D|D&C Issue 7

Development Design & Construction issue 7 | November 2011

PROFILE AGON HOTELS & RESORTS

CHANGING FACES HASSELL | JOHN STENTON D|D&C | 1

Development Design & Construction

03 07 09

Summary News from around Asia

Profile : John Stenton Principal Hassel

Agon Hotels and Resorts with Darryl Agon

This week we talk to Darryl Agon of Agon Hotels and Resorts and catch up with the charming John Stenton, Principal of Hassell Studio, Bangkok Thailand.

Next week we are off to Vietnam and then to Hong Kong to talk to some more exci ng people from the Business of Design Week Conference! There aren’t many days le in this year so be sure to send us your news for the remainder of the year and for January 2012 and finally, don’t forget to share our link and encourage others to subscribe to this free magazine at h p://development-design-construc on.com/

Front Cover : Courtesy of Hassell Radisson Hotel at Century Park Shanghai PRC

D|D & C © 2011 to feature your work, adver se in this publica on or to subscribe contact editor@qube-3.com D|D&C published by Qube Consul ng (Thailand) Co., Ltd

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ADMINISTRATION Silailuk@qube-3.com D|D&C | 2

THAILAND’S FLOODS: THE DAMAGE DONE

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s the worst of Thailand’s flooding appears to have passed and the waters have begun to recede, the country’s real estate firms have started to take stock of the situa on. Many of Thailand’s property developers have asked that the City Planning Department of the Bangkok Metropolitan Administraon (BMA) review its new dra city plan, which is due to come into effect next year. According to the developers, this year’s floods demonstrate that a new plan with be er floodways is re-

quired in many areas within the capital.

However, many developers have also accepted that they also need to review their own construc on processes when building in Bangkok. Homes will need to be be er designed to withstand floods, while more landfills and more effort is required to ensure that new homes are above flood levels. It is es mated that these new measures are likely to increase construcon costs by 1.5% for detached-

houses and 3% for townhouses.

The Real Estate Informa on Centre (REIC) reported that as many as 700,000 residen al units sustained flood damage in Bangkok. It has been predicted that the Bangkok property market could fall by as much as 33% as a result, although some es mates are as low as 10%. 

RAIMONLAND REMAINS BULLISH OVER FUTURE

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hai property developer Raimon Land remains bullish about the future of the Thai property market despite the devasta on caused by the recent flooding in parts of Bangkok. The company’s chief execu ve, Hubert Viriot, told the Na on that he expected the flooding to be a “one-off ” event with no las ng impact on Raimon’s expansion plans. Raimon’s proper es were mostly unaffected by the flooding.

During the first 3Q of 2011, demand for Raimon Land proper es grew with pre-sales up 23% from

the same period in 2010. Nevertheless, the company reported a fall in overall revenue and a net loss of Bt114 million during the same period with the weak figures blamed on a change in the accoun ng policy of the Stock Exchange of Thailand, which now books pre-sales revenue only when the property is transferred to the homeowner.

Raimon Land remains in a healthy posi on with a backlog worth Bt16.2 billion and inventory for sale worth Bt28.6 billion set to generate revenue for the next two years. The company currently

adver se your product here? contact Sa ta at accounts@qube-3.com has four condominium projects under development in Bangkok and Pa aya and has also confirmed its inten on to launch its new Unixx brand in Pa aya offering units at under 1 million baht each.  D|D&C | 3

CAPITALAND TO MAINTAIN PRESENCE IN CHINA

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espite new residen al property regula ons imposed by the Chinese government, CapitaLand is commi ed to con nuing to look for new opportuni es in the Chinese market. Facing the risk of a property market bubble, the Chinese government raised

the down-payment and mortgage requirements and imposed home purchase restric ons in about 40 ci es earlier this year.

Nevertheless, CapitaLand has vowed to con nue looking for new opportuni es as it seeks to maintain a balance between

its residen al and commercial projects. The Singapore-based company is South-East Asia’s largest property developer and has S$10.1 billion ($7.8 billion) of assets in China.

