HM February 2020 by The Intermedia Group

IN THIS ISSUE

INDUSTRY DIGS DEEP FOR BUSHFIRE RELIEF NEW HOTEL BRANDS TO SHAKE-UP THE AUSTRALIAN SCENE

THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC

HM CHATS TO NZ OWNERS ASSOCIATION EXECUTIVE DIRECTOR, AMY ROBENS

Vol.24 No.1 Bi-monthly February 2020

Biggest Industry Leaders Forum ever! A new decade brings renewed insights and focus on the path ahead for the world’s leading hoteliers

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CONTENTS

February

2020

Vol. 24 No.1

32 HM INDUSTRY LEADERS FORUM 2020 It's back and bigger than ever in 2020. HM's annual Industry Leaders Forum has once again scoured the globe, sourcing thoughts, predictions and views on the year ahead from decisionmakers at global, regional and local levels.

34 GLOBAL LEADERS

The 2020 HM Industry Leaders Forum features candid and insightful first–hand comments from nearly 60 C–Suite leaders, owners, tourism associations and suppliers.

46 TOURISM ASSOCIATIONS

It’s a tumultuous time for Australian tourism and our industry leaders band together for a chorus on why it has never been a better time to see Australia.

58 ASIA PACIFIC LEADERS

The biggest names in the wider Asia Pacific share their thoughts on development, loyalty, brand expansion and the region’s hottest markets for the year ahead.

64 LEADING SUPPLIERS

HM has sourced the opinions of more than a dozen key suppliers in their field, all working to help your hotel stay on top of the game.

80 AUSTRALASIAN LEADERS

The industry has never been more united on domestic issues such as bushfire recovery and issues such as homelessness. Hear from your local leaders on issues affecting your business.

Silkari has expanded its portfolio into Tropical North Queensland

HM Q&A

16 INTERVIEW WITH AMY ROBENS

The formation of the NZ Hotel Owners Association came about to protect the interests of the country’s ownership pool as new challenges on the horizon begin to develop. HM discusses these and more with the Association’s Executive Director, Amy Robens.

Regulars

06 EDITOR’S LETTER

James Wilkinson on a challenging 2020 ahead.

08 N EED TO KNOW

On the cover

TFE Hotels CEO, Antony Ritch, with The Calile owners Catherine and Cal Malouf from CMI.

The 22 essential stories you need to know this month – spanning operations, development and tourism industry news.

22 COVER STORY

Presented this month by TFE Hotels. hotelmanagement.com.au 5

EDITOR’S LETTER

Challenging start to the new decade

Managing Director

Simon Grover

s we head into the new decade, it has been clear very quickly that it won’t be smooth sailing for the hotel industry in Australasia. Already reeling by falls in RevPAR over the past 12 months in many key markets in the region, the industry faced further headwinds from devastating bushfires right across Australia and the ongoing Coronavirus spread across the planet. As this issue of HM went to press, travel from or through China by non–citizens and permanent residents of Australia and New Zealand was banned by both nations. And at the time of publication, there were around 20,000 reported cases of the virus worldwide. When we produce the annual Industry Leaders Forum Edition of HM magazine – as we have done each year since we created the concept in 2002 – we ask global, regional and local leaders to give us their expectations for the year ahead. We provided a deadline of late December for the industry executives and the columns you’ll find in this edition are expectations of the year ahead without the discussion of the Coronavirus and the implications of the deadly disease. We continue to report and monitor it on a daily basis on our website (hotelmanagement.com.au) and at this stage it remains highly unpredictable what the impact entirely will be. What we do know is initial indications are showing that without the Chinese inbound tourism market – Australia’s largest – the cost to the economy could be around AUD$1 billion per month – affecting hotels, restaurants, tourist attractions, retail and many other businesses. In recent years, the exposure to the Chinese market has been massive and I applaud Tourism Australia – under the leadership of new Managing Director and former hotelier, Philippa Harrison – for targeting inbound marketing at the classic markets of England, the United States, Germany, Italy, France and others to promote visiting this amazing part of the world. For many years, there were many concerns about what would happen if the Chinese inbound market all of a sudden dried up, so it is important that bodies like Tourism Australia and Tourism New Zealand keep boosting the classic markets and help fill our hotels. I hope you find our 2020 Industry Leaders Forum informative and keep up with the latest industry news as it happens at hotelmanagement.com.au Yours in hospitality,

Publisher

James Wells

Editor–In–Chief

James Wilkinson jwilkinson@intermedia.com.au

Deputy Editor

Matt Lennon mlennon@intermedia.com.au

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

Contributing Writers

Thank you to all contributors featured in the HM Industry Leaders Forum for 2020

Production Manager Jacqui Cooper jacqui@intermedia.com.au

Subscription enquiries

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6 HM The Business of Accommodation

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

Exclusive: Maiden ‘Aiden’ confirmed for Sydney Lifestyle hotel will take pride of place in Darling Harbour

BWH HOTEL GROUP will bring another new brand to Australia, signing an agreement to debut its ‘Aiden’ brand in the form of a refurbished art–deco building on the western side of Sydney’s Darling Harbour. The eight–storey, 88–room Aiden by Best Western at Darling Harbour will be situated just across from the Pyrmont pedestrian bridge, near the Harbourside Shopping Centre and the Pyrmont Bridge Hotel. Guest facilities will include a ground–floor café, bar and retail store, while mobile check–in functionality will also be available. Developer iHHL said the hotel will include touches of Parisian hospitality with well– appointed rooms complete with media connectivity and dedicated workspaces. Aiden Hotels is one of two new boutique brands, joined by sister brand Sadie Hotels, launched in late 2018 by Best Western Hotels

and Resorts as part of a renewed push into the lifestyle, boutique and luxury markets. This was followed soon after by the acquisition of WorldHotels in early 2019. Aiden Darling Harbour is on track to be open to guests from late 2020. A room rendering of Aiden by Best Western Darling Harbour

8 HM The Business of Accommodation

BWH Hotel Group’s Graham Perry (right) signs for Aiden with Nicolas Chen from developer iHHL.

Voco Auckland will share premises with Holiday Inn Express

Active sustainability programs are already active in many Accor hotels

IHG switches EVEN for voco in Auckland INTERCONTINENTAL HOTELS GROUP will introduce its sustainable lifestyle brand, voco, into New Zealand for the first time via a newbuild hotel to debut in Auckland in 2021. The deal signed with developer Pro–invest will see voco take the place of the previously confirmed Even Hotel, announced in 2017. Voco Auckland City Centre will offer 200 rooms and will be dual–branded alongside a 294–room Holiday Inn Express in the same building. All voco brand hallmarks will be present in the newbuild development, including locally– sourced food, paperless reception services, an all–day restaurant, bar and fitness centre. Rooms will include water–efficient showers with refillable bathroom amenities, energy– saving lighting and user–friendly technology.

Single–use plastics checking out at Accor More than 200 million single–use items to be eliminated

Brand to make its debut in New Zealand

THINGS YOU NEED TO KNOW

THE NEXT MAJOR hotel operator has joined the plastics exodus, with Accor committing to remove all single–use items from its entire global hotel estate by the end of 2022. Aligning with global initiatives from the United Nations Environment Programme (UNEP) and the World Tourism Organisation, Accor has made the move in an effort to curb plastic pollution entering the world’s oceans as well as reducing its overall environmental impact. The company initiative builds on efforts made by both the company’s sustainability division – Planet 21 – and individual hotel programs which will continue to be supported. The move will see more than 200 million single–use plastics removed from production and circulation. Such items include plastic straws, cotton buds, coffee stirrers, cups, plastic bags for laundry or extra pillows, water bottles, all plastic packaging (for food, welcome products, etc), take–away dishes and tableware, gifts and welcome products (toiletries, slippers, pencils, etc) and keycards. By the project’s deadline at the end of 2022, sustainable alternatives will be sourced and implemented. Already, 94% of Accor’s hotel estate have eliminated single–use straws, cotton buds and stirrers. The remaining 6% will have completed the transition by the end of March. Further, nearly 90% of the global ibis hotel portfolio have migrated to refillable dispensers for bathroom amenities, with the remaining 10% in Latin America to join by the end of this year. Accor’s newest brand introduction, ‘Greet’, was designed to be plastic–free from its inception. Ten Greet hotels are in the pipeline to be opened in Europe by the end of 2020.

Holiday Inn ‘Open Lobby’ look bound for Australasia

Concept to feature in several new Australian Holiday Inn hotels SEVEN UPCOMING HOLIDAY Inn openings in Victoria, NSW and New Zealand over the next four years will feature the brand’s ‘Open Lobby’, marking the concept’s debut in Australasia. The new approach to lobby design sees a blending of the front desk, restaurant, bar, lounge area and business centre into one highly–flexible space. At the same time, an update of the overall design will see a more modern look adapted to suit consumer needs and each individual hotel’s character and surroundings. Open Lobby was first announced in 2012 and so far has been rolled out to nearly 140 locations across Europe. The concept will feature as the new standard in most new Holiday Inn hotels opening over the next three years in various parts of Greater Melbourne as well as Queenstown in New Zealand.

Holiday Inn Wembley, UK currently features the Open Lobby

hotelmanagement.com.au 9

THINGS YOU NEED TO KNOW 05

InterContinental Sydney approved for a $200 million facelift Grand Ballroom to be constructed above Transport House

MULPHA AUSTRALIA LIMITED – owner of InterContinental Sydney – has expressed delight at having received approval for its proposed AUD$203 million revamp of the 509–room hotel which will incorporate the roof above the adjacent Transport House. Approval was provided by the NSW Government Independent Planning Commission (IPC), which assessed the proposal despite it having received objections by the City of Sydney Council, which took issue

with impacts to heritage and visual design along with amenity issues. Drawing on the space available above the NSW Heritage–listed Transport House, Mulpha plans to develop an outward addition to InterContinental Sydney, within which it will develop new hotel rooms. Levels 10–12 would be converted into a new Grand Ballroom, directly above a new Wellness Centre. The impact will result in a decrease in the property’s room count from 509 to 492.

NSW

Transport House

The new Grand Ballroom will be capable of hosting cocktail events with a capacity of at least 900 people, or sit–down dinners for a minimum of 500. Higher up, alterations will be made to the roof of the hotel tower, which sits directly above the hotel’s Club Lounge on Level 32. Further alterations and upgrades will also be carried out on the Heritage–listed areas at lobby level.

Parkroyal unveils eco-conscious sub-brand

The new platform will be rolled out to Accor’s global estate

‘Parkroyal Collection’ to focus on hotels’ green credentials

Accor signs tech partnership with Sabre Corp Unified reservations and management platform to be developed TRAVEL INDUSTRY TECHNOLOGY company, Sabre Corporation, has signed a collaboration agreement with Accor which will see the development of a single Central Reservations and Property Management system to be rolled out to its entire worldwide estate. The system will be an evolution of Sabre’s existing SynXis Central Reservations system, onto which Accor will migrate its systems and processes to in the short term while the new platform is developed. Once fully built and tested, Accor will begin to roll out the customised system to its entire network of more than 5,000 hotels and residences in 110 countries. Once complete, the system will combine the functions of both reservations and property management platforms, empowering hotels to better manage both aspects of their operations. The partnership with Accor comes one day after Sabre signed a 10–year partnership with Google which will see Google Cloud adopted to help Sabre drive technical innovation and develop more cloud–based systems and services.

10 HM The Business of Accommodation

PAN PACIFIC HOTELS GROUP LIMITED will launch a new ‘Parkroyal Collection’ sub–brand devoted to sustainable hospitality which will run under its existing Parkroyal Hotels & Resorts label. The new brand will build further on the concept of a “hotel in a garden” of which brand hallmarks include solar–powered sky gardens, automatic light, rain and motion sensors, gravity–driven rain harvesting and nature–inspired materials. Brand ethos include eco–friendliness, sustainability and a sense of environmental responsibility as well as celebrating elements of green design and architecture. To kick off the new brand, Singapore’s Parkroyal on Pickering will be rebranded under the Parkroyal Collection label in order to further capitalise and promote these green features. Another hotel, currently operating as the 575–room Marina Mandarin, will join the group when it is rebranded as Parkroyal Collection Marina Bay. An artist rendering of the new Parkroyal Collection

THINGS YOU NEED TO KNOW

New TA campaign to help domestic industry recover Australians urged to ‘Holiday Here This Year’

Tuncurry and Forster are among many towns urging tourists to return and Tourism Australia’s campaign poster (right)

UNIVERSAL PRAISE HAS been directed at the Federal Government from numerous Australian tourism and accommodation advocacy bodies after the nation’s leaders unveiled an AUD$76 million recovery package for the sector, designed to encourage visitors into Australia’s regional sector. Labelled as the “biggest challenge in living memory” facing the industry, the funds will be directed at regional hotels, restaurants, pubs, cafes and local attractions designed to help them get back on their feet economically and provide cashflow support while respective areas recover. Federal Tourism Minister, Simon Birmingham, said the key message was that Australia was very much open for business and that it was important to get people back to visiting these areas as quickly as possible. Tourism Australia soon followed with its new ‘Holiday Here This Year’ campaign, which comes both in response to the bushfires and Tourism Australia’s amended focus which sees the organisation now promoting the nation’s tourism offerings to both domestic and international markets. All states and territories have pledged to support the campaign, with South Australia launching its own sub– campaign entitled ‘Book Them Out’, referring to its regional hotels, motels and caravan parks, which has resonated widely on social media.

hotelmanagement.com.au 11

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Marriott parachutes Moxy brand into Queenstown

Moxy Queen stow n is

THINGS YOU NEED TO KNOW

Marks the brand’s third signing in Australasia, with more to come

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in separate structures. The project is located in Frankton, adjacent to the airport and near the Kawarau Falls Scenic Reserve, close to the entrance of the Remarkables ski fields. Features within Moxy Queenstown will be brand hallmarks including the Moxy Bar, Kitchen and Pick–Ups ‘Grab and Go’ bar, which will be kept stocked with healthy and functional meals, snacks and drinks which can be charged to a room account. Guests can relax in the Moxy Library or socialise with other guests in the Moxy Living Room, while a fitness centre and self–serve laundry will also be on hand. Around 150sqm of meeting and event space will also be available.

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MARRIOTT INTERNATIONAL’S PLAYFUL Moxy lifestyle brand will expand to New Zealand after the company announced a newbuild standalone hotel will come to the South Island city of Queenstown. Now the company’s fastest–growing brand in Australasia, the announcement takes the Moxy pipeline in this region to three, following Melbourne South Yarra and Perth, both of which will open in 2021. Moxy Queenstown is scheduled to come a year later in 2022. The 176–room hotel will be part of a wider mixed–use project from owner and developer, Queenstown Central Limited, which will also feature speciality retail outlets and office space

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Next Story Group in the kitchen with MasterChef Who’s heading into the kitchen with Next?

Silkari expands managed network into Queensland New signing marks start of aggressive expansion strategy LUXURY APARTMENT BRAND Silkari has begun to implement an expansion strategy, announcing it has signed a management rights deal for its first resort in North Queensland. The 175–key resort will be rebranded as Silkari Lagoons Port Douglas, from its former guise as Oaks Lagoons, a brand part of Minor Hotel Group. Silkari is operated by property developer Visionary, which has walked away from two opportunities to expand its network in NSW, blaming the lost opportunities on 12 HM The Business of Accommodation

“government and regulatory red tape”. The signing of Silkari Lagoons takes the brand’s network into a second Australian state, building on its existing portfolio in the 212– suite Silkari Suites at Chatswood and a 245–key complex in Pagewood, both in Sydney. Located close to Four Mile Beach, Silkari Lagoons is a family resort around 50 minutes’ drive north of Cairns Airport. It features six lagoon–style swimming pools, many of which are directly linked to ground–floor rooms.

MASTERCHEF AUSTRALIA GUEST judge Christy Tania has been signed by Next Story Group to implement the rollout of its Food and Beverage strategy across all brands operating in Australia. A trained Ecole Nationale Superieure de La Patisserie pastry chef, Tania is the current owner and head chef at Melbourne’s GLACÉ Dessert Artisanal. In her work with Next Story Group across its Next, Sage and Ink brands, Tania will work on concept development, talent recruitment across the network and optimise food and beverage performance. This will include close liaison with hotel operations heads and General Managers across Asia–Pacific as the group prepares to open its upcoming properties in Next Melbourne and Kafnu St Marks in India.

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THINGS YOU NEED TO KNOW

New Zealand hotels hold steady on 2019 occupancy Industry performed well despite looming lull

NEW ZEALAND HAS reported mixed results in its full–year assessment of hotel occupancy, with the national average remaining at 79% for a second consecutive year, according to new data from Tourism Industry Aotearoa. The majority of regions surveyed by TIA each year saw occupancy levels either hold steady or record a slight improvement, with the best result being a 2% improvement in Central Park, which covers the Taupo, Hawke’s Bay and Gisborne area.

Auckland saw a 1% decrease to 82%, the city’s poorest result in five years, with a drop in air capacity leading to fewer air crew room nights being utilised. Three–star hotels were the only market segment posting growth among occupancy levels for the year. Roberts said the short–term outlook was relatively bleak, with no major events scheduled in New Zealand in 2020 before the country hosts the America’s Cup yacht event and the APEC Summit, both in 2021.

Auckland recorded its poorest result in five years

BWH Group signs new property for Signature label

A Deluxe City View room at Pullman Rotorua

Regional signing marks brand’s second in a year

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REGIONAL INVESTMENT FUND and hotel management firm, Mandala Asset Solutions, has migrated another of its properties to Best Western Hotels & Resorts, with Lincoln Downs Resort in Batemans Bay joining the company’s Signature Collection group. The property is a 34–room boutique resort nestled on a private lakefront in the NSW South Coast township. Recently renovated, the resort features a heated outdoor pool, tennis court, lakeside gazebo and Australian–cuisine eatery, Briars Restaurant. The resort has recently been affected by road closures resulting from bushfires in the area, however all facilities have remained unscathed. Lincoln Downs Resort becomes the second hotel within the Mandala stable to move under the Best Western brand portfolio in the past year, following the addition of Best Western Plus Ambassador Orange in 2019. BWH Hotels Group MD, Graham Perry, welcomed the addition of the property to the network. “Building scale remains a key strategic priority for Best Western within Australasia," he said.

ns an Re sor em t is loc d in Bat at e 14 HM The Business of Accommodation

Accor brings Pullman brand to Rotorua Marks city’s first five–star hotel opening

ACCOR HAS OPENED the first five–star hotel in New Zealand’s Bay of Plenty region in the form of the Pullman Rotorua, in response to rising visitor numbers to the destination famous for its geothermal geysers. The hotel features 130 rooms with views of the city and lake area. Facilities include all–day dining at Barrel and Co Bar and Grill, which features an open kitchen for locally–sourced produce. Guests can also utilise an additional bar area, fitness centre, executive lounge, boardroom and flexible conference facilities.

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THINGS YOU NEED TO KNOW NZHOA Executive Director, Amy Robens

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AMY ROBENS New Zealand’s hotel industry has weathered its fair share of challenges in recent years however these have led hotel owners in the country to band together to ensure their interests are protected. This month, MATT LENNON grabs 15 minutes with New Zealand Hotel Owners Association (NZHOA) Executive Director, Amy Robens.

What has been the reaction from the NZHOA on the NZ Productivity Commission’s decision not to endorse a bed tax proposal? The New Zealand Hotel Owners Association (NZHOA) is delighted with the NZ Productivity Commission’s decision to reject bed taxes. Hotel owners have long maintained that targeted rates and bed taxes are both unfair and disproportionate to the benefits they receive. The Commission rightly concluded that better use of existing tools and central government funds should be used to address tourism infrastructure funding.

What sort of lobbying went into this from NZHOA?

NZHOA was incorporated in August 2019 and the Commission’s draft report and submission timeframe happened before the Association’s formation. However, several of our members made well–considered submissions on the report including meeting the Productivity Commission panel to assist their understanding of the hotel sector’s dynamics.

How closely did NZHOA work with TIA on this issue?

As the NZHOA was incorporated prior to the Productivity Commission’s draft report, there was no involvement between the two organisations. TIA (Tourism Industry Aotearoa) did seek feedback from a wide variety of tourism businesses including some hotel members.

What is the position of NZHOA on matters such as tourism infrastructure and how local councils can pay for these?

NZHOA strongly believes that funding and financing growth infrastructure should not fall entirely on local councils or commercial 16 HM The Business of Accommodation

accommodation providers. Rather, it should be the responsibility of central government which predominantly benefits from the tourism industry. Ensuring our country is serviced by modern and competitive infrastructure is a NZ Inc problem requiring NZ Inc solutions. Tourism is the only foreign exchange–earning industry that generates revenue for central government in the form of GST and government needs to ensure that the investment is made to provide services and facilities to grow the industry and generate even higher returns.

What other objectives does NZHOA have now at the start of the organisation’s first full calendar year of operation?

NZHOA will continue its strong opposition to targeted rates and bed taxes and work with central and local government to ensure the critical issues affecting hotel owners across New Zealand are clearly understood. Our members are happy to pay their fair share of infrastructure investment but believe costs should be shared across the entire industry, given accommodation providers benefit from just 15% of the nationwide tourism spend. We are also focused on our nationwide membership drive and are receiving a very positive response from a wide range of hotel owners. We aim to be a conduit between hotel owners, local government associations and Central Government and will advocate on issues which will also assist in improving New Zealand’s overall productivity, such as alternative energy subsidies and incentives, development levies, construction costs, infrastructure investment, R&D and regulation of peer–to–peer enterprises such as Airbnb.

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THINGS YOU NEED TO KNOW 17

Insta standouts

NZ Productivity Commission drops proposed bed tax

Four global hotels you need to follow on Instagram

Decision marks a victory for Tourism Industry Aotearoa

01 Silkari Lagoons, Port Douglas

@silkarilagoons

02 Lancemore Hotels

@lancemorehotels

Commission reverses its position after successful lobbying

TOURISM INDUSTRY AOTEAROA says it is delighted the formerly proposed “bed tax” no longer has the support of the New Zealand Productivity Commission, according to the Local Government Funding and Financing report. In a reversal of its former position, the Productivity Commission changed its view to now align with TIA’s view that international visitors were already paying their way and that local councils should better use the resources already available to them to fund tourism infrastructure in their communities. The Commission’s report said councils had a wide range of funding options available to them including user–pays systems, rates and debt funding, as well as central government support which could be capitalised upon through better planning in areas where tourism is likely to be higher or more popular. In all, the report contained eight findings and four recommendations. The Commission also noted that standalone homes rented out through the sharing economy on platforms such as Airbnb should pay business rates or a proportion thereof if said home was operating as an accommodation business most of the year. Had the bed tax gone ahead, it would have been collected as part of hotel room rates and would have operated in tandem with New Zealand’s existing Visitor Levy which took effect last year and sees all arrivals pay NZD$35 per person as part of their airfare or cruise fare.

Tapestry Collection heading to Australasia Another new brand from Hilton to debut in Christchurch

03 Oberoi Hotels

@oberoihotels

04 Halifax Marriott

@halifaxmarriott 18 HM The Business of Accommodation

ANOTHER NEW BRAND from the Hilton family is on its way to Australasia, with the company announcing its sixth label in the region will be opened in Christchurch in the form of The Modern Christchurch, Tapestry Collection by Hilton. The upscale label, which launched in 2017, will join five other brands either currently operating or in the Australasian pipeline – Hilton Hotels & Resorts, Conrad Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton and Hilton Garden Inn – the latter debuting in the Melbourne suburb of Bundoora in 2021.

The planned Modern Christchurch, Tapestry Collection Located in central Christchurch, The Modern will offer guest rooms starting at 34 square metres, with Deluxe Suites at 45 square metres. Guest facilities will include a ground–floor restaurant and bar, fitness centre, on–site parking and will be decorated with large–scale prints created by artists from both the local area and other parts of New Zealand. The Modern Christchurch, Tapestry Collection by Hilton is on track to open in the third quarter of 2021.

THINGS YOU NEED TO KNOW 19

Quest rallies industry to help homeless

Initiative aims to use vacant buildings as temporary shelters

Women over 55 are the fastest growing homeless demographic

A PRIVATE SECTOR initiative to help decrease Australia’s rate of homelessness has received the backing of Quest Apartment Hotels, with the serviced apartment operator urging the rest of the industry to join the fight to increase availability of affordable short–term housing. The push is led by Housing All Australians (HAA), an organisation founded by former Frasers Property Australia General Manager, Robert Pradolin, who is working to mobilise support from the business community into repurposing vacant buildings into short–term housing. The organisation seeks to draw on under–utilised real estate and vacant buildings awaiting outcomes on council development applications which may take years to run their course by temporarily engaging them as short–term pop–up shelters and emergency housing. According to the Australian Bureau of Statistics from December 2019, the country’s homeless rate stood at more than 116,000 men and women who didn't have a roof over their heads at Christmas. Women aged 55 and over have been identified as the fastest–rising demographic experiencing homelessness. The wider problem is being exacerbated by low–income earners being unable to keep up with rising rental prices, according to a report from the Grattan Institute. Quest has agreed to support Housing All Australians both financially and by providing loose furniture items, while legal firms Norton Rose Fulbright and Chambers & Partners are providing pro bono legal and accounting advice. Housing All Australians was set up as a registered Australian charity in 2019 and has already established one pop–up shelter in Melbourne.

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THINGS YOU NEED TO KNOW 22

Hilton unveils new ‘approachable lifestyle’ brand

A rendering of the future Mercure Doncaster

Multiple deals across US signed for ‘Tempo by Hilton’

Mercure Doncaster to sit above local Bunnings

MORE THAN 30 confirmed agreements have been signed for ‘Tempo by Hilton’ – a new lifestyle hotel brand launched by Hilton – with 30 more in pre–development. Embedded with brand hallmarks including thoughtful design, efficient service and exciting lifestyle partnerships, Hilton says the new Tempo brand is aimed

Hotel will sit above double–storey warehouse= ACCOR WON’T HAVE far to go for supplies in one of its upcoming Mercure newbuilds, revealing a modification to an existing development in the Melbourne suburb of Doncaster will see one of its hotels built atop a new Bunnings Warehouse hardware store. The AUD$70 million hotel, a partnership with the Accord Property Group, was previously announced as part of a regional expansion strategy for the brand with new Mercure–branded properties to open in Canberra, Gold Coast, Bendigo and Auckland. Mercure Doncaster, on track to open in late–2021, will be a 183–room property closely located to the area’s local Westfield shopping centre. Guest facilities will include a restaurant and bar with outdoor dining area, fitness centre, sundeck, rooftop swimming pool and function space. Originally, the DA called for a mixed–use development with the hotel featuring among 100 residential apartments. However, the amended plan to incorporate a Bunnings Warehouse below the hotel was submitted and approved last year by the local council.

at “modern achievers” who seek a highly ambitious hotel experience in line with what travellers expect of a 21st century brand. Rooms will feature immersive experiences for guests to indulge at each end of their day, with ‘Power Up’ and ‘Power Down’ routines to assist in morning and bedtime rituals. A ‘Get Ready Zone’ will feature in each guest room, along with an oversized bath with inbuilt Bluetooth speakers to help guests recharge. Hotels will offer inspiring and evocative art collections designed to capture a guest’s attention and invite them to take a moment for themselves to indulge and break the daily grind. Facilities will include flexible meeting spaces, a fitness centre and collaboration zones. A grab–and–go ‘Fuel Bar’, complimentary coffee and tea bar and café serving healthy options will feature in the lobby alongside a craft bar serving small plates and creative cocktails. No set opening date or location for the first Tempo by Hilton has been advised.

Choice Hotels Asia–Pac expands Asian remit Melbourne office to oversee new Asian markets

20 HM The Business of Accommodation

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and builds further on a management agreement signed with Thailand–based Krest

Hospitality, which will see a Quality–branded hotel open in Phuket in 2020. Following the assumption of the expanded responsibility, Choice Hotels will continue to be based in Melbourne.

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NATIONAL OPERATIONS OF Choice Hotels’ International’s presence in India will now be managed by the company’s Australia–based subsidiary, Choice Hotels Asia–Pac, as part of an expansion of its regional responsibilities, the company has announced. In addition to taking control of the Indian portfolio, which currently comprises 32 hotels, Choice Hotels Asia–Pac will take a major role in providing support to the group’s master franchise operations in Japan and China. The Japanese market is currently made up of over 50 hotels with a current pipeline of 15 to come, while China presently offers eight hotels. The move saw the Choice Hotels Asia–Pac network grow overnight by 50% to more than 300 hotels

t ea ur

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by Hilton prop ert ies

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sealy.com.au/commercial Sealy of Australia has manufacturing centres in Brisbane, Sydney, Melbourne, Adelaide and Perth. *Used under license from the Trademark proprietor by MADAD Pty Ltd trading as Sealy of Australia. ABN 57 009 678 344.

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HM x TFE HOTELS PROMOTION

TFE’S ROARING TFE Hotels CEO, Antony Ritch, and the team at The Calile.

There isn’t a brand in the TFE Hotels family not growing or transforming in some form. Whether local or international, the company’s long–term focus is bringing the future of hotels forward and faster than ever.

ccording to CEO Antony Ritch, TFE Hotels is primed to bring the best of Australian and New Zealand hospitality to the world’s stage in the coming years. In 2019, the Sydney–based hotel management company entered a period of transformative growth, announcing 26 hotels in its development pipeline. Late last year, TFE said that in addition to its growing business in Germany, it would launch flagship Adina Hotels in Vienna, Austria and Geneva, Switzerland, as well as a new brand into the Australian market. According to Ritch, this will be a time when TFE’s stable of brands (Adina Hotels, Vibe Hotels, Travelodge Hotels, Rendezvous and TFE Hotels Collection) will reinvent themselves. “2020 is an exciting time to be part of the TFE Team,” he said. 22 HM The Business of Accommodation

“As we grow – TFE is opening nine new hotels in Australia and New Zealand in 2020 and a further two in Europe – there are going to be many opportunities for owners and developers to partner with us, and for our current and new team members to be part of this incredible journey.”

