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M a r k e t I N F O r M at I O N F r O M Pa N D O X – O N e O F e U r O P e ’ S L e a D I N G H O t e L P r O P e r t Y C O M Pa N I e S

Future reservation patterns 10P .

Focus on flying 10P .

Theme: social projects – interview with Staffan Olsson 8P .

S P O t L I G H t

#22012

Hotel markets characterised by uncertainty

Olympic Games in lOndOn – effects on the hotel industry

The Olympic Games in London were a sporting, national, public and organi-sational success. When looking at the impact of the event, there is reason to say

that everyone who lives and works in London was affected – and that the mega-event was probably revolutionary for the whole of Great Britain. After having personally experienced the event, it is not really strange to say that summer Olympic Games feel like the world’s greatest event.

Olympic Games are significantly more than just sport. Sure, the gigantic organisation is built up around the sports stars and their races, matches and contests, but for London the Games primarily implied an opportunity to market the city with the entire world looking on. The reason is very obvious. The attention provides a unique possibility to increase the city’s tax revenues through more visi-tors. Really large sports events also create jobs that often become permanent. The hospitality industry plays here a decisive role to be able to receive and handle large numbers of visitors by offering exciting experiences and memories that make them want to return – either to London or to another event city. The media interest was enor-mous, and it is estimated that about 22,000 jour-nalists covered the Olympic Games, of whom 160 from Sweden. More than the number of competi-tors! The media plays several roles, apart from fol-lowing the Games. Through their presence, the atmosphere is even greater and they give the com-petitors’ performance a sometimes almost magic signification. Sports stars become celebrities and today’s heroes with whom the world’s leaders, sta-tesmen and major corporate leaders want to be seen. They shine next to the heroes, and at the same time strengthen their personal profiles. It is

not uncommon that we see celebrities who openly show their feelings when competing, which provi-des a popular and relaxed style. Media reporting also emphasises the city and creates pride among the local inhabitants and a feeling of belonging – which is often difficult to find in large multicultural cities.

Olympic Games represent a mega-event, but also a marketplace for collaboration and building relations – and it works!

I believe that many people were sceptical as to how London would manage to arrange the mega-event. A very large city and long distances with old transportation networks, as well as the recruitment of staff from a pronounced class society where there are shortcomings in the service culture. But the criticism was unfounded, the transportation networks worked very well – every day. The loca-tion of the Olympic Arena Park in Stratford, north-east of central London, was a strategic success. The area was in considerable need of modernisa-tion, which enabled development with housing, a shopping centre and modern infrastructure, while simultaneously providing good surfaces for arenas and areas for strolling around. The Olympic Park contained 8–10 arenas, as well as the gigantic athletics arena where the opening and closing ceremonies were held. The Park also contained a number of restaurants, cafés and souvenir shops, a media centre where spectators could see the stars being interviewed, as well as large areas for strolling around where sportsmen and women and the public were able to mingle. Visitors came from the whole world, and all religions were represented. Women and men, young and old, many families, no hooligans, and very few intoxicated people. It was like a peace project: UN bureaucrats – please come and be inspired!

Industrial skills are important An anxious world is dampening the level of activity, which leads to lower demand in the hotel sector – and a trend that we must adapt to. Success will be linked to winning market shares and increasing the efficiency of our hotels. Financial creativity will have less significance, while industrial skills will have more!

This year’s Hotel Market Day will be about hotel architecture and design – an important subject, and speakers from across the world will be atten-ding. The date is 27 November, and this will be the 16th consecutive year that Pandox has arranged the Hotel Market Day. Just as many years as the Company is young!

Back to the Olympic Games. Sweden won a very well-earned silver medal in handball after a dramatic match. “Handball is not for those with weak nerves,” wrote Mats Olsson in one if his Olympics columns. Difficult to say otherwise. Another quote from Olsson that I would like to share is: “A handball player is subjected roughly every other minute to blows, thrashing, dirty tricks, elbowing and pure hockey tackles that would make a normal football player from La Liga and Series A to the Swedish Premier Division and Divi-sion 7 throw themselves screaming to the ground, rolling around and holding on to everything dear to them!”

“But a handball player gets up, shakes them-selves and continues.” One sometimes loves Mats Olsson!

…and soon it will be Christmas. Where did the time go?!!

With very best regards,Anders Nissen

Olympic Games in London – a mega-event!

