HM DECEMBER 2019

Page 1

IN THIS ISSUE

HOTTEST F&B ITEMS OF 2020: HM LOOKS AT PRODUCTS YOUR HOTEL NEEDS OVOLO GROUP’S GIRISH JHUNJHNUWALA ON BALI AND A RESORT FOR AUSTRALIA

THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC Vol.23 No.6 Bi-monthly December 2019

FRANCHISING DEMAND: WHY THE SEGMENT REMAINS HOT IN AUSTRALASIA

Choice’s winning ways It has been a year of positive change for Choice Hotels and its Comfort Hotels brand. Led by the global head office, the famous marque has undergone a makeover, which will set up the brand to grow on into the next decade.

HOT THIS MONTH New luxury hotels open in Perth, sustainability, gender equality and much more


The new Foxtel experience

Stream over 1000 movies On Demand Over 90 channels Over 50 live sports Bohemian Rhapsody now showing on Foxtel Movies Premiere

For more information on how we can help build your business

Call 1300 736 104 Email foxtel.business@foxtel.com.au


for accommodation is here

Stream over 4000 TV episodes On Demand Guest casting Australia-wide support


The world’s best guest engagement platform developed for Australia

¦ User Interface

¦ Cloud based platform with

¦ ¦ ¦ ¦ ¦

¦ ¦ ¦ ¦ ¦

customisation

Hotel branding Foreign language UI’s Self-service portal Ultra High Definition* PMS integration

future proof technology Digital compendium

Add in your own content Digital signage Local news and weather Guest messaging

*Requires Ultra High Definition compatible TVs. Not available until Autumn 2020. ^Selected languages available. First Man: © 2018 Universal Studios. All Rights Reserved. A Star Is Born: © 2018 Warner Bros. Entertainment Inc. and Metro-Goldwyn-Mayer Pictures Inc. All Rights Reserved. Fantastic Beasts: The Crimes of Grindelwald: © 2018 Warner Bros Entertainment Inc.; Harry Potter and Fantastic Beasts Publishing Rights J.K.R. Dumb and Dumber: © 1994 New Line Productions, Inc. All Rights Reserved. His Dark Materials, Succession: 2019 © Home Box Office, Inc. All rights reserved. HBO and all related service marks are the property of Home Box Office, Inc. Invictus: © 2009 Warner Bros. Entertainment Inc. and Spyglass Entertainment Funding, LLC. Kill Bill: © 2011 Miramax. Instant Family: © 2018 Paramount Pictures Corporation. All rights reserved. The Mule: © 2018 Warner Bros. Entertainment Inc., Bron Creative, and Imperative Entertainment, LLC. The Wife: © 2017 Meta Film London Limited. All Rights Reserved. BUS0355

For more information on how we can help build your business

Call 1300 736 104 Email foxtel.business@foxtel.com.au


Harness the power of your screens in three powerful ways Foxtel content live and On Demand

Guests can cast from their device

Display or insert your own content

Give your guests full access to Foxtel’s extensive Content Warehouse packed with entertainment, news and live sport. At their fingertips will be an extensive On Demand streaming service.

Your guests can simply cast content from their favourite streaming apps using compatible devices. While international guests will be able to navigate the interface in their own language^.

Foxtel also gives you the flexibility to add content that delivers a superior experience for your guests. Plus, easily promote bars, restaurants and other services within your hotel.


From one top performer to another.

You pride yourself on performing at your very best. And with an impressive long-term investment history, Hostplus knows a thing or two about performance, too. According to SuperRatings, our default Balanced investment option ranked highest, or second highest over 20, 15, 10, 7, 5 and 3 years to 30 June 2019.* Looking for a super fund that works as hard as you do? Visit hostplus.com.au

Hostplus. We go with you. *Number one Fund over 7 years (11.13% p.a.) (48 funds), 5 years (9.65% p.a.) (48 funds) and 3 years (10.80% p.a.) (48 funds), and number two Fund over 20 years (8.10% p.a.) (21 funds), 15 years (8.16% p.a.) (29 funds) and 10 years (9.67% p.a.) (45 funds) – SuperRatings Fund Crediting Rate Survey, June 2019. Past performance is not a reliable indicator of future performance. Consider the Host-Plus PDS and your objectives, financial situation and needs, which are not accounted for in this information before making an investment decision. Host-Plus Pty Ltd ABN 79 008 634 704, AFSL 244392, as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 (the Fund) INH1168 1119


CONTENTS

38

December

38

SERVING UP 2020

HM uncovers the tastes and techniques coming to plates, platters and palates around the country to kick off the ‘roaring 20’s in 2020.

2019

Vol. 23 No.6

46 FRANCHISING IN FOCUS

Once touted as an unworkable model for accommodation, franchising is now a beacon of industry success. HM chats to Australia’s largest players in franchising for an update on further growth prospects into and beyond 2020.

54 56 58

SPOTLIGHT ON SHADOW PLAY

The regeneration of Melbourne’s Yarra–adjacent hotel scene has picked up pace in 2019. HM takes a look inside one of the city’s newest additions from the Peppers stable.

UNTANGLING WHOLESALE

The move by Marriott International to place its full faith in Expedia Group for its wholesale requirements surprised some, if for no other reason than its sheer simplicity.

DINING GOES BOUTIQUE

Hotels are making a concerted push to appeal to locals as much as travellers and in–house guests, leading to new designs, dining concepts and a new way of thinking for restaurants.

60 BITING BACK ON BED BUGS

The resilience of bed bugs has to be admired if equally loathed, but the key to beating these tiny pests can be as simple as using a quality supplier of bedding and cleaning equipment.

HM Q&A 14

Ritz–Carlton Perth is in the city’s Elizabeth Quay precinct

36 GIRISH JHUNJHNUWALA

In seven years, Ovolo Hotels has become a major player in Australia, having begun life in Hong Kong. Amidst its recent move to Indonesia, HM sits down at HICAP 2019 with Ovolo founder, Girish Jhunjhnuwala, to talk new markets and Ovolo resorts.

Regulars

08 EDITOR’S LETTER

James Wilkinson on the resurgence of the iconic Raffles Singapore

10 NEED TO KNOW

The 21 essential news stories you need to know this month – spanning operations, development and tourism industry news

On the cover

Choice Hotels Asia–Pac’s leadership team of Kari Hunter, Trent Fraser and Anthony Stanley

28 COVER STORY

Presented this month by Choice Hotels Asia–Pac

54

50 PEOPLE

A look at who is moving where in the industry hotelmanagement.com.au 7


EDITOR’S LETTER Managing Director Simon Grover

Raffles Hotel Singapore returns to its iconic status

Publisher

James Wells

Editor–In–Chief

F

ew hotels in the world can genuinely use the word 'iconic' but one of them is undoubtedly Raffles Hotel Singapore. The hotel – which dates back to 1887 – is owned by Qatar’s Katara Hospitality, which has just completed a mega transformation of the property, taking Raffles Hotel Singapore to heights never seen before. “We are very pleased to partner with Katara Hospitality, the owners of Raffles Singapore for the iconic property’s official return to the city – refreshed, reimagined and revitalised,” said Accor CEO and Chairman, Sébastien Bazin. “This is where it all started and faithful to its roots, Raffles Singapore reinvents emotional luxury. “As the hotel concludes its restoration and embarks on the next chapter, the return of this flagship property to Raffles Hotels and Resorts paves the way for the expansion of the brand as we deliver this same level of unparalleled service and sublime experiences to new destinations.” While the rooms and common areas have had an exceptional makeover, it is on the food and beverage front where the most impressive upgrades have taken place – through classic drinking dens, the Long Bar and Writers Bar alongside additions such as La Dame de Pic, BBR by Alain Ducasse, and Burger and Lobster. The arrival of a Ducasse restaurant in Singapore has already been a winner for Raffles, given not just the stature of the French chef’s brand, but the interior design, style and quality of food and drinks on offer. I had the opportunity to visit all of the food and beverage outlets during a gala event at the hotel in late November as HM went to print and the quality of F&B on offer is not just a winner for Raffles Hotel Singapore, but for Accor across the region. Fittingly, this issue of HM is our annual food and beverage special, where we look at some of the hot trends in the industry right now. You can catch that feature from page 38. In other news, food and beverage will have its own stage during AHICE 2020 in the form of ‘The Appetiser’ – a half–day event that will take place the day prior on May 5 at Grand Hyatt Melbourne. Getting F&B right in hotels is a major challenge for owners and operators and through our special features and industry events, we hope to be able to inspire, educate and generate thought–provoking discussions in the industry. I'd also like to take this opportunity to introduce HM's new National Sales Manager Tara Ducrou - we're thrilled to have her as part of our team I please do take the opportunity to reach out to her and say hello. Enjoy this issue and I look to your feedback. Yours in hospitality,

James Wilkinson Editor–In–Chief

Ra f fle s

Raffles Singapore Grand Lobby

ng Sing apore Swimmi

ol Po

MEET THE HM TEAM…

James Wells Publisher

Matt Lennon Deputy Editor

8 HM The Business of Accommodation

Tara Ducrou National Sales Manager

Adrian Tipper Creative Director

James Wilkinson jwilkinson@intermedia.com.au

Deputy Editor

Matt Lennon mlennon@intermedia.com.au

National Sales Manager Tara Ducrou tducrou@intermedia.com.au

Contributing Writers

Dean Long, Michael Johnson, Sally Attfield, Peter McBrearty

Production Manager Jacqui Cooper jacqui@intermedia.com.au

Subscription enquiries

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

Published by

41 Bridge Road, Glebe NSW 2037, Australia. (PO Box 55, Glebe NSW 2037, Australia) Tel: +61 (0) 2 9660 2113 Fax: +61 (0) 2 9660 4419 ABN 940 025 836 82

In association with

DISCLAIMER This publication is published by FAB Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re–enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2019 – FAB Media Pty Ltd.


REPLACE OLD, INEFFICIENT LAMPS WITH THE

NEW LED RANGE FROM GE

Bright Stik

Mavis

Bright Stik

Airlie

G95

Heritage Candle

ALSO AVAILABLE T8

Tube

GL

S

Koralky

Salerno

Heritage Pilot

Duce

• Ideal for replacing halogen and CFL lamps • Quick, cost efficient solution • No wiring required • Lower energy, longer life and reduced operating costs • Latest LED technology • 3 year warranty

Available at leading electrical wholesalers

Get a quote at ww w. beaconlightingcommercial.com.au Melbourne 8/621 Whitehorse Rd, Mitcham, 3132 P +613 8415 0277

Adelaide 2/34 Bennet Ave, Melrose Park, 5039 P +618 8374 0553

Brisbane 58 Precinct Street, Parkinson, 4115 P +617 3216 9039

Perth 3/11 Howe St, Osborne Park, 6017 P +618 9444 9653

Sydney 34 -36 Adderley St East, Lidcombe, 2141 P +612 9699 7255

COMMERCIAL


21

Things You Need To Know The essential hotel and travel industry news and trends from across the globe. Read more at HotelManagement.com.au.

InterContinental Lifou Wadra Bay Resort room rendering

01

Island getaway for IHG as New Caledonia entry firms up

French territory to welcome three new hotels across two brands as InterContinental Hotels Group sets sights on Pacific growth THREE NEW IHG hotels across two brands will open in four years across the Loyalty Islands – better known as New Caledonia – as the company announced its entry into the tiny French territory in the South Pacific. One newbuilt property branded as the InterContinental Lifou Wadra Bay Resort will open in November 2021 and will feature

50 rooms including lagoon–front suites, an all–day dining restaurant along with a fitness centre, bar and outdoor swimming pool. In addition, two existing resorts will be refurbished and rebranded as Holiday Inn Resort Ouvea and Holiday Inn Resort Lifou, respectively located on Mouli Beach and the major township of Wé. Both resorts will offer

02

Jerry Schwartz picks up Gold Coast bargain Former Ralan Group asset rescued from uncertainty for AUD$43 million REAL ESTATE ENTREPRENEUR and investor, Dr Jerry Schwartz, has boosted his Gold Coast portfolio, picking up the city’s Paradise Resort – a former asset of the insolvent Ralan Group.

The price tag is a AUD$32m discount on that paid by its former owners, which announced in August it has entered voluntary administration with debts of around AUD$500 million. Paradise Resort Gold Coast has been one of the holiday hotspot’s most beloved family– friendly properties for four decades, with 360 10 HM The Business of Accommodation

rooms located in central Surfers Paradise. The addition of the former Ralan property takes Dr Schwartz’s portfolio to 15 hotels and 3,500 rooms across four

states and territories. It’s his second Gold Coast hotel and follows the purchase in January of Hilton Surfers Paradise. Following the purchase, Dr Schwartz announced he would upgrade Paradise Resort Gold Coast to 4.5–star standard in order to attract a wider traveller market.

guests an all–day dining restaurant, bar and swimming pool, with opening dates in 2021 and 2024 respectively earmarked at this point. All three hotels are owned by Société de développement et d’investissement des Îles Loyauté (SODIL) – a body of the Loyalty Islands province, one of three administrative organisations in New Caledonia.

ise rad Pa

Resort waterpar

k


THINGS YOU NEED TO KNOW

03

The Star redevelopment proposal rejected NSW Independent Planning Commission knocks back new Pyrmont tower

The once–proposed 237–metre tower at The Star Sydney

THE STAR ENTERTAINMENT GROUP says it is carefully digesting and assessing a decision by the NSW Independent Planning Commission (IPC) to reject its AUD $529 million redevelopment proposal before deciding on its next steps. The three–person commission affirmed an earlier decision made in July by the NSW Department of Planning, Industry and Environment to knock back the redevelopment, which would have included a 237–metre tower and podium along with a 220–room luxury hotel managed under the Ritz– Carlton brand. Plans also included 204 residential apartments, basement car parking and a neighbourhood centre for the Pyrmont and surrounding communities. The Star said more than 1,000 jobs and numerous economic benefits would have been associated with the proposal. “Given we had no prior notification of the decision we are still digesting the full findings before we announce next steps,” a spokesperson for The Star Entertainment Group said. In a statement, the IPC determined the new tower would be inconsistent with its immediate context. In addition, it deemed it would “result in unacceptable visual impacts due to its scale, isolation and visual dominance of the existing Pyrmont character and fails to promote good design and amenity of the built environment.” Agreeing with the government’s decision, the IPC concluded that “on balance the public benefits do not outweigh the impacts associated with the Application.” Marriott International said it strived to work with partners around the world to bring its distinct brands to life and that it looked forward to bringing the Ritz–Carlton brand to Sydney in the future.

International Hotel Leadership From short courses to an MBA. Be the hotel leader of tomorrow. Start today. Learning that fits with your lifestyle Our short courses are 100% online and bite-sized allowing you to upskill and learn MBA content in a way that fits with your working life. Unique MBA for Hotel Leaders Designed for – and by – real hotel industry leaders. Our MBA Content is relevant, inspiring and immediately applicable.

Learn more

Number 1 Hotel Management School in Australia and Asia-Pacific (TNS Survey, 2017)

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.

hotelmanagement.com.au 11


Rydges will soon take over Old Sydney Holiday Inn

THINGS YOU NEED TO KNOW 04

Old Sydney Holiday Inn set for Rydges switch Iconic Sydney hotel to begin 2020 under new brand

ONE OF THE Sydney CBD’s most iconic properties, currently trading as Old Sydney Holiday Inn in The Rocks, will join the Rydges network from early 2020 as part of a new management agreement. Following a competitive tender for the management rights, the 176–room hotel will be rebadged as Rydges Sydney Harbour, effective from 14 January 2020. The move sees the property become the 16th Sydney hotel in the Event Hospitality & Entertainment Limited network after nearly two decades flying the Holiday Inn flag. A major refurbishment will be carried out on the hotel following the rebrand, including a new design and colour scheme on the ground floor restaurant and bar. A new General Manager will also be appointed in the new year.

Short–term residential letting is under scrutiny 05

Unregulated letting eroding hotel market share Private accommodation rapidly growing in popularity

TRAVELLERS ARE SHUNNING traditional hotel accommodation providers in favour of unregulated short–term residential letting, according to the 2018–19 Australian Accommodation Monitor (AAM). Results show a AUD $3.39 drop nationwide in RevPAR, taking the national average to AUD $138 per room per night. Average Daily Rate (ADR) closed at AUD $187 with the average occupancy level at 74%, down 1.4% on the previous year. Total revenue generated by the sector was calculated to be AUD $14.8 billion for the financial year. Unregulated accommodation was the fastest growing market segment among both domestic and foreign travellers, with a 22.3% market growth rate recorded among locals and a 7.6% rate by foreign visitors. However, the growth spurt could be short–lived as the Australian Taxation Office continues its crackdown on unreported income from short–term letting. Companies such as Airbnb are in the process of handing over data on its letting pool for this process. 12 HM The Business of Accommodation

Hyde Hacienda features extra seating and focus on table service 06

Hyde Hacienda Sydney opens its doors Australia’s third Hyde sees brand take over Hacienda Bar NIGHTLIFE BRAND HYDE has launched its third venue in Australia, with Sydney’s Hacienda Bar pulling back the curtains late last month on its rebranded and redesigned look. More than 170 guests packed the bar, which overlooks Circular Quay and the Sydney Harbour Bridge from inside the Pullman Quay Grand Sydney Harbour, to enjoy free–flowing champagne and sights including Ferraris and super yachts parked outside. Guests were entertained by international DJ, Havana Brown, with PR queen and Accor x sbe lifestyle ambassador, Roxy Jacenko, hosting the soiree amidst a collection of high–profile television and entertainment personalities. Hyde Sydney aims to recreate the atmosphere and energy of 1950s Miami beach clubs. Modifications made from its previous existence include an expansion of available seating areas and a greater focus on table service. The brand’s newest opening follows its debut earlier this year on the Gold Coast followed by the opening of its second location in Perth as part of The Adnate.


