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HMI075_Cover.indd 1 10/07/2018 14:05 GERMAN PRECISION, GLOBAL VISION

PASSION TRADITION

VISIONARY

PERFECTION CARING

Deutsche Hospitality stands for an exceptional portfolio comprising more than 130 hotels on 3 continents. The unique portfolio includes Steigenberger Hotels and Resorts, the new hotel brand MAXX by Steigenberger, our lifestyle option, Jaz in the City, and IntercityHotels at busy hubs such as railway stations and airports.

Deutsche Hospitality.indd 1 10/07/2018 10:18 From the editor

On the web... Keep up with the latest developments across the hotel industry by visiting www.hmi-online.com Phin Foster, editor New world order

hen Hotel Management onto our radar following his appointment as International debuted in 1996, Rezidor CDO in 2007, he has been a regular Hotel Management International the industry it covered was presence on these pages, as we charted his Summer 2018 W almost unrecognisable to the one that we successes, first in Brussels and then, from EDITORIAL look upon today. Our focus lay squarely on 2014, as CEO of Steigenberger Hotel Group. Editor Phin Foster [email protected] Europe. More specifically, the UK, France, But his latest move might be indicative Chief sub-editor Thom Atkinson Germany, Italy and perhaps a few luxury of another fundamental shift in the Sub-editors Jim Findlay, Dale Hogan, Todd Palmer Senior feature writer Greg Noone resorts in the southern outposts of the aforementioned series of macro-trends. Feature writers Grace Allen, Andrea Valentino, Neil Thompson continent. This was the heartland of As the newly minted CEO of Indian Hotels Production controller Steve Buchanan hospitality; the place where the action Company Limited, operators of the mighty Group art director Henrik Williams Designer Ana Peres happened. At the time, it all seemed Taj brand, the subject of this edition’s COMMERCIAL glamorously international. cover story has returned home after Copy coordinator Melissa Parkinson It would be five years until the ‘BRIC’ 28 years abroad. His appointment also Head of sales Richard Jamieson acronym was coined and, as globalisation represents a domestic operator in one of Publication manager Richard Pollard Subscriptions marketing manager took hold and branding gained precedence, the most dynamic hotel markets on earth Mariella Salerno the magazine expanded its horizons. It looking to put the strategies and business Publisher William Crocker started with a handful of stories about hotel practises of its Western competitors into development in North Africa. The Middle practice with a local twist. East, specifically Dubai, started gaining Everywhere Chhatwal has been he

Hotel Management International is published quarterly by more column inches. Our marketing has sought rapid, multibrand, asset-light Compelo, which is a member of the Audit Bureau of Circulations, and is an official publication of the European materials had to change to reflect that we growth. The fact that he is now doing Hotel Managers Association. were now covering the ‘EMEA’ market. it with a company that already leads Registered in England No. 09901510. Soon after that, we struggled to find a hotel the market in the luxury segment, John Carpenter House, John Carpenter Street London, EC4Y 0AN, UK executive who wanted to talk about has ambitions in midscale, and enjoys Tel: +44 20 7936 6400 Fax: +44 20 7411 9800 anything other than China. the backing of one of India’s largest Email: [email protected] Websites: www.compelo.com www.hmi-online.com In many ways, the 2008 crisis served to conglomerates, represents something ISSN 2041-2452 © 2018 consolidate this shift. The industry was now genuinely exciting and new. Published in association with: truly global and covering a single region If domestic operators in markets such

All rights reserved. No part of this publication may be reproduced, seemed counterintuitive. As an Indian hotel as India and China are able to start winning stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying or otherwise, without prior executive who made his name in Europe at the expense of Western multibrand permission of the publisher and copyright owner. While every effort has been made to ensure the accuracy of the information in this pursuing rapid growth in fast-growing behemoths, where, what and who will we publication, the publisher accepts no responsibility for errors or omissions. The products and services advertised are those of economies, Puneet Chhatwal personifies be covering in another ten years? It’s going individual authors and are not necessarily endorsed by or connected with the publisher. The opinions expressed in the articles within this this brave new world. Ever since coming to be exciting to find out. publication are those of individual authors and not necessarily those of the publisher. The 2018 US annual subscription price for Hotel Management International is $164. Airfreight and mailing in the US by agent named Air Business, c/o WorldNet Shipping Inc, On the cover: Taj Falaknuma, Hyderabad, India. Summer 2018 Keyboard warriors 156–15, 146th Avenue, 2nd Floor, Jamaica, New York, NY11434, US. Protecting one’s online reputation Periodicals postage pending at Jamaica NY 11431. Exclusive club The challenges of luxury US Postmaster: Send address changes to Hotel Management membership schemes

International c/o Air Business, c/o WorldNet Shipping Inc, 156–15, www.hmi-online.com Also in this issue 146th Avenue, 2nd Floor, Jamaica, New York NY 11434 US. Subscription records are maintained at Compelo, Page 22: How ‘asset-right’ leasing strategies are 40–42 Hatton Garden, London, EC1N 8EB, UK. enabling operators to thrive in competitive markets. Air Business Ltd is acting as our mailing agent. SUBSCRIPTIONS Page 32: Expectations of wait staff are changing; we Single issue price: UK £31 EU €47 US $62 RoW $80 speak to leading hospitality experts about the new One year: UK £80 EU €125 US $164. RoW $167 challenges facing those at the front of house. Two year: UK £127 EU €198 US $261 RoW $266 Long journey home Puneet Chhatwal on returning to India after three decades away Tel: +44 845 155 1845 (local rate) Page 45: The ways in which an evolving perception of Fax: +44 20 8269 7877 the threat posed by terrorism is helping Europe’s hotel Email: [email protected]

An of cial trade bounce back from recent atrocities. Address: Compelo, Riverbridge House, Ground Floor, South Tower, publication of Anchor Boulevard. Crossways, Kent DA2 6SL

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HMI075_101_Foreword.indd 3 11/07/2018 11:28 Contents

Cover story 25 14

Southern Europe is still a hot ticket for travellers. 32

Puneet Chhatwal returns home to oversee the next chapter in Indian Hotels Company Limited’s story. The evolution of front-of-house hospitality.

The intelligence unprecedented rate. He talks to agreements in order to win Phin Foster about the significance of opportunities in particularly 8 News and vital statistics returning to India after almost three competitive markets. Patrick decades overseas, the evolving Kingsland speaks to Deloitte’s 11 Moscow’s mild World nature of the country’s hospitality Andreas Scriven to find out more. Cup fever landscape, and encouraging Businesspeople avoiding the city an unprecedented degree of 25 Southern comfort during the tournament, along with transparency and openness in his A cocktail of economic stability the capital’s high room count, will efforts to engender change. and concerns over security in North contribute to a smaller growth than Africa has led to a boom period for previous host cities, STR reports. for southern Europe’s resort market. Business management & development From the traditional destinations EHMA of Spain and Greece to new kids on the block in Croatia and 12 Learn to be better 19 Control and customise a space Montenegro, investments are A hotel is only ever as good as its from the palm of your hand gaining momentum all the time, staff. EHMA president Hans Koch Simon reports Ross Davies. explains how investing in effective employee training programmes 21 Where the soul matters 29 A welcoming future keeps properties competitive. Meliá Hotels International Lausanne Hospitality Consulting

The big interview 22 Balancing act 31 Containers for the hotel and For many years, the international resort industry 14 Bringing it all back home hotel development landscape TITAN Containers Appointed MD and CEO of Indian has been dominated by the ‘asset- Hotels Company Limited in August light’ model. Now, however, an Special report last year, Puneet Chhatwal has increasing number of operators embarked upon an ambitious are beginning to talk about ‘asset- 32 Waiting for recognition development strategy that promises right’, demonstrating a renewed Front of house is often the most to grow the group at an willingness to enter leasing overlooked aspect of a restaurant’s

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HMI075_102_Contents.indd 4 10/07/2018 12:36 Contents

Wilmotte, the hotel prepares to take 54 Points of view back its place in the mythology Monitoring and managing one’s 45 of the City of Lights. Grace Allen online reviews and reputation has explores the renaissance of an icon become one of the most important of the Left Bank. but time-consuming elements of day-to-day operations. How can hoteliers ensure this still-evolving Guest amenities discipline is performed to the best of their abilities? Abi Millar talks to 41 Welcome to the Mike Gathright, SVP of reservations new wellness and customer care at Hilton, and Hotels are making it easier than Renu Hanegreefs-Snehi, VP of ever before for guests to tap in and corporate communications, PR & get their health fix. Elly Earls meets reputation management at Radisson Hilton’s Melissa Walker, Chiva- Hotel Group, to find out. Som’s Dr Jason Culp and spa consultant Kathryn Moore to find How changing attitudes towards the threat of Operations terrorism are affecting the hotel trade. out how.

success. With the demand for 57 Does luxury need loyalty? Security new staff rising, we investigate Luxury hotel operators have long the challenges the industry faces lagged behind other segments in looking to entice new talent, and 45 Keep calm and carry on in the industry when it comes to speak to industry professionals Two years ago, tourists stayed leveraging the full power of a well- about the changing expectations of away from Paris, Istanbul and integrated membership scheme. diners towards their wait staff. Nice after a series of deadly However, in an environment of attacks, but the European hotel increased competition, and with market recovered swiftly after more information available on guest Regional focus more recent incidents. Greg Noone preferences and habits than ever talks to Thomas Emanuel, director before, might traditionally reticent 35 Spring forward of business development at STR, attitudes be beginning to change? The Arab Spring put a big dent and Mehmet Önkal, managing Neil Gerrard investigates. in North African hospitality, with partner at BDO Hospitality regional visitor numbers and Consulting, about how attitudes 60 Hygiene as a wellness factor investment opportunities tumbling. towards the risk presented by Alfred Kärcher The situation has drastically terrorism have changed. improved over the past few years, Directory but the region has not simply Food & beverage reverted to business as usual. 61 Product showcase Andrea Valentino talks to experts from across North Africa about 49 Market to millennials 61 Index how operators are pivoting towards In an age of lifestyle hotel brands more luxury offerings, and the and affordable luxury, select service The Insider importance of state support when is all the rage, but what does this opening new hotels. mean for the future of the hotel restaurant? Neil Thompson meets 62 A life in food Michael Butler of Hyatt International, The shocking news of Anthony Design Generator Hostels’ Gui Jaroschy, Bourdain’s death in early June, and Amir Nahai of AccorHotels to aged just 61, led to an international 38 The odyssey continues discuss what operators must do to outpouring of grief within the From its establishment in 1910 to meet guest expectations. hospitality community and its closure for renovation four years among the public at large. Hotel ago, the history of the Hôtel Lutetia Management International first Technology has been synonymous with the met the chef, writer and television history of Paris. Now, after extensive presenter in 2008, when we found restoration and renewal overseen by 53 Outstanding results him in characteristically compelling architect and designer Jean-Michel Reputation.com and outspoken form.

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HMI075_102_Contents.indd 5 11/07/2018 11:14 Hot.E.indd 2 10/07/2018 10:21 Hot.E.indd 3 10/07/2018 10:22 The intelligence > News

News

EXPANSION ever overseas hospitality Mint chases takeover having acquired NH Hotel Group an additional 25.2% stake in the group for €619 million Thai company Minor in early June. The potential International (Mint) has said it deal is the latest phase intends to expand its regional of Mint’s expansion into presence in Europe through the European hospitality the acquisition of NH Hotel sector. It previously bought Group. Valuing the Spanish Portugal’s Tivoli Hotels for operator at $2.89 billion, Mint, $320 million in 2016. NH Hotel the owner of Bangkok luxury Group is Europe’s sixth- hotel brand Anantara Siam, biggest hotel chain, operating launched Thailand’s biggest- 382 hotels worldwide. Mint’s acquisition of NH will expnad its European presence.

MERGERS & ACQUISITIONS SUSTAINABILITY hospitality brand geared cups and bags to straws and Accor completes New HQ towards exploring conversion coasters. The company joins takeover of for Marriott opportunities. The operator a growing number of hotel Australia’s International will immediately begin rolling operators who have also out voco in Europe, the Middle committed to cutting down Mantra Group Marriott International has East, Asia and Africa, then on their use of plastics. These AccorHotels has acquired started construction on a new expand it to Greater China and include Iberostar Group, which Mantra Group in its entirety headquarters in the group’s the Americas. Voco is intended said earlier this year that all for £730 million, including its hometown of Bethesda, to create significant incremental of its hotels would be free of Mantra, Peppers, BreakFree Maryland, US. Upon growth for IHG, which hopes single-use plastics from 2019. and Art Series brands. The completion, the new to open more than 200 such Australian company’s property complex promises to deliver hotels in urban and leisure BRAND EXTENSION portfolio stretches from a sustainable workplace locations over the next decade. Fosun cleared for Australia and New Zealand for up to 3,500 staff, with The name of the new brand family spin-off to Indonesia and Hawaii, and transportation options like is inspired by the Latin for ‘to includes more than 24,000 the nearby Bethesda Metro invite’, or come together. IHG The Hong Kong stock rooms across 138 properties. Station and modern amenities, says it expects the upscale exchange has given These range from luxury including a childcare centre, hotel market to expand to China’s Fosun International hideaways and coastal resorts gym and cafeteria. Knocking $60 billion by 2025. The group conglomerate permission to to serviced city apartments. down existing structures on has also completed acquisition spin off its tourism and hotels The deal was reached in the land began in June, with of a majority stake in luxury brands into a subsidiary, Fosun October last year, but was only building work anticipated to group Regent Hotels and Tourism and Culture Group will inked at the end of May. The last for three years. Marriott Resorts for $39 million. provide holidaymakers with purchase gives Accor a major employees are expected to a ‘one-stop shop’ for family- foothold in the Oceanic market, start moving into the building ENVIRONMENT focused tourism and leisure. and marks a shift for a group for by early 2022. Meliá to ban As well as Club Med, which recent acquisitions have single-use the new business would focused more on serviced BRAND EXTENSION plastics incorporate luxury hotel apartment accommodation than New brand development brand Sanya traditional hotels. launched by IHG Meliá Hotels International Atlantis, plus tourism-related Accor also recently has announced that it is products and services. Fosun announced it is taking a InterContinental Hotels Group eliminating the use of all has given no date for when $125- million half share in (IHG) has announced the single-use plastics in its this change is planned to sbe Entertainment Group. launch of voco, a new upscale properties, from bottles, come into effect.

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HMI075_112_News and stats.indd 8 10/07/2018 13:12 The intelligence > Vital statistics

Vital statistics

Europe RevPAR growth

 = % Real GDP  = % Real GDP Deal volume RevPAR growth in 2018 growth in 2019 (€ billions) growth p.a. (%) Global (MER) 3.3% Global (MER) 3.1% 21 15 Global (PPP) 3.8% Global (PPP) 3.7% Eurozone 2.2% Eurozone 2.0% 18 10

15 5

12 0

9 -5 3.5 3.0 1.5 1.6 6 -10

2.6 2.2 3 -15

2.4 2.3 0 -20 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

 Portfolio  Single RevPAR Growth (%) 2.1 1.9 Source: PwC Analysis, RCA, HVS, Hotal Analyst, AM-PM, STR 2.3 1.6 2.6 2.3

Highest ADRs (€) 2018 2.1 2.7

Geneva 242 1.2 1.0

Paris 236

2.8 2.5 Zurich 197

London 162

Source: PwC’s European cities hotel forecast for 2018 and 2019

Movers and shakers

Michael Ellis joins and regional vice-president Oriental Hyde Park, and vice- Jumeirah Group from Michelin of operations at Jumeirah president operations for the Restaurant and Hotel Guides Nanjing, Kiy will now oversee London area. A respected where he was global director the operations of all Hard hotelier, she is best known for Europe, Asia and the Rock Hotels across EMEA. for her five years as general Americas. In his new role, Mövenpick Hotels & Resorts manager at the legendary Vera Manoukian. he will be Jumeirah’s chief has made Sabine Dorn- Mandarin Oriental in Bangkok. Vera Manoukian has culinary officer, in charge of Aglagul president of Radisson Hotel Group been appointed senior vice- developing new restaurant European operations. Joining has announced Max president and global brand concepts and enhancing Mövenpick in April 2017, Gross is to become its new head of Hilton Hotels & existing restaurants to she was previously director senior director of business Resorts. With three decades industry-leading levels. of operations in Switzerland. development, in a move aimed of experience in hospitality, Hard Rock International has Her latest appointment at boosting growth across Manoukian most recently announced that Graham Kiy will see her replacing Ola Germany and Austria. worked as president and is being appointed as area Ivarsson, who retires from the For the past five years, CEO at Denihan Hospitality. vice-president of operations post of Europe CEO. he has been responsible There, she managed the of hotels in Europe, the Middle Amanda Hyndman rejoins for development and asset company’s growth and East and Africa. Fresh from his Mandarin Oriental Hotel group as management at the HR development pipeline. old role as general manager general manager of the Mandarin Group in Germany.

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HMI075_112_News and stats.indd 9 11/07/2018 11:24 When you’ll accept nothing less than perfection.