ELEVATING THE GUEST EXPERIENCE

As travel and hospitality continue to evolve globally, 2020 and beyond marks a new direction for TFE Hotels in terms of product delivery, with a focus on contemporary Australian and New Zealand design, and on expanding the guest experience. In 2019, Australia’s first urban resort, The Calile Hotel became one of Australia’s most awarded new hotels. The Brisbane property won the prestigious HICAP Development of the Year; The Urban Developer’s Hotel and Accommodation Development of the Year; HM Award for New Hotel of the Year and Best Luxury Accommodation at the Queensland Tourism Awards. These awards are testimony to the vision and foresight of Calile Malouf Investments (owners and developers of The Calile) who together with Richards & Spence Architects created a hotel that is stunningly beautiful in its simplicity, and a brand and experience that

COVER STORY

has been embraced by its guests. The Malouf family set the benchmark high and the challenge to TFE was to bring their creation to life through elevated service levels and a commitment to delivering sophisticated resort–style hospitality in an urban setting. “We are immensely proud that together with all our owners and investors, we’re continually adding showpiece properties and elevating our brands from places to sleep to experiences where you are fully immersed in the local neighbourhood,” Ritch added. Ritch says the TFE Hotels Collection – which has led the charge in experienced–based destinations in recent times – was created and designed for owners who had unique assets and want to stay close and involved in their operations. Collection properties include some of Australia’s most historic locations such as Hotel Kurrajong in Canberra and The Savoy on Little Collins in Melbourne, both thoughtfully restored to their former glory, as well as modern boutiques like the Gambaro Hotel with its award– winning Gambaro Seafood Restaurant on the fringe of Brisbane’s CBD. New Zealand will get its first TFE Collection Hotel in mid–2020 with one of the country’s most anticipated openings – The Hotel Britomart. New Zealand’s first Five Green Star hotel features integrated lobby, dining and laneway experiences in the heart of Auckland’s iconic Britomart precinct. “With Collection properties, we will continue to introduce hotels that have a distinct story to tell and localised experiences that offer bespoke service and attention to the individual,” Ritch said. “Developed by New Zealand–based Cooper and Company, The Hotel Britomart has been designed with sustainability and location in mind and guests will delight in the attention to detail and experience in this thoughtfully curated destination."

THE EVOLUTION OF BRANDS

In recent years, TFE Hotels has invested extensively in evolving the experience, liveability and design of its Adina Hotels which, according to Antony Ritch, is a brand trusted by guests and investors alike. Fourteen new Adina Hotels are in the current pipeline, including eight in Europe where the brand first launched in 2006.

TFE Bushfire Appeal At TFE, we are heartbroken to see the devastation caused by this summer of bushfires. To help with relief and recovery, we have organised a national coordination effort for our corporate and hotel initiatives to ensure we bring meaningful benefit to those in need – https://www.redcross.org.au/tfehotels

“Adina embodies the modern traveller’s desire for casual living,” he said. “With the growth in our pipeline, an extensive refurbishment program for existing properties, and launches of stunning design–led hotels like the Adina Apartment Hotel Brisbane (which opened mid–November 2019) – it’s fair to say we’re extremely excited about this next stage.” TFE Hotels sees Vibe as a brand that embodies the ‘Australian Lifestyle’. Following the successful opening of Vibe Darling Harbour – which brought Sydney’s Vibes to four, each with a rooftop pool – Next– Generation Vibe Hotels will open in Melbourne, Hobart and Adelaide within the next two years. “Vibe is a homegrown brand and a true blend of Australian contemporary design and hospitality,” Ritch said. TFE Hotels’ midscale offering, Travelodge Hotels, has long been part of our tourism landscape and TFE is excited to grow that legacy. The company will throw open the doors to its new–look Travelodge Hotel Wynyard Quarter in Auckland later this year, followed by two more in quick succession – Hurstville (Sydney) and Adelaide. “When we talk about relaunching Travelodge, we are introducing a more contemporary style and experiences,” Ritch said. This widespread reinvention of brands also includes Rendezvous which first launched in Singapore. “Rendezvous’ relaunch has commenced in Asia, where they’ve blended classic hospitality with art–inspired interiors that reflect the romance of their destinations,” he said. “We are thrilled to continue this evolution in Australia. “With new experiences, new brands and new destinations, there’s never been a more exciting time to join TFE Hotels,” Ritch concluded. n

There are going to be many opportunities for owners and developers to partner with us, and for our current and new team members to be part of this incredible journey. TFE Hotels CEO, Antony Ritch

Vib e Hotel Adelaide

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The Hotel Britomart, Auckland

hotelmanagement.com.au 23

PRESENTS

Accommodation Association strengthens leadership position 2020 marks the continuation of a period of considerable growth for the association, as we build on our vision to be the leading industry representative body reflecting the scope and diversity of Australia’s accommodation sector.

IN 2019, THERE were a number of significant changes to the organisation. We saw the National Board representation strengthen to include Heidi Kunkel, Vice President Operations Australasia, Hilton Hotels and Resorts and Leanne Harwood, Managing Director Australasia and Japan, InterContinental Hotels Group. They joined senior leaders from many of the largest accommodation operators in Australia inclusive of Accor, Choice, Lancemore Group, TFE and Wyndham, driving a single–minded commitment to becoming the dominant advocacy voice for accommodation. With this growth has come a broadening of our membership base to encompass a wide range of product including holiday parks, motels, serviced apartments and hotels. Supporting this growth has seen the appointment of new CEO, Dean Long and an expanded team to drive more innovation and results driven outcomes for the industry. Following our AGM in November, Julian Clark was re–elected as President and Simon McGrath as Vice President for the next twelve months. We also welcome Damian Quayle, the COO of The Star Entertainment Group.

Lancemore Group President, Julian Clark

Accor Pacific Chief Operating Officer, Simon McGrath

The Star Entertainment Limited COO, Damian Quayle

AAoA welcomes bushfire response package

Government’s tourism recovery package widely praised The Accommodation Association has welcomed the Prime Minister and Tourism Minister’s joint announcement of a $76 million Tourism package in response to the bushfire crisis. “It provides recognition of the resilience of our communities and people and encourages global and domestic visitors to experience the fantastic destinations Australia offers.,” said

CEO, Dean Long. “Importantly this funding will instill confidence and provide the tourism and accommodation industry with a platform to invite visitors back to Australia, its capital cities and regions. “Our members will be ready with a suite of packages and offers that maximise the opportunities of this funding to invite visitors to experience the range of high quality destinations that are open for business,” Long added.

24 HM The Business of Accommodation

New look for AAoA AAoA’s new logo aims to reflect the organisation’s evolving focus

TO REFLECT THE evolution of the organisation and the broader membership base, the Accommodation Association launched a new brand. This brand is underpinned by our core values – Knowledgeable; Influential; Helpful and Outcomes–driven. The Association will continue to evolve in 2020 to provide members with an increased range of benefits inclusive of strengthened advocacy, market insight reports, communications and events together with industrial relations.

Market8 Reports Launched

New data set designed to help steer capital city performance IN 2020, THE Association will be launching the Market8 Reports in Sydney, Melbourne and Brisbane. These monthly reports will provide timely data and insights on the above capital city markets around Australia. They cover the performance of each market and the supply pipeline with information and commentary on the factors that are impacting the market inclusive of major events, economic indicators and infrastructure changes.

KEY NEWS Justin Hanney from City of Melbourne meets with AAoA delegates

Events Roundup EXECUTIVE LUNCH WITH CITY OF MELBOURNE

Pan Pacific Melbourne hosted an Accommodation Association executive lunch with special guest Justin Hanney, City of Melbourne CEO, with 20 members attending to hear about and to get involved with the city’s marketing programs. Hoteliers valued the opportunity to hear the city’s vision and to discuss current challenges and opportunities to continue to grow the vibrant visitor economy for Melbourne.

EXECUTIVE LUNCH WITH THE HON. KATE JONES MP

David Hodgett MP (centre) at the Accommodation Association Executive Lunch in Victoria

CEO Dean Long and The Queensland State Advisory Board recently hosted Kate Jones MP – Minister for Innovation, Tourism Industry Development and Minister for Cross River Rail to a working lunch at Salt Meat and Cheese in Mantra South Bank. Attendees enjoyed a lively lunch discussion surrounding several issues facing the Accommodation Sector in QLD. At the top of the list of course was Short Term Accommodation. The group of General Managers in attendance were keen to know when some movement would take place and for the government to introduce legislation. We are pleased to say that following the lunch, Minister Jones organised a meeting of the key people involved to determine a way forward. More to come after a follow up meeting to take place at the end of January.

EXECUTIVE LUNCH WITH DAVID HODGETT MP

The RACV City Club was the perfect setting for the December 2019 Accommodation Association Executive Lunch with our guest, David Hodgett MP, State Member for Croydon and Shadow Minister for Sport, Tourism & Major Events. Victorian Accommodation Association members enjoyed the robust discussion with the Shadow Minister, discussing the opportunities and challenges facing accommodation operators in Victoria.

Lunch with Victorian Shadow Minister, David Hodgett MP, proved highly valuable

GOLD COAST AND MELBOURNE CHRISTMAS DRINKS

In Melbourne recently, the Accommodation Association and over 30 TFE team members enjoyed Christmas drinks to celebrate people and success of helping the youth of Australia find long term careers in our sector. On the Gold Coast, we celebrated at the recently opened Hyde Paradiso at Peppers Soul. Over 50 members attended the drinks, hearing from the QLD State Advisory Board Chair, Mark Hodge and Accommodation Association CEO, Dean Long.

L–R Back Row: Craig Barber, Alex Perry Hotel; Alison Smith, The Star Entertainment Group; Dean Long, AAoA; Front Row: Laura Younger, ATHOC; Minister Kate Jones and Mark Hodge, Accor hotelmanagement.com.au 25

HM x ACCOR PROMOTION

A matter of The push for constitutional recognition of Indigenous Australians is a matter close to the heart for Accor in the Pacific.

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As passionate leaders committed to spreading awareness and understanding of Australia’s rich Indigenous heritage and culture, Accor has made a public commitment in support of the ‘Uluru Statement from the Heart’.

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ccor invites millions of guests into its hotels and resorts each year, and fundamentally believe it is essential to tourism in this country that we, as a nation, come together and bridge the gap between Indigenous and other Australians – for visitors to appreciate and fully enjoy the best of the Australian culture, history, landscape and native environment. In December, Accor invited the wider tourism industry to join a growing number of corporate organisations that want to see all Australians – Indigenous and otherwise – move forward together, and come along on the journey. In this exclusive interview, HM sits down with Accor’s Chief Operating Officer – Pacific, Simon McGrath AM for his candid thoughts on the initiative.

ACCOR NEWS

Congratulations for taking the lead on Accor’s commitment to delve deeper into this important national topic. For readers unaware, can you tell us what is the ‘Uluru Statement from the Heart?’

The Uluru Statement calls for an Indigenous ‘Voice to Parliament.’ We support this call for Indigenous people to have a say in their own affairs. We want to see an end to laws and policies that are made on behalf of Indigenous communities without their input. Without Indigenous input, as a nation, we will continue to fail to close the gap between Indigenous and other Australians. When we as a nation have reached agreements with our First Nations people, we will be on the right path to becoming a mature nation, reconciled with our history in Makarrata. This is not about politics. It is about our national character, and at the core of that national character is our Constitution. This document has served Australia very well, but we are alone in modern democracies in that our foundational document does not acknowledge our First Nations people. The Uluru Statement is about real fairness, real reform, although its genius is that it asks for reform in a way that upholds the values of our democracy.

Why is Accor showing its support and asking the industry to join in?

It’s critical that the best of Australia represents our full history and our respect and pride in all Aboriginal and Torres Strait Islander peoples. Our country’s rich history is welcomed by our guests and we are proud to

share the story. Accor's commitment to the Uluru Statement is just one step that creates further awareness for Indigenous Australians' desire to be heard, and the tourism industry has such a huge opportunity to put this under the spotlight and give visibility to this.

How can the industry get involved and show its support also?

I’d encourage the wider tourism industry to educate themselves and read the full ‘Uluru Statement from the Heart’ and think about how they can best educate their staff and guests/clients. For more information, visit www.1voiceuluru.org/the–statement. The statement itself is 12 paragraphs long and has been noted for its succinct and powerful wording. Unlike historic documents of Indigenous aspirations that came before it and were addressed to the Parliament, the ‘Uluru Statement from the Heart’ is directed to the Australian public. In order to complete the Constitution, we must have a referendum. Each Australian must cast their vote to enact these reforms. To say ‘yes’ is not merely a vote to support Indigenous people by giving them a say in their own affairs. Nor is it merely a vote to rectify the historical mistake of not recognising them in the Constitution. To say ‘yes’ is a vote to move forward, together, so that we might ‘come together after a struggle’. Over the past five years, Accor in the Pacific region has employed over 1,500 Indigenous Australians, which now make up 3% of our workforce nationally. As a company, we are committed to spreading awareness and understanding of Australia’s rich Indigenous heritage and culture through engaging the local community and guests in meaningful conversations and activities. n

“This is not about politics. It is about our national character.” Simon McGrath, Accor Chief Operating Officer, Pacific

Lowana Gibson, Assistant Manager, Pullman Sydney Olympic Park

hotelmanagement.com.au 27

PRESENTS

TAA and AHA secure another victory Decision means no major changes to salary exemptions in Hospitality Award.

Fair Work Commission decision provides certainty for employers representation for Australia’s accommodation and hospitality industry – efforts which are delivering significant and tangible results, as evidenced again by this decision. “Importantly, the outcomes we are achieving allow our members and the industry more broadly to grow, create more jobs for Australians and continue to deliver a world–class service to guests. “I particularly commend the efforts of the TAA and AHA National Director of Legal and Industrial Affairs, Phillip Ryan, who led the advocacy efforts in the Commission.”

FAIR WORK COMMISSION AT TAA BRIEFING

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Michael Johnson at the opening of Sydney’s new Light Rail.

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TAA catches up with the NSW Premier

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TAA NSW’s final Legal and Industrial Relations Briefing for 2019 saw dozens of General Managers and senior staff from across the accommodation sector come together. The gathering was addressed by Deputy President Sams and Deputy President Cross of the Fair Work Commission, who also both took part in an informative Q&A session led by the AHA and TAA’s experienced Director of Legal and Industrial Affairs, Phillip Ryan.

NS W

TOURISM ACCOMMODATION AUSTRALIA (TAA) and the Australian Hotels Association (AHA) have secured another important win in the Fair Work Commission (FWC), following strong and longstanding advocacy efforts on behalf of Australia’s accommodation businesses. Australia’s industrial relations tribunal recently ruled that as part of its Four Yearly Review of Modern Awards, the senior managerial classification for hospitality workers will remain unchanged, with the preservation of the existing managerial exemption salary in the hospitality award. The AHA and TAA are the exclusive industrial organisations representing employers in the accommodation and hospitality industry which operate under the hospitality award. TAA CEO Michael Johnson said the outcome provides certainty for thousands of hotels and hospitality businesses across the country. “This decision was an important victory for Australia’s hotels and hospitality businesses and is the direct result of the Commission accepting the arguments the AHA and TAA put forward on behalf of the industry,” Mr Johnson said. “Whether in respect to political representation or advocacy efforts in the Fair Work Commission, TAA and AHA are providing unrivalled

TAA NSW and National CEO Michael Johnson caught up with NSW Premier Gladys Berejiklian at the launch of Sydney’s impressive new light rail network recently. He spoke to the Premier briefly about a range of tourism and accommodation issues. “As always I was impressed by her 28 HM The Business of Accommodation

knowledge of our industry and her grasp of detail,” Mr Johnson said. He said the new light rail network adds diversity to the visitor experience in Sydney. It is easily accessible from several TAA member venues including Hilton Sydney and the Four Seasons Hotel.

TAA CEO Michael Johnson was instrumental in coordinating the huge donation

WORLD OF TAA

Digging deep for bushfire relief NSW hotels donate $250,000 to support bushfire affected communities. TOURISM ACCOMMODATION AUSTRALIA NSW and the Australian Hotels Association NSW made a donation of $250,000 to support bushfire victims. TAA NSW and National CEO Michael Johnson said the quarter of a million dollar donation was made to the Vinnies Bushfire Appeal on behalf of members. “This donation was an initial step to help provide some immediate relief to victims of the terrible bushfires raging across NSW,” Mr Johnson said. “Pubs in regional areas are the hearts of their communities – especially in tough times like these. Hotels in fire devastated areas are already providing respite and relief – and have been since the fires started. “The tourism industry is of vital importance to regional NSW – operators are doing it tough in areas like the South Coast and Blue Mountains and we hope this donation will help regional areas get back on their feet that little bit sooner. “I encourage all in the hotel industry to support this worthwhile initiative and note the welcome contribution of hospitality groups which have already donated.” Mr Johnson praised hotels for their support of bushfire relief efforts, including Fullerton Hotels and Resorts, which recently donated $60,000 to the NSW Rural Fire Service and St Vinnies, and Hilton, which donated $50,000 to the Salvation Army.

The TAA NSW Advisory Board

Careers Expo planning underway Showpiece employment event set for August. The TAA NSW Advisory Board met recently at the Macquarie Street, Sydney headquarters for what TAA NSW and National CEO Michael Johnson described as a “successful meeting”. “We came together to plan the next Hotel Careers Expo – slated for August this year,” he said. “Another major topic of discussion was the upcoming hotel traineeships set to start in February. “A big thanks to everyone for their input and ideas.”

TAA National CEO, Michael Johnson with Deputy Prime Minister, Michael McCormack

Deputy PM joins Chamber of Commerce luncheon Recovery underway for fire–hit regional hotels. A WONDERFUL AFTERNOON was had at the final Australian Chamber of Commerce and Industry event of 2019. Many thanks to Paul Nicolaou and the team for hosting a celebratory Christmas Luncheon with the Deputy Prime Minister, the Hon Michael McCormack. It was a great opportunity for TAA NSW and National CEO Michael Johnson to speak candidly to the Deputy PM about the impact bushfires had had on accommodation hotels in regions such as the Blue Mountains, Shoalhaven and the Hunter Valley.

Bahram Sepahi, Four Seasons Hotel Sydney; Fazila Fahad, Ramada Sydney Cabramatta; Antony Page, Chairman TAA NSW; Richard Doyle, Staywell Holdings and Michael Johnson, TAA

A toast to the TAA NSW Board and our partners!

Capping off the year that was 2019 and setting the agenda for 2020. TAA NSW FINISHED off 2019 with a bang – hosting the inaugural Board and Partner Networking Event at The Langham, Sydney. Board members and official partners from across the sector attended the function. TAA NSW and National CEO Michael Johnson thanked the gathering for its ongoing support of Tourism Accommodation Australia. “There’s no doubt this well attended event was a great way to cap off our calendar for 2019,” he said. “I look forward to working closely with our TAA NSW Board and our partners throughout 2020 and beyond.” hotelmanagement.com.au 29

Pe rth Ge ne r al M anager , Dario Orsini

HM x DYSON PROMOTION

HAND-IN-HAND

Dyson products are known for their sleek and modern design as well as performance. When choosing products for The Ritz–Carlton, Perth, it was vital that this also be carried through to ensure our guest experience was enhanced. We spent many months sourcing and trying various brands to ensure that products would be able to handle high volume usage. Equally as important is the ease of use for our guests who are often time poor and require products that make simple every day activities easier. Every touch point in the hotel enhances the guest experience and therefore attention and time was dedicated to this to ensure it not only complemented but enhanced our experience.

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Can you share the background about how Dyson was chosen to be featured within the hotel?

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any of our guests would own Dyson products and therefore when they travel, they can be assured to be made to feel like they are in their own home. Dyson has assisted us to ensure that every aspect of our guest’s lives are met by adding enjoyment into everyday activities and that they have more time to enjoy themselves and feel better for it.

a –C it z R e Th

Q th

How has Dyson helped improve the guest experience within The Ritz–Carlton Perth?

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Ritz–Carlton and Dyson are brands with much erth overloo lton P in common, both striving for excellence ks t Car he – z cit it of the highest calibre. When Marriott R y’s e h International opened The Ritz– Carlton Perth in late 2019, only one luxury brand was in mind for its guest hair dryers. HM sits down with The Ritz–Carlton Perth General Manager, Dario Orsini, to discuss the impact Dyson has had on the hotel’s early success.

Do you plan on adding further Dyson products to the hotel in the future?

We would love to in the near future.

Would you recommend Dyson products to other hoteliers?

Yes, without a doubt.

What Dyson products will guests find around the hotel? The Dyson Supersonic hair dryers.

What synergies do Dyson and Ritz–Carlton have which made this a perfect partnership?

Dyson marries sleek design and functionality. The Ritz–Carlton Perth is a design led hotel that showcases the beauty of Perth and Western Australia and makes it a perfect partnership. The Dyson Supersonic hair dryers leave your hair smoother and healthier and is an experience in itself.

Can you tell us a bit about the qualifying or assessment criteria Dyson wants its partner hotels to align with?

Dyson as a brand has a promise much like certain hotel brands, therefore quality is an essential criterion as well as functionality. Many Dyson products are aspirational therefore alignment with a similar hotel brand would be ideal.

What areas of the hotel are Dyson products available and how are they featured or installed?

How do Dyson products elevate a hotel’s standing in the market that little bit more?

Have you received any comments from guests about the appearance of premium products such as Dyson within the hotel?

Perth chooses products to enhance our guest experience.

They are featured in all our suites including The Ritz–Carlton Suite, and The Ritz–Carlton Spa.

Our guests come to expect a premium product such as Dyson to be in the hotel. Many of them own Dyson products themselves and therefore have a certain attachment and expectation associated with a product from home. We provide this for them. 30 HM The Business of Accommodation

The addition of Dyson products in the hotel provide the guests with a sense of luxury. They can be guaranteed that everything they experience has been selected for its uncompromising quality. The Ritz–Carlton

Can you share some key information about how the hotel has been trading since it opened?

The Ritz–Carlton Perth features 205 spacious rooms and suites, including 18 suites and 1 Ritz–Carlton Suite. Plush Ritz–Carlton beds with crisp white linens, exemplary furnishings and fixtures, and

DYSON NEWS

spa–like comforts in the well–appointed bathrooms make these warm retreats to return to at the day’s end. We have welcomed hundreds of ladies and gentlemen at The Ritz– Carlton Perth, who strive for service excellence and bring exceptional experiences and memorable moments to our guests. The hotel has been performing well with leisure guests and events during the holiday season and we have had great interest well into 2020 for leisure and corporate guests as well as meetings and events.

What has been the reaction to the hotel from guests and what type of guest is attracted to the property?

We have had strong support and excitement from our guests since the hotel opened. The hotel attracts guests who are looking for enriched experiences, personalised service, and an immersion into the history and culture of Western Australia.

What are the main features that have helped the property differentiate itself in the Perth marketplace?

The Ritz–Carlton Perth’s conceptual design pays homage to the history, culture and natural beauty of Western Australia from the moment you enter. The hotel features 10,000 pieces of handpicked Kimberley sandstone that will transport you to the rich natural wonder of the Kimberley. The

lobby recreates the feeling of walking through a Karijini gorge, and the pink mirrored exterior glass is symbolic of Western Australian sunsets and pink Argyle diamonds. The unique positioning of the hotel on the water’s edge of Elizabeth Quay is an ideal destination for our guests to stay in with us and indulge in our resort–like leisure facilities. We welcome guests in from the promenade through our Hearth Restaurant and Lounge floor– to–ceiling windows and alfresco terrace overlooking the picturesque quay. Our rooftop bar, Songbird, enticing guests up with its ever– enchanting ambience and mesmerising sunset views; and The Ritz– Carlton Spa journey of relaxation and rejuvenation with our bespoke pampering rituals.

How would you describe the hotel to someone wanting to visit the property?

The Ritz–Carlton Perth evokes timeless luxury and the joy of discovery. Set within a stunning building on Elizabeth Quay, the 205 elegantly appointed guest rooms and suites overlook the river, skyline and urban parks with floor–to–ceiling windows offering pristine views. The beauty and bounty of Western Australia are celebrated through culinary experiences highlighting local ingredients, a river–view infinity pool and a luxury spa featuring bespoke treatments. n

For more information on Dyson products, contact Michael Hyde at aucommercial@dyson.com.

The Dyson Supersonic hair dryers leave your hair smoother and healthier and is an experience in itself. The Ritz–Carlton Perth General Manager, Dario Orsini

hotelmanagement.com.au 31

32â€ƒHM The Business of Accommodation

HM SPECIAL REPORT

INDUSTRY LEADERS FORUM

WELCOME TO THE 2020 HM INDUSTRY LEADERS FORUM. IN OUR BIGGEST EDITION EVER, WE'VE CANVASSED THE CANDID THOUGHTS OF DOZENS OF INDUSTRY MOVERS, SHAKERS, INFLUENCERS AND DECISION–MAKERS FROM AUSTRALASIA AND AROUND THE WORLD. WHAT WILL WE SEE IN 2020 AND BEYOND? READ ON TO FIND OUT.

hotelmanagement.com.au 33

GLOBAL LEADERS

Sébastien Bazin Chairman and CEO, Accor

As 2020 starts, I am delighted by how transformative 2019 was for Accor. WE SUCCESSFULLY LAUNCHED many initiatives around brands, design, luxury, food and beverage, co– working and guest loyalty, showcasing how what we call augmented hospitality – anticipating a customer’s every need – is becoming a reality. Two significant milestones were completing the disposal of our Polish hotel real estate assets, Orbis, and the sale and leaseback of the Mövenpick properties at the end of 2019. Accor has now become a fully asset–light group. Accor has never been so strong and innovative, both in its ability to create and distribute new brands, and to integrate new businesses. Extensive strategic investments in a wide variety of sectors around the world have strengthened our network, brand portfolio and service offerings. By multiplying touchpoints with guests through a network of around 5,000 hotels and 50 brands, Accor has been transformed from a hotel group into a holistic augmented hospitality ecosystem, with a variety of services to enhance members’ daily lives including entertainment, dining, wellness, sports, co–working, mobility and more. Accor unveiled its new loyalty program with the launch of ALL, Accor Live Limitless, in 2019. ALL turns augmented hospitality into tangible services and offers customers personalised and ‘money can’t buy’ experiences, turning hotels into places to live, work or play. Programme members will access a comprehensive range of offers, representing much more than just a night’s stay, combined with advantages negotiated with partners like credit card companies, mobility solutions providers, airlines and entertainment, with AEG, IMG and Paris Saint–Germain Football Club, to name a few. These partnerships, with some of the biggest names, are in line with our guests’ passions. They are designed

to increase the international visibility of our loyalty programme and brands, as well as augment the efficiency of our distribution networks. Seeking to increase guest

Present in 110 destinations, Accor is a leader in most geographies.

Sébastien Bazin, Accor

SNAPSHOT: ACCOR Number of hotels & rooms (Globally): 5,000 hotels, 710,000 rooms Number of hotels & rooms (Asia Pacific): 1,180 hotels; 220,000 rooms Number of hotels & rooms (Australia, New Zealand and South Pacific): 394 hotels; 53,000 rooms Number of employees (Globally / APAC / ANZSP): 300,000 globally; 118,000 APAC; 21,000 Pacific Year first hotel opened (Globally / APAC / ANZSP): 1967; 1982; 1990 Year the company was founded: 1967 Brands in the organisation: Raffles, Orient Express, Banyan Tree, Delano, Sofitel Legend, Fairmont, SLS, SO, Sofitel, The House of Originals, Rixos, One Fine Stay, Mantis, MGallery, 21C, Art Series, Mondrian, Pullman, Swissotel, Angsana, 25 hours, Hyde, Movenpick, Grand Mercure, Peppers, The Sebel, Mantra, Novotel, Mercure, Adagio, Mama Shelter, Tribe, Breakfree, Ibis, Ibis Styles, Ibis Budget, Jo&Joe, Hotel F1 Head office locations (Globally / APAC / ANZSP): Paris, Singapore, Sydney

34 HM The Business of Accommodation

engagement and interaction, these alliances will be a source of value for our brands, whose reputation and attractiveness will be enhanced, particularly among hotel owners, thereby further boosting the group’s fees, performance and profits in the long term. As loyalty points are exchanged for rewards within this ecosystem, Accor will improve its knowledge of our members’ preferred touchpoints and their purchasing behaviour so we can develop more targeted offers. Present in 110 destinations, Accor is a leader in most geographies. Thanks to strong development in all regions and segments (particularly luxury and premium), we have been consolidating our network to diversify offers and services, and thus respond to customer needs. Accor currently ranks as the leading hotel operator in Europe and Asia Pacific (excluding China), where it has the broadest footprint and is well–placed to capitalise on projections of strong growth in tourism. Hotel chain penetration is still low globally, amounting to 30% in Europe and Asia Pacific, 35% in the Middle East & Africa and 20% in South America. This means that growth potential in these markets is very high, given rising Chinese tourist numbers. Accor is the leader in eight of the top 20 destinations for Chinese travellers. With these positions, the group’s aim is to double the number of Chinese members in our loyalty programme by 2020 and triple the number of bookings from Chinese travellers outside China. International tourism is one of the most dynamic business sectors today, posting annual growth of 6% and representing more than 10% of worldwide GDP. However, the consequence of this rapid growth is that

tourism now accounts for some negative environmental impacts, such as global greenhouse gas emissions, depletion of local natural resources and increased pollution and thus represents one of the challenges encountered by the tourism and hotel industries. Hospitality is undergoing dramatic transformations. I am looking forward to seeing what the new year will bring!

W e st

is o ad Town M , Suites

With a potential downturn on the horizon, the industry is starting to experience declining RevPAR and we’re feeling the effects of overbuilding.

