HM June 2022

IN THIS ISSUE ANNUAL HOTEL DEVELOPMENT OUTLOOK HIGHLIGHTS FROM AHICE AND DESIGN INN 2022 A GREENER APPROACH TO CONSTRUCTION THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC Vol.26 No.3 Bi-monthly June 2022

INNOVATIVE

LEARNING How virtual reality technology is helping students at Blue Mountains International Hotel Management School develop soft skills for the hospitality industry.

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CONTENTS

June 2022

Vol. 26 No.3

SOUL 28 SPANISH

AC by Marriott makes its debut Down Under.

30 THE PATH FORWARD Industry leaders share their Australasian development outlook for 2022-2023.

FOR GROWTH 40 RECHARGED

An overwhelming sense of optimism prevails at AHICE 2022.

SIGNINGS 44 STELLAR

Major announcements make headlines during industry conference.

IN LEADERSHIP 48 LESSONS

The inaugural Future Leaders Forum sees industry stalwarts share career highs and lows.

UP APPEARANCES 54 KEEPING

Labour shortage prompts hotels to outsource housekeeping.

WITH BOTS 56 BOOKING

Tech-savvy travellers tap into online booking systems and chatbots.

OF PLACE 58 SENSE

Hotels embrace locally-sourced materials for furniture, flooring and textiles.

BOOZE BREWS 60 ZERO

Hotels adapt F&B to meet demand for non-alcoholic beverages.

THE LIMIT 64 SKY’S

Sustainability in commercial accommodation is a rising focus for the industry.

40

A greener approach to hotel construction

64

A look back on some of the highlights of AHICE 2022

30

HM Q&A

20 15 MINUTES WITH FRASER MCKENZIE

Pro-invest Hotels’ Area GM for New Zealand discusses growth in the region.

TO THE TOP 26 RACE

Outrigger CEO Jeff Wagoner talks Asia Pacific expansion.

Regulars LETTER 06 EDITOR-IN-CHIEF’S

James Wilkinson looks at how the global hotel industry is flourishing.

LETTER 08 EDITOR’S

Ruth Hogan talks industry innovation in the wake of exciting announcements.

On the cover

How virtual reality technology is helping hospitality students develop soft skills.

TO KNOW 10 NEED

The essential stories you need to know this month.

Development leaders share their outlook for 2022-2023

12

COVER STORY

Presented this month by Blue Mountains International Hotel Management School. hotelmanagement.com.au

5

EDITOR-IN-CHIEF'S LETTER

Global CEOs bullish as hotel industry flourishes

N

ew York is back. They were the four emphatic words from Accor’s Chairman and CEO, Sébastien M. Bazin, that kicked-off the ‘CEOs Check-In’ session in appropriate fashion at the 44th Annual NYU International Hospitality Investment Conference in New York at the start of June.

London is back. Sydney is back. Singapore is back. Global travel is back. And, as many hotels are quickly finding out across the world, travel is back in numbers like we’ve rarely seen before.

“It feels good and it’s a very interesting time,” Bazin said. “I’ve never seen so much demand and better pricing [and] we now have pricing above pre-pandemic.”

IHG Hotels and Resorts CEO, Keith Barr, said the performance of the industry was even better than what the leaders forecast on the same session at the last NYU Conference in November 2021.

“We sat here last November and said, for North America there would be a record level of demand for Q2 and Q3, and that’s coming to life,” Barr said.

Within North America, the level of the recovery has been astounding, with STR now forecasting that on a nominal basis, RevPAR is now expected to surpass 2019 levels in 2022, a year ahead of schedule.

“The volume of pent-up demand is extraordinary,” said Marriott International CEO, Anthony Capuano. “Throughout the year we are going to growth in both occupancy and rate and the pricing power has been extraordinary.”

Hilton President and CEO, Christopher J. Nassetta, said right throughout the pandemic, he remained confident of the bounce back.

“I frequently [in interviews in 2020] said ‘when we wake up, in a couple of years from now, trends and demand patterns will look a lot more like they did in 2019 than they look now’, and I got a lot of rolling of eyes and a lot of laughter, and that’s now where we are,” he said.

Hyatt Hotels Corporation President and CEO, Mark S. Hoplamazian, said there “have been many false rumours about the demise of our industry in the past, and let’s not be fooled by that, because it’s the human urge to get together, reconnect, convene – whether it’s for business or personal reasons – as there’s an amazing human emotion to it and that’s what I think is driving all this pent-up demand”.

It’s an exciting time for the hotel industry at present and let’s hope things continue to head in the right direction.

Enjoy the issue and I look forward to your feedback as always.

Yours in hospitality, Industry leaders share

positive outlook at NYU International Hospitality Investment Conference

James Wilkinson Editor–In–Chief

The HM global hot list Hotels around the world capturing our attention this month.

ONE: The Carlyle, New York, USA @rosewoodthecarlyle

TWO: Eos by SkyCity, Adelaide, South Australia @eosbyskycity

THREE: Hotel Grande Bretagne, Athens, Greece @hotelgrandebretagne

FOUR: London Marriott County Hall, London, England @londonmarriottcountyhall

Hilton President and CEO, Christopher J. Nassetta, always remained confident the industry would bounce back 6

HM The Business of Accommodation

Marriott International CEO, Anthony Capuano, says the volume of pent-up demand is extraordinary

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EDITOR'S NOTE

Next-gen thinking

T

Managing Director

he needs and wants of the post-pandemic traveller have been a top talking point in the industry over the last couple of years, and now we are seeing the fruits of innovative thinking come to the fore.

The rise of next-generation accommodation targeting Gen Z and Millennial travellers is evident in the introduction of two new co-living brands to Australia in May – Selina and lyf.

These budget-friendly brands are catering to one interesting trend in particular – the digital nomad.

As a result of the pandemic, remote working has become the norm, giving rise to the concept of work from anywhere. And with many eager to make up for lost travel opportunities, these trendy brands present an opportunity to merge travel with work.

Panama-born hospitality brand Selina’s ‘stay, work and play’ concept targets Millennial and Gen Z travellers.

Selina Managing Partner for South East Asia, Australia and New Zealand, Gadi Hassin, told me, “Selina is for people who prioritise experiences and human connections, have adventurous spirits and tick off their to do list on the move and have seamlessly merged work and life (and not divided them into two competing segments).”

Interestingly, both brands are strongly focused on fostering a sense of community among guests – something that may be appreciated by travellers after long periods of isolation from others due to the pandemic.

Co-living hotel brand lyf – which stand for ‘live your freedom’ – has been designed to encourage guest interaction through such features as a communal kitchen, shared workspace, laundrette, social space and more.

Lyf made its Australian debut in May with the opening of lyf Collingwood. The Ascott Limited Managing Director – Australia, David Mansfield, said it signals the start of a new phase of growth for the business.

“We see great opportunity for expansion across key gateway cities in Australia,” he said at the time.

Of course, there’s no ‘one size fits all’ when it comes to the post-pandemic traveller, but I’m excited to see how other brands step up to meet changing expectations.

Ruth Hogan Editor

MEET THE HM TEAM…

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HM The Business of Accommodation

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19

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

Read more at HotelManagement.com.au.

01

La Vie snaps up The Islington La Vie’s boutique portfolio grows with acquisition of Hobart hotel.

LA VIE HOTELS and Resorts is fleshing out its five-star collection with the acquisition of award-winning boutique property, The Islington Hotel Hobart.

Located in South Hobart, with views of

Mount Wellington, The Islington is a 175-yearold property with 11 guestrooms and an 10

HM The Business of Accommodation

expansive collection of art and antiques.

“The Islington Hotel has long been one of Australia’s most charming boutique properties thanks to its understated luxury offering and we plan on further elevating the hotel’s offering and expanding on the incredible service and experience the hotel delivers

to guests,” said La Vie Hotels and Resorts Managing Director, Craig Bond.

“Acquiring the Islington is part of a wider, strategic expansion plan the group has within Australia and we look forward to further developing and growing our boutique hotel portfolio over the next 12-18 months.”

NEED TO KNOW 03

QT Newcastle unveils F&B offering

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An inventive dining experience will be led by acclaimed chef Massimo Speroni.

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02

IHG’s Leanne Harwood appointed to lead new industry body.

THE NEW INDUSTRY body representing Australia’s accommodation sector following the amalgamation of Accommodation Association and the Australian Hotel Association’s Tourism Accommodation Australia will be known as Accommodation Australia.

IHG Hotels and Resorts SVP Managing Director – JAPAC, Leanne Harwood, has been named as President of the amalgamated organisation’s Executive Committee, while Marriott International Area Vice President of Australia, New Zealand and Pacific, Sean Hunt, will be Vice President. Hotelier and TFE Hotels Independent Company Director, Bruce Copland, will take up the position of Treasurer.

Speaking exclusively to HM, Harwood said that she is honoured to lead the new amalgamated industry association.

“The amalgamation to create Accommodation Australia brings together two industry leading organisations to form one key strong voice,” Harwood said.

“Now – more than ever – we need one key voice for our industry as we build our hospitality and accommodation category as the place to work and the place to be.”

The merger process of the two associations is on track to be completed in late 2022, subject to the member vote, with Martin Ferguson AM playing a critical role as Special Counsel.

t as wc Ne QT

Accommodation Australia launches

THE HIGHLY-ANTICIPATED QT Newcastle opens its doors in June, three years on from the initial signing with Iris Capital.

The property will house a signature food and beverage offering that heroes local produce.

Jana restaurant and rooftop bar, Rooftop at QT, will be led by acclaimed Chef Massimo Speroni, from multi-award-winning Brisbane restaurant, Bacchus.

Having worked at two-Michelin-starred restaurant San Domenico in Imola, Italy, and one-Michelin-starred restaurant Café le Paillotes in Pescara, Speroni brings a wealth of experience in premium dining.

“True to the QT philosophy, QT Newcastle will offer a highly inventive food and beverage experience, highlighting local provenance,” said Speroni.

le’ sr es ce ta u nan ran e v o t high lights local pr

The Gold Coast hotel is The Langham’s first beachfront property

04

The Langham Gold Coast opens Luxury hotel brand dips toes in resort market.

AFTER EIGHT YEARS in the making, The Langham is introducing its first beachfront property in Australia with the opening of The Langham Gold Coast and Jewel Residences on June 23.

The 339-room luxury hotel, which is at the centre of three majestic towers situated between Surfers Paradise and Broadbeach, is the first development with direct beachfront access to be built on the Gold Coast in more than 30 years.

“Opening our first beachfront property in one of the world’s most desirable travel

destinations is an incredible milestone, giving Australians and international travellers a new luxury resort experience through The Langham lens,” said the Langham Hospitality Group’s Regional Vice President, Operations – Pacific & Southeast Asia, Jeffrey van Vorsselen.

“The Gold Coast is a rich and diverse landscape which offers everything from rainforest adventure and golden beaches to vineyards and farmers markets which we want to introduce to our guests travelling for leisure or business.” hotelmanagement.com.au

11

PROMOTION

(Seated) Ovolo’s Group Director of People and Performance, Nicole Downes, and Accor’s Vice President Operations NSW and ACT, Scott Boyes, meet with students of Blue Mountains International Hotel Management School

INNOVATIVE

LEARNING

Students at the Blue Mountains International Hotel Management School are using cutting edge virtual reality technology to develop soft skills for the hospitality industry.

O

ver the last two years, the world has changed. And so, it’s time for a fresh approach to the way we teach the next

generation of hoteliers.

With international borders now reopened, we’re thrilled to see an influx of activity and the return of tourism in Australia. Whilst this highly-anticipated recovery is warmly

welcomed, it also brings both challenge and opportunity as we face a drastic labour and skills shortage.

Industry growth is now outpacing the supply of skilled professionals.

According to recent data, the number of hospitality job ads posted in Australia has just reached a two-year-high, jumping 20% in February alone. In contrast, the number of applicants for hospitality jobs has hit a two-year low in 2022.

12

HM The Business of Accommodation

“The biggest challenge for industry right now is retaining talented young people. We need to think long term about developing the skills of future managers,” said Jerome Casteigt, Chief Commercial Officer and General Manager of Business and Hospitality, Torrens University Australia.

More than ever, hospitality businesses need innovative solutions for attracting and training bright young talent at speed. This is why Blue Mountains International Hotel Management School (BMIHMS) at Torrens University Australia has led the charge in this new frontier of learning – Virtual Reality (VR) and Extended Reality (XR).

“Big problems need radical solutions, and that involves looking at all the learning opportunities that new technologies present. So far, we’re seeing some exciting results from our ground-breaking new VR and XR simulated hotel learning platform,” said Associate Professor Simon Pawson, Associate Dean and Academic Director, Torrens University Australia.

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COVER STORY

t gh ou var r h t iety ove of d i fferent tasks as they m

he

VR AND XR: A NEW FRONTIER IN SOFT SKILLS TRAINING

XR can and will change the landscape of hotel management education.

The hotel industry must lean into the training opportunities this innovation presents for both current and aspiring talent.

“At Torrens University Australia we have a commitment to deliver immersive, authentic, industry-based learning, and we are also passionately committed to exceeding the possibilities of classroom learning through digital innovation,” said Eoghan Hogan, Director of Product Innovation, Torrens University Australia.

With over 30 years of rich legacy in producing world-class hotel leaders and a strong focus on being the Industry’s University, BMIHMS at Torrens University is perfectly positioned to introduce this new player.

“By combining research and technology we are able to create an informed learning design strategy which transforms learning experiences while aligning to the future of digitally transformed higher education,” said Pawson.

HERE’S HOW IT WORKS

This technology extends learning beyond a face-to-face environment and into the digital space of XR. Consisting of a VR experience and a desktop 3D scenario version, this brings traditionally in-person learning into a truly borderless realm. Whilst it won’t replace the tactical nature of face-to-face learning, this exciting tool has the potential to allow for on-demand learning like never before.

The VR experience allows learners to use goggles to navigate through life-like scenarios, whereas the XR hotel offers a 3D immersive experience from any laptop.

Learners complete different tasks as they move around the virtual hotel space; inspecting rooms, serving digital guests and making decisions across all areas of hotel operations. They can make mistakes, test their knowledge, practise different management approaches, and get real-time feedback as they work through scenarios tailored to the development of their soft skills, confidence and emotional intelligence.

VR AND SOFT SKILLS TRAINING IN THE HOSPITALITY INDUSTRY

As more research emerges demonstrating how VR can be utilised as a highly effective tool for soft skills and emotional intelligence training, companies around the world are increasingly adopting this technology.

In 2020, Hilton developed its own VR empathy training program for corporate staff to better understand the tasks of hotel employees. Best Western has also implemented VR customer service training for new front desk employees, and reported a significant decrease in customer complaints as a result.

There are some clear benefits of this technology that have led to operators adopting VR soft skills training. VR training is relatively inexpensive, it’s scalable, it’s accessible from anywhere in the world, and it offers real life authentic learning experiences. According to new research it’s even more impactful than most forms of current workplace training.

“The hotel industry is currently facing an unprecedented shortage of skilled workers worldwide. As skills shortages continue to emerge in the post-pandemic digital economy, VR training is expected to take an increasing role in onboarding new talent and providing the skilled professionals that businesses demand,” said Casteigt.

VR can help to fill the gap in soft skills and emotional intelligence training today. However, the hospitality industry needs to invest in training and innovative solutions if we’re going to educate the industry leaders we’ll need tomorrow. The ground-breaking VR- and XR-simulated hotel from BMIHMS is one more step towards an exciting future. n

VR headsets allow students to use goggles to navigate through life-like scenarios

hotelmanagement.com.au

13

NEED TO KNOW

Virgin customers can access Qatar Airways’ route network of over 140 worldwide destinations

05

Qatar, Virgin launch strategic partnership Qatar Airways’ passengers will be able to travel to 35 destinations on Virgin Australia’s domestic network.

A great win for the industry

By Richard Munro CEO, Accommodation Association IT WAS WONDERFUL to see 1200 delegates attend the AHICE Conference in Adelaide, bringing the accommodation industry together to discuss the outlook for the industry. This included a large focus on new investment and brands that are emerging in the industry. A common thread from the hoteliers attending were topics such as the labour crisis and the fact we are not yet welcoming enough Working Holiday Makers and students who traditionally work in our sector, particularly in seasonal locations.

Labour supply to our industry remains the number one issue we are prosecuting to government/s, and there was some good news on this with a new hotel industry labour agreement announced recently. Hotels wishing to utilise the scheme will need to apply to the Department of Home Affairs. We will publish more information on our website or the TAA website.

The work that has been undertaken means that circa 60,000 WHM are already in the country currently, however, this figure was around 160,000 before the pandemic, and restoring these numbers will take a combined effort of all members working together.

The amalgamation of the AAoA and AHA/TAA was also a hot topic with a key announcement that the new name for the proposed organisation will be Accommodation Australia. The new President will be Leanne Harwood, Sean Hunt will be the Vice President, and Bruce Copland has been named Treasurer.

14

HM The Business of Accommodation

QATAR AIRWAYS AND Virgin Australia have signed a new strategic partnership, commencing mid-2022, that will give travellers greater access, elevated customer experiences and unique benefits when travelling between Australia and Qatar Airways’ global network.

“Today is more great news for Virgin Australia and Velocity Frequent Flyer members who are hungry to travel internationally,” said Virgin Australia Group Chief Executive Officer, Jayne Hrdlicka.

“We are incredibly focused on creating great travel experiences and our new partnership with Qatar Airways will

significantly expand Virgin Australia’s footprint into the Middle East, Europe, and Africa, offering hundreds more ways our guests can seamlessly see the world.”

Thanks to the new codeshare agreement, Qatar Airways’ passengers will be able to travel seamlessly to 35 destinations on Virgin as well as recently relaunched short-haul international markets, including Fiji and Queenstown, New Zealand.

Similarly, Virgin Australia customers and members of the airline’s award-winning Velocity Frequent Flyer loyalty program, will be able to directly access Qatar Airways’ route network of over 140 worldwide destinations.

Mövenpick Hotel Auckland will feature 207 guestrooms and suites 06

Accor introduces Mövenpick to New Zealand Auckland and Wellington will welcome the premium brand.

ACCOR IS INTRODUCING its premium Swiss-born hospitality brand Mövenpick Hotels and Resorts to New Zealand with two hotels opening in Auckland and Wellington respectively.