TECH NEWS

HM x TRIPADVISOR PROMOTION

Reviewer Don’t Fear the

The Facts About Online Reviews Reviews today are readily available to anyone online at any time, worldwide. And customers are now accustomed to checking these online reviews before making travel decisions.

Don’t be alarmed if your business has a couple of negative reviews

Not surprisingly, 79% of travellers said they are more likely to book accommodation with a higher 'bubble' rating on TripAdvisor.

A FEW BAD REVIEWS ARE QUITE NORMAL

The survey showed that people are careful when reading reviews. Nearly 40% said they ignore extreme comments. And they tend to read a lot of reviews. Ten is the average number of reviews read by those booking accommodation.

vi ew ,a nd re

re

GOOD REVIEWS HELP

RECENT REVIEWS ARE MORE IMPORTANT

a ve lea

The survey found that 80% of travellers always or frequently read reviews before making a decision on accommodation.

The survey found that 52% wouldn’t book accommodation which didn’t have any reviews. So a mix of positive and negative reviews is actually better than no reviews at all.

e your guests to

REVIEWS ARE IMPORTANT

HAVING NO REVIEWS IS WORSE

En cou rag

N

obody ever likes to get a bad review. Not movie stars, theatre directors, or designers, and certainly not small business owners who’ve poured their lives and fortunes into something they love. There’s nothing new about that. What’s new is that these business reviews are no longer coming from a single critic or vague word of mouth. This new reality is understandably intimidating. What if a spate of bad, or worse – unfair – reviews show up about your hotel? A study from Womply Research conducted in 2018 found that businesses earning a 4–4.5 star rating can earn 22% more revenue than those with a 3–3.5 star rating. That can mean the difference between success and failure. That said, bad reviews are far from a disaster for small businesses. In fact, that same study also found that strangely, 5–star–rated businesses tend to have less revenue than the average firm and that businesses where 15 per cent to 20 per cent of the reviews were negative had the highest revenues. These findings are right in line with the results of a survey conducted by TripAdvisor to get a better understanding of how customers use online reviews when making decisions about travel. The findings may come as a welcome surprise to many small business owners.

s p o nd

ints to compla

More than three quarters of those surveyed (78%) said they focus on the more current reviews to get the freshest perspective.

TRIPADVISOR REVIEWS ARE ACCURATE

We can’t speak for other review platforms, but the accuracy and reliability of reviews on TripAdvisor – every one of which is moderated either electronically or manually before being posted – is clear from the survey results. More than 90% said the reviews they read on TripAdvisor before booking a hotel accurately reflected their own experience. Another interesting finding is that 85% of travellers said they write reviews on TripAdvisor so they can share good experiences with fellow travellers. They want to pay it forward. Of course, there will be negative reviews. That’s a fact of life. But what we’re finding is that customers are becoming increasingly savvy about online reviews. By and large, they are weighing up evidence, not hunting for that one disgruntled customer for a basis to steer their decision. This is good news for small business owners worried about how online reviews will affect the businesses they’ve built with their own blood, sweat and tears. The bottom line is that if businesses take good care of their customers, provide a quality service, and are responsive to complaints, they will get better reviews. And higher ratings on TripAdvisor. And more customers. n hotelmanagement.com.au 13


THINGS YOU NEED TO KNOW

Ritz-Carlton completes its grand return to Australia

Pe on

abeth Quay prec ’s Eliz inct city

Rit z– Ca r lt

07

n is i rth

Brand’s 100th hotel globally can be found in Perth

MARRIOTT INTERNATIONAL HAS completed its goal of returning the Ritz-Carlton brand to Australia, with the marque formally opening its 100th location in Perth. The 205 rooms and suites of Ritz-Carlton Perth are five years in the making and feature as part of a sparkling new development at Elizabeth Quay in Perth’s CBD. Overlooking Kings Park and the Swan River, the hotel’s accommodations are headlined by the 277–square metre Ritz-Carlton Suite

which offers separate sleeping, living and entertainment areas with floor–to–ceiling windows maximizing the views. Guest facilities include multiple food and beverage outlets, led by the hotel’s signature restaurant Hearth which offers new interpretations of classic Australian BBQ fare. Further facilities include the Ritz-Carlton Spa and its four treatment rooms along with 2,000 square metres of conference and event space including the grand Elizabeth Quay Ballroom.

08

Sydney Airport to offer Australia’s first ‘Aerotel’ Pay–by–the–hour hotel rooms to help travellers pre–flight PLAZA PREMIUM GROUP will open Australia’s first Aerotel at Sydney Airport as part of a USD$55 million (AUD$80 million) investment into expanding the concept to 15 new locations around the world. Aerotel Sydney will be situated around a one–minute walk from the Arrivals Hall at Sydney International Airport and features a block of 20 hotel rooms able to be booked by the hour to allow travellers with early or late departures an opportunity to rest and prepare for the journey ahead. Rooms at the facility can be booked with a minimum six–hour charge and are designed for travellers who live an extended distance from Sydney Airport eager to avoid leaving for the airport in the middle of the night. The addition of the Aerotel concept to Sydney comes in support of research showing a strong peak period of travellers leaving on flights prior to 9am and requiring check–in from 6am or earlier. Plaza Premium Group will also open a 70–seat pay–per–use lounge in the airport, providing guests travelling in all cabin classes with a place to relax and enjoy food and drinks prior to their flight. The company’s airport lounge is anticipated to open in the first quarter of 2020, with Aerotel Sydney scheduled for the second half of the year. Rooms similar to London Heathrow will soon be open at Sydney Airport

14 HM The Business of Accommodation

09

Pro–invest commits to clean energy in all new hotels

HI Express and Suites Parramatta

Green standard to be implemented in all new developments HOTEL OWNERSHIP AND management firm Pro–invest has initialised a new equity investment fund in an effort to incorporate energy–saving and sustainable technologies as part of its minimum criteria for all new and under–construction hotels. To launch the fund, the Clean Energy Finance Corporation has invested AUD $50 million, monies which will be directed towards sustainability initiatives at two Holiday Inn Express hotels in Parramatta and the Sunshine Coast. Its purpose is to see all new Pro–invest developments and properties under construction set a minimum 25% energy saving requirement and a significant reduction in energy costs and emission levels of another 15 in various stages of construction across Australia. Properties drawing on the funds must aim for a five–star rating under the National Australian Built Environment Rating System (NABERS). Further qualifying criteria for the new CEFC funds include dedicated clean energy plans on all hotels and the latest in green initiatives including low–carbon construction materials and techniques such as cross–laminated timber, efficient heating and cooling equipment and energy–efficient building management protocols. The fund marks the second time Pro–invest has initiated a clean energy fund, with the first drawing on debt finance from CEFC to incorporate low–emission technologies into the soon–to–open Holiday Inn Express Melbourne Southbank. This investment has seen high– performance window glazing, air–cooled chillers, condensing boilers, rooftop solar and regenerative lift drives installed in the newbuild.


THINGS YOU NEED TO KNOW

Major hotels worldwide are slashing plastic usage

10

Hyatt sets network deadline on single–use plastic

HYATT HOTELS CORPORATION has become the latest major hotel group to shift its global brand portfolio to large–format refillable bathroom amenities and recyclable water bottles in a move to significantly reduce its environmental impact. A deadline of June 2021 has been set for all properties across all brands to implement operational changes including phasing out small, single–use plastic amenity bottles including shower gel, shampoo, conditioner and lotion as well as installing more water stations throughout each property and switching to water carafes or refillable bottles for meetings and events. Bottled water will continue to be available if requested by MICE clients. A wide variety of Hyatt brands are already operating under these guidelines, with the head office move aimed at implementing a formal company–wide minimum standard. The latest move builds on recent efforts around the Hyatt portfolio to remove plastic drinking straws from all bars and restaurants as well as increasing the use of compostable and recyclable packaging for ‘grab and go’ style food items.

Ovolo Group lands in Bali with new resort High–energy hotel brand arrives in its third country

HONG KONG–BASED Ovolo Group has added a third country to its growing property portfolio, opening its doors for the first time in the Indonesian holiday island of Bali. The 194–room resort, formerly the Citadines Kuta Beach Bali,

Wyndham Garden bound for Brisbane Company’s lifestyle brand will land in Spring Hill in 2021

New global standard set to reduce environmental impact

12

11

BRISBANE’S INNER–CITY suburb of Spring Hill will host the Australian debut of the Wyndham Garden Suites brand, with a 120– room hotel slated to open in September 2021. Designed for the short and extended–stay market, Wyndham Garden Suites Spring Hill Brisbane will offer a fitness centre, swimming pool, onsite restaurant and meeting rooms.

An impression of Wyndham Garden Spring Hill Brisbane

offers 182 studio hotel rooms, nine one–bedroom villas and three two–bedroom suites. Guest facilities also include an all–day restaurant, rooftop pool and bar, fitness centre and conference facilities for the MICE industry. A formal name for the company’s new Indonesian property has not yet been formalised. Early next year, the property is expected to be formally rebranded and a timeline for refurbishment established in order to bring it in line with the Ovolo philosophy. As the company plots further expansion in Southeast Asia and Australia, the move cements its intentions into new markets, with the company previously flagging intentions to grow into the United States, United Kingdom and New Zealand.

Ovolo is taking over the former Citadines Kuta Beach hotelmanagement.com.au 15


THINGS YOU NEED TO KNOW 13

ATO forces GST on offshore hotel retailers

Foreign sellers of Australian hotels must now charge GST

SELLERS OF AUSTRALIAN–BASED commercial accommodation must now price their products inclusive of Goods and Services Tax (GST) after the Australian Tax Office closed a loophole in an effort to improve the competitiveness of Australian–based, tax–paying retailers. The move, effective immediately following the passage and ratification of a Federal Treasury Laws amendment on 13 September, applies to all online and offline businesses retailing Australian accommodation and earning more than AUD$75,000 through these revenues over a 12–month period. Domestic accommodation providers utilising offshore resellers are not impacted by the move as

TripAdvisor employs high–level fraud detection algorithms

The ATO has closed a long–standing GST loophole payments are usually made direct and rates provided are already inclusive of GST due to the accommodation provider being a GST– registered Australian business. Types of accommodation affected include hotels, motels and hostels, serviced apartments, student accommodation, caravan and tourist parks, houseboats, B&B operators and Australian–based cruise operators.

ATO Deputy Commissioner Deborah Jenkins said she was pleased to see the loophole closed. “This change removes the competitive advantage that offshore sellers had over domestic accommodation providers. It also allows businesses that book accommodation through offshore sellers to obtain a tax invoice and claim GST credits.”

14

Accor reaffirms commitment to equal gender leadership Equal gender representation will be coupled with equal pay A GLOBAL TARGET of an equal 50% spread of males and females in front–line hotel and executive roles has been set by Accor as a new initiative with its international diversity and mentoring network RIISE, which works to combat stereotypes, sexism and sexual harassment. Out of 300,000 employees worldwide, the hotel giant has set a goal of at least 35% female General Managers in hotels around the world by the end of 2020, with a longer–term target of 50%, all with equal remuneration. Currently, the French organisation has a female GM contingent of 29%, along with 42% Department Heads. In the Asia Pacific region, Accor currently operates its 1,150 hotels with a 25% female leadership ratio – a rate which has climbed 4% in the last year. Australia has been identified as one country, in addition to France, Spain and Brazil, where Accor aims to have equal pay in place by the end of 2020 with a view to expand the policy across the entire organisation. Accor is the only hospitality group invited by the United Nations to become one of the founding members of its HeForShe movement.

16 HM The Business of Accommodation


IT’S OUR JOB

TO MAKE YOU LOOK GOOD AUSTRALIA’S OUTSOURCED HOUSEKEEPING LEADER FOR OVER 25 YEARS Beautifully made beds, impeccably clean rooms and a perfectly presented bathroom all executed by a team who treats your guests as their own. At ahs we work with you to improve every guest’s experience because your success is our success. These are just some of the reasons we’ve been the trusted housekeeping partner for over 25 years to properties across Australia and New Zealand. Call us on 1800 026 036 or email us at info@ahshospitality.com.au and our friendly team will work together with you. Visit our website at www.ahshospitality.com.au

hospitality VICTORIA

NEW SOUTH WALES

WESTERN AUSTRALIA

QUEENSLAND

SOUTH AUSTRALIA

CHRISTCHURCH

Level 16, 570 Bourke St Melbourne Victoria, 3000

Level 5, 345 George St Sydney New South Wales, 2000

Level 15, 108 St Georges Tce Perth Western Australia, 6000

Level 7, 120 Edward St Brisbane Queensland, 4000

Level 1, 78 Sir Donald Bradman Dr, Hilton South Australia, 5033

Level 1, Papanui Rd, Merivale, Christchurch New Zealand, 8014


THINGS YOU NEED TO KNOW

Art Series’ newest namesake artist, Matt Adnate

15

minutes with...

MATT ADNATE His name is now emblazoned 25 storeys up in lights in Perth, but the man himself has his feet firmly grounded. HM sits down with Art Series Hotels' newest namesake artist, Matt Adnate.

Where did your passion for giant artwork stem from?

I GREW UP painting graffiti so doing ten years of graffiti art as a teenager to my mid–twenties, it was all about painting big and trying to make an impact on the urban environment. Painting on a large scale is on a whole other level because you are ultimately changing the landscape of these whole city skylines.

s en op

18 HM The Business of Accommodation

y all f i ci f

That is pretty amazing, because all those artists are very, very well established. Some of them have been painting for fifty years or more. To be on a level with John Olson and artists like Vincent Fantauzzo and Cullen and all that, it is absolutely mind blowing, especially as I’m still in my mid 30s and to be with artists like that at my age, I am completely blown away.

Immensely positive. There has been a really good media run with everything. The local Aboriginal communities have been really impressed and moved by it, which is fantastic. I like creating a bit of conversation in terms of ‘Why did you paint a Mediterranean girl?’ or ‘Why didn’t you paint some cricket legend?’ or something like that, but there is already so much of that kind of homage to these classic traditional Australian white fellers that I think it is important to celebrate other cultures.

ate o Matt Adn

How does it feel to be recognised for that by Accor and to join a collection of artists all very high profile in their own right?

Tell me about the response at The Adnate. What feedback have you received, both from Accor, from other artists and also from the Perth community.

Th

eA dn ate

in P erth


AHICE 2020: PLANNING FOR THE FUTURE OF THE AUSTRALASIAN HOTEL INDUSTRY

6-7 May 2020 Grand Hyatt Melbourne

The hotel event where deals get done NEW EVENTS AMAZING GLOBAL SPEAKERS MORE NETWORKING

REGISTER NOW www.ahice.com.au

Diamond sponsor

Hosted by

Diamond sponsor

Co located with


Insta standouts

Wyndham signs to take its first TRYP to Melbourne

Four global hotels you need to follow on Instagram

ex t

Growing brand adds a third state to its Australian network

01 Rocabella Santorini

@rocabellasantorini

e ri or w

el M YP R T ill gre et guests at

MELBOURNE’S INNER–CITY suburb of Carlton will become home to the city’s first TRYP by Wyndham after the company confirmed it had signed a management deal for a newbuild hotel to be developed across from the University of Melbourne. To be managed by the urban lifestyle brand, TRYP by Wyndham Melbourne will be a 173– room property a few minutes’ from the restaurants, boutiques and nightlife of Lygon Street. It will become the fifth TRYP in Australia, with three in Brisbane and the Gold Coast and development underway on the brand’s first property in Adelaide. Construction by TRYP by Wyndham Melbourne will be led by Manors Gate Group, which has outlined plans for art–inspired interior spaces and an attention–grabbing exterior reflective of Melbourne’s energy and vibrancy. Hotel facilities will include a café–style restaurant, rooftop bar, fitness centre, meeting and event spaces and a cooperative business zone with co–working spaces. TRYP by Wyndham Melbourne is on track to open in the first quarter of 2021.

