Editorial
Could it be that the rumour of the week about the imminent sale of Steigenberger to Marriott was a retaliation campaign of former employees? Even Dr. Ralf Corsten, Chairman of Steigenberger's supervisory board, who is rather considered a mastermind in the background, allegedly knew nothing about this rumour let alone activities of that kind.
Consequently, the floodgates have been opened to speculation. And in the middle we have the dynamic Chair André Witschi, who allows a short glimpse at the strategy he is following with Steigenberger for the first time after this week's events. And it says: tidying up! The investment crunch puts too much strain on the hotel group, and it is only able to divorce itself from old agreements very slowly. Anne-Marie Steigenberger and her daughters have lived on the "gold rush" for many years. Now they have to use all the more money in order to make their company attractive again.
Last week saw humming business in Singapore: the first ITB Asia was a complete success. Messe Berlin, the Berlin trade fair company, is pleased about 24% more visitors than expected as well as positive comments from both exhibitors and buyers. The trust in the ITB brand and the German organisational talent is amazingly big in Asia. As a German in Asia, you perceive this with respect. Being a media partner, hospitalityInside.com was on sight throughout the entire week: for starters, we will describe our impressions from the fair, and next week you will read more about the current hotel situation and up-to-date discussion topics in Singapore and Asia.
In Switzerland, the hotelleriesuisse industry association has drawn conclusions from a guest survey. By 2010, demands of guests will change criteria for awarding hotel stars. And based on the motto of "less industry sleaze, more objectivity", the association is filling its committees with external experts.
"Green meetings" remain wishful thinking, as our editor Simone Spohr found out. The hotel offers in this segment are far from being applicable.
Enjoy surfing and reading,
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
Dear Insiders,
The finance crisis this week too continues to keep the hospitality industry on its toes. Tour operators and representatives of the hotel industry all agree, tourism will be affected by the imminent recession. Across the globe, the ramifications of the events we've been witness over recent weeks will be felt in many forms. This week, hospitalityInside.com reports on the mood at various of the world's tourist hotspots.
Although the effects of the financial crisis are still not felt quite so strongly in the Middle East, it struggles against a different problem. There, rising construction costs, a lack of skilled labour and quality building materials are the talk of the day. The mood at the International Hotel Conference in Rome last week reflected the problems of the finance crisis, yet our correspondent Guy Dittrich, who attended the event, wasn't just confronted with tales of doom and gloom, but also noted a glimmer of hope. First and foremost, the large hotel chains see the crisis as an opportunity. In times of crisis, so the general idea goes, consumers look more than ever to what they know and trust and come to the strong brands in search of security.
Not least because of 9/11, the hospitality industry has learnt how to deal with crises. The results of a survey on "Sales & Marketing in Crises" are positive. No hotel chain spoke of lowering rates - and that, although it's certain that the crisis will reach their businesses. With the support of the "early warning systems", such as yield and revenue management, established over recent years, hoteliers have a good overview of reservations, are in a position to deal with cancellations and are able to fill rooms with other target groups. Drastic cuts to room rates were excluded by the hoteliers. In comparable situations, it has simply taken too long, they noted, before rates could be increased after all other markets had recovered. We hope that hoteliers will be able to stick to this approach.
Whilst I'm writing these lines, Maria Puetz Willems is researching moods and trends on the other side of the world at the ITB Asia. More next week. Have fun reading!
Yours, Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Dear Insiders,
The current financial crisis has also sent the share prices of the hotel chains plummeting - Wyndham, for instance, lost 75 percent! Nevertheless, our correspondent and economic expert Prof Macy Marvel from the EHL gives calming news: there's no reason to fear mergers and acquisitions in the industry.
For this first time this year, the Expo Real Munich made the "Green Thinker award", an award for responsible companies and project developers; our correspondent Guy Dittrich met many such characters in the Kruger National Park in Africa in an exchange of ideas in relation to the "Eco Resort" of the future. It soon became clear that the issues here weren't only related to solar energy and moderate water consumption, but also about the varying expectations of investors and the local population.