JUSt a WOrD

Address: Pandox AB (publ) P.O. Box 15 SE-101 20 Stockholm, Sweden Tel.: +46 (0) 8 506 205 50 Fax: +46 (0) 8 506 205 70 E-mail: [email protected]

Visiting address: Vasagatan 11, 9th floor, Stockholm

Graphic design and production: Hallvarsson & Halvarsson

Photos: Ulf Blomberg, Peter Hoelstad, Shutterstock, iStockphoto et al.

Printing: TMG Sthlm, november 2012. May be reprinted only with the permission of Pandox.

Cover photo: Scandic Grand Marina, Helsinki.

Upgrade can be ordered from Pandox or read at www.pandox.se

Pandox Upgrade. Market information from Pandox – published approximately three times a year.

Editors: Anders Nissen, Marika Hilldoff, Ingrid Löwy

2 MARkET INFORMATION FROM PANDOx

NewsHOteL WOrLD

AUGUST

Hilton loses its only hotel in central Paris. Further to a dispute between Hil-ton and the property owner SIHPM, it is now apparent that Hilton will lose the four-star Hilton Arc de Triomph. The hotel has 500 rooms and is located in the exclusive 8th arrondissement just north of the Arc de Triomph. Briefly, the dispute is due to the property owner considering that Hilton has not suffi-ciently exploited the hotel’s potential. Hilton now has only three hotels in the Paris area – two airport hotels and one in the La Défense business area – all outside the city centre.

Scandic opens a new hotel in Helsinki. The new lifestyle hotel Scan-dic Paasi is located close to the recently refurbished and extended Helsinki Congress Paasitorni building. Scandic Hotels has utilised the building’s histori-cal past in the 170-room hotel. The fur-nishings relate to the building’s eventful years, as well as interesting people who have lived in the area.

IKEA will build budget hotels. The fur-niture giant is planning to build 100 low-priced hotels across Europe. The plan is to form a chain with design hotels that can compete with, for example, Ibis. The company will initially focus on the Uk, Germany, the Netherlands and Poland. According to the Financial Times, the hotels will not have IkEA in their name, nor will IkEA operate the properties.

New ABBA museum and Hotel Melody at Djurgården. At Djurgården, close to Gröna Lund and opposite Has-selbacken, a project is in progress to prepare surfaces for the Swedish Music Hall of Fame, the world’s first ABBA museum, and Hotel Melody with about 50 rooms. The museum will have two underground floors, beneath Hotel Melody. The inauguration of both the hotel and the museum is planned for the beginning of 2013. The project’s pro-perty owner, builder and general cont-ractor is Arcona. Hotel Melody will be operated by Claes Livijn, CEO of Villa källhagen.

Scandic is taking over after Hilton in Malmö. After ten years, Scandic returns to the hotel property at Triangeln in Malmö. After the New Year, the Scandic sign will replace the Hilton sign. Scandic and Vasakronan will totally refurbish the hotel, starting next year, although Scan-dic will endeavour to receive guests as soon as possible after Hilton leaves the property at the end of December this year. The hotel was previously Scandic up to 2002, when Hilton took over the operations.

OCTOBER

Clarion Bergen Airport gets 100 new rooms. Petter A. Stordalen is further-investing in Bergen, and is expanding the Clarion Hotel Bergen Airport with 100 new rooms and more conference surface. “The capacity of both the air-port and the airport hotel are insufficient and an extension is necessary so as to provide place for all those who wish to stay and meet at the airport,” says Petter A. Stordalen, owner and chair-man of Nordic Choice Hotels, who are behind the Clarion chain.

SEPTEMBER

Sveafastigheter and Midstar acquire hotels in Nyköping. Sveafastigheter and Midstar acquire the Ibis hotel in Nyköping with 96 rooms. The hotel is located next to the E4 motorway bet-ween central Nyköping and Skavsta Air-port. In November 2010, Sveafastighe-ter acquired Fund III and Midstar Accor Hotels’ Swedish operating company including 14 hotel properties. The Ibis hotel in Malmö was acquired in Febru-ary this year, and the consolidation of the hotel portfolio now continues with the acquisition of the Ibis hotel in Nykö-ping. The vendor is Home Properties.

Scandic opens new hotel in Hamburg. The new Scandic Hamburg Emporio will be a flagship hotel with 325 rooms and a conference centre in central Ham-burg. The inauguration illustrates Scandic’s focus on the Nordic region and northern Europe. The hotel has been environmentally certified and pri-zed for the sustainable building already before being opened. It will be environ-mentally certified with the EU’s Flower Label, as well as holding pole position in the German certification organ VDR, where energy and water consumption, food and beverage and social responsi-bility are appraised.

