HM June 2020

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IN THIS ISSUE

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SUPER FUNDS’ INDUSTRY OUTLOOK

Vol.24 No.3 Bi-monthly June 2020

GLOBAL

LEADERSHIP The Blue Mountains International Hotel Management School is recognised across the world as one of the best in the industry, from entry level education to short courses and the coveted MBA. We chat to several leading alumni to find out why.

HOT THIS MONTH Hotel hygiene protocol, Marriott in Western Sydney, Tourism taskforces and more


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CONTENTS

June

32

2020

Vol. 24 No.3

28 HIDDEN IN PLAIN SIGHT

Hotel television manufacturers are getting crafty in the adaptability of their products

32 THE SCIENCE OF SLEEP

HM dives into the world of spinal research conducted by bedding brands, helps ensure hotel guests have the best sleep possible

38 CLEANING UP MYTHS

As hotels move to cut costs and operate on tighter budgets, Australia’s three leaders in outsourced housekeeping talent shine the light on why their services should never be discounted

40 BUFFET NO WAY

HM chats to several leading interior designers to get the inside word on major changes coming to every hotel’s morning breakfast routine

42 DEVELOPMENT SNAPSHOT

We assess the scene and its forthcoming recovery from the perspective of hoteliers, developers and the real estate sector

46 GREEN FROM THE GROUND UP

A look at how investor and operator Pro-invest Group is leading the green charge in Australasia

48 SUPER AND INSURANCE UPDATE Four leading organisations look at what to expect in 2020 and beyond

HM Q&A 26

Backpacker pod hotel brand Jucy Snooze is eyeing expansion into Australia

26 J UCY SNOOZE CEO, TIM ALPE

Jucy Snooze CEO, Tim Alpe, is revolutionising backpacker travel with his pod-style hotels. Now with Event Hospitality along for the ride, expansion plans are picking up pace

Regulars

04 EDITOR’S LETTER

James Wilkinson on the promising sight of hotels getting back to business

06 N EED TO KNOW

The 14 essential news stories you need to know this month – spanning operations, development and tourism industry news

On the cover

Several of the leading alumni from the Blue Mountains International Hotel Management School

18 COVER STORY

Presented this month by Blue Mountains International Hotel Management School

48

50 ON THE MOVE

A look at who's moving where this month hotelmanagement.com.au 3


EDITOR’S LETTER

Hotel re-openings are the sign of some great things to come

Managing Director

I

Simon Grover

t has most certainly been the toughest six months I’ve ever seen for the Australasian hotel industry, from bushfires to the COVID-19 pandemic and the region’s second biggest airline, Virgin Australia, going into voluntary administration. I have been editing HM magazine for 19 years now and this industry has been through a lot of tough challenges, but not six months like this. What has kept the industry going has been strength, resilience, solidarity and unity – four key pillars that have helped maintain positivity during this rough time and things the sector has embraced to emphatically help it re-boot like never before. As this issue of HM magazine went to press, hundreds of properties across Australia and New Zealand were starting to re-open to guests for stays, meals and drinks, and the excitement from Hoteliers rolling out the welcome mat was absolutely heart-warming. The pandemic saw many hotels closed and others operating at just 1% capacity, but now the industry has moved into its next phase – re-opening – and offering that incredible hospitality Australia, New Zealand and the South Pacific is so well known for. At HM magazine, we are here to support you as much as we can, so please reach out with news, specials, thoughts and ideas, and we will endeavour to share these with our audience across our magazine, website, newsletter and social media platforms. The Australasian accommodation industry is incredibly resilient and here’s hoping that the recent reopenings are the sign of some great things to come. I’ll leave you in the words of Marriott International’s brilliant President and CEO, Arne M. Sorenson: “What we’re facing is daunting, but I am heartened by the moments of triumph in everyday acts of courage, humanity and love. “Although these are trying times for us all, I remain optimistic that our world will thrive once again. We will travel again, and we can’t wait to welcome you back. Until that day comes, stay well.” Enjoy the issue and I look forward to your feedback as always. Yours in hospitality,

James Wilkinson Editor–In–Chief

James Wells

Editor–In–Chief

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

Michael Johnson, Dean Long, Sally Attfield and Peter McBrearty

Production Manager Jacqui Cooper jacqui@intermedia.com.au

Subscription enquiries

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Marriott International President and CEO, Arne M. Sorenson

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MEET THE HM TEAM…

James Wells Publisher

Publisher

Matt Lennon Deputy Editor

4 HM The Business of Accommodation

Tara Ducrou National Sales Manager

Adrian Tipper Creative Director

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 © 2020 – FAB Media Pty Ltd.


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

International marketing will return further down the track 01

Tourism Australia shifts short-term focus to domestic Launches new ‘With Love From Aus’ campaign

AUSTRALIA’S DOMESTIC TOURISM recovery will be led in the short to potentially-medium term by domestic visitation, with Tourism Australia set to alter its focus to play a key role in driving the rebuild. The organisation, which traditionally has applied its knowledge and expertise in promoting Australia to international markets, will revamp its strategies and campaigns to launch new, inward marketing campaigns with messaging encouraging Aussies to get out and see

their own country. Activity is expected to start small and ramp up as states and territories begin to assess and implement strategies to loosen border restrictions. The shift comes as Tourism Australia released a new video postcard entitled ‘With Love From Aus’ urging future holidaymakers dreaming of a visit down under to hold on and that Australia will be ready to welcome everybody once the world returns to normality.

03

A new dawn for Australian tourism is on the horizon THE AUSTRALIAN CHAMBER of Commerce and Industry has assembled a who’s who of the Australian travel and tourism industry to serve on a special ‘Tourism Restart Taskforce’ which will chart the course for the sector to rebuild. Key duties of the taskforce will include liaising with governments at multiple levels and connecting the wider tourism sector into all facets of the recovery effort. Key milestones will include the gradual reopening of businesses and borders whilst continuing to urge compliance with social restrictions and distancing as state and territory governments assess and relax restrictions. 6 HM The Business of Accommodation

Significant spending on the way to help industry recover SUPPORT FOR THE recovery of the New Zealand tourism industry will come from active collaboration and partnership by Ministers and the private sector, after more than NZ$400 million was pledged to the sector in the 2020 Budget. Leading the government budget was an eight-week extension to the existing wage subsidy program for businesses able to prove a drop of at least 50% in revenue edged to the se cto n pl e e compared to the year prior. r b as The ‘Tourism Recovery Fund’ and 'Tourism Transition Program' will help businesses adapt to new markets such as Domestic or Trans-Tasman while international borders remain closed. h

Captains of industry to help resurrect sector

NZ Budget sends positive signs for tourism

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Leaders ready to breathe new life into tourism

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Major hotel groups declare war on germs Hilton, Hyatt, Marriott, Radisson, IHG and Accor among many revamping cleanliness practices

THE COVID-19 PANDEMIC has forced the world’s leading hotel groups to revolutionise the way properties are cleaned, with major chains working to reassure guests of high sanitisation standards in place. Marriott International will deploy ultraviolet light technology and electrostatic spray guns firing hospital-grade disinfectant among a raft of measures to boost cleanliness in its hotel portfolio. Over at Hilton, the company has engaged hygiene experts from Dettol and the Mayo Clinic Infection Prevention and Control team as part of an eight-pronged 'CleanStay' program aimed at visually assuring guests that the spaces they will be occupying are unequalled in cleanliness. IHG has revamped its cleanliness best practices in collaboration with hygiene experts Cleveland Clinic, Ecolab and Diversey, with enhanced and much more visible cleaning protocols set to come into force across its worldwide network. More visible charts informing guests when an area was last cleaned will pop up around hotel public spaces and facilities including fitness

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Hotel workers carrying out cleaning duties will become far more visible to guests centres, swimming pools, lounges, restaurants and bars. Hyatt Hotels Corporation will turn its attention on staff training, with more than 900 hotels globally to be assessed and pushed to attain Global Bio-risk Advisory Council (GBAC) STAR accreditation. Employee training will be boosted in line with new protocols, while Hyatt will also implement regular internal and third-party auditing to ensure standards are met and exceeded consistently. Further, Radisson Hotel Group will expand the use of Personal Protective Equipment (PPE) for staff across its global network, with an official SGS-endorsed Seal of Approval issued to compliant hotels. For more information on Accor’s new ‘Allsafe’ program, see pages 22-23.

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THINGS YOU NEED TO KNOW 05

Six major advocacy bodies are urging for the industry’s mass support

SIX MAJOR ORGANISATIONS representing a wide spectrum of the national and regional travel, tourism and hospitality industries have united to encourage more Australians to download and use the new COVIDsafe app. The organisations include the Accommodation Association (AA), Australian Federation of Travel Agents (AFTA), Cruise

Lines International Association (CLIA Australasia), Tourism and Transport Forum (TTF), Restaurant and Catering Association (RCA) and Business Events Council of Australia (BECA). In a joint statement, the group have endorsed the app, saying its use will help to “hasten the easing of current restrictions and social distancing measures�.

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The group said the rapid response to the app shows how seriously Australians have treated the pandemic and how importantly they consider a steady return to normality to be. Urging more Australians to download the app, the group said the more widely the app is used, the faster state and territory governments will be able to loosen restrictions with greater confidence.

07

An artist’s rendering of Courtyard by Marriott Sydney, Auburn

SkyCity to introduce luxury ‘Eos’ brand in Adelaide Guest services will include an on-call mixologist

06

Marriott signs Courtyard and Four Points for outer Sydney New hotels claiming territory ahead of the new Western Sydney Airport opening

8 HM The Business of Accommodation

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TWO NEW HOTEL developments coming to Sydney’s outer suburbs of Auburn and Blacktown will carry the Courtyard by Marriott and Four Points by Sheraton brands, Marriott International has announced, opening in 2023 and 2024 respectively. The hotels from Sydney property firm T1 Constructions sees the two brands venture outside the NSW capital’s CBD boundaries for the first time into two regions experiencing significant growth in commercial and industrial enterprises. Courtyard by Marriott Sydney, Auburn will be set on the doorstep of Sydney Olympic Park and will comprise 203 guest rooms and facilities including outdoor swimming pool, all-day restaurant alongside a 24/7 ‘Grab and Go’ market concept, fitness centre including sauna and collaborative lobby space. Further west, the future Four Points by Sheraton Sydney, Blacktown will offer 206 rooms, with hotel facilities including a ‘Grab and Go’ cafĂŠ, lobby lounge, all-day restaurant and local craft beer available via the brand’s ‘Best Brews’ local beer program.

SOUTH AUSTRALIA’S $330 MILLION expansion of Adelaide Casino, part of the SkyCity Entertainment Group, will see the introduction of the company’s new luxury hotel brand ‘Eos by SkyCity’, with opening of the development remaining on track for its planned debut in late 2020. The new brand will occupy a 12-storey, 120-room luxury hotel currently under development at the site, with rooms ranging in size from 45 square metres up to the 305-square metre Grace Villa, all overlooking either Adelaide Oval or the Torrens River. Construction of the exterior façade has been completed, with attention currently on the internal design, fit-out and final checks ahead of opening to guests and visitors. In addition to the 120 guest rooms, Eos by SkyCity will feature two signature restaurants – one of which will occupy the rooftop – a spa and wellness centre, swimming pool, fitness centre and event space for up to 650 delegates. The precinct will also be connected off-street to the neighbouring SkyCity Adelaide casino and entertainment complex. FOR FURTHER INFORMATION

Eos by SkyCity will include a rooftop restaurant


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THINGS YOU NEED TO KNOW 08

Skye Suites Green Square fast-tracks open date

Opening brought forward from July for long-stay guests Rydges Port Adelaide will serve key local industries RISING DEMAND IN the long-stay market segment has prompted Skye Suites Green Square to open its serviced apartment and residence component in April, ahead of its short-stay hotel opening in July. The company, which recently reported success in its extendedstay business model at its two existing properties in Parramatta and the Sydney CBD, will open its third property in the NSW capital ahead of schedule to allow it to continue catering to the growing Skye Suites Green traveller market seeking a space to Square sits within a isolate while still maintaining a modern cantilevered building design normal work schedule. The early opening will cater

10

Ovolo Group launches ‘Restaurant In Room’ dining

It’s fine dining with full adherence to social distancing rules

Rydges to manage new waterfront Port Adelaide hotel Hotel claims last key site on heritage port area EVENT HOSPITALITY HAS signed a management agreement and will bring its Rydges brand to an undeveloped wharf in Port Adelaide. In partnership with CK Property Group, Rydges at the Wharf Port Adelaide will consist of 180 rooms, a locally-inspired restaurant and bar and meeting room space for conferences. The hotel will sit waterside fronting the Adelaide River and will be designed to service around 7,000 businesses located in both the nearby Technology Park and Edinburgh Defence precincts due to its close proximity to the city’s high-tech defence industry and associated businesses. FOR FURTHER INFORMATION

EAGER DINERS MISSING the social ambiance of their favourite restaurant can now do so whilst maintaining social distancing requirements thanks to a new ‘Restaurant In Room’ concept from Ovolo Hotels. The innovative concept is currently available at two Ovolo hotels – in Canberra and Sydney – however efforts are underway to expand to other Ovolo properties in Australia in line with the gradual lifting of movement restrictions. Pending distancing rules, the concept may become available at Ovolo

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to stays of three months or longer, with Crown Group Chief Operating Officer, Pierre Abrahamse labelling the new property as the most exciting opening of 2020.

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Woolloomooloo’s Alibi Bar & Kitchen and Za Za Ta at Ovolo The Valley in Brisbane. Restaurant In Room sees up to two diners per party escorted to one of the hotel’s rooms for a private dining experience, with set three or five-course menus prepared by the hotel’s main restaurant. For additional fees, matching beverages can be included along with the keys to the room for the rest of the night along with breakfast the following day. Dinners will take place at set times, beginning at 6pm with guests vacating the room at 10pm.

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FOR FURTHER INFORMATION

Gives new meaning to the term ‘In-room dining’

10 HM The Business of Accommodation


THINGS YOU NEED TO KNOW 11

School’s in at ARMA digital hospitality campus More than 30 digital business certificates ready to tackle

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THE AUSTRALIAN REVENUE MANAGEMENT ASSOCIATION has reported a massive uptake in its recently launched eSkillsHUB training system by furloughed and retrenched hospitality workers. The eSkillsHUB system, now available via the ARMA website, offers more than 30 digital business certifications, which can be completed entirely online and at the pace of the applicant. Course topics include Social Media Marketing, Writing for the Web, Social Brand Building, Objection Handling in Sales, Relationship Building, Customer Relationship Management and many more. ARMA Founder and CEO, Melissa Kalan, says studying can be a good distraction and a productive use of time while isolated at home. “None of us want what is currently happening in the world, and while acknowledging that the significance of the impact has affected people in different ways, this can be an opportune time for many of us to catch up on training and upskilling so you can be better prepared to maximise opportunities in the recovery.” Kalan added training should always be an important investment for hoteliers but acknowledged it was often the first thing to be cut as a cost-saving measure. “The current situation is unprecedented and our industry is suffering heavily, so where possible, if a property can invest in their staff they will of course reap the benefits and returns over time, however – with growing and affordable quality training solutions, many professionals can also invest in their own education and career direction.” Access to the eSkills portal is now available at a heavily reduced rate of US$47 for 12 months access.

