Dear Insiders,

Did you already know? More than a third of the working hours worldwide are ineffectively wasted. Main causes are mistakes and weaknesses of the management and more precisely: inefficient meetings. Today, we will get to the root of the matter - even if some hotel groups think they already practice efficient meetings! We will provide some basic rules to all of those who have not yet thought about this topic.

If rules and regulations are not being kept, surfing in the internet may cause serious consequences. What to do, if the television reveals the password for the e-mail account of the last guest? Recently, an IT hunter from London pointed out security leaks in hotels at a hacker conference. We appealed to the honesty of the hotels and asked for information about these reproaches. But no one in the industry - who wonders? - admitted knowing about it. Despite that, we have found an expert, an external IT professional, who definitely knows about facts.

Our new author Macy Marvel followed the rules of the Travel Search Engines. He claims: search engines like Google or Yahoo are developing into a further distribution channel.

In case you long for some relaxation after all that demanding brain food: several articles deal with the nucleus of the Thalasso therapy of Accor in Brittany and with their changing concept.

Until next Friday,

Yours, Maria Puetz-Willems
Editor-in-Chief


Your comments? maria@hospitalityInside.com

Dear Insiders,

The news of the week was definitely provided by Cendant. The giant company from New Jersey clearly justifies the splitting of its group into four independent companies: the restructuring is necessary, as the shareholders want to see more yield. Good-bye hospitality! It is hardly possible to show narcissistic hosts and long-serving patrons more drastically that their noble convictions no longer count, but that it is solely the "dough". It is no longer about hospitality, but about business, regardless of what kind. Excluding Cendant's hospitality part from the corporate structure will leave it exposed to a harsher wind on the market. In the end, the company will become a much easier target for the takeover bids of the Blackstones and Colonys of this world... That is my opinion. Two of our external hotel experts provide a commentary about the current situation from their point of view.

The news from Starwood has to be seen as well in this respect: the profit of the quoted company suffered a massive slump in the third quarter and immediately, CEO Steven J. Heyer announces the selling of property worth between two and four billion US dollars. Here, somebody is also in desperate need of "cash in his till" - for greedy, yield-hungry shareholders.

The pressure to make money is closely connected to the compulsion to save money. Not only is this reflected in the big international context, but also in the small German one. The purchasing companies are experiencing a boom! Every cent counts, from ordering salad to buying cars or paying for energy. Behind the scenes, the hoteliers are becoming ruthless traders demanding more and more services from the purchasing companies. Here, a change is taking place as well, in the name of the cash register.

In this issue, you'll read how the Brenner's Park-Hotel & Spa in Baden-Baden is separating its cash register from that of the physicians of the medical spa. Read also about the new advance by the Rosebud group to finally change the Swiss mega resort Buergenstock into a profitable hotel. And regarding Kempinski's MBA, it is naturally about the "cash in the till", too. Its realisation causes some confusion, at least in our heads.

Enjoy reading.
Yours, Maria Puetz-Willems

Any comments? Please, address to maria@hospitalityInside.com

Dear Insiders,

The hotel business is always complaining about lack of professionalism. But only the very few complete their training. Kempinski for years has been an example to the whole branch with the MBA. ArabellaSheraton celebrated its first 18 MBA graduates two weeks ago. All the same, there's still a lot of uncertainty surrounding the Master of Business Administration. Baerbel Schwertfeger, special reporter for Management and Training, takes the subject to task.

Since the turnover collapse in the wake of 9/11, more and more hotel chains are beginning to look for alternative sources of profit. One of them is online shopping. Not all of them are able to produce concrete figures, but first attempts show that demand does indeed exist. And that the Americans have particularly mastered the marketing game is once again clearly apparent. "hotluxury.com" is the name of the website on which all hoteliers can sell their entire interior design programme.

To sell and to sell yourself are very obviously two very different kettles of fish. The Maybourne Group - the remaining hotels of the former Savoy Group in London - made little professional impression in Munich. All the same, the Irish owner's should certainly not be lost from sight.

To walk through your own spa with open eyes is the advice of our expert, Judy Singer today. She's put together a number of tips that can help turn every corner of the spa to a small profit zone.

This and much more in today's edition of hospitalityInside.com. Have fun discovering!

Yours, Maria Puetz-Willems
Editor-in-chief


Your comments? Welcome! maria@hospitalityInside.com

Dear Insiders,

The ExpoReal trade fair in Munich that ended on October 12, experienced another huge crowd of visitors. The inexpensive German real estate market is attracting foreign investors like the land of milk and honey. The introduction of G-REIT that would make investments much easier is being eagerly awaited. In the meantime, hotel developers are committed to a common trend: budget and design.

