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Two out of ten hotels in Germany plan renovation of guest rooms

In Germany, the focus of guest’s attention on clean and well designed hotel rooms and trendy restaurants push the investments in renovation and modernization. According to a new study of CHD Expert Group, about 20 percent of the comfort, first class and luxury hotels plan renovations within 2008. In comparison with 2007 the percentage of investment plans fall from 29 percent. The main reasons are turnover losses (3% in 2007 in the hospitality and restaurants industry) and dull sales due to the smoking ban impact on the gastronomy. But the foodservice industry continues expanding: More than 60 percent of the canteens plan investments in new kitchen equipment and FF&E for the guest areas.

“During the leading European trade fair Internorga in Hamburg, Germany, we noticed that the decision makers of important hotels and large restaurants focus on specific innovations,” Thilo Lambracht, Managing Director of CHD Expert Germany, said. About 11% of the luxury hotels and 22% of the first class hotels in Germany schedule renovations of a major part of their guest rooms and suites. And approx. 17% of the mid-sized comfort hotels map investments in their guest areas within this year. For the smaller and private managed hotels this year means a boom of investments: 45% plan processing renovations, as the study of CHD Expert results.

“For this year the investment plans are limited, because the economic outlook isn’t very encouraging,” Lambracht explains. About 20% of all scheduled renovation budgets are for up to 25 rooms. Main focus (83%) is on modernizations of bath rooms. For 60% of renovations of guest rooms the hotels aim to buy new beds and 66% new carpets.

More than 10% of the hotels plan modernizations and technical extensions of their kitchens. Over 4% are interested in new kitchen equipment, e.g. combi-steamers. 17% of the hotels want to freshen up the restaurants; 7% of them plan to purchase new furniture. 5% of the hotels want to buy new technical equipment for meeting and conference rooms.

About 50% of the hotels plan to invest in their well-being areas and SPA rooms. 11% of them are interested in new exercise equipment. 8% budget for the first time a new well-being and fitness area in their hotel. “The main trend to unique well-being and medical SPA areas progress,” Lambracht points out. The hotel specialist expect rising investments in this section.

The German hotels also plan investments in technical installations: 6% look out to WLAN systems or new hotel television systems. About 5% of the hotels budget investments in electrical installations, e.g. new lightning.

New travel technology is understated by the most of the hotels: Only 3% of the interviewed managers are ready to invest in innovative booking solutions for the websites.

The same situation is with environmental technology: Only 3% of the managers are ‘green hoteliers’ and interested in new heating systems.

Foodservice booming: More moderniziation in canteens

The foodservice industry is characterized by excessive optimism. According to a study of Synovate (‘GV Barometer’) more than 66% of the canteens expect rising turnovers for this year. Most of the planned investments focus on new cooking center, dishwashers and cash-desks. 61% of the hospital canteens budget significant investments in new cooking solutions and serving systems.

The Away-from-Home Market in Germany is still expanding. Nearly 30% of all spending for food and beverages are being spent in hotels, restaurants and canteens; this is about 1,500 Euro per consumer per year.

For the study “Hotel Investments 2008 – Renovations & Modernizations” CHD Expert Germany interviewed 317 hotel managers in Germany.