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hotelmanagement.com.au 11


THINGS YOU NEED TO KNOW

12

W Melbourne sets December 2020 opening date Marriott says the hotel will shake up the city’s hospitality scene MARRIOTT INTERNATIONAL IS set to continue the return of its W brand to Australia as its second property in Melbourne confirms it will open doors to guests from December 2020, the company said. Starring at the centrepiece within Cbus Property’s AUD$1.25 billion Collins Arch project, the 294-room, 29 suite property will adopt an exciting ‘reveal to revel’ operating ethos which will reflect the city’s history and culture through interior design and visually striking public spaces. At the upper end of the hotel’s accommodations will be the palatial ‘Extreme WOW’ suite on the 15th floor which will include a 40 square metre balcony overlooking the Yarra River along with quirky perks such as a retro jukebox along with a private and well-stocked W MixBar. Public facilities will include four restaurants and bars, led by the 30-seat Japanese fine dining outlet, Warabi. All day dining will be available at Lollo, while two bars will be on show in the form of Curious and Culprit, the latter being a hybrid café-meets-wine bar which will be open throughout the day. Guests will also be able to access a fitness centre, day spa and indoor swimming pool complete with DJ booth, poolside bar and a gold roof.

The lobby and entrance at W Melbourne

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Quest presses ahead with Robina grand opening Launch comes ahead of gradual resumption of Gold Coast tourism

New rooms and meeting facilities for Hilton Surfers Revamp aimed at boosting business events at the property

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12 HM The Business of Accommodation

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BARELY A YEAR since joining the Schwartz stable, Hilton Surfers Paradise has revealed it will undergo a major refurbishment which will see a revamped lobby area, expanded MICE facilities and nine new guest rooms. Billed as the biggest makeover the property has seen in its eight-year history, the work will be carried out over multiple stages, kicking off with the addition of a casual bar, dining area and art gallery as part of a reworked lobby. The hotel will double its capacity for meetings and events, with its new, pillarless Promenade Room able to cater to up to 160 guests, while meeting rooms have been increased from two to four. Higher up, the hotel will add a further nine guest rooms as part of a makeover of the 15th floor, with a new Executive Lounge also set to open. The former Executive Lounge will make way to become the new guest accommodations, with no word yet on the precise location of the new lounge.

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EXPECTATIONS ARE HIGH that the opening of Quest Robina will coincide with a gradual kickstart and return to life for the wider Gold Coast corporate and leisure sector, the company said, with the property now open to guests. The newest addition to the Quest network was developed by Pellicano and consists of 80 serviced accommodations across eight floors, ranging in size from studio to twobedrooms and each featuring the brand’s new-look apartment design and features. The property is situated near Robina railway station, next door to Robina hospital and near local shopping and transport links to Brisbane. Guest facilities include a lap swimming pool, fitness centre along with en and read w op yt conference and business no ow s i a facilities. Experienced Quest franchisees, Josh and Fleur Nadzielski, will open and run the property, having recently relocated to the Glitter Strip from their previous roles running Quest Griffith in regional NSW. Ques t

One of Hilton’s new guest rooms on the 15th floor


Dear Hoteliers We Need to Talk After 35-years designing your hotels we understand what you’re going through. COVID-19 has been very, very scary for hospitality but as Dr Norman Swan says ‘We will get through this!’ Here at the pointy-end of new developments we’ve been busy preparing a Pandemic Future-Proof Plan to help our colleagues transition out of this crisis. We’ve got 120 completed hospitality projects under our belt & hopefully it’s obvious by now that we design with an operational viewpoint. Don’t worry we can fast-track things and your recovery plan will be tailored to your needs and budget. Hotel, F&B and Event Venues need to maximise functionality and enhance the guest experience to be ready for the next phase. But of course, you know this.

So, how can CHADA help? Design to champion and accommodate new behaviours FF&E layouts for social distancing measures – guest use and servicing - adaptable and able to revert to normal occupancy Signage, wayfinding & brand messaging to reflect new layouts Establish a new design aesthetic that signals clean and is cleanable Create a low-touch environment across all spaces Integrate interior and exterior spaces Re- think design of food service including buffet service Advise on speedy refurbishments while occupancy is low Venues that are able to re-gain guest confidences will lead the way because after all we all want normality, comfort, and familiarity whilst feeling safe. With our know-how and experience we can help achieve this for you. Don’t stay isolated...you’ve got us. All the best

Rick & Juliet Partners of CHADA rick@chada.com.au juliet@chada.com.au www.chada.com.au


OPINION

The push to extend JobKeeper

The recovery process for the tourism industry will unfortunately be a long one, writes Accommodation Association CEO, Dean Long.

THE ACCOMMODATION ASSOCIATION is one of many organisations predicting [that] a recovery will take at least 24 months. With our borders closed to the world, we now need state governments to follow the advice of the Chief Medical Officer of Australia and open their borders to all states. The Accommodation Association has been in dialogue with state and federal governments on the impact of COVID-19 and we will continue to do so on the matters of Industry Relations, JobKeeper and the opening of state borders. We know that the reform and support that has occurred during the pandemic is the reason we continue to operate in some form. The Accommodation Association was vocal early on the need to replicate employee assistance programs. Our position took the best of the New Zealand and German employee assistance packages and we were proud to see these elements in the JobKeeper program. It was

also pleasing to see the impact this program had on our industry. In our sentiment survey that was completed in partnership with AHS / Horwath HTL advisory, we found that 91% of hotels ranked JobKeeper as the most critical support measure that allowed them to continue to operate. We have also ramped up the pressure on the government to recognise that we have a longer road then other sectors to regain our losses of the

last three months. In our submission to the federal government, we are calling on them to extend JobKeeper until March 2021. This extension is critical and will allow hotels to stay connected to employees while providing assistance to businesses, meaning our recovery can be quicker than if JobKeeper was ceased in September. It is clear the government and opposition, at the federal level, are keen to support our industry, but we will need to be united in our request from 14 HM The Business of Accommodation

every hotel in the country. If you wish to support the campaign, head to www.aaoa.com.au/KJK to send your MP an email or letter on why your job is essential to you and your family. I wish to finish this column reminding people that we are in this together. Over the last few months, COVID-19 has put unprecedented strain on our families and our overall physical and mental health. We have all been saying that we are in this together and I want to assure you that we are. As a sector, we will be stronger in the long term. If you need help, make sure you reach out to organisations that can assist you such as Beyond Blue and Lifeline. Dean Long is the Chief Executive Officer of the Accommodation Association.


OPINION

Working together through COVID-19

There’s no doubt the last few months have wrought havoc on not only our industry, but the nation and the world, writes TAA National CEO, Michael Johnson.

THE COVID-19 OUTBREAK has been described as a once in a hundred year event and we all certainly hope nothing like it happens again in our lifetimes. However, green shoots of hope are finally starting to appear – especially here in Australia where so far we have had such great success in combating the pandemic. But that has come at a huge economic cost to our sector and the wider community. April and May saw the closure of hundreds of hotels across Australia – 400 of our best hotels closed their doors in that month alone and thousands of staff were out of work. Many other accommodation hotels have held on by providing a muchneeded public service. They did this through providing rooms for our heroic frontline medical workers and those returning Australians in need of quarantine. While our industry is still in dark times, there is finally reason for some hope.

by drought and bushfire even before the COVID-19 pandemic hit. Sadly, things won’t be the same for a long time – if ever. Regional NSW also received a welcome boost recently with news the State Government reopened the snow fields from 22 June – this was very welcome news for our members in the Snowy Mountains area and came after strong representations from TAA. One thing which has impressed me during this ongoing crisis is the way in which the industry has worked together. The TAA branches in the various states and at the national level have been working closely with State and Federal Governments to ensure the voice of the industry is clearly heard. We will continue to do so until the good times come again. And rest assured they will. Back in early February, just after the travel bans on China were put in place, TAA National Chairman Martin Ferguson said somewhat prophetically – at the TAA NSW Chairman’s Drinks

first step to the return of international travel. And something fully supported by TAA. Hopefully, restrictions will continue to be safely lifted over coming weeks and months and we will get back to something approaching a ‘new normal.’ Health needs to come first and none of us want to see a second wave of COVID-19, but we also need to bring in balance and kick-start our economy – especially in regional areas which were ravaged

the advocacy efforts and making the key representations that produce practical and financial results for our members.” Yes this has been a testing time. And it is not over yet. But rest assured, as Martin said, we are a resilient industry and we will overcome this. Together.

Restrictions are starting to be lifted, allowing regional travel again for the first time in many states and territories including NSW, Victoria and Queensland. In NSW, this has come at the same time as hotels are allowed to open to 50 people – plus an additional 50 per dining area. This gives people travelling to our beautiful regional areas and cities the chance to relax and enjoy a meal – such a big part of any getaway. There is also growing talk of a Trans-Tasman bubble – which could see flights between Australia and New Zealand – a welcome

– that our industry was heading into ‘unchartered waters.’ “We face an uncertain road ahead, but we are a resilient industry,” he said on 6 February at the gathering at the Sheraton Grand Sydney, Hyde Park. “This, coupled with comprehensive preparedness and targeted investment will ensure we navigate the unpredictable times ahead together. The next 12 months will be a testing time, there is no doubt about that. “But we will remain at the forefront of the policy debates, leading

Michael Johnson is the Chief Executive Officer for Tourism Accommodation Australia at both the National and NSW levels. hotelmanagement.com.au 15


OPINION

The world we now live in

An exceptionally steep learning curve awaits

Even with strong government support helping it to walk, New Zealand's tourism industry must first learn to crawl again, writes Sally Attfield.

The question now is essentially – where to from here? Former Les Clefs d'Or Australia President, Peter McBrearty forecasts the new world hotel concierges must navigate.

IT’S ALMOST UNFATHOMABLE to comprehend how much COVID-19 has decimated the tourism and hospitality industries in such a short period of time—both here in New Zealand and globally. Hotels are suffering deeply as a result and I know that many hoteliers have had to have some tough conversations and make some hard decisions in order to get through this initial stage, with still more to come. A return to anything like the previous level of international tourism could take three to five years. In the short-term, domestic tourism will be actively encouraged — but Finance Minister Grant Robertson has warned that the industry must evolve, because for the medium-term, visitor numbers will not return to previous levels. Our recent sentiment survey of TIA hotel members showed that rent and lease relief is also desperately required by the sector in order to survive the coming 24 months. Thankfully, PM Jacinda Ardern has reiterated that the Budget measures were only an initial response for the tourism industry. Hopefully by the time you’re reading this, more announcements will have been made to support the hotel sector. Tourism New Zealand has been tasked with leading a project to reimagine tourism. As a sector, we must ensure that we contribute to this. This also presents an opportunity to rethink and rework some of the issues that were creating challenges—such as local funding.

WE ARE ALL well aware that unfortunately, Australia’s hotel and tourism industry has been one of the sectors most severely impacted by the COVID-19-induced closures and travel restrictions. Even as we begin to enter what we hope will be the post-pandemic phase, many of us find ourselves wondering how our own properties, careers, and in fact the overall nature of travel is likely to be affected and transformed. With the major restrictions implemented on both interstate and international travel, many of our properties understandably elected to close temporarily, some switched to accommodating quarantined arrivals, while others continued to operate with dramatically reduced staffing levels. Some Les Clefs d’Or’s members have been stood down, while others have continued working (in some cases assisting in Reception, as Duty Managers and across other departments), although fortunately thus far all remain attached to their respective properties. While many standard practices will need to be reviewed, including luggage handling, check-in procedures, valet parking, the impact on hotel dining operations and more, there is also the potential for fivestar properties and their already high cleaning and hygiene standards to benefit from a perception they are a safer accommodation option than some of the alternatives, such as short term rentals. Similarly, our limousine services may well be seen by guests as a vastly preferable

their own community when they walk past the empty retail outlets where cafes, restaurants, bars and shops have not been able to restart their businesses. As tourism gears up again, this will hopefully mean our international visitors will be welcomed with open arms.

is likely to prove invaluable to us over this time. It will be a period of great change, but allowing for the challenges ahead, a little luck and a lot of teamwork – hopefully it may turn out that rumours of the demise of the hospitality industry in Australia were just a little premature!

While both the Auckland Accommodation Provider Targeted Rate and proposed Queenstown bed tax have gone away temporarily, we need to ensure the hotel sector is not targeted in the future when demand returns. Another area that requires re-thinking is the environment in which short-term accommodation operates – can this be clarified and regulatory environments be applied consistently across the country? Finally, and regrettably, communities will perhaps now better understand the value that a vibrant and busy tourism sector brings to

Sally Attfield is the chief advocate for the accommodation industry as Hotel Sector Manager at Tourism Industry Aotearoa. 16 HM The Business of Accommodation

option to crowded airport shuttle services or taxis. And while we may possibly need to pivot from buffet dining to a la carte and enhanced inroom dining packages - many of our properties have already shown an impressive ability to respond quickly, flexibly and with real initiative. Many unknowns remain, but one thing for certain is that all of our members will be embarking on an exceptionally steep learning curve. Our ability to quickly exchange knowledge within Les Clefs d’Or’s cross-brand membership network both locally and internationally

Peter McBrearty is a former President of Les Clefs d’Or Australia and Chief Concierge at The Langham, Melbourne.



PROMOTION

LEADERSHIP

The Blue Mountains International Hotel Management School (BMIHMS) is recognised across the world as one of the best in the industry, from entry level education to short courses and the coveted Master of Business Administration (MBA). Amongst its illustrious alumni are some of the most senior hoteliers around the globe, including several prominent leaders in Australia.

18 HM The Business of Accommodation

Leading alumni: Shaizeen Contractor, Caspar Schmidt, Scott Boyes, Erica Blythe and Tish Nyar are some of BMIHMS' most prominent graduates


COVER STORY

T

here is no doubt this is a challenging time for most of us, but with challenges come opportunities. Many people are using the downtime to upskill themselves, preparing for when the hospitality industry is back into full swing. The Blue Mountains International Hotel Management School (BMIHMS) has a long and proud history of working closely with industry to deliver the very best education to professional and aspiring hoteliers. Part of Torrens University Australia, the fastest growing and most progressive university in Australia, a positive and promising challenge is presenting itself. And we are ready.

