Editorial
Dear Insider,
It was the adhoc announcement of a bank that revealed the Interhotel Group was set to sell its 14 hotels and operating companies. The company is "healthy" now. Yet the ink is still not dry: The German Federal Cartel Office has also taken an interest. Top news at the end of the week.
And we remain right at the forefront of the action: This afternoon we'll report directly from Frankfurt on the news from the ArabellaSheraton/Starwood press conference. After one full year in office, Arabella Holding's Managing Director Carsten Rath reveals details of his long expected first "deal". For the first time, the 40 year old manager will be measured against his promises. And the industry will be paying attention.
Our Swiss colleague, Silvia Pfenniger, interviewed a fellow Swiss national this week: Kurt Ritter. He was as always - positive and personal.
A very personal thanks came from the owner of Tschuggen Hotels, Ursula Bechtolsheimer, last weekend as her staff at the Tschuggen Grand Hotel Arose saw through the monumental opening of its spa. Visibly relieved that the mega investment of 22 million Euros had finally been implemented, she was much too rash in pushing the start button. The example is a clear one: There are still owners who are business orientated and who take their staff - above all management with their visions - very seriously. With their targeted investments the Tschuggen Hotel Group is rapidly catching up on the market.
Our articles today also provide matter for philosophical discussion under the motto "capital is good, but alone it's not enough..." Creativity and the feeling for the market and people are essential ingredients of success.
In addition there's also news from the Adlon Berlin, from the Leading Residences, from Sabre and Worldspan, from Germany and Singapore.
A pleasant week! Christmas is just around the corner - hospitalityInside.com will appear as usual next week, will however then take a two week break.
Yours, Maria Puetz-Willems
Editor-in-Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Everybody feels the flood of customer cards when holding their own wallet: If the plastic card still fits in, you will likely "score" at this company. And if your wallet is getting too bulky, the card won`t be included. But how to enter the customers' minds? Without reconsidering, the hotel industry has followed the trend believing in the same success as the airlines. Today, experts deny that bonus cards are everything but suitable for all hotel segments - and they are far from being economical. All hotels offer the same, there are no differences. It is the beginning of the end of CRM programmes. Our focus today.
The recently founded "Healing Hotels" are riding the health wave. This supposed cooperative consists of business-eager consultants. The fact that an English term was chosen may emphasise their claim to be an international company. But how to translate "healing" into German? The concept of "to heal" remains a purely medical term in Germany. Moreover, the group's list of criteria gives reason to doubt the truth of it all...
It all depends on differentiation, as becomes obvious in Berlin: The two leading and definitely competing business clubs in the federal capital draw a clear dividing line between themselves as a "business" and "social" club. Neither said anything about their members. Nevertheless: You definitely need small change to be admitted to these circles. We sensed that there are next to no hoteliers among the elite of representatives from the fields of economy, politics and media. Consequently, only the two hotels positioned in the vicinity of the China Club and Berlin Capital Club reap the benefits from them.
Enjoy the coming Christmas parties and "Christmas cookie gossip"! Just make sure that you don't find yourself in the same situation as the General Manager of the Dolder Grand Hotel in Zurich: Santa Claus paid him a visit on St. Nicholas' Day together with Swiss TV camera team. Live on camera - and later broadcast on prime time television - Santa Claus and his little helpers confronted the clearly surprised Thomas Schmid with accusations from the trade union UNIA that Dolder rewards German construction workers with less than the minimum wage! And that, when everyone knows that the restructuring works at Dolder stand at 600 million Swiss Francs! Schmid's excuse that this was a matter for the construction firm, was hardly convincing...
Yours, Maria Puetz-Willems
Editor-in-Chief
Ideas? maria@hospitalityInside.com
Dear Insiders,
We use the internet as a way of regularly supplying reliable information - like many others as well. However not all information found on the internet is as reliable as it may seem. Ever increasingly the internet is also being used as a tool for manipulation. Media experts are already warning of systematic manipulation through faked internet postings of consumer opinions or ratings by private individuals.
A dangerous trend is taking form: manipulating the decision to buy though bogus consumer ratings, forged experience reports and fraudulent recommendations on blogs and other consumer forums. The originators of such faked entries generally remain anonymous and any loss of credibility rests solely with the internet. Our reporter, Baerbel Schwertfeger shows that "Web 2.0", the new interactive internet portal, has already reached the travel industry.
Today we stand up to our reputation as European and international magazine particularly well. This winter in Austria sees the opening of more chalet villages than hotels, in Dubai the first tenant quarter has sprouted up through the area for the Festival City, and in Spain Alma - the new owner of the Hotel Vier Jahreszeiten in Berlin - announces its plans for its boutique hotels.
