Pandox Upgrade - No 3 2009 (Eng)


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Pandox Upgrade - No 3 2009 (Eng)

  1. 1. PA N D O X M A R K E T I n F o R M AT I o n F R o M P A n d o x – o n E o F T H E L E A d I n G H o T E L P R o P E R T Y C o M P A n I E S I n E U R o P E n o. 3 • 2 0 0 9 Dawn in the west? Falling stars – hotels wash away the luxury stamp
  2. 2. Market information from Pandox New Sorry… 2010 will be a weaker year for hotels than the present one. Judging by the conversations I have had around our network, many hotels seem to be budgeting for a relatively strong 2010. Some believe that the market has already bottomed out and that we will enjoy growth in RevPAR as early as the first quarter of next year. Unfortunately, this can only be regarded as pure wishful thinking rather than the result of in-depth analysis. The trend tells us something entirely different. Based on an examination of the pattern of the hotel business cycle, earnings will continue to decrease in the future, although at a slower pace. Volumes will gradually stabilise while there will continue to be extreme pressure on prices for a long time in the future. This opinion is based on August the state of the markets which are first in the business cycle, and the New York high price segment is one of these. Following a drastic decrease in RevPAR of almost 40 per cent starting in Scandic continues to grow in Oslo and signs an agreement with the third quarter of 2008, volumes are now beginning to stabilise. But RevPAR is still decreasing, Fornebu Hotell AS on operating the new hotel at Fornebustrand. The hotel, which is situated 10 minutes’ walk from the centre as prices are still declining. Pandox assesses that we still have six to eight months to go before of Oslo and which will have 300 rooms, a restaurant, spa and RevPAR bottoms out in the global metropolis. conference space for up to 1000 people, is scheduled to open In turn, this means that large cities in Europe, which are behind New York in the business during 2012. cycle, have at least one year still to go before incipient stable growth returns. Based on these analysis, we will not see any growth in RevPAR in Scandinavia in 2010. This time interval makes Elite Hotels expands in Malmö south of Sweden. The Elite Plaza, sense, as it usually takes 2½ years from top to bottom in the major hotel markets. which will have 125 rooms, will open its doors to the public on Gustav Adolfs torg in October 2010. Winners and losers Looking beyond 2010, at the top of the winner list will be hotels in markets with small shares of new In October, Hotel Karlaplan in central Stockholm will leave the capacity, those which possess high standard revenue management expertise and those which manage Choice chain and join Best Western Hotels instead. The hotel to persuade existing guests to spend more during their stays, something which usually results in is located in a property dating from 1914 that previously housed increased productivity. This is not the simplest of things to bring about! The list of hotels regarded as the Salvation Army war college. In 2005, the property was losers will grow considerably longer in the forthcoming years. Newly constructed hotels and hotels completely renovated and today offers 85 rooms in six different acquired during the top year of 2008 can count on selective marking by financing institutes. categories. Banks may play a key role and affect the structure. There are rumours that there are hundreds of hotels in the London banking system which are regarded as distressed assets. In many cases, valuations have decreased so much that equity has been completely exhausted, giving the go-ahead to banks to act as they see fit. September In the past, banks have dealt with this problem in two ways, one active and one passive. Unfortunately, the passive strategy has dominated, with banks closing their eyes and hoping that Jurys Inn Hotels opens a four-star hotel in Prague. This is Jurys’ improvements in surrounding conditions will solve their problem. The active model involves banks first hotel outside Great Britain and Ireland. The hotel offers doing what the Swedish government-owned Securum company did at the beginning of the 1990s 214 rooms and is located within walking distance of Prague’s – taking over the assets and developing them under the banks’ own auspices through professional historic old town. organisations. We hardly need point out that the latter model is the most profitable. Even though downturns in the business cycle