ON-DEMAND SHORT COURSES

BMIHMS’ short courses are available on-demand, fully online and enable quick bursts of learning. They are one to two hours in duration, often clustered into themes. To make things easier, short courses can be bundled and, if combined with a facilitated assessment of learning, form part of a stepwise approach toward a Graduate Certificate, Graduate Diploma or Master of Business Administration (MBA) in International Hotel Leadership. Learners can choose the time and day of their study, building toward their end goal in their own time in a place that suits them. “In our 30 years, industry has been very supportive of us and this is why we decided to make our short courses available for free to our industry partners,” said BMIHMS General Manager, Jerome Casteigt. “Our hope is that despite the difficult decisions many have been forced to make, displaced industry people can focus on sharpening their skills, in readiness for a return to normal operation, even stronger than before.” BMIHMS Associate Professor and Director of Innovation, Industry and Employability, Dr Justin Pierce, reports that since the lockdown, 6,558 new learners have signed up with Torrens University Australia's suite of on-demand short courses and have amassed an impressive 8,448 hours of learning between them. The most popular courses have proven to be ‘Negotiation’, ‘Having Difficult Conversations’, ‘Emotional Intelligence and Leadership Styles’ and ‘Facilitating Change’. Beyond these, BMIHMS also recommends ‘Building Your Leadership Brand’, ‘Communicating Though Organisational Change’, ‘Creating Effective Teams’, ‘Design Thinking’ and several other hospitality-specific courses. There are presently 47 short courses available with more on the way, including a new crisis management study program about to be released.

ILLUSTRIOUS ALUMNI

When it comes to why someone should sign-up with BMIHMS, be it for a short course or all the way with an MBA, some of the illustrious alumni certainly tell the story. Some industry-leading graduates include ICC Sydney Director of Finance and Administration, Erica Blythe; Accor Vice President

“In our 30 years, industry has been very supportive of us and this is why we decided to make our short courses available for free to our industry partners.” BMIHMS General Manager, Jerome Casteigt

HM readers can study online now for free Readers of HM can register and find out more about the BMIHMS suite of short courses at this link: https://bluemountains.torrensonline.com/ and use the coupon code TUABMHMM2020 upon check out to access and take the courses free of charge. Operations – NSW and ACT, Scott Boyes; Hilton Hotels’ Senior Commercial Director – Australasia, Shaizeen Contractor; TFE Hotels’ Director of Operations – Australia and New Zealand, Tish Nyar; and QCC Collection Founder and Owner, Caspar Schmidt. They have fond memories of their time at BMIHMS and credit the quality of their education as the first stepping stone to the successful industry careers they hold today. “The Blue Mountains International Hotel Management School was perfect for me,” Boyes said. “I was immersed in a hotel environment and as a result I had the pleasure of living, studying and working with great friends. It was a great precursor for my career and a time I reflect on fondly.” Blythe said: “Looking back over two decades when I completed my Advanced Diploma in Hotel Management, it is clear to me that this course ignited my passion and opened the door to the exciting world of hospitality that has been a consistent thread throughout my career. “The high-quality teaching and learning environment at the Blue Mountains International Hotel Management School planted a seed that I’m privileged to have seen grow into a rewarding career path,” she said. Contractor said the Blue Mountains International Hotel Management School “gave me the foundations of both theoretical and practical experience to follow my passion into hospitality”. “While we worked hard at school, we had a lot of fun and learnt a lot on the way,” she said. “The rounded-out experience of F&B, front office operations, plus the theoretical understanding of sales and marketing to create demand and finance to understand a P&L and the KPIs that drive a hotel’s performance was very valuable. “Most importantly as an alumni we remain close and help each other out, no matter where in the world we are. “We all continue to support the school in enhancing its curriculum based on the latest industry trends and look forward to continuing to see the school be a leader in hospitality and tourism education,” she said. Schmidt said BMIHMS “is the perfect place to start your career”. “You get a solid educational background and knowhow of the industry all while you grow your career in hotels via your placements,” he said. “Graduating from school made me stronger and far more determined to where I wanted to go in my career and it helped me in my career over the years.” Nyar said: “The curriculum that covered all aspects of hospitality from the ground up was one that laid down the foundations of my career. “I still look back on a number of lessons I learned in both the practical and theory sides of the business and use them in how I help train and develop my own team and continue down my development. “I know I look back fondly at the lessons I learned and a number of the friendships I developed while studying at the school, not to mention the extended Alumni network where I still find I have something in common to connect with industry colleagues alike to this day including some of the staff past and present,” he said. n hotelmanagement.com.au 19


PRESENTS

Zoom webinars have become the way businesses communicate during lockdown

Industry meets with the Minister A united front representing the accommodation industry ventured to Canberra recently to meet with Federal Minister for Trade, Tourism and Investment, Simon Birmingham

THE CEO OF THE Accommodation Association, Dean Long, was joined by Australia’s accommodation industry’s leading employers – Julian Clark (Lancemore), Simon McGrath (Accor), Trent Fraser (Choice Hotels Asia-Pac), Chris Sedgwick (TFE Hotels), Leanne Harwood (IHG), Heidi Kunkel (Hilton), David Mansfield (Quest) and Barry Robinson (Wyndham) to meet with the Federal Minister for Tourism, the Hon. Simon Birmingham. The Minister was provided a detailed briefing on the significant impact COVID-19 has created for our sector and key policy settings that must be enacted to fast-track the recovery. The industry advocated for a competitive domestic airline industry with at least two carriers, exemptions for FBT on domestic bookings, maintaining a working relationship with China and the continuation of JobKeeper post September to support employees in a suppressed operating environment. The Minister detailed that governments across Australia have a critical role in ensuring that demand is rebuilt as quickly as possible and this includes re-opening state borders when it is safe to do so. The Minister also confirmed that the Prime Minister is aware of the significant strains on our sector and is committed to working with the sector to ensure appropriate measures are in place. The Accommodation Association said the outcome of this meeting had been reinforced by the Treasurer and Prime Minister’s offices, National COVID Coordination Commission and Federal Treasury.

Simon McGrath, Accor

Chris Sedgwick, TFE Hotels

Leanne Harwood, IHG

Barry Robinson, Wyndham Destinations

Heidi Kunkel, Hilton

David Mansfield, Quest

Trent Fraser, Choice Hotels Asia-Pac

Julian Clark, Lancemore Group

New Olivia Learning partnership Online courses now available to enhance upskilling

THE ACCOMMODATION ASSOCIATION has partnered with Olivia Learning to provide engaging and motivating online courses. These cutting-edge digital learning courses have been extremely popular as it provides an opportunity for accommodation operators to upskill their team to enhance the current underpinning skills during down time. Visit our website to view the extensive range at https://www.aaoa.com.au/

20 HM The Business of Accommodation

Industry webinars proving popular Thousands tuning in for online tutorials

SINCE THE END of April, our webinar series has seen over 1,000 participants nationwide listen to Anna-Louise Bouvier, Ted Horner, Natalie O’Brien AM, David Mansfield and Damian Little. These webinars have covered important issues including technology innovation, JobKeeper, mandatory code, managing your mind and soul and the results of the AHS / Accommodation Association Sentiment survey.

The Workplace Relations Corner As the accommodation sector grapples with staff redundancies, AA’s Noel Teskey puts forward a key point worth considering. MOST ACCOMMODATION OPERATORS are expecting the impact of COVID-19 to be long-term and see no options other than to reduce staffing levels. It is important to keep in mind that employee protections from unfair dismissal laws have not been relaxed. Under the legislation, a redundancy is genuine when the employee’s job is no longer required to be done. If the intention is to reinstate the position after the pandemic, the risk of a successful unfair dismissal claim is heightened. Other conditions apply to genuine redundancies. Employers are advised to seek advice if in doubt about breaching the unfair dismissal laws.


KEY NEWS

Expert panels for industry recovery

Self-assessment and information tools now available

Ron De Wit, AHS Advisory

Dean Minett, Minett Prime Square

Roger Permezel, ID Advisory

Kerry Chew, nem Australasia

Mark Griffiths, nem Australasia

Michelle Matthews, LSV Hotels

IN RESPONSE TO the challenges faced by accommodation operators across Australia as a result of COVID-19, a group of industry experts have come together to provide assistance to those who previously may not have found cause to engage professional advisors. The group, comprising Arnaud Millecamps and Dean Minett from Minett Prime Square; Kerry Chew and Mark Griffiths from nem Australasia; Michelle Matthews from LSV Hotels; Roger Permezel from ID Advisory and Ron de Wit from AHS Advisory have prepared a selfassessment tool for independent operators and are now hosting a series of webinars to guide operators through this and provide advice. These webinars can be viewed and downloaded from the Accommodation Association website at www.aaoa.com.au/. The series is being facilitated by the Accommodation Association, however will be open to all industry operators and associations across the board in coming weeks. In addition, The Accommodation Association has been working closely with our members and partners to schedule an exciting series of webinars to keep members informed throughout this difficult trading period. Past webinars include updates on the Government’s JobKeeper payment and the Australian Hotel Industry Sentiment Survey, in partnership with AHS Advisory and Horwath HTL. Upcoming webinars to look out for will include topics such as ‘Managing Chargebacks and Disputes’, ‘Optimise your TripAdvisor profile’, ‘Operational series for SMEs’ and updates from state marketing bodies.

Hotel Industry Survey Findings aimed at supporting industry advocacy on recovery THE ACCOMMODATION ASSOCIATION partnered with AHS Advisory and Horwath HTL on two Hotel Industry Sentiment Surveys during April and May to build an understanding of the impact of the government ‘hibernation’ strategy on the accommodation sector. The survey data has been instrumental in assisting the Association to develop our industry policy responses as move into the recovery phase. Survey outcomes such as the importance of government stimulus measures, your willingness to open F&B facilities and at what settings you will open, all combine to help to inform government and drive change. The most recent survey had 286 properties contribute, providing the only accommodation industry specific tracking data on the operational and employment outcomes of government measures during COVID-19.

hotelmanagement.com.au 21


PROMOTION

ACCOR PARTNERS WITH AXA The recently announced strategic partnership between Accor and AXA will see medical support provided across the Accor hotel network.

Look out for the Accor ALLSAFE label next time you visit an Accor property anywhere in the world

22 HM The Business of Accommodation

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Accor’s new cleaning standards will be independently audited by Bureau Veritas

UNDER THE NEW global agreement, fully qualified physicians and medical specialists will be available to Accor guests 24/7 worldwide. In the first instance, this will be via tele-medical consultations. If further action is needed, the hotel teams and AXA will be able to expedite this for the guest.

ALLSAFE

The safety of its guests and teams is Accor’s utmost priority and now, we have elevated our protocols even further. ALLSAFE is our recognised brand label communicating our commitment to upholding these elevated cleanliness standards, which has some of the most stringent cleaning standards and operational protocols in the world of hospitality. The ALLSAFE global cleanliness and prevention standards have been developed with and vetted by Bureau Veritas – a world leader in testing, inspections and certification. It covers: 1. Enhanced cleaning protocols 2. Enhanced staff training 3. New guest contact measures 4. Enhanced food safety measures 5. Global medical support for all guests in a partnership with AXA There will be 16 protocols including an ALLSAFE Officer in every hotel, additional training for teams, TGA-approved enhanced cleaning protocols and Perspex screens for reception desks and cashier stations. Simon McGrath, Chief Operating Office, Accor Pacific said: “High standards of hygiene and cleanliness are already a given in all of our hotels, all over the world. But as our hotels re-open, we will go even further with the implementation of additional cleaning standards and operational measures that draw on our long-standing experience. “The health, safety and wellbeing of Accor’s teams, guests and partners remains our top priority. Our mission is to protect our guests and our teams, and to reassure travellers that they can travel safely and confidently to an Accor property. We hope to be welcoming our guests back soon to a clean, safe and trusted environment.”


ACCOR NEWS

LEADING THROUGH ACTION Accor continually innovates to deliver the best service and guest experience in the industry.

The first of two guest concerts at Sofitel Sydney Wentworth featured a line-up of Sydney talent including RnB cover band, Soul Nights

THE MAJORITY OF Accor hotels have remained open throughout lockdown to support the Australian community, providing essential accommodation for frontline health workers, vulnerable families, quarantined guests and people displaced by the recent bushfires. Throughout, Accor has been delighting and surprising those guests in mandatory quarantine with acts of kindness, exceptional service and unique entertainment. Just some of the activities included a recent performance at the Sofitel Sydney Wentworth from leading Opera Australia Soprano, Jane Ede, who performed classics such as ‘O Mio Babbino Caro’ by Puccini. At the Pullman Adelaide, General Manager Llewellyn Wyeth organised a performance for guests, attended by the Premier of South Australia, Stephen Marshall, and South Australia’s Chief Medical Officer, Nicola Spurrier. The entertainer was locally-born international cabaret superstar Hans (a.k.a. Matt Gilbertson). Llewellyn commented: “We are doing everything we can to ensure our guests have a comfortable and pleasant stay with us, despite being confined to their rooms. Our team remains focused on providing a great

BUT WHAT DOES THE FUTURE OF HOSPITALITY LOOK LIKE?

McGrath continued: “We will always continue to uphold our promise to provide the best guest experience. Accor has a wonderful and diverse brand portfolio, brilliant teams and a robust network, which both appeals to and reassures our guests. Following the lockdown, we expect people might want to travel differently, in a more responsible and safe way and to spend their time and consume differently, with a different mindset. This could include looking for more meaning and authenticity, shying away from services and products which are generic and undifferentiated. At Accor, we are working collectively to find – or even invent – the right answers to adapt to this new world.” Jane Ede was joined in her performance by Accor’s own talented singing trio, Jodie Goodwin, Josephine Stark and Olivia French.

“We will always continue to uphold our promise to provide the best guest experience.” Accor Pacific COO, Simon McGrath guest service. After all, taking care of others is at the very heart of what we do every day.” Accor Pacific Chief Operating Officer, Simon McGrath, said: “Our hotels are providing thoughtful experiences for guests. They are not only providing accommodation, but also pastoral care and kindness. I couldn’t be more proud of our incredible teams.” hotelmanagement.com.au 23


PRESENTS

TAA National CEO, Michael Johnson

Hotels are investing in ways to reduce power usage

Government rejects King Review red tape hurdle Industry already well ahead of emissions curve

TOURISM ACCOMMODATION AUSTRALIA (TAA) has welcomed the Federal Government’s response to the King Review, which did not support the report’s recommendation to add an unnecessary compliance burden on Australian hotels. The ‘Report of the Expert Panel Examining Additional Sources of Low Cost Abatement’, chaired by Mr Grant King, included a recommendation that the National Australian Built Environment Rating Scheme (NABERS) and the Commercial Buildings Disclosure (CBD) scheme be expanded to hotels – an expensive policy change that would have done very little to reduce emissions. TAA CEO Michael Johnson said that by avoiding being included in the NABERS and CBD schemes, hotels can continue to concentrate on implementing practical measures to reduce costs and emissions rather than spending even more time and money on appeasing bureaucrats.

