Dear Insiders,

One year ago in New York, I experienced the Starwood boss Steve Heyer live and very close for the first time: a colourless man. Now he is gone - and the board reproaches him for his leadership style. Categorically - no details offered. It was obvious that the ex-Coca-Cola manager had knowledge of the brand but he was not able to share it. On the outside, he seemed dull, but he obviously acted more aggressively on the inside. A more personal examination of the dismissal of the Starwood CEO this week.

Today, Starwood also appears in another brand context: in a deluge of brands, the chains are swamping us with at the moment. We tried to establish whether people need so many brands and why the chains just continue to create more and more brands.

People surely do not need any cigarette smoke but the German drama about the clouds of smoke is causing a haze. Therefore, my colleague Susanne Stauss put out her feelers towards Brussels and questioned the German legal chaos from a European view. In fact, the EU could still stop the right to smoke through a loophole - by means of the industrial safety act. This subject also gripped Anja Schmidt. Today, the designer suggests an "enjoyment area" as a concrete architectural solution for hotel managers. Smoking areas could easily be transformed by this… Read for yourself - an interesting idea!

Dear readers, you can also carry out some transfer work in the Internet with regard to videos. The latest study of an Internet research company in Hamburg reveals initial user trends: Which are the offers where users prefer Internet to television?

However, this Easter issue also offers reading matters for relaxation: The first hotels gained their first experiences in "Second Life," an imaginary Internet world, where you can earn real money and live life to the full. Let yourself be carried away… As 5 million users have done before you.

The small reports contain lots of colourful news… I wish you either Happy Easter in private with your family or - if you are in operations - simply sweet turnovers….

Yours, Maria Puetz-Willems
Editor in Chief

Any wishes? maria@hospitalityInside.com

Dear Insiders,

Hidden subjects dominate this issue: the emerging and useless deluge of hotel brands as we are demonstrating; hidden staff costs which some businesses are not aware of; and unnoticed court rulings that now suddenly allow commission payments for the placement of hired workers.

How an alpine hotel manager in Austria will be able to amortize his millions of investments will probably remain his secret for yet longer. However, with his business concept about the financial standing of hotel businesses, Werner Pauen is willing to disclose secrets - a further selection of the second "ITB Hospitality Day" in Berlin.

Eastern Europe is bringing an increasing number of mega partners to the scene: Now, Louvre Hotels and Warimpex have joined forces - Motel One and the Verkehrsbuero Group in Austria did so last week. In doing so, Austria distinguishes itself increasingly as a base for expansion to the east!

The industry is never at a standstill, not even three weeks after the Investment Forum, ITB and MIPIM. By the way: MIPIM is allegedly planning a second MIPIM in Cannes in October to compete with the Expo Real in Munich. The Rome Globe 07, announced as competition for the ITB, was a dolce vita disaster at its premiere: The trade fair visitors had to drag their suitcases over the fields in pouring rain; there was no taxi stand in front of the trade fair; the lavatories were locked in the first halls and the conferences did not start on time. Last but not least, the planned and supposedly integrated investment conference did not take place at the new trade fair area, but rather at the Sheraton Golf Hotel outside of Rome. Our freelance Elisabeth Lang was not amused!

We hope that you are enthused by the savings potential which the new technologies of Winterhalter make possible! The consumption of energy and water in the kitchen is a crucial cost factor. Today, on our sub website for industry know-how, the dishwasher specialist from southern Germany presents its two world novelties which were introduced at the Internorga in Hamburg for the first time a few weeks ago. Click on hospitalitySolutions in the left columns below "Related Sites"!

We wish you good business through the Easter season.

Yours Yours, Maria Puetz-Willems
Editor in Chief

Comments? maria@hospitalityInside.com  

Dear Insiders,

The EU hotel market has grown yet again: the boom seems without end. All the same, amongst the ten large chains, there's hardly any difference in relative performance. Only the Spanish - NH Hoteles - managed to push forward into MKG's Top Ten Hitlist last year.

But it would be even more interesting to see the lower ranks. There, it's to be expected, the real market changes can be observed. The success of Motel One should give pause for thought. This small German budget chain, up to know viewed with simple disdain by the Accor bed giant, sought and found a partner almost "over night" and now intends to expand into eastern Europe adding 3,700 beds as it goes. As Motel One is well placed financially, such movements really do have to be taken seriously.

