Corporate information

WELCOME HOTELS continues high level of investment

Flying in the face of the current economic climate the Sauerland based hotel group is investing over seven million euros in its group hotels. A brand new strategy for 2010 is also set to promote growth.

From left to right: Carsten Kritz, Marga Hohmann, Nadine Schäfer, Stefanie Mauter, Matthias Krevet, Elke Stahlmecke, Sabine Struif, Marco Schmidt, Thomas Klauke,    Britt Weißbach, Engelbert Beule, Mario Pick

Due to newly added hotels the WELCOME HOTELS group’s turnover for last year reached almost 48 million Euro - a clear increase over the previous year. Throughout last year the average occupancy rate for all 14 WELCOME HOTELS lay by 55 percent. Shortfalls in occupancy levels were offset by broadening the range of leisure facilities and services on offer. This strategy is set to be the focus of further developments throughout 2010. A decrease in events due to the reining in of corporate budgets was also partially compensated for in this manner. Given the economic background, Managing Director Mario Pick sees these figures as being “definitely good“. Managing Director Carsten Kritz, adds "although we were not able to achieve the growth we had set ourselves“. Thanks to an across-the-board price strategy the hotel group has been able to achieve an average room rate of € 67 mirroring the rate from the previous year. A well thought through "contingency concept" was implemented to address the economic downturn with an effective cost management policy. By addressing this issue in a timely manner WELCOME HOTELS was able to implement the concept immediately.

The future is rosy
In 2010 WELCOME HOTELS will continue to invest in the future. New rates of sales tax on hotel accommodation introduced in January 2010 have ensured valuable room to manoeuvre on the price front as well as in investments and in the group’s efforts to secure and create jobs and training opportunities. A revised training concept and effective development programme are sustainable investments in the future that directly benefit hotel guests as part of the group’s “you are welcome“- philosophy. Necessary investments in infrastructure, appointment and ambiance of group hotels will be made to ensure continued quality improvements in all service sectors. In total, in 2010 WELCOME HOTELS is planning an investment of € 7.2 million in hotel appointment alone. A further € 1.2 million, that would not have been available if it weren’t for the reduction in sales tax on hotel accommodation, will be invested in running repairs and maintenance. The benefit of this reduced rate will be felt by the WELCOME HOTEL FRANKFURT that is set to open in the autumn and the WELCOME HOTEL COLOGNE due to open in 2011 as well as allowing for optimism in the coming year. The WELCOME group also plans to invest this year in its IT: a brand new, more powerful central server will not only improve the networking between hotels and with head office but also ensure speedier processes. The installation of a uniform Property Management Systems (PMS) is yet a further important step that is being taken. “If only I had a crystal ball to predict what 2010 has in store for us. However, we are firmly counting on an upswing in the hotel and gastronomy sectors in the second half of this year“, says Mario Pick optimistically.

A time for change
The focus of 2010 will be on the realignment of our sales strategy. "We plan to increase the number of people working in head office in Warstein and have already one new professional on board“, explains Managing Director Carsten Kritz. Oliver Peters joined the team as Director of Sales and Business Development at the beginning of the year.

 Oliver Peters, Director of Sales and Business Development

Currently two other newly created positions in sales department are waiting to be filled: in future the team will be supported by a regional sales manager and a sales assistant. Customer loyalty will be improved with a revamping of the WELCOME Travel Card making it much more attractive.
Throughout 2009 WELCOME HOTELS focused on optimising time management amongst our employees and improving quality management. Increased success through professional quality management is our leitmotif with which the group aims not only to sustain but also to continue to develop the well-established level of quality and optimized levels of service for which WELCOME HOTELS are known and loved.

In a range of workshops, improvement suggestions that have been received will be studied to further optimise the group’s position vis-à-vis the competition. The success of these measures is clearly evident in the fact that the WELCOME group has moved up 3 whole places in the current AHGZ rankings to its present 30th position.