Diligentia is expanding on the Avenyn. Scandic Rubinen in Gothenburg will now be extended with 100 new hotel rooms. The property is owned by Diligentia, who have signed a new ten-year lease with Scandic. Further to the extension and refurbishment, the Scandic Rubinen will have a total of 300 hotel rooms, more conference surfaces, a new lobby, roof-top bar and a new gym. The work is expected to be completed by summer 2014. The property also aims to become a Silver-classified Green Building.

Accor expands in the United King-dom. The hotel giant Accor is expan-ding its Mercure portfolio in the Uk, and will open four new hotels in the medium-price segment in the forthcoming months. Further to the expansion, the portfolio will contain 75 hotels.

Quality Hotels in collaboration with Friends. Quality Hotels have entered into a collaboration agreement as first hotel chain with the Friends anti-bullying organisation. Construction of the new hotel started one year ago, next to the Friends Arena in Solna, Stockholm. The hotel was previously called Quality Hotel Arena and will now change name to Quality Hotel Friends. The inauguration is planned for 31 August 2013. When completed, the hotel will have 25 floors and 400 rooms.

NOVEMBER

Inauguration of Clarion Hotel Arlanda. One of Stockholm’s new airport hotels in the high-price segment will open on 1 November 2012. The hotel has 414 guest rooms, 44 meeting rooms and 3 restaurants. There is also a gym, outdoor pool on the roof terrace, as well as a steam and dry sauna. The hotel is loca-ted in the centre of Arlanda in a part of Sky City between terminals 4 and 5, and was created by Björkén Architects. Sweco Architects have monitored the development work.

MARkET INFORMATION FROM PANDOx 3

Economic indicators from the United States and the major growth countries lost momentum during the summer further to a strong begin-ning to the year. Anxiety within the global finance markets has however decreased and global economies on the whole are still growing at a relatively good pace. The euro zone howe-ver is once again on the edge of recession, and growth is expected to be weak for a long time ahead. Weak developments have negatively affected demand in the hotel sector, and no rapid change in trends is anticipated. Conside-rable differences still prevail between countries, regions and segments.

Continued stable hotel market in the US and New YorkThe American hotel market basically follows the country’s economy and is currently experiencing good trends, particularly in comparison with the euro zone. The United States have seen growth in Rev-PAR since autumn 2010, and the recovery has con-tinued into 2012 at a stable pace. RevPAR for the first three quarters rose by 7 percent compared with last year. It is primarily higher prices that are behind the growth, thanks to a stronger company segment. However, the rise slowed in the third quarter and lan-ded at 4 percent, due probably to poorer global finance markets. The short-term trend is a declining rate of growth and certain weakening is to be expec-ted. Another interesting trend is that budget hotels have started to come back after a few weak years.

As in previous years, New York’s hotel market lies slightly below the US average. Growth in Rev-PAR for the city was 5 percent for the first three quarters, and only 2 percent for the third quarter where September developed negatively compared with last year. Growth is driven by prices and occupancy equally.

Uneven hotel market in EuropeWeak economic developments within the euro zone have implied uncertainty and lower activity for the hotel sector. In general, there have been fewer guests from the PIIGS-countries and France, and even lower demand from the finance sector. An

increasingly opportunistic client pattern has become clearer – both private persons and com-panies are making reservations for hotel stays and meetings, large and small, with increasingly shorter notice. This naturally renders it more difficult for hotels to make their forecasts!

But despite the anxiety in the surrounding world, the hotel year opened relatively stable in the major European cities. The rate of growth slowed slightly after the summer, and the markets are now developing in general at a slower pace – with con-siderable differences between countries, regions and segments. For the whole of Europe, RevPAR increased by 5 percent in the first nine months compared with last year. Growth markets in Eas-tern Europe and the Baltic States have seen the strongest trends this year.

Prices have driven developments in most mar-kets, while volumes have started to subside. The markets that still have growth in volume are Berlin, Budapest, Frankfurt, Vilnius and Moscow.

LondonOutside the euro zone, the United kingdom is also

now in recession with shrinking GDP-growth for three consecutive quarters, and there is considera-ble uncertainty surrounding the economy for the future. With this backdrop, plus that the hotel mar-ket in London came from high levels of summer 2011 and that the city prior to the Olympic Games gained significant additional capacity with close to 7,000 new rooms, this year’s growth for the hotel market is considered to be stable. RevPAR increased by 3 percent in the first three quarters. May, June and July were weak months, while August broke records thanks to the Olympic Games with RevPAR increasing by as much as 44 percent, due entirely to prices. The Olympics effect was however extremely varied depending on sub-market and location in relation to the large arenas.