hurt, they are nevertheless necessary. Market Starwood takes its “The Luxury Collection” brand to Moscow. fluctuations reward expertise and long-term strategies. Many players seem to be surprised by the The Hotel National, which was built in 1903, will go through downturn. And the fact that on top of that the affliction is refusing to go away immediately is being an extensive renovation, and will be completely ready for taken by many almost as a personal insult. Everyone who has spent a long time in the hotel sector re-opening by the end of 2012 with 206 rooms and 56 suites. knows just how volatile the market is. Unfortunately, memories are often short, and we quickly Many of the rooms will look out on the Kremlin and Red Square. forget how bad things were in this downturn. The Spanish hotel chain NH Hotels is Some things are normal merging with its competitor Hesperia and At the time of writing, Pandox’ Hotel Market Day is just around the corner. The flags are about to integrating Hesperia’s 51 hotels into its be raised outside the Hilton Stockholm Slussen, the guests are on their way and the speeches operations. After the merger, NH Hotels will have somewhat more than 400 hotels have been prepared. Our permanent moderator, Bengt Brodin, is dashing towards Hilton Slussen in Spain, the rest of Europe and America. with his glasses on his nose and his overhead projector under his arm – so everything is as normal here. Most welcome! Ramada opens its first hotel in Russia. The Ramada Yekaterinburg Yours truly, is located 35 kilometres from Kotsovo International airport. Anders Nissen The hotel has 132 rooms, 24 suites, a restaurant, three bars and business and fitness centres. PS. How can we ever thank him enough, now that we know Henke Larsson’s career is over. You will forever have a place in our hearts! Who can possibly forget the goal Henke headed against Bulgaria! Hilton continues its expansion in Italy. Let’s hope there is enough good sense around for Helsingborg to be renamed Henkeborg. Hilton Giardini Naxos in Sicily is undergoing comprehensive renovation at present, and will open in 2010 with 296 rooms, of which Pandox Upgrade – market information from Pandox – published approximately three times annually. 33 will be suites. Doubletree by Hilton Oblia-Sardinia is a new project with Editors: Graphic design and production: 124 rooms. It will open at the end of 2009. Anders Nissen, Annelie Sundström Aguilar Hallvarsson & Halvarsson Michaela Borg, Anette Paulsson Photo: Pandox AB Accor is selling 158 hotels. The F1 budget hotel in France Ulf Blomberg, Getty Images, Shutterstock P O Box 5364 is being sold in a sale and lease back deal to reduce the chain’s and others. SE-102 49 Stockholm liabilities. Tryck: Tel: +46 (0)8 506 205 50 Jernström Offset, Stockholm, November 2009. As part of the deal, Accor has signed a 12-year lease Fax: +46 (0)8 506 205 70 Reproduction only by permission from Pandox. agreement for the properties and will continue to run E-mail: Front cover: Pandox-owned Holiday Inn Brussels operations at all the hotels. Visiting address: Airport in Belgium. Grev Turegatan 44, Stockholm Upgrade can be ordered from Pandox or read online at 2
  3. 3. Market information from Pandox s The market on the market Funding and crisis issues from the hotel world on the agenda in London This year the European Hotel Finance and Investment Summit was held at the Hilton Park Lane in London. Two of the most important issues The Hilton is changing its logo. Hilton Palace Kämp Hotels is opening a new discussed were the difficulties financing property acquisitions and new Hotel Corporation has changed its name hotel at terminal 2 at Helsinki airport in projects within the hotel industry. And following on quite naturally from to Hilton Worldwide to better reflect its January 2010. The new hotel will be this, the question arose of just how far we are from recovery. global presence. A new logo is also being designed in accordance with Palace launched together with the new name, Kämp Hotels’ lifestyle concept and aims The seminar, which was held for the ninth year in a row, began with an in-depth and is intended to reflect the company’s to attract both business travellers and analysis by the Bank of America Merrill Lynch, which pointed to a certain quality, dedication holidaymakers. brightening on the western horizon. The housing market has started to recover to excellence of in the USA and the number of notices to quit is decreasing. Saving is still service and its InterContinental Hotels Group is