Germany is making its comeback, the International Hotel Association GErmany confirmed during its annual press conference this week presenting outline figures for 2006. All the same, German politics continues to hound its hoteliers - and the disadvantages in comparison to their European neighbours are showing. IHA Chairman Fritz Dreesen denounced the state of affairs once again and rightly so, as I see it. All the same, the Association should also see itself set before a new political battle.

How nice, that there are still markets with lots of potential. Taking India as an example - and here we close our focus on this year's ITB partner land - you can see just how quickly markets catch on to niche concepts and successful ideas such as boutique hotels, and quickly translate these into profit. From a distance - and this is equally true for China and the Arab countries - it's fascinating to see how western European developments are repeated. And certainly the same problems should also be expected. The Americans, for instance, have seen a flood of hotel brands like never before in the last two years. The chains obviously view brands on mass as the best expansion strategy, as our report on one particular panel from the International Hotel Investment Forum Berlin shows.

For a long time the industry hasn't been able to show such consistently positive figures like those recently: Even Moevenpick and Marriott are shining with good operating profits.

This and more from the colourful hotel jigsaw today.
We wish you a pleasant week!

Yours, Maria Puetz-Willems
Editor in Chief

Comments? maria@hospitalityInside.com  

Dear Insiders,

The MIPIM in Cannes, a meeting for real estate specialists, is still in full swing. The International Investment Forum and the ITB are over. For years, the mood at both meeting places had not been as positive and elated as this year - even if some dissatisfied people said: "Now, we have only reached the figures of 2001."

Insiders could have been encouraged even more, if Barry Sternlicht of Starwood Capital - keynote speaker at the IHIF - had revealed more of his personal spirit of success. After an interview I had with him I know what this highly intelligent and analytically talented man is able to say in 45 minutes. Thus, his appearance in front of 1,500 industry experts was disappointing. He talked about five ways to success starting with a "c" and he reminded me of the former president of Relais & Châteaux who only wanted to defend the old patina with his own 5 credo "c's".

IHIF President Jim Burba should start thinking about how much more meaningless content his participants will have to put up with. During side talks, many critical voices could be heard and many were saying that they would not pay another 1,700 euros for this content-less event next year.

The ITB is more fun. The colourful people of the tourism industry come together to embrace each other, to celebrate, laugh and mock affectionately once a year. New record numbers of visitors show: the system works - and that for a visitors fee of only 40 euros at most. Now, let us enter the rumour mill: Swissôtel will be sold?! No. Is it true that daddy Sherwood and son Sherwood had a huge quarrel, and because of that will give up their jobs at Orient-Express? Yes. Ringhotels has a woman as new managing director? Yes, at least the prospect of one. She has not signed yet, but at least she wants to change the Ringhotel's ITB booth in 2008. Interhotel`s Managing Director Martin Ernst is changing to consultancy? Not confirmed. Dietmar Mueller-Elmau, founder of Micros-Fidelio and Hotel Manager of Schloss Elmau is tinkering at a new software for the hotel industry? Yes. Will be released in summer. Rezidor President Kurt Ritter still loves red wine, Steigenberger`s Managing Director Karl-Anton Schattmeier loves white wine, Accor celebrated his top figures with star-shaped snacks in the Sofitel Gendarmenmarkt and Kempinski served the journalists a standing breakfast.

In hall 7.1a, hospitalityInside.com and the Messe Berlin were prepared for many guests but the 200 chairs were not sufficient for most of the talks. The second "ITB Hospitality Day" was fully attended all the time. For the hotel conference on Thursday, there were more than 1,000 visitors - and thus made this event one of the three best-attended conferences of all 20 big ITB conferences! Here, I would like to thank all 26 speakers of and contributors to the Hospitality Day personally! Your important contributions to partly unusual subjects were the key to our success.

Today, we would like to publish only a rough summary of all the subjects; in the next few weeks, we deal with every round of talks in due depth. For those who want to call up the single presentations, they will find them at the website www.itb-kongress.de , under ITB Hospitality Day and then under the speaker`s name.

Those who want to get an impression of the event itself should click on the website of www.hotelpress.de : This specialist for guest newspapers for hotels issued a small ITB newspaper together with hospitalityInside.com for the first time - about every panel! You can still download or print your issue of every round of talks!

hospitalityInside.com will organise the ITB Hospitality Day in 2008 again. We are already looking forward to it. But until then, there are 50 new issues of hospitalityInside.com - every Friday with up-to-date news just for you!