It’s important that the industry as a whole works together to make hospitality a more attractive long–term career choice. David Kong, BWH Hotel Group

THE HOTEL INDUSTRY is always a leading indicator of the economic landscape and 2019 brought the first signs of a softening economy for hospitality, especially in the midscale to upper–upscale segments. The supply and demand imbalance resulting from overbuilding will inevitably lead to a continued decline in RevPAR as we move into 2020. At BWH Hotel Group, we have seen less of a decline in RevPAR than the rest of the industry, but challenges continue to plague our market just like every other hotel company today. There’s no denying the two major challenges hotels are currently facing: OTAs and labour. OTA share of business is increasing each and every year, providing them with greater leverage and control. This year, we saw OTAs continuing to provide availability, rates and inventory (ARI) to tour operators and leisure travel agents, extending their reach in the leisure market. The OTAs have continued to expand in 2019 as they established a stronger foothold with travel management companies and operators (TMCs). As OTAs evolve, they are increasingly serving as the gateway for managed travel bookings, and often they are even providing revenue share arrangements to shift the GDS business their way. It is obvious the OTA share of business will continue to rise in 2020. Additionally, hospitality continues to be impacted by labour challenges. With such a low unemployment rate in most parts of the world, there is increased competition

SNAPSHOT: BWH HOTEL GROUP Number of hotels & rooms (Globally): 4,036 hotels and 373,693 rooms Number of hotels & rooms (Asia Pacific): 192 hotels and 47,494 rooms Number of hotels & rooms (Australia, New Zealand and South Pacific): 109 hotels and 6,311 rooms Number of employees (Globally / APAC / ANZSP): 300,000 globally; 118,000 APAC; 21,000 Pacific Year first hotel opened (Globally / APAC / ANZSP): 1967; 1982; 1990 Year the company was founded: 1946 Year first hotel opened (Globally): 1946 Year first hotel opened (APAC): 1975 Year first hotel opened (Australia, New Zealand and Pacific): 1993 Number of brands in the organisation: 17 (16 in Australia) Head office locations: Phoenix, Arizona; Bangkok, Thailand and Sydney, Australia

36 HM The Business of Accommodation

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Global President and CEO, BWH Hotel Group

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GLOBAL LEADERS

r, Th eT a ide s, Or bam ange Beach, Ala

for talent. Additionally, the hotel industry has not historically been considered an aspirational career choice for many of today’s workers. It’s important that the industry as a whole works together to make hospitality a more attractive long–term career choice. Some key ways to tackle the challenge include raising wages, innovative career pathing and making jobs more fulfilling. At BWH Hotel Group we continue to tackle this challenge with a multi–pronged approach including evolving our training to deliver the most intuitive and engaging learning opportunities for hotel staff from AR/VR avatar training to cultural immersion sessions for our boutique brands. These creative approaches to enhancing both the staff and guest experience, combined with our portfolio of options in every market segment, continues to make BWH Hotel Group a modern and relevant brand. Last year, BWH Hotel Group expanded to 17 brands across every market segment with the acquisition of upper– upscale and luxury hotel brand WorldHotels. With options ranging from economy to luxury, BWH Hotel Group has become much more appealing to leisure, business and group travellers and especially major companies and travel partners. Looking globally, we believe Asia continues to hold the biggest potential in the hospitality industry because of the vast population, improvements to income levels and industry growth. We believe that intra–region travel and international travel for business and leisure will continue to be strong across Asia. We’re also bullish about the economic growth of certain countries in Africa and the Middle East, which boast real potential for growth due to the low number of hotels. There is a limited supply but a tremendous demand resulting from the economic growth in these regions. Overall, we know that change and innovation are happening faster than ever, especially in the hospitality industry. I truly believe this is an exciting time to be in our industry. The challenge of increasing competition is forcing us to think creatively, take risks and evolve the industry in profound ways. Our business is becoming more complex and all of us are compelled to evolve. The industry is far more interesting than many give it credit. And now is the ideal time to build the next generation of hospitality leaders as we look ahead to a bright future for the industry.

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GLOBAL LEADERS

Keith Barr

Chief Executive Officer, InterContinental Hotels Group Having individual brands that stand for something and are real market differentiators is vital.

OUR EUROPE, MIDDLE East, Asia and Africa (EMEAA) region, which includes our business in Australasia, is such a diverse and dynamic region, not just in make–up of markets, but also in our owners, guests and colleagues. When it comes to our brand portfolio, it is important to ensure that IHG always remains more than just a collection of brands with our flag on the building. All of the work we do to evolve and grow is driven by keeping close to guest expectations and talking to our owners about their needs. Across EMEAA, we’ve seen a really strong signings and openings pace – last year we opened a series

of landmark resort properties for our InterContinental Hotels and Resorts brand including InterContinental Hayman Island in Australia, ANA InterContinental Beppu in Japan, InterContinental Maldives Maamunagau Resort and InterContinental Phuket Resort in Thailand. One of the newest additions Keith Barr, InterContinental Hotels Group to our brand portfolio, voco, has had some great early success. We’ve got two voco The Social House at hotels already open in Australia – on the Gold Coast voco Gold Coast and in the Hunter Valley – and we’ve got another three signed, including Sydney and Melbourne. Luxury is a very important area for us. It’s a USD$60 billion global segment with USD$35 billion growth potential to 2025 and one of our key priorities has been to build our luxury portfolio. Over the past 18 months, that’s exactly what we’ve done. We acquired Six Senses Hotels Resorts Spas, which sits at the top–end of our luxury portfolio and we’ve signed five new properties since, including properties in Iceland and Loire Valley. We’ve strengthened the offering of our established brands within luxury significantly in the past eighteen

There is real momentum within IHG right now – both with established brands and with new ones.

months. A number of our properties are also currently under or soon to enter refurbishment, demonstrating our owners’ long–term commitment to the brand. In 2016, we kicked off our plans to reinvent the Crowne Plaza brand in the Americas, with a USD$200 million investment in the estate. We did a lot of research into the most important things guests would expect to see from the Crowne Plaza estate, and they came back with WiFi connectivity, a great night’s sleep, service, food and beverage, and making first impressions count. We’re now expanding this roll–out to EMEAA and Greater China, and we recently announced we will be opening six flagship hotels in the US, Europe and China by early 2020 that will bear the new brand hallmarks, including new designs for public spaces and guestrooms inspired by the continued guest demand for flexible spaces. We announced at the end of July that our entire estate of nearly 856,000 guest rooms across more than 5,700 hotels will be switching to bulk–size bathroom amenities. I’ve been really happy with the huge amount of positive feedback we’ve had from customers and colleagues around this – it was one of those things I’d spoken to the team about and just wanted to get done. So, we were excited to be the first in our industry to announce it and we’re aiming to get there in 2021. I think we have an incredibly powerful portfolio of brands to be concentrating on now, but we will always keep listening to what our guests and owners tell us they want and assessing any potential gaps in our offering.

SNAPSHOT: INTERCONTINENTAL HOTELS GROUP

38 HM The Business of Accommodation

rC te In

Number of hotels & rooms (Globally): 5,795 hotels, 864,699 rooms Number of hotels & rooms (EMEAA): 1,103 hotels, 216,847 rooms Number of hotels & rooms (Australia, New Zealand and South Pacific): 51 hotels, 10,951 rooms Number of employees (Globally / ANZSP): 400,000+ / 6,000+ Year first hotel opened (Globally / ANZSP): Globally 1949 / Australia 1962 Year the company was founded: 1777 (Bass) Brands in the organisation: 16 Head office locations (Globally / ANZSP): Denham (UK) and Sydney

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GLOBAL LEADERS

The Langh am,

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Stefan Leser

Chief Executive Officer, Langham Hospitality Group I look forward to the group achieving some key milestones in 2020.

AT LANGHAM HOSPITALITY GROUP, we are optimistic and I look forward to the group achieving some key milestones in 2020. We will be opening The Langham, Jakarta – the group’s debut in Southeast Asia. I am personally very excited about our Jakarta hotel as this is one of the jewels in our portfolio. The 170–room hotel is located within the prestigious complex of District 8 at Sudirman Central Business District, a triple ‘A’ location and within close proximity to the city’s most important financial, cultural and entertainment centres. Indonesia is one of the most buoyant emerging markets and we look forward to showcasing the legendary hospitality and exciting F&B experiences which The Langham is well known for, in Jakarta. We look forward to unveiling The Langham, Boston after a re–positioning and one–year renovation of the former Federal Reserve Bank of Boston. I am confident this will become one of the most iconic luxury hotels in North America when we reopen it later this year. Over the last year, our focus has been to grow our portfolio in Europe as the region continues to be one of the most travelled and aspired destinations. We are pleased to have recently announced our expansion in Europe with The Langham Nymphenburg Residence, Munich, located within the stately 490–acre imperial estate of Nymphenburg Palace, 15 minutes from the Munich city centre. Scheduled to be opened this month, The Langham Nymphenburg Residence, Munich is steeped in royal Bavarian history. Guests will enjoy the privacy and exclusivity of this 18th century manor with a privileged location next to the Royal Nymphenburg Porcelain Manufactory, renowned for exquisite avant– garde and tailor–made designs for four centuries. This is a very special property for us – only one key, four bedrooms and extremely exclusive. We have also announced our foray into Venice. The Langham, Venice is scheduled to open in 2023 and we look forward to sharing more later this year on our growth and development in this region. In the Pacific, our hotels in Sydney and Melbourne continue to be on the best hotels lists of their respective

cities and nationwide. We are looking forward to increasing our footprint in Australia which will be a key focus for 2020. Over in Auckland, we are adding a new tower at Cordis, with an additional 250 rooms (making it 650 rooms and suites in total) which is scheduled to be completed by the end of this year. China continues to be a very important market. Not only from a growth and development perspective but also from a guest perspective. Chinese travellers will continue to grow steadily. Over in China, we are excited to be opening Cordis, Hangzhou, located opposite the Alibaba headquarters in Hangzhou and Langham Place, Changsha where our hotel is located in a huge entertainment centre complete with a water park. I believe the MICE segment will continue to be positive as it continues to be a critical driver of communications, growth and engagement for organisations. People will continue to travel for leisure and seeking extraordinary and authentic experiences. As people become more well– travelled and sophisticated, the challenge in the travel industry is to create personalised experiences and to a certain extent, inspiring experiences where people aspire to be and do (and of course capture it on social media). In the hospitality and travel industry, it is extremely important that we exercise EQ and intuition and make sure that every request is taken seriously, every experience is executed flawlessly and every guest engagement thoughtful and genuine.

Over the last year, our focus has been to grow our portfolio in Europe.

Stefan Leser, Langham Hospitality Group

SNAPSHOT: LANGHAM HOSPITALITY GROUP Number of hotels & rooms (Globally): 22 hotels and 8,688 rooms Number of hotels & rooms (Asia Pacific): 13 hotels and 4,593 rooms Number of hotels & rooms (Australia, New Zealand and South Pacific): 3 hotels and 897 rooms Number of employees (Globally): 8,109 Year the company was founded: 2004 Brands in the organisation: The Langham Hotels & Resorts, Cordis Hotels & Resorts and affiliate brands Chelsea Toronto Head office locations: Hong Kong

hotelmanagement.com.au 39

GLOBAL LEADERS

Darren Edmonstone Gen Z is now the largest group of consumers in the world.

Darren Edmonstone, Next Hotels & Resorts

SNAPSHOT: NEXT STORY GROUP Number of hotels and Kafnu properties (Globally): 31 Number of hotels and Kafnu properties (Asia Pacific): 31 Number of hotels and Kafnu properties (Australia, New Zealand and South Pacific): 21 Number of employees (Globally / APAC / ANZSP): 380 Year the company was founded: 2009 Brands in the organisation: Next, Sage, Ink, Chifley, Country Comfort and Kafnu Head office locations (Globally / APAC / ANZSP): Singapore, Sydney and Bengaluru

40 HM The Business of Accommodation

experience the ty is slower pace of th eb ran smaller cities and d’s fif th location micro escapes that make every precious day count. We see this at our Sage Hotel Wollongong, which has been hosting increasing numbers of time–pressed travellers who juggle work and family commitments and want to escape the hustle and bustle of their daily lives. These trends are great for destinations like Australia, which continues to be a key market for us. Despite the ongoing battle with the devastating bushfires, Australia remains a resilient market. Our teams are standing strong with the affected communities and we are optimistic about the future. Australia is where we have our largest portfolio of 21 properties, and we are continuing to explore ways to grow our brands there. In fact, we are preparing for the much–anticipated opening of our second Next hotel in September 2020. The 255–room Next Hotel Melbourne is a brand–defining property with a fantastic location at 80 Collins Street in the CBD. Next Hotels will be our third brand to be established in Melbourne after Sage Hotels and Ink Hotels. The Next Hotels brand is targeted at modern professionals seeking great design, efficiency and inspired experiences. In addition to experiencing Next’s smart and intuitive service, guests of Next Hotel Melbourne will also get a taste of our bold new Food & Beverage strategy. In 2020 and beyond, F&B will be a major focus area for us. We see it as much more than a convenient service to hotel guests. Food and Beverage is an opportunity to wow our guests with exciting and creative dining concepts. Increasingly, guests are paying more attention to their culinary itinerary, curating restaurant bookings and building their trips around destination dining. To cater to this growing appetite for gastronomic experiences, we are partnering with culinary leaders in varying destinations to develop innovative concepts which will engage our guests and attract locals. This year is going to be an exciting one for Next Story Group and it is full steam ahead for us. In the next 12 months, we are looking forward to the openings of Next Melbourne and Kafnu St Marks to add to our portfolio. We are also preparing to open Ink Singapore in 2021. Next Story Group is currently present in Australia, Hong Kong, India, Taiwan and Vietnam, and we have a very robust pipeline that will grow our footprint in more destinations across South East Asia, Australia, India, and beyond in the years to come. Ci

Despite the ongoing battle with the devastating bushfires, Australia remains a resilient market.

YEAR 2019 WAS full of exciting developments in the industry and it was a defining year for us at Next Story Group. It was the year Gen Z overtook Millennials in terms of sheer numbers and also the year we launched Ink Hotels – a brand designed for travellers with a Gen Z mindset. Gen Z is now the largest group of consumers in the world. Representing 32% of the world’s population, their preferences and decision–making habits are factors the hospitality industry will strive to take into account. On our part, we invested in brand development to ensure stronger differentiation and a deeper connection with our guests. Our investment is already paying off. Our very first Ink hotel – the newly launched Ink Hotel Melbourne Southbank – has garnered great feedback from guests, hotel owners and business partners. They love the local vibe, the connection with the local community and the unique stay experience. The guests want new experiences and they want to travel in a more sustainable and connected way. Ink Hotels delivers that by doing things differently and colouring outside the lines. It champions the local narrative and gives guests the opportunity to be environmentally and socially conscious, whilst offering good honest value too. Ink Hotels is also a brand suited to capital cities as well as secondary and emerging cities, a fact that works especially well for Next Story Group as we continue to grow our hotel brands in Asia Pacific, a region home to 75% of the world’s emerging destinations. With increased flight connectivity, affordable airfares and maturing tourism infrastructure in secondary cities, we are witnessing the rise of second city travellers and travellers who take twin city trips, using a big city as a base and exploring a smaller destination nearby. Our Sage Hotel Melbourne, Ringwood is a great example of this, where guests like to stay to give themselves the best of both worlds – access to Melbourne and proximity to different experiences in destinations such as the Yarra Valley, Geelong and the Great Ocean Road. More travellers are also opting for slow travel to

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GLOBAL LEADERS

STEPPING INTO A new decade, there’s certainly talk of headwinds for the hospitality industry as a result of traditional economic cycles and unique global challenges. Yet from where I sit at Outrigger’s Hawaii headquarters, the forecast is akin to our balmy weather – mostly sunny with an occasional storm. Despite minor dips in the economy, consumers worldwide will forever desire vacations that excite and inspire. Our hotels and resorts in Hawaii continue to see strong pre–bookings for 2020 as do our beachfront resorts in Fiji, Guam, Mauritius, Thailand and the I look forward to the group achieving some key milestones in 2020. Maldives. Apart from a major calamity, we predict that hotels and resorts catering to the leisure market will continue to enjoy record numbers this year ‘recommend’ score and rating, then see the correlation comber b if they provide distinctive, localised with RevPAR growth. B e a ch y i O k i utr aik ig experiences, invest in people and No matter how stunning our resorts, or how high–tech W g product and deploy appropriate our operations – if our people are not in the right roles, smart technology. feeling valued and supported, nothing else matters. We’re As a beach brand, our unique investing in company–wide training for professional local offerings and distinctive growth and use Talent Plus for recruiting and retention. touchpoints are often centered We’re also investing heavily in our properties – on the ocean – like coral $250 million is earmarked over the next three years planting in Maldives and Fiji for modernisation of our core Hawaii–owned assets as part of our global OZONE including the revitalisation of our flagship Outrigger conservation initiative. Reef Waikiki Beach Resort. Many hospitality companies We partnered with Discovery are putting hundreds of millions into this tropical to be Outrigger’s loyalty program destination, illustrating that financiers are still bullish on because it rewards guests with local Hawaii being a great investment. experience awards and authentic activities to Outrigger Fiji Beach Resort’s modernisation will also connect guests with the culture of each destination. begin in 2020. Castaway Island, Fiji is in planning stages The Discovery program has more than 35 hotel and there are a number of other physical enhancements brands and 570 hotels in 78 countries, hitting a scale that scheduled for our other APAC properties. Sustainable Consumers Outrigger couldn’t reach independently and genuinely solutions for reducing plastic waste, water and electricity worldwide will are also incorporated into property elevations. benefiting our members. Being hyper–local is hardly new for the Outrigger brand – we’re now celebrating 25 Technology has evolved significantly, with forever desire years of ‘The Outrigger Way’ – a values–based process vacations that programs and platforms that make employees’ jobs developed by Hawaiian scholar, Dr George Kanahele, easier, streamline guest communication and help excite and which empowers our team to share their culture and care drive additional revenue. Smart tech is increasingly inspire. for guest, host and place. indispensable for sustained business success. Outrigger While creating our first lifestyle hotel – Waikiki freshly deployed USD$15 million on such technology Jeff Wagoner, Beachcomber by Outrigger – the $35 million makeover – including Sonifi and Zingle text–message concierge Outrigger Hospitality led to the Beachcomber Originals, which is an alongside tools like a new HRIS system with Workday, Group allegiance of extraordinary artisans who contributed new revenue management system with Duetto and a to the look, sound and taste of the new hotel and financial planning/reporting tool to be rolled out in 2020. established a one–of–a–kind journey of the senses Radical tech evolution in our industry will likely come for visitors. The results are powerful. We’re able to from a changing of the guard for distribution channels. quantify the corresponding business benefits through Companies like Expedia, Airbnb and Priceline have a Unifocus and Revinate – tools that measure the guest stronghold on distribution channels today, but there’s ample opportunity for Google and Amazon too. If Blockchain can move from fringe to mainstream, this too SNAPSHOT: OUTRIGGER HOSPITALITY GROUP could be transformative for hospitality companies. Number of hotels & rooms (Globally): 37 properties, approximately 6,700 rooms Our mission for 2020 and beyond is simple – to be the Number of employees (Globally): Approximately 3,700 premier beach resort brand in the world. We’re actively Year first hotel opened: 1947 (Hawaii) looking to grow the Outrigger brand in premier beach Year the company was founded: 1947 communities from Hawaii to Asia and Australia, among Brands in the organization: Outrigger Resorts, Hawaii Vacation Condos by others. A new strategic plan is keeping us accountable Outrigger, OHANA Hotels by Outrigger, Waikiki Beachcomber by Outrigger and we’re mindful that we can make a positive impact on Head office location: Hawaii, USA the lives of our guests and the world – which is exactly what we intend to do, one resort stay at a time.

Jeff Wagoner

Chief Executive Officer, Outrigger Hospitality Group

42 HM The Business of Accommodation

GLOBAL LEADERS

Girish Jhunjhnuwala Founder and CEO, Ovolo Group

After a challenging 2019, we are thrilled to enter a new year, and are positive about our outlook for 2020.

opportunities in the region. India is also another market I am keeping a close eye on. Personally, I would love to see an Ovolo in India. As the aviation market continues to grow, we are hopeful this will continue to advance the hotel industry as flights become more accessible for all travellers. At Ovolo, we have a cocktail mix of both business and leisure travellers and a thriving aviation industry will enable travellers from all over the world the opportunity to experience new destinations. In terms of development, while much of our focus this year will be on launching Bali, we are continuously working on potential opportunities that will allow us to bring Ovolo to new and exciting markets. I’m of the opinion that our growth needs to remain steady and laser– focused. We have a unique model and the minute we start expanding and acquiring new properties just for the sake of it, we lose all that makes Ovolo special. We continue to ensure we are selecting only the best properties in locations that will allow us to bring that special Ovolo touch to the market. While we were faced with challenges over the last 12 months, we have been working extremely hard behind the scenes to bring a new brand to life. One that will reflect the evolution of our hotels and our guests. I believe this new positioning is an ideal vehicle to drive Ovolo into the stratosphere and beyond. It will allow us to continue to expand, explore new types of properties, and I believe it effectively conveys to our customers what Ovolo is all about.

OVOLO HAS SOME exciting new developments coming to fruition, including the acquisition of our first hotel in Bali and a new hotel in Melbourne, both currently under development. Not to mention a new brand that will be unveiled sometime next month. To say 2020 won’t have its own set of challenges would be naive. We are aware the socio–political situation in Hong Kong will not dissolve overnight. We are also mindful of the fact the devastating bushfires in Australia may have a lingering effect on tourism for some time. Despite the ongoing challenges faced by the industry, Ovolo – equipped with responsiveness and unique offerings – will remain resilient. Our offerings not only make us resilient but they differentiate us from other disruptors in the industry. While they have been a hot topic for many years now, from my point of view we don’t see these ‘disruptors’ such as AirBnB as our direct competitors. In addition to our unique selling points such as inclusions, flexible booking policies and unique F&B offerings, part of Ovolo’s key advantage has always been the way we connect with our guests. ‘The Guest Experience’ has given shape to our brand, and spearheads our decision making. The AirBnB model, for example, Girish Jhunjhnuwala, Ovolo Group seems less personal. It certainly serves a need, but I don’t think we are necessarily going after the same target market. SNAPSHOT: OVOLO GROUP Emerging markets in China, India, Indonesia and Number of hotels & rooms (Globally): 10 hotels, 710 rooms many others continue to represent a huge opportunity Number of hotels & rooms (Asia Pacific): 4 hotels, 325 rooms for all hotel brands, and they are markets we are Number of hotels & rooms (Australia, New Zealand and South Pacific): considering. It is vital to make sure we serve a purpose 6 hotels, 385 rooms and that there is a need for us to be there. For example, Number of employees (Globally): 616 our recent acquisition in Bali made sense for us because Year first hotel opened (Globally): 2002 it’s a destination we know our current guests love to Year the company was founded: 2002 visit. We are also confident in our numbers, and that the Brands in the organisation: Mojo Nomad, Ovolo Hotels brand is a good fit for Bali. We are also very interested Head office locations (Globally / APAC / ANZSP): Hong Kong / Sydney in South East Asia as a whole, and continue to explore

We have been working extremely hard behind the scenes to bring a new brand to life.

hotelmanagement.com.au 43

GLOBAL LEADERS

Gavin Faull

Chairman and President, Swiss–Belhotel International Indonesia served up some of the biggest challenges that Swiss–Belhotel International confronted in 2019.

FIRST, THERE WERE the protests in Papua and Manokwari, the earthquakes in Banten, Ambon and Bali, and the national elections. More generally, competition from hotel industry alternatives like Airbnb, rising operational costs and hiring and retaining staff were key challenges that the hotel sector confronted in 2019. Swiss–Belhotel International ensures that the maintenance in our hotels is of the highest standard so as to better absorb the blow of natural disasters, while also ensuring that costs are managed efficiently. We do that

via policies that encourage utilising resources efficiently – manpower, energy consumption, food costs, etc. To counter competition from accommodation alternatives, Swiss– Belhotel International’s service is underpinned by our special brand of passion and professionalism. As for staff retention, we provide an avenue for both offline and online learning to ensure the continuous development of staff. This year promises to be another exciting 12 months for Swiss–Belhotel International, with our green initiatives front and centre. Our properties are undertaking different green initiatives pursuant to each property’s responsibility to the community and the environment. Swiss–Belhotel International is committed to environmental protection. We understand that we must respect the environment and astutely manage our impact on the environment, for the benefit of the communities where we have a presence. We implement sound environmental practices in the design, development and operation of our hotels, while providing training and resources for the implementation of such procedures. At the same time, we encourage the development and integration of sustainable technologies. We also

Swiss–Belhotel Brisbane

Swiss–Belresort Coronet Peak

endeavour to reduce waste and energy usage. When practical, we reuse and recycle resources consumed by our hotels. Swiss–Belhotel International is introducing a water–based, non–chemical cleaning process that will have a hugely positive impact on the environment and on our waste management. In concert with that, the Group also encourages our customers, colleagues, business partners, suppliers, contractors and vendors to care for the environment.

We consistently monitor, record and benchmark the environmental performance of our properties as part of our management system. Our green initiatives include the use of non–plastic straws (guests use paper or metal straws); the use of energy–efficient lightbulbs; the use of non–woven laundry bags (to be implemented in 2020); the implementation of soap and shampoo dispensers (to occur in 2020); beach and community clean–up drives; refillable water jugs and water dispensers in room hallways (to eliminate the use of plastic bottles). Swiss–Belhotel International has 17 scheduled hotel openings in 2020 – eight in Indonesia, seven in the Middle East, one in Vietnam and one in Malaysia. Those properties include the 193– room, five–star Grand Swiss– Belresort Seef Bahrain; the 227– room, four–star Swiss–Belhotel Darmo Surabaya, Indonesia; the 64–room, four–star Swiss– Belboutique Bneid Al Gar Kuwait and 334–room, four–star Swiss–Belhotel Kuantan. Gavin Faull, Swiss-Belhotel International With increased access to new markets and existing markets around the world, SNAPSHOT: SWISS–BELHOTEL INTERNATIONAL more people are travelling than ever before, and they are Number of hotels & rooms (Globally): 129 hotels and 21,508 rooms travelling more often. Today, the average member of the Number of hotels & rooms (APAC): 108 hotels and 18,120 rooms travelling population takes fewer than one air trip per year. Number of hotels & rooms (Australia): Six hotels and 811 rooms By 2050, that is forecast to rise to 2.5 plane trips per year. Number of employees (Globally / APAC / ANZSP): 6,428 The exponential growth in air travellers will obviously Year first hotel opened (Globally / APAC / ANZSP): 1991 lead to the need for more hotel rooms – lots of them. The Year the company was founded: 1987 economic impact will be great: job creation, increased Brands in the organisation: Grand Swiss–Belhotel, Grand Swiss–Belresort, Swiss– tourism spending and increased real estate development. Belhotel, Swiss–Belresort, Swiss–Belboutique, Swiss–Belsuites, Swiss–Belvillas, Indeed, the future is bright for what will become a much Swiss–Belresidences, Swiss–Belinn, Swiss–Belcourt, Swiss–Belexpress, Zest Plus, larger hospitality industry. Zest and Zest OK Remember, it was only 30 years ago that Dubai Head office locations (Globally / APAC / ANZSP): Hong Kong, Indonesia, China, International Airport handled 4.3 million passengers Vietnam, Dubai, Greece, Auckland and Sydney annually. Today, it is one of the world’s busiest airports,

The exponential growth in air travellers will obviously lead to the need for more hotel rooms – lots of them.

welcoming more than 88 million passengers in 2017.

44 HM The Business of Accommodation

GLOBAL LEADERS

Barry Robinson

President and Managing Director, International Operations, Wyndham Vacation Clubs

Club Wyndham Airlie Beach DESPITE THE GLOBAL economic slowdown, the Asia Pacific region remains one of the world’s top performers, recording solid growth of 5% in international arrivals in the first nine months of 2019. Home to over half the world’s population, the region’s expanding middle class and rising disposable income is increasing travel demand, particularly in emerging markets such as China, India, Indonesia and Malaysia. Intra–regional travel flow accounts for much of our region’s success, supported by the growth of low–cost airlines offering competitive fares to an expanding list of destinations. As we continue our push into new and existing markets, we are expanding our timeshare clubs and managed portfolio by strategically selecting diverse destinations that deliver unique experiences for both vacation club members and hotel guests. We made great strides in 2019 with unprecedented growth of our vacation club product, including a strategic acquisition in Japan which boosted our portfolio in Asia by 16 resorts. Japan is an important destination that has seen exceptional tourism growth over the past decade, with a calendar of major international events such as the 2019 Rugby World Cup, Tokyo 2020 Summer Olympic Games, Paralympic Games and the World Expo in Osaka in 2025 set to continue the momentum. The addition of Sundance Resort Club to Wyndham Vacation Clubs will benefit more than 71,000 of our timeshare club members in the Asia Pacific region. As a management company, we oversee a resort portfolio of 70 hotels and resorts either open or under development, and we are able to offer our partners unique mixed–use opportunities incorporating our vacation ownership product that create multiple revenue streams, cost sharing and cross–promotional opportunities, and high occupancy rates. The pure–play hotels we manage also benefit from our scope, affiliates and global reach as we are able to offer unique marketing and promotional opportunities for our partners. While we continue our push into new territories, we are also actively looking to grow our portfolio in Australia, New Zealand and the Pacific. In late 2019, we announced the purchase of a majority–freehold interest in a 105–room resort on the spectacular Whitsunday Coast. Boasting magnificent views over the Coral Sea, Club Wyndham Airlie Beach Whitsundays is available to some 60,000 Club Wyndham South Pacific timeshare owners. As part of the acquisition, Wyndham

A new decade has arrived and the opportunities are immense to build on our 2020 vision of international expansion in the Asia Pacific region, where hotel development is booming and tourist arrivals remain strong.

Destinations Asia Pacific will also own and operate the onsite food and beverage and conferencing facilities. The Whitsundays has all but recovered from Tropical Cyclone Debbie, which battered the coast in 2017, and we are excited to have entered this re–emerging holiday market. We are always looking for opportunities to secure additional properties in CBD locations like Sydney, Melbourne, Brisbane and Perth. We are excited to soon be operational in Adelaide, with Ramada by Wyndham Playford Northern Adelaide and TRYP by Wyndham Pulteney Street Adelaide both due to open in early 2021. In an increasingly environmentally–aware world, there is an expectation for businesses to contribute positively to the communities that they operate within, and sustainability has become a cornerstone of Wyndham’s Asia Pacific operations. We continue to implement initiatives via our award– winning WYNDGreen program that conserves resources, preserves natural habitats and prevents pollution, such as a balloon and plastic straw ban at all managed resorts and corporate offices; e–waste, battery and soft plastic recycling; plant–based cutlery and packaging roll out across food and beverage outlets and furniture donations to charities following refurbishments.

