HM December 2018

IN THIS ISSUE ONE-ON-ONE WITH IHG’S CEO KEITH BARR

INSIDE THE SHERATON GRAND SYDNEY RELAUNCH THE LATEST AUSTRALASIAN HOTEL INDUSTRY NEWS INSIDE THE EXCITING WORLD OF FRANCHISING

THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC Vol.22 No.6 Bi-monthly December 2018

CHOICE

SOARING TO NEW HEIGHTS

How the Choice Hotels team has worked together to hit big targets

Food and Beverage Heats Up

HM looks at the hot trends to expect in 2019

HOT THIS MONTH Talking coffee, The Star’s Master Plan, Fullerton to Sydney, Riley, voco and more

CONTENTS

December 2018

Vol. 22 No.6

32 F &B TRENDS FOR 2019

We’ve scoured the globe to uncover what hotel chefs are getting excited about in 2019.

40 BOOKINGS APLENTY

Classic travel agents are important as ever with some high-tech help.

44 F RANCHISING TO THE FORE

This issue, we take an in-depth look at the franchising business model for hotels.

Hoteliers in the Asia-Pacific region are, more than ever, craving independence while still enjoying the backing of a major group. And this approach is paying off.

HM Q&A

22 H OTEL EAST

Six years from opening, we uncover the success secrets behind Canberra’s Hotel East.

26 I HG’S KEITH BARR

We chat Regent, London and group milestones with the InterContinental Hotels Group CEO.

28 S HERATON GRAND SYDNEY

General Manager David Fraser on the Sydney hotel’s upgrade and reopening.

32 26

WE CHAT TO IHG’S CEO KEITH BARR

INSIDE THE SHERATON GRAND SYDNEY RELAUNCH IS ROOM SERVICE TURNING TO TAKEAWAY?

THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC

INSIDE THE COMPLEX WORLD OF FRANCHISING

How does Pan Pacific Melbourne’s General Manager Craig Bonner decide on hotel artwork?

Regulars

IHG’s Keith Barr is excited about the Regent relaunch

IN THIS ISSUE

30 CRAIG BONNER

04 E DITOR’S LETTER

James Wilkinson on Expedia’s optimistic outlook for 2019.

06 N EED TO KNOW

Vol.22 No.6 Bi-monthly December 2018

All the essential stories you need to know this month spanning operations, development and tourism industry news.

CHOICE

18 K EY NEWS

SOARING TO NEW HEIGHTS

Industry news in association with AAoA.

How the Choice Hotels team has worked together to hit big targets

2019 Food & Beverage Trends

20 O PINION

What’s set to turn up the heat in hotel kitchens in 2019?

HOT THIS MONTH Coffee trends, The Star Master Plan, Fullerton to Sydney, Riley, voco and more

This month, we get candid thoughts from TAA and Les Clefs d’Or.

On the cover

Choice Hotels Asia-Pac, led by CEO Trent Fraser (centre) has plenty to smile about following another great year of growth in 2018. All signs are pointing to more of the same in 2019.

24 C OVER STORY

Presented this month by Choice Hotels Asia-Pac.

12

50 PEOPLE

Key appointments: Who’s shifting roles for 2019?

hotelmanagement.com.au 3

EDITOR’S LETTER Managing Director Simon Grover

Publisher

Optimistic outlook for 2019

James Wells

Editor-In-Chief

James Wilkinson jwilkinson@intermedia.com.au

A

s 2018 draws to a close, the sun sets on another year of sustained growth in the travel industry and particularly in the accommodation sector here in Australia, New Zealand and the South Pacific.

Dozens of new hotels were announced over the course of the year and there was also plenty of movement in the merger and acquisition space, perhaps most notably that of AccorHotels’ takeover of Mantra Group and Veriu’s acquisition of Punthill.

The year certainly had its share of volatility and controversy too, with a somewhat hostile takeover of Australia’s Prime Ministership, the departure of high-profile travel CEOs and the biggest roller coaster ride Wall Street had seen since the Global Financial Crisis in 2008.

With a new year just around the corner, what’s on the horizon? The good news is that expectations for the travel industry in 2019 are firmly positive. Expedia Group CEO Mark Okerstrom told 4,500 delegates at the company’s ‘Explore’18’ global partner conference in Las Vegas he is “extremely optimistic” about what the new year will bring.

While cautious about the travel market, given Wall Street’s year of volatility, Okerstrom said Expedia Group was “clear eyed with some of the challenges this world faces”. He confidently proclaimed the company aimed to clear the USD$100 billion total gross booking mark in the new year.

At the end of quarter three 2018, Expedia Group had generated USD$97.5 billion in total gross bookings - a 13% increase year-on-year - and according to PhocusWright, travel bookings globally are forecast to increase by 5.3% in 2019.

For the CEO of the world’s largest travel company – which had generated 343.5 million room night bookings at the end of Q3 – to be optimistic about the 12 months ahead, it can be nothing short of a good gauge of what the industry can expect.

We’ll have a full feature interview with Okerstrom in the next issue of HM. Until then, I’d like to take this opportunity to wish you the very best for the festive season, a safe and happy time with your family and friends, and I trust you have enjoyed our content in the magazine over the past 12 months.

As always, I look forward to your feedback and I hope you enjoy this issue.

Yours in hospitality,

Expedia Group CEO Mark Okerstrom

Meet the HM team…

Publisher

Matt Lennon mlennon@intermedia.com.au

Group Sales and Sponsorship Manager Adam Daff adaff@intermedia.com.au

Contributing Writers

Peter McBrearty, Carol Giuseppi, Richard Munro, James Wells, Choice Hotels and AccorHotels

Production Manager Jacqui Cooper jacqui@intermedia.com.au

Circulation and Subscriptions Manager

Chris Blacklock cblacklock@intermedia.com.au

Subscription enquiries

1800 651 422 Subscribe to HM magazine - 6 issues for AUD $88 (inc. GST) subscriptions@intermedia.com.au

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James Wells

Deputy Editor

Matt Lennon

Deputy Editor

4 HM The Business of Accommodation

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Group Sales and Sponsorship Manager

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26

Things You Need To Know The essential hotel and travel news and trends from across the globe

01

Art Series Hotels reveals Howard Smith Wharves project Vincent Fantauzzo named as the property’s namesake artist

BRISBANE’S BURGEONING HOWARD SMITH WHARVES project has named its first hotel tenant after Art Series Hotels confirmed it would open its eighth property in the precinct.

A six-storey, AUD$60 million hotel will be carved into the cliffs under the city’s Story Bridge, featuring 166 guest rooms. In line with the brand’s hallmark, artworks and giclee prints from a celebrated Australian contemporary artist will feature throughout the rooms and public areas. It will be the first new property for the brand since joining the AccorHotels family.

The new Art Series hotel – the brand’s second in Queensland after The Johnson in Spring Hill – will offer four food and beverage options including a bar, fitness centre, conference rooms and a rooftop swimming pool overlooking the Brisbane River. A double-height wall of glass will be the centrepiece of the hotel’s lobby.

Howard Smith Wharves is one of multiple riverside development projects taking place in the Brisbane CBD. Once complete, it will feature a number of waterfront restaurants, bars and entertainment venues, a large craft brewery and a variety of green spaces offering picnic facilities and open space neighbouring the centre of town. It will also be a popular space for conferences, meetings and events in two event spaces – Rivershed and The Houses – both of which will be open by February 2019.

6 HM The Business of Accommodation

THINGS YOU NEED TO KNOW 02

Dick Smith rallying the troops for war on OTAs

Aussie icon launches ‘Book Direct’ to battle online booking giants

Dick Smith

HM mag_Ad.pdf

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9:34 AM

PROMINENT AUSTRALIAN BUSINESS advocate Dick Smith has launched a new campaign aimed at encouraging travellers to book accommodation direct with properties instead of using one of the major online travel agencies (OTAs) Simply titled ‘Book Direct’, Smith kicked off the campaign in a keynote speech at the recent Budget Motel Chain Conference in Glenelg, South Australia.

Central to the campaign is a push to educate travellers about the size and scale of online travel booking giants and the commissions paid by hotel and motel owners to these companies for reservation and marketing services. Smith says he is aiming to foster a closer relationship between hotels and travellers by cutting out the OTA as a third party.

“When you trace back the ownership of individual OTAs, they all stem back to just two overseas owners delivering no additional service to the Australian public while scooping up to 20% commission from Mum and Dad motel owners.

“This profit once remained with the motel owner and was put back into the local community. Now it goes offshore.”

Absent from Smith’s speech however was any mention of the marketing budgets of the online travel agencies promoting properties based on travellers searching online.

THINGS YOU NEED TO KNOW Four new towers will be built at The Star’s Broadbeach site

05

Big month for Hilton

New hotels and brands aplenty

03

Green light for The Star Gold Coast’s $2 billion Master Plan

A new premium hybrid micro-hotel/hostel brand, Motto, was unveiled to appeal to younger travellers. Guests can book a single room or link multiple rooms together.

Bright future for The Star

INVESTMENT OPPORTUNITIES WORTH more than AUD $2 billion will be created on the Gold Coast after the Queensland Government approved The Star Entertainment Group’s Master Plan.

Under the plan, four new accommodation towers housing around 3,000 new rooms, apartments and suites will be developed on the Broadbeach site in a complex which, when complete will rival Singapore’s Marina Bay Sands in terms of pure size. A fifth tower already under construction will become the home of Dorsett Hospitality’s entry to the Australia market.

In conjunction with Hong Kong-based partners Far East Consortium and Chow Tai Fook Enterprises, The Star’s Master Plan aims to create a mega-resort boasting a vast expansion of dining and bar precincts as well as new entertainment and retail offerings.

Western Sydney to welcome Hilton with new 245-room hotel in Parramatta aimed at catering to Sydney’s booming second CBD. Construction is due to begin in 2020.

04

Crowne Plaza Melbourne unveils $25 million refurb New rooms, same great view

The latest in-room technology has been rolled out as part of the refurbishment

RESULTS FROM PHASE 1 of an AUD$25 million refurbishment at Crowne Plaza Melbourne have been unveiled, with all 402 guest rooms now boasting a new, modern look.

Common features of the revamped rooms include new premium bedding and furniture along with a significant upgrade to the WiFi connectivity on offer to guests. All bathrooms have been completely refreshed with standalone showers and the latest showerheads, while new Judith Martinez artwork and ‘Layers of Melbourne’ digital decorative collages have been installed.

City View rooms now offer walk-in wardrobes and new work stations for business travellers.

Luxury Suites have also been upgraded with new deep bathtubs and walk-in showers.

Phase 2 is due to kick off from April 2019, with all public areas set to go under the knife, with a total redesign of the hotel’s lobby, pool, fitness centre and conference facilities to take place. A brand new restaurant and bar concept – details of which are yet to be announced – will also be added to the hotel’s dining lineup.

8 HM The Business of Accommodation

Papua New Guinea has joined the Hilton ranks, opening its first branded hotel in Port Moresby. The 212-room hotel is connected to the Kutubu Convention Centre.

DoubleTree by Hilton is expanding its New Zealand portfolio, opening a new property in the coastal town of Napier in early 2019.

We imagine your future

WE ENSURE YOUR SUCCESS

As a market leader in hospitality worldwide and the number one hotel operator in Australia and New Zealand, AccorHotels possesses exclusive expertise to optimise performance, generate differentiation and reinvent the hotel business sustainably.

With more than 4,200 hotels in 95 countries, there is no better time for owners to join an international hospitality group of the size, quality and experience of AccorHotels.

To find out more, contact development.au@accor.com, or visit www.accorhotels-group.com

THINGS YOU NEED TO KNOW Melbourne’s first dual-branded hotel has opened in the heart of the CBD

08

Dunk Island to be revitalised with new five-star eco-resort New lease on life for Queensland island

06

AccorHotels opens its first high-rise dual-branded hotel Two popular brands brought together in one tower GUESTS ARE NOW being welcomed at AccorHotels’ new dual-branded property – the Novotel Melbourne Central and Ibis Melbourne Central.

The integrated 35-storey tower adds 483 rooms to the city’s inventory - 270 rooms under Ibis branding from floors 4-18 and 213 Novotel rooms on floors 20-35.

Two restaurants – Goldie Asian Canteen and Pretty Boy Italian Steakhouse – along with one bar, Floyd’s, make up the new hotel’s dining offerings. All three venues are under the careful culinary watch of Executive Chef Michael Smith.

Ibis rooms average 18 square metres in size and offer rainfall showers and a 49-inch flat-screen television fitted with Google Chromecast devices for guests to stream their own content. Novotel rooms offer upgraded amenities including granite and marble gold trim benches, rainfall showers and 55-inch televisions with Google Chromecast.

07

Westin begins growth phase with debut in Brisbane Marriott’s new brand for the River City

PURCHASE CONTRACTS HAVE been signed by an Australian property developer to restore Dunk Island as a premier destination along the Great Barrier Reef coastline.

Property Bay Pty Ltd, headed by co-founder Tim Sommers, has unveiled the Dunk Island Revitalisation Plan. Its centrepiece will be a ‘carbon positive’, five-star, low-rise 160-room eco-resort with multiple restaurants, swimming pools, a day spa and many other modern amenities including a championship golf course and conference centre.

In addition, the island’s real estate offering will include luxury villas, up to 500 beachfront ecosuites and apartments featuring solar panels and water tanks. The existing airstrip will be extended to cater to direct flights from Cairns and Townsville as well as Brisbane and Sydney. A 730-hectare environmental precinct will also feature – of which three-quarters will be protected in perpetuity.

Beginning with a USD$110 million (AUD$155m) capital raising – partly funded through cryptocurrencies – the island’s new developers are aiming to begin construction in the first quarter of 2019.

According to the developers, Dunk Island will be highly technologically driven and eco-friendly upon its reopening. Plans call for a zero-emission property with water-sensitive management plan where rooftop water can be harvested and used. r tanks will feature in a n d wate ew e ls an co-r e n a eso ar p l rt o o S n

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Du nk I

MARRIOTT INTERNATIONAL HAS opened the doors to the Westin Brisbane, the first time the wellness-focused luxury brand has operated in the Queensland capital.

Offering 260 guest rooms and 39 suites with floor-to-ceiling windows, the hotel is designed as a homely, natural city retreat. Each room is also equipped with the brand’s signature Heavenly Bed and Lavender Balm.

Public facilities include Eden’s Table restaurant – the hotel’s signature dining outlet under the management of Executive Chef Steve Sweetman.

Guests can also enjoy the city’s first hotel swim-up pool bar, with the adjacent Nautilus dining outlet serving light snacks. Also open is The Charles jazz bar, serving coffee by day and cocktails by evening.

Another key pillar of the hotel is its wellness facilities. Five treatment rooms are on offer at the Heavenly Spa by Westin – two designed for couples.

For those keen on exercising outside, the hotel has also devised five and eight-kilometre running routes through the city which guests can also take by themselves or in scheduled sessions with the hotel’s ‘Run Concierge’.

10 HM The Business of Accommodation

09

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Sheraton celebrates its Grand upgrade in style

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New look for luxury Sydney hotel

if e kn s ’ r e ub ign lic s des pace Wyndham will manage the world’s first s went under the certified ‘green for life’ hotel in Perth, WA

SYDNEY’S ICONIC SHERATON GRAND SYDNEY HYDE PARK recently capped off a fouryear transformation from its former identity to a new luxury name, celebrating with over 800 industry partners, friends and colleagues at a glamourous party.

Formerly the Sheraton on the Park, the title change to Sheraton Grand Sydney Hyde Park came following an AUD$50 million renovation which saw all rooms receive a makeover to a more refined, modern style and lounges revamped with upgraded furniture.