“For years Australian hotels have been world-leading in their pursuit for innovative and practical solutions to reduce emissions, which has been driven in large part by rising energy costs,” Mr Johnson said. “From forming Renewable Energy Power Purchase Agreements with energy providers, through to implementing Power Factor Correction Systems and Building Management Systems, Australia’s hotels have been getting on with the job of increasing energy efficiency and driving down emissions. “We commend the Federal Government for refusing to accept a recommendation that would have added unnecessary red tape to hotels, at a time when the industry requires comprehensive assistance from policy makers.”

NSW Premier praises accommodation sector

HOTELS IN NSW have accommodated more than 13,000 people so far under quarantine arrangements introduced at the end of March to help contain COVID-19. Premier Gladys Berejiklian said housing large numbers of international travellers returning to Australia posed a major logistical challenge that has been successfully managed. “Ensuring all returning travellers were quarantined for 14 days in hotels was a key decision that led to NSW flattening the curve,” Ms Berejiklian said. 24 HM The Business of Accommodation

“We know quarantine hasn’t been easy for anyone involved, which is why I’d like to thank the returning travellers as well as the accommodation industry, 31 participating hotels and their staff for adapting at short notice to help us manage this unprecedented situation.” NSW hotels have hosted more than 13,000 guests so far, including 1,059 families with children, housed in serviced apartments. TAA National CEO, Michael Johnson, was proud to stand up for the role hotels have played in the international pandemic disaster.

Pr em ie

a kli eji r e r, Gladys B

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Industry lauded for stepping up in tough times

“We are certainly proud of what our industry has been able to contribute in the fight against COVID-19 by stepping up and assisting with quarantine measures and medical accommodation in this unprecedented situation. “Like many industries and individuals, hotels and staff were required to adapt quickly and with short notice. It is pleasing to see our industry’s ability to meet the highlevel of logistical challenge and with such success,” he added.


WORLD OF TAA

Expected to come into effect in NSW later this year

TAA NSW CEO Michael Johnson said the Code – expected to be released later this year – will finally introduce obligations for hosts, guests, on-line booking platforms and letting agents, as well as a complaints process for breaches. “While the Code has been delayed, it’s been pleasing to see amendments to the Fair Trading Act 1987, Strata Schemes Management Act 2015 and the Residential Tenancies Act 2010 recently commence,” he said. “Owners’ corporations in NSW will now be able to pass by-laws prohibiting short-term rental accommodation within their schemes (in lots which are not the principal place of residence of the host). Further, short-term rental accommodation arrangements of three months or less will not be regulated under the residential tenancies laws. We welcome these moves. Under the new rules, strata bodies overseeing a building can now, with majority agreement, prohibit the use of a host’s non-primary place of residence from being listed on short-term rental websites. However, the rules mean a host can still list either a room or the entire residence when it remains their primary home, such as when a host is away on their own temporary holidays. Greater powers for strata schemes across NSW are now in effect

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THE STATE’S TOP tourism accommodation body says NSW is inching closer to a properly regulated shortterm accommodation sector which would help “level the playing field” for the struggling hotel industry. Tourism Accommodation Australia NSW has led the way in making strong advocacy efforts for the industry in relation to the NSW Government’s Code of Conduct for the Short-Term Rental Accommodation Industry.

Prior to COVID-19 restrictions taking effect, TAA NSW hosted a variety of industry meetings and events to continue its important advocacy work.

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Work continues on Short-term Rentals Code of Conduct

TAA Social Corner

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Tourism & Transport Forum (TTF) recently hosted drinks with the NSW Premier. TTF CEO Margy Osmond is pictured with TAA NSW CEO, Michael Johnson and Andrew French from Rugby Australia. TAA National CEO, Michael Johnson with former NSW Rural Fire Service Commissioner, Shane Fitzsimmons TAA CEO, Michael Johnson (left) and TAA NSW Chairman, Antony Page (right), met recently with NSW Minister for Jobs, Investment, Tourism and Western Sydney, Stuart Ayres.

TAA applauds NSW ski opening Opening comes ahead of July school holiday peak

TAA NATIONAL CEO, Michael Johnson, has praised the NSW Government for its decision to re-open the ski fields from 22 June 2020, saying it was a much needed boost for local tourism operators. “Tourism accommodation operators in regional areas have been doing it tough for some time with first drought, then bushfires and now the impact of COVID-19,” he said. “Hotels and businesses rely heavily on visitors during snow season to generate revenue and offer jobs to local residents during periods like the July school holidays. “Our members in areas like Jindabyne, Perisher and Thredbo are thrilled with this move and already preparing for the influx of visitors from the end of June. Snowboards are at the ready

hotelmanagement.com.au 25


HM Q&A

Self check-in options are popular with Jucy’s techsavvy travellers

PEAS IN PODS What does it mean for Jucy Snooze to become part of the Event Hospitality stable?

E

vent has more than 100 years of expertise in the experiences and hospitality industry, offering us invaluable insight, know-how and the ability to fast track our vision and growth plans for Jucy Snooze through New Zealand and Australia, with potential to expand into other international markets. At Jucy, we are all about giving travellers the green light to have the time of their lives. Working with Event means that together, we can bring this shared passion of facilitating unique experiences to more people. Without the investment from Event, we would only have been able to open a new Jucy Snooze site every few years, and in partnering with Event, our ambition is to be in a position to expand at a much faster rate. It also means that we have access to their significant experience in hotel development, food and beverage, procurement and operations, as well as capital investment and access to new sites in Australia which will allow us to export the Jucy Snooze concept into that market. This may look a

little different to what we originally envisaged in light of COVID-19 but we are positive about the potential. We will be in a stronger position to grow the business and play a part in the recovery of the tourism sector with Event by our side.

Tell us a bit about the story of Jucy Snooze and how the brand has grown in New Zealand?

The Jucy brand started in 2001 as a little backpacker car business in Parnell, Auckland with a fleet of 35 rental cars, before expanding to become a leader in car and camper hire across Australia, New Zealand and the USA. We then diversified to the Jucy Cruise experiences in Milford Sound and then to Jucy Snooze accommodation, including our Miss Lucy’s bar and pizzeria in Queenstown. 26 HM The Business of Accommodation

THE PARTIAL ACQUISITION RECENTLY BY EVENT HOSPITALITY IN JUCY SNOOZE HERALDS AN EXCITING NEW CHAPTER FOR BACKPACKER TRAVEL. AS CO-FOUNDER, COMPANY CEO AND “CHIEF JUCYFIER” TIM ALPE ATTESTS, THE SNOOZE BRAND OF POD HOTELS IS A CONCEPT DESTINED FOR GLOBAL GROWTH, WRITES MATT LENNON.

We entered the accommodation market in 2012 and really disrupted the sector – our capsule style sleeping pods were a first for New Zealand. Since opening our first Jucy Snooze, we have grown and currently have more than 900 beds across three properties in Auckland, Christchurch and Queenstown, with a second Auckland property in development. While we originally set out to target the flashpacker markets, we’ve seen there is a much broader mix of travellers looking for quality accommodation without the hefty price-tag. It’s not uncommon to see a mix of customers from 55-year-old British tourists to the 18-yearold Swedish backpackers choosing to stay with us.

What are the most exciting elements of the Jucy Snooze concept? Jucy Snooze is a unique micro-accommodation option, offering pod style rooms that have changed how people think of budget accommodation. Each pod is comfy, spacious and self-contained and includes everything travellers need. In fact, the concept was refined and


HM Q&A

custom designed following extensive research into what budget conscious travellers want and need and what they don’t. The pods include a luggage storage locker, power supply and a USB charging port, lighting, temperature control, WiFi connection and linen as well as a roll-down blind for privacy. We also offer private ensuite rooms and shared double rooms for guests who prefer their own space.

tried and tested. Our focus as we grow into the future is on continuing to create a recognisable, unique and world class accommodation experience.

What enhancements or improvements might we see added to the Jucy Snooze concept in the future?

How do you think the brand can work in Australia and in what capacity?

We have wanted to move into the Australian market for some time. Obviously, with all that is currently happening across Australia, New Zealand and the world, our plans are on hold, but when the time is right, the locations of the new hotels will be aligned with the distribution of our vehicle rental fleet, which will provide a more seamless travel experience. Just how many Jucy Snooze properties we will see in Australia is yet to be determined, but what is clear is that when we do make the move, we will be able to move a lot quicker in a partnership with Event than we could on our own.

A core element of Jucy Snooze hotels are the common rooms where travellers can mingle and make new travelling companions and meet new friends

In looking toward the future, we always have big ideas but the Jucy Snooze concept has been carefully refined to reflect the accommodation needs of ‘Millennial’ and ‘Centennial’ travellers. This has seen us introduce socially interactive spaces for those who want to connect with others while they travel as well as taking steps to remove some of the traditional pain points for travellers; using technology to allow guests to manage their own check-in process without needing to queue and the ability to access their rooms via a smart device. These same experiences will be part of our future offering. n

‟Just how many Jucy Snooze properties we will see in Australia is yet to be determined.” Alp

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The Juc y co n ce

Being a low cost operator, there is always demand for Jucy products. We have seen continued growth and attraction for budget friendly accommodation and our hotel concept is a perfect example of that. Our room rates are a lot less than the majority, but it is a really funky, cool, clean place to stay. As we take steps to recover from the impact of COVID-19, we believe we will be well-placed to offer travellers a great value, quality micro-accommodation choice that appeals to both international and domestic travellers. We will begin scouting potential locations for the development of the brand in Australia. The first Australian property will need to set a benchmark for the brand, and as such we want to ensure we find the perfect site to introduce Jucy Snooze to this market, so stay tuned.

pt ha sp ro ve

What growth objectives does the brand have for Australia and the wider Australasia region?

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Jucy Snoo ze C EO ,

Tim Alpe – Jucy Snooze CEO

Are there any changes the product needs to make before it expands into other markets?

We’ve got a really good model with Jucy Snooze – a concept that is built on research and has been hotelmanagement.com.au 27


TECHNOLOGY

Can’t find the TV at the Emporium? Switch on the mirror

TELEVISIONS HAVE BEEN SMART FOR A WHILE NOW BUT ONLY NOW ARE THEY BECOMING CLEVER, WRITES MATT LENNON.

IN PLAIN SIGHT

D

isguise is a cornerstone of magic and illusion. The art of deceiving or misdirecting a viewer into thinking there is more to something than meets the eye has captivated audiences for centuries. Take master illusionists like Harry Houdini or David Copperfield. The key is either to make your audience believe they are seeing something that isn’t there or seeing something that is there in an entirely different way. Houdini was able to make a fully-grown elephant disappear in a theatre packed with people. How did he do it? By making the audience believe only what they were seeing and only in what they thought was physically possible. In the land of hotel televisions, disguise is an art form which has further enhanced the evolution of an otherwise humble but necessary piece of technology. There would be very few hotel rooms on Earth not offering a television of some size, but in Brisbane, it would be reasonable to think a five-star property would certainly contain one in plain sight. Enter, The Emporium South Bank. On entry to the room, nothing in particular stands out beyond the standard of luxury at hand. The first signs of curiosity may come from finding a standard remote control on the bedside table and wondering where the actual television is. You could be forgiven for opening up a closet or cabinet or two in search of it before thinking it must work simply by pressing the ‘on’ button. 28 HM The Business of Accommodation

“There is no reason the TV couldn’t offer more visually pleasing content than simple tv channels or guest services.” Michael Bromley – Sony Professional Solutions

Misdirection at its finest. Staring back at you, quite literally, will be an LG UD 4K Smart Panel built within a custom mirror compound hanging on the wall – an entirely bespoke job commissioned by the Emporium’s management, the Anthony John Group (AJG). Complete with gold frames, the mirrors were constructed in China and shipped to Australia complete with custom wall mounts to suit the Emporium project. Forget bezels, the frangipani frame completes the disguise and the illusion of making the mirror seem nothing more than that. The television was quite literally staring back at you the whole time. Despite being embedded within the mirror, the LG televisions are 55” V-Screen Ultra Series smart panels, specially built with the reflecting mirror surface over the TV monitor. A wall bracket allows guests access to LAN connectivity, along with HDMI panels, a USB slot and builtin WiFi. An impressive device and one which is sure to surprise and delight even the most experienced traveller. Another leading TV manufacturer competing in the arena of misdirection is Samsung with ‘The Frame’ catering to the more artistic eye. Designed to convert any space into an art gallery, the device would not look out of place hanging in some of the world’s most famous and revered art institutions such as the National Gallery of Australia, the Guggenheim or even the Louvre. Available with a white, beige or walnut wooden border, The Frame showcases 100 works of art specially commissioned by Samsung from more than three-dozen creators working across realms including landscape, action, illustration, architecture and more. Completing the illusion is the No Gap wall mount, which removes cables and wires from view.


TECHNOLOGY To the untrained eye, Samsung’s ‘The Frame’ blends into any art gallery

Samsung’s ‘The Frame’ in Art Mode

Unlike most televisions, the traditional black screen indicating the device is off has instead been replaced by a new ‘Art Mode’ which brings up the user’s chosen artwork. An inbuilt brightness sensor also allows The Frame to read a room’s light level and adjust to suit, while motion sensors turn the TV off when nobody is in the room. Samsung’s Frame is available from 43” up to 75”. Disguising a television is not without challenges, particularly for a device in a public setting, as the question of how and where to incorporate plug-in adaptors becomes an issue for hardware designers. One way manufacturers are working around this is adding more functionality and connectivity via smartphone apps which can control the television and its content. Sony Professional Solutions Business Development Manager, Michael Bromley, said it is now becoming more important for a hotel TV to do more than just show TV content. “It is the one piece of furniture in a room that is branded and that can be easily, with the right platform, be customised to every unique user’s preference. Whether that’s a personalised welcome message, pre-determined customer tv and audio preferences or artwork, creating an experience that either mirrors or exceeds the customers own home experience is more important and easier to do than ever before. I can certainly see art becoming more accessible,” he said.

