
Kempinski and Adagio – without and with a strategy
Dear Insider,
Things are heating up again at Kempinski Hotels, but only internally, behind the scenes. All things are pointing to change after too many changes in recent months. Barbara Muckermann’s strategy does not seem to be working. The luxury hotel group has lost 19 hotels in two and a half years. On the one hand, the aim was to separate the unprofitable luxury hotels from the iconic properties, whilst at the same time transforming the company from an asset-light to an asset-heavy model. The group recruited a whole host of high-earning chief officers; 120 staff now manage 63 hotels and a meagre pipeline. To wind up the unprofitable hotels both operationally and formally, a new company (KISA II) was also quietly set up. But a KISA already exists. So why do there have to be two?
There are still a great many unanswered questions. Kempinski Hotels is less transparent than the respected luxury hotel group has ever been. The true value of Europe’s oldest luxury hotel group lies on the floor. It is now up to the supervisory board members and the owner family from Bahrain to take the final decision. They must now decide on the future of Kempinski, not just on a CEO. ... More
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