In upgrading the Sheraton Sydney brand, the hotel will also gradually implement a number of initiatives aimed at engaging the community. A variety of technology-driven spaces will be developed as a new Sheraton standard including communal dining, studios for groups to gather and new dining menus rolled out at restaurants which previously were closed during the day.

For more on the re-launch, check out our interview with Sheraton Grand Sydney Hyde Park General Manager, David Fraser, on page 28.

10

Fullerton Hotels to take over Westin Sydney in Australian brand debut Expansion for Singapore marque as it takes over iconic Martin Place edifice SINGAPOREAN HOTEL GROUP Fullerton Hotels and Resorts will next year expand outside its city-state heartland and into Australia with its first property coming through a takeover and rebrand of The Westin Sydney at 1 Martin Place.

Effective 18 October 2019, the historic edifice at Sydney’s GPO will open as The Fullerton Hotel Sydney, marking the brand’s first expansion outside of the Lion City. The new brand’s website – www.the-fullerton-hotel-sydney – is now live. Prior to the full rebrand in October 2019, a carefully planned restoration of the hotel’s exterior will be carried out.

Fullerton Hotels currently operates two properties in Singapore’s waterfront Bay Precinct in the form of the 2001-opened Fullerton Hotel Singapore and the Fullerton Bay Hotel Singapore, which first welcomed guests in 2010.

In a somewhat eerie resemblance, The Fullerton Hotel operates within the city’s General Post Office (GPO) a fact it will replicate upon its opening in Sydney in 2019. The GPO building in Singapore has been named a National Monument and while Sydney’s GPO is on the NSW State Heritage Register and the Australian Heritage Database, it has not yet been formally added to the higher-profile National Heritage List despite efforts being underway to rectify this.

Singapore’s Fullerton brand is on its way to Australia

11

Perth to open world’s first hotel certified ‘green for life’ Green lights all the way

WESTERN AUSTRALIAN DEVELOPMENT firm NXT TEC Ltd (NXT) is in the process of building the world’s first hotel to be declared ‘green for life’ through achieving a verified Environmental Product Declaration (EPD).

Once complete, the hotel will become the Wyndham LUX Perth Hotel managed by Wyndham Destinations. It will be located on the Great Eastern Highway in Rivervale and will feature 120 rooms over 10 storeys.

EPD certifications are independently verified under the Australasian EPD Programme, which assesses the environmental sustainability in the entire life-cycle of materials used in the building’s construction, including where they are sourced right through to dismantling and disposal in the event of future demolition.

The hotel will be constructed using the NXT Building System, which received the EPD certification based on its design. The system involves eleven separate technologies and will see the building pre-fabricated and assembled on-site, with foundation to completion expected to run for 12 months. An EPD assessment uses science to judge a building’s waste levels over its life-cycle, drawing on significant levels of data applied against strict rules.

Wyndham Destinations Asia-Pacific SVP Acquisitions, Procurement, Project Management and Technical Services, David Wray, said the company was looking forward to managing the lifetime green-certified hotel once completed. hotelmanagement.com.au 11

THINGS YOU NEED TO KNOW 12

Ground broken on Shangri-La Hotel’s maiden Melbourne property Shangri-La commits to Australia with new site in Victoria

TITLED ‘SAPPHIRE ON THE GARDENS’, the dual-tower property is located at 308 Exhibition Street in the CBD. The project was envisaged and designed by S P Setia, while Multiplex has been tasked with bringing it to life.

Shangri-La Hotel Melbourne will occupy part of the Western Tower, which will measure 62 storeys in height and offer around 500 hotel rooms. An Eastern Tower will be primarily residential, offering over 300 apartments, while both towers will be linked by a bridge at Level 46, which will also feature a SkyLounge overlooking the city, the Royal Exhibition Building and the Carlton Gardens.

The five-star hotel will also sit among Melbourne’s culture and theatre precinct, with Shangri-La Asia Limited CEO Lim Beng Chee saying the strong demand for highstandard accommodation evident in consistently high occupancy rates for the city showed the company it was time to enter Melbourne.

By 2022 when the new development opens to guests, Shangri-La Hotels will have four properties in Australia alongside the long-standing Shangri-La Hotel Sydney, Shangri-La Hotel, The Marina in Cairns and Brisbane’s Hotel Jen, the group’s four-star value brand.

Shangri-La will soon make its debut in Melbourne

‘Riley’ – the first of three new hotels from Crystalbrook – has opened in Cairns 13

Cairns welcomes Crystalbrook’s new ‘Riley’ to town ‘Bailey’ and ‘Flynn’ still to come CRYSTALBROOK COLLECTION HAS opened ‘Riley’ – the first of three five-star newbuild resorts in Cairns which form part of a major expansion for the upmarket lifestyle accommodation group.

Management joined with the 170 staff in opening the resort, which is located at the northern end of the Cairns esplanade, and its first guests to check-in.

Across the multi-storey resort are 311 rooms and suites, built around a 1,000 sqm lagoon-style swimming pool, artificial beach and secluded cabanas which are available for rent.

Each room is fitted with a Google Chromecast device to allow guests to stream their personal media on in-room televisions. Additional entertainment is also available via an internal system offering hundreds of movies and box sets available on demand.

At opening, only one of the resort’s three restaurants is open, with guests able to enjoy ‘Paper Crane’, a modern Asian restaurant and bar. Two further eateries are scheduled to open by 20 December 2018, these being the Mediterranean-inspired ‘Rocco’, which the hotel says is the first rooftop bar to be opened in Cairns. Finally, guests can also indulge at ‘Greenfields’, which focuses on raw delicacies and simple handmade recipes.

14

IHG opens world’s first voco hotel on the Gold Coast SB&G converts former Watermark Hotel in Surfers Paradise

THE GOLD COAST has cut the ribbon to signify the official opening at InterContinental Hotels Group’s maiden voco hotel.

Only a few months after first unveiling the new brand, IHG announced the world’s first voco would be on Queensland’s glitter strip in place of the former Watermark Hotel on the edge of Surfers Paradise. The new hotel will begin its integration into the local community through a packed calendar of social events open to visitors, from weekly trivia and high-tea experiences in its lounge.

The name voco – inspired by the Latin term meaning ‘to invite’ – is positioned as a modern lifestyle brand catering to equally modern professionals and leisureseekers, with a strong focus on sustainability and vibrancy.

City Mayor Tom Tate and Destination Gold Coast CEO Annaliese Battista joined executives from IHG and its property investment partner SB&G – owner of voco Gold Coast – to formally open the property, which features 389 funky and creatively inspired rooms and suites. In a nod to its sustainability outlook, rooms feature refillable soap dispensers as opposed to disposable bars.

12 HM The Business of Accommodation

Gold Coast dignitaries were on hand to open the world’s first voco

THINGS YOU NEED TO KNOW 15

Marriott putting its foodie foot forward on new dining website Feast on a new digital dish

Profiles on more than 70 restaurants and bars across the Marriott International hotel dining portfolio in the Australia and Pacific are featured on a new dedicated gastronomy portal now live from the global hotel juggernaut.

The portal – found at www.meeteatdrink.com.au – seeks to shine a greater spotlight on the exciting restaurants, talented chefs and extensive calendar of gourmet dining events in Marriott’s local scope.

In addition, site users can find dining coupons redeemable at a variety of outlets, special offers and recipes anyone can try at home.

Invitations to special events exclusive to Marriott Rewards members can also be found on the site. A series of events designed to showcase the culinary skills of Marriott’s chefs will soon be launched, comprising of a range of opportunities open to attend in person plus videos that can be viewed anywhere.

Marriott’s Australian foodie prowess is on show on the new website

16

IHG marks milestone opening with new underground hotel Why build up when you can build down?

SHANGHAI HAS BECOME the site of InterContinental Hotels Group’s milestone 200th hotel opening globally, with the property built into the wall of an abandoned quarry on the city’s outskirts.

Located at the Sheshan Mountain Range, Intercontinental Shanghai Wonderland features two floors above ground level and 16 below, two of which are underwater. Guests have access to 336 rooms offering waterfall and cliffside views stretching 88 metres below ground. The new hotel was developed by Shimao Group.

Among the accommodations below the water line is a two-storey loft style apartment, featuring a living room and outdoor terrace, while guests sleep underwater encased in an aquarium. Additional hotel rooms under the water are priced at a premium level and complemented by 24/7 butler service.

Days after opening, the hotel has already been nominated as one of the world’s greatest architectural and engineering marvels by National Geographic Channel’s MegaStructures series.

Two floors of the new milestone InterContinental are underwater

17

Wyndham unveils revamped Ramada Encore brand Facelift for select service brand WYNDHAM HOTELS AND RESORTS has unveiled a new logo, brand identity and concept room design for its Ramada Encore by Wyndham brand in a move it says will enliven the brand to be “Refreshingly Different”.

Key pillars to the brand reinvention as directed by Wyndham were to include elements of being “fresh, approachable and vibrant”.

Targeting the modern traveller, the new brand comes with it a new functional concept room design for travellers adhering to a budget.

In addition, multi-function public spaces are being redesigned as communal areas where guests can eat, drink and work. Spaces will be a mixture of semi-private booths and multi-tiered benches.

Encore’s new logo is a lower-case ‘E’, which it says reflects continual movement and symbolises a guest returning for an “encore”. hotelmanagement.com.au 13

THINGS YOU NEED TO KNOW 18

Insta standouts Four exciting hotel juggernauts you need to follow on Instagram

Kiwi designer WORLD played a central role in the new SO/ Auckland 19

SO/ Auckland invites guests to indulge their curiosity 01 Riley Cairns, QLD

Designed by eclectic brand WORLD, Auckland’s new SO/ has some bite to it

@riley.crystalbrookcollection SOFITEL OFFSHOOT BRAND SO/ has opened in Auckland, with AccorHotels welcoming the community, including “nosy neighbours”, to eat, drink and stay at the city’s new social hideout.

SO/ Auckland is housed at 67 Customs Street East, within the former Reserve Bank building and has been designed as a vibrant, energetic example of rebellious modern lifestyle. It is the first SO/ branded hotel to open in the Pacific region and the seventh globally.

The property features 130 rooms in either SO Studio, SO Cozy, SO Comfy or SO Club layouts, while a separate floor has been dedicated for Penthouse guests. Design layouts in each of the rooms can be selected by the guest as either Vapour, Liquid or Solid, with different styles across each.

Guests can opt for either City or Harbour view rooms, with the latter offering outdoor balconies.

02 Hotel Indigo @hotelindigo

20

TAA welcomes AHURI study into short-term letting loopholes Push for level playing field receives an industry-friendly boost

03 Art Series Hotels @artserieshotels

04 Six Senses Fiji, Malolo Island @sixsensesfiji

14 HM The Business of Accommodation

TOURISM ACCOMMODATION AUSTRALIA (TAA) has praised new research which shows blatant exploitation of loopholes allowing private residences to operate short-term letting outside of regulations.

The ‘Technological disruption in private housing markets’ report from the Australian Housing and Urban Research Institute (AHURI) looked at how short-term accommodation platforms contributed to housing affordability issues. The report also raises potential responses available to different levels of government.

A key finding from the study was that short-term letting (STL) platforms hindered housing availability in inner-city Sydney and Melbourne areas which the TAA says are highly attractive to both visitors and longerterm renters. These high-demand areas, coupled with falling bond lodgement rates and increasing vacancy levels, were removing properties from long-term rental markets and increasing housing unaffordability.

AHURI made four key suggestions. It recommended the implementation of a governmental registration system to enforce STL rules, localised strategies to limit clusters of STL properties in high-demand city areas, developing ways to limit or prevent STL homes being used as commercial enterprises for more than 90 days in one stretch, and ensuring data was kept up-to-date for further research.

THINGS YOU NEED TO KNOW

21

NZ investors plan Rees Queenstown brand expansion after management buyout Time for award-winning Rees brand to grow

22

TWO SENIOR MEMBERS of management at The Rees Hotel Queenstown, along with interests associated with New Zealand investment firm Pioneer Capital, have purchased management rights to the hotel and have now taken control as part of a broad plan to expand the brand into a chain of five boutique properties.

Current hotel CEO Mark Rose and Director Bruce Davidson have sought the interest of Pioneer Capital by promoting the hotel’s reputation for leadership and culture – two assets which will be leveraged as part of the development strategy for the brand.

By purchasing the management rights, Rose and Davidson plan to develop The Rees Hotel Queenstown as the centrepiece of a network of five hotels, each with their own identity and service standards.

23

Daydream Island sets soft Travellers 2019 reopening date not as loyal Whitsundays paradise almost ready to reopen as hotels think: Study

BOOKINGS AT THE completely redeveloped and revitalised Daydream Island in the Whitsundays are now open for stays from 10 April 2019 and onwards as the resort kicks back into gear.

Having been completely flattened by Tropical Cyclone Debbie in late March 2017, more than AUD$100 million has been spent by its owners China Capital Investment Group on a total regeneration of the property, literally from the ground up. The new opening date is a slight pushback from the previous estimate of late 2018.

From April next year, Daydream Island will reopen its doors to guests, offering an entirely new hotel and resort experience along with multiple new dining concepts.

North Queensland’s Daydream Island is almost ready for reopening

Data security is paramount

Travellers may not be quite so loyal to your brand as you may think

MORE THAN 80% of people would choose to revoke their personal information from hotel brands and loyalty programs if given the opportunity, according to research from Oracle Hospitality.

The study – conducted earlier this year and surveying 13,000 consumers and 500 businesses in major global markets – was conducted on behalf of Oracle by research consultancy Morar HPI which studied the attitudes of consumers towards loyalty programs.

According to ‘The Great Loyalty Divide: Business and Consumer Perspectives (Hotels)’, the study uncovered a divide between how businesses and guests perceive a brand’s loyalty program.

The report found businesses had three key misconceptions existed in the loyalty market space – thinking guests were engaged in their loyalty program, that offers made were relevant and that a loyalty program should exist only between the guest and a hotel brand. The study found that more than three in four people were highly selective in which programs they joined and that only 24% of people would sign up to multiple programs in search of discounts and bonuses.

Hoteliers surveyed revealed that in their opinion, more than half of their loyalty members were being sent special offers relevant to them. In reality, only 22% of customer respondents believed this to be accurate. hotelmanagement.com.au 15

THINGS YOU NEED TO KNOW 24

25

Deliveroo now taking room ARMA launches service orders for hotel guests online revenue Partner hotel brands allowing guests to charge takeaway to the room management qualification Learn new finance skills and boost your career

STUDENT INTAKES WILL begin in February 2019 for a brand new tourism industry qualification focused on hotel revenue management, Torrens University Australia has announced.

Conducted in partnership with the Australian Revenue Management Association (ARMA), the fully recognised qualification will be delivered 100% online and is aimed at industry professionals of all experience levels eager to develop their skills in the important industry sector.

Graduates will receive a Certificate in Revenue Management, which will be recognised above an undergraduate and can be applied as credit subjects towards a Masters degree or a variety of other courses.

For employers, ARMA said businesses will see profit improvements by investing in staff to take the course and learn essential skills for significant mutual benefit.

For Australia-based students, others eligible and for employers of staff undertaking the course, the federal government’s FEE HELP program will be available to subsidise study costs.

RESTAURANT AND TAKEAWAY food delivery service Deliveroo has expanded its business offerings, announcing it is now offering deliveries to hotel guests across Australia.