Berlin Disturbing signs in Germany have been noted con-cerning rising unemployment and lower order-inta-kes in the so-far strong industry sector. Berlin’s hotel market has nonetheless seen excellent trends this year, particularly compared with recent years. The average rate for a hotel room is still considera-

Slow ahead!SUBDUED GROWTH AND

UNCERTAIN FUTURE PROSPECTS

FOCUS ON tHe Market

Explanations:

RevPAR = Income per room available

[diagram A]

The figures are based on statistics from STR Global.

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-4

-2

0

2

4

6

8

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12

2011 2012

Jan

Feb

Mar

AprM

ayJu

nJu

lAug Sep Oct Nov Dec Ja

nFe

bM

arApr

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Jul

Aug Sep

Average price

Occupancy

RevPAR

%

New York, RevPAR development per month January 2011 – September 2012


-5 0 5 10 %

Paris

Boston

London

Berlin

Helsinki

Copenhagen

New York

Europe

Toronto

Stockholm

Amsterdam

Brussels

Gothenburg

Oslo

Average price

Occupancy

The figures are based on statistics from STR Global and Benchmarking Alliance.

Hotel markets, YTD September 2012 – price and occupancy

Hilton Helsinki kalastajatorppa, Finland


bly lower than most other large European cities (less than 90 euros for the city’s overall hotel mar-ket). But developments in 2012 have been good and better than expected. In the first three quar-ters, RevPAR rose by 9 percent, and just in the third quarter RevPAR increased by as much as 17 percent. These good figures can be explained by strong summer months, an unusually good mee-tings month in September, and that the hotel mar-ket in general benefited from that many travellers who had planned to fly to or from the new airport did not choose to, or could not, cancel their flights when it became known that the opening of the air-port was delayed.

The Nordic countries’ economies continue to stand out…The Nordic countries have been affected by the glo-bal turbulence, but continue to be very stable com-pared with the situation elsewhere. Norway is show-ing signs of weakness and slowing down. Sweden’s economy surprised positively in the first half-year, but clear signs of a weakening have been seen recently. Exports have fallen further to the strong krona, and unemployment is rising. Finland is also slowing strongly, particularly due to fewer exports, and growth is now the lowest within the euro zone. The situation in Denmark however is the worst among the Nordic countries, where a recession is close at hand.

…but weaker trends than anticipated in the hotel markets!As in the countries’ economic trends, the hotel markets in the major Nordic cities have seen diffe-rent developments so far this year:

The Helsinki market comes from low levels and is showing stable and good RevPAR growth, driven by higher prices. The market is benefiting from a

rise in tourism from primarily Russia (30 percent increase in 2012), the United States and Japan – and that 2012 has been a strong event-year with the ice-hockey world championships and the athle-tics European championships being held in the city.

Copenhagen has recovered well after a weak end of 2011, and is developing strongly thanks to hig-her average rates. The hotel market has also been positively affected by limited additional capacity during the year. And only a few new hotels are expected to open next year.

On the other hand, Stockholm is showing weak figures so far this year. The market lost 11 percent in RevPAR in the third quarter and as much as 17 percent just in September. The main reason is additional capacity in the market. Several new large hotels have opened since autumn 2011, and even more new hotels are to be inaugurated at the end of 2012 and next year, including Melody Hotel at Djurgården, Clarion Arlanda, Quality Hotel Friends, and Story Sundbyberg.

2012 has also been a weak congress year com-pared with both 2010 and 2011 when several major international congresses were held, which in turn led to an increase in demand for hotel rooms. Short-term trends for Stockholm are pointing towards a downturn, due particularly to lower volu-mes but also lower prices compared with last year.

Oslo is compared with strong figures from last year further to the skiing world championships in spring 2011. Like Stockholm, the market is affected by considerable additional capacity during the year. But only a few new hotels are expected to open next year and ahead. In total, the Oslo market has declined by 4 percent for the first three quarters, and short-term trends show a downturn in both price and occupancy.

RevpaR growth nordic region 2011 2012 H1 2012 yTd 2012 Q3

short- term trend

Stockholm 3% 1% –4% –11% Downturn

Oslo 2% –9% –4% –1% Downturn

Copenhagen 5% 7% 6% 2% Growth

Helsinki 6% 7% 6% 4% Growth

Source: Benchmarking Alliance (Stockholm and Oslo), STR Global (Copenhagen and Helsinki).