An unusual contribution this week looks at the Arctic explorer Mike Horn: The adventurer and conqueror of North Pole has a message for managers! I have seldom heard such a clear lecture on management principals as the explorer's speech this week in Bad Ragaz. His book - our reading suggestion - would certainly make a useful addition under any manager's Christmas tree.
The smaller announcements cover many other trends. One is worth a particularly close read in today's difficult times of capital procurement: The public offering of Rezidor. The share offer was signed nine times over! In Stockholm the champagne corks should already be popping, in Brussels Kurt Ritter's favourite Rothschild be open.
We wish you a good start into a hopefully busy December,
Yours, Maria Puetz-Willems
Editor-in-Chief
Remarks, wishes? maria@hospitalityInside.com
Dear Insiders,
Berlin's newest 5 star hotel, the Rocco Forte Hotel de Rome, is finally able to shine in the glory for which it was destined. And that not entirely unduly: Yet the British won't be leaving London just yet: The society sparkle of the English capital that Sir Rocco is so used to with its well attended lunches and tea times will not be seen at dumping price-Berlin.
Late at night, gathered around their last glass of wine after dinner, branch insiders know: "This hotel won't turn up a ROI". "Nice, but not possible." "Just one restaurant in which occupancy stood at a mere 30 percent in the first couple of weeks, that won't last long." The new General Manager Thies Sponholz was also the source of a little commotion. As colleagues in Berlin reported the next day, he managed to free himself from obviously still existing contractual obligations as Managing Director of a medical Park in Bad Wiessee. The 37 year old must have realised that Rocco Forte and Berlin look much better on a CV than some no-name hotel in Bavaria.
Now, the second Rocco Forte has opened. The third in Munich is to follow, if all goes to plan in July 2007. But the more Forte managers we spoke to, the more varied the dates became. Sir Rocco will know: My impression is: In terms of style and concept, the hotels are very well tailored to their local market, but the English overestimate their position and influence in the German market. I remain sceptical despite wishing new ideas and new hoteliers in Germany well. In particular I wish Berlin and Sir Rocco Forte all the best - time will tell, and without a doubt we'll soon have to review our first impressions printed here today.
In Wiesbaden meanwhile, the Nassauer Hof is thinking about its future. Choice Hotels Europe, on the other hand, have already made their decision. The European, little known Luxury Lifestyle Hotels see their future in the USA, the German City Partner Hotels in Eastern Europe. And the intellectual property court in Alicante has set a new precedent in the interpretation and use of the word "Spa" in brand names. Above all, their last judgement will have repercussions for the future.
Lots to be read in the large articles then, and more exciting news in the small news. And all for you!
Yours, Maria Puetz-Willems
Editor-in-Chief
Remarks? maria@hospitalityInside.com
Dear Insiders,
Is Starwood Hotels delirious? They are now looking for a "Chief Beer Officer"! As all Four Points Hotels are to serve the best beers worldwide in future, they are in desperate need of an experienced master brewer. To put it in American terms: a CBO! However, he will not take his place at the board table - he will start as a consultant in January, and will work only part-time....
Apart from this, the news of the week was not that "full of beer": the Spanish NH Hoteles are about to take over the Italian Jolly Hotels and thus become the biggest group in Italy. This also corresponds to NH's urge to expand further in Germany. In Switzerland, Luitpold von Finck from Germany wants to take over all shares of Moevenpick-Holding, but there would be no consequences for the hotel business. After Raffles and Four Seasons, it seems to be Moevenpick's term now. This also means: Should more hotel groups be delisted, a comparison of figures and performances between hotel groups will become very difficult in future.
Today, we take a close look at Marriott's European Courtyard concept and learn: the medium-class brand fits exactly between 3 and 4 stars, and in this way competes with full-service hotels despite its limited service. The presentation in Paris, however, showed the entire dimension. But, Courtyard obviously has a tough competitor as our small comparing table shows.
Geographically, our focus will be the inconspicuous island of Madeira today. But even their, we come across hotel news. The issue of merchandising is often neglected in hotels. But it comes with huge revenue chances - as you can read. And finally, the Americans confront us with the spa trends of next year. Some of them might also hit our market here! And last but not least - further news!
Have a great week,
yours, Maria Puetz-Willems
Editor-in-Chief
Questions? maria@hospitalityInside.com
Dear Insider,
A single topic this week dominates the majority of this edition: Benchmarking! In the flurry of congresses and conferences of recent weeks, we've all gone home with our heads full of figures. And at least at some point the thought is bound to cross everyone's mind that the only statistics capable of being trusted at all are the ones you fiddle yourself. The secrecy of large bench markers like Deloitte London and MKG Paris, on the other hand, only generates further mistrust: Transparency doesn't seem to be a priority for the supposed market leaders. Competitor The Bench in London showed itself to be much more willing to share in its expertise and the small and new providers are always forthcoming.