Following a trial with Meriton Suites, the company has signed new partner hotel organisations including Quest Serviced Apartments and TFE Hotels, covering its Adina, Travelodge, Vibe and Rendezvous Hotels brands.

Deliveroo says that by specifically partnering with hotels, it can work with properties unable to run a kitchen full-time to provide guests with a wide selection of cuisines from local restaurants and takeaway food outlets. Menus for restaurants serving the hotel can be placed in guest rooms or added to in-room compendiums either in paper or digital form.

Orders can be placed through the hotel and on delivery, collected by hotel staff, prepared with hotel crockery, cutlery and accompaniments and served to a guest’s room. Once finished, guests leave their tray outside the room to be cleared.

Revenue Management is a critical element in running a hotel Steady growth of the exclusive Regent brand is on the cards for IHG 26

IHG relaunches Regent Hotels brand with its first new signing Historic luxury brand to grow again following recent IHG acquisition

INTERCONTINENTAL HOTELS GROUP has relaunched the Regent Hotels & Resorts brand following the addition of Kuala Lumpur to the global network – the first hotel to be flagged under the brand since IHG acquired a controlling stake earlier this year.

Regent Kuala Lumpur will be situated around 45 minutes from KLIA and will sit within the emerging Tun Razak Exchange project which IHG says will become the city’s next financial district and an extension of the golden triangle.

The acquisition of the Regent brand adds a further luxury-tier string to the IHG bow in a market segment worth US$60 billion annually and growing. The company says it plans to grow the Regent name from six hotels presently to more than 40 around the world in key cities and resort locations.

For more on the Regent re-launch, check out HM’s exclusive interview with InterContinental Hotels Group CEO, Keith Barr, on page 26.

16 HM The Business of Accommodation

1-2 MAY 2019 GRAND HYATT MELBOURNE

SAVE THE DATES People, Product and Performance in a period of Unprecedented Growth www.ahice.com.au For tickets or more information call Interpoint Events on 1300 789 845, sponsorship enquiries contact Adam Daff at adaff@intermedia.com.au or 02 8586 6207.

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PRESENTS

AAoA launches NSW State Advisory Board Esteemed industry panel to advocate for the state THE ACCOMMODATION ASSOCIATION OF AUSTRALIA has continued to boost its local advocacy with the launch of the New South Wales State Advisory Board.

The Advisory Board was recently launched by The Honourable Adam Marshall MP, NSW Minister for Tourism and Major Events and Assistant Minister for Skills. The board is represented by Accommodation Association member properties across New South Wales and the Australian Capital Territory.

“The Accommodation Association’s NSW Advisory Board continues our initiative to ensure the interests of state-based members are more specifically addressed,” said the Association’s Chief Executive Officer, Richard Munro.

“According to Tourism Research Australia’s Tourism Businesses in Australia June 2012 – June 2017 - NSW is home to 34% of tourism business in Australia, exemplifying NSW’s position as Australia’s leading tourism state.

“Regional tourism has also benefited from the State Government’s Regional Event Development fund to encourage more business events and visitors into rural and regional NSW.” “We had a great turn out by the industry for the launch of the inaugural NSW State Advisory Board,” said Patrick Lonergan, Chair of the NSW State Advisory Board.

Top Row: Emma Waterman; Theo Whitmont; Patrick Cheok; Monty Maguire; Scott Boyes; Mark Ronfeldt and Damien Cameron.

Front Row: Julian Clark; Patrick Lonergan; The Honourable Adam Marshall MP; Marianne Ossovani and Richard Munro.

18 HM The Business of Accommodation

“I would like to thank the Minister for Tourism and Events, The Honourable Adam Marshall for his words of support to the Board and industry.”

“We look forward to working with both Government, opposition and key stakeholders in our industry.”

Members of the Accommodation Association New South Wales State Advisory Board include – • Chair – Mr Patrick Lonergan, Doma Group • Deputy Chair – Ms Marianne Ossovani, Elanor Investors Group • Ms Emma Waterman, TFE Hotels • Mr Damien Cameron, The Star Entertainment Group • Mr Mark Ronfeldt, Daiwa Living Matt Rubie Waldorf Apartments • Mr Matt Rubie, Frasers Hospitality Australia • Ms Monty Maguire, Quality Hotel Powerhouse Armidale • Mr Patrick Cheok, Mantra Group • Mr Scott Boyes, AccorHotels • Mr Theo Whitmont, Kincumber Nautical Village & Big4 Gold Coast Holiday Park • Mr Richard Munro, Accommodation Association of Australia

KEY NEWS

EVENTS WRAP-UP

Recent events hosted by the Accommodation Association of Australia Future Melbourne Forum, hosted by William Angliss Institute.

UPCOMING EVENTS FOR 2019

The Accommodation Association will be hosting its series of Signature Events in 2019, visiting nine locations throughout Australia. These include Cairns, Gold Coast, Brisbane, Sydney, Canberra, Melbourne, Hobart, Adelaide and Perth. Speakers will provide presentations on market intelligence, analysis and performance outlook for local hotels/motels. This will assist attendees with their budget preparations and marketing plans, to better prepare strategies and manage the hotel’s performance moving forward.

The Accommodation Association’s CEO, Richard Munro, will also be hosting forums in regional cities and towns to update local accommodation operations on our advocacy agenda and discuss issues affecting the local industry. These regional forums will take place in Launceston, Byron Bay, Bendigo, Ballarat and Darwin, with more to follow.

Canberra Hotel Market Update

ACCOMMODATION ASSOCIATION WELCOMES JANET O’BRIEN TO THE TEAM

The Accommodation Association is pleased to announce the appointment of Janet O’Brien to the position of Membership Development Officer.

Janet began her career in the accommodation industry as an owner/ operator of the Tilpa Hotel – an isolated outback pub on the banks of the Darling River. She later joined Star Ratings, at the time known as AAA Tourism, as an accommodation assessor. Janet remained with Star Ratings for twelve and a half years and has held the position of Assessor, Assessing & Quality Consultant and Operations Manager.

The Accommodation Association is excited to welcome Janet to the team. As we continue to increase our presence across Australia, Janet’s wealth of knowledge and influence in regional areas will be a great asset. Janet will work alongside National Membership Manager, Michelle King, to engage with our members to continually improve on our services and benefits.

Future Melbourne Forum Executive Lunch with Cr Sally Capp, Melbourne Lord Mayor and senior hotel leaders from across Melbourne, hosted by Crowne Plaza Melbourne.

Janet O’Brien

AAoA Executive Lunch - Canberra Hotel Market Update & Economic Outlook Forum, hosted by TFE Hotels’ Hotel Kurrajong.

hotelmanagement.com.au 19

OPINION

AHURI bolsters the ‘short term rentals’ battle Concerns about unregulated short-term rental accommodation’ remain unresolved to the detriment of the hotel industry, says Tourism Accommodation Australia (TAA) CEO Carol Giuseppi.

WE HAVE BEEN a strong advocate of sustainable growth in supply over the past seven years of tracking supply growth and performance in all markets.

Despite some progress after strong representations from TAA during the year, very real concerns remain about the growth in unregulated ‘short-term rental accommodation’ in the Sydney Metro area, which has more than 12,000 listings.

While we mounted a very strong campaign, we remain disappointed in an outcome which permits 180 days availability, a 75% opt in (not opt out) provision for strata properties and a 12 month review – although this was preferable to the original State Government plan of 365 day availability!

Recently, new research from the Australian Housing and Research Institute (AHURI) revealed Sydney was in the global top 10 cities for Airbnb listings with strong growth over the last four years. The AHURI report pointed to clear evidence of the links between short-term letting and housing availability, and noted a high concentration of commercial short-term listings in suburbs like Bondi, Bronte, Darlinghurst, Manly and Coogee – attractive areas for visitors and renters alike.

TAA welcomed AHURI’s backing of a regulatory limit of 90 days for short-term letting – half that currently allowed in NSW – and something we have pushed in favour of for some time. Together with other industry bodies, we will continue to advocate for tighter regulatory controls and registration. Without these, any 12 month review will be meaningless.

Some good news is that at Federal level, the government has acted to ensure unregulated operators pay tax on earnings from short-term rentals. The introduction of income tax data matching by the ATO in August was a great outcome in identifying tax evasion and enforcing compliance by individuals in the ‘short-term rental accommodation’ market. TAA particularly welcomed the requirement by the ATO for platforms to provide detail of all payments made to accommodation providers for the 2016-17 to 2019-20 financial years’ data. This has implications for the collection of both income tax and capital gains tax.

Unfortunately, the regulatory and legislative requirements imposed by all levels of government on ‘tourist and visitor accommodation’ 20 HM The Business of Accommodation

but not imposed on short-term rental accommodation has the potential to jeopardise ongoing investment in new accommodation supply. TAA research commissioned in mid-2018 on ‘Supply and Demand in Sydney’ points to some concerns around the percentage of the current healthy supply pipeline which will actually eventuate.

One of the main reasons for this is commercial and residential developments have a higher value on a built-per-metre basis on average. The current uneven regulatory environment threatens to further exacerbate this situation, favouring ‘short term rental accommodation’. While the softening in market performance will lead many hotels to welcome this news, it remains important all levels of government support the growth in regulated visitor accommodation which brings much needed activation and visitor infrastructure to the city.

Back at Federal level, TAA has recently been in Canberra with the National TAA Board, meeting with key Ministers on our pre-election policy. In particular, we were active in highlighting labour and skills shortages as a key priority, with specific concerns around access to skilled migration. Together with stricter labour market testing requirements, the Federal Opposition has identified the need for yet another review of the skilled migration lists and the establishment of the Australian Skills Authority, whose task will be overseeing the lists.

In support of this, the Senate, moved by Labor, has launched an inquiry into the effectiveness of the current temporary skilled visa system in targeting genuine skills shortages. To build our evidence base on skills shortages and the importance of immigration, TAA is currently updating our NSW Labour Trends in Accommodation bi-annual research study.

At the same time, we are continuing to work on the next stage of the Hotel Career Expo to build the profile of careers amongst school students, careers advisors and parents and encourage them to consider the diversity of career options in the industry.

In closing, I would like to take this opportunity to wish you all a very happy and safe festive season and New Year. See you in 2019! n

OPINION

Building the concierge of tomorrow Concierges learn best by meeting tourism operators face-to-face in their cities, writes former Les Clefs d’Or Australia President Peter McBrearty.

THE RECENT ADDITION of our two newest members – Rikki Browne of The InterContinental Sydney and Dean McWhinney of The Grace Hotel Sydney – has taken our national membership to a record level. A large number of promising prospective members are in line and expected to apply for the next round of membership interviews in the first half of 2019.

This ongoing increase in active membership is particularly timely, given the number of new premium hotel properties due to open in our major cities over the next few years leading to a strong related demand for highly qualified Concierge staff.

New properties are also expected to open across the Tasman in New Zealand – and as they do – similar opportunities are expected to arise for our colleagues within Les Clefs d’Or New Zealand.

To assist with developing the up and coming Concierge of tomorrow, we have continued to run training initiatives in each state for prospective members. On the international front, Nick Bocock of The Sofitel Wentworth also co-facilitated a training workshop in Bangkok for an audience of Concierge from Thailand and Myanmar.

We have arranged a number of successful events over the course of this year, including Tourism Expos in Sydney and Melbourne, designed to provide an opportunity for attraction operators and tourism related companies to showcase their products directly to our members and their front of house associates. The success of these expos was perhaps best exemplified by the fact that spaces for both events quickly sold out, with waiting lists remaining of companies eager to participate. Concierge

scavenger hunts were run in Brisbane, Sydney and Melbourne, essentially informal training exercises designed to increase the local knowledge of Concierge and front of house staff. Finally, Les Clefs d’Or Golf Days were held in Sydney and Melbourne and were a great networking exercise.

Once again, we also held the ever popular Concierge Hospitality Balls in Brisbane, Sydney and Melbourne. As always, we could not hope to stage these events without the assistance of our friends and associates within the hotel and tourism industry - and in particular, the management of the hosting properties. We would very much like to thank the General Managers who have continued to support these events, including Peter Savoff of Emporium Brisbane, Ronald Van Weezel of Hilton Sydney and Clive Scott of Sofitel Melbourne, all of whom were kind enough to support and host the 2018 Concierge Hospitality Balls. This year (in conjunction with our other events), we have raised close to $31,500 for our respective state charities.

Looking forward to 2019, we have the UICH International Congress in Cannes, France in March, our National AGM in Sydney and also the South East Asian & Oceania Congress in Singapore in August. The prospects for Les Clefs d’Or Australia have never looked better and we wish all of our friends and associates in the hotel and tourism industry an equally prosperous and successful new year. n Peter McBrearty is a former President of Les Clefs d’Or Australia and Chief Concierge at The Langham, Melbourne. hotelmanagement.com.au 21

HM Q&A | PROPERTY PROFILE Dan and Dion Bisa have extensive family history in serviced apartments

Hotel East riding a fast track north HOTEL EAST, LOCATED IN THE FASHIONABLE AREA OF KINGSTON IN CANBERRA HAS RECENTLY CELEBRATED ITS SIXTH BIRTHDAY. GENERAL MANAGER, TODD HANDY, SAT DOWN WITH JAMES WELLS TO SHARE THE SECRETS OF THE PROPERTY’S SUCCESS.

I

So Todd, when did you join the hotel?

’ve been on board from the very beginning, as the hotel was coming out of the ground. Before coming here, I worked for Four Seasons Hotels in the US and finished my study at a hotel school in Canberra at the Hotel Kurrajong, which was started by Cornell University and the ACT government. I began here about eight months before we opened in August 2012, to work with Dan and Dion (Bisa - hotel owners) on what we wanted to create in terms of culture and service levels and establish training procedures.

They had everything worked out in relation to the rooms and how that should be set out. The family has been among the first designers and operators of apartment hotels in Canberra for many years prior to the opening of Hotel East. They noticed there was a big gap in the market – and so they sought to create an apartmentstyle offering where you expect everything of a hotel, but the rooms are more spacious and comfortable.

22 HM The Business of Accommodation

Service is a particular focus at the hotel - can you explain how this is achieved?

From a service perspective, what we wanted to achieve was a casual attentiveness. Canberra as a location is a very special market. From my perspective – after working in other hotels locally and overseas, guests here generally want to be left alone – they don’t want a bunch of bellmen and staff clamouring all over them.

In terms of our service model, if people want anything, they will have it straight away. We try to make everything convenient for them in the room. One of the reasons why we have the front desk the way it is, is so my team can establish a relationship with our clientele.

There is also no separate concierge desk because I don’t believe you should wait in line to check in and then be directed to another location to get service and advice about things to do in Canberra. All of my team are trained in the front of house and back of house as well as about Canberra in general – they know what to suggest to a business client or a leisure guest.

What can you tell me about the unique room configurations?

When Dan and Dion were designing the rooms, they didn’t want to play it safe with a normal beige hotelstyle cookie-cutter approach. They wanted nice warm colours that you can live in and furniture that could wear pretty well. They chose artwork from online supplier Red Bubble which would engage the guests and get them thinking. Power points are conveniently located above the desk and the bedside tables, so you are not pulling away furniture to access power. They took a practical view while also keeping it upmarket.

The formula seems to have worked, as we became number one on TripAdvisor shortly after opening and we are still there now. We obviously have a fantastic location and we found a great block available for sale that is walking distance to Kingston and Manuka.

Are business guests your main focus in Canberra?

