" for six weeks and has drawn a number of conclusions. He will challenge managers who do not understand competition and profit margins, he questions the grand hotel strategy, and in his view, InterCity is growing too slowly. Chhatwal - a cosmopolitan man with a developer's mindset.
Our update on bed tax and VAT in Germany looks back on 2012 as well as forward to 2013.
In our "Small Chains" section, the developer of Loisium Wine & Spa Resorts explains why she would like to expand outside Austria: "Every small and cult brand can be used to make money today."
Our issue today summarises news from the last few weeks; Orient-Express Hotels is currently seeking "Associates" - similarly structured luxury hotels.
hospitalityInside will appear 47 times this year, hopefully always with hot news and interesting background articles from interviews, trade fairs, conferences and events. We will also continue to build our own trade fair activities: The ITB 2013 is only eight weeks away. Starting into the new year, we are pleased to welcome a new co-exhibitor at our joint stand: meinpep; TUI 4U will join the "WORLD of HOSPITALITY" at ITB. Are you looking for a presence in hall 9? There is still room at our joint stand. More on the front page of our website.. – The full editorial …

Dear Insiders,
How quickly the year has passed again... But are we all capable of keeping the speed? Are we able to reach proper decisions quickly? Many conversations towards the end of the year have centred on these two questions, and I detect an element of scepticism and even despair. All the more positive then is this sentence from a Christmas mail: "It's nice when you can count on your family, friends and business partners." I would agree: Especially because everything seems to be speeding up, confidence will ultimately win through. Despite Facebook, face-to-face business is more important than ever.
hospitalityInside hopes to be able to accompany you once again on this path in the New Year, both online and off. Since we were founded in 2005, we see ourselves as an "information network" in a dual sense. And that our sense was right is proven by the current media change. But we too would like to see more sources of objective and researched reporting. Speed must not be the only deciding factor and "I like it" must not be reduced to a mouse click.
The last edition for the year includes many year-end deals and news, including interesting personalia. As speaker for the German International Hotel Association and for HOTREC, Markus Luthe describes the challenges for 2013. My colleague Beatrix Boutonnet looks back and ahead at hotel property. Furthermore, she cites the ex-Swissair manager and author Rolf Dobelli, who analyses errors in reasoning and who believes: the world is now too complicated for our brain.
We would like to say a heartfelt thank you to all our subscribers for their loyalty and to all our media, event and trade fair partners for their support in 2012! We also thank our own staff, authors, expert and translators... The next edition of hospitalityInside.com will appear on January 11, 2013.

Dear Insiders,
In Berlin, local media have raised the pressure on Waldorf Astoria this week as an opening date has still not been announced. It will be "around the New Year"... That does not sound like an excellent start!
Whether Accor's new brand organisation will be a success remains to be seen. COO Yann Caillère, who presented the plans in Paris, described them as "not urgent but important". Accor's motivation is understandable, but the structure is complicated. All you need now, is an Accor organigram...
The Suvretta House in St. Moritz will also scratch at its old structure: With a bold master plan and a CHF 300 million investment, the Candrian family aims to make the world famous luxury hotel fit for the fifth generation. The Grand Hotel was exactly opened 100 years ago. An interview with the hotelier, gastronome and Head of Catering Martin Candrian, with his son and economist Reto as well as with full-blooded hotelier and Director Vic Jacob.
Change is the buzz word for this edition. A change in the media industry also demands change in company PR. The hotel industry though remains again slow and conservative in its response. PR agencies and managers describe the attitudes of their clients today.
Hotrec, IHA and OEHV also have the future in their sights: The industry associations are currently observing the allocation process for the new global internet domain ".hotel" - and for good reason!
The 3rd World Tourism Forum Lucerne will take place in April 2013 and hospitalityInside.com will again be on board as media partner; the ITB Berlin will in March for the first time allow travel packages to be sold; the Swiss Competition Commission has launched a probe against HRS, Expedia and Booking.com, and Unister has caused a flood of headlines this week. Discover the background issues! – The full editorial …