Sincerely yours,
Maria Puetz-Willems
Editor in Chief


Your IHIF and ITB experiences? Please, write to maria@hospitalityInside.com

Dear Insiders,

As you read these words, the International Tourism Exchange in Berlin is still in full swing. From the abundance of much news, we have already reported on one in detail: the Investment Ranking of the hotel chains which contains many surprises this year. Yesterday, the Treugast introduced the ranking at the fair.

The International Hotel Investment Forum, which took place prior to this for the tenth time in Berlin, has once more been true to its reputation of only being a networking market - without laying claim to news containing content or even a higher level in the accompanying conference section. During lunch, keynote speaker Barry Sternlicht disappointed the industry's insiders in the same way as he had disappointed the majority of participants in the panels beforehand. Nevertheless, I shall be summarizing the main statements of the opening session for you next week. They confirm trends that are already familiar.

Two current pieces of news that became public during the IHIF were good "food-for-talk": Hilton is selling its Scandic chain to a group of investors unknown in Germany, and Accor was able to sell 91 hotel properties in western Europe, thus gaining back the operator agreements with modified conditions.

At the Investment Forum as well as at the ITB, tribute was paid to the founder of the former Forte Hotels, Lord Charles Forte who died last week. On Tuesday evening, his son Sir Rocco accepted the "Lifetime Achievement Award" of the Travel Industry Club in the Hotel Concorde for him in Berlin posthum. This honour was awarded for the first time. Exactly one year ago, Rocco Forte Hotels opened its first hotel in Germany. Unintentionally, our review with the motto "...one year later" matches the context of the hotelier`s family who always believed in its concepts.

Two weeks ago, Sir Rocco was also the keynote speaker at the annual meeting of the European Hotel Manager Association in Munich. Today, we also report about this congress.

On Tuesday afternoon at the Investment Forum, when Starwood introduced its new and also for Europe adjusted aloft-concept, InterConti had just introduced its new concept for the Holiday Inn brand, including first business figures. Today, we are only touching on this subject and shall pick up on it later again. Both events nevertheless show: The competition concerning design and profitability in the 3-star category has already started.

Until next week, after the ITB!
Yours, Maria Puetz-Willems
Editor in Chief

Comments? maria@hospitalityInside.com

Dear Insiders,

It was the last significant appearance of a big man: Dr. Herbert Ebertz. Clearly moved by the event, the Dorint founder took his leave this week at the Dorint plc extraordinary shareholders meeting. The real estate man, spoiled by decades of success, finally had to concede defeat. His words were marked by both candour and insight. And some were almost tempted to believe him.

Later, his responses to the questions and accusation of small shareholders showed, however, that he still hasn't learned his lesson. He simply refuses to admit that he personally shoulders at least part of the blame for the entire Dorint disaster. It was him, both in his double capacity and with his business ties to both his funds and the operating company Dorint, that landed the hotel group with the high lease charges which in December almost pushed the group into bankruptcy after four agonising years.

Ebertz' departure from the plc this week is more than deserving. The irony of the whole affair is, however, that he as "the Dorint Father" in the same moment will continue on as joint owner of the new commercial partnership acquired by the new Dorint Ltd. He remains, therefore "Mr. Dorint", despite a clear loss of influence. Behind the scenes, in his new team, he has a new and strong anti-pole: Dirk Iserlohe. Iserlohe had supported the spin-off from the very beginning, whilst Ebertz continued to search for an investor/buyer for the group. The future of the new Dorint Ltd will thus depend on in how far the old man shows himself capable of working in a team and whether he can put his ego behind the economic interests of the firm.

On the ups and downs of the hotels and tourism firms will be a lot to be heard in the upcoming week: The trade fair week of the year is just around the corner - beginning with the International Investment Forum in the InterConti Berlin directly followed by the world's biggest tourism fair, the ITB in Berlin. We're sure to see each other there? hospitalityInside.com will be present to greet and hear your comments on ITB Thursday, during the hotel congress "ITB Hospitality Day"! Come and visit us, learn about new trends and figures from the talk rounds! hospitalityInside.com Managing Director Michael Willems will also be available for discussion.