Exactly how credible the benchmark systems are, dear Insider, has to be decided by you and you alone. And if at the end, all of this still leaves a bitter aftertaste, you can still place hopes in the new and fresh now springing up both internationally as well as nationally to once again bring new life to the scene. Competition even here breeds more business. I'm sure that we'll come back to the topic after this introduction and will take a closer look at its application and success in practice. If today you can already point to any weaknesses of benchmarking - don't hesitate to write to us! The button "E-Mail to the author" is to be found at the bottom of each article.
Because the topic of benchmarking is become increasingly important, the largest part of this week's edition is dedicated to exactly this. The introduction should be a little more than just quick and painless, the articles you find should also allow you to delve a little deeper into the themes and problems. I hope this fits with your expectations?
On Monday the announced sale of the Four Seasons chain was even worth a "Breaking News" article for the midnight hour. Read today Atef Mankarios' impression from the USA. The former Chairman of Rosewood Hotels and from St. Regis works today as consultant for luxury hotels and luxury investors and hits the nail on the head when he says: "Perhaps one day we'll once again have hoteliers that lead hotel companies!"
I hope that this week too, we meet the demands of your media benchmark..
Yours, Maria Puetz-Willems
Editor-in-Chief
Benchmark remarks? maria@hospitalityInside.com
Dear Insiders,
Creativity is not a question of national affiliation, as was recently demonstrated by the "Future Forum" of design hotels in Vienna. The discussion was about innovative and more or less shrill projects as well as "container hotels" and alternative housing concepts. Share a view visions of design hotels. hospitalityInside.com was there.
design hotels have literally been hot on our heels until today's issue. Another article picks up a topic of last week's "hotelforum" conference. The "2006 European Hotel Real Estate Award" went to a cleverly designed budget hotel, the history of origin of which I had already been marginally observing over the past few years. A small Austrian family business has proven courage with a "less-is-more" strategy. The new budget design hotel Daniel in Graz fits in perfectly with our series of examples of creative concepts in Austria. It is a member of design hotels just as the far nobler Loisium near Krems. You will probably already know it as "cube in the vineyard". Guy Dittrich, our architect specialist, took a close look at it, while I myself carefully checked the Daniel for its savings plan. The analysis clearly shows: design is not a question of budget.
Moreover, we looked across the industry's borders last week right into the sector of leisure real estates. Our findings: problems, financing and discussions about target groups are quite similar. Heuer-Dialog organised an excellent conference in the VIP facilities of Munich's Olympic Stadium.
hospitalityInside.com is always looking for issues that give you new inspiration for your work. In this respect, international and intersectoral conferences are an ideal platform. Our media partnerships - with the International Hotel Conference in Rome, the design hotels' Future Forum in Vienna and Heuer-Dialog about Leisure Real Estate in Munich - have proven to be a unique platform for new contacts.
This also includes the Cornell University/Center for Hospitality Research with which we are working together in a close partnership. As of today, Cornell supports hospitalityInside's concept over and above editorial issues. The institute presents itself on our new hospitalitySolutions.info platform. The next Solutions partners have thus already registered. In this respect, you should always look at this second pillar of hospitalityInside as of today. By the way, all new contributions on that site will be indicated in our Friday newsletter.
As the end of the year is approaching and you are probably still looking for a destination outside of your hotel group, we offer you a smart, brand new destination on Sri Lanka today. "hospitalityTRAVEL" is starting - exclusive holiday offers from hoteliers for hoteliers. Just click on hospitalitySolutions.info.
Yours, Maria Puetz-Willems
Editor-in-Chief
Any comments? maria@hospitalityInside.com
Dear Insiders,
This week's Expo Real in Munich is becoming a real meeting point for everybody from the hotel development sector. The world's booming markets are in attendance here as well - audible in the discussion forums and visible at the mega stands with giant models of the skyscraper silhouettes that are being newly created. As regards content, this year's "Hospitality Industry Dialogue" was weaker than in the past years. Nevertheless, the hotel industry is slowly taking its place at Expo Real.
The developers of Europe's newest 7-star hotel in Italy, however, shun publicity. Nonetheless, the concept resembles a typical Italian "Hotel La Mamma", caring for its guests with great dedication so that they do not want to leave.... Of course, such a load of family sense on a luxury level has its price. Even with hotel rooms of average size. Our second article about the changing spa hotel on Ischia is proof of the Italians` belief that they are able to keep up with "world standards". Some hoteliers only smile to themselves.
