Wyndham to acquire the american brand AmericInn for $170M

Hospitality On (by MKG Hospitality)·Requires Registration - 20 July 2017
Minnesota-based midscale hotel brand AmericInn has agreed to be acquired by Wyndham Hotel Group for $170 million. The AmericInn brand is owned by Chanhassen-based Northcott Hospitality and includes 200 hotels, mainly owned by franchisees in Midwest locations.

Hospitalty Hiring Paradox: Time to take a stand!

Hospitality ON - 19 July 2017
All too often, the hotel industry conveys the image of a sector that is ungrateful, has difficult hours, and under-valued careers; but what has truly been done to change that? With its history and that of generations of pigeonholed employees, the world of Hospitality is like a giant cruise ship trying - with great difficulty - to change its course. So it would be best to take the helm quickly. The transformation of concepts goes hand in hand with a return to the drawing board to reexamine the human role in the hotel industry. Traditional functions are exploding in in light of clients' increasing need for autonomy and - paradoxically - a need for more direct and more authentic exchanges with personnel. The jobs, defined in terms of vertical functions that are associated with one another, no longer correspond to the expectations of a more polyvalent, warmer, less technical and more interactive contact.The technological revolution that has taken place at headquarters must now trickle down to each property. This type of consideration of the hotelier's work, from every angle, must not be subject to any taboos. The use of artificial intelligence and different applications makes it possible to give employees new tools to strengthen their abilities to know clients, meet their expectations and control several functions at once, and thus gain in terms of expertise and qualifications.For hotel management, it is also a means of lightening structures, making them flexible again and increasing profitability that may thus result in better wages. There is no reason why the world of tourism and hospitality should be condemned to this image of minimum wages where propel work while they are looking for something better.In hotel groups, each employee had a kind of "passport", a more or less precise road book detailing their experience, training and qualifications. Today, they may be given a professional "toolbox" allowing them to handle any situation. This technical manual grows with the employee's knowledge, experiences, and any information supplied by management. Such software is already available at major industrial firms where it is a kind of "Pilot Book" with descriptions of jobs and and related tutorials to increase polyvalency.Hospitality is a world where start-ups get involved wholeheartedly. While hotel groups may have trouble bringing on this cultural revolution of management on the field, they can rely on the creativity of young people who assist in their metamorphosis, as other sectors have done. Daily management gains in efficiency and reactivity. The much hoped-for loyalty development can be realized when operations are able to give it meaning.The hotel industry needs to strengthen its heart and lungs, its core, in order to nourish a new form of passion and reception and service and breath new life into its trades, which while they are old should not remain antiquated.

+ 6% in January-April 2017 for the International Tourist Arrivals Worldwide

Hospitality On (by MKG Hospitality)·Requires Registration - 18 July 2017
According to the latest UNWTO World Tourism Barometer, we count 369 million international tourists in the first four months of the year, it is 21 million more than the same period in 2016. International arrivals reported by destinations around the world were positive overall, with very few exceptions for January-April 2017 period. This period usually represents some 28% of the yearly total and covers the winter season of the Northern Hemisphere and the summer season of the Southern Hemisphere, as well as the Chinese New Year and Easter holidays, among others.

Micro-hospitality: does size always matter?

Hospitality On (by MKG Hospitality)·Requires Registration - 17 July 2017
When it comes to size, today, modern hospitality faces two extreme trends: either over-extending with large facilities featuring pools, restaurants and luxurious amenities, or paring down to the simplest form with practical, mobile concepts. Focus on the latter which are shaping the future of hospitality.