Not the environment, but the desire for wellness motivated gourmet chef Joerg Sackmann in the development of his "Indulgence Spa" in the Black Forest. In the end though, "eco" thoughts also characterised the project: The new spa also uses native woods and home grown herbs. Sackmann introduces his guests to the "roots" of aroma and scent. A perfect symbiosis between kitchen and spa.
Swiss Deluxe Hotels too plan to invest around one billion CHF in wellbeing. After rich patrons have meanwhile restored dilapidated grand hotels to their former glory, the noble middle class hotels follow suit. Their projects and plans are further proof that the Swiss hotel industry is finally about to return to its former prominence amidst the international competition. This, however, is not true of Switzerland's small and medium sized hotels: One quarter of them aren't in a position to survive, the study finds.
Our legal expert Joachim Jungbluth once again busies himself with the harsh reality for employers: Companies in Germany hardly have a chance to prevent a member of staff leaving to temporarily care for a family member.
In the coming week, my colleague Susanne Stauss will greet you here. I will be in Singapore where I will take part in the first "ITB Asia". Hopefully, I'll return with lots of news in my suitcase.
Have a pleasant week with few surprises,
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
News from Schoerghuber: Stefan Schoerghuber himself will take over management of ArabellaStarwood. The leader of a true empire of enterprises will be discussing everyday operational issues with his hotel managers in future. It is one of the most unusual human resources "decisions" of the hotel industry. Who would want to contradict the chief of chiefs?
For many, last week's focus was on the Expo Real real estate trade fair in Munich. In the end, the trade fair recorded 42,000 participants - not a trace of any crisis mood. The hotel industry is gaining increasing importance there. The "Hospitality Industry Dialogue" hotel conference, the content of which I arranged for the first time this year by commission of Messe Muenchen, attracted about 1,200 visitors with six panel discussions. Today and in the following issues, you will find summaries of the respective topics; in addition, we will make the panels accessible for download on our website within a short time.
The mood was quite subdued, but it was not extremely negative. Read a first report and a summary on how the new situation will affect the private equity scene. On Monday, Treugast presented its annual investment ranking for Germany and Austria. The top news is that the budget sector is becoming presentable in financial circles thanks to Motel One.
Among the briefer contributions, you will find another interesting staffing issue: the new CEO of Accor Deutschland has introduced a new management level.
Read for yourself - and look forward to even more insider information next week!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
A clever management consultant calculated that the landlords earn about 25,000 euros each time a toast is pronounced by the bands in the tents at the Oktoberfest in Munich. Next Monday, right after the Oktoberfest, the commercial real estate fair Expo Real will begin in Munich. Many topics will be discussed at the fair. The financial crisis will be a mega issue and hopefully the "Hospitality Industry Dialogue" too, where hotel and investment experts meet in six panel discussions. Starting: 10 am! You can meet the hospitalityInside team in Hall B3/Special Real Estate Forum over the course of the whole day.
B&B thinks that it indirectly profited by the crisis: in hard times, budget concepts attract even more travellers, mostly more business travellers. An Amex survey confirms this. Therefore, the French group regards itself well established in Germany for the next few months. Its expansion is progressing.
Women progress too, but not as fast as men do. However, they are clearly on their way up to the top levels of companies. Gabriele Maessen, GM for the new Leonardo Royal in Berlin, devoted her dissertation to the subject "Women in leading positions," shedding some light on the question of women's rights in the German hotel industry and animating us to conduct a survey among international hotel chains: how do these chains regard women? A "must-read" for men, too!
If male executives are not able to sleep after reading the matter - just try the new high-tech pyjamas of Travelodge....
After two cheerful Oktoberfest weeks, I wish all of us successful trade fair weeks and conferences featuring interesting subject matter in October.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
It is always exciting to see how new brands try to conquer Europe, and with what partly tiny differences they hope to assert themselves against competitors. Hilton is currently presenting its US brands Hilton Garden Inn and Hampton with a road show hoping to find enough investors and franchise partners. When a Hilton manager showed how many Hampton there are at a presentation in Berlin this week, it was primarily North America that was dramatically strewn with tiny spots for this brand.