plan- increasing but at a far slower rate. On the other hand, the bank, which dynamic vision of ning to open yet another Indigo hotel believes consumption will increase somewhat in 2010 compared with 2009, the future. in England. The third Indigo hotel will assesses that Europe will recover more quickly than the USA, as prior to the open in central Liverpool in 2011, and downturn, the economies of most European countries were relatively well Arora International Hotels has entered a will have 151 rooms. balanced. Moreover, the bank also assesses that Germany will be the driving joint venture with Whitbread to build four new Premier Inn Hotels. The four hotels force behind the European recovery. On the other hand, Great Britain will Accor is opening a new will have a total of 1570 rooms and will find recovery somewhat more problematical because of high inflationary hotel in London under open in stages starting in the autumn of pressure in the economy stemming from the weakening of the pound sterling. its new “All Seasons 2011. A 400-room hotel will open at This is likely to force the Bank of England to raise interest rates as early as Hotels” brand. It will Heathrow terminal 5, a 240-room hotel have 105 rooms. The the spring of 2010. will open at Heathrow terminal 4, there will hotel will be named All Seasons London be a 630-room hotel at Gatwick north ter- Southwark Rose and will be located Strategy in a downturn minal and a 300-room hotel at Stansted. close to London Bridge. Through this Later on the first day of the seminar, there was a panel discussion about how to brand, Accors is aiming to recreate react to the downturn when running a hotel business. Paul White, who is CEO The InterContinental Hotels Group is plan- service and value. The idea is for it to of the five-star hotel chain Orient-Express Hotels, pointed out a number of ning to open its next Indigo hotel in Europe be an intermediate class brand. aspects which they had been working on. These above all concerned the extra in Glasgow. The hotel will be situated on a sources of earnings that could be added to the services on offer and reviewing former office complex on Waterloo Street in Elite Hotels are opening a new hotel the menus of the various hotels. Reducing menus by 1–2 dishes may enable Glasgow’s international financial district. in central Stockholm. The property at a hotel to reduce its kitchen staff. Moreover, Orient-Express Hotels is very much The hotel is scheduled to open in the spring Rotundan 3 on the corner of Linné- committed to providing that little extra when guests arrive and depart, such as of 2011, and will have 96 rooms. gatan and Sturegatan will be converted a free welcome drink or a coffee prior to departure – anything to increase to a hotel, which will be named the guests’ feelings of wellbeing, something which they seemed to have succeeded Rezidor is closing the Radisson Blu Hotel Elite Eden Park Hotel. It will have in doing. They state that 60 per cent of all guests are coming back. at Fredrikstad in Norway. Radisson 132 rooms, an Asian restaurant and an All the panel participants agreed that the technique of working through the has been operating the complex since English pub under The Bishop’s Arms internet with individual hotel websites and through Expedia and other websites February 2007, but has now decided to brand. The hotel is scheduled to open is making it easier to quickly circulate the various offers, and this is improving terminate the contract on the property in October 2010. the opportunities for a quicker recovery than was the case during previous with its 172 hotel rooms. crises in the industry. Scandic are opening on Vasagatan in Stockholm. The new hotel will take over distressed assets a classic site. Vasagatan was given its Next there was a funding panel whose participants included Rod Taylor from October name during Stockholm’s major name Europe Arab Bank and Barbara J Levi from Caylon. The panel discussed review in 1885, and the building now In October, the InterContinental Hotels opportunities for borrowing during the current situation. They all agreed being converted into a hotel is 130 Group is opening a new Holiday Inn strongly that there are definitely opportunities around, but that LTV is consider- years old. Construction has already Express in central Hamburg at Lübecker ably lower today than it was one year ago. Long-term sustainable solutions started, and the hotel will have approx- Straße 101. The hotel offers 179 rooms imately 400 rooms and is scheduled to are