BERLIN - A laser focus on profitability, customer service and authenticity are the keys to growing hotel businesses in competition with the major players, a panel at the International Hospitality Investment Forum said this morning.
“Our culture has been very entrepreneurial, we are not a company looking to put flags on the map, that creates a problem. For us its earnings and making sure our owners and customers are happy,” said Minor Hotels CEO Dillip Rajakarier.
He said this was down to an “ownership mindset” which meant that the company looked and acted in the very long term, and ensure that in pursuing growth “you don’t want to put 20 hotels in the same place”.
Minor Hotels has been acquisitive over recent time and bought NH Hotel Group in 2018 and Rajakarier said that this had helped fast-tracked growth, as he said that a return to normality post-pandemic had come quickly.
The company has also been expanding its Anantara luxury hotel group.
“The Anantara brand is only 23 years old but it has made a huge impact globally. It’s very authentic and it’s important to connect the brand to the local culture,” he said.
From regional to global
Jumeirah Group CEO Katerina Giannouka added that the Middle East-based company’s vision is to grow from a regionally recognised leader to a global player and she said that she believed that the business has a strong base from which to achieve that, with a well-recognised brand.
“This year is about strategic alignment, so that we can look at the next five to seven years and export that brand globally. Also we want to evolve the brand, so that as a guest you can distil and sense of what Jumeirah is.”
She said that the growth strategy had to be “laser focused” and said that for hotel groups understanding their customers and where they want to travel to and delighting them with something they didn’t expect are key in the luxury space.
Indeed, she said that Jumeirah is focusing on the ultra-luxury market for its expansion.
“It is about using partnerships to create something unique for your guests. You have to be exceptional in every area,” she said.
Empty office opportunity
Deutsche Hospitality CEO Oliver Bonke added that the way people work has changed, which has had a knock-on effect on real estate. He said that the hotel sector had benefitted from the empty office situation, making more product available.
“How people travel has changed are there is an increased need to satisfy emotional needs, which has given rise to investment in exciting new products and brands,” he said.
Turning to brand value, Bonke said that authenticity and aligning with partners with strong equity in their fields was also vital to the future.
“Steigenberger is our heritage brand, while we have a joint venture with Leap Hotels, which is our fastest growing brand. This is a Danish design-led brand, and then there is the same spirt with Porsche Design. Partnerships are also critical with loyalty programmes,” he said. “They are an accelerator of growth and of relevance. We look at acquisitions as authentic jewels that you keep intact and grow.”
Asia shift
The panel, chaired by JLL global CEO Gilda Perez-Alvarado, also discussed the potential impact of global travel increasing from Asia and adapting to changing business and leisure habits and requirements, plus the rise of well-being.
“The prospect of Chinese outbound travel coming back is exciting. There will be over 200 million easily next year, with pent up demand that the market hasn’t absorbed yet,” said Bonke.
Jumeirah’s Giannouka pointed to well-being and the need for a holistic approach as she said that customers do not want simply to feel good for the day they are there but instead wellbeing offers should focus on how to make sure guests “feel better about their lives”.
However, she stressed that to implement new initiatives, a company has to be well financed because they are investments and said this was a strength of the 26-hotel Jumeirah Group, along with an ability through its size to be “nimble and quick”.
Rajakarier added that hotel brands also need to look at where they have weaknesses and accept those and look at ways of working with others to improve the offer.
He cited Minor Hotels’ acquisition of F&B brands including The Wolseley and Benihana, which are being rolled out into the group’s luxury hotels.
“We want the guests to go back with a story. Story telling is important and they become your brand ambassadors,” he said.
Minor Hotels is also looking to expand through its franchising and from its eight brands, and he said that he foresaw “huge opportunities in China” while he believed there was room to grow the eight Anantara hotels the company has in Europe, principally through key gateway cities where the brand has “value and experience and returns”.
“Can we open more? Definitely,” he said.