Editorial
Instead of dry facts, colourful lifestyle content will determine today's issue. A spontaneous interview with Sue Brush, Vice President Westin, reveals how Starwood proceeds in terms of strategy with this brand as well. The consistent merchandising concept we know from Starwood's 5-star design brand W carries the "experience" label with the full-service brand of Westin. All the basic things business guests get in touch with are supposed to appear fresh and peppy. That is why the "Heavenly Bed" is now followed by the "Heavenly Spa", the "Heavenly Suite" - and all of Westin is in seventh heaven. These are the figures of success that catapult the lifestyle concept onto cloud number seven.
A particular Spanish contractor is also reflecting on lifestyle, as he wants to convey to his health guests beauty "from the inside to the outside" - via macrobiotic nutrition and appropriate wellness treatments. At first sight, many things sound similar, but there is a new, different form of smooth prevention behind this. We have noticed that macrobiotics is not as well-know in these parts, and that is why today's issue features two articles about this project and idea, which could be of interest to other health hotels as well.
Even Austria comes up with another new lifestyle hotel. It is really amazing how many clever individual proprietors this country has. For a short time now, three young entrepreneurs have been livening up the scene in Linz. They have started on time, as the picturesque town is the 2009 European Cultural Capital. As locals, they will hopefully have a better market appraisal than the Quintanilla/Alfonso family that moved here from Florida and opened the DaySha boutique hotel in Bad Ischl last autumn. Now, the family allegedly is in trouble.
In the end, let me draw your attention to the International Hotel Conference, which will take place in Rome in October, and for which hospitalityInside.com will act as media partner once again. We will be happy to be on site for you at another top-class location for meetings and exchanging ideas, in order to provide you with the latest first-hand information every week. By the way, Rome is worth it! It is not a show of grey suits, but a show of great content. Just in keeping with the IHC motto: "The dress is casual, the thinking is not!"
Have a great week!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Last week, hospitalityInside.com mingled with international architects, developers and hoteliers in Lucerne in order to get a feel both for how star architects change the silhouettes of entire world cities and for the real significance of new buildings in historical and new cities. So much was to be heard and seen in Luzern: Private investors set the architectural image and even lifestyle in entire districts. Subtly, the brands move in - and the DaimlerChrysler district and Nike Park, for example, are born. It's not difficult to imagine then the influence a hotel can have on the appearance and life of a specific district or even an entire city. Dubai is a mammoth example, the VW city Wolfsburg with its Ritz-Carlton Hotel another albeit smaller one. But what hotel investors have the courage to move away from traditional thinking in architecture? Urs Karli, hotelier from Lucerne, did exactly that. And he gives just a little away about the work and its rewards with star architect Jean Nouvel.
Fantasy is needed - also from Berlin based planers who are to re-style Stalin's datcha in Sotchi into a Kempinski Hotel. Kempi would prefer to say nothing at all about the project for the moment, but from a real estate developer and tourist perspective, it all seems very exciting. The project is what hotel history and hotel stories are made of.
Union Investment will presumably not be financing such hotels. At least, this is what the investment company's sober statements with regard to hotel finance would lead one to believe. Behind the Union Investment are the hotels held by the former DIFA fund - some news here.
As part of the series on our first readers' trip to Dubai, this week the GM of the desert resort Al Maha has his say on how his guests see luxury and the environment. And our guests report on how they found the journey. In the last three editions, we've not told everything about where we've been and what we did. This you can experience for yourself in 2009 when the whole trip will be repeated with another small and select group. Personal connections - as we ourselves know today - are the best basis for quality exchange of information. Keep an eye out for further announcements....
All the best,
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion, please! maria@hospitalityInside.com
The topic of design obviously appeals to many in the industry. And design on budget is even more attractive. That today's edition is quite "design heavy" is admittedly a coincidence of this week's news topics, the result, though, is indeed a mark of the times. More and more managers and guests are turning their backs on the monotony on offer from the chains. In Bremen, a real estate economist and a hotelier are putting the final touches to a budget design concept: With the new brand Prizeotel, they want to see just how much quality can be provided for just 59 Euros per room. They also plan the property in accordance with sustainability criteria. The concept certainly sounds good. Motel One, with its own budget design concept just a few years old, will look on with interest - as we all do - to see just how quickly good ideas find creative sequels in the shortest periods of time.