needed. Moreover, there was general agreement that banks prefer to with Express’ new bedroom design. open in the autumn of 2011. work with their existing customers during their loan crises rather than release distressed assets into the market, thereby resulting in large impairment write- Omena hotels from Finland opens a hotel in downs instead. This would seem to indicate that perhaps fewer distressed Rica Hotels plan Copenhagen. The Apple First International to open a new assets are coming onto the market than some people had hoped for. Hotel will open in June 2010 close to Tivoli hotel in Trond- and the Ströget shopping street, and will heim. Bakke The European hotel property market have some 230 rooms. Omena hotels has multi-storey car Jon Hubbard from Jones Lang LaSalle took stock of the European market signed a lease agreement with the Norwe- park will be converted to a 172-room up until 2009. He ascertained that there had been extremely few transactions, gian hotel investor Norgani Hotels. The hotel. It is intended to be an energy and this above all was the result of difficulties in obtaining loans and the hotel will operate with minimum service. efficient hotel with energy consumption declining profits on hotel operations. Assessing property values is not easy. around 120 kWh per square metre. Major price adjustments in the property market as a whole – at places as Russia’s sixth largest town Samara is to much as 40 per cent lower than the peak years – rub off on the value of hotel have its own Hilton Garden Inn. The hotel Choice is taking over Hotel G in property. There are major differences between the purchase prices buyers will have 195 rooms and is expected to Copenhagen from 1 December 2009. and sellers are willing to accept. open some time in 2012. This will be the This will be the seventh Comfort hotel Up until August 2009, turnover in hotel property in Europe were around second Hilton Garden Inn in Russia, where in Denmark with 82 rooms, of which 1.7 billion euros compared with the peak years of 2006 and 2007, when turn- there is already one in the city of Perm. two are suites. over was between 22 and 23 billion euros. And even then, purchases in 2009 above all stemmed from institutional investors and hotel operators. 3
  4. 4. Market information from Pandox Focus on the sector Things are lightening in the west – but how far away is the dawn? Some things are looking brighter in the west. The first indication that the hotel business cycle has started to turn is usually an increase in demand in the high price segment in New York. This was what happened at the latter end of the summer. The question now is how long the rest of the hotel world will have to wait for a change in the trend in their own markets. Will the delay be the same as during previous business cycles or can we hope for a faster recovery this time? The US During the third quarter, the speed of the drop in RevPAR in New York Up until the end of September, the American market saw occupancy decrease decreased, although from a high level. The change in RevPAR for the quarter by 10 per cent compared with the same period in 2008, and occupancy was minus 28 per cent, most of which stemmed from lower prices. remained at 57 per cent. The average price for the period dropped to USD 98, If one looks at developments within various segments in the US, the luxury equivalent to a decrease of nine per cent compared with previous years. This segment suffered the worst drop until the end of last September with RevPAR resulted in an 18 per cent decrease in RevPAR for the whole of the US up to the coming in 27 per cent down, followed by the resort segment with a decrease end of last September. of just over 20 per cent. New York is the market placed first in the business cycle and the one which Market developments are affecting the number of new hotel projects. In the was hardest hit by the downturn. Occupancy decreased by eight per cent, while period up until last September, the number of new hotel rooms planned in the prices dropped by 25 per cent up until the end of last September. The drop American market decreased by 31 per cent compared with the same period in in RevPAR compared with the same period last year amounted to 31 per cent. 2008. Hotel rooms in the budget segment are decreasing most – at more than Occupancy ended up at 76 per cent and the average price was USD 201. 50 per cent. A closer study of the third quarter in the US shows that the rate of the decline is beginning to slow a little. RevPAR sank by 17 per cent compared with Europe the same quarter last year. Prices suffered a decrease of 10 per cent, while London is one of the large European cities to have best withstood the downturn. occupancy for the quarter dropped by eight per cent. We see the same trend Up until last September, RevPAR had only decreased by six per cent, and the in some of the largest US cities. whole decline stemmed from lower room prices. Average prices have been 4