Mövenpick Hotel Auckland, located in the heart of the city, opened its doors to guests on May 16, while the Wellington property will open in July.

“Mövenpick Hotel Auckland offers something different to the New Zealand market,” said Accor Pacific Chief Executive Officer, Sarah Derry.

“Guests will receive a world-class hotel experience and enjoy the distinct moments and flavours of Mövenpick.”

The hotel will offer guests signature Mövenpick experiences such as a 24-hour Sundae Service, available in-room, and a Chocolate Hour.

Mövenpick Hotel Auckland will feature 207 guestrooms and suites, on-site and virtual gyms, signature bar and restaurant BODA, street-side café and a dedicated meeting and events space.

NEED TO KNOW 07

Outrigger reveals $80 million Waikiki resort transformation

The flagship property has reopened to the public.

Outrigger welcomed approximately 500 VIP guests to the official opening

Outrigger is spending upwards of US$300 million across its Hawai‘i assets to uplift the destination

OUTRIGGER HOSPITALITY GROUP has reopened the company’s flagship property, Outrigger Reef Waikiki Beach Resort, following an extensive US$80 million transformation.

Outrigger’s President and CEO, Jeff Wagoner, reiterated the company’s drive for authentic hospitality and renewed commitment of the place – divulging that Outrigger is spending upwards of US$300 million across its Hawai‘i assets to uplift the destination while preserving and perpetuating the vibrant heritage of the Islands.

“It is with great pride that we welcome friends old and new to celebrate our reimagined Outrigger Reef Waikiki Beach Resort,” he said.

“Through this extensive transformation, our goal was to ensure that this was a place for locals and visitors alike to come and enjoy Waikīkī as it should be – where Hawaiian music lifts our spirits, where local foods nourish our bodies and local culture enriches our minds.”

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15

NEED TO KNOW

Selina invites young travellers to stay, work and play

HOTELS IN REGIONAL NSW have just come off their best April since before the pandemic began.

Pent-up demand is starting to translate into good occupancy numbers in the bush and members reported bumper numbers on the South Coast, the Central Coast, the Mid-North Coast and the Hunter.

Occupancies are also improving in our CBDs as well.

Sydney occupancy levels are sitting at about 65 per cent, which is the highest since February 2020, and hoteliers are hoping Vivid will do for Sydney what the Grand Prix did for Melbourne.

April 2022 figures released by STR show Melbourne’s hotel industry recorded its highest monthly room rates on record during the Australian Grand Prix.

Our biggest challenge is still labour, but there is some good news on that front.

After extensive lobbying by TAA and AHA, the federal government has approved a temporary labour agreement specifically for hotels and accommodation.

This targeted set of labour agreement settings is designed to support the hotel and accommodation industry recover and will be reviewed after 12 months.

The agreement will enable approved businesses to sponsor skilled overseas workers when there is a demonstrated need that cannot be met in Australia.

This is a good win. A pathway to permanent residency is a huge drawcard allowing us to compete head-on with countries like New Zealand and Canada who already have it in place.

Selina debuts in Australia Melbourne welcomes destinations for digital nomads.

PANAMA-BORN HOSPITALITY BRAND Selina has introduced its ‘stay, work and play’ concept to Australian shores with the launch of Selina Central Melbourne and Selina St Kilda in May. Targeting Millennial and Gen Z travellers, Selina aims to take advantage of the postCOVID boom in remote working and travel by offering an accommodation that caters to the lifestyle of the digital nomad.

“Selina is for people who prioritise experiences and human connections, have

adventurous spirits and tick off their to do list on the move, and have seamlessly merged work and life (and not divided them into two competing segments),” Selina Managing Partner for South East Asia, Australia and New Zealand, Gadi Hassin, told HM exclusively.

Selina’s Melbourne properties offer budgetfriendly accommodation as well as co-working and recreational spaces including in-house cinemas, libraries, kitchens, wellness spaces, cafés and bars.

09

Marriott lands first Western Sydney Airport hotel Courtyard by Marriott Western Sydney Airport will open in 2026.

Courtyard by Marriott brand, will have outstanding prospects of long-term success.”

The 200-room hotel, will feature an allday dining restaurant, cafe and bar, while additional plans include a fitness centre and 580sqm of meeting and ballroom space.

ro 020 The

MARRIOTT INTERNATIONAL HAS signed the first hotel to be part of the Western Sydney International Airport Aerotropolis through an agreement with 1990 Developments Pty Ltd. The AU$70 million Courtyard by Marriott Western Sydney Airport hotel is expected to be completed in 2026, to coincide with the opening of Nancy-Bird Walton airport.

“Western Sydney International Airport is one of Australia’s most important infrastructure projects, and today we are delighted to announce the first hotel to be part of the new Aerotropolis,” said Marriott International Vice President of Hotel Development – Australia, New Zealand and Pacific, Richard Crawford.

“As the world’s largest hotel company, Marriott International operates more than 500 airport hotels across the globe. It is an industry segment we know well, and we are very confident that a new hotel, under our

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WYNDHAM NEWS

PROMOTION

An artist’s impression of TRYP by Wyndham Remarkables Park Queenstown

A NEW DAWN FOR WYNDHAM Wyndham Hotels and Resorts is expanding its presence in Asia Pacific with a number of recent signings. Here, Wyndham’s Vice President, Business Development SEAPR, Matt Holmes, shares an insight into the company’s strategic focus for 2022 and beyond.

TELL US ABOUT WYNDHAM’S RESULTS AND KEY ACHIEVEMENTS LAST YEAR?

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yndham Hotels and Resorts added 120 new hotels and signed 200 properties in 2021 in Asia Pacific. I am proud to say that we have a portfolio of over 1,600 hotels in operation in Asia Pacific across 20 regional markets, which is continuing to grow this year.

We are one of the leading international hotel franchisors in Greater China and a key partner of choice in the industry across APAC. In 2021 and 2022 we have introduced four new hotels in Wellington, Auckland, and Christchurch –bringing New Zealand’s portfolio to 16, as well as the expansion of our presence in key leisure markets such as Hervey Bay in Queensland Australia.

WHAT HAS BEEN DRIVING WYNDHAM’S GROWTH?

We continue to actively engage owners to understand their evolving needs against changing market conditions. We focus on driving value, lowering owners' cost of doing business and increasing overall efficiencies to drive their overall revenue and profitability.

We have developed several longstanding partnerships with owners across APAC, and this contributed to our record-breaking growth.

es lm o H Matt For our guests, we will focus on delivering good customer service and invest in our award-winning Wyndham Rewards loyalty program.

We will continue to grow our development pipeline to capitalise on an anticipated upswing in travel in the region. We were delighted with the optimism in the room at AHICE in Adelaide – we feel it too.

We will continue to focus our energies on opening hotels on time and on budget, to capitalise on the anticipated surge in domestic and regional travel.

The newest addition to our Asia Pacific portfolio was Microtel by Wyndham Wellington Central in New Zealand which opened in May. This year will also mark our return to the South Australian market, with the opening of TRYP by Wyndham Pulteney Street, Adelaide, and Wyndham Wallaroo Shores. These will be the first two of several hotels in South Australia over the coming years, including hotels in Victor Harbor, McLaren Vale, and city of Playford, as well as our flagship Wyndham Grand Adelaide due to start construction the back end of this year.

Overall, we are making great progress towards our goal of reaching 2,000 hotels in Asia Pacific by 2025. n

We continue to see the positive trading effects of pent-up demand for travel with interstate and international borders quickly reopening and testing requirements easing.

WHAT IS YOUR STRATEGIC FOCUS FOR 2022?

Our development strategy is to place the right hotel under the right brand with the right owner. With 23 brands in our global portfolio, we have a brand for every occasion. We will continue to adopt our ‘Owners First’ philosophy and place them at the center of everything we do. We will continue our investment in technology to simplify operations and keep costs low for owners.

An artist’s impression of Wyndham Wallaroo Shores Resort

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Consumers overpaid approximately $38 million for rooms between December 2016 and September 2019

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Trivago fined $45 million by Federal Court The bookings platform was found to have misled consumers about hotel rates.

TRIVAGO HAS BEEN fined $44.7 million by the Federal Court for making misleading representations about hotel room rates on its website and in television advertising.

In January 2020, the Federal Court found that Trivago had breached Australian Consumer Law by misleading consumers into believing its website would help them find the best deal or cheapest rates for a given hotel.

According to consumer watchdog the ACCC, Trivago used an algorithm which favoured online hotel booking sites that paid Trivago the highest cost-per-click fee and therefore did not highlight the cheapest rates for consumers.

“One of the ACCC’s key priorities is to hold online businesses accountable for their representations to consumers and to ensure

The 54-room hotel includes one- and two-bedroom apartments

consumers are fully aware of the way these supposedly free services actually work and what influences the prices they display,” said ACCC Chair Gina Cass-Gottlieb.

“The way Trivago displayed its recommendations when consumers were searching for a hotel room, meant consumers were misled into thinking they were getting a great hotel deal when that was not the case.”

Trivago admitted that between December 2016 and September 2019 it received approximately $58 million in cost-per-click fees from clicks on offers that were not the cheapest available for a given hotel. As a result, consumers overpaid hotel booking sites approximately $38 million for rooms featured in those offers.

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Holiday Inn Express completes dual-branded NZ development Pro-invest and IHG have opened a Holiday Inn Express alongside a voco property in Auckland City Centre.

Holiday Inn Express Auckland offers modern accommodation at affordable prices

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Choice adds Melbourne CBD hotel Choice builds its portfolio of city-based properties.

CHOICE HOTELS ASIA-PAC is expanding its metropolitan portfolio with the addition of Comfort Hotel Melbourne Central.

The 54-room hotel, located close to popular shopping precincts and tourist destinations, includes one- and two-bedroom apartments with full kitchens and laundry facilities.

“There is no doubt that Melbourne’s CBD was hit hard during the pandemic, but with holidays at the forefront of the agenda now, particularly for international visitors, we’re looking forward to delivering on strong growth for our CBD hotels,” said Choice Hotels Asia-Pac CEO, Trent Fraser.

Comfort Hotel Melbourne Central’s General Manager, Samir Chandnani, is a third-generation hotelier with family properties across Asia Pacific including in India and New Zealand. He said he is excited to welcome back travellers.

“Now that Australia is open, it is a wonderful time to capitalise on this opportunity and get overseas travellers excited about what Melbourne has to offer,” Chandnani said.

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HM The Business of Accommodation

PRO-INVEST HOTELS AND IHG Hotels and Resorts have introduced New Zealand’s first dual branded hotel development with the opening of Holiday Inn Express in Auckland this week alongside the recently opened voco Auckland City Centre.

The 294-room Holiday Inn Express Auckland City Centre offers affordable accommodation with a contemporary design. Each of the guest rooms feature floor to ceiling windows and dedicated workstations.

“Much thought has been put into every detail of this hotel and we are very proud to have the Holiday Inn Express brand sitting alongside voco Hotel in New Zealand’s first dual branded hotel development,” said Proinvest Hotels Chief Operating Officer, Shantha de Silva.

It has been a year of ‘firsts’ for Pro-invest Hotels, according to de Silva.

“We were the first to bring the voco brand to New Zealand and the first to bring Holiday Inn Express to the country with our Queenstown property,” he said.

“Now, with quarantine free travel returning to New Zealand we look forward to welcoming travellers to Auckland and can’t wait for our guests to experience these new properties.”

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Sydney´s Porter House Hotel to open in July The luxury hotel will occupy 10 floors in reimagined precinct

AN 1870S HERITAGE-LISTED building in Sydney will be home to a new luxury hotel, with the opening of The Porter House Hotel – MGallery this July.

The Castlereagh Street hotel occupies the first 10 floors of a 36-storey mixed-use tower within the re-imagined Porter House precinct.

Over 130 residential apartments sit above the hotel, while three different food and beverage venues span four levels.

“Emanating an effortless duality, the redeveloped Porter House precinct plays with the concept of intriguing contrasts,” said General Manager, Joleen Hurst.

By placing two extraordinary buildings together, we have created something remarkably original that we hope local, interstate and international guests will be fascinated by.”

The property features 122 rooms, fitness centre, heated pool level, break-out rooms and several private dining rooms.

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Wyndham opens its first Microtel in New Zealand The 81-room property takes Wyndham’s NZ portfolio to 16.

WYNDHAM HOTELS AND Resorts opened New Zealand’s first Microtel in the nation’s capital city of Wellington.

The property's 81 guestrooms feature unique statement pieces such as Banksy art prints.

The hotel will also incorporate sustainability initiatives such as a recycling program for inroom amenities.

“As borders gradually open up, we are pleased to be introducing our Microtel by Wyndham brand into the Australasian market to tap into the pent-up travel demand and cater to corporate and leisure travellers looking for a simple and seamless travel experience, without sacrificing important creature comforts and exceptional customer service,” said Wyndham Hotels and Resorts President, Asia Pacific, Joon Aun Ooi. Microtel by Wyndham Wellington Central joins Wyndham’s growing portfolio of 16 hotels

in New Zealand, and Ooi says there are many more in the pipeline over the coming years.

“Looking ahead, we will have three unique brands located in the city of Wellington to cater to all types of travellers looking for an economy, midscale, or lifestyle accommodation options while taking advantage of the city’s major corporate and leisure hubs,” he said.

Microtel by Wyndham Wellington opened in May

Let’s talk about workforce

By James Doolan Strategic Director, Hotel Council Aotearoa

MINISTER OF TOURISM Stuart Nash has declared he is happy to see significant increases in entry level wages in the hospitality industry. The Labour Government has recently rolled out new immigration settings and is introducing a “fair pay” collective bargaining regime. The hotel and accommodation sector has a lot of entrylevel roles and will be disproportionately affected by these changes.

Hotels face a gigantic workforce rebuild against low unemployment rates. In the first 12 months after COVID border closures, accommodation sector workforce shrank by 54%. Understandably during a global pandemic, students and backpackers left New Zealand in droves.

Small tourist destinations such as Rotorua, Queenstown and the West Coast simply do not have enough permanent residents to refill these hospitality sector roles. It’s not a question of wage levels.

As demand rebuilds, we will see hotels unable to open all guest rooms and amenities due to staff shortages. Revenue will be unnecessarily lost, and service levels will suffer.

Glib advice from bureaucrats to “be more efficient with labour’ or “use technology in your business” portrays breathtaking ignorance of how hospitality works, in practice. “Less labour and more technology” means more self-service, more budget accommodation and more backpackers and freedom campers.

Stuart Nash has a vision for New Zealand to attract “high value” tourists. The government’s new policies for labour and immigration are going to make that a very hard ask indeed.

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NEED TO KNOW

Voco Auckland City Centre provides an upscale hotel experience 15

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Pro-invest Hotels’ recently-appointed Area General Manager for New Zealand, FRASER McKENZIE, spoke to RUTH HOGAN about opening the nation’s first dual-branded hotel property, and future plans for growth.

Being from Auckland, how does it feel to see such strong hotel investment in your hometown?

My return to New Zealand has been both emotionally engaging and a refreshing experience to see the growth and maturity of the hotel industry after a 17-year hiatus from Auckland, eight years out of New Zealand. This [dual development] is a landmark hotel construction that adds not only to the Auckland skyline but enhances New Zealand’s gateway hotel offering with two international brands – voco and Holiday Inn Express. With authentic Kiwi service, Auckland continues to be a premier destination for conventions and exhibitions and is a must-stop location for domestic and international leisure travellers, and it is of no surprise that investment in the hotel space is growing.

You’ve worked in various hotels throughout Asia Pacific and in this new role you’ll be overseeing Pro-invest’s growing NZ portfolio. What makes New Zealand hotels and hospitality unique, in your opinion?

The consistent quality hotels in this country underpins the authentic approach New Zealanders have to the service industry. It is the professionalism and engagement of our teams that make the difference and creates a desire for international tourists to engage. The hospitable nature of Kiwis also provides a high level of confidence for event and incentive organisers, all over the globe. The feedback we regularly get from our source markets is that people are struck by our amazing teams and unparalleled experiences.

With Holiday Inn Express and voco both occupying this new development, how will they complement one another?

Doubling the hotels rooms that our IHG One Rewards membership can access in Auckland, as well as providing multi-level accommodation with different service offerings in the one location puts us in an 20

HM The Business of Accommodation

unrivalled position. Whether its travellers wanting to immerse themselves in an upscale voco experience, or travellers in town for an event or visiting friends and family, voco Auckland City Centre and Holiday Inn City Centre provide secure, central accommodation in the beating heart of Auckland City. We have one team that works across both hotels, which means consistency of service and local operators and event organisers can take comfort in knowing they have a single point of connection across both brands.

The two hotels both have very different customer value propositions, but what attributes do they share?

Voco Auckland City Centre provides an upscale hotel experience from Mozarella and Co’s Italian styled creations to the unsurpassed views of the inner harbour and beyond from Bar Albert, our rooftop venue.

Holiday Inn Express Auckland City Centre offers upper-midscale convenience and practicality with absolute connectivity from the front door to the in-room casting technology. While different propositions and value offers, it is the authentic, attentive team moving across both hotels that create a memorable experience for our guests – all underpinned by the IHG True Hospitality values and operating culture.

What does the future look like for Pro-invest in New Zealand?

With hotels in two of the country’s key destination, Pro-invest Hotels is a significant provider in both domestic and international tourism and we’re excited for the future. The trajectory Pro-invest Hotels has had in the Pacific in 2022 has been extraordinary, having opened seven hotels this year alone. Voco Brisbane City Centre and Holiday Inn Express and Suites Sunshine Coast opened in June, and we feel a great connection with sister properties across the ditch and have no doubt that the growth in these hotel brands will be of great benefit. We will have exciting news to share [about new hotels] in the not-too-distant future. n

NEED TO KNOW

A French Bistro on the property has already opened to the public

The Strand will also feature a rooftop bar 16

Historic Sydney pub to reopen as boutique hotel The Strand Hotel Sydney is set to open this winter.

THE STRAND, A 99-year-old pub in Sydney’s Darlinghurst, is set to reopen after a major refurbishment in which it has been transformed into a four-level dining and hotel precinct.

The first in a series of venues by Public Hospitality to open over the next year, the property includes a modern French-inspired bistro, which is open now, and a boutique hotel and rooftop bar, which are due to open in winter.

“As Darlinghurst continues its evolution seen over recent years, we believe in the

potential, growth and revitalisation of the local area,” said Public Hospitality Executive Director, Peter Crinis.