Dear Insiders,
For most hotels, public relations has become a fixed component of their business, even if budgets are small and the sector is universally known for being quite stingy. However, the PR flood of recent years will in future stand against ever decreasing media: In Germany, media are in clear decline. Today, a flagship of the economic press will appear for the last time - Financial Times Deutschland. Media struggling for survival are therefore upping the pressure: Without advertising, there is often no reporting. We asked 11 renowned and experienced PR managers from agencies and chains how media behaviour has changed.
The French are also subject to economic pressure, though Paris' hotel industry is doing well in the international comparison. Of course, things are different in rural regions. A background report on the current hotel situation after France's downgrade by ratings agencies.
Marriott's environmental activities read like a huge sustainability catalogue. Structured as the chain is, it has also established a global network here and included a whole range of external professionals in its campaigns. The focus is squarely on staff, as well as on the people in Marriott locations.
The Swiss operator of thermal baths and spas is not thinking globally, but certainly very regionally: It has opened its first thermal spa hotel this week in Germany's Spreewald region, right next door to an already popular public thermal spa. Just how such specialist hotels are filled was explained today by the Kannewischer brothers. And they intend to continue building thermal spa hotels.
In Spain, Barceló intends to grow to become the country's biggest tourism group, and in Paris Accor yesterday presented its new organisational brand structure for Europe, effective from January. The first appointments on executive level are announced; more next week. – The full editorial …

Dear Insiders,
Kempinski is pursuing its own agenda in Korea. At the beginning of this month, CEO Reto Wittwer brought things to a boil when he announced that he wants to become the first luxury hotel manager in totalitarian North Korea. This sounds cool. Wittwer's governor for China, Michael Henssler could not – or was not allowed? – to reveal all ingredients for this special broth. Nearly unnoticed by the great attention caused by the monster hotel in Pyongyang in North Korea, where Kempinski wants to move in, were Kempinski's plans to move into a mega leisure complex in Seoul as well. Hopefully, Kempinski will realise that too many cooks could spoil the broth.
In any case, the calculations and plans for serviced apartments and student apartments were accepted well. They promise "hot" yields for investors and operators. This subject was already discussed at Expo Real's hotel conference, The Living Hotels' 3rd "Serviced Apartment Camp" revealed weaknesses as well as opportunities, and GBI Board Member Reiner Nittka today compares parameters of serviced apartments and student apartments. In this issue, we are focussing on these profit-promising types of accommodation.
From today's news: Online agent HRS implemented a new search algorithm this week. A frustrating and intransparent "innovation" in my opinion. Or maybe not?
Last but not least: Even if it is still early for most people to think about ITB 2013 – for the organisers, it is approaching with rapid strides. For the second time, HospitalityInside will initiate a joint stand in Hall 9 with hotels, service providers and suppliers. Half of all the tables are already booked. If you want to participate in the "World of Hospitality" at the ITB, please contact Managing Director Michael Willems at michael@hospitalityInside.com. – The full editorial …

Dear Insiders,
After three postponements, it seems the luxury hotel Waldorf Astoria in Berlin is now finally set to open in “mid December”. But GM Friedrich Niemann is still unable to specify a concrete date. Why do other hotel chains manage to give a date, yet Hilton seems unable to? The task ahead is to resurrect its image and regain lost confidence.
Despite the obvious difficulties, I'm prepared to give the Waldorf Astoria a chance on the market. Two weeks ago, Friedrich Niemann gave me a tour through the near finished hotel: It certainly didn't draw an enthusiastic "WOW", but I did see many subtle details as well as expensive, highly sensitive materials and discreet elegance.
The 117 metre high Waldorf Astoria heralds the start of a new era in Berlin's City West: The cityscape will slowly change around the Memorial Church. At the end of 2013, the restructured Bikini complex will be followed by an integrated 25hours Hotel, and by 2016 there will be a second mega tower "Upper West" with an integrated Motel One: Low budget in absolute 1A location!
A performance comparison of luxury and budget hotel segments also fits in with these two Berlin reports. Which segment has performed best in the four large German cities looked at?
In Paris, our correspondent Sarah Douag met the President of Relais & Châteaux. Jaume Tàpies' concerns meanwhile come from Europe.
Hotelier Marco Nussbaum draws attention to a risk and an opportunity in our social media column - to the mixing of evaluation portals and sales. And much more. We wish you pleasant reading! – The full editorial …