By the way, together with our hospitalitySolutions partner hotelpress.de, we will produce a little ITB Hospitality Day newspaper after each round of discussions summarising the topics of discussion and further ITB news. One more reason to pick up this specifically tailored newspaper from us! It may even inspire you to your own guest newspaper.

And because India will be partner country to this year's ITB, our journalist Baerbel Schwertfeger reports in this week's edition on brand new developments in India's hotel market: She was underway in India for six weeks over new year. The second part of her India talks may be read next week.

Should during the ITB any important news come to light, we will inform you immediately by "breaking news" announcement. Otherwise next Friday - ITB Friday - only part of the news from the ITB will be published. We ourselves will be there at the event and want instead to use every moment to be able to bring you interesting news and stories in following editions.

Have fun reading today! hospitalityInside.com once again brings you lots of further probing news in this edition.

On our website hospitalitySolutions, you will also find one more new company creating a name for itself with the quality of its products: Schwoerer Bauindustrie, producers of made to measure hotel baths.

So, till next week in Berlin then! I'm looking forward to it!

With best wishes,
yours,
Maria Puetz-Willems
Editor in Chief


Comments? maria@hospitalityInside.com

Dear Insiders,

The telephone is ringing off the hook, once again a flood of e-mails repeatedly clogs your inbox: unmistakable symptoms of the upcoming ITB in Berlin. The countdown for the world's biggest tourism fair has begun. If you're looking for a quick transfer from the airport: Germanwings is offering a helicopter shuttle service. Whatever happens, please be on time for the second "Hospitality Day": For the second time the editorial team at hospitalityInside.com has defined the contents of this hotel congress and has secured top international guests to discussions. We'll see you there then at 10:30 in hall 7.1a, room New York! Incidentally admission to the discussion rounds is free of charge to all ITB visitors. More in our "Event Promotion" column. - While I will moderate the event, our Managing Director Michael Willems will be at your disposal at the presentation desk in the auditorium.

Health and wellness will also not come too short at this year's ITB. For us, this has been a topic the whole year through. A trend study from the USA affirms the gut feeling of lots of hoteliers here: Wellness can increase RevPar, but not necessarily the net result. The subject of health is being discussed in Switzerland quite differently of late. With its first "Forum fuer Gesundheit" the Grand Hotels Bad Ragaz touched on a subject that many companies - amongst them hotel companies - have only perceived in passing: keeping their staff healthy and encouraging their health. The experts demonstrated that a great deal can be achieved using few means. The hotel industry talks a lot about "human resources" and "human capital" these days. The question is: When will the talk be put into action?

Trends are appropriate to two other topics today: Firstly, there's the high-tech irritations and high-tech gadgets in hotels - in terms of the latter, the Americans have a couple of years on us; secondly we describe a hotel with eight rooms offering luxury only of first class standard. Niche offers aren't on the cards here.

Back to the mainstream, however, we bring you the year end results from InterConti. Turnover and operative profit increased in 2006. This and much more in the news section.

Please, also look at hospitalitySOLUTIONS: Today, Micros-Fidelio presents its brand new offer! Should you need any relaxation after ITB, feel inspired by our "travel tipp for hoteliers".

Have a pleasant week,
yours, Maria Puetz-Willems
Editor in Chief


Questions? Comments? Any wishes for ITB? maria@hospitalityInside.com

Dear Insiders,

When the important radio station Bayerischer Rundfunk in Munich asked me for a statement on "guest quotas" of hotels this week, I knew right away: attention - otherwise, this industry will be brandmarked once again. The reason: Kitzbuehel wanted to limit the number of guests from Russia. The turmoil in Austria and Russia was inevitable.

Our correspondent Fred Fettner dug deep and reports on the issue in an absolute objective way. Russians are welcome everywhere in Austria. In contrast to other nationalities, they do not just browse - they also buy! In the meantime, half the world is laughing at a tourist who put her foot in her mouth. Despite this, however, the incident should serve to make hoteliers more sensitive. In a snap, these valuable target groups are gone again! In addition, the loss of image is greater than the material loss.

Speaking of image: The image of InterConti group in Germany could use some polishing. After numerous announcements, the expansion of the Express budget brand finally seems to be picking up. Moreover, hospitalityInside.com finally managed to speak with a person who knows the ins and outs - as communication is definitely not one of InterConti's strengths.