Take advantage of our efficient, reliable payment service. Because quality matters. six-payment-services.com

Ad-Hotel-Management-Hotellerie-216x286-Short-Copy-FINAL-INT-EN-FINAL.inddSix Payment.indd 1 1 10/07/201823.04.18 10:31 10:26 The intelligence > STR Moscow’s mild World Cup fever Businesspeople avoiding the city during the tournament, along with the capital’s high room count, will contribute to a smaller growth than for previous host cities, STR reports.

oscow’s hotel industry is FIFA World Cup projected to see growth 14 June to 15 July M in the range of 20 and 30% in revenue per available room  Johannesburg, 2010  Rio de Janeiro, 2014  Moscow, 2018 (RevPAR) during June and July 2018, respectively, according to the latest June July June July market forecast from STR and Room Count Room Count RevPAR Growth RevPAR Growth Tourism Economics. A RevPAR increase in that range 5,964 5,976 +99.6% +55.1% would be less than the growth 22,228 22,225 +94.5% +94.5% realised in Johannesburg (2010) and 50,149 50,149 *+21.0% *+26.0% Rio de Janeiro (2014), key markets for the previous two FIFA World Cup Source: STR and Tourism Economics host countries. * Revenue per available room (RevPAR) during World Cup host months While occupancy is likely to grow Moscow fi gures represent forecast 8–10% to absolute levels of just under 80% during the World Cup months, (+18.3 to 80.0%) in the market. At the This creates less opportunity for Moscow’s average daily rate is same time, average daily rate (ADR) substantial uplift in performance in projected to increase15–20%. That increased 72.8 and 64.4% during the percentage terms from a comparable trend would be consistent with two months, respectively, driving number of additional visitors travelling previous World Cup tournaments RevPAR increases of 94.5%. for the tournament. as STR analysts note that room rates are more significantly boosted STR analysts note that while demand is by the event, whereas demand remains fairly stable in year-over- helped by such a large event, year-over-year year comparisons. occupancy comparisons are typically hurt

Out with the old due to supply growth; this is compounded by STR analysts note that while demand regular hotel business avoiding the market is helped by such a large event, year- during major event months. on-year occupancy comparisons are typically hurt due to supply growth; In Johannesburg, occupancy Through the first four months of this is compounded by regular hotel jumped from the previous June (+27.7 2018, Moscow saw occupancy grow business avoiding the market during to 78.5%) but grew to a lesser degree 6.7% year on year to an absolute level major event months. Supply growth in July (+7.4 to 63.7%). ADR increased of 65.8%. Using the same four-month leading up to such ‘mega events’ 56.3 and 44.5%, respectively, during year-over-year comparison, ADR was creates more room inventory and the two months, driving RevPAR down 0.8% to RUB5,363.70 ($85.04). pressure on occupancy levels. increases of 99.6% in June and Preliminary data for May In Rio de Janeiro, occupancy rose 55.1% in July. showed occupancy rose by 11.5% by double digits from the previous Moscow’s room count is substantially to 74.8%, and ADR rose 3.1% to June (+12.6 to 81.6%) and July higher than Rio and Johannesburg. RUB5,451.5 ($86.39).

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HMI075_114_STR.indd 11 10/07/2018 13:15 Insight > EHMA Learn to be better A hotel is only ever as good as its staff. EHMA president Hans Koch explains how investing in effective employee training programmes keeps properties competitive.

he hotel industry is one of the fastest-growing sectors in the Hans Koch Hans Koch is president of EHMA and offi cial delegate for EHMA’s Swiss T world and shows little signs of chapter. Throughout his 35-year career, he has worked for hotel operators slowing down, even during economic all around the world, ranging from Hilton International to ITC Hotels. He is also managing director of Hans E Koch Hospitality Solutions. recessions. Technological advances are enabling new competitors to appear on the scene, and, as a direct result of the inspiring employees. Proper instruction the development of individual industry’s overall growth, it is assumed provides staff with the information to learners and review their progress. that by 2022 almost one tenth of people work and helps them recognise how ■ Evaluation of training solutions: will work in hospitality and tourism. important their jobs are. collect, analyse and present all relevant Front-line employees interacting with It is crucial, therefore, for managers information to establish the results customers every day face a particular to ensure that HR departments accept, of improvement in performance; set of challenges; a range of incidents and are aware, that proper training evaluate learning programmes may arise, from highly successful and development is part of their key and their response to developments, encounters to service failures. To responsibilities, along with other human and introduce improvements in achieve the former, employees must resources activities such as recruitment, learning interventions. feel in control, satisfied and motivated, selection and compensation. as well as being given appropriate In that sense, the role of HR is to Overall success assistance, information and training. improve employees’ current and future The overall benefits of good training In today’s highly competitive business job performances, while remaining aware include increased knowledge, skills, and environment, therefore, hotels require of the pros and cons of any training commitment, leading to better skilful and committed workforces to method. A typical training cycle consists performance and increased productivity, as remain successful. However, a frequent of five stages: well as improved quality and quantity of workplace problem is a lack of ■ Identification of training needs: output. Good training creates more leadership,training and development, to find out why training is required, self-confidence and an environment which can leave employees having to who the target audience is, and what of empowerment for individual employees, take on responsibilities for which they will be its expected outcome and and subsequently reduces the need for lack the proper guidance, knowledge and impact in regard to intended change direct supervision. skills. Organisations rely on their staff in behaviour, performance and so on. Individual employees benefit from to improve productivity and business ■ Design of training solutions: to increased job satisfaction and recognition. performance, so investing in training is plan, design and develop proper They get properly introduced to their jobs, crucial for improving competitiveness, training programmes, to ensure a and are taught how to best execute their enhancing quality and innovation, systematic and consistent approach work, and what kind of a role their job increasing performance and productivity, for all training solutions, including plays in the whole system. It also helps and improving profitability. Training is face-to-face training and open flexible them to understand their work better, to an essential process that must be taken learning, including elearning. love what they do and better plan their seriously, and cautiously planned and ■ Delivery of training solutions: own career development. implemented; it provides staff with the choose the most appropriate format Finally, management has a vehicle to knowledge, skills and the commitment to meet earlier defined training needs effectively implement company policies to perform in line with the processes and and solutions, taking advantage of and procedures and to achieve a more standards set by the management. different training methods; ensure successful operational performance. It that the delivery of the training is also enables managers to evaluate Human resources effective and provides opportunities individual employee performance Successful hotels always include for the learners to learn. and career development effectively, employee training as an important ■ Application of training: ensure including the identification of potential development strategy, as it increases that all learning outcomes are applied management personnel when it comes productivity while motivating and and reinforced in practice; monitor to succession planning.

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HMI075_113_EHMA.indd 12 10/07/2018 13:13 p13hmi.indd 1 Stayntouch.indd 3 guests keep coming back. from Electrolux Professional -so your and cleanliness with an in-houselaundry Take control and ensure perfect hygiene Don’t let this happen to you. h h The latest industry research shows that: to your hotel guests? what matters most Do you know

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Electrolux Professional Hotels 10/07/2018 10:11 The big interview > Puneet Chhatwal

Bringing it all back home Appointed MD and CEO of Indian Hotels Company Limited in August last year, Puneet Chhatwal has embarked upon an ambitious development strategy that promises to grow the group at an unprecedented rate. He talks to Phin Foster about the signifi cance of returning to India after almost three decades overseas, the evolving nature of the country’s hospitality landscape, and encouraging an unprecedented degree of transparency and openness in his efforts to engender change.

t is somewhat counterintuitive paradox – an appreciation perhaps own to share. From Homer to Hollywood, that, in the age of globalisation, best reflected in the rebranding of few plot devices have proved more I consumers are beginning to Steigenberger Hotel Group into Deutsche evocative than that of the returning hero; demand authenticity and individuality Hospitality during his 2012–17 tenure a protagonist forged in adversity abroad, like never before. A homogeneous as CEO, aligning the hotel operator with coming home to claim his destiny. international landscape means that the strengths and characteristics of This interpretation might seem a identity, standing for something other Brand Germany while, simultaneously, little hyperbolic to the rather more self- than scale, becomes a major selling establishing Deutsche as a truly possessed hotel executive, but the 54- point. Values and traditions are integral; international hotel operator. year-old’s appointment as MD and CEO one must have a story to tell. Puneet Then, in August last year, Chhatwal of Indian Hotels Company Limited (IHCL), Chhatwal has long acknowledged this suddenly had a pretty good narrative of his owners of the luxury Taj brand, carried an

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HMI075_115_Big Interview.indd 14 10/07/2018 13:16 The big interview > Puneet Chhatwal

air of the romantic epic. After 28 years away, establishing himself as one of European hospitality’s most recognisable and influential personalities, Chhatwal was coming back to lead India’s most iconic hotel operator.

A new chapter In fiction, this would be the story’s happy denouement, but, for the central character, it’s only the start of what could prove to be the most exciting chapter to date. The move was not inevitable, he insists, and there’s no other job he would have come back for, but a confluence of events made it the right offer at the right time. Chhatwal’s mother had entered her The dining hall at Taj Falaknuma, Hyderabad. 80s and, with her children living overseas, he felt “a son’s obligation” to come development model hitherto associated weren’t being used because everything had home. Furthermore, he was at a place with the other side of the Atlantic. Upon to relate back to the name. That’s where I professionally where a change of scene arrival at Deutsche, he demanded an end saw real opportunity.” made increasing sense. to Teutonic humility and a willingness Opportunity is being harnessed through “As a first-generation immigrant, your to articulate and embrace ambition. It a bold change in direction, reversing the heart says ‘go’ and your mind says ‘stay’,” is an approach that demands a lot from previous strategy of exclusively focusing he says of weighing up the decision. colleagues and the business as a whole, on the luxury market and, instead, pursuing “I spoke to the new chairman [of Tata but also strives to recognise and use significant multibrand growth. Sons, IHCL’s holding company, Natarajan existing and inherent strengths. Such a reversal is often interpreted as a Chandrasekaran] and was hugely “Fusing that American marketing dictatorial move by a new leader wishing impressed, but I also felt I’d done what I’d culture with European management,” to establish dominance, but the manner in set out to achieve at Deutsche. Those five Chhatwal agrees of his track record. which the decision was reached is, in fact, years had been extremely tough, a lot of “That will continue, but the Indian element indicative of Chhatwal’s background in work, and that takes its toll. We had come comes with that real emotional connection European boardrooms, particularly the more out the other side and, while I could have that we can deliver: the tradition, the collective, team-orientated leadership style carried on for a few years, it felt like a good service, the experience. In the West, synonymous with German corporates. time to move on.” because of declining margins, you’re In November, his first month in the role, Chhatwal is not the same man who continuing to see operators cut, cut and the new CEO took his top 35 people to Goa emigrated, but nor is the country he left cut. Here, that is not the case.” for the first in a series of leadership forums. behind. One wonders whether he would The conversations and debates arising have needed to travel abroad to further his Cross-cultural appeal from these meetings would come to career had he been making the same Within a company context, Chhatwal form Aspiration 2022, IHCL’s strategy to decision in 21st-century India. defines celebrating this emotional quality as restructure, re-engineer and reimagine “I would not be capable of doing this preserving the group’s “Tajness”, but, upon its portfolio, and, in doing so, increase job without those experiences,” the CEO arrival as CEO, he found that people within operating profit margins by 8% over the insists. “At Rezidor, learning from Kurt the group had become overly dependent next five years. [Ritter]; in Germany, establishing and upon the allure of the Taj moniker, Strategy and culture meets are refining brands, the corporate culture, potentially diluting its strength in the ongoing, with Chhatwal insistent that all leading change. I now know I can do all process. The national identity proclaimed stakeholders come to take ownership of the these things because I’ve done them before, by IHCL had served as a reference point new direction. This extends to developers, it’s just a question of figuring out what’s during Steigenberger’s rebranding, he owners and even suppliers, who were practical in terms of making it work here.” confides, “then I got here, and discovered invited to attend the group’s annual This idea of adapting and fusing nobody was using it”. business conference in April, something cultures is nothing new for Chhatwal. As “It felt as though nobody had thought the CEO says is unprecedented in terms CDO of Rezidor, he was instrumental in of capturing [IHCL’s] full potential,” he of how these relationships are managed rapidly expanding the group’s portfolio continues. “Brand ego had become personal on the subcontinent. “A risk, but it paid off,” through positioning it in the vanguard of ego; everything was ‘Taj-Something’, or he believes. “Creating real openness and European operators pursing an asset-light ‘Something-by-Taj’. We had brands that transparency is a major cultural shift.”

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HMI075_115_Big Interview.indd 15 10/07/2018 13:17 The big interview > Puneet Chhatwal

While the Indian hotel market is franchising market took hold in Europe as a Known for pursuing growth in fast- maturing, Chhatwal believes that a promising precedent. Chhatwal became growing economies while working out disproportionate level of focus remains at synonymous with asset-light development of boardrooms in Brussels and Frankfurt, the high-end. Even in a country creating in Europe, particularly during his time at there is an element of poacher turned as many new high-net-worth individuals Rezidor, and it is an approach that marks a gamekeeper to Chhatwal now plying his as India, luxury is not sufficiently scalable. pillar of his restructuring strategy. trade in Mumbai. During the course of an Taj is already the market leader in this “Companies in emerging markets come hour-long conversation, he rarely switches space, operating a mix of city hotels, from the approach of owner-operator,” his focus from the domestic, but over 15% resorts and safaris, and, while domestic he explains. “The majority of our portfolio of IHCL’s itinerary is overseas. opportunities remain for growing the is owned, but that cannot be the model portfolio and increasing margins, it will moving forward; it slows you down.” Keys to success not be the dominant driver of growth in Simplifying the company holding It’s a balance he expects to remain roughly the coming years. structure will involve exiting a number of the same as the portfolio grows from 17,000 to 25,000 keys, suggesting not We had brands that weren’t being used insignificant international activity. In April, Taj announced its first Saudi Arabian because everything had to relate back to the property, and the Middle East and South name. That’s where I saw real opportunity. East Asia are significant areas of focus, though Chhatwal insists he needs to get “There’s only so far you can take things,” joint ventures and divesting itself of held strategy fully embedded before casting his the CEO believes. “With the exception of assets – as well as hotels, Chhatwal reveals eyes too far afield. Pune, we’re already present in every that the group has more than 100 Mumbai “I haven’t really pushed the international important city – in many cases with apartments on its books, for example. IHCL angle yet because we’re still getting our multiple hotels. also holds a number of land banks that the house in order,” he explains. “In Europe, “They’re all fantastic properties, but CEO hopes to unlock through partnerships we’re looking for institutional investors, how much further can you go? Enter a with capital investors. for fantastic Taj properties like [London’s] secondary or tertiary market, building at “In many cases the right to build already Buckingham Gate or St James’ Court, or the cost and grandeur the brand demands, exists,” he says. “We haven’t used it the Bombay Brasseries that we have there. you’re not going to get the rates that level because we have been so Taj-focused. We could do that in Munich, Berlin, of outlay necessitates. Besides, such a Not every piece of land lends itself to a Frankfurt, Hamburg, Zurich. heterogeneous country demands a full-service luxury property, but there are “We are also looking for partners in multibrand approach.” certainly opportunities in other segments.” locations with a strong Indian diaspora; The most significant of these is in the cities like Toronto, Chicago, LA and New avenues midscale, which will be doing a lot of the Washington in North America, or Upper upscale Vivanta has lost its ‘by Taj’ heavy lifting. IHCL’s brand providing the Birmingham and Manchester in the UK. suffix and will target India’s top 40 cities muscle is Ginger, which currently has 45 These could be very good for us as brand and key resort destinations. It accounts for operating hotels, but Chhatwal foresees awareness is already so strong.” a little over a quarter of today’s inventory, getting into the multiple hundreds. But, for now at least, Chhatwal’s but a number of IHCL’s Gateway The branding has been refreshed and commitment lies more squarely with properties, an upscale brand that currently JOI-Design hired to create a new design bringing elements of the West to IHCL makes up 14% of the portfolio, will be template – a process not dissimilar to than vice versa, rethinking systems and retagged. Chhatwal has also created Deutsche’s recruitment of Matteo Thun to processes through the unique perspective SeleQtions, a soft-branded collection. rethink IntercityHotel’s design identity. gleaned through decades spent overseas. Some properties elsewhere in the This is all taking the brand in the “In Europe, I always identified as being portfolio will be moved into this grouping, direction of what the CEO calls “lean Indo-German; I took the best of India but it also provides IHCL with a new luxury” and he believes 70% of the portfolio with me and used it,” he says. “Now avenue for pursing growth in the upscale will carry the new standards within the I have returned, and it’s a question of space. On the day of our interview, next 18 months. keeping and building upon the best of Chhatwal and his team have just won “There is a growing appreciation that a Europe. Whatever doesn’t work here the bid for the 33-year lease contract to hotel does not necessarily have to be five- I’ve hopefully left behind.” operate Delhi’s 85-room Connaught as a star in order to deliver certain qualities and Time will tell what those characteristics SeleQtions property, though he also sees standards,” Chhatwal explains. are, but, if previous instalments of this significant opportunity for franchising. “We’ve seen a lot of specialised story have taught us anything about The CEO acknowledges that that model management companies emerge in the Chhatwal, he will not lose sight of the is still in its relative infancy in India, but wake of that shift and this is a segment significance and power of staying true to points to the speed with which the where I see significant growth.” one’s values, strengths and identity.

