New Models in Hotel Development
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Meininger Hotels, a leader in the hybrid hotel market since its founding in 1999, operates 30 sites across Europe, offering modern accommodations aimed primarily at educational groups while appealing to a broader market. The company is expanding rapidly, planning to increase its portfolio to 34,000 beds internationally by 2024, with new developments in the USA and other international locations. The unique hybrid model combines elements of hostels and budget hotels, featuring flexible room configurations and communal spaces to cater to diverse guest needs.
New Models in Hotel Development
- 1. Architecture Today: New Models in Hotel development Hybrid Hotels- MEININGER 27 November 2019
- 2. Agenda • Overview • The Hybrid Hotel Model • The Meininger Strategy • Design considerations • Location strategy
- 3. OVERVIEW
- 4. INTRODUCTION TO MEININGER HOTELS • Founded in 1999 in Berlin, today MEININGER Hotels is a key player in the hybrid hotel market, with 30 operating leasehold and management sites and 16.770 beds across 18 European cities • Each of the hotels reflect the unique MEININGER concept, offering a modern and youthful design-led environment with a number of ancillary facilities and common areas, sold on a per bed basis • Although the core target customers remain educational groups, the modern appeal of the offering drives growth in the market by penetrating other customer segments • MEININGER has grown continuously over the past 15 years, generating revenue of €88million in FY18 • Having laid the foundation for further expansion over recent years, MEININGER has a further 15 hotels currently in various stages of development and is planning further openings globally, including market entry in the USA and elsewhere next year. The group plans to operate a total of 34,000 beds internationally by 2024.
- 5. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 HISTORY MEININGER has established itself as the market leader in the hybrid hotel market since it was acquired in 2012 with rapid growth HBR acquires 50% stake in MEININGER Openings(Rooms) 1021 1548 Year 1923 2093 2127 2127 2127 2810 3652 3977 Frankfurt/Main Convention Center Salzburg City Center Berlin Mitte Humboldthaus Vienna Franz Vienna Sissi Cox & Kings acquires HBR Frankfurt/Main Airport Berlin Airport Amsterdam HBR acquires additional 24% in MEININGER Brussels HBR acquires additional 26% in MEININGER New deals: § Amsterdam § Paris New deals: § Berlin § Rome § Budapest New deals: § Leipzig § Heidelberg § Milan § Zurich § Brussels § St.Petersburg New deals: § Milan § Lyon § Geneva § Bordeaux § Dresden New deals: § Innsbruck § Washington D.C. § Reykjavik Copenhagen Extension Amsterdam II Leipzig Berlin Milan Garibaldi Amsterdam Amstel Rome St.Petersburg Milan Lambrate Berlin Tiergarten Budapest Great Market Hall Munich Olympiapark Heidelberg Brussels Gare du Midi Paris Lyon New deals: § Bremen § Stuttgart § Marseille § Cologne § Manchester § Liverpool § Warsaw § Tel Aviv
- 6. GROWTH OF THE PORTFOLIO AND REVENUE 1.021 1.548 1.923 2.093 2.127 2.127 2.539 2.997 4.665 3.707 5.149 6.371 6.885 7.023 7.023 8.755 10.489 16.770 0 10 20 30 40 50 60 70 80 90 100 0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Number of rooms / beds Turnover € m