We made great strides in 2019 with unprecedented growth of our vacation club product. Barry Robinson, Wyndham Vacation Clubs

SNAPSHOT: WYNDHAM DESTINATIONS Number of hotels & rooms (Globally): 220 vacation club resorts and 4,300+ affiliated exchange properties in approximately 110 countries. Number of hotels & rooms (Asia Pacific): More than 70 hotels, approximately 4,600 rooms. Number of employees (Globally): More than 23,000 Number of employees (Asia Pacific): 4,500 Year first hotel opened (Globally): Resorts established in Queensland and Denarau, Fiji, in 2000 Year the company was founded: As Wyndham Destinations – 2018 Wyndham Destinations Asia Pacific (Formerly Wyndham Vacation Resorts Asia Pacific): 2000 Brands in the organisation: Club Wyndham South Pacific, Club Wyndham Asia, Club Wyndham, WorldMark by Wyndham, Shell Vacations Club, Margaritaville Vacation Club, DAE, Love Home Swap, RCI, Extra Holidays, The Registry Collection, Presidential Reserve by Wyndham and Alliance Reservations Network. Managed hotel brands: Club Wyndham, Wyndham Grand, Wyndham, Wyndham Garden, Ramada by Wyndham, TRYP by Wyndham and Days Inn by Wyndham. Head office locations (Globally / APAC / ANZSP): Gold Coast, Australia; Clark, Philippines; Shanghai, China; Singapore (APAC); Orlando, Florida.

hotelmanagement.com.au 45

FEDERAL TOURISM MINISTER

WHETHER IT’S HELPING out strangers, donating what they can, giving of their time – our tourism industry features so many businesses which have stepped up. In many cases, airlines have transported firefighters, accommodation providers have put them up and cafes have offered food and sustenance, all for free. But these same businesses are now feeling the double effects of the ongoing bushfire situation and now, the Coronavirus. Right across Australia, accommodation providers big and small are feeling the pressure as international visitors turn away. Widespread media coverage and misinformation on the geographical coverage of the fires circulating online has seen cancellations and a reduction in bookings across the country. There will be further impacts, given temporary travel restrictions from China that have been put in place on advice of our health experts to keep Australians safe and help prevent the spread of the virus. Experience from previous global outbreaks suggests there is also likely to be a downturn in global travel, impacting on visitation from markets beyond China. The Morrison Government is moving swiftly to do everything we can to ensure that we minimise the impact upon Australia’s tourism sector. We know the effects will be long–lasting and we are working with industry as well as our state and territory counterparts to deliver coordinated recovery measures. That’s why, as part of an initial $76 million tourism recovery package, we have taken the step to encourage Australians to ‘Holiday Here This Year’. With domestic overnight spend increasing 13% to $79 billion in 2019, we know that Aussies holidaying in their own backyard will make a big contribution to the recovery process. Similarly, we have also led a major push to get businesses and organisations booking and planning their events in Australia under the banner ‘Event Here This Year’. With business events being one of the most crucial and lucrative components to the sector, having those yet to book their events for the next weeks, months and years do so within Australia will provide a significant boost for many communities. While it is critical we get the message out to our international markets that most of Australia has remained untouched by the bushfires, a focus on the domestic market in the short term will help protect jobs, stimulate a more immediate cash flow for tourism operators and accommodation providers and help get tourists travelling across Australia again. Australians know that most of our vast country has not been struck by fire. Even in fire–affected communities, many businesses and attractions are At Barristers Block in the Adelaide Hills in late December. Fire destroyed the entire vineyard but the Cellar Door was saved. 46 HM The Business of Accommodation

Simon Birmingham

Minister for Trade, Tourism and Investment Australians have shown incredible generosity coming into 2020. It’s the best of Australian mateship.

Accommodation providers big and small are feeling the pressure as international visitors turn away. Simon Birmingham, Minister for Trade, Tourism and Investment

again open, providing those who visit with an enjoyable and memorable experience. There are many tourism operators who will provide wonderful experiences while also being extraordinarily grateful for bookings. In recent years, Australia’s tourism industry has progressively grown into a powerhouse worth $152 billion and makes a vital and valued contribution to our nation. With one in thirteen Australians employed in tourism–related jobs it is also the lifeblood for many communities around the country. While the bushfire crisis and now Coronavirus will have an unprecedented impact upon the industry, I am confident that we can recover and continue to be a world–class leisure and business destination. Our international visitors will return, just as they have to other nations which have recovered following high profile natural disasters or times of uncertainty. Our government will continue, as we have always done, to support those who need it most and to provide the opportunities needed to thrive. I am focused on helping the tourism sector, including accommodation providers, to get back on their feet and to get visitors enjoying our world–class hospitality in our stunning country again. I have faith in our nation’s resilience and am optimistic about the future of Australia’s tourism sector. I would like to thank you all for your hard work and contribution to Australia’s tourism industry. Minister Birmingham at Pennington Bay, Kangaroo Island last month.

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TOURISM LEADERS

AS WE APPROACHED the close of 2019 with cautious optimism – on track for another year of domestic and international tourism growth – we saw our circumstances quickly change. While the most recent figures show international visitation to Australia was still growing at around three percent for the year and spend at five percent, alongside a 12 percent increase in domestic overnight trips and 13 percent rise in spend, the figures don’t necessarily reflect the situation that has since unfolded for our industry. During our busiest period for travel, Australia experienced summer bushfires of the size and scale not seen before, with devastating impacts for a number of communities. And then we started to see the knock–on effect, with communities not directly affected by the fires experiencing an immediate downturn in tourism business. However, the good news is that we have been able to respond quickly to these challenges. As part of the Australian Government’s initial AUD$76 million tourism recovery package, we have already kicked off a domestic tourism campaign urging Australians to ‘Holiday Here This Year’. In partnership with all states and territories, the campaign forms part of a coordinated marketing push to galvanise the tourism industry and Australians – especially when you factor in that domestic tourism accounts for 74 percent of all travel in Australia. This campaign is about helping our communities that have been directly and indirectly impacted by the fires to get back on their feet. It is a campaign that is built from the ground up and is a practical way that Australians can help bushfire affected communities by filling hotel rooms, restaurants, caravan parks, beaches and more. As we have seen, Australians have opened their hearts and their wallets and want to do more for communities affected by the fires. The simplest and most effective way they can do that is by visiting. That’s why we are issuing a rally cry to encourage Australians to holiday here and help Australian communities, especially those that rely heavily on tourism. We know that for every dollar spent on tourism – whether it be in our hotels, restaurants or attractions – an additional 81 cents is generated in other parts of the economy so boosting the recovery effort is paramount. In addition to $20 million allocated for domestic marketing as part of the National Bushfire Recovery Fund, Tourism Australia has been given increased funds for international marketing (AUD$25 million) and for its International Media Hosting Program (AUD$9.5 million) as well as increased support and funding for the Australian Tourism Exchange 2020 (AUD$6.5 million). In terms of our international marketing, we have paused some of our activity in key markets while we monitor and review the situation on a daily basis. However, there has been significant impact from all the media attention the fires have attracted around the world 48 HM The Business of Accommodation

Phillipa Harrison Managing Director, Tourism Australia It has been a challenging start to the year 2020.

We are issuing a rally cry to encourage Australians to holiday here and help Australian communities. Phillipa Harrison, Tourism Australia

– and we are seeing already that our forward bookings are down 35 percent. We know international business will recover but it takes more time. Right now, we are working on a strong program of trade engagement and PR activity internationally to dispel the myths and send a message that 97 percent of the most popular tourism areas enjoyed by international visitors in Australia are unaffected and are very much open for business as usual. This includes daily updated information on our website, Australia.com, about areas impacted and not impacted. In addition, our program of trade events like ATE20 in Melbourne, our Destination Australia Conference in Adelaide as well as the comprehensive program of trade events we run and participate in overseas will be critical to our recovery efforts this year. From a business events perspective, while our focus is on marketing Australia internationally to attract future business events, we have also launched a domestic campaign as part of the tourism recovery effort. While we are spearheading the campaign by creating campaign

assets and undertaking a domestic trade media buy, it is hoped the success of the campaign will be driven by the entire events industry sharing the ‘Event Here This Year’ message as far and wide as possible. So, while our industry certainly faces some challenges, the reality is that this is the new normal for our sector. We know from experience our industry is incredibly resilient and will bounce back eventually. In the meantime, we look forward to working with all our trade and industry partners in the coming weeks and months to help Australian tourism rebuild and recover in 2020.

TOURISM LEADERS

wi ll AA oA

020 n2 si er

FOR THE ACCOMMODATION Association, 2020 represents a new chapter in the 60–year history of the Association. We have created a collection of new products and services that can assist members’ businesses to drive down costs, recognise and reward great employees and further strengthen the respect political leaders have for our Sector. We have also developed a contemporary look and feel including a new logo to ensure we are relevant in 2020 and beyond. In February, our members in Brisbane, Sydney and Melbourne will be receiving the first of our monthly Market8 Reports. The Market8 Reports provide detailed analysis for every week of the year across the key indicators including occupancy, RevPAR, ADR and compression nights in each city. The reports will also provide information on the economic factors of the month and events that influenced performance of our Sector. Importantly, these will be available in time to provide additional information for your monthly accounts and owners reports to assist in interpreting your results in the broader economy. You can read more about our exciting new products and services in our Accommodation Association update on pages 24 and 25 of this issue. We are focused on delivering services that assist in understanding the performance of the market and ensuring our political leaders around the country support our Sector. In 2020, the Accommodation Association will be ramping up efforts to support each member in finding the right staff for each property. The Accommodation Association Academy will continue to be the leading program in the country in assisting the youth of Australia to find employment in our sting events fo rm e ho u n e i m nt b co

Dean Long

Chief Executive Officer, Accommodation Association In speaking with many of you throughout December and January it was clear that 2020 will be a challenging year, with most properties forecasting a flat year for revenue growth.

Sector. Our efforts have been recognised by the Federal Government, which awarded the Accommodation Association with a $1.5 million grant to increase the ease and speed in which we can help general managers find the right staff and a career in our Sector. These funds will be used to provide training and support for members seeking to employ Australians through the PaTH program. At a macroeconomic level, some media outlets talk about the softening consumer sentiment. The Commonwealth Treasury found that GDP growth in the first three quarters of 2019 was stronger than in the second half of 2018. Growth is forecast to continue by Treasury and the RBA in 2020, albeit at a much slower pace than we would like. We will be working with all State and Federal Governments to address the issues of supply, including unregulated letting and additional investment in demand drivers such as marketing, given the increase in supply of new hotels. Another important take away was that wages growth has been downgraded from 2.75% to 2.5% in 2019/20 and from 3.5% to 2.5% in 2020/21. This will be a focus area of our discussions with Fair Work and the government on Industrial Award reviews in 2020. The Accommodation Association is a registered organisation with Fair Work meaning we are the only voice in our Sector solely focused on accommodation employment issues. The announcement by the Prime Minister to review the industrial relations system resulted in the Accommodation Association facilitating a series of round–tables with industry leaders. These sought to identify key pinch points and recommendations to unlock more employment opportunities for Australians.

Growth is forecast to continue by Treasury and the RBA in 2020, albeit at a much slower pace than we would like. Dean Long, Accommodation Association

Efforts will be ramped up on the industry’s employment issues

hotelmanagement.com.au 49

TOURISM LEADERS

Michael Johnson

Chief Executive Officer, Tourism Accommodation Australia There’s no doubt 2019 was a year of real change for TAA here in NSW and nationally.

WE CERTAINLY HIT the ground running in the second part

of last year with myself coming onboard as the new CEO, a new board and a newfound enthusiasm to get things done. And we are only going pick up the pace in 2020. But the new year will not be without its challenges, and one of the biggest – short-term rental accommodation (STRA) – is one that has been with us for a while and shows no signs of a quick resolution. I am glad to say there are some positive signs, however, after extensive lobbying by TAA. In the last year, the Australian Taxation Office (ATO) has begun to take action to rein in STRA providers, but the response from individual states has been haphazard. Tasmania was the first cab off the rank, introducing in June the strongest legislative reforms we have seen – again after much work by TAA. The legislation implements a mandatory registration system which requires planning approval and for Airbnb and similar platforms to only market and sell permitted, registered and approved short–stay accommodation. NSW followed soon after, although the exact detail of the NSW

The new year will not be without its challenges, and one of the biggest is short-term rental accommodation. Michael Johnson, Tourism Accommodation Australia 50 HM The Business of Accommodation

tion ula eg gr tin let

code of conduct and planning, including registration, is still undetermined. We are hopeful this will come through in the first quarter of 2020. Of course, a major breakthrough has been the ATO’s data matching program which works as an umbrella across all STRA providers

The ATO is cracking down on incomes earned through Airbnb and others

to identify taxpayers not meeting their registration, reporting, lodgement or payment obligations when renting out property on a short–term basis. In 2020 we will continue to lobby state governments for more registration and regulation to create a level playing field for all. The other big challenge we face as an industry is one which effects every state and territory – the skills shortage and migration, especially in our regions. Whilst we continue to work with the Federal Government on VET and VISAS, we will also continue to lobby on important positions such as cooks, chefs and middle management, ensuring a pathway to migration. I think this will be the only incentive to fill the necessary gaps in our workforce, with an extensive pipeline in place in all major capital cities which will exacerbate the issue. Big things are ahead for TAA in the coming year as well. TAA NSW, along with key Industrial Relations and Legal staff, will move out of the AHA NSW head office in Macquarie Street into new dedicated offices at Cullwulla Chambers in the first quarter of 2020. This exceptional new space will be an asset to TAA’s 2020 calendar and will include the introduction of new event spaces. We are also going to be heavily focused on labour and skills over the next 12 months, working with Inspiring the Future Australia to grow awareness of the industry in schools along with the introduction of Hotel Leadership Traineeships in the first part of 2020. The Hotel Career Expo will work in tandem with the above initiatives. The role of aviation, overland travel and cruising is vital to our industry and we will be zeroing in on these issues in the new year. The future introduction of the new Western Sydney Airport will allow for greater capacity, but in the interim TAA will advocate for an extension to Sydney Airport’s capacity. Cruising continues to grow, and shows no sign of slowing down, but we still need to work closely with NSW government to find a solution to the lack of port space in Sydney. TAA will also continue to work closely with the China market in 2020 and will support the Federal Government’s 'India Host' program to ensure its growth and success. Tasmania is leading the way wit hs ho rt– te rm

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Flying Fish

TOURISM LEADERS

PRIOR TO THE tumultuous ending to the year – with the tragic loss of lives at Whakaari/White Island, and continued infrastructure challenges on the West Coast – the performance of our international markets was mixed. Hotel occupancies held up reasonably well, but we did start to see a softening in rates, particularly in Auckland. I think most operators accepted the inevitability of the growth rate slowing. For many, 2019 was a welcome opportunity to catch their breath and at TIA, we continued to focus on the strategic issues that will determine the success of the tourism industry in the coming years. I’d like to look at five of those issues now. First up is our workforce. Recruitment challenges have continued into 2020 and haven’t been helped by processing delays in getting temporary work visas and significant declines in working holiday arrivals from our traditional markets like the UK, Germany, France, the USA and Canada. We will always have a need for temporary workers from overseas, but we must also build a stronger local workforce. TIA, working with ATEED (Auckland Tourism, Events & Economic Development) achieved a huge win in 2019 when we secured $5.2 million over three years from the new International Visitor Levy to help promote and attract talent into the visitor economy through the expansion of ‘Go With Tourism’. We know the hospitality sector in particular has been struggling with workforce issues. With the financial backing now received, we can look to make a real difference in building a quality tourism workforce in New Zealand. The second key issue is sustainability and how we achieve genuine long–term sustainability – economically, environmentally and socially. The ‘Tourism 2025 & Beyond – A Sustainable Growth Framework – Kaupapa Whakapakari Tapoi’ was unveiled by TIA last May. The framework now has sustainability firmly at its heart, built on a foundation of the Māori values of kaitiakitanga, manaakitanga and whanaungatanga. For 2020, given the slowdown, there will obviously be a focus for some tourism businesses on short–term growth. However, we have also seen a very strong industry commitment to long–term sustainability. By the end of 2019, membership of the Tourism Sustainability Commitment (TSC) had grown to almost 1,300 – a pleasing commitment to sustainability, given the Parliamentary Commissioner for the Environment’s g careers in omotin the t pr se

Hotel Sector Manager, Tourism Industry Aotearoa (TIA) 2019 was marked by a definite slowdown in tourism growth in New Zealand after five strong years.

For many, 2019 was a welcome opportunity to catch their breath. Sally Attfield, Tourism Industry Aotearoa.

cto r

The ‘Go With T o ur is m ’ in iti at

is ve

a ed aim

Sally Attfield

52 HM The Business of Accommodation

Shotover Jet, Queenstown

recent report into the environmental impact of tourism. We revised the New Zealand Tourism Awards to align with the TSC, recognising environmentally sustainable and financially successful tourism businesses that embrace kaitiakitanga, with Sudima Hotels taking home the coveted Air New Zealand Supreme Tourism Award. Issue number three is taxes and levies. TIA’s firm position is we don’t need more taxes. We were delighted that the strength of our arguments persuaded the Productivity Commission to drop its support for local bed taxes, accepting TIA’s position that international visitors are already more than paying their way through the GST system. In its draft report issued back in July, the Productivity Commission had recommended the introduction of bed taxes to fund tourism–related infrastructure at a local government level. TIA strongly pushed back on this recommendation, taking up the fight on behalf of the accommodation sector and the wider tourism industry. Bed taxes would miss the majority of travellers and add costs to a small set of operators already struggling with increased business and compliance costs, at a time when tourism is slowing. We are delighted the Productivity Commission has recommended Councils should use the existing tools available to them. Issue number four is data and insight. An unpleasant surprise in 2019 was the sudden demise of the CAM, or Commercial Accommodation Monitor. With its disappearance, TIA’s monthly Hotel Sector Survey is the only reliable, regularly produced data, and of course only covers part of the accommodation sector. TIA has worked alongside government officials to identify a replacement for CAM, which should be up and running very soon. Finally, issue number five is social licence. We’ve been proactively creating positive tourism content for traditional and social media and enabling industry members to act as advocates. We’re looking forward to hosting our first ever ‘Discussing Tourism Communications’ hui at the end of March, to motivate regional tourism organisations and operators to share more of their genuine and inspiring tourism stories with New Zealanders.

TOURISM LEADERS

Margy Osmond Chief Executive Officer, TTF Australia

For those ravaged by fire, the recovery and rebuilding journey will be tough.

THE FIRST FEW weeks of January are usually the time of year to gently ease back into work and watch your tan fade slowly to the point where that holiday on the beach is just a memory. This year is completely and tragically different. We have watched fellow Aussies in shocking circumstances, dreadful loss of life and communities fighting to survive this catastrophic summer of fire and facing a very bleak future as they attempt to rebuild and re–invent their offering as largely domestic tourism destinations. For those ravaged by fire, the recovery and rebuilding journey will be tough and unless there is immediate financial support for a range of small business operators in local communities, they will not be there when the tourists do return. Terribly also, businesses out of the fire zones and not damaged in any way are also seeing cancellations and a massive loss of business. The loss of critical small business infrastructure in towns up and down Australia may very well be an unexpected and desperate next stage of the fires themselves.

SO WHERE ARE WE NOW?

As so many tourism dependent towns begin to recover and repair, we may finally just have a little light at the end of the tunnel. Australia has always been open for

Now is the time to be loud and clear that – Yes! We are open for business! Margy Osmond, TTF Australia business; however, how we have been portrayed across the world in both traditional and social media has caused some damage. Our sector welcomed the announcement in January that our bushfire ravaged tourism industry will receive some much–needed financial support to start the road to recovery, with the Federal Government pledging $76 million for a comprehensive recovery package for tourism and hospitality businesses and towns affected by this summer’s bushfires. Thank you! And now is the time to be loud and clear that – Yes! We are open for business! Shout Out Australia! It is fantastic to see how united our industry can be and that we are moving forward and rolling up our sleeves to implement the rebuild strategy. This necessitates new content, new digital and new socials right across all our industry platforms. In Australia, one in 13 jobs rely on tourism and hospitality and we are a $152 billion industry. We have a make or break situation here at home, but as so many of us have said before, “I’ve got your back”, so let’s keep moving forward. hotelmanagement.com.au 53

TOURISM LEADERS

Peter McBrearty Les Clefs d’Or Australia

We have broken two records for Les Clefs d’Or Australia.

LATE LAST YEAR, our West Australian Les Clefs d’Or members held their inaugural Western Australian Tourism Expo at the Pan Pacific Perth, providing an opportunity for a wide range of tourism related companies to meet with hotel Concierge and front office staff, who in turn need to know what attractions and activities are available for their guests. We would like to thank Pan Pacific Perth and in particular General Manager Rob Weeden for hosting the Expo; Tijah Colleran from The City of Perth; Kym Francesconi of Tourism Western Australia and Troy De Souza of the West Australian Visitors Centre for their assistance with arranging the event. Big thanks also to all of our exhibitors and hotel staff for taking the time to come along and join us. I can honestly say as someone from the east coast with only minimal knowledge of Perth itself and the Peter McBrearty, Les Clefs d’Or regions beyond the city, that the range and variety of activities and attractions on offer in WA came as a total surprise. In fact, as a result of attending the Expo I would definitely recommend to any of our guests yet to travel to Western Australia that they may wish to give planning a visit some serious thought – and also ensure they allow enough time to fully enjoy their stay. Congratulations are due to our WA members – State Director Stuart Spicer, Andre Burford, Scott Hulme and

As someone from the east coast, the range and variety of activities and attractions on offer in WA came as a total surprise.

54 HM The Business of Accommodation

Milton Lima and also their friends and associates in the tourism industry for arranging such a successful event. From the feedback we’ve already received, I suspect they may not have too much of a break before the early planning for WA Expo 2020 will be underway. With the addition of our two newest members, Luis Marques and Ian Frenkel of the Sofitel Darling Harbour, we have broken two records for Les Clefs d’Or Australia. For the first time, we have exceeded 60 members nationwide, and the Sofitel Darling Harbour has also become the first ever Australian hotel to have five Les Clefs d’Or members working on their Concierge Desk. Both of these achievements point to the ongoing increase in the overall number of premium Australian hotels, and also the commitment that many of these properties have made to provide their guests with the highest possible levels of service. The golden Les Clefs d’Or keys recently made an appearance in the lobby of The Park Hyatt Melbourne with the welcome return of former Victorian State Director of Les Clefs d’Or Australia, Nikolas Adams. Nik found himself in town on temporary secondment from his current position as Chief Concierge at the soon–to–open Park Hyatt Auckland, and quickly found himself busy assisting guests with Christmas and New Year arrangements, dining, tours, travel itineraries and also introducing them to the members of the Les Clefs d’Or network who would be assisting them at their next destinations. Nik immensely enjoyed the opportunity to return and further hone his Concierge skills in Melbourne, and hopefully we’ll see him visiting again, once he Les Clefs d’Or at the Western has deployed those same skills on Australia Tourism Expo behalf of his guests in New Zealand.

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LEADING INDUSTRY ANALYSTS

Dean Dransfield

Founder & Managing Director, Dransfield Hotels and Resorts Hotel markets in Australia are at different stages and this brings different opportunities and challenges. I’M VERY MUCH looking forward to a busy 2020 and

expect a continuing mix of growth opportunities and headwinds on some projects. In some locations, we now have markets at different stages of the supply cycle and various levels of localised demand. Generally speaking, the business outlook for 2020 is somewhat variable and uncertain with discretionary expenditure presently constrained and enduring drought effects trickling down through the wider economy. This is despite the economy being otherwise in good shape with significant equity capital available however frustrated by low growth in wages and prices generally. For us here at Dransfield, our work is strongly correlated to locational hotel business cycles, with particular service streams rising and falling in prominence as capital flows dictate. When hotel markets are strong, we see influxes of capital looking to enter the market which drives our development, transaction and brokerage businesses. On the downcycle, our asset management, restructuring and independent expert streams gain momentum.

I think the abundance of first time hotel developers may see some projects get into trouble. Dean Dransfield, Dransfield Hotels and Resorts

Brisbane has come full circle with an abundance of new supply recently received and now being well absorbed, while Perth is getting closer. Melbourne, Sydney and Adelaide are all in various stages of their supply side increase. With substantial numbers of new openings, this is creating localised price volatility and stretching short–term capacity to absorb. However, over the long term, all of these markets should be fine with occupancies still in the 80’s or high 70’s. Despite some of the press, Sydney remains unsatisfied for supply over the medium term with very low demand growth possible in this environment. This is blocking

56 HM The Business of Accommodation

international demand growth and will affect all markets across Australia to an extent. In terms of industry challenges, I think the abundance of first time hotel developers may see some projects get into trouble, particularly those that were egocentric and not well considered and structured. Some of these were found out in 2019. There is not enough people with relevant hotel experience driving the ship and success is not a given despite undersupply. This scarcity of knowledge is not only development centric but also flows through to operations with quality GM and staff shortfalls a growing challenge which will need to be managed. On the investment front, there is a growing shift between traditional debt financing and new non–bank alternatives. These alternatives will continue to grow as borrower needs and wants diverge from what the banks are willing and able to put forward. This is likely to continue in 2020. I am looking forward to the continued evolution of mixed–use over the next 12 months. Asset classes including multi–family and student accommodation are increasingly part of the conversation and we are looking at a few of these opportunities at present. The lifestyle hotels trend will also continue to expand with the change in both consumer and owner/developer taste. These products will push boundaries between smaller in–room space and larger, more multi–functional public spaces. I also expect a big movement towards environmentally friendly practices in 2020 and beyond. The environmental impact is becoming increasingly important to larger numbers of guests and I expect this will reflect in developers, owners and operators all striving for five–star NABERS ratings and similar. This will also begin to affect corporate and government contracts in the short/medium term and hoteliers should soon expect to be asked of your rating before the booking decision is made. Lastly, it was great to see several developments we have worked on open recently. The Taronga Zoo Eco Retreat and the Vibe Darling Harbour are both wonderful products for Sydney, whilst we are eagerly awaiting the opening of the W at Darling Harbour in 2020. Vibe Darling Harbour, Sydney

LEADING INDUSTRY ANALYSTS

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Matthew Burke

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AUSTRALIA WAS ONE of the first countries to return to pre–global financial crisis trading performance levels and, with limited supply, reported strong year–after–year revenue per available room (RevPAR) growth fuelled by strong domestic travel and a rise in international tourists, most notably from China. Secondly, a once–in–a–generation resource and construction boom fuelled accommodation demand in Perth, the Pilbara, Darwin, Gladstone, Mackay and Brisbane, to name a few. As the decade came to a close, many markets reported near–record performance levels. Albeit without the growth, as new supply arrived – firstly in the resource– led destinations and then other markets. Data for the past year shows that new inventory has put pressure on occupancy levels and, subsequently, hotelier pricing confidence. Moving forward, we anticipate demand growth in almost all markets, but sustained supply increases have meant the forecasting of short–term occupancy declines. Room rates will of course be affected by the additional competition, but this is unlikely to become a long–term trend as many markets trade at high absolute occupancy levels and possess the ability to absorb new supply. The fundamentals remain positive and, ultimately, results will be determined by how each operator decides to navigate these market conditions. Australia will reach its construction peak this year, and we don’t expect a substantial development slowdown anytime in the next few years. Melbourne, Hobart and Adelaide are projected to see the largest increase based

Regional Manager – Pacific, STR As a new decade begins, it’s a key time to reflect on the previous ten years and how the next might differ.

on existing room count, and the two highest–tiered segments (Luxury and Upscale) will combine to welcome 35% of pipeline rooms. The new breed of property has and will continue to re–energise certain destinations, creating opportunities to attract new events and grow interest among potential travellers. Perth and Brisbane are current examples of this trend. A secondary benefit of new hotel development is that existing properties are updating and refreshing, which raises the overall quality of accommodation across each class and, in time, will be a factor in market–wide average rate growth. From a company perspective, STR has continued to grow in line with the industry’s wider interest. STR remains immensely proud to deliver the Australian Accommodation Monitor each annum and will continue to produce national and granular accommodation data for all stakeholders – enabling them to make more informed decisions regardless of location. We appreciate the support shown to STR through the transition into this program, but we aim to continually innovate and bring more knowledge to our clients. In 2020, we’ve launched our forward–looking business on the books tool – ‘Forward STAR’. Market interest has been overwhelmingly positive thus far and, with the support of integration partners, we are excited to be complimenting the rich insights of historical performance with market– leading forward benchmarking.

As the decade came to a close, many markets reported near–record performance levels. Matthew Burke, STR

Gladstone hotels benefited from a huge boom in mining at one point

hotelmanagement.com.au 57

ASIA PACIFIC LEADERS

Michael Issenberg

Chairman & CEO, Accor Asia Pacific The start of a new decade provides a great opportunity to reflect on the past and imagine where the future will take us.

THE TOURISM AND hospitality industry underwent enormous changes over the past ten years, including major disruptions from the rise of OTAs, the increasing power of China, the launch of ride–share and home– share services and a seismic shift in consumer behaviour. Into the next decade, technology, loyalty, wellness and experiential travel will be the biggest drivers of change and the industry will have to be more agile to keep up with the pace of innovation. Accor Asia Pacific underwent tremendous growth in the last ten years, with the group going from 395 hotels (76,000 rooms) to reach almost 1,200 hotels (over

220,000 rooms) – a tripling in size. We also grew from nine brands, with only one in the luxury space, to almost 40 brands, of which 26 are in the luxury and premium space. As the second largest operator of luxury hotels in the world, Accor now has 12 brands in the pure luxury space, including some of the most Michael Issenberg, Accor respected and revered names in hospitality. One of the biggest changes over the past decade was the rise of China, which now represents the number one source market for tourism spending in the world. To capitalise on this important market, we have forged strategic alliances with the likes of Huazhu Hotels Group, Alibaba and C–trip and as we move into the next decade, alliances like these will grow in importance. Metasearch will be the next big thing in travel, with the likes of Google, Facebook and Amazon growing their presence in

Loyalty will play an even bigger role in driving the performance of our hotels moving forward.

Loyalty will continue to play a major role in hotel performance

58 HM The Business of Accommodation

the travel space. This means hoteliers will need to focus even more on guest experience to drive brand preference and increase direct bookings. Tourism in Asia Pacific is growing faster than just about anywhere in the world, which creates a challenge in finding and developing the best talent to meet our network growth. As the industry transforms, we also need to consider emerging roles in our skills framework to ensure we are future ready. In Asia Pacific, Accor provided over 1.46 million hours of training in 2019 and created a range of new training programs in data, distribution and technology to promote innovation and a more entrepreneurial mindset amongst our teams. The other big challenge that the whole world is facing are threats to our natural environment, upon which tourism relies so heavily. Accor was the first global hotel group to have a Sustainability Charter, back in the 1970s and we have always had a strong commitment to creating positive impacts on the communities and environments in which we operate. We are committed to a 30% reduction in our food waste by the end of 2020, to eliminating single–use plastics and to cutting our energy and water consumption. We are committed to carbon– neutral buildings and constantly seek local and organic food supplies. Into the next decade, this will become an even bigger issue and we are committed to maintaining a leadership position in protecting the planet and its people. More than ever, our hotels are looking for innovative solutions to sustainability. For example, the Fairmont and Swissotel Singapore complex recently installed an aquaponics farm on its roof, which can produce around 1,200 kilos of vegetables and 350 kilos of fish monthly for the 13 bars and restaurants within the two hotels. This represents around 30% of the greens and 10% of the fish requirements of the hotels. I am excited to see where the next decade will take us.

Comfort Inn Julie Anna, complete with new branding, in Bendigo, Vic

ASIA PACIFIC LEADERS

Trent Fraser

Chief Executive Officer, Choice Hotels Asia–Pac

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Christchurch

There is no denying that 2019 presented the accommodation industry with challenges.