“With The Strand’s opening, we want to offer something that leans on the charm, history and character of the building and neighbourhood right on the fringe of Sydney’s bustling city, while creating something new and fresh for locals and travellers.

“As the experience of dining and travel continues to evolve, we are looking forward

to welcoming guests to experience something truly boutique for a more intimate experience of Sydney.”

The Strand Hotel, which occupies the middle floors of the William Street venue, includes 17 hotel rooms, a library and common work and kitchen spaces, with “distressed yet refined designer details throughout”.

The Strand Bistro, helmed by Head Chef Alex Kavanagh, heroes Australian produce through a menu of modern French food.

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Veriu announces four Victorian properties The openings kickstart a major national expansion.

THE VERIU GROUP has announced that it will open four new apartment hotels in Victoria over the next two years as it seeks to grow the business to become a national operator.

The Group will introduce its first two Victorian Veriu Hotels – Veriu Collingwood and Veriu Queen Victoria Market – later this year, while two new apartment hotels – Punthill Essendon North and Punthill Geelong – are expected to open in August 2022 and May 2024 respectively.

“We’re delighted to be adding the new properties to our existing apartment hotels portfolio,” said Veriu Group CEO, Zed Sanjana.

“Each one is specifically situated to take advantage of substantial key catchment areas, which are currently relatively underserviced in terms of quality corporate accommodation.

“Like all properties in our Group, they are ideally positioned to be able to provide

both corporate and leisure guests with premium accommodation in vibrant and convenient locations.”

The new sites signal the beginning of what the company says will be “a significant period of expansion” for the Group. Construction of a further five properties is set to commence in the second half of 2022 bringing the Group’s portfolio to almost 1,320 rooms and apartments operating or in development across 20 sites.

The Veriu Group is expected to grow by an additional 10 properties by 2025.

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Major transformation project for Berrima Gaol The historic property will be redeveloped

by Blue Sox Group.

The project will preserve and celebrate the site’s heritage

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BERRIMA GAOL, A former correctional facility in the Southern Highlands of NSW, is to be redeveloped into a hotel and entertainment precinct following a $7 million sale to Blue Sox Group.

As part of a “rigorous” Expressions of Interest (EOI) process, Blue Sox’s winning proposal carefully considered the heritage-listed buildings on site and their historical significance to the local community.

“The proposal incorporates a boutique hotel whilst retaining the beautiful grounds of the estate, and will include café, restaurant, bar, community and event areas, and spaces which will cater for small business opportunities such as antique and book shops, personal services, art galleries, library and museum,” said Minister for Planning and Minister for Homes, Anthony Roberts.

Since opening in 1839, the Berrima Correctional Centre has had a variety of different purposes – acting as a German prisoner camp during World War I, a training centre, and a minimum-security prison for men that was later converted to also accommodate women, explained Minister for Corrections Geoff Lee. “The NSW Government retired the correctional centre in 2020 and I’m excited to see how the site will be transformed,” Lee said.

Blue Sox Group will collaborate with the community, local Indigenous groups, and the Local Aboriginal Land Council on ideas to “preserve and celebrate the wider site’s heritage”.

Colliers’ Nick Estephen, Thomas Mosca and Frank Oliveri brokered the sale and the EOI process was conducted by Property and Development NSW (PDNSW).

Colliers Associate Director, Thomas Mosca, said there was a lot of interest in this property.

“We received enormous amounts of enquiry from around Australia with a record number of inspections and interest from every sector,” he said.

“There is huge attraction and appeal associated with the Southern Highlands of New South Wales.”

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Countdown is on to 25hours´ 2023 opening The lifestyle brand will make its Australian debut in Sydney’s east.

AUSTRALIA’S FIRST 25HOURS hotel is set to open next year with construction officially kicking off at the Paddington site in May. Operated by Accor, the 105-room property will be a leisure and lifestyle destination that reflects the local community.

Located at 1-11 Oxford Street Paddington, this historic site was originally home to Marshall’s Paddington Brewery before being replaced by West’s Olympia Pictures in 1911. In the 90s, it become a popular Sydney nightclub, Grand Pacific Blue Room.

Sydney property developer Central Element and joint venture partner Boston Global Group are leading the project which will be built by Richard Crookes Constructions, with architects Tonkin Zulaikha Greer.

Accor Chief Executive Officer, Sarah Derry, spoke to HM about the latest development and what makes 25hours unique.

“The phrase that we use is, ‘You know one, you know none’.

Each location is unique – it takes on the spirit of the city, the local community, it reflects the culture, the art and the precinct that it’s in, and that’s what makes 25hours so special,” Derry told HM. “The food and beverage element is a really special part of 25hours, and so the site that we have here in Sydney will have incredible restaurant on the street front and an incredible rooftop bar.”

The building itself is a unique Sydney landmark steeped in history – a Gadigal pathway for Australia’s First Nation’s people and home to Sydney’s first theatre.

“This has always been a site of firsts, and so it’s makes sense that it’s the first 25hours in Australia for us,” Derry said.

The Sydney opening will be followed by a Melbourne edition of 25hours, due to come to fruition in 2024.

“Our second location in Melbourne is in the Malt District in Cremorne, which again will be another iconic location for us,” Derry added.

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PROMOTION

A room with a view at Mövenpick Hotel Hobart

ACCOR ACCELERATES MÖVENPICK GROWTH

Accor opens two new Mövenpick hotels in New Zealand, supercharging the brand’s growth across the Pacific.

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he huge momentum behind Accor’s premium Swiss-born Mövenpick Hotels & Resorts brand across the Pacific region continues with the opening of two new Mövenpick hotels in New Zealand.

Since debuting Mövenpick Hotels & Resorts in the Pacific just last year, Accor has grown the brand to four locations across Australia and New Zealand – Mövenpick Hotel Hobart, Mövenpick Hotel Melbourne on Spencer, Mövenpick Hotel Auckland, and Mövenpick Hotel Wellington – and early works have commenced on its fifth location, Mövenpick Hotel Brisbane Spring Hill (opening 2024).

Accor Pacific Chief Executive Officer, Sarah Derry, said: “These new hotels are breaking new ground and shaping the future of hospitality, creating new experiences for our guests. Mövenpick Hotels & Resorts brand experiences, such as a daily Chocolate Hour for guests, encapsulate the brand’s passion for gastronomy and innovation and generates immense interest and talkability.

“With a growing footprint, all Mövenpick properties take a sustainable and responsible approach, caring for local communities and protecting the environment in the destinations where they operate.”

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Mövenpick Hotel Auckland offers a 24-hour sundae service

ACCOR NEWS

“The post-Covid travel market is witnessing a renewed desire for leisure stays and Mövenpick’s strong point of difference provides a compelling reason for people to visit these key city markets. This leisure appeal is particularly important for our industry as our cities recover.”

The first Mövenpick property to open in the Pacific region, Mövenpick Hotel Hobart, is located on Elizabeth Street – one of Hobart’s principal heritage streetscapes and close to the bustling Hobart waterfront. The hotel features 221 guestrooms and suites with spectacular views of Hobart’s historical city and harbour, a gymnasium, meeting facilities and the hotel’s Tesoro Modern Italian restaurant – one of Hobart’s premium food and wine experiences.

Situated at the meeting point of Melbourne’s iconic Spencer and Bourke Streets in the CBD, the 172-room Mövenpick Hotel Melbourne on Spencer delights guests with its contemporary design and boutique interiors. The hotel features a Mövenpick Café and Miss Mi restaurant and bar, which serves an exotic blend of modern PanAsian cuisine. A dedicated recreation floor boasts a 25m swimming pool, sauna, and gymnasium.

The 207-room contemporary designed Mövenpick Hotel Auckland is unlike any other hotel offering in New Zealand – a 24-hour sundae service and signature restaurant and bar are just a few of the luxuries on offer. With its heart-of-the-city location and access to some of the best commercial, retail, dining and leisure attractions in Tamaki Makurau, Mövenpick Hotel Auckland is the new centrepiece of the city’s CBD. Mövenpick Hotel Wellington will launch in July with 114 luxurious guestrooms and suites, along with its signature Forage restaurant and bar, and dedicated meeting and events facilities. Here, guests can expect

Mövenpick Hotels & Resort’s trademark quality and premium service in an inviting, approachable atmosphere.

Promising to bring a refreshingly unique hospitality experience to Queensland’s River City when it opens in 2024, the 96-room Mövenpick Hotel Brisbane Spring Hill will indulge guests with opulent art deco inspired interiors, restaurant, bars, a 25-metre swimming pool, fitness centre, conference facilities for more than 100 delegates, and sweeping views of Brisbane from its elevated heritage setting.

The Mövenpick Hotels & Resorts brand has gone from strength to strength since launching more than seven decades ago, now with more than 110 locations open globally including Mövenpick Resort & Spa Jimbaran Bali, Mövenpick Resort Kuredhivaru Maldives, Mövenpick Resort & Spa Dead Sea, Mövenpick Hotel Sukhumvit 15 Bangkok, Grand Plaza Mövenpick Dubai Media City UAE and Mövenpick Hotel Istanbul Golden Horn.

All Mövenpick properties are passionate about ‘making moments’, recognising that small gestures make a big difference to guests, owners and team members. The brand is renowned for doing ordinary things in an extraordinary way – a philosophy that has defined Mövenpick’s success An artist’s impression from the very start. Each hotel of Mövenpick Hotel delivers on the brand’s famous Brisbane Spring Hill hallmarks, including its daily Chocolate Hour, where guests can sample and purchase a range of chocolate delicacies. n

Guests can enjoy a sweet treat during Mövenpick Hotels’ Chocolate Hour

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HM Q&A Outrigger plans to grow its presence in Asia Pacific

TO THE TOP AT AHICE 2022, OUTRIGGER CEO JEFF WAGONER SPOKE TO JAMES WILKINSON ABOUT HIS AUSTRALIAN PROPERTY WISH LIST, TAKING RISKS ON COMPLICATED DEALS, AND THE COMPANY'S MISSION TO BE THE BEST. As a resort brand, with properties in some very remote places, how important is sustainability?

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hrough our program OZONE (Outrigger’s zone), we’ve been focused on conservation for a long time, supporting coral reef preservation and so forth. But the bigger element here, for us anyway, is the rising sea level. As a premier beach resort brand, it’s honestly hard to get your head around. I was at a conference recently where someone started talking about different countries that will be underwater in the future. It’s tough to have that really sink in and think about how we can do something now it’s going to make a difference in the future, but it matters.

In Hawaii for example, they have started to draw boundaries in certain places around all of the islands where you cannot develop. If your asset becomes damaged inside those boundaries, you cannot recreate the asset in that particular location. That’s how important conservation and sustainability are. This isn’t just about single-use plastic bottles or straws, it’s literally about the sustainability of our planet for the future that we all need to be involved in.

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HM The Business of Accommodation

You’ve just acquired a hotel in Kona, Hawaii.

When you are acquiring these assets, what kind of sustainability initiatives do you have in place to be one step ahead?

We really try to look at authenticity in developing the resort experience. In Kona, for example, King Kamehameha III was born on that property. We want to lean into the history of the places that we operate in, so we’ve been able to develop – in each one of the properties that we have – a playbook of how to go in and research the market to find out what happened on the land and who was there before. That’s so important to us in the curating of each asset that we have.

When it comes to new markets, Australia is very high up on your list. What kinds of areas are on your wish list at the moment?

Australia is certainly high on Outrigger’s wish list. We actually hired the global consulting firm McKinsey during the pandemic to do some research to understand if the customer is looking for different things in the future. Through that whole process, we learned that we need to evolve, and we need to change. We learned that the consumer across the globe said that if you can walk to the beach, you can call that a beach property – so that’s what we’re looking for today. We’d love to be ‘toes in the sand,’ but if we can’t, that’s fine too.

Australia is high on our list, Bali is high on our list as well, and then a lot of the Hawaiian Islands, we’d love to be able to grow there. We’ve got 26 properties already in Hawaii, so we’re really concentrating outside of Hawaii in Asia Pacific and the Australia market.

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We’ve seen a lot of investment from KSL into the business since they acquired it. They have really gotten behind the company to drive it forward.

Absolutely. Outrigger is spending US$320 million right now on renovation projects across the entire portfolio.

We’ve just bought a five-star property in the Maldives and six months ago we bought three new properties in Thailand as well as a 22-acre resort in Kona. We’re now looking at three additional beach properties, so probably nine to 10 properties over this last 12-month period.

That’s a lot of investment in the company and we look forward to continuing to grow with our mission to be the premier beach resort brand in the world.

Where else do they want to take the brand? We’ve talked before about the US mainland, which is obviously one of your biggest source markets.

McKinsey does geospatial work, where they examine cell phone pings to determine where travellers go in certain

locations. Everybody from the US mainland that travelled to Hawaii had a cell phone ping; when they went back to the US mainland, [McKinsey] looked at where else they had a ping in the resort market to determine where we should grow. We learned that the first place they went to after Hawaii was San Diego, the second was Miami.

And so, we are looking in Southern California and we are looking at Miami. Miami would be an awesome launchpad into the Caribbean for us, and we’re also looking at a property right now in Cabo.

Outrigger has been pushing further into Asia as well. Now that Thailand has removed all travel restrictions, how confident are you in the resurgence in travel at the moment?

Travel into Thailand has been a little slow to return. Back in 2018, the traveller from China going into Thailand slowed, and then the second highest geo source going into Thailand was from Russia. Thailand is coming back a little slower than we anticipated.

Outrigger recently purchased a five-star property in the Maldives

We bought three properties there, as I indicated.

We’ve renovated the properties in Phuket and Khao Lak – both of which are serving guests today. Our Koh

Samui property is still under renovation; we’re going to open that on August 1st. The slowdown gave us the opportunity to close resorts to completely renovate them and reopen under the Outrigger standards.

How many properties do you think you’ll bring on in the next two years?

I think Outrigger will bring on 10 new properties in this last 12-month period. If we do three to five a year over the next four years, I think that’s probably healthy and manageable for us as a company. We have plenty of investment capital to be able to go out and do it, it’s just a matter of finding the right assets and bringing them in.

Almost every one of the properties that we [signed] over the last year was a complicated transaction. When a property is halfway done and you’ve had concrete sitting for two years – that’s complicated, and it’s risky. We’re willing to take a little bit of risk to get the property that we want. n

“Miami would be an awesome launchpad into the Caribbean.”

Jeff Wagoner, Outrigger

At Outrigger’s Fiji resort, guests can grow coral during their stay

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PROPERTY PROFILE An infinity pool spans the width of the hotel

SPANISH AT THE RECENT OPENING OF AC BY MARRIOTT MELBOURNE SOUTHBANK, GENERAL MANAGER HARRY SINGH SPOKE TO RUTH HOGAN ABOUT THE HALLMARKS OF THE EUROPEAN LIFESTYLE BRAND AS IT MAKES ITS DEBUT DOWN UNDER.

Triana Bar offers views of the city skyline

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ustralia’s very first AC Hotels by Marriott was introduced to the market in May with the opening of AC Hotel by Marriott Melbourne Southbank.

The 14th brand to enter Marriott Bonvoy’s portfolio in Australia, AC by Marriott is a design-led lifestyle brand that originated in Spain in 2011 through a joint venture with renowned Spanish hotelier Antonio Catalan.

The 205-room Southbank hotel is located near the South Wharf precinct – an area which is currently undergoing a major urban renewal project – and is owned

by Melbourne-based mixed-use real estate developer and investment company Capital Alliance.

AC Hotel by Marriott Melbourne Southbank General Manager, Harry Singh, said the hotel benefits from being the sole player in this district.

HM The Business of Accommodation

“We’ve got the best of both worlds,” Singh told HM. “We’ve got proximity (a three-minute-walk) to the Convention Centre, and we are 900 meters away from the South Melbourne market. The next hotel from here is in South Yarra, so we really want to own this area.”

MODERN MINIMALISM

Designed by DKO Architecture, the property features open and clutter-free layouts with sleek desks and open closets, reflecting the industrial warehouse style of South Melbourne.

Modern classic finishes are used throughout including natural stone tiling, textured timber, metal details, layers of drapery and brass accents.

Working in collaboration with DKO, Singh said the team has brought to life the core elements of the AC design philosophy – a hotel that has been thoughtfully designed for the lifestyle traveller.

“Every detail of the experience is meticulously overthought to create a seamless stay,” Singh said.

“The design approach to every space is optimal comfort and utility through to modern decor, with open layouts offering functional beauty without distraction.

“The lifestyle traveller is looking for those really intuitive style spaces, and very intuitive service as well.

The brand saying is, ‘We provide everything they need and nothing they don’t.’”

PROPERTY PROFILE

THINKING OUTSIDE THE BOX

The lounge offers a space for guests to relax

INTUITIVE SERVICE The hotel is located near the South Wharf precinct

Among the concepts developed to anticipate guests every need is ‘Borrow Me’, which allows guests to borrow

an item that they may have forgotten to pack such as a charger or cufflinks.

“We’ve got all the basics that you tend to forget, but then we’ve also worked on a lot of the other interesting things that you would love to have when you go to a hotel,” Singh told HM. “You can borrow anything as from ties to cufflinks to a handbag or guitar. You can even borrow a Peloton bike – we can set it up in the room.”

The hotel also offers over a dozen bicycles that guests can borrow to do local trails.

The property’s food and beverage offering is run by Peter Rowland Group (PRG) – which is also behind retailer David Jones’ iconic Food Halls. It includes a Spanishinfluenced dining experience, Sorolla, a freestanding bar, Triana Bar, which offers views of the city skyline, and pool bar, Bar de Buceo, which also offers drinks and light, alfresco style dining.

“The F&B offering is very different. It’s not your typical club sandwiches. We want to pay homage to our Spanish roots, so there is a lot of that Spanish influence,” Singh said.

AC by Marriott is a very ‘gin-centric’ brand and is working closely with local distillery Patient Wolf to design its own gin, which is available throughout the hotel and served in a custom glass by sculptural glass artist Adam Walmon.

“We’ve got these airline style carts – with shelves of gin, all combinations of tonics, garnishes and glassware – that go around the hotel every evening at 6pm offering a complimentary drink,” Singh explained.

Wellness is another important part of the hotel offering, with leisure facilities including an outdoor infinity pool spanning the width of the building and a 24-hour fitness centre with the latest technology. There are also quiet spaces for guests to mediate and exercise.