From its base in Austria, Vienna International takes the plunge into Germany - and not with any old concept, but with its two year old design brand angelo. Colourful it is, which in a city like Munich, is certain to find its admirers. Whethere service and location are enough to justify single room rates upwards of 130 Euros is debatable though. Only one city railway stop away is the brand new budget design hotel Motel One, whose rooms cost only half as much and offer not a whole lot less service for it.
We also took the opportunity presented by the angelo opening to ask a few questions of Rudolf Tucek, CEO of Vienna International. He spoke of the Group's strategy and expansion plans. The Austrians are emerging from their hideouts!
hospitalityInside.com too is coming increasingly into public view. We're very pleased to report today that our work as supplier of quality and reliable information has once again been rewarded. As of October 2008, we will assume responsibility for the "Hospitality Industry Dialogue" at the hotel conference at the Expo Real in Munich. After organising the "Hospitality Day" at the ITB in Berlin for the last 3 years and this year taking our first steps towards the ITB Asia, the responsibility at the Expo in Munich provides the perfect supplement in our internationally growing network. Our activity at the Expo now means that hospitalityInside.com is represented at Europe's biggest tourism fair, the second largest in the world. We look forward to forming new synergies with our partners! Our subscribers are certain to be the first to profit.
Hotel groups still ogling with business in Asia should be careful to read the offer made by the Messe Berlin this week: The special offer for a 3x3sq.m exhibition stand is only available in cooperation with hospitalityInside.com. Don't forget to tell your colleagues! All information is freely accessible by clicking on the word "more" in the ITB Asia logo.
And finally we'd like to draw your attention once again to our readers' trip to Dubai. One of our guests at the theme day "Human Resources" was Ulrich Wilhelm from Konen-Lorenzen in Ajman/Dubai. He describes the current staff situation in Dubai. And not everything's looking so rosy.
Enough material to read, learn and discuss!
Until next week!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Horst Schulze and his first Capella Hotel in Germany - it opened last Monday - are just as much in the media spotlight this week as the Dolder Grand in Zurich, which once again opened its doors just four weeks ago. With regards to the Capella Breidenbacher Hof in Duesseldorf, we'll have to wait to see whether the Group has learned from its mistakes from Lake Woerther in Austria. It seems Horst Schulze's past as former President of Ritz-Carlton still weighs heavy: If he fails in placing the Breidenbacher Hof as the luxury hotel in Duesseldorf right from the very start, many will be smirking smugly to themselves: Originally, plans were to operate the Breidenbacher Hof as a Ritz-Carlton hotel, then Schulze got in on the action. He knew the investors from before. Internally, the relationship between the current Ritz-Carlton President Simon Cooper and Schulze started to feel the strain and the two came to a settlement two years ago.
The Dolder Grand, the legendary Grand Hotel above Lake Zurich, saved for an incredible sum of money, stood and continues to stand in the headlines. Our correspondent in Switzerland, Silvia Pfenniger, has been closely observing developments through its first four weeks, has visited the hotel herself and has many sobering facts to report.
Fred Fettner in Austria - his attention caught by the many recent events in the Alpine republic - has researched the topic of "Gay Tourism" and has discovered results which should motivate every hotelier to pay closer attention to appealing to this target group.
In response to our sobering Budapest report last week, today we bring you an article on the situation of Hungary's spas. Here too Hungary is struggling: No demand is anticipated for new spas and subsidies are awarded only to the few developed destinations.
On our own account: hospitalityInside.com successfully completed its first reader's trip in May! In case you're interested in a repeat Dubai trip, which we now plan for 2009 as a result of the positive feedback we received, take a look at our programme and read our first Dubai report in which the German Industry & Commerce Office Dubai says why Europeans often misunderstand Dubai! Conversations and thoughts like those presented in the interview were all part of our travel concept.
hospitalityInside.com moves to the destinations about which we write in order to ensure first hand information. For this reason, we'll be supporting the Slovenian Times as media partner in its investment congress for the West Balkans in June!