The city’s food and wine scene will be in focus at the new hotel

02 Avani Hotels

@avani_hotels

18

Adelaide Oval Hotel sets Sept 2020 opening date

03 The Datai, Langkawi

Self–managed boutique hotel to wrap stadium’s eastern façade

@thedatailangkawi

04 Fairmont Chateau, Lake Louise

@fairmonthotels

20 HM The Business of Accommodation

bo u

17

k ric Ab

16

rn e

THINGS YOU NEED TO KNOW

ADELAIDE OVAL WILL self–manage a 138–room premium boutique hotel currently under construction around its eastern façade, with an opening date scheduled for September 2020 in time for the season of cricket and summer events. To be known simply as Oval Hotel, the hotel has been designed to hug the outside edge of the stadium’s existing structure. Renderings of the forthcoming hotel show rooms will be generous in size, with a calming grey colour scheme and brightly lit through floor–to– ceiling windows overlooking the surrounding parklands. Rooms and public facilities will be designed to showcase South Australia’s food and wine scene, with General Manager, Bodelle Francis, saying the hotel’s look reflected its distinctive offering. “We have chosen a name that is simple and strong and that we believe will establish Oval Hotel as a travel destination for South Australia and for Australia.


5 May 2020 • Grand Hyatt Melbourne

RE-IMAGINING HOTEL DESIGN Going beyond the brief Evocative keynotes Understanding new brands Inspirational case studies

REGISTER NOW

www.designinnsymposium.com

Hosted by

Sponsored by

Co located with


THINGS YOU NEED TO KNOW Former Quest property now part of Mercure network

New Vibe brand hallmarks now on show for guests 20

TFE opens doors for Vibe Darling Harbour debut Revitalised Sydney hotel reflects a New York–style loft

19

Accor strikes gold in Bendigo with Mercure rebrand Latest signing continues brand’s move into regional Australia THE REGIONAL VICTORIAN town of Bendigo has joined the global network of more than 800 hotels in the form of the new Mercure Bendigo Schaller. Formerly the Quest Schaller Hotel Bendigo, the hotel rebrand will see the 118–room boutique style property join the Accor network at the same time as a push by the Victorian government to decentralise business outside the CBD continues to gather momentum. Mercure Bendigo Schaller is located

around 150kms north of Melbourne and will offer 99 standard rooms, eight twin rooms, eight superior rooms and three designed for accessibility. Other facilities include a café and bar, fitness centre and meeting rooms for the local business sector. Nearby attractions and facilities include the Bendigo Art Gallery and La Trobe University, with the city also enjoying an active arts community backed by heritage architecture dating back to the gold rush of the 1850s.

TFE HOTELS IS now welcoming guests at its fourth Vibe branded hotel in Sydney – Vibe Darling Harbour. The 145–room property on Sussex Street reflects the feel of a classic New York City loft with oversized double–glazed windows overlooking Sydney’s inner west, located in the midst of Darling Quarter and Chinatown. Public and guest facilities include a rooftop bar, which sits alongside a rooftop heated pool. On the ground floor, visitors will find The Sussex Store, both of which take inspiration from the Mediterranean but also features an Asian twist. The new dining outlets come under the control of Executive Chef, Lynn Clemente, who moves across from Shangri–La Sydney.

21

Crystalbrook Collection welcomes ‘Bailey’ to Cairns Second of three new luxury North Qld resorts now open

THE SECOND OF three new luxury resorts being built and opened in Cairns under the Crystalbrook Collection banner has opened in the North Queensland city. Showcasing a passion for art and sustainability, the opening of ‘Bailey’ sees 255 new hotel rooms added to the Cairns accommodation landscape along with three new restaurants and bars, a rooftop swimming pool, fitness centre and new event spaces. Bailey follows the opening last year of sister Crystalbrook property, ‘Riley’, which itself recently celebrated its first birthday.

22 HM The Business of Accommodation

Key hallmarks of the Bailey personality are individuality and an appreciation for the arts, with artworks featuring on each of the tower’s 12 floors. A partnership with Mainie Australia, Cairns Indigenous Art Fair and the city’s local TAFE institutions will see the hotel display the works of local artists and students as part of its opening festivities. Facilities available to guests include the CC’s Bar and Grill steakhouse, along with a modern take on the classic Milk Bar. The hotel will also soon open a South American– inspired eatery its rooftop.


REGIS TER NOW www.theappetiser.com.au


OPINION

Steady progress on unregulating letting

As 2019 nears its conclusion, AAoA Chief Executive, Dean Long, reflects on the massive year the sector has experienced, with record investment in new and existing hotels.

YEAR 2019 HAS been massive for the accommodation sector. We’ve seen record investment in new and existing hotels and the introduction of the Tasmanian data sharing legislation together with ongoing NSW and Western Australia government consultation to address the issue of unregulated letting. Addressing the issue of unregulated letting has been at the forefront of all our advocacy efforts for the past two years and is always the primary issue in our member survey. We have been actively engaged with most parliaments around Australia to ensure they understand the importance in providing a level playing field for us and our guests. We will continue to push for all governments to implement a registration system and a code of conduct for those full–time operations running ‘quasi hotels’ in residential premises. At the same time, AirBnB and other like platforms have been forced to hand over their data to allow the ATO to check if those renting out their homes or rooms pay tax on their income. We will continue to advocate for capital gains tax to be enforced when their property is sold, just as we would when hotels are sold. We are hopeful that 2020 may be the first year in a long time that we have the foundations of a level playing field. Impressively, as a sector we have carried on with delivering one of the largest investment pipelines in the last 40 years. I had the privilege of attending the opening of the Pullman Melbourne on Swanston and to see first–hand what the Erdi Group, led by Ricky Jeffs, has achieved with this hotel. This is a fantastic new addition to Melbourne with a striking façade, re–designed guest rooms, a designer lobby, a brand– 24 HM The Business of Accommodation

new restaurant and an exclusive club lounge overlooking the city. This type of exciting development will continue to place Melbourne at the top of ‘Must See’ places to visit on their next holiday. Sydney and Perth are also seeing significant investment in exciting new product. In recent times, I have been attending a number of conferences around Australia including Best Western, Golden Chain and Big 4. It was great to see the many ways the industry is changing to meet the demands of customers. The approach Big 4 is taking to provide new and innovative accommodation facilities for families means they are addressing the challenges of unregulated accommodation head–on, especially in regional areas. As we finish the year, I want to thank the nearly 1,000 existing members and 100 new members that joined the Accommodation Association this year. Since coming into the role, myself and the team have been working hard to develop new products and services to ensure we continue to be relevant and deliver value to your business. In January 2020, you will be seeing much more from the Association as we introduce these new services and products. This will ensure more hotels continue to see the benefits of joining the Association. Finally, I wish you all a successful final month of 2019 and may your Christmas and holiday period provide you with some well–earned down time. See you in 2020. n Dean Long is the Chief Executive Officer of the Accommodation Association of Australia (AAoA).


OPINION

One of TAA’s greatest strengths – our legal team

One of the many great strengths of Tourism Accommodation Australia is our experienced team of legal and industrial relations experts, writes CEO Michael Johnson.

FOR SEVERAL YEARS now, our team has been in the vanguard of the fight to represent the hospitality sector in the Fair Work Commission’s (Commission) review of the modern awards and the Hospitality Industry (General) Award 2010. TAA, along with the Australian Hotels Association, employs 16 full–time workplace relations advisors and lawyers nationwide, led by our experienced National Director of Legal and Industrial Affairs, Phillip Ryan. On behalf of the entire industry, at a cost estimated at $2.5 million over the last six years, the AHA and TAA Workplace Relations team, led by Phil, has: • Made more than 100 appearances at the Commission. • Made more than 40 formal written submissions. • Engaged and paid for barristers. • Provided more than 50 AHA and TAA members to give evidence in support of industry change. As the only hospitality and accommodation employer representative appearing at the Commission in regard to the Hospitality Award, the AHA and TAA has led the industry case on matters of vital importance to our members including, penalty rates, part–time employment, casual conversion and minimum engagements, default clauses across the modern award system, proposed mergers with other modern awards, overtime rates for casual employees and the re–drafting of the Hospitality Award in plain language. AHA and TAA’s current work before the Commission is focused on the finalisation of review and implementation of the new

Hospitality Award and seeking a workable outcome in the review of annualised salary provisions and definition of casuals for the benefit of our members. I’m pleased to say we will continue to lead the accommodation sector, and the broader hospitality industry, in workplace relations reform in the Commission and elsewhere. Early next year, TAA and the NSW Industrial Affairs team will move into stand–alone offices in the heart of Sydney’s CBD. The new top floor offices at Culwala Chambers, on Castlereagh Street, is 380 square metres and features a glass atrium, interconnecting terrace, full kitchen, meeting areas, glass ceilings, a balcony and city sky–line views. This prime location is the perfect place to service our growing pool of members and we look forward to working even more closely with our talented legal team – who will be located in their own section. On another important front, on Tuesday, 19 November, I attended the Home Affairs 2019 Industry Summit in Melbourne. The theme was ‘Integrity, Prosperity, Security’ and there were a range of innovative workshops covering important topics like protecting Australia’s critical infrastructure and systems, increasing resilience to terrorism, customs and border modernization. Obviously, summits like this one are of vital interest to our membership and I look forward to sharing the findings with members in coming months. n Michael Johnson is the Chief Executive Officer for Tourism Accommodation Australia at both the National and NSW levels. hotelmanagement.com.au 25


OPINION

Bringing visitor research home

There’s no place like home, writes Sally Attfield, as newly released data shows domestic tourism in New Zealand is scaling heights never seen before.

AN ASTOUNDING 72% of New Zealanders have set off to travel their own country over the past 12 months, according to new figures. For the year to October 2019, 96% of domestic travellers had their expectations met or exceeded, with just 4% having a worse time than expected. It seems the choice to keep things local was a good one. Of those who had an exceptional time travelling Aotearoa, many enticing reasons were given. The most popular regions delivered beyond expectations and great hospitality was found far and wide. Our beautiful scenery continued to make a strong impression, even on those well acquainted with it. The 4% of unhappy travellers generally cited personal reasons for their poor experiences, whether bad luck with the weather or health; customer service not up to standard or an unforeseen hotel issue. Overall, domestic visitor satisfaction for the year was 8.6 out of 10, with a high Net Promoter Score of +68 reported – meaning the majority of domestic tourists would actively recommend New Zealand as a holiday destination. Domestic travellers are also taking longer trips. In the second quarter of 2019, they stayed an average of 5.8 nights away from home, compared to the 4.3 nights recorded in the same period the previous year. This research – carried out by Angus and Associates for TIA as part of our Visitor Insights Programme – was commissioned to monitor domestic travellers’ perceptions of their travel within New Zealand as a tracking mechanism for the Tourism Sustainability Commitment, which uses international & domestic satisfaction as a sustainability indicator. The research meets the needs of organisations across the industry, such as regional tourism organisations, economic development agencies, and of course operators. But we would certainly benefit from even more systematic and comprehensive research into domestic visitors, who make up 60% of 26 HM The Business of Accommodation

our overall annual visitor spend. With the new year rapidly approaching, the gaping hole left in our industry’s insights with Stats NZ dropping the Commercial Accommodation Monitor (CAM) is becoming ever more apparent. Hopefully a replacement product from a private provider will be available early next year, but the reality is the domestic tourism market has never been particularly well researched. TIA started its Visitor Insights Programme in 2018 – but what the industry really needs is an organisation with the capacity to provide regular mass marketing data on the domestic visitor group. Which is why we’re pleased that Tourism New Zealand has been tasked with doing just that. In a report released in October, the Ministry of Business, Innovation and Employment pointed out that TNZ has the resources to gather and share some very valuable information about the domestic market. The report unsurprisingly found TNZ to be a world leader in destination marketing – and that should remain its core focus. TNZ knows more about the people who choose to travel to our country than any other body or organisation. TNZ’s mandate has always specifically excluded domestic tourism, but it has a wealth of knowledge and expertise that can also help us understand the motivations of our domestic visitors. There is an opportunity to use that knowledge and insight to strengthen how tourism is managed and supported in Aotearoa. It’s important we don’t underestimate the value of the domestic market. With the flight shame movement on the rise, slower world growth, and trade wars internationally, a slowdown in international travel may be inevitable. That means there’s never been a better time to turn our focus inwards and look at the value already around us. n Sally Attfield is the chief advocate for the accommodation industry as Hotel Sector Manager at Tourism Industry Aotearoa.


OPINION

Another great year behind the Concierge desk

End–of–year preparations are always a busy time for the Les Clefs d’Or family, says Peter McBrearty, as we take stock on the year that was, celebrate the best in our industry and eagerly await 2020.

AS 2019 GRADUALLY draws to a close, evident when his adult son James took the cruise ship and festive seasons, along the stage to accept the award on Mark’s with a variety of major events including behalf, as James worked under his father Melbourne’s Spring Racing season and at the Sofitel Wentworth before moving to impending Australian Open are ensuring the Concierge Desk at the Sofitel Darling that all of our members and their Concierge Harbour. While it may be a little early to teams around Australia are fully engaged tell just yet – a Peyton Concierge dynasty with looking after our guests, both those may not be entirely out of the question! already in house and the many seeking our Meanwhile, with Mark’s recent move assistance prior to their arrival. to part time employment (reputedly to On top of this, Les Clefs d’Or has allow him to spend a little more time managed to stage major events in many kayaking on Sydney Harbour), the Sofitel states, including the Sydney, Brisbane Wentworth has welcomed a new Les Clefs and Melbourne Concierge Balls. We were d’Or member in Ms Tatiana Balan, who especially proud of the fact that each raised has transferred from Les Clefs d’Or Russia. thousands of dollars for our charities – St This month, our members in Perth will Anthony’s Family Care in Sydney, the stage the inaugural Western Australian James Peyton (second from left) accepting the 2019 Les White Cloud Foundation in Brisbane and Tourism Expo at Pan Pacific Perth, and Clefs d’Or Australia Concierge Hall of Fame Award on Bayley House in Melbourne. In each state, our Adelaide Members are also now well behalf of his father, Mr Mark Peyton. Also pictured are awards were presented to a number of our Dean McWhinney, The Grace Hotel; Roz Jackson, Captain advanced with plans for our first South industry associates, among which were our Cook Cruises and Colin Toomey, Shangri–La Sydney. Australian Tourism Expo, both directed at rising stars of the Concierge desks. bringing together Concierge and associated Further, there wasn’t a single person there unhappy to witness the front–of–house hotel staff with local providers of tourism services. These induction of Mark Peyton – long–time Sofitel Wentworth Sydney Chief events are both indicative of a conscious strategy to further develop our Concierge – into the Les Clefs d’Or Australia Hall of Fame. Mark has relationships with our state tourism bodies and the various companies graced the desk of the Sofitel Wentworth for over 40 years and at one we deal with on a regular basis to foster a free flow of useful information point actually oversaw the legendary Tony Facciolo (who went on to and to better educate those responsible for ensuring their guests derive as become the first President of Les Clefs d’Or Australia and Australia’s much enjoyment as possible from their time at their respective properties. first president of UICH Les Clefs d’Or worldwide). A genuine icon of the We are already looking forward to further educational functions and Concierge profession and something of a legend himself amongst not workshops in 2020, but for now we would like to wish all of our friends only his Concierge brethren but also his guests. His unique combination and associates in the hotel industry all the very best for the busy festive of irreverent humour and devotion to his guests’ needs has made season and our anticipation at working together again in the New Year! n Mark one of the most popular identities on the Sydney hospitality Peter McBrearty is a former President of Les Clefs d’Or Australia and tourism stage. The length of Mark’s Concierge service was made and Chief Concierge at The Langham, Melbourne. hotelmanagement.com.au 27


HM x CHOICE HOTELS ASIA–PAC PROMOTION

The Choice Hotels Asia–Pac senior management team – Director of Distribution and Revenue Management, Anthony Stanley; General Manager Marketing, Kari Hunter and Chief Executive Officer, Trent Fraser


COVER STORY

Choice’s C

The Choice Hotels Asia–Pac team is celebrating a year of extraordinary growth, market expansion and digital transformation.

direct approach pays off

hoice Hotels Asia–Pac – one of the largest hotel franchise groups in the world – is celebrating a strong year of growth, with further success predicted as it expands its presence throughout Asia in 2020. In 2019, Choice Hotels Asia–Pac has continued to go from strength– to–strength, with corporate room bookings up 10% year–on–year. These and other strong results have been attributed in no small part to the company’s determined focus on driving more direct business to hotels through its Choice Privileges loyalty program – which has exceeded 400,000 members locally. “Choice Privileges – a global loyalty program with more than 40