“We’ve got this beautiful balcony where you can take a yoga mat to practice outside when the weather is beautiful,” Singh said.

The property has a variety of meeting and event spaces with floor-to-ceiling windows and collaborative spaces including the brand’s signature AC Lounge – a modern co-working space by day that transforms into a social hub offering European-style tapas by night. n The menu at Sorolla is inspired by Spanish cuisine

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DEVELOPMENT OUTLOOK

Marriott reports record room rates at its Gold Coast Sheraton resort

THE THE AUSTRALASIAN HOTEL OUTLOOK FOR 2022-2023 IS POSITIVE AS THE RETURN OF TRAVEL BRINGS CONFIDENCE AND CONTINUED MARKET INVESTMENT. ACCOR

Lindsay Leeser – SVP of Development

It is an exciting time to work in hospitality as the travel industry enters an era of transformation and growth. One critical area Accor is tackling head on is our responsibilities towards the environment.

Sustainability is critical to our teams, our guests, our partners and our future. Some initiatives under consideration by Accor include innovation around renewable energy, in particular we are concerned with finding ways to use solar energy on small available roof space.

We are also examining our supply chain in detail in an effort to reduce plastic in packaging and transportation, as well as what our guests see and experience. Food waste is both a challenge and opportunity, and we are exploring how we reduce the impact on the environment in this space with our partners.

Above all it is vital that we work together as an industry. We do not want to be competitive regarding sustainability and the future of the environment. Accor recently signed the Sustainable Hospitality Alliance for this reason. We need to learn together and from each other, inspire each other and challenge each other to make a difference.

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HM The Business of Accommodation

FORWARD THE ASCOTT LIMITED

James Shields - General Manager Growth and Capital Strategy

Ongoing strategic investment in positioning, projects, properties, and partnerships is delivering above and beyond expectations for The Ascott Limited’s suite of brand offerings including Quest.

While expansion had already picked up pace pre-COVID, the resurgence in the domestic markets during COVID led by the regions and drive destinations amplified the benefits of the growth strategy. At the heart of Quest’s approach is a commitment to delivering a balanced stakeholder approach within the evolving challenges of the marketplace.

The proof in the success is the fact that Quest like the other brands in Ascott’s impressive portfolio including The Ascott Residences, Citadines, Citadines Connect, Sommerset and lyf is flourishing.

In fact, the pipeline is the strongest every experienced by the group with eight projects in construction and 15 more at varying stages of negotiation.

The end result – an additional 2,750 rooms and more than $1.2 billion in completed projects under the Quest banner will be delivered over the next four years.

Supporting this is a commitment to flexibility of structures including leases, management agreements and brand franchises. There’s also a focus on getting the inventory quantity and mix right through understanding demand drivers at the most granular level and building out room night volume accordingly.

New developers are selectively added to the existing developers who have a track record of delivering for the group. Quest’s design and construction teams are integral and work hand in hand with >>

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DEVELOPMENT OUTLOOK

developers to optimise project feasibility and delivery especially given increasing construction costs.

Importantly, the financing market remains strong for leases, where a lease can represent a pre-sale of more than 50% of the number of apartments in any mixed-use development. This means developers do not need to sell 100% of residential inventory to meet debt coverage ratios.

Now is the perfect time to harness the strength of the domestic markets and optimise the entire group for sustainable, quality growth as we continue to deliver on our purpose of making corporate travel effortless for our guests, our owners and business partners.

BAKER AND MCKENZIE Graeme Dickson – Partner

If the deals we have worked on recently are any indication, in the financial year ahead everincreasing attention will be given to hotels located within mixed use developments and the highly complex documentation that these deals necessitate. This is simply a sign of the times.

New hotel development - particularly the five-star product – located in CBD locations in gateway cities like Sydney and Melbourne struggle to stack up as stand-alone offerings. This trend will spread to other locations as the financial equation to determine the highest and best use of land becomes increasingly more demanding. To further enhance the value proposition, there is also the increasing trend to attach the hotel operator’s brand to residences usually located in the development.

These deals involve all the curly issues relevant to standalone hotels and much, much more. Some of the more thought provoking include: • Construction timing. Generally sale completion of the branded residences usually can only take place once the hotel is opened. Hotel opening is usually at the operator’s discretion which can be a complex process particularly for a high end offering. Timing uncertainty can be a real issue for construction lenders looking to be paid out of the residence sale proceeds - not to mention the residence purchasers themselves.

• Brand standards and their impact on common areas or facilities (e.g. a shared lobby or entrance), its cost and allocation amongst the various development users. Brand Standards may impact on other components of the development (e.g. retail offerings) including sale price expectations.

• Limited ability to deal with building wide issues. If, for example, the exterior facade of the development is damaged then, the hotel owner may have limited ability to cause the damage to be fixed in a timely manner depending on its control of the owner’s corporation that oversees such issues.

• Operator’s desire to regulate the use of residences. Many operators wish to impose restrictions banning Airbnb or other short term letting opportunities • Use of hotel facilities. Headaches relating to access to pools, gyms and other facilities located on hotel premises being shared with other building occupants including residence owners on a fair and reasonable basis.

“Now is the perfect time to harness the strength of the domestic markets” James Shields, The Ascott Limited 32

HM The Business of Accommodation

Australia's second Aiden by Best Western will open in early 2023 • Signage. Both the operator’s and other occupiers’ signage can raise significant issues in terms of inter-relationship, size and placement.

The ability to constructively deal with these and other issues requires a deep understanding of not only how hotels work but the complexities of the real estate laws which deal with mixed use offerings. Patience and an ability to devise effective solutions to the myriad of competing wants and needs of a diverse range of stakeholders also helps. It’s challenging but enormously satisfying when it all comes together.

BWH HOTEL GROUP AUSTRALASIA Graham Perry - Managing Director

While the world turned inwards and battened down the hatches over the last two years, BWH set its sights on networking and supporting its hotels and the accommodation industry to ensure a strong post-COVID recovery. The BWH development team led by Danilo Curcuruto and Elena Martiniuc focused on building ties with external stakeholders including investors, operators, developers, property brokers, management companies and hoteliers to foster strong longterm relationships.

Fast forward to 2022 and with the resumption of travel and with revenue back to pre-COVID levels the fruit of this labour is paying dividends. In February 2022, BWH opened its first Aiden by Best Western in Darling Harbour in partnership with property developer Nicolas Chen and his father Frank. This was closely followed in May 2022 with BWH signing an exclusive 20-year agreement with development company, ARBT Property Group. This collaboration will see the launch of Australasia’s first Executive Residency by Best Western later this year and the second Aiden by Best Western opening in early 2023. BWH will also open a new Best Western in Queen Victoria Market, Melbourne in late 2022.

Strong revenue growth forecast to continue right across Australasia for the foreseeable future is being driven by the demands of the postpandemic traveller who is looking for fresh lifestyle and extended stay branded accommodation to satisfy their appetite for personalised experiences. This new traveller is giving rise to the new “bleisure” market that blends business and leisure activities with a single extended day trip.

As we capture a new generation of domestic travellers and reopen our borders to greatly missed overseas markets with China expected to recommence travelling in 2023, BWH has a strong foothold on the accommodation market with production underway for multiple new properties in capital cities and regional centres comprising both traditional and new extended stay and lifestyle brands. Working in tandem with its new array of partners, BWH is in a box seat to showcase the halo effect of its 17 global brands to turbocharge direct business and revenue performance for its properties. This brand legacy effect speaks for itself and can exploit what is a strong revenue outlook to drive the growth and development of the BWH portfolio across Australasia throughout the next decade. >>

The Manna by Haus, Ascend Hotel Collection

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DEVELOPMENT OUTLOOK

HILTON

Tushar Raniga – Director Development, Australasia

2022 is the year that the hospitality industry recovers with borders now open and travel demand unleashed, and Hilton will continue to provide an important backdrop for guests to make new memories at our 29 hotels across Australasia.

With 13 hotels in the pipeline, our growth momentum has not wavered despite the pandemic, showcased in our recent Waldorf Astoria Sydney signing announcement which marks the first Waldorf Astoria in Australasia, and our first luxury hotel signing in Australia.

In terms of further expansion, our development strategy is to organically introduce our world-class brands to travellers in key markets at the right time, with plans to expand further within the luxury, lifestyle and focused service segments in Australia and New Zealand.

Where we see immense opportunity is with our award-winning and fastest growing upper-midscale brand, Hilton Garden Inn, which welcomes guests to more than 940 hotels in 55 countries and territories globally.

Hilton Garden Inn was introduced to Australia in 2021 with the opening of Hilton Garden Inn Albany and with six projects in planning or under construction, we have an ambition to double the footprint of Hilton Garden Inn across Australasia within the next five years.

For developers, the brand offers an efficient prototype set-up designed for the Australasian market that provides increased certainty over costs and allows them to efficiently adapt to evolving guest preferences with enhancements. Developers can cost-efficiently expand their portfolios and streamline their operating model to drive returns. Hilton Garden Inn achieves market-leading performance by maintaining a lean, focused service operating model, while the Hilton name commands global recognition.

In March 2022 we launched our franchising model in Australia for Hilton Garden Inn which will provide experienced owner/operators to partner with us whilst maintaining day to day control over their hotel businesses, as well as being a key driver of growth for the Hilton Garden Inn brand.

IHG HOTELS AND RESORTS

Matt Tripolone – Managing Director, Australasia and Pacific

The first half of 2022 has been one of the busiest on record for IHG Hotels and Resorts and, after the past two years, we could not be more buoyed by the positivity in market.

We started the year with the opening of Holiday Inn and Suites Bondi Junction, before welcoming Australia’s first Kimpton hotel together with our partner Pro-invest, who also followed with the opening of Holiday Inn Express Melbourne Little Collins, Holiday Inn Express Auckland City Centre and recently capped off with two new voco hotels in Auckland and Brisbane. We also opened the stunning voco Melbourne Central at the end of April, making a total of three new voco properties opening in the space of a month.

We’re currently seeing an increased focus on regional destinations as domestic travel has reignited interest in discovering Australia’s hidden gems. This was highlighted by a slew of signing announcements with partners such as the Pelligra Group and the Oscars Group, which included Crowne Plaza Shell Cove Marina and Holiday Inn and Suites Mawson Lakes, which drew significant interest from business and the local community. We can’t wait for InterContinental Sorrento to open 34

HM The Business of Accommodation

In the next four years, there will be an additional 2,750 rooms under the Quest banner

which will become a destination in its own right, with multiple dining venues, a spa and bathhouse amongst other leisure facilities on site.

In terms of what is top of mind for our owners at the moment, it would undoubtedly be conversion opportunities. With interest rate rises, tightening lending criteria and increased labour costs, conversion arrangements become even more attractive. Our recently launched Vignette Collection is perfectly positioned for owners to convert hotels quickly, allowing the property to retain their own branding and identity, while putting the full power of IHG’s commercial system behind them. voco, IHG’s fastest growing brand, gives owners a light-touch approach to conversions, allowing them to convert more quickly and costeffectively and the increase in interest around this colourful brand has been exciting.

LANCEMORE HOTELS

Julian Clark, Chief Executive Officer

It’s a time of change in hotel development at the moment. There remains plenty of activity but there is a slight pause in some areas of the market, primarily due to uncertain macroeconomic conditions, conservative debt providers and increased cost of construction. After a generational increase in new hotels supply over the past half-dozen years we see this as healthy and will benefit future trading conditions immensely.

In terms of asset purchasing - there is plenty of capital seeking a home but finding reasonable IRR returns without excessive debt remains challenging. Having said that, there are deals that still make sense, you just need to find alpha in the asset and/or be a longer-term holder. Such deals become easier to stack up as each month progresses.

With normalising demand and slowing supply we are extremely optimistic about future trading. Consequently, we remain a buyer >>

NEWS

PROMOTION

DRIVING DIVERSITY Embracing diversity and supporting inclusion has led Hyatt to attract a remarkable workforce of talented people.

Hyatt is committed to hiring, promoting and retaining diverse talent

D

iversity, equity and inclusion (DEI) is central to Hyatt’s staffing strategy, not just because it is the right thing to do, but because it is a powerful contributor to success in business.

As the world emerges from a difficult two years and hospitality begins to experience a rebound, competition

er ec ove ry

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will only increase. Companies that prioritise hiring and retaining a diverse talent pool at all levels are likely to gain an edge over those that don’t.

Diverse leadership teams tend to be more innovative, productive, dynamic and stable, and also tend to lead companies with higher earnings – up to 36% above the average, according to an annual study by McKinsey & Company. They also tend to lead to more diversity in the al rest of the company, with all the advantages that brings. ty an p iv ne Hya ss dr “We are committed to hiring, promoting and retaining eds tt’s DEI initiative diverse teams to diverse talent and creating an environment where all colleagues feel comfortable and can bring their whole selves to work each day,” are neither in school nor working – to its Global Inclusion and Diversity said Hyatt’s Senior Vice President of International Human Relations, Council that brings together a group of 30 colleagues from around the Katie Carter. world to share best practices for engaging and promoting diverse talent.

“Our approach to embracing diversity and supporting inclusion has Together, they help drive actions, behaviours and inclusionary practices led Hyatt to attract a remarkable workforce of very talented people who, into all areas of the business. because of their differences, help us connect with each other as human To date, Hyatt has successfully hired 900 Opportunity Youth through beings in a genuine way.”

RiseHY, significant progress toward the goal of 10,000 hires through Hyatt’s DEI initiatives span all levels, from its RiseHY recruitment the program. Meanwhile, some 70% of global leaders within Hyatt have program targeting Opportunity Youth – those aged 16 to 24-years who been trained on Leading Inclusively, a program aimed at helping leaders recognise understand and respect diversity and promote inclusion.

Diverse teams tend to be more innovative, productive and stable Initiatives such as the GM Development Program, half of whose most recent cohort was women, also serve to actively address disparities.

In Hong Kong, Hyatt partnered with two other multinationals on a unique internship program called Diversity Champions, in which a diverse group of university students received specialised training and real-life work experience at an insurance company, a law firm and Hyatt’s corporate office.

That program led Hyatt to hire a promising young candidate from a non-hotel background.

“As a young, talented innovator, this program helped attract her to join Hyatt by demonstrating our focus on providing opportunities to those outside the traditional industry parameters,” said Hyatt’s Senior Vice President in charge of Legal in Asia Pacific, Gordon Chan.

“This is just one example of how meaningful and creative DEI initiatives can help us attract early on those who will go on to lead our industry. When our people feel truly and legitimately supported at work, they in turn support the business and the guests we serve.” n hotelmanagement.com.au

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“Domestic developer activity and investment in the market is strong.”

Lachlan Hoswell, Minor Hotel Group

and continue to recommend to capital partners the same, but we are not “buying the market” and are very specific on which markets, assets and pricing are attractive.

In terms of management there continues to be plenty of opportunities. Unsurprisingly a trend is new supply in sub-markets that were slightly unloved pre-COVID but traded well throughout the pandemic, especially in suburban and regional areas.

Much new supply is looking for an operator in Lancemore’s core area of expertise which we are naturally happy about – lifestyle/boutique or white label in both CBD and regional locations.

In terms of agreements, we have two HMAs signed in South Australia and one more at LOI stage. We are very confident about serving markets there that have been underserved for some time. This adds to our expansion into Brisbane, Melbourne and regional Victoria in the past 18 months. As a medium-sized company there remain many locations in both Australia and New Zealand that we are excited to enter and are working on deals in many of these markets as we speak.

After a tough two years, the future is bright.

MARRIOTT INTERNATIONAL

Richard Crawford – Vice President Hotel Development, ANZP

As the world’s largest hotelier, Marriott International manages and franchises 8,000 hotels under 30 global brands. With a footprint spanning 139 countries, sustainable expansion is central to our strategic plan, and our opening of a new hotel – somewhere in the world – every 14 hours is evidence of the successful execution of Marriott’s growth mandate.

Prior to Marriott’s acquisition of Starwood in 2016, Marriott operated just six hotels in the Australia, New Zealand, and Pacific region. Today, our portfolio numbers 41 operating hotels in the region, under 15 brands, including Marriott, Sheraton, Westin, Ritz-Carlton, St. Regis, W, Aloft, Courtyard by Marriott, Four Points by Sheraton, and JW Marriott.

With agreements executed for an additional 22 hotels and resorts, Marriott’s growth in the Australia Pacific region will ultimately see our portfolio increase tenfold, in the decade following the Starwood acquisition.

Marriott’s growth in the region has been characterised by multiple signings in Melbourne (where we now operate nine properties), plus a 36

HM The Business of Accommodation

Minor Hotels is targeting franchise opportunities to expand its Oaks brand

focus on upscale, upper upscale, and luxury hotels. Of note, Marriott operates the largest hotels in the Australia Pacific region, with an average key count of 230 guest rooms.

Despite the operating challenges faced by our industry in recent years, hotel investment continues unabated, with developers and hotel owners rightly referencing our local industry’s strong pre-COVID fundamentals, and the renaissance in domestic travel as valid logic for optimism.

The ten new hotel projects Marriott is nearing signing in the Australia Pacific region, reflect the wider industry trends of continued investment in Melbourne (and Australia’s other capital cities), along with surging travel demand in Australia’s iconic leisure destinations. On the Gold Coast, for example, record room rates at our Sheraton and JW Marriott branded resorts have stimulated investor confidence and will see us announce new world-class luxury offerings in the coming months.

This month, JW Marriott Jnr. stepped down as Chairman of the Board of the company his father founded 95 years ago. Mr Marriott’s youngest son, David Marriott, will become just the third Chairman of Marriott International, a company that knows “success is never final”. It is that mantra which will continue to drive our growth, and our mission to be the world’s favourite travel company.

MINOR HOTEL GROUP

Lachlan Hoswell – General Counsel and Commercial Officer

When we look ahead to 2023, there is plenty to get excited about in the development pipeline for Minor Hotel Group and the broader industry.

On the international investment front, Australia will continue to be a desirable location, with hotels in particular a sought-after asset for overseas investment. On the home front, domestic developer activity and investment in the market is strong and provided returns meet investor needs there is money available for feasible projects and performing hotel acquisitions. We expect to see new hotel announcements over the coming 12 months.

Not surprisingly, uncertainty around new build costs will continue to impact feasibilities, however, we do expect the supply chain challenges impacting the construction sector to ease as the industry returns to a new normal after the peak of the COVID-19 pandemic.

