The andel’s Hotel Prague is celebrating its 10th anniversary and looks backon a successful decade on the Prague hotel market. And Dr. Andreas Karsten, CEO of Vienna International Hotelmanagement AG (VI), takes stock of his first year in office and the situation at the VI Hotels.

The important people at the press conferece. from left: Radek Teichmann, Dr. Christine Domaus, Dr. Andreas Karsten, Isabela Hren, Francois Mary.

The past ten years on the Prague hotel market were characterised by a boom in the number of beds and by the impact of the economic crisis of 2008/2009, presenting hotel operators in the Czech capital with a dual challenge. This makes it all the more encouraging that the andel’s Hotel Prague has established itself so well on the Prague hotel market and that it can look back on half a million bed nights.

The first andel’s Hotel opened in 2002 in the modern and lively commercial district of Anděl in the centre of Prague. The neighbourhood gave its name to a brand that would soon be exported to Poland (Cracow and Łódź) and Germany (Berlin) as a successful design concept bearing the mark of British architects and interior designers Jestico+Whiles and managed by Vienna International Hotels & Resorts.

Effective 1 November, a new Regional Manager has been appointed for Prague to strengthen the position of the andel’s and the 5 other Vienna International Hotels in Prague. Dr. Andreas Karsten, CEO of VI: “I am very pleased to be able to position one of our best general managers in Prague. On the one hand, because François Mary’s international experience – over the course of his career, he has worked in Paris, Geneva, London and the French West Indies – will be of great use here in particular; on the other hand, because it shows that VI lives its values and promotes careers within the group.”

1 year at Vienna International Hotelmanagement AG
In his first year as CEO of Vienna International Hotelmanagement AG, Dr. Andreas Karsten has repositioned the company so that the group is in a very good position financially. All past losses, including those from the divestiture of the CUBE Hotels, have been worked off. This year, a dividend payment of € 2.4 million was possible to all shareholders, which corresponds to 240% of the share capital.

An IPO remains an option in the long term, and the 2011 financial statement was presented according to IFRS. The combined results of the hotels managed by VI – € 175 million in revenue and 2.4 million bed nights in 2011 – are to grow even more in 2012.

VI is ready for further growth
VI has invested in both internally as well as externally visible technologies over the past year. Dr. Karsten wants to reach guests there where they spend most of their time: “If you look at the current booking behaviour of our guests, 65 % of adult internet users are active in social networks, and the internet is the number one source of information for travel decisions. For this reason, we completely re-launched our website, making it even more user-friendly, and intensified the communication with our guests on additional online and social media channels.” Armed with the right tools, and after a one-year consolidation phase, Vienna International Hotelmanagement AG is fit for further growth. For 2012, Dr. Karsten expects pre-tax earnings of € 3 million, which would equal growth of 50 % versus 2011. The operating result, without one-off effects, rent and depreciation write-offs, is likely to reach € 4 million. “In the current year, we, the entire VI team, have succeeded in establishing an extremely strong financial foundation for future, long-term growth. Of this, I am very proud.”

Current hotel projects
Vienna International Hotelmanagement AG is realising another angelo Hotel in Munich together with UBM Realitätenentwicklung AG. Opening is planned for 2013. Also opening in 2013 will be a 5-star luxury hotel in Shelkovo near Moscow jointly with Shelkovsky Holding. Further projects are in the planning or negotiation stage.

In the Czech Republic, Vienna International Hotels & Resorts represents 7 hotels in Prague: Diplomat Hotel, Le Palais Hotel, Palace Hotel, andel’s Hotel, andel’s Suites, angelo Hotel, Chopin Hotel Prague and two hotels outside Prague: angelo Hotel Pilsen and the Spa Hotel Dvorak Carlsbad.

Vienna International Hotelmanagement AG was founded in 1989. On the basis of individual management contracts, Vienna International operates and is developing a total of 29 first-class hotels & resorts and 2 hotel projects. The portfolio, which includes one Leading Hotel of the World, comprises city, resort, spa and conference hotels in nine European countries: Austria, the Czech Republic, Poland, Croatia, France, Germany, Romania, Slovakia and Russia. In addition to holiday and leisure products internationally, e.g. in Loipersdorf, Salzburg, Carlsbad and Opatija, the focus of the destinations is on business centres such as Salzburg, Munich, Berlin, Paris, Prague, Cracow, Łódź, Bucharest and Ekaterinburg.

The hotels managed by VI generated approximately € 175 million in revenues from 2.4 million bed nights in 2011. The group currently employs about 2,500 employees.
(Fotos: Udo Rößling)