The international real estate fair ExpoReal in Munich confirmed the feeling that could already be felt throughout the industry in the run-up. The drop in prices in the German real estate sector has been registered by many foreign investors, and on the desks of agents and consultants, the requests for suitable objects are piling up, even for hotels. According to the investors, those who have enough time will be able to benefit from the medium-term recovery of the German real estate market.

Insiders of the German hospitality industry, however, do not expect the price structure and therefore the success of the industry to change in the short term. Meanwhile, this has resulted in numerous concepts that have got underway as to how to make budget hotels attractive to thrifty guests. The solution: combining budget and design.

While the next generation of budget hotels tries to make up for a lack of room size and decor through highlights and brightened up public areas, only those concepts will survive that provide special experiences/adventures in the resort hotel industry. This includes authentic Ayurveda treatments introduced by our author Baerbel Schwertfeger and vacation concepts that bring people into harmony with nature.

An example of this is the Six Senses Resorts. Their hideaway Soneva Fushi on the Maldives that opened ten years ago is among the most famous resort destinations in the luxury sector. In this issue of hospitalityInside.com, we will highlight how consistently the symbiosis of the exotic, luxury and ecology is realised there.

The content of our online magazine today also encompasses different topics concerning this vivid industry.

Enjoy reading and discovering.
Yours, Susanne Stauss
Senior Editor


Your comments? Please, write to susanne@hospitalityInside.com

Dear Insiders,

Almost at the same time, two German hotel professionals are founding research institutes: the one in Munich concentrates mainly on hotel real estate, while the second in Heilbronn focuses more on hotel management. Both are dedicated to making the industry more professional. This is urgently necessary, not only because the image of the hotel industry is bad and the entire industry as such is hardly noticed in public and politics.

On an international level, German hoteliers are considered to be disciplined, perfect organisers and are therefore "taken on with pleasure". But in their own country, things are different. Here, many hoteliers are considered provincial as well as immune to travelling and consulting. And the younger ones are regarded as being entirely focused on their career. As long as the industry supports two-year contracts and the young hotel industry professionals are rushing up the career ladder, the high fluctuation will continue. In this case, fluctuation means running away - running away from their own professionalism. What is easier than giving in the first time their boss turns up his nose? Those who are forced to stay longer have to put up with unpleasant things. They have to learn about markets and certain topics - and therefore they have to invest time in their professional training.

The practice automatically leads to research then. Linking these two aspects can only be welcomed by the industry. That is why we are keen to see the issues that are to be analysed by the new Treugast Institute in Munich as well as the Executive MBA programme that is being initiated, among others, by Prof. Dr. Christian Buer in Heilbronn.

Wherever professionals are no longer in a network or see themselves at a disadvantage, new networks are forming. The recently founded "Industry Travel Club" in Frankfurt is a good example of this, even though the names reaching the public are always the same. But from this idea, a vivid industry platform may evolve.

Professionalism is demanded in every field: Only then do the Achat Hotels that have already been written off on the side grow to become a franchisor. And only then can mega chains like Marriott manage to introduce room concepts on a group level and at controlled cost.

Improve your professional networks! hospitalityInside.com is happy to help you achieve this. We too are in a continuous improvement process.

Yours, Maria Puetz-Willems
Editor-in-Chief


Your comments? Please, address to: maria@hospitalityInside.com

Dear Insiders,

Even fault loans could mean good bargains! As financial investors will sell their properties in the short or medium term, new chances are opening up for hoteliers willing to buy properties, as a property is not always bad just because the connected loan cannot be serviced. Our editor Anne Wiktorin, an expert on the real-estate and financial service market, describes the development of the non-performing loans. The dimension of this issue can be recognised, among other things, by the fact that there will be a congress on Non-Performing Loans in Germany on October 5 in Frankfurt and on November 9 and 10 in Berlin. And it will surely be an issue at this year's ExpoReal in Munich, which will begin in two weeks.

Last night, there finally was the official announcement regarding the sale of the Aldiana Clubs to the Spanish construction company Santana Cazorla. If the Thomas Cook brand will become a good bargain for the buyer is still open. That decision will bring up numerous questions as Cazorla is also connected with TUI.

NH's future with Buehlerhoehe has already been decided. Dietmar Hopp, otherwise quiet and controlled, doesn't want to clear the portfolio of Buehlerhoehe, but certainly wants to clear Buehlerhoehe of NH. He has, after all, a direct comparison: His golf resort in France is run by Four Seasons, "a super chain" he praises. He's still looking for investment opportunities but more in real estate than in hotels. The multi-billionaire knows what he wants and above all, when he has had enough of difficult partners. Our interview is clear in this much.

Another development comes with a lot less drama: the first hotel chains have begun offering Internet access for free. Here, a new field of competition is becoming apparent, which is mainly about attracting business travellers. However, the whole thing is still nothing but a confusing mess of prices for the moment. Our list comparing Internet access rates points this out. A request to the hotel groups to reconsider their offers!