Adding to the mix, 2019 has seen Choice Hotels deliver an enhanced digital experience for its customers. The business has launched a new responsive website which streamlines the customer journey and enhances the booking process, increasing the visual display of individual hotel properties to more adequately highlight their features. Usage in the hotel group’s mobile app grew 66% year–on–year in terms of bookings in 2019, clearly showcasing the need for continued digital innovation to serve guests and facilitate direct online delivery to properties. “The launch of the website is part of our continued investment in digital technology which will directly impact the experience our

million members – has seen the addition of more than 25,000 new customers have in booking and engaging with our suite of hotels online,” members locally in 2019,” said Choice Hotels Asia–Pac Chief Executive Hunter said. Officer, Trent Fraser. “Choice Hotels Asia–Pac is also investing in the inspirational and As part of offering franchisees a supportive, collaborative and planning phase our customers go through when researching and innovative franchise model, the tailored Revenue Management program booking travel through our Need A Break website, which has seen a offered by Choice is guided by an experienced Revenue Manager. The 120% increase in referrals to the main website.” RM is tasked with helping franchisees grow their room revenue by The company has expanded its responsibilities to work closely with maximising hotel occupancy based on daily reviews of each property’s Choice Partner and Area Representatives in three additional regions – rates and ensuring each hotel is adapting to its unique market conditions Japan, India and China – creating a more diverse regional Asia–Pacific and competitor trends. hub for the international hotel group. “Close to a quarter of our portfolio CEO Trent Fraser attributed of franchisees are enrolled in the the Asian expansion to a broader Choice Hotels’ Revenue Management business strategy, with Choice Hotels program. We are proud to say, two Asia–Pac playing a key role in growing years into the program, participating the wider company’s international Trent Fraser – Choice Hotels Asia–Pac CEO properties have reaped benefits with footprint across its three key an average eight per cent increase territories – Europe, Middle East in their top–line revenue over non– and Africa (EMEA), Latin America revenue managed properties,” he added. (LATAM) and Asia Pacific (APAC). This follows the announcement of a “With generally soft conditions in the market this year, it’s terrific management agreement with South East–Asia–based Krest Hospitality, to see properties bucking the trend and experiencing growth. This time which is set to open a Quality–branded property in the Thailand holiday next year, we hope to double the numbers, with more than half the region of Phuket in 2020, with additional properties to follow. portfolio participating in the specialised program.” “We have always had a strong footprint in Australia and New Zealand. The last 12 months has seen many new additions to Choice Hotels However, with the additional markets in the region now coming under Asia–Pac’s portfolio of properties as well as the rollout of its new the Asia–Pac banner, our portfolio now offers more than 300 properties Comfort hotels branding, injecting a contemporary mark on the largest in Asia–Pac. We see a lot of great opportunity in the broader APAC brand in the Choice Hotels portfolio, which also includes the Ascend market and are looking forward to working with owners across the Hotel Collection, Clarion, Quality and Econo Lodge. region,” said Fraser. “We are thrilled to report that we’ve had the best development year in Celebrating and rounding out a huge year of success, Choice Hotels five years,” Fraser said. Asia–Pac’s biennial conference will be held in Melbourne at the end “In 2019, we expanded our portfolio by adding 20 properties, expanding of February 2020, where the group will welcome approximately 300 the group by over 1,000 rooms. We’re particularly proud of the growth franchisees, suppliers and partners. Hosted by Australian television in our Ascend Hotel Collection brand, which you can now find in every personality, Shelley Craft, the theme of the two–day conference is mainland capital city across Australia,” he added. ‘Empower to Exceed’. Delegates will take part in a range of workshops Choice Hotels Asia–Pac’s General Manager – Marketing, Kari Hunter, and hear from keynote speakers including Australian business mogul added: “We are extremely excited to be halfway through the largest Janine Allis, culminating in Choice’s Hotel of the Year Awards, which rebrand to date for the Comfort hotels portfolio, with Choice Hotels will take place at The Avery rooftop at Crown Entertainment Complex. contributing a significant investment of $300,000 in assisting property If you would like any information on joining the Choice Hotels Asia– owners with the rebrand.” Pac network, please visit JoinChoiceHotels.com.au. n

“We see great opportunity in the broader APAC market”

hotelmanagement.com.au 29


PRESENTS

NSW update to AAoA Members The AAoA National Board and NSW Advisory Board recently met with key state leaders, urging collaboration at all levels of government representation.

THIS YEAR HAS proven to be a year of significant challenges. Many of you are seeing a softening of market performance at a time when we have seen a significant growth in investment in accommodation. At the same time, the NSW state government announced a decrease of $35 million in the 2019/20 Destination NSW budget. The Accommodation Association National Board and the NSW Advisory Board has been active in highlighting the market conditions and the need to proactively liaise with government. Together with other industry players, we met with the Premier’s Office to raise our concerns and to build upon the relationship between the NSW Government and Industry, which has delivered record growth in overnight visitor expenditure of 85% since 2011. This resulted in the inaugural meeting recently with the Premier, Deputy Premier, Treasurer and Tourism Minister and industry leaders across a range of different tourism sectors. Simon McGrath, Deputy Chair AAoA Board, and Pat Lonergan, Chair, AAoA NSW Advisory Board and the Association were represented at the meeting. These leaders raised the need to work collaboratively to ensure an all of government approach to the sector. Key points raised included: • The need to understand how critical sustained destination marketing funding is to the long– term investment pipeline into Sydney and regional NSW and the importance of promoting as a global tourism destination. • The impact of a significantly lower cash allocation to Destination NSW and how this will flow through to less regional promotion and attraction of major and business events. • The desire of the industry for a consistent long–term model to work with the Government via the establishment of a permanent Tourism Working Group and a whole–of–government approach to cover the future infrastructure needs of the industry in both urban and regional locations. • The need for an overhaul of the planning system specifically as it responds to visitor economy projects. • Key infrastructure such as KSA and the operating restrictions in this space and the urgent need to resolve the matter of a new cruise ship terminal in Sydney. We welcomed the proactive engagement by the government and will continue to keep you updated on our advocacy efforts to increase the level of government support for our sector.

Accor Chief Operating Officer, Pacific, Simon McGrath

30 HM The Business of Accommodation

Doma Group Director of Hotels, Patrick Lonergan

National Policy reinforced during week in Canberra In late–October, the AAoA spent a productive week in Canberra, coinciding with the American Express Shop Small Parliamentary Showcase.

ACROSS A WEEK full of meetings, both Dean Long and Carol Giuseppi met with Ministers and Advisors across a range of portfolios to discuss current priorities for tourism accommodation. Meetings were held with the office of the Minister for Employment, Skills, Small and Family Business on the implications of the franchising inquiry for the accommodation sector and on the significant labour and skills shortages. We reinforced that, with the significant growth in supply across Australia, the industry does not have sufficient skilled employees at the middle management level. This is exacerbated by the lack of pathways for the international graduates of our hotel schools. Discussions were held with Austrade, the Minister for Tourism, Shadow Minister for Tourism and their staff, covering matters such as Beyond 2020, Working Holiday Maker Visas, the importance of the visa benchmarking study and the current performance of the market. We reinforced the importance of investment in regional Australia and the role that the Accommodation Monitor provides in providing supporting data. We met with the Shadow Assistant Minister for Treasury, previously Shadow Minister for Competition and Productivity prior to the 2019 Election – Dr Andrew Leigh – to thank him for his support on the online rate parity issue, in which the Association was instrumental in achieving changes. While in Canberra, we met with the ACCC to reinforce that more needed to be done to ensure the industry is not penalised for offering their customers the best possible deal.


KEY NEWS

National Advisory Board for Employment meets with Minister Cash

Matters of skills and employment were on the cards recently as the AAoA National Employment Board met with Minister for Employment, Michaelia Cash.

ON FRIDAY 13 October, the Accommodation Association of Australia National Employment Board Chair David Mansfield, CEO Dean Long and Director Troy Schufft had a highly positive discussion with Federal Employment Minister, Michaelia Cash, about the 50 young Australians no longer on unemployment benefits due to the work of our Academy team in the last 60 days. These job seekers have started their career journey within our sector and we will be sharing some of these success stories over the coming weeks. The Association is committed to PaTH Internships as it allows employers and youth job seekers to connect.

L–R Dean Long, AAoA; Troy Schufft, AAoA; Minister Michaelia Cash and David Mansfield, Quest Apartment Hotels

Skyportz Director Clem Newton Brown addresses AAoA members in Melbourne

Queensl p Air and

1ST OCTOBER: BREAKFAST WITH CHRIS MILLS GOLD COAST – HOSTED BY MANTRA LEGENDS, QLD

sin es s le ade rs

Events Roundup t or

sC u This breakfast was held on a fantastic morning at Mantra EO lb ca o C l Legends on the Gold Coast with Queensland Airports hris g Mills addressin Limited CEO Chris Mills. Our members received an update on the expansion plans for the Airport and the importance of investment by government in infrastructure such as light and heavy rail.

10TH OCTOBER: FUTURE MELBOURNE FORUM – HOSTED BY WILLIAM ANGLISS INSTITUTE, VIC

The Accommodation Association of Australia held a fantastic event with over 100 members and industry leaders discussing the future of transport with Clem Newton– Brown OAM, Food and Wine with Natalie O’Brien AM and market performance with Damien Little at the William Angliss Institute. We also heard from CEO Dean Long on the work of the Association in fighting for government action to regulate those operating unregulated accommodation.

24TH OCTOBER: HOBART & TAS ACCOMMODATION MARKET UPDATE – HOSTED BY RACV HOTEL, HOBART

The Accommodation Association of Australia held its final Accommodation and Destination Market Update for 2019 in Hobart this past October. We would like to thank each presenter for such an informative event: Tourism Tasmania, Kristy Carstairs (Tourism Australia), Simon Williams (Travel Click) and Dean Long (AAoA).

Adele Labine–Romain from Deloitte Access Economics was a recent guest speaker at one of AAoA’s seminars.

hotelmanagement.com.au 31


HM x ACCOR PROMOTION

Apartment brand Sebel offers expansive and self–contained living areas

New ground for

Victoria’s prominent ‘Brady’ family of Amber Property Group is entering the hotel scene for the first time and one thing is clear, the group doesn’t do anything by halves. In this exclusive interview, HM sits down with Amber Property Group Directors, Jevan Clay and Rachael Brady.

I

n partnership with Australia’s largest hotel operator, Accor, Victoria’s high–profile ‘Brady’ family is embarking on not just one, but two new–build hotels in The Sebel Melbourne Ringwood and Peppers Melbourne Richmond. The two new–builds, one in Ringwood in Melbourne’s east and the other in Richmond’s historic Bridge Street are scheduled to open in 2021/2022, respectively.

Congratulations for embarking on the exciting world of hotels! Amber Property Group has made a considerable investment in the Melbourne hotel sector with the recent announcement of Peppers Richmond and The Sebel Ringwood. What interested you in investing in the Melbourne market initially?

With both sites we looked for opportunities in suburbs that had large external market drivers. For instance, the Bridge Road, Richmond site 32 HM The Business of Accommodation

is only a few hundred metres from the Epworth Hospital which has just finished a substantial $1.3 billion upgrade. This upgrade includes Victoria’s second largest emergency ward and a new oncology services ward which attracts patients and their families from all over the state. Peppers Melbourne Richmond will also act as a great auxiliary service to the hospital, with limited hotel infrastructure in the existing area. It’s one kilometre from the Melbourne Cricket Ground and will service patrons attending the Boxing Day Test, AFL games, State of Origin and other big–name events. Ringwood is a key suburb in the Victorian state government’s strategic growth corridor which has a strong mandate for major business centre developments. Ringwood is also the gateway to Victoria’s premier food and wine destination, the Yarra Valley, which sees over 6.6 million local and international visitors to the region annually. Located 23kms east of Melbourne’s CBD, Ringwood is a leafy suburban area currently transitioning into a decentralised business hub. With the Victorian Government focused on assisting business outside of the CBD, Ringwood has been identified as a growing Melbourne pocket which will benefit from major arterial roads and rail connections and as a gateway to the Yarra.

You appear to be drawn to investing in mid–scale hotels. Why is Amber Property Group’s emphasis on these sectors, over luxury? Amber has traditionally been a development company with its own highly experienced construction division. We specialise in luxury


ACCOR NEWS

“We currently have plans to expand into regional Victoria, including two sites which we have secured in Bendigo and Geelong.” Jevan Clay and Rachael Brady, Amber Property Group apartments and felt that midscale hotels was a natural fit for our business. The 103–room Sebel Ringwood will set the new standard for the brand and a significant amount of time and effort has gone into making sure we deliver the highest quality project for our customers. We have taken a similar approach to the Peppers in Richmond. Given many of our future customers will be patients of the hospital along with their families, we wanted to create a sanctuary and a place people can escape and feel at peace with a touch of luxury in everything from the restaurants to the rooms.

How did you decide on The Sebel and Peppers as your first hotel brands?

Amber invested significant time and money in detailed market research conducted by Damien Little at AHS. After a careful review, we took the time to work with Brett Forer and his team at Accor to decide on the best possible brand for each location.

With your family’s background in car dealerships and global restaurant chains, what strengths and experience will you bring to the hotel game once the hotels open?

The fundamentals are much the same. Provide a quality product, exceptional service and a wonderful experience for the customer. It’s a basic recipe that translates from any customer–interfaced business. Together, both hotels will create approximately 150 local jobs and stimulate economic growth in both Ringwood and Richmond. Amber Property Group is looking forward to seeing both hotels and their teams interact with the local community and we can’t wait to open.

Do you have plans to expand your hotel footprint outside of Victoria?

We currently have plans to expand into regional Victoria, including two sites which we have secured in Bendigo and Geelong. Our ultimate goal would be to own more than six hotel sites, so we will continue to work on securing other A–grade sites.

How did you develop your partnership with Accor?

From the first day we started working with Brett Forer and Danesh Bamji at Accor, we felt an instant connection and alignment in values. The whole process has been professional and relaxed. The Accor team are never more than a phone call away and run an amazing business. Accor has guest obsession at the very heart of its business model, and Amber Property Group understands that the key to business success comes down to acute attention to detail and creating long lasting memorable experiences, which resonates with mond both our businesses. n Rich ers p p Pe The team from Amber Property Group. From left is Stephen Keen, Senior Project Manager; Len Simpson, Construction Manager; Rachael Brady, Director; Jevan Clay, Director; Richard Greco, Development Manager and Anna Galluzzo, Senior Project Manager

The lobby at the future Sebel Ringwood

hotelmanagement.com.au 33


PRESENTS

L–R Richard Doyle, Staywell Holdings; Graham Perry, BWH Hotel Group; David Seargeant, TAA Board Member; Stephen Ferguson, AHA; Bradley Woods, AHA; Martin Ferguson, TAA; Phillipa Harrison, Tourism Australia; Michael Johnson, TAA; Joyce DiMascio, Exhibition & Event Association of Australasia; Sean Hunt, Marriott International; Robert Dawson, Hyatt Hotels and Resorts and Adele Lausberg, TAA.

TAA National Board meets Tourism Australia Tourism Australia Managing Director, Phillipa Harrison, recently met with the TAA Board to discuss a number of industry issues.

SKILLS SHORTAGES, ENERGY efficiency measures and short–term letting regulations were all on the agenda when the national board of Tourism Accommodation Australia met in Sydney recently. TAA CEO Michael Johnson said the meeting followed a special dinner at the Sydney Harbour Marriott, when the national board met with the new managing director of Tourism Australia, Phillipa Harrison. “It was great to be able to break bread with Phillipa, congratulate her on her new role and brief her on the issues of concern to our members,” Mr Johnson said.

“It’s obviously a busy time for Tourism Australia with the recent launch of the ‘Philausophy’ campaign and we appreciate her taking the time.” Mr Johnson said the focus of the recent TAA National Board meeting was building on the successes of the past year and pushing harder on issues of concern to members. “Of particular concern was the ongoing skills shortage – especially the need for qualified chefs,” he said. “Several board members raised this issue, with one describing the situation in some areas as ‘diabolical’. “TAA will be fighting hard in coming months at the Federal level on this front – especially with thousands more hotel rooms to come online in cities including Sydney and Melbourne in the coming year – which will only make the situation more acute.” He said other issues raised at the meeting included short–term letting. “We are finally seeing some movement on the regulatory front in states like Tasmania and Western Australia after concerted lobbying by TAA,” Mr Johnson said. “At the national level the ATO has also made a move. We will continue to fight for a level playing field when it comes to ‘quasi hotels’ springing up in our cities without any regulation.”

Regional concerns for TAA TAA talks tourism with Member for Mackellar, Jason Falinski and NSW Deputy Premier, John Barilaro.

TAA CEO Michael Johnson; Member for Mackellar, Jason Falinski and NSW Deputy Premier, John Barilaro.

34 HM The Business of Accommodation

TAA CEO Michael Johnson recently met with Federal Member for MacKellar, Jason Falinski MP – who represents Sydney’s Northern Beaches – and NSW Deputy Premier John Barilaro at a special function in Sydney. The Deputy Premier gave some very good insight into the current drought and bushfire situation, stressing its effects on regional NSW and across all businesses and farming sectors. Mr Johnson took the chance to raise concerns on the State Budget’s tourism cuts earlier this year, particularly its effects on regional tourism dispersal.


