The gold standard - Hotel Management International

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The gold standard - Hotel Management International
Winter 2018                                            Small-minded
                                                                                   Brands bet big on
                                                                                   micro hotel rooms
                                                                                    Private matters
                                                                                 Behind the Marriott
                                                                                         data breach

                                www.hmi-online.com

     The gold
     standard                                                                                  An official
                                                                                              publication of

     How spa leaders are raising
     their game to new heights
                                                                                             www.ehma.com

                      Instagram design • Investment roundtable • Italy focus • Peggy Chan

HMI077_Cover.indd 1                                                                                 19/12/2018 15:25
The gold standard - Hotel Management International
GERMAN PRECISION,
      GLOBAL VISION

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                                                                    Dubai, UAE                     Camp de Mar, Mallorca/Spain

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                              IntercityHotel Braunschweig                                                       Jaz Amsterdam
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                                                                                 Steigenberger Hotels and Resorts are
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Deutsche Hospitality.indd 1                                                                                              19/12/2018 09:34
The gold standard - Hotel Management International
From the editor

                On the web...
                Keep up with the latest developments
                across the hotel industry by visiting
                www.hmi-online.com                                                                                                    Phin Foster, editor

                                                                                     Great expectations
                                                                                     T
                                                                                               ravel has long been prescribed as         speak to some of the biggest names in
                                                                                               a cure for life’s ills, but even the      the industry, including Rosewood’s Niamh
                                                                                               most evangelical jetsetter could          O’Connell about the challenge of rising to
                Hotel Management International
                                                                                     not have foreseen the extent to which               ever-increasing guest expectations and
                Winter 2018
                                                                                     wellness tourism would rise to prominence           how operators are positioning themselves
                EDITORIAL
                                                                                     over recent years. According to the Global          to leverage the benefits that this booming
                Editor Phin Foster
                phinfoster@compelo.com                                               Wellness Institute, the $639-billion wellness       market has to offer.
                Chief sub-editor Thom Atkinson
                Sub-editor Dale Hogan
                                                                                     travel market’s annual growth rate of 6.5%              Booming markets are something
                Senior feature writer Greg Noone                                     during 2015–17 is more than double the              European hoteliers can never get enough
                Feature writers Grace Allen, Tim Gunn
                Production controller Steve Buchanan                                 figure for tourism overall. World travellers        of, but in many cases, things have been
                Group art director Henrik Williams                                   made 830 million wellness trips last year,          so good for so long, a number of investors
                Designers Sandra Boucher, Martin Faulkner
                                                                                     139 million more than in 2015 – and these           and operators are starting to give far more
                COMMERCIAL
                                                                                     trips represent 17% of total expenditures.          thought to exactly where we sit in the
                Copy coordinator Melissa Parkinson
                Publication manager Richard Pollard                                     While the US and Europe continue to              current cycle. We travelled to Deloitte’s
                Subscriptions marketing manager                                                                                          European Hotel Investment Conference
                                                                                     enjoy record revenues, wellness tourism
                Dorothy Musariri
                Publisher William Crocker                                            growth is also a tale of developing markets,        to hear industry leaders, including Keith
                                                                                     with Asia-Pacific, Latin America-Caribbean,         Barr of IHG and Radisson Hotel Group’s
                                                                                     Middle East-North Africa and sub-Saharan            Federico González, debate how current
                Hotel Management International is published quarterly                Africa all clocking robust gains, and               success can be sustained, as well as
                by Compelo, which is a member of the Audit Bureau of
                Circulations, and is an official publication of the
                                                                                     accounting for 57% of the increase in               what lies further down the road.
                European Hotel Managers Association.                                 wellness over the past three years. Over                But as well as looking at the big picture,
                Registered in England No. 09901510.
                                                                                     the past five years, Asia has proved the            sometimes it’s good to think small. Global
                John Carpenter House, John Carpenter Street
                London, EC4Y 0AN, UK                                                 number one gainer in wellness tourism               brands are placing major bets on micro
                Tel: +44 207 936 6400 Fax: +44 207 411 9800                          trips and revenues.                                 hotel rooms in an effort to appeal to the
                www.compelo.com
                www.hmi-online.com                                                      At the heart of this trend sits the hotel,       younger generation of travellers who
                ISSN 2041-2452 © 2018
                                                                                     which is now the fastest-growing spa                want an affordable experience that doesn’t
                Published in association with:                                       segment worldwide. Operators are offering           sacrifice comfort or privacy. We discuss
                All rights reserved. No part of this publication may be              unprecedented options when it comes to              this trend with Hilton’s Tripp McLaughlin,
                reproduced, stored in a retrieval system or transmitted in any
                form or by any means, electronic, photocopying or otherwise,         treatments and programmes, but are also             Premier Inn’s Carlo Del Mistro and Pod
                without prior permission of the publisher and copyright owner.
                While every effort has been made to ensure the accuracy of the       coming to understand that wellness is,              Hotels’ Richard Born.
                information in this publication, the publisher accepts no
                responsibility for errors or omissions. The products and services    in many cases, an extension of guests’                  Those are just some of the highlights
                advertised are those of individual authors and are not necessarily
                endorsed by or connected with the publisher. The opinions
                expressed in the articles within this publication are those of
                                                                                     daily health regimes, which may include             contained within. As always, I hope you
                individual authors and not necessarily those of the publisher.
                The 2018 US annual subscription price for Hotel Management
                                                                                     consciousness and mindfulness techniques,           enjoy our latest edition and greatly look
                International is $164. Airfreight and mailing in the US by agent
                named Air Business, c/o WorldNet Shipping Inc, 156–15,
                                                                                     or personal trainers. For our cover story, we       forward to hearing your thoughts.
                146th Avenue, 2nd Floor, Jamaica, New York, NY11434, US.
                Periodicals postage pending at Jamaica NY 11431.
                US Postmaster: Send address changes to Hotel Management                                                    On the cover: Four Seasons Resort Bora Bora, French Polynesia
                International c/o Air Business, c/o WorldNet Shipping Inc, 156–

                                                                                                                           Also in this issue
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                Subscription records are maintained at Compelo,
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                Air Business Ltd is acting as our mailing agent.
                                                                                                                           Page 32: Patrick Kingsland speaks to industry
                SUBSCRIPTIONS
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                                                                                                                           Page 44: Chloe Scott-Moncrieff speaks with Peggy
                Address: Compelo, Riverbridge House, Ground Floor, South
                Tower, Anchor Boulevard. Crossways, Kent DA2 6SL
                                                                                                                           Chan about her plant-based hospitality empire that
                                                                                                                           currently spans three continents.
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                                                                                                                           Visit www.hmi-online.com

                                                                                                         Hotel Management International | www.hmi-online.com                               3

HMI077_101_Foreword.indd 3                                                                                                                                                                     19/12/2018 16:08
The gold standard - Hotel Management International
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SDI.indd 1                                                                                                                                                                                                                                            19/12/2018 09:37
The gold standard - Hotel Management International
Contents

                  Cover story

                                                                                                   48
                                                                                                                                                              20
                                                                                                                        A look towards the future at EHIC.

