HOTEL OPENINGS and refurbishments in western Europe are legion: in London, the Corinthia Hotel, Savoy, Bulgari, 45 Park Lane, Four Seasons London, 10 Trinity Square, Shangri-La and W illustrate the point; in Paris, there’s Le Royal Monceau – Raffles Park, Shangri-La, The Peninsula and Mandarin Oriental; in Amsterdam, the Hotel de L’Europe and the Conservatorium Hotel; and in Madrid, the Hotel Ritz. There is
considerable interest Even in the rarefied
is going to have to catch up with consumers. Players need to invest in the product to remain ahead, particularly in technology – it is an essential element in a hotel stay.” Rotana recognises this. “It is one example of how we are differentiating ourselves from other luxury brands,” says the company’s executive vice- president and chief operating
atmosphere of the luxury hotel, operators are having to be increasingly competitive to attract and maintain market share, and an inherent part of a luxury stay is stellar service. A recurring theme is the desire to offer the kind of service that removes the burden of administration from guests, so that they can fulfil their business objectives unencumbered, which is important for the senior level of business guest likely to be staying in luxury properties.
Even in the rarefied atmosphere of the luxury hotels, operators are having to be increasingly competitive
officer Omer Kaddouri. “Technology is an essential part of the evolution of the industry. However, the purpose of investing in it is to bring added services to the guest and enhance their experience. This can only be achieved if hotels are responding to guest needs and not to the latest technology available in the market.”
“The people who are staying with us are probably cash rich and time poor – their time is valuable and they expect everything to be done for them, creating a stress-free environment so that they can maximise their time. That comes at a price and people are willing to pay for that,” says Rupert Radford-Hardy,
53
in the French capital from Far Eastern hotel groups. This is in direct response to the appeal of these cities to the newly mobile classes in China and elsewhere in Asia. “They want to make sure they are in places where these outbound markets are travelling to,” says global head of Deloitte’s travel and hospitality advisory practice, Nick van Marken. Conversely, those travellers will seek the reassurance of brands they know and are comfortable with. “And the reason why they are
about to refurbish the Ritz in Paris is because competition has arrived – the consumer will have a choice,” he says. In fact, there has
been considerable refurbishment activity throughout western Europe, including The Stafford London by Kempinski; Kempinski hotels in Bruges and Geneva, plus seven in Germany; and the Kempinski Palais Hensen in Vienna. The Mandarin
Oriental Geneva has undergone a ChF25 million renovation, and the group opens a property in Milan
regional director of sales for Rocco Forte Hotels. London’s Royal Garden Hotel has similar aims. Outstanding service comes in many forms and, during the recession, it has been offering regular guests the chance to store toiletries, shirts and suits at the hotel. “That way, they did not need to put their luggage into the hold and their clothes were in their room when they arrived. It was a problem solver,” says director of sales and marketing Mark Anderson.
in 2013. Starwood has also been upping the ante, with Ws opening in London and Paris, plus refurbishments of Les Méridiens in Paris and Nice; and Fairmont spent £220m on refurbishing The Savoy in London, as well as investing in its properties in Montreux, Monte Carlo, Hamburg and St Andrews. This is all
proof that luxury properties are operating in as competitive an environment as any other segment – which is all to the buyer’s advantage.
RATE OF ATTRITION Rates are a thorny issue. Managing director of hotel booking agency BSI, Trevor Elwood, points out that there has not been a big rise in room rates in the luxury sector: “They have reduced in real terms year on year and, in London, additional five-star hotels have come on-line, making competition even greater,” he says. Many luxury properties see reducing rates as undermining the brand image; they do, however, have to be realistic.