Scott Leach, AHA President; Anthony Albanese, Federal Opposition Leader and Michael Johnson, TAA CEO

WORLD OF TAA

TAA hits the beaches

General Managers in the ‘Gong’ joined their local MP for lunch following the launch of the region’s new tourism campaign

TAA CEO presses the flesh Michael Johnson meets with the nation’s most powerful politicians TOURISM ACCOMMODATION AUSTRALIA CEO, Michael Johnson, was able to catch up with some of the nation’s most senior politicians at the AHA National Board luncheon in Melbourne during Cup Week. More than 30 politicians from across the political spectrum joined industry representatives, sponsors and media at the marquee luncheon in the Botanic Gardens. Sponsored by Treasury Wine Estates, the event has

WOLLONGONG WAS A focal point for TAA NSW earlier this month when we hosted local general managers at a luncheon with Member for Wollongong, Paul Scully, City of Wollongong GM, Greg Doyle and GM of Destination Wollongong, Mark Sleigh at the Novotel Wollongong North Beach. The regional city’s strategic vision was a key point of discussion following the launch of the “Wollongong Press Play” campaign, as well as Council’s tourism focus for the coming years. Regional centres like Wollongong are a vital part of our push to bring more investors and operators to the table to deal with the forecast shortage of accommodation in Wollongong. L–R Paul Scully MP, Member for Wollongong; Michael Johnson, CEO TAA and Mark Sleigh, Destination Wollongong

become a fixture on the Race Week calendar. “It was great to see so many political leaders take time to come along and learn more about our industry,” Mr Johnson said. “It was particularly pleasing to see the Acting Prime Minister, Michael McCormack, and Opposition Leader, Anthony Albanese, and take the chance to raise tourism and accommodation issues with them.” Other political leaders at the event included Foreign Minister Marise Payne; National Party Deputy, Bridget McKenzie; Victorian Premier, Daniel Andrews and NSW Minister for Jobs, Investment and Tourism, Stuart Ayres.

hn

rin gt

General Managers and Human Resource Managers met in Sydney TA to hear how they can best integrate the n A r, I wit platform into their hotel culture strategies. me l hA a drian nP Rhodes and Ia “With more than 10,000 accommodation rooms in the pipeline for Sydney alone we must work together as an industry to fill the skills gap that we currently face,” Mr Johnson said. “We encourage our members to take full advantage of this unique opportunity to not only inspire the next generation but also profile your property, Heads of Departments and your enthusiastic team members who are natural advocates for our growth industry.” For more information about the initiative, st please contact taa@tourismaccommodation.com.au er, hM Mi wit chae l McCormack

he

o el J

hnson

l Jo

in M me

i

ich ae

Deputy Pri

, TAA

sp i

n, so

TOURISM ACCOMMODATION AUSTRALIA CEO Michael Johnson met with Deputy Prime Minister Michael McCormack recently on the sidelines of the insightful ‘Australian Makers’ Series. The event was hosted by the Australian Chamber of Commerce and Industry in collaboration with Australian Made Campaign Limited. Mr Johnson said he spoke to the Deputy PM about a range of accommodation issues including the chronic skills shortage, particularly in regional areas. The same week saw TAA NSW partner with ‘Inspiring the Future Australia’ (IFA) in an effort to help plug the skills gap. IFA offers a digital platform which connects volunteers and teachers, with industry members then able to engage and inspire school–aged students with their own hotel career journey stories.

L–R Micha

TAA is aiming to inspire the next generation to take up rewarding careers in hospitality

Futu re Australia

TAA meets with ‘MickMack’

hotelmanagement.com.au 35


HM Q&A | LEADERSHIP

Ovolo Group Founder and CEO, Girish Jhunjhnuwala

Your expansion in Australia has been rapid. Why did you choose Australia as your first overseas hotel? And are you happy with the pace of that growth?

F

rom the outset, our model resonated well with the Australian market. In fact, 24% of our guests in Hong Kong were Australian – so the decision to expand to Australia came fairly organically. So far, I am very happy with the pace of our growth in Australia. We launched our first Australian hotel in 2013 (Ovolo Laneways in Melbourne) and since then we have opened six more across Sydney, Brisbane, Melbourne and Canberra. This year, Ovolo Woolloomooloo was also voted the #1 hotel in Australia according to TripAdvisor, which was a huge accomplishment for us and reflective of the success of our model in the Australian market.

What was the biggest challenge when launching in Australia?

Overall, our launch into Australia was seamless. We had some great opportunities crop up for us and we already knew we had an established consumer base. However, it was Ovolo Woolloomooloo – the property that is now Australia’s #1 hotel – was actually our most difficult challenge. The two hotel brands that owned and operated the property before I did weren’t able to achieve much success with it, so I was advised against purchasing the property. But I loved the space and it was one of those moments where I had to act on gut feel – we went ahead and purchased the property anyway, and it’s now one of our biggest success stories.

How has the Australian market influenced your vision for Ovolo and its expansion?

Boutique OVOLO HOTELS IS CONTINUING ITS GROWTH ACROSS THE REGION AND THE LATEST DEAL IN BALI IS A SIGN OF MORE THINGS TO COME, FOUNDER AND CEO, GIRISH JHUNJHNUWALA TELLS JAMES WILKINSON ON THE SIDELINES OF HICAP 2019 IN HONG KONG.

36 HM The Business of Accommodation

While I didn’t necessarily design our business model for the Australian market, our success with Aussies and the way our model resonates in the market has definitely influenced our expansion plans – both our expansion in Australia and overseas. Along with our expansion into Australia, our future growth plans have also been influenced by the markets where Australians are likely to travel. We have just announced the launch of our Bali acquisition which is of course one of the most popular tourism destinations for Australians, and we are also looking further afield to other key markets around Southeast Asia and beyond – including Los Angeles and London.

Do you have plans for further expansion within Australia?

Yes, we have imminent plans to expand our footprint in Melbourne with two more properties set to open in the city. We would also like to open a Perth property at some stage.

What are your future international plans for Ovolo?

As mentioned, I am pleased to announce that we have purchased our first property in Bali. This is an exciting time for us and we are dedicating all our time and efforts into ensuring the launch of this property is a success. Bali


HM Q&A | LEADERSHIP

will be a key market for us going forward and we plan on having a significant presence over there. From there, we are looking into further global expansion. London and LA are two key markets where we are hoping to establish a presence, and I would also love to see Ovolo in India.

What are the key aspects of your business which have made it a success among Australian travellers?

Well, it might have something to do with the free minibar! All jokes aside, I think the Australian market responds well to our effortless living philosophy as well as the friendly, familiar level of service we provide. Aussies love to do things differently, they appreciate a brand having personality and having a little bit of fun, and I think that’s why we’ve had so much success with this market.

How has the Australian market responded to your F&B offerings?

We’ve seen an extremely positive response to our F&B in Australia. Alibi, our restaurant at Ovolo Woolloomooloo, is focused on vegan and plant–based food. Sydney locals tend to be very health conscious and open to trying different food styles, so the concept has resonated well. Likewise, ZA ZA TA in Brisbane is inspired by Middle– Eastern flavours and the launch of this has gone down very well. Australia is very culturally diverse so they appreciate different food trends and flavours, as long as they are authentic and executed well.

From an owner–operator perspective, how important is having a top–notch F&B offering in your hotels?

F&B has always been extremely important and a big passion of mine. Every F&B outlet we open needs to be able to stand up in its own right, and not just be a ‘hotel restaurant’ – it needs to be a place where travellers and locals alike enjoy spending their lunch hours or evenings. Like our hotels, our F&B offerings are a bit different and we like to push the boundaries, give them their own personalities, and have fun with it.

Which hotel is the best performing/are you most proud of?

our day–to–day business has the aim to make our guest’s lives as effortless as possible, whether that’s having enough people on our front desk so you don’t have to wait to check–in or having enough plug points in our room so you can plug in your phone Ovolo Hotels Founder and CEO, next to your bed without having to unplug a lamp. Girish Jhunjhnuwala We go above and beyond for our guests and treat them as real people, not just a dollar sign on a spreadsheet – we encourage our staff to be familiar with our guests while still keeping up a world–class level of customer service. Our guests recognise and appreciate this level of service and the human connection they form with our staff.

“We would like to open a Perth property at some stage.”

What do you see as the biggest difference in the hospitality industry in Australia compared with other parts of the world?

Australia is much more people–focused than other parts of the world. Our Australian guests are happy for us to be familiar and treat them like our friends, while still providing high levels of service. I think the market here is much more receptive to brands having a personality, having a tone of voice and doing things differently – they don’t need everyone to take a cookie–cutter approach, and that’s part of the reason we’ve seen so much success here.

How is Ovolo performing in comparison to the Australia markets in general?

We tend to fare quite well compared to our peers. As a group, we have something unique to offer and we don’t follow the traditional business model, so we have a point of difference that allows us to maintain a steady customer base. Of course, we fluctuate with the market, but as a company with a unique selling point we tend to be able to weather any market downturns relatively well. n

Alibi at Ovolo Woolloomooloo is Australia’s first in–hotel vegan restaurant

02 in 2

e op o elb t k ourne is on trac

n

ut hM

So

Our focus on effortless living. We are a people– focused business, and every decision we make in

olo Ov

What is the thing that sets you apart from other boutique hotels in Australia?

0.

Of course, I’m proud of all of our properties and they all have something special and unique to them. But I have to say, Ovolo Central in Hong Kong has a special place in my heart – it was the first property I purchased, and it’s also located on the street I grew up on. Of course, Ovolo Woolloomooloo is another – as I mentioned, it was a difficult one to acquire in the first place and on paper it didn’t look like a great investment, but we were able to turn it around and make it the number one hotel in Australia.

hotelmanagement.com.au 37


F&B SPECIAL

Serving up INNOVATION IS RIFE IN HOTEL FOOD AND BEVERAGE AS HOTELS JOSTLE FOR THE CASUAL DINING CROWD THROUGH NEW RESTAURANT CONCEPTS, AND DINERS ARE BRINGING THEIR APPETITES TO THE TABLE. MATT LENNON CHECKS OUT WHAT IS ON THE INDUSTRY'S PLATE FOR 2020.

38 HM The Business of Accommodation


Salmon makes for a delicious spring setting

W oo d

Ro aste d Ma rth rron at Santini, QT Pe

hotelmanagement.com.au 39


F&B SPECIAL

A number of tasty craft beer blends are made on–site.

Brewpubs Hotel industry veteran Ian Wilson has opened the doors to Republic Tavern at the new Mantra Epping hotel in Melbourne’s north. Republic Tavern is a stylish dining and drinking offering in a thriving part of the city for business travellers, thanks to its proximity to the headquarters of major corporations and also Tullamarine Airport. The brewpub is one of the best designed Australia has seen and features both unique blends made onsite and also some of the finest from around the state in a brilliant display of both hyper–local and locally–sourced produce. Locally–sourced is also a key when it comes to the wine list – with several of Victoria’s best reds and whites making the grade – and also right across the food menu, which includes local meats, seafood and vegetables. Highlights of the menu include popcorn prawns; Buffalo chicken bao; brined roast chicken, chicken gravy, fries and salad; the ‘meat republic plate of half a rotisserie chicken, 300g marinated rump steak, kransky, slaw, IPA pickles, kewpie and toast; Parmesan crumbed chicken parma; and on the dessert front, a range of freshly made sundaes including the ‘Beer–amel’ made up of soft serve, caramel popcorn, salted caramel sauce and beer toffees.

Th e

st y

lish e

a te r

y is clos

e Ai e to Melbourn

rt rpo

Plant–based to taste At first glance, there’s nothing to discern the fare available in almost any high–quality pub, bar, brewery or tavern in Australia with what you’ll find at Alibi, centrally nestled on the ground floor at Ovolo Woolloomooloo in Sydney's eastern–fringe. Even after tasting, the differences will not be evident until you read the menu and realise everything is 100% plant–based. Australia’s first hotel bar and restaurant dedicated to the vegan cuisine features a menu designed collaboratively by American plant–based chef and restauranteur Matthew Kenney and Ovolo Woolloomooloo Head Chef, Jordan Brogan.

In many cases, the simplest alternative has been identified and leaves the diner with a product that looks and tastes like the traditional dish but backed by the knowledge no animal product whatsoever features within it. For example, the Kimchi Fried Rice includes Korean chilli paste instead of shrimp paste, while on the dessert menu, the Acai Panna Cotta features almonds, cashews and almond milk. Once you try the coconut flesh, almond milk, cashews, mint, spinach and agave nectar in place of regular ice–cream, you’ll wonder how you could ever tell the difference. 40 HM The Business of Accommodation


F&B SPECIAL

yd ne y

Grab and Go

De lic io

us

sea fo

od is a m

eL t Th a s g ong the offerin

a

,S am h ng

Fine dining, buffet style Traditionally, a fine dining experience couples itself with a wait of some sort as restaurants prepare your meal to order and ensure the quality of your evening with comparable service. Kitchens on Kent at The Langham, Sydney has been devised to combine the casual nature of a buffet with a fine dining feel. Featuring eight separate live–cooking show kitchens, chefs take requests and prepare orders in front of your eyes. Kitchens are divided up by cuisine, with dedicated stations specialising in gourmet pizzas, Japanese sushi and sashimi, an Indian Tandoor oven, charcoal Robata grill, pasta kitchen, carvery and charcuterie table, a multitude of vegetarian and vegan options and the ever–popular dessert station complete with several chocolate fountains. An experience suitable for families, children are also able to take part in scheduled pizza making and cupcake decorating classes – a great school holiday or weekend activity.

Everybody is busy these days and not everyone with a day of meetings ahead will have time to sit down for a table service breakfast. Hotels know this and as such, the ‘Grab & Go’ buffet concept is spreading wildly across the industry with some hotel chains even designing new brands around the idea. Far beyond simple dry cereals and muffins, these stations offer increasingly healthy, compact, easy to heat and easy to eat ready–meals featuring grains, poached egg, oatmeal, potato, protein, fruits (both dried and fresh), yoghurt, berries, syrups and much more. Menu items can cater to special diets including paleo, vegan and more and often come in handy carry cases and with all the extras needed to enjoy a tasty meal while you’re hailing a taxi or on the move to start your day. For the extended stay properties, these buffets often include dinner items guests can heat up or cook in their rooms to avoid eating out every night.

Don’t have time for breakfast? Healthy options are available as you run out the door

Two years of work went into the development of Lyre’s non–alcoholic cocktails

Non–alcoholic spirits If you didn’t know any better, the casual cocktail drinker could think they were enjoying all the flavours of a regular spirit in Lyre’s carefully curated range of non–alcoholic spirits. Drawing on flavours such as lime, jasmine, juniper, orange blossom, pepperberry and mint, Lyre’s has managed to replicate the essence of a London Dry Gin without any sugar or alcohol. And while it may seem like an oxymoron, according to company founder, Mark Livings, drinkers have been crying out for non–alcoholic versions of their favourite spirits for years but only recently has the technology been available. Alongside the Dry London Gin, flavours in the Lyre’s range include Amaretti, Spiced Cane Spirit, Aperitif Dry, Italian Orange and even the mysterious Absinthe – long the competitive nemesis of many a free–spirited European backpacker. It isn’t quite a mocktail but expect to see non– alcoholic alternatives or your favourite spirits adorn the walls of hotel bars moving into 2020.

hotelmanagement.com.au 41


F&B SPECIAL

Rescue rangers

An army of volunteers help make the OzHarvest story happen.

In the last 15 years, more than 41,000 tonnes of surplus edible food not even a day past the use–by dates of hotels, restaurants, supermarkets, corporate kitchens and more around Australia have been saved from ending up in landfill thanks to organisations such as OzHarvest and its army of loyal volunteers. In the last year alone, nearly 28 million individual meals have been delivered to charities in those unmistakable, bright yellow and black vans and trucks. This fleet of 57 vehicles nationwide has sent more than nine million kilograms of perfectly good and nutritious food to 1,300 charities to distribute amongst the hungry and less fortunate. In 2019, the organisation has introduced a smartphone app which aims to connect willing food donors with charities in areas not able to be serviced by the yellow vans. As OzHarvest says – ‘Fill Bellies, Not Bins’.

Sparkling on tap Most hotels these days provide plentiful access to bottled water in–rooms, but a growing number are also opting to install taps or dispensers offering unlimited access to sparkling water. The Australian hotel industry was all over the Vivreau ViTap once introduced by Brita a few years back, however only really utilised it from a banquet or bar service perspective. In the US and several other markets, application of sparkling water taps has been expanded to a floor–by–floor basis, offering guests access to freshly carbonated and still water for their own water bottles only a few steps from their rooms. The dispenser tap features a removable nozzle to improve hygiene and once installed to mains water, can be plumbed to self–flush waste from the drip tray underneath. The filtration technology also reduces levels of limescale, copper and lead which can be found in some drinking fountain water taps, not to mention bipsphenol A (BPA) in many single–use plastic bottles.

A perfect coffee can be made in under 70 seconds by the Vertuo method.

Coffee your way As boutique hotels take a greater share of the limelight, creature comforts such as Nespresso machines in–room are being rolled out across a wider variety of properties

as a small gesture which can deliver benefits among coffee–loving clientele. Nespresso pods are now the accepted global currency in DIY gourmet coffee; however Nespresso recently upped the ante with the launch of its Vertuo machine. Based on research from Nespresso which showed nearly half of Australians prefer to drink their coffee in containers of 230ml or higher and nearly 90% of drinkers

AB

rita filt

er ens ered water disp

42 HM The Business of Accommodation

preferring milk in their coffee, the Nespresso Vertuo machine has been designed to cater to a variety of mug sizes. The Vertuo system utilises a centrifusion and barcode reading process to extract the desired volume of coffee by rotating the capsule at 7,000 RPM. More than 20 different coffee types have been developed to work with the new system and it is bound to be a short time before Vertuo systems are making their way to boutique hotel rooms in major cities across Australia and New Zealand.


