Dear Insiders, 

Our simple question "What CEO and what travel company has a positive image?" was answered by only 15 from a total of 30 people questioned. We sifted out press speakers that would have very much liked to have named their own boss. Some managing directors or chairmans abstained from giving a response, either because only negative examples fell to mind or they held themselves to be the best. But for all that the remaining names are no less interesting. The reasons for their being cited anyone can think.

Interestingly enough Kurt Ritter, CEO of Rezidor SAS Hospitality, cropped up in the responses we received. Without knowledge of this, however, or even to have had slightest inkling that he might be named, we'd asked him three days previously if he would be willing to give an interview. Of course he stood promptly at disposal and the "PR Package" Kurt Ritter was lassoed for this edition within 12 hours.

Behind this little survey was a little more than first appears: a study undertaken by the Free University of Berlin took a closer look at the CEO in corporate communication through all walks of industry. The results - in summary and in full in the attached PDF - are open for comparison for each hotel group.

Interesting tips for hoteliers are to be found in a second study on Football World Cup sponsorship. The study names the cities that will profit from the fan boom.

One of those cities in Munich, but the Bavarian capital attracted the attention of the German hotel industry last week for another reason: In Dorint Sofitel Bayerpost the Dorint AG general meeting took place. The hotel group has not emerged from the red and now more radical action is on the cards. Disappointing: The alliance with Accor has not brought the desired success.

For the first time the French, who have certainly been spoiled in the German market up until now, seemed to be banging their heads against a brick wall. Guests repay confusing brand politics by quite simply staying away and internal opinions on how to solve these sales problems are anything other than harmonious. Two company cultures clash against each other - as once the case with NH Hoteles and Astron Hotels. With Accor and Dorint then things remain tense. Accor can no longer simply pull out. It is simply just too involved. Accor boss Espalioux can think himself lucky that France's stock market speculators can't quite estimate the full extent of the ongoing financial crisis of its German partner. The German trade journal "FVW" signed Espalioux off last week, albeit a little too hastily. On 6 September the supervisory board will convene in Paris. Espalioux's contract extension then stands to debate.

Have fun reading this edition. 

Yours, Maria Puetz-Willems

Editor-in-Chief


Please, write to: maria@hospitalityInside.com

Dear Insiders,

Today, our issue revolves around money or strategies. And around employees. About badly trained ones in spas and unfairly treated ones in the echelons of management. Not every manager likes to talk about the issue of remuneration and his bonuses, but the few comments definitely reflect the trend. It is a "hot potato" for sure, as we learned during our research work. In future, we will shed light on this topic in further facets. 

I recommend the spa management of Kempinski St. Moritz to read hospitalityInside.com thoroughly. In our column "Health & Wellness" you will find, for example, the spa standards of Leading Hotels and other useful tips for operating a "well-being area". At any rate, our experience report substantiates "bad conditions" in that spa! But many hoteliers do not see that, as their management by walking around finishes off in front of the spa. 

In the interplay of money and strategies, sometimes one thing outweighs the other and vice versa. Starwood Capital has just invested money and is currently working on a strategy for Europe, as the US company reports directly. Its budget plans could indeed become the "bone of contention" regarding a dismissal of Accor's head Espalioux. At the moment, there is no news from the Parisian rumour mongers.

As summer time means travel time, we also turn today to the hotel interests of German tour operators - the "secret hoteliers". There, new facets are opening up in the strategies as well. 

Arkona AG entered the market with innovative ideas. It wants to generate synergy effects between the attractive resorts on land and river boats. A good concept - in practice, however, a good many things already had to be adjusted, as our article shows. Recently, there have been quite gentle but steady voices of insiders claiming that Arkona was "swimming" financially. From the business report 2004, this cannot yet be deduced, even if its publication was carried out three months later than in the previous year. At best, it is possible to deduce this from the comments coming from the company itself, which were: "The opening in Kitzbuehel in December is the moment of truth!" What the insiders mentioned claim to know better: "The moment of truth will already be there after Travemuende!" The opening of that hotel will take place next month.

Enjoy an informative insight into the game of money, strategies and employees.