However, the exchange among Cornell graduates is running perfectly! Eighty of the Cornell Hotel Society met at the "European Meeting" in Cairo two weeks ago - and, as Cornell media partner, hospitalityInside.com went along as well. Of course, this was a perfect occasion to talk with the hosting group of Sonesta and with Egyptian hotel representatives about the development of hotels in the cities as well as in the countryside.

Further articles touch the pros and cons of a new system for conference bookings in the internet; a German hotel chain will start its first patient hotel, Rezidor and Ramada Germany published their annual reports 2006, and the Swiss hotel association complains about its handicaps in the European market .... Read this and more. Enjoy surfing,

Yours, Maria Puetz-Willems
Editor in Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

Amongst the investment models available in the real estate branch, a positive trend for the hotels is also making itself felt - even if not as strongly as in other types of property. Funds analyst Stefan Loipfinger presented his market analysis last week; we take a look at his findings as to the hotels. The first large hotel chains are now publishing their business figures for 2006; we're keeping a watchful eye out.

I, myself, have just returned from the Cornell European Chapter Meeting in Cairo and experienced true multi-culture in all its facets - chaos in the 20 million strong city and a positive feeling amongst hoteliers coming from all over Europe to share their experiences. All the more interesting it is then to see how generally accepted ideas in Europe meet with different opinions elsewhere - as one also sees with regard to the discussions surrounding Austria's tourism fair, the ACTB, with every country and every region fighting for its own advantage.

Whilst Relais & Châteaux Chairman Jaume Tàpies describes it as "small revolution", because he has actively spoken to new potential members in Asia, hotel operators know no such bounds: Whether mini-group like Fleming's or established chain such as Vienna International, their expansion plans are endless.

Lots of useful information is today to be found in the columns on Law, Human Resources and MICE, and interesting news in the rest...

By the way, a successor for the GM of the Kempinski Heiligendamm is still being sought. The Fundus decision to dismiss GM Torsten Dressler four months ahead of the G8 summit makes it no easier for Fundus or Kempinski. The word now is that Fundus wants to appoint an "external" GM. Heiligendamm could become the testing stone of the partnership.

I wish you all an endlessly good week!

Yours, Maria Puetz-Willems
Editor in Chief


Comments? maria@hospitalityInside.com

Dear Insiders,

Taking an in depth look behind the scenes at the World Economic Forum in Davos, our correspondent Silvia Pfenniger is up close with hoteliers reporting on the improvisation talent needed and the economic ramifications of hosting such an event in small town Switzerland.

That the entire world focuses its attention on the Swiss mountain town, is not only good news for the region, but for the entire national economy. Long term success on the scale predicted in Davos, however, is hardly likely to be seen after the one off G8 summit in the North German town of Heiligendamm. Nevertheless, the hotel and region would certainly be well advised, to at least stay out of the negative press.

Yet all else is the case: The HypoVereinsbank has only recently cancelled its credit agreements with the resort and already the next set of bad tidings loom: GM Torsten Dressler is set to leave the hotel in a gesture of acceptance of his - supposed? - responsibility for struggling occupancy figures. The pressure on Heiligendamm grows by the day. Perhaps resort initiator Anno August Jagdfeld together with Kempinski should look amongst the stress resistant hoteliers in Davos for Dressler's successor.

The background for the repeated finance talks surrounding Heiligendamm is discussed in an article by our correspondent Karin Krentz in this edition. In her article, she also takes an in depth look at financial difficulties facing Mecklenburg Western Pomerania, home of Heiligendamm.

Whereas in Davos, many of the guests arrive in private jets, only then to be confronted with a shortage in "parking spaces", guests at WesternOriental will be able to arrive without such parking worries. A consortium with JetAlliance makes it possible. Further interesting announcements and articles on topical subjects, health, human resources and research complete this week's edition of hospitalityInside.com.

Full of new ideas and tips for practice. Then one thing is certain: Our industry is anything but threatened with decline. Recent market research carried out by Deloitte and Jones Lang La Salle Hotel predicts further global growth.

And because hospitalityInside.com is to grow with it, we're very happy to announce one victory of our own. After over two years of intense and draining dispute with the American Intel Corporation, the brand "hospitalityINSIDE" has finally been registered and published by the European Trade Mark Office in Alicante so in future we are certain to remain hospitalityINSIDE - celebrate with us!

Yours,
Susanne Stauss
Senior Editor


Questions? susanne@hospitalityInside.com