HM Q&A - PAUL CONSTANTINOU

REFLECTIONS FROM A LEGEND

HE’S IN THE HM AWARDS HALL OF FAME, A MEMBER OF THE ORDER OF AUSTRALIA, A FRANCHISING CHAMPION AND NOW, AFTER 33 YEARS, PAUL CONSTANTINOU HAS OFFICIALLY SAID GOODBYE TO QUEST APARTMENT HOTELS, A BUSINESS HE FOUNDED IN 1988. HE SITS DOWN WITH JAMES WILKINSON TO LOOK BACK ON WHAT HAS BEEN A STELLAR CAREER IN THE AUSTRALASIAN ACCOMMODATION INDUSTRY.

From modest beginnings with one property in Melbourne in 1988 to over 160 in 2021, it has been an incredible journey for Paul Constantinou and the Quest Apartment Hotels brand. His official capacity with the company he founded has now come to a close, following The Ascott Limited’s purchase in August of the remaining equity he had in the business. And so, a new chapter begins for a true legend of the industry.

Paul, you’ve just stepped down from your role as Chairman of Quest Apartment Hotels. What have been the highlights of what has certainly been an exciting journey for yourself and your family?

A key highlight has been working with younger people who aspired to own their own business. It has been truly humbling to have been able to provide them with the opportunity to be a business owner and witnessing their growth and progress from being an employee to a franchise business owner. In some instances, these people have gone on to become multi-unit franchisees.

Achieving milestones like opening a Quest in everycapital city, then every state and territory in Australia,and across the ditch in New Zealand were also exciting,but not necessarily because I set out with deliberategoals for that sort of network coverage. The excitementmore came from knowing that Quest was opening newproperties in locations in direct response to where ourcorporate clients needed to be for work.

Paul was introduced to the HM Magazine Hall of Fame in 2014

What have been some of the keys to success in creating a global hotel chain from just one property?

Quest’s ability to stay focused on the needs of the corporate extended stay traveller has been pivotal to the success of the company – from both a product and a location perspective. We have refined the product and amenities over time to ensure that as a brand, Quest has remained relevant to this segment, but just as – if not more – importantly, we have strived to understand the futurelocational requirements of our corporate customers.

You have amazing owners of the company now in CapitaLand and The Ascott Limited. Why did you choose them as your partner and what confidence do you have about the future successes for Quest?

The Ascott Limited was chosen as a partner for three key reasons: a strong alignment of values; synergy in both our product and customers; and The Ascott’s interest in our franchising operating platform. The similarity in the values of the two companies really was a critical factor in the decision-making process. Quest needed a stronger platform to expand globally. CapitaLand had the footprint, IP, and the local knowledge in countries where we had identified potential for Quest to capture market share. The partnership presented Quest with the opportunity to piggyback off all the foundationsCapitaLand had already laid.

It took 10 years to get Quest right in New Zealand– Stephen Mansfield and his team needed that amount of time to truly understand the local culture, community, and customers. These days in New Zealand,the community now accepts Quest as a local resident. With CapitaLand’s insights in markets where they already operate, Quest can more readily benefit from this and leverage the understanding and relationship capital and has already developed.

There is no doubt the growth of Quest Apartment Hotels has truly been a team effort.

Paul Constantinou, Quest Apartment Hotels

Quest Burwood East

We have seen the first UK property open now. How far and wide do you think the Quest brand can continue to grow?

Quest will continue to grow in places where our customers need to be, as long as they continue to need to be mobile for work. In Australia, we are facing declining skillsets in new industries. As we emerge from the pandemic in the years to come and re-open borders, no doubt we will see an influx of skilled migrant workers to fill the gaps, who will have extended stay accommodation needs. As for the United Kingdom, the future potential to capture some of the share of the apartment hotel market remains strong.

Who have been some key people in your career that have contributed to the amazing growth of Quest?

There is no doubt the growth of Quest Apartment Hotels has truly been a team effort. Hundreds of franchisees and support staff over 30 years fostered that family business feel and built a strong team culture which helped us push through the ups and downs. These people showed confidence and belief in how the Quest brand could grow, demonstrating an immense commitment to delivering a great guest experience and forging ongoing relationships with our extended stay travellers and other stakeholders.

Paul Constantinou built Quest Apartment Hotels into an industry leader

What advice do you have for future leaders of the accommodation industry?

My key piece of advice is to stay true to the core purpose and fundamentals of your business. If you deviate from the core purpose, then your business won’t cope. Over the last 10 years, there have been a number of new brands enter the market across the hotel industry. If there isn’t a full understanding of the core purpose of the brand by all stakeholders, then the business will most likely struggle. There needs to be true relevance of a brand to its customers.