eventually ), this will impact the growth of the pipeline . This will also create opportunities in some areas .”
SEEING A SLOWDOWN “ A lot of people are worried because of all the changes ,” says 25Hours Hotels CEO Christoph Hoffmann . “ I ’ m not a specialist , but this year was the first where we saw stagnation .” It hasn ’ t affected the hospitality industry yet .
“ The Germans still spend a lot of money , you have the international traveler , and we still have very low unemployment rates . However , we have to prepare ourselves that it ’ s not going to stay as great as it used to be for the last 10 years ,” he says .
In Younes ’ opinion , the key advantage
The lobby of Novum ’ s Niu Fender hotel in Amsterdam
of Germany is its actual and perceived stability . Low interest rates continue to drive hotel investments and developments . On the demand side , there has been , and will likely continue to be , growth in tourism — a healthy indicator , he points out .
There are plenty of opportunities for Germany ’ s tourism sector to attract a more global set of travelers , Hoffmann says : One advantage is that ADR levels are not as high compared with other destinations , due to the current unwillingness of the domestic traveler to pay higher rates . Once a more global traveler emerges in the market , he points out , the country could be bold and raise its rates — leading to better returns for investors .
NOVUM EYES NEW MARKETS
Novum Hospitality owner and CEO David Etmenan ’ s father , Nader Etmenan , founded the first Novum Hotels in Hamburg in 1988 . Now , the company ’ s pipeline tops 60 hotels throughout Europe , either at the planning stage or under construction — for instance , the Niu Loco in Munich , an owned brand , is set to open in 2020 .
Its portfolio , which it aims to grow to 250 , includes 181 hotels and more than 24,000 rooms in 65 locations throughout Europe comprising 3- and 4-star hotels in central locations bearing Novum Hotels , Select Hotels , the Niu and Yggotel brands . Novum also is a franchisee of IHG , Accor , Best Western Hotels & Resorts and Choice Hotels .
“ Naturally , it has become more difficult to identify properties that can be operated sustainably as well as efficiently ” in Germany Etmenan says , partly because rents have been increasing , so the company is considering B and C locations and creative ways to implement projects .
“ Especially in Berlin , living space has become scarce and new alternatives must be found ,” Etmenan says . Novum says its Niu Hide hotel in Berlin is the world ’ s first modularly built hotel on top of a shopping center .
While Novum is looking to further consolidate and grow its portfolio within Germany , longer-term Etmenan is looking to the Americas , where he would like to role out Novum ’ s brands in core markets .
David Etmenan
March 2020 hotelsmag . com 35