Philips’ Signature range offers ambient lighting behind the unit, which works with Philips Hue lighting to effectively extend the screen

Sony Pro Bravia are Android-powered 4K UHD TVs that can integrate into complex IPTV networks or smaller standalone systems,” Bromley added. “The Bravia itself can tap into the world of art apps in the android TV store, stream content via HTML5 or use the internal media player so that content can be looped from USB or network locations. With more complex IPTV installation, there is no reason the TV couldn’t offer more visually pleasing content than simple tv channels or guest services.” Sony’s range of bespoke television units also includes the Chrystal LED – the world's first micro-RGB LED video canvas – which can display works of art in 8K resolution. The concept goes further still. Westan Australia – the official distributor to the hospitality industry of the Philips Professional Display Solution – has worked on projects for hotels where a television has been built into a bathroom mirror – for guests eager to maintain their place in their chosen program while making use of the room facilities. The ‘Proofvision’ concept is slightly more heavy-duty as it needs to withstand the presence of water without suffering any damage or causing any potential risks to guests. It is available in sizes ranging from 24” up to a living-room sized 55” screen. Staying with Philips, a number of exciting enhancements are on the way for the company’s Philips MediaSuite, with greater levels of flexibility and integration of room controls and user apps built in to essentially transform the television into an ‘Infotainment’ hub of information and entertainment. A forthcoming update for the portal will see the integration of Google Assist within the software itself, allowing guests to request hotel services and learn more about local attractions and nearby dining venues. This upgrade can also be configured with other hotel departments including housekeeping, maintenance, reception and the concierge desk. “With the introduction of Google Assist in our next update, our remote now comes with a button to allow guests to request services. “Google, show me all the restaurant near my hotel,” will becomes a whole new level of service,” said Westan Australia Hospitality Channel Manager, Richie Cheng. Televisions are rapidly adopting the principles of misdirection. What the eyes see and the ears hear, the mind believes. Look closer and think again. n

All Sony Bravia models utilise the same Android operating system to ensure consistency in system compatibility with newer models hotelmanagement.com.au 29


ROOMS DIVISION

CLEAN MAINSTREAM MEDIA WAS RIGHTLY LAMPOONED FOR LABELLING AUSTRALIA’S QUARANTINE HOTELS AS ‘PRISONS’ BASED ON A FEW SOCIAL POSTS ABOUT THE STANDARD OF LIVING, INCLUDING AIR QUALITY. WHAT WASN’T REPORTED WAS THAT THESE HOTEL HVAC SYSTEMS ARE IN FACT BETTER THAN WHAT MOST OF THOSE COMPLAINING WOULD HAVE AT HOME.

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s we all know, dozens of hotels across Australia have seen their normal operations pivot in recent months, taken over by the Federal Government and put to use as quarantine centres as part of measures to fight the spread of COVID-19. The move saw thousands of Aussies returning from all corners of the world accommodated for the virus’ two-week incubation period – a move which played a major role in ‘flattening the curve’ and preventing a mass outbreak. Depending on where they were placed, some guests have had access to balconies and the fresh air that comes with that. But for others, however luxurious their new surroundings were, the fortnight saw them confined 30 HM The Business of Accommodation

to quarters largely taking in what emerged from their room’s air conditioning units. Perhaps unbeknownst to them, the standard of technology in place across hotel HVAC systems these days meant this air was just as good as the fresh air they would have had outside. Hotels have continued to invest heavily in the development of these systems, with one advancement now making its way into Australian systems being bipolar ion technology. This system works by continuously disinfecting and decontaminating air sourced from outside as it is delivered into rooms. Makers of this technology say it is capable of neutralising viruses in the air, including COVID-19. According to a 2017 white paper from virologist Dr John Oxford and Dr Philip Tierno from New York University School of Medicine, the technology works by producing bipolar ions which attach themselves to airborne viruses, odours and pollutants, rendering them inactive. The bipolar ions intercept infected particles, causing them to agglomerate and fall out of the air, actively reducing microorganisms that collect on surfaces including bacteria, fungi, mould, spores and airborne viruses including coronavirus. And as long as air is flowing to that space through properly maintained systems, these ions will continue to saturate their space and keep the air sanitised. One such company investing significant sums in the development of air purification technology is Dyson, which supplies this technology to many different hotel clients in Australia and New Zealand. Its core product


ROOMS DIVISION

e rb Ai

The digital display on Dyson’s fan indicates the quality of air being projected

old should certainly consider, if they haven’t done so already, a full review of its HVAC systems and look to upgrade from ‘time based’ systems to newer models which factor in changes in weather, temperature and sun aspect. Over time, the company says, these can pay for themselves through significant improvements in guest satisfaction. It is possible to continue developing robust maintenance programs so that a low total cost for the building can be more economical over a longer period than simply selecting the cheapest maintenance contract when works are due. “If maintenance is skimped on, the downstream impact on both IAQ and precious plant equipment can be massive – far higher than what was saved on a ‘cheap’ maintenance program,” Airpure says. Depending on where in Australia you are, hotels in warmer or colder climates may opt for a singlestage HVAC system, according to commercial air conditioning firm, 21 Celsius. These are designed as a simple heating and cooling system – one or the other. Whilst these can tend to be inexpensive, they can be inefficient as they will often in f gp be working at capacity even when hly um g i h ped not required. into hotel rooms is For hotels in dry environments, such as colder areas, or the tropics where humidity is often high, a good HVAC system should include either humidifier or dehumidifier add-ons. Maintaining that control over the moisture in the air can be critical elements to ensuring a guest’s comfort. In drier climates, the company suggests evaporative coolers, which are a popular measure as they draw in air from the outside, passing it through water-saturated pads, which cools and moistens the air before pushing it out and displacing the hot air around it. Regardless of the system in play, air quality will be a key focus for all hotels moving forward in a post-COVID world. Maintenance will be key and action will be swift to ensure not just guest comfort, but the very particles they are breathing, are at the highest standards possible. n

i lt er ed

Ideal temperatures can be set but it doesn’t affect the quality of the air coming in

in this field is the Dyson Pure Hot+Cool purifying fan heater, which has a HEPA filter capable of capturing 99.95% of particle pollution down to 0.1 microns, or onetenth the width of a human hair. In addition, activated Tris-coated carbon filters remove gases including NO2, formaldehyde and benzene, projecting 290 litres of purified air per second to every corner of the room. Dyson’s Global Category Director of Environmental Care, Charlie Park, says a good purifying fan should be able to sense the needs of a room in order to capture, project, heat and cool those in it. “We insist on developing technology that works properly, without compromise on any functions. Our latest machine goes beyond standard tests. It heats and cools you while always purifying the whole room.” According to Airepure, hotel buildings more than five years

Dyson’s Hot+Cool purifying fan caters to both hot and cold conditions

hotelmanagement.com.au 31


ROOMS DIVISION

Australia’s bedding manufacturers are heavily invested in spinal research

THE SCIENCE OF SLEEP MUCH MORE GOES INTO EVERY HOTEL BED THAN SPRINGS AND FOAM, WITH STUDIES ALL OVER THE WORLD PLAYING A PART IN DEVELOPING THAT PERFECT MATTRESS, AS MATT LENNON DETAILS.

32 HM The Business of Accommodation


ROOMS DIVISION

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body and led to the ‘no more morning back-ache’,” added Sealy National Marketing Manager, Wade Ganzer. “I think the big shift in commercial bedding is because people are buying better beds for their homes now [so] the expectation of when you go to a hotel – a place primarily selling sleep – is that the bed is going to be superior quality, feel good and Daniel Green – Sealy of Australia make you rest. “A lot of luxury hotels are looking for that experience. Sleep and the bed is one of them. We’ve seen a massive growth in more premium bedding at luxury hotels.” According to Sealy’s Sleep Census – last conducted in 2018 – the survey of more than 11,000 people found that getting enough sleep would make the biggest difference to their life. Better sleep rated higher in terms of importance than earning more money, working fewer hours and having an extra hour in the day. More than four in every five polled said they had trouble getting to sleep or staying asleep and of the 70% who admitted to waking up during the night, half of those said they struggled to get back to sleep. “The interface and contact between the human body and the mattress is a key aspect of comfort and is one that is tested extensively,” Green wrote in Sealy’s Sleep Census results. “To do this, Sealy utilises pressure mapping technologies to really understand how the mattress is interacting with the human body. High pressure on parts of the body is a key factor to tossing and turning Scientific studies throughout the night. The team of Sealy engineers work into sleep and endlessly so that the right pressure relieving components comfort are ongoing can be introduced to their range of mattresses. For A.H. Beard, its research and product development is driven primarily by cutting-edge technology and improvements into leading comfort foams and fills. According to the

“The interface and contact between the human body and the mattress is a key aspect of comfort and one that is tested extensively.”

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good night’s sleep is just like a recipe for a cake, with many individual parts coming together to create a finished product – specifically a well-rested body that is full of energy for the day to come. Like any recipe, these ingredients must be added in certain quantities or the whole cake could be spoiled. The complexity of the human spine continues to drive the scientific community, with ongoing research and study into just how varied the human body’s backbone can be and how this changes a person over the course of their life. As the spine adapts to growth around it, this can affect the style of a person’s sleep and the type of mattress they find comfortable. It is a quest that may never be able to reach a singular, universal median but one which continues to be heavily invested into by three of Australia’s leading bedding manufacturers – Sealy of Australia, AH Beard and Sleepmaker. In 2017, Sealy Australia entered into a partnership with the Biomechanics and Spine Research Group (BSRG) at Queensland University of Technology in a project which, at present, will conclude later this year. The two parties have engaged to learn more about the critical factors which affect a person’s spinal comfort when lying down, with the ultimate goal of better understanding the biomechanical elements of a person’s body position when asleep. The project is being led by QUT Senior Research Fellow, Dr Paige Little, who brings extensive experience into spine biomechanics and computer modelling for biomedical application. To complete the study, volunteer participants have been sourced to take part in sleep studies. These young and healthy adults consented to having their body shape, spinal alignment and perceived levels of comfort change over the course of an average sleep, lying on mattresses of varying stiffness. Sealy of Australia Research and Development Manager, Daniel Green, said firmer beds are typically what people need, as plush bedding isn’t comfortable for a whole night or a longer stay. “We want our mattresses to be supportive because we know from a lot of research over many years that if you’re not supported correctly while you sleep, you don’t sleep well and don’t wake up feeling great. Sealy maintains a research team in Australia of around 12 people but also draws on the expertise of Tempur Sealy International in North Carolina, which has a further 75 in its research team. These teams are divided up into specialist areas such as heat management, sleep climate labs and durability. “There has been ongoing research since 1950 so it’s probably more of a continuation for Sealy, which is built on a history of research, which was the first company to bring in orthopaedic fc surgeons and see how the bed aligns the ha ng es t ob

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hotelmanagement.com.au 33


ROOMS DIVISION

“We’ve just launched our new commercial range, and for the first time in the commercial environment, we’re offering a mattress with a phase-change material in the mattress panel.” Peter Deveny – A.H. Beard company’s history, A.H. Beard has been responsible for introducing a variety of innovations to the Australian bedding market, including the first chiropracticapproved mattress in its flagship King Koil range in 1970; gel mattresses in 2007 and the first iComfort smart mattress in 2016, with memory foam mattresses coming the following year. Its latest innovation for the accommodation industry, says Group Commercial Manager Peter Deveny, is phase-changing technology. “We’ve just launched our new commercial range, and for the first time in the commercial environment, we’re offering a mattress with a phase-change material in the mattress panel. “Phase-change material changes the ambient temperature and humidity of the bed. One of the biggest bugbears in hotel rooms is – guests get hot because it’s an enclosed space. People can’t sleep with the air on, can’t sleep with it off. So having a phase-change material in the mattress will allow the mattress to moderate the temperature in a sleeping environment.” The company has also invested heavily in the development of pocket coil technology, which it says is the premium spring technology in the bedding industry. Pocket coils sees each individual spring enclosed in a sleeve to allow it to work independently, creating less partner disturbance, greater comfort and durability. Drawing on global research and tech innovation, A.H. Beard refined a version of this concept, dubbed Reflex, which incorporates extra support coils built in between the primary coils in the mattress. “We now licence that technology,” Deveny added. “We developed it, we designed it, and we now sell that to bedding companies all around the world. It’s the biggest selling part of our product range. In our retail business, reflex makes up the bulk of our sales. And that’s because of the wide coils for comfort, support and durability. And we’ve been offering them in commercial for six years. And so all of our really high-end hotels and premium hotels. That’s the product they buy. A.H. Beard’s Reflex range beds are now in place across Crystalbrook Collection’s three new resorts in Cairns 34 HM The Business of Accommodation

– Riley, Bailey and Flynn, the latter of which opened to guests earlier this year. Deveny says he is seeing a shift in hotel companies opting for beds that are best practice, rather than setting brand standards and requiring a bedding manufacturer to adhere to defined restrictions. “We’re seeing that demand now even from the global hotel brands, coming to businesses like us and instead of saying ‘Here are our brand-specs – you must adhere to this’, they’re coming to us and saying, ‘tell us what we can have.’” In some markets around the world, raw materials that go into the construction of a mattress can periodically encounter hurdles in terms of availability, particularly as specifications change. One example of this is foam, which may present a problem to a global hotel brand seeking to adhere to a long-held brand standard which stipulates how its beds are made, what they contain and where these materials are sourced from. For Australia, sourcing quality foam is rarely, if ever, a problem due to a strong manufacturing sector making mattress foams locally. However, while a clean and environmentally sustainable product is readily available, it can still be one of the most expensive parts of a mattress’ supply line. In using major Australian bedding manufacturers, hotels have in turn been adopting distinctly Australian bed coverings, with design consultants recommending products exuding a local flavour and spirit. According to HotelHome Design Director, Erin Coman-Beckett, hotels have moved away from international influences for their bed decoration, with more earthy tones such as a dusty red brown to represent Uluru or a bright blue for an Aussie summer sky. With domestic tourism set to lead the Australian industry back to prosperity, hotels are eager to remind local guests just how wonderful their backyard truly can be. “Australian accommodation no longer needs to hang off international tends and influences such as ‘The Hampton look’, ‘Parisian style’ or ‘Caribbean influence,” says Coman-Beckett. “Many visitors come a long way to experience our wonderful country and we should be offering them a taste of the Australian influence, which is unique.” Another bedding manufacturer conducting their own research and development is Sleepmaker, which says the buzzword and hot-button issue around the bedding industry at the moment is on temperature control. To combat this, the company has developed what it describes as ‘climate tech quilting’ which is incorporated into the top layer


ROOMS DIVISION

More authentic colours, such as green to represent the Aussie bush, are being adopted by hoteliers, says HotelHome.