                                                                                                                          35
              The ‘software approach’ operators in the spa industry are implementing to stay ahead of market demands.   Why big brands are looking at small hotel rooms.

                                                                    17 The perfect balance                                   of caution is now creeping in
                  The intelligence                                     between business                                      with signs of slowing growth
                                                                       and leisure                                           and a shift in the profile of
              8     News & vital statistics                               Meliá Hotels International                         investors. Andreas Scriven,
                                                                                                                             lead partner, hospitality and
              10 Middle Eastern promise                             19 Innovation in hospitality                             leisure at Deloitte, and Peter
                    The Israeli hotel market is going                     Worldline                                          Szabo, associate at HVS Hodges
                    through something of a boom period,                                                                      Ward Elliott, give Patrick
                    with performance hitting impressive             20 The bigger picture                                    Kingsland their insights.
                    levels in both city and resort                        Deloitte’s European Hotel
                    destinations. Hotel Management                        Investment Conference                         26 Push it forward
                    International’s partners at STR break                 encouraged delegates to consider                   Accor Hotels president of
                    down the figures.                                     the long view in an environment                    Europe Franck Gervais, COO
                                                                          where it can be all too easy                       and founder of citizenM Michael
                  EHMA                                                    to become distracted by more                       Levie, Hilton president of
                                                                          immediate concerns. Hotel                          EMEA Simon Vincent, and Andrea
              12 The finer details                                        Management International                           Jones, senior vice-president
                    Hans Koch discusses the                               travelled to the Dorchester                        of international development at
                    importance of creating a hotel                        in London to hear some of the                      Marriott, discuss the ways their
                    restaurant that can stand as                          sector’s biggest names, including                  brands remain focused on the
                    its own unique endeavour, while                       IHG and Radisson Hotel Group                       operations of the future.
                    maintaining the ambience.                             CEOs Keith Barr and Federico
                                                                          González, look beyond
                                                                          the current cycle and debate
                                                                                                                         Regional focus
                  Business management
                                                                          challenges and opportunities
                  & development
                                                                          coming over the horizon.                      29 In the face of adversity
                                                                                                                             Despite ongoing political and
              14 A lighting control                                 23 Proceed with caution                                  financial instability within the
                 partner for hospitality                                  After another strong year of hotel                 country at large, the numbers
                    Simon                                                 performance in Europe, a sense                     for the Italian hotel market

                                                                                           Hotel Management International | www.hmi-online.com                         5

HMI077_102_Contents_USE THIS ONE.indd 5                                                                                                                                    19/12/2018 16:07
The gold standard - Hotel Management International
Contents

                    continue to look relatively              striking and unique design to          collectively account for 6,000
                    healthy. However, with                   attract customers. We hear from        properties in more than 100
                    transaction volumes down                 experts on the Instagram effect        countries and employ 220,000
                    this year on 2017 levels, how is         and the steps designers need to        people globally. Meenal Sachdev,
                    the investor profile changing,           take to maximise this new source       founder and director of the
                    where are they looking to get            of exposure.                           Shiva Foundation, outlines
                    deals done and how attractive is                                                the network’s formation,
                    the hospitality segment compared      43 LED is a light that                    and highlights its ten
                    to other real-estate opportunities?      never goes out                         recommendations for
                    With the help of Colliers                Visive Group                           combatting modern slavery
                    International, Hotel Management                                                 in the hospitality sector.
                    International takes stock.
                                                           Food & beverage
                                                                                                  Technology
               Special report                             44 Healthy profits
                                                             For chefs at all levels,            55 Into the breach
              32 Soft sells                                  vegetarianism and sustainability       Marriott International has fallen
                    Soft brands have enjoyed                 can no longer be considered            victim to the second-largest
                    significant success in the luxury        niche concerns. Chloe Scott-           data breach ever recorded. In
                    segment in recent years, but a           Moncrieff talks to restaurateur        this paradigm-shifting moment
                    number of operators are switching        and activist, Peggy Chan, about        for the hospitality industry,
                    their focus to independent               blazing a trail for plant-based        Tim Gunn brings together
                    midscale hoteliers, launching            eating, and a hospitality career       what we know so far to assess
                    new offerings that promise the           spanning three continents and a        what hoteliers need to learn
                    retention of independence and            number of different incarnations.      from the hack and how they
                    the ability to leverage global                                                  can balance data security
                    scale. What accounts for this         47 Better by design                       with more traditional customer-
                    shift and how can the concept            Sleep + Eat                            facing goals.
                    be adapted for a segment more
                    associated with consistency            Guest amenities                       58 Ready, set, go
                    and standardisation? Patrick                                                    LG
                    Kingsland speaks to Philippe
                    Bijaoui of Wyndham, Hilton’s          48 All’s well that starts well
                                                                                                  Directory
                    Mark Nogal and hotel consultant          The wellness industry is
                    Bjorn Hanson.                            booming and hotels at all levels
                                                             are looking to benefit. However,    60 Product showcase
                                                             increased opportunities also
               Operations
                                                             mean an increasingly savvy          61 Index
                                                             guest demographic demanding
              35 Size does matter                            something genuinely new and
                    Global brands are betting big on         different. Paul King speaks to       The insider
                    small hotel rooms in an effort to        global spa leaders about the
                    appeal to the younger generation         challenges of meeting those         62 Further afield
                    of travellers who want an                demands and why operators              After almost 50 years in
                    affordable experience that doesn’t       must adopt a ‘software                 the hotel industry, finishing
                    sacrifice comfort or privacy.            approach’ when it comes                his career as GM of The
                    Hilton’s Tripp McLaughlin,               to devising and delivering             Churchill in London, and Hyatt
                    Premier Inn’s Carlo Del Mistro           appropriate programming.               International’s VP for UK and
                    and Pod Hotels’ Richard Born                                                    Ireland, Michael Gray retired
                    make small talk with Elly Earls.                                                from front-line service in March
                                                           Security
                                                                                                    2016. However, he remains the
                                                                                                    UK and Ireland national delegate
               Design
                                                          51 Break the system                       for EHMA, is committed to
                                                             In 2016, Shiva Foundation              growing membership beyond
              39 Under the influence                         brought together a diverse group       the UK capital and will be
                    The rising popularity and                of hospitality players to create       visiting hoteliers across the
                    influence of Instagram has               the Stop Slavery Hotel Industry        region throughout 2019 in an
                    required hotels to invest in             Network, whose members                 effort to promote its benefits.