From Monday to Thursday, it is predominantly business as well as the government and parliamentarian-style traveller. They usually come from Sunday or Monday and depart by Wednesday or Thursday. Canberra has traditionally had an issue with getting people in for the weekends, but [the city] has worked hard with everything from Visit Canberra to operators of cafes, museums and attractions

Families love Hotel East’s friendly restaurant vibe

i’s in ost Ag

ec at eri ng

HM Q&A | PROPERTY PROFILE

ha sn

eve r be

en so popular with

nc re e f con

to create great venues in their own right. It is becoming a more popular location for people to get away from Sydney and regional NSW and have a great time.

How do you target the family or leisure markets?

When we opened, Dan, Dion and myself all had young families and what didn’t exist at the time were family suites. So we re-configured two of our adjoining studio rooms with bunk beds, bean-bag chairs, XBox 360 consoles and kid-friendly artwork again sourced from the Red Bubble group and made it so that families could come here and feel comfortable.

If you can make the kids feel comfortable and they are not annoying the parents – the family is going to have a much better time and want to come back. Those two rooms became so popular for us that we ended up having to buy more bean-bag chairs and Xbox 360s. Our split is definitely more business at around 80% and 20% leisure, but there is definitely an increasing ‘Bleisure’ group.

Can you tell me about the hotel’s F&B focus?

Dan and Dion are Italian by heritage and are particular about the mix of business we have on the ground floor.

One thing they really wanted and felt was missing in the inner south was something for 30s-50s who wanted to go out for a drink without having to talk over music and without televisions showing sport in the background, yet still offering a good fitout.

They wanted Joe’s – named as a tribute to their father Giuseppe – to be a small bar that was a bit of an institution and wouldn’t phase in and out of trend, but was fitted out well and offered lovely Italian wine, cocktails and complimentary food. Joe’s was opened in August 2015 and the food became so popular that people started booking it out like a restaurant. We tried to fight it for a while, but then we let it be what people wanted it to be. People would still come for a drink but because we have so many different styles of seating, people could also have a dining experience.

We then brought in an Italian pizza oven for our restaurant Agostinis, which seats about 120 and now does conference catering and room service. Since then, we’ve seen conference business go through the roof.

About 85% of the clientele are locals, not hotel guests.

We set out to achieve somewhere that was appealing to locals and while some people would say that the percentage of hotel guests needs to be higher, we are something of our own worst enemy as we are a five minute walk to both Kingston and Manuka, so the reason people stay with us is to visit these places nearby. n

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hotelmanagement.com.au 23

AN HM x CHOICE HOTELS ASIA-PAC PROMOTION

ChoiceHotels Asia-Pac is E firing up Choice Hotels Asia-Pac, one of the largest hotel franchise groups in the world, is celebrating a successful year of growth in Asia Pacific.

ight properties have been added to the Choice portfolio this year and a further two are on track to open by the time the sun sets on 2018. This includes several notable additions including the opening of its largest property – the 214-room, four-star, Ingot Hotel Perth, an Ascend Hotel Collection member in Western Australia.

Now, with more than 300 hotels and over 11,000 rooms in its property portfolio, Choice Hotels has firmly established its position as a leader in the accommodation market with brands including the Ascend Hotel Collection, Clarion, Quality, Comfort and Econo Lodge.

Choice Hotels Asia-Pac’s franchisees have achieved solid RevPAR growth over the last twelve months with a 5.7% increase in average daily rates (ADR).

Choice Hotels Asia-Pac’s senior leadership team. L-R Joseph U, Finance & Credit Manager; Patricia Hearns, Development Manager; Scott Armstrong, Development Manager; Telena Frost, Revenue Manager; Tim Mayoh, Development Manager; Trent Fraser, Chief Executive Officer; Peter Doherty, Senior Sales Manager; Anthony Stanley, Director of Revenue Management & Distribution; Paul Bromley, Chief Financial Officer; Debora Carnicer, Revenue Manager; Laura Mullins, Brand & Loyalty Manager; Jessica Currell, Franchise Services Manager and Kari Hunter, General Manager, Marketing

24 HM The Business of Accommodation

COVER STORY Choice Hotels Asia-Pac CEO, Trent Fraser, confirmed that the business’ strong performance and growth is attributed to an increasing demand for affordable and quality accommodation in the Asia Pacific region and the franchisor’s supportive, collaborative and innovative franchise model.

“We are proud to offer our franchisees a framework that sets them up for success including an industry leading, cloud based reservations platform, national marketing, a global loyalty program and the benefits of being associated with a strong and respected hotel brand”.

An initiative launched at the beginning of the year now netting significant returns for participating franchisees is Choice Hotels’ Revenue Management program, which supports franchisees in growing their top line revenue.

The program allows franchisees to focus on the operational side of their business while an experienced Revenue Manager helps them grow their room revenue.

This is done by reviewing the property’s room rates strategy on a daily basis and ensuring that the hotel is

“Choice Hotels’ properties are experiencing three-fold revenue growth compared to nonrevenue managed properties.”

Choice Hotels Asia-Pac’s Anthony Stanley

Ingot Hotel Perth, an Ascend Hotel Collection member

Interested in joining the Choice Hotels network?

Get in touch today JoinChoiceHotels.com.au

adapting to market conditions and competitor trends.

The specialised program is an optional support package and in its short life so far, over 20 properties have signed up to participate.

Choice Hotels Asia-Pac’s Director of Distribution and Revenue Management, Anthony Stanley says: “Engaged franchisees are integral to the growth of our business and Choice Hotels’ Revenue Management program offers business owners support and a clear road to success.

“We have been extremely encouraged by the positive feedback we’ve received from our partners and the impressive results and return on investment this program has already delivered. We’ve seen that participating Choice Hotels properties are experiencing three-fold revenue growth compared to non-revenue managed properties,” Stanley said.

Amid a competitive industry landscape, Choice Hotels’ growing hotel footprint and franchisee base has seen the Asia-Pac team firmly focused on driving more direct business into its hotels.

The organisation’s sales team has yielded impressive results, including a 6% year-on-year increase in GDS reservations, growth in negotiated rates (+16%) and direct corporate (+17%) reservations. These changes have led to franchisees enjoying an increasing number of direct bookings, in place of online travel agency bookings.

Choice Hotels Asia-Pac’s General Manager – Marketing, Kari Hunter, confirmed the business’ marketing strategy has focused on driving reservations through direct channels. This approach has led to a 18% year-on-year increase in bookings through the company’s digital channels. Key to this achievement has been increased investment in online including meta and the hotel group’s dedicated online travel planning platform, Needabreak.com, which continues to inspire people to take more short breaks, showcase local destinations and promote its metro and regional properties.

The marketing focus has also extended to Choice Hotels’ loyalty program, Choice Privileges, which has a thriving membership base of engaged travellers who value affordable, quality accommodation.

“With more than 40 million members globally, our market-leading loyalty program is a valuable asset to our franchisees and is responsible for generating a high volume of direct, repeat bookings. We’ve seen a 27% increase in the number of member rate nights booked over the last year,” said Hunter.

Choice Hotels Asia-Pac has forecast continued growth in 2019 on the back of several recent openings in the last quarter of 2018. Its presence in Asia will also continue to grow with several new properties expected to join the region’s portfolio in the near future, most notably the Quality Hotel Shanghai Pudong Airport and the Quality Hotel Hangzhou in China. n hotelmanagement.com.au 25

HM Q&A | LEADERSHIP

Keith Barr’s global ambitions IT HAS BEEN A BIG YEAR FOR INTERCONTINENTAL HOTELS GROUP CEO, KEITH BARR. IN HIS 12 MONTHS AS CEO, HE’S TAKEN OVER A LUXURY BRAND, LAUNCHED A NEW HIP UPSCALE ONE AND HE’S ONLY JUST GETTING STARTED. HE SAT DOWN WITH JAMES WILKINSON AT HICAP IN HONG KONG TO TALK GLOBAL GROWTH AND MUCH MORE.

Keith, it’s an exciting time for IHG in the AsiaPacific region isn’t it?

F

antastic to be here at the InterContinental Hong Kong, which will be closing in 2020 and returning to the market in 2021 as The Regent.

It’s kind of a rebirth for an icon of the hotel industry. We’ve been bringing the Regent brand back to the marketplace (at HICAP), talking about how we’re contemporising and evolving the Regent brand and meeting the development community across AsiaPacific. I’m really excited about what we are hearing for the interest of Regent across this part of the world.

For many years it was one of the great ‘lost’ brands of the world and you are already bringing it back to fruition aren’t you?

The latent love for the Regent brand is something that I knew existed but has continued to surprise me.

People have been telling me ‘my honeymoon was in the Regent in Bali’ or ‘my first job was in the Regent in Sydney’ and so in all those markets across AsiaPacific and globally, we’re seeing people want the Regent brand to come back into those markets and 26 HM The Business of Accommodation

we are having great [development] conversations in cities like Rome, New York, Sydney, Bali and Tokyo.

You certainly haven’t been sitting still in your first 12 months at CEO. You’ve introduced new brands to new markets and invigorated others elsewhere. What have been your highlights?

It’s been a great first year. We’ve launched new brands like Avid Hotels in the U.S where we have added 130 there and we are now taking that to Germany, Mexico and Canada. We launched the voco hotel brand recently with four signings in Australia and more of those are happening in Europe as well. And we have the Regent Hotel brand so we’re really seeing great momentum across the brand portfolio and accelerating our growth.

When you look at those markets, obviously Australia is very important for you? There are more than 20 properties coming within the Australasian region right now, which is a lot since you were based there in the late 2000s. This is really huge growth for IHG.

HM Q&A | LEADERSHIP

“We continue to raise the standard because customers want to see our brands continue to evolve and grow.”

It’s really exciting to see what’s happening in Australia and New Zealand and across the Pacific right now. There is great momentum and domestic development. People in Australia are building for Australia. We have Hotel Indigo, we have a number of Holiday Inn Express’ [and] our wellness brand, Even Hotels. So it’s really exciting to see the growth there – fantastic product in great locations.

It just continues to grow. The demand for leisure as you’re seeing again is emerging markets, mature, growing wealth, travel becoming easier and less expensive, leisure travel is just booming around the world. With that ‘Bleisure’ piece, people say, ‘I’m going to do a three-day meeting and I’m going to stay over the weekend’ or ‘I’m going to fit in an additional day’. It’s become the nature of travel now.

Yes, it’s now going to be the Kimpton Fitzroy in Russell Square. Just a stunning hotel. I think the building was built in 1891. We did a deal and across the UK we picked up 12 incredible assets in Birmingham, Manchester, Edinburgh and London. Heritage hundred-plus year hotels. So we’ll have four Kimptons, a few vocos, we’ll have an InterContinental going into Edinburgh. It’s a great portfolio of hotels there.

What’s your elevator pitch on voco? If I was a developer, why would I sign with you?

You haven’t had to acquire much in the last few years to achieve this. There’s been a couple of little strategic investments and the UK deal is just one of them, but there has been a lot of strong internal growth as well.

Four voco hotels have been signed in Australia so far, with the world’s first opening on the Gold Coast recently

That’s the great thing about IHG. We have such a great brand portfolio and an organic growth story too.

So when you think about the first half of this year, we’ve had the most signings in over a decade and the most hotel openings in over a decade. So we’re sitting now at over 800,000 hotel rooms open and over 250,000 in development. That’s about 1,700 hotels.

That’s principally an organic growth story which creates huge value for our shareholders and great experiences for our customers.

We have a number of developers who love what I call a ‘programmatic brand’. Like a Holiday Inn Express.

It’s turn-key. We’re going to tell you how to build it, what the room is like, where to buy the bed and so forth. So it’s really easy to do. We have a lot of developers who want to put their own personality into it too. So they want to be in the power of our enterprise at IHG but want to bring their own personality into the design, and voco lets them do that. So there’s some distinct hallmarks of the brand around the arrival, around food and beverage in the room. But the design can reflect the local environment in the market and lets the owner get a bit more involved in that, which is a great experience for them.

en ti

sa

What are some of the ways IHG is innovating in terms of technology?

The Re g

We continue to raise the standard because customers want to see our brands continue to evolve and grow. So as we bring in new assets and new brands and new product into markets, it does push owners to say ‘you know what, we need to be competitive’, which at the end of the day is a great thing for our guests because they are getting wonderful experiences.

The great thing about IHG is our ability to play across the chain scale of hotels. So for that roadwarrior in the United States, we have a Holiday Inn Express. For the international business traveller, we’ve got InterContinental, and we will be hitting 200 InterContinentals around the world too. We have the brand portfolio and we tie all that together with an incredible loyalty program with over 100 million members. So it’s a great way for us to engage in that segment of business.

What are your thoughts on ‘Bleisure’? It’s one of the most exciting market segments anywhere in the world these days.

Looking on a global scale, all the big gateway cities are seeing changes. Hong Kong is becoming a Regent. Sydney’s big for you. And in London, you’ve just done a huge deal to take over one of the capital’s most beautiful new hotels.

With all these new hotels coming along, is it easier or more difficult to deal with existing hotels that need to renovate?

It’s no secret IHG has been one of the companies that has climbed the ranks in the business travel market in the last 30 years. You have brands that do suit business travellers, from the boutique Kimptons right through to the luxury InterContinentals and Regents.

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We’ve launched our global reservation system, which is an industry-leading cloud based system. We’re about 97 per cent complete and in over 5,000 hotels. Effectively we’ve moved away from the traditional mainframe technology platform to cloud-based which gives us such incredible flexibility and functionality. I’m happy to see it going so well. n hotelmanagement.com.au 27

HM Q&A | GENERAL MANAGER

Sheraton’s Grand Sydney arrival AMID ONE OF THE BIGGEST TRANSFORMATIONS MADE BY A SINGLE HOTEL BRAND IN SYDNEY IN MANY YEARS, ONE MAN HAS BEEN AT THE HELM LEADING THE TEAM THROUGHOUT. FOLLOWING A GRAND UPGRADE AND BRAND RELAUNCH, MATT LENNON CHATS WITH DAVID FRASER, GENERAL MANAGER OF SHERATON GRAND SYDNEY HYDE PARK.

I’d like to start by hearing a bit about your professional journey to this point. Where else have you worked? And how did you get to your role here?

I

t’s been a long journey. I’ve got a big birthday next year.

I started in Auckland and I’ve gone on to hotels after doing my commerce degree at the University of Auckland. And I was working at the Hyatt across the road in Banquets and Bars.

I finished my degree and got my first job working in Finance for the Hyatt. Did that for about three years and then I actually got an opportunity from the GM to do something else in food and beverage operations. I analysed F&B and found Banquets weren’t making as much money as they should.

The next day he said, you’re now Banquet Manager.

So thankfully, I got my first real opportunity in management by the GM giving me a chance. It was the hardest year I’ve ever worked, actually, if you can imagine going from Finance to Banquet Manager.

I wanted to climb the ladder, I was young and hungry at about 23 or 24, possibly even a little bit older. I ended up jumping ship and going to AccorHotels as my first F&B management role. After that, I moved to London and worked [there] for 10 years across three properties. Did an opening, worked my way up to Hotel Manager, took a year off, travelled the world and met my wife in London. I went to South America, the States and ended in Sydney. Drove past this hotel [at the time Sheraton on the Park] after a week, my wife was in Sydney and she says: “Wouldn’t it be great if you ran that hotel”? And then, three months later, I was Hotel Manager here.

I did my first year with the Four Points in Darling Harbour – Australia’s largest hotel and then made it even 28 HM The Business of Accommodation

“Marriott does a great job developing our young people coming through. I think we have many GMs that are not even in their 30s.”

bigger. As you know, 900 keys and largest convention facilities. And then I came here two years ago.

Who would you say has been the biggest professional influence on your career? And how have you modelled your work on that person?