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WHETHER IT WAS drought, fires, and other natural disasters across Australia and New Zealand, many operators, particularly in regional areas have been doing it tough. In the capital cities, the increased inventory, particularly in Brisbane, Sydney and Melbourne has seen a pricing impact due to new competition at the higher end of the market. Across New Zealand, the industry has experienced a softening of the market throughout 2019 after a significant three to four–year growth period. The industry as a whole continues to be challenged by the rise of the sharing economy, however we’re pleased to see the introduction of regulation in Tasmania, with the Short Stay Accommodation Act coming into effect mid– year. We remain optimistic these types of regulations will be introduced more widely across the region. The rising costs of employment continues to impact operational efficiency, as well as the ability to source skilled labour in regional locations. At Choice Hotels Asia–Pac, despite the difficult conditions in 2019, we’ve experienced a number of positives across the business. Properties participating in our Revenue Management program have exceeded 8% RevPAR growth, with more than 50 properties currently participating in that program, which we intend to grow to 80 by the end of 2020. Across the wider portfolio, we’re pleased to report our RevPAR is in positive territory, while the market at large finished the year 3% down. From a development point of view, 2019 was our most successful year in five years, with 20 properties joining the group. We’re particularly proud of the growth of our upscale Ascend Hotel Collection brand, which you can now find in every mainland capital city in Australia and is continuing to expand across New Zealand. We undertook a reimaging project of our largest brand, Comfort, a project which will continue into 2020 and is a

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From a development point of view, 2019 was our most successful year in five years. Trent Fraser, Choice Hotels Asia–Pac

modernisation of the brand. We’ve continued to deliver an enhanced digital experience to our customers with the launch of a new website as well as a design and functionality refresh of our planning and inspiration site, NeedaBreak. It’s pleasing to see that inbound routes to our region continue to increase, but particularly in Australia we are heavily tied to overland travel to drive leisure business to regional markets. Additional air capacity is always good news for the capital cities but continuing to encourage regional dispersal is of paramount importance to us. Our destination focused NeedaBreak platform serves that need through ‘short–break’ inspirational content, focused on the best regional locations. Additionally, the Asia–Pac region has been unified, with the office in Melbourne now working closely with our Master Partners and Area Representatives in Japan and China, as well as the Choice India team. This unification has created a more diverse regional Asia Pacific Hub and creates a portfolio of over 300 properties in our region. We see a lot of potential in the South East Asian region particularly, and we signed an agreement with Krest Hospitality Management as our ‘white–label’ management partner. Their first property, a Quality Resort, is currently under construction in Kata Beach Phuket and scheduled to open in Q3 of 2020. We’re looking forward to our Biennial conference coming up at the end of February in Melbourne. We’re expecting 200–400 franchisees and representatives from across the region, along with our local leaders and also those from our US parent company. This conference culminates in a celebration and awards dinner where we’ll be announcing the Hotel of the Year winners from each of our brands, who are then eligible to win the International award at the Choice Hotels International Convention in New Orleans, in May 2020.

SNAPSHOT: CHOICE HOTELS ASIA–PAC Current number of hotels (Globally): 7,500 in more than 40 countries Current number of hotels (Asia Pacific): 300+ Current employee count (APAC): 250 Year first hotel opened (Globally): 1939 Year the company was founded: 1939 Brands in the organisation: APAC: Ascend Hotel Collection, Clarion, Quality, Comfort, Econo Lodge Head office locations (Globally / APAC / ANZSP): Global: Rockville, MD; APAC: Melbourne, AU

hotelmanagement.com.au 59

ASIA PACIFIC LEADERS

Craig S. Smith

Group President Asia Pacific, Marriott International North America remains our biggest market for growth internationally this year, yet hot on its tail is the Asia Pacific. Over the last year, we’ve marked many milestones at Marriott International. We launched our global travel program Marriott Bonvoy, celebrated the opening of our 7,000th property in The St. Regis Hong Kong and added almost 90 hotels to our portfolio in Asia Pacific. As we begin this exciting new decade – Asia’s decade – we plan to grow our business across the region through an ambitious property pipeline, investments and innovations in the customer experience. To succeed, we need to address growing demand, constantly–evolving platforms, and adapt to a younger generation of traveller with high expectations for how we conduct our business. By the end of this decade, Asia will account for 40% of global air travel. Spurred by economic growth and a burgeoning middle class, China continues to be the strongest growth driver for outbound and domestic travel in Asia Pacific, followed by India, the region’s second economic powerhouse. To keep pace with growing demand, more than 50% of the hotels in our Asia Pacific pipeline are in China. We plan to reach 500 hotels with nearly 160,000 rooms, and 100,000

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The St. Regis Hong Kong marked Marriott International’s 7,000th hotel globally

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As an industry, we need to collaborate and find more ways to make a positive and sustainable impact. Craig S. Smith, Marriott International

60 HM The Business of Accommodation

associates wearing Marriott badges in the next three years. Across the region, we plan to double our operating hotel portfolio by 2025. Digital innovation is changing the guest experience as we know it, and we are finding better ways to interact with guests and improve business operations. In Asia Pacific, we are heavily focused on investing in strategic partnerships to future–proof our business. Last year, we made great strides through our joint venture with Alibaba and leveraged their retail and digital expertise to reach more consumers than ever. We used insights from their platforms to better understand and serve their members in different ways across dining, retail and experiences. The partnership also enabled us to drive connection and convenience for tech–savvy Chinese travellers with facial–recognition check–in technology, and it also helped spur enrolment in Marriott Bonvoy – an integral part of our consumer offering. Consumers expect the brands they support to be socially responsible, and many brands need to step up and play a bigger role by investing in more sustainable operations. The travel sector is no exception. According to the Cambridge Institute for Sustainability Leadership, tourism contributes about 5% of global greenhouse gas emissions, a figure that is expected to grow to 130% by 2035. We recognise our global responsibility to use our size and scale as a force for good and thus have set ambitious and public 2025 goals to guide our progress and hold ourselves accountable. These sustainability goals include reducing water and carbon intensity by 15% and 30% respectively, waste to landfill by 45% and reducing food waste by 50% by the end of 2025. In August, we announced a global initiative to switch mini, single–use toiletry bottles in guestrooms, which is expected to prevent about 500 million tiny bottles annually from going to landfill – that’s about 1.7 million pounds of plastic – a 30% annual reduction from current plastic use. As an industry, we need to collaborate and find more ways to make a positive and sustainable impact, especially as we grow. Building on our strong foundations, we are well positioned to embrace the challenges ahead of us and will continue to bring to life our vision of becoming the World’s Favourite Travel Company.

SNAPSHOT: MARRIOTT INTERNATIONAL Number of hotels & rooms (Asia Pacific): More than 780 hotels and 222,000 rooms Number of employees (Asia Pacific): Approximately 190,000 Year first hotel opened (Globally): 1957 Year the company was founded: 1927 Brands in the organisation: 30 Head office locations (Asia Pacific): Hong Kong

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ASIA PACIFIC LEADERS

Katerina Giannouka President, Asia Pacific, Radisson Hotel Group

Radisson Hotel Group is entering the new decade with confidence.

Underpinning our growth will be our relationship with Jin Jiang International.

Katerina Giannouka, Radisson Hotel Group

OUR OPTIMISM COMES from solid foundations we have established in the last two years, as we initiated ‘Destination 2022’ – our five– year transformation strategy – which will establish us as one of the world’s leading hotel groups. We are also encouraged by the underlying strength of the travel and hospitality industries, especially in Asia Pacific. International tourism continues to thrive – the latest figures from the UNWTO show that from January–September 2019, Asia Pacific saw an increase of 5%. There are no indications this growth will decelerate in 2020 – if anything – the appetite for travel, especially among Asia’s emerging middle classes, will grow even stronger in the coming decade. As an indication of this, IATA has forecast that airline capacity (+5.5%) and passenger demand (+4.8%) will both increase in 2020. Further, the GBTA predicts business travel costs will rise this year, including a 1.3% increase in hotel rates and airfares. This is the same steady growth rate forecast for Asia Pacific’s MICE spending in 2020, according to AMEX M&E. Of course, we cannot ignore global threats. A potentially major situation is developing in the Middle East, which could have worldwide implications, and the unrest in Hong Kong still hasn’t been resolved. Recent reports of an outbreak of respiratory illness in China are concerning, and of course we are all praying for Australia amid the terrible bushfires. Global environmental issues are likely to become increasingly prevalent in future, and the world must take action. We will be monitoring all of these situations and taking steps to shield our business from any negative impacts. There is also uncertainty in the Asian economy, largely related to global factors rather than regional weaknesses. Despite this, the IMF predicts Asia’s GDP will grow 5.1% in 2020, making it the world’s fastest–growing region. Overall, there is every reason to remain positive. Radisson Hotel Group has even more reasons to be confident in 2020. We currently have a portfolio of 242 hotels and resorts in Asia Pacific, comprising more than 38,050 keys across seven brands. By focusing on the world’s fastest–growing markets, including China, India and South East Asia, we are introducing international accommodation and facilities to a new generation of affluent Asian travellers. By 2022, we expect to have tripled our Asia Pacific portfolio. As the world’s largest travel market, China will play a transformative role in Radisson Hotel Group’s global

62 HM The Business of Accommodation

Radisson Blu Resort Lake Tekapo will be among Radisson’s first hotels in NZ expansion strategy. We intend to

launch at least 1,000 new properties in China in the coming years, covering a full spectrum of first, second and third–tier cities, resort destinations and other strategic locations. South Asia also holds outstanding opportunities; as one of the most well–established international hotel companies in India, Radisson Hotel Group will continue to leverage our first–mover advantage and build upon strong local partnerships. South East Asia and the Pacific is home to many dynamic and desirable destinations. Radisson Hotel Group will continue to target key markets including Vietnam, Thailand, Indonesia and the Philippines, as well as Australia and New Zealand. With two of the world’s largest outbound markets – China and India – on the doorstep, as well as growing domestic demand and a proliferation of air links, there is still considerable scope for growth. Underpinning our growth will be our relationship with Jin Jiang International. Together we are now the world’s second largest hotel group in terms of inventory and have the largest pipeline in Asia Pacific, totalling more than 391,000 rooms. Our combined loyalty program totals around 170 million members, which presents huge opportunities. We also plan to use the latest technology to enhance our business. The recent launch of EMMA, Radisson Hotel Group’s advanced new technology platform, will enable us to integrate our global operations and harness the power of big data. This will become critically important in the coming years, as personalisation drives customer satisfaction and places guests back at the heart of hospitality. In 2020 and beyond, Radisson Hotel Group will continue to strive for operational excellence, creating distinctive and innovative brand concepts that add value to our guests, owners and other stakeholders. Most importantly, we will always strive to have a positive impact on our destinations, supporting local communities in terms of job creation, economic stimulation and CSR initiatives. The future is bright.

ASIA PACIFIC LEADERS

Joon Aun Ooi

President and Managing Director, SEAPR, Wyndham Hotels & Resorts In South East Asia and the Pacific Rim (SEAPR), there are many reasons to be optimistic.

coming years. We also plan to double our portfolio in Thailand with exciting new openings like the Wyndham Grand Nai Harn Beach Phuket this year. Over in Vietnam, where we operate just three hotels today, we expect to add more than 10,000 rooms, including the regional debut of the Dolce Hotels & Resorts by Wyndham brand. There are challenges on the horizon however; as previously mentioned, an uncertain economic outlook – overshadowed by the trade war between China and the US – continues to cast doubt over the world. We also need to hope that the current unrest in the Middle East does not escalate further and that Australia manages to recover from its terrible bushfires. Within the industry, we need to monitor the impact of so–called 'disruptors' and the rise of the big tech giants like Google, Amazon and Facebook, which will have a major impact on the way people search for and book travel in the coming years. We will continue to develop our own smart solutions and innovations with the aim of creating seamless guest experiences and drive operational improvements to benefit our partners and the communities in which we operate. Last year was a watershed year for Wyndham Hotels & Resorts in SEAPR, and we look forward to continuing our positive momentum in 2020.

AS WE ENTER 2020, Wyndham Hotels & Resorts can look back on 2019 with a lot of pride and look forward to the new year with a great deal of confidence. This is one of the world’s fastest–growing regions for international tourism and home to many of the The Presidential world’s most exciting emerging economies. The SEAPR Suite at Wyndham region also boasts one of the highest densities of resort Grand Yangon destinations which will continue to bolster the supply of hotel and resort constructions. Importantly, destinations in SEAPR are on the doorstep of the world’s largest and most dynamic outbound tourism markets, including China and India, which will continue to fuel tourism in the region for many years to come. For Wyndham Hotels & Resorts, this landscape is creating outstanding opportunities for growth. Our extensive portfolio of brands enables us to cater for guests in any sector of the market, from economy to luxury. Our development team has been busy in SEAPR, introducing exceptional new hotels and resorts into many exciting emerging markets, while also bolstering our position in key destinations. We celebrated the milestone of our 150th Joon Aun Ooi, Wyndham Hotels & Resorts Wyndham Grand Yangon Lobby Bar hotel in SEAPR in 2019, which means that we have now more than doubled our portfolio over the last four years. Other major SNAPSHOT: WYNDHAM HOTELS AND RESORTS achievements include the launch of our flagship Number of hotels & rooms (Globally): Over 9,200 hotels, Wyndham brand in Malaysia, the opening of our first approximately 822,000 rooms two hotels in Thailand’s Krabi province and the debut Number of hotels & rooms (South East Asia and Pacific Rim): More than 160 hotels of the Wyndham Garden brand in Vietnam. Days Hotel Number of hotels & rooms (Australia, New Zealand and South Pacific): 58 hotels & Suites by Wyndham Hamilton marked the brand’s Number of employees (Globally / APAC / ANZSP): 16,000+ globally arrival in New Zealand, and Wyndham has also retained Year the company was founded: June 2018 its market–leading position in South Korea, with more Brands in the organisation: 20 brands including Dolce Hotels and Resorts by than 40 hotels now operating throughout the country, Wyndham, Wyndham Grand, Dazzler by Wyndham, Esplendor by Wyndham, including four new openings in 2019 under the Ramada Wyndham, Wyndham Garden, Trademark Collection by Wyndham, TRYP by by Wyndham and Ramada Encore by Wyndham brands. Wyndham, Ramada by Wyndham, Ramada Encore by Wyndham, La Quinta by In the future, we will continue to expand our presence Wyndham, Wingate by Wyndham, Hawthorn Suites by Wyndham, AmericInn across SEAPR. Australia and New Zealand continues by Wyndham, Microtel by Wyndham, Baymont by Wyndham, Days Inn by to be a strong market for us, with over 40 hotels in Wyndham, Howard Johnson by Wyndham, Super 8 by Wyndham operation and many more in the pipeline in key gateway Head office locations: Parsippany, New Jersey; Buenos Aires, Argentina; London, cities like Adelaide, Melbourne and Queenstown. Overall, England; Singapore; and Shanghai, China. we expect to double our portfolio in this region in the

Within the industry, we need to monitor the impact of so–called 'disruptors'.

hotelmanagement.com.au 63

LEADING SUPPLIERS

Tony Pearson

Chief Executive Officer, A.H. Beard In 2020, we expect to see further growth in the export market and increasing awareness of the A.H. Beard brand in Asia. HERE IN AUSTRALIA, a lack of consumer confidence impacts the leisure traveller. Australians are great travellers but if they don’t feel secure financially, this will potentially impact the amount of leisure travellers and put downward pressure on rates and profitability. The adjustable base category will continue to expand as consumers’ awareness of the category grows, along with their understanding of the health benefits of these products. We provide a service beyond product with our sleep education and expertise rising in popularity. The Australian bedding industry in general is being impacted by the U.S. and China trade war. As China bedding manufacturers get shut out of the U.S. market, they are looking for other volume opportunities, and with our proximity to Asia, we are increasingly seeing their inferior quality product being offered into our market. A.H. Beard’s successful Australian heritage has allowed for a prosperous export arm with the brand popular in the Asia market. This has helped us combat high manufacturing costs and allowed us to continue to provide quality products while maintaining local manufacturing and employment for hundreds of Australians and New Zealanders. On a homegrown consumer level, the bedding industry has also seen the introduction of the bed in a box model. We’re firm believers that choosing a bed isn’t a one–size–fits–all approach and we work with our partners to ensure they have a product that is going to best cater to their guests’ needs. We’re fortunate that our customers value our products for their quality and the innovations we continue to offer. We are excited by the continued growth of our hotel sector and by the new travel brands coming to the Australian market. This should drive innovation and continue the push we have seen in recent years for a high–quality offering to the consumer, regardless of what part of the market you operate in. We’re also designing products that go beyond the mattress and help our partners create the perfect sleep environment, using technology to monitor the room environment, adjustable bases that provide health benefits and pillow ranges. We look forward to growing our relationship with the leading hotel operators and groups in the region and continuing to lead our category with innovative, industry–leading technology and service. Wellness is a huge trend that we’ve seen not only in the accommodation industry 64 HM The Business of Accommodation

but in many industries, with exercise, diet and sleep playing a part in this. We see sleep as the new status symbol. Good sleep is a measure of success. Good sleep is

The Beard family has led the way in providing sleep solutions to Australians. Tony Pearson, A.H. Beard

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personal. It’s the most effective thing we can do to reset our brain and body. We work closely with all our customers to deliver a great outcome for everyone, but overwhelmingly our customers speak to two key aspects of their experience dealing with us – commitment and quality of product. The first is the level of commitment we have to our customers, and their guests. We strive to deliver a service experience that is beyond expectation, every time. Our sales team in the field are visiting properties all around the region on a daily basis, fully immersed in the hospitality industry, with our partners trusting their advice, knowledge and relationships. Our internal support teams who manage the production, delivery and other logistics of each and every project are continually innovating their systems to cater for our partners’ needs. The other key element our customers mention is the quality and performance of our product. We’ve been developing sleep solutions for longer than most, with a wide variety of products to suit any type of need. We are positioned as the innovator and leader of our category and are always looking to strengthen that position by offering our customers products that features the most advanced technology and performance available to us. A.H. Beard is a fourth–generation family business with the fifth generation now in the business and the sixth waiting in the wings. The Beard family has led the way in providing sleep solutions to Australians. Their passion for innovation and providing a good night’s sleep has seen the product evolve from handmade straw palliasses and tufted horsehair mattresses in 1899 all the way to the introduction of Australia’s first smart– bed – Sleepsense – in 2017.

LEADING SUPPLIERS

Kylie Maxwell

Executive General Manager, AHS Hospitality With 2020 now underway, it is a good time to review the last 12 months and engage with the opportunities anticipated ahead.

hospitality

BEST–FIT PEOPLE, new hotel pipelines, sustainability and compliance are all on our minds at AHS Hospitality, working alongside both new and existing partners. Travelling into a new year brings a balance of reflection and optimism; I know my own journey this year has been a wide–ranging one, and I feel some genuine foundations have been built for a solid 2020. The opportunity to develop tech platforms and continue to share our systems with our partners is very exciting. AHS will this year implement a broad, digitised HR system with ease of use for all hotel based team members, backed by excellent reporting tools available for hotels. We have commenced looking at the use of robots, especially for heavy manual–handling jobs such as linen movement. We will continue to watch and test these machines as they deliver measurable efficiencies. The last 12 months’ exposure of unlawful treatment of employees has revealed a large number of Australian companies complicit in these acts, making the hotel industry aware and alert. Developing our compliance structures to be stronger and transparent will continue to be a focus for us. We have a very tight labour market, so retaining and developing our teams will be demonstrated in 2020. Our New Zealand teams are also complemented with interns from the International Hotel School in Nepal. As the new pipeline of hotels is built, we see relaxed, cool, shared spaces, eco– friendly amenities and “green cleans” maximised. Guests are staying in the latest smart room designs, made for space efficiency aligned with comfort. Moving our own business to be flexible and change with the 2020 guests’ requirements is imperative, and something we have proudly achieved in the last 12 months. With pressure on ADR and occupancy, we are aware our hotel partners expect efficiency and maximum benefit from us. With integrity and mutually beneficial partnerships, we will deliver on this expectation into another decade.

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Taronga Wildlife Retreat in Sydney

Juliet Ashworth

Partner and Creative Director, Chada Hospitality Design Studio If hotel development is an indicator of the health of an economy, then Australia is in fine fettle.

AS 2020 REVS up, we’re drawing the definitive lines on a hefty design package for hotel project number one– hundred–and–twenty to be produced by this studio. So are we celebrating? With another half dozen hotel projects already on the digital drawing board, there’s no time for resting on our laurels. We’re already conjuring up Australia's next exciting hotel brand, debuting soon. This was not so in the first half of 2019, when I would have declared it almost terminal. Then, practically overnight, the appetite for new projects all but disappeared and the normal flow of proposals passing

over my desk dried to a trickle. It was a scary time for architects, designers and suppliers. We scratched our heads – blaming the slow–down of the Chinese economy, global trade wars and a pending change of Federal government. Then, with the general election behind us, on went the tap, the phone ran hot and once again we were riding a wave of fantastic projects. I don’t think there has been a more exciting time to be involved in hospitality design and that’s from a practice which has been leading its field for just shy of 40 years, while remaining at the top of its game. We’re at the pointy end of fashion, lifestyle and technology trends and the ability to adapt and, more importantly, to lead, is imperative. I think that’s the secret of success in hospitality, whether it be in design, as a developer, or as operators. We set the benchmark for so much that is evolving in corporate, retail and residential design. Success for us is also not being pigeon–holed; we get to do the small boutique hotels that cause disruption and create a whole new competitive set, as well as the impressive 600–room behemoths that take years of our lives to conceive and draw, to eventually become impressive landmarks in our cities.

66 HM The Business of Accommodation

I don’t think there has been a more exciting time to be involved in hospitality design. Juliet Ashworth, Chada Hospitality Design Studio

We’re seeing the big established brands going in two diverse directions – either taking an energetic approach to individualism to provide a truly local experience to their guests, or the exact opposite. This second strategy fortunately hasn’t yet come to our shores but in the US and to a lesser degree in Europe, there’s a homogenisation of design being orchestrated by some major luxury brands whereby they’re carbon– copying guestrooms and replicating them wherever a hotel is located. By centralising the design, there are obvious cost savings especially when global deals are done with preferred suppliers. This is not a world we as designers want to operate in. At a time when creativity in hospitality has rarely been higher, when visionary owners are taking a chance on more ambitious concepts, and the travelling public has never been keener to embrace the fresh, the authentic and the personal, it seems a short–sighted approach. Here at Chada, this isn’t something we are giving too much thought to. The Wildlife Retreat at Taronga, which we completed at the end of 2019, has garnered much praise and we’re busy working on a delightful 50–room resort on the island of Lifou, New Caledonia, two resorts in Fiji, an exciting new–brand city hotel in Sydney and a gleaming luxury tower in Southbank Melbourne, to mention a few. Despite the gloomy economic forecasts, the world of hotel development appears highly buoyant.

LEADING SUPPLIERS

Michael Benikos Managing Director, Assa Abloy Global Solutions Australia

One area that has benefited from the rise of cloud technology is the issue of ensuring hotel staff safety.

AS WE ENTER another year with an array of new market and trend predictions for the hospitality industry, the one ongoing constant is the fact that technology is continuing to evolve at an ever faster pace to meet the growing needs of guests and hoteliers alike. This is especially true for the security market where the need to keep up with broadening and increasingly creative threats is critical in maintaining a safe environment while preserving a hotel’s reputation. One of the latest innovations that is providing hotels with far greater control over their security access operations is the growing availability of cloud–based access management systems. As a fully online platform, cloud–based access management can vitally provide hotel staff with instant, secure and real–time access to systems from virtually anywhere in the world and at any time. With security threats increasingly arising with little to no warning, the ability for staff to be able to receive notice of a threat and take immediate action regardless of where they are physically located can prove vital in mitigating or even eliminating subsequent damage. Another area that has benefited from the rise of cloud technology is the issue of ensuring hotel staff safety. With housekeeping employees at risk of assault due to often working in areas alone, advanced cloud–based personal alert devices are providing a much–needed layer of protection by allowing staff to instantly transmit an alert with precise location details should they feel threatened at any moment. Using Bluetooth Low Energy (BLE) gateways to receive and transmit distress signals to response personnel, the most advanced solutions also offer scalability and can further provide an array of operations–enhancing abilities such as the real–time tracking of amenities and proximity messaging to guests based on their specific on–site location. As the industry continues to adapt to address new security needs, the presence of cloud–based access management technologies will only grow as we look to 2020.

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LEADING SUPPLIERS

Daniel Gardiner

Director – Product & Strategy, Foxtel When it comes to entertainment, the options appear limitless.

Foxtel provides quick access to the world’s biggest events

ACROSS AUSTRALIA, OUR home entertainment experience is almost unrecognisable today from what it was 20 years ago. From our couch, we can connect to global events like never before, in real time, high definition and on multiple screens. When it comes to entertainment, the options appear limitless and easily accessed by just a few clicks. Across all demographics and in all regions, the demand for live and streaming content is booming. Whilst this technology revolution has transformed our experiences at home, the hotel in–room entertainment experience hasn't changed in 20 years. For hotels, it has been difficult to provide everything the guest needs and wants on a technology platform that also delivers on what owners and operators need. With technology changing so quickly and consumer content interests broader than ever, there’s no shortage of opinions on the right way forward. For anyone that has attended the annual international technology shows, you can easily get lost in the sea of new possibilities. Attending HITEC in the USA and IBC in Amsterdam each year is a good way to stay connected to global counterparts and informed of which innovations are making the leap from “technobabble hype” to viable market–ready solutions that enhance guest experience. At Foxtel, we've searched worldwide and engaged operators, suppliers and hoteliers to build our roadmap for the future. Through this process, we identified some guiding principles that shaped our approach. Firstly, hotels should avoid the bleeding edge of technology to eliminate the risk and heavy expense of reliability, integration and user adoption issues. Technology needs to run itself with flexible architecture that stays in step with consumer trends and operator requirements. Further, guests are looking to mirror or exceed their “at home” experience, including local and global live HD linear channels, easy to use Video On Demand and an option to cast their own apps.

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Although there is an appetite for feature rich solutions, the user experience needs to be universally simple and crucial for operators is the accessibility of local support (or preferably self–service tools). The cloud provides new opportunities to reduce the onsite hardware footprint and the associated cost of the maintenance / upgrade cycle. Finally, commercial technology solutions need to be proven at scale and supported for the long term. In 2020, it’s not business as usual at Foxtel. We have been working closely with our customers to evolve

We have been working closely with our customers to evolve our core technology. Daniel Gardiner, Foxtel our core technology, how we do business with you and provide a new benchmark in the guest engagement experience. We have collaborated with global technology leaders to bring the best–in–class commercial grade cloud–based guest engagement solution to Australia. It’s an infrastructure–light solution that is already proven in hundreds of thousands of hotel rooms across North America. Designed to provide owners and operators the tools they need to engage their guests, the platform is flexible, scalable, customisable and has built–in smarts to make operations easy. Supported by global technology experts and the full Foxtel machine, the end–to–end service is maintained ongoing with lifetime upgrades. We are at the end of our comprehensive integration and testing cycle and have 142 properties that have requested priority site surveys for installation. Throughout this year we will launch further feature enhancements to the platform, including 4K UHD, live TV pause and a few other surprises. We are all excited to stay at one of our launch partner properties and enjoy the new experience. Personally, I am most excited about delivering our free–to–view video on demand catalogue of over 20,000 movies and television shows. Wishing all our customers a prosperous 2020. We can’t wait to take you on this journey.

LEADING SUPPLIERS

THE IMF FORECASTS that Australia’s real GDP will grow by an average rate of 2.7% per year from 2020 to 2024. This projected growth rate is the highest among major advanced economies and while I feel the outlook for the Australian hospitality industry will be quite positive in major capital cities, regional centres along the east coast of Australia and in South Australia could struggle in the aftermath of the terrible bushfires. Keeping up with the rapid pace of technology will be a major challenge for all hotels in the next few years. Sustainable solutions, virtual and augmented reality, video streaming, mobile check–in, cashless payment systems, hotel apps, data security and in– room entertainment options are all areas that will see exponential growth and application. Smaller and boutique hotels will find it a challenge to decide on which technology to invest in and with integration not being standard across our industry, which supplier to contract. The ever–increasing expectation of hotel guests and in particular ‘MilleXZials’ demand for a personalised experience necessitates all levels of hotels to have a broader range of technology available. Often, guests expect these services to be free or at very little cost to them. There is a financial benefit, once the greatest mind shift being faced by traditional hotels is overcome, that being the current trend of “Cord Cutting”. We all now travel with our own content and expect the accommodation sector to provide transparent, agnostic systems and solutions to facilitate the trend. Virtual reality, voice control and mobile integration in the hotel room are still in their infant shoes in our region. By combining these solutions and integrating them into the hotel room and marketing teams, we can immerse the guest in a more personal and emotional interactive experiences.

Heinrich Saayman

CEO, HoneyBadger Technologies Keeping up with the rapid pace of technology will be a major challenge for all hotels in the next few years.

Smaller and boutique hotels will find it a challenge to decide on which technology to invest in. Heinrich Saayman, HoneyBadger Technologies

Sustainability is now a key recognition factor with guests and reducing operating costs provides a compelling incentive for hoteliers to invest in better operational procedures and emerging environmental technologies. The ‘smart room’ can also contribute hugely to the sustainability targets of the property. Controlling the room temperature, TV and blinds to save energy is a reality and by using Bluetooth and WiFi proximity, we are still able to deliver comfort to the guest’s expectation. HoneyBadger’s main focus for the coming 12 months will be delivering more integrated solutions through working with our great partners and industry leaders. We have built a fantastic team in Australasia all very knowledgeable in their fields of expertise, all relationship focused and who strive to ‘SIMPLIFI’ technology. The combination of technologies as a single integrated solution with one point of control will continue to be a great deciding factor when choosing technology for your hotel.

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LEADING SUPPLIERS

David Elia

Chief Executive Officer, Hostplus As a fund we’re excited by the future and we’re looking forward to introducing innovative new products.

operational processes and practices. The legislative updates introduced throughout the year were designed to improve retirement outcomes for members

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Looking ahead, it’s a safe bet 2020 will present a mix of highs and lows across the tourism and hospitality sector.