16 Hotel Management International | www.hmi-online.com

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Simon.indd 1 10/07/2018 10:35 Company insight > Business management & development Control and customise a space from the palm of your hand Simon’s smartphone app enables you to vary the lighting in a space, track consumption, and regulate devices or timers to encourage interior spaces to be used differently. A secure and intuitive interface enables the gentle and unobtrusive digitalisation of spaces.

igital technology has transformed how we interact additional experiences and customise a space or have control with one another. Now, with the arrival of the over the light and the devices, from a sustainable standpoint, D internet of things (IoT), it’s also changing how and all through an intuitive interface that we carry in our we interact with objects and, by extension, with spaces. We pockets every day. already have spaces that can talk with the individuals inside From the phone, one can, for example, set timers for certain them, anticipating or adapting to their needs and habits. This lamps or devices, track consumption, turn on courtesy lights technology is already having an impact on the hotel industry, and so on. “The app lets us turn features on based on the as guests can set up customisable spaces by using simple user’s needs,” says Batet. orders and gestures. Simon has always tried to stay ahead of the curve while Security and scalability remaining faithful to the company’s design ethos; even as The app mustn’t be confused with a sort of remote control technology becomes more prominent, interaction with it must for turning lights and devices on or off, however. In fact, be gentle, almost invisible. it may be used fairly infrequently, only to set up the It is this philosophy that resulted in the Simon 100 series installation and make changes when so required by the a little over two years ago, coinciding with the company’s conditions in the space, maintaining its one-key operation. centenary. The series offers a collection of devices that can According to Batet, one of the key features of the Simon digitise spaces without any special installation requirements. 100 series has always been scalability. Spaces can be These are devices with the potential to be smart. fully digitised, and master devices can be installed, but Throughout the product’s six-year research and not activates them until they’re needed. development process, one thing was clear: the interaction had “We can go further and fully digitise our surroundings to be the same as always, flipping a switch, the simplest and by centralising control in master devices,” he says, “and most common interaction in our everyday lives. then use the app to change those settings depending on the time or context.” Conventional installation, full control This is particularly useful in common areas of hotels The innovative collection can be used to digitise a setting that may be used for various activities during the day. By by means of a plug that acts as a hub and digital devices setting up several different lighting scenes, a restaurant that feature a Wi-Fi connection – the electrical installation is can be made into a bright room for breakfast; an elegant conventional, a new one isn’t required. venue for dinner; a cocktail bar; or even – in the case of These connect to a mobile app that offers features or that conventions and congresses – a hall with spotlights for can be programmed using the exclusive Simon operating the guests of honour or speakers. These different lighting system. To do away with complex remotes and avoid installing scenes can be switched between with just a couple of displays in a space, the system is set up through a smartphone clicks on a mobile device. app that is available for iOS and Android. In a digital context, Simon has always had to be mindful The app is the key to the system’s simplicity, according to of security, especially when dealing with a space that’s Alfred Batet, global digitalisation manager for Simon. “It made open to the public. That’s why it has incorporated data it possible for us to set up the system by using a language and encryption protocols into the app and regularly conducts a device that most of the population already has,” he explains. cybersecurity audits. Transferring the set-up to the mobile and giving it an “Simon has a set of use and privacy policies that, intuitive language enabled Simon to give the devices a combined with tools to enhance security at the system minimalist design while expanding their features. and application levels, enable it to provide these barriers “The app allows us to add functions without complicating against a potential outside intrusion,” concludes Batet. the interaction. What we wanted all along was for the design to speak for itself, for technology not to overwhelm the user,” Batet says. Further information Simon This way, by using a conventional installation and devices www.simonelectric.com with a clean design and an intuitive interaction, we can set up

Hotel Management International | www.hmi-online.com 19

HMI075_Simon Sau.indd 19 10/07/2018 13:32 You want to invest in a company with a healthy ROI. So do we.

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Havas Melia.indd 1 10/07/2018 10:37 Company insight > Business management & development Where the soul matters

In 2017, Meliá Hotels International presented three unique and spectacular hotels – Meliá Serengeti in Tanzania; Meliá Iguazu on the Argentine side of the famous falls; and Meliá Ba Vi Mountain in an iconic national park in Vietnam to kick off a new line of business.

ocated in some of the most beautiful places on Earth, Meliá Hotels International’s latest properties are L luxury experiences based on Spanish hospitality with sustainable and environmentally friendly designs. This is all accompanied by Meliá’s brand values and attributes. Meliá Hotels & Resorts’ new motto, ‘soul matters’, reflects its focus on comprehensive well-being, harmony between mind and body.

Self sufficient Meliá Serengeti Lodge is Meliá Hotels International’s first avant-garde hotel focused on 100% sustainability. Located in the Serengeti National Park in Tanzania, one of the greatest wild animal experiences on the planet and a World Heritage event, to the west of Lake Victoria and with natural terraces facing the Guests at the Meliá Serengeti Lodge can eat at The Boma restaurant. slopes of the Nyamuma Hills, the hotel offers spectacular views of the Mbalageti River valley and guarantees a journey of discovery. Designed to ensure the protection and preservation of the surrounding environment, the hotel covers half its energy needs with energy that it generates itself and treats all its waste so that it can be used by local farmers. Food and beverage services use local ingredients to support local communities. This also encourages training for women and provides work for members of the Maasai tribe. The soul of Africa permeates everything to make guests’ experiences unforgettable.

Natural wonders Meliá Hotels International has also commenced operations at the Meliá Iguazu, the only hotel in the heart of Iguazu National The pool at Meliá Iguazu, in Iguazu National Park. Park, considered one of the Seven Natural Wonders of the World and is a UNESCO World Heritage Site. The hotel offers amazing panoramic views of the famous Devil’s Throat and gives Meliá a unique opportunity to become the leading hotel company in this famous tourist destination. It also features an interpretation centre, which allows visitors to walk to the falls, to enhance the natural environment in Iguazu.

Benchmark for wellness At the end of 2017, Meliá also presented the Meliá Ba Vi Mountain, located in one of the most beautiful natural areas in the middle of the tropical forests of Vietnam. The hotel aims to become a benchmark for wellness travel, a segment in which Meliá is a market leader. The Ba Vi Mountain Retreat is expected to become a privileged example of the major focus the country has on nature Meliá Ba Vi Mountain, in Vietnam’s tropical rainforests. travel, a segment with extraordinary potential in Vietnam.. Because passion and soul are an essential part of any experience, Meliá’s new legendary hotels offer guests the finest Further information Meliá Hotels International rest, communion with nature and adventures, all of which then www.meliahotelsinternational.com become part of guests’ lifestyles.

Hotel Management International | www.hmi-online.com 21

HMI075_Havas.indd 21 10/07/2018 13:26 Insight > Business management & development Balancing act For many years, the international hotel development landscape has been dominated by the ‘asset-light’ model. Now, however, an increasing number of operators are beginning to talk about ‘asset-right’, demonstrating a renewed willingness to enter leasing agreements in order to win opportunities in particularly competitive markets. Patrick Kingsland speaks to Deloitte’s Andreas Scriven to find out more.

n 1992, hotel operator Marriott the end of a process that had witnessed became the first company in the the sale of almost 200 hotels in a decade, I industry to evolve into what later for gross proceeds of almost $8 billion. Last became known as ‘asset-light’. By year, Hyatt (known for its ‘asset recycling’ spinning-off its underperforming real estate strategy, which involves selling owned operations into a separate investment trust, assets to reinvest in new ones) announced the hotel giant found a way to grow its plans to sell $1.5 billion of real estate. presence and profit without the burden of risky equity investments. Fewer assets, less worry Three decades later, Marriott The factors driving this trend are well International has become the world’s known. In the 1980s, Marriott borrowed largest operator, while almost every other huge sums of money to build hotels international hotel company worth its salt it would later sell and manage. For a has followed, and continues to follow, the while, the strategy worked. But when asset-light strategy to some extent. a recession hit in the early 1990s, the In 2016, InterContinental Hotels Group (IHG) completed its move towards a fully asset-light model following the sale of the InterContinental Hong Kong. This marked

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HMI075_116_Asset Right.indd 22 10/07/2018 13:19 Insight > Business management & development

company suddenly found itself lumbered Many have therefore responded by offering say the ‘asset-right’ model makes more with 141 hotels that nobody wanted to that little bit extra. sense for them. buy. Other companies faced similar crises. “The terms of the contract between, “When we made the diagnosis, it was The merits of being ‘asset-light’ were say, Accor, Marriott and Hilton can often clear that opportunities in key markets proved once again during the 2007–2008 be identical,” says Scriven. “If one of had been missed because of a lack of financial crisis, when overleveraged them is willing to put in $5,000 a room flexibility,” Federico. J González, president hotel companies needed to shore-up to freshen them up, as an owner, that’s and CEO of Radisson Hotel Group, told their balance sheets during an uncertain hugely appealing.” Hotel Management International upon economic climate. The less they had on their books, the less exposed they felt to I am a big believer in cycles… I think cycles market fluctuations. After all, exiting a management or franchise contract is a lot will continue, and I think we are seeing a lot easier than selling a distressed asset. of indicators that we are close to the top of At the same time, the dynamics of the hotel market were shifting. By the mid- the market again. 2000s, the European landscape had become increasingly brand dominated; For example, in May, IHG announced announcing a new development strategy. scale was king and franchising was an agreement with Foncière des Régions, “Looking around Europe, there are so gaining maturity. The advent of the to rebrand and operate 12 hotels and one many destinations where we could, and internet meant the larger the chain, the pipeline hotel in its portfolio across the UK. should, be bigger. When you don’t have more visible it would be online. The deal provided IHG with an opportunity a track record in a market, the right Meanwhile, outside of Europe, hotel to achieve immediate scale for its Kimpton management contracts and franchise companies were moving into countries brand, which IHG has been trying to get agreements can be tougher to come by, where they couldn’t necessarily trust into Europe for a while. To push the deal and this, again, is where a change in mind- or understand the real estate sector and forward, the company announced it would set is necessary. It’s not always about the the laws governing it. Owning assets operate the hotels under managed leases. number of hotels but understanding the in markets like China, India and sub- “It’s not their traditional model but this value of individual properties. A successful Saharan Africa was not considered wise – presented a strong opportunity to get into lease is a lot more profitable than multiple and local partners were often mandatory. one of the strongest markets in Europe management or franchise contracts.” Put together, the ‘asset-light’ strategy with some scale,” says Scriven. “When Over the past two years, operators like allowed operators to focus on what they you have those opportunities, it drives a González’s Radisson Hotel Group, as well do best: operating hotels. rethink. Is pure asset-light absolutely as Meliá Hotels International and Hyatt, “The view was taken that hotel correct, or can you actually create have shown an increasing willingness to operators and brands aren't best placed shareholder value by accelerating a brand put money in and sign longer-term leases to manage and maximise the value of real roll-out or securing high-quality assets for the right property and right price. estate,” says Andreas Scriven, head of through putting a bit of skin in the game. “They have to differentiate themselves hospitality and leisure at Deloitte. “Instead, “The deal shows there is constant and compete a little bit differently,” says there was a focus on separating the owner movement in terms of what the right Scriven. “Radisson Hotel Group, for of the bricks and the operators, who could ownership structure looks like, and it example, are now the biggest player in then focus on running their hotels.” changes from company to company. Are Russia in terms of a global brand. That’s we going to see the likes of IHG and Hilton because they went into the country early Right approach owning huge amounts of real estate again? and took some leases. Some of those The asset-light ownership model has Probably not. But they might do it, or shift leases might look quite challenging in presented challenges to the hotel industry, from management to leases in selected retrospect, but it gave them presence.” however, with analysts suggesting an situations in absolute core locations.” increasing number of operators are While the focus on brands and Market research now beginning to either enter leasing scale brought huge success for a small Of course, putting skin in the game agreements, put forward ‘key money’ or number of top hotel chains, for midsized needn’t commit hotel operators to buying even buy properties outright. This new operators interested in landmark whole properties. For some, asset-right strategy has been dubbed ‘asset-right’. properties and developments, life has simply means signing a lease, committing According to Scriven, one of the been more difficult. to rental payments and taking on a determining factors in this shift is the When it comes to winning contracts, degree of operational risk. brand landscape. When major operators, the extensive membership schemes and For others, it means signing a all of who have strong brand portfolios, are bottomless advertising budgets of the management contract with some kind bidding for contracts it can be difficult for big operators can be hard to compete of minimum guarantee for the owner owners to distinguish between them. with. In these circumstances, operators or putting in ‘key money’ – an up-front

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HMI075_116_Asset Right.indd 23 10/07/2018 13:19 Insight > Business management & development

questions will be raised about their The Intercontinental Hong Kong was sold in 2016 as part of a move by its owner capacity to handle economic fluctuations, towards an asset-light strategy. with many analysts arguing the market is now reaching its peak. “I am a big believer in cycles,” says Scriven. “Every time we get to this stage in the market, somebody, typically in the US, says we live in a post-cyclical environment, which is not true. "I think cycles will continue, and I think we are seeing a lot of indicators that we are close to the top of the market again.” Last time the bottom fell out the market, payment than enables operators to secure selling, the switch to ‘asset-light’, and in 2007, hotel operators certainly found the contract.“There are a number of from management contracts to franchise themselves overleveraged with big leases different structures that are being agreements, has significantly diminished and hard-to-sell real estate. This time looked at,” says Scriven. their role. around, have they learned any lessons? “You are relinquishing all the control you “Some people have and others Controlled risk have over the customer experience because haven't,” says Scriven. “Invariably, over Whatever the size of the operator, you don't control the asset anymore; and the next couple of years, we are going to regaining some degree of control over if you switch to franchise, you don’t even see some distress again.” the properties they operate is likely to control the operations,” says Scriven. “The The extent to which this distress help them re-establish brand identity. consumer still expects you as the brand to resembles what was witnessed ten years Whereas in the past hotel chains deliver that experience though.” ago may, in some part at least, depend owned and controlled almost every But as operators show increased upon what operators come to define as an aspect of the experience they were willingness to risk their own money, asset-right development model.

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HMI075_116_Asset Right.indd 24 10/07/2018 13:22 Insight > Business management & development Southern comfort A cocktail of economic stability and concerns over security in North Africa has led to a boom period for southern Europe’s resort market. From the traditional destinations of Spain and Greece to new kids on the block in Croatia and Montenegro, investments are gaining momentum all the time, reports Ross Davies.

o say the past decade has been a grown by 3% over the past three years – ventures and acquisitions in recent years difficult one for southern Europe well above the eurozone average. should be seen as ample evidence of new T would be something of an Growth in Italy, however, is among the confidence in the sector. understatement. Since the financial crisis slowest in Europe. Recent political turmoil crash-landed in 2008, revealing weak has done little to reassure analysts that On the up foundations in most of the region’s this will pick up any time soon. One recent eye-catching deal was economies, member states have grappled Yet, tourism in southern Europe and the the revelation in 2017 that London- with crippling debts, high unemployment Mediterranean is, broadly speaking, on an headquartered private equity firm rates and political uncertainty. undisputed upward curve, having risen by Orion Capital Managers had taken While a full recovery is yet to emerge, over 12% in 2017, according to the United full ownership of Sotogrande Luxco – some economies are looking at their Nations World Tourism Organization having bought a 50% stake from its healthiest for years. In the first quarter (UNTWO). This made last year the eighth joint venture partner Cerberus Capital of 2018, Greece’s output grew by 2.3%, consecutive 12-month period of growth, Management – allowing it complete marking a fifth consecutive quarter of said UNTWO. Some destinations have control of the Sotogrande luxury golf growth. Despite unemployment issues, even seen performance levels that outstrip resort in Andalucía, Spain. Spain is also on a roll, its economy having pre-2008 peaks. Having hosted golf’s Ryder Cup in Southern Europe’s resorts space, in 1997, Sotogrande, like many other Spanish particular, is thriving, thanks to increased resorts, fell victim to the recession. investor interest. With more money According to estate agents Savills, sales available in the coffers, banks are showing fell by 70% between 2007 and 2012. a renewed appetite for entering deals – But since being bought by Orion and as are alternative lenders. A flurry of new Cerberus in 2014 for €225 million, sales are now believed to be higher than

Santorini island, Greece, where the economy is showing encouraging signs of growth.

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HMI075_117_Resort Market.indd 25 10/07/2018 13:24 Insight > Business management & development

Investors are now looking to southern Europe to do the same.” One of the themes at last year’s Mediterranean Resort & Hotel Real Estate Forum (MR&H), held in Spain, was the role mixed-use resorts could play as profit- spinners. Investors, in particular, have their eye on resorts centred around well-being, leisure, recreation and sport, food and beverage, and family-friendly amenities.