NEW SHANGRI-LA PROPERTY FOR CHINA

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ong Kong-based Shangri-la Hotels and Resorts is to increase its por olio of hotels in North-East China to eight with the opening of the 400-room Shangri-la Hotel, Yingkou in 2015.

Ideally located in the city’s fastgrowing economic development

district as well as near the beach in the coastal resort of Yingkou in China’s Liaoning Province, the property is aimed at both business and leisure travellers with a special focus on family groups.

In addi on to F&B outlets, mee ng space, a health club, an indoor pool, a spa, and a hot spring village, the hotel will also

feature a 1,400-square-metre family entertainment centre and children’s adventure zone.

Shangri-la’s fast-growing portfolio of proper es in North-East China already includes hotels in Changchun, Dalian, Harbin and Shenyang.

ASIA/PACIFIC HOTEL DEVELOPMENT PIPELINE

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ccording to the October 2011 STR Global Construcon Pipeline Report, there are 1,373 hotels and 327,630 rooms in the Asia/Pacific hotel development pipeline. The largest expected growth is in New Delhi

with +46.3% (10,477 rooms).

Other major growth markets include Manila at +30% (5,523 rooms), Mumbai at +22.5% (4,185 rooms), Bali at +19.3% (6,257 rooms), and Jakarta at

+17.3% (4,541 rooms). 

Understated Luxury www.riverbirches.co.nz

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BANYAN TREE TAKES ROOT IN KL

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ingapore’s Banyan Tree Holdings and Malaysian developer Lumayan Indah Sdn Bhd have reached an agreement to open a luxury property in Kuala Lumpur. The 55-storey Banyan Tree Signatures Pavilion Kuala Lumpur comes at a cost of RM1.4 billion (US$440 million) and is set for comple on in 2015. The development includes 441 private residences, 51 service residences, and 50 hotel suites.

The property will stand on the junc on of Jalan Conlay and Jalan Raja Chulan and will feature a link bridge to the Pavilion Kua-

INDONESIA’S TALLEST TOWER RECEIVES FUNDING

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ndonesia’s state-controlled construc on company Adhi Karya is set to go ahead with several new projects a er raising Rp 800 billion ($89 million) from newly issued shares. Among the projects is a 100-storey office tower, which will be the tallest in the country when it is completed in South Jakarta. Funds will also be invested in a toll road project in Bali and several power plant projects. 

la Lumpur shopping mall. When completed, the tower will be one of the tallest residen al buildings in Malaysia. Banyan Tree will operate the 50 hotel suites and manage the private and service residences, while Pavilion Property Consultancy Sdn Bhd will be the sales and marke ng consultant for the Banyan Tree Signatures private residences.

Banyan Tree hopes that the Banyan Tree Signatures Pavilion Kuala Lumpur will open the door to more hospitality projects in Malaysia as the company con nues to enter new

markets. Since opening its first property in Phuket, Thailand in 1994, the company has gone on to establish more than 30 hotels and resorts, almost 70 spas, nearly 80 retail galleries, and two golf courses. There are 30 more projects in the pipeline, with China the company’s main target market. Among the proper es due to open in 2012 are the Banyan Tree Tianjin, Banyan Tree Riverside, and Banyan Tree North Bund in Shanghai; the integrated resort of Banyan Tree and Angsana Lang Co in Vietnam; and the Banyan Tree Kerala in India. 

VIETNAM GETS TOUGH ON CONTRACTORS

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wo contractors were prohibited from undertaking projects by the Quang Ninh provincial authori es in Vietnam recently amid claims of bidding irregulari es and an inability to complete assigned work on schedule. The Thang Long Construc on Company No 9 and Vinaconex Xuan Mai will not be allowed to work on any projects funded by the local authori es.

However, the two companies have protested their innocence and cited their good work on

other projected as evidence of their abili es. It is expected that other contractors could also find themselves in the same situa on as the Vietnamese government looks to ghten its control of public investments.

Send us your News editor@qube-3.com

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3D SIMULATIONS TO HELP BUSINESS ASSESS RISK

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ith a seemingly increasing number of natural as well as man-made disasters to contend with, many businesses are turning towards the benefits of computer so ware that can provide 3D simula ons as part of the risk assessment process.