NOK

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Rev

PAR

RevPAR, NOK Source: Benchmarking Alliance

2007 2008 2009 2010 2011 2012

Trend

Oslo

EUR

50

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80

Rev

PAR

RevPAR, EUR Source: STR Global

2007 2008 2009 2010 2011 2012

Trend

Helsinki

DKK

350

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Rev

PAR

RevPAR, DKK Source: STR Global

2007 2008 2009 2010 2011 2012

Trend

Copenhagen

the Hotel, Brussels

SCANDINAVIAN OVERVIEW

SEK

500

600

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900

Rev

PAR

RevPAR, SEK Source: Benchmarking Alliance

2007 2008 2009 2010 2011 2012

Trend

Stockholm


Fewer tourists visited the United Kingdom and London in August this year compared with last year. But those who visited the Olympic Games and the Paralympics spent more money than the tourists the previous year.

Tourist revenues in the country have increased by 9 percent this year. According to the British Office for National Statistics (ONS), visitors to the Olympic Games and Paralympics spent nearly twice as much as other tourists!

The anticipated Olympics boom failed to appear for the hotel sector. Revenues for London hotels during the Olympics weeks increased by only 10 percent, further to slightly higher occupancy and above all higher prices. Prior to the Games, the Olympic Committee, LOGOC, had pre-reserved a large number of hotel rooms where only reservations for a long hotel stay were accepted. The strategy proved to be over-opti-mistic and thousands of empty hotel rooms were released onto the market just before the Games were to start, which led to reduced prices and

Olympic Games in London 2012 – effects on the hotel industry

that the hotels had to ignore the rules of only accepting reservations for several consecutive hotel nights.

However, the Olympics affected hotels and parts of London in different ways. The large hotels in western London around the traditional sights, museums, theatres and well-known buildings lost guests and revenues, while hotels close to the Olympic arenas in Docklands and Greenwich reported record volumes and higher prices of up to 40 percent. Regions and cities outside London, such as Liverpool and Manchester, did not howe-ver succeed to benefit from the Olympic Games as many had hoped. But in general, the results of the summer are considered to be very positive – particularly in the prevailing circumstances with around 7,000 new hotel rooms being added before the Games, that the market came from record-strong figures from summer 2011, and that the economic climate is weak in Europe.

Short-term trends for London are also show-ing stable growth. The additional capacity has been well-absorbed by demand, thanks to a grea-

ter number of visitors and tourists. RevPAR up to the end of August rose by more than 4 percent compared with last year. And just in August, pri-ces rose by as much as 44 percent compared with last year, while occupancy was at the same level. July was poorer, and RevPAR declined by 4 percent further to lower occupancy. Prices howe-ver developed strongly in July.

How did the actual Games go? The United States, particularly with their swimmers and athle-tes, won the most medals. China came second, followed by Great Britain. The British sporting results were fantastic, and their organisation of the Games was excellent. One of the highlights for the host nation was when the Scot Andy Murray won the tennis final in Wimbledon against the world’s number 1 Roger Federer. Another given climax was king Usain Bolt’s performance in athletics with three gold medals!

Sweden won a total of eight medals, of which one gold, and came 36th in the medals league. In total, 85 nations of the 204 that participated, won at least one medal.


tHeMe SOCIaL PrOJeCtS

Olsson: “To create a purposeful future for

young people is a victory in itself”

Name: Staffan OlssonAge: 48 yearsFamily: Married, 2 childrenHome: TumbaBest quality: ImpatientWorst quality: ImpatientOccupation: Employed by Pandox since 2009 as Director of Health, Sports & Coaching. National team manager for the Swedish handball team.


He has won the World Championship, European Championship, a second place in Champions League, and most recently an Olympic sil-ver medal in London. Staffan Olsson is now starting his next match together with Pandox Youth Handball Movement – a social project to provide young people in the Kenyan town of Nyeri with a better future through training, solidarity and education.

“To create a purposeful future for young people is a victory in itself,” says the national team manager of the Swedish handball team.Staffan Olsson is back in Stockholm. The handball legend has returned home after several months of preparations and hard work that in the end paid off with an Olympic silver medal in London – the best result by a Swedish national team for ten years. “It has been an extremely intensive period, but has also been a fantastic journey. To win an Olympic silver medal is completely unbelievable,” he says.

