Dear Insiders,

The changing cadence of Dorint's Chairman Theim over the past few years has already conveyed the true development of the group. His words have become more and more sober, and that is why one should take it seriously when he says: "Dorint will not get a fourth chance."

Martina Fidlschuster of the Hotour consultancy knows what he is talking about: in case of high lease costs, as is the case with Dorint, a 5% drop in revenue is enough to enter rough waters, she says. Martina Fidlschuster cannot follow Theim's fear of a downfall of Germany's biggest, purely German hotel group could call into question the entire field of hotel financing. "The fatal signal of this situation would only be that too many hotels would be left without an operator at once."

Accor, however, has already received a public scolding. Dorint's majority shareholder has to deal with complaints insinuating a complete failure in terms of marketing and sales. This is damaging the image of Germany's market leader.

Alexander Fitz sometimes still has to deal with the effects of a negative image. Even in our talk, he twisted his face when asked about the past. However, he gives answers. For three years, the 37-year old has been Chair of the managing board of Hospitality Alliance AG with the Ramada brand. It emerged from Treff Hotels. For many years, the industry had heard nothing about this group. Not a single medium wanted to deal with this non-transparent network his partly choleric father Helmut Fitz had created mainly in the years after the reunification in Germany. Treff Hotels were his creation, and after a few years, their image was as bad as his was. Today, Alexander Fitz steers the company, and his father has no influence on the active hotel business, he says. Hospitality Alliance is planning to expand. This requires opening up and talking about strategies and figures, he emphasises. In addition, he was prepared to do so - after many years of consolidation. He takes a deep breath and explains...

However, there is some more news today: LSF Hotels do not want to expand further in Germany! The Swiss Grand Hotels Bad Ragaz does - on its own territory. In UK, the chain of Travelodge expands solely by using funds from Arabian sheiks. Dubai International Capital just bought them.

Of all staff issues, one particular one deals with a Swiss Gentleman Hotelier: Melchior Windlin, over 20 years GM of Bellevue Bern, died surprisingly. He hosted more than 20 state receptions at the Bellevue. After all, it is humans who shape the hospitality industry.

Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

The thwarted terror attacks in London are not without consequence for the hotel industry: British newsletters and also our correspondent in New York report that occupancy and room rates are rising! No trace of a crisis for the hotels. "The bookings for the remainder of the year in New York stand at record levels. The city stands before annual average occupancy rates of over 90% - a first for city," Harold Weiss mentions in his report. Weiss's main focus of interest is, however, another: Some hotel chains receive their guest with exactly those cosmetic products which they've had to discard at the airport. On the one hand its good publicity, and on the other it's exactly the sort of campaign that creates loyal customers.

Whoever recognises current trends stands before better business. In Austria the Waldklause has demonstrated that an individual and consistently implemented concept can find its own niche. The hotel built from large wooden beams refuses to label itself with the words "eco" or "health".

Budapest, however, can make itself quite a different tag - that of an international metropolis. In the very heart of the Hungarian capital, not even the smallest remnants of their communist past can be found. Tourist strategists have fixed their gaze on the future and are in the process of providing both country and capital with a visionary health concept. The new 5-star hotels fit superbly into the plan.

And finally, the operator Success may well like to adorn itself with renowned hotel brands. All the same, many insiders remain unacquainted with the company, despite its lengthy history. Whether working time regulations known in more detail? Our labour lawyer doesn't think so. Questions on this area are amongst the most common asked of lawyers operating in this area of law. Reason enough to dedicate a spare moment to the topic.

Have a good week,
Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

Holiday season - the cities are bustling with tourists. Backpackers included. They are part of the hotel business as well, but are often ignored by chain managers. Although, the Wombat's guests in Munich, Vienna and soon in Berlin seriously compete with every Etap! This clientele may possess only little money, but it spends its euros or dollars with great care.

By the way, wellness guests are doing the same, according to Wolfgang Kostenzer of Alpenrose Maurach at Lake Achen. His hotel is probably a European phenomenon:  an occupancy rate of 99% is standard! I have known Alpenrose for almost 15 years, right from the beginning, when its wellness area was still small. But right from the start, it was a benchmark in terms of architecture, aesthetics and human nature.

