Editorial

Dear Insiders,
Choice Hotels continue to support their franchisees with new and practical tools. From a strategic perspective though, the large US franchisor still doesn't have the right drive for a sweeping expansion into Europe. Competitive pressures are increasing so managers are questioning locations, standards and contracts for Europe, and in particular for Germany.
I attended Choice's Europe Convention for the third time, this time in Dublin. Shortly afterwards, our correspondent Sarah Douag interviewed the Vice President Choice Europe in Paris and also talked about France where the chain has most franchisees in continental Europe.
In Germany, online services such as Airbnb offering private holiday rentals and accommodation are referred to as "the grey hotel industry". In the international parlance, they are referred to as peer-to-peer websites. Meanwhile, their business models are being analysed and criticised and individual cities are taking rigorous action. Nevertheless, ever new models are being created, especially in the US - including the direct rental of entire villas. Macy Marvel takes a look at the international scene, presents the problems and explains reactions and new models.
It's rare that we busy ourselves with India. Over the next few days, the government there will decide on whether the hotel industry be given infrastructure status. This would make life easier for the industry in many areas, including the finance and purchase of hotels. This national decision will also impact on the development of international chains.
After the general election in Germany, Otto Lindner and others are beginning to wonder about the future of the reduced VAT rate applied to the hotel industr; last minute provider Hoteltonight continues to grow and HRS Chief Tobias Ragge has again expressed his views on the Cartel Office in a small talk round. – The full editorial…

Dear Insiders,
Blackstone is likely to have been happy about the global PR generated last week as Hilton announced its IPO. Hardly anyone asked any questions. The fact is though, that only five percent of Hilton's total value is to be offered to market. In the background then, Blackstone will retain control. Our contribution takes a closer look at the issue and takes down some of the media hype. It's disillusioning.
Employers are also likely to be more sober in future when they provide references for departing staff. Thanks contrary to the employer's own sentiments does not now have to be expressed on reference letters. The German Federal Labour Court has spoken.
For Sonnenhotels, the sun is shining again: The family company has fought its way out of the economic shade. Now, growth is again on the cards. An example from our "Small Chains" series.
And finally, a pet issue: Even the dog is a guest. Resorts welcome dogs, though business hotels are still reluctant, experts criticise. Savvy tourism experts in Austria again prove they have a good nose: They founded the consortium "Tierische Hotels".
Apart from that: Scandic has founded a second chain for Northern Europe, GBI has convinced IHG and Hilton to undertake a double project and the Swiss are travelling more, but making shorter trips and less at home. – The full editorial …

Dear Insiders,
Yesterday's last news is hot news: Hilton Worldwide offically announced to return to stock exchange. The company has filed a registration statement with the Securities and Exchange Commission for a proposed IPO. Owner Blackstone hopes to generate proceeds up to 1.25 billion USD as the IPO proposal revealed. In 2007, before the worldwide financial crisis started Blackstone bought Hilton for 26.7 billion USD and took the company private. This was an all-time record, the IPO again would be a record.  Next spring will become exciting then...
Just a few weeks ago, we reported on "big data". German Linder Hotel reports on how it is focusing on the mountain of data it holds and how it wishes to turn this to its advantage: It combines, quite legally, the data on its bonus programme clients with their profiles on Facebook etc. and so gains a range of new information for new measurable promotions.
Are there more lawyers on a hotel construction sites than construction workers? You could certainly get this impression from our article this week on rising construction costs. Architects and project managers confirm the increasing pressure in construction - to which even the banks contribute!
Less exciting is the "Morning Newspaper" or "Hotel Newspaper". Holiday guests like to know what the weather will be like and what they can do. Yet printed information in time for breakfast can also be expensive, despite advances in software.
Our Swiss correspondent Birgitt Wuest has looked at Hotel News over recent weeks and can report that demand in the Swiss hotel industry has stabilised in the first half of 2013. In Paris, government again plan to raise taxes for luxury hotels only. And in Germany, politicians don't have a clue of the frame conditions of the tourism industry.
And finally, we would like to say that, at the last minute, a further co-exhibitor has registered for the joint stand organised by HospitalityInside at Expo Real at the beginning of October: the British budget chain Premier Inn. This brings the number of hotel groups at the stand to 11, and the total number of co-exhibitors to 18. We are pleased to see how the joint stand raises the industry's international profile at Europe's leading real estate and investment event. – The full editorial …