And finally, our successful cooperation with the ITB Berlin will continue in Asia this year. hospitalityInside,com will be media partner at the 1st ITB Asia, which will take place in Singapore in October. We'll also accompany further activities within the framework of the trade far. Read more about this today and keep an eye out for future announcements. There's lots of news to report!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
What do the small pentahotels from Germany and The Atlantis mega resort in Dubai have in common? Both of them embody existing and well-known brands. The old Penta Lufthansa hotel brand has reappeared on the European market as the lifestyle brand "pentahotels" after more than 15 years of absence. And Sol Kerzner is boosting his Atlantis resort brand known from the Bahamas to new superlative dimensions on the Gulf. Both of them want to benefit from brand power.
Dubai has made a strategy out of this, as can be seen ever more clearly each year. The boom town on the Gulf is collecting more and more renowned hotel, entertainment and lifestyle brands. A worldwide "copy & paste" strategy with an effect like a permanent magnet, bringing the newest hotels an average occupancy of more than 70% right from the start. Nonetheless: at this year's Arabian Travel Market in Dubai, one could feel for the first time that the hotel business is no longer defined through volume alone. Slowly, very slowly, the discussion is turning to real content.
The two Corinthia hotels in Budapest are currently experiencing what it is like when a location is no longer financially supported and city marketing becomes increasingly poor. Then the hoteliers are on their own. However, Corinthia is still lucky. They are getting a new impetus with Wyndham.
Utell would like to convince more hoteliers to sail with them energetically through distribution channels as well. The former reservation platform has completely changed into a marketing and service forum under the umbrella of the mighty parent Pegasus, similar to Worldhotels.
Enjoy reading today!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
This edition is brought to you directly from Dubai - hospitalityInside.com has been on location for the last ten days. During this time our first reader's tour "hospitalityInside Dubai" was successfully completed. Our concept of presenting Dubai in just 4 days by means of carefully planned visits to selected locations and many discussions with insiders was rewarded by participants at the end of the tour with the question: "And where are we going next year?" We'll let you know. More on this in following editions.
Since Tuesday, those interested in Arabia have been convened at the Arabian Travel Market. This event too, like many things in Dubai, has become increasingly professional and international from year to year. All are in an excellent mood, all figures and analyses are positive - but day to day chat as well as trade fair discussions are beginning to discuss Dubai's weaknesses and failings. Inflation is increasing, staff are demanding more money and the weak Dollar to which the Dirham is still bound hardly easing the problem. The first report from Dubai today describes the small changes in lifestyle and a few trends from the world of hospitality; more detailed news of Dubai's hotel industry will follow next week.
In Germany, meanwhile, André Witschi made his debut before the press as Steigenberger's new Chairman; my colleague Susanne Stauss was present and reports on the Group's new figures. Our Swiss correspondent, Silvia Pfenniger took a look at water savings, inspired by a speech of Nestlé president Peter Brabeck. She also asked Swiss hoteliers for their tips on saving water resources. A top report which will hopefully fire discussion concerning the environment in your hotel(s).
Have you already turned your attention to the subject of internet marketing? The large chains report on their experiences. The conclusion: Bye-bye print media!
Our press announcements this week focus a bit on Arabia, and they show one thing: The trends from here will quickly drift over to Europe. Who wants to stay on the ball in Europe should also learn to how people in Islamic countries think.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
If you are in full action as a GM, many things look and sound different. Fritz Schenkel heads the Kempinski Chengdu at the gate to Tibet and tried to bring across the "other side of the story" during his vacation at home in Switzerland. He considers the worldwide criticism of China and Tibet a disaster for both parties.
The money market crisis is also a disaster in a monetary as well as ethical and moral sense. Our real estate specialist Karin Krentz summarises the events of the past few months in understandable words and poses the absolutely legitimate question about the competence and supervision of rating agencies at the end.
The Swedish Scandic group, which has not been too present in our heads since its separation from Hilton, is now going its way full of determination - towards Germany and Eastern Europe for now. The group is backed by a fair amount of financial power.
Everybody who wants to become a partial owner at the Palace Residence Club in Florence needs to bring along money as well. The Italian Fingen Group is beginning to build up fractional ownership models with stylish residences in historical palaces in Europe. The group's premiere will be with Four Seasons in Tuscany.
