News & Stories

Munich. Messe München described the 14th commercial real estate fair, Expo Real, as a "stability anchor for the industry" last week. Exhibitors and visitors, on the other hand, are confronted by less stable ratios, even if the general mood was positive. "The reading from the 2011 business thermometer is good," concluded Reinhard Kutsche, Board Chairman of Union Investment Real Estate, before adding: "Nevertheless, a cooldown is increasingly expected going forward". This is also true of the hotel industry, as was clear from many discussions. The positive mood prevails, but there is also much concern. This was clear both at the Hospitality Industry Dialogue as well as from hotel exhibitors.

Munich. Operators and investors can only achieve success if they each come to a mutual understanding. This is not the same as becoming friends. However, professionalism in one's own job, regular communication and bearing a common responsibility are a must. And so, the results of a discussion round in the "Hospitality Industry Dialogue" at the Expo Real 2011 on the subject "Investors and Operators - Friends or Enemies?"

Augsburg. In the German hotel sector, the majority of revenue is generated by hotel chains, while the structure of Germany's hotel landscape remains dominated by medium-sized businesses. As times get harder and margins keep declining, the question is: Will the banks let small and medium-sized companies survive – and if yes, for how long? Hotel consultancies have identified two extreme core trends in this respect – and a great number of challenges. However, most of them do not see any sign of an insolvency wave on the horizon.

Berlin. To date, investors in the Fundus Fund 31 have had little reason to toast their investment. Yet the move to reorganise senior management failed. Last Friday, August 26, Anno August Jagdfeld received approval to remain Managing Director of the Adlon fund.

Berlin. The hotel project developer, HOPAG Hotel Property AG, Berlin, is planning the first German Hotel REIT. They have sharply increased their share capital and by doing so, have prepared for their initial public offering. This was announced by the company.

Munich. The financial crisis has ensured that financial terms for hotels have become considerably more onerous. Meanwhile, however, both the economy and the results of most hotels have recovered well. All the same, hotel consultants and hoteliers are quick to remind that it's still tough. Franchise systems and private hoteliers in particular still have a struggle on their hands. Some banks have even dropped properties altogether - and thus put an end to otherwise good concepts. The approach taken by Austrian banks seems more adventurous. After analysing the credit-provider position last week, we now look at things from the perspective of the hotel consultant and hotelier.

Munich. The financial crisis has ensured that the terms under which finance is obtained have become notably more onerous for hotels. Meanwhile, however, the economy and so the results of most hotels have recovered well. Yet bank still remain very cautious. New rules such as Basel III ensure banks are even more selective in their choices on when and how far to provide finance. Equity-weak hoteliers and project developers often don't get a look in and the only option remaining open to them is the sale. Prices may be low but many international investors still see Germany as a safe haven. Nevertheless, the question is now increasingly posed as to which way the hotel industry will turn if return-orientated investors now begin to dominate decisions. In the first part today: The view of the creditors.

Dueren. Anno August Jagdfeld is leading the power struggle for his part in the Hotel Adlon Berlin with unusual openness and intensity. Here, he has placed his chips on textbook crisis PR aimed at investors and the press. And so, in the foreground to the crucial shareholder's meeting on 26 August, he has voluntarily provided copious amounts of information.

Dueren. "Successful with Premium Real Estate: Security, Profitability and Value Appreciation". This is the slogan that adorns the homepage of the Dueren-based Fundus Group. According to its own statements, the company manages five billion EUR entrusted to it by 56,000 investors and invests in more than 800 projects.But not all of these 56,000 investors - private and institutional - are satisfied with the Fundus investments nor with Fundus Chief Anno August Jagdfeld. Despite them already having paid in high sums, Fundus always seems to lack money somewhere. In the Grand Hotel Heiligendamm, a new director is to put things right. But a storm is brewing over the Hotel Adlon in Berlin: At the next general meeting, Adlon investors plan on removing Jagdfeld from Fundus Fund 31 management. That would be Jagdfeld's end. And so a heated and in parts very public battle is now in full swing between Jagdfeld and the Adlon Shareholder Protection Association.

Munich. Continuity and normality this is not: After the surprising and rapid termination of management contracts, at the end of March InterContinental's hotel sign was taken down and the Dorint flag was hoisted at three German hotels. Two months later - after various operators had weighed up their chances - InterConti had returned to the hotels in Berlin and Dusseldorf. Yet despite the ultimate clarity as to operator, rumours and mysteries still remain. The entire toing and froing was the result of the "good old" German lease contract - though a management contract was also in play. Now, not only Jones Lang LaSalle Hotels is asking: What is a lease contract worth? Christoph Härle, Managing Director, and Ursula Kriegl, Executive Vice President Germany, from JLL Hotels venture their answers.