Business Con nuity Simula on is the new buzz phrase for companies hoping to reduce the impact of disasters.

The 3D simula ons provide visible proof of how businesses could be affected in worst case scenarios that include fire, flood, landslides, and storms as well as terrorism, data the , and computer security risks. While the so ware can’t prevent the disasters from occurring, it can at least help companies prepare in terms of be er design and construc on of new facili es.

In a region that suffers from earthquakes, tsunamis, typhoons, floods, and monsoons, it could well be a business’ best investment. 

INSURANCE RATES FOR CONSTRUCTION CONTRACTORS TO RISE?

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here is concern in some quarters that insurance rates for construc on contractors, architects, and engineers could be about to rise in response to a series of natural disasters, rises in workers compensa on cases, and poor interest rates across the globe.

The Asia/Pacific region alone has been hit by such catastrophes in 2011 as the devastating earthquake and tsunami in Japan on March 11 as well as flooding in Thailand, Cambodia,

and Australia. Some markets have also seen a tangible rise in compensa on paid out to construc on workers over the past 12 months. Meanwhile, insurers have found it difficult to offset their losses with investment income because of depressed interest rates. Many observers are now predic ng a rise in insurance rates as the only op on open to the major insurance companies. 

MELIA TO OPEN TWO NEW HOTELS IN ASIA

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eliá Hotels Interna onal of Spain is to increase its por olio of proper es in Asia to nine with the opening of two new hotels. The 419-room Gran Meliá Xi’an will be the company’s second hotel in China when it opens in 2013. The new development will feature F&B outlets, a spa, and a conven on centre. The Meliá Danang is due to open in December 2012 and will be the company’s second property in Vietnam. The hotel

will feature 150 rooms including 10 villas, two F&B outlets, a spa, and an execu ve floor.

Meliá also has one hotel and Malaysia and four in Indonesia with a fi h in the pipeline. 

www.linuxxoffice.com D|D&C | 6

Radisson Suites Bangkok

PROFILE | JOHN STENTON | PRINCIPAL HASSELL New company, new posi on, what new objec ve do you have?

New company but a familiar company, as former a compe tor but also a respected design prac ce, with whom I had worked 25 years ago in Melbourne, albeit briefly. My objec ves are simply to maintain and build on the HASSELL reputa on for design excellence and expand the Architecture por olio in Thailand and the South East Asia region.

How is Hassell posi oned in the market compared to other design firms in the region?

HASSELL is recognized in Thailand and the region as one of the leading Design prac ces, with Architecture, Interiors, Landscape, Sustainability and Urban Planning capabili es in major market sectors.

Hospitality is really all about the guest experience, at the end of the day, a hotel bedroom is somewhere to sleep, the challenge is to enhance the overall experience and design innova ve but func onal spaces,

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Trends come and go, good design is sustainable and appreciated.

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What are some major design challenges of hospitality development?

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PTTEP Head quarters Bangkok

which meet and exceed not only the guest experience but meet the operators brand and budget criteria.

How will you use your experience in your new posi on?

I have over 25 years experience as a designer and every day presents fresh challenges, which I relish with enthusiasm. I am recognized as a mentor and knowledge sharer, which hopefully, is beneficial to younger, less experienced designers, peers and clients alike, resul ng in successful design outcomes.

In developing the hospitality side of the business where do you see the biggest challenges

from the designer’s point of view and the owner’s point of view?

The biggest challenge as previously men oned is crea ng a point of dierence and value adding through design. I recently had two friends from Australia staying overnight in Bangkok and slept in the most comfortable beds they had slept in for years, the hotel was not expensive or lavishly appointed but the beds, linen and ambience will be remembered and commented on and will prompt a return stay. That is the kind of value adding to a refurbished room or new that helps exceed expecta ons.

What are the owners of hospitality developments looking for from your studio? Are they looking for innova ve designs; conserva ve designs or to minimize risk?