I think everybody you come in touch with influences you. I think both the people you work for and work with. I mentioned the GM, Geoff Johnson, actually gave me a chance as Banquet Manager, many years ago.

And then, I’d have to say my current boss, who I’ve worked for now 14 years. Sean Hunt. I thought I was a pretty good operator beforehand, well, he made me even better. And he gave me my first GM opportunity and took a risk, really, giving me the largest hotel and a key hotel for conferences.

Sheraton Grand’s rooms, pool and Club Lounge have all taken on more modern colour tones

HM Q&A | GENERAL MANAGER What skills do you feel a modern General Manager needs which may not have been such a priority in years past?

It’s interesting because the industry’s changing rapidly. You have to upskill frequently. The old days of coming through the Food & Beverage track, or through Rooms, I think you need to be very good at sales functions, you need to make sure you surround yourself with good people that have the skills you don’t have, particularly in the digital world.

I’ve always believed in leading from the front, and I don’t think that’s changed. And I think that’s key for a GM. It’s best to be out on the floor rather than in an office. You can’t run a hotel from the office, I can’t. And if you’ve got the right people in the right positions, and everybody’s aligned, I think you’ll achieve what you want to achieve.

What advice would you give to the next generation of General Managers about chasing opportunities and particularly those who want to aim for a luxury brand like Sheraton?

I think there’s been no better time to be in the sector. I mean, tourism globally is just going through the roof. You’ve got companies like Marriott with 6,500 hotels now. If you want to travel the world, I would jump on board very quickly. I think companies tend to take more of a risk with people, so you’ll find that people are being promoted a lot earlier. I think GMs used to be made when they were 40 years of age, I think we have many GMs that are not even in their 30s.

You’ve got to allocate the right individual to the right place. I think if you’ve got a hotel the size of Sheraton Grand Sydney Hyde Park, you’re going to need someone with experience to take that over. And we do a great job at Marriott in developing our young people coming through. We have people that move from Rooms to Sales & Marketing to F&B. And I encourage that. When you get to the GM, you want to make sure that you understand all the aspects of running a hotel.

What’s the greatest lesson you’ve learned through a real experience in your career?

Good question. I’m a great believer in leaving the hotel better than you found it. So, I always look beyond the next 12 months. I look further afield, as we have done with this hotel. And I think that inspires people.

If you could talk to your younger self at a past point in your career, what advice would you give him?

Another good question. Do it all again? I mean, I have no regrets of what I’ve done. I’ve got a great career, a great job. I think I’ve got the best hotel in this part of the world, at least. Great family – I’d probably add more of a work / life balance to my career.

I talked about the size of the company. I’m thinking of opportunities, so I would encourage people to move overseas, experience different cultures. That’s what the industry’s all about.

I’ve been very fortunate. n

HM Q&A | SUPPLIER PROFILE

Dyson taking hotel appliances to new heights

Lights adopt heat pipe technology and allow for a gentle or bright light to suit needs.

On first inspection, Dyson may appear somewhat space-age. But the company is radicalising the world of appliances and bringing the future to life with products most of us have never seen before. And hotels are lapping it up. HM digs a little deeper and finds out a little more about this most curious of appliance brands.

Dyson has a significant range of appliances and products on the market. Do hotels have access to the full range or is there a specialised selection for commercial clients such as hotels?

Dyson‘s full range of machines are available to businesses including hotels. There are however products that are only available for use in commercial spaces including Dyson Airblade™ hand dryers (Taps, dB and V) and Dyson Cu-Beam™ suspended light range (Up, down and duo).

Dyson engineers have isolated motor noise, helping its fans run nearly silently

Are hotels encouraging Dyson to put its futuristic spin on other appliances that they can put in their hotels and rooms?

We often receive requests for tailored modifications to our current range. Many of our customers know that at Dyson, we transform every category we enter with radical and iconic reinventions that work, perform and look very different. We’re about better ideas and better technologies to solve the problems that others often miss or ignore.

How does Dyson work with hotels to provide products that suit a hotel’s colour scheme? Can hotels request Dyson products in certain colours?

Dyson already offers a range of machines in different colours. We often work closely with hotels to select from our colours available that will best suit their design. Unfortunately we cannot facilitate specific colour requests but customers are generally able to find something in the range.

Are Dyson products better suited to the luxury end of the market or would Dyson consider more economical products for other market segments?

Dyson Airblade™ hand dryers and hair dryers are growing in popularity among hotels

Dyson machines are suitable in any hotel environment, especially for operators who are interested in having products that solve the problems that others often ignore. Our machines are a long-term investment and are built to last. We have committed to a £2.5bn investment programme and now employ 4,450 engineers and scientists globally. n hotelmanagement.com.au 29

HM Q&A | GENERAL MANAGER Pan Pacific Melbourne’s main restaurant is a feast for all senses

CRAIG BONNER KNOWS EVERY INCH OF THE PAN PACIFIC MELBOURNE. HE WAS THERE BEFORE PAN PACIFIC WAS, AS MATT LENNON DISCOVERED.

The art

master

f you’re going to take over a hotel, why not take the best people with it. That’s exactly what Pan Pacific Hotels Group did when rebranding the former Hilton South Wharf in Melbourne as the Pan Pacific Melbourne. General Manager Craig Bonner was part of the furniture then and remains a critical part of the operation today.

Built at the same time as the adjacent Melbourne Convention and Exhibition Centre in 2009, you’d be forgiven for mistaking the lobby with the middle of an art museum. Ever the art lover, Bonner’s involvement in deciding or influencing which pieces

30 HM The Business of Accommodation

would have the greatest impact could be construed as both masterful and eclectic. There’s a good mixture of both. Working closely with local and international artists, the hotel regularly showcases an array of colourful, intriguing and inspiring artistic pieces. Depending on the season, you may see anything from highly colourful, post-modern interpretations of psychedelia through to confronting portraits of great Australian and international identities from years past.

Two permanent pieces you cannot miss though adorn the walls directly behind the check-in desk and alongside the main

HM Q&A | GENERAL MANAGER Craig Bonner’s level of attention to detail frequently gives the impression he can actually be in two places at once

Most rooms overlook the beautiful Yarra River

elevator bank. Respectively, the first you will encounter is sure to spark curiosity. Those with a keen eye will notice it is made of mesh metal similar to the material you’ll find in your kitchen scouring sponge. While you might wonder why, it is no less impressive to see the piece cover virtually the entire wall space.

Perhaps the piece by the elevators can be more clearly discerned as being made of braided anchor rope, one of many relics in line with the hotel’s classic nautical theme.

If art is your thing, Pan Pacific Melbourne’s Art Gallery on Level 4 should be on your list of things to see. With sufficient notice, the hotel can even arrange a tour of the gallery with the museum’s art curator.

As the hotel overlooks the Yarra River from most rooms, we’re told this maritime link was a key consideration in the hotel’s design.

“Pan Pacific Melbourne was designed with one eye firmly on the thoroughly interesting maritime history of the precinct, as the original wharf district in Melbourne,” Bonner tells HM. “Everything from the timber-clad wall and massive ceilings of Spotted Gum speak of the era of the tall ships. This is effortlessly woven in to the design and makes the hotel unique. We continually receive fantastic comments about the ambiance.”

As one of only two Pan Pacific-branded hotels currently in Australia (the other is in Perth), Bonner knows he is essentially one of only two public faces occupying General Manager roles for the company in this market. Essentially, he is the man for the entire east coast. While head office in Singapore is highly effective in its support and guidance, Bonner is under no illusions as to his responsibility in ensuring the Pan Pacific brand grows through day-to-day customer service.

But for the opportunities at play, there are challenges too.

“There are certainly some opportunities for amplifying the brand further to consumers, as we are a relatively young brand. Having just completed

“We continually receive fantastic comments about the ambiance.”

an AUD$5.5 million refurbishment, the feedback on the new Pacific Club Lounge and rooms is excellent. We need to shout from the rooftop about it so the travelling public get to experience this gem on the Yarra River.

“We are extremely fortunate that the recent investment in the DFO shopping mall expansion and the Melbourne Convention and Exhibition Centre expansion totals hundreds of millions of dollars and is directly aimed at growing visitation. Just across the river, major new-build office towers are nearing completion, creating further demand. So, we fit in as the only high end hotel at this end of the city.”

As well as seeing all and knowing all that takes place within the walls of Pan Pacific Melbourne, Bonner also has one-eighth of an eye on the bigger picture of tourism in the city. As the fastest growing capital in Australia, the opportunities for the brand to grow can also be one of its drawbacks. More visitors coming to Melbourne is a great thing, but with industry success comes a rise in competition.

“An opportunity for the brave is to create exceptional experiences and products that ensure we rebel against the commoditization that will otherwise exist. One of the biggest challenges is that a flock of new hotels is descending on the city, so we need to be thoughtful, energetic and nimble to make the most of the opportunities.”

Sounds like a challenge the hotel, and Craig Bonner, are well and truly up for. n

Pan Pacific Melbourne’s palatial Yarra Suite

hotelmanagement.com.au 31

FOOD & BEVERAGE

CULINARY

DELIGHTS

The hottest food and beverage trends you need to know

AT THE HEART OF EVERY GREAT CHEF, SOMMELIER AND F&B MANAGER IS A KEY SENSE OF CREATIVITY. AS EACH WOULD ATTEST, A KEY INGREDIENT IN DISCOVERING THAT EXCITING NEW TASTE AND FLAVOUR IS EXPERIMENTATION. WE’VE SEARCHED THE WORLD FOR WHAT IS GETTING THE WORLD’S BEST FOODIES HOT UNDER THE COLLAR AHEAD OF 2019.

32 HM The Business of Accommodation

FOOD & BEVERAGE

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ZERO FOOD WASTE

Sustainability comes in many forms. And while recycling isn’t new, a derivative of this – finding ways to reuse surplus food otherwise destined for the bin - is taking hold in many hotels across the world.

As part of its ‘Menus for Change’ initiative, you’d need look no further than Relaix & Chateaux’s Eden Roc Cap Cana in the Dominican Republic. Its ‘Head To Tail Zero Waste Menu’ is drawing widespread acclaim, spearheaded by Head Chef Adriano Venturini.

Dishes such as Banana Skin Curry and sautéed vegetable incorporate leftover banana from the Maduro Maki dish served in another of the hotel’s restaurants. For dessert, try the lemon skin meringue tartlets. If you think the remainder of the citrus fruits used in the bar’s cocktails and juices goes right in the bin, you’d be wrong. It’s still fresh and still tasty.

As diners’ tastes evolve with new flavours driven by the world’s epicurean elite, so too does its accompanying beverages.

Sales records of imported Champagne and sparkling wine in Australia are soaring, as is the variety of growers, houses and cooperatives supplying Australian restaurants. Among the 20-25 age market, a particular spike is being noticed in niche blends, particularly Prosecco, with sales up a staggering 53% in the year ending August 2018. In fact, Prosecco sales are higher in Australia than in Italy, where the product originated.

Viticulture experts may debate whether this applies just to this age window, however the overall import and sales volumes don’t lie.

EXOTIC SUPERFOODS (AMARANTH / KASHA — RUSSIAN GOLD DUST)

The meteoric rise of superfoods has given way to a complete range of alternatives to traditional ingredients, making many of our favourite dishes far healthier than they may have been. And more continue to be unearthed with each passing year.

In 2019, Europe’s finest chefs are raving about Amaranth. Also known as Kiwicha seeds, Amaranth’s origins go back 8,000 years to Aztec times but until recently has not been well known outside of Mexico and Latin America. Naturally gluten and wheat free, fans say it has a nutty taste which works well as an alternative to rice or couscous. It also bodes well in porridge.

Another wheat substitute arousing interest is Kasha, also known as Russian Gold Dust. Loaded with nutrients and antioxidants, it is becoming highly popular in European kitchens as a side dish or as a supplement to kale.

“It can be served cooked or raw, in porridge, as a main course with vegetables or in a dessert like I do. I use kasha to make a shortbread served with chocolate as it has a lovely crunchy texture. The combination is delicious,” says InterContinental Paris Le Grand Pastry Chef, Sophie de Bernardi.

HOME-GROWN FARE REIMAGINED (AUTHENTIC LOCAL DINING)

International travellers are enjoying local fare more than ever

Home-grown dining has always been popular, but never before have we seen such attention and creativity being applied by restaurants, chefs and menu designers into authentic and localised cuisine.

Known as Paddock to Plate, Farm to Table and many other variants, the journey diners are taking these days is ever more defined by the throwaway buzzword “authentic”.

However it is sold to diners, the pressure to reimagine classic and conventional dishes is very much at the limit.

Take the Corinthia Hotels collection as an example.

Decorated British culinary whiz Tom Kerridge recently expanded his home-grown dining ideas from his selftitled restaurant in Corinthia London to a Portuguese eatery in Lisbon. As a coastal city, there’s a prominent seafood presence on the menu, with dishes such as Octopus Carpaccio with Crab and Gazpacho Sauce and Skate Fish with Mediterranic Sauce. All seafood items are sourced from the Peniche Fish Market on Portugal’s western coast, while local artists have created the artwork adorning the walls. hotelmanagement.com.au 33

FOOD & BEVERAGE BUILD YOUR OWN ACAI BOWL / BREAKFAST BOWL STATIONS

ON-SITE MICRO-BREWERIES

Breakfast buffets will always have room for bacon, eggs and cereals but they have also never been greener. Over at QT Gold Coast, the hotel has responded to guest feedback seeking healthier, vegan options by installing a ‘Make Your Own Acai Bowl’ station in its Bazaar Marketplace.

Every morning, guests find fresh kale, feta, quinoa, boiled eggs, fresh chilli, goji berries, chia seeds, almond flakes, fresh seasonal fruits and a range of yoghurts including vegan options.

Executive Chef Greg Benny – a 2018 HM Award Finalist for Best Chef – says the Acai Bowl trend has “captivated the Gold Coast” but at QT Gold Coast, theirs has a little quirk.

“The acai bowl station excites customers and they really take their time to decorate and style their bowl beautifully. The interactive element encourages customers to post their creations on social media, which is great exposure for us.”

The term Nano Brewery as a concept is far from new, but is emerging in the hotel scene. More and more hotels are leaping on the bandwagon of wanting to create their own blends for use in on-site bars and restaurants.

Over at the dual-branded JW Marriott and RitzCarlton at Grande Lakes Orlando, this mega resort was the first of all Marriott properties globally to develop a nano-brewery. Bringing in a Ciceronecertified brewmaster, the hotel launched Whisper Creek Farm: The Brewery and its draught beer brand, Surplus – a Floridian citrus honey ale which also draws on the hotel’s on-site apiaries.

Colourful creations from the QT Gold Coast’s Acai Station are finding their way onto Instagram

HEALTHIER COCKTAILS

m ter The

Despite being an island nation highly skilled at self-sufficiency, Fiji is well and truly involved in the culinary experimentation scene.

At Six Senses Fiji on Malolo Island, the hotel’s drinks menu has embraced the probiotic effects of Kombucha in some of its cocktail recipes. This fermented, sweetened and ever-so-slightly alcoholic tea-like drink has taken off in its own right recently and chief drink designers are working its powers into their menus.

Drawing on home-grown ingredients, the idyllic Six Senses Fiji has developed two drinks which have been given the tag “living drinks” due to their wellness contents and capability to cleanse the digestive system. House sodas feature turmeric and ginger, while one in particular includes a locally grown wild ginger called ‘Layalaya’.

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PLANT-BASED HIGH-TEA

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Under the tutelage of plant-based chef Matthew Kenney, Ovolo Woolloomooloo in Sydney has launched a plant-based hightea range bound to appeal to the vegan community.