- 7. EXISTING PORTFOLIO OF HOTELS Site Locations Country Opened Rooms Beds Munich City Center Germany 2004 94 394 London Hyde Park UK 2006 48 262 Vienna City Center Austria 2007 68 253 Berlin Alexanderplatz Germany 2008 90 328 Hamburg City Center Germany 2009 116 423 Berlin Central Station Germany 2009 296 820 Frankfurt/Main CC Germany 2010 164 389 Salzburg City Center Austria 2011 101 362 Berlin Mitte “Humboldthaus” Germany 2011 118 430 Vienna Downtown “Franz” Austria 2011 131 487 Vienna Downtown “Sissi” Austria 2011 102 294 Frankfurt/Main Airport Germany 2012 168 418 Berlin Airport Germany 2012 156 357 Amsterdam City West Netherlands 2012 321 1.177 Brussels City Center Belgium 2013 170 727 Site Locations Country Opened Rooms Beds Copenhagen Denmark 2017 228 879 Leipzig Germany 2017 126 404 Berlin East Side Gallery Germany 2017 245 834 Milan Garibaldi Italy 2017 80 268 Amsterdam Amstel Netherlands 2018 185 803 Rome Italy 2018 118 367 St. Petersburg Nikolsky Russia 2018 158 557 Milan Lambrate Italy 2018 131 475 Berlin Tiergarten Germany 2018 238 847 Budapest Great Market Hall Hungary 2019 184 751 Munich Olympiapark Germany 2019 172 822 Heidelberg Germany 2019 100 331 Brussels Gare du Midi Belgium 2019 170 678 Paris Porte de Vincennes France 2019 249 946 Lyon Centre Berthelot France 2019 169 590 Total capacities 4.665 16.770
- 8. LOCATIONS OF THE PORTFOLIO AND PIPELINE Existing Locations by Country Additional Deals Signed by Country Country No. of hotels Germany 13 Austria 4 Italy 3 Netherlands 2 UK 1 Belgium 2 Denmark 1 Russia 1 Hungary 1 France 2 Total 30 Country No. of hotels Germany 4 France 2 Switzerland 2 Austria 1 Iceland 1 USA 1 UK 2 Poland 1 Israel 1 Total 15
- 10. THE HYBRID MODEL Hostels Meininger Budget hotels Basic furnishings 3-star 2-3 star Booked by bed Booked by bed & room Booked by room Shared facilities En-suite bathrooms En-suite bathrooms Guest kitchen Guest kitchen - Breakfast room Breakfast room Restaurant/Breakfast rooms Celebration FITs (backpackers) Celebration FITs (backpackers) Celebration leisure guests - Families Families Celebration groups Celebration groups - Education groups Education groups - - Business travellers Business travellers Games zone Games zone
- 11. THE HYBRID MODEL • Since MEININGER opened its first property it has become the leading budget hotel offering multiple room types. • The accommodation ranges from classic private double, twin or multiple bed rooms to shared hostel style dorm rooms with multiple beds. • The hotels also feature designer budget quality public areas and furnishings combined with exceptionally friendly service. • The properties are well located near public transport centers. • The flexible room concept enables MEININGER to uniquely combine markets traditionally used by hostels such as school groups, backpackers, flashpackers with the family and business travel guest. • Each hotel is designed according to an individual theme and has an individual personality. This mixture gives rise to the MEININGER spirit: from the lounge to the guest kitchen, and from the game zone to the bar – living, leisure, work, and home ... every thing is possible here!