70 HM The Business of Accommodation

lbourne , Me

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investment results, recognised by leading independent researchers, and opened the door to a new breed of Hostplus investor with our Self–Managed Invest platform. Further, we cemented our position as a leading investor in both venture capital and emerging technology, punching well above our weight to be the second largest backer in all of Australia, contributing more than $1.3 billion to groundbreaking projects at home and abroad. All the while we have continued to foster the incredible talent and dedication found in the Australian Hospitality scene through our annual awards and scholarship program. In June 2019, we opened the door to the Self–Managed Super Fund (SMSF) market with the Hostplus Self– Managed Invest (SMI) platform. Thanks to our unique structure, the strength and knowhow of the Hostplus investments team are now available to SMSF trustees and others. Hostplus SMI enables eligible investors to pool their funds with Hostplus, accessing some of our most popular, and high–performing investments including our highly regarded Balanced option. Early response to SMI has been overwhelmingly positive with a rapid influx of investors excited to take advantage of the new platform. Our leadership in the space has also been well recognised, taking out innovation awards from both SuperRatings and Money Magazine during their 2019 presentations. The year was not without its challenges, however. The Royal Commission gave us cause to reflect and improve on some of our

YEAR 2019 WAS a tremendous year for Hostplus where we continued to deliver outstanding long–term

David Elia, Hostplus

Balter Brewery on the Gold Coast

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of all funds, a measure we were fully supportive of. Fee erosion from unwanted or unnecessary insurance cover is a significant issue that impacts low–balance members, particularly those new to the workforce, and in seasonal and casual employment, arrangements frequently found in the hospitality and tourism sectors. The ‘Putting Members Interests First’ and ‘Protecting Your Super’ legislation specifically target this issue and will benefit a significant portion of the population, be they Hostplus members or members of other funds. Looking ahead, it’s a safe bet 2020 will present a mix of highs and lows across the tourism and hospitality sector. Changing trends, emerging markets and shifting desires are all but guaranteed. It’s important then that operators and staff are able to keep abreast of the developments as they come so as to capitalise on any opportunities that may present. From a super standpoint, it’s important that employers remain mindful of their obligations to staff, helping to ensure their financial wellbeing in retirement while avoiding penalties from the ATO. Our dedicated Employer Services Team are on hand when you need them for any enquiries you may have about your super administration. As a fund, we’re excited by the future and are looking forward to introducing innovative new products, a fresh suite of digital tools and refining our service offering even further. As always, we’ll be sharing the details with our employer networks as soon as they’re available as we strive to bring more to you and your teams every Sirromet Winery s at ,Q s e single day. ue itr en a w

LEADING SUPPLIERS

Mark Sant

Partner – Workplace Relations, HFW We kick off 2020 with many industrial relations issues confronting the hospitality sector.

THE COALITION GOVERNMENT has promised a review of modern awards to reduce complexity, principally for small business operators, but things might not get easier. We expect changes to be marginal. The cracks and complexities in old, legacy or ‘zombie’ enterprise agreements are starting to show. They are no longer fit for purpose and some employers are keen to move back to the modern awards. The question is – how to make the transition? The recent class actions brought by casual employees seeking permanent entitlements cannot be ignored in a sector reliant on casuals. While planned changes to annualised salaried arrangements in modern awards operating in the sector have been deferred, the changes, once implemented, will make the use of salary arrangements near impossible to administer without expensive compliance systems and resources. We expect these changes will ultimately disadvantage both employers and employees as the sector transitions away from salary arrangements for a vast majority of its workforce. The one redeeming quality is that managerial salary arrangements in the hospitality industry will remain unchanged following a successful last–minute bid by the Australian Industry Group. In other movements, a recent decision of the Federal Court has left the sector in a cloud of uncertainty about the method of calculating and providing for leave accruals. If you are wrong, it could cost you. A High Court appeal of this decision is pending. The rush to time recording systems using biometric data has left some employers exposed to claims for underpayments as adjustments are made to this data. A recent operation by Australian Border Force targeting compliance by Australian business sponsors with 457 visa holders (particularly cooks) has lifted the lid on non– compliance brought about mostly by poor systems and lack of oversight. Don’t be complacent – you need to be ahead of the pack in 2020 or risk being the next test case.

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LEADING SUPPLIERS

Brendan O’Farrell

Chief Executive Officer, Intrust Super As always, the hotel industry in Australia continues to grow in leaps and bounds. Every week I read about new plans and developments – over 300 new or upgraded hotels are scheduled to open between 2019 and 2025.

SO MANY BOUTIQUE hotels and luxury brands are beginning to enter the Australian market. These hotels are designed for tourists looking for authentic travel experiences, offering flexibility in service and spaces that provide a home away from home. It’s great to see one– of–a–kind accommodation options are becoming more popular. I’ve no doubt there will be more developments in this space in 2020, bringing additional opportunities to hospitality workers. For Intrust Super, a number of legislative changes and Government inquiries saw us face many challenges in 2019. The Productivity Commission’s inquiry into superannuation published its final report Brendan O’Farrell, Intrust Super in January and of course, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry also released its recommendations earlier this year. These recommendations highlighted that there are some areas in major need of improvement in the superannuation industry. I was pleased to see a real increase in engagement with super across the country as a result. Australians are notoriously disengaged with their retirement savings, yet so many demonstrated their feelings on the Commission’s revelations by shifting their super to industry funds like Intrust Super. Following these inquiries, several legislative changes passed through Parliament. Positive improvements are always a good thing and placing a stronger framework around superannuation should see better member financial outcomes. So implementing these changes within tight deadlines became a key focus for us throughout the year. We saw the landscape of insurance in superannuation change completely in 2019, and I’m sure HM readers would have seen many of their staff members affected. Since 1 July 2019, super members who have not contributed to, or rolled over funds into, their accounts for 16 consecutive months could lose any default insurance attached to their account. Further changes will come into effect in April 2020, preventing anyone under the age of 25 and

SuperCents collects the spare change from a member’s everyday transactions and transfers it straight into their super account.

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members with an account balance of less than $6,000 from receiving default insurance. These changes were put in place to help prevent Australians’ retirement savings from being eroded. Premiums for insurance cover are taken from members’ super accounts and can therefore reduce their savings if they are not contributing to it. At the same time, the loss of insurance could have a significant financial impact on many of our members if they should suffer from an unexpected illness or injury. It was critical that more education and information about these insurance changes was distributed to members. Casual workers, who make up much of the accommodation industry, could be particularly impacted, as they have no access to paid leave. Our priority was to ensure our members remained fully informed about what was happening to their insurance cover, so they could decide what is best for their situation. If any staff have received communications about their insurance, we would encourage them to take the time to read and understand the implications of the loss of insurance. Our newly upgraded online financial advice service, Super Blueprint, proved to be a great tool to help members with these legislative changes. Super Blueprint is a free tool that members can use online to generate some simple financial advice. Members receive a personalised financial plan that covers insurance recommendations, contribution strategies, investment options and retirement projections. We designed this service through our financial planning business, Intrust360°. Our Relationship Managers have been sharing the product with accommodation staff whose insurance may have been impacted. Another product well–received by our accommodation partners is our new app, SuperCents. The app collects the spare change from a member’s everyday transactions and transfers it straight into their super account. It was great to see SuperCents was nominated as a finalist for SuperRatings’ Best New Innovation award for 2020. The response from our members in the accommodation industry, who don’t always have the time or the spare finances to think about super contributions, has been great. Already the average user is contributing $15 each month. I’m sure that number will continue to grow as more members take up SuperCents in the new year. You can find more information about SuperCents and Super Blueprint at intrust.com.au. In 2020, our friendly team members will continue to deliver the best possible service and financial outcomes to members and work with our business partners to ensure their needs are met. We’re creating new ways to engage with our membership base and provide more face–to–face service at workplaces while minimising disruption to businesses. With many new service options like our ‘Super Pop–up’ financial wellness program, ‘Super Kiosks’, ‘Super Made to Order’ and ‘Super Health Checks’, our business partners will have many new choices to maximise their staff’s engagement with super and improve their retirement outcomes.

LEADING SUPPLIERS

Jerome Casteigt General Manager, Business and Hospitality, Laureate Australia As the hotel industry continues to evolve, so do we.

AS WE WELCOME in 2020, Hotel Management Educators must ask themselves some challenging questions. Are we paying enough attention to current industry trends? And more importantly, are we adapting and teaching to them? This year, you will see Blue Mountains International Hotel Management School at Torrens University Australia (BMIHMS) emerge with a new brand identity – a totally fresh look. However, our evolution goes deeper. In order to meet the demands of an ever–changing industry, academic and practical programs available to students must also strategically align with today’s digital–first hospitality environment. We see the trend that students demand to upskill where they want, and how they want. To meet this need, we have pioneered a learning delivery model tailored to suit students through modular short courses that can be stacked up to an MBA qualification. People skills matter. We must balance embracing modern technology with upholding traditional standards. As society moves more and more towards Artificial Intelligence, skills set us apart from machines. After all, nothing replaces people. Sustainability and accountability are becoming centric to our industry. At BMIHMS, academics are involved in world–class research that is contributing to industry priorities, and we’ve worked with students to implement strategies such as using more locally–sourced products, expanding our campus garden to grow our own produce and minimising waste, particularly by eliminating single–use plastic. When you put the right processes and structures in place, this enables you to adapt and evolve at speed. We will continue to deliver hotel management graduates equipped with the knowledge and skills required for the innovative workplaces of today. In these times of exponential change, we are setting up our students to work in new environments – to be committed to student success is to be committed to a bright future in hotel management.

Focus on your guests. We’ll lend you a hand with your employees.

Workplace Relations Lawyers | Hotel Industry Experts your on-line gateway to the workplace advisors of choice for Australia’s leading hotel operators

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Flying Fish restaurant, The Star Sydney

Paul Kelly

Director, Paul Kelly Design We are all about venue success and continue to develop new strategies to achieve this goal.

WE ARE ALWAYS looking for opportunities to diversify markets and see ourselves as being the catalyst for a lot of this change in Australia. We have opened 600 venues across the region and every outlet has had a point of difference to enhance its opportunity to succeed. The hardest nut to crack in the food and beverage marketplace is in the accommodation sector. Very rarely is there a venue in a hotel that makes a profit or is considered the ‘go to’ place. For a venue to succeed in a hotel (apart from the buffet), it needs to, in a way, not be associated with the hotel. Hotel restaurants around the world have a stigma as not being the ‘real deal’ or not where the locals would go. Many guests to hotels would only eat at the restaurant on their first night and then would consider room service if again requiring an in–house meal experience. Bars are a different story, as many hotel lobby bars have superior service, space and guests don’t feel like they have to rush, hence why a lot of business meetings occur in hotel Paul Kelly, Paul Kelly Design lobbies (at a cost!!).

For a venue to succeed in a hotel (apart from the buffet), it needs to, in a way, not be associated with the Hotel. 74 HM The Business of Accommodation

We believe ‘success brings success’ as our experience over the past 20–plus years has shown and are applying this to hotel food and beverage. Hotels enjoy great locations with iconic addresses, so why not bring the local food and beverage outlets into the venues and make the fit–out and rental deals amazing so the venues actually work as stand–alone? It makes sense as people don’t walk past a hotel and think ‘I might stay here tonight’ but they will for coffee, drink or great local fare. This increases the venue’s overall perception in the marketplace, allowing for an increase in room rate as this is a place you want to stay because it is in a successful model. Success brings success! We are applying this strategy towards a hotel brand called ‘Imagine’ in Auckland this year, as it is a model we use in the commercial food and beverage sector throughout Australia with Walker Corporation and GPT which is working very well. We are all about venue success and continue to develop new strategies to achieve this goal. Looking forward to 2020, we are getting in early on developments, making sure we can achieve the independent feel our venues are after, while making the hotel feel like it has all the required facilities that guests expect.

LEADING SUPPLIERS

Sam Khalef

Managing Director, MYBOS Communication and organisation is key to keeping up with rivals in such an in–demand industry.

THE FUTURE OF hotel facility management is undoubtedly moving towards cloud based solutions, with MYBOS being a leader in the field. The aim of these solutions has been creating user–friendly, competitively priced systems accessible for any hotel looking to improve their internal systems. Built from the ground up with the help of Australian managers, MYBOS began by aiding general facility management, before specialising in hotel facility management with its uniquely scalable software. With the likes of Accor harnessing the software’s innovative approach to hotel management processes, it is clear that not only is MYBOS immensely powerful, it’s also effortlessly simple in both its design and objectives. Australia has seen an overwhelming boom in hotel building development, with an 8.4% growth in hotel rooms since 2016. With this in mind, it’s important to understand the value of having a portal that tracks. It simplifies everyday hotel management tasks for overall improved company performance. Communication and organisation is key to keeping up with rivals in such an in–demand industry, and it is MYBOS’ superior operating solutions on desktop and mobile that can help you streamline your processes. With a range of features, MYBOS has been praised for its advanced asset register, capturing building assets via photograph, location and warranty. Its simple room inspection feature is another element of the software that sets it apart from competitors. This allows hotel management to easily keep track of all routine inspections within the hotel from the ease of their mobile phone. The shift from traditional paper–based hotel operations to cloud–based leaves missed opportunities for preventative maintenance or routine inspections behind. This new approach to hotel management is effective in ensuring communication between all relevant parties, whether it be management, staff, customers or contractors is recorded methodically and accurately, and with considerably less room for error.

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

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LEADING SUPPLIERS Anthony Raiteri (right) with Marco Gugliucciello, Sealy Asia Pacific Business Development Manager.

Antony Raiteri

National Commercial Accounts Manager, Sealy of Australia October last year saw Sealy proudly celebrating the milestone of 50 years of Posturepedic in Australia.

FROM THE PERSPECTIVE of the leading bedding supplier to the Australian Accommodation Industry, all hotel groups have a responsibility to support local businesses who have invested in Australia to maintain world class local manufacturing. This responsibility goes well beyond the need to chase the lowest price for a product even if it’s shipped halfway across the world. Sealy is well placed providing a secure package that is consistent of long–standing customer relationships. Our focus continues to be on developing innovative, engineered quality product whilst still delivering on a promise of beautifully comfortable, durable and reliable beds coupled with a commitment to service. October last year saw Sealy proudly celebrate the milestone of 50 years of Posturepedic in Australia. It was in October 1969 when Sealy Posturepedic was introduced to Australia for the very first time and today, Sealy continues to grow and go from strength to strength. Sealy today has the industry’s and quite possibly the world’s 76 HM The Business of Accommodation

The Australian accommodation industry has matured greatly over the past ten years. Antony Raiteri, Sealy of Australia

best lead times as a result of the investment we have made in local manufacturing. Coupled with Australia’s most sophisticated bedding research and development facility in Brisbane, we ensure innovation and quality are superior to everything else in the market. The new Sealy factory at Villawood in Sydney is moving ever closer to completion with an official opening in February 2020. It will be Sealy’s biggest site in Australia which will double our manufacturing capacity in NSW. This completes a five–year program where we have built new sites or refurbished existing sites in Melbourne, Brisbane, Perth, Adelaide and New Zealand. We have taken the bold step to invest locally and we stand ahead of all others in our endeavours to maintain strong local manufacturing across Australia and NZ. The Australian accommodation industry has matured greatly over the past ten years and become aware of its responsibilities. To this end, it has put in place numerous performance indicators, reporting functions and processes to monitor these areas. Leading manufacturers have responded to the needs of the industry and have invested into clean, recyclable and renewable technologies so that we can provide goods that are both competitively priced and manufactured in an environmentally responsible way. This has also delivered one great benefit which has been overlooked by many – lead times! With continued focus on strong customer relationships, exciting projects and innovative product, Sealy has a lot to look forward to in 2020.

LEADING OWNERS

Terry Ngan Director – Hotel Operations, C.P. Group New Zealand should benefit from the increased airline capacity from North American and Australia.

THE AUCKLAND HOTEL market, like Sydney and Melbourne, is now facing the aftermath of strong occupancy and room rate growth ongoing since 2013 and growing pains in the next three years with 14 hotels opening (comprising 2,000 rooms) under construction in the Auckland CBD. Domestic and overseas visitors to New Zealand should show positive growth in 2020 due

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and Auckland Council’s targeted rate imposed on hotel and serviced apartment owners in the 2017–2018 year, which significantly increased property taxes. Hotel owners are currently involved in a court case against Auckland Council, the outcome of which is due shortly. There is uncertainty on the potential impact of the Australian bushfires on visitor arrivals from Australia

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visas and immigration imposed by Central Government in recent years. The 3,500 seat International Convention Centre, due to open in 2020 was to be a major demand driver for winter and something hotels were eagerly looking forward to but was unfortunately delayed by a major fire in October 2019, with opening now pushed back beyond 2021. Like in Australia’s gateways, Auckland hotel operators are nervous about the 13 new hotels under construction and two openings in 2020. This is resulting in discounting to maintain market share, which is concerning to hotel owners who want greater destination marketing at national and city levels to offset the negative impact of the international visitor levy introduced in November 2019

Airbnb continues to grow at the expense of hotels but increased regulation is helping to level the playing field.

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to the strong GDP economic outlook of 2.3% for 2020 (same as 2019) and international visitors which rose 2.1% in 2019. Key will be the Australian market – the largest inbound with 1.5 million or 38% of total inbound, which grew 3.3% in 2019, China with 409,000 visitors, which fell 9%, and USA with 366,000 travellers, up 6%. New Zealand will continue to face wage pressure in 2020 following Central Government implementing the “living wage” in 2016 whereby hourly wage rates will increase gradually from $16 MGallery b sor yS per hour in 2017 to $20 in 2021, an ind o W annual increase of 7%. Employers also face continuing restrictions on work

and other long–haul markets, especially China and USA, many of whom visit Australia and NZ together. APEC in Auckland in November 2021 will still proceed despite the opening delay of the new Convention Centre. The new All Blacks and Weta visitor attractions opening in Auckland in 2020, along with the increased international events focus of ATEED, will add much needed impetus to fill the new hotels, particularly in the low winter season. Airbnb continues to grow at the expense of hotels but increased regulation by government authorities, including the targeted rate in Auckland, is helping to level the playing field. On the other hand, serviced apartment owners in Auckland continue to withdraw from hotel management pools due to the targeted rate affecting investor returns since 2017 and will look to let out via Airbnb or long–term residential tenants. The New Zealand Hotel Owners Association (NZHOA) was established in November 2019 by large and small hotel owners to be a dedicated voice of hotel owners – the largest private sector investor of tourism infrastructure in New Zealand. One of the initial objectives of NZHOA will be helping the hotel industry recommend equitable funding mechanisms for tourism infrastructure and gain support from central and local governments. Hotel owners will take the opportunity of lower occupancies and revenues in the next three years to refurbish their hotels to standards competitive with the new hotels. Lower interest rates will assist in funding costs for refurbishments, but labour and material costs Terry Ngan, C.P. Group continue to remain high due to significant long–term infrastructure projects in many parts of NZ. Owners will be hoping the operators of new hotels opening in 2020 do not undertake unnecessary room rate discounting and play to the strength of their new hotel’s brand. They will also be looking for increased destination marketing by Tourism New Zealand and regional tourism organisations like ATEED to return visitor arrivals into New Zealand to high levels previously enjoyed. Queenstown authorities are debating the introduction of a ‘bed tax’

SNAPSHOT: C.P. GROUP Number of hotels and rooms: 21 hotels and 2,548 rooms Hotels, brands and locations: SO, Sofitel, Pullman, MGallery, Grand Mercure, Novotel, Mercure, Ibis. Locations: Auckland, Rotorua, Wellington, Picton, Queenstown, Dunedin. Number of employees: 2,000 Year the company was founded: 1990

hotelmanagement.com.au 77

LEADING OWNERS

Dr Jerry Schwartz

Director, Schwartz Family Company We expect demand to remain steady in 2020, though bushfires and drought haven’t been the best way to start.

I probably don’t need to remind everyone, but our industry does operate in a cyclical fashion. Dr Jerry Schwartz, Schwartz Family Company

YEAR 2019 TURNED out to be a less–than–stellar year for the hotel industry, with politics and economic uncertainty clearly impacting major cities, while a vast injection of new supply – both official and unregulated – meant that returns on investment were muted at best. We expect demand to remain steady in 2020, though bushfires and drought haven’t been the best way to start. We believe that business travel will remain on par or slightly improve given that there should be – technically speaking – two years of settled Federal government. With stock markets around the world at near record levels, interest rates at historic lows, and both the USA– China trade talks and Brexit looking more manageable, you would think that all the ingredients were in place to stimulate economic growth, which would then flow on to corporate, MICE and leisure travel. However, the old economic textbook theories rarely apply these days and there remains an over–arching level of uncertainty. Domestic leisure will really be pivotal for our industry, and it will be vital that destinations continue to provide compelling reasons for Australians to travel locally, especially given the impact of drought and fires on regional locations. There’s no doubt that most Australian destinations required a major injection of new rooms, and obviously we benefited from the opening of Sofitel Sydney Darling Harbour in 2017, well ahead of the competition. With the ICC next door and international and domestic tourism growing, it was a natural.

Hilton Surfers Paradise was Schwartz’s first Gold Coast hotel

Unfortunately, though, there are simply too many new hotels that do not fulfil the basic principles of demand and supply. How are these investors going to make money in the short term, especially when unregulated quasi–hotel style accommodation is allowed to flourish? Mind you, as I demonstrated with my purchase of the Surfers Paradise Hilton and Paradise Resort Gold Coast, someone else’s poor decisions can be my gain! Given the massive increase in supply and flat or declining rates at hotels, the issue of unregulated accommodation really needs to be taken seriously. I think the world has finally woken up to find that the initial aims of the short–term disruptors – to genuinely share residents accommodation – isn’t how the sector has evolved. We are not arguing against competition, but obviously it shouldn’t be at the expense of substantial investors who play by the rules and create significant economic value to the wider community. We are looking for more precise and enforceable legislation in 2020. The opening of so many new hotels over the past three years (with more to come) makes investing in existing product even more critical. I never stop reinvesting. Major projects in this year’s CapEx schedule include the refurbishment of all 517 rooms at Mercure Sydney, costing some $15 million, and the addition of a new conference centre and large poolside F&B venue at the Hilton Surfers Paradise. We are also planning a major refurbishment and expansion of facilities at the Paradise Resort Gold Coast after we take over in February. With the hotel and tourism industries investing so heavily in new and upgraded product, the onus is now on tourism authorities to ensure they keep providing innovative reasons for people to visit (and continually return to) their destinations. This will encourage airlines to add services to major gateway cities as well as regional areas such as the Hunter Valley, where increased direct air access could substantially boost the industry. I probably don’t need to remind everyone, but our industry does operate in a cyclical fashion. It has always been the way. I think the public has never had access to such a high level of accommodation, so why would hotels devalue their product unnecessarily by selling rooms at below–market rates? The massive injection of new supply should stimulate increased demand, so rather than panicking, hoteliers should put the emphasis on delivering an outstanding experience.

SNAPSHOT: SCHWARTZ FAMILY COMPANY Number of hotels and rooms: 15 hotels and 4,505 rooms Hotels, brands and locations: Five operators (and brands) – Hilton, Marriott (Four Points), Accor (Sofitel, MGallery, Novotel, Mercure, Ibis), IHG (Crowne Plaza) and Event (Rydges) – in Sydney, Melbourne, Canberra, Newcastle, Hunter Valley, Blue Mountains and the Gold Coast. Number of employees: Up to 5,000+ full–time, part–time and casual, depending on demand, business mix and employee turnover. Year the company was founded: 1973

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Next Hotel Brisbane’s Pool Terrace & Bar

LEADING OWNERS

Paul Salter

Managing Director, Salter Brothers 2020 promises to be a successful year with major hotel relaunches and new hotel development commencements.

SALTER BROTHERS IS one of Australia’s leading investment managers in the hospitality sector. Following another successful capital raise in the second quarter of 2019, we settled on our 7th asset acquisition in our Australian hotel fund, Next Hotel Brisbane, which saw our fund achieve circa $1 billion in asset value – a fantastic milestone. We also completed our refurbishment and relaunch of the voco hotel Gold Coast in early 2019 and substantially completed major

redevelopments and refurbishments of both Crowne Plaza Melbourne and Crowne Plaza Coogee Beach. Leading our hotel relaunch activity for 2020 is Crowne Plaza Melbourne. We will relaunch this riverfront hotel to the market in June with an additional 40 guestrooms and a new dedicated focus placed on attracting events, conferences, meetings and exhibitions to utilise a variety of new spaces, following the completion of its multimillion–dollar redesign. The hotel has been redeveloped to now include a purpose–built events centre, 10 new flexible meeting spaces and new event dining concepts, with all 430 guest rooms also having been renovated. With a new–look lobby and arrival experience and informal and formal co–working spaces which Paul Salter, Salter Brothers can be booked by the hour or the day for private meetings, workshops or dining, our new offering aims to capture the evolving trends of our customers. This story is also very similar for our Crowne Plaza Coogee Beach hotel which will be relaunched in two phases; 1st March with most facilities available and then finally on 1st October, with the new infinity edge pool and pool club with unmatched 180 degree views over the Pacific Ocean. Also new in 2020 will be the commencement of our dedicated Restaurant and Bars team, which will operate

Major focuses for the Group in 2020 include furthering our sustainability goals and innovations through technology.

our facilities in the relaunched hotels. Headed up by the much celebrated and extremely talented Executive Chef, Matthew Butcher, we are excited to be investing in, creating and operating innovative new hospitality concepts which will provide on–trend experiences for our hotel customers and local communities and distinguish our hotels from competitors. We’ve created

this dedicated team to bring a new approach to operating restaurants and bars (R&B) in hotels in Australia and, along with other owner operators in our sector, will look to reposition hotel R&B experiences to be the first preference for guests. On the development front, we are progressing our planning on new hotel projects in Canberra and Melbourne. Our site in Canberra is adjacent to our currently held Crowne Plaza Canberra hotel, which neighbours the Canberra Convention Centre and Casino. We plan to commence construction by year–end on a Holiday Inn Express hotel and target the select–service accommodation opportunity in this fantastic location. We also expect further growth opportunities may present and we will remain active on further acquisition opportunities where we see value in line with our investment strategy. Some other major focuses for the Group in 2020 include furthering our sustainability goals and innovations through technology, delivering improved digital services for guests and improved margins for the business through automation. We have already achieved advancements in our InterContinental Melbourne hotel where we have successfully deployed the AirService in– room tablet innovation. We believe there is much more to be achieved here, given the hotel industry is behind other sectors in their advancements. We share the view of industry analysts in that we are expecting the markets in 2020 to remain strong, with continued growth in demand for hotel room nights. However, we also anticipate new supply will outpace demand in some markets in 2020 and result in short– term occupancy declines. Again, along with industry analysts’ views, we expect these to recover over time and throughout the period fundamentals will remain positive for investment and investment returns.

SNAPSHOT: SALTER BROTHERS Number of hotels and rooms (Australia): Seven hotels and 2,141 rooms Number of employees: 850 employees Brands: 5 hotel brands (voco, Holiday Inn, Next, InterContinental, Crowne Plaza) Locations: 5 locations across Australia’s eastern seaboard and major capital cities

hotelmanagement.com.au 79

AUSTRALASIAN LEADERS

Simon McGrath Chief Operating Officer, Pacific, Accor

The devastation of the bushfires will no doubt have a negative impact on tourism in Australia in the coming months.

Hoteliers are now competing not just with the typical hospitality players, but also with new players including Google, Amazon, Facebook and Apple. Simon McGrath, Accor

Australian hotel supply has passed the 300,000 room mark AUSTRALIA HAS SOLIDIFIED its appeal as a stable, growing market for global investors and developers, with the country passing the 300,000–room milestone last year and further supply coming in 2020. While this creates challenges, we are confident demand will continue to grow and that this additional supply will be absorbed, as the key markets are trading at very high occupancy levels. Luxury, lifestyle and apartment hotels will dominate growth in the region, but we will never lose focus on our core brands, which continue to resonate with the travelling public. For 2020, delivering revenue growth will depend on creating new income streams and maximising loyalty and distribution. Hoteliers are now competing not just with the typical hospitality players, but also with new players including Google, Amazon, Facebook and Apple, which have realised the potential of the industry and have entered the travel space in a big way. Meanwhile, our customers’ expectations have changed, and they are demanding a wider range of services and experiences. Last year, we opened three hot new Hyde venues on the Gold Coast, Perth and Sydney last year in collaboration with renowned entertainment operators, sbe. Combining a bar, lounge, restaurant and live music venue concept, Hyde serves up carefully curated cocktails and fun food in a playful, cheeky setting that changes throughout the 80 HM The Business of Accommodation

day. From bottomless brunches to live DJs, Hyde delivers an endless summer vibe that reflects each destination. In a service industry such as ours, delivering the art of service from the heart, our people, our ‘Heartists’, are at the core of all that Accor does. We are committed to ensuring our teams stay ahead of the continual changes in our industry. This means delivering training programs to meet new skillsets and creating a framework to future–proof our teams. As an employer of choice in the Pacific, we are dedicated to creating a safe workplace that promotes diversity and inclusion and where people are empowered to deliver service from the heart. We have a responsibility to ensure that the standards of our industry are world–best to encourage tourism growth in the region and Accor Academy leads the way in this. The recent bushfire crisis has shown us how important it is for our industry to drive sensitive conversations around these issues and to push for real change. Tourism, by its very nature, depends on beautiful environments, clean waters and clean air to attract travellers and the world is increasingly looking to our industry to lead the way when it comes to environmental protection. The devastation of the bushfires will no doubt have a negative impact on tourism in Australia in the coming months and we need to come together as an industry to spread the message that we are still open for business and that it is safe to come here. Accor is committed to sheltering those who have lost their homes and to helping rebuild local communities. Our industry has always proven very resilient, but we will need a coordinated approach in 2020 to deliver continued growth in an industry that creates millions of jobs across the region. Over many years, we have seen that tough times bring out the best in our tourism industry colleagues and I have no doubt that will again be the case for 2020 and beyond. Hyde Hacienda Sydney opened in December 2019

AUSTRALASIAN LEADERS

demand is also growing but not at the same rate as the supply injections. It will take time for this new supply to be fully absorbed and for occupancies to stabilise. Within each major capital centre there are also micro–markets where this supply/demand balance has been impacted to greater or lesser degrees, meaning if your hotel is in one of these micro–markets, the recovery may take longer. While hotels are struggling to manage this imbalance, they need to maintain returns by winning market share off one another which in turn impacts room rates. This year will probably remain one of business consolidation and restructure for Alpha. We enjoy having a stake in At Alpha, 2019 was more a year of consolidation than growth. the businesses we operate and will seek to invest more in them wherever possible. At the same time, we are open to expansion opportunities with the right partners. PRICING OF AUSTRALIAN hotels, competition with The world gets smaller every year, and this will never foreign backed investors and access to cost–effective stop. With that, markets that were once emerging will funds meant quality acquisition opportunities were few mature, changing the way hotels need to distribute and far between in 2019. That is a challenge not likely to their product. Changes and diminish in the future. To resolve this, Alpha will need to improvements to aviation, look at partnering with others for both scale and access overland travel, cruising etc to cost–effective funds. will just speed this process The year also delivered a continuation on margin up. The key for hoteliers squeeze. Rate increases in the markets we are involved in will be predicting how these generally did not keep pace with cost increases. This was changes will alter traditional in part due to increases in supply in some markets still distribution and to plan being absorbed (e.g. Brisbane, Sydney) and in part due to ahead to benefit from it and specific market segmentation and changing distribution reduce costs. which increased costs without adding to volume or rate Alpha would love to Jonathan Wooller, Alpha Hotels and Resorts (e.g. Gold Coast, Canberra). That said, for Alpha, we grow more in the major protected returns through driving greater sales volumes capital cities, particularly on the Eastern seaboard. in general. Brisbane, Sydney, Melbourne and Canberra are Alpha Mos More generally for the hotel industry, we think all markets in which we’d like to deepen our aic Ho lagging absorption of heavy supply increases in exposure. We like to invest in the hotels we te l, key markets (Melbourne, Canberra, Brisbane, operate, and because our own capital Sydney), stagnating rates (relative to cost is limited, expansion for Alpha will increases) and access to talent, especially probably always be slower and more in F&B, will be the industry’s biggest methodical than other groups. But, challenges. Each of the major capitals once we are committed to sites and on the east coast have seen significant more particularly, our partners in supply increases. In most, the level of those sites, we are committed for the long haul. Any development growth for Alpha is likely to come from working with existing partners in the first instance, but we welcome any opportunity to expand our reach.

