News & Stories

Munich. Good times for hotel real estate sellers: A fierce competition has broken out among the bidders since projects are rare. This is driving the prices. The increasingly positive image of the asset class hotel and the current low interest rate environment are additionally attracting more and more institutional as well as private investors. At the same time, the banks are opening their monetary sluices again. Reason enough for a super mood at this year's Expo Real in Munich. Exactly this also is bringing sceptics to the scene who have been considering this to be the last real estate and investment trade show with this mood – at least for Germany. Some nuances have changed within the hotel development and financing itself. The summary of facts and opinions.

Hannover. The management of TUI AG as well as TUI Travel PLC have contractually agreed to the conditions of the merger between the two companies. Their strategic advantages and synergies should lead to considerably higher savings than originally assumed. The hotel portfolio should grow further.

Rome. Despite economic stagnation and bad weather, the Italian hospitality sector managed to limit its summer losses. The most important national industry associations saw recovery dwindling, but the months from June to August showed a similar performance to that of last year.

Wiesbaden. The crisis in Ukraine has hit tourism hard, not only in Ukraine and Russia, but in other European markets. Whilst a whole range of Russian tour operators went insolvent in the first half of the year, European tourism companies fear that business with Russians in the west will collapse in the second half. Particularly interesting is how investors are behaving: Russians who like to invest their money, in Germany for instance, are changing their plans - and some even pray together with their German business partners in Moscow for peace. A situation between hope and fear, on all sides.

Salzburg. The bloody conflict in the east of the Ukraine is undoubtedly a catastrophe. But not so for Austrian tourism for the time being. At least the "Russian strongholds" in Austria are bracing themselves against image losses and the idea of turning their backs on the market due to sanctions. The closer the winter comes, the more intensive becomes the – tourism-related – travel diplomacy towards Russia. Whether Salzburg Airport, Zell am See, Salzburger Land Tourism or Oetztal in Tyrol: "Selling from door to door" is meant to impress upon important business partners in Moscow and St. Petersburg how important the Russian guests still are. The market is important: last year, nearly half a million Russians spent nearly two million nights in Austrian beds.

Nuremberg. In the current year, 14.5 million people have used long-distance coaches so far. By the end of the year, this figure could reach 21 million.

Brussels. For many people, Brussels is the "unofficial” capital of Europe, the place where its future is designed and its rules set. For the 3.1 million visitors who experienced Brussels in 2012, there is more to it than meets the eye under the European flag. Meeting the demands of both leisure and business interests, the city actually comes in 8th in the top 10 of "Lonely Planet’s" best place to visit" this year and remains, for the fourth consecutive year, Europe's no. 1 destination for congresses and meetings. This sounds like a good basis, as occupancy is good. But RevPAR is devastating. The hotel association complains about "killing labor costs", while the hospitality union criticizes the market's oversupply and the industry for its unprofessional behavior.

Brussels. The Brussels Hotels Association fights for clear rules and fair competition conditions. Belgian hotels have the lowest gross operating profit in Europe, complains Rodolphe Van Weyenbergh, Secretary General of the Brussels Hotels Association. In this respect, he regards the labor costs as an unreasonably high burden, which prevents many hoteliers and investors frominvesting. At the same time, there are reportedly 5,000 rooms in the market that are illegal or benefit from legal uncertainties. In addition, numerous 5-star hotels are currently planning to have themselves downgraded to 4-star hotels. The Secretary General on the current situation in Brussels and the region.

Rome. After months of debates, the Italian Parliament has finally approved the culture and tourism decree. Following the reading of the decree in both Houses, the new law confirms the fiscal concessions included in the decree's first draft that are devoted to donations to art infrastructures and activities, as well as to investments in the tourism industry.

Vienna. The new high point in the battle for the Viennese hotel guest is already on the cards with the opening of Vienna's new Central Station and its 4,000 additional hotel beds. Already, the price slump can be felt, yet the increasing capacities at Vienna West may not result in happier guests and instead the station may face the prospect of empty beds. In Vienna, the new Central Station and Vienna West will compete for guests. And once again the discussion as to how many hotels the city can bear is hotting up. Prices have already fallen through the floor and efforts to raise them are failing in every category. Viennese hoteliers are nervous.