                6    Hotel Management International | www.hmi-online.com

HMI077_102_Contents_USE THIS ONE.indd 6                                                                                                 19/12/2018 16:07
The gold standard - Hotel Management International
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LG Page 1.indd 1                                                                                                                       19/12/2018 09:39
The gold standard - Hotel Management International
The intelligence > News

           News
       EXPANSION                             Orbis’s growth in Poland, then         managing director of Europe, is to     in the next four years, under the
       Accor looks to                        across Central Europe since            step down from her position at the     auspices of brands such as Ritz-
       buy out Orbis                         2014, where Orbis has become           end of March 2019. McPherson has       Carlton, St. Regis and W. More
                                             today a formidable leader. The         been with the company for 32           than 60 projects are planned,
       AccorHotels has launched a bid        proposed transaction will enable       years and was appointed to her         with 17 signed in 2017 alone – the
       to buy all the shares of Polish       AccorHotels to accelerate its          current role in 2010. She will be      company already has 90 residential
       hotel operator Obis it does           development in the region.             replaced by Liam Brown, currently      properties open. “As the number
       not already own, numbering            In addition, it will enable            president, select brands and           of residential condominium
       21.8 million and 47.31% of            AccorHotels to further                 owner and franchise services,          buyers grows globally, Marriott
       the share capital. Obis is the        implement its active                   North America.                         International’s well-known brands
       exclusive master franchisee of        asset management policy.”                 “Amy leaves an impressive track     are ready to welcome them ‘home’
       a number of AccorHotels brands                Hotel Mercure Warszawa         record of accomplishment,” said        and deliver a distinct experience,”
       in central and eastern Europe,                         Grand, Poland.        Marriott International’s president     said Tony Capuano, executive
       and operates 128 hotels in 16                                                and CEO, Arne Sorenson. “Under         vice-president and global
       countries. Accor’s offer is                                                  her leadership, Marriott has moved     chief development officer
       unconditional and worth                                                      from number ten in total rooms         at Marriott International.
       €442 million, and opens from                                                 distribution in Europe to number
       the 17 December 2018 until 19                                                two today – an achievement made        BRAND IDENTITY

       January 2019.                                                                all the more impactful because it      IHG launches voco
          “AccorHotels and Orbis have                                               happened against the backdrop          hotel in Dubai
       built a long-term partnership                                                of some of the most complicated
       since their first business                                                   economic and geopolitical times        IHG has added a Middle East
       agreement 45 years ago,” said                                                in Europe’s history. Amy has been      property to the expanding portfolio
       Sebastien Bazin, chairman and                                                a remarkable leader for Marriott in    of its new upscale voco brand,
       CEO of AccorHotels. “As its                                                  Europe – an incredible steward         rebranding the Nassima Royal
       largest shareholder since 2000,                                              of our culture, the driving force      Hotel as voco Dubai. “IHG has
       AccorHotels has fully supported                                              behind our growth and innovation       identified significant growth
                                                                                    and a consummate professional.         opportunities in upscale
     DEVELOPMENT                                                                    She will be missed.”                   hospitality,” said Pascal Gauvin,
                                             Sense Spa, as well as meeting             In other news, Marriott             IHG’s managing director for India,
     Luxury openings
                                             and events facilities.                 International brand Courtyard          Middle East and Africa. “The
     from Radisson                              “The opening of Rosewood            by Marriott has announced the          signing of voco Dubai is a
     and Rosewood                            Venice will mark a significant         intention to open nearly 30 new        significant step in this direction.”
     The Radisson Hotel Group has            moment for the Rosewood brand          hotels in Europe, almost doubling         The development follows
     added two new properties to the         as we continue to build out a          the brand’s presence on the            the opening of the first voco,
     luxury brand Radisson Collection.       prominent presence in Europe,”         continent. The UK is a key location,   on Australia’s Gold Coast, and
     In Budapest, the Radisson               said Radha Arora, president of         with five new hotels set to open       the rebranding of the Principal
     Collection Basilica will feature a      Rosewood Hotels and Resorts. “We       in cities such as London, Glasgow      St David’s in Cardiff. Another
     rooftop bar overlooking the city        are excited to bring our Sense of      and Oxford. New markets include        transformation to voco is set for
     and will open in 2020. In Moscow,       Place philosophy to this landmark      Georgia, Finland, Iceland and          the Kirkton Park Hunter Valley
     the Radisson Royal Hotel has 501        property so as to provide new          Romania, where hotels will             in New South Wales, Australia, in
     rooms and suites, and an Olympic-       opportunities of exploration not       open in Cluj-Napoca and                2019. “We are very proud to bring
     sized swimming pool, as well as         only for affluent explorers visiting   Bucharest Floreasca.                   this amazing property to life as
     its own fleet of yachts that provide    from afar, but also for members                                               voco Kirkton Park Hunter Valley,
                                                                                    EXPANSION
     cruises on the river.                   of the local community who are                                                and to further build on our
        In addition, 2020 is set to see      looking to experience their city       Marriott                               personal passion for sustainable
     the opening of luxury brand             in a fresh way.”                       International’s                        stays,” said general manager of
     Rosewood’s first hotel in Venice.
                                             APPOINTMENTS
                                                                                    residential                            Kirkton Park Hunter Valley Penny
     Housed in the 15th-century                                                                                            Crossley. “We look forward to
                                             Amy McPherson                          portfolio grows
     Palazzo Dona’ Giovannelli, in the                                                                                     continuing to offer the charming,
     city’s Cannaregio sestiere, the hotel   to leave Marriott                      Marriott International is set          memorable and distinctive
     will feature around 50 rooms and        Amy McPherson, Marriott                to expand its portfolio of             hallmarks we are famous for,
     suites, two dining rooms and a          International’s president and          residential properties by 70%          with a dash of the voco flair.”

       8    Hotel Management International | www.hmi-online.com

HMI077_103_News and stats_v2.indd 8                                                                                                                               19/12/2018 13:35
The gold standard - Hotel Management International
The intelligence > Vital statistics

                 Vital statistics
                Travel to cities growth, 2007–27                                                                      Tourism destination cities by GDP in 2017
              Analysis of arrivals to 300 cities sees a steady projected percentage increase as a share of          In the top ten largest destination cities, only Bangkok and Paris have a larger proportion of
              all destinations.                                                                                     tourism GDP coming from international rather than domestic visitors.
              47%                                                                                                   Tourism GDP split by international         International contribution
                                                                                                                    and domestic, US$bn                        Domestic contribution
              46%                                                                                                   Shanghai                             4.3                                                             30.7

                                                                                                                    Beijing                              4.1                                                      28.4
              45%
                                                                                                                    Paris                                19.3                                               8.6

              44%                                                                                                   Orlando                              3.4                                         21.4

                                                                                                                    New York                             11.7                                        13.1
              43%
                                                                                                                    Tokyo                                7.6                                14.1
              42%
                                                                                                                    Bangkok                              18.2                               3.0

              41%                                                                                                   Mexico City                          2.2                             17.5

                                                                                                                    Las Vegas                            2.6                             16.9
              40%
                                                                                                                    Shenzhen                             7.1                             11.9
                 2007     2009        2011      2013     2015        2017   2019   2021   2023    2025   2027
                                                                                                                                                         0                 10                   20                  30               40
                                                                                                                                            Source: World Travel and Tourism City Travel and Tourism Impact 2018

                September 2018 YTD RevPAR (%) change in Europe
              Overall, Europe has seen 5% growth, with the
              highest increase in Istanbul.