In contrast to that, the report on the MICE surveys make quite dry reading. They reflect cold facts. While reading these "error lists" I asked myself: what is the hotel business actually? "The guest is the focus of attention!" This is what I have been hearing for years now from various hoteliers. A well-worn catchphrase - who else should it be??? As insiders, we know that investors are the true centre of interest, but as a matter of fact, both hoteliers and investors still need a few kind guests. And why on earth shouldn't it be clear or obvious to deal with guest demands in order to earn some money? The two MICE surveys quoted from today reveal lip service.

Our news section highlights some important details: Hilton now begins to stave off entire brand portfolios. Scandic is at their disposal. Over the past few weeks, Hilton has announced the separation step by step in various statements.

The verdict regarding hotel television shows up some typical German problems. It demonstrates once more how legislation causes an entire industry to fall behind in international terms. The most recent success achieved in the court of first instance is even more important.

Despite the summer holidays, there is a whole bunch of news. Nothing that affects the entire industry, but enough food for thought under the sunshade.

Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

In the middle of the summer holidays, the quarterly and semi-annual figures of the major hotel chains are sending positive signals: the industry is looking up. We have compiled the key figures and linked them to the reports so that you are informed in detail.

This week sees tour operators in action. Looking at the 2006/2007 winter programmes, we noticed: the focus on high-quality hotels continues; each catalogue boasts more and better hotels. Moreover: more and more special catalogues are entering the market. All in all, this development leaves me sceptical: Who among the tour operators determines what hotels are of high quality? Officially, they deny what their staff members admit unofficially: they do not have any hotel inspectors. The buyers do the job. And that is exactly what some of the catalogues look like: their mix of hotels is a helter-skelter of quality. And what is the hotel industry doing about it? It is closing its eyes to the situation, fearing to drop out of the major operators' distribution system.

Officially, there are no problems on the Dubai labour market. The enormous expansion of Jumeirah Hotels led us to take a brief look at this point.

Ringhotels talk about its successful efforts to carry out efficient marketing with a small budget. Kempinski and Oberoi continue with their expansion on a grand scale, while Hilton further checks the market and its brands. Tour operator DER now offers booking trade fair hotels for the first time - exactly like in the bank, the "Reisebank". A signal for a new dimension of service: In future, money business and hotel bookings will be combined under one roof. Will consumers accept this?

Have an eventful week,
yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

Despite the exhausting heat, there is "moving news" for this week: Four Seasons President Wolf Hengst announced his retirement. After 30 years, another entrepreneuer in the world of hospitality, one of the modest, quiet figures of the sparkling 5 star community, will leave the stage. Has he ever made the headlines? In my 18 years as a hotel journalist, I can't recall one single time. All the same, Hengst's sensitive interpretation of luxury has made a decisive contribution to the luxury hotel industry worldwide.

Other "global players" are still flexing their muscles: Starwood has - just recently - appointed a new President for the hotel group: Matt Ouimet from Disney. It's to be hoped that he views Starwood's colourful marketing world not simply as a new Disney land. Even Barry Sternlicht, Starwood Capital's boss, has been working busily from his throne: He now stands at the top of the Societé du Louvre.

The Global Hotel Alliance, an association of privately led hotel groups, has begun a huge expansion and credibility action: Micros Fidelio is to make an efficient reservation tool from the paper alliance. CEO Chris Hartley is rightly looking for further chains as members.

When a consulting company all too strongly jumps into marketing, the result is useless. Two franchise groups tested the new HVS franchise calculator on its use in practice. A crushing outcome for the London consultants. Perhaps they should take a fresh look at their core competencies.

This edition is as colourful as summer itself - with further articles on Magic Life, an operator still seeking orientation, on the underestimated target group mountain bikers, on an unusual capital investment model in Switzerland and much more. Our second Cornell Report today - on the new trend of US employers towards arbitration clauses in employment contracts - is examined from a German perspective by our labour law expert.

Enjoy reading and a productive week!
Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

The "Breaking News" this week brought it to attention on Monday already: Dorint, Germany's biggest hotel group, is falling ever more critically into the red. Not even Germany's market leader Accor, presently holding 30% of Dorint stock, has been able to ameliorate the situation - and that despite its promise two years ago to help Dorint out of the dilemma with its management skill and distribution and marketing clout. Admittedly Dorint's occupancy and average rates have risen, the increases are, however, still under market average. Treugast's chief consultant Stephan Gerhard said rightly: Even Accor, Europe's largest hotel chain, seems to be able to do little more than react to the whim's of the German market; not even they seem to have influence enough to actively determine their fate.