DEVELOPMENT OUTLOOK

For our brands, we see a myriad of opportunities to grow through a strategic combination of franchising, hotel management agreements and leasing arrangements, as well as investing in projects alongside developers, with both popular capital city, urban centre and regional locations currently being considered.

In light of the robust regional market activity in Australia, we are targeting franchise opportunities to expand our Oaks brand, and we look forward to sharing Oaks’ fully equipped serviced apartment model and ‘home away from home’ offering with business and leisure travellers in new locations across the country.

Construction is about to commence on NH Collection in central Sydney CBD which will be the first foray into the Australian market for the brand. We are excited about launching this strong global brand into the market and expanding the brand further throughout Australia.

PRO-INVEST HOTELS

Shantha de Silva – Director of Operations

2022 will be the biggest year on record for Pro-invest Hotels. We will open eight new hotels in Australia and New Zealand in the first half of the year with our partners at IHG Hotels and Resorts and Accor, and we could not be prouder to be bringing some of the world’s most exciting brands to our shores.

Speaking of records, in a record number of ‘firsts’ for Pro-invest Hotels, 2022 has already seen us bring the first Kimpton hotel to Australia, the first voco hotel to New Zealand and the first Holiday Inn Express and Suites brand to the region. Our commitment to the Holiday Inn Express brand as a whole remains strong and we have a number of Holiday Inn Express hotels in the pipeline in fantastic CBD and resort locations around Australia.

Our hotel portfolio now stands at 30 hotels across nine brands, each of them distinctive in their own way, serving their particular market to a very high standard. In March 2022, we announced a joint venture with Next Story Group to form Vista Hospitality Group. Since we announced the JV, we have been buoyed by the interest investors have had with the Vista Hospitality Group. In addition, in May we announced the purchase our first asset in fund III which will be The Sebel Canberra Campbell.

This is our second Sebel hotel in Canberra and we’re pleased to be extending our partnership with Accor in the nation’s capital.

soft brand, which can be localised to suit its destination, is helping us to successfully enter new markets such as Papua New Guinea.

We are also aiming to tap the potential of new market segments such as branded serviced apartments, with strong potential for this model in the upscale and midscale segments. This is something we will explore further with our partners in future.

The global recovery of travel and hospitality is now well underway, and Asia Pacific is leading the way. Travel demand to Australia surged as borders reopened, and the Asian Development Bank has forecasted that Asia Pacific will be the first region to reach pre-pandemic levels of travel spending.

RESORT BROKERS

Trudy Crooks – Managing Director

Like its residential cousin, the commercial property sector in Australasia has been enjoying a halcyon ride off the back of historically low interest rates and a global pandemic which placed the focus firmly back on domestic transactions.

But with rising interest rates – the first of which occurred in early May – and state and international borders re-opening, how long will the property bubble last?

While it is critical to read the economic signals and threats - at Resort Brokers where we have brokers on the ground in every corner >>

Radisson is focusing on upper-midscale and lifestyle brands

RADISSON HOTEL GROUP

Mark Bullock – Managing Director, Australasia Business Unit

As tourism and markets take an uptick, a similar trend is seen with Radisson Hotel Group. We are moving forward with confidence as we aim to capitalise on the rebound of leisure and corporate travel in Australasia.

We are witnessing rising demand from owners and developers for all our brands, driven by a healthy mix of organic growth, the potential for mergers and acquisitions and franchise opportunities, and our owners have access to a collection of brands that address the different market mix and segments. Our Australasian growth strategy will be driven by our new local development office in Sydney, which will offer expert onthe-ground support to our partners.

While our portfolio of brands ranges all the way from midscale to luxury, Radisson Hotel Group is especially focusing on upper-midscale and lifestyle brands such as Park Inn by Radisson and Radisson RED, which we believe are well suited to the needs of the Australasia market.

Radisson Individuals is gaining extremely good traction globally; this hotelmanagement.com.au

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DEVELOPMENT OUTLOOK Vista Hospitality Group, a joint venture between Pro-invest and Next Story Group, has opened voco Brisbane

Construction work on a further five properties – two Veriu, three Punthill – is scheduled to start in 2022, setting the tone for what is hopefully a decade of consistent growth for the business, which now operates 17 properties.

The goal in the next 10 years is to get to a position where we are a proper national operator with somewhere around 70 to 80 hotels under operation.

We’re really looking to have a presence in most of the major suburban, CBD and regional markets around the country.

Agreements are in place for new Veriu Hotels and Suites in Fremantle, Western Australia, and the inner Melbourne suburb of Cremorne. There are also three fresh leases signed for Punthill Apartment Hotels in the Melbourne suburbs of Sunshine and Footscray, plus another in the Hunter Valley city of Maitland.

WYNDHAM HOTELS AND RESORTS Matt Holmes – Vice President of Development South East Asia and Pacific Rim

of Australia - we are witnessing buyer demand at an all-time high from

all sectors of the market.

This is driven by a number of factors including industry newcomers who want to relocate and be their own boss after years of anxiety during the pandemic of no job certainty; corporates seeking to invest capital in the hotel industry which still represents great value compared to other asset classes; and a renewed interest in regional Australia where investors are capitalising on large parcels of land which are under-utilised.

Based on our financial year figures to date, we see no signs of this upward trend waning, with high room rates set to continue even if occupancy declines. While it would be useful to possess a crystal ball in the property industry, we believe there is at least another 12 months’ heat left in the market.

Certainly, our own sales figures indicate so with our listings rising substantially to 51 per month in the first seven months of FY 21/22 to 359 listings. In the same period, we settled 127 deals which represents a 34 per cent increase, and there was a 13 per cent increase in market enquiry.

By the end of FY 21/22, we will have more than 300 deals settled and in the pipeline.

The bottom line: we can sell in any market – whether it is going up or going down – it just needs to be moving, and for now, that continues to be up.

VERIU GROUP

Michael Herman – Director of Development

Veriu Group is rebooting its expansion program after a tough couple of years. My appointment is part of the program.

Veriu works with developers, signing long-term leases. This puts us in a very different category to most other hotel operators in Australia, who generally will only enter into management agreements. We therefore appeal to developers who prefer not to have a hotel operating business and would rather have returns akin to commercial office space. We are not competing with the international operators, nor the larger domestic ones.

We expect to open three new properties this year, including the first two Veriu branded hotels in Melbourne, part of mixed-use developments in Collingwood and Queen Victoria Market.

New Punthill Apartment Hotels will open at Essendon North this August and Geelong in May 2024, in partnership with developer EVR Group.

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HM The Business of Accommodation

Through 2022 and 2023 Wyndham Hotels and Resorts Asia Pacific will be focusing on a twopronged approach in Australasia, including franchise conversions and increasing our presence in key markets through either franchising, license and distribution or management opportunities.

The Australia and New Zealand markets have long been skewed toward owners seeking partners to manage their assets, particularly for the larger hotels and new construction properties. We don’t believe this will change too much; however we want to make sure we are also driving franchise opportunities, particularly for hotel conversions, and are giving owners the option to control their own assets or choose preferred managers, overlaying this with a global brand and world-class franchising system.

Our Trademark Collection by Wyndham is a strong option for this, allowing hotel owners to plug into a powerful distribution system without the costs and challenges associated with rebranding or changing operating procedures. Our partners are able to maintain their uniqueness while taking advantage of Wyndham’s global scale of distribution, customer service and the Wyndham Rewards loyalty program.

I think a lot of the activity around management opportunities will be through conversions, as rising interest rates, rising construction costs and increased supply in some of the major markets start to hit new constructions.

We will look to increase our presence in some key markets we are currently under-represented in. Our presence in Australia has been growing substantially in regional and leisure-driven destinations, which has been of huge benefit over the last two years. However, we need to start looking more aggressively at opportunities (either managed or franchised) in some of the key capital cities where we have system driven demand, without the supply to satisfy.

We currently have 48 hotels open and operating in Australia, New Zealand and the South Pacific, and are eagerly approaching a key milestone of opening our 50th hotel in these regions. This will likely coincide with the opening of our first hotels in South Australia later in the year, which we will no doubt celebrate! n

“By the end of FY 21/22, we will have more than 300 deals settled and in the pipeline.”

Trudy Crooks, Resort Brokers

Committed to creating value in everything we do A global footprint and a relevant portfolio of brands Dynamic business model Significant investments in information technology and systems Commercial engine & operation efficiencies Pragmatic and approachable

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Event Hospitality CEO Jane Hastings speaking with HM’s James Wilkinson at AHICE 2022

RECHARGED FOR GROWTH

AN OVERWHELMING SENSE OF OPTIMISM PREVAILED AT AHICE 2022, WITH THE INDUSTRY EAGER TO COLLABORATE TO DRIVE BETTER OUTCOMES FOR ALL.

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ver 1200 hotel industry professionals came together for the 13th annual Australasian Hotel Industry Conference and Exhibition (AHICE) held in Adelaide in May, which was opened by South Australian Premier Peter Malinauskas.

In his welcome message, the Premier said he is excited to see continued growth in hotel accommodation in South Australia and Adelaide.

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“We are excited about the prospect of continuing to see the growth in hotel accommodation – not just here in the city but also throughout our regions in South Australia,” he said.

“My government is committed to seeing that growth being very much a partnership between private capital but also a government that is keen to be an enabler in every sense to accelerate that investment.”

The Premier also spoke about growing employment in the state to allow citizens to enjoy “the dignity that work provides”.

“It’s a labour-intensive industry and that means a lot of dignity being provided to so many people that work in the hospitality sector,” he said.

“That’s why we as a government want to continue to grow employment in our state. We want this industry to thrive here in our state; I want more South Australians experiencing and enjoy all the deputy that work provides.”

A NEW VOICE FOR THE INDUSTRY

A top talking point throughout the conference was the launch of industry association Accommodation Australia. This new body will represent Australia’s

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accommodation sector following the amalgamation of Accommodation Association and the Australian Hotel Association’s Tourism Accommodation Australia, which is expected to be completed later this year.

IHG Hotels and Resorts SVP Managing Director – JAPAC, Leanne Harwood, has been named as President of the amalgamated organisation’s Executive Committee, while Marriott International Area Vice President of Australia, New Zealand and Pacific, Sean Hunt, will be Vice President. Hotelier and TFE Hotels Independent Company Director, Bruce Copland, will take up the position of Treasurer.

When asked who will take up the position of Accommodation Australia CEO, President Leanne Harwood said: “We will be going out to market. We’ve come with a recruitment agency right now and we’re working towards looking at who that individual will be. It is a fully transparent and fair process that we’re undertaking.”

A common theme throughout the many panel discussions at AHICE was the importance of collaboration and uniting the industry as one voice to tackle issues such as employment, skills shortages and sustainability, and the important role the association will have in this.

GLOBAL LEADERS

A number of global CEOs flew in to attend the event in person including IHG CEO – EMEAA, Kenneth Macpherson, who is based in London; Outrigger CEO Jeff Wagoner (based in Honolulu); Hilton President – Asia Pacific Alan Watts (Singapore); Marriott International President – Asia Pacific (excluding Greater China), Rajeev Menon (Singapore); Far East Hospitality CEO, Arthur Kiong (Singapore); LWT Asia Pacific, Leader, Satoshi Konagai (Singapore); and Pro-invest Group Co-Founders Ronald Barrott and Dr Sabine Schaffer (Dubai and London).

During a panel discussion on sustainability, Proinvest Managing Partner, Sabine Schaffer, talked about how sustainability should not just be reserved for luxury brands.

“Sustainability needs to be something that goes throughout - it goes through all of our work streams and work processes within the company and from my perspective, it has to go from the select service hotel until all the way up to luxury,” she said.

“Does the end consumer wish to pay more? If you look at surveys, they say that they’re happy to pay up to 20% more for a sustainable stay at an express hotel, and they do spend about 30% more in general. This year in particular, after COVID, everybody’s very conscious about where the money goes, but it certainly pays off.”

IHG’s Macpherson discussed the wellness trend that is becoming an all-important factor for travellers “Building in wellness as part of what many of the brands are going to have to offer will be an increasing part of what we need to do in the industry, and we’re doing that,” he said.

“The sustainability part is going to be vital for us as an industry and we’ve tackled that with our Journey to Tomorrow - that’s talking about people, communities and planets and making very significant commitments on that. So that’s going to be really key. The [Even] brand speaks to that, and that’s accelerated in the US and China at the moment. We’re just refining that before we take it to market.”

Outrigger CEO Jeff Wagoner touched on geospatial learnings from a recent McKinsey study that the company did. The study tracked cell phone pings of travellers when they returned to the US mainland after travelling to Hawaii to better understand the other locations that are of interest to resort traveller. >>

Industry leaders flocked to the Adelaide Oval for AHICE 2022

Sustainability, wellness and training were big talking points at this year’s conference

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“It’s a little freaky,” Wagoner said of the power of the technology.

“What we learned was the first place they went to after Hawaii was San Diego, the second was Miami.

And so, we are looking in Southern California and we are looking at Miami [for future properties]. Miami that would be an awesome launchpad into the Caribbean for us, and we’re also looking at a property right now in Cabo.”

Marriott’s Rajeev Menon discussed the company’s impressive Q1 results. The company reported a global RevPAR increase of 96.5% compared to the first quarter of 2021.

“It was an exceptional quarter,” Menon said.

“Tony announced that we are reinstating our dividends in the second quarter which is incredible from a shareholder point of view. We’re going to start buying back shares; our EPS earnings, incredible, 35 times overestimate.

“The big announcement was that the US, which is the biggest market with over 5000 hotels, in April RevPAR was flat to 2019. And the company is very optimistic about our booking pace for the future. So, from our perspective, be it the US or Asia side markets like Australia, India, some of the other markets that have opened up, we’ve stopped talking about recovery to ‘19, we are talking about growth versus ‘19, which is incredible.”

CRITICAL THINKING ON DIVERSITY

Keynote speaker, Anyier Yuol, Founder and CEO of Miss Sahara and Anyier Model Management, spoke to the industry about the importance of gender and cultural diversity in every aspect of business.

Born in a Kenyan refugee camp and having moved to Australia at the age of 10, Yuol is an advocate for women’s and girls’ rights and gender equality.

Anyier Yuol challenged delegates to think about diversity in their business

“It is important that when we think about diversity, we’re not just looking from an agendaonly perspective,” she told delegates.

“You are here today because you work in a global industry. You are that example that will attract the next generation to this industry. I don’t have to be in the industry to tell you how important that is.”

Another keynote speaker was AFL legend Gavin Wanganeen, who was the first Indigenous player to receive the Brownlow Medal. He spoke about discovering his passion for art and pushing past the boundaries and expectations he and others had of himself. He is now an acclaimed Indigenous artist.

“Over the course of my journey in footy, I had the belief because I had the talent – and it was easy for me to go out on the weekend and perform in front of 50,000 people,” he said.

“Starting something new, that I had no control over, [was much more challenging], but it was the self-belief and determination to never give up that helped me become an artist that is booked out for a year.”

The AHICE conference will return to Adelaide for the third consecutive year in May 2023. n

AFL legend Gavin Wanganeen spoke discovering art after footy

A message from AHICE 2022 Co-Host South Australian Tourism Commission IN A MAJOR show of confidence for the return of business travel and tourism, the South Australian Tourism Commission (SATC) has confirmed that Adelaide will host the 2023 Australasian Hotel Industry Conference and Exhibition (AHICE).

Hosting Australia’s major hotel conference in early May was a great coup for the nation’s most liveable city, with more than 1200 delegates from over 40 countries attending.

SATC chief executive Rodney Harrex said the announcement to host AHICE for the third consecutive year demonstrates the confidence the industry has in Adelaide’s hotel sector, which has gone from strength to strength.

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“The 2022 conference was vital for the recovery of South Australia’s $2 billion business events sector, as leading hoteliers and industry experts were inspired by our city’s bright future, creating an immediate economic impact for our state,” he said.

“Despite disruption from the pandemic, South Australia has recorded strong investment in hotels and occupancy rates that are among the highest in the nation and reaching record highs.

“We’ve seen new hotels open including the Crowne Plaza, Eos by SkyCity, Majestic M Suites, Hotel Indigo and Sofitel, adding a combined nearly 1,000 rooms to our CBD – and we still hit all-time highs for the number

of rooms occupied.”

In April, Adelaide accommodation saw nightly room occupancy reach the best result since the pandemic started and the third highest month on record. This was thanks to major events, such as AHICE, driving visitation to SA. Adelaide hoteliers also enjoyed the strongest week on record for room nights occupied in April – both pre and post pandemic.

Thank you to the organisers, sponsors and delegates for supporting Adelaide as the host city for AHICE. South Australia looks forward to welcoming you back for another world-class event in 2023.

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Stellar SIGNINGS A NUMBER OF MAJOR HOTEL GROUPS ANNOUNCE KEY STRATEGIC SIGNINGS AT AHICE 2022.

Adina Singapore Orchard will open in July

TFE expands Adina, Vibe to Asia TFE Hotels will expand its Adina and Vibe brands into Asia with the announcement of two new hotels on Singapore’s Orchard Road with joint venture partner and hotel owner, Far East Hospitality.

Adina Serviced Apartments Singapore Orchard will open in July 2022, while Vibe Hotel Singapore Orchard – the first Vibe Hotel to open outside of Australia – is expected to launch in the fourth quarter.

“From our initial expansion to Europe and New Zealand, we have always envisioned and planned for Adina to be a truly global brand, so a move into Asia was a natural step for us,” said TFE Hotels CEO, Antony Ritch.

A message from AHICE 2022 Principal Partner Hostplus AT HOSTPLUS, OUR sole purpose is to maximise our members’ retirement outcomes.

We achieve this, primarily, by delivering market leading returns, driven by a welldiversified, disciplined and long-term strategy.

Hostplus’ long-term focus and strong incoming cash flows, resulting from our large member base, allow us to invest in a diversified set of assets both in Australia and globally.

First and foremost, our investment decisions are guided by the potential to deliver returns to our members in their best financial interests.

Generally, investments in the accommodation sector fall under the

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category of unlisted assets.

The fund looks for attractive, risk-adjusted returns which are benchmarked against other investment opportunities across the real asset universe. Our listed equities portfolio already includes investments in entities such as Accor S.A, Marriott and Hilton Worldwide.

Almost 50 per cent of our default Balanced option is invested in assets, such as property, infrastructure and private equity, including venture capital.