Expectations are therefore quite big for Europe. Since the merger of Hilton & Hilton about two years ago, the managers in Europe have been working on the adaptation and market introduction. Now, the sportive competition with IHG and Starwood can begin.
I doubt whether the plans of hotel groups - and I mean all of them - can be realised as they have been so far. The first signals in this second week after the insolvency of Lehmann Brothers hinted instead that the worst is yet to come. We have collected further statements, figures and facts about the financial market crisis and its effects.
In a way, you can rely on women. They make 80% of all buying decisions. Our profile of this target group shows what tourist professionals and hoteliers should adjust to. And this is considerable: women have many facets... To put it soberly, this target group holds enormous potential!
PKF hotelexperts and hospitalityInside see a lot of potential in preparing fact-oriented reports as well. Your online magazine supported the hotel consultants from Munich in developing an database which allows you to gather fantastic profiles and market overviews over time. Our common goal is to provide first-hand objective, plain information instead of PR-intense reports with estimated figures or questionable secondary sources. At the Expo Real in Munich beginning on October 6, you can take a look at the first report "Hotel Company Profiles" at the PKF hotel experts' booth. The reports will be distributed as personalised e-books via hospitalityInside. For us, this initiative will mark the start of the planned "hospitalityShop", which will provide you with a large pool of studies, analyses and books over time. Get to know more about this after the Expo Real - we are just putting the final touches on the reports.
Yours, Maria Puetz-Willems
Editor in Chief
Any suggestions? Critique?
The financial inferno of New York makes everybody feel uneasy. How strongly will the most recent "black Monday" affect the world economy and the individual industries? It is all the more understandable that the financial heads of the major hotel chains refused to take part in our spontaneous survey. Who would want to spread additional scenarios of fear? Uncertainty sits deep anyway, and many are probably checking their involvement in international financial institutions. This is what we learned from the feedback. We will stick to this issue for you over the next few weeks.
As October will see a good many conferences, we have concentrated on "Eastern Europe" today. An experienced developer from Belgrade emphasised the situation of the Balkan countries, and our editor Fred Fettner provides a report on a booming Serbia and Belgrade. The conclusion: the path to hotel heaven is still long and winding.
In its recent survey, Deutsche Hypo considers hotel development in Mecklenburg-Western Pomerania, Germany positive but not euphoric. The market analysis featuring many figures and facts is part of the bank's first hotel survey, which also provides German-wide figures in a well-prepared form.
And finally, we will skip over to Asia once more, in order to draw your attention to the first "ITB Asia" five weeks from today. Head of the trade fair, Dr Martin Buck, explains the difference between the ITB in Berlin and in Singapore.
Two of today's three trade fair news reports refer to new events with a trade-fair character. But read for yourself...
Have an crisis-proof week.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
The announcement of the second new TUI hotel brand "Sensimar" sounds as poor as the announcement of the first leisure lifestyle budget brand "aqi" a few weeks ago. A clearly distinguishing profile from other already existing brands is not visible. And once again, TUI offers no details - as it probably doesn't know any itself. Thomas Cook does not sound stronger; yesterday the TUI competitor announced also a new hotel brand called "Sentido". This is no coincidence.
Both our wellness reports today show that competition in the well-being hotels has become reality. The Swiss industry association of hotelleriesuisse tightened its wellness criteria in order to provide transparency in the quagmire. For the successful hoteliers in the market, Bianca Spalteholz, our distribution expert, provides tips on how to increase their success with the aid of revenue and yield management. But seriously, did your spa manager ever try to sell treatments more expensively during peak times? What would your guests say to this? The results-oriented approach in the calculation of spa treatments is a real challenge.
Increasing turnover not cost savings is the approach of the Zarges von Freyberg Consulting in Munich, founded nine months ago. We introduce the "newcomers" of the upper hotel industry to you: they have been the first German consultancy as a partner of the Leading Hotels of the World for a week now.
At the small chain "Ghotel", all hell has broken loose: the former Posthotels are very agile. Either they want to expand or be bought. This is market-oriented thinking!