Among our interesting news: IFH, a renowned training institute in Frankfurt with numerous international hotel groups in its client portfolio sold its majority to a British investment fund - further education is being driven by capital. The University of Applied Sciences Bad Honnef-Bonn has also been owned by an investment company for two years now. Slowly but steadily, Germany is following the international trend of treating professional training and further education as yield objects.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
For good things, you sometimes have to wait... But now we have a chat with Andrew Katz. The London based manager is responsible for Blackstone's hotel assets and although he was a little sparing with the figures, he did provide some interesting insights into the mentality of the media shy investment company.
Somewhat surprised by our knowledge of the two new TUI brands this week was TUI hotel boss Karl J. Pojer. Even though he managed to avoid confirming our information clearly - we know how reliable our sources are. New is: TUI is to make the move into the business hotel segment.
Meanwhile, the IMEX in Frankfurt has become a truly international meeting place. During the MICE fair, two presentations were introduced to the public. The "Meeting & Event Barometer" confirmed Germany's excellent position on the international market. Now applied for the second time, the barometer has become somewhat more precise in its formulation of MICE trends. On the fringes of the IMEX, we also talked to representatives from South African Tourism on the country's activities in preparation for the Football World Cup 2010. My feeling was: Officials tend to avoid giving concrete answers preferring instead to concentrate on the "Spirit of Africa" which is to stretch beyond 2010.
Among today's news, you shouldn't miss: Arkona plc separates resorts and city hotels; a benchmark company in Austria has developed a tool whereby hotels can compile their own bank rating, and Abu Dhabi corrects its hotel forecast. More in this regard is certain to follow next week after the "Arabian Travel Market" in Dubai.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Architecture and design may cause shocks or delight. The inhabitants of the tiny skiing municipality of Celerina near St. Moritz were shocked by the suggestion involving their town being "adorned" with a 70-metre high hotel tower. In a purely democratic way, they gave Swiss top architect Mario Botta a slap! A hotelier from Lucerne, however, is not willing to go without the "big names": even his second "modern" hotel is a success. The names of the architect and designer behind the Moevenpick Hotel Hamburg do not have the international reputation of Mario Botta, for example, but their sensitivity shown with the conversion of an historical water tower convinced the jury of MIPIM. The award was celebrated together last week. A background story.
In Istanbul, the design issue is probably not as important: the market still holds a lot of potential for hotels! 70 of them are currently under construction in Istanbul alone. But apart from the chains, there are also initial boutique jewels.
One of the major players, Hilton, sees a lot of space for its Garden Inn and Hampton medium-class brands all over Europe. Wolfgang Neumann reports about the details of their strategy for Europe.
Last but not least, a dry German topic: it is about exclusion periods from unemployment benefits after notice.
Our news section once again adds spice to this issue - enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
Holiday Inn has really gone into overdrive, as I was able to see for myself this week in London. All today's and future hotels are to be renovated by the end of 2010 - some 4,000 hotels. "We are much more aggressive than the competition," CEO Andrew Cosslett says during the press conference. But are they better? As experienced hotel journalist, I really begin to ask myself this very question when I hear that a new Holiday Inn is marketed as a 4 star product, whereas a Holiday Inn Express as 3 star plus. The model hotel, which we were shown at London Heathrow, failed to convince me. All the same, my respect to this massive and up until now quite unique show of strength by the chain as they attempt to bring their core brand up to steam in just three years.
IHG is right on the cusp with its revamp of its middle sector brands. And should the Group, like Ritz-Carlton or Hilton, choose to determine rates by way of revenue management, it will presumably reap even greater benefit. A Cornell study took a look at revenue management. Our correspondent Susanne Stauss evaluated the findings with respect to the markets at home.
Guy Dittrich also listened attentively this week to a discussion at the International Hotel Investment Forum Berlin on budget hotels and learned of fine differences on the topics of environment and guest needs.
Hoteliers seeking to cut costs need not necessarily cross over to the budget segment. Instead they should keep an eye out for technology and progress in this field, as the discussion on hotel technology at the 3rd ITB Hospitality Day showed. This article is the last in a range of reports on the discussion rounds held at this year's ITB.
And two of the most interesting news items in recent days: A Russian has bought an Austria hotel group with most hotels in Germany. And that's only the start of Azimut's expansion in Europe. At the Kempinski headquarter in Geneva, CEO Reto Wittwer replaces his COO.
An interesting edition awaits. Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com