Strong fundamentals The residential and second-home market is a significant ingredient when it comes to such resorts in the Med. Anantara Vilamoura in Portugal's Algarve region. Properties in the southern European nation are “The motivations that underpin the enjoying something of a resurgence, thanks to favourable nancial circumstances. majority of sales are golden visa or passport-motivated sales as a form of investment, and rental yield and capital growth,” read the post-event report. “Branded residences can bring in sales velocity, customer assurance and so on, provided the operator truly understands residential and works together with the hotel operation. “Mixed-use resorts investment strategies The beach at the Valamara Girandella resort in Croatia, where the government is encouraging the need to look at all the elements together public and private sectors to pull together as part of a tourism development strategy. and not single out residential from other €5 million for the first time since the helping to transform smaller loss-making components: it is about planning a resort economic downturn. Buoyed by the revival hotels within its portfolio into inclusive and experience where the integrated whole in the local property market, ground has luxury resorts. offers more than the sum of the parts.” since been broken on a new artificial “Much of the capital going into resort The other key considerations for those beach at La Reserva Club – a luxury property has been opportunist debt wanting to get in on the action include, country club within the Sotogrande funds buying non-performing loans from according to Finney, “Strong fundamentals complex – which is expected to open its locally based banks,” says Marc Finney, – good destinations with easy access.” doors later this year. head of hotels and resorts consulting at With its reliably warm beach weather, Portuguese resorts are also enjoying a Colliers International. the Mediterranean has long attracted sun- renaissance. In 2015, US private equity and “This helps the local banks to worshippers in their droves. real estate group Lone Star Funds acquired recapitalise, but also enables the purchaser Even a weaker pound against the euro Garvecat – the developers of the Algarve to buy at a deep discount. This usually and uncertainty over Brexit has done resort of Vilamoura – for €200 million. sees the investors hold for a short period, little to diminish the appetite of UK holidaymakers heading for the southern Families prefer the safety and open spaces reaches of the Continent. Where resorts can easily differentiate of Sotogrande to the fleshpots of Marbella. It is themselves from the image of crowded more like living in the countryside. mega-hotels is in the security and privacy – Andrew Derrick, Sotogrande they afford guests. Sotogrande is an ideal example. While situated only a short drive Similarly, in 2016, US-headquartered picking the low-hanging fruit and then away from the packed beaches of Marbella assets management group Oaktree Capital selling on to longer-term holders. up the coast, Sotogrande, with formed a new venture with Greek luxury “We saw this with the Hudson/Lone its palatial villas and landscaped gardens, resort companies Sani and Ikos with a star’s acquisition of the Vilamoura Resort in might as well be on another planet. view to growing both brands individually Southern Portugal and Cerberus acquisition As the resort’s marketing manager while investing in new projects across of Sotogrande. These funds are repeating a Andrew Derrick told the Financial Greece. Oaktree has pledged to invest trick that they have successfully delivered Times last year, “Families prefer the €500 million in the Sani group alone, in first in the US, then in Western Europe. safety and open spaces of Sotogrande

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HMI075_117_Resort Market.indd 26 10/07/2018 13:24 Insight > Business management & development

The village of Oia on Santorini represents the sort of traditionally popular tourist destination that has always been a safe bet for investors, but other countries, such as Croatia and Montenegro and are proving an increasingly attractive draw for foreign money.

to the fleshpots of Marbella. It is more Both countries are good examples of country’s relatively new-found like living in the countryside.” how business-friendly governments can independence – and stability – to drive Safety is also a huge factor. In an address entice foreign investment into national fresh funding. at last year’s MR&H Forum, Robin resort industries. This summer will see the launch of Rossman, managing director of STR, Buoyed by a record 16.3 million new golf course – designed by South said the resort markets of the northern visitors to the country in 2016, Croatia is African Grand Slam legend Gary Player Mediterranean, in particular, had in the middle of a tourism development – as part of Luštica Bay, Montenegro’s “flourished” as a result of tourists staying strategy, through which the government largest resort development. away from North Africa follwing terrorist is seeking greater collaboration between Elsewhere, the Porto Montenegro attacks. Conversely, there is little evidence the public and private sectors to draw in resort – which includes a superyacht of the 2017’s attacks on Barcelona’s Las fresh money. marina, boutique shops and an Ramblas having had any adverse impact on The strategy appears to be working. international boarding school – was Spain’s resort segment (see our security In March of this year, Valamar, acquired in 2016 by the Investment feature on page 45 for further context). Croatia’s leading tourism company, Corporation of Dubai, the main Finney agrees with Rossman’s received a €16-million loan from the investment arm of the Dubai assessment. “Safety is a major European Investment Bank to help Government. Other major resorts are consideration,” he says. “After events in finance the completion of the luxury reported to be either already under Tunisia and other North African countries, Valamar Girandella Resort in Rabac construction or in the design stages. there has been flight to safer destinations on the Istrian peninsula. Overall As Ahmet Erentok, chairman of such as Spain and Portugal.” investment in Croatia's hotel industry Azerbaijan-based Azmont Holdings – itself is predicted to reach €1.2 billion by developing a €830-million resort on the New horizons 2022, according to Ernst & Young. This country’s Boka Bay – put it to the Wall As to the future, the resorts of Spain, includes 6,000 new hotel rooms added Street Journal earlier this year, “The Portugal and Greece might remain the to its inventory by that year, with an government of Montenegro has made traditional draw for tourists, but Finney additional 3,700 being renovated. developers and investors feel appreciated.” cites Croatia and Montenegro as “longer- Likewise, Montenegro’s business- It seems other states in the region term, new destinations” where investors friendly government is also making a looking for a piece of the action would do might be tempted to place their bets. concerted effort to capitalise on the well to follow these leads.

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HMI075_117_Resort Market.indd 27 10/07/2018 13:25 Lausanne.indd 1 10/07/2018 10:38 Company insight > Business management & development A welcoming future

In the complex world of hospitality, a long-term strategy is vital to ensure ongoing success. Yateendra Sinh, CEO of Lausanne Hospitality Consulting, speaks to Hotel Management International about Window to the Future, a biannual knowledge summit that gathers experts to address what is to come in the industry.

t a time of rapid change in the world of hospitality and wider society, astute business A decisions demand sophisticated strategies for the future. This means not only understanding emerging markets, technologies and generational preferences, but also developing a strategy that links short-term developments with a vision for upcoming decades. This is the thinking behind Window to the Future, an initiative co-created by industry-knowledge provider Lausanne Hospitality Consulting and the Ecole hôtelière de Lausanne (EHL). Held every two years, the event brings together a select group of top academics, entrepreneurs, hotel executives and investors to explore the long-term future of the hotel industry. While many conferences focus on current challenges Window to the Future aims to replace broad groups with micro- generations, all with their own preferences. and the immediate future of hospitality, Window to the Future offers a more far-sighted perspective. “Our connection to the local community. “Ultimately, the tourist or strategies may differ as companies, but in the 15, 20 or the consumer wants a local touch. You don’t want to be in 30-year scenario, we’re all equal,” says Yateendra Sinh, the same experience whether you’re in Hong Kong, New CEO of Lausanne Hospitality Consulting. York, Lagos or Mumbai,” Sinh points out. ”Otherwise, it’s not “If we can all sit together and discuss what could worth it – you’re insulated from the world.” happen, there’s a greater chance of us influencing it This approach extends to all aspects of the hotel forward, or at least being ready as we go into that experience, from aesthetics to gastronomy. Window to the particular future.” Future highlighted new thinking on generational patterns: the replacement of broad groups such as millennials and The values that people are looking baby boomers with micro-generations, all with their own preferences and requiring a more individualised approach. for are not just price and quantity... The pressing question of sustainability and social They are price, quantity, community, responsibility, and the developing expectations of consumers in this area, were also addressed at length. environment and humility. “The values that people are looking for are not just price and quantity, which was the old paradigm of The most recent event on 30 April 2018 saw CEOs, consumption,” Sinh says. “They are price, quantity, investors and university deans discuss topics ranging from community, environment and humility.” the impact of sporting events on hospitality (featuring a After the most recent event’s success, Sinh is already keynote from Christophe Dubi, executive director of The considering the next one, to be held on 11 May 2020. “We Olympic Games at the International Olympic Committee) intend to look at a lot more of the next generation of investors, to the interplay between the vital concepts of high-tech and how they intend to take sustainability forward.” and high-touch. He highlights the value of collaboration in approaching “The outcome was that high-tech will enable, not topics that impact upon not only the hospitality industry, but contradict, high-touch,” Sinh says, explaining that the value also society at large: “A collective discussion and a collective of human contact will never be lost. “Ultimately, you’ll get a estimate are far stronger than a small community.” premium on touch, so tech will work in the background, and you divert human resources to focus on touch.” Another discussion point was the concept of ‘glocalisation’ Further information Lausanne Hospitality Consulting – the interplay between a set of standards and services that www.lhcconsulting.com/w2f-event consumers can expect all over the world and the sense of a

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HMI075_Titan.indd 31 10/07/2018 13:33 Special report > Front of house

Front of house is often the most overlooked aspect of a restaurant’s success. With the demand for new staff rising, we investigate the challenges the industry faces in looking to entice new talent, and speak to industry professionals about the changing expectations of diners towards their wait staff.

Fred Sirieix of the Galvin at Windows, prefers a less stuffy Waiting waiting style. for recognition

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arlier this year, Josep Roca, the and beverage operations that really stand which draws on stories from his front sommelier of El Celler de Can out to guests.” of house career, believes it is the latter. E Roca, asserted that a great The 1800s and 1900s saw a succession “Before, top restaurants were few and far waiter is more than a transporter of of different approaches to service: the between; now there are many, but we plates, he is a happiness salesman. elaborate, banquet-style French, the more have also seen a popularisation of He should know. In May 2017, the sequential Russian, the English family- restaurants. At the end of the day, it’s a restaurant he runs with his brothers Joan style service and US service, which saw different way to dress it up, but we are and Jordi in Girona, Spain, was handed food plated in the kitchen before it talking about the same thing,” he says. the Ferrari Trento Art of Hospitality reached the guest. Since that time, the Sirieix refers to what he calls the Award for excellence in hospitality by dining world has witnessed a veritable “obsequious, over-the-top service and Restaurant magazine. revolution in the front of house profession. forced, refined language” in some high- Service – from high-end establishments Recent years have seen a new breed of end restaurants that is starting to change. to select service, and the more recent restaurants emerge, operated by younger, “It is a rejection of this pretension,” he trend of fine casual – has been going entrepreneurial foodservice professionals notes. At heart, good service hasn’t through a period of change. This state who have brought about a new kind of changed. “You want people to greet of flux affects most of those with front of hospitality. Suspicious that the pressed you at the door and make you feel good; house careers, and it’s a complicated white tablecloths only serve to hide you want them to deliver what they picture. Consider the potential health bad quality furniture, they introduced promise; you want good food, on time; risks. In 2015, researchers at Southern uncovered tables, clean lines and a more you want people to be nice and the bill Medical University in Guangzhou, China, relaxed contact with the customer in the to be right at the end of the meal. That analysed the data of more than 138,700 dining room. will never change.” participants from six studies on job- Smith, who now manages the Clove related health. The so-called ‘high Second serve Club trio’s second restaurant, Luca, stress’ category featured jobs that were A good example of this new wave in says the more relaxed manner in their demanding and with low levels of control restaurant service is the Clove Club in restaurants does not mean lower – such as waiting staff. The conclusion, London. Started by three friends – standards. “I want the key components that waiters and waitresses have a 22% Johnny Smith, Daniel Willis and chef to remain the same – an attentive staff higher risk of stroke on average than Isaac McHale in 2013 – the Clove Club that are knowledgeable, friendly and those with low-stress jobs, probably introduced London diners to a new style informative,” he says. “I think in fine surprised few who work in the sector. of service. The kitchen, totally integrated dining restaurants there has been a Add to this an ongoing debate about into the dining room, saw guests seated tradition for it to be a little stuffy. We just tipping, low wages, long work hours and close to the chefs, observing the plating wanted to relax all that and allow the staff creeping automation in the sector, and a and smelling the aromas from the stove. to be themselves.” career waiting tables quickly loses its When it came to service, it wouldn’t be a Of course, it is not just the fine-dining appeal. All these factors contribute to a waiter bringing each dish to the table, sector where service matters. “Good dearth of new staff joining the service but the chef who prepared it. This service is good service, whether you profession in an industry that is set to development, according to Smith, are at The Ritz or a roadside cafe,” says need more educated members of staff in happened in an organic way. Siriex. “It’s when the people you look the future. “Isaac put it very nicely in that, with after know they can trust you. This is Reflecting this increasing need – an the Clove Club, we wanted to build a what a good customer journey in a estimated one million new jobs will be restaurant for our generation; a restaurant restaurant is all about, making sure that created in the leisure and hospitality we would want to visit,” he says. “I people can trust you and they know that sectors by 2024 – from September wouldn’t want to say we had a big you will deliver, no matter what. If there 2018, the Culinary Institute of America impact on London’s restaurant scene, is a mistake it’s recognised, it’s dealt (CIA) will offer a bachelor's degree in but I do think we were one of the early with and we move on.” hospitality management. operators to maybe set that new tone.” For Smith, the experience starts almost “The hospitality business continues The fine food and relaxed service at the point when the diner hears about to expand at a remarkable rate,” CIA combination struck a chord with diners, the Clove Club. “From the moment they president Dr Tim Ryan said earlier this and the Clove Club soon became one of see the website, which is a representation year. “Future managers in this field the hard-to-score reservations in the city. of us, our ethos – how we want to portray need direct knowledge of what they’ll But does this represent a genuine shift, the restaurant,” he says. Once inside the someday be overseeing. The Hospitality or is it merely a case of the dining restaurant he refers to what they call Management major at the CIA will sector broadening? Fred Sirieix, general ‘adaptable service’, “You need to be provide the knowledge and experience manager of the Michelin-starred Galvin able to draw on all your experience and for our graduates to create first-rate at Windows and author of Secret Service: knowledge to try and guess what will be hospitality experiences, and manage food Lifting the Lid on the Restaurant World, best for the guest.”

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HMI075_103_21st Century.indd 33 10/07/2018 12:40 Special report > Front of house

restaurant, in Copenhagen, was working as a chef when he switched to front of house out of necessity – co-founder Rasmus Kofoed was a chef too, and the pair felt they needed one of them to be present in the dining room. “I had no idea what it was like front of house. I thought a waiter was just somebody who took my beautiful food and put it in front of a guest – that was their job. But I found out there is so much more,” he says. “Front of house can change the experience for a guest, for better or worse. You can go to a restaurant and have the best meal ever, but if you have terrible service you leave the restaurant with a bad experience. "On the flipside, you can go to a restaurant and have a mediocre meal but experience amazing service and you’ll remember that meal for a long time.” Valverde says he has made a conscious decision to build his profile. Last year, he published Host, a book chronicling his life in service and his experiences in top restaurants. “We have always lacked these reference points in our trade – it is very easy to see the big chefs but much harder to notice big service directors. I think we need to be the reference points and show people who are looking for a career that this is a wonderful choice; you can have so many opportunities and work options in this profession,” he says. “There is a demand, the work can be very well paid and, if you get the education, are dedicated and learn languages, you can go very far.” Søren Ledet, co-founder and wine director at the triple Michelin-starred star Geranium in So what of the golden rule that the Copenhagen, Denmark, started as a chef, but switched to front of house. customer is always right? “Does the Getting the servers back up “If the same food is offered in two fact that you pay the bill give you the The Michelin Guide famously states different restaurants, one with bad right to everything?” asks Valverde. The that it judges restaurants only on the service and one with good service, the customer, he notes, was always right in food; service does not factor in the star diner will go for the restaurant with times when people had servants, but rating from an inspector. “I can verify good service. The food might be cooked just as service has evolved so has the that and I know this is true,” says with all the love in the world, but if the dynamic between server and client, Abel Valverde, maître d’ of two-starred service is bad the whole experience reflecting mutual respect. Santceloni restaurant, housed within loses its value.” “The fact that you pay the bill Madrid’s Hotel Experia. Despite its vital importance, fewer gives you rights, but it also carries “Should service be more prominent in people are applying to work in front responsibilities,” he says. “The customer the rating? Yes, I would possibly give it of house positions, despite the sector is right – until he isn’t.” a bigger role. But the service and the growing. While the profile of chefs has space are already represented in increased, service staff have received This article was first published in separate ratings in the Michelin Guide, less attention. Søren Ledet, the FCSI’s Food Service Consultant we tend to forget that. co-founder and wine director of Geranium magazine; visit www.fcsi.org.

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HMI075_103_21st Century.indd 34 10/07/2018 12:40 Regional focus > North Africa Spring forward The Arab Spring put a big dent in North African hospitality, with regional visitor numbers and investment opportunities tumbling. The situation has drastically improved over the past few years, but the region has not simply reverted to business as usual. Andrea Valentino talks to experts from across North Africa about how operators are pivoting towards more luxury offerings, and the importance of state support when opening new hotels.

or years, the Riu Imperial the bombing of a Russian airliner at since its records began, W Hospitality Marhaba, near the Tunisian resort Sharm El Sheikh to an attack on a Tripoli reported that sub-Saharan countries had F of Sousse, was popular with hotel popular with foreigners, the violence more new rooms pipelined than their tourists. There was plenty to keep them felt without end. North African competitors. Speaking at the busy: they could try local food at one of the Combine these tragedies with the wider time, one analyst noted that sub-Saharan many restaurants, or indulge in a body mayhem of the Arab Spring, and Africa enjoyed the “virtuous circle of treatment at the thalassotherapy centre. it is unsurprising that this decade has – cessation of conflict, economic growth and But one day in June 2015, the killing superficially at least – been so tough on investor confidence”. He hardly needed to began. Over the next 75 minutes, an North African hospitality. In 2013, only add that the Arab countries to the north Islamist gunman killed 38 people, making 9.4 million tourists visited Egyptian hotels, were plagued by political turmoil and it the worst terrorist attack in modern compared with 14.7 million in 2010. weak business prospects. Tunisian history. The following year, total tourism Coming just after the massacre at the revenues in the country slumped by 54%. Reasons to be cheerful Bardo Museum in Tunis, where 24 people Tunisia suffered a similar drop. After But as the region emptied out, the perished, it felt as if the government was the attack at Sousse, tour companies essentials of North African hospitality were helpless to protect either its own people cancelled trips to the country, cutting the less dreadful than the headlines suggested. or foreign visitors. One year on, the Riu number of British visitors by nearly 90%. Even during the worst of the downturn, Imperial was deserted, and ultimately These pressures also squeezed new Egypt and Morocco both pipelined more closed. Not that Tunisia was alone: from hotel projects. In 2014, for the first time hotels than any other African country. Sub-

Egypt's Hilton Cairo Heliopolis is among those hoping for a return to pre-2010 visitor numbers.

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HMI075_104_North Africa.indd 35 10/07/2018 12:42 Regional focus > North Africa

Fairmont Royal Palm, Marrakech; Morocco is at the vanguard of the North African recovery.