- 12. THE HYBRID MODEL
- 13. CONNECTIONS COMMUNAL SPACES • Spacious communal areas for groups of guests to relax and unwind, which can also be utilised as ad-hoc meeting spaces for business travellers • Gaming rooms with pool tables / table football • Each MEININGER hotel provides an F&B offering: • fresh buffet breakfast and speciality coffees served daily from 6.30am till 10.30am • a bar that serves cocktails and drinks to capture a high share of guests' F&B spend • Well-equipped guest kitchens that offer the opportunity to cook a meal whilst socialising MEININGER's hybrid hotel concept offers outstanding quality across its portfolio, with each site tailored to the local market
- 14. BEST-IN-CLASS PRODUCT OFFERING ROOMS • Modern rooms with quality furnishings – single and double bed rooms for couples as well as individuals and business travellers – quad rooms (variations of twin and bunk beds) for families and small groups – unisex and mixed sex dormitories • 24-hour reception and on-site laundry facilities • Flexible bed and room structures enabling MEININGER to maximise revenue potential in each target market by selling per bed • Bedding and towels provided free-of-charge • En-suite bathrooms across all room types
- 15. STRATEGY
- 17. CENTRALISED TASKS AT HEADQUARTERS MEININGER’s headquarters is a service provider for its hotels. This centralized headquarters structure enables MEININGER to optimise development costs as well as ensure efficient operations. It supports all administrative processes such as • Sales & Marketing • Revenue Management • Reservations • Finance • Human Resource Management • in-house design & preopening team who are able to compile technical feasibility studies. DEPARTMENTS Human Resources Finance Preopening Expansion Facility Management IT Reservations Revenue Revenue Marketing Sales
- 19. GH RETURNS TO INVESTORS INVESTOR FRIENDLY MODEL GENERATING INDUSTRY LEADING RETURNS • Demand: High demand from both traditional hotel and hostel guests • Low volatility: MEININGER gets strong demand from the budget leisure, business and education markets, which are resiliant in times of economic downturns • Flexibility for conversions: The MEININGER concept allows for ease of conversion of existing buildings • Efficiency: Efficient use of space combined with low energy requirements • Return on investment: Industry leading returns on investment due to efficient use of space and high profitability MEININGER has established relationships with leading pan-European hotel investors, who are keen to support MEININGERʻs growth
- 21. TYPICAL SITE SPECIFICATIONS Key specifications that MEININGER seeks in new properties for refurbishment and development ü Central/city centre locations ü Excellent transport connections ü 3,500m² to 10,000m² gross area ü New build, converted hotel or office buildings ü No special requirements regarding visibility ü Flexibility of room sizes and layout ü Integration in mixed-used concepts possible, access also from the 1st or 2nd floor SITE SPECIFICATIONS Due to its wealth of experience and significant flexibility around its concept, the MEININGER team is able to use a wide variety of sites for conversion … … all reflecting the unique MEININGER quality and atmosphere following their refurbishment
- 22. MINIMUM AREA REQUIREMENTS Sample calculation is based on a hotel size of 150 rooms and 450 beds • Double/Twin bed 15.5 sqm* • Double/Twin bed + Sofa bed 18.5 sqm* • Double/Twin bed + Bunk bed 18.5 sqm* • Double/Twin bed + 2 Bunk bed 31 sqm* *subject to local building regulations
- 23. SITE EXECUTION 7. Handing over to operations CONVERSION PROCESS AND EXECUTION • MEININGER's Operations team will start the sales and operational processes approximately 12–18 months before the opening of the hotel • On average for a greenfield site it takes 2–3 years from signing a deal to opening a new hotel • For an office conversion it is typically 12–18 months, and is even shorter for an existing hotel conversion • The opening process of a MEININGER hotel usually includes eight project phases as detailed below PROCESS FLOW CHART (TIME TO OPENING) 2. Interior design planning 4. Ordering 1. Contract negotiations 3. Mock up room 5. Handing over of property 6. Setting-up phase 2–2.5 yrs 3–4 mnths 0–2 mnths 2–3 yrs 0.5 yrs 2–3 mnths 4–5 days Administration/Authorities opening 8. Maintenance/ warranty management 4–5 days 0–2 mnths 2–3 mnths 3–4 mnths 0.5 yrs 8 mnths–1 yr 1–1.5 yrs Greenfield Conversion
- 25. LOCATION STRATEGY TARGET MARKET SELECTION Based on the success of its existing locations, MEININGER is focussing the near-term roll-out of new sites on key gateway locations across Europe fulfilling the following criteria: üCities with strong appeal to the youth target market üGood locations for school groups—maximising synergies with NST Group and Cox & Kings üAvailability of well-located city centre sites with conversion or new development opportunities üAvailability of sites with close proximity to public transport and main transport hubs
- 26. GROWTH MARKETS With a further 15 deals signed across Europe and the USA, MEININGER is well positioned to operate a total of 34,000 beds internationally by 2024.
