News & Stories

Berlin. The amounts are too small, the durations too short: this is the criticism of the German tourism industry and the Dehoga Bundesverband on the 120 billion euro economic stimulus package which the German government passed on Wednesday.

Paris. The pace of growth of Asian hotel groups has increased enormously in recent years. Five of the 15 largest hotel groups by number of rooms now come from China, but other Asian countries have also made the leap into the top 20. What effects does all this have on EBITDA and the corporate values of the big players?

Berlin. As of this Tuesday, the German hotel and restaurant industry began its gradual reopening. The exit will take place in stage until the end of May. Yet two core problems remain: rental costs and the broad plans for support loans that are still not reaching the industry. Mass insolvencies seem inevitable. As regards rents, the Central Real Estate Committee, Germany's largest real estate trade association, supported Dehoga and submitted a proposal to German government outlining a possible solution. Asset expert Theodor Kubak of Arbireo Capital AG is working on further ways to be able to share the rent burden more equitably.

Berlin. Five weeks ago, the German Minister for Economic Affairs, Peter Altmaier, announced that another emergency rescue fund would be set up for the hospitality sector.

Berlin. As much as German hoteliers and the associations have so far been pleased about the German government's quick financing decisions after Corona, they are annoyed that politicians do not want to understand how hotels are financed. The anger about the KfW conditions is great. A wave of bankruptcies is approaching. The industry is currently losing around 750 million euros in turnover every week.

Wiesbaden. For ten years and until a few weeks ago hotel groups announced bulging pipelines and investors praised the high professionalism of their operators as well as their own hotel real estate competence team. Now, however, the question arises as to what the much-praised partnership between the parties is still worth in view of Corona.

Düsseldorf. Corona state aid has been approved in Germany, but the billions for the hotel industry may still come too late: There are difficulties because of the KfW liability and the horrendous administrative costs. Therefore, Select Hotel Advisory Services has compiled a current list of all subsidies in the 16 federal states, including contact links and comments on the current situation.

Munich. As a type of financing, real estate leasing is a long established practice. Now, it is gradually coming into the focus of the real estate industry, and so also the hotel industry, as an interesting alternative form of finance, in particular for hotel companies aiming to expand quickly. Though for hotel companies looking to secure tax advantages and positive balance sheet ratios, it is not suitable.

London. The Financial Times last weekend reported on the trillions of dollars that have been wiped out thus far due to the coronavirus disease 2019 outbreak. According to the newspaper, stocks in hospitality companies have been particularly hit, having fallen by a reported 19% in Europe compared to last week – one of the strongest declines for the sector since the terror attacks of 9/11.

Brussels. Spanish hotel group Meliá has to pay 6.67 million euros for including restrictive clauses in its agreements with tour operators to the European Commission.