Dear Insiders,
Is the CEO of your business a financial or real estate expert? Does the CEO get fired every two years? Then your hotel group is in vogue. Or does your CEO have his own Chief Financial Officer and, on top of that, the time to talk to him? Then your hotel group belongs to the old guard! The new hospitality leaders are non-hoteliers. They are seen as creative and non-conventional thinkers. What can these new leaders in the industry do better? How long will this change last? hospitalityInside.com talked to former CEOs, executives and head hunters.
The trigger for this article was last week's CEO change at Accor where the last Colony shareholder took over the operative business. Sébastien Bazin told Accor employees in Paris: "I am here to stay!"
In Austria and in the Engadine in Switzerland, the Italian tourists are staying away. The "Ferragosto", the long vacation, has just ended and confirmed the sad tendency of the first half of the year. 30 million Italians remained at home. Only Germany reports a growing number of tourists from the economically severely shaken country.
When Deutsche Hypo started to finance hotels 30 years ago, there were no reference numbers back then. Today, Deutsche Hypo still finances hotels and it is to remain this way. However, internal pressure makes stricter selection necessary. Executive Board member Andreas Pohl provides an insight into the banks' way of thinking and their standards. Even though many readers have told me horror stories about banks, I am happy to hear a banker express his personal thoughts here. Maybe in this way we shall be able to encourage other banks to tell us more about their dealings with hotels.
The news is as colourful as always and this colourful hospitality world is reflected in the 3rd joint stand of "World of Hospitality" at Expo Real this year. There have never been as many hotels at the trade fair for property and investment as this year! 16 hotel businesses and hotel specialists look forward to new contacts with banks, project developers and investors. Take the 10 hotel groups alone that are represented with more than 27,000 hotels and 3.1 million rooms all over the world! You will find renowned names of the people you can meet at the trade fair on our homepage!
If you want to join the hotel conference on the first day of the trade fair: 32 top-class experts from eight countries will debate the current financial and property subjects of the industry. For the first time, there will be a CEO panel – with 3 CEOs. You will find more information in the report on our homepage! For non-subscribers as well. - The full editorial…

Dear Insiders,
Accor has obligingly waited with the announcement of its new CEO until we returned from our summer break ... And so we are today able to report comprehensively on what happened behind the scenes this week in Paris. It is unusual that a shareholder switches to operations. As Colony Capital representative, Sébastien Bazin has put a lot of pressure on Accor CEOs over recent years, now it’s his turn to be subject to the pressure. Though there’s no need to worry about him, French media describe him as relatively unscrupulous.
Many countries have meanwhile issued warnings against travelling to Egypt. Moevenpick can already see evidence of the collapse in tourism in its results. "It's tough", says Area Manager Alan O'Dea. Orascom chief Samih Sawiris is also very optimistic: He expects "business as usual" for the next winter season.
Ramsey Mankarious provides some insight on movements on the hotel investment market today: Europe will have to accept that money flows of the future will come from Arabia and Asia. The equity expert will also participate on a panel at the hotel conference at Expo Real.
Online lawyer Peter Hense leads us into quite a different world again. He describes how hoteliers can defend themselves against false or unfair accusations on ratings portals - or not.
Of the smaller news today, one or other might appear familiar; like every year, we report on the most important events from the summer break in order to keep our archive up to date. But from now on, we are back with you every Friday until Christmas. I wish you today a pleasant read! – The full editorial …

Dear Insiders,
Only recently, futurologists reported in the "Design Hotels Arena" how 10-year old children "advise" their parents and them on the purchase of individual goods. The influence of internet giants like Google, Facebook, Amazon and others has been increasing constantly.
Here is our summary for you – with increasing worries in view of the current news: the Amazon founder purchases the "Washington Post", a media legend; and Google and Facebook & Co are said to have provided US intelligence NSA with data... The futurologists mentioned precisely these internet giants in the Design Hotels Arena. Those, who do not think of their own interests, social and medial manipulations, are blind...
Today, at the end of Ramadan, we are dealing with an increasing number of travel-keen Muslims. Shaza Hotels is the only luxury hotel group that fulfils their needs of halal and more. The Shaza concept, however, provides this in a new lifestyle concept, which can also be visualised in Europe.
In our series about sustainable hotels, we introduce the Asian serviced apartment brand Ascott today. The brand was able to achieve the target goals of its "green" programme scheduled for 2015 already one year after the introduction. Meanwhile, their guests carry reusable shopping bags instead of plastic bags.
From the news: interesting staff issues, IHG and Motel One earned a lot in the first half of the year, a HSMA survey in Germany reveals the industry's turmoil concerning rate parity, Dubai strongly profited from the Chinese, among others, in the first half of the year, and the Chinese award several countries satisfaction points...
With this issue, hospitalityInside.com starts its two-week summer break. We will be back with our next "hot" news for you on August 30. The hospitalityInside team wishes you good summer business and/or a good rest! – The full editorial …