  5. 5. Market information from Pandox Is the dawn coming – and is it only temporary? under pressure and decreased by seven per cent to GBP 123 up until last Eastern Europe is now showing even poorer figures. Riga is one of the cities December. Occupation in London during the period ended up at 81 per cent, which suffered the severest hotel climate up until the end of September 2009 which is in line with the same period the previous year, with the result that with RevPAR dropping 40 per cent, attributable to lower prices and decreased RevPAR finished at GBP 100. During the third quarter in London, figures show occupancy in roughly equal parts. Prague and Warsaw occupy two of the prices had come under additional pressure. RevPAR for the period decreased bottom places with declines in RevPAR for the period of 31 and 30 per cent by nine per cent compared with 2008. respectively. Berlin ended up with 68 per cent occupancy for the period up until last September, which is two per cent lower than the same period in 2008. Average Scandinavia prices were EUR 81, which was eight per cent less than in 2008. RevPAR in The global downturn is also affecting Scandinavia. Worst hit is Copenhagen, Berlin finished at just under EUR 55 for the period, which was equivalent to followed closely by Helsinki. Until the end of last September, RevPAR had a decline of 10 per cent. Third quarter figures for Berlin show a provisional dropped by 20 and 17 per cent respectively compared with the previous year. recovery. Here RevPAR decreased by five per cent as a result of lower prices. Copenhagen had lost nine per cent occupancy with an average of 64 per cent Prices during the quarter dropped by five per cent. for the period. The price decreased by 12 per cent to DKK 817, which resulted The pattern is the same for other major German cities with two-figure in RevPAR of DKK 519 for the period. Helsinki lost 10 per cent occupancy, and decreases in RevPAR in most cities for the January-September period. the price declined by eight per cent to EUR 101. There was a marginal decrease Hamburg is one of the few exceptions, and so far has withstood the crisis better in the rate of decline during the third quarter. with a decrease in RevPAR of seven per cent up until last September. Stockholm and Oslo both ended up with drops of 12 per cent for the period Paris had a tough time in the spring of 2009, but recovered somewhat during up until last September. the summer season. Occupancy up until last September dropped by six per cent compared with the same period in 2008, ending up at 74 per cent. Prices Regional cities and towns in Sweden have declined by 11 per cent and the average price is now EUR 217 compared Cities and towns in the Swedish regions were in step with general developments. with EUR 243 last year. RevPAR up until last September was EUR 160, which Gothenburg went from occupancy of 68 per cent up until September 2008 to corresponds to a drop of 16 per cent. The third quarter of 2009 shows the 63 per cent in 2009. So far average prices have stood up well, and thus the downturn slowing somewhat with a change in RevPAR of 11 per cent. Above all major part of the decrease in RevPAR must be ascribed to lower occupancy. room prices are pressing RevPAR down. Thus far, Umeå has managed to avoid the downturn. RevPAR up to last For the whole period up until last September, prices, occupancy and September increased by four per cent. The whole of the increase in RevPAR RevPAR in Brussels were all under pressure, and ended the period 18 per cent may be ascribed to an increase in occupancy from 53 per cent up until down, due in equal parts to decreasing prices and occupancy. The downturn September 2008 to 55 per cent at the end of September 2009. continued during the third quarter taken separately. RevPAR ended up 20 per cent down compared with 2008. RevPAR = Revenue per available room. YTD = Year-to-date. RevPAR development YTD 2009 RevPAR development third quarter 2009 City occupancy % Average rate % RevPAR % occupancy % Average rate % RevPAR % New York –8 –25 –31 –4 –25 –28 London 0 –7 –6 2 –11 –9 Paris –6 –11 –16 –1 –11 –11 Brussels –8 –10 –18 –8 –13 –20 Berlin –2 –8 –10 1 –5 –5 Copenhagen –9 –12 –20 –4 –17 –20 Stockholm –4 –8 –12 –1 –12 –13 Oslo –8 –4 –12 –6 –7 –12 Sources: STR Global, SCB, Statistics Norway and Statistics Finland 5