              Edinburgh          -1          Warsaw             -3                                                                                                 4
              Amsterdam          7           Kiev               13
                                                                                                         -1                            3                                            20
              Dublin             8           Prague             -1
              London             1
                                                                                                                                                                                                      60
                                             Budapest           7
                                                                                                 8                             7           5                    -3
              Brussels           12
                                             Vienna                                                             1
              Zurich             6
                                                                5
                                                                                                                         12                     -1                                        13
                                             Bucharest          4
                                                                                                                                                               7
              Paris              17
                                             Belgrade           0                                                    17         6                    5
              Madrid             1
                                             Istanbul           77                                                                                                              4
              Barcelona          -9

              Lisbon             10
                                             Athens             6                                                   -9                         4                0
                                             Helsinki           4
                                                                                                         1                                                                           77
              Rome               4
                                                                                             10
              Copenhagen         3           St. Petersburg 20                                                                                                         6
              Berlin             5           Moscow             60
                                                                                                                                                                                                                          Source: STR

                 Movers and shakers

                                    A slew of                           vice-president of global loyalty            vice-president of well-being for                       Chairman for 2019. Klok was
                                    high-level                          and partnerships. Hempall has               the group’s luxury and upscale                         first elected to the Board of
                                    appointments                        worked at IHG since 2003, when              brands. Brown has over 20 years’                       Directors in 2013 and has
                                    at IHG have                         he joined as the UK-based                   experience in this area and joins                      over 15 years’ experience
                                    seen Brian                          director of global strategy.                from a position as global design                       in the hospitality industry.
                Brian McGuinness. McGuinness                               In addition, Josh Litmann                director at Resense Spas.                                  Four Seasons Hotels and
                join as the group’s senior vice-                        has moved to the group as                      Tommy Lei has become                                Resorts has hired fitness guru
                president of global guest                               head of luxury development,                 CEO of the luxury hotel group                          and author Harley Pasternak
                experience shared services.                             Europe. He leaves a position                GHM, which has properties                              as global fitness adviser.
                McGuinness previously worked                            as vice-president and head of               across Europe, Asia and the                            Pasternak will oversee
                as global brand leader and senior                       development in the EMEA                     Middle East. He moves from                             refinements and enhancements
                vice-president for Marriott,                            region at Hard Rock Hotels                  six years spent at Onyx                                of Four Seasons’ facilities as
                Starwood and Delta hotels.                              and Casinos.                                Hospitality Group.                                     well as creating a video series.
                   IHG has also promoted                                   At AccorHotels, Emlyn                       Best Western has elected                            “Together, we’ll take a holistic
                Christian Hempell to senior                             Brown has been appointed as                 Anthony Klok as Board                                  approach to fitness,” he said.

                                                                                                                     Hotel Management International | www.hmi-online.com                                                            9

HMI077_103_News and stats_v2.indd 9                                                                                                                                                                                             19/12/2018 13:37
The gold standard - Hotel Management International
The intelligence > STR

                                        Middle
                                                                                                                                                The Israeli hotel
                                                                                                                                                market is going

                         Eastern
                                                                                                                                        through something of
                                                                                                                                          a boom period, with
                                                                                                                                          performance hitting
                                                                                                                                             impressive levels
                                                                                                                                               in both city and
                                                                                                                                           resort destinations.

                                    promise
                                                                                                                                          Hotel Management
                                                                                                                                                 International’s
                                                                                                                                              partners at STR
                                                                                                                                                   break down
                                                                                                                                                    the figures.

                                                             occupancy level was the second highest for              As a result, RevPAR jumped 18.9%. In
                                                             the October year-to-date time period, while             absolute values, Tel Aviv has shown the
                                                             the RevPAR level was the highest.                       highest absolute occupancy (73.9%) and
                                                                                                                     ADR (ILS939.40/£196.62).
                                                             Key market growth                                         “Jerusalem and Tel Aviv are the
                                                             At the market and submarket levels,                     two cities outperforming the national
                                                             Jerusalem has been the top performer                    average, but as another indicator of the
                                                             in terms of growth. Through the first ten               health of the country’s hotel industry, we

             I
                    srael’s hotel industry is on pace for    months of 2018, the market’s occupancy                  are also seeing growth across Haifa, Eliat
                    a record-breaking year with average      was up 5.3%, and ADR increased 12.9%.                   and the Dead Sea,” Emanuel said.
                    daily rate (ADR) as the main driver of                                                                                                                                        The
                                                              Figure 1. Record year-to-date RevPAR performance
             performance, according to data from STR.
                Through the first ten months of 2018,                       Israel, October YTD (2013-18)
             Israel posted an ADR of ILS806.28                                  ADR          RevPAR       OCC
                                                                    900 -                                                                                          71%
             (£168.75), a 7.8% increase compared with
                                                                    800 -
             the same period in 2017. Additionally,                                                                                                                70%
                                                                    700 -
             that absolute ADR level was the highest
                                                                    600 -                                                                                ILS565 69%
             for any October year-to-date time period                                                    ILS535            ILS518          ILS518
                                                             ILS

                                                                    500 -        ILS483     ILS494                                                                 68%
             in STR’s Israel database.
                “Solid growth in demand that began                  400 -                                                                                          67%
             in 2016 has given hoteliers in the country             300 -
                                                                                                                                                                   66%
             the confidence to push room rates –                    200 -
                                                                    100 -                                                                                          65%
             even as the presence of the sharing
             economy continues to broaden,” says                      0-                                                                                           64%
                                                                             2013          2014          2015              2016           2017            2018
             Thomas Emanuel, STR’s director of
             business development.
                “Occupancy comparisons have been              Figure 2. Panelist responses
             fairly flat thus far in 2018, but ADR                                          Visited       Heard of and interested in visiting
                                                                   70% -
             increases continue to drive positive year-                            63
             over-year developments in RevPAR                      60% -                          55                                                      55
             [revenue per available room]. Over the                                                                  51
                                                                   50% -
             past two years, both occupancy and
                                                                   40% -
             ADR have been maintained at roughly
             10% above the previous performance                    30% -
                                                                                                                                         23
             peak in the country. All of this points to
                                                                   20% -
             a healthy marketplace overall.”
                                                                   10% -     7                7
                Israel’s occupancy was 70.1% through                                                             6                  4               4
             October (-0.4% year over year), while                 0% -
                                                                      Jerusalem             Dead Sea            Tel Aviv                Haifa           Sea of Galilee
             RevPAR reached ILS565.26 (£118.31),
             (+7.4% year over year). The absolute                                                                                                                Source: STR

               10   Hotel Management International | www.hmi-online.com

HMI077_105_STR.indd 10                                                                                                                                                         19/12/2018 13:39
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Raddison2.indd 1   4.indd 1                                                   26/11/2018 09:42
                                                                              19/12/2018 11:00
Insight > EHMA

             The finer details
             Hans Koch discusses the importance of creating a hotel restaurant that can stand as its
             own unique endeavour, while maintaining the overall ambience of the wider establishment.