F&B SPECIAL

Technology with Wine Augmented reality is now in full swing across the wine industry and looks to grow further following the recent debut of the ‘Living Wine Label’ from Treasury Wine Estates. Innovation in this space began through the 19 Crimes label through an interactive smartphone app which showcased the real stories of British convicts transported to Australia and their sordid lives beneath the thin blue line. This use of augmented reality proved a boon for the brand and propelled it to enormous growth and a slew of awards. A number of other wine labels are also now investing in the technology to bring their wine labels, and stories behind them, to life. Another company investing in label technology is Taylors, from the Clare Valley, which has incorporated a temperature guide on their labels to help consumers find the right temperature in which to enjoy their wines.

s

Im m er

f some of Aus trali a’s

f ou nd in

go

s law

Chocola–tastic

o ey

o tories

ut

The Voklat chocolates range

s the f in l e s ur

Fruit and chocolate have been happily married for eons, but a growing trend among chocolatiers is the combination of plants and the delicious gooey treat. Of course, the notable exceptions are vegan–friendly chocolate which draws on milk from plant–based sources, and of course, the humble cocoa bean itself. Australian company Voklat has seized an opportunity to develop a range of milk and dark–coated treats featuring fruits and plants sourced from around the world covered in rich Belgian chocolate. The dark range is vegan–friendly, gluten and dairy free and features products such as Indonesian pandan leaves and dried Australian strawberries. Others in the range include Dark Almond and Salted Caramel, both available in dark and milk varieties.

Time for tea

Australian Native Tea has been on back–order since its launch as demand overwhelmed supply

To some, that perfect aromatic cup of tea is the closest thing to heaven one can experience while still on Earth. It’s a delicacy that has been developed and tuned in recent years as a high–end product as experiments with ingredients are performed and existing blends are tweaked as new technologies come into fashion. Modern tea blends are becoming increasingly organic and drawing on new materials and techniques to continue to innovate the product. Since the launch of Australian Native Tea a few months ago, supplies have been on back–order as demand has been unprecedented, according to company co–founder, Corinne Smith. “We were overwhelmed by how popular they’ve been and we’re really excited to partner with likeminded businesses moving forward who also see tea as a way to facilitate connection and cultural celebration.” hotelmanagement.com.au 43


F&B SPECIAL

12

From the experts

What does the industry believe to be the trends to watch going into 2020? We asked our HM Award–winning F&B Associates and Chefs to find out.

Julian Reevell

Parkroyal Darling Harbour

I see personal health as a trend for 2020. More and more we are understanding the effect different foods and preparations can have on us both physically and mentally. As customers gain knowledge of the importance of foods on physical and mental balance, we must move quickly to accommodate this.

Alexandra Russell

Crowne Plaza Hunter Valley

Local produce within Crowne Plaza Hunter Valley’s Redsalt menu, with Audrey Wilkinson wine

“Charcoal and wood– fired are back” Raphael Szurek – Sydney Harbour Marriott

Eating and drinking local produce creates a real connection between the region and the guest, as well as supporting the community. And with its abundance of amazing produce on offer, where better than the Hunter Valley to make it happen? Our wine lists showcase around 40 local wineries and our menus feature meats, oils, breads and more from many local farmers and producers. I’ve also seen a number of in–house herb and vegetable gardens popping up in hotels the past 12 months and I expect to see this continue in 2020.

Raphael Szurek

Sydney Harbour Marriott

Modern cooking techniques, like sous vide, are slowly being put aside in favour of simpler, classic modes of cooking based on and with flavours, aromas and colours. Charcoal and wood–fired cooking methods are back in the kitchens and allowing us to develop incredible additional layers of taste to a dish – the same for roasting and braising in a traditional way. Along these lines, house–made products are making their way back to the menus as well with the likes of terrines and pates, as customers are looking for authentic cuisines and tastes.

Nic Wood QT Perth

NSW Sardines – house–cured, using sourdough from a local Sydney baker, all in season

44 HM The Business of Accommodation

There are a few trends emerging in the culinary world, but one that really stands out is wood–fired cooking. It’s the oldest form of cooking and kitchens seem to be taking it back to basics and letting the flames do the talking. It can take some serious skill to master, but the fire imparts flavour that you just can’t achieve otherwise.



Franchising demand FRANCHISING REMAINS ONE OF THE MOST POPULAR DEVELOPMENT MODELS IN ASIA–PACIFIC. 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.

46 HM The Business of Accommodation


DEVELOPMENT

W

hen it comes to the largest and leading franchise companies in the world, Choice Hotels Asia–Pac – our cover company for this issue of HM – stands out for not just its number of properties, but the way it does business generally. Led by popular hotelier, CEO Trent Fraser, Choice Hotels Asia–Pac, has seen constant growth right across the region in recent years, especially in Australasia, where the group added 20 hotels this year alone – representing an addition of over 1,000 rooms. “We are thrilled to report that we’ve had the best development year in five years,” Fraser told HM. “We’re particularly proud of the growth in our Ascend Hotel Collection brand, which you can now find in every mainland capital city across Australia and New Zealand.” Choice Hotels Asia–Pac now has more than 300 hotels across the Asia Pacific region, totalling in excess of 11,000 rooms and making it the region’s largest hotel franchise group. Brands underneath the Choice Hotels banner include the Ascend Hotel Collection, Clarion, Quality, Comfort and Econo Lodge.

Led by Fraser and his Melbourne–based team, Choice Hotels Asia–Pac is a 100 per cent owned subsidiary of Choice Hotels International, a publicly listed company in the United States with more than 7,000 hotels and 570,000 rooms in more than 40 countries and territories. Choice Hotels International just posted its third quarter 2019 figures and impressively, the company continued to strengthen its presence in the higher growth and more revenue–intensive upscale, midscale and extended–stay chain scale segments. “We’re pleased to report another quarter of strong financial performance and a positive outlook for the growth of the business,” said Choice Hotels International’s President and CEO, Patrick Pacious. “We are successfully leveraging our strong customer base and growing our franchising platform to drive revenue in high–value segments.

hotelmanagement.com.au 47


Ge of fB

allo

t ti

add res

ses W e n ce yndham's global confer

“Our investments [in our brands] are benefitting the entire portfolio through new technology, increased brand recognition, and other key franchisee resources.” Those elements Pacious talks about – including investments in brand recognition and technology – are helping boost the business in many ways in Asia–Pacific, particularly when it comes to corporate bookings and loyalty. Alongside the addition of new hotels in Australasia during 2019, Choice Hotels Asia–Pac saw its share of the business sector boom, with corporate room bookings up 10% year–on–year. There was also a solid rise in the number of direct bookings through the company’s Choice Privileges loyalty program, which now has over 400,000 members locally. “Choice Privileges – a global loyalty program with more than 40 million members – has seen the addition of more than 25,000 new members locally in 2019,” Fraser told HM. On the technology front during 2019, Choice Hotels Asia–Pac launched a new responsive website which streamlines the customer journey and enhances the booking process, increasing the visual display of individual hotel properties to more adequately highlight their features. The company also revealed usage in the hotel group’s mobile app grew 66% year–on–year in terms of bookings in 2019, clearly showcasing the need for continued digital innovation to serve guests and facilitate direct online delivery to properties. More broader in Asia–Pacific, Choice’s Fraser signed a deal in July with Bangkok–based hotel management company, Krest Hospitality, as Choice Hotels Asia–Pac’s preferred management company in South East Asia. Fraser said the deal with the local hotel management company would help realise the franchise group’s growth strategy. “With extensive knowledge and a successful track record in South East Asia, Krest Hospitality is ideally placed to assist us in expanding our presence in the region,” he said. “We’re delighted to confirm the appointment of Krest Hospitality as our preferred hotel management company and look forward to a successful, ongoing relationship.” 48 HM The Business of Accommodation

nv es

ia

st Au n i

ra l

o Pr

–i

t is

ak ey p laye r

nd bra ess r p x in the Holiday Inn E

The strategic alliance will cover Singapore, Malaysia, Indonesia, Vietnam, Thailand, Philippines, Cambodia, Sri Lanka, South Korea, Maldives, Laos, Myanmar, Bangladesh and Bhutan. It was back in 1988 when the first Quest property opened in Melbourne and since then, the company has grown to become one of the leading franchisors in any industry in Australasia with more than 10,000 apartments in operation at close to 200 locations. Quest has also grown to become one of the leading hotel groups in Australasia and the drive and passion has firmly come from the company’s founder and Chairman, Paul Constantinou AM. Much of the growth for the company has been in regional areas and booming business suburbs in major cities – and it certainly has not come by chance. “We have always been on the path of trying to open between eight to ten [properties] a year,” Constantinou told HM at the company’s recent franchisee conference. “That’s based upon the demand from our corporates and where they need to stay, so it’s not as if we just want to open up businesses for the sake of it. “Some of the locations where they want to be, it’s hard to get into. Some are remote and so remote, they’re not city–based. “Generally speaking, you’ll look at the profile for the locational spread of Quest. It typically doesn’t sit in the cities so we focus more on the worker and where they’re based, so we can look in the industrial growth and the industrial trend of the market within Australia and in fact globally now. They’ve exited the city. Take a look at Sydney – you’ve got Macquarie Park, North Ryde, Campbelltown, all the way out in the west and even in the East now. “We’ve been fortunate that we picked this trend some 15–20 years ago and we’ve followed that trend of where our corporates are going as opposed to where developers want to be. “That’s why it’s been hard sometimes to find a developer because it’s probably not that exciting doing a development in Campbelltown or Bella Vista 15 or 20 years ago, but today it’s where you need to be because that’s where our customers need to be,” Constantinou said. One of the secrets to success for Quest has been choosing the right franchisees to partner with. “I think part of our growth is relying on our franchisees and having good quality people,” he said. “At the end of the day, while you create good businesses, you need good people [and to] support them in their aspirations to create their wealth in owning a business. “From that come others that want to join the group, which allows our growth to continue,” Constantinou said.


DEVELOPMENT

Quest are selective when it comes to new franchisees because they need to be in order to quality control the brand. “We go through a lot of people that are interested [in becoming a franchisee],” he said. “It’s more around the character of the franchisee. “There are a lot of people that come to us with money that want to buy, but what we’re looking for is people are not so much about the equity or the background, but the passion to grow their wealth. “Hence, you’ll find a lot of the [new franchisees] are young. They’re not the old mature people like me that may have a few dollars to go and buy a business. We tend to see that as lazy money. We want people to transfer equity, challenge themselves to grow that equity, so it’s the passion and growth. “We’ll go through about four hundred franchisees and if we can get 10 to 15 new ones, we’re doing well,” he said. While the growth for Quest over the last 30 years has been in Australia, New Zealand and Fiji, expect more international locations like England, which just saw the debut of a Quest property in Liverpool. “The good thing about the UK is it’s not as if we’re just going there because I thought it was a good idea – we’ve been looking at that market for the last 10 years,” he said. “What we’ve been trying to understand are the demographics of the traveller. They’ve had serviced apartments over there for many years as well, but I’ll say Australia is leading the way in terms of having the whole building as a serviced apartment,” Constantinou told HM.

THE DEVELOPER’S HOTELIER Adina Apartment Hotel Brisbane

“We’ll go through about 400 franchisees and if we can get 10 to 15 new ones, we're doing well” Paul Constantinou – Quest Apartment Hotels Over the past decade, the Australasian hotel industry has seen a continuous shift from branded, managed hotels dominating the landscape to boutique and independent properties becoming firmly in fashion. Accor’s Vice President Development for the Pacific and Vice President of Franchise Operations, Lindsay Leeser, said that shift has been driven by a new wave of investors wanting to be involved in the running of the business and many are looking to franchising as a way of retaining their independence with the backing of major global brands. He said the shift is one that many operators saw and prepared for. “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 franchise arrangements continue to be popular.

TFE Hotels is Australia’s only globally headquartered hotel group providing design, construction, management and operating services to owners and developers. With over 50-years’ experience and over 28 hotels in the pipeline, we offer clear solutions and proven efficiencies at every stage of your investment. Contact our Development Team today: Michael Herman P +61 (0) 419 254 285 E mherman@tfehotels.com development.TFEhotels.com


ea

rli er

thi s

yea r

ro

up

s la

rg e

st

“I have a team of hotel experts who are highly experienced at building the relationship between individual property owners and the Accor group. Building that g understanding is crucial so that e th s i both sides can benefit to the fullest.” y a Q u e s t Ne w Q u InterContinental Hotels Group (IHG) has seen major growth the franchise sector, fuelled by the ongoing rapid expansion of the Holiday Inn Express brand by developer and operator Pro–invest Group. “Pro–invest’s focus is on the midscale and lifestyle hotel segments,” said Pro–invest Group Managing Director, Phil Kasselis. “This is where we are confident in our ability to maximise risk–adjusted 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.

d

e en op n w sto ee n u Q Ramada

“We have been on a growth trajectory unlike any others of late” Geoff Ballotti, Wyndham Hotels and Resorts “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 franchisee’s 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. “Accor’s 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.” While Accor has 38 brands in its portfolio, it’s the Australian–grown brand, The Sebel, which has been popular for franchising locally. “The Sebel is a well–established brand, known and loved by guests for its high quality and stylish apartments,” said Accor’s General Manager Franchise – Australia, Danesh Bamji. Bamji heads up the Franchise team in Australia and has worked in both managed and franchised hotels, understanding the importance of building ongoing relationships within the network. “Our priority is to get the framework right – for both sides,” he said. “We respect the fact that owners and operators of franchised hotels know their product very well and have considerable attachment to their property. Our role is to help them navigate through the network to ensure their properties establish a real competitive edge.” Having worked in franchised hotels, Danesh said he understands that sometimes owners are so busy running their hotel that it is easy to lose touch with their franchise partners and therefore feel that they are missing out on opportunities. “That’s where your Accor Franchise team will make a real difference and help owners make the most of the relationship,” he said. 50 HM The Business of Accommodation

“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 and raised AUD$380 million 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 started looking at further expansion that also included 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, 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.” Hilton’s major focus in Australasia for a long period of time has been hotel management agreements, however the company is moving further into the franchising segment, 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.” When it comes to franchisors, they don’t get any bigger in the accommodation industry than Wyndham Hotels and Resorts, which is set to reach the milestone 10,000 hotels mark over the next couple of years. One of the key regions driving that phenomenal growth is South East Asia and the Pacific Rim. In many countries across Wyndham’s South East Asia and Pacific Rim region – including Australia, New Zealand, South Korea, Thailand and Vietnam – the company is seeing growth numbers that are staggering, including in Vietnam, where the hotel operator has 500 rooms open now and over 10,000 to come.


DEVELOPMENT

In the US, around 70% of hotels are branded, which remains unchanged from five years ago, indicating that the opportunities for brand growth in Europe, including franchises, are significant. Although franchising is still less prevalent in Europe compared with the US, the operating model continues to gain popularity as it allows owners to maintain a greater degree of control whilst offering brands the ability to expand their footprint rapidly with the benefit of the owner’s local knowledge and connections. “While some chains are reluctant to relinquish the control offered by management contracts for their luxury brands, particularly in flagship locations, franchising is becoming a strong, often preferred means of expansion for midmarket properties,” said report co–author Stephen Collins, senior associate, HVS. “However, the franchise model is not without challenges as despite an increasing recognition of the strength of a hotel brand and brand affiliation, brands that are successful in one European market might struggle to gain recognition in another. Different regulations and disclosure obligations across various European markets also mean a one–size–fits–all approach to franchise agreements is not always possible, as it is in the US,” added Collins.