  6. 6. Market information from Pandox Pandox market barometer September 2009 The market barometer shows where selected cities lie in the business cycle. business cycle, progress in the hotel market and how well developed and liquid Assessment is based on analyses of each location. Allowance is made for the hotel property market is. Note that hotel business cycles are similar in macroeconomic developments, developments within the hotel industry, the pattern but different in time. dEFInInG THE VARIoUS FACETS oF THE HoTEL BUSInESS CYCLE: GRoWTH Occupancy is rising relatively rapidly and prices are starting to rise. High doWnTURn dECREASInG decreasing volumes becoming more stable – continued potential and low risk. pressure on prices. Some potential and high risk. PEAK Occupancy rising/levelling off and prices increasing rapidly. Good potential and LEVELLInG oFF Occupancy rising with unchanged prices. High potential and low risk gradually rising to high risk. decreasing risk. doWnTURn Occupancy and prices decreasing due to lower demand or overcapacity. Low potential and high risk. sweDeN PeAK DecliNe Umeå and Jönköping Malmö, Lund, Helsingborg, Gothenburg, Stockholm, Stockholm 5*, Karlstad, Uppsala, Sundsvall and Luleå GROwTH weAKeNiNG DecliNe level OuT Comments – Sweden By far the majority of major Swedish towns and cities are in the lower half of the main reason being that occupancy is still rising a little while average prices are business cycle curve, with Stockholm 5* seeing the steepest declining trend. approximately the same as during the corresponding period last year. Overall, During the last rolling twelve months up to the end of September 2009, RevPAR this is resulting in RevPAR continuing to rise. dropped by 12 per cent, most of the decline being attributable to pressure on Turning to a shorter trend over the rolling three months from July to September, prices. This is followed by the Municipalities of Stockholm and Gothenburg, we see the downturn in most towns and cities temporarily slowing during the where RevPAR decreased by 11 and seven per cent respectively. Other towns summer. During the period, both Karlstad and Sundsvall saw RevPAR grow and cities have also passed the peak and in most cases both occupancy and compared with the same period last year. In Karlstad this is entirely the result of prices are decreasing. increased occupancy, while RevPAR growth in Sundsvall may be ascribed to However, there are exceptions: Umeå and Jönköping are the large towns higher prices. which over the rolling twelve months are still on the peak side of the curve, the Source: SCB iNTeRNATiONAl mARKeT PeAK DecliNe Helsinki, Oslo, Copenhagen, Berlin, Amsterdam, Brussels, London, Paris, Vienna, Prague GROwTH weAKeNiNG DecliNe level OuT Comments – International Market All major European cities are suffering downturns. Looking at trends over the withstood the crisis so far with a decrease in RevPAR of eight per cent for the rolling twelve months on average up to the end of September 2009, Prague 12-month period, entirely as a result of lower prices. and Vienna are suffering the largest decreases in RevPAR at minus 30 and Turning to the shorter-term trend over the three months from July to September, 23 per cent respectively, most of which is due to declining prices. Paris and the picture is somewhat different. Berlin then suffered a five per cent decrease in Amsterdam are not far behind with decreases in RevPAR of 20 and 21 per cent RevPAR followed by London with a decrease of nine per cent. The worst hit city respectively during the period. In Paris the decrease is above all due to pressure during this period was Prague with a 31 per cent decrease in RevPAR compared on prices, while in Amsterdam the blame may be spread equally between with the same period last year. This decline in RevPAR may mainly be attributed pressure on prices and lower occupancy. London is the city which has best to lower prices. Sources: STR Global, Statistics Norway and Statistics Finland 6