The national team manager has recently moved his focus onto the very tough qualifying matches prior to the European Champion-ships 2014, which started in November. With two matches won against Ukraine and Holland, Sweden has managed an excellent start prior to the forthcoming qualifiers next year.

But the immediate future also contains other challenges. Towards the end of the summer, it was decided that Pandox, with the help of Staffan Olsson, would intensify its development of the Pandox Youth Handball Movement.

“I have been interested in social projects for some time now, but it has not really fitted in before. But this project feels absolutely right,” says Staffan Olsson.

The Pandox Youth Handball Movement was started in November 2011 in the Kenyan town of Nyeri, north-west of the capital city of Nai-robi. The town has several slum areas where children live each day with drugs and poverty. In collaboration with the local handball club, Mount Kenya Sports Group (MSG), Pandox aims to gain the attention of young people and create a purposeful future.

“It is about young people who have got into difficult situations and have a tough life. Some of the children live in poverty and have no edu-cation or work, and live in some form of addiction,” says Olsson.

About one year ago, the activities embraced 200–400 children, and the number has now increased to more than 600 members.

But the project management at Pandox and MSG are far from satis-fied. The project will now move onto the next stage with Sweden’s most experienced handball trainer.

“I believe that we can do a really good job here. Interest in the sport and the project continues to grow,” says Staffan Olsson.

A training camp is planned for February 2013 in Nyeri, where child-ren and young people can practice handball at the same time as obtaining information and advice about relations and health issues.

Staffan Olsson will play an important role as training coach and inspirator.

“We believe that sport with a team spirit and models can create the preconditions to reach out. It is a way of creating prerequisites for young people to shape their own future.

The objective of the Pandox Youth Handball Movement is to create better future opportunities and purposeful leisure time for children and young people in the Kenyan town of Nyeri, north-west of Nairobi. The project is managed in collaboration with Partille Cup, the world’s largest and most international handball tournament for young people, and the Kenyan handball club MSG. Further information about the project and previous articles are available at www.pandox.se/foretagsansvar

… PandOx YOuth handbaLL

MOveMent

National team manager Staffan Olsson and the national handball team had a tough start at the Olympic Games in London.

After two heavy losses in the group matches (Iceland 32–33, France 23–26), the Swedish team met the European cham-pions Denmark in the quarter-final.

“We are in a disadvantageous position,” said Staffan Olsson to SVT.

The quarter-final was dramatic and was determined with only one minute left, when Niclas Ekberg thundered two balls into goal to claim a victory of 24–22. The upset became fact and the TV expert Magnus Grahn screamed out his pleasure:

“We have higher mountains, we have a better-looking queen, we can ski, and we are better at handball.”

Sweden then won against Hungary in the semi-final, and met France in the final. But the reigning champions were too strong. Sweden nonetheless pressed the super team, but lost by just 21–22, which was Sweden’s best result for ten years.

“It feels really tough after putting up an incredible fight,” said Staffan Olsson to SVT.

The national team is now looking ahead to the European Championship qualifiers, which started on 1 November against Ukraine in Lund and the Dutch team Almere on 3 November.

Results of the Olympic matches

Group matches:Sweden – Tunisia ........................................ 28 – 21Great Britain – Sweden ............................ 19 – 41Sweden – Iceland ....................................... 32 – 33Sweden – Argentina .................................. 29 – 13France – Sweden ........................................ 26 – 23

Quarter-final: Sweden – Denmark ................................... 24 – 22

Semi-final: Sweden – Hungary ..................................... 27 – 26

Final: Sweden – France ........................................ 21 – 22

OLYMPICS 2012Sweden’s road to the

SIlver achievement


Focus on flyingThe super Berlin Brandenburg airport– when will it actually open? The announcement that the planned official ope-ning date of 3 June 2012 could not be held came three weeks before the intended inauguration and traffic start-up. The reason given was that the airport’s fire-protection installations were not ready to be put into operation. The delay is of course a genuine loss of prestige for the public authorities concerned and the airport management. But it is also a significant setback for Lufthansa and Air Berlin, who have considerable plans to expand their traffic to Berlin when the city obtains a new super airport that replaces the two older ones.

According to preliminary information, the new airport was to open in August 2012. But it soon became known that it was unclear whether the systems could be ready to be put into operation for other parts of the terminal building, and the delay became worse. A new announcement was made by the airport management in May this year: the airport would open on 17 March 2013. However, after further inspection of the building problems, the date has now been set to 27 October 2013. UpGrade is following developments carefully!