Of course the weak economy has been tough on both hotel companies. Nevertheless, the far greater strain has come from excessive lease payments inherited from former Dorint majority shareholder and fund initiator Dr. Herbert Ebertz. Although lessors and shareholders alike have twice already have had to swallow hard, it's still not enough. Never before has the Dorint business report been so cutting as this one.

All we know is: In the background the major shareholders are fighting out a solution - whatever its nature - to hold off insolvency. Does this mean that Dorint will meet with a premature end? One thing is sure: Insolvency would be not good to anyone concerned. The once booming hotel group in the healthy mid-sector will not survive the legacy of former majority shareholder Ebertz and his like-minded Dorint Chairman Alfred Weiss without massive structural changes.

Judging from his past profile, Prince Alwalid will presumably not wish to buy Dorint shares. The Arabian businessman is way too sober and cool for that, attributes which timeshare representatives would do well to assume, despite the chance of cashing in with the Condo Hotels. A very interesting market study full of facts and figures on investments and returns!

Right on time for the summer holidays in Germany, many will once again reach for their handy pocket travel guides. We took a look at these little books - and asked just exactly how the hotel tips make their way on to their pages.

The holiday period has also seen the coming into force of the new Equal Treatment Act. In response to last week's article on the new law, many readers asked for practical examples to illustrate the very abstract sounding law. It certainly won't be the last time that hospitalityInside.com will discuss the new legislation. Our  practising labour law expert, Hans-Joachim Jungbluth, is sure that it won't be long till the first cases begin to appear before the tribunals.

Have fun surfing!
Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? Ideas? maria@hospitalityInside.com

Dear Insiders,

The upshot is positive - even if some disappointment is making itself heard. The Football World Cup exceeded the expectations of the German National Tourist Board. According to Dehoga, about half the hoteliers and gastronomers are satisfied with the business revolving round the football events. Thomas Edelkamp of World Cup Accommodation Services and André Witschi of Accor, who orchestrated the room allocation, also appear to be satisfied without appearing disrespectful towards critical colleagues. Given this positive total impression, the griping of Berlin's tourism segment almost seems childish: 60% occupancy is not enough for Mr. Weiland and Nerger!

I can only say: overcapacities were posted in Berlin long before the World Cup. And whether the mega event is called football, Love Parade or film festival - the fact remains that Berlin's hotel policy is a huge mistake. In the name of the city. Another fact is that such big events separate the wheat from the chaff among hotels. What is the reasoning behind allocating more rooms for a World Cup than for a Love Parade or another festival? German hoteliers must cease making decisions according to their gut instincts!

The new sale of Swissôtel Hotels & Resorts demonstrates the insignificance of emotions. Within some years, they went from Swissair to Raffles to Colony and now to Prinz Alwaleed. Managing Director Meinhard Huck is happy that the group has remained intact as a separate brand. The clear statement of the property fund company CGI is emotionless as well: it likes hotel investments, but only wants to collaborate with renowned operators. The discussions about reservations in Austria appear to be culturally and emotionally oriented: Are the Turks enticing the summer tourists away from the Greeks with certain tricks?

Certainly, the ladies and gentlemen who made it into the "V.I.P" column were moved by emotions as well. They are leaving renowned hotel groups and/or being promoted.

In the 2nd week after the World Cup, we remain on the ball. Next week, Dehoga will be presenting some precise figures.

Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityInside.com

Dear Insiders,

As an exception, we are pleased to be on the leading edge: this issue marks our new partnership with the Center for Hospitality Research of the Cornell University School of Hotel Administration in Ithaca, USA - the renowned "Alma Mater" of the international hospitality industry. 

This partnership is based on high demand with respect to quality, and it brings some synergies. One partner contributes articles that are prepared for the public, and the other partner completes them from a journalistic point of view with a regional background. This form of collaboration with Cornell allows you, dear Insiders, to get an idea of current views and thinking, trends and developments from the other side of the Atlantic Ocean. In this way, hospitalityInside.com creates a new information channel between America and Europe - thanks to its bilingualism. Our team and I are very happy about this approach, which is an absolute novelty in our hotel trade press that you should benefit from!

But read for yourself how it all came about. Moreover, read also what Cornell graduates say about it.