Business will live on through experiences it will bring

Hospitality ON - 11 July 2017
Many local businesses believed in the "click and mortar" model that combines the best of the Net with the corner shop. The model relies on the desire of customers to see, touch, try products and interact with personnel, who are perceived more as consultants than sales people. But is this always true? The pleasure of shopping is now experienced as a tourist activity during travel and less and less as a daily need. Online commerce has multiplied the possibilities, guarantees, annexed services, immediate delivery ... eliminating the need to enter a store.Commercial real estate is being reinvented in a quest for greater efficiency and profitability per square meter. Thanks to new concepts and practices, a movement is underway in hotel real estate that offers a fine outlook. So, what valorization can a business expect when the primary element - the clientele - is attacked full force by online commerce and when its second pillar, the brand, has difficulty achieving a sufficient level of notoriety?Real estate has long business cycles with sometimes irrational fluctuations, but with long-term valorization that does not really experience crises. Land owners have been right and regularly successfully raise funds. Is the same true for businesses? Many salespeople have been cruelly disappointed when they attempted to base the transaction on optimistic multiples. Only in France do people still believe that a business has as much - or even more - value than the actual walls. The current evolution risks further weakening its value since online distribution giants are doing everything to appropriate and develop the loyalty of customers they send to hotels. It is difficult to be certain that the brand will give the business solid support.Due to a lack of means, strength and a constant message, hotel brands have only rarely reached the level of a well-known brand, that is liked, chosen and that justifies its value on the balance sheet. Worse, in terms of spontaneous notoriety, AirBnB, Booking and Expedia are currently reaping benefits. The quest for a hotel experience no longer centers on the hotel brand or the product, which is often easily substitutable, but goes through the distribution channel and its annexed services. Booking a room on AirBnB is like eating at McDonald's. Booking, instead, offers diversity and an option to select associated "experiences". Brand strength lies in being able to exist globally through "universality", or through the simple strength of the Internet. The challenge is more difficult for a hotelier with multiple properties, sociological and legal constraints...The launch of the mega brand ibis by Denis Hennequin was motivated by this need to reach critical size in terms of awareness, like Holiday Inn or Marriott did on the American continent. By merging developing brands around a real spearhead, Accor successfully created some real momentum towards brand status that is not based exclusively on location and a name, but also on an experience. Just a little more effort and it's done.This is the next indispensable step for any brand that wants to be able to improve its results through differentiation and thus experience. The hotel experience must take on a new dimension. This is only conceivable if the property becomes a place for life, for meeting and for sharing for guests who receive privileged treatment. Hoteliers have not yet lost their battle, but it is important not to mix up priorities. While the asset light policy remains an essential trend for hotel groups, it is in their best interest to massively concentrate investments on creativity and awareness by renewing key concepts and event marketing. It is a new way to support a business based on the reality of a unique customer experience.

Jean-Yves Le Drian : tourism as a priority

Hospitality On (by MKG Hospitality)·Requires Registration - 11 July 2017
The minister for Europe and foreign affairs, Jean-Yves Le Drian, has no intention of leaving the fate of tourism to just anybody. From Monet's Gardens in Giverny, he reaffirmed the significance he holds for the sector and spoke of the five projects he was undertaking this summer.

Carlson Rezidor strenghtens its presence in Hungary

Hospitality On (by MKG Hospitality)·Requires Registration - 11 July 2017
Carlson Rezidor continues its development in Eastern Europe with the opening of a property under the Park Inn by Radisson brand, in the city of Zalakaros, Hungary. Located close to the Gránit Thermal and Medical Bath spa complex and not far from the Lake Balaton region, it is the fourth hotel of the group to be established in the country. It offers 211 rooms and 25 suites, as well as a restaurant, a lounge bar and meeting rooms. Guests can also benefit from the Gránit Spa, which includes a fitness center and an indoor swimming pool.

A luxury hotel with Earth-view: dream or reality?

Hospitality On (by MKG Hospitality)·Requires Registration - 10 July 2017
Five graduates from the Massachusetts Institute of Technology (MIT) have introduced a project that won a competition organized by NASA: their idea is to develop a luxury hotel in space. Christened MARINA (for Managed, Reconfigurable, In-space Nodal Assembly), their concept aims at cutting operating costs for spatial research: they would divide the space shuttle into two parts, one as a luxury hotel to accommodate space tourists; the other to welcome NASA experts. Hence a reduced budget for spatial exploration could be met thanks to revenues generated by space tourism.