The Hospitality Alliance AG, only known as Ramada licensee up to now, is starting its own budget brand; Germany was a top holiday destination in the first half of the year, and Moevenpick and Scandic are happy about good results. Under the news, you will find more interesting reports.
And last, but not least: hospitalityInside invites you to a new special interest trip to Dubai! From January 9 to 14, 2009, we shall be combining sightseeing with expert discussions. Each day of the program has a special motto and, for our guests, we are inviting experts from the hotel industry and the economy to Dubai. Get to know "hospitality inside Dubai" and find valuable contacts. Read more in the column "readers' trip."
Yours, Maria Puetz-Willems
Editor in Chief
Any questions? maria@hospitalityInside.com
Dear Insiders,
The personnel roundabout was spinning this week at Starwood, Hilton, Wyndham, Worldhotels and Barwa.... The position of CEO is still vacant at Wyndham.
Alain Leibman has probably been performing some crisis management this week: A fire broke out at the showpiece resort Atlantis, probably due to construction works. Nonetheless, the hotel would open as planned in 19 days, said the General Manager. Dubai insiders doubt it.
In four weeks, the Expo Real Munich will open its gates once more - offering expanded exhibition space of eight halls and a hotel conference whose programme has been organised by hospitalityInside.com for the first time. Take a look at the programme of the "Hospitality Industry Dialogue" on the web and note the panel discussions. Industry experts unlikely to be met elsewhere have promised to come. The introduction into the topic will be a contribution about the investment trend in the first six months of 2008.
The "ITB Asia" is also approaching - in late October, the Berlin trade fair is venturing a beginning with an accompanying congress programme. hospitalityInside.com will be on site for you as media partners and will follow trends and developments.
In Germany, the busy consultant Stephan Gerhard found some time to give us a detailed report on the changes in his company. The Treugast is only a supporting pillar for him, as he is increasingly engaged in interests in hospitality companies.
Princess Helen zu Oettingen Wallerstein is also looking for a way into the hotel industry - this is why we are introducing to you the interior designer with a love for historical buildings in the "Newcomer" column.
In contrast to this, the report by our colleague Fred Fettner is almost frustrating. A survey in Austria has shown that nearly half of all entrepreneurs in the field of tourism have chosen their profession due to family reasons - and not due to passion or talent. I think this result can probably be transferred to Germany and Switzerland as well. This is maybe the reason why the medium-sized companies in these countries are so shy towards innovation and inflexible with respect to everyday business. On the other hand, they often invest millions in new concepts - without having analysed the market in detail beforehand.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Summer drama revolving around the Atlantic Kempinski Hamburg: thanks to the supposedly "lost 5th star", the run-down building of the luxury hotel has entered the limelight. Now Kempinski, the operator, is putting pressure on the owner Bock. And this brings us to the key question: how long are owners allowed to let their hotel buildings bleed white?
There is another drama behind the scenes at Best Western: supposedly eight million guest data were offered for sale in the cyber underground. Data theft has occurred at the Marriott Vacation Club in the US or Sol Kerzner as well in the past. The alarming fact though about Best Western is that the group does not tire to claim that the originator of this news is unreliable, and at the same time admit that there was a hacker attack at a German hotel. Best Western does not officially deal with the issue in detail.
The different explanations for the delay of the MBA for business travel management are just a minor summer drama. The Business Travel Association of Germany was seemingly informed too quickly and badly. Our editor Baerbel Schwertfeger received some strange answers.
Our real estate specialist Karin Krentz has had a sceptical eye on business methods of rating agencies. Although not too many hotel groups are listed at Moody's and similar agencies, you will get a highly interesting insight into the working methods and backgrounds of analysts who decide on the fate of real estate through a thumbs up-thumbs-down procedure.
And finally, we pose the question today as to whether life is better with or without the stock exchange. Stock exchange newcomer Rezidor thinks positively about it of course, while stock exchange veterans like Moevenpick or Four Seasons are of a different opinion.
And in the end, our smaller news show that the summer holidays seem to be truly over....
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com