Yours, Maria Puetz-Willems
Editor-in-Chief


Comments? Please! maria@hospitalityInside.com

Dear Insiders,

For the first time since the announced restructuring of its brand structure, InterContinental talks about the plans regarding its brands to German media. Robin Wicks, the new chief of operations in Europe talks about the new targets in franchising as well as about the new sales structure that is no longer attached to individual regions. One’s stomach still feels queasy when thinking about replacing personal contacts onsite by an telephone service because of the extremely fierce competition. But InterConti has decided to do so. The cost pressure is definitely breathing down the group's neck. "We are turnover deliverers" - that is definitely the most important symbolic statement made by Robin Wicks. But his willingness to do an interview shall be expressly praised here: InterContinental belongs to the kind of global chains that have difficulties in dealing with the press.

Regarding our research for the second part of our topic "best prices", an online hotel portal had to be asked twice until it delivered all the required information. Luring with so-called best prices that are not so in reality, borders on untrustworthiness in individual cases. The main thing is that the best price button is in the web! The main thing is that competitors notice that one is going along with it! The customer? Oh damn, that annoying guest is there, too. Not to worry if he does not understand it. He is only supposed to click on that button and book... The topic regarding best prices finally leads to a completely different discussion - to the fair treatment of customers.

The managers of the web portals would certainly be an "open book" for Walter Rotter. The coach evaluates characters and leadership abilities based on the date of birth. Sounds like magic, but seems to be quite realistic. Every coach would like to have been an uninvited visitor at the opening of the new Maritim Hotel in Berlin - a mega hotel that had to overcome one mishap after the other. A writing guest reports. The Maritim Berlin has only 505 rooms - the new hotel in Dubai that will soon be operated by Maritim has 1050 rooms. Oh dear.

Today's issue is a summer potpourri made up of all kinds of news and stories. Media that do not provide such diversity in the midst of the silly season are pouncing on rumours instead. The reporting about Accor and the dismissal of CEO Jean-Marc Espalioux are good examples for gap-filling journalism. At first, a French newspaper reports about rumours - only a little bit at first, then a little bit more. And then the first article appears in Germany, in the "Welt". Then the "Sueddeutsche Zeitung" generates a three-column article out of it and finally, the "FAZ" issues a four-column hype article with a mega photo.

hospitalityInside remains slim and fresh. Without losing touch with the changing developments.
Have a great summer week!

Yours, Maria Puetz-Willems
Editor-in-Chief


Your comments? maria@hospitalityInside.com

Dear Insiders,

in the last days hotel veteran Horst Schulze made the headlines. The first time with the announcement of his new hotel chain Solis and a second time a few days later - was this really coincidence? - two business partners accuse the former President of Ritz-Carlton of million Euro fraud… Alleged is improper conduct concerning negotiations surrounding the Lanesborough in London.

Perfect world, perfect imaginary world of hotels. They're so close together. The good and the bad are again making headlines. At least Georg Rafael isn't part of the new plans of his former Regent partner  Bob Burns, who, at 76 years of age, is to try his luck with a new range of boutique hotels in Asia. We reported. "We've lived our lives together," says Rafael of Burns' plans in a chat with hospitalityInside and flies off to a five week holiday in Hawaii.

Jean-Marc Espalioux, the Accor-Head, is also currently on holiday. But whether the holiday spirit improves on account of the rumours circulating the French media? Both Accor fathers, Paul Dubrule and Gérard Pélisson allegedly want to replace him along with four other board members. The newpaper "Le Point" has obviously found their summer headlines and gave the whole affair more fire this week with a further speculative article. Such rumours, however, are certainly nothing new and have surfaced on a regular basis in Accor's past. And so we'll wait and see. Accor headquarters in Paris is certainly in no hurry set anything straight.

And another rumour - or already fact? Reto Wittwer seems to have found a new GM for the Emirates Palace in Abu Dhabi. Now the owners of the Sheikh Palace have to take a liking to him. We've done a little research and have asked the Kempinski boss about the disputes in the palace. Abu Dhabi will continue to make headlines with or without Kempinski as up and coming tourist destination. Sheikh Sultan Bin Tahnoon Al Nahyan, the young chairman of the Abu Dhabi Tourism Authority, is a pleasant but prudent marketing representative of his country.