Saharan Africa had a bigger overall total, that resorts like Djerba or Essaouira are Mediterranean, meanwhile, travellers but 49 countries were competing with just so close to London and Paris, particularly contributed 64.4 billion dirhams [£508 five along the Mediterranean coast. compared with most distant destinations million] to the Moroccan economy in “Things slowed down during the Arab further south. “North Africa has very good 2017, a 6.6% increase on the year before. Spring, but they did not come to a halt,” proximity to Europe,” explains Mohab None of this would be possible without summarises Trevor Ward, principal at W Ghali, the Egypt and North Africa vice- security. As Ward notes, hoteliers have Hospitality. “The regional hotel industry is president of operations at Hilton. “This “long memories” and would not back very mature.” really helps us, moving forward.” investments if they could not ensure their Like Ward, Middle Eastern vice- These advantages have allowed North guests’ safety. Happily, North African president of development at AccorHotels Africa to bounce back. Last year saw a states have been working hard to Jean-Baptiste Recher credits this revival total of 23,836 rooms pipelined across the reassure them. Security at Egyptian to the longevity of North African region, up from just 18,000 in 2013 and airports is much improved, while Tunisian destinations. History is one draw. “When a 16% rise on 2016. Top Hotel Projects spies train with their experienced UK I was a kid, it was my dream to go to found that Morocco was doing especially counterparts. These efforts have paid Egypt,” he says. “People still dream about well, with 47 projects planned or under off – tour operators, long the bedrock of it now. You cannot duplicate the Pyramids construction. For its part, Accor has 21 regional hospitality, are now returning to anywhere else.” hotels pipelined in North Africa, including the region. Thomas Cook restarted trips Ward agrees, adding that from the 12 in Egypt and five in Morocco. Hilton is to Tunisia in February this year. tumbledown elegance of the Marrakesh just as bullish, with 5,000 new keys in medina to the ruins at Carthage, North development from Sinai to the Atlantic Climate of safety Africa has “history in abundance”. over the next seven years. Add the healthy development situation to Natural beauty is another magnet. The construction boom is shadowed the improved security and it is tempting White beaches and coral reefs will always by strong visitor numbers. “Are we to think that regional hospitality can return be popular, especially if visitors can get recovering to pre-2010 levels?” asks to its pre-2010 boom days basically an adrenaline fix before resting by the Ghali. “No. But the region is doing great.” unchanged. But even before the Arab pool. “People want experiences,” Ward In particular, he cites the “excellent” Spring, hoteliers started ditching package says. “Tourists want to know that there figures from his native Egypt, noting that tourists, pushed in part by competition are things to do, like extreme sports, or tourism in the country grew around 75% from the very operators they once relied the other things you see on CNN.” It helps last year. At the other end of the on. “A few years ago, you could book an

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As the Tunisian Open Sky agreement The pool at Hilton Luxor Resort & Spa in Egypt, which is still a major tourist destination. hints, North African operators rely on politicians to help refocus their operations. If flight regulation is one area of cooperation, capital investment is another. Saudi and Emirati oil money still flows in, but local governments have begun funding new builds, too. For example, land for the Fairmont Pyramids was provided by the Egyptian ministry of housing. Further west, Tunisia recently passed a law that makes investment regulations simpler, part of what Faceh calls a “strong willingness to relaunch tourism” in the country.

Political fallout At the same time, the importance of having government onside is starkly demonstrated elsewhere in the region. It all-inclusive trip to Tunisia from Paris for Apart from making operators might be home to fabulous Roman ruins €300 for a week,” says Reda Faceh, VP money, these shifts fit changing and azure coastlines, but laws limiting development for northern and western visitor demographics. New ‘open sky’ foreign ownership make Algeria a Africa at AccorHotels. “Thanks to this agreements are connecting low-cost “difficult” investment spot, Faceh says. mass-market strategy, the average room airlines to North African airports, allowing For Trevor Ward, the most tragic regional rate was very low. As you can imagine, our European visitors to save on ticket costs symbol of bad governance is Libya. “After hotels could not survive with these prices.” and splurge on accommodation. the revolution, it could have been a new Faced with all this, Faceh and his The Tunisian Government signed just destination,” he admits, “but everything colleagues have changed tack, swapping such a deal with the EU in late 2017, went sour.” Political anarchy has made it mid-range brands, such as Novotel and while the Egyptians have talked of joining impossible for the country to “get itself into Ibis, for more upscale offerings. Because up for years. the tourist psyche”. costs are so high, and room prices Reda Faceh saw how transformative Ward has similar thoughts about some frustratingly low, building four and five- these treaties were when he worked sub-Saharan countries. If the Arab uprisings star luxury hotels “makes more financial for Accor in Morocco. “We had some let them temporarily push ahead of their sense,” he says. With one Fairmont high-end clients coming to Marrakesh North African neighbours, bureaucratic opening in Rabat, and a second planned from Britain, flying with low-cost lethargy limits their potential. “Nigeria? It near the Pyramids, Accor is clearly taking carriers,” he remembers. has a lot of things to fix before it can be a these adjustments seriously. “We have a Given they were staying at the local major tourism destination.” Chaotic full team to look at the specificities of our Sofitel, a luxury Accor brand, Faceh infrastructure is top of the list, next to an luxury hotels,” Recher adds. “This covers imagined they had flown British Airways. illiberal visa regime. Reda Faceh comes to food and beverage, revenue management, In fact, they had decided to rough it. the same conclusions, explaining that marketing and sales.” “They told me they chose low-cost before operators risk major investments in Hilton is moving in a remarkably similar airlines because Marrakesh had become West African countries such as Benin or direction, overseeing the renovation of a short break destination,” Faceh Senegal, they will demand “strong support” two smart hotels in Cairo. One, in a leafy explains. “They wanted to save money from government institutions. district of Cairo east of the Nile, is a and spend longer in a better hotel.” In the meantime, North Africa needs Waldorf Astoria. Nor is the operator Faceh believes Tunisia could go the stability if it is to remain top of the pile, stopping there. From 2022, for example, same way, luring sophisticated tourists on never a given in that part of the world. Rabat will house a new Hilton, built with the promise of cheap flights and stylish Just as the 2010 revolutions exploded the easy access to a shopping mall and Zaha hotels. “Tunisia has a great place on the old certainties about regional hospitality, Hadid-designed theatre. Mediterranean coast,” he emphasises, another revolt, or simply more militant Not all Hilton projects are so extravagant. adding that open sky agreements could attacks, risk knocking Egypt and Tunisia Visitors to Ain Sokhna, a resort on the “completely change” tourism in the back again. But for now, the essentials Egyptian Red Sea coast, will soon be able country. “It will allow us do more direct seem strong. Tourists are coming back to to sleep at a midrange Garden Inn Hilton. sales through the web, and switch from the region, even if the hotels they stay in But the direction of travel is clear, Ghali the mass market to an upscale offering, are changing and past terrors are never says,“We are focusing on five-star hotels.” just as Morocco has done.” quite forgotten.

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HMI075_104_North Africa.indd 37 10/07/2018 12:43 Insight > Design © Mathieu Fiol The odyssey continues From its establishment in 1910 to its closure for renovation four years ago, the history of the Hôtel Lutetia has been synonymous with the history of Paris. Now, after extensive restoration and renewal overseen by architect and designer Jean-Michel Wilmotte, the hotel prepares to take back its place in the mythology of the City of Lights. Grace Allen explores the renaissance of an icon of the Left Bank.

n 1918, Pablo Picasso and his and creative spur, the poet Joyce would provoke fights before pushing new wife, the ballet dancer Guillaume Apollinaire. the brawnier Hemingway into the fray. I Olga Khokhlova, moved to live The hotel hosted James Joyce 21 Just a few years later, the hotel played in the Hôtel Lutetia, situated on the years later as he finished his masterpiece, a role in the Nazi occupation of Paris as bohemian Left Bank of Paris. It was Ulysses. Ernest Hemingway occasionally the headquarters of military intelligence, here, working on a self-portrait, that acted as his editor, and the writers were the Abwehr. After the liberation of the he learned of the death of his friend drinking – and brawling – companions: city, it became a repatriation centre for

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HMI075_106_Hotel Lutetia.indd 38 10/07/2018 12:48 Insight > Design

prisoners of war and concentration camp © Mathieu Fiol survivors. Juliette Gréco was one of the many who returned to the hotel day after day in search of her family. The weight of history is heavy on Hôtel Lutetia – and this is before considering its musical heritage, with past regulars including Josephine Baker and Serge Gainsbourg, or its role in the fashion of the overblown eighties, when Sonia Rykiel based a boutique in the hotel and redesigned the interior. It’s something that architect and designer Jean-Michel Wilmotte is acutely aware of; his company, Wilmotte & Associés, has undertaken the Lutetia’s restoration for hotel group The Set. “Our challenge was to rejuvenate a place The Hôtel Lutetia's position on the Left Bank of Paris guarantees beautiful views. while respecting its roots, its identity, its originality and its personality,” he says. The same cannot be said of the later Light fantastic Art deco on the turn interior furnishings, however: a palimpsest The alteration and renovation of the Architecturally, too, the Lutetia is of history sold off at the beginning salons on the ground floor, where significant. The only grand palais on the of the restoration process, and famous writers, artists and musicians Left Bank, it was built in 1910 by the rooms – such as the Arman suite – are congregated, is a central part of Boucicaut family to accommodate out-of- gone. “Successive stages of refurbishment, Wilmotte’s endeavour to restore town shoppers at their department store, and especially a stratification of initiatives the glories of the Lutetia’s past Le Bon Marché. Designed by architects by architects, interior designers and atmosphere. The open-air garden Louis-Charles Boileau and Henri Tauzin, decorators, caused her to lose her allows natural light to enter the spaces the hotel is often characterised as a personality,” Wilmotte says. around it – the Orangerie, to be used witness to the stylistic transition from art The preservation of relics from the as a breakfast or conference room; the nouveau to art deco. Lutetia has, seemingly, focused on the Salon Saint-Germain, a glass-roofed Constructed in a period of hotel’s 1910 iteration, but a commitment lounge and restaurant in which art experimentation following the relaxation to retaining a memory of the hotel’s deco influence is particularly strong; of Hausmannian building regulations, many-sided past does remain. “There and a comfortable library. the facade swells outwards from the is the full history of the place, built over The rediscovered ceiling fresco is the pavement and is decorated with foliage more than a century, and then there is a highlight of Bar Joséphine, a tribute to and vines carved by sculptor Léon Binet. second layer of history that overlaps the dancer, resistance hero and civil rights Nevertheless, these art nouveau features first one, from the '60s and '70s, when the campaigner Josephine Baker, which are far more restrained than the kickback hotel was the HQ for artists, the place will offer canapés and cocktails. The curves of the style’s heyday. The windows where they would spend the night – Brasserie Lutetia’s cuisine will be are neatly symmetrical, and Wilmotte their second home. Artists and fashion overseen by Gérald Passedat, whose points to the presence of a motif of designers alike. We are trying to restaurant in Marseille, Le Petit Nice, overlapping circles, a signature art deco resuscitate all that,” Wilmotte says. holds three Michelin stars. element that he has echoed in the design Wilmotte’s intent has been to capture Wilmotte hopes to bring the of the hotel’s interior. the Lutetia’s true identity as a grande dame literary, bohemian inhabitants of Respecting the hotel’s original features with a place among Paris’ most storied and the Left Bank back into the Lutetia’s has been at the core of the renovation. luxurious hotels. The number of rooms has salons. “Typically, he or she would “We have cleaned up everything been reduced from 233 to 190, creating probably be a book publisher from that was out of memory and highlighted the space appropriate for a location that the neighbourhood,” he says, perhaps everything that conveyed some of it,” has hosted Charles de Gaulle and Peggy imagining a latter-day Sylvia Beach, the Wilmotte explains. He described the Guggenheim; the Brasserie’s double-height founder of bookshop and lending library discovery and restoration of a fresco ceiling has been restored; and Wilmotte has Shakespeare and Company (originally hidden under layers of paint, and the created a garden courtyard in the centre of located on Rue Dupuytren, a short walk highlighting of original friezes and the hotel, “because it was one of the only from the Lutetia) and publisher of the bas-reliefs that had become lost to view. Paris Grand Hotels that didn’t have one”. controversial Ulysses.

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the bathrooms with screen-printed glass. The other design motif is the overlapping circles identified in the building’s facade, now repeated in wall sconces and in decorative elements in the bathrooms, furnished in white Calacatta marble; the two combine to produce a modern interpretation of the regular, pure lines of art deco. The carefully realised design is further emphasised by the precise use of lighting, and particularly the interplay between natural and artificial light – a feature of many Wilmotte & Associés projects. All the rooms have a window, and this combines with spotlights to highlight three- dimensional elements on walls, panelling and window casings. Recurring elements are played upon – some light fixtures project stripe shadows, others recall the overlapping circles found on the Lutetia’s facade. “Lighting is a leading factor in the comfort of a place,” Wilmotte says. Natural light also illuminates the new swimming pool in the Akasha Holistic Wellbeing Centre, where a consistent decorative theme is played out in Calacatta marble with navy blue touches, circular skylights and wall fittings. © Mathieu Fiol The required standard of a palace hotel means that as the Lutetia seeks to recall its past, it must also offer its guests the luxury of modernity. “Another critical side of the project was technology,” Wilmotte states. Architect Jean-Michel Wilmotte believes lighting holds the key to making guests feel comfortable in a room. Integrated technology in the rooms The art nouveau and art deco origins of lines are also reminiscent of mid-century is managed from a dashboard, while the hotel have been respected in modern styles – a period in which the soundproofing counters noise from the an appreciation for fine materials and Lutetia was a centre for Parisian jazz. street and other rooms, and functions such individual craft, a hallmark of both artistic This visual referencing of numerous as air conditioning have been improved. movements. Artists Jean Le Gac and points in the hotel’s history is also found All in all, Wilmotte hopes that the Lutetia’s Fabrice Hyber have been commissioned in the use of polished wood panelling visitors, from the Left Bank and further to produce original pieces for the hotel, throughout the circulation spaces. afield, will find “an experience that no other “just like in the old days”, Wilmotte says. “1910 was the time of the big Paris hotel will ever be able to offer”. All the new fixtures and fittings, from transatlantic adventures. Our idea was This hotel is much more than a place to lighting to door handles, have been to draw in some of the atmosphere from stay, and it has a resonance that stretches custom-designed – the same goes for those big old yachts,” Wilmotte says. In far beyond Paris. In the Guggenheim in the furniture. “We fought throughout addition to classic sailing yachts, polished New York, for instance, you can find a 1911 the entire project to avoid ending up panelling featured in the ocean-going study by Marcel Duchamp for his Portrait with standard furniture from a catalogue.” cruise liners of the '20s and '30s, which of Chess Players sketched on stationery Wilmotte claims the inspiration showcased French art deco design. marked ‘Hôtel Lutetia’. This significance for the furniture came from the early is understood by Wilmotte. “I believe that 20th century. “It feels like a dialogue is Design motifs people from the neighbourhood will easily beginning between restored traces of the The use of wooden panelling continues in get accustomed to their favourite address past, recreated new elements and these the Lutetia’s rooms, here tinted in shades again; tourists will discover something brand-new 1910-style inspired pieces of of sand or navy blue and carved in ridges genuinely new; and the dream of the furniture,” he says. The unfussy, low-slung that create stripes, a design continued in Lutetia will start again.”

40 Hotel Management International | www.hmi-online.com

HMI075_106_Hotel Lutetia.indd 40 10/07/2018 12:49 Insight > Guest amenities Welcome to the new wellness Hotels are making it easier than ever before for guests to tap in and get their health fix. Elly Earls meets Hilton’s Melissa Walker, Chiva-Som’s Dr Jason Culp and spa consultant Kathryn Moore to find out how.

icture the scene. You’ve just “It’s about creating that larger able to indicate what type of music you enjoyed a delicious, healthy platform where everything is want in your treatment room and what P lunch and, en route to the connected to human wellness and scents you want to experience, being greenery-bedecked spa, you’re bringing that all together,” says able to pick the temperature of your mentally running through the list Melissa Walker, director of global room, pre-select your therapist and let of preferences you entered into the brand wellness at Hilton. them know if you’ve hurt your back hotel’s wellness app a few hours “We’re focused on making sure we or what pressure you’d like for your ahead of your treatment. Music? deliver programmes and spa menus massage,” Walker says. Check. Scent? Check. Previous that play into that larger narrative of The app the group is developing shoulder injury? Check. Desired being well all the time, rather than just will not only let guests book and pay for outcome? Check. focusing on two weeks out of the year.” their appointments, but also select their When you emerge, rejuvenated, from preferences ahead of time. your (locally inspired) massage, you Getting personal “Traditionally, you’d fill out a paper might go for a yoga class, or spend the As ‘being well’ is different for everyone, form, but that doesn’t give your rest of the afternoon lounging by the more hotel groups are starting to use therapist a lot of time to visualise what pool with a pina colada. technology to try and personalise the kind of experience you’d like and what Either way, you’re secure in the wellness experience for each guest. kind of energy you’re looking for,” knowledge that, whether you’re in the At Hilton, this will – eventually – be Walker says. hotel’s traditional wellness space or realised through an app. not, everything – from the menus to “We really think customised the quality of the light and air – has experiences are key to people – being been designed with wellness in mind. able to schedule an appointment, being

Thailand's award-winning Chiva-Som resort.

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The Pavilion at Chiva Som offers tranquility in Thailand.