Dear Insiders,
Why do investors and banks often trust only large international chains? What justifies the bonus enjoyed by the chains over professionally managed private operators? Private and medium-sized enterprises struggle to secure finance today. We have heard horror stories from our readers on exactly these issues. Yet we have left emotion to one side in our article today and asked private hoteliers and consultants to think about their own image and the chains…
Breakfast is meanwhile anything between coffee and croissant and huge buffet... In the resorts, a veritable breakfast competition has been long underway - and has become a question of profitability: We have found a hotel which spends 17 Euro per guest on breakfast!
The new AIFM Directive for funds entered into force in mid-July in Germany; its introduction will mean new costs for companies. Hoteliers also face additional costs from new requirements with respect to barrier-free entry.
Adrian Zecha is obviously not in a position to buy back his Amanresorts from DLF. Hyatt, Meliá and Orient-Express also publish their half-year and quarterly results, and Grandhotel Heiligendamm finally has a new owner since yesterday – and hopefully he will be able to pay the price… As a surprise, after 6 months of searching Four Seasons introduced the group's new CEO yesterday - from the real estate business.
In two months, Expo Real is back. For the hotel industry, Europe's leading trade fair for real estate and investment has become an ever stronger magnet, also thanks to the activities of HospitalityInside. We provide an update on our joint stand "World of Hospitality", on the hotel conference, on networking events and on our marketing special. Partners can still take part. – The full editorial …

Dear Insiders,
Two days ago, HRS received the 2nd caution by the German Federal Cartel Office. This time, the best price clauses are being criticised in more detail. Indeed: Now the German competition guardians are connecting themselves with colleagues abroad. This could grow into an avalanche: Now all OTAs have come into the focus. It looks as though the rate parity will soon fall. However, HRS has not surrendered yet.
Destinations can very quickly feel when the regional marketing is not functioning well. That is why there are also several discussions at the moment between various institutions in Austria who all would like to and should market the "Beautiful, Blue Danube". Critics find fault with the "well-trodden lines" and "paper tiger" mentality.
Morocco, profiteer of the Arabian spring and the European financial crisis counts among the markets with potential. However, even more guests are also wanted here – and the mass tourism. The Moroccan Tourism Minister, Lahcen Haddad, explains.
Because the search for new talent is becoming increasingly more serious, Kempinski CEO Reto Wittwer is altering the course: He is now calling the hotel general managers to the task and stripping the central personnel department of that power: "Corporate HR brings no value".
From the news: The Oetker Collection grows further with the prestige resort, Frégate Island Private, the parent company of Trust, Worldhotels and IFH has resold the companies and with the imminent resignation of GM Friedrich Niemann from the Waldorf Astoria Berlin, Hilton's course is put to question. Dirk Iserlohe from E&P must defend himself against accusations of witness bribery in the sale of a retirement home in Cologne. – The full editorial …

Dear Insiders,
The Heiligendamm story offers material for the big screen … A heavy silence rules among all partners after the new buyers have stood under suspicion of fraud. The core issue is to what extent the current legal registrations are valid.
This rings of gloom and doom. But ironically, the group named Titanic is riding on the wave of success. The Turkish Ayguen family by no means wishes to suffer a shipwreck with their hotel and restaurant group. In Berlin, they are currently building their German flagship, near Gendarmenmarkt. In Turkey, they have already made a name for themselves with city hotels and resorts.
Berlin: The hotels are still fighting valiantly while the tourists flock. Meanwhile, capital insiders see several dark clouds gathering in the sky: Will the Messe Berlin be able to retain the trade show business with its reconstructions? The ensuing question is only one of the shadows that have fallen over the city and its hotel oversupply.
At the moment, everyone is talking about the data spying by the USA and many do not know: The hospitality industry is one of the popular targets of data attacks because it stores most payment data in accordance with its financial systems. Today, our editorial expert and lawyer, Peter Hense, explains the consequences for Managing Directors and Boards of Directors should one be able to prove these data protection violations. – The full editorial …

Dear Insiders,
The hottest news of the week occurred last night – once more regarding the sale of the Grand Hotel Heiligendamm: The "Ostsee Zeitung" reported that the Rostock Public Prosecutor's Office searched the business premises and offices as well as the flats of the new buyers in Berlin yesterday. The six persons accused were charged with fraud and professional deception in the purchase of the Grand Hotel Heiligendamm. According to a statement by the Public Prosecutor a "falsified financing confirmation" was presented during the purchase negotiations. As a result, the 30 million Euro deal has ruptured. What will come as the next one? We will stay closely tuned.
Google Hotel Finder has answered our professional interview questions with one to three sentences. A company could not demonstrate more drastically that it is not interested in communication with the hotel industry. And not at all in transparency.
We could not be discouraged by this and asked two online experts, Bruno Wolf and Marco Nussbaum, to comment on the flimsy answers. Then the world looks a little different. Moreover, we inquired with an eCommerce specialist: He installed a Google Hotel Finder calculator half a year ago. His summary: At the moment, AdWords is the clearer and more favourable booking model in the Google world.
Transparency also is not necessarily the strength of the Turkish hotel market; I noticed this in the many questions during the latest investment conference in Istanbul. I asked two well-known experts in the Turkish market to provide us with "tutoring" in the matter of investments, yields and markets.
A London-based consulting company has conducted a study of the Serviced Apartment market in Europe. The EU is directly intervening in travel package rights; hotel transactions in Germany have been tracked for the first half of the year; with Travelfruits, a club for luxury travelling, making a name for itself; and what has personally surprised me the most in the weekly flood of news is the fact that German citizens feel that the media is especially corrupt. – The full editorial …