Jonathan Wooller

Managing Partner, Alpha Hotels and Resorts

Alpha would love to grow more in the major capital cities, particularly on the Eastern seaboard.

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SNAPSHOT: ALPHA HOTELS AND RESORTS

Alpha Hotel Eastern Creek NSW

Current number of hotels & rooms (Australia, New Zealand and South Pacific): 4 hotels, 708 rooms Current employee count: 80 Year the company was founded: 2014 Year first hotel opened: 2014 Number of brands in the organisation: 1 Head office locations: Sydney

hotelmanagement.com.au 81

AUSTRALASIAN LEADERS

Graham Perry

UNDER NORMAL CIRCUMSTANCES, I would have addressed the fact that within Australasia, BWH Hotel Group operates in an As the head of a major brand with a strong environment that broadly regional presence across Australia, the challenges mirrors global hospitality we face in 2020 are unprecedented. trends, including a softening economic landscape, an imbalance between supply and demand, the need for a level playing field for Airbnb, growing OTA market share, labour constraints and skills shortages. However, Australia currently finds itself in anything but normal circumstances. The devastating effects of We are taking drought and bushfires have been changing guests’ travel a leadership patterns and have the potential to have medium and position to long–term impact for hotels right across Australia. As a result, we have reassessed our priorities for 2020 help devise which now include Regional resurgence; Building scale; strategies Growing direct and Property retention. to ensure We quickly took a leadership position to help influence regional and devise strategies to ensure regional resurgence of domestic and inbound visitation. We have proactively resurgence advocated that as soon as it is safe to do so, travellers of domestic must be influenced to recommit to travel to and within and inbound Australia. This is essential to aid the recovery effort and visitation. drive a much–needed boost to local communities and their economies, not to mention morale. Graham Perry, In the short–term, many hotels have been witnessing Managing Director, a mix of fortunes; cancellations have been offset by an BWH Hotel Group increase in rooms taken up by emergency services and Australasia local displaced residents. BWH has assisted by funding free hotel rooms at BWH Hotels for the Red Cross to

Managing Director, BWH Hotel Group Australasia

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Best Western Plus Apollo International Hotel, Newcastle 82 HM The Business of Accommodation

manage at their discretion. As a result, the key message that government and industry must communicate is that Australia is open for business and that the very best way that anyone (either here or overseas) can help is to commit to travel to and within Australia. It is pleasing therefore that the Commonwealth Government has announced a $76M recovery package with Tourism Australian managing both inbound and domestic activities to promote what must be a simple, clear

message and call to arms – namely "visit us NOW”! Turning to our other key objectives, we’re taking a far more strategic approach to building scale. Now led by detailed analysis of the gaps in our portfolio and a new competency in financial analysis and forecasting, we can prescribe the ROI that hotels will receive, which of our 16 brands they should join and whether hard brand or soft brand for those who are keen to receive our incremental distribution whilst wanting to retain their own branding. This approach enables us to protect and grow our core Best Western and Best Western Plus properties whilst expanding our 14 other brands in capital cities and surrounds and regional areas. Property retention also remains a core objective. We value and respect all our existing hoteliers, no matter their size, and work relentlessly to add the greatest possible ROI including driving revenue growth, a reinvigorated partnerships program, our national convention, regional and local workshops, and through operational advice and support. We also have a core competency in revenue management that is delivering positive RevPAR growth in a declining market; even our capital city hotels are outperforming the market. General challenges facing the hospitality sector include an increase in the pipeline of supply in capital cities, which is outstripping demand. Best Western is protected from this because of our regional footprint and because increasingly, international investors are looking to complement their capital city upscale portfolio of properties with regional midscale properties.

Overall, we’ve undergone transformational change at Best Western over the past 18 months evidenced by the acquisition of World Hotels and the creation of the BWH Hotel Group (BWH) that now encompasses Best Western Hotels & Resorts, SureStay Hotels and World Hotels. We’re now well set to embrace growth and the opportunities that 2020 and the decade ahead will bring.

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AUSTRALASIAN LEADERS

Geoff York

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Interim CEO and Group Director, Crystalbrook Collection

CRYSTALBROOK COLLECTION WAS launched in early 2017 as an independent Australian–based tourism and hospitality company with currently A$800m of funds under deployment. We develop and operate upscale, five– star hotels and resorts under our own brand. Each of our properties carries a unique name and personality, an authentic expression of their location, playful designs, IT savvy and stimulating environments. Crystalbrook competes against some of the world’s largest hotel brands. So how do we make Crystalbrook stand out? By reinvigorating hospitality. It’s the reason l joined after almost 40 years in the hotel industry. A chance to make a difference without legacy issues or a rulebook to follow. It is the same for the key members of our leadership team who have all worked for the major hotel groups and were looking to create something new and make a real difference. We are committed to innovation and sustainability, or what we call responsible luxury. We’ve said no to plastic straws, water bottles and guest room key cards (our keys are made from 100% recycled wood), we use technology such as iPads to reduce in–room paper and run a paperless press office. We have our own bespoke amenities range

How do we make Crystalbrook stand out? By reinvigorating hospitality. a Riley was Cryst

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The company acquired Sydney’s Little Albion in 2018

Finding the right people for such a fast–moving environment is a challenge but we continue to be pleasantly surprised. Geoff York, Crystalbrook Collection

called IMMERSION which comes in large pump bottles, saving more than 250,000 small plastic bottles from going into landfill each year – and that’s just at Riley! Central to our growth over the past two years has been the development of our sales and distribution platform with a dedicated sales, marketing and development team of more than 20 across Australia and UK. We have heavily invested in digital, web, social, photography and video content and a review of our web presence will quickly demonstrate the different approach we have taken. Like others in the hotel space, we work with OTAs whilst looking for ways to drive further traffic to our brand site, and once there, improving conversion rates. In 2020, we introduce two hotels to the Australian market. Flynn, a Crystalbrook Collection Hotel will be our third five–star property in Cairns, opening 31 March and featuring three new restaurants and bars and our second Eléme Day Spa. Later in the year, we open Kingsley, a Crystalbrook Collection Hotel in Newcastle. Kingsley will be the first five–star hotel for the city. We also expect to have some announcements in the near future, with several acquisitions in Sydney and Melbourne on the cards. Our ambition is to grow Crystalbrook by another 500 rooms in 2020. We will be launching several new environmental and responsible luxury initiatives in the new year that will further enhance our values and brand credentials.

SNAPSHOT: CRYSTALBROOK COLLECTION Current number of hotels & rooms: Open: Four hotels, 693 rooms Current employee count: 600+ Year the company was founded: 2016 Year first hotel opened: 2018 Number of brands in the organisation: Crystalbrook Collection Hotels and Resorts Head office locations: Sydney, Australia

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AUSTRALASIAN LEADERS

The rooftop bar at Little National Hotel Sydney

Jure Domazet

Managing Director, Doma Group We continue to work hard on keeping sustainability, technology and wellness at the forefront of our developments and refurbishments.

As an owner operator, it has been an interesting market over the past 12 months. A federal election to contend with, additions to supply and destination funding cuts led to a feeling of working harder for less in the Canberra market at times in 2019. The year wasn't without reward though as we completed a major refurbishment of Hotel Realm which has been very well received by our regular guests. Doma has a big year ahead with the opening of the Little National Hotel Sydney. This 230–room hotel is currently under construction and is due to open in July. It is brilliantly located above Wynyard station in the CBD with direct access to Barangaroo and George Street. The hotel will feature a rooftop bar, lounge and library along with a Hale–wellness inspired gymnasium. Whilst Sydney has been under some pressure from additional supply, our hotel in this prime location will be a great addition to the market and we look forward to welcoming our guests in 2020. We have other two major hospitality projects due to commence in the coming months. The first is the expansion of the Huskisson Hotel in regional NSW. This will see the iconic pub double in size with new bars, kitchens & alfresco areas. We have also recently acquired a site close to the hotel where we will be developing a 60–key boutique hotel as well as a serviced apartment complex to cater for the increasing demand in the area. Little National Hotel Newcastle will also commence construction following a redesign incorporating a large office building and newly–developed construction techniques. We will be pursuing our new vision of fully integrating co–working spaces and 'third spaces' in the public spaces of the hotel. This is one of eight developments we have in Newcastle and is a sign of our long–term commitment to the city. The hotel is expected to open in 2021. 84 HM The Business of Accommodation

During 2020, we will continue to work on the Little National Hotel expansion with opportunities in Sydney, Perth, Adelaide, Brisbane & Melbourne and we will continue exploring the appetite for Little National Hotel in overseas markets. As our consumers become increasingly socially responsible, they expect efforts are made in their work Jure Domazet, Doma Group place and in their choice of hotels. The rollout of our self– check–in kiosks will commence as will deployment of our considered approach to fitness and wellness for our guests and staff. We look forward to a potential return to normal conditions for hotel operation and development, with the last few years seeing hotel assets being developed in locations that are not suitable in the medium term but still having an impact on the greater market. The volume of capital in the general property market as well as the hotel market has seen proposed expansion that we believe may not be viable in the medium and/or long term.

We will be pursuing our new vision of fully integrating co–working spaces and 'third spaces' in the public spaces of the hotel.

SNAPSHOT: DOMA GROUP Number of hotels & rooms (Globally): Five operating, three under development and 1,093 keys Number of employees (Globally / APAC / ANZSP): 500+ Year the company was founded: 1974 Brands in the organisation: Hotel Realm, Burbury Hotel & Apartments, Little National Hotel, Brassey Hotel, Pinnacle Apartments, Huskisson Hotel. Head office locations (Globally / APAC / ANZSP): Canberra

AUSTRALASIAN LEADERS

of cloud–based services, new booking engines and up–weighting our focus on data to improve revenue generation and the guest experience. We’re also leveraging our dedicated Robotic Process Automation Team to assess intelligent automation opportunities across our value chain by identifying better ways to help us grow revenue, improve productivity, reduce costs and improve our customer experience, ultimately empowering our teams to deliver the best guest experiences every day. Supplementing this, we have commenced a major project to introduce Source to Pay, which will transform our operational procedures end–to–end and allow us to Unprecedented supply is bringing opportunities and challenges in equal deliver smarter, more strategic sourcing, management measure to our sector. and purchasing processes. This project will reduce time spent on these tasks, optimise savings and deliver increased opportunities to pursue new sources of value – FOR HOTELIERS, THE obvious opportunity is to all of which will add bottom line value for our hotels. increase their networks with new hotels and as a Helping our operations people in driving this business focused on growth, we will continue to build our technological innovation is our specialist IT team, which has recently expanded and includes newly appointed hotel footprint in this way. data, digital and technology experts both from within However, this is not news. Growing our network and outside the sector to ensure new thinking is applied. of hotels is business as usual, like it is for most of our We are also using technology to better mobilise competitors. Turning challenges into opportunities is what we are focusing on first. The flipside of the unprecedented Rydges Sydney the power of our people. All of our teams are on supply is the indisputable challenge that it makes it more Harbour rooftop Workplace by Facebook, introduced to transform the way we communicate, increase employee engagement difficult to drive increased profits from existing hotels. As such, our key commitment is to ensure continued growth and encourage the facilitation of faster and more for our existing hotels in tougher market conditions. meaningful idea sharing to boost productivity. We recognise new competition requires changes in Outside of technological innovation and a the way hotels have traditionally operated. In response, focus on our people, we are also investing in we are putting time and investment into technology and our existing physical hotel assets, with an innovation that will transform our hotel businesses to unprecedented capital upgrade program reflect shifting consumer expectation and demand. underway, particularly in our Rydges hotels, This is not about digital disruption but rather, all underpinned by a major refresh of personal connections. At its core, hospitality is human the Rydges brand in 2020. on but you’d be amazed at how much time leadership teams Our goal with all of nsi a p ex this is to create a real in hotels spend away from guests on administrative or point of difference – and reporting tasks. Through digital innovation we are continued growth in asset values for hotel owners, supported by new ways of thinking and constant improvement across all of our hotels and brands. Norman Arundel, Event Hospitality and Entertainment

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am aj

Director of Hotels and Resorts, Event Hospitality and Entertainment

automating many of our back–of–house processes to free up our teams to deliver more personalised service. Putting aside distribution, our sector has been slow to innovate with technology, compared to other industries. This is partly because the industry has been dominated by a small number of global technology vendors and there has been little pressure to innovate. This is changing and we are taking full advantage. Enterprise–wide, we have invested in IT expertise to execute new tech innovation, including the introduction

SNAPSHOT: EVENT HOSPITALITY AND ENTERTAINMENT Current number of hotels & rooms (Australia, New Zealand): 63 properties and 10,092 rooms Current employee count (Globally / APAC / ANZSP): 5,043 Year the company was founded: 1988 Year first hotel opened (Globally / APAC / ANZSP): 1988 Number of brands in the organisation: Rydges, QT and Atura Head office locations (Globally / APAC / ANZSP): Sydney

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Hamilton Island’s newly– opened events venue, Beach Pavilion

Glenn Bourke Chief Executive Officer, Hamilton Island Hamilton Island opens 2020 with an optimistic outlook following a buyout festive season.

Hamilton Island Race Week always brings in the crowds

We expect to see some shift in our international business in 2020. Glenn Bourke, Hamilton Island

OUR CHINESE NEW Year business is strong and I feel that with the passing of the federal election in 2019, we will start to see a return to normal spending patterns in 2020. Hamilton Island’s forecasts indicate we can expect to be back in the 90 percentile with room rates similar to or slightly increased from that of 2019. Following an investment of $3.9 million, Hamilton Island officially opened its latest meetings and events venue, the Beach Pavilion, at the end of 2019. The completion of the Beach Pavilion came at the perfect time, with the Island seeing a resurgence in the MICE market. We have at times faced challenges with the MICE market due to the strong FIT demand but expect in 2020 this will recalibrate with a slight softening in the FIT Market. It is our feeling that this may stem from interest rates being at an all–time low and confidence in the market strengthening. The Beach Pavilion can be used for a banquet set up of up to 280 guests, a classroom of up to 340 guests, a theatre set up of up to 420 guests, a cocktail function of up to 400 guests and a space for trade shows of up to 32 2x3m booths. The investment in the Beach Pavilion signifies the ongoing dedication Hamilton Island has to presenting truly world–class events. We look forward to hosting Hamilton Island Race Week 2020 between August 15 – 22 and hope to see a record–breaking fleet, with the second largest on record coming in 2019. Additionally, the Island will be hosting its regular line–up of elite sporting events, which form part of the Hamilton Island Endurance Series. In order to meet increased domestic and international demand, Hamilton Island will commence work on a new hotel in 2020. The new $15 million Palm Terrace Hotel

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will provide couples and families with a new product directly overlooking Catseye Beach. The Palm Terrace works are expected to be undertaken over the next two years and will add another 59 rooms to the Island’s existing inventory. This project has been made possible with the construction of a new staff accommodation precinct which was completed in December 2019. The creation of the Palm Terrace is an example of Hamilton Island’s owners’ dedication to incremental improvement and development on the Island. Palm Terrace will also contribute to increasing passenger numbers through the Great Barrier Reef Airport. Hamilton Island’s passenger numbers increased from 430k to 480k in 2019, which demonstrates that demand for new product on the Island is strong. We expect to see some shift in our international business in 2020. Whilst we are still experiencing high numbers of visitors from the US, UK and China, we are starting to see an uplift from the South American market. This uplift initially started from a low base, but we are finding travellers from the South American region travelling more and staying longer. Interestingly, we have also seen an increase in employment applications from potential South American staff. Most importantly for 2020 is the continuous professional development of the Hamilton Island staff community. Whilst capital works are important when operating any resort, equally important is a focus on service delivery and staff retention. We intend to continue to develop courses at Hamilton Island’s Robert Oatley College this year, which will continue to allow our staff to grow their skills and experience within the business.

AUSTRALASIAN LEADERS

LOCALLY, WE ACHIEVED a record number of signings to build the strongest pipeline on record, gained market share across key locations, continued to roll out industry–leading innovations and were once again recognised as the #1 hospitality company on the ‘Great Place to Work Australia’ list. In 2020, we look forward to building upon these achievements. The recent unprecedented bushfires across so many parts of the country have had a devastating impact on so many communities and wildlife and the effect of these fires will be felt for many months and years to come. Hilton has announced an initial donation to The Salvation Army to support those in need and, with our team members, will continue to extend our support to those impacted to assist in the rebuilding process. We are well and truly on our way to achieving our ambition of doubling our footprint within the next five years with our development team achieving more hotel signings than ever before. With 27 trading hotels, 13 in the pipeline, and many more deals in process, we are excited for the growth of Hilton throughout Australasia. In 2020, we have four exciting new hotel openings. Opening in Q2, we are delighted to bring our flagship Hilton Hotels & Resorts brand back to Melbourne with the stunning 244–room Hilton Melbourne Little Queen Street. Located centrally in Melbourne on the corner of Little Queen Street and Bourke Street, the hotel will feature a beautiful Italian–inspired restaurant and bar, fitness centre, executive lounge and five event spaces. Opening in the same quarter will be DoubleTree by Hilton Perth Waterfront. The hotel is located on the edge of the beautiful Swan River, with Elizabeth Quay right next door, providing many waterfront entertainment activities. The hotel will feature 229 guest rooms, three restaurants and bars including 18 Knots Rooftop Bar and pool, a fitness centre and five meeting and event spaces. Also in Q2 in the beautiful town of Napier, New Zealand will be DoubleTree by Hilton Napier Hotel & Suites. This property will have a modern art–deco design theme running throughout and will feature 52 stylish guest rooms, including suites, a restaurant and bar, fitness centre and a boardroom.

SNAPSHOT: HILTON Number of hotels & rooms (Globally): 6,000 hotels Number of hotels & rooms (Asia–Pacific): 336 hotels Number of hotels & rooms (Australia, New Zealand and South Pacific): 27 hotels Number of employees (Globally / APAC / ANZSP): 422,000 / Almost 62,000 / 4,150 Year first hotel opened (Globally / APAC / ANZSP): 1919 (The Mobley) / 1963 (Hilton Tokyo) / 1974 (Hilton Sydney). Year the company was founded: 31 May 1919 Brands in the organisation: 17 brands Head office locations: Virginia, USA; Singapore and Sydney

Our 4,000 team members across Australasia continue to be our greatest asset. Heidi Kunkel, Hilton

Heidi Kunkel

Vice President – Operations, Australasia, Hilton It was certainly a milestone year for Hilton in 2019 amid our centennial.

DoubleTree by Hilton Perth Waterfront will open in Q2 2020

Last but not least this year will be Hilton Garden Inn Albany. With the rise of the middle–class traveller, we are committed to introducing more of our brands to the region to meet the needs of these travellers. I'm excited to be introducing our award–winning midscale brand, Hilton Garden Inn, to the Australasia region in Q4 with the opening of Hilton Garden Inn Albany in WA. Our 4,000 Team Members across Australasia continue to be our greatest asset. Hilton would not have had such a successful 100 years without them. Our philosophy around culture is therefore simple – to be an inclusive employer which encourages and supports diversity, as well as engages our team members towards a common vision and value. As a result, Hilton was once again recognised by the Great Place to Work Institute as one of Australia’s best companies to work for in 2019. Hilton was recognised as the number one hospitality company, placing third on the Top 50 list for companies with over 1,000 employees. I have great confidence 2020 is going to be another great year. Our commitment to being the world’s most hospitable company is evident in our growth and development plans, our innovation initiatives and purpose–led team culture, supported by our greatest asset – our team. hotelmanagement.com.au 87

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Robert Dawson

Area Vice President – Pacific, Hyatt Hotels & Resorts We celebrated many milestones in Asia Pacific last year, including our 50th anniversary in the region. e urn lbo e att M Park Hy

WE OPENED OUR first international hotel in Hong Kong in 1969 and today, we have over 180 hotels and nine brands in the region. We are proud of the loyal following we have built in Asia Pacific, which keeps guests and clients coming, retains our talent, spurs innovation and allows us to continue to strategically grow in the region. Over the years, we have differentiated ourselves in the region by catering to the premium customers in every market we serve. We also focus on working with the right partners to deliver distinctive experiences for

our guests and customers, and actively pursue suitable opportunities to grow in the right destinations. We are excited to begin the new decade, which includes plans to almost double our existing portfolio in Asia Pacific in the next five years. Three areas that we will particularly be focusing on in the coming year include growing the markets that matter to our guests; expanding our luxury and lifestyle portfolio and making holistic wellbeing a bigger part of who we are. Our 30+ years of operating in Australia has allowed us to create strong brand experiences and ultimately a loyal following in this market. We plan to double our presence in Australia with 14 Hyatt hotels across five Hyatt brands by 2023, allowing us to cater to both leisure and business travellers. We are looking forward to the highly anticipated opening of properties including the Hyatt Regency Adelaide, Hyatt Centric Melbourne and Hyatt Place Brisbane South City Square. We have also partnered with BTG Homeinns Hotels Group on a joint venture to introduce UrCove, an entirely homegrown hotel brand built specifically to meet the preferences of Chinese business travellers. Our first two UrCove hotels are expected to open in Shanghai and Beijing by late this year.

We see wellbeing as a demonstration of our purpose and have made it a greater part of our DNA. Robert Dawson, Hyatt Hotels & Resorts

SNAPSHOT: HYATT HOTELS & RESORTS Number of hotels (globally): 875 properties in over 60 countries. Number of hotels (ASPAC): 180 properties in over 16 countries. Number of hotels & rooms (Australia, New Zealand and South Pacific): 7 hotels and 2,626 rooms Year first hotel opened (Globally / APAC / ANZSP): Hyatt Regency Atlanta 1967 / Hyatt Regency Hong Kong 1969 / Grand Hyatt Melbourne 1986 Year the company was founded: 1957 Brands in the organisation: Caption by Hyatt, Andaz, Alila, Thompson Hotels, Hyatt Centric, Park Hyatt, Miraval, Grand Hyatt, Hyatt Regency, Hyatt Ziva and Hyatt Zilara, Hyatt Place, Hyatt House, The Unbound Collection by Hyatt, Joie de Vivre, Exhale Head office locations (Globally / APAC / ANZSP): Chicago / Hong Kong / Melbourne

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We also see tremendous potential for growth in Southeast Asia, especially Vietnam and Malaysia. Thanks to the efforts of both the Vietnamese and Malaysian governments, both business and leisure travel continues to grow in these emerging destinations. We plan to more than double our footprint in Vietnam in the coming years with new openings in both urban and resort destinations such as Ho Chi Minh, Hoi An, Phu Quoc and Nha Trang. Similarly, we are also set to double our presence in Malaysia and introduce four new brands (Hyatt Regency, Park Hyatt, Hyatt Centric and Hyatt Place) to this market. By the end of 2020, we plan to open 21 new luxury and lifestyle hotels and resorts in Asia Pacific under our Park Hyatt, Grand Hyatt, Andaz and Alila brands, which will boost Hyatt’s luxury portfolio in the region by 25%. The expansion of our resort, lifestyle and wellbeing offerings will enable us to better cater to today’s increasingly diverse luxury travellers who seek greater personalisation, whether they are travelling for business or leisure. Highly anticipated openings in the region this year includes the Park Hyatt Auckland, Park Hyatt Jakarta, Park Hyatt Niseko, Grand Hyatt Jeju – the largest Grand Hyatt Hotel in Asia Pacific – and Alila Dalit Bay. Hyatt’s purpose to care for people so they can be their best has always been our north star. In the past, wellness used to be seen as a ‘luxury’ but that is no longer these case. Wellbeing has increasingly become important to our guests and customers, whether they are travelling for business or leisure. For them, travel should not disrupt but support and enhance their wellbeing. We see wellbeing as a demonstration of our purpose and have made it a greater part of our DNA. We plan to positively impact the wellbeing of our colleagues, customers and guests through three landmarks of wellbeing: FEEL (how you feel; your emotional + mental wellbeing), FUEL (how you fuel + power your body, incl. food, sleep) and FUNCTION (how you move + function). To support this, we have already invested in the growth of the Miraval, Exhale and Alila brands, evolved the future guest experience at Hyatt Place hotels, and launched the FIND experience platform – a curated and growing selection of nearly 150 unique, member–only experiences designed to positively impact how World of Hyatt members experience our landmarks of wellbeing.

AUSTRALASIAN LEADERS

Leanne Harwood

Managing Director - Australasia and Japan, InterContinental Hotels Group

ti on C r e Int

SOMETIMES YOU START a new year and the world is your oyster. Other times you go in knowing that your goals are pre–ordained – and here is where we find ourselves at the start of 2020! We are exceptionally proud of the reputation we’ve built and the faith owners are putting in us and our brands. Core to that has been making sure we have a clear focus on quality, sustainable growth and bringing some of the world’s biggest and best brands to Australasia, but only with the right partner and where they make most sense. Now, in 2020, we have an exciting job ahead of us as we start bringing those signings to life in a big and visible way. In fact, this year alone we’re going to open at least 12 hotels in our patch – an average of one per month, which is more than we’ve ever done in this market. It makes me incredibly happy that Australia finally gets to welcome its first Hotel Indigo, and not just one, but two in the one year! The honour of first opening goes to Hotel Indigo Brisbane Fortitude Valley, which opens in the middle of the year, followed closely by Hotel Indigo Adelaide Markets. It seems crazy that it was only three years ago we announced we would be bringing this fabulous boutique, neighbourhood brand here. We now have seven in the pipeline. I have no doubt this brand is going to take Australia and New Zealand by storm! We will also open our first new–build voco in November, complementing our two amazing voco properties on the Gold Coast and Kirkton Park in the Hunter Valley. This bright and flexible brand is really hitting the right notes with owners, and we look forward to giving more Australian hotels a big splash of yellow. Of course, we are just as focused on our established brands, and it’s profoundly exciting to see three shiny new Crowne Plazas opening in Hobart, Adelaide and Sydney Darling Harbour, all within a month of each other in Q2. With 13 already open, this is our largest brand in Australasia, and not only are we bringing

nt t al H or ayman land Res Is

I’ve been talking quite a bit about IHG’s best years of hotel signings on record, and why not?

Voc oK

I’m on the crusade to make our workplace as flexible as we can to attract a rainbow of talent.

Leanne Harwood, IHG

irkton Park, Hunter

ley Val

fantastic new hotels to market, we’ve been focused on working with owners to invest in refurbishing the entire Crowne Plaza estate so that we can proudly show off the best of the brand here. Pro–invest continues to do great things with Holiday Inn Express. Anyone who has stayed at one of their five Australian hotels will know these are truly amazing iterations of the brand. In 2020, they will add two new hotels at Sydney Airport and in Queenstown, giving travellers to these destinations a smart way to stay. Oh but look out, we’re not finished! We expect to continue our signing momentum in 2020 and look forward to bringing more great hotels to Australia with great partners. Whether it’s the continued expansion of Holiday Inn in regional and satellite cities, flagship InterContinentals or Kimptons in key cities or a unique Hotel Indigo or voco in the perfect neighbourhood, we’re up for it, and have added the resource to our team to take on any opportunity! Looking back, it was a huge 2019 and we’ve enjoyed some great successes, including the opening of the iconic InterContinental Hayman Island Resort, winning Australasian Hotelier of the Year at the 2019 HM Awards and Accommodation Provider of the Year two years in a row at The Travel Awards. We can’t wait for 2020!

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Sean Hunt

Area Vice President, Australia, New Zealand and the Pacific, Marriott International We are moving into the new decade having achieved our goal of 50 hotels in the ANZP area by 2020. W Melbourne

Marriott Bonvoy now has more than 140 million members across the world.

Sean Hunt, Marriott International

We’re set for a record year for Marriott International in Australia, New Zealand and the Pacific (ANZP), following an unprecedented 12 months of growth in 2019. We introduced new brands to the Australian market, including landmark openings like The Ritz–Carlton, Perth and Element Melbourne Richmond. We also announced four new signings: AC Hotel by Marriott Melbourne, Ringwood; Moxy Melbourne South Yarra; Moxy Perth; and Moxy Queenstown. We are moving into the new decade having achieved our goal of 50 hotels in the ANZP area by 2020, and we are positive about the future development landscape. While industry figures reported dips in RevPAR in several Australian cities in 2019, Marriott International’s brands continued to outperform the market and attract local and international developers. New hotels, like those that Marriott International signed and opened in 2019, induce demand into a destination. We also see that international brands, like those in the Marriott International stable, tend to perform well, thanks to strong distribution and best in class loyalty programs. Marriott Bonvoy, Marriott International’s global travel program, launched in February 2019, and now has more than 140 million members across the world. Since its launch, we’ve seen a huge spike in travellers from the United States – where loyalty programs are hugely influential. We’ve also seen some of our hotels record occupancy rates of more than 90 percent, with 70 percent of those bookings coming from Marriott Bonvoy members. Marriott International’s primary focus in 2020 remains providing both our business and leisure guests with the best possible experiences. In 2020 we will open three new hotels in Australia, allowing travellers to experience their destination through some of our most exciting brands. In Melbourne, W Melbourne and Marriott Melbourne Docklands will open in June and December respectively. In September, The Tasman, a Luxury Collection Hotel, Hobart will open in Tasmania’s capital, debuting the Luxury

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Collection brand into Australia. This is in addition to a range of new signings. We will announce a second Moxy for Melbourne, positioning the lifestyle brand as our fastest–growing in the ANZP region. We will announce signings in Sydney’s Auburn and Blacktown regions, and we are looking for opportunities to expand our regional footprint. Tourism Research Australia reported in 2019 a nearly five percent increase in overnight stays in regional Australia over the past five years. Food and dining are key focus areas, and we will

continue to offer some of ANZP’s best dining and events. Garum at The Westin Perth has been awarded a coveted chef hat, and Three Blue Ducks at W Brisbane as well as Hearth at the new Ritz–Carlton, Perth have been well– received. Sheraton Grand Mirage Resort, Port Douglas is also set to relaunch a new take on one of Far North Queensland’s most popular food festivals. We are renovating and innovating our existing assets to ensure both business and leisure travellers have access to the best facilities. In mid–2019, in Fiji, we launched the country’s largest integrated meeting and event venue, the Denarau Island Conference Centre, which sits across The Westin Denarau Island Resort & Spa and Sheraton Fiji Resort. Brisbane Marriott relaunched in April 2019 following a $20 million renovation to its guestrooms, restaurant, executive lounge and event spaces, while Pier One in Sydney completed a $10 million refurbishment of its guestrooms, lobby, bar and restaurant last September. All up, it’s predicted to be a very positive year for Marriott International in ANZP. Our hotel network is showing strong growth, and we boast an exceptional offering of open and pipeline hotels well utilised by a loyal traveller base. We are well positioned to capitalise on future opportunities and very excited to welcome both new and returning guests, as well as partner with current and new owners to continue to provide the best experiences in the region.