We expect to continue to find attractive investments in property and infrastructure and will look to expand these investments outside of Australia.

To further accentuate the diversity of the portfolio, we have significant investments in renewables and new energy technologies, such as fusion energy and waste-to-energy technology. These are innovative areas that can assist in the transition to a low carbon economy and will be a continuing growth area and opportunity for the fund – not only in optimising returns for members but also being part of the solution towards an improved climate future.

We continue to see good opportunities in this space and, as a result expect to grow our level of investment in this category over the coming years.

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La Vie Hotels and Resorts is bringing YOO Hotels to the Pacific through an exclusive deal which will see the hotel management company open the first By YOO hotel in Melbourne in early 2025.

“We are so excited to be introducing a brand that is truly born from design and authentically fits the mould of a lifestyle-led design hotel to the Australian market,” said La Vie Hotels and Resorts Managing Director, Craig Bond.

“If the pandemic has shown us anything, it is that people are wanting to feel connected and when travelling, be transported to a place that inspires and excites while factoring in the n n ar local idiosyncrasies of the ur tis lb o t’s e community. Nu by YOO is going to imp M o o ression of Nu by Y do just that.”

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Pro-invest has purchased a hotel property in Canberra’s defence precinct bolstering its $2 billion Australian hotels portfolio.

The hotel – currently known as Campbell5 – will operate as the Sebel Canberra Campbell and will be Pro-invest’s second Sebelbranded hotel in Canberra.

“The Sebel Canberra Campbell is a highquality asset – a new build in an ideal location enjoying consistently strong visitor traffic and great access to nearby amenities. It is also a natural fit for the Sebel brand and it is exciting to be extending our partnership with Sebel and its parent Accor on the back of this deal,” said Pro-invest Group CEO, Jan Smits.

“We intend to continue pursuing asset opportunities in Australia with a view to building Australia’s largest single-owner hotel portfolio.”

La Vie wins YOO

e

Pro-invest snaps up Sebel Canberra

Pro-invest purchases second Sebel-branded hotel in Canberra

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Ro tor ua ho

Lyf is a co-living hotel concept

Ascott brings lyf to Australia The Ascott Limited announced the debut of co-living hotel brand lyf in Australia with a property in Collingwood set to open this month.

Lyf – which stand for ‘live your freedom’, pronounced life – is a ‘next generation’ hotel concept designed to foster a sense of community among guests through such features as a communal kitchen, shared workspace, laundrette, social space and more.

“The opening of lyf Collingwood signals the start of a phase of growth for The Ascott Limited in Australia, following successful integration of the Quest Apartment Hotels brand into the business,” said The Ascott Limited Managing Director – Australia, David Mansfield.

“We see great opportunity for expansion across key gateway cities in Australia, especially for our globally successful Citadines Apart’hotel and lyf brands and we are currently working with a number of interested parties on both management and franchise models.”

o oli rtf o p tel joins Rydegs

Event adds Rotorua hotel Event Hospitality and Entertainment will welcome a NZ Hotel Holdings Rotorua hotel to its portfolio.

The property, previously operated by IHG under the Holiday Inn brand, will be refurbished and renamed as Rydges Rotorua before opening in July 2022.

“We are looking forward to bringing a fantastic new Rydges offering to Rotorua that can be enjoyed by locals, travelling Kiwis and international visitors alike,” said Event Hotels and Resorts General Manager for New Zealand operations, Simon White.

“Rotorua is such a special place, and we are excited to once again partner with NZ Hotel Holdings to bring quality accommodation, food and beverage, and conferencing options to the area.”

A message from AHICE 2022 Principal Partner Pro-invest Group AFTER THE CHALLENGES of the last two years AHICE 2022 was a welcome harbinger of better things to come for the hotel and hospitality industry.

It was satisfying to circulate among so many counterparties and partners in an atmosphere of optimism and bullishness about the industry ‘s prospects.

This sentiment came through strongly in the panel discussions over the course of the event’s two days. We heard from the Owners’ Panel on AHICE opening day that the lifting of travel restrictions had seen Europe already return to 2019 trading levels, with the Asia-Pacific set to follow shortly. The

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outlook for Australia is particularly strong as international visitor flows strengthen.

As Pro-invest Group Chair Ron Barrott noted in his Investor Q&A with James Wilkinson, COVID will likely prove to have been a dip in the natural cycle of the market.

In previous major events like the GFC, hospitality emerges more strongly than predicted every time.

For Pro-invest Group, AHICE 2022 was an opportunity to mark some significant milestones. We unveiled Vista Hospitality Group, our joint venture with Next Story Group to create a one-stop hospitality operations platform. We also announced the

first hotel purchase under our new Fund III, the Campbell5 hotel in Canberra, which will operate as The Sebel Canberra Campbell.

AHICE attendees this year were left in no doubt about the emergence of sustainability as a critical theme in hospitality, reflected in the launch of ONE EARTH COUNTLESS EXPERIENCES as the brand that will underpin Pro-invest Group’s own investment in sustainability across our hotel portfolio.

Our appreciation - and congratulations – go to HM Magazine for hosting such a successful and vibrant 2022 event, the starting gun for what we hope will be a swift rebound for our industry.

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Long-stay brand to hit Brisbane

Two signings for IHG IHG Hotels and Resorts launched a new Holiday Inn – its fifth hotel in Adelaide – and announced plans to open a Crowne Plaza on NSW’s South Coast.

Holiday Inn and Suites Mawson Lakes, which is owned by a joint venture between the Pelligra Group and Bruno Muscatello, is due to open in 2024.

Meanwhile, Crowne Plaza Shell Cove Marina is slated to open in 2025.

“We’re thrilled to be extending our reach across regional NSW with the addition of this stylish, designforward hotel on the NSW South Coast, highlighting the increasing demand for contemporary new hotels in regional NSW,” said IHG Hotels and Resorts Australasia and Pacific Managing Director, Matt Tripolone.

An artist’s impression of Crowne Plaza Shell Cove Marina

BWH to introduce Executive Residency BWH Hotel Group is set to bring the Executive Residency by Best Western brand to Australasia this year following an agreement with ARBT Property Group.

The extended stay brand will make its debut

with a Brisbane property, Executive Residency Woolloongabba, which is expected to open in the fourth quarter of 2022.

“We’re very excited about it,” BWH Hotel Group’s Managing Director Australasia, Graham Perry, told delegates at AHICE. “My team, and Danilo [Curcuruto] and Elena [Martiniuc] in particular, have been working around the clock, and I’m delighted to say that we’ve just signed a multi-property deal with a Brisbane-based company called ARBT Property Group.”

Wyndham invests in South Australia Wyndham Hotels and Resorts announced investment in South Australia with a McLaren Vale hotel among four recent signings.

“We will bring the Ramada brand to McLaren Vale with a circa 90-key property right in the middle of McLaren Vale, which I think will do fantastically well,” said

Wyndham’s Vice President and Head of Development – SEAPR, Matt Holmes.

Wyndham also signed 204-key Ramada by Wyndham Playford City Centre, Wyndham Garden in Victor Harbor, as well as a new flagship, Wyndham Grand Adelaide.

Wyndham will open its very first hotels

in South Australia, Wyndham Wallaroo Shores Resorts and TRYP by Wyndham Pulteney Street Adelaide, towards the end of this year. n For more on these major announcements, visit hotelmanagement.com.au

Artist's impression of Wyndham Wallaroo Shores resort

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CONFERENCES Marriott International’s Rajeev Menon spoke about his struggles starting out in the industry

LESSONS IN E steemed leaders from IHG, Accor, Marriott and more shared their career learnings with the industry’s up-and-comers at the inaugural Future Leaders Forum which took place on May 3 at SkyCity Adelaide.

Marriott International President of Asia Pacific excluding Greater China (APEC), Rajeev Menon, was one of the keynote speakers at the under-35s leadership summit and spoke about the highs and lows of a career in hospitality.

Menon admits hospitality wasn’t his first love. He had hoped to pursue a career in the Air Force, but less-thanperfect eyesight held him back and set him on the course to pursue his second love – hotels.

He recalled when he first came to Australia, during the recession in 1992, his experience of continuous rejection when job seeking.

“It was pretty tough – the unemployment rate was sky high, not like today,” he said.

“I gave 25 interviews and got rejected from every single one. I was basically told I had no Aussie experience, so I had no chance.”

Even when he eventually secured a job at the Radisson Century on Victoria Street, Sydney, he knew his future with the business was very uncertain when the GM that hired him was fired 10 days later.

“Every evening over the next 50 days, the new GM would walk into somebody’s office with a pink slip and say, Thank you very much, you’re not required anymore,” he explained.

The staffing levels at the 300-room hotel went from 149 down to 99 before things stabilised. Menon said it taught him the importance of being fair and upfront with people.

“If you’ve got to make a difficult decision like this, do it quick, be fair and don’t procrastinate, don’t prolong it,” he said.

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LEADERSHIP THE INAUGURAL FUTURE LEADERS FORUM SAW EXPERIENCED INDUSTRY STALWARTS SHARE THE HIGHS AND LOWS OF THEIR CAREER JOURNEYS AND LESSONS LEARNT TO INSPIRE THE NEXT GENERATION OF LEADERS. Menon’s career advice to young people is to take calculated risks and push outside your comfort zone.

“If you don’t find yourself investing the time in detail and having that passion, then you know you’re in the wrong place,” he said.

“And nobody else needs to tell you that – it’s you yourself. But coupled with that ability to invest time in the details, also take risks, get out of your comfort zone and get into something that will push you, because nine times out of 10, that’s what propels you.”

‘WE’RE NOT CURING CANCER’

The Star Gold Coast Chief Operating Officer, Jessica Mellor, spoke candidly about her career journey, sharing work and travel memories from holidaying in Europe, lessons learned from work in hospitality and recruitment, and her determination to be successful in construction.

Speaking about her perspective on a career in hospitality, she said it’s important to remember it’s about entertainment.

“We’re not solving world hunger, we’re not curing cancer, we’re helping people have a great time,” she said.

“And it’s really important to acknowledge that we’re not doing those really heavy tasks, so that we keep it fun, and we don’t sweat the small stuff.”

BEING AUTHENTIC

Mellor discussed how working in construction taught her about the importance of connecting with people and being true to herself.

“I knew the detail that were in our plans better than anybody and I would push back hard when I didn’t agree with something,” she said.

“I also accepted getting called ‘Darl’ a lot. I wore my pink socks to work with my work boots. I made sure that I was in the pub at four o’clock for knockoff drinks.”

She said her efforts in forging connections with people and being true to herself was just as important as knowing her stuff.

“It was making the connections with people and showing up as my authentic self that truly earned the respect of those who I worked with, despite my youth, gender and inexperience,” she said.

Mellor said that she continues to rely heavily on her ability to build genuine relationships to this day.

BUSINESS OF BRANDING

IHG Hotels and Resorts CEO Europe, Middle East, Asia and Africa, Kenneth Macpherson, talked about his career journey from starting out as a dishwasher before progressing to waiter at a restaurant, and later learnings from his time working with drinks giant Diageo in the UK. Macpherson said there are many common business principles that he could apply to his career in hospitality, including branding, performance management and financial discipline.

“The Diageo business and IHG are both really obsessed about brands and that ability to position a brand so that it’s distinct, and to be clear about how you’re going to build it so that it drives value,” he said.

“Diageo does that for distributors and joint venture partners, driving value for them with their money through your brand, and that’s exactly what we do in hospitality … [With] joint ventures and partnerships, that transfers directly across to asset ownership and the models, particularly the asset light model.” n

Jessica Mellor from The Star Gold Coast shared the importance of being authentic

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CONFERENCES Design Inn panellists discussed the importance of sustainability in design and construction

Better BUILDS INDUSTRY CREATIVES GATHERED IN ADELAIDE FOR DESIGN INN 2022 TO DISCUSS THE FUTURE OF HOTEL CONSTRUCTION, SUSTAINABILITY IN COMMERCIAL ACCOMMODATION AND THE RISING ‘WORK FROM HOTEL’ CONCEPT.

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eading architects, designers, hotel operators, owners and major suppliers were in attendance at Design Inn Symposium in Adelaide in May to discuss key trends in hotel design and development.

The Wellness in Hospitality panel, hosted by Reece Brand Ambassador Manager Loren Inglis, discussed everything from sustainable stays to everyday hygiene and the wellness journey for guests.

“As designers of hotels, I think it’s critical that we design healthy, relaxing and safe space for guests that really enhance physical and the mental wellness,” Dalman Architecture Managing Director, Richard Dalman, said.

Dalman discussed the use of open architecture in creating a comfortable, safe space for guests.

“A lot of our hotel are sealed boxes, we don’t really get to relate to the environment,” he explained.

“If we can kind of break down the areas and start to relate to nature a little bit, I think that’s a good thing. We can bring plant inside we can start to relate the inside to the outside world.”

Meanwhile DKO Architecture Director, Michael Drescher, discussed the little things that matter to guests – from shower pressure to lavender stations, connecting to apps and noise cancelling headphones for meditative 50

HM The Business of Accommodation

purposes, being able to order a Peloton bike to your room, and being able to bring along your pet on your stay.

“It’s all those elements for rooms I think we’re really going to look at because it’s making sure your stay is warm - it’s like being at home,” Drescher said.

DESIGNING WITH COUNTRY

Designing with Country was an important topic of discussion at Design Inn. Considered Image Creative Director, Asher Milgate – whose photography of First Nations people was projected onto the pylons of the Sydney Harbour Bridge during the countdown to Sydney’s 9pm Welcome to Country Fireworks display on New Year’s Eve 2021 – discussed the importance of engaging First Nations people throughout the whole project to ensure their voices are heard.

“Aboriginal artists have a really specific understanding of space, and there’s a sensitivity that is cultural that we certainly don’t understand. I think in my childhood and having worked with First Nations over the last 10 years, I’ve been given glimpses of that,” he said.

“I think it’s really important when you go into that design brief, that you have that Aboriginal voice. If you actually want to engage with them, you’ve got to work collaboratively and step outside of your culture – as hard as that might be – and actually stop and listen to what’s being said.”

In a keynote session, Scott Carver representatives and FCAD Lead Consult and Creator Matthew Fellingham discussed the topic which was fundamental to the design competition process for 197 Church Street, Parramatta.

BOUTIQUE PLACEMAKERS

The popular Boutique Placemakers returned this year, hosted by Luchetti Krelle Principal Rachel Luchetti. This

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session looked at how boutique operators are addressing the ‘Next Normal’ from a design perspective, within their brands.

In this session, Lancemore Group CEO, Julian Clark, discussed the core elements of the Group’s hotel design and influencing factors.

“We take our cue from a design perspective from four different [areas] – one is our brand, one is the architecture of the hotel, one is the climate where the hotel is, and the other one is the vision that we have for the hotel,” Clark explained.

“Each hotel from a design perspective, has got a fair amount of individuality. We think, from a brand perspective, that gives us a consistency of experience … our brand is really all about the experience for the customer.”

Sustainability in Design hosted by WMK Architecture Director – Client Services, Guy Blunden, looked at how being sustainable needs to be at the forefront from planning to build and opening; while Hotel Chains’ Technical Insights, hosted by Scott Carver Director, Angela Biddle, uncovered the top trends from some of the industry’s leading in-house design, engineering and technical directors.

The Design Inn Symposium was sponsored by Hansen Yuncken, the commercial construction business behind the $330 million Eos by SkyCity Adelaide, where the event took place.

“Reinvigorating Australia’s local tourism and supporting the arts and entertainment sectors through world leading construction continues to be high on the agenda for us this year,” said Hansen Yuncken Construction Manager, Scott Brumfield.

“Our team of experts work collaboratively with clients to deliver leading edge landmarks like Eos by SkyCity to create spaces for people to connect, work, relax and explore our great country. We like to think of ourselves as ‘placemakers’, driven by complex, challenging designs that are built with pride.”

The event also featured project showcases on QT Newcastle, AC Hotel by Marriott Melbourne Southbank, Melbourne Marriott Hotel Docklands, HotelMotel Adelaide and InterContinental Parramatta as well as in-person site tours of Sofitel Adelaide and EOS by SkyCity Adelaide.

LEADING CREATIVES CELEBRATED

Following the Design Inn Symposium, the industry’s leading creative minds were celebrated at the 2022 Australasia-Pacific Hotel Design Awards.

Suede Interior Design was awarded the prestigious Paul Davis Award for the Australasia Pacific Hotel of the Year for work on Crystalbrook Kingsley.

Crystalbrook Collection CEO Geoff York was present to accept the award on the night.

“We’re really proud to be recognised for this particular hotel of ours,” York said before thanking the designers and architects that were consulted on the project and the hotel team.

Highly Commended in that category were P49 Deesign for interior design at Sofitel Adelaide and DKO for Pullman Melbourne on the Park.

DKO was also awarded Hotel of the Year – Refurbishment for its work on Pullman Melbourne on the Park.

Hotel of the Year – Conversion went to Suede Interior Design for Crystalbrook Kingsley, with Outrigger Reef Waikiki Beach Resort receiving Highly Commended in this category. Outrigger CEO Jeff Wagoner proudly accepted this accolade.

P49 Deesign’s work on Sofitel Adelaide was awarded Hotel of the Year – New Build.

The judges felt this project embraced the Sofitel brand of “French elegance” and “celebrated the link between Adelaide and Bordeaux as wine capitals”. The result is a “tactical design, particularly in the public areas which exude a big personality,” the judges said.

Woods Baggot was Highly Commended in the New Build category for its work on Next Hotel Melbourne The judges said: “The committed ESG approach to this project was impressive. And it has already achieved a five-star green star rating for construction design and operation. Emphasis on using locally made carpets, rugs, furniture, and artwork was central to the procurement. Food waste minimisation, bulk sourcing and green choices all added to this excellent

“Aboriginal artists have a really specific understanding of space.”

Asher Milgate, Considered Image

Outrigger CEO Jeff Wagoner receiving Highly Commended in Hotel of the Year – Conversion for Outrigger Reef Waikiki Beach Resort

outcome.” n

Crystalbrook Collection CEO Geoff York accepted the prestigious Paul Davis Award for the Australasia Pacific Hotel of the Year for Crystalbrook Kingsley

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SUPPLIER PROFILE Swisstrade recently launched sealed amenity dispenser system Shape

This creates an opportunity for us as a partner to the industry, to deliver new points of difference and brands that create better guest experiences. More than ever, it is the touchpoints that capture the guest’s attention at each step of their journey. We are very aware, that today our products and brands need to be not only functional and aesthetic, but also ‘Instagrammable’ for a growing socialmedia savvy client base.