Hosted by its ‘Alibi’ restaurant, the offering features delicious goodies such as Lemon Meringue with Sable, Black Sesame Cream with Raspberry Rose. If your palette is aiming towards the Savoury section, you could try Forest Mushrooms on Toast with Wasabi Cream or Baby Quiche.

“With desserts, our goal is the same as with any desserts – pure enjoyment,” Kenney said.

“I always aim to present our dishes in a way that guests never experience compromise from more traditional foods and the decadent course is the best platform to achieve this mission.”

34 HM The Business of Accommodation

FOOD & BEVERAGE GUIDED WINE JOURNEYS

The enormous Tomahawk Steak sells out most weekends, such is its popularity

TASTING MENUS

In recent years, restaurants have been moving further into larger tables for parties to all be seated together for a shared dining experience. Even in the newly-opened voco Gold Coast, the hotel is already seeing great success from tables for 6, 8 and 12 all partaking in multiple share plates.

Aside from its Insta-worthiness, the monster 1.5 kilogram Grain Fed Tomahawk Steak is served beautifully carved into bite-size pieces and alongside a menagerie of condiments including sauce béarnaise, fermented black garlic, truffled grain mustard, house made vanilla bean jus, olive oil and sea salt. Bookings are essential as this sells out weekly. The 1.3 kilogram lamb shoulder with grilled broccolini, sesame dressing, goats cheese and baby beets salad is also a highly sought delicacy.

Dining is as much an experience these days as it is a necessity. Along with sharing tables and communal dining, another emerging trend involves wine becoming a bigger part of the culinary adventure.

According to David Green, Executive Chef at Lindenderry at Red Hill, diners are increasingly looking to throw away the wine list and trust the recommendations of the resident sommelier.

Call it inquisition or sheer bravery, Restaurant Manager David Enticott agreed, adding that diners were far more engaged with their wine choices and were willing to take the risk and allow their sommelier to guide them through their dining experience, course by course, taste by taste. Enticott says his diners are willing to learn about the differences between wines, where they come from and how local conditions affect the taste.

“To cater to these changing needs and respond to increasingly complex and detailed customer questions, restaurants now need to focus on continued training and helping their front of house staff hone their wine skills.”

INVOLVING GUESTS IN PRODUCE HARVEST

It’s well-known that house-grown and locally grown produce are on fire with restaurants and have been for some time. But how many restaurants are actually involving their guests in the sourcing process too?

At the Anantara Peace Haven Tangalle Resort in Sri Lanka, the farmto-plate experience adds a little touch of interactivity.

Limited to two couples per day, guests can join the Head Chef on a tour of Anantara’s organic garden to learn more about the produce, take part in the picking process and then meet with local fisherman Ranji as he delivers the day’s catch on a long-tail boat.

Dishes are then prepared in a purposebuilt traditional kitchen hut next door to the rice paddies and served to guests in the resort’s treehouse.

Thanks to Sri Lanka’s year-round temperate climate, seasonal vegetables are grown most of the year.

Wine Journey

RISE OF THE DELIVERY SERVICES

Deliveroo is expanding the room service dining range in Australia

If you’re on the road regularly in many major cities around the world, you’ve seen those brazen delivery riders weaving about through traffic on their bicycles rushing hot food to hungry customers.

One such company – Deliveroo – is now partnering with hotels to incorporate takeaway meal delivery into the room service offerings. Starting with brands such as Merivale and TFE Hotels, Deliveroo’s partnership allows for takeaway menus to be built into the in-room compendiums, vastly expanding the range of dining options available to guests.

Such a service means some hotels, particularly select-service brands, can offer a room service product without the expense of maintaining an on-site restaurant open at all hours.

Guests place their order with the hotel, with the charges added to their room bill. Then, when it arrives, the hotel prepares the dish on house crockery and delivers it to the guest’s room complete with cutlery and napkins.

Is it the future of room service? Still early days yet but it’s anybody’s guess. hotelmanagement.com.au 35

FOOD & BEVERAGE

A hot cup of

COMPETITION CATCHING UP WITH FRIENDS OR COLLEAGUES OVER A COFFEE IS A WAY OF LIFE, REGARDLESS OF FORMALITY. FOR A PRODUCT SO UNIVERSALLY REVERED – NO LESS AN ESSENTIAL DAILY LIFEBLOOD FOR MANY – YOU’D THINK IT WOULD BE AN EASY SELL TO CONSUMERS. BEYOND THE BREW, HOTELS ARE GRAPPLING WITH WAYS TO USE IT TO THEIR COMMERCIAL ADVANTAGE.

M

uch can be derived from an individual’s coffee consumptions habits. With so many types readily available, coupled with every individual’s taste adjustments, that glorious cup of coffee is highly versatile. It is this variety that is keeping Australia’s hotels and coffee suppliers constantly studying trends as tastes and habits change.

It’s somewhat amusing to see how Australians take their coffee. According to the 2017 Square 36 HM The Business of Accommodation

Australian Coffee Report, more than half of coffee drinkers across the country opt for their daily caffeine infusions to come in the form of a latte (39%) or a flat white (24%). The remaining 37% are made up of cappuccino drinkers, long blacks and lovers of a variety of minority blends.

Aside from consumption and taste trends and preferences, hotels are increasingly seeking to use the beverage as a means to better engage with their customers. For example, Four Seasons Regional Vice President & General Manager, Bahram Sepahi, is seeing more variety these days not in coffee types but rather, milk varieties.

“Our guests do experiment from time to time with their coffee order, for example a turmeric latte, however our international guests tend to keep it simple. We’ve seen an emerging trend over the last 12 months with milk varieties more so than coffee.

Guests are becoming increasingly educated on the variety of milks on the market and the individual benefits of each. Soy milk has become a big player and almond milk is also on the rise.

“The hotel continually looks into current and emerging coffee trends to ensure we are meeting and exceeding the needs of our guests as well as

FOOD & BEVERAGE providing suprising and delightful moments at breakfast with new flavoured coffees as complimentary pass arounds.

Trends such as these are being passed down to hotels’ coffee suppliers, which adjust their imports and sales to suit the market. According to Jacobs Douwe Egberts (JDE), a key issue reported regularly from hotel guests is sustainability. General Manager Professional ANZ, Leonardo Gonzalez, says the company has been responding to such concerns and queries in a variety of ways for some time.

“JDE is very aware of our responsibilities when it comes to sustainability. We currently deliver this through a range of UTZ Certified beans, our range of combustible cup options, and also our alignment with Terra Cycling for our L’Or capsules. We are aware that this is a growing focus for our hotels’ customers and JDE is constantly working on ways to deliver greener options for our customers such as sustainable takeaway cups and recyclable aluminium capsules.”

Another major supplier of coffee to hotels says with the global interest in ecoconsciousness, hotel guests are becoming increasingly invested in the origins of the products they consume. Nespresso Professional Commercial Manager for Australia, Stefan Vermeulen, says this is in response to heightened awareness on climate change.

“We recently commissioned research that found that 37% of Australians only drink coffee sourced sustainably*. People buy a story, not just a product, and as a result, consumers are increasingly purchasing coffee with a single origin story they know and trust.” This same study found 62% of Aussies would switch to more sustainable coffee options if it was easy enough to do so.

Nespresso’s range from this sustainable source is highly exotic, with Ristretto Origin India, Espresso Origin Brazil and Lungo Origin Guatemala now widely available on a commercial scale and even sought by the Ferrari Formula 1 team each time the marque races in Australia.

Another trend being noticed, according to JDE, is greater self-sufficiency. Guests are increasingly looking at hotels to offer a healthy menu of coffee options they can prepare without having to leave their room. Bahram Sepahi from Four Seasons says the hotel caters to this with Nespresso machines available in every room.

“Guests expect a little more for their money these days and it’s up to us to ensure we work with our customers to understand these needs and deliver solutions that better engage with customers,” added JDE’s Gonzalez. n *Nespresso research conducted by YouGov in 2018 across 1,019 participants in Australia.

Australia’s hottest coffees What coffee products are Australians consuming?

QT Sydney

Cold Brew Negroni

Sydney Harbour Marriott Rum-spiked coffee

Coffee drinkers carry a lot of influence, with hotels and suppliers eagerly watching

Novotel Melbourne South Wharf Locally roasted blends

Four Seasons Hotel Sydney Almond Milk & Rice Milk

INTERIOR DESIGN

brand standards IT ALL BEGINS FROM A BLANK PIECE OF PAPER. FROM THE FIRST LINES ON A PAGE, TO SHOVELS IN THE GROUND AND ON TO OPENING DAY, A GREAT DEAL OF CREATIVITY AND INSPIRATION GOES INTO WHAT YOUR HOTELS LOOK LIKE. HM GOES INSIDE THE MINDS OF TWO OF AUSTRALIA’S FOREMOST DESIGNERS TO LEARN MORE ABOUT THE PROCESS.

A rendering of the upcoming Auckland International Airport hotel

38 HM The Business of Accommodation

s an art form, design is highly subjective. That said, the right-brained exercise in creativity is littered with success stories in terms of what the imagination can achieve.

If you’re a hotel owner, it has been said that the way to get the absolute best out of your designer is to make life as challenging as possible. That might not sound like fun for some designers reading this but for others, that’s how they work at their best. More often though, the most effective method is for a hotel owner to work collaboratively with their developer and designer – and better still if a hotel operator has been appointed by this time.

Each hotel operator is different and while some wish to be involved before a shovel meets turf, others are able to work with whichever space has been presented to them.

“Quite often we are working directly for developers before the management company has been decided. We often recommend hotel brands that we think will suit the location, quality and style of hotel that the developer is creating,” says Richard Dalman, from self-titled design firm Dalman Architects.

“We will have some brand options in mind and normally design to suit these in the early stages. We prefer that the management company is signed up during the design process so we can speak directly with them to sort out specific requirements. When this doesn’t happen, like on the new Auckland International Airport hotel, we design to suit what we think to be the best solution that will suit a number of different operators.”

ADDING THE BRAND ELEMENT

Not every hotel brand has a regimented set of brand standards chiselled in stone. For a designer, this is often a breath of fresh air. While there are of course minimums that a brand must align with in order to maintain its market identity, the sheer speed of today’s hotel and development market is such that hotel operators are seeking to clear the roadblocks for a designer in order to get a deal done – not the other way around.

“We are finding management companies are becoming more flexible with their brand standards as competition to expand their portfolios increases,” Dalman said.

“They wish to place less roadblocks in the way of getting the deal signed. This allows for more flexibility in design, but it is still critical that the hotel functions well for guests and staff – this is something that is not negotiable. Naturally, it is best to engage an architect and interior designer who has hotel experience to ensure the best result across all stakeholders.”

NEVER A DULL MOMENT IN DESIGN

Woods Bagot has just completed the opening of the Westin Brisbane. In this specific case, a blank canvas

Designers crave collaboration from hotel brands big and small

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A CLEAN CANVAS

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Once a brand comes on board, a new factor enters the fray as this introduces the element of brand standards. Far from a bad thing, for a designer, this can provide great degrees of certainty in many facets.

Interior construction materials can be narrowed down. Colours can be narrowed down. Things can certainly get much easier.

“Once the operator comes on board, that’s when the brand overlay is really achieved and the holistic concept is created [and] they start introducing things like brand standards,” says Woods Bagot Principal Designer, Eva Sue. “That’s really relevant because if they do have a brand that the hotel owner has actually aligned themselves to, then there is a client expectation in terms of quality and also service that the hotel guest is wanting.”

“It is still critical that the hotel functions well for guests and staff. This is something that is not negotiable.

Naturally, it is best to engage an architect and interior designer who has hotel experience to ensure the best result across all stakeholders.”

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would have been a luxury. While still a newbuild, the design firm was brought onboard well after construction had commenced.

“The building itself was originally planned to be a commercial tower. Then our client bought it and redid the DA. When we took over the project, we already had the basement and the core built. That set some parameters for us,” Regional Hotel Sector Leader Bronwyn McColl said.

BUILDING TO AN EVER-GREENER BEAT

As the world attempts to go ever greener in many facets of daily life, a tricky question is being posed to hotel designers. Does a designer need to be thinking greener in their ideas in order to appeal to hotel owners and operators, or is it the hotel owners that need to adapt and incorporate greener elements into their hotels?

“We often work across architecture and interiors of the hotels. When you’re lucky enough to have that opportunity, you can set the parameters from a building and a base building perspective,” McColl added.

“So this means looking at things like sun shading, orientation of building and facades where you have balconies or overhangs. You can be quite deliberate in where those orientations go to help maximise that passive sustainability. Particularly in Queensland where the sun is quite strong.

“We have a lot of focus around that. Subtropical climates where you’re looking at rain and sun and wind aspects and natural ventilation. The newbuild definitely gives you more breath of scope to deal with that early.

Dalman was more circumspect on his outlook.

“We are architects and interior designers and that’s what we do: we don’t have trouble visualising!”

“We have worked on new buildings, refurbishments and conversions of office buildings to hotels. Normally newbuilds are easier, but refurbishments and conversions do offer potential exciting opportunities to work with existing buildings and give them a new life. Sometimes the best results come out of the most challenging situations. n hotelmanagement.com.au 39

TECHNOLOGY

Classic bookings go C THE DAYS OF A GUEST BEING THE CONCERN OF THE HOTEL ONLY FROM WHEN THEY WALK THROUGH THE DOOR TO WHEN THEY LEAVE ARE LONG GONE. ALMOST RIGHT FROM THE INITIAL ONLINE QUERY, A GUEST CAN BE TRACKED FROM CONCEPT AND MARKETING TO LONG AFTER CHECK-OUT AS REVIEWS ARE SOUGHT, POSTED, SHARED AND ACTED UPON.

40 HM The Business of Accommodation

ompetition within the hotel industry has never been fiercer. With the help and ongoing evolution of technology, hotels can now see with high detail and accuracy how their guests progress from booking to departure.

For a hotel owner, an occupied room is a good day’s work and a positive for the bottom line. For a general manager, a happy guest is a good day’s work and a positive for business overall. For the guest themselves, their involvement with the hotel can progress much later as their feedback is sought, concerns addressed and comments shared to the wider online community. Peer marketing is the way of the modern world.

TRAVEL AGENTS ARE MORE CONNECTED THAN YOU

In some overseas markets, the traditional ‘bricks and mortar’ travel agent storefront is on life support.

By contrast, Australia is a shining example of the strength of the travel agent community. Some may wonder whether this is because we are simply slow to adapt or adhere to international trends.

TECHNOLOGY more than 750,000 hotels make their inventory available for booking agents and online platforms.

In addition to displaying room availability, agents can also identify cost savings for the client and improve their own revenue through promotions rewarding longer stays. Through Sabre, hundreds of millions of ‘shopping requests’, as the company puts it, are processed daily. This two-way live connection ensures rate parity and consistency of information across all channels, prevents overbooking and works to maximise revenue in line with strategies, base rates and rack rates entered by hotel revenue managers themselves.

After a guest has checked out, a hotel can also communicate with guests by inviting them to submit a review on either TripAdvisor or a Sabre partner such as ReviewPro or TrustYou. “Agents are present throughout the entire traveller journey and play an essential role in providing travellers with custom, personalized

The in-house ReadyRooms system is used by Helloworld agents

In fact, Australia’s travel agents are bucking international examples and are not just holding their own but are fighting back and remaining highly competitive. Opting to fight fire with fire of their own, travel group Helloworld Travel Limited has developed the ReadyRooms portal, which draws all of its hotel content from supplier APIs and is accessible only by agents in the Helloworld network.