             I
                   t is time hoteliers realised that
                   travellers, and untapped local                Hans Koch
                   potential, are tired of the same stuffy       Hans Koch is president of EHMA and official delegate for EHMA’s Swiss
                                                                 chapter. Throughout his 35-year career, he has worked for hotel operators
             dining rooms and never-ending multicourse           all around the world, ranging from Hilton International to ITC Hotels. He is
             meals in hotels. Their restaurants are              also managing director of Hans E Koch Hospitality Solutions.
             notorious for being overpriced and
             underwhelming; they disappoint travellers         impress guests and locals. People also like          restaurant industry around hotels has
             looking for a social atmosphere or a taste        talking on social media about the good               grown exponentially in the past decade
             of home while on the road.                        meals they had (and also the bad) and                and shows no signs of slowing down.
                At the same time, local diners often have      raising a restaurant's quality will result in           Also, in hotels with two or more outlets,
             a perception that hotel restaurants are poor      more positive exposure on social media.              one of those should simply be a bar-lounge
             quality, catering to travellers that don't have       Another way for hotels to create                 with food, as it is relevant to the way people
             the time to find somewhere more 'local'.          attractive stand-alone restaurants is by             eat and drink today. We’re currently looking
             How this affects a hotel’s reputation             partnering with well-known restaurant                at millennials and Generation X, but the
             depends on the prevalence of dissatisfied         operators or celebrity chefs to create a             baby boomers also want to socialise with
             and angry diners who take to TripAdvisor,         buzz. Today’s travellers and locals are              younger people. Hotel lobbies and bars are
             Yelp or other social media to abrade both         always looking for experiences that                  coming back in vogue.
             the restaurant and the hotel that houses it.      offer something more. The ones that get
                Rather than creating a unique concept,         it right are being acclaimed nationally              Room key to success
             hotel restaurants have often ended up as a        and internationally as go-to destinations.           Finally, I would say the biggest
             last-minute addition to the larger enterprise.        In this respect, a big but not impossible        challenge a hotel restaurant faces today
             For them to be fresh and well received,           challenge for hoteliers is the need to               is drawing the line between being a
             they need to be conceptualised and treated        convince owners to invest in attractive              destination where locals and travellers
             as separate business entities, yet remain         concepts, and talented restaurant and                want to visit, while accommodating
             compatible with the hotel’s concept.              bar professionals, and to give these                 in-house guests that expect good
             This can be applied to anything from              professionals the power and room to                  and reliable dining on-property. Hotels
             the restaurant’s design to its social media       operate, create and practice their skills. It        that can successfully manage these
             presence. The most successful are those           is currently implausible to be a top hotel           challenges are boutique concepts and
             that also bring in local flavours and design      with a mediocre restaurant – the modern              brands that are creating winning hotel
             elements authentic to the destination.            guest is too savvy and will ultimately hold          restaurant concepts.
                                                               it against you.                                         Restaurants need to be conceptualised
             Positive reinforcement                                Another challenge is that while the hotel        and treated as business entities, separate
             A number of individual hotels, as well as         industry is focused on localised fine-dining         to, but compatible with, the hotel. And
             some of today’s successful hotel chains,          trends, little attention is paid to the growing      they need to make sure concepts are
             such as Hyatt, Four Seasons and Rosewood          popularity of fast-casual dining, the hybrid         authentic and comfortable, celebrating
             Hotels, have made a strategic shift to only       concept that blends fast-food or quick-              local ingredients and a local atmosphere
             work with specialised restaurant designers,       service restaurants with casual dining.              in unique ways.
             rather than having hotel designers do their       Though fine dining will always have a place             Restaurants must appeal to travellers
             restaurants. Their new concepts cater to          at upscale properties, hotel guests expect           and locals. When communicating internally
             people's appetites for restaurants, lounges       variety, especially if they’re spending              and externally, be open, true and honest;
             and bars that are authentic, casual and           multiple nights at a hotel.                          decide what you want to be known best
             comfortable. They’re looking to celebrate             People want to have an approachable              for. Focus on the pursuit of excellence,
             local ingredients and a local atmosphere          experience, as well as more formal choices           and give your professionals the power
             in a unique and unpretentious way.                – how many times do you want to go out               and room they need to perform.
                The latest trends indicate that there is       and spend £120 a head on food and wine?                 And finally, get serious about
             a rising interest in upping the quality of            So in addition to fine dining, chefs are         reputation management, especially on
             hotel food, both because it can create great      increasingly exploring a quick-service               social media channels like TripAdvisor,
             profits but also because this is a key way to     space in a hotel, as the fast-casual                 Yelp and OpenTable.

              12    Hotel Management International | www.hmi-online.com

HMI077_104_EHMA.indd 12                                                                                                                                              19/12/2018 13:38
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p13.indd 1                                                          19/12/2018 09:49
Company insight > Business management & development

              A lighting control
              partner for hospitality
              After taking into account the new requirements of the hotel sector, and carefully listening
              to professionals in the hospitality arena, Simon, through its technology and design, has
              an answer to the new, specific demands required for the different areas of a hotel.

              S
                       imon understands that in individual spaces, such as      A custom experience in every room
                       guest rooms, more control, features and experiences      The Sense series communicates directly with the guest,
                       for guests are required. These are obtainable through    independent of their age or culture. ‘Sense’ has a modular
              easy-to-use keypads from its ‘Sense’ collection, and simplified   and flexible touch interface for controlling the lighting,
              integration in upgrade processes with traditionally installed     temperature and even for accessing all types of hotel
              devices that also offer connectivity potential through the        services – by way of a simple and user-friendly device
              Simon 100 app. For the needs of group spaces, such as             that integrates into the design of the room.
              event rooms and lobbies, connectivity solutions are provided         ‘Sense’ gives users a feeling of control from first
              for those who need to work during their stay, and biodynamic      contact, thanks to the feedback response provided by
              lighting to make long gatherings comfortable.                     the keypad, which comes in three languages to ensure
                 Simon can offer new lighting designs for the urban setting     communication with the guests. The device vibrates
              of the building, as well as the chance to make the hotel stand    when it is turned on, emits a sound and lights up when
              out in regard to energy efficiency, thanks to electric vehicle    activated. This feedback is adjustable and lets the user
              charging posts for environmentally conscious clients. An          know that the device was pressed correctly, and whether
              example of this feature can be found at the Hotel MiM in          the desired feature has been activated or not. The LED
              Sitges, Spain, the first in Europe to be LEED Platinum-           light also indicates constantly if a feature is on or not,
              certified, and that offers vehicle charging stations.             as shown by the light on the associated icon. ‘Sense’
                                                                                keypads can be customised with a series of symbols
                                                                                to indicate the assigned function.
                                                                                   Also of note is the Simon 100 series, with its
                                                                                technological, appealing design. This series of switches
                                                                                was created to celebrate the company’s centenary, and
                                                                                draws its inspiration from the internet of things (IoT).
                                                                                ‘Simon 100’ can be used to digitise a space through
                                                                                a master device (iO HUB), which features a Wi-Fi
                                                                                connection. This hub connects to a smartphone
                                                                                application, which offers features such as being able
                                                                                to program the devices and outlets in each space. This
                                                                                eliminates the need for complex remotes and displays
                                                                                for guests, maintaining a minimalist design and
                                                                                expanding the potential functionality.
                                                                                   The Simon 100 series recently incorporated
                                                                                customisable kits, offering, for example, an outlet,
                                                                                rocker and USB charger in a compact design that adds
                                                                                the element of connectivity to a reduced space. Not only
                                                                                that, it also ensures the guest’s mobile will be charged
                                                                                as fast as possible, as it is capable of detecting the type
                                                                                of device that is connected.