But this edition of hospitalityInside.com doesn't just comprise the people and their personal stories, but also of hard facts: What exactly is a "best price"? We try to throw a little light on the issue that is presently giving Germany a headache. This week our "spa certification" section will concentrate on the ArabellaSheraton and the Starwood Spa Collection. This and a little more today…

We wish you a rumour free week.
Maria Puetz-Willems
Editor-in-Chief


Contact me: maria@hospitalityInside.com

Dear Insiders,

The merger news from last Friday is set to change the European hotel industry: Starwood Capital clearly documented its right to decisively play along in European hotel business with the deal concerning Le Méridien and the Taittinger/Louvre group. Even in Germany the question surrounding the triangle relationship between ArabellaSheraton Starwood and Le Méridien regains interest. We'll look into it soon.

Raffles has lost its roots on the international level: Real estate is being picked up by Colony Capital. The first pieces of information from the discussions "afterwards" are brought to us today fresh from Singapore by Meinhard Huck, Managing Director of the Raffles brand Swissôtel.

The hotel industry is a strange business. Is it pushed forward by the desire to expand or - as this week's edition shows, by the desire to feed one's own ego? Horst Schulze and Robert Burns again launch their own hotel chains. Instead of playing golf, relaxing and enjoying life, the 64 year old ex-President of Ritz-Carlton once again starts a new luxury hotel chain. Among other hotels, the Grand Senior ventures a 348 room house in the still over saturated market in Frankfurt!

And Robert Burns just can't leave it alone either: The Regent founder now also wants to see his own name on the roof: "A Robert Burns Hotel" is to stand out proudly. But at least plans are restricted to Asia and not the whole world. Whether the managers of the "silver generation" have correctly weighed things up as they stand today? Since Ritz-Carlton's and Regent's heyday market conditions have changed drastically, and things have sped up considerably. Their good name will in the worst case at least ensure one thing: that the houses quickly find new management or owners.

It's understandably a pleasant change to speak with a modest and quiet manager like Giuliano Guerra. His Travel Charme group expands with extreme care. And the investors like it. Till now, very harmonious businesses have emerged with consistently positive margins. Similar success is to be expected from the first Travel Charme hotel outside Germany. Even there Guerra has refused to create one single superlative artificially, but has looked, searched and thought about things so long until everything fit into place. A good deed in such hectic and pessimistic times.

hospitalityInside offers in many regards a solid base of knowledge. From today we will help you to find your way around amongst the complex field of specialist terminology: We will begin the "hospitalityABC". We will start by introducing new terminology and will put this to practice. Dictionary definitions would simply be too easy! If you have problems with specialist terms or simply aren't familiar with them, write to us. We'll certainly try to help.

Have fun reading and surfing through the news from this week…

Yours, Maria Puetz-Willems
Editor-in-Chief


My e-mail address: maria@hospitalityInside.com

Dear Insiders,

Raffles never did manage to fully digest the mouthful that was Swissôtel: And exactly this feeling returns in face of the news that the Asians are about to sell their hotel business. For the new owner Colony, this is the opportunity it's been waiting for to net itself a hotel management company for its hotels. The investment fund already holds shares in at least eleven hotels or hotel groups. The pitch for management of Raffles is in full swing. The hotel market is with this becoming increasingly turbulent - and the ramifications are felt across all borders. Consultants predict this to be the start of a new wave of takeovers! Even the purchase of lastminute.com by Sabre confirms such statements despite it taking place in another market segment.

An area where forward movement is slow, however, is data protection. Students at the University of Applied Sciences in Munich gave the prominent German hotel companies a miserable report. Eight of the ten groups simply didn't respond to queries concerning saved customer data. The reason is simple: data protection places heavy work burdens on staff and requires detailed analysis of very dry material. Something hoteliers don't like. In view of the data protection traps that the data protection officer of Lindner Hotels counts, a little more caution is required. Penalties of millions of Euros can follow in cases of misuse of personal data! The legal regulations are of course also discussed by hospitalityInside.