Since its inception, ReadyRooms has instantly processed and confirmed bookings from Helloworld agents to nearly 1,650 locations in 115 countries.

All bookings made through the ReadyRooms portal are confirmed instantly through realtime availability and room allotments obtained through network wholesalers and other online intermediaries. A future update to the ReadyRooms portal will see an integration with Google Reviews, enabling agents to view real, first-hand accounts from travellers in order to help them make an informed decision and recommendation to clients.

“We have done a lot of work on ReadyRooms recently and we are excited and pleased by the upgrades,“ says Helloworld Travel Limited Executive Director, Cinzia Burnes.

“Travel agents continue to play a crucial and essential role in helping to meet and exceed traveller expectations.’’

- Sabre Hospitality Solutions Asia-Pacific Managing Director, Frank Trampert

Sabre Hospitality Solutions’ Frank Trampert says technology is designed to make an agent’s life easier

experiences,” says Sabre Hospitality Solutions AsiaPacific Managing Director, Frank Trampert.

“The more content is available to the agent, the more choices they have to create memorable itineraries for the traveller. As such, travel agents continue to play a crucial and essential role in helping to meet and exceed traveller expectations.”

The path a guest travels from booking to stay is highly evolved. And as travel personalisation takes hold, more people will be drawn to travel, leading to more hotels, more bookings and more revenue for the industry. n

DIGGING DEEPER INTO THE BOOKING STRATOSPHERE

The global travel landscape is dominated largely by four GDS (Global Distribution System) providers – Amadeus, Sabre, Travelport and TravelSky. There are a few smaller operators however the bulk of global travel booking activity is driven by these four.

For decades, the majority of the world’s airline bookings are processed through these systems, which maintain constant connections to deliver live seat availability. A similar process exists for hotels, which can feed in hotel inventory to show live availability to travel agents and booking websites around the world.

Looking at just one as an example. Sabre Hospitality Solutions utilises technology known as the SynXis Enterprise Platform to power a cloudbased system used by more than 40,000 hotels and resorts globally. Across a variety of Sabre systems,

GDS systems are increasingly sophisticated and allow agents to tailor a stay to suit guest preferences hotelmanagement.com.au 41

APPLIANCE ESSENTIALS

Keeping cool on the future of

BEYOND THE TELEVISION AND THE IN-ROOM WI-FI OR TABLET LIE MORE SUBTLE FORMS OF TECHNOLOGY JUST AS MUCH PART OF THE DEVELOPMENT RACE AS ANY OTHER.

L

ittle thought is given by many guests into hotel room appliances such as the minibar and the safe. Like the television, both have simply become essential pieces of furniture that guests expect to just be there without a specific request. But there is a lot more to these seemingly innocuous items than you may think.

While they may be underappreciated, nobody should ever question the usefulness of the in-room minibar. Few hotel guests complain their rooms are over-furnished and that the fridge or another major piece of hardware can be removed. It’s safe to say that any time a hotel experimented by removing the fridge from a room, the subsequent rise in complaints could hardly be viewed as a coincidence.

“Minibars are available to provide a cooling unit for guest’s private items that need cooling as well as providing the convenience of having drinks in the room without having to leave,” says Michael Benikos of Assa Abloy Hospitality.

“Guests expect a fridge to be in a room and be mostly stocked up.”

WHAT ARE HOTELS LOOKING FOR IN THEIR MINIBARS TODAY?

Aside from the obvious ‘drinks and chocolate bars’ rhetoric, in reality hotels are finding themselves with 42 HM The Business of Accommodation

a steadily increasing range of minibars to suit evermodern room designs and space requirements. Minibar manufacturers and importers are working more closely with interior designers to ensure an appliance not only looks good, but complements the room and fits the allotted space without much wasted room around it.

Models are now in market starting from 25 litres in capacity, growing in 5L or 10L increments all the way to 60L, with all sizes coming with both glass or solid doors. A recent survey in the US found glass-doored minibars improved selling opportunities and led to a 30% increase in sales as guests could see what was inside without consciously acting to open the door.

WHAT ON EARTH IS ‘FUZZY LOGIC’?

For the slightly less computer literate, fuzzy logic is nothing new. In fact, it has been around for decades but is now being implemented in new ways, such as developing alternative energy-saving systems to power minibars and other appliances.

Perhaps the best way to describe it is if the numbers 0 and 1 represented the completely opposite ends of a spectrum, such as pure binary numbers, then fuzzy logic is that ambiguity or that middle area. Put into perspective, if a minibar fridge can either be off (zero) or at its coldest temperature (one), then fuzzy logic creates an algorithm whereby the appliance can determine the level of energy

“Hotels are looking for a minibar that is low maintenance, operates efficiently with low power consumption and ultimately, completely silent.’’

- Dometic Australia sales coordinator Sereena Leale

?????? needed to make its contents cold. This peak temperature is then proportionally reduced, which leads to energy and cost savings - better for the environment and better for the hotel’s electricity bill.

Minibars are also being developed with Absorption, Compressor and Thermoelectric cooling engines, all of which are silent so as not to disturb guests while they sleep.

“Hotels are looking for a minibar that is low maintenance, operates efficiently with low power consumption and ultimately, completely silent,” Dometic Australia sales coordinator Sereena Leale told HM. Leale added that Dometic has noticed an upward trend in interest and sales in its low-noise compressor engine minibars.

“All in all, these Dometic minibars are an investment that pays back,” she added.

Dometic’s new RH 460LD minibar model Minibars can also be designed to fit into a pull-out drawer

CONNECTING THE HUMBLE SAFE

Most hotels will hide them inside the wardrobe, but even the in-room safe keeping boxes are undergoing a technological rethink. While many digital models in-use are still fairly rudimentary, they do provide a reasonable level of security for personal valuables of the everyday hotel guest.

According to Assa Abloy, hotels these days are increasingly seeking improvements in technology for these safes. Design upgrades being requested include adding a layer of connectivity, enabling hotels to see if a safe is still locked when a guest checks out as. Hotels are also looking to be able to check battery levels and audit trails remotely to ensure these safes are better maintained and ready when guests need them. n

AssA Abloy Hospitality

The world leader in hotel security.

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your property security is no place to fall behind. That’s why AssA Abloy Hospitality has been leading the industry in security technology innovation for over 40 years, since introducing the world’s first electronic lock. Today, millions of guests around the globe are secured by our advanced solutions, including VingCard locks, Elsafe in-room safes, mobile access and integrated software platforms. With worldwide service and support in more than 166 countries, AssA Abloy Hospitality helps you put security out front and keep it out front.

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Elsafe safes 1 300 796 233 www.assaabloyhospitality.com australia.hospitality@assaabloy.com

DEVELOPMENT

FRANCHISING

RULES FRANCHISING REMAINS ONE OF THE MOST POPULAR DEVELOPMENT MODELS IN ASIAPACIFIC THANKS TO THE RISE OF HANDS-ON OPERATORS SEEKING INDEPENDENCE WITH THE SECURITY OF BEING BACKED BY A MAJOR CHAIN. IN A SPECIAL REPORT, HM SPEAKS TO SOME OF THE LEADING OPERATORS AND FRANCHISORS TO FIND OUT WHAT THE SECTOR CAN EXPECT AND WHY IT IS IN SIGNIFICANT DEMAND.

I

n the last 10 years, the Australasian hotel industry has seen a shift from a majority of branded, managed hotels dominating the landscape to boutique and independent properties becoming firmly in fashion.

That shift has been driven by a new wave of engaged investors eager to be more hands-on in the running of the business. Many look to franchising as a way of retaining their independence yet enjoying the brand power and backing of major global brands.

ACCORHOTELS PREPARED FOR THE SHIFT

AccorHotels’ Vice President Development – Pacific, Lindsay Leeser, said the shift is one that many operators anticipated and prepared for accordingly.

“Franchisees and independent hoteliers are acknowledging that the industry has changed dramatically over the last 5-10 years, and adapting to this change is critical to their survival and viability,” he told HM. “Distribution, a strong digital presence and a database of loyal customers is now essential for any hotel to prosper and that is why

Elements of Byron, Byron Bay

franchise arrangements continue to be popular.

“The power of branding is also a key influencer and our collection of brands from economy, midscale, upscale and luxury allows us to complement and support the franchisees’ positioning in the market, while bringing global recognition,” he said.

Leeser said demand for franchising is coming from both regional and urban areas.

“Regional cities and the luxury apartment and hotel sector around Australia is experiencing significant demand as operators look to grow outside of the tightly constrained city centres,” he said.

“AccorHotels’ brands have well established reach and global strength and this translates to strong brand awareness and market penetration in regional and remote Australia, which is also a driver of demand.”

A NEW AUSTRALASIAN RECORD FOR CHOICE

One of the largest franchisors in the global accommodation industry is Choice Hotels, a company which has more than 6,300 hotels and 500,000 rooms in more than 35 countries and territories.

Its Australasian regional arm, Choice Hotels Asia-Pac, is headed up by CEO Trent Fraser and has more than 270 hotels and more than 11,000 rooms across Australia, New Zealand and Singapore.

It has been a solid year of growth for Choice Hotels, with eight new-build hotels joining the network in 2018. This pipeline added over 500 rooms to the group across Australia and New Zealand.

“Our goal for 2018 has been to see significant growth in our portfolio size,” Fraser said.

Total construction investment by Choice’s franchisee partners into new-build projects in 2018 alone was in excess of AU$100 million, which Fraser said “shows confidence in the local economy, as well as creating jobs through construction and ongoing operation of each property”.

Choice Hotels Asia-Pac has just opened the largest hotel in its network - a four-star property on the Great Eastern Highway in Belmont, Western Australia. Formerly Comfort Inn Bel Eyre Perth, the AUD$50 million redeveloped property will launch with a new name – Ingot Hotel Perth – and will be branded as an Ascend Hotel Collection member in a franchise partnership with Choice Hotels Asia-Pac itself.

The 214-room hotel offers facilities and services including 24hour reception, fitness centre, outdoor heated pool, function and conference facilities and a restaurant and lounge area.

“The imminent launch of Ingot Hotel Perth, the largest property in Australia to join our partner network, is a very exciting milestone for the Choice Hotels Asia-Pac team and is a marker of our strong, continued growth in the region,” Fraser said.

Choice Hotels Asia-Pac, franchisor of the Ascend Hotel Collection, Clarion, Quality, Comfort Inn and EconoLodge brands, has a pipeline of a further three properties scheduled to open across

DEVELOPMENT Australia and New Zealand before the end of 2019. These include Quality Hotel Flemington, Quality Hotel Lakeside Bendigo and Clarion Suites Christchurch.

A NEW WAY FOR THE HILTON WAY

Over at Hilton, the company’s long-term major focus in Australasia has been traditional hotel management agreements. However, the company is moving more into franchising thanks to several recent deals in New Zealand.

“Hilton’s primary business model in Australia, New Zealand and the South Pacific has been hotel management agreements,” said Hilton Worldwide’s Vice President of Development for Australasia, Robert Scullin.

“We are seeing however, a trend towards franchise agreements, particularly in focus-service and mid-market brands. In Australasia, we have two franchised properties in New Caledonia and French Polynesia and just opened our first franchise property in New Zealand, the DoubleTree by Hilton Wellington, in July.”

Last month, Hilton signed a deal with Auckland-based Sarin Investments - owners of DoubleTree by Hilton Wellington - to brand the new-build DoubleTree by Hilton Napier Hotel and Suites, which is currently under construction.

DoubleTree by Hilton Napier is due for completion in early 2019.

The hotel will feature a modern art-deco design theme running throughout and will feature stylish guest rooms, including spacious suites, a restaurant and bar, fully equipped gym, and a boardroom.

“We are thrilled to open our second DoubleTree by Hilton hotel and to bring this international brand to Napier and the Hawkes Bay region,” said Sarin Investments Chairman, Raman Sarin.

SUCCESS IN SELECT SERVICES FOR IHG

InterContinental Hotels Group (IHG) has seen major growth in the franchise sector, fuelled by the rapid expansion of the Holiday Inn Express brand by developer and operator Pro-invest Group.

The company currently has three Holiday Inn Express hotels open in Adelaide, Brisbane and Sydney, with Newcastle set to open later this year. Five more are in various stages of development across key markets, including Melbourne CBD, Melbourne Southbank, Sydney Airport, Queenstown and Auckland.

“Pro-invest’s focus is on the midscale and lifestyle hotel segments,” said Group Managing Director, Phil Kasselis.

“This is where we are confident in our ability to maximise riskadjusted returns for our investors.

“Being a hotel developer, owner and operator, our group is in an advantageous position to drive optimum asset performance by controlling the site selection criteria and approaching the hotel design and development phase with an owner/operator mindset.

“During the operational phase, the benefits of using a franchise model provides access to world-class operating systems and sales and marketing distribution channels to generate RevPAR premiums, while our asset management and hotel operational expertise enables us to maximise investment returns for our stakeholders.”

Pro-invest Group launched the Australian Hospitality Opportunity Fund 1 in 2013, raising AUD$380 million in equity to develop, own and operate the portfolio of nine Holiday Inn Express hotels across Australia and New Zealand. Following that success, Pro-invest Group immediately began looking at further expansion for other brands.

“In mid-2017, Pro-invest Group launched a second fund to further expand our Holiday Inn Express footprint throughout the region, to also include Even Hotels, IHG’s latest upscale lifestyle hotel brand designed with wellness at its core and enabling guests to maintain their wellness routine while being on the road,” Kasselis said.

“Our first Even Hotel site has been acquired in central Auckland and our development team is scouting for additional locations in Sydney, Melbourne and other key markets in Australia and New Zealand to expand this very exciting wellness-oriented hotel brand.”

FRANCHISING GOOD FOR FIRST-TIMERS AT NEXT

Next Story Group, formerly SilverNeedle, is also seeing a continued demand for franchising in Australia, according to the company’s Area Vice President of Development, Tushar Raniga.

“The continual popularity and appeal of franchising is driven around new models or product offerings,” he told HM. “In most cases, people looking to go into business for the first time will consider a franchise model, because they believe it to be tried and tested. This gives them a sense of security knowing that the franchisor also has an invested interest in the brand.

“The ease of being provided with a product or service within a specified territory or at a specific location provides first-time business operators with some comfort that there is less risk of failure.

“Most people going into a franchise arrangement understand from the terms and conditions that they will be required to pay a royalty or service fee for the use of the franchisor’s identifying name or trademark. This factor is not a hindrance to most operators as it provides them with the confidence and backing of a proven concept and a brand with a good reputation.

“Having the backing of a franchisor and being offered a product, service and trademark, as well as the entire business concept is why franchising, as a rule, continues to be popular amongst small business operators.

“With systems and support in place such as marketing strategy, operational standards, systems and formats, training, quality control and ongoing assistance, guidance and supervision provides

DEVELOPMENT

Ramada is opening up new hotels across Australasia, most recently in Fiji

Pro-invest Group is growing Holiday Inn Express rapidly

these operators with the skills that they typically would not receive by being in business on their own,” Raniga added.

Both urban and regional areas right across Australia, New Zealand and the South Pacific are all in significant demand for franchising agreements.

“Across the Oceania region, areas of demand in the segment include more hotels in the mid to upper-midscale segment,” he said.

“In New Zealand, the CBD and fringe CBD locations are very popular with local operators. Whilst across the Pacific region, capital cities tend to be the focus because operators need to go where the infrastructure is established.

“Location is important, and for the value driven business traveller who demands convenience in areas such as a capital city, CBD fringe locations or areas near key transport hubs and major city corridors will meet the demand,” he said.