                                                                                The importance of common areas
                                                                                Hotel occupancy intended for congresses and conferences
                                                                                has taken hold in recent years to become an area with a large
                                                                                financial impact in the sector. Hotels now have to offer
                                                                                common areas that live up to the same standards as the
                                                                                rooms. In an effort to make these spaces both appealing and
              The ‘Simon 100’ series boasts an unassuming and elegant design.   profitable, Simon created ‘Scena’, a control system that allows

               14    Hotel Management International | www.hmi-online.com

HMI077_Simon Sau.indd 14                                                                                                                          19/12/2018 10:15
Company insight > Business management & development

              With guests spending more time in communal areas, the connectivity       Lighting presets have been formulated to capture the correct atmosphere
              of these arenas needs to match that of individual rooms.                 for a specific guest or occasion.

              setting up different lighting types, or ‘scenes’. This                   companies thanks to its compact design, which is
              feature can be used to add diversity to a space, and                     easily integrated into different decorative styles,
              also to adapt it to the needs of congresses and meetings.                and also because it has been designed to boost the
              During the same session, the light can be focused on                     connectivity with the portable versions of today’s new
              the speaker or it can be moved to a specific product                     work tools. ‘Simon 400’ has received the prestigious IF
              when talking about its features.                                         Design Award in the product design category, from the
                 Diffuse lighting and colour changes can be used during                IF International Forum Design.
              the same session. This guarantees the audience’s attention
              and enhances the sales pitch or the training that is                     Exteriors that build brands
              being provided.                                                          Outdoor products have been adapted to meet the needs
                 A biodynamic luminaire can also help to prevent                       of hotel and resort complexes. These solutions feature
              fatigue during long sessions, and thus make the                          refined appearance, such as the Merak and Altair lines,
              congress or meeting more productive for those in                         which can be finished in graphite, for example, to cover
              attendance. Scena calculates the position of the sun                     the route taken by guests arriving by car to the hotel’s
              based on the time and the geolocation of where it is                     car park or entrance.
              being used. With this information, it can recreate the                      In addition, Simon is a pioneer in charging solutions
              lighting that would be present if a closed room were                     for electric vehicles, where it offers customisable options.
              exposed to natural light. This helps the audience to                     These charging stations are also highly customisable
              regulate their circadian rhythms, that is, the physiological             and can be adapted to various needs depending on
              functions associated with our biological clock, thereby                  the specific hotel that offers this service as a courtesy
              avoiding fatigue and enhancing brain activity.                           and which can track the electricity use by means of
                                                                                       a personal card that identifies the guest, turns on
              Come one, come communal                                                  the charger and allows the vehicle to be charged.
              Guests, even those who are not attending congresses                         Simon’s electrical vehicle charging solutions
              or professional meetings, are spending more time in                      stand out because they are simple to use, robust,
              common areas. It is essential that halls, cafeterias and                 easy to install, flexible, can be integrated with third-
              bars offer connectivity options, since more and more                     party systems and have the official certification of
              professionals want to stay connected so they can run                     various electric vehicle manufacturers: Renault, Nissan,
              their business or do work, even when travelling. Hotels                  Mitsubishi and Hyundai.
              must meet this new need as much as possible by offering
              compact solutions that allow professionals to find all the
              connections they need, whether it’s to charge devices
              or go online.                                                              Further information
                                                                                         Simon
                The Simon 400 series, although intended for work                         www.simonelectric.com
              spaces, has been enthusiastically received by hotel

                                                                                   Hotel Management International | www.hmi-online.com                    15

HMI077_Simon Sau.indd 15                                                                                                                                         19/12/2018 10:16
You want to invest in a company with a healthy ROI.
                                                                                                                       So do we.

                          With over 60 years of experience and more than 375 hotels in 43 countries on four continents, Meliá Hotels
                            International is one of the world’s leading hospitality companies. An opportunity to invest in a company
                                      with great ROI. An opportunity to invest in a relationship that’s mutually rewarding.

                                                 30 consecutive quarters of RevPAR growth and a
                                             5.6% increase in annual RevPAR in 2017 compared to 2016.

                                                   LET’S START SOMETHING TOGETHER
                                                            When you belong, we go further

               ME Dubai                                   ME Doha                                           Meliá Serengeti Lodge

               www.meliadevelopment.com

Melia.indd 1                                                                                                                           19/12/2018 09:45
Company insight > Business management & development

              The perfect balance between
              business and leisure
              Founded in 1956, Meliá Hotels International is the leading hotel company in Spain and
              the third largest in Europe, with more than 380 hotels in four continents and an ambitious
              long-term project that will take the group to new destinations worldwide.

              M
                             eliá is currently unrivalled in the resort hotel business       Two can play at that game
                             in southern Europe and the Caribbean, where it                  Meliá has a dual focus on the region, with China as the most
                             continues to achieve selective and consistent                   challenging market for the company, and the South Pacific area,
              growth. However, it was in Bali, Indonesia, where the company                  where it has been operating for over 30 years now. As a family-
              opened its first hotel outside of Spain, in 1985. This venture                 run company, it has created strong business links and a deep
              marked the beginning of its rampant international growth.                      friendship with several hotel owners and business groups, with
                 And now, the company’s development plan is again focused                    whom it shares common ground on values, a similar long-term
              on Asia-Pacific, a market that in the medium term is expected to               vision and a liking for the sustainable tourism development.
              make a similar contribution to the US and Caribbean, and where                    “We always aim to achieve a ‘win-win’ solution with every
              40% of its current growth is concentrated. Meliá has quadrupled                single investor we deal with, because our goal is clearly to create
              its portfolio in the region in just five years, operating in countries         strong partnerships based on trust and common empowerment,”
              such as China, Vietnam, Indonesia, Thailand, Malaysia and                      states María Zarraluqui, global development managing director.
              Myanmar, with a current portfolio of 50 hotels (open and pipeline).            “Meliá has an attractive value proposition for hotel owners and
                 It aims to become the strongest and best-positioned company                 investors, thanks to its know-how, extensive portfolio of leading
              in the increasingly leisure-inspired urban market. The company                 brands, and family values and service culture, which increase its
              aims to make an impact on the growing segment of urban hotels                  appeal in such a demanding market as Asia.”
              that promote business and leisure (‘bleisure’) experiences, as its                The company’s commitment to the region goes beyond
              expertise and Mediterranean lifestyle are integrated throughout                growth, as it has partnered with strategic local players such
              its brands. Said brands are strategically positioned to address                as Greenland in China, TCC-Land in Thailand, or PTSAI in
              different, well-defined customer psychographics.                               Indonesia, to ensure sustainable growth that is fully integrated
                                                                                             and respectful of the local culture and values.