ly o The new

ni nS yd n

ey

Over the past five years, Accor’s proportion of franchised properties across Europe has increased from 37% to 48%, Hilton’s has risen from 32% to 51%, and the majority of IHG’s European portfolio is now made up of franchised properties. Companies such as Hyatt, which historically had no franchise presence in Europe, now have several franchised properties and is set to role out this model for the expansion of their limited service and extended stay brands, according to the report. “The consolidation and acquisition of hotel chains has led to a sharp rise in the proportion of franchised properties in the portfolios of the top chains, and as they are now larger than ever, they will continue to rely on franchises to achieve the desired growth and remain ahead of their competition,” concluded report co–author Sophie Perret, director, HVS. n

c lle Co l te Ho end c s ,A Hotel Harry

t io

Or ange ue st

d ne pe

Q

Speaking to HM at the 2019 Wyndham Global Conference in Las Vegas recently, Wyndham Hotels and Resorts’ President and CEO, Geoff Ballotti, said international markets were playing a significant role in the growth. “We have been on a growth trajectory unlike any others of late,” he said. “Our growth trajectory has been very consistent at between two per cent and four per cent on a net rooms growth basis [per year], which is about the same in terms as what we have been growing from a hotel standpoint on average at three per cent per year. “Our growth, however, is accelerating and it has been picking–up internationally. “International [markets] is really where [the growth] is and there is tremendous excitement in Greater China, where we have around 500 hotels in the pipeline. “That falls under into our guidance range of two per cent to four per cent, but [our pipeline] has been growing far more quickly for us internationally than domestically [in the United States],” he told HM. The 20–brand strong company currently has approximately 9,200 hotels across more than 80 countries on six continents, representing some 817,000 rooms, and a pipeline of around 180,000 rooms, representing approximately 2,000 new hotels. In the second quarter of this year alone, Wyndham’s pipeline was up 16 per cent year–on–year on a new construction basis, with a lot of the demand for new hotels coming out of the Asia–Pacific region. The biggest nation in Asia–Pacific for Wyndham is Greater China, with the largest international franchisor in the nation recently announcing plans to open a staggering 500 new hotels over the next three years, taking its total there to more than 2,000 hotels by the end of 2022. Outside of Greater China, Wyndham opened its 150th hotel in Asia– Pacific during September, with many countries including Australia, South Korea and Thailand all expecting to significantly boost new hotel numbers over the next couple of years. In Australia and New Zealand, Wyndham has approximately 40 hotels in operation and has expectations to double the portfolio over the next couple of years, driven by strong demand for hotels under the Wyndham, Ramada, TRYP and recently–introduced Days Inn brands. Wyndham’s strong pipeline is coming from organic growth, however, Ballotti didn’t rule out further acquisitions to further grow the size of the company, which has been built up on a remarkable scale through purchasing other chains. “Every 18 months we acquire and it’s been about 18 months since we acquired the last one,” he said, noting the company “nothing to announce today” but would look at acquiring a brand “if an opportunity presented itself that made sense and it was asset–light and ticked all the boxes”. “Every one of our 20 brands has been acquired with the exception of two [Wingate and Trademark],” Ballotti said. Franchising as a means of expansion is gaining popularity globally and particularly across Europe’s hotel sector as the big brands seek to move into new markets to drive growth, according to a new report from global hotel consultancy HVS. While the majority of hotels in Europe are still unbranded, there is evidence that this is changing. Brand affiliation in Europe is currently estimated at 40%, a decade ago it was closer to a third, the report says.

hotelmanagement.com.au 51


Franchise News

HM x QUEST APARTMENT HOTELS PROMOTION

The Quest For Growth

Quest Apartment Hotels has provided hospitality business ownership opportunities to people looking to transition from ‘earner’ to ‘owner’ for nearly 30 years.

corporate office role with Quest Apartment. Quickly, James saw the huge opportunity to become a Quest business owner, and the support available to Quest franchisees. “Quest not only provides a very robust business format franchise, it ensures strong support mechanisms are in place for new business owners, including an excellent franchisee training program for first–time property owners that includes both classroom and practical–based learning. “The prospect of giving up the security and benefits of being an employee, packing up our life in Sydney and relocating my young family to regional NSW to start a new business was a little daunting at first. However, the level of support Quest provides, both to new business owners and the ongoing support as you become established in your business, was reassuring and made the decision a lot easier,” said Mr. Blanchett. “They provide a monthly visit from an industry expert to ensure the business is operating at its optimal level. I’ve found these visits exceptionally useful, especially initially when I understood how to run a hotel, but I didn’t understand how to own a business. It’s those things that are outside the actual running of the hotel but sit with the ownership of the business that are new and different and can be quite daunting at first. When you are an employee you are simply doing a job in the business, but you don’t actually work on the business and it’s that support that Quest provides.” And the best thing about being a business owner compared to an employee? “I’ve never had such great work–life balance. I’ve now got the ability to be more engaged in our family life, while still focusing on building my business. I am able to pick my children up from school and attend their school assemblies, and we go to the beach on the weekends. The lifestyle we are enjoying in the Shoalhaven is just incredible,” said Mr Blanchett. “It’s also given me the ability to generate more income, as I’m no longer working for a salary. The earning potential is unlimited. Instead of working towards an end–of–year bonus, I’m working towards generating true wealth for our family.” Although Quest proudly boasts a relatively high proportion of business owners who originally worked as employees within the Quest network, like Mr. Blanchett, as Quest’s Group Franchising Manager David Constantinou explains, Quest Franchisees come from all walks of life. “Over the years, we have welcomed into the Quest network franchisees of all ages, backgrounds and experience. We have had a 52 HM The Business of Accommodation

myriad of hospitality professionals, who are attracted to Quest due to the support on offer. es Bl However, we also have e an i se che nc h franchisees who previously a tt, Q r F uest Nowra worked as accountants, teachers, travel agents and in corporate management roles,” says Mr Constantinou. With the apartment hotel leader enjoying strong growth across Australasia in both metropolitan and regional locations – opening anywhere between eight and twelve new properties each year –

m Ja

Q

uest franchisees follow Quest’s proven business format franchise model. The model is robust, with a range of systems and online platforms that assist Franchisees with everything from revenue management, to housekeeping, to keeping on top of guest reviews to managing costs to get the best business outcome. Franchisees have a dedicated Franchise Relationship Manager, who act as a business coach and provide guidance in optimising business operations to ultimately ensure the business is performing at a strong level. For Quest Nowra Franchisee James Blanchett, the opportunity to become a hospitality business owner after over 15 years working in the hotel industry was enticing. Having worked for several global hotel brands in sales management roles, in 2013 James accepted a

opportunities are constantly coming up for people to join Quest and start their journey to build wealth through business ownership. “Established franchisees often see a new Quest property as a way to upgrade their business ownership status. However, sometimes this means they need to sell their existing Quest business to make the transition into the bigger, newer property. This results in well–performing established Quest businesses of all sizes – from 40 keys to 100+ keys – regularly coming onto the re–sale market. These are excellent propositions for a first–time hospitality business owner,” says Mr Constantinou. And what is the advice from existing Quest franchisees to people considering making the transition from being an employee to a hospitality business owner? “You have to be willing to put in a lot of hard work. First and foremost, you should put a lot of research into ensuring you select the right business, in the right location. That’s really no different to buying any business, but if you back yourself in making that decision then the rest of it will largely fall into place, especially with excellent support systems like those provided by Quest,” says Mr Blanchett. The starting investment for a Quest franchise business is around $750,000, with the average investment level being in the range of $1,000,000 – $1,500,000. Business value is dependent on location, number of keys and other factors. If you are interested in exploring a business ownership opportunity with Quest Apartment Hotels, please visit www.questfranchising.com. au, email franchising@questapartments.com.au or call (in Australia) 1800 809 913. n

Quest’s Franchise Establishment team: L–R Anna Goncalves, David Constantinou and Regan Corbett


READY TO INVEST IN SOMETHING BIGGER?

As Australasia’s largest apartment hotel operator, Quest is a brand business travellers have come to rely on for more than 30 years. We’ve created a business format franchise model that takes away some of the challenges to achieving success in small business, with the support of one of Australia’s most recognisable and fastest growing brands. TO FIND OUT MORE ABOUT BECOMING A SUCCESSFUL QUEST FRANCHISEE, VISIT QUESTFRANCHISE.COM.AU OR CALL 1800 334 033.


PROPERTY PROFILE

Shadow Play apartments come in one and two–bedroom sizes

ON SHADOW PLAY FIVE MINUTES’ WALK FROM MELBOURNE’S YARRA RIVER AND TEN FROM THE CBD LIES ONE OF THE CITY’S NEWEST ACCOMMODATION GEMS, AS MATT LENNON FOUND. Shadow Play by Peppers GM, Alistair Munro

I

ay Pl

t may take a little bit of looking, but you’ll find Shadow Play by Peppers on the corner of City Road and Clarendon Street, a short walk from Crown Casino and the Yarra. The 46–storey mixed–use tower – from luxury property developer Jonathan Hallinan of BPM Corp – is one of the latest to join the Melbourne skyline, having opened earlier this year. Currently, nine floors’ worth of one and two–bedroom apartments within this new tower are managed by Shadow Play by Peppers for its short–term and extended–stay clientele, with ambitions held to grow this by a few floors to be able to boost the number of penthouses available. A number of other apartments are managed on a permanent letting basis by Peppers while the remainder are either held as primary residences or managed externally by respective owners. In addition to their room keys – guests receive on check–in an elevator fob card on a lanyard which allows them to access their own floor as well as public facilities such as the swimming pool, fitness centre and lounges. A di p i n Sha do More fun awaits guests once they reach their apartments. w Victoria’s leading producers of wine, cheese, confectionary, cured meats and many other delicacies are in a love affair with Shadow Play, which has opted to stock only products sourced locally or from parts of Victoria. Peppers’ second Melbourne property is found at

’s p

s highly refre o ol i shi ng

54 HM The Business of Accommodation

r

ea

t in W

er Ga rde n

tv

iew

T he

s

Docklands, in another corner of the city. As Shadow Play General Manager, Alistair Munro attests, there is plenty of room in the city for both properties as both are fishing in different pools when it comes to the corporate market. “Docklands is extremely desirable being right next to Marvel Stadium, whereas our location is absolutely fantastic as well because we’re so close to Crown and Southbank Promenade. Also, the

sg f er on Level 46 of

Convention Centre is another big draw card down this end of town.” One highlight, somewhat hidden at the moment, within Shadow Play is the rooftop indoor garden on Level 46 which is accessible to hotel guests. Head up there on a clear day and enjoy the green walls and outstanding views over Port Phillip Bay, Albert Park, the Melbourne Star Observation Wheel and a large part of the CBD. Work is nearly complete on transforming this space into a rooftop cocktail bar which is sure to complement the overall


PROPERTY PROFILE s Sharing i

ng in dw at E

m as

“Our entire drinks menu is locally sourced including water and soft drinks.”

c a ri

offering. Another addition to Level 46 now open is The Cloak Room suit shop, where gentlemen seeking a premium quality suit can go for the full fitting and tailoring service. According to Shadow Play, this side business is one quite personally revered by building owner Jonathan Hallinan and BPM Corp. Building on the commitment to showcase Victorian produce is Edwin Wine Bar & Cellar, located on the ground floor at Shadow Play by Peppers. Nothing grown outside of Victoria can be found anywhere on Edwin’s menu, with product available from 21 different Victorian wine regions. Interestingly, the wine menu features an equal balance between male and female winemakers. It doesn’t stop with the wines. According to Edwin’s sommelier Yu Kurosawa – herself part of a growing number of female sommeliers in Australia – the restaurant hangs its hat on the wine list featuring both well–known and more boutique labels. “In fact, our entire drinks menu is locally sourced Edwin Wine Bar & Cellar Sommelier, including water and soft Yu Kurosawa. drinks from Daylesford,

os

td

is h

es

are

serv e

d to s hare

orange juice from Caulfield and soda and mixers from Kyneton.” All spirits, including gin, rum, vodka, whisky and vermouth are also sourced from Victorian producers. Edwin Head Chef, Ritesh Patil, said it was not much of a challenge to put together a menu of high–quality items drawn only from Victorian producers. “Not only does Victoria produce the best seafood, meats, cheeses and local produce in Australia but we have some great local producers here who deserve to step out of the shadows of being just a supplier and be seen as co– creators of our menu of excellence,” he said. n The author was a guest of Accor and Shadow Play by Peppers to compile this feature.

An HM x STREAMVISION PROMOTION

Supplier Profile

20/20 Streamvision As in–room streaming takes hold, efficiently monetising it is the next big advancement, says Streamvision CEO, Greg Bassine.

What is the next big advancement in IPTV that you can share?

Casting is one of the latest and greatest innovations that is being seen in the hotel and accommodation space. This technology gives guests exactly what they want – the ability to watch their own content on a large screen when they’re in a hotel room. Our solution streamCAST takes it a step further, by providing a centralised solution that doesn’t require additional equipment in guest rooms – this makes it more affordable and convenient for hotels to install and manage.

Do hotels still seem reluctant to adopt streaming technology or is the message out there that this is the way forward? The message is well and truly out there. With the success of streaming services like Netflix and Stan, there’s no question that streaming technology is the way forward when it comes to the consumption of content whether it is at home or in the hotel room.

What are the main benefits of working with an entertainment supplier that builds and supports its own products in–house?

Front line staff i.e. Sales Reps, Account Managers, and Support Technicians are better positioned to facilitate client access to and influence over the product development process. This means our clients can be confident their voice is being heard where it matters and that our products can evolve to keep up with changes in their business needs.

Streamvision offers custom portal design for hotels to ensure no two products are the same

How much customisation do you see your clients requesting in terms of revenue generation in their IPTV system?

Most of our clients are excited about the opportunity to increase their revenue via technology. Of particular interest are our shopping cart and in–room ordering functions which allow guests to purchase amenities, book tours, order in–room dining, book future stays, etc. right through the TV portal. Hotel staff can easily manage and monitor these purchases. Integration with over 20 PMS systems makes it convenient to bill. Purchases of external services such as food delivery are also possible for hotels that wish to generate revenue with the help of local businesses. The other service we offer that our clients appreciate is bespoke IPTV portal design. Design and functionality are intertwined and we have seen that it is important to design portals in a way that facilitates an intuitive and smooth user experience so that guests don’t get lost in layers of menus. Many of our clients tell us they want a portal no other hotel has and we can deliver that by partnering with a design firm to provide a free portal design service to all of our new customers. n hotelmanagement.com.au 55


CHANNEL MANAGEMENT Marriott’s wholesale structure has been simplified through Expedia Partner Solutions

a wholesale deal HAS THE RECENT STREAMLINING OF MARRIOTT INTERNATIONAL’S GLOBAL INVENTORY THROUGH EXPEDIA GROUP SET A NEW STANDARD FOR SIMPLIFYING THE WORLD OF WHOLESALE, WONDERS MATT LENNON

I

t may have seemed like the best option at the time but over the long history of hotel wholesaling, the litany of agreements and on–sell deals has gradually become, for many hotel suppliers, an unnavigable maze of jargon and fine print woven together like tangled Christmas lights. However, a ray of sunlight found its way down the murky tunnel earlier this year when Marriott International opted to take a step in the other direction, saying ‘no more!’ to its own web of complex deals and instead making the move to streamline its entire global inventory through one system. Effectively, the hotel juggernaut saw a way to start again with a clean slate and farm out its wares to the world’s markets from a single field. The numbers at play are quite staggering. According to Marriott International’s latest Annual Report, the

56 HM The Business of Accommodation

company’s global estate consists of 7,200 properties and nearly 1,362,000 rooms. Multiply that by 365 nights per year and you’re looking at an annual distribution demand of nearly 500 million room nights – 497,130,000 to be precise. Enter stage left – Expedia Partner Solutions. In its own words, the company says it exists to “help knock down the barriers to travel, making it easier, more enjoyable, more attainable and more accessible.” Expedia, meet Marriott. Like most great romances, it all began with a cup of coffee. Fast forward to October 15, 2019 and thousands of travel advisors the world over are chipping away at Marriott’s annual inventory block one room at a time, but all being booked through Expedia Group and its world– leading B2B technology. And with the stroke of a pen on a contract, travel advisors can draw on a single tech platform to pick the best Marriott International hotel from 30 brands – in addition to the universe of other hotel networks, brands and destinations available at a wholesale level for their clients. All of a sudden, hotel wholesaling doesn’t appear quite so complex. Marriott International Global Officer of Digital, Distribution, Revenue Strategy & Global Sales, Brian King, said its highest priorities were enhancing service and transparency for consumers.


CHANNEL MANAGEMENT

“We can increase our reach to leisure travel providers while solving distribution challenges.” Brian King, Marriott International

ha

dia

co m

ea

glo ba lp se ou rh

Exp e

launch to be

e ow

sg

s 1996 m it o r f wn ro

“With this truly innovative solution from Expedia Group, we can increase our reach to leisure travel providers while solving distribution challenges and improving profitability for our hotels around the world,” he said. The benefits of using one gateway are extensive. Leading the way is the need for Marriott properties only needing to update room and resort descriptions once, eliminating confusion and the need to ensure consistent information across the sales platforms of wholesalers worldwide. Marriott will also be able to better manage its wholesale division with only one company to deal with. Redistributors around the world now also no longer need to negotiate their own rates and sale conditions through Marriott, each trying to negotiate and leverage some sort of preferential perk in exchange for the volume they bring. Whilst this is still possible, it is now managed by Expedia under its own resale terms and conditions. Expedia Group Senior Vice President, Enterprise Solutions, Expedia Partner Solutions, Christian Gerron said Expedia believed in unlocking the power of its technology for its partners so they “can benefit from our significant investments in technology, support services and industry expertise. This agreement with Marriott International is a great example of putting this ethos into practice”. n

Headline hotel news is only a click away. Get breaking news, headline stories and exclusive video interviews from across the globe, delivered to your inbox every week for free!

Sign up now at www.hotelmanagement.com.au For advertising enquiries, contact Tara Ducrou on +61 2 8586 6285 or tducrou@intermedia.com.au

HM Map ad_HPHB_Dec19.indd 1

hotelmanagement.com.au 57 26/11/19 3:46 pm


INTERIOR DESIGN The outdoors has come indoors at Taronga Wildlife Retreat, Sydney

goes boutique HOTEL RESTAURANTS ARE, IN MANY CASES, NO LONGER THE EXCLUSIVE DOMAINS OF IN–HOUSE GUESTS. AS SUCH, THIS CALLS FOR NEW LEVELS OF IMAGINATION IN DESIGN, WRITES MATT LENNON.