A.H. Beard's signature King Koil range was first introduced into the Australian market in 1970

of its beds, which provides for some moisture dissipation and helps the mattress breathe. “So rather than a solid foam on the top of the bed, which can come sometimes cause body indentations and also generate some heat, the climate techs that we use in our foam and in the top panels of our bed actually dissipate the heat and lets the air flow through as well, to help sleep cooler,” said Sharnie Angel, National Business Manager for The Australian Comfort Group, which manufactures the Sleepmaker brand. One of Sleepmaker’s points of difference lie in its ‘Miracoil’ spring system, which according to Angel are made from the strongest wire gauge in the market. This system draws on zoning technology which is designed to conform to the body and provide extra support to the hips and shoulders and to keep the body aligned while it sleeps. “With all the keyboard warriors out there, the last thing you need is people comparing online and saying, ‘Oh yeah, it was really nice but my bed was not so nice’,” Angel added. “When you turn on lights off, nothing else matters but your bed.” n hotelmanagement.com.au 35


PROPERTY PROFILE

Adam, tell us how the stylish Zagame’s House in Melbourne came to be?

Z BOUTIQUE STYLE LOCATED IN A FORMER MOTEL ON THE EDGE OF CARLTON IN MELBOURNE, ZAGAME’S HOUSE HAS QUICKLY BECOME ONE OF THE CITY’S MOST INTRIGUING NEW PROPERTIES, THANKS TO ITS QUIRKY STYLE, BRILLIANT FOOD AND BEVERAGE AND UNIQUE OFFERINGS UNDER THE LEADERSHIP OF GENERAL MANAGER, ADAM TALONI. THE FORMER HM AWARDS GM OF THE YEAR SAT DOWN WITH JAMES WILKINSON RECENTLY TO FIND OUT WHY THE HOTEL IS CREATING SUCH A BUZZ.

Zagame’s House General Manager, Adam Taloni

agame’s House opened in mid-2019 as the result of a complete AUD$18 million transformation of the former Downtowner Hotel, which was operated by the Zagame family for 16 years. We’re one of the first boutique hotels to open on the Lygon Street strip and the first in the area’s ongoing transformation. Designed to showcase the creative DNA of its location, Zagame’s House is equipped with contemporary comforts, the latest technologies and custom furnishings to deliver guests a whole new level of luxury. The hotel is anything but ordinary. We even have the tick of approval from Feng Shui Master, Edgar Lok Tin Yung, who provided consultation on the project to ensure the correct flow of Qi throughout the hotel, cleansing the energy for ultimate relaxation and mindfulness.

In your opinion, what makes the property so unique?

I think what makes Zagame’s House so unique, above all else, is our service. We are constantly looking for ways to improve the guest experience and are focused on providing innovation and personalisation to a level that no other hotel dares to do. From our pet-friendly offering to creating a new-to-market ‘Maître Z’ role, remodelling the check-in process and flipping traditional F&B on its head with a focus on ‘B before F’ – we don’t want to be like any other hotel. I would not classify us as industry leaders as such, but we’re definitely not followers. We do things the way that is right for us and our guests. If that means challenging or questioning the status quo, then that is what we do.

As you say, you have just introduced a ‘Maître Z’. Tell us about that.

Our tagline is ‘Anything, anywhere – as long as it is legally and physically possible’, which I think shows our level of dedication to the guests. Maître Z combines the role of a concierge, host, and Maître D all in a unique Zagame’s House style. The Maître Z role has been created to give guests a unique and personalised experience during their stay from start to finish. Guests will enjoy an exceptional level of personalised service, with our Maître Z offering bespoke experiences including personal yoga lessons, dog walking (and whispering) and chauffeuring. He will even carry your bags for you while you shop.

What are some of the other fun concepts on offer at the hotel? We have a fur-friendly accommodation offering, with unique pet services including fur-baby goodie bags, inroom dining menu for pets, dog walking and more. We also have a check-in menu which allows guests to decide on the level of service they’d like to receive (from the ‘Quickie’ to the ‘Grand Tour’). There’s also our customised branded guest vehicle, Freya the Fiat. 36 HM The Business of Accommodation


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PROPERTY PROFILE

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You have some fantastic food and beverage on offer at Zagame’s. Tell us about Lord Lygon and your lobby bar.

To us, it is actually Beverage and Food (not the old fashioned way). With 300-plus wines on offer at Lord Lygon Wine Shop and Bar, it is pretty obvious where the priorities lay in our house. Lord Lygon is a 50-seat neighbourhood wine bar, serving up wine and food that champions the very best in local produce from Victorian-based distillers, producers and farmers. With award-winning Executive Chef, Chris Bonello, at the helm of our kitchen, the menu is succinct, simple and moreish – designed to complement a huge range of organic and biodynamic wines (which are all hand-selected by our in-house winemaker and sommelier).

What’s the X-factor that helps Zagame’s House stand out in a competitive Melbourne market?

“We’re constantly focused on providing innovation and personalisation to a level that no other hotel dares to do.”

The Zagame’s House X-factor (a.k.a our ‘Z Factor’) is our holistic approach to the guest experience. We’re constantly focused on providing innovation and personalisation to a level that no other hotel dares to do. Most hoteliers would be too afraid of the potential operational nightmares that arise from a lot of our offerings like the Maître Z or our check-in menu, but not the Zagame’s team. We handpick these offerings to handle the forever evolving nature of the hotel industry. n

Adam Taloni – Zagame’s House

Managin

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MYBOS is a cloud system easily accessible via the web by multiple operating systems (MS Windows, Apple IOS) and hardware such as PCs and mobile devices. So, whether you are sitting behind a desk or in the field – MYBOS is only a fingertip away to maintain and update your property for maintenance, repairs, housekeeping, inspections and communication.

What feedback have you received about MYBOS which has helped you refine the program?

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For hotels looking to use their current downtime to improve their operational efficiency, why should MYBOS be considered as a new Property Management System?

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From hotels to serviced apartments and managed residences, MYBOS takes cloud-based property management to new heights.

SUPPLIER PROFILE

r, S to

Meet MYBOS

BOS MY

We get feedback all the time. At MYBOS, we are constantly fine tuning and adding new features to help our clients better manage their space.

Can you tell us some of the key benefits of maintaining a PMS system entirely online?

The obvious key benefit is always having up-to-date data available to all staff, wherever they may be. Not just behind the desk or in the field – but also being able to access it to work from home, which is helpful with the current environment we have with the Coronavirus.

What enhancements or improvements are still to come to MYBOS that you can share now?

We have several new features within the pipeline, including a new and enhanced facility management app, COVID-19 tracker, contractors app and sign-in platform for visitors and contractors. n

What are some of the key features a hotelier or GM might be surprised to find exist online through MYBOS?

Some of the key features help them keep better track of their housekeeping maintenance, room inspections, work orders, contractors and much more.

How flexible is MYBOS in terms of a hotelier being able to customise it to suit their preferred work methods?

Hoteliers can modify the terminology used in MYBOS to suit their hotel. Also, they can turn modules off or on according to their preferences and work practices.

MYBOS lays out all aspects of a hotel’s operations in one screen hotelmanagement.com.au 37


HUMAN RESOURCES

CLEANING UP IN THESE UNCERTAIN TIMES, BUSINESSES OF ALL TYPES – HOTELS INCLUDED – HAVE BEEN PRUDENTLY MANAGING THEIR COSTS AND ELIMINATING THE NONESSENTIALS. WITH QUESTION MARKS BEING PLACED ON NEARLY EVERYTHING, MATT LENNON PUTS THE MOST COMMON OBJECTIONS HEARD TO AUSTRALIA’S THREE LEADING OUTSOURCING FIRMS.

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38 HM The Business of Accommodation

La

KM: As the largest headcount in any hotel, housekeeping can bring with it associated time and costs such as payroll processing, injury management, recruitment and training. At AHS, we provide all this, and the team are directly employed by us, so all associated labour costs are also managed such as insurance, payroll tax, Superannuation and leave accruals. CC: Luxxe is proud of the quality of our people and we invest in them and support their development through regular training, which includes 10 hours of training in guest service skills. All Luxxe staff complete customer service training meaning they understand their role in creating 'Wow' guest experiences. LA: Attracting, training and retaining high quality candidates who are engaged in delivering quality housekeeping services is labour intensive and costly. The housekeeping team is often the largest team within a hotel with a higher churn rate. The outsourced service

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Isn’t it easier for us to just hire our own people?

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or this feature, HM has sourced the views of Kylie Maxwell (KM) from AHS Hospitality; Craig Coughlin (CC) from Luxxe Outsourced Hotel Services and Lauren Anderson (LA) from Silk Hospitality.

“The outsourced service model provides specialist operational and HR support to the Housekeeping Manager.” Lauren Anderson – Silk Hospitality

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model provides specialist operational and HR support to the Housekeeping Manager and team in an efficient and cost-effective way.

How do we know we can trust your staff with ours?

KM: We recruit all our team members directly, with face to face interviews. Our compliance checks ensure work eligibility. Our team is to be seen as part of your team and we will participate (at our cost) in any in-house training you require to achieve this. CC: With LUXXE, you don’t need to be concerned about sub-contractors. We uphold best practice by directly employing all staff. This saves our clients worries about the hidden risks associated with companies that engage in subcontracting and means we are 100% accountable for all service deliverables and all State/Territory and Statutory requirements are fulfilled.


HUMAN RESOURCES

LA: Clients trust our staff as they do their own. Our recruitment and selection processes are robust, and we have a high-performance culture that is maintained through our internal performance management processes.

Will your people be loyal to us and to our brand?

KM: We make certain the hotel standards are delivered and we take away all the training and administration, associated with providing this service. Our team is part of your team – we share the success of your hotel with you and we know we play a key part in that. We encourage you to be part of our team as well and we love our Hotel GMs attending briefings and our team meetings. CC: The LUXXE Leadership team is made up of hospitality professionals that have spent the majority of their careers working in the hotel industry with hotel groups such as IHG, ACCOR, Radisson, Rydges, SPHC, Crown Towers, Sheraton, Hilton, Mirvac, etc. We have worked across all facets of hotel operations including F&B, Front Office, Finance and of course Housekeeping. LA: We want that too and find that our staff easily and naturally align to

New Times New Services New Standards

Housekeeping staff are taking adequate precautions during the COVID-19 pandemic

the hotel brand and culture as they are immersed in the hotel environment. Building a partnering model that is culturally aligned will ensure that the housekeeping team feel like a part of the hotel’s brand and community.

How are we supposed to keep your people trained to our level?

KM: Training and quality standards are driven to your hotel requirements and are an imperative for us to maintain. We track this through inspections and our Quality Assurance plans. CC: If you think all your problems with housekeeping will disappear, then you will be disappointed. However, the advantage will be that there are dedicated support personnel from LUXXE who can be there to solve and implement strategies so these issues are minimised in the future and your own team do not have to waste their time resolving these matters. LA: Silk delivers training effectively and efficiently. This training is often provided in modules that deliver the latest processes and are measurable at an individual level. All of this is fully transparent to the hotel executive. n

ahs hospitality

We now offer different levels of service to suit your needs: • Pathogen • Deep • Enhanced • Standard When you're ready, we're ready. For more information call us on 1800 026 036 or email us at info@ahshospitality.com.au


INTERIOR DESIGN

BREAKFAST IS SET TO BECOME THE BIGGEST CASUALTY FROM COVID-19, WITH THE TRADITIONAL BUFFET CONCEPT AS WE ONCE KNEW IT NOW ALL BUT CONDEMNED. MATT LENNON CHATS WITH SEVERAL LEADING DESIGNERS TO DISCUSS THE CHANGES HOTELS ARE SEEKING TO THIS MORNING ROUTINE.

“There are going to be more ‘Grab & Go’ type breakfasts which are coming into trend at the moment anyway.”

Richard Dalman, Dalman Architects

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t’s the most important meal of the day. Anybody who has ever wandered down to a hotel’s main restaurant for breakfast has experienced the jostle and shuffle of a buffet with barely a care other than who grabs the last hash brown. The COVID-19 pandemic has taken a sledgehammer to life as we know it in many ways and as society becomes more socially distant, a spotlight and calls for change have been cast on the pantomime that is the hotel breakfast buffet. The obvious solution to managing a socially distant society in a finite, confined area is to reduce the number of people within it, but this then presents the problem of how to manage demand, particularly during the 7am – 8am rush. Buffet reservations and table bookings may become the way forward for breakfast across many hotels, brought on by enforced change. In a way, hotels have been preparing for a change in the breakfast routine for some time by introducing innovations such as the ‘Grab & Go’ style convenience store, loaded with fresh fruit, packaged cereals, smoothies, shakes, protein bars and an assortment of other delicacies. These quick-service options have long

40 HM The Business of Accommodation

been on the wish list for hotels catering to their ultra-busy clientele, with interior designers developing minimarket concepts which are now becoming marketing tools in their own right. “Right now, F&B has to be different,” says Dalman Architects Managing Director, Richard Dalman. “The buffet is an area that people are bound to become a lot more interested in and a lot more careful about. I think there are going to be more ‘Grab & Go’ type breakfasts which are coming into trend at the moment anyway – particularly with the three-star products and corporate hotels where people were on a timeframe. You can get a coffee and a muffin or a coffee and a croissant. There might be a place to sit and there might not be.” The prognosis is blunt from Vertex Project Management Director, Aaron Lawrence, who has issued the Last Rites to the longstanding self-serve model. “Buffets are certainly off the table for a lot of the people I’m talking to,” Lawrence said. “The feedback I’m getting is geared toward a la carte rather than any buffet for both breakfast and dinner. Unfortunately, I think the buffet will be a thing of the past.” According to Lawrence, hotels are taking the right steps forward by reinventing and revolutionising what were already highly robust cleaning regimes. “Hotel cleaning has always been really good, but now it needs to be a lot better,” he added. According to interior design firm Chada, positive industry feedback is already being received for what it calls its ‘fast-track COVID-19 future-proofing design plan’, which the company says is highly adaptable to a low-touch and antimicrobial environment and able to revert for normal occupancy.