- 28. FRANCE: BORDEAUX Bordeaux – Rue du Commerce Address 12-14 Rue du Commerce, 33800 Bordeaux, France Type of Property New built (front façade remains) Expected start of operation Q1 2021 GFA 5,530 sqm Number of rooms / beds 162 rooms / 493 beds Car parking 14-15 shared parking spaces
- 29. FRANCE: MARSEILLE Marseille - Harbour Address Marseille, France Type of Property New built Expected start of operation Q3 2021 GFA tba Number of rooms / beds 194 rooms / 574 beds
- 30. SWITZERLAND: ZURICH Zurich – Greencity Address Maneggstrasse, BF C1 West, 8038 Zurich, Switzerland Type of Property New built Expected start of operation Q1 2021 GFA 6,300 sqm Number of rooms / beds 174 rooms / 582 beds
- 31. SWITZERLAND: GENEVA Geneva – Quartet Address Rue de Lyon 110-114, Geneva, Switzerland Type of Property New built Expected start of operation Q2 2021 GFA 4,057 sqm Number of rooms / beds 104 rooms / 368 beds
- 32. GERMANY: COLOGNE Cologne – Braunsfeld “Ovum” Address Eupener Str., 50933 Cologne, Germany Type of Property New built Expected start of operation Q3 2022 GFA 7.900 sqm Number of rooms / beds 209 rooms / 780 beds
- 33. GERMANY: DRESDEN Dresden – City Center Address Wiener Platz 2, 01069 Dresden, Germany Type of Property New built Expected start of operation Q2 2021 GFA 7,600 sqm Number of rooms / beds 173 rooms / 704 beds
- 34. GERMANY: BREMEN Bremen – Mainstation Address Bürgermeister-Smidt-Strasse 15, 28195 Bremen, Germany Type of Property New built Expected start of operation Q1 2022 GFA 5,100 sqm Number of rooms / beds 126 rooms / 378 beds
- 35. AUSTRIA: INNSBRUCK Innsbruck – Blasius-Hueber-Strasse Address Blasius-Hueber-Strasse 4, 6020 Innsbruck, Austria Type of Property Rebuilt building (front façade remains) Expected start of operation Q2 2020 GFA 2,700 sqm Number of rooms / beds 75 rooms / 260 beds
- 36. ICELAND: REYKJAVIK Reykjavik – Hringbraut Address Hringbraut 121, Reykjavik 101, Iceland Type of Property Conversion of an existing hotel Expected start of operation Q2 2020 GFA 5,500 sqm Number of rooms / beds 122 rooms / 442 beds
- 37. UK : MANCHESTER Manchester – Great Ancoats Street Address 269 Great Ancoats Street, Manchester M4 7DB, UK Type of Property New built Expected start of operation Q4 2021 GFA 8.000 sqm Number of rooms / beds 212 rooms / 785 beds
- 38. UK : LIVERPOOL Liverpool – Union Court Address tba Type of Property Conversion Expected start of operation Q1 2021 GFA 3.349 sqm Number of rooms / beds 87 rooms / 277 beds
- 39. POLAND : WARSAW Warsaw – tba Address tba Type of Property Conversion Expected start of operation Q4 2022 GFA tba sqm Number of rooms / beds 151 rooms / 456 beds
- 40. ISRAEL: TEL AVIV Tel Aviv Address Levanda St 5 Tel Aviv-Yafo, Israel Type of Property New built Expected start of operation Q4 2023 GFA 8900 sqm Number of rooms / beds 218 rooms / 800 beds
- 41. USA: WASHINGTON DC Washington D.C. – NY Avenue Address 35 New York Avenue NE, Washington, DC 20002, USA Type of Property New built Expected start of operation Q2 2021 GFA 81,454 SF Number of rooms / beds 154 rooms / 616 beds
- 42. THANK YOU!