Personalised wellness experiences also lead to better results, says Dr Jason Culp, a leading naturopathic doctor and head of research and development at Chiva-Som, an award- winning holistic wellness resort in Thailand. At the same time, wearable technology and biometrics now mean it’s attainable for everyone. “The spa and wellness industry has been taking advantage of this trend by using devices to evaluate sleep, stress levels, stress-coping skills, cardiovascular fitness and even caloric tracking for sustainable weight loss,” he explains. “These measurements induce self- participation and empowerment in one’s own wellness journey, and The Chiva Som bedrooms promote relaxation. through the collection of data from clients you can assess whether their training and consultancy company Spa aimed at families and groups of friends wellness programmes, therapies and/or Connectors. She says more travellers – is a case in point. “The spa concept services are effective in promoting are looking for experiences through is all about challenging the status wellness or at least accomplishing which they can either learn something quo,” she says. “The point of going in what they are meant to do.” about where they are or rediscover or there is to push your own boundaries.” even challenge themselves. On top of massages, options for Pushing the boundaries One of her most recent projects – the guests will include bouncing on the Kathryn Moore is the founder and spa at Carpe Diem Beach Resort & Spa, trampoline, lying in the foam pit, managing director of recruitment, a soon-to-open hotel in the Maldives sliding into the ocean, receiving a

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treatment while hanging in an aerial fitness people need to go to one side of the muscles, while a spa helps relax yoga swing or getting their colours the hotel and the spa people need to go and release muscular tension,” he says. done. “We want people to go in there to the other,” Walker says. “One modality alone can provide and come out feeling like they’re a different person,” Moore says. The first thing we always suggest is to do your More traditional wellness destinations such as Chiva-Som are market research – know your competitive set, also focusing more than previously on know who is coming to stay in your hotel and self-discovery. “We have a wide array create a concept based on that. Don’t just do of therapies for promoting optimal emotional health, including movement wellness for the sake of doing wellness. therapies and reflective therapies," – Kathryn Moore says Culp. "Although mental and emotional “Our job is to create that continuum significant health benefits but multiple health are incorporated into all of our and connection so that each guest modalities combined can enhance retreats, we have also developed two decides what they need and we make these positive effects.” that focus primarily on emotional it easy for them to access that.” Beyond spa and fitness, wellness health – natural renewal and emotional Hilton is also working on changing is increasingly being integrated into well-being," he continues. the story around spas. “They’re not every aspect of the hotel experience. just places to go and pamper yourself. Westin, with its six pillars of wellness Changing the spa story They’re needed for self-care; this is – feel well, work well, move well, eat The spa and the gym have traditionally part of being well,” Walker explains. well, sleep well and play well – is one been two separate spaces, but there’s More than that, Culp adds, spa and of the best examples. a move within the hotel wellness space fitness are a great example of a “They want you to be able to travel to bring them together. “It’s not our complementary relationship. “Fitness well,” Moore says. “It’s not a case of place as operators to decide that the helps with toning and strengthening getting in at midnight and the only

Boca Raton Resort's spa in Florida is one of the most luxurious in the US.

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option being a club sandwich. You can “The external environment has a trends is that not everything will work also go to the 24-hour gym. major impact on one's health, which in every hotel. "It’s about accessibility and making it is why it must be considered in “The challenges hotels face are as easy as possible for people to tap in designing ‘wellness spaces’,” Culp different for each region; there’s no and get their wellness fix.” agrees. “Some spa and fitness blanket solution for all,” she says. Architecture also plays a role in areas have gone so far as to fully “It’s very important that when you wellness. “There isn’t anything more incorporate vegetation in the gym look at trends, you’re looking at the important than designing the space from and therapy rooms, surrounding the trends for where you are and who’s the inception of a new project and client in nature throughout their coming into your hotel. What do they pulling in all the wellness elements from wellness activities, but even colours actually want? an infrastructure standpoint – such as and sounds have the ability to “The first thing we always suggest is natural light, the inclusion of biophilia stimulate or relax.” to do your market research – know your and also the air quality and outdoor According to Moore, the problem competitive set, know who is coming to spaces,” Walker stresses. with talking about general wellness stay in your hotel and create a concept based on that. Don’t just do wellness for the sake of doing wellness.”

Sustainability Identifying the right trends The spa concept for the five-star InnovationSatisfaction Mövenpick Hotels Apartments in Downtown Dubai, for example, Quality couldn’t be more different to its counterpart at the brand’s Bali resort. “In Dubai, we only had 200m² and, after running the numbers alongside the market research we did, we created a salon/spa hybrid concept. We maximised every square metre to generate revenue and guests will be able to have multiple treatments at once,” Moore says. “In Bali, we came up with an indigenous Indonesian concept featuring treatments from different islands across the archipelago. "We wanted to do something different and wanted guests to be able to learn something rather than just having the usual Thai, Balinese and Swedish massages.” Fragrances for steam Sauna, spa and wellness Cleaner / conditioner baths, saunas, whirl- technology: Technology for for sauna, spa and Culp says it’s also crucial to pool, hot tubs and experience showers, saunas, wellness facilities. evaluate the longevity of a wellness experience showers hammam, steam baths and Disinfectant and cleaner trend before thinking about rhassoul, dosage systems, for whirlpools and Jacuzzis implementing it. inhalation systems, light technology “We first identify its fundamental goal and then ask whether it Kemitron, is manufacturer of high-quality products for the spa-, sauna-, and surpasses what’s being done already wellness market (technology, fragrances, cleaners, cosmetic). The company’s and, if so, in what way does it add to focus is on best quality and workmanship. All items are “made in Germany”. the well-being or our clients. Kemitron’s products are sold on the international spa and wellness market and can be purchased via our webshop on our homepage. www.kemitron.com "Lastly, we ask whether the benefits are sustainable for our clients,” he explains. “If we are unable to discern E-Mail: [email protected] Telefon: + 49 (0) 70 24 / 9 50 60 any additional or sustainable benefits www.kemitron.com to the client, we will reject the trend, even if it’s considered the latest fad in the industry.”

Kemitron.indd 5 24/05/2018 14:44

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HMI075_105_Spa.indd 44 10/07/2018 12:47 Insight > Security Keep calm and carry on Two years ago, tourists stayed away from Paris, Istanbul and Nice after a series of deadly attacks, but the European hotel market recovered swiftly after more recent incidents. Greg Noone talks to Thomas Emanuel, director of business development at STR, and Mehmet Önkal, managing partner at BDO Hospitality Consulting, about how attitudes towards the risk presented by terrorism have changed.

hen the sirens had stopped, knife, would fail, because of what would visit. The latter group is always more the debris been swept away happen tomorrow, and the next day, and fickle, simply by dint of the options W and the bridge reopened, the the one after that. The Thames would available to them – if they perceive a panegyrics began. London was resilient, flow and the tube would run. London destination to be dangerous, they can said the police, the politicians and the would endure. cancel or reschedule their trip. Tourist columnists; it had seen this before and There were two audiences for this numbers often take several months, had seen off worse. Those who sought rhetoric: those that lived and worked in sometimes years, to recover. Gradually, to inspire terror, by bomb or bullet or the UK capital, and those who intended to the city’s landmarks will seem a little

Floral tributes left at London Bridge, scene of a deadly terrorist attack in June 2017..

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of supply growth. It wasn’t because rates or demand were down. We didn’t see an impact as soon as the concert ended.” This pattern was not confined to the UK. As Emanuel noted in a report for STR in May, RevPAR increased in cities that had suffered similar attacks at a quicker pace than anticipated, including Berlin and Barcelona, both of which had seen upswings of 3%. His conclusions? Tourists have begun to accept these types of attacks as a fact of life. “I think they’re becoming more stoic, and less likely to change plans as a result of a terrorist attack,” says Emanuel. This new reality lies in stark contrast to hotel performance in 2016, after a series of incidents in Paris, Brussels, Nice and Istanbul. “We saw [RevPAR] double- digit declines in those earlier terrorist attacks,” says Emanuel, which in almost all cases were the first of their type on European soil. “If you think about the attention that some of those earlier attacks got versus… for example, the Berlin attack, it was very different.” One case study even enables us to quantify the impact a terrorist incident might have on a destination’s hotel industry compared to other factors. The Daesh-inspired attack on Las Ramblas, Barcelona, in August 2017 that left 131 injured and 15 dead did little to diminish its popularity with tourists. “Barcelona was having an incredibly strong year,” explains Emanuel. “We had the August attacks. August, September: no impact [on RevPAR].” Then came the Catalan independence While some European cities have weathered terror attacks with no signi cant effects on RevPAR, referendum. For weeks, reports of chaotic Paris has suffered a double-digit decline following the events of 2015 and 2016. political demonstrations flooded news quieter, the hotels a little emptier, by was shot dead by armed police within outlets, with many wondering whether which point a victory of sorts is conceded minutes of the start of the assault. the region’s separatist government would to those who sought to instil terror in the attempt to break away from Spain. first place. Business as usual The impact on the hotel industry in Many would be forgiven for thinking The impact on tourism in London was Barcelona was substantial: a sustained the same would happen to the UK capital much as expected: a small dip in visitor double-digit decline in RevPAR. “That after the London Bridge attack. On a numbers. What followed was more indicates a far bigger reticence for hot June evening last year, a white van surprising. “The following week, London people to go to a market because of mounted the pavement and ran over was still busy,” says Thomas Emanuel, political unrest than a terrorist attack,” three pedestrians, before crashing in a director of business development at STR. A concludes Emanuel. nearby street. similar trend was observed in Manchester, Paris and Brussels, however, seem to Three men jumped out of the vehicle, after the bombing of an Ariana Grande be the exception to this new rule. Hit each carrying 12in kitchen knives, concert the previous month. The city by several mass shootings and suicide before proceeding to slash and stab “was down ever so slightly last year”, bombings in 2015 and 2016, both cities anyone they could find. Each attacker says Emanuel, “but that was all because saw significant and prolonged double-

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digit declines in RevPAR. However, there figure out which step did the most because of people [visiting] from the are signs that recovery is imminent. damage. “The market was already in Middle East,” says Önkal. This pattern “Markets like Paris, like Brussels, they trouble,” says Emanuel. “We were seeing has continued to persist this year, he have multiple demand drivers,” says significant double-digit decline across says, excepting the holy month of Emanuel. “People always want to visit Turkey, Istanbul and the resorts.” Ramadan, when Muslim tourists stayed them from a leisure perspective. They have Önkal disputes the idea that political home. “We expect [them] to come back strong corporate business, as well. They instability was an issue for tourism in the again,” says Önkal. have the ability to hold large conferences first place. The major contributory factors Indeed, the developer is so confident and events, too. So, the demand drivers for were terrorism and foreign policy, he says: that things will return to normal for those markets remain.” you can’t say a country is politically the Turkish hotel industry that he has The hotel market where the pace unstable if it’s had the same government begun thinking about the next problem: of recovery has been most profound, for a decade and a half. diversification. Turkey has already however, lies on the other side of Europe. “Foreign policy, that is something else,” benefitted from this to some extent, Turkey saw the number of visitors to says Önkal. In 2016, Russia and Turkey welcoming new visitors from the likes of Istanbul and its coastal resorts dip almost came to blows after one of the Iran, Iraq and Ukraine. significantly after a spate of terror former’s jets was shot down by the latter attacks, not to mention a coup attempt on its border with Syria. Increased diversity that saw armed confrontations between In response, Moscow resorted to the One market, however, has remained sections of the country’s military and its softer retaliatory measure of banning its particularly elusive. “About 15 years a civilian population. tourists from visiting Turkey altogether. go, our sister company, BDO France, From 2017 onwards, though, the number “This created a big problem, in addition was having an annual get-together of of visitors to Turkey began to recover; to the military coup attempt,” says Önkal. contractors, hoteliers, press, consultants, according to Thomas Cook, package Resorts on the Black Sea immediately and invited me,” says Önkal. holidays to the country are now up by as suffered, with visitor numbers sinking by He remembers in particular one meeting, much as 84% compared with last year. up to 92%. “But our president [Recep the first hour of which was devoted to a dry Stakeholders like Mehmet Önkal at BDO Tayyip Erdogan, the prime minister at the discussion about occupancies and average Consulting are predicting that, by this time] and the Russian president, they rates in the French hotel industry. The time next year, the Turkish hospitality solved this problem.” second hour was on Chinese tourists. market will have reached new heights. “I was recently in the Antalya region, We saw five separate terror attacks in Istanbul and I saw that, the activity is really in 2016, and then a big nightclub shooting on very high there,” says Önkal, who was conducting work for resorts in Kemer and 1 January 2017. And in the middle of all of that Belek. “‘The crisis hasn’t been here, really, was the coup attempt against Erdogan. like it has been in other parts of Turkey." – Thomas Emanuel In Istanbul, the difference was clearer. The queues to sites like Hagia Sofia are One apology later, and Turkey’s Black “They talked about China: ‘They’re returning, and any notes of concern about Sea resorts – so dependent on custom going to be open to tourism, they’re going occupancy in the city has faded. “I haven’t from Russia – are flourishing once more. to visit the world, they’re going to come to heard anything adverse about the Old City In fact, according to Önkal, it is almost France,’” recalls Önkal. The French, he says, [or] the Çatalca peninsula,” says Önkal. exclusively thanks to action taken by the “started thinking about that 15 years ago. “They’ve been very active.” government that the Turkish hospitality We still have not done anything about it. Assessing how much of that previous industry has recovered. The industry itself We sit and wait.” reticence among tourists was down has done relatively little. Markets like Turkey – and, indeed, to fears about political instability is “They haven’t acted together,” says the UK, France and Germany – seem wwdifficult, says Emanuel. “We saw five Önkal. “They have been looking for the to always have been able to plan ahead, separate terror attacks in Istanbul in 2016, state to do things for them, rather than with the luxury of multiple demand drivers. and then a big nightclub shooting on 1 themselves trying to do something, rather This has not been the case for countries January 2017. And in the middle of all of than getting organised to do something.” lying just beyond Europe’s border. that was the coup attempt against Whatever the case, the immediate future “I think there’s still more reticence, I Erdogan [then prime minister of Turkey.]” for the Turkish hospitality industry looks think, for people from Europe travelling to Any attempt to factor in how much bright. British and German tourists are northern Africa,” says Emanuel. “Egypt and the image of tanks facing off against returning in greater numbers. Tunisia will take longer to come back.” protesters contributed to the image of Newer arrivals have also played their Perhaps a recovery there will prove Turkey as a destination to avoid is like part. “Istanbul hotels did very well during to be the final proof that attitudes have falling down a spiral staircase and trying to the crisis period in terms of occupancies truly changed.

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p148hmi.indd 1 10/07/2018 10:13 Insight > Food & beverage

Market to millennials In an age of lifestyle hotel brands and affordable luxury, select service is all the rage, but what does this mean for the future of the hotel restaurant? Neil Thompson meets Michael Butler of Hyatt International, Generator Hostels’ Gui Jaroschy, and Amir Nahai of AccorHotels to discuss what operators must do to meet guest expectations in terms of choice and convenience.

ot too long ago, almost by older generations, especially regarding and learning around the chef, learning definition, select service how they decide where to eat in the about the mixologist, and so on. Then, N meant very little food and first place. once they arrive, they really pay more beverage (F&B) services. But all that “Millennials definitely discover [food attention to the total experience in has been changing in recent years differently to older people], primarily on several ways. thanks to the rapid evolution of the Instagram,” says Amir Nahai, CEO for "They want to take pictures and select service space. With the social F&B at AccorHotels. “It has definitely share it all: the dining space, the music, and lifestyle elements of a number of become one of the more dominant media the art on the walls. All of that is new brands being very much at the for the discovery of food and beverage hugely important and part and parcel fore, the segment has begun to see a for millennials and others, but especially of the [dining] experience for them.” more diverse range of F&B offerings, for this age group. They'll go [find food The new relationship between many specifically targeting – or at least outlets through] Instagram, bloggers younger hotel customers and attuned to – millennial guests. who write about F&B, and so on.” technology has forced select service “When millennials and Generation Z brands to reconceptualise their food Millennials do F&B differently think about [eating out], they plan a and beverage offerings. Nahai stresses Technology remains the biggest factor holistic experience,” Nahai continues. that the same change in the discovery to highlight the differences between “There’s the exploration that goes on process has gradually crossed over to today's younger travellers and the beforehand, like going on Instagram all age groups, as developments such

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HMI075_108_Select.indd 49 10/07/2018 12:53 Insight > Food & beverage

Jo & Joe Hossegor; a millennial-focused Hotel in south-west France.

as smartphones and social media have of those same technologies – some of interests and desires," says Gui matured from things used by teenagers which we are trialling right now – altering Jaroschy, Generator Hostels' director of into mainstream, everyday life. how a hotel F&B service operates," he says. food and beverage development. "We're However, he still believes that the shift "It is possible to go into a hotel restaurant, dead in the water if we can't create has been youth-led and is accelerating, as log on to a network and order everything on F&B offerings that speak to a market of Generation Z, the first generation to truly the menu from your phone, all without millions. To be relevant, [food] must interact with social media since childhood, speaking to anybody, as a service choice. speak to people.” has arrived on the hotel scene. “You can even pay the bill or call a Nahai offers AccorHotels’ millennial- But while contemporary waiter to a table [using your phone]. It’s focused lifestyle brand Jo & Joe as an communication platforms have not just about cash now – you've got example of how the segment has fundamentally altered the way that Apple Pay and all these types of platforms reformed its F&B offerings in response hotel customers think about food, even changing the way that [younger to today’s ease of access to information different companies highlight different travellers] pay for food and drinks. on a city’s eating options. The lifestyle aspects of this phenomenon. "Personally, I think young people experience, and the sense of community Michael Butler, Hyatt's corporate today want customised service and that it offers guests, is of upmost director of food and beverage for Europe personalised F&B experiences the way importance to its business model. What and India, singles out how access to that they want it and how they want.” this development means is that F&B more knowledge has changed how has to be a bigger part of the brand’s customers chose a restaurant, but also How to stand out offering than was originally the case. how technology is altering the way they “We live in a world where individuals “I can go in any major city to a approach and interact with, or within, a now have their news, their advertising, restaurant where the food will be great, dining space. “You are also seeing many their very lives created around their the ambience will be great, and the