Citadines Sydney Airport’s meticulously organised Grab & Go offering

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The Grab & Go bar at Element by Westin Richmond, Melbourne

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INTERIOR DESIGN

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“Properties that have an option to use outdoor spaces can benefit from a purposeful integration between indoors and outdoors. There’s ways to rethink design of food service,” said Chada Creative Director, Juliet Ashworth. “With occupancy being so low, it’s an ideal time to refresh or refurbish and so owners can turn this to their advantage,” she added. As kitchens and restaurants evolve to cater to the ‘new normal’, even the most minute detail overlooked can have a negative impact. For a company like GroutPro, commercial kitchens must consider detail all the way down to tile grouting when devising renovation plans to meet new social distancing guidelines. “To achieve best practice and a non-porous surface, cement based grout needs to be removed and replaced with epoxy grout,” says GroutPro’s Geoff Biddle. “Depending on the type of kitchen, it may be necessary to install a special grade of epoxy grout that is resistant to Oleic Acid which is a by-product from frying foods.” Times may be tough in the short term but travellers will adapt, much like it did when supermarkets removed single-use plastic bags. We all got there in the end. It’s not a comfortable norm, but an essential one and soon, we’ll wonder why we ever did things the old way at all. n


DEVELOPMENT

CHALLENGING AS AUSTRALIAN AND NEW ZEALAND HOTELS ENTER THE REOPENING AND RECOVERY PHASE FROM COVID-19, MANY QUESTIONS ARE BEING ASKED ABOUT THE FUTURE OF BOTH EXISTING AND NEW HOTELS. HM LOOKS AT WHAT TO EXPECT FROM SOME OF THE WORLD’S LEADING ADVISORY AND REAL ESTATE FIRMS FOR BOTH THE LOCAL AND GLOBAL MARKETS.

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eading industry advisory firm Dransfield Hotels and Resorts is forecasting a challenging situation for the region for several years, particularly on the back of international border closures and social distancing measures. “We expect the pandemic will progress through all CBD hotel markets in a similar fashion,” said CEO, Dean Dransfield. “Particularities such as market mix (domestic versus international, business versus leisure), supply pipeline and RevPAR position between each market will shift the emphasis somewhat – either helping or hindering the downturn and recovery. “There are related forces of supply, demand and rate which interact and we anticipate the relationship to follow a path,” he said. Dransfield said that path was expected be: 1. Immediate demand reductions from travel restrictions and social distancing • Substantially lower occupancy and lower rates; • Lower short-term earnings and immediate valuation impact; and • Some hotels will shut, some won’t re-open 2. Lower medium-term demand and a supply pipeline recalibration • Hotel development feasibility is now more challenged. Constructions will delay or fail, proposals and future projects won’t eventuate at the same speed or volume; and

42 HM The Business of Accommodation

• Reduced longer-term demand consequences as a result of GDP/global wealth destruction, and this new environment takes multiple years to recover whilst there is inadequate occupancy pressure to reclaim rate losses. 3. How this will impact individual hotels • Focus on cost cutting to reset cost structures to lower volume and revenue; and • Debt and equity restructuring. When it came to assumptions on demand, Dransfield said there were a number of key factors to look at. “In early 2020, we had developed a ‘pre-COVID-19’ demand forecast which established a baseline demand curve,” he said. “This was based on FY2019 actual annual visitor night data with growth rates determined using our typical Hotel Futures forecasting methodology. “Demand will now be materially adversely affected, for a likely period of 9-18 months (which began in Feb 2020), initially to a much higher degree as border and social controls limit both International and Domestic movement. “We have assessed demand reduction, by month, in three categories including Chinese-sourced nights, all other International visitor nights, and Domestic nights, until December 2021, based on the relevant market mix. “The recovery will be gradual and in stages as travel restrictions and social distancing measures are lifted. There remains uncertainty about when these will start within a probable 3-9 month window, and how long it will be before we are largely unrestricted, with International markets taking much longer than Domestic. “We also assume that from FY2022 onwards (beginning July 2021) there are no travel restrictions or social distancing measures in place.


Vertex Project Management oversaw Rydges Geelong's new bar and pool area.

DEVELOPMENT

Now is the time to refurb, says Vertex

HOTELS SHOULD BE using the current down time amidst the COVID-19 pandemic to plan and execute construction projects, in particular refurbishment and renovation objectives, says a leading project management firm, arguing that when the market bounces back, properties will want to be putting their best product into action. Vertex Project Management Director, Aaron Lawrence, who has managed new build and refurbishment projects for a number of QT Hotels and Resorts properties throughout

Australia and NZ, says that with the majority of hotels either closed or operating at extremely low occupancy, guest interference is low to non-existent, meaning project work can be carried out faster and more efficiently. Whether a property is looking to upgrade its restaurant, bar, lobby, guestrooms, deliver a new colour scheme, upgrade facilities or deliver an entirely new guest experience, Vertex says teams of builders, designers and suppliers can presently be mobilised at short notice. “A lot of hotels in the Australian landscape do need some form of work so it’s an opportunity for those hotels to take advantage of this down time and give their hotel a facelift,” Lawrence said. With staff either on furlough or being supported through government assistance programs for the short-term, projects such as refurbishments should be either delivered or brought forward to take advantage of fast track opportunities, added Lawrence.

“From this point on, we revert to the ‘no COVID-19’ base case demand assumptions, however, apply a discount factor of 5-10%. This allows for a lowered base and changes in visitor behaviour as a result of the global economic destruction and structural change in the travel and business community. This discount factor closes over the next few years but does not fully catch up to prior expectations. “Our sensitivity scenario assumes travel restrictions and social distancing measures are lifted quicker, with domestic visitor nights leading the way, and lower levels of rate reductions,” he said. Dransfield said supply will recalibrate and reduce to the new demand environment, offsetting some demand losses. This will happen in three ways: “First, some hotels will close temporarily – some will close permanently. “Second, construction and proposal activity will slow and in some cases cease. This will result in a reduction to the medium-term supply pipeline. “Third, additional projects allowed for in the longterm forecast, but not yet conceived (Market Response), won’t eventuate at prior expectations (volume/timing)

as development feasibility hurdles are tougher to reach,” he said. Dransfield said the position in the supply development lifecycle will affect how fast a city may recover over the medium term. “Those at the end of the supply cycle have limited capacity to flex down, such as Perth and Brisbane.

‟The recovery will be gradual and in stages as travel restrictions are lifted.” Dean Dransfield – Dransfield Hotels and Resorts

“Staying viable is very important and I completely understand and appreciate that. It’s taking advantage of the low period and when the bounce does happen, they are geared up and ready to go and tackle the market with a product that’s the best it can be.” Lawrence said depending on the hotel and its location, it’s likely that a hotel will be able to carry out internal works under a minor approval, meaning authority approvals may be obtained in a matter of weeks rather than months for a full DA through council. He said for cosmetic enhancements such as new carpets, paint, furniture replacement, which are considered soft refurbishments, these works can often be carried out without needing authority approval. “Depending on the scope and how much work is involved, we’ve got a network of contacts that are ready to go. Especially given the downturn in the market, a lot of designers and builders have capacity to jump on to things immediately," he said.

“Those that have high levels of proposals and Market Response and low levels of construction have the greatest capacity to recalibrate, such as Sydney and Adelaide. “And those which have large committed pipelines under construction and proposals will see much less change,” he said. Dransfield said as a result, there were some core supply assumptions. “25% of supply under construction will be delayed by 12 months. At this time, we have not made an assumption that any under construction projects stop, however that will likely happen for some projects. “We have assumed a circa 50% reduction in net proposal completion, compared to our pre-COVID 19 expectations (which were often based on 50% or below probability). “And Market Response (MR) allowances have been scaled back as the occupancy/revenue development targets are not triggered. MR is now nominal over the next five years,” he said. Dransfield said there will be material downward pressure on rates as long as demand is impacted and

competition for guests is high. “This is likely to sustain over the medium term in many cities,” he said. “Our FY2020 assumption takes regard of nine months pre-COVID-19, relying on STR data. “We assume a circa 15% reduction for the remainder of the year which is in line with STR data at the time of the forecast. hotelmanagement.com.au 43


DEVELOPMENT

“We anticipate FY2021 rates will remain challenged through the first three quarters, before discounts begin somewhat unwinding as we move through the calendar year and the months already impacted in FY2020 are the new baseline. “Rates will be adversely impacted by the reopening of closed hotels, from a cold start, in low occupancy markets. “The lower market occupancy position through this period, compared to prior expectations, and higher competition for a smaller pool of guests, is likely to inhibit rate growth until supply recalibration occurs and occupancy pressure returns in the latter part of our longterm forecast,” he said. Dransfield said it was important to note this was a broad assessment of market forces and assumptions are assessed at a more granular and specific level for individual markets. The firm has so far released specific COVID-19 reports for Sydney and Melbourne, Canberra and the Gold Coast – available from Dransfield directly – which indicate, at the time of publication, that those cities “look set for a significant RevPAR decline of over 30% in the next few years”.

FUTURE FOR INDEPENDENT HOTELIERS REMAINS UNDER A COVID CLOUD

Due to the impact of COVID-19, major hotel chains such as Wyndham, Marriott, Choice, Hilton, IHG and Accor are set to expand at an even quicker rate when travel resumes, creating more uncertainty for independent hoteliers, says analytics firm GlobalData. Those chains alone accounted for more than half of global branded hotel properties in 2018 (50.55%) and 44 HM The Business of Accommodation

‟The number of independent hotels has been shrinking in recent decades.” Ralph Hollister – Globaldata PLC

GlobalData Travel and Tourism Analyst, Ralph Hollister, said that share was expected to increase. “The number of independent hotels has been shrinking in recent decades,” he said. “By adopting an asset-light business model and introducing soft brands, major hotel chains have been constantly expanding their global network through affiliating with independent hotels that align with their brand strategy. “The impact created by COVID-19 may accelerate this trend, forcing independent hoteliers to make critical decisions regarding their future sooner than they would have wanted. “Post pandemic, independent hotels may not be able to compete with major players in the industry that will already be battling it out with each other for returning travel demand. “If independent hotels do not wish to become affiliates of major chains – or major chains do not want to work with them – they may have to further rely on online travel agents (OTAs) for their distribution. “This would increase a hotel’s visibility but limits the revenue they can yield during their recovery period, as they have to give a percentage back to the chosen OTA.” Hollister said independent hotels are already falling behind in the adoption of best practices in areas such as brand marketing and technology applications. “These elements are crucial when targeting tech-savvy consumers such as Millennials and Gen Z. Large-scale hotel chains have the capital available to invest in these areas, which can often make joining up with larger chains an attractive proposition for independent or small-scale hotel companies. “Due to COVID-19, independent hotels will now need to prove and outline new hygiene protocols and sanitation standards to prospective guests. “Large, multi-national chains have the brand and marketing power to outline new hygiene standards to vast amounts of potential guests. “This may create a new pull factor that could be likely to help large chains consume even more of the global market share post-pandemic,” Hollister added.

HOTEL INVESTORS STILL ON THE LOOKOUT AMID COVID-19

The Australian hotel industry remains cautiously optimistic about medium-term investor appetite amid the COVID-19 pandemic, according to CBRE Research’s latest Hotel Market Survey, released in late April. Investors, owner-operators, operators and developers took part in the online survey, helping capture market sentiment within a sector that is facing significant short-term pressure. While acknowledging the considerable challenges ahead, with tourism brought to a virtual standstill, many investors indicated they were looking forward, eyeing potential buying opportunities. CBRE Hotels Regional Director, Valuation and Advisory Services, Troy Craig, said the bulk of the hoteliers surveyed indicated their medium-term


DEVELOPMENT

investment intentions had not declined significantly compared to December 2019. A total of 51% answered that their level of investment would be unchanged and a further 21% indicated they would invest more, while 28% said they would invest less. When asked about the most-likely outcome of the crisis, 46% predicted buying by less-geared investors. Shared concerns within the industry were reflected by 38% answering that they expected ‘significant’ financial stress and only 16% held the view that the sector would emerge with ‘minimal’ implications. Almost all of the survey participants expect hotel values in Australia’s major cities to decline over the next six months, including 54% who believe that will be by more than 10%. “Our survey found that investor appetite has not deteriorated by as much as may have been expected under the current circumstances, with 72% of respondents still prepared to invest the same or more in the sector relative to December 2019,” Craig said. “The other 28% indicated a likelihood to invest less, which is not surprising given the impact the crisis has had on the sector. “A significant proportion of respondents believe there will be substantial financial stress with implications to

play out over the short-to-medium term, including a notable drop in RevPAR this year across all major markets. “However, with widely held expectations that capital values will decline by 10% or more, the current climate could lead to buying opportunities for some investors moving forward.” The financial challenges are headlined by expectations of a substantial fall in revenue per available room in major cities across 2020. A total of 71% of respondents believe RevPAR will decline by 30% or more this year, averaged across Sydney, Melbourne, Brisbane and Perth. Just over half of respondents – 53% – expect the current crisis to last between six and 12 months, and only 15% foresee it stretching out beyond 12 months. Of the recovery period that would then follow, 54% predict that is likely to last longer than six months. A re-rating of the sector over the medium term is anticipated by 85% of respondents, but the majority of those foresee only a slight re-rating. “We are confident the Australian hotel market will fare better than most other countries, and that there will be a strong recovery once the government reopens the economy,” said CBRE Hotels National Director, Wayne Bunz.n

‟Operators are largely focusing on preserving cash flow in the short term.” Wayne Bunz – CBRE Hotels


GREEN FROM THE GROUND UP GOING GREEN IS NO LONGER THE ‘IN’ THING – IT’S A ‘MUST DO’ FOR THE HOTEL INDUSTRY, AND IT CAN PROVE TO BE A LOT EASIER AND COSTEFFECTIVE TO DO SO FROM THE FIRST SOD-TURN, AS MATT LENNON DISCOVERS.

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otels are under no illusions in 2020 about the need for everybody to be doing their part, no matter how small it may be, to slash or even eliminate its environmental emissions. This is particularly pertinent as travellers are often conducting their own investigations into a property’s green credentials before booking a stay – it’s more of a deciding factor than ever. For older, historic properties, carrying out renovations on ageing or historic edifices can make ‘going green’ a highly expensive exercise, and many out there are doing the best they can in more tangible, everyday ways such as improving recycling, reducing or incentivising guests to reduce housekeeping needs and using green materials in what renovation work they do. At the other end of the scale, some companies have implemented at an institutional level a culture of sustainability, building clean and green from the design stage through to doors opening to guests and beyond on a daily management basis. Pro-invest Group, the Australasian Master Franchisor for IHG’s Holiday Inn Express brand, has been building momentum in recent years, growing the brand in capital cities and regional centres around the country. These include Brisbane, Sydney (Macquarie Park), Newcastle, Adelaide, New Zealand and most recently in Melbourne’s Southbank, with more Dr Sabine Schaffer, coming to Parramatta, the Sunshine Coast and a second in Pro-invest Managing Partner

“By now everybody within IHG I believe is using the ‘Greener State’ ”.