How is Swisstrade adapting to demand for ecofriendly and sustainable products?

ECO EVOLUTION SWISSTRADE HAS HAD CLOSE RELATIONSHIPS WITH THE HOTEL INDUSTRY SINCE ITS INCEPTION IN 1997 AND CONTINUES TO OFFER TAILORED SOLUTIONS FOR HOTEL OPERATING EQUIPMENT AND SUPPLIES TODAY. SWISSTRADE DIRECTOR AND FORMER HOTELIER, PETER WEINGARTEN, SPOKE TO RUTH HOGAN ABOUT THE EVOLUTION OF THE BUSINESS. How has Swisstrade’s collection evolved in recent times?

O

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Any other key trends that you’re seeing in hotel supplies?

A clear tendency is the need for hoteliers to lean on businesses like Swisstrade for expertise and assistance.

The skill and labour shortage brought about by the pandemic has created a knowledge gap within our industry which is made worse by the exceptional movement within the labour market. In addition, OS&E is a vast category that is generally underestimated in terms of its extent and complexity. At Swisstrade, we draw from 25 years of business experience as well as our own careers in hotel management and operations. This allows us to assist our customer base with advice and support where needed. n

a We str ingarten, Swis

In what ways have hotel guests’ needs changed in 2022 from your experience?

It’s not so much the needs, but the expectations of today’s hotel guest that we have seen changing over the past years. With a regional travel boom created by the recent pandemic and a constant flow of new hotel brands entering the market, travellers are getting used to newer products, nicer interior design, and better technology.

replenishment process down to three seconds.

Another highlight in this space has been the launch of our compostable hotel slippers Seedling Sole – an idea that was born and then developed during COVID lockdowns and has enjoyed great success since the launch. Environmental sustainability is at the core of everything we do, and we incorporate our customers own requirements into our product planning for the future.

Swisstrade recently welcomed JVD France to its portfolio

de

et er

P

ne of the most significant developments at Swisstrade, has been the addition of JVD France to our portfolio in 2013. We were the first to bring an international and hotelspecific equipment brand to our shores, which to this day is proving the backbone of our success in hotel projects and developments across a wide range of stakeholders.

Developments like these keep us front-and-centre with corporate chains and local independent operators alike.

We are always listening to the challenges of today’s operating environment to bring new and innovative solutions to market.

With our strong business DNA in sustainable guest toiletries, we represent or create products and brands that meet hoteliers ESG objectives and commitments. These range from how environmentally we conduct our business to our portfolio of sustainable products and brands. For instance, we are now in the process of launching our third generation, sealed amenity dispenser system, Shape, which incorporates a revolutionary new pump system and an invisible wall holder that reduces the labour cost of the

CONCIERGE CORNER

Adopt, adapt, improve

By Peter McBrearty, Les Clefs d’Or

Navodit Basoya

Making it in Melbourne HM meets Sofitel Melbourne Guest Experience and Concierge Manager, NAVODIT BASOYA. Can you describe the career path you have travelled to your current position at the Sofitel Melbourne?

I

started my hospitality career as a porter at Four Seasons Sydney before moving to my first Concierge role at the Sir Stamford Circular Quay. After that, I joined the Intercontinental Sydney to start working with the then-Secretary of Les Clefs d’Or. From there, I went to the Westin Sydney and Melbourne, working with the past-President of Les Clefs d’Or, and we assisted with the brand change from Westin to Fullerton. After the first COVID lockdown, I started working at the Emirates One and Only Wolgan Valley, and after enjoying the fresh air and resort life I saw the opening at Sofitel Melbourne and decided to move back and challenge myself with a new city.

After relocating from Sydney to Melbourne, did you find it challenging to re-establish your network of contacts and knowledge of venues, restaurants, and attractions etc.?

It was a steep learning curve, especially because not a lot of attractions and restaurants were still fully operational when I moved here. But the Les Clefs d’Or network helped and guided me through re-establishing my networks here.

Are you noticing an increase in the number of interstate and overseas visitors following the relaxation of travel restrictions?

Yes, in fact I was looking at the bookings we made over recent months, and April was noticeably busier than the previous months.

Do you notice any major differences in the guest requests you receive here in Melbourne from Sydney, or do you feel your guests in both locations are generally interested in similar attractions and activities?

Many of the requests are quite similar. The major difference I have noticed though is that people come to Sydney for the harbour and the historic neighbourhoods, but they come to Melbourne for the architecture, events shows and of course the laneway art.

Will you be supporting a local AFL club – or adopting the Melbourne Storm as your new team?

I have been doing my research and have heard some compelling arguments for various clubs, but ultimately, I have decided to adopt Melbourne Storm as my new team. I came here and Melbourne city has been kind enough to adopt me – so it’s only fair I do the same! n

AS WE REACH the halfway point of 2022, as is so often the case, the picture has been one of contrasts. On one hand, we’re all seeing an encouraging and progressively rising number of international visitors returning to our properties, corporate and group bookings continuing to track well, mirrored by a corresponding rise in functions and events. At the same time, the continued issues in securing quality staff in the numbers required, have been impacting service delivery, resulting in increased incidences of guest dissatisfaction, and more problematically still, the departure of experienced employees, who are in many cases electing to leave the hotel industry entirely.

Not all is dark in the Concierge world though.

The strong response by our industry associates to the recent Victorian Les Clefs d’Or Tourism Expo was an exceptionally encouraging sign that these companies see value in promoting their products to the Concierge and Front of House staff, which in turn indicates an anticipation of the ongoing growth of inbound tourist numbers. Similarly, the demand for experienced Concierge at both existing and new properties has shown no sign of flagging.

The immediate challenge for us is to rise to the occasion and accommodate our guests’ needs while at the same time trying to source and train a new generation of professional Concierge.

In 1927, the Prince of Wales made a speech at the British Industries Fair where he stated: “The young business and professional men of this country must get together round the table, adopt methods that have proved so sound in the past, adapt them to the changing needs of the times and wherever possible, improve them.” This has since been contracted to the well-known expression, “Adopt, adapt and improve” – and despite the passage of nearly 100 years it would seem this advice may well be even more relevant now than when the speech was made.

In the short to medium term at least, adaptability, creative thinking and managing to do more with fewer staff and resources may prove to be the hallmarks of our most successful properties.

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HUMAN RESOURCES The whole guest experience suffers if rooms are not up to standard

KEEPING UP AUSTRALIA’S LABOUR SHORTAGE HAS PROMPTED MANY HOTELS TO OUTSOURCE CERTAIN TASKS SUCH AS HOUSEKEEPING. RUTH HOGAN REPORTS.

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ustralia’s labour shortage is continuing to place a high burden on hotels as travel picks up once again. With unemployment at its lowest rate since 1974, and a limited number of students and working holiday visa holders entering the country, many hotels are still grappling with staff shortages.

Without the resources needed to keep hotel rooms clean and guests attended to, the whole traveller experience can suffer. For this reason, many hotels are outsourcing certain tasks within the hotel, mainly housekeeping.

“The industry is under immense pressure to fill critical roles such as Room Attendants – without these key team members there are no clean rooms to sell,” Luxxe Chief Executive Officer, Craig Coughlin, told HM. Since September 2021, Luxxe has experienced a surge in demand from under-resourced hotels seeking its services.

“Outsourcing is about gaining an extension of specialist resources Craig Coughlin, Luxxe to enhance your hotels

“The industry is under immense pressure to fill critical roles such as Room Attendants.”

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operation. Housekeeping has been, and always will be, the most critical department for a hotel that sells rooms,” Coughlin said.

Luxxe takes on all the recruitment requirements for the housekeeping department, including advertising, interviewing, onboarding, induction and training.

“We become an extension of the hotels HR team,” Coughlin said.

AGILE APPROACH

Labour outsourcing company ahs hospitality says the recent increase in travel is keeping the occupancy curve ahead of the recruitment pipeline, and that industry needs to work together to overcome this challenge.

“Hospitality is still facing unprecedented challenges and as leaders we have to remain resilient so that we can support our teams as they remain our best assets,” ahs hospitality Executive General Manager, Leanne Graham, told HM. “There are some months to come with the labour challenges and we must all work together so that we can once again emerge as an industry that is fun to join and full of opportunity.”

While industry associations have worked hard to remove certain restrictions on visa holders working in Australia, so far this is having little impact in a candidateshort market. For this reason, ahs hospitality has had to be agile in their approach to recruitment and retention.

“We are placing a greater emphasis on referrals as opposed to direct applications and with limited

HUMAN RESOURCES

students and working holiday visa holders arriving in Australia, we have focused more on our Employee Value Proposition (EVP) and retention,” said ahs hospitality Human Resources General Manager, Ben Kazakoff.

The business is also exploring integration of the latest hospitality innovations to complement the labour force.

“We continue to innovate by working and taking part in research with partners that provide technology complimenting the labour force to help them be more efficient rather than replace them,” said ahs hospitality Business Development General Manager, Justin Jones.

Working with hotel partners, ahs hospitality can tailor services to the resources available, and in some cases, works in partnership with other labour hire companies.

“We have broadened our recruitment funnel and have developed localised targeted strategies in conjunction with the traditional resourcing mechanisms to strengthen our frontline staffing pool,” said ahs hospitality General Manager VIC /TAS/SA, Karl Unterfrauner.

“We’ll continue to tailor solutions for each of our hotel partners and invest in training and development of our teams.” n

TECHNOLOGY

Many international travellers are utilising apps and OTAs to book their dream trip Down Under

times, according to Agoda Director of Partner Services – Oceania, Zsuzanna Janos.

“We got used to domestic customers booking last minute because of the uncertainty but international customers tend to book a month in advance or more, giving hoteliers a better view of inventory – and whether they need to take more decisive pricing actions to reach more travellers,” Janos told HM. When planning their trip, today’s tech-savvy travellers will frequently turn to an app or online travel agent (OTA) that they are familiar with in the hopes of getting the best deal.

“There is no doubt that COVID accelerated the digitisation of the industry,” Janos said.

“Consumers are now far more comfortable with using technology to buy everything from groceries to clothes and of course travel.

“We see a continuing upward trend in bookings via mobile and app usage, with more travellers coming direct to book. This means hoteliers and accommodation partners need to ensure they have a solid mobile strategy if they want to be able to compete effectively, offering great value deals to consumers via these platforms.”

CONVERTING WITH CHATBOTS

WITH BOTS TECH-SAVVY TRAVELLERS ARE TAPPING INTO ONLINE BOOKING SYSTEMS AND CHATBOTS TO SECURE ACCOMMODATION FOR THEIR NEXT BIG TRIP, RUTH HOGAN REPORTS.

T

he long-awaited return of international travellers, albeit gradual, is a welcome boost for the hotel industry after a tough two years of closed borders. And hoteliers are doing whatever they can to get themselves in front of these new customers, including exploring online booking systems and chatbot technology.

According to Statista, two-thirds of revenue in the global travel and tourism market came from online sales channels in 2021. In that year, the online travel market size worldwide was roughly US$433 billion, and it was forecast to reach approximately US$691 billion by 2026.

Throughout May-June 2022, online booking platform Agoda observed much international interest in travel to Australia was coming from Asia, reporting Singapore, Thailand, Malaysia, Indonesia and South Korea as the top origin markets.

International travellers are highly sought after by hotels because they have the added benefit of longer lead 56

HM The Business of Accommodation

In order to win the business of modern travellers, many hotels are exploring web chat technology to convert bookings on their own website.

“Web chat is becoming a new way of booking,” said David Thompson, Co-Founder and Chief Executive Officer of AI chatbot platform, Book Me Bob. The New Zealand tech start-up operates over 100 different chatbots around the world and was named one of the winners of Microsoft’s EmergeX Highway to a 100 Unicorns Program. The company recently secured $2 million funding from cornerstone investors.

Chatbots assist the customer from the discovery stage right through to making a booking by answering any questions that they may have before committing.

“It’s a conversion tool,” Thompson told HM. “We’re not going to bring any more people to a webpage, but when they get there, we’re going to grab them – so they’re not going to go back and book somewhere else – and we’re going to provide them with the information really fast.”

Through its work with hotels, Book Me Bob discovered that about there are about 130 generic questions that a potential guest might ask that can be answered with a pre-determined response, such as questions that relate to check-out time, room rates or parking.

These answers are uploaded into the system and can be edited by the hotel. In the backend, hotels can also track webpage visitors, conversations, and commonly asked questions from travellers.

The chatbot can interact with the customer in multiple languages and can even tell jokes.

“It’s designed to feel like a human conversation,” Thompson said. n

TECHNOLOGY Guests expect to have control over air conditioning and lighting to maximise comfort

TAKE CONTROL IN-ROOM CONTROL SYSTEMS ARE AN IMPORTANT PART OF THE GUEST EXPERIENCE, BUT EXPERTS SAY THEY ARE MERELY A STEPPING STONE TO AI. RUTH HOGAN REPORTS.

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rom the moment a guest passes the threshold into their room, in-room control systems play an important role in the quality of their experience.

Guests expect to have control over air conditioning and lighting to maximise their comfort. But today, it’s not as simply flicking a switch.

HUB OS Australia Product Manager, Robert Bell, says whilst switches now appear archaic, they were always reliable, and it’s crucial for hoteliers to be able to say the same about their modern control panels.

“Sophisticated touch panels can offer mood lighting and precise temperature control however can be prone to failure, an additional electrical item for the hotel to manage and repair, plus cause immense frustration to the guest if they don’t respond to the touch – hence they represent risk and cost to the hotel,” Bell told HM. “Still, hotels will rather provide the high-tech options as these offerings make a statement to the guest about the hotel and their experience. This technology is often a step-up from what guests have in their homes, creating that sense of experience.”

As valued as these systems are by hotels and guests, Bell doesn’t believe they will be around for much longer as they are likely to be replaced by advanced artificial intelligence (AI).

“The ultimate path for in-room controls is not to actually have them,” he said.

“Everything in the future will be automated with AI via smart sensors: body-temp monitors, guest-preference learning, voice-control, facial recognition, day-light sensing etc, and the room temperature will always be

maintained to the ideal temperature without any input or even acknowledgement from the guest.

“Touch-panels will become obsolete, the guest won’t even need to be aware of the HVAC systems no panels, noise or visible units etc.”

SMART SYSTEMS

“Touch-panels will become obsolete.”

Robert Bell, Hub OS

Bell says technology is now intrinsic to the guest experience and even more important than customer service, but that these systems should be self-serving.

“No longer should we expect the guest to report to the hotel that a globe is out, or that the shower is cold, or the AC is ineffective. We should know this before the guest feels the effects,” he said.

Bell points to smart in-room systems such as Signify’s Interact which reports any detected defect to its own dashboard. However, he believes this needs to go a step further.

“This message should be delivered directly to the shiftengineers, and where there’s a guest in-house in this room, raise a maintenance task as a priority,” he said.

Signify and HUB OS are working together to achieve this outcome for a new high-profile hotel, Bell explained.

“Signify will identify whether a guest is physically in the room and deliver this to Housekeeping via the attendants’ HUB OS devices – meaning the days of a knock on the door are over,” he said.

“And the moment Signify detects a defect, this will instantly raise a work-order in HUB OS and deliver this, as priority, to the shift-engineers who can respond immediately. The engineer can respond and knock on the door before the guest gets to report it. If the guest in not in-room, the defect will be rectified before the guest will ever know.”

Bell says this is the powerful role that technology can play in delivering a better guest experience.

“Smart systems talking to smart systems, that’s just sensible,” he said. n hotelmanagement.com.au

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Credit: Architecture and Design by Cox Architecture; FF&E by Move-in; Photography by Andrea Sissons

Credit: Architecture, Design and Photography by Cox Architecture; FF&E by Move-in

ROOMS DIVISION

Local materials were used in elements of the FF&E and joinery at Sebel Silverwoods

SENSE OF

PLACE A GROWING TREND TOWARDS LOCALISM SEES HOTELS EMBRACE LOCALLY-SOURCED MATERIALS FOR FURNITURE, FLOORING AND TEXTILES TO HELP REDUCE ENVIRONMENTAL FOOTPRINT, RUTH HOGAN REPORTS.

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s the industry strives to reduce its environmental footprint, many hotels are exploring how construction and design choices can reflect their sustainability ethos.

Using materials from local or regional sources is high on the agenda for many eco-conscious designers of late.

In fact, some projects will now specify that materials should be sourced within a certain limited radius from the site.

Using local materials has the obvious benefit of reducing transport times, but it also means that hotels are supporting the local economy. Some believe that 58

HM The Business of Accommodation

using local materials could promote more vernacular building styles.

This was seen with the recent opening of Ace Hotel Sydney, designed in partnership with Flack Studio.

Local organic materials are at the forefront of the hotel’s design from acoustic textural straw walls to the ochre red concrete staircase.

The hotel’s guest room furniture, joinery and lighting were custom designed by Flack Studio.

“We wanted to preserve the creative, slightly renegade energy of the space since its origins as one of Australia’s early brickworks,” Designer David Flack said prior to the hotel opening.

“We were committed to creating a warm space that brought together Australia’s cultural history with Ace’s unique, community cultivating approach to hospitality.”

SUPPORT LOCAL

Furniture, Fixtures and Equipment (FF&E) specialist, Move-in, actively works to support local designers and makers.

ROOMS DIVISION

Move-in Director Zahava Elenberg told HM that hotels are becoming increasingly aware of how each design can contribute to their sustainability mission.

“We are seeing more of our clients being responsible for the long-term outlook and sustainability of their projects, and their place in that story,” Elenberg said.

“The market is responding accordingly, and we are glad to be part of that conversation.”

Elenberg pointed to Move-in’s work on a recent luxury hotel and resort in regional Victoria, Sebel Yarrawonga Silverwoods, where the rooms incorporated natural textures, materials, and hides.

“It was great to collaborate with the architects and a client who wanted to support the local economy and integrate sustainable practices,” she said.

“Local materials and craftspeople were used on elements of the FF&E and joinery, including equestrian tack in the banquette seating, designed by the architects.”

Move-in recently collaborated with local designers and makers when working on FF&E at a Build to Rent project in inner city Melbourne.