Poorer flying accessibility in the Stockholm regionCompared with Helsinki and Oslo, Stockholm has relatively good availability with flights to the rest of the world. Even if Copenhagen, where SAS has its major hub, is in a better position, it is reasonably easy to fly from Stockholm to a large number of other cities across the world. Nonetheless, availa-

New times – new reservation patternsA new Swedish survey shows that an increa-sing number of guests make hotel reservations via the major booking sites, and the market for mobile applications has just started.

The HUI Research Institute has carried out a preli-minary study of reservation patterns in Sweden, where 1,000 people between 18 and 80 years old were asked how they usually reserve their hotel rooms when they travel as private individuals. Of those who frequently stay at hotels, 44 percent replied that they use sites such as Hotels.com, Expedia and Booking.com. The younger the per-son, the more common it is to use the booking sites. In the age-group 18–29 years, as many as 53 percent say that they make their reservations via various booking sites.

Remarkably, only 1–2 percent of those surveyed have used the possibility to book via applications in their mobile phone. This will probably change in the

most people reserve hotel rooms via booking sites

How do you normally reserve hotel rooms when you travel as a private individual? Total

18–29 years

30–39 years

40–55 years

56–80 years

Via the Internet through a booking site 44% 53% 41% 45% 39%

Via the hotel's or hotel chain's own site 30% 22% 36% 30% 31%

By calling directly to the hotel or hotel chain 12% 8% 10% 12% 14%

By sending an email to the hotel or hotel chain 2% 2% 1% 2% 3%

By mobile phone via apps from booking sites 1% 1% 2% 0% 0%

By mobile phone via the hotel's or hotel chain's own app or mobile site 0% 0% 0% 0% 0%

By asking a travel agent to book the hotel 2% 2% 5% 1% 4%

Do not book in advance, but go directly to the hotel (walk-in) 1% 1% 0% 0% 1%

Other 1% 0% 1% 2% 1%

Don't know / Do not book myself 6% 8% 3% 6% 6%


bility from Arlanda has fallen in the last five years while increa-sing in other Nordic capital cities. This is due partly to the American airlines such as Delta and US Airways having discontinued their flights to Atlanta and Philadelphia.

A new report from the consultancy firm Copenhagen Eco-nomics says that the Stockholm region could benefit consi-derably if Arlanda obtained ten new direct routes, particularly to long-distance destinations. The report believes that Stockholm’s accessibility by air has become poorer, which costs money both for travellers and for the region as a whole in the form of lower production.

However, it is the airlines that decide where they will open new routes. The challenge for Arlanda is quite clear further to SAS choosing to start a new direct flight to San Francisco next April – which will leave from Copenhagen, not from Stockholm.

The report believes however that the situation can change rapidly. For example, Copenhagen could have difficulty in defending its position when the new Berlin Brandenburg finally opens. This in turn could make Stockholm Arlanda more attractive for airlines.

According to new statistics from the Swedish Civil Aviation Administration, the number of movements in Swedish air-space decreased during seven consecutive months up to September 2012. Just in September alone, traffic declined in the whole country by 5 percent compared with last year. After ten months, the overall decrease in traffic is just over 2 per-cent. However, the statistics are better for Stockholm Arlanda. Air traffic to and from Arlanda up to September increased by 4 percent compared with the same period last year.

Five questions to Jan Henningsen, manager of Hotel BLOOM!, Brussels.

4 Hotel statistics for Brussels for the first nine months of 2012 were relatively weak. How do you feel about the Brussels hotel market for the forthcoming year?

Jan: My impression is that Brussels is a very stable market. We are expecting demand to be in line with targets for this year.

2 We are a bit curious, have there been any special surprises as you take up your new role as the General Manager of Hotel BLOOM!?

Jan: I was very surprised by how weak weekend demand is considering how much Brussels has to offer. There seems to be some type of festival almost every week and the city is an easy drive from the Netherlands, Germany and France plus rates are low. The same goes for how slow the summers are.

1 You have returned to Belgium after many years in the United States where you held various management positions at such well-known hotels as the Kempinski Checkers Hotel in Los Angeles, the Wyndham

Ambassador West Chicago and most recent as General Manager of The Standard West Hollywood in Los Angeles and The Standard Los Angeles Downtown. What to do you believe is the main difference with working in these different markets?