Innova ve, func onal design with features that can exceed guest expecta ons and set the brand apart.

What are some interes ng hospitality design trends that we should keep an eye on?

Trends come and go, good design is sustainable and appreciated.

Plans for the future for HASSELL Bangkok?

To maintain and increase momentum in all aspects of HASSELL philosophy and be recognized as the Design prac ce to be associated with. http://www.hassellstudio. com/ Condolette Light Convent

Agon Hotels and Resorts Ltd. Second genera on in this business what direc on do you see it going.

I actually come from four genera ons of hoteliers, dating back to the 1900’s when my great grandfather developed and managed restaurants and inns in Cuba. Since then the next genera on developed and managed several hotels in Hong Kong including the former Hya Regency on Nathan Road, the former Miramar Hotel (now Mira), the Ambassador and Astor hotels, and was also a founding member of the HK Hotels Associa on. My father, Richard Agon started in the hospitality business in the 1960’s and worked for hotel chains, schools, and owners before he started in the consul ng business. I joined him ten years ago, though I have been trained by him and grew up in hotels and was a perrenial appren ce.

Over the past 10 years, we predominantly have been known as a hospitality consultant, advising on a wide range of industry-related issues, such as development, owner’s representa ve, opera onal audits, silent shopper programs, training, recruitment, and others. However, now and in the future, we offer an alterna ve solu on to owners for providing management services.

Whereas several big hotels brands offer their products, we offer a different value proposi on: we offer hotel owners the op on to create their own hotel brands and their own dreams, with the confidence to know they have a professional team suppor ng and advising them.

They enjoy seeing their own ideas professionally managed and they enjoy the crea on process and holding their own brand equity.

AGON

HOTELS AND RESORTS

We caught up with Darryl Agon of Agon Hotels and Resorts.

How do you see the hospitality industry in Asia developing in the next 10-20 years? Where’s the focus? Resorts Hotels, Bou que family hotels?

We’ll probably see new brands and different hotel concepts. Maybe more emphasis on food and beverage and perhaps more retail brands extending into hospitality.

You deal with recruitment in the hotel industry what’s the most challenging aspect of that from your point of view.

In recent years, with the rapid hotel development especially in China, it is more and more difficult to find management talent. And with the number of opportuni es around, people tend to move between jobs more o en, making it more difficult for employers to find candidates D|D&C | 9

with long term, more stable work experiences.

How difficult is it to persuade a client about the benefits of your services?

We are o en brought into hotel development projects when the project team of architects and other designers and consultants press the owners to know what is the project’s opera onal requirements and market posi oning. They need to know the end-user requirements, and we provide this as the hotel operator consultant, or as the operator itself. Fundamental ques ons are raised and depending on the project circumstances, the benefits of our services become glaringly obvious. However, as with most other services, marke ng intangibles such as me and professional exper se can have challenges to show exactly the contribu ons being provided. Advice can be subtle changes, which collec vely add up to make huge overall differences.

If you are asked by a client who has a failing hotel business what advice and ac ons can you provide and how do you do it.

There can be many reasons why a hotel is underperforming: design management, strengths and exper se of the team, market pressures, etc. We normally look at such opera ons on a holis c level as o en it is a combina on of factors that can be improved. From mee ng with the staff, to detailed property and equipment inspec ons, from reviewing compe tor proper es, and speaking to other industry insiders, and a whole host of other ac onables, we form “as-is” and “could-be” models of the hotel for a clearer picture of the circumstances. Just as people go to the doctor for check-ups, hotels can be checked too, so just to be er ensure long term healthiness of the opera ons.

“

They enjoy seeing their own ideas professionally managed and they enjoy the creation process and holding their own brand equity.

” Meanwhile, we are an end-to-end solu ons provider and draw on such interdisciplinary areas of the hospitality industry to create synergies across areas and provide insight and be er value to our clients.

What is the profile of your clients, big interna onal groups or more private bou que hotels?

Our development clients range from publicly-listed conglomerates, to state-owned or quasi-government groups, and to private entrepreneurs. Because we are not a typical branded hotel company, we can also assist with any hospitality related projects of different size, scope, and grading.