58 HM The Business of Accommodation


INTERIOR DESIGN

C

oupled with the rise of the boutique and boutique–esque hotel scene has been a shift in emphasis between the rooms and the restaurant. Whereas a hotel used to offer a restaurant as an extra amenity, nowadays it is the main drawcard to entice both in–house guests and locals alike. Boutique hotels are currently riding the wave of destination–themed restaurants and bars where guests are drawn to a colourful, cultural example of the place they are visiting but one not too tacky for locals too. According to one leading designer, hotels have traditionally struggled for long–term viability in a restaurant space and new strategies are needed to boost profits and ease the subsidisation on the hotel itself. As a restaurant’s appeal and profitability is intrinsically linked to its design, new creative concepts are being devised to ensure a dining space can stand on its own merit. For Paul Kelly and his eponymous design label – which has over 500 food and beverage outlets to its name in Australia – these strategies include turning a restaurant and bar into an entire ground–floor experience. “We’re really integrating them as a complete ground– floor concept. So the brands and the brand essence is running through the entire facilities, not making them feel like they’re third–party operations. We’re really trying to blend them in. We’re doing a few of these at the moment and our intention is to really make these things feel like they’ve certainly been there for a while.” For a modern designer, social media is paramount to a restaurant’s success. The ‘Instagrammability’ and inspiration for peer–to–peer reviews takes the job of a designer beyond interiors and into areas such as wayfinding, branding and that all important buzzword – ‘authenticity’.

Ironsand is part of a new concept from Paul Kelly Design due to debut in Auckland in late 2020

“As designers we start with a narrative. That’s our blueprint for everything we do in a project,” says Chada Creative Director, Juliet Ashworth. “We recently completed Me–gal restaurant at the Taronga Wildlife Retreat. The narrative was very defined – it was all about the land, the Paul Kelly – Paul Kelly Design view [and] beautiful, under– stated natural materials; a sense of retreat and escape like you’re floating above The Dining Room at Tasmania’s deluxe the zoo and the harbour. It makes you feel privileged to Saffire Freycinet be there.” Another example of Chada work is the Newmarket Restaurant at the William Inglis Hotel at Warwick Farm in Sydney’s southwest. As one of Australia’s leading multi–generational breeders of thoroughbreds, the brief called for a themed restaurant which drew on the family’s long and esteemed history with both rural Australian land and the racing community. “That was the brief – make a restaurant that speaks to all that! A venue that has to cater to the lowly strapper as well as the billionaire Arab sheik and from sales days 33 days of the year through to operating as a normal all–day dining restaurant for the remainder of the year,” Ashworth reflected. Sounds easy, right? A common theme currently among designers has been the concept of ‘Reverse Engineering’ or ‘Reverse Briefing’ whereby the competition and a community is studied and time and effort goes into determining a dining concept that seems the next logical step. Nothing too outrageous but nothing too cookie–cutter either. In terms of design specifics, Paul Kelly said natural materials are very much in vogue at the moment. “We’re going away from glossy and glitzy and back into things that look a little bit more worn in. We’re trying to launch these venues into spaces where they don’t look like they’re all bright, polished and brand new and no one can touch anything. They want people to feel like they can actually use these facilities. “We’re really trying to be right at the forefront of the development of the food and beverage,” Kelly continued. “And it’s all about success. Success brings success." n

“We’re going away from glossy and glitzy and back into things that look a little bit more worn in.”

Room at William Inglis Hot arket el, W ewm a r w eN ick Th Far m

hotelmanagement.com.au 59


Biting ROOMS DIVISION

and are a resilient lot. Infestations of hundreds or even thousands can start from little more than a few residing in somebody’s suitcase which may not have been cleaned out in a proper and timely manner from a previous journey. Guest hygiene aside, it’s important to remember that two of Australia’s suppliers of hotel blankets, mattress protectors, quilts, towels, bed linen and even luggage racks (bed bugs love fabric and soft materials and can even reach dirty clothes from a poorly maintained or dirty carpet). For Robert Weatherdon and his eponymous supplier of essential in–room equipment, Weatherdon’s quality control protocols are robust and work fluidly to ensure products such as mattress and pillow protectors arrive in pristine condition. “We have a lot of pre–existing supplier relationships. We do a lot of factory inspections. We have somebody who works for us based in Hong Kong [and] he does a lot of supplier engagement and inspections. We have people who inspect the products as they’re being made before shipment. We have people in our house here in Sydney who are dealing with suppliers. “It’s that mix of having pre–existing supplier relationships and being in touch with them but also if there’s a new supplier, we visit them, we cross–reference with other people inside and outside the industry globally. You try and make sure that who you’re dealing with can deliver. “It’s an ongoing, constant situation in terms of review.” According to the study, published in the Scientific Reports Journal in 2017, bed bugs are not just resilient – they’re smart too. Experiments found that soiled clothing left on hotel room floors provided just the vehicle for bed bugs to congregate and transfer into luggage. Worn clothing, combined with human odour within a bedroom–sized environment, saw bugs initiate a search for a new home and facilitate passive dispersal. Bed bugs are a problem few of us will personally experience over our lives staying in commercial accommodation. And as long as standards are maintained or improved, the old saying ‘Don’t let the bed bugs bite’ will continue to fade into obscurity and irrelevance. n

back on bed bugs

A SCIENTIFIC RESEARCH STUDY INTO THE APPARENT RESURGENCE OF CIMEX LECTULARIUS – MORE COMMONLY KNOWN AS THE BED BUG – HAS BEEN LINKED TO THE RISE IN GLOBAL LOW–COST AIR TRAVEL. HOWEVER, AS MATT LENNON WRITES, A FEW SIMPLE STEPS CAN ENSURE YOUR GUESTS SLEEP SOUNDLY AND FREE OF ANNOYING BITES.

to

ble

inv isi

s tl y

Bed bugs

are m o

W ea th

g in

60 HM The Business of Accommodation

he

t

A

t less than half a centimetre in length, a fully grown adult bed bug is mostly invisible to the untrained and unsuspecting eye. For most, they’re the last things you’d expect to Weatherdon find in a hotel room bed but even a slight lapse in hygiene Founder and can be all it takes for these pests to leave you waking with MD, Robert Weatherdon a galaxy of tiny red and itchy bites over your body. Thankfully, treatment for these bites is simple and readily available. On another scale, there are pesticides, detergents and professional services available to rid an establishment of infestations of any size or scale. However, like any setback, prevention is better than a cure. Room cleanliness can be a subjective matter however the industry should be given its rightful plaudits – few, if any professional accommodation operators would settle for anything less than a spotless and exemplary standard of hygiene and this is diligently upheld year–round supplier of rollawa is a yb n and even regularly improved upon. o ed rd d e If an incident involving bed bugs does happen, it can almost always be traced to a poor example of personal hygiene demonstrated by a guest. For a flightless creature, the ability of bed bugs to travel is one to be admired if nothing else. Bed bugs thrive in damp and dirty environments

de ke na

ye


CONCIERGE CORNER

MAYUMI’S MANILA IN 24 HOURS

Mayumi’s influence

Les Clefs d’Or SEAO Zone Director and Chief Concierge at Raffles and Fairmont Makati in Manila, Mayumi Hayakawa Marcelo has some lofty ambitions for her region, which includes Australia and New Zealand. Interview by Peter McBrearty

What are your plans and ambitions for our region and membership over the next two years?

O

ur region is, I believe, one of the most stable and fine–tuned in terms of abiding by the UICH statutes and implementing these in our respective countries. I would like to see this continue, especially that we have a fairly new section with us now, Indonesia, which I would like to see blossom further. I would say developing and strengthening further the zones’ internal camaraderie and networking, plus seeing us well represented in the international activities would be one thing I would like to work on, whether it is through the educational or CSR channel.

In recent years, there has been a particularly strong focus on training and developing professional Concierge in our member countries. Do you find the educational component of the annual International Congresses helpful in this regard?

Being part of the Educational Committee in the Berlin 2017 Congress gave me a greater insight and appreciation of this dedicated educational day of our annual congresses. I totally agree that focusing on the training and development of members is vital in sustaining this wonderful profession, as it helps us to be sharp and on top of our game, year on year. As they say, learning never stops until our last breath is taken!

How long have you been a Concierge in total?

While Manila is infamously tagged as being one of the worst cities for rush hour traffic, the awe–inspiring spots, historical destinations and spontaneous experiences you can encounter make it unique and worth exploring. If you have only 24 hours to discover the Philippines capital city, here’s how to get the most out of your 24 hours. Morning: Start your day with a hearty Filipino breakfast. Sample old time favorites such as ‘longganisa’ (sweet sausage), ‘tocino’ (sweet cured pork) or ‘beef tapa’ (cured beef) served with fried eggs and garlic rice, better known locally as the “si–log” meals. Other popular choices are ‘champorado’ (chocolate flavoured rice porridge) and ‘taho’ (soybean custard with caramelised brown sugar syrup) which are famous breakfast staples that are both filling and inexpensive. After a hefty meal, either stroll down Ayala Avenue and visit the Ayala Museum to discover a vast collection of Filipino art, or head to the National Museum to immerse yourself with Filipino culture as you learn about the country’s famous works of art and preserved historical artefacts. Afternoon: A food trip to Binondo or Chinatown should not be missed. This is the oldest Chinatown in the world, giving you a trip down memory lane as it gives you a glimpse of numerous historical buildings and hidden gems of restaurants and apothecary shops. After lunch, cross the river to visit the Intramuros, the old town centre of the Spanish colonial period. Make your way to the Luneta Park where the monument of the country’s national hero, Dr Jose Rizal, is located. Before ending the day, catch the spectacular Manila sunset by the Roxas Boulevard, which is one of the best spots in the world to catch a full blaze sunset. Evening: As twilight settles, your thoughts may turn to good food once again. The restaurant and food scene in the metro has really been growing and expanding, but who would want to miss the more local dining setting of the seafood dampa experience. After an enriching and satisfying dinner, one can experience the local nightlife as you enjoy a round of drinks in the quaint bars and hidden nooks at the Poblacion to get the feel of the old and the new in this city of Manila!

I have been with the Concierge profession for more than 16 years.

As SEAO Zone Director, you’re responsible for members in The Philippines, Japan, Singapore, Australia, New Zealand, Indonesia, Malaysia and Thailand. How are you enjoying the challenge of co–ordinating and further developing the Les Clefs d’Or membership across our region? It is an honour to be able to represent our zone. I am working to further strengthen our ties within our new region, given that Australia and New Zealand have been on their own for the longest time. It is exciting how we can utilise the strengths and weaknesses of both sides of the region to build a stronger and better gelled team. n

Ayala Avenue is the main street of Makati, Philippines.

hotelmanagement.com.au 61


PEOPLE

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

A new figure to be found on Victoria’s Surf Coast is Ryan Ennis, who can be found at Club Wyndham Torquay as the new Resort Manager. The property and its 206 rooms are utilised by Club Wyndham’s global network of timeshare owners, vacation club members, permanent residents and short–stay guests. Ennis relocates to Torquay following his most recent stint as Assistant Hotel Manager at Wyndham Hotel Melbourne. Ennis is no stranger to the outdoors life, having also worked at Wyndham Dinner Plain in Mt Hotham. With a career spanning over four decades and having worked in all corners of the globe – Aussie expat Julian Moore will be returning home to take up the role of General Manager at Crystalbrook Collection’s Byron at Byron. Having worked at brands including Hyatt and Alila Hotels, among others, Moore’s personal philosophy is to deliver a ‘moments of joy’ through lifetime memories and world–class hospitality. Mark Upton has been promoted to General Manager at Sage Hotel Wollongong following the departure of his predecessor. Prior to moving to the NSW coastal city in January 2018, Upton served in a GM role at Grand Pacific Hotel and Apartments in the Victorian town of Lorne, along the Great Ocean Road. Since his arrival, Upton has overseen the refurbishment of all hotel rooms as well as meeting and conference facilities.

A recent internal promotion has seen InterContinental Hotels Group appoint Steve Carroll as its new Senior Vice President, Capital Investments & Transactions, EMEAA and Greater China. Carroll’s new duties, which will see him based in London, include asset management with specific focus on the Europe, Middle East, Asia & Africa (EMEAA) & Greater China regions, while working closely with teams in other regions on cross–regional opportunities and capital flows. Independent accommodation group, Leading Hotels of the World, has named Shannon Knapp as its new President and Chief Executive Officer on a permanent basis following her assumption of duties earlier this year. Knapp ascends to the role after having served as LHW’s Senior Vice President and Chief Marketing Officer for the past five years. Leading Hotels of the World currently comprises a membership of 430 properties worldwide. Sheree Blum has been installed as Property Manager at Quest Joondalup – the newest Quest Apartment Hotels property to open in Western Australia. Blum is highly experienced with the company, having worked in similar roles at Quest Nowra in NSW and Quest Mounts Bay Road in the Perth CBD. The fast–growing district in Perth’s north is seeing a boost in corporate and business activity, with the new property located close to Edith Cowan University. Crystalbrook Collection’s newest property in Cairns – Bailey – has

introduced the management team which will lead the resort during its opening stages. Serving as General Manager will be Carl Taranto, who brings more than 20 years in the industry and moves across from a prior role as Rooms Division Manager at Bailey’s sister property in Cairns, Riley. He will be joined by Myles Minter as F&B Outlets Manager; Tyrone Hunt as Executive Chef; Kristina Olsen as Marketing and Comms Manager; Erin Barnett as Human Resources Business Partner and Jaydev Walia as Front Office Manager. 62 HM The Business of Accommodation

Pan Pacific Hotels Group continues to spearhead its recognition and promotion of key internal talent, elevating Tim Birley to the role of Senior Business Development Manager. A former HM Award winner for Sales and Marketing Associate, Birley has risen through the ranks at PPHG over five years from his initial start at Parkroyal Darling Harbour. Moving to the National Sales Office, Birley will now be in charge of the MICE, Entertainment and Sport divisions. Two new management roles have been filled at InterContinental Sydney, with Timothy Smith taking the reigns as Hotel Manager, working under General Manager, Jennifer Brown. Smith arrives at IHG’s flagship Sydney property from his previous role at The Westin Sydney. In addition, Max Babajev has brought his decade–plus experience in hospitality to his new role as Bar & Lounge Manager at The Cortile, InterContinental Sydney’s central lounge bar. In a former role with Rockpool Dining Group, Babajev is credited at having created the Tim Tam Margarita as a celebration of Australia Day. Next Story Group has appointed Christopher Ely as its new Vice President of Business Development and Asset Management. Based in Singapore, Ely will play an instrumental role in the ongoing expansion of Next Story Group’s regional development plans as part of its Vision 2025 strategy. He joins the company from a similar role at Jones Lang Lasalle Hotels, where he oversaw resort development around the Indian Ocean region.


THE BU

SINESS

O OF ACC

IN ATION MMOD

YOU SH ’S GIRI GROUP ALI AND O L O V O A ON B RALIA NUWAL UST JHUNJH SORT FOR A D: A RE EMAN SING D MAINS I H C N RE FRA MENT ALASIA R HE SEG WHY T HOT IN AUST

ACIFIC ASIA-P

thly Bi-mon

No.6 Vol. 23 19 ber 20 D e ce m

HM, now in its 23rd year, is the leading accommodation trade magazine in the region and is distributed to most large accommodation properties in Australia, Fiji, New Zealand, Noumea, Vanuatu and Tahiti.

s ’ s e y a c i Chowinning w e for e chang d f positiv o r and. Le a r e b y een a t Hotels r fo e u It has b m q o r nd its C ous ma e Hotels a , the fam Choice set up th d office l a il e h w l h a b ic h lo g w e r, e ov by th cade. a make next de ergone into the n o has und w o r g brand to

Subscribe

uch more ty and m li a u q e r , gende inability h, susta rt e P in pen hotels o ew luxury N H T IS MON HOT TH

YES! I WISH TO RECEIVE HM MAGAZINE

PLEASE FIND ENCLOSED MY CHEQUE/MONEY ORDER FOR $

PAYABLE TO FOOD AND BEVERAGE MEDIA PTY LTD OR PLEASE CHARGE MY: MASTERCARD

VISA

AMEX

WITHIN AUSTRALIA*

$72.00 – 1 YEAR, 6 ISSUES $115.20 – 2 YEARS, 12 ISSUES SAVE 20% $151.20 – 3 YEARS, 18 ISSUES SAVE 30% * PRICES QUOTED INCLUDE GST

CARDHOLDER NAME: EXPIRY DATE:

SIGNATURE:

NAME: JOB TITLE: COMPANY:

FOOD AND BEVERAGE MEDIA PTY LTD ABN 81 163 792 292 PHONE: 1800 651 422 RETURN YOUR SUBSCRIPTION FORM VIA FAX: 02 8580 6312 MAIL: P.O. BOX 55 GLEBE NSW 2037 EMAIL: SUBSCRIPTIONS@INTERMEDIA.COM.AU

ADDRESS: SUBURB/TOWN: POSTCODE: PH: EMAIL:

FAX:


SUPERRATINGS PLATINUM 2019 MYCHOICE SUPER

SUPERRATINGS PLATINUM 2019 PENSION

10

10 YR PLATINUM PERFORMANCE 2009–2019

MYSUPER OF THE YEAR FINALIST 2019

CAREER FUND OF THE YEAR FINALIST 2019


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.