China: Wanda sells $9.3 billion in tourism assets to Sunac

Hospitality On (by MKG Hospitality)·Requires Registration - 10 July 2017
The Chinese conglomerate Wanda Group, which has interests notably in real estate, cinema, leisure parks, finance and the Internet, has just announced the sale of $9.3 billion (ca. €8.2 billion) worth of its tourism assets to its counterpart, the Chinese developer Sunac China Holdings Ltd. The assets at stake include 13 Wanda Cultural Tourism Cities - tourism facilities and theme parks - in which Sunac will take a major stake (91%), as well as 76 hotels. The transfer of the latter is estimated at more than $5 billion.

AccorHotels turns containers into hotels

Hospitality On (by MKG Hospitality)·Requires Registration - 7 July 2017
AccorHotels has recently launched a new, mobile hospitality solution: containers that have been turned into hotels! Designed by Ora-Ïto and produced by the French start-up Capsa, the concepts have been tested for the first time in the course of the 24 Heures du Mans racing competition, last June. Every container aims to be a comfortable 'life space' featuring a bed, modern amenities (Bluetooth speakers, electric plugs, WiFi access) as well as a private bathroom; but it is also intended to be eco-friendly in its production chain.

Hotel worldwide supply: global growth of hotel chains remains stable

Hospitality On (by MKG Hospitality)·Requires Registration - 7 July 2017
With a net increase in hotel chain supply by +4%, figures are in line with those of international tourism. Brands are a powerful driver of hospitality renewal with an obvious shift towards new generations. Concepts are multiplying and appearing on almost every continent.

Strong global growth driven by Africa and Asia

Hospitality On (by MKG Hospitality)·Requires Registration - 5 July 2017
With 3.6% growth from January 1, 2016 to January 1, 2017 in the global hotel and residence supply, for both branded and unbranded properties, the rate is the strongest in 15 years. This growth pushes it beyond several symbolic benchmarks: 25 million rooms and apartments worldwide; 8 million in Europe and closing in on 7 million in Asia Pacific. While old trends continue, a new region for growth seems obvious: the entire African continent, which is picking up where Latin America left off.

Tour de France 2017: hospitality performs well in Dusseldorf

Hospitality On (by MKG Hospitality)·Requires Registration - 5 July 2017
The racing cyclists competing in the 104th edition of the Tour de France have started pedaling. This year, the competition began in Düsseldorf, ca. 300 kilometers away from the French border. And despite the rain, the German city’s hospitality industry performed very well while hosting the event.

Movenpick under development in Vietnam

Hospitality On (by MKG Hospitality)·Requires Registration - 3 July 2017
The Swiss company has just announced the signature of its first hotel in Danang, scheduled to open end 2019. Four other properties should open in Vietnam by 2020. The Swiss hotel company Mövenpick Hotels & Resorts just signed a new property in Vietnam. Located in Danang, a coastal town in the center of the country, the complex will house 150 rooms as well as 354 residences, a rooftop bar-restaurant, several bars, a swimming pool, a fitness center, a spa, a kids club, as well as an reception hall and meeting rooms.

Park Plaza London Waterloo bought via a club deal transaction for EUR182 million

Hospitality On (by MKG Hospitality)·Requires Registration - 30 June 2017
Freshly opened, the London hotel is changing hands for €181.8 million, as its was just acquired by varied pension funds via a club deal transaction. The Park Plaza London Waterloo hotel has just been purchased for €181.8 million (£160 million). The transaction was made via a club deal agreement by several pension funds, which concluded the operation through the broker's investment vehicle. The upscale hotel, which features 497 rooms and a living room, a bar, a café, a spa, a fitness centre with a swimming pool and six meeting rooms, had just opened its doors in London's South Bank district, near the city centre of the British capital.

Slowdown in performance growth against a backdrop of supply expansion

Hospitality On (by MKG Hospitality)·Requires Registration - 30 June 2017
In 2016, the RevPAR of the global hotel industry is up 1.9%. Although this figure is down with respect to 2015 (+3.3%), these are nonetheless very favorable results: on the one hand because this is the seventh year of continuous growth and on the other because it happened within a context of strong recent growth in the hotel supply.