“We wanted to ensure there was both an element of local identity embedded within the furniture, but also an effort to practice low impact supply,” Elenberg said.

Another recent project, large-scale student accommodation, had a very strong focus on local for FF&E. “In one project, we had a 5km radius policy for the soft furnishings, artworks, styling, and accessories which created a very unique and authentic outcome,” Elenberg said.

‘IT MAKES SENSE’

“It is this emotional connection and reinforcement of local culture and place that we are excited to be a part of.”

There is often a misconception that it is not financially viable to use locally-made products, which Elenberg is quick to debunk.

“When you consider all the factors from timeframe to the economy and the environment, it can make a lot of sense [to source local],” Zahava Elenberg, Move-in she said.

Elenberg believes the use of local materials contributes greatly to the “sense of place” in a particular building.

“A sense of place is important: when you are in Melbourne you want to feel that you are in Melbourne, and if you are in New York, you want to know that you are in New York,” she said.

“It is this emotional connection and reinforcement of local culture and place that we are excited to be a part of, and we see this trend being driven by an engagement with sustainable design initiatives.” n The rooms at Sebel Yarrawonga Silverwoods incorporate natural textures, materials, and hides

Credit: Architecture, Design and Photography by Cox Architecture; FF&E by Move-in

By sourcing materials locally, hotels are contributing to the local economy in which they operate

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FOOD AND BEVERAGE Big Drop Brewing supplies Hilton Hotel Sydney with alcohol-free beers

Brews

ZERO BOOZE

AS CONSUMER DEMAND FOR NON-ALCOHOLIC DRINKS CONTINUES TO RISE, MANY HOTELS ARE ADAPTING THEIR OFFERING TO STAY RELEVANT. RUTH HOGAN SPOKE TO FOUR BEVERAGE COMPANIES THAT ARE OPERATING IN THIS SPACE.

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fundamental part of any hotel’s food and beverage offering is its selection of alcohol.

Guests have come to expect a list of exquisite local wines, locally-distilled gin, and craft beer as standard. But as more and more Australians adopt healthier lifestyles, many are choosing to moderate their alcohol intake, and are turning to no- and low-alcohol (no/low) beverages to do so.

The non-alcoholic drinks segment is booming, and IWSR forecasts that no- and low-alcohol volume in Australia will increase by 16% from 2020 to 2024. It found that 76% of consumers are looking to continue or start consuming no/low beverages.

Big Drop Brewing, which supplies nonalcoholic brews to Hilton Hotel Sydney among others, says the category has evolved greatly in recent years.

“As expertise and production methods have increased, particularly over the past couple of years, 60

HM The Business of Accommodation

Research shows 76% of consumers want to consume no- or lowalcohol beverages

consumers have been given greater choice combined with higher quality offerings,” Big Drop Brewing Country Manager - Australia and New Zealand, Darren West, told HM. “There’s no need to totally ‘abstain’ on a weeknight or drink a soft drink if you’re driving, because now you can have a high-quality drink, without the alcohol and not miss out on the experience. This has been reflected in category growth too, particularly in beer, where no-low and craft have been cited as the two segments that have arrested total category decline.”

West points to moderation, health and wellbeing, and premiumisation as the key trends driving the no/low category.

“With no/low, the core difference - beyond ABV - is the added benefit of often being low calories too,” he said.

“Infact, no-low has the opportunity to reach and manifest within broader occasions where refreshment is a driver, given the reduction of alcohol and also, particularly within Big Drop beers, which tend to be half the calories of full-strength beers.”

BIG BEER

One of the major market players in Australian beer is Carlton & United Breweries (CUB), now owned by Asahi Beverages. Today, no, low and mid-strength alcohol beers make up almost 30% of the company’s beer sales – a significant jump from 14% in 2016.

FOOD AND BEVERAGE

Carlton Zero launched in 2018, becoming the first nonalcoholic beer in CUB’s 180-year history.

“The major marketing spend we put behind its launch changed the non-alc beer landscape in Australia, with the segment growing over 100 times in Australian bottleshops since then,” an Asahi spokesperson told HM. “Our range of zero alcohol beers also includes Great Northern Zero, which is now the number one nonalcohol beer in the country, and Peroni Libera 0.0%.”

Asahi says its non-alcoholic beers are performing extremely well, particularly among 25–34-year-olds with active lifestyles. The consumer feedback is that they taste like regular beer.

“We have created the best zero-alcohol beer portfolio in the country, which means the moderation trend is an enormous opportunity for us and our customers,” the spokesperson said.

“We have more than half the zero-alcohol beer market in Australia by market share so it’s a leading position.”

Zero-alcohol beer already accounts for about 1% of Australian retail beer sales, according to Asahi, and this is expected to double by 2025.

“Moderation is the biggest trend in beer, and Australians are increasingly embracing the responsible drinking message. They still love a beer; they are just looking for more opportunities to moderate their

“Moderation is the biggest trend in beer, and Australians are increasingly embracing the responsible drinking message.”

Asahi Beverages Spokesperson

McGuigan Zero is the top selling alcohol-free wine range in Australia, NZ and the UK

consumption. This is a great thing, and we are working closely with our hotel customers to ensure we are meeting the changing tastes of consumers,” the Asahi spokesperson said.

ADVANCES IN NON-ALC WINE

When it comes to alcohol-free wines, a number of big brands are getting in on the action. Australian Vintage Limited, better known as AVL, is responsible for the number one selling alcohol-free wine range in Australia, New Zealand and the UK, McGuigan Zero.

AVL Wines General Manager for Australia and New Zealand, Jeff Howlett, told HM that the non-alcoholic wine category continues to accelerate, with sales doubling over the past year as new consumers enter the category each month.

“1 in 2 Australians are now looking to moderate alcohol consumption and 1 in 4 are turning to nonalcoholic wines to do so,” Howlett said.

“We are forecasting the total nonalcoholic and non-alcoholic wine category to continue its growth trajectory over the coming years as the moderation trend continues and more consumers enter the category.”

There is some stigma around the non-alcoholic wine category in comparison to other non-alcoholic categories, Howlett admits, but as production methods advance, products are being enhanced to replicate the full-strength counterpart.

INNOVATION FOR INCLUSIVITY

Naked Life is a leader in non-alcoholic ready-to-drink cocktails

Melbournian start-up Naked Life is Australia’s market leader in non-alcoholic ready-to-drink cocktails in grocery.

In fact, the company says it has sold double the number of units of Heineken 0% and the rate of sales of the Naked Life Non-Alcoholic G&T is twice the rate of Gordon 0%.

Naked Life Founder, David Andrew, said there is a growing group of young people who indicate not to be drinking at all.

“This can be seen in line with an overall health trend, and especially coming out of COVID consumers have deliberately made choice of what they want back in their lives and what not or a little less,” Andrew told HM. Naked Life says taste is the biggest driver of sales.

“Historically, mocktails haven’t always tasted great and the options weren’t far and wide,” he said.

“By offering an experience that looks and taste like the alcoholic alternative, people feel included into the occasion and don’t feel they have to compromise, just because they don’t drink.” n hotelmanagement.com.au

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HEALTH AND HYGIENE

CLEAN

Sweep HOTELS ARE INVESTING IN STRINGENT HYGIENE PROTOCOLS AND SANITISING TECHNOLOGY TO GIVE GUESTS CONFIDENCE IN HEALTH AND SAFETY MEASURES DURING THEIR STAY. RUTH HOGAN REPORTS.

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s a result of the pandemic, consumers continue to be conscious of hygiene measures and protocols when travelling and visiting hotels.

Research commissioned by Lysol and Dettol, found that 80 per cent of people ‘definitely’ expect strict cleaning protocols in four- and five-star hotels.

For this reason, hotels are investing in their hygiene measures to safely welcome travellers and corporate events.

Hotel operator Accor has partnered with businessto-business platform Dettol Pro Solutions to introduce sanitising products to Accor’s hotels, apartments and resorts, such as Novotel, Mercure and Sofitel, particularly in reception, meeting and event spaces.

“We prioritise all people’s health and wellbeing, and our investment in this partnership with a brand as trusted as Dettol will bring peace of mind to all when working or staying at one of our properties or attending for a meeting or event,” said Accor Pacific CEO, Sarah Derry.

Through this partnership, employees and guests will have access to a range of Dettol’s hygiene products such as Dettol Instant Hand Sanitiser, Dettol’s 2in1 Hands and Surfaces Wipes and Disinfectant Cleaning Wipes, and employees will be educated on cleaning protocols for high-traffic, high-touch areas such as lift buttons, touchscreens, and door handles.

Accor establishments will also display Dettol branded signage in meeting and events rooms, entrance points and online to encourage good hand hygiene.

“It has been a really tough few years for the hotel industry,” Reckitt Health ANZ General Manager, David Rankine, said.

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Accor guests will have access to a range of Dettol’s hygiene products during their stay

HEALTH AND HYGIENE

Accor has partnered with Dettol to improve hygiene measures at its hotels, including Novotel Melbourne Preston “With Australia’s borders now open to international tourists, guests and team members can feel confident in the strict hygiene measures we are implementing together via the Dettol Pro Solutions program; Accor is well-placed to return to normal operations and capacity levels. We’re very proud to be supporting one of the world’s largest hotel operators with Reckitt’s industry-leading rigour and expertise.”

The Dettol partnership is the latest evolution of Accor’s commitment to strict hygiene standards. In 2020, Accor deployed the Allsafe label to demonstrate the company’s elevated cleanliness protocols and standards which are audited by the Group’s operational experts or third-party auditors.

SANITISING TECHNOLOGY

Sanitising technology continues to advance in the wake of the pandemic, with industry giant Kimberly-Clark Professional launching its Icon dispenser collection in Australia and Singapore – what the company says is its most significant upgrade in technological advancements in over a decade.

The collection includes a touchless paper towel dispenser, soap and sanitiser dispensers, and toilet paper dispenser options.

The noiseless system delivers more than one million dispenses, and a single set of batteries lasting up to five years delivers up to 150,000 dispenses.

The touchless element of the new collection is designed to minimise contact points for a more hygienic

Kimberly-Clark Professional says its Icon collection is its most significant upgrade in over a decade

experience, reducing the potential risks of cross-contamination, while dual sensor technology recognises partially torn sheets and presents a new sheet before dispenser issues occur, ensuring the machine doesn’t get jammed and requires minimal maintenance.

“Backed by teams of hygiene and innovation experts, the launch of the Kimberly-Clark Professional Icon dispenser demonstrates our commitment to delivering unmatchable confidence in the washroom,” said Nicole Wu, Vice President of Asia-Pacific, Kimberly-Clark Professional.

“As higher expectations of cleanliness become a lasting benchmark, we want to be a trusted provider of game-changing hygiene for the well-being and safety of all users and choosers. The Icon collection offers a new standard with a ‘touchless’ experience as an imperative part of the washroom.”

A recent survey commissioned by Kimberly-Clark Professional show the importance that washroom users place on hygiene when using a washroom. The survey found that 63% of public washroom end-users believe confidence in hygiene requires more than just the appearance of a clean facility.

Nearly 50% of those surveyed indicated that touchless amenities such as touchless soap dispensers, touchless disposable paper towel dispensers and automatic doors are important to make them feel confident that the washroom facility is clean and hygienic, and nearly 50% of decision-makers of products in facilities expect public washroom hygiene to be better than now in the next 12 months. n hotelmanagement.com.au

63

DESIGN AND BUILD

SKY’S THE

Eos by SkyCity Adelaide features high-performance facades to minimise heat loads

LIMIT

WITH THE HOTEL INDUSTRY UNDER INCREASING PRESSURE TO DELIVER GREENER HOTELS, CONSTRUCTION COMPANIES ARE LOOKING AT FRESH WAYS TO REDUCE THEIR IMPACT, RUTH HOGAN REPORTS.

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HM The Business of Accommodation

DESIGN AND BUILD

I

t will soon be mandatory for hotels and buildings to disclose their NABERS (National Australian Built Environment Rating System) energy rating, according to Green Building Council CEO, Davina Rooney.

Speaking at this year’s Design Inn Symposium, hosted at SkyCity Adelaide, Rooney said the government rating system of a building’s environmental performance will become even more important to the industry.

“NABERS mandatory disclosure is coming,” she told delegates.

“It is currently being formally considered by government as to when that will come into place.”

Rooney talked about the importance of engaging people through leading sustainable programs.

“We have 85% of our consumers becoming greener in their purchasing habits,” she said. “We have leading hotels that we’re working with in this space, we’d love to see a lot more.”

Sponsored by Hansen Yuncken, Design Inn provided a platform for industry representatives from Australia, New Zealand, and the South Pacific to share insights into hotel design, construction, and future trends.

Guests are looking for hotels that share their values on sustainability

Hansen Yuncken also used electric cranes rather than diesel throughout the project, to reduce the impact on the environment.

“Waste reduction throughout the build was incredibly important to Hansen Yuncken - we recycled around 90 SUSTAINABILITY IN CONSTRUCTION per cent of our waste, which reduces our carbon footprint It was fitting that the Design Inn took place in the dramatically,” Brumfield added. $330-million luxury hotel Eos by SkyCity Adelaide – Construction of the glazed facade, a major feature of a Yuncken build which was heavily focused on green the building, was complex however, as it was partially construction and design practices. sourced from overseas.

Hansen Yuncken Construction Manager, Scott “The glazing was Brumfield, said, sustainability in commercial prototyped in Thailand, as accommodation is a rising focus for industry, and was a well as Adelaide, where it was key focus in the development of Eos by SkyCity. adapted to a standard system “Some of the innovations employed during the Eos to ensure cost effectiveness,

by SkyCity build included high performance facades to and yielded to accommodate minimise heat loads, a very detailed commissioning process, the required curves and and guest management systems,” Brumfield said. capability,” Brumfield said.

“We used triple Low-E glass to help block out the “Extensive desktop analysis sun’s ultraviolet and infrared rays, and desktop thermal and computer modelling was modelling to understand the heating and cooling factors carried out to test for the of the final building.” high-performance efficiency Scott Brumfield, Hansen Yuncken for thermal loads and acoustics that this first class Hansen Yuncken took a green approach to Eos by SkyCity Adelaide building demanded.”

Eos by SkyCity General Manager, Jodi Brown, said the development of Eos by SkyCity was an extremely positive experience.

“To successfully deliver projects in this changing landscape, companies need to understand the client brief and work within the brand’s intended outcomes,” Brown said.

“This means having a very open dialogue with architects, designers and other stakeholders which Hansen Yuncken did very well. As a result, I’m happy and confident in saying we are Adelaide’s market leader and excited to see the local hotel industry develop.”

Since opening, interest in the property has remained strong, according to Brown.

“We have consistently achieved extremely high occupancy levels,” she said. n

“Waste reduction throughout the build was incredibly important to Hansen Yuncken - we recycled around 90 per cent of our waste.”

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PEOPLE

People on the Move The latest key HR movements across the hotel industry

Getting To Know...

Carolyn Smith

Courtyard by Marriott Melbourne Flagstaff Gardens General Manager, CAROLYN SMITH, is Marriott International’s youngest female General Manager in Australia. Here, she reflects on her 20-year hospitality career and the importance of understanding all facets of a hotel business.

Tell us about your first job in the accommodation industry?

My first hotel job was back in 2001 as a porter at The Westin Melbourne – a brand new 5-star hotel at the time. I was completing my ‘industry year’ as part of a Bachelor of Applied Science (Hospitality Management) at William Angliss and RMIT. I was excited get a start in the hotel industry.

You’ve worked in various roles and departments within hotels. How have those roles shaped you as a leader?

My career journey has seen me work in every facet of hotel operations and management – from a porter, then progressing through the ranks of the Rooms Division, including as Executive Assistant Manager, Director of Operations, and now, General Manager.

I feel that having exposure and experience in all aspects of running a hotel – knowing what each role entails – has helped me to develop a comprehensive, holistic view of hotel management as well as people leadership skills. Team members know that I have been in their shoes. Such first-hand experience allows greater understanding of the needs and challenges of particular roles, and how to bring out people’s best.

How did working abroad impact your career journey?

In 2010, I relocated to the UK and joined The Langham, London, where I expanded my rooms management experience and oversaw the Langham Club and Guest Services. It was incredible to work at one of the world’s most renowned luxury hotels. Meeting and working with people from all over the globe was a highlight.

What’s the most valuable lesson you’ve learned throughout your hospitality career?

Discover your passions, thrive in what you do, and never forget the impact you have in creating memorable moments for guests and the people you work with.

As one of Marriott’s youngest female GMs in Australia, what advice would you give to other women who are striving for a position like this?

The advice I’d give anyone (regardless of gender) who wants to succeed in the local and international hotel industry is to follow Mr Marriott’s guiding principle: Put people first. If we take care of our people, they will take care of customers, and the customers will come back. It’s very simple, sage advice.

It would be fantastic to see more female representation at executive level in the hotel and hospitality industry. n 66

HM The Business of Accommodation

Apartment hotel company The Veriu Group has appointed Michael Herman as its new Director of Development as the company readies for a strong growth period.

Herman, a chartered accountant, joins from the Toga Group and TFE Hotels where he started out as Financial Controller and Head of IT. Christie Haworth has been named Director of Sales for The Langham, Gold Coast and Jewel Residences managed by Langham.

Haworth joins from Sheraton Grand Mirage Resort Gold Coast and will be responsible for leading the hotel Sales team across all market segments, domestically and internationally.

She previously held a pivotal sales role at The Star Entertainment Group, Gold Coast.

Pro-invest Group has welcomed Fraser McKenzie to the role of Area General Manager, New Zealand. Originally from Auckland, McKenzie spent seven years working in Southeast Asia and Japan with Accor including as Area Manager Midscale and Economy Hotels in Thailand.

He will oversee voco Auckland City Centre and Holiday Inn Express Auckland City Centre as well as the brand’s growing portfolio in the region which includes Holiday Inn Express and Suites Queenstown.

Salter Brothers has appointed Raphael Antonini to the role of Senior Manager – Special Projects, Antonini brings over 15 years’ international experience in hotel branding, hotel development and investments, hospitality consulting and revenue management, and speaks four languages.

Sudima Queenstown Five Mile hotel has welcomed hospitality leader Ali Appelman to the role of Hotel Manager.

Appelman has worked in various hospitality roles across New Zealand and the United Kingdom, including, most recently, as General Manager and Area General Manager for JUCY Snooze Queenstown and Christchurch.

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