Currently, the Americans are debating a lot about design hotels and hotels with boutique character. But Germany can keep up with that. Here, the profitable business with the niche hotels is gradually beginning to grow. In this way, individual initiatives aiming at mini lifestyle chains are opening up.

These few issues mentioned here mark a huge general trend concerning the tourism and hotel industry: changes either affect the entire market/great parts of the market or the niches. Executives think and act in extremes. The industry events and congresses in October will surely contribute some issues to that.

Yours, Maria Puetz-Willems
Editor-in-Chief


Your comments?
Please, write to: maria@hospitalityInside.com

Dear Insiders,

The most recent list of HVS International about the best paid hotel manager is somewhat provoking the ego of all CEOs. Who receives how much as a basic income and how big is the bonus on top of that? Those who earn the most belong to the circle of the "usual suspects". Nonetheless, when studying the table, the question for commensurate remuneration remains. Are 3.3 million dollars as basic salary + 15.2 million as a bonus still justifiable for the head of Cendant? By the way, there are certainly no European hotel names in this multi-million dollar poker game. And asking why makes no sense at all.

We give you the profiles of the industry's top managers, not only as pure facts and figures, but also with many personal details. With today's issue, we will start a new series on the travel habits of CEOs and other hospitality managers. And as I myself was a guest at Six Senses Resorts & Spas on the Maldives this week, you will read the details of their frequent travelling CEO Sonu Shivdasani and find out what he cares about most. By the way, the interview about the stressful nature of his job took place in a very relaxing atmosphere - below palm trees in the ecological design resort Soneva Fushi.

A totally different form of positioning can be observed at ArabellaSheraton and its joint venture partner Starwood Hotels & Resorts. As it is now clear that the US hotel group will be managing the hotels of Le Méridien, a triad relationship is created regarding brand and management. What happens, if both brands are pitching for the same hotel in one city? hospitalityInside asked some concrete questions to the responsible managers of ArabellaSheraton and Starwood - receiving nothing but evasive answers from Starwood. Industry experts make up their own mind about Starwood's role with Méridien: and that does not look good for ArabellaSheraton.

The Grand Hotels Bad Ragaz is also working on their repositioning. They want to combine their established main pillar health with wellness. "Medical wellness" is to increasingly fill the hotel beds in future. In contrast, most other health and wellness resorts in the German-speaking market like the Grand Hotels Bad Ragaz, have already had extensive experience with doctors and guests/patients.

So much for today's main topics. But even in our little reports and news you will read more about positionings and market positions.

I wish you an exciting week.
Yours, Maria Puetz-Willems
Editor-in-Chief


Please, write to: maria@hospitalityInside.com

Dear Insiders,

At some point, even the wealthiest owner is at the end of his tether: Dietmar Hopp, the founder of SAP and, among others, owner of Hotel Buehlerhoehe in Baden-Baden, officially and precisely comments on his quarrel with NH Hoteles. The man, for whom hotels can only be a hobby, has had enough of the operator who wanted to pull down his Grand Hotel Jewel to become a 3-star product. Only seldom does an owner issue such a clear statement - but personally, I think this is exemplary. hospitalityInside.com has been hot on the heels of the news concerning the Buehlerhoehe over the past two weeks - and NH Hoteles has tried to fob us off by applying "salami tactics". Dietmar Hopp's statement, however, explains that.

Reto Wittwer explains a lot today as well. He has been Kempinski's CEO for ten years now, but even for us, many details of his life were new. His flamboyant life and his unconventional appearance have therefore contributed to a portrait standing out from others. Some details of his life also explain his emphatic approach regarding Kempinski's expansion. At the moment, the pace will be kept, but consolidation is in sight. Today, Wittwer plays with open cards - in order to direct the view of his business partners straight ahead. Only seldom does the 56-year old speak about Kempinski in such an open manner.

Two other heads are currently cause for talk: Alois Hartl, the "Golf King" of Bad Griesbach, is once again on the brink of a tee-off with a new investor. Now, he wants to help the bathing province in becoming a world-class destination. Until these efforts result in a "hole-in-one", the self-made man needs to improve his handicap quite a bit.

On the other hand, there is Stelios, the smart "easy" entrepreneur from London. Now he has broken into Basel's hotel scene with cheap hotels that only cost 15 euros. Those who believed that Formule 1 was the lowest level are wrong. An easyHotel takes the biscuit by far: There are even rooms without windows! On top of this, each room is already a cell with a plastic bath, painted with bright orange distemper to hide the fact. And yes: the staff was hired 5 days before the opening and trained in a crash course. A paragon of cost saving! I know hotel chiefs who will consider that a great thing, but one question nevertheless remains: quo vadis, hospitality?