Our articles about the ongoing timeshare boom and the new fractional model, highly acclaimed in Portugal, belong to the promising and profitable development sector. An interesting parallel to the current discussion at Expo Real: the initiators of these timeshare models for Europe are building increasingly on Anglo-Saxon contractual models, similar to real estate representatives, who see British financing methods influencing the German market more and more.
With this varied issue, I likewise wish you the best for a week of variety,
Yours, Maria Puetz-Willems
Editor-in-Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
In the past few weeks, I have visited conferences for you in Vienna and Rome and next week Expo Real in Munich is on the agenda. There, the general mood of the two industry meetings visited will probably be reflected: the mood is great in the industry itself, but not in Germany. Examples: In Vienna, a lively Swiss talks about the new gigantic "rock resort" he plans to build; his Austrian colleague is waiting for the building permit for his third hotel. After building a hotel for kids and a design hotel, he is currently planning an innovative city hotel. In Rome, international consultants and project developers are grunting and groaning about too much work. Asian and Arabian investors are even fetching consultants from the US in order to manage their endless project lists. European know-how is only demanded in terms of spas, at best. Apart from that, only one thing in particular can be said about Germany: it is an important market - from a bargain hunter's perspective!
When it comes to investment and financing, trends are intensifying at best: financial monotony is spreading. The influence of funds is dramatically increasing. But their money seems to be spent at the same locations and on the same hotel types that are always operated by the same global players among the hotel management companies again and again. In Rome, an American fund manager was not proud for publicly saying that he had too much money to distribute in order to finance individual hotels.
A punch in the face for the European medium-sized businesses and into the pit of the stomach of creative hoteliers like those of design hotels... Another statement from Rome is suitable here: most medium-sized companies in Europe were too weak to be "branded".
I suggest waiting and seeing about the quality that fund financiers will produce out of thin air with their exchangeable brands of their exchangeable global players.
Today's issue offers more market news and highly interesting, brand new staff issues in numerous long and shorter articles. Our Swiss editor, Silvia Pfenniger, met an UBS manager in Zurich, our colleague Susanne Stauss visited a wellness conference at her door in Wiesbaden. Last but not least there is the latest Insider news about Dorint Hotels' new structures. Researched yesterday, published today.
A successful week,
yours, Maria Puetz-Willems
Editor-in-Chief
Remarks? maria@hospitalityInside.com
Dear Insiders,
While you are reading these lines, I am still at the International Hotel Conference in Rome that combines top issues and speakers in a casual ambience. A pleasantly different concept that attracts more than 400 participants from almost 30 countries after only four years. At the same time, you'll read about Expo Real in Munich in this issue: nice to hear that this growing commercial real estate fair takes hospitality seriously as an industry and even plans to internationalise its hotel theme day in future. The reason: today, trade fairs are facing the same competition as every other industry. This is reflected by other news: professional trade fair organisers from Italy are trying to establish a "new ITB" in 2007. Their concept is quite clever. It links exactly what is mentioned here: issues from tourism and finance - combined under one roof! In addition, Rome is highly attractive with a brand new and easily accessible trade fair area and it "guarantees" reasonable rates in terms of hotels and airlines! Who will draw the joker in the European trade fair poker game? The cards are being reshuffled at present .....
The fact that operators and investors think across borders in terms of geography as well as brands is reflected in our articles about the strategies of the international chains in the Middle East and in the portrait of the project developer of GBI. But what about all those hotel operators who only sell their name, but no longer their real estate? A consultant from Great Britain predicts fierce battles between investors and operators!
Right in the midst of all this, we present the portrait of the design and spa hotel Mavida in Austria - as a sort of counterpoint. A private hotelier demonstrates once again how to pick up trends and surpasses the limits even in classic ski locations!
In Berlin, two new hotels were able to be admired: the new Melia and the new Rocco Forte de Rome! The first one has a GM, the second one not. Since Monday, the Kempinski Adlon has had a new GM - after the "Stasi" affair of the former GM Thomas Klippstein. After this issue came up in talks with you again and again, I would like to summarise: it is astonishing that a 44-year old trips over his brief "Stasi" activitiy, although the triggering TV report dealt 99% with the GDR hotel Neptun in Warnemuende and its "makers" back in the GDR. Not one of the journalists goes on with his research. There are voices that say: Thomas Klippstein is a victim of the media and a pawn in the game, and his downfall was "prepared" well in advance.
Yours, Maria Puetz-Willems
Editor-in-Chief
Questions? maria@hospitalityInside.com