Hotel groups seek a new distribution of the world

Hospitality On (by MKG Hospitality)·Requires Registration - 29 June 2017
The race for critical size is at the top of the agenda more than ever. On the one hand, Western groups are reactivating organic and external growth through mergers and acquisitions. On the other, Chinese groups, for the most part, continue to nibble away at additional market shares by inviting themselves, in a mostly friendly manner, into the capital of groups that are present in America and Europe. There is a clear desire to support the rise of outbound Chinese clientele and to have achieve a global footprint.

After going 'asset light', are hotel champions bound to disengage from employment?

Hospitality On (by MKG Hospitality)·Requires Registration - 29 June 2017
The financial valuation of the main hotel groups worldwide has evolved positively over the last few months, but the rise of digital players in tourism has been even faster. In addition to their strong growth and high valuation, these emerging players are characterized by their moderate consumption of resources. This puts pressure on traditional players whose performances are increasingly challenged by investors. Whereas hotel groups have already almost completely disengaged from real estate, this is not (yet?) the case with labor. Although the “servuction” process will always be part of hotels’ core business, will the major hotel groups resist the growing temptation to pass the burden of personnel costs on to others?

Worldwide Hospitality Ranking: which changes in the leading 12 hotel groups?

Hospitality On (by MKG Hospitality)·Requires Registration - 28 June 2017
Global leaders continue to grow, but at varied paces. Chinese actors are becoming increasingly powerful: in the global ranking, Huazhu overtakes Best Western. The analysis with the data.
Article by Georges Panayotis

Is a global breach of ethics underway?

Hospitality ON - 27 June 2017
All the economic actors are asking for rules to guarantee that competition develops on healthy foundations. It is an essential principle that should not be subject to exceptions because any bending of the rules necessarily results in eliminating deserving businesses, through a distortion of the market to the detriment of the client as consumer, through a misappropriation of market shares... This does not get in the way of a certain propensity towards rule bending in favor of family in a call to tender to treat directly with a close partner without without ever making the call, and towards friendly arrangements to ensure personal decisions.But let's not be naive, the conduct of business is not a long quiet river; it is important to know, at the right time, how to develop alliances, to block initiatives, to apply enough pressure to win over those who are reticent and be able to reward involvement from partners. Does the end justify the means? "Yes," will implicitly answer those who have achieved their goal and were convinced of the pertinence of their strategy. "No," will respond the others who have been eliminated en route by marginal - but not immoral - practices...And yet, while the goal is to become established for the long term, and create a relationship of trust that is much more efficient than a power struggle, to be able to justify the mutual benefit at any given moment of actions taken, there is nothing like respect for rigorous code of conduct, or for an ethic that will make a better impression than an ephemeral success.Times have changed, although practices have not yet been totally adapted to this new atmosphere. Transparency has become an essential criteria in business relations for customer loyalty. Those who have not yet integrated it are frequently reminded of it by shareholders, service providers and even clients, without necessarily needing "whistle blowers". Not everyone is motivated by public well-being and the virtuous concern for business morals. Disclosure is never totally innocent, nor devoid of ill intentions to the detriment of a competitor.The market sanction is the most efficient and often the most painful. Recent examples show that there is no longer any guarantee for impunity. Nike and its manufacturers in countries where child labor is commonplace, Volkswagen and its accommodating antipollution software, BNP and its Iranian contracts, Lafarge and its jihadist funding are just a few instances that resulted in losses of market shares, crashes on the Stock Exchange and heavy fines. If it is more imposed than spontaneous, the moralization of business is supported by a global state of mind that favors fair trade, social responsibility, commercial honesty. More than ever, businesses are considered citizen organizations, which are no longer free to do as they please.But business and ethics are fully compatible because good practices have never slowed development. It may take a bit longer, and require more conviction, lead to some disappointment when the effort is not enough, but the result is much more solid and convincing.Today, politicians seem to want to do away with "old practices" that are not all necessarily legally condemnable but morally reprehensible. These include, albeit a bit late, the terrible sword of Damocles that weighs on their legitimate ambitions. They would do well to take advantage of this moralizing trend to fill in a few holes in the legislative racket, by getting the so-called stateless behemoths that operate offshore, by strengthening cooperation between responsible governments. It is a step in the right direction to sweep off our doorstep, although I am aware that we will never prevent rogue states from playing the financial egoism card.