Stelios' bright orange budget cruiser anchored in the harbour of Monte Carlo, by the way. What irony. Three kilometres away, Chief Executives, Presidents, investors, developers and owners discussed all conceivable variants of maintaining at least some quality despite increasing cost pressure. Today, a fresh-from-the-press summary of that conference. More on this will follow next week.

In this vein: Enjoy reading.

Yours, Maria Puetz-Willems
Editor-in-Chief


Please, write to: maria@hospitalityInside.com

Dear Insiders,

Well, Espalioux is leaving. On January 15, 2006, Accor's CEO will have his last working day. What was "hearsay" for several weeks has now finally been confirmed. Accor remains quiet, the reasons remain unclear. This is not a good policy for a quoted group that is to increase its value through being transparent. But it is typical for France. News has spread that the new man at the top will come from the financial community: either directly from Accor's biggest shareholder, the state bank Caisse des Dépots or at least selected by it. Will such a man of figures have more charisma than Espalioux? Others claim that it has to be somebody from the financial community, as Accor could be the target of a hostile takeover in future...

Allegedly, Espalioux will receive a golden parachute of 12 to 15 million euros, as one can read. Why does somebody receive such a high compensation, although the agreement is running out as planned? Or is it "hush money" to prevent Accor shares from dropping still further?

That brings us to another question today: who earns how much and who can earn how much? A Swiss economic magazine has published the salaries of Swiss hoteliers. Reto Wittwer just laughed, when we asked him about this... The majority of hotel managers would already be satisfied if they earned even part of that. Today, two articles show realistic figures: An analysis by HVS Consulting in London about the bonuses for department heads and the market experiences of the headhunter Antje Maesse regarding the amount of salary General Managers can demand in Germany and abroad. A must for hospitalityInsider!

The GM of Hilton Muenchen Park sees himself facing empty conference rooms and empty coffers. International groups are threatening with a stillstand of the conference business during the Football World Cup next year. How will he budget June 2006? We have collected statements of hoteliers about football and conferences. An exciting issue, as the chains begin their budgeting for next year within in the next few weeks. The right feeling can bring a lot or cost a lot of money in these times.

If you like our topics this week, recommend us to others! hospitalityInside.com is turning six months old on September 11. And we are very happy that our reports on news and background information are attracting a continuously growing number of subscribers and visitors.

We wish you a good week with our exciting information,
yours, Maria Puetz-Willems
Editor-in-Chief


Your comments? Please, write to maria@hospitalityInside.com

Dear Insiders,

Staff issues dominate this week: One has to keep in mind new heads at Thomas Cook's hotel purchasing and those within the management of the fund investment company WestInvest. As already reported on Wednesday, the most exciting news of this week is about Carsten Rath, the previous Managing Director of Robinson Clubs. He will take on a central leadership position within the Schoerghuber Group and ArabellaSheraton Hotels in Munich.

The 39-year old succeeds Robert Salzl, upon whose contributions and reputation nobody in the industry would ever cast a doubt. That makes the challenge for Carsten Rath even greater, as he has "only" worked previously as General Manager before becoming Managing Director with Robinson Clubs. Now he faces a whole slew of new tasks concerning strategy and development. By the way, it has not yet been determined, which of the described tasks Rath's will be responsible for.

Anyway, the first few weeks will certainly be quite exciting for Carsten Rath: In October/November, for example, there will be negotiations with the joint venture partner Starwood that will also manage the Le Méridien hotels in future. Apart from that, Rath needs to get along with experienced "hotel men" at ArabellaSheraton Hotelmanagement GmbH: with Thomas Willms, Edgar van Ommen and Peter Wackerbauer. Neither these three nor the remaining Arabella staff had known of the staff decision at top level; most of them heard about it in the evening, right before the official announcement was announced via the media.

TUI, Rath's previous employer, left quite a bad impression in this case as far as the media are concerned. It claimed in front of hospitalityInside.com that it had dismissed Carsten Rath, while Carsten Rath claims the opposite. The five sparse lines that TUI issued about Rath, however, left enough room for all sorts of speculation. Perhaps TUI's Hotel Business Manager Karl Pojer was simply offended.

Kempinski could also use a good lot of new heads. The number of employees fails to keep up with the pace of rapid expansion. In Munich, we met a self-critical Chris Hartley, who had to promote the new Turkish hotels by himself, as the Director there has already left again.

And last but not least, here in this country, a yet unknown head has thought about the future of his hotel management company. The glass noodle producer Ho Kwon Ping is expanding his Banyan Tree Hotels & Resorts almost explosively. There is definitely an unusual strategy behind that.

Here is wishing you a week free of headaches,

Yours, Maria Puetz-Willems
Editor-in-Chief


My e-mail: maria@hospitalityInside.com