Just as sensitive are our other topics today, that will raise many questions for the hotel industry: Which staff members are allowed to surf on the internet whilst at work? And what do holiday clubs do better than the hotels? Former hotelier Carsten Rath throws light on the latter by speaking of some of the successful concepts of Robinson Clubs.

I hope our choice of topics this week once again meets with your taste. Thank you for the e-mails and telephone calls from the last weeks which strengthened our resolve to continue to bring such a news and story mix. Our team is very grateful for such compliments and your support.

Yours,
Maria Puetz-Willems
Editor-in-Chief


Please, write to: maria@hospitalityInside.com

Dear Insider,

The over 60s are described by the GfK as the target group of the future: They are still prepared to spend money for quality! Senior citizens thumb up their noses at youngsters with their spendthrift mentality. Finally! If that isn't enough reason to continue believing in quality! There still seems to be some sense of value out there.

Or is that just wishful thinking? Young people don't seem to be afforded too much competence as far as quality goes. Are they already unable to tell a good conference hotel from a bad one? So it seems, for otherwise the Association of German Travel Management would have no reason to introduce the first "Certified Conference Hotels" in Germany, which, as from Autumn, will bring one more sticker to German hotel doors! Because it sounds better and because foreign PCO's have to be convinced of the quality of German conference facilities, it will read "Certified Conference Hotel". Nevertheless, this will not be enough to conceal the VDR's second certification embarrassment. The first attempt to introduce the label "VDR Certified Hotel" to the German business hotel industry in 2001 went painfully wrong. Of the 400 top houses expected to carry this logo, only 250 have come together. "It's no success story" the VDR king of standards, Haakon Herbst, quietly admits. So that this time everything moves along the road to improvement, the VDR representative has ensured the support of the most important associations and conference competitors. Okay then: So long it's not proved otherwise, we'll trust in quality!

Anett Gregorius also believes quality must be improved. Since her Boardinghouse Consulting firm determined the market in serviced apartments to have as many holes as an old sponge, the definition of minimum standards has left her no peace. A table clearly shows where expectations lie - any providers among our readers may compare it with the "present state" in their own houses. Officially, this present state is to be coordinated by means of an independent TÜV certification procedure in autumn.

A product that already stands for quality is "Welltain" - Holiday at healthy altitudes. But the guests are staying away. Is this only a matter of location - Lech am Arlberg - or simply the lack of interest? The guessing game as to health and quality has begun.

You have certainly noticed by now: Quality is the central thread running through the whole of this week's edition of hospitalityInside.com. Almost every announcement and article is concerned with it in some way or another. That can't be coincidence? Well, it is. And for this reason a true reflection of what motivates us. Together the effect is simply more noticeable.

Have fun with this new quality conscious edition of hospitalityInside!
Yours, Maria Pütz-Willems
Editor-in-Chief


Write to me with your opinion: maria@hospitalityInside.com

Dear Insider,

Everything easy - or not? Stelios and easyGroup show how it's done: After easyCar, easyMoney, easyJobs and easyPizza, the young entrepreneur is taking a stab at the hotel industry. The first budget beds on a second-hand luxury cruiser have already taken across the seas -and all that at dumping rates. In August the first easyHotel is also to open in London - of course also at dumping rates. 

Stelios' websites reveal a lot about the his past and personality. And wasn't it also the lateral thinkers who brought new life into the classic hotel business? Budget cruises will definitely find their target group just as Accor's budget beds. 20 years ago, the French were also nothing but a target of ridicule...

If you believe in successful poles and polarisations, you must also give credit to the enormous success of Conrad Hotels. Dieter Huckestein is aiming at placing the long idling 4-star brand, in the upper end of the luxury market over night. An enormously demanding undertaking - which will definitely require thousands of perfectly trained employees.

Personalities are also coming and going at the German hotel group Maritim: Christian Windfuhr, a hotelier who has worked for many chains, comments on the industry. His successor, Gerd Prochaska, will have to figure out how he wants to lead the new mega Maritim hotels, above all, in Berlin. The insurance investment model Maritim conceived together with KG Allgemeine Leasing, demonstrates that the German chain, considered extremely conservative, is up to new and innovative tricks. 