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service, when it comes, will be good. That changes the dynamics for everyone in the hotel industry, and it will continue to do so,” Nahai says. Instead, the aim of Jo & Joe – and select service brands like it – is to provide a cheap yet quality food offering that is fresh, simple enough to keep costs down, locally sourced, and yet tasty enough to tempt holidaymakers to stay in some nights socialising with other patrons. Nahai says that to achieve this, his team designed a kitchen that allowed three cooking styles only: a grill, a wok and a pizza oven. By simplifying their kitchens – and sacrificing some variety – however, the group were able to deliver a menu of fresh foods with ingredients from nearby businesses, from which the options often cost €10 or less. According to Nahai, this focus is paying off. The percentage of Jo & Joes’ revenues that comes from F&B is now much closer to what might be expected from an upscale hotel than it is from a traditional economy or select service hotel. “We want this to be a great place for millennials to go where they can get a great place at a low price, but were they are also attracted by the whole [holiday] experience that they get, and the whole community that they get,” Hotels like the Hyatt Centric Gran Via Madrid are exploring new ways to make ordering food easier. he says. “We have to stop thinking about some of these outdated ideas of complaints, or praise, can reach an segment from one another. Even if 'When I go to a restaurant, I need to audience of millions if they go viral, every label adopted this measure, their have universal variety', because if it brands in the select service niche have individual aesthetics differ enough is an economy hotel with maybe 30 adapted to this more transparent by appearance, budget and location things on its menu, that often that environment by seeking to provide to give each a unique appeal that can means a lot of it isn't going to taste travellers with increasingly memorable be quickly spread via the internet – good, and I guarantee you that most of personalised F&B spaces. highlighting the social aspect of the it is going to be frozen or processed.” While still far from the classic hotel lifestyle choices that the select service restaurant, in most cases, this new segment is increasingly offering. Personalising the dining space interest in providing attractive shared “[For many travellers today], it’s all Speaking about the renewed places to eat comes in stark contrast to about instant gratification,” Butler says. importance of dining spaces to the traditional conception of select “Time is the new luxury. And the one operators, Gui Jaroschy compares F&B services as ‘bare-bones’ brands. space where you can quickly engage outlets in a contemporary hostel or But with today’s technology, this with another human being and have an hotel to the many sides to someone's new market approach lets customers interesting conversation is with F&B, in personality. In his view, guest rooms mingle together at a low cost to a restaurant or at a bar. represent the private side, while its operators while giving the clientele "Whether that comes through the public spaces (bars and restaurants) a chance at getting the shared social employees, or whether it’s someone else exist to give a property a chance to experiences they are there to search who likes the same things as you and has express itself and allow guests to really for. Shared spaces have also come into come to this restaurant or bar, you are both understand and attach to the brand. their own as a way of differentiating travelling and can just get talking. It’s a However, in an age where customer the various brands in the select service space where you connect with people.”

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HMI075_108_Select.indd 51 10/07/2018 12:54 AdvertHMI.indd 1 31/05/2018 16:29:10 Reputation.com.indd 3 01/06/2018 11:41

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GlobalData_ReportStore_Generic_HP.indd 3 07/02/2018 14:10

p52hmi.indd 1 10/07/2018 10:16 Company insight > Technology Outstanding results

The hospitality industry has never been more competitive. Hotel Management International talks to Anthony Gaskell, UK director at Reputation.com, about how his company can boost clients’ presence in the online marketplace.

How important is it for companies to manage a lot of this feedback being public, a way to stay ahead in their online reputation? this space would be to compare your ORM results against Anthony Gaskell: In today’s digital marketplace, that of your competitors. managing a company’s online reputation is essential. The What is working for them and how could this be adapted information that appears about businesses online is what for your business? Finding that competitive advantage in stands between all of their marketing efforts and increased guests’ testimonials is valuable insight to help them plan revenue. Customer reviews influence consumer choice. for the future and stay ahead of the competition. With these personal investments, potential guests will conduct research on the internet before deciding on a Could you give a specific example of the work hotel. As a result, the sentiment of customer reviews Reputation.com has done with clients in the impacts the online marketing of any business. hospitality industry? Marketing teams consistently drive traffic to a business’s Mitchells & Butlers have been working successfully online profiles, but if the majority of reviews are negative with Reputation.com for almost two years. Early on, this and companies do not respond, that time and investment leading hospitality group recognised the need to could go to waste. implement a technology to be able to stay on top of the growing amount of online reviews. It is working with Reputation.com to gather all third- Finding that competitive party reviews into one platform. It can manage social advantage in guests’ testimonials media more efficiently by disseminating content and assets across the organisation. is valuable insight to help them The result is that managers now reply to over 80% of all plan for the future and stay ahead customer reviews. All this lets the organisation make of the competition. continuous improvements to customer service and stay ahead of the competition.

Online reviews are important, but what else can How is Reputation.com planning to improve a hotel do to boost its image? its services? Online reputation is built on more than customer reviews. The Reputation.com platform benefits greatly from a For example, businesses these days can encounter dedicated team, working hard to improve the service. For challenges keeping all of their listings information accurate example, a new ticket management module helps manage across the various services consumers use. The accuracy of feedback case by case, integrating with CRM and PMS. The business listings matters more in the hospitality industry company also plans to improve its mobile app. than in most others. Staff engagement is important to customers, and having Moreover, a hotel’s online reputation also includes them locally managing their online reputation is made easy managing social channels, from the obvious advertising and with the use of Reputation.com’s applications. content publishing to interacting with consumers. This At the same time, a revamped social suite allows large channel could be the preferred way of communication for organisations to disseminate relevant contents to multiple some of these customers, and thus needs to be managed at social profiles. all times. Advanced technology, like text analytics, can help Finally, the company has have invested heavily in improve company performance without manual input. ‘social listening’. Being able to react in real time to social conversations is the future of CX, as is marketing. Hotels have led the online reputation Reputation.com’s vision is to provide everything to a hotel management (ORM) space, but what more can to take control of its online reputation. they do? Hotels have been listening to guests’ feedback for years and have made ORM central to their marketing strategy. If Further information Reputation.com you look across sectors, hospitality has definitely led in www.reputation.com ORM adaptation, but there is space for improvement. With

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HMI075_Reputation.indd 53 10/07/2018 13:31 Insight > Technology

Points of view Monitoring and managing one’s online reviews and reputation has become one of the most important but time-consuming elements of day-to-day operations. How can hoteliers ensure this still-evolving discipline is performed to the best of their abilities? Abi Millar talks to Mike Gathright, SVP of reservations and customer care at Hilton, and Renu Hanegreefs-Snehi, VP of corporate communications, PR & reputation management at Radisson Hotel Group, to find out.

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t’s a nightmare scenario for any In other words, that nightmare ‘bad “Our hotels are responsible for hotel – a whole party of guests review’ scenario might actually be an managing their own online reviews, I have been online and left a slew important spur to change, provided though we provide holistic support of negative reviews. Not only were you adopt the right strategy. As from a corporate level,” says those guests unhappy and unlikely Renu Hanegreefs-Snehi, vice-resident Gathright. “We also act as a backstop, to book again, but would-be guests of corporate communications, PR & so if for some reason a hotel hasn’t may see the reviews and refrain from reputation management at Radisson stepped in to respond to negative staying with you. Hotel Group (RHG), explains, the job feedback within a set period of The situation is particularly difficult has many facets. time, we are able to step in and help because, given the rise of third-party “Reputation isn’t only about a hotel the guest.” review sites such as TripAdvisor, – it’s about the brand, the corporation Many hotel groups also appoint hotels don’t have much control over as a whole and the people or in-house social media specialists to what is posted. Gone are the days management behind it,” she says. ensure they’re effectively engaging when a dissatisfied customer would “Social media is a powerful tool for with their audience. simply write you a letter to complain, helping us build and protect that They might use various social maybe discouraging others through reputation, by responding instantly media management solutions, which word of mouth. These days, they and consistently.” can be used to search for keywords in have multiple platforms to vent She adds that it’s crucial to monitor real time. RHG, for instance, uses their frustrations, and word of that what’s being said online and step in Brandwatch, Engagor, Trackr and frustration can travel far. when necessary. media monitoring tools. “We live in a world where product reviews are often the first place we go A key benefit to the age of online reviews is that when making purchasing decisions, it provides a means for hotels to actively leverage so online reviews are incredibly important for a hotel’s reputation,” says feedback to make continuous improvement to Mike Gathright, SVP of reservations their product and processes. and customer care at Hilton. “In fact, – Mike Gathright research shows 88% of consumers trust online reviews written by other “We use a combination of tools to For managing online reviews, consumers as much as they trust ensure that we capture what is being it recently entered into a global suggestions from their personal said about our brands and hotels, agreement with ReviewPro network, and 80% of Americans seek and what is trending in the world to deploy the company’s Guest out opinions from review sites before so we can become part of these Experience Improvement Suite across making a purchase.” conversations,” she says. “If anything all its hotels. Given today’s fractured negative is posted by a guest digital landscape, with reviews posted Knowledge is power on any channel, we try to reach out across many disparate sites and This means that for hotels concerned to the guest as quickly as possible, platforms, software of this nature about their reputation the dawn of understand the situation and take is becoming essential. social media may have come as a appropriate action.” “Artificial intelligence is also mixed blessing. On the one hand, This means that while the something that we are looking at, to it makes them vulnerable to public occasional dissatisfied guest is a fact help automate some of our processes criticism. On the other hand, it gives of life it doesn’t automatically need in communications and monitoring,” them a clearer insight into what to hurt your reputation. Pinpointing says Hanegreefs-Snehi. “As Steven guests are really thinking, creating the source of their dissatisfaction van Belleghem, founder of Nexxworks opportunities for those who could work and addressing it quickly is key to and Snackbytes says, computers out how to harness that information. managing the situation. deliver and humans overdeliver – “We encourage our hotels to not “We want to ensure we never miss we want to offer the best of both think about their reviews as stand- a beat, or an opportunity to make to our guests.” alone feedback, but to monitor how every moment matter for our guests,” As this ‘best of both’ philosophy sentiment is trending over time,” says Hanegreefs-Snehi. makes clear, it would be wrong to says Gathright. “A key benefit With regard to whose job this is, there suggest that reputation management to the age of online reviews is that it is no single answer. On one hand, it is an impersonal enterprise, or that provides a means for hotels to actively falls to each individual hotel to deal with social media experts are in any way leverage feedback to make continuous issues promptly. On the other hand, one displacing the role of hotel managers. improvements to their products of the key roles of any hotel group is to “No monitoring tool or guest and processes.” boost its reputation and branding. management intelligence system can ever

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hotels can forge new connections with their guests. “Social media is fast paced, conversations shift quickly and news dies out fast,” says Hanegreefs-Snehi. “It’s our job to set the conversation and be part of those that matter to our industry and consumers.”

Getting the message out there As a result, RHG strongly believes strongly in the ‘power of co-creation’. It uses a network of social media influencers, who bring its hotels’ stories to life in their own voice and style. It also sees video as a huge opportunity, and would like to expand its influencer network to include YouTubers. Since social media is a noisy space, reputation management needs to focus on finding ways to cut through all the online chatter. Negative or positive comments on social media can make or break a business, and hotels are “Words are powerful, and with a surge in employing teams of people to monitor and maintain their online reputation. social media platforms in the last 15 years, replace the power of a human relationship, “One way that hotels may passively everyone has an arena in which to voice especially in a people business like encourage guests to leave a review is their opinions,” says Hanegreefs-Snehi. hospitality,” says Hanegreefs-Snehi. “Good by having comment cards at the front “As communicators, we need to build trust customer service is the bedrock of creating desk, which include the hotel’s social by telling the truth and being transparent and sustaining a good reputation. Without media handles. If a guest goes out of and sincere. Companies that embrace the that, all the social media tools in the world their way to mention a positive principles of their customers will be those can’t protect a brand.” experience, then the hotel may that survive and thrive.” On top of this, the physical and digital suggest that they also leave the Gathright agrees that customer realms may increasingly be viewed as feedback online.” expectations are growing, placing the onus two aspects of the same experience. Hanegreefs-Snehi adds that on hotels to listen hard and be responsive. For instance, Hilton is piloting a platform reputation predominantly comes down “We know that our guests expect service based on what it calls ‘social listening at a to honest and timely communication. across the entire customer journey – from property level’ – meaning they aim to take “Say what you mean and mean booking and pre-arrival until they check- advantage of social media insights on a what you say – it’s really that simple,” out. Feedback on any part of this process hotel-by-hotel basis. she says. “From our brand promise, can have a major impact on a hotel’s “This increases our ability to respond to brand standards to delivery at our reputation, so it’s essential for hotels to operationally rather than just online. This hotels. We promise and we deliver. recognise and facilitate this interaction might mean finding a ‘surprise’ or ‘delight’ As long as our teams understand the and learn from it,” he says. – an opportunity to celebrate for those who promise, and can deliver it infallibly, Clearly, reputation management are on-site for a birthday or anniversary in our guests will continue to give us is about more than just the occasional real time,” says Gathright. positive reviews and return to us.” PR campaign. And the odd bad review need not be cause for concern. More Good customer service is the bedrock of important are the thousands of everyday experiences and interactions, which creating and sustaining a good reputation. cumulatively shape a hotel group’s image – Renu Hanegreefs-Snehi for better or worse. “Reputation takes years to build,” points He adds that online reputation This means reputation management out Hanegreefs-Snehi. “We invest a lot of management should be tackled through is about far more than damage effort in ensuring that we do everything a hospitality lens first and foremost. limitation. Rather than being a solely we can to guard our reputation – day and “We strive to meet guests where they reactive discipline, it gives hotels the night, across all our markets, all our hotels. are – whether it’s on a traditional review chance to proactively improve the And when things do go wrong – despite site, social media channel or, of course, guest experience. And through a well- our best efforts – we do everything possible in person at a front desk,” he says. thought-out social media strategy, to make it right.”

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HMI075_109_Online.indd 56 10/07/2018 12:56 Insight > Operations

Does luxury need loyalty? Luxury hotel operators have long lagged behind other segments in the industry when it comes to leveraging the full power of a well-integrated membership scheme. However, in an environment of increased competition, and with more information available on guest preferences and habits than ever before, might traditionally reticent attitudes be beginning to change? Neil Gerrard investigates.

ook at the number of loyalty and focused on the travel agency sector, such high-end groups need to offer this sort rewards programmes among the as the Dorchester Collection Diamond Club, of loyalty programme,” he says. “So L world’s biggest hotel businesses, Belmond’s Bellini Club, Rocco Forte Hotels’ much of this luxury market is high-end, and it appears that guests are a pretty preferred partner scheme Sir Rocco’s discretionary, once-in-a-lifetime spend that fickle bunch. Knights, or the Oetker Pearl Partner it may not be appropriate.” Loyalty programmes are ubiquitous programme – consumer-facing loyalty and Fellow consultant Melvin Gold is of a among the large, multibrand operators. A rewards schemes are much further and similar view. “I think part of the argument is quick glance at rankings released late last farther between. that luxury hotel operators ask themselves, year by the Points Guy (a website dedicated The Dorchester Collection doesn’t have ‘What do our guests need loyalty points to airline and hotel loyalty points) gives you one. Nor does Four Seasons, Oetker or for?’ What reward would influence someone a good idea: Starwood Preferred Guest, Rosewood. But as the gathering and who is paying many hundreds of pounds a Wyndham Rewards, World of Hyatt, Hilton interpretation of consumers’ personal data night for their hotel room?” Honours and Le Club Accor Hotels make up becomes increasingly core to the success “There is another side as well,” Gold the top five of a long list of programmes, all of nearly any type of business, isn’t it about adds. “Sometimes these purchases are vying to persuade guests to keep booking time that they got on board? for a special occasion like a honeymoon stays with them. Not if you ask Philip Newman-Hall, the or anniversary or bucket list trip and, But it’s a completely different story when former general manager of Belmond Le consequently, the guests are being it comes to the smaller or independent Manoir aux Quat’Saisons in New Milton, aspirational but not particularly loyal. luxury hotel operators. In general, they Oxfordshire, and now a respected industry They might stay for their honeymoon and shun such programmes. While many have consultant. “I personally feel that there has then not come back until their silver business-to-business loyalty schemes never been the thought that the more wedding anniversary.”