  7. 7. Market information from Pandox Trends over time Falling stars – hotels wash away the luxury stamp The utility of hotel classification has declined in importance, and the Flexible star rating recession is causing hotels to seek to reduce the value of the certification Among those which seem not to bother about customer loyalty are the system even more. The hotels which normally raise their star flags highest five-star hotels. Major companies such as Hilton, InterContinental and – the five-star hotels – are now the ones trying to play down their status. Starwood have removed a star in their pursuit of lower costs. With a star One star more or less, does it make a difference? less they can reduce their levels of service, and also remove more physically related costs. Morning newspaper deliveries to rooms and In Sweden, Sveriges Hotell- & Restaurangföretagare (SHR) is responsible for welcome presents can be discontinued. Less obvious measures such hotel classification. In the US and Great Britain, it is the American Automobile as reducing pool temperatures by a degree or reducing the breakfast Association (AAA) and British Automobile Association (AA) which evaluate buffet choice a little can help hotels. and assign stars to hotels. Different countries have different systems. More- What do customers have to say? And what kind of impression does over, certain internet booking sites apply their own more or less acceptable this produce? A luxury hotel which turns down service levels at will certification systems. How can customers evaluate all the information? The in order to save money. Is that a way to promote loyal customers? Jurys Inn hotel chain carried out a survey of 5000 guests, which showed Or new customers perhaps? It has never been cheaper to stay at a that eight out of ten do not make use of the star system when selecting hotel. luxury hotel. But what is difficult is retaining these customers once Old-fashioned or not, the industry still clings tightly to the system. the business cycle turns and hotels wish to charge full prices again. All hotels regardless of classification are suffering from the downturn. And there is a risk of slower recovery when the business cycle turns. However, budget and economy hotels tend to stand up better to recessions, since customers choose less Image costs expensive alternatives when times are bad. Luxury and On the other hand, one hotel company which is five-star hotels are the most volatile and hardest hit. endeavouring to maintain its standards is the Four Seasons. Operators are struggling with owners who The hunt for lower costs wish to downgrade hotels in order to save money. High price or not, hotels today are doing everything to The iconic hotel chain has a high degree of integrity, cut back costs while trying to maintain occupancy. and shields its image more than the owners would Many are reducing their average prices in pursuit of like. The hotel chain spells out your child’s name the declining demand. On the other hand, Stephen in the room with chocolates, it has oranges from Joyce, chief executive of Choice Hotels, is trying to Valencia in the water containers in the gym and convince the chain’s franchisees that lower prices do treats all its guests as though they were royalty. not promote demand but they do promote lower earn- Staying at the Four Seasons must be something out- ings. Instead, hotels need to be more proactive and of-the-ordinary. Even after the terrorist attacks of creative in their pursuit of customers. People do not September 11, 2001, the company refused to stop travelling, but they do become more selective. reduce its prices, as this could undermine its brand. Hotel companies have a tendency to ease brand They are sticking stubbornly to their traditions. standards when times are hard, and be more discrim- Who is doing the right thing and who the wrong? inating when investing. However, rather than ease Only time will show. Or in the words of Warren Buffett, standards when times are hard, hotels should main- Photo: Saylor, Durston “Only when the tide goes out do you discover who’s tain or even upgrade their products to safeguard Four Seasons Hotel New York will not lower its been swimming naked.” customer loyalty. standard. DiD yOu KNOw THAT… Sundry facts from various corners of the hotel world … you can now stay at the only … you can now sleep eco correctly anywhere seven-star hotel in the world?! in the world? In his new guide book “Eco hotels The luxury of the Burj al Arab of the world”, author Alex Conti proposes in Dubai surpasses one’s one hundred eco hotels throughout the world. wildest dreams, the service You can also find more information about eco cannot be described and hotel hotels at the following website: security is superlative. There are only suites, the smallest of 170 square metres and the largest all of 780 square … First Hotels is the first hotel chain in Scandinavia metres! Naturally, butler service to join Global Compact? Under the Global Compact, is standard. Room costs per the chain undertakes to carry out all work in accor- day start at SEK 7000 per dance with UN principles for human rights, working person, but you can find suites conditions, the environment and the combating for up to SEK 130,000 per day. of corruption. 7