Raniga said supporting franchisees, especially new investors in the industry, was critically important to ensure the success of the properties.

“We want our franchise partners to benefit from a team of dynamic and committed professionals that are passionate about creating successful franchisees,” he said.

“We understand how challenging developing a franchise can be and our dedicated franchising team will provide them with a supportive, personalised and caring relationship.

“We also believe that by being part of a franchise system, along with driving volume to the hotel asset, it is critical for franchisees to be provided with clear brand guidelines, superior technical feedback on new development undertakings as well as property improvement plans and ultimately clear guidance on operating their assets,” Raniga said.

WYNDHAM ON AN ASIA-PACIFIC GROWTH SPURT

When it comes to franchisors, they don’t get any bigger in the accommodation industry than Wyndham Hotels and Resorts, an organisation with more than 9,000 hotels (over 798,000 rooms) across more than 80 countries on six continents.

The company operates a portfolio of 20 hotel brands including Super 8, Days Inn, Ramada, Microtel Inn and Suites, La Quinta, Wingate, AmericInn, Hawthorn Suites, The Trademark Collection and its flagship namesake brand Wyndham.

46 HM The Business of Accommodation

Wyndham has had a flurry of signings and openings of late in Australia, New Zealand and the South Pacific, particularly under the Ramada brand, which most recently saw openings in Auckland, Brisbane and Fiji.

“When hoteliers franchise with a global hotel brand, they receive instant recognition and familiarity with customers worldwide,” said Wyndham Hotels and Resorts’ Director of Development and Acquisitions – South Pacific, Matt Holmes.

“Franchising can also boost a hotel’s performance while the hotel owner benefits from the expertise and support of a global leader.

Franchising enables the owner to control their destiny, within the parameters of the brand, so it becomes a win-win for both parties.

“We offer our franchisees the tools and guidance necessary to run a successful hotel, from pre-opening support, to access to our powerful distribution and revenue management systems, training, marketing and more.

“The cost of using online travel agencies is ever increasing and franchising gives hoteliers a more cost efficient alternative by providing access to the brand’s direct booking channels. In addition, our franchisees have the opportunity to leverage our loyalty program, which is a great mechanism to drive these lower cost direct bookings. Wyndham Rewards has been recognised several times as the most rewarding program in the industry,” he said.

Holmes added demand for franchising in Australasia continues to be as strong as ever, particularly across the Tasman.

“New Zealand is going through a tourism boom,” he said. “Our franchise presence is spread throughout the country but is more concentrated in major cities like Auckland and Queenstown, where there is a well-documented shortage of inventory. We expect demand will be strong in those cities for the immediate future.”

He said several brands were in demand for the company.

“We are looking at opportunities to expand our midscale and upscale brands, including Ramada, Tryp by Wyndham and Wyndham Garden.”

It is Ramada however that continues to see amazing growth, says Holmes.

“Ramada is expanding rapidly across the South East Asia and Pacific Rim region, with 28 new hotels scheduled to open within the next three years.” n

HM x ACCORHOTELS PROMOTION

ACCORHOTELS NEWS

SMART’S PHENOMENAL The Well Smart Group is a Singapore-based hospitality, real estate, investment and development company that has become a dynamic player in the Australian and New Zealand hotel markets. The Group has invested in economy, mid-scale and upperscale hotels in key gateway cities including Sydney, Melbourne and Brisbane and is now expanding into resort destinations including the Whitsundays and Queenstown.

I

nitially, Well Smart established its presence in Australia with the acquisition of existing hotels such as ibis Budget Melbourne and Mantra Terrace Hotel in Brisbane. This was soon followed by the company’s biggest and most ambitious project to date – Australia’s first dual-branded high-rise hotel, comprising Novotel and ibis hotels in the one building in Little Lonsdale Street in the heart of the Melbourne CBD. The newly-opened hotels span 35 levels and 483 rooms and share three restaurants and bars and 10 meeting and event spaces.

The hotels are part of a massive regeneration of Melbourne’s hotel sector and represent a growing partnership between the Well Smart Group and AccorHotels.

HM talks to Well Smart’s Jack Jia.

You’ve now had considerable involvement in the Australian and New Zealand hotel sectors – what interested you in these markets initially?

We were considering diversifying our investment portfolio a few years ago, and the Australia market was very attractive to us in terms of guest demand growth, hotel occupancy and investment return. Furthermore, we are strong believers in leisure growth due to the growth in Asia, technologic innovation, and aircraft fuel efficiency, which keeps improving and which has made travelling more affordable and potentially faster. Australia and New Zealand both have a unique attraction to Asian travellers therefore we believe the hotel sector is a good opportunity to invest.

You have a stated preference for economy and mid-market hotels – why is Well Smart’s emphasis on these sectors rather than luxury?

We have no preference over any sector now, and in fact we have more upscale and luxury hotel projects in our pipeline over the next five years. We will be working with award-winning designers to build authentic, five star hotel product at more affordable rates.

The Melbourne Novotel/ibis development is your biggest ever – how did it come about and why did you decide on splitting the same high-rise into two different styles of hotels?

We believe the scale would be too big if we are building a 600room economy hotel or 400-room Novotel product, therefore in

AccorHotels’ new Novotel Melbourne Central

conjunction with our operator recommendation, we decided to build a dual-brand hotel with different product offerings to open up and attract a wider market and diversify our risk at the same time.

Have you seen other dual-branded hotels around the world?

What advantages do they have over mono-branded hotels?

We visited the ibis and Novotel at Sydney Olympic Park as well as the Pullman and Mercure Melbourne Albert Park before we decided to go for dual-brand hotel. As I mentioned above, dual brands allow us to attract a wider market and diversify our risk.

With Well Smart based in Singapore, you are perfectly placed to determine which markets have greatest potential. Are you planning to grow your portfolio across the Asian region or will you concentrate on Australia and New Zealand?

We will focus on developing hotels at key tourism destinations or transit hubs over the next five years; in places like Queenstown, the Whitsundays or Airport precincts. We always believe we have to put ourselves in our customer’s shoes to build a good product.

As curious people, we like to experience something different from home. People living in urban areas want to experience nature and the great outdoors, so we have shifted our development focus from CBD into tourism destinations which have unique nature and environmental experiences.

To date, we have acquired two development sites in Queenstown and are in the middle of negotiations for more sites in New Zealand. Furthermore, we are in the middle of designing two resorts in the Whitsundays region, plus serviced residences.

Besides resort destinations, we will also focus on transit hubs, as we believe most guests still have to transit and overnight to reach their destination due to different constraints, such as connecting flight times.

How do you select your hotel management partners? How did you develop your partnership with AccorHotels?

We have known the AccorHotels team since we bought our first hotel in Melbourne, and we have had a successful relationship since then. We carefully evaluate a partner’s brand awareness, distribution system, corporate culture and financial offer when we select a management partner. n

hotelmanagement.com.au 47

LEADERSHIP PROGRAMS

The path to

epicurean PERFECTION PREPARING A HUNGRY TRAINEE FOR THE REAL WORLD OF FOOD AND BEVERAGE IS A DELICATE PROCESS. AND IN THE REAL WORLD, NO TWO CHEFS ARE EXACTLY ALIKE, WHICH CAN MAKE THE TRAINING AND PROGRESSION PROCESS TRICKY BUT ULTIMATELY NO LESS REWARDING.

A

s the global standard of fine dining continues to improve, diners are the ultimate beneficiaries. New ingredients, cooking methods and dishes are always being unearthed as creative new minds enter the fray and bring their own unique flair to the cooking and preparation process. But before all of these creations find their way to plates and glasses anywhere, every chef has to start somewhere.

There’s no cookie cutter mould creating professional chefs or F&B managers. Before training even begins, each already has their own unique style, preferences, tastes, techniques and hallmarks, spawned from their hard-wired passions for quality food and drinks. These can’t be taught and often, can’t be tamed.

Beyond this inherent passion, Australia is home to some of the world’s leading training institutions Students learn from industry masters to hone their skills

48 HM The Business of Accommodation

Training programs are honed to ready students for realworld situations

where passion can be put into practice. Whether your hands are better suited to culinary excellence in or out of the kitchen or behind the bar, the modern hospitality industry now sees dozens of different courses and pathways available to help a trainee become highly skilled, in some cases, in highly niched elements of what one institute calls “the experience industry”.

This is the William Angliss Institute, which offers three campuses on Australia’s east coast offering certificates and degrees in a wide variety of disciplines across the hospitality, tourism, food and events sectors. Additional campuses and offices have popped up in various parts of Asia as the brand has expanded over the years. In Australia, the institute’s main centre is in the Melbourne CBD, with additional campuses in Sydney and the outer Melbourne suburb of Lilydale – providing front door and hands-on access to Yarra Valley wineries and its associated tourism industries.

The Course Guide makes for impressive reading, with some highly niche fields in food and beverage available, should an individual wish to carve their professional path in that way. You’ll find courses in Food Science, Patisseries, Meat Processing and Bakery Operations. Outside the confines of the kitchen itself, somebody with a desire to run all operations of a hotel or resort can hone their craft with a Bachelor in Resort/Hotel Management or even combine both fields to widen their future career choices.

Of critical importance to all of these courses however is the involvement of the industry, which is highly engaged at a grassroots level in bringing up its future generations of guest-serving professionals.

Whether getting involved just for a single lesson or the entire degree, students will find themselves with

LEADERSHIP PROGRAMS access to highly experienced trainers boasting long and distinguished careers far from over in their own right. The old George Bernard Shaw quip of “those that can’t do, teach” doesn’t make it past the front door here.

“Our training programs are designed with industry input to meet their requirements so our students are industry ready and well-regarded and sought after,” says William Angliss Institute Cookery Program Leader, Kimon Tsindos.

“The opportunities offered to our students to participate and be mentored through many internal and external competitions also drives them to develop the latest skills and techniques. Similarly, working in our live training restaurant and bistro gives them a real experience with paying customers. The Great Chefs program gives them the chance to work alongside and under the guidance of some of the leading restaurateurs and executive chefs in Australia.”

“Working in our live training restaurant and bistro gives students a real experience with paying customers.’’

- William Angliss Institute Cookery Program Leader, Kimon Tsindos.

GROW THE TALENT IN YOUR HOTEL WITH PROFESSIONAL DEVELOPMENT FROM THE

#1 HOTEL MANAGEMENT SCHOOL IN ASIA PACIFIC*

Another distinguished program widely regarded as having produced some of the F&B industry’s finest minds is The International College of Hotel Management (ICHM) in Adelaide. Part of the Charles Darwin University (CDU) and affiliated with the Swiss Hotel Association, expectations on its graduates from day one are high.

“ICHM is owned by Charles Darwin University (CDU). CDU is ranked 31st by Times Higher Education in its 2016 rankings of the best 150 universities in the world aged less than 50 years old,” ICHM Marketing Director Simon Ruston said.

In its flagship Bachelor of Business (Hotel Management), students receive a wide-ranging knowledge and aptitude about the international hospitality industry from basic operations up to senior management levels, covering broader social, cultural and economic contexts. Students also spend significant amounts of time in industry placements, building their professional networks and gaining real-world experience.

Both of these institutes, along with the many others which exist in Australia, prepare their students to thrive in their careers on a global scale. Courses like these are the ingredients which see the future leaders of hospitality and the next innovative minds in the kitchen emerging fresh from the oven, ready to impress. n

MBA

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MBA Study standalone projects or a full MBA in International Hotel Leadership ONLINE This fully online, customisable MBA in Hotel Leadership is designed to help hotel professionals take the next step into senior management.

To find out more and register your interest visit www.bluemountains.edu.au Torrens University Australia Ltd trading as Blue Mountains International Hotel Management School at Torrens University Australia ABN 99 154 005. RTO No. 41343 HEP No. 4449. CRICOS Provider Code: 03389E.

PEOPLE

ON THE MOVE Your update on the latest key HR movements across the hotel industry

Career lodge management duo Ben and Louise Lanyon are set to return to the Baillie Lodges family from early next year, taking the reigns at Longitude 131° at Uluru-Kata Tjuta. Taking effect from January 2019, the Lanyons bring extensive experience managing remote properties and restaurants across Australia. From 2008 to 2012, the pair oversaw Southern Ocean Lodge on Kangaroo Island. Now with three sons joining them for the adventure, the family will be welcomed back into the Baillie fold in their new management role.

Kari Hunter is now underway in her new role as General Manager – Marketing at Choice Hotels Asia-Pac. Hunter’s new role involves general oversight across the group’s marketing strategy and ensuring the brand profile for Ascend Hotel Collection, Clarion, Quality, Comfort and EconoLodge are at their highest. She joins Choice with 15 years’ experience, most recently with Belgravia Health.

A formidable culinary team has been assembled to lead the food and beverage direction at Howard Smith Wharves – Brisbane’s newest dining and entertainment precinct. Bringing a wide variety of skills to the roles, the troupe will oversee menus and the dining experience at Felons Brewing Co., Mr Percival’s, Howard’s Hall and events at the Rivershed venue. Serving as Culinary Director will be David Finlayson, backed by Executive Chef Patrick Frieson. Head Chef at Mr Percival’s and Felons Brewing Co will be Damien Styles and Michael Hardy respectively, while Steven Forrester will serve as Executive Chef for Events.

Highly experienced with Chinese guests, Leigh Shepheard has taken charge at Park Hyatt Melbourne as the property’s new Hotel Manager. Having served in senior roles at Park Hyatt Seoul, Park Hyatt Shanghai and Grand Hyatt Beijing, Shepheard brings over 15 years of hospitality service to his new duties. Highly focused on customer service, Shepheard will craft unique and luxury experiences for his guests through the dedicated team behind him.

Following the establishment of a dedicated warehouse to improve service efficiency, hotel guest room product supplier Weatherdon has appointed a new General Manager to oversee the company’s Australia and New Zealand operations.

Bronson Chin is an Auckland local and brings to the role an IT business background along with experience in marketing and supply chain management. He is also experienced in working with hotel clients during periods of refurbishment and refitting.

Based in Auckland, Scenic Hotel Group has welcomed Anya Harrison to the role of Corporate Account Manager. First impressions with Anya leaves people with a clear indication of her passion for people – a trait which played a major part in securing her to this position. Her daily duties involve establishing and maintaining high-level business relationships with key suppliers and clients central to the group’s operations.

50 HM The Business of Accommodation

Ovolo Hotel Group has made two new key appointments across its Australian network. Kristy Ryan has been named as the new General Manager at Ovolo Nishi in Canberra, while Kylie Mann is now in place as the new Area Sales Manager for ACT and NSW. Kristy moves to the role from over a year in Darwin, where she managed Darwin’s H Hotel, while Kylie moves to Ovolo from a Key Account Manager role at Frasers Hospitality.

Moving across from Westin Sydney, Jeremy Clark is now cooking up a storm with his 55-strong culinary team at the InterContinental Sydney as the hotel’s new Executive Chef.

The UK native has plied his trade in the past at Hilton hotels in England and Australia as well as at Four Seasons Sydney.

Assuming a newly-created role, Peter Ferris has joined RMS – The Hospitality Cloud as its new Director of Global Sales & Marketing. Ferris, who joins from Punthill Apartment Hotels, will oversee teams in Australia among his new duties. The property management system now looks after more than 6,000 hotels in 30 countries.

Hotel technology firm eRevMax has appointed Josef Lapka as its new Senior Vice President – Operations.

His new duties include executing the company’s growth strategy and general global operations. Lapka brings nearly 20 years’ tech experience to the role.

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