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HMI075_107_Luxury.indd 57 10/07/2018 12:51 Insight > Operations

my own property, especially where I was really get to know who our customers are the only property in the UK – I would have and speak to them in a different manner,” Loyalty been very concerned if there had been a she says. loyalty card introduced where guests could Meanwhile, Langham Hospitality Group’s in numbers earn points around the world but only had own programme, 1865 Privilege by one hotel to spend them at in the UK,” says Langham, is a little younger, having What do business versus leisure Newman-Hall. launched in 2007. The group is at pains to travellers redeem points for? “I am sure that I would have had to point out that it isn’t a loyalty programme redeem the points at less than their but a privilege programme that allows it to face value and that would decrease my recognise its valued guests. It also offers Hotel nights profitability. That is especially relevant members a range of benefits such as late business travellers 84% if, say, 20–30% of your international client check-out, complimentary Wi-Fi and room leisure travellers 79% base using properties around the world upgrades, dependent on which of four are UK residents.” levels they belong to, starting at Upgrades And yet, despite the potential drawbacks, ‘Explorer’, then ‘Gateway’ (which requires there are a handful of independent luxury three stays or nine room nights in a business travellers 21% groups who have not been discouraged. calendar year), ‘Voyager’ (five stays or 15 leisure travellers 12% “I think there is a misconception that room nights), and ‘Destiny’ (invitation only). people who stay in luxury hotels don’t care Leon Li, who works as part of the Airline miles about rewards,” says Vicky Elliot, group marketing services team at Langham business travellers 13% director – brand loyalty, at Jumeirah, which Hotels Group, claims the programme leisure travellers 19% launched its Sirius programme in 2003, and maintains ‘significant’ growth in revamped it more recently in 2015. membership of 15% each year, helped by the company’s efforts to differentiate it Merchandise Maximum value from standard loyalty programmes. business travellers 12% She admits that the programme is unusual “1865 Privilege is a recognition leisure travellers 7% for a luxury hotel brand, particularly given programme that ensures all our members that it is points-based, but says that just enjoy bespoke privileges catered to their Other because some guests are very wealthy personal preferences at each Langham business travellers 0% doesn’t mean that they don’t want to be hotel globally,” he explains. “We want leisure travellers 2% members. “I can assure you that it is some to ensure every 1865 member’s stay is of our top spenders who are the ones that impeccable and memorable.” will count every point they earn to make In the case of either scheme, the 3.6 sure they get value out of them,” she says. data they generate can be turned into the average number of As far as Elliott is concerned, the cost of a powerful tool, when it comes to raising loyalty schemes to which setting up such a scheme deters other levels of service and getting the group’s travellers aged 30 and operators. But Jumeirah started Sirius when message out to potential customers. Li older belong it had just one hotel and it has expanded explains that the data gathered and stored with the group. Under Sirius, members through 1865 allows hotels to better 3.0 receive two points for every US dollar they understand guests’ needs and then tailor the average number of hotel spend, which they can then use to access a the service they offer. loyalty programmes to which range of benefits, depending on whether The operations team will review guest millennial travellers belong they are at blue, silver or gold level. preferences from previous stays to ensure “You can redeem points for stays, that the next is even more personalised. Source: 'What's driving customer loyalty upgrades, dining or spa vouchers, as well Similarly, Elliot says Jumeirah’s Sirius PwC, 2016 for today's hotel brands?' as experiences in our destinations such as programme assists the group’s marketing a helicopter tour in Mallorca. We have also activities and lets the business ‘turn Then there are the simple financial just introduced an online rewards store as on the tap’ when it needs to drive more practicalities of being a smaller luxury lots of our membership base resides in business. “It’s a very effective way to hotel group. Loyalty programmes are countries where we don’t necessarily have get our marketing message out to expensive to run and a brand may have a hotel,” she explains. our customer base, so long as we only one or two hotels in one of several Despite the reservations that other luxury stay relevant to them,” she asserts. countries around the world, which can hotel companies seem to have, Elliott How that data is used has to be bring its own problems. contends that it works very well for approached carefully, as Elliot points out. “From a personal point of view – and as Jumeirah. “Because we are smaller, we “Regardless of what level of hotel you are the GM charged with creating EBITDA at have the chance to be a bit more niche and in, if you are giving someone data about

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yourself, you expect it is going to be used stifling what he admits could be a very in the future either. Although it wouldn’t in a way that benefits you,” she says. dynamic approach to cross-marketing. look like a traditional loyalty programme, Just as the service at the hotels can In the meantime, there are signs that which, the company’s chief customer be more personalised, so too can the consumer-facing loyalty programmes are experience officer, Helen Smith, says are marketing and that increases the chances gradually becoming more popular among “too commoditising”. of cutting through to the guest, as well as the smaller luxury hotel brands. Mandarin “We’ve learned that points do not have ensuring they aren’t besieged by irrelevant Oriental, for example, launched Fans of any value to our most loyal guests,” she messages. “If someone doesn’t like golf, M.O. earlier this year. Billed as a ‘guest says. “They don’t drive loyalty. We are then we aren’t going to bombard them recognition programme’, guests can considering various options, as we are very with marketing about that,” says Elliot. register for free to receive complimentary focused on driving loyalty and recognition It still isn’t enough to convince Wi-Fi, members-only offers, early check- with our guests; we know a traditional Newman-Hall, though, who prefers small, in and late check-out, as well as being loyalty scheme would not work.” unprompted gestures towards the guest invited to fill in an online profile to allow Elliot, on the other hand, sees a bright that aren’t part of any programme. Mandarin Oriental to personalise their stay. future for Sirius, aided by advances in “I don’t think the market is looking for a technology. “We have got an opportunity free night. Recognition and upgrades and Harnessing the power of data to speak to someone in a more consistent small, emotionally intelligent touches are A company representative declined to and personalised manner across all of our probably more important,” he says. comment further about the scheme’s touchpoints," she says. “This is about Nonetheless, what he would like to see progress, saying Mandarin Oriental was helping our members at every stage, from in the luxury market is the ability to know “not looking to actively promote” it, thinking about their stay during the when a guest staying at one hotel has but its arrival signals a growing interest booking period, to the planning stages, already stayed at a sister property in order among operators in how they can keep making the reservation, pre-arrival, during to be able to recognise that, although he customers loyal by using technology to the stay and the sharing afterwards. If sees potential problems with data harness their data. we make it seem frictionless across the protection involved in this, with different The Dorchester Collection doesn’t rule whole journey, that is where we'll really laws in different countries potentially out some sort of consumer-facing scheme start to see the benefit.”

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HMI075_107_Luxury.indd 59 10/07/2018 12:52 Company insight > Operations Hygiene as a wellness factor

Indoor swimming pools and spas must be cleaned efficiently with the correct materials. Alfred Kärcher helps wellness businesses stay ahead of the pack.

ountless users, large barefoot areas, regular contact PVC loungers, changing rooms and lockers. In order to between skin and surfaces; for these to be possible eliminate possible germs, manual disinfection will be necessary. C as part of wellness experiences without hygiene Disinfectants based on oxygen releasers should be used, as concerns, operators of swimming pools and spa facilities must these do not leave stains on wood. The general rule is to use as guarantee cleanliness. There are recommendations made by much disinfectant as necessary, but as little as possible. various institutions, but cleaning plans are ultimately left to Depending on the conditions of the space, a steam cleaner is individuals. Disinfection is often carried out, although this step suitable for thorough cleaning of walls and loungers. Lint-free is not always necessary. Anybody who works at these types of terry cloths, combined with large floor nozzles, enable the places will know that correct cleaning procedures will tackle effective cleaning of larger surfaces. If sanitary facilities, the proliferation of things like athlete’s foot. Investing in showers, walls, floors, anti-slip mats and tiled benches are to adequate cleaning equipment is therefore an essential part of be cleaned, high-pressure cleaners are the tool to choose. any competitive wellness business. It is important that users are instructed in handling them. The nozzle must not be held too close to a surface when Depriving mould fungus of a breeding ground spraying in order to avoid potential surface damage. People change in swimming pools and thermal baths once they have left the changing room, as their senses of hygiene differ when Furrther points on wellness they shed their regular clothes. Something that is considered Experienced manufacturers may also offer the following advice: perfectly decent in the office is no longer acceptable when in the  ‘Flying rust’ particles on stainless-steel surfaces can be sauna facility. An important point regarding cleanliness in barefoot removed by using phosphoric acid-based sanitary cleaners. areas is avoiding the spread of athlete’s foot on floors.  Thermal baths with a higher mineral content must be With the right cleaning, the use of disinfectant can be cleaned more often and more intensively. minimised. If acid and alkaline cleaning agents are used  If underfloor heating is installed, cleaning must be carried alternately, bacteria are deprived of their living space through the out in stages, otherwise cleaning solution can dry out due removal of mineral and organic dirt. It is important to note that to the higher temperatures. floors with cement-based joints and tiles should be watered before  The flow direction of the water gully at the edge of the agents containing acid are used: these surfaces would absorb the swimming pool has to be reversed so that no cleaning water rather than the acid, and would not be damaged. agent flows into the pool.  Condensation on window panes does not contain any Mechanical force and appropriate accessories minerals, but it does saturate, however, so that the panes In practice, disinfectant is often applied after cleaning the become blind; tarnishing can be easily avoided by the floors, left to work overnight and rinsed off the next day. regular removal of water. Anyone who uses the mechanical force of scrubber-dryers or  Thoroughness pays off. single-disc machines and keeps floors suitably could avoid the disinfection stage. The cleaning of facilities requires a level of effort for Above all, the choice of the right brushes or pads for the operators, especially as certain work cannot be carried out in machines is relevant to achieving the desired cleaning result the day due to the presence of the public. Thus it is often a without causing damage. Coarse-surfaced tiles can be handled matter of ensuring thorough cleanliness in narrow time frames particularly well with high-low brush rollers, whereas fine- – typically early in the morning. So the right equipment is even structured tiles may require microfibre rollers. more worthwhile as it enables efficient and rapid cleaning. If Melamine-resin pads are used in combination with single- the cleaning is done correctly, mould fungus and algae can be disc machines in the case of stubborn dirt on porcelain eliminated without washing-out joints or staining wood. stoneware, which may show up as greying. Therefore, bathing and sauna guests get the enjoyable Pads with abrasive grains should not be used on anti-slip experience that they have paid for, word gets around, and new tiles at all, as this would lead to a gradual smoothing and guests are attracted to the facility. therefore increase the risk of slippage.

Surface cleaning: steam and high pressure Further information Alfred Kärcher Whether spa area or indoor swimming pool, many surfaces are www.alfredkarcher.com in direct contact with the skin – walls, benches, wooden or

60 Hotel Management International | www.hmi-online.com

HMI075_Karcher.indd 60 10/07/2018 13:27 Directory > Product showcase Product showcase

Hire temporary Adia’s smart-match Go your own way can check-in and out, order hospitality staff algorithm then creates a list of services, view room folios, make the smart way available candidates based on requests and receive relevant job role, location, experience communications. From marketing and availability, so you only see automation, integrated booking relevant profiles - for you to engine, guest history/stay data, review and shortlist, after and analytics dashboards with which you simply hire the most KPIs to better understand guests suitable jobseekers with a click StayNTouch’s technology brings and business insights, mobility to hotel staff and guests. of a button StayNTouch delivers a high Adia makes hospitality recruitment Because Adia is the Guests want to choose how they return on investment. It is easy as stress-free as possible. employer, it ensures that every enter and leave hotels; they want to use and trained for and flexible Adia is Adecco’s online candidate has their right to to choose how they interact, and enough to address all the changes recruitment platform that’s work verified, and that they want to be in control. To be that are occurring in the new changing the face of temporary are the right candidate for competitive in today’s marketplace, hospitality technology ecosystem. staffing in the hospitality industry your business. hoteliers must free themselves The secure, cloud-based by taking the most effective With instantly visible prior from traditional assumptions about technology, developed on an open elements of traditional recruitment employer ratings on all operations and the constraints of API architecture, offers a and streamlining them. Imagine candidates, Adia is the perfect legacy or premise systems. convenient SaaS pricing model opening an app on your phone addition to your hiring StayNTouch is a PMS innovator that includes not only the platform and being able to hire high- methods to help with the focused on developing next- – with no requirements for costly quality temporary staff with the seasonal influx of staffing generation technology that brings upfront hardware investment – but click of a button. Having been needs within hotels and mobility to hotel staff and guests to also critical updates, integrations, successful for hotel giants. hospitality, as well as all year- streamline operations, increase maintenance and world-class Marriott, the hospitality round temp recruitment. engagement and optimise revenue support. Powering more than industry is now taking note of Adia takes the stress away opportunities. The intuitive 85,000 rooms globally, StayNTouch how an online 24/7 platform is from temp hospitality hiring platform operates on tablets and is a trusted partner to many of the adding value to businesses by making the process simple, smartphones, revolutionising how world’s leading hotels, resorts, nationwide.Adia is free, simple quick and reliable. hotels connect and engage their casinos and chains in the industry, and easy. All a user has to do is: By channelling all temporary guests, and how guests experience including Yotel, Zoku Amsterdam, create an Adia account online recruitment needs into one their hotels. Hotel employees at Valencia Hotels, The Freehand post the roles you’re looking platform, hotels can now save every touchpoint, including front Hotels, First Hotels, Modus Hotels, to fill – for example, hostess, time and capital by focusing on desk, housekeeping, concierge and MGM Resorts, Aria and the housekeeper or waiting staff the running of their businesses. management have real-time Fontainebleau Miami Beach. create one-off shifts or PMS access via a touch-optimised plan in advance for Further information interface. Guests, from their Further information Adia Technology StayNTouch seasonal fluctuations. ww.adia.com/uk smartphones or self-serve kiosks, www.stayntouch.com

Index Adia Technology ...... 61 Hotel Facility Concepts ...... 24 Reputation ...... 52 www.adia.com/uk www.hotelfacilityconcepts.com www.reputation.com Alfred Kärcher ...... IBC Hotel Technologies ...... 17 Simon ...... 18 www.kaercher.com www.hoteltechnologies.com www.simonelectric.com Deutsche Hospitality ...... IFC Kemitron ...... 44 Six Payment Services ...... 10 www.deutschehospitality.com www.kemitron.com www.six-payment-services.com Electrolux ...... 13 Lausanne Hospitality Consulting ...... 28 StayNTouch ...... 13 www.electrolux.com/products/professional www.w2f-lausanne.com www.stayntouch.com Franke ...... 48 Meliá Hotels ...... 20 Titan Containers ...... 30 www.a1000.franke.com www.meliadevelopment.com www.containersforhotels.com Hot.E ...... 6 Radisson Hotel Group ...... OBC Wanzl ...... 59 www.europehotelconference.com www.radissonhotelgroup.com/development www.wanzl.com

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HMI075_Product Showcase.indd 61 11/07/2018 12:33 The Insider > NikoAnthony Suyasa Bourdain A life in food The shocking news of Anthony Bourdain’s death in early June, aged just 61, led to an international outpouring of grief within the hospitality community and among the public at large. Hotel Management International fi rst met the chef, writer and television presenter in 2008, when we found him in characteristically compelling and outspoken form.

didn’t have a pot to piss in. I was Nothing beats the feeling of of flavours and colours. The notion that 44 years old, deeply in debt, and accomplishment when you’re walking you can live without animal products is all I lived in fear of the revenue service. home after a really busy night in a fine and good for Paul McCartney, but Then, overnight I had a bestselling book restaurant. You know exactly where you spend some time in the Amazon and try and the ability to travel anywhere. After are in the world and how well you did. to see that argument work. It’s like the Kitchen Confidential came out [in May The first time I ate at Fergus Henderson’s people who think that we should all revert 2000], any question of me serving a St John, I walked into the kitchen, got down to some wonderful agrarian society, leave useful purpose in the restaurant was out on my knees and babbled about how this the cities en masse and till the fields to the window. was the greatest meal I had ever eaten. grow organic vegetables. The Khmer I came into the business like everyone I worship the ground Henderson walks Rouge had that idea. else, I became a dishwasher. I was going on. What he has done at St John has Obesity is a societal problem. It is not in no good direction at the time. I never empowered chefs around the world. To me, OK to be unhealthily fat. If you weigh had any respect for myself or anyone he is the walking Buddha. 400lb, that’s a lifestyle choice. If we are else until that point. That dishwashing escaping from a burning building and job saved me. It was a rollicking good Better eating in hotels you’re clogging our means of egress, time. I could steal lots of food and the Hotel restaurants have got a lot better, you have become a societal problem. girls were cute. thanks to guys like Gordon Ramsay. What In the past, if you were to tell your Ideally, you find a good mentor. I started out as a cynical business model girlfriend’s family that you were a bumped into a cook in Cape Cod who has turned out to be a positive thing. In cook and planning on becoming a knew a bit about food and took pride not hotels, you used to have some crap coffee chef, it would have been a horrifying just in how fast or how many, but in how shop with an ancient frog pond and a pronouncement. Everything has got good the food can be. half-dead Austrian or Swiss chef cranking more professional. Beating cooks is not The restaurant is a place where people out some dreary, sad stuff.. acceptable any more. Snorting coke off from all backgrounds are forced to work together, and where the good survive Hotel restaurants have got a lot better, thanks and the bad fail. To be a successful chef to guys like Gordon Ramsay. What started out has always required a strong personality. When Marco Pierre White walks into a as a cynical business model has turned out to room, everybody pays attention. The be a positive thing. survival skills that allow someone to be beaten, bollocked and ground up for 17 I don’t like food nerds. When you are a cutting board would be considered hours a day in a tough industry make that conscious of what you are eating, letting the team down. them well-suited to television. you lose something. Eating at its best is The restaurant business is a place There is an element of pornography in a submissive act where you enter a for misfits, people who can’t or won’t celebrity-chef programmes. It is the happy, half-drunk dream state. It’s about do anything else. If I had got into same dynamic – a vicarious thrill, people pleasure first and foremost. I don’t need the business for the wrong reasons, getting off on looking at melting to know where my f***ing lamb came I am sure I would have become a chocolate. But chefs are hopefully from, the breed or who the farmer was. spectacularly unsuccessful minor inspiring you to eat better, cook better I am contemptuous of anyone who criminal. This job has to be a passion, and know what you are putting into your comes from a meat-eating society and has an obsession and a refuge. mouth. The British eat better post-Jamie the opportunity to travel the world, and Oliver than pre-Jamie. doesn’t take advantage of its full spectrum First published September 2008.

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HMI075_111_Insider.indd 62 10/07/2018 13:11 DISCOVER INDEPENDENCE The most powerful of their kind: the battery-operated dry vacuum cleaners

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