46 HM The Business of Accommodation

Melbourne and Sydney. Canberra and Wollongong are also on the drawing board but are yet to be announced. Late last year, the investment and development firm announced it had secured AUD$50 million from the Clean Energy Finance Corporation (CEFC) – an entity which invests in commercial and residential developments incorporating renewables in the majority of its operations. The CEFC mandates adherence to the National Australian Built Environment Rating System (NABERS), with buildings rated on energy and water efficiency, waste management, emissions and a number of other criteria. This funding was incorporated into Pro-invest’s Australian Hospitality Opportunity Fund II, which will see it aim for all future Holiday Inn Express hotels developments to obtain a five-star NABERS rating. Pro-invest Managing Partner, Dr Sabine Schaffer, said if a hotel owner wanted to make a significant positive impact on the environment, it starts at the design stage and having a clear handle on the water and energy consumption of your assets. “By putting in effective systems that allow you to recycle and to reuse that energy, you can save on a lot of energy costs and do the right thing by the environment. “What we did with Melbourne Southbank was we cooperated with CEFC (Clean Energy Finance Corporation) in the form whereby CEFC came on board as a debt provider together with CBA (Commonwealth Bank of Australia), one of the banks that we are working with closely, and provided us with a slightly cheaper loan facility that would effectively offset any of the additional costs we had to accrue in order to put all of these design efforts into the physical building.” The list of criteria required by Pro-invest in order not just to meet the CEFC standards but its own includes low-carbon construction techniques including cross


DEVELOPMENT A concept rendering of the future Holiday Inn Express Sydney Airport

Dr S

ab i ne Sc haffer

developed for itself a competitive advantage by virtue of maintaining and renewing its NABERS rating each year. Under Planet 21, all new rooms must include LED lighting and a motion-detection system which can sense when a guest has left a room and accordingly, switches off air-conditioning, lights and energy systems. Mercure Sydney is now aiming for a 4.5-star NABERS rating in its next assessment due later this year. Sustainability manifests itself in many different ways for different people and organisations and as technology continues to improve, the standard will never stop improving. For certain though is that the industry is firmly focused on being the cleanest and greenest version of itself and that its own improvement will too never stop. n

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i ne ns h s Su uite Holida y Inn Express & S

laminated timber, energy efficient building management systems as well as heating and cooling equipment. Beyond that, hotels will carry high-performance glazing on windows, air-cooled chillers and condensing boilers, rooftop solar and regenerative lift drives, which store the energy generated from regular operations and return it to the hotel’s grid to use in other areas. Another hotel working to maintain its highly positive NABERS rating each year is the Mercure Sydney, with energy and sustainability duties coming under the responsibility of Chief Engineer, Adam Hansen. Mercure Sydney is part of the hotel portfolio owned by Dr Jerry Schwartz – a staunch environmentalist active at installing new energy-saving technology on his hotels. According to a NABERS case study, under the tutelage of Hansen, Mercure Sydney has obtained a fourstar rating by incorporating a range of Energy Management Systems including solar and room automation systems which allows the hotel’s engineering team to retain better control of its energy usage. With water management, the hotel has adopted the practice of submetering which allows the team to monitor water use on a daily basis and respond by increasing or relaxing conservation systems as needed. Through this practice, the hotel has reduced its water consumption by 1,069% in its cooling towers and a further 250% in its pool area. Working as part of Accor’s Planet 21 initiative, which sets strict but achievable goals for energy and water conservation, Hansen said Mercure Sydney has

t as Co

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FINANCE

SUPER AND INSURANCE UPDATE 2020 FOUR OF THE ACCOMMODATION AND HOSPITALITY SECTOR’S LEADING SUPERANNUATION AND INSURANCE FIRMS PROVIDE AN UPDATE ON MARKET CONDITIONS AS THE 2019/20 FINANCIAL YEAR REACHES ITS CONCLUSION.

Intrust Super

Brendan O’Farrell – Chief Executive Officer

Accommodation, Tourism and Hospitality Industry super fund, Intrust Super, is supporting business partners and helping members manage the impacts of COVID-19. In April, a number of the Fund’s members applied for early access to super due to financial hardship under COVID-19. While managing fraud risks, processing and unit price valuation challenges, the Fund actioned these claims as quickly as possible. The Fund positioned itself early to prepare for this legislative change. It was important to us that members in critical need of financial support were able to access these funds. As many commentators have pointed out, the early withdrawal of super could have a detrimental impact on their retirement savings in the long term, and we certainly don’t want to see vulnerable workers forced to use their own savings during this time. Nonetheless, many of our members are really struggling financially at the moment. For those that do need the extra financial support, we have been working to process claims as quickly as possible. One added complication is that many workers may have withdrawn the entirety of their superannuation balance when they applied for early release. To minimise the impact on employers and members, Intrust Super will ensure that the process for employers to restart Super Guarantee (SG) payments and for members to access their insurance cover is as smooth as possible once these staff return to work. 48 HM The Business of Accommodation

We are taking steps to make it easier for employers to restart SG payments and ensure no new account numbers will need to be created for these staff. Staff will also be able to keep all the same account details. For those that still require help with their super, Intrust Super’s team of Relationship Managers have also been reaching out to members and employers electronically via phone, email and even Zoom. We are even more determined in ensuring a high standard of service is provided to our members, even if it can’t be face-to-face. Feedback about these remote services has been brilliant. It is great to be able to help in any way we can during this difficult time.

Network Insurance Group

Donald Mitchell-Innes – Chief Broking Officer

In providing an insurance market update for HM magazine last year, we foreshadowed a continuation of hard market conditions where premiums would increase in line with global market trends. Insurers would be looking to recapitalise on the back of losses associated with local and overseas natural disasters which had occurred over the past 24 months. Some of Australia’s larger natural catastrophe losses impacting insurance rates last year included insured losses of AUD$1.3 billion associated with the 2018 Sydney hail storm and AUD$1.2 billion for the 2019 Townsville floods. It was our assessment that, if a major catastrophe was to occur during the year, conditions would get substantially worse and prolong the duration of the hard insurance market. Fast forward six


FINANCE

months and the world, including the insurance sector, has endured some nasty surprises and is currently in unchartered waters. Those in the accommodation sector that are susceptible to bushfire can expect property premium increases in vicinity of 30% to 50% and cover for this peril may well be sub-limited going forward. Insurers now have concerns that pyro cumulonimbus clouds and storms will cause dangerous and unpredictable changes in fire behaviour, resulting in unforeseen losses. Liability premiums continue to increase in the order of 10% to 20%. In the hard market environment it is imperative that insureds work closely and continuously with their broker in a consultative capacity rather than a transaction at the time of renewal. Insurers are now more selective than ever before in the risks they write and it is imperative that insureds work with their broker to best position them in the market. In providing comprehensive underwriting information well in advance of renewal, brokers are empowered to ‘sell’ a risk to the market rather than accept terms dictated by insurers. With a large portfolio of clients in the hospitality sector, and a team of seasoned brokers, Network Steadfast is well positioned to navigate our clients through this challenging insurance market environment and achieve the best available cost and cover. We partner with our clients in insurance and risk so that they understand their exposures as they may impact on reputation as well as ensuring that operational risks and exposures are identified and protected.

Hostplus

David Elia – Chief Executive Officer

For more than 30 years, Hostplus has been a leading Industry SuperFund with a proudly membersfirst culture. This philosophy has never been more important than it is today. As the hospitality, tourism, recreation and sports communities continue to work their way through the many challenges raised by the COVID-19 pandemic, I want to reassure all of our members and contributing employers that Hostplus remains determined to deliver outcomes in the best interests of all of our members. With this in mind, Hostplus has supported the Federal Government’s initiatives to provide those in need with early access to their super as well as other hardshiprelated options, including JobSeeker and JobKeeper. As a major and well-diversified superannuation fund, Hostplus invests in a wide range of both listed assets, such as stock exchangelisted shares and securities as well as unlisted assets such as property, infrastructure and non-listed private companies. As part of the Fund’s investment strategy, Hostplus has continual regard to liquidity, including all expected future cash flow requirements. I’d like to once again reassure all members that Hostplus’ current cash and liquid asset holdings continue to have us well placed and ready to assist all of our members who need support during these unprecedented times, while maintaining all existing and routine investment choice decisions of our members and continuing to adhere to our long-term investment beliefs and strategy. Our longer-term performance and achieved results remain comparatively market-leading. For the period to the end of March 2020, the default Balanced investment option’s net return to members continued to be placed in the top quartile over five, ten, and twenty-year periods, according to a recent SuperRatings survey. There has of course been significant volatility in economic markets since February due to the pandemic. While our continuing strong historical performance is not a guarantee of future returns, it is instructive of the success and capacity of the Fund’s long-term

investment strategy to resiliently weather the cycles of markets and economic phases over time. We are committed to keeping you updated on the latest developments and will continue to share information on relevant and emerging policies and options as they arise, via our website, at hostplus.com.au/2020updates.

Aon Australia

Andrew Clark – Client Manager

It’s undeniable that the hospitality, accommodation and tourism sectors have been hit hard by the economic toll of the COVID-19 pandemic and government restrictions. As businesses large and small were advised to pivot their operations in attempting to stay afloat, this was not so simple for a sector whose fundamental purpose is based on the movement of people and travel. To make the situation even more challenging, financial loss or interruption caused by infectious diseases may not constitute an insured event under a vast majority of insurance policies. For some businesses, the combination of no coverage under insurance and quickly plummeting revenues has meant the sector is facing the fight of a lifetime to stay in operation. Some insurers and brokers have collaborated and found ways to provide relief to businesses in hospitality, accommodation and tourism in different ways. Here are some of the ways Aon has managed to help clients impacted by the economic crisis of COVID-19: • Unoccupancy coverage extended – Some property insurance policies exclude ‘Damage’ to ‘Property Insured’ where the premises have been continuously unoccupied for a period of time (for example, sixty days). In the current environment, Aon has worked with some insurers to extend this period so that premises unoccupied for longer may still be provided coverage under their policies if they experience an insured event. • Workers’ Compensation Premium Adjustment – With so many facilities operating with minimum staff levels, in states where Workers Compensation is insurer driven, Aon has worked with insurers and clients to adjust down estimated wages. This has resulted in reduced Workers’ Compensation premiums for some businesses and helped to provide some very welcome cash injections back into their accounts. • Review of sums insured on property policies – As many businesses are now holding significantly less stock, a review of the sum insured to reflect this lower amount has also resulted in return premiums for some clients. • Review of Public Liability Insurance Levels – Many businesses are now completely closed, and some food businesses are open for takeaway only. This has resulted in fewer customers walking into the premises, often meaning lower public liability exposure. Aon has also worked with insurers and businesses to revise the Public Liability exposure on some policies, leading to a reduced premium on these policies. n

“Some insurers and brokers have collaborated and found ways to provide relief to businesses.” Andrew Clark – Aon Australia

hotelmanagement.com.au 49


PEOPLE

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

Radisson Hotel Group has welcomed Nisha Menon as its new General Counsel, Asia Pacific. To be based in Singapore and reporting directly to the company’s Asia Pacific President, Katerina Giannouka, Menon brings nearly 15 years’ legal experience to her new role. She moves across to the hotel group after 11 years with Parkway Pantai Ltd, where she worked as a Senior Legal Counsel and oversaw multiple mergers, joint ventures, asset sales and private equity transactions. Menon’s career has also seen her work on projects for other major hotel groups including Hilton, Marriott International and InterContinental Hotels Group. Girish Talreja is set to relocate from Sydney to Melbourne in order to take the reigns at Marriott Docklands Melbourne, which will open its doors to guests from December 2020. Talreja moves from Sheraton Grand Sydney Hyde Park, where he has most recently served as Hotel Manager, in which role he played a senior role in the hotel’s $50 million renovation project. Talreja brings nearly two-decades experience to his new role and has worked in China, Indonesia and his native India.

With nearly three decades under his belt at Marriott International, Craig Smith has been promoted to the role of Group President, International, as part of an internal restructure brought about by the retirement of long-time company leader, Dave Grissen. In his new role, Smith will oversee the company’s entire operations outside North America, with colleague Liam Brown to take on the Marriott homeland. Marriott International CEO, Arne Sorenson, said the changes will help define a new era for the organisation.

Brendan McClements has been announced as the new Chief Executive Officer of Visit Victoria by the organisation’s Board of Directors, ascending to the role in a permanent capacity following four months as interim CEO. McClements has has been tasked initially with continuing to lead the state’s tourism industry out of the grips of COVID-19 in line with government border controls.

Following the retirement of its Greater China President, Wyndham Hotels and Resorts has made the move to combine this territory with South East Asia and Pacific Rim to create a new overarching Asia Pacific region. In line with the amalgamation, the hotel franchising giant has appointed Joon Aun Ooi to lead this new mega-region as President, Asia Pacific. Joon Aun will continue to be based in Singapore in his new role, with Wyndham maintaining all regional and satellite offices following the merger.

Tourism Malaysia has announced the relocation of Tuan Razali Tuan Omar to Australia to head up the organisation’s operations in Sydney. In his new role as Director, Tuan brings more than a quarter-century promoting his homeland across domestic and international markets along with significant skills in leadership, tourism marketing and event planning. His career highlights include leading the Tourism Malaysia office in Dubai over a five-year period.

Highly decorated businesswoman, Gráinne Troute, has been appointed as the new Independent Chair for Tourism Industry Aotearoa in New Zealand. Bringing extensive experience across many customer-facing businesses in tourism, retail and hospitality, Troute also serves on the Boards of Tourism Holdings Ltd, Summerset Holdings Ltd and Investore Property. Most recently, Troute held the role of General Manager, Corporate Services at SkyCity Entertainment Group and is also a former Managing Director of McDonalds Restaurants (NZ).

General Hotel Management President and Director, Hans Jenni, has announced his retirement, effective immediately, and has stepped down from the company he founded 30 years ago. In a highly esteemed career to date, Jenni has made his name promoting ‘off the beaten track’ luxury resorts in burgeoning areas now thriving thanks to tourism.

Former Trafalgar Australia and Creative Holidays Managing Director, Paul McGrath, has returned to the travel industry as the new CEO of youth hostel brand YHA Australia. In his new role, McGrath will oversee the operations and overall performance of over 60 youth hostels across Australia. The company maintains a database of over 400,000 members, over 200 employees and an annual turnover of more than $46m. At the same time, YHA Australia has appointed longstanding Director, Tracey Powell, as its new Chair after ten years serving with the Board.

With luxury hotels in his veins, The Fullerton Sydney has enticed Andrew Adams to return home to Australia to take up a role as Director of Operations after 13 years working in the USA. Brands on Adams’ CV include SBE Group, Four Seasons and The Peninsula. Among his new duties at The Fullerton Sydney are driving new F&B concepts.

50 HM The Business of Accommodation


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