Jan: Each market has its own rhythm over a year that dictates the strategies that have to be employed to maximize the hotel’s potential. Large conventions set the tone in cities while the seasons have a huge impact on resorts. It is always important to understand the strengths and weaknesses of your own properties compared with the competition in order to target your sales efforts accor-dingly. The good news is that the same reports, such as STR etc., are used almost everywhere making it easier to understand where the market is in terms of rate and occupancy. Labor laws and union contracts vary as well but are not a huge adjustment if you work with a good team like I do at Hotel BLOOM!

What do you believe is the difference from now being a non-branded operator compared with your previous positions? What significance do you believe a brand or hotel name has for your operations?

Jan: My objective is to enhance the BLOOM! brand to become as successful as the pervious companies I have worked for. The difference is that previous positions were at hotels that had already reached a higher level of brand awareness.

Choosing a brand for a property is difficult. The advantage of choosing to run it as an independent hotel is that you can create a tailor-made product for a specific market and audience that can inspire a higher level of interest and guest loyalty since it cannot be replaced by just any other hotel room.

3

“Brussels is a very stable market”

future, and mobile websites and apps are expected to com-pete with the traditional booking sites.

The sector and employer organisation Visita is interested in the question of reservation patterns, and has ordered a broad mapping and analysis of the market – partly to see what the organisation as a whole can do and relate to the booking channels, and partly to be able to provide advice to hotels within the new sales scenario. The mapping has star-ted and is expected to be ready in the beginning of next year. UpGrade is following the results with great interest!

5 Hotel BLOOM received a top ranking from TripAdvisor last year, and was selected #13 of the Trendiest Hotels in the World. What would you say is unique about Hotel BLOOM?

Jan: A rating like this is only possible if you have a great team taking care of every aspect of the guest experience. This, combined with the well thought-out design of the property, created the enjoyable experience that made our success possible.


Street art in Hotel Bloom! When it comes to graffiti, Belgium street artist, Bue the Warrior, is in a league of his own. He is single-handedly turning the concrete jungles of Belgium into a colorful, happy, whimsical world that is inha-bited by a whole race of friendly-faced creatures. Now the artist has expressed himself creatively in the lobby of Hotel BLOOM! and the result is great!

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Diamonds are foreverAt the occasion of the 60th anniversary of Holiday Inn Hotels Group eight one-carat diamonds were left under the pillows of eight rooms somewhere in Europe. One of the diamonds was found at the Holiday Inn Brussels Airport by this lady on the picture next to GM Charles Boelen. She discove-red the diamond only the next morning! That’s what we call a good night’s sleep!

Cirque du Soleil at Crowne Plaza BrusselsThe hotel staff at Crowne Plaza Antwerpen was invited to the spectacular opening show of Cir-que du Soleil – “Corteo”– as a special thanks for all appreciated service and hospitality during their long term stay at the hotel during the sum-mer months. The show was just amazing and the Antwerp Team is now looking forward to host the next show in Antwerp again!

1 million new guests Inspired by similar urban projects and in coo-peration with experts The Hotel Berlin, Berlin has set up twenty beehives on the roof. Each beehive counts around 50,000 bees which mean the hotel now has around 1 million new guests. The hotel aim to continue the activities around the successful F&B concept ‘Sense & Season’, to focus more on seasonal and regio-nal culinary offers and to be protective of highly valuable and important bees. With hardwor-king bees on the roof, more than the annual requirement of the hotel is covered. About 15 kg of honey will be produced per month!

Great skyline view at The Hotel BrusselsThe 10 top floors of the 27 stories high building have been completely renovated and have been given a surprising elegant new identity. Guests can now fully enjoy more than 120 rooms and sui-tes, The Urban Spa & Fitness, the Panorama Lounge and eight meeting rooms on the top floors. All come with the new timeless and stylish decor, combined with fantastic skyline views of Brussels!

Grand prix at Hyatt Montreal – huge success Hyatt Regency Montreal hosted Les Prix Gémeaux annual awards in October. One thousand guests including celebrities from Quebec’s television indu-stry gathered to recognize their peers in a memo-rable evening. The awards were presented at Montreal’s Performing Arts Centre followed by a gala at the SIx Resto Lounge at the hotel.

Workout with a view! at the Hotel Brussels, the view over the city from the fitness centre is magnificent.

Party atmosphere with tV personalities at the Hyatt Montreal.

Diamond fever for happy finder at the Holiday Inn Brussels airport. Colour and fantasy at the

Hotel BLOOM! in Brussels.

Much appreciated circus art in antwerp.

New arrivals at the Hotel Berlin, Berlin.

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