Cruises: Ritz-Carlton takes the plunge

Hospitality On (by MKG Hospitality)·Requires Registration - 26 June 2017
The launch of The Ritz-Carlton Yacht Collection by Marriott International makes it one of the first hospitality champions to offer its own cruise ships. Ritz-Carlton has indeed announced the building of three upscale yachts, one of which will put out to sea by 2019.

May 2017: Europe's hotel industry re-accelerates

Hospitality On (by MKG Hospitality)·Requires Registration - 22 June 2017
After a month of April with more measured growth, European hoteliers are regaining their dynamism, after Belgium, the Iberian peninsula and Eastern Europe. France is nonetheless one of the rare exceptions, with the only - albeit slight - drop in revenue per available room in Europe.

Matthew Shutt: "We are constantly looking at new business models"

Hospitality On (by MKG Hospitality)·Requires Registration - 22 June 2017
Matthew Shutt, Senior Manager Global Accounts at answered our questions at the 21st Global Lodging Forum.

IHG to launch a new midscale brand

Hospitality On (by MKG Hospitality)·Requires Registration - 22 June 2017
InterContinental Hotels Group (IHG) just announced the upcoming launch of a new midscale brand, which will first target the U.S. market. It is planned to be franchise-ready by the fall of 2017, which means that the brand's first properties should open by 2019.

Japanese hotels to start using Alibaba's online payment platform

Hospitality On (by MKG Hospitality)·Requires Registration - 21 June 2017
The Japanese tour operator JTB has signed an agreement with Alibaba to allow hotels (among other properties) to use its mobile payment platform, Alipay.

Clever is he who can guess who will be next to go

Hospitality ON - 20 June 2017
Attentive observers of the hotel world have observed systematic foot dragging among major traditional actors each time their universe evolves. Distribution delay, customer relations, community management delay, digital marketing delay, operational staff management delay, productive investment, CAPEX and R&D delays. The energy and capital spent thereafter to avoid being outrun by new players are not enough to regain leadership."If you can't beat 'em, join 'em!" This proverb partly justifies recent strategies taken by some that dip into their competitors' territory, even if it means reducing and following their rules. But in-so-doing they risk changing gravitational model and shifting status from attractive planet to orbiting satellite. The economic world is at least as cruel as the political world. The customer as elector seeks legitimacy and takes the same mischievous delight in undoing what he or she built in the first place.The new generation is even less respectful of customs and protocol. It mocks useless quarrels and divisions that cause players to tear one another to pieces. It is in this regard that it is necessary to be able to accept the position new hospitality firms have assumed. Far from shrinking, the universe regularly encompasses new planets that play a role in the system. It creates black holes that can rapidly absorb those that have stopped radiating. Although closing is popular, it is far from being a new notion and does not only impact corporations.Managers also must ask themselves about the governing model. Balances of power must regain a new equilibrium between the current ultra power of financiers, which have a necessarily capitalist vision of their commitment, and the operating staff of their partners and suppliers that wish to share orientations of the industrial strategy. Without it confidence collapses and relations are tense. Managers leave and, as is often the case, the best are snatched up by rising stars. The social elevator is no longer the best way because new talents are recruited from outside the sector to bring in new blood.And yet, the legitimacy of the hotel industry still exists, and more than ever. It feeds upon the difference service provides. It is maintained by innovation in concepts that require observation of behavior and anticipation of future needs. It asks not to have to rely solely upon partners, but also to show a veritable financial commitment. It is even able to strengthen itself despite the transition between several generations of clientele. The arrival of "Millennials" has not made "baby boomers" disappear; the latter have, in fact, increased their level of demand. The guiding principle is flexibility, in both functions and the product, which must be able to be adapted to complementary demands. Hybrid products, while they are not a cure-all, seem popular.In business, as in politics, it is necessary to have a vision without renouncing either one's principles or one's roots. The next assembly will not be just for newcomers, both ambitious and neophytes, no matter how talented they are. It will offer wide berth to women and men who have accumulated experience and know the rules of the game, but also know how to expand their horizons. The market will favor a new approach, one that makes its interest and immediate benefice top priority with respect to more egocentric financial strategies.


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