SNAPSHOT: MARRIOTT INTERNATIONAL Number of hotels & rooms (Australia, New Zealand and South Pacific): 56 hotels, 13,504 rooms Number of employees (ANZP): 5000+ Year first hotel opened (Globally): 1957 Year the company was founded: 1927 Brands in the organisation: 30 Head office locations (ANZP): Sydney

AUSTRALASIAN LEADERS

significant long–term effects on investment and perception of our country as a destination. With regards to cruising, there is a shortage of ports in the Southern Hemisphere. We have a great opportunity to grow Australia as a destination but we need to prioritise berthing infrastructure. The oil wharf in Sydney is such a quick win for the city. Minor Hotels is confident about the future of Australia and we are well on track to owning or operating over 100 hotels in the next five years. We have two newbuild hotels scheduled to open in Toowoomba and Cairns in 2020. We 2019 was a challenging year for the industry and this was no are keen to grow all our brands in the state capitals but also look forward to announcing a new model focused on exception for Minor Hotels. regional Australia. Our focus is a ‘home away from home’ fully equipped THE INCREASE IN supply combined with improved serviced apartment model for the family and mid–tier transport infrastructure in both Sydney and Melbourne market sector for Oaks Hotels, Resorts & Suites while Avani in particular has seen the development of a new world is targeting the new millennial mindset traveller who is where market compression will only occur when looking to travel in stylish, comfortable accommodation international events come to town. As an example, cost– but saving in value. We approach this through our conscious corporate and domestic leisure travellers are innovative concept of balance, contemporary, functional but still playful and providing essentials such as comfort now happy to stay in the airport precinct of Sydney at a and warm atmosphere. significantly lower rate 2019 has seen great progress than the CBD, thus we for Avani. This year we opened see good occupancy but limited rate growth. We 10 properties to reach 30 believe that a strong brand operational hotels around with a matching value the world and we are still proposition will be key to expanding where we are seeing success moving forward openings in Thailand, Vietnam and Minor is working in Craig Hooley, Minor Hotels Australia and New Zealand and Middle East in 2020. this space to improve our share in 2020 and beyond. Avani Melbourne Our regional tourism industry now faces exponential Central Residences challenges with the catastrophic bushfires. It’s too early to ascertain how the overall industry will align to address

Craig Hooley

Chief Operating Officer, Australia and New Zealand, Minor Hotels

Minor Hotels is confident about the future of Australia and we are well on track to owning or operating over 100 hotels in the next five years.

this irrevocable change in our tourism topography. I still believe that one of the industry’s biggest challenges is that we don’t have one voice and one strategy for where we see the long term position of hospitality in Australia. Tourism 2020 goes some way in addressing this but is too narrow and does not link through to government planning, business events and industry players. Whether travelling for work or pleasure or just dining out with friends, we are inspired by natural beauty and Australia has such an opportunity to be a global leader in this space. Perhaps we can find a united voice in 2020. We have a number of significant refurbishments including a stunning redesign for Oaks Port Douglas Resort (previously QT) and Oaks Goldsborough, Sydney – 200 rooms underway now. We also have big plans for our resort properties in Pokolbin with a focus on golf and wellness. Oaks Caloundra, which is ranked among the Top 10 Family Resorts in the country, will also have investment in the family water park facilities. Connectivity is one of the key strategic drivers of our success and I believe we need to establish minimum connections across Australia that should be subsidised by government when market forces don’t financially support routes. For example, the reduction in flights to Darwin has

SNAPSHOT: MINOR HOTELS Current number of hotels & rooms (Globally): 537 hotels and approximately 78,000 rooms Current number of hotels & rooms (Asia Pacific): 118 hotels and approximately 15,000 rooms Current number of hotels & rooms (Australia, New Zealand and South Pacific): 75 hotels and approximately 11,925 rooms Current employee count (Globally): 35,775 employees (as of November 2019) Year the company was founded: 1990 Year first hotel opened (Globally): 1990 (Anantara Hua Hin) Number of brands in the organisation: 8 Head office locations (Globally / APAC / ANZSP): Bangkok and Brisbane

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IT’S EASY TO say this will be our best year yet. Challenges have been thwarted, new product offerings are slated for success and there’s clear sailing ahead for expansion plans. Over its thirty year history, Quest has grown into an international network by improving its business format franchise model, leading the serviced apartment sector into new markets and building meaningful relationships with stakeholders. Our new pipeline is one of the major obstacles we’ve overcome. Increased competition in Australia’s major cities has added downward pressure to the supply of new hotels, however, mixed–used developments have provided an entry point into highly– contested areas like North Sydney. Therefore, we’ve doubled down on regional and suburban centres where we’ve traditionally led the sector. Australia’s growing population is driving investment outside the major cities into growth corridors such as Sunshine, VIC; Joondalup, WA and Goulburn, NSW where the demand for premium serviced accommodation is also rising. Travellers from all over the world continue to rely on digital technologies. We’ve embraced online food delivery, travel agents and booking services as a core part of our business, but this year, we’re investing more of our attention to the value stored in our data. Capturing, analysing and presenting this data will give us a clear line of sight of our guests. By understanding all stages of the customer life cycle, we can make better decisions about the services we offer, the prices we set and the customers we market our products to. Our integration with The Ascott Limited, combined with our business format franchise model, will also underpin our international expansion. Last year, we successfully launched our first hotel in the United Kingdom with promising forecasts in other markets. As a franchisor we’re always looking at ways to improve relations with franchisees and other stakeholders. Improving transparency around operational, contractual or financial matters will ensure all franchisees remain informed and the value of their investment continues to grow. Meanwhile, across the sector, there is still a perception issue surrounding

SNAPSHOT: QUEST APARTMENT HOTELS Current number of hotels & rooms (Globally): 174 Current number of hotels & rooms (Australia, New Zealand and South Pacific): 173 Current employee count (Globally): 2000+ when employees of franchised businesses are included Year the company was founded: 1988 Year first hotel opened (Globally): 1988 Number of brands in the organisation: 1 – Quest Apartment Hotels Head office locations (Globally): Melbourne, Australia and Auckland, New Zealand

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David Mansfield Chief Operations Officer, Quest Apartment Hotels

This year and, indeed, the decade ahead can only be characterised by change.

We’ve doubled down on regional and suburban centres where we’ve traditionally led the sector. David Mansfield, Quest Apartment Hotels

a career in hospitality which we’re addressing with Victoria University and the Accommodation Association. I began my career in customer service before working my way up to executive roles across Asia and the Middle East. We must promote what’s exciting and entrepreneurial about our industry by investing more in vocational training and career development opportunities. Moreover, if we don’t talk about the issues that matter, someone else will talk for us. Our partnership with the Accommodation Association will ensure our franchisees remain up to date with the latest trends and are part of the decision–making process. We’re also strengthening our commitment to some key issues facing our community. Meeting the needs of disabled people is a gap that’s existed in our industry for too long, which is why we’ve partnered with 'Get Skilled Access' to improve how we better service these guests. We’ve also partnered with 'Housing All Australians' to help all Australians, no matter their circumstances, get access to affordable housing. The growth of Quest Apartment Hotels is a great Australian success story. We must continue to be nimble, to evolve and to optimise the home away from home experience to stay relevant to our customers, so that we not only meet but exceed their expectations during every step of their journey. Quest South P erth For esh ore

Qu Vic est Burwood East,

AUSTRALASIAN LEADERS

Peter Tudehope Regional General Manager, Radisson Hotel Group

Jin Jiang’s successful acquisition of Radisson Hotel Group was a significant milestone for the company, and we are moving in the right direction.

With the signing in 2019 of seven hotel development deals in Australia and New Zealand and more anticipated

to be signed in the first quarter of 2020, the year ahead, from a development point of view is looking to be very positive. The momentum gained in 2019 will continue throughout 2020 and is coming off the back of Radisson Hotel Group’s owners, Jin Jiang, taking a far more active approach to development opportunities in this region. This combined with an agile and transparent approach towards sustainable and responsible ways to operate our business is supporting our development growth. Integrity and Trust are the two key pillars on which we are building our development strategies. Jin Jiang’s successful acquisition of Radisson Hotel Group was a significant milestone for the company, and we are moving in the right direction, with the right vision as a global entity. The company has also forged ahead with its global integration strategy and will continue to deliver on Destination 2022, our Five–Year Plan. For the existing Radisson Hotel Group operating hotels in the three major markets of Sydney, Melbourne and Fiji, it is anticipated that the market conditions will be very similar to 2019. There will be pressure on rates, but occupancies will continue to be in the 80s. The Australian properties continue to rely on the domestic market, mainly corporate to provide the base for their occupancy. The leisure market has softened. Discretionary spend is down as the pressures of the Australian economy are impacting decision making around leisure stays. The concern going forward for Melbourne and Sydney in 2020 is the lack of city–wide events via the convention centres and the lack of international artists being brought to our capital cities. Both are big demand drivers. Melbourne throughout 2019 saw an uplift in business from the four major sporting events held throughout the year, and the city–wide conference they had in November did benefit the majority of hotels. There is a lot of new supply coming into the Melbourne market in 2020. This should see a softening in occupancy and ADR as supply will outweigh demand. It will put pressure on the older un–refurbished hotel stock.

Jin Jiang’s successful acquisition of Radisson Hotel Group was a significant milestone for the company. Peter Tudehope, Radisson Hotel Group

Radisson Blu Sydney was the first in APAC to achieve its Green Key for Responsible Business

Unregulated accommodation continues to be a major disruptor. In both Sydney and Melbourne, the impact is clearly seen. Combined with significant new hotel supply coming online, we will see a downward pressure on rates and occupancy. State Governments need to have the courage to regulate this industry by introducing registration, so the transparency demanded of our industry is also applied to them. Short–term rentals should be capped at 90 days, not the 180 days presently in play. There has been pressure applied to owners by the ATO to ensure they are declaring their incomes correctly. This is a small but important step. The cost of doing business continues to build. Uncertainty around energy costs, growing distribution costs and loyalty programs are putting enormous pressure on hotel management companies to look for ways to offset some of these growing costs. One of our biggest challenges is attracting people to work in our industry. Lifting the profile of the accommodation sector as an attractive career choice for both secondary and tertiary students should be one of our priorities. Our hospitality colleges need to grow the number of Australian students attending these colleges. While they offer excellent degrees in hospitality and tourism management, all too frequently, we lose these skills when students return to their home countries to continue their careers. This combined with Visa restrictions on certain positions is depriving our industry of much need skilled labour.

SNAPSHOT: RADISSON HOTEL GROUP Number of hotels & rooms (Globally): 1,465 hotels and 233,256 rooms Number of hotels & rooms (APAC): 237 hotels and 37,380 rooms Number of hotels & rooms (Australia): 10 hotels and 1,676 rooms

Number of Employees: 95,000+ Year first hotel opened: 1960 Year the company was founded: 1960 Brands in the organisation: Radisson Collection, Radisson Blu, Park Plaza, Radisson RED, Radisson, Park Inn By Radisson, Country Inn & Suites Head Office Locations: Singapore, Brussels and Minneapolis

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Simon Wan

CEO and Managing Director, StayWell Holdings

Swimming pool at Park Regis Cocobay, Vietnam

In 2020, we are faced with a number of very real global challenges that could have major impacts on the tourism and hospitality industries.

FROM THE TRADE ‘war’ between China and the US, to political unrest in Hong Kong and the unfolding Brexit in the United Kingdom – the next 12 months have the potential to significantly influence tourism on an international scale. Despite these events, there is a plethora of opportunity for these industries to thrive in key markets throughout the year, with the Olympics in Tokyo set to further drive inbound tourism to Japan (following on from the Rugby World Cup in 2019), as well

as Expo 2020 in Dubai this coming October. I see this as an equally challenging, interesting and exciting time to be working in the hotel management business, and the wider tourism and hospitality sectors. I am encouraged by the World Tourism Organization (UNTWO) figures that reported international tourism arrivals were up by four per cent globally in the first half of 2019, with growth led by the Middle East and Asia Pacific regions – two key development areas for StayWell Holdings. December 2019 saw StayWell Holdings and our parent company, Prince Hotels & Resorts (owned by Seibu Holdings) successfully launch our largest Park Regis and Leisure Inn properties with over 1,000 rooms at Cocobay Da Nang in Vietnam. It also saw the soft opening of a third Park Regis property in Dubai. This year, we plan to continue development in these regions, with our first hotels in Saudi Arabia and Jakarta, alongside the expected launch of our second hotel under The Prince Akatoki brand in Guangzhou, China. Since we opened the first property under the Prince Akatoki brand in London last September, we have seen burgeoning interest in luxury, upscale properties that offer unique tailored experiences, the latest technology that services the guest needs and expectations. This new offering will support our goal to further expand our hotel portfolio across the globe in key gateway cities such as New York, Paris and Bangkok. We also have a clear development pipeline for Park Regis, with over 14 Park Regis hotels currently under development globally. The exciting launch of our new lifestyle hotel brand, Policy, with openings slated for Sydney, Singapore and London, is another key milestone we to look forward to in 2020. Domestically, StayWell Holdings is continuing to grow its hotel offering in city–fringe locations, with the Park Regis Subiaco due to open in 2020. In my experience, the key to delivering the very best product in such a competitive and ever–changing 94 HM The Business of Accommodation

StayWell Holdings is continuing to grow its hotel offering in city–fringe locations. Simon Wan, StayWell Holdings

environment is to adapt your offering to ensure it meets evolving guest needs and desires. The revolution of digital service offerings around the world, particularly over the past few years, has presented unprecedented opportunities within the hotel landscape. At StayWell Holdings, we have identified this as offering not only a better understanding of our customers, but insights on how we can update and improve our technology offering to meet and exceed guest expectations. This has included a rejuvenation of our existing customer experience platforms and a relaunch of our much–loved loyalty program – StayWell Rewards – offering guests exclusive perks for their stays. As CEO and Managing Director of StayWell Holdings, my personal goal is to continue to drive internal success and deliver on our advantageous goals, alongside our parent company, Prince Hotels and Resorts and Seibu Holdings. The team at StayWell and I are looking forward to an exciting 2020 and hope to see many of you along the way.

SNAPSHOT: STAYWELL HOLDINGS Number of hotels & rooms (Global): 28 hotels and over 2,442 hotels rooms Number of hotels & rooms (Australia): 10 Hotels and 591 hotel rooms in Australia Year first hotel opened: First hotel opened June 2006 Year company was founded: June 2006 Number of team members: Over 1,500 globally Brands in organisation: The Prince Akatoki, Policy, Park Regis, Leisure Inn Plus, Leisure Inn Head office: Sydney, Australia. Regional offices in Brisbane, Melbourne, India, Germany, UK, China, Beijing, Shanghai, Hong Kong, Dubai and Singapore.

AUSTRALASIAN LEADERS

Sudesh Jhunjhnuwala

Chief Executive Officer, Sudima Hotels Sudima Hotels enjoyed a strong 2019 with sustained growth in our group.

In terms of general challenges in the hotel industry, there is an impetus to continue to lobby local council which is seeking to impose bed taxes and increase rates on hotel rooms, which will in turn increase our operating costs. At the same time, either local or central government needs to put similar compliance and health and safety regulations on Airbnb or apartments being rented as commercial accommodation. This would level the playing field and be fairer to all operators. There is also the challenge of increased accommodation supply from new hotels opening but no significant growth forecast, so too with travellers increasingly making conscientious choices, we have to remain genuine in what we do and show our care for the environment and community. There is a direct correlation between number of flights and hotel performance, especially in airport major cities and tourism hot spots. Whenever there are more flights and competition between airlines, the tourism numbers go up. Visitors find it more competitive to fly so are keener to travel. The same rule applies to the cruise market; when more ships come to New Zealand there are more travellers. This may not necessarily have an positive impact on hotel numbers, except perhaps in Auckland for cruises where passengers are either beginning or ending their cruise here. In our view, New Zealand should always look for new high value and sustainable destinations from which to bring travellers and try to increase demand and flights from existing markets. In general, we believe 2020 will be a stable year with perhaps marginal growth ahead of 2021, with 2021 at this stage looking to be a good year for growth in international and domestic visitor numbers.

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In 2020 we aim to be single–use plastic free in all our hotels, completing the goal we set out in 2018.

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WE OPENED OUR first five–star hotel, Sudima Christchurch City, and are looking forward to the hotel performing well over the busy summer season. We have also progressed the construction of two new hotels, Sudima Auckland City and Sudima Kaikoura, which will open later this year. Our new branding has been well received and we will continue on our path of caring for our employees, guests, community and environment. The team at Sudima Hotels was enormously gratified by recognition at the 2019 New Zealand Tourism Awards, winning the overall Supreme Sudesh Jhunjhnuwala, Sudima Hotels Tourism Award – the biggest in the New Zealand tourism industry. We were also delighted to receive the hotly contested Environmental Award and the Employer of Choice Award. We are now working towards B Corporation certification (businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose), and in 2020 we aim to be single–use plastic free in all our hotels, completing the goal we set out in 2018. Looking ahead to 2020, we expect stable market conditions ahead of better growth in 2021 with a number of major events such as America’s Cup and APEC set to provide extra s Sudima Christchurch City os market stimulation. Australia remains a key source M market, as still the largest market for New Zealand, and our domestic market remains strong. There was a reduction in tourism from China and the United Kingdom SNAPSHOT: SUDIMA HOTELS last year and a longer low/shoulder season, with the Current number of hotels & rooms (Australia, New Zealand and South Pacific): market not picking up until November. In our assessment 4 hotels and 731 rooms this has stabilised and settled. The US is growing as new Current employee count (Globally / APAC / ANZSP): 525 connections are formed to different American cities. Year the company was founded: 2000 We do acknowledge the potential for international Year first hotel opened (Globally / APAC / ANZSP): 2000 events – US and Iran, the Australian climate disaster, Number of brands in the organisation: 4 – Sudima Hotels, Vices & Virtues Wuhan pneumonia – to affect the 2020 market Restaurant, Moss Spa, HIND Management (manages these 3 companies/brands performance, and our business approach is to remain along with Novotel Christchurch Airport) vigilant and ready to act in the case of any adverse Head office locations (Globally / APAC / ANZSP): Auckland, New Zealand market conditions.

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AUSTRALASIAN LEADERS

Chris Sedgwick Chief Operating Officer, TFE Hotels 2019 continued to see unprecedented growth across the accommodation sector, not only through growth in traditional style hotel and brands, but through the introduction of new brands and concepts that embraced lifestyle, co–living and bespoke offerings.

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Chris Sedgwick, TFE Hotels

Increasing supply levels, growing customer expectations, and the war for talent are nothing new for hoteliers.

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WHILST THE RECENT surge in supply has resulted in slight market declines, the growth in innovative and high quality accommodation offerings that support our natural attractions and world–class food and wine scene places the Australian tourism industry in a stronger position to drive improved international and domestic growth, which in turn will drive RevPAR growth and continued investor confidence. Increasing supply levels, growing customer expectations, and the war for talent are nothing new for hoteliers, so the big challenge for TFE Hotels (Toga Far East) last year came in looking at the way we did business, our brand offering, and in devising ways to elevate and expand those already authentic experiences. Late in the year, we opened our flagship Adina Apartment Hotel Brisbane, complete with modern accommodation tower extension in the Heritage–listed former Queensland Government Savings Bank building. This was followed in quick succession by the Vibe Hotel Sydney Darling Harbour, where WMK Architecture’s design team drew inspiration from the site’s diverse history and the brick heritage–listed school opposite the hotel whilst also incorporating a New York loft aesthetic. The Calile Hotel in Brisbane continued to move from strength to strength, finishing the year as one of Australia’s most awarded hotels. These properties signal a change in direction for TFE – a move towards design–led, contemporary Australian– designed properties with an architectural WOW factor. And 2020 will see more of the same as TFE builds on these foundations with ten new hotel openings in Australia and New Zealand and a further two in Europe. Flagship brand Adina Hotels will open in Sydney, Canberra and Melbourne and we’ll see the continued rollout of the Vibe brand as a true Australian lifestyle hotel in Melbourne, Hobart and Adelaide. In the upper–upscale category, we’re expanding our TFE Collection brand into New Zealand mid–year with the opening of The Hotel Britomart – New Zealand’s first five green star hotel – and are currently looking at other sites to introduce the brand. Vibe will evolve into Australia’s true lifestyle hotel and will enter Tasmania for the very first time, and consumers will see changes to Travelodge ANZ as we elevate the experience with the opening of the Auckland’s Travelodge Hotel Wynyard Quarter in Q2. Whilst there’s always interest in the new and the shiny, we as hoteliers need to be mindful in ensuring

Vi be Sy existing properties dn e y Darling Harbour remain relevant and modern. With this in mind, TFE will drive product improvements across our existing portfolio with major refurbishments planned or underway at Travelodge Darwin, Adina Town Hall Sydney, Adina Harling Harbour, Adina Anzac Square, Travelodge Hobart, Adina Melbourne and Rendezvous Hotel Melbourne. Long–term drought and the unprecedented and devastating bushfires of the last few months have impacted all Australians and the hospitality sector has certainly stepped up to play its part in the recovery and relief efforts. And we need to continue playing our part during the hard times ahead and in getting the appropriate tourism messages out to our key international markets. It’s fair to say 2020 has started with its challenges. It’s also a time that will see TFE prepare for a big year ahead in Europe with new hotels rolling out across Germany and, excitingly, entering Austria and Switzerland for the first time. On Australian shores, we will continue to nurture a service–focused culture, build on our strong foundations and partnerships, and focus on maximising our performance regardless of the market conditions.

SNAPSHOT: TFE HOTELS Current number of hotels & rooms (Globally): 73 properties and 10,432 rooms Current number of hotels & rooms (APAC): 62 properties and 9,094 rooms Current employee count (Globally): 1,851 Year the company was founded: 1963 as Toga Group Year first hotel opened: 1982 (Medina Serviced Apartments Randwick) Number of brands in the organisation: TFE Hotels has six and will launch a seventh into Australia in 2020. Head office locations: Sydney, Singapore and Berlin.

AUSTRALASIAN LEADERS

number of them to open within the next three years. We have also added further resources and capabilities to the rapidly growing brand across sales, marketing and hotel management, with the appointment of several new and talented team members. b o eL Aviation continues to be a positive factor ua r q S Veriu Green for the Australian hotel industry, with airline capacity in Australia rapidly increasing. Likewise, the cruising industry has seen substantial growth, with a hugely positive impact on hotels. Around one in every 17 Australians took a cruise in 2018/2019, with hotels as major beneficiaries in pre and post accommodation. The government and private sector continue to invest in major infrastructure in aviation, rail and roads, of which operators and developers need to continue taking advantage in order for our growth to continue. Hotels are a form of infrastructure asset for the tourism sector so it is essential that we as a sector continue to invest in new hotel infrastructure to ensure that we as a country maintain a competitive edge in the global market. We expect to see a growth in demand across most major Australian markets. During this time, we expect Brisbane, Hobart and Adelaide to continue to lead growth rates as Melbourne and Sydney maintain steady growth. The corporate travel market drove strong growth in 2019 and we are confident in the upward trajectory of this into 2020 with the abundance of government–led infrastructure investment in roads, rail, public spaces and amenities. This in turn will continue to see the expansion of Sydney and Melbourne markets as net domestic and international migration continues to grow these cities year–on–year.

Zed Sanjana

Chief Executive Officer, Veriu Hotel Group Disparities in the performance of the Sydney market proved somewhat of a challenge in 2019, with a decline in RevPAR despite high occupancy rates.

OVERALL, THE SYDNEY market had occupancy rates that were as high as they’ve been previously, however the drop in RevPAR meant operators were reluctant to hold their rates firm. Going into 2020, operators need to take a longer term view of price–setting in the market and make the most of opportunities over discounting needlessly. These lower rates are not something we expect will continue as there’s still great demand in Sydney with most of the market operating at 90% occupancy. As customers are increasingly looking for unique and personalised stays, along with a connection to authentic and local experiences, larger traditional hotels and brands are feeling the effects. We have noticed a significant shift from customers towards more boutique and experiential brands like Veriu. It’s important that the more traditional hotels find a way to attract and engage with the modern traveller. Late last year saw the launch of Veriu’s fifth Veriu Broadway state–of–the–art property Zed Sanjana, Veriu Hotel Group in Sydney’s newest urban town centre, Green Square, and we look SNAPSHOT: VERIU HOTEL GROUP forward to watching this property continue to thrive Current number of hotels & rooms: Punthill – 804 keys across 13 hotels; Veriu – 384 throughout 2020. keys across 5 hotels In 2019, we also announced a number of new Current employee count: 300 employees properties across the country – Veriu Queen Victoria Year the company was founded: Punthill – 1987; Veriu – 2016 Market, Veriu Collingwood, Punthill Caroline Springs, Year first hotel opened: Punthill: 1987; Veriu: 2016 Punthill Essendon North, Punthill West Gosford, Number of brands in the organisation: Veriu Hotels & Suites, Punthill Oakleigh Central and Punthill Alphington Punthill Apartment Hotels among others. Construction on these properties will Head office locations: Melbourne and Sydney commence and/or continue into 2020 and we expect a

We have noticed a significant shift from customers towards more boutique and experiential brands like Veriu.

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AUSTRALASIAN LEADERS

Grant Hunt

Chief Executive Officer, Voyages Indigenous Tourism Australia The last few years at Voyages has seen consistent growth and record results for Ayers Rock Resort.

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IN 2020, WE will see some softening in demand over the first six months, largely coming out of the UK which will take time to recover after a protracted period of uncertainty. The US elections also gives cause for some concern with the US currently down by about 2% year on year. Domestically, we expect to see a continuation of the strong demand from about April as we believe the devastating bushfires during late 2019 and into 2020 will keep Australians pretty quiet over summer as they show concern for their homes and wider communities, particularly in the caravanning and camping sector. Availability at Ayers Rock Resort has been tight for at least two years, and the MICE market has subsequently suffered due to lack of availability. However, we believe that the softening of some key markets will allow business events in particular to grow strongly throughout 2020. We already have many significant events booked for the year ahead. In terms of challenges, as has been reported lately in the media, even very large ASX companies have fallen foul of our complicated labour laws and pay scales in Australia. The hotel industry is not immune and arguably has the most complicated regime of all. The time and resources it takes to keep on top of this aspect is significant. Therefore, I believe that IR issues will continue to challenge the industry over the coming year. In addition, technological advances will challenge some operators significantly. I believe older properties will struggle to keep up with technology advances, whereas new builds have the ability to integrate from the outset. Regarding disruptors such as Airbnb, they need to be equally accountable and as reputable as traditional accommodation providers. The impact on residential communities also needs careful analysis. In terms of emerging markets, China poses the greatest potential for Ayers Rock Resort. While we are currently exposed to most Asian markets, and we have strong support from most, China requires the most attention to detail in terms of readying the experience – simply due to the potential for huge numbers. As with any market segment, we try not to be overly exposed in terms of reliance, preferring to maintain a balanced mix and therefore, exploration of new and emerging markets is a constant in our business. As a regional destination, aviation capacity is vital. In 2019, we invested $27 million in runway resurfacing and lighting upgrades at Connellan (Ayers Rock) airport. The emergence of direct services from Brisbane, Adelaide and Darwin – added to existing services from Sydney,

Ayers Rock Resort

The incredibly successful Uluru Field of Light installation will stay for the immediate future. Grant Hunt, Voyages Indigenous Tourism Australia

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Melbourne and Cairns – has helped drive unprecedented visitation to the destination and wider region over the past three or four years. Our development focus continues to be on renewal and refurbishment of our hotels and restaurants. The five– star Sails in the Desert Hotel is currently undergoing an $18 million refurbishment and prototypes are in development for our 3.5 star Outback Pioneer Hotel, scheduled for refurbishment in 2021. We believe this is vital in order to remain contemporary and in order to underpin rates. In addition to hotels, significant focus will be applied to our caravan and camping product as this sector continues to grow strongly across the country, with the addition of powered sites and safari tents. Other new product is in the planning stages. The other major development in the last 12 months has been a significant investment into the maintenance and the extension of the stunning Field of Light Uluru. The incredibly successful installation will stay at the destination for the immediate future. Accelerator projects, or projects designed to create ‘step change’, are a constant in the business, with several ideas currently in the early stages of development and we look forward to announcing these as we move forward.

SNAPSHOT: VOYAGES INDIGENOUS TOURISM AUSTRALIA Number of hotels & rooms: 6 hotels and 816 rooms (includes Ayers Rock Resort and Home Valley Station). Plus Outback Pioneer Lodge at Ayers Rock Resort, accommodating 168.

Number of employees (Globally / APAC / ANZSP): 1,065 Year first hotel opened (Globally / APAC / ANZSP): The hotels that are now Sails in the Desert and Desert Gardens opened in 1984. Year the company was founded: In 1992, the Ayers Rock Resort Company Limited was constituted. The company was sold in 1997 and in 2000 changed its name to Voyages Hotels & Resorts and acquired by ILSC in 2011. Brands in the organisation: Ayers Rock Resort, Home Valley Station, Mossman Gorge Centre Head office locations (Globally / APAC / ANZSP): Level 9, 179 Elizabeth Street, Sydney, NSW

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