  8. 8. Market information from Pandox News from the Pandox sphere Angela Merkel’s government Radisson SAS is gradually changing to Radisson BLU at Hotel Berlin, Berlin The change in name involves a small graphic modification which draws a On 26 October, Germany’s natural line under Radisson’s links with the SAS group, and the chain is now coalition government under the gradually changing the names of its hotels. One hotel which has already leadership of Angela Merkel changed name is Radisson BLU Arlandia Hotel outside Stockholm. In presented its new coalition conjunction with the hotel’s theme month for responsible business, its sales accord at Hotel Berlin, Berlin. manager Johanna Wessman-Fresnel recently travelled to Russia to hand There was a massive press over winter clothing to a children’s home in Saint Petersburg. An extremely presence – both the German nice gesture! press and major elements of the international press attended. Cornelia Kausch, manageress of Hotel Berlin, Berlin welcomed German Federal Chancellor Yet another hotel which has Angela Merkel. already changed name is the Radisson BLU Hotel in Basel. In September, the hotel held Touch of France at the newly renovated InterContinental in Montreal an opening party for 700 guests The InterContinental in Montreal has recently undergone a major and to celebrate the completion The newly renovated Filini restaurant at the successful renovation. The hotel, which is close to the Old City and the of renovation and rebuiling Radisson BLU Hotel in Basel, Switzerland. large “Palais des Congrès” exhibition hall, threw a large inauguration work. The lobby, conference party for more than 400 people. The new theme at the whole hotel is rooms and 60 hotel rooms have been renovated with a modern, luxurious pervaded by a touch of France – in other words, the Moulin Rouge design. The hotel’s new bar and restaurant Filini opened this summer and theme has checked in to stay at the Pandox-owned hotel! serves classic Italian food. The décor is modern, robust and Italian-inspired. Jazz evenings at the Scandic in Antwerp Renovation of Scandic Järva Krog The hotel, which recently renovated its meeting The hotel has recently renovated all the facilities, has embarked upon collaboration with bathrooms on four floors and its à la carte US Jazz Club in Antwerp. On the first Thursday of restaurant and bar. Welcome along! every month, Belgium’s leading jazz musicians along with such legendary figures as Clark Terry, Johnny Griffin and more will play at the Scandic in Antwerp, while guests can take a drink in the bar or enjoy a delicious evening meal. Copyright: Agentur Bagenz Female networking at Hotel Berlin, Berlin In October, a network meeting for women was held with leading executives from the whole of Germany at Hotel Berlin, Berlin. More than 100 women from various sectors such as Restaurant SmoodS at Hotel BLOOM! Eat and and feel well at Crowne Plaza’s health, fitness, spa, cosmetics and the hotel new breakfast room! SmoodS’ new website! industry participated in a variety of workshops Crowne Plaza Brussels City Centre – Restaurant SmoodS at Hotel BLOOM! in Brussels and listened to a large number of speakers. “Le Palace” – has renovated the whole of its now has an updated website – take a look at There was one session which was particularly breakfast room and at the same time it now popular; “How to communicate with men”. serves a new breakfast buffet. The décor is light and bright and the breakfast consists of fruit and vegetables, vegetarian wok and chicken wings instead of the traditional menu of sausage, bacon and egg. A healthy breakfast is a good start, and their new motto “Eat well! Feel well!” has been well received by guests. Art in the pool at the Clarion in Östersund The Clarion Hotel Grand in Östersund is doing something different and providing a new experience for visitors to the hotel swimming pool and relaxation department. A ceiling mounted projector with timer is projecting a series of images on the white pool walls – a highly appreciated and relaxing innovation! 8