                                                                                             Expand the experience
                                                                                             Meliá set the APAC headquarters in Shanghai over ten
                                                                                             years ago. Since then, it has taken a long time to study
                                                                                             the market, and gained knowledge and experience about
                                                                                             Chinese travellers. Now, the company boasts four hotels in
                                                                                             Shanghai, Xian, Jinan and Zhengzou, and five more in the
                                                                                             pipeline, with three different brands: Gran Meliá, the Spanish
                                                                                             timeless luxury brand; Meliá Hotels & Resorts, with a distinctive
                                                                                             passion for service and the well-being of its guests, and Innside
              Meliá Hotels International promises urban hotels that embody the               by Meliá, with European design-led environments that weave a
              Mediterranian lifestyle.
                                                                                             taste of the unexpected.
                                                                                                In South East Asia, the company is committed to the
                                                                                             development of these three brands, plus Sol by Meliá and
                                                                                             Paradisus, which are dedicated to the leisure segment. Countries
                                                                                             such as Vietnam, Indonesia, Thailand, Sri Lanka, Singapore,
                                                                                             Malaysia or the Philippines are its main priorities, and it already
                                                                                             has plans to open new hotels in popular destinations such as
                                                                                             Bangkok, Phuket, Koh Samui, Chiang Mai, Phu Quoc, Ho Tram
                                                                                             and Cam Ranh Bay, among others.

                                                                                               Further information
                                                                                               Meliá Hotels International
                                                                                               www.melia.com
              The company’s hotels are positioned within luxury destinations.

                                                                                         Hotel Management International | www.hmi-online.com                17

HMI077_Havas Management.indd 17                                                                                                                                    19/12/2018 10:17
Empowering seamless and
           unforgettable experiences
           Payment is a crucial step in the booking process and if you’re thinking about it
           as a simple transaction utility, you’re missing out on an opportunity to engage
           your customers digitally and differentiate yourself from the competition. To be
           successful in the hospitality industry, you must offer a seamless and frictionless
           experience for your guests, also from a payment perspective, while avoiding
           unnecessary risks and costs.
           Worldline is a payment service provider with a long history of working with
           travel industry leaders and growing businesses alike. Whether your company is
           targeting new markets or improving processes where you already are, we tailor
           your payment programs to meet your unique business requirements, growth
           plans and goals.

Wordline.indd 1                                                                                 19/12/2018 09:46
Company insight > Business management & development

               Innovation in hospitality
               Worldline, the European leader in payment services, is changing how people pay for
               hospitality. Chris Lanckbeen, global sales manager corporate accounts travel for the
               company’s new travel vertical, explains how Worldline’s comprehensive capabilities are
               empowering hoteliers to be successful now and in the years to come.

               H
                          otel payments can be bewildering. The hospitality                 its ‘PSP Connect’ system we’re able to charge customers for
                          sector is beset by acquirers, terminal suppliers, online          their bookings immediately,” explains Lanckbeen. What’s
                          payment gateways and dynamic currency conversion                  more, Worldline’s end-to-end service means they can facilitate
               providers. With no easy way of tracking transactions across                  it without asking for anything extra from hotels.
               the board, it is rarely cost-efficient. “What they need is a                    “This is a strategy-changer for the hospitality world,”
               centralised, end-to-end solution,” says Worldline’s Chris                    he continues. “Often, if you buy goods online you need to
               Lanckbeen. “There aren’t many suppliers in the world who                     pay immediately. I haven’t heard a real explanation for why
               can offer that, but we’re one of them.” His company supports                 it should be different for hotels. Almost all customers think
               175 currencies, enabling more than 200 payment methods and                   they’ve already paid when they arrive, so what is there to
               over 40 local acquiring bank connections across every continent.             lose by simplifying the process?
                  In short, a Worldline customer does not need to rely                         By charging the card you’re verifying it immediately:
               on third parties for any service regarding payments and                      “You’re preventing no-shows as well as chargebacks,
               transactions. Since 2015, the company, part of the Atos                      and minimising transactional costs,” Lanckbeen adds.
               Group, has managed AccorHotels’ reservation system
               (TARS), which handles an average of 40 million queries                         We have the know-how and the
               and 120,000 bookings a day. It’s only in the past year,                      knowledge, and like to share this
               however, that Worldline has reached the position from
               which it believes it can truly impact the travel industry.
                                                                                            with our customers.
                                                                                            The skyline is the limit
               Specialist knowledge                                                         At London’s 2018 World Travel Market, Worldline announced
               “We already had hospitality customers in our portfolio,” explains            its collaboration with HotelsPro, the world’s leading hospitality
               Lanckbeen, “but we didn’t have a dedicated vertical until last               marketplace, and payment platform Paytrek. HotelsPro now
               year. It took a huge investment in time, knowledge and people                resells Worldline payment terminals and acquiring services
               to launch it. We have the know-how and the knowledge and                     across its network of more than 600,000 hotels and 34,000
               like to share this with our customers.”                                      travel agencies. Furthermore, HotelsPro customers are now
                  At the same time, a number of strategic acquisitions, most                able to pay using Worldline’s dynamic currency conversion
               notably of Digital River World Payments, have enabled Worldline to           tool, helping hoteliers expand into new markets. Mustafa
               work on a truly global scale. In fact the acquisition of Six Payments,       Korkmaz, managing director of HotelsPro, said the partnership
               a strong European acquirer, makes that Worldline becomes the                 provides customers with a “complete omnichannel payment
               Europe’s largest full end to end payment service provider.                   platform that is seamless, secure and cost-effective”.
                  Worldline has been able to partner with Availpro Fastbooking                 As Lanckbeen sees it, this is just the start of an omnichannel
               to improve their reservation channel manager, which distributes              digital transformation in the hospitality sector. With its
               availability data for 11,500 hotels across more than 300 sales               connected hotel solution, the company is on track to feed a
               channels. Until they joined with Worldline, Availpro could only              digital transformation. This provides the possibility to make a
               manage pre-authorisations. “Pre-authorisations have a low                    reservation, payment, speed up check-in and check-out, ordering
               value and put hotels in a weak position regarding the certainty              services and open doors with the smartkey solution. This
               of reservation, as the hospitality industry is facing a lot of               technology can also allow the finetuning of room temperature.
               no-show situations,” says Lanckbeen.                                            If visitors don’t like the Barcelona skyline, they can put
                  Pre-authorisation can be an expensive process. The fact that              their rooms in New York, or, if they don’t like any skylines,
               Visa and MasterCard only pre-authorise cards for a very limited              an aquarium. Altogether, this promises the customers a seamless
               time undermines hoteliers while exposing them to possible                    and unforgettable experience in the hotel, and make any task
               misuse fees, and the latter charges extra for the privilege.                 easy for the hotel staff.
               Differences between the pre-authorised amount and the
               final bill can lead to extra charges, as can currency and card
               changes. Booking engines can sometimes misindentify fake                       Further information
                                                                                              Worldline
               cards, and often pile on extra expenses by creating virtual                    https://onlinepaymentacceptance.worldline.com
               ones. “But working with AvailPro Fastbooking, and thanks to