For consul ng, we assist a lot of independent or smaller chain groups. We also work with several interna onal brands focusing on the recruitment side. http://www.agon.com.hk/

Do you think the hotel industry can provide more of the service you provide or less?

We are certainly providing niche services and there are many providers doing parts of what we do, but not all of what we do. There are recruitment companies, there are consul ng companies, there are training companies, and there are operators.

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KEY elements FOR FLOOD RECOVERY

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Communications will be the single biggest issue, and awareness of this is essential.

Active listening skills, written records and checking of facts and information are all needed.

Staff fatigue will be another issue to watch for. In the past many managers have had to be forcibly removed when they started making bad decisions due to lack of sleep, and many have died in car crashes (asleep at the wheel) or had heart attacks during a crisis event.

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Review the disaster and your contingency plans and recovery actions soon after business as usual is achieved.

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“Declare victory� at the end of it all and make sure you thank all the parties involved.

You never know when they may be needed again!

Having an outsider assist is an excellent way to ensure an objective report and positive learning can be achieved by your management team. It also allows for this learning to be used to improve your preparedness for the next crisis event.

Please contact us to discuss ideas at any time.

Tel. +66 (0)2 2618485 E-Mail: info@coverage.co.th Website: www.coverage.co.th www.twitter.com/coverageltd www.facebook.com/coverageltd

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FLOOD RECOVERY It seems as though the floods have now peaked, and some areas north of Bangkok have started to drain. Draining of water outside main river areas is not as easy as just waiting. Pumping is required as some of the the land areas are often below the river levels. This means that it will take quite a while – even weeks – to get all areas dry again.

There is still a risk that dry areas could be flooded as those whose houses remain underwater become frustrated with the slow drainage and attempt to speed things up by breaking dykes or other barriers.

So let’s assume that your business facility is starting to dry or will be dry soon.

How do you proceed from here?

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Get Organised Who will be in charge? If you have established alternative operations during the floods you may need people to manage those alternative operations, therefore they will not be available to manage any recovery efforts.

Who will be in the team? Will it be a 24-hour operation or daylight hours only? Who is available and who has the right skills?

Make A Plan Consult with your legal team and insurer as well as key customers to determine their expectations or needs.

Check with suppliers who may have also been affected to determine what raw materials you can obtain – no point starting a whole process line only to find out that one small item is missing!

The best people to get involved, however, are your employees who have been working with you for many years. They will know all the ins and outs of your operations and will think of things that others won’t even have heard of.

Document the plan and the key assumptions, and let management and the key stakeholders know at least the outline and expected milestones.

Find & Secure Resources

Arrange logistics for implementing the plan. This is likely to involve securing cleaners, but could also include structural, mechanical and electrical engineers, security teams, ordering new equipment, finding experts in equipment reconditioning, IT services specialists and potentially many others – each companies plan will be different.

When certain groups or resources can’t be found, you may need to go back and review the plan.

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Implement Monitor progress and be prepared to alter and update the plan as new information becomes available.

Insurance Discuss how they want you to proceed and how funding for recovery will work. They may want you to use outside professional resources rather your own people as it will be easier to calculate costs.

Andrew Durieux is the Director and Principle Consultant for BCP at Coverage. For more than 15 years Andrew has focused on BCP, Crisis Management and Risk Management, providing these services on 4 Continents and for a wide variety of clients which range from small Thai operations to US Stock Market listed companies operating across many countries.

Andrew is a qualified member of the Business Continuity Institute of the UK, and is a regular consultant to the UN, WHO, International Federation of the Red Cross/Red Crescent Societies, ASEAN Ministries of Health, and the Asian Disaster Preparedness Centre in the area of Human Pandemic Influenza, similar scenarios and Crisis Management in general.

Coverage and Andrew are ready to assist as needed, but it is advisable to contact them sooner rather than later. It is never too late to start your recovery plan, and the sooner the better. The positive side of this is that you could win new customers and the ongoing trust of your existing customers and staff for many years to come by acting quickly as did Coverage’s clients.

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