The gripping industrial topic of the week in Germany can only be: the Football World Cup! On Sunday a happy team will finally hold the golden trophy in its hands. Nevertheless, we are already informing you today about the hotel groups and if they were able to benefit from the super event of summer 2006! We asked your colleagues for a short and compact statement.

Our editor Baerbel Schwertfeger experienced a grave lack of professionalism on Gran Canaria. Wellness was on the agenda, but the result was more of a "wellness trap". A trip and a report full of emotions and the question of what EU funding is granted for and according to what criteria? 

Some moving news from Italy: Italians no longer take pleasure in going on holiday in their own country. There is talk about profiteering, run-down accommodations and the trend of staying in one's own four walls. This should bring clever marketing minds in the neighbouring countries on to the scene: Let us entice the Italians away from Italy!

Of course, there is some prickling news as well.

At the end of this week I wish the hosts of the German World Cup that the world will say enthusiastically: "We were guests of friends!" And let us hope that many friends will come back again!

Yours, Maria Puetz-Willems
Editor-in-Chief


Your comments today? maria@hospitalityInside.com

Dear Insiders,

Hotel companies often forget that their own employees are classic business travellers when they are undertaking business trips. The employer's duty of care counts for them as well as for their "ex-pats" abroad. But are hotel groups themselves well prepared in case a staff member has an accident, gets ambushed or even kidnapped on one of his trips? "Express kidnapping" is the new trend! It sounds sarcastic, but it is the bitter truth. In today's "focus" about travel safety, we talk generally about travellers, but the hotel management should relate the general questions concretely to its own company.

The issue has another concrete connection to the industry: investigators regard hotels as a major source of danger for the safety of travellers! And what do the hotels do to increase safety? "Only what's necessary!" says the expert. Read some safe information about the safety issue.

The European travel insurance tries to bring about another form of safety to the hotel industry: the hotel cancellation insurance. It can be concluded for each individual guest as well as for the "collective". Our interviewed hoteliers have their own opinion. Obviously, there is still good payment morale in Germany, which we already found out one year ago in our research about "holidays on credit".

Can you still bear to read about "awards"? For my part, I don`t like these glamour and gloria awards that are thrown onto the market with great PR pomp, although everybody knows that most of them can be bought anyway. That is why we do not talk about external awards this time, but about internal ones. And what do we see? A similar outpouring of awards is heading our way! But are awards still up-to-date? During her research, Susanne Stauss found out: long-serving managers cannot be motivated with sculptures - they would much more prefer a monetary "incentive". The one or the other award will surely end up collecting dust!

From our news section: the selection among German luxury hotels includes the Adlon Kempinski Berlin, while Travel Charme sets foot at the beautiful Lake Tegern. An Israeli investment company secretly buys ten hotels in Germany. In France, a female star twinkles in the sky above Paris: a woman is at the helm of the renowned Grand Hotel Le Meurice and the Plaza Athénée.

Talk to you again next week!
Yours, Maria Puetz-Willems
Editor-in-Chief


Questions? maria@hospitalityinside.com

Dear Insiders,

A mid-sized hotel group is getting ready for the big jump: Falkensteiner Hotels & Resorts in Southern Tyrol. For the first time, it made a public appearance; for the first time, it engaged an external Managing Director. It is going through extensive restructuring measures, and the upcoming projects will be crucial for its expansion. In Croatia, a project is about to tip the scales - for 150 million euros. Austria's Hypo Alpe-Adria-Bank is becoming a dominant financial partner. hospitalityInside.com tried to create a portrait of this group, coming up without a final result. Read for yourself.

While some are squeezing out of their home countries, others are squeezing in. Two weeks ago, we reported about "Chinatown Bad Orb". When I was editing this article, I shook my head: would this model become a precedent? What if more investors from China, India or Arabia let their own workers be flown in to German construction sites? We kept our ears open and I think we managed to give a realistic picture about the practicability of this model.

There is always much fuss revolving around trade fairs. Accordingly, three hotel groups emerged just after the IMEX in Frankfurt came to a close and claimed to be prepared for online group reservations. We have taken a look at these websites.

My Swiss colleague Silvia Pfenniger also kept her ears open pointing out some questions. She coaxed some forceful statements about the state of the hotel industry out of the British future-guru Martin S. Raymond in London.

Reading such articles is pure fun, as they "poke". I hope you'll think the same?!

Until next Friday,
Yours, Maria Puetz-Willems
Editor-in-Chief


Ideas? maria@hospitalityInside.com