                                                                                        Hotel Management International | www.hmi-online.com              19

HMI077_Worldline.indd 19                                                                                                                                        19/12/2018 10:20
Insight > Business management & development

                                        The
                                                                                                           Deloitte’s European Hotel
                                                                                                           Investment Conference

               bigger
                                                                                                           encouraged delegates to
                                                                                                           consider the long view when it
                                                                                                           can be all too easy to become
                                                                                                           distracted by more immediate
                                                                                                           concerns. Hotel Management
                                                                                                           International travelled to the
                                                                                                           Dorchester in London to hear

                              picture
                                                                                                           some of the sector’s biggest
                                                                                                           names debate challenges
                                                                                                           and opportunities coming
                                                                                                           over the horizon.

               D
                          eloitte’s 30th European Hotel    CEOs, esteemed economists, investors,           we are in the cycle generally comes
                          Investment Conference (EHIC)     operators and Deloitte’s aforementioned         down to where you are on the continent
                          may have invited delegates to    head of hospitality and leisure, the truth      (and whether you generally consider
               “Experience the Future”, but, despite       was evident if somewhat frustrating:            your glass half full or empty).
               our best efforts, it can be difficult to    nobody really knows.                              In the 2018 Deloitte European Hotel
               see beyond the here and now.                   Counterintuitively, that is the problem      Investment Survey conducted prior
                  “Since we gathered in London last        with a booming market and sustained             to November’s event, almost 50% of
               year, the question I have been most         upticks; there’s always a nagging               respondents said that the UK was at
               frequently asked is, ‘are we there yet?’”   thought at the back of one’s mind – or          the peak of the investment cycle,
               commented Andreas Scriven in his            at least there should be – that the party       while 25% diagnosed it as already
               introduction to proceedings. And by the     has got to end at some point. Consensus         experiencing a downturn. Greece,
               end of the day, having heard from global    is hard to come by and where one thinks         France and Spain, meanwhile, were

                                                                                           The panel debated gender disparity in the upper echelons of the
                                                                                           industry in a talk entitled ‘Workforce 4.0: Empowering and agile’.

                20    Hotel Management International | www.hmi-online.com

HMI077_107_Deloitte.indd 20                                                                                                                                     19/12/2018 16:09
Insight > Business management & development

               all perceived to be on the upturn. All         Andreas Scriven, Federico J González and Keith Barr were
               the same, London was still cited as            among the industry experts in conversation at the 2018 event.

               the second-most attractive city for
               investment – behind only Amsterdam,
               which retained its number one spot
               from 2017. Spain might be looking
               good, but Barcelona had fallen down
               to sixth in the list. Clarity of any form
               was hard to come by.
                  As we have seen in later stages
               of previous cycles, Scriven also
               acknowledged, 2018 has witnessed
               the return of more exotic deal structures,
               which some investors see as unlocking
               previously untapped value, while
               others interpret it as introducing
               new, unnecessary risk to the market.
               Nevertheless, there remains a great
               deal of capital swashing about and
               pricing metrics have continued in an         “Everything comes down to RevPAR,                    everyone is capable of anything.”
               upward trend. Scriven foresaw a number       but never to revenue per available                   Looking at the difficulties of
               of portfolios and single assets coming       customer,” said Julie Fawcett,                       recruitment more generally, Kate
               to market in 2019, events that would         managing director of Qbic Hotels.                    Nicholls, CEO of UKHospitality,
               truly test the depth and strength of the     “Yes, we might hint at it, but we need               argued that the segment sometimes
               transactional market over the coming         to change our thinking.”                             ran the risk of talking its prospects
               months. Until then, we’d all have to            Karan Khanna, managing director for               down and overstating the extent
               guess and argue.                             the UK and Ireland at IHG, argued that               of a skills shortage.
                                                            new platforms had a significant role to                 “What we have is a labour shortage,”
               Eschewing short-termism                      play in delivering growth in that area,              she countered. “60% of our workforce is
               The hotel market has always been a           though the fundamentals of what                      under 24, and there is a record level of
               long-term game, but it is these more         equated to a good hotel experience                   employment. We do not have a skills
               immediate concerns that can bog down         would remain in place.                               shortage in the industry because you
               investors and distract their gaze from the      “That will come from customer service             can train [anyone to do] anything.”
               bigger picture. Acknowledgement of the       and experience,” he said. “Of course it                 Other sessions included presentations
               dangers of such a mindset prompted           is absolutely mandatory for brands to                from STR managing director Robin
               the 2018 iteration of EHIC to challenge      invest in IT, and it has been this way for           Rossmann and the founder of TW
               its participants to think beyond those       quite some time. It is non-negotiable for            Consultancy Trevor Williams, as well
               next few months and consider how             us to invest in our own infrastructure,              as panel discussions on the investment
               the industry might change more               but the challenge is keeping up with the             opportunities of tomorrow and future
               permanently over the next five               pace of change. And then you can start               consumer trends.
               years and beyond. Technological              to focus on what unlocks value, and do
               advancements, fundamental                    that for 5,500 hotels, not just the 15               View from the top
               demographic shifts, geopolitical             launched that month.”                                The blockbuster ticket, however,
               trends and shrinking talent pools                                                                 now a firmly established highlight
               were all subjects open for discussion.       Diversity in recruitment                             of this annual event, was “view
                  “Those who don’t look to the              Elsewhere, a panel titled 'Workforce 4.0:            from the top”, which traditionally
               future and start preparing now face          Empowered and agile' sought to tackle                sees Scriven in conversation with
               a significant risk of obsolescence and       recruitment challenges, particularly the             a global hotel leader.
               irrelevance as existing and new entrants     acute gender disparity evident in the                   This year, delegates got two for the
               look to disrupt the market,” Scriven         higher echelons of the industry.                     price of one, with both IHG CEO Keith
               cautioned the assembled delegates.              “If it is only women talking about                Barr and Federico J González, president
                  During a panel discussion on staying      women, then that’s a problem,” said Julia            and CEO of Radisson Hotel Group,
               relevant to the guest, much of the           Ingall, chief people and culture officer             taking to the stage. From Brexit
               debate surrounded how the ways in            at Ennismore. “I am an employee first,               to Trump to trade wars, the chief
               which operators view and leverage            a woman second. It is incumbent to go                executives agreed that a major challenge
               technology needed to change.                 out to schools and show everyone that                for anybody making key business

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