When Barbara Muckermann stepped into the CEO role at Kempinski Group in May 2024, she wasn’t expecting to uncover one of hospitality’s best-kept secrets. But that’s exactly what she did.
A deep dive into the brand’s archives quickly revealed a forgotten legacy of bold innovation and cultural richness. Now, it’s a legacy she’s determined to bring back to life.
“We discovered the brand actually started trading in 1862, not 1897 like we previously thought,” she tells The CEO Magazine. “This makes Kempinski the oldest hospitality company in the world.”
Rediscovering the DNA
When Muckermann joined the luxury operator, which has a presence in 33 countries and a pipeline of 38 new properties (including both hotels and residences), her instincts told her the brand had untapped depth.
As a German leading a German-born company, there was, of course, a personal draw. But it wasn’t until she opened the archives that she understood just how pioneering Kempinski’s legacy truly is.
“I always felt the brand had this kind of gravitas, charisma and mystery. As an industry operator, I also felt it was punching below its weight,” Muckermann points out.
“So when I joined and started opening the archives a bit, it became clear that Kempinski had invented a lot of what we today understand as modern hospitality.”
From serving wine by the glass alongside oysters in 1872 to introducing the world’s first hotel pool and circular dance floors for waltzing, the brand’s Founder Berthold Kempinski was a visionary. He even recycled scraps from the butchery into luxury soaps – early signs of the Group’s innovative spirit and commitment to sustainability.
“This innovative spirit is huge and what we’re focusing strongly on now,” she reveals. “As the custodians of this brand, we can’t just leave this in the past. We have to take Kempinski’s legacy of innovation and bring it into the next 150 years.”
Strategy simplified
For all her reverence of Kempinski’s heritage, Muckermann is also deeply pragmatic and is keen to reshape the business from the inside out. Her starting point? Following the dollar.
“It took us six months to really get a hold of how the money flowed,” she admits.
What she found was a brand spread too thin, particularly in markets like China, where aggressive expansion diluted Kempinski’s luxury positioning. The plan now is to scale back to focus.
“We’re aiming for a smaller but more organic portfolio under the Kempinski name,” she explains.
In China, the brand will anchor itself into a few select heritage buildings, while a new lifestyle brand, developed in partnership with Beijing Tourism Group (BTG), will support the volume growth BTG needs.
“Luxury is our focus, and luxury cannot be too big,” Muckermann says. “It must be elitist, qualitative and restrained.”
Outside China, she says growth will be guided by Kempinski’s top four core markets: Germany, the United States, the United Kingdom and the Gulf Cooperation Council. And it will focus on the destinations these travelers frequent, from Italy to France and other key European capitals.
However, Muckermann is quick to point out that while the strategy is simple, challenges remain.
“The United States is the largest luxury market in the world. But it’s tricky,” she concedes. “There, you can’t just take a box, change its name and think you’ve solved your United States strategy. It’s a different animal. And when you go in, you have to go in fully.”
Reinventing the team
To turn strategy into reality, Muckermann knew she needed more than just plans – she needed people. Her first move as CEO was to launch a massive talent search and restructure the leadership team.
“I hired Russell Reynolds Associates to help us build the strongest team possible,” she says. “This has been absolutely key because, at the end of the day, hospitality is a people business.
“This isn’t about innovating technology or building a cutting-edge factory to deliver something cheaper than everybody else – Kempinski is a business that needs to create differentiated products for a global market. And that takes a very particular type of leader.”
The result was one of the largest executive overhauls in the brand’s history.
“It was probably one of the biggest heart transplants in the industry,” she confirms.
“We did a gap analysis of which skills we had and which we needed, promoted from within and hired from outside. It’s the first time I’ve done it at this scale, and I’m incredibly satisfied by the outcome.”
That blend of commercial instinct and emotional intelligence is a recurring theme in Muckermann’s leadership style.
“In my experience, geniuses don’t make great leaders,” she reflects. “They often miss the emotional part of the equation, which is fundamental to getting things done.”
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Her own global career, including senior roles at Silversea Cruises, Loro Piana and MSC in addition to her multilingual, multicultural background have deeply shaped how she leads.
“I firmly believe you can’t run a global company without having lived in different places yourself,” she says. “You need that to be able to see the broader picture.”
Partnerships built on trust
As Kempinski evolves, partnerships continue to play a critical role – not just in growth, but in innovation too.
“For me, step one is understanding the flywheel of value in your business,” Muckermann explains. “You have to decide what to be best-in-class at and what you’re better off partnering for.”
But partnerships, she insists, only work under two conditions: mutual benefit and mutual trust.
“Both sides have to get something out of it,” she insists. “There must also be inherent trust because you cannot innovate and lead a market unless you try new things.
“Some things will work and some won’t. But you have to trust each other enough to try, even if that means failing together.”
With Kempinski’s future grounded in indulgent, luxurious experiences rather than on scale alone, its need for bold and imaginative partners like European hotel technology leader Shiji Group is critical.
“At the end of the day, we’re selling magic,” she says. “So we need partners who will innovate and do what’s never been done before. It’s always a risk. But better a risk than a copy.”
It all ties into Muckermann’s clear vision for the brand’s ongoing success.
“I’d love for guests to say, ‘In this city, I’ll stay at the Kempinski.’ Not just for the room or service – those are the basics – but for the most authentic and immersive experience in the destination,” she says with a smile.