Apropos financing: our colleagues from fondstelegramm.de have analysed the current account of the biggest German hotel fund initiator Dr. Ebertz and in doing so have reviewed the connection with Dorint Hotels. In the two latest issues, hospitalityInside.com reported in detail about the persistent losses of the biggest German hotel group and the way out of the crisis.

And for the friends of wellness there is also a new story: Following reports from Leading Hotels, Romantik Hotels now talke about their certification process. The most interesting facts at the end of the article: the table comparing the test conditions. 

Enjoy surfing and reading,
Yours, Maria Puetz-Willems
Editor-in-Chief


Please, send your comments to maria@hospitalityInside.com 

Dear Insiders,

It is not the bare figures that decide on the future of a company; it is the employees, whose performance is reflected in the figures. Ritz-Carlton’s cult claim “Ladies & Gentlemen are serving Ladies & Gentlemen” is far from having become an executive’s second nature. Motivating employees is of great importance. We have listened to the human resources departments of the hotel chains – listen with us.
Two other trends fit into this concept: more and more hotels put trust in applications they receive via their own website. HR executives say these online applicants are the best. However, they are concerned about a new EU directive – the new Anti-Discrimination Bill. Even more bureaucracy threatens Germany. Read on.

Companies determine the fate of their employees. If the French Taittinger family wishes to sell off its 900 hotels of Société du Louvre, its employees will also begin to worry. Insecurity also dominates Germany’s Dorint Hotels that are still deep in the red numbers three years after the crisis. The restructuring approaches seem to work, but the effects are still rather scanty. The managing board, however, remains optimistic.

And even in the latest news from New York, people are the focal point. The hotel marketing departments are refraining from spending their dwindling budgets on paper and promotions, but are using it instead for establishing personal contact with the people.

An issue that shows the hotel industry as a people’s business in many facets! I wish you motivating conclusions.

Yours, Maria Puetz-Willems
Editor-in-Chief


Please, write to: maria@hospitalityInside.com

Dear Insider,

It's hard to believe but: Austria's taxpayers are to fund a tourism project for and with the Dalai Lama! Government nodded the decision through - unanimously. A project reflecting the "Zeitgeist" of the moment is to come into being, developer Rogner says. A location on the edge of a certain German big city was allegedly discussed, insiders report, but the personal and spiritual closeness of the "Tibet-makers" in Carinthia is sure to have been the decisive factor.

Austria's tourist industry never ceases to create a stir, be it through big project announcements or new strategies. Other countries can only dream of such success. The little country in the Alps - a tenth of the size of Germany - continually manages the re-fashion itself into a tourist magnet.

Mega plans with mega figures have also been announced by Montenegro. The little state of former Yugoslavia is making hasty preparations to steal guests from the western Europeans. And they have good odds - the price differences between western and eastern Europe are an unbeatable reason to take holidays on the Montenegran rather than the overly expensive Italian Adriatic coast.

Projects as far as the eye can see. Bed-giant Marriott is now to expand in Asia. The Americans want to double the number of hotels and their turnover there. Presumably Starwood was too quick for them. And Emirates is to spend money for an eco-resort in Australia. Even Jumeirah, one of the bigger Arabic hotel companies, has announced further global expansion plans.

In Germany the bad news seems to be unending: Blackstone now wants to take over the adventure parks Legoland - and presumably not just the German one close to Ulm in Bavaria. If it succeeds, then this is likely only to be the first morsel for the huge US investment giant...The deal is likely to come nowhere close to the billion dollar take over of Wyndham Hotels announced last week. 

Investors still not in the know as to how real estate projects are put to best use will probably be interested in the most recent publication of PKF hotel consultants in Munich: They have issued a manual for real estate evaluation. That not every real estate investment is so financially sound - however much it may appeal to the vanity of the investor - is explored in our article on Schloss hotels.

We hope to have provided you with enough reading material for the next couple of days.

Till next Friday,
yours Maria Puetz-Willems
Editor-in-Chief


Please, send your comments to maria@hospitalityInside.com