EVENT


Shangri La’s Rasa Ria Resort, Kota Kinabalu, Malaysia 10-12 November 2010


After its successful launch twelve months ago, HI Design Asia returns with a 30% increase in attendance and talk of a promising future for both the event and the region.


Words: Catherine Martin Photography: Richard Pereira


musicians. The jovial beats somehow set the mood for the days ahead where conversations of recovery, increased revPAR, and new hotel developments were plentiful. Keeping to the format of its well-established sister event in Europe, HI Design Asia kicked off with a welcome reception and dinner, to be followed by two packed days of seminars, one-to-one business meetings, a suppliers showcase, and further networking opportunities. A chat with the organisers – Atticus Events founders Jonathan Needs and James Burke – revealed that the concept itself, best described as “a business form of speed- dating”, originated from a business meetings forum held on board a cruise ship. Having launched HOTEC – a forum for hotel owners, developers and operators – in 2000, Needs and Burke identified a gap in the market for “what is essentially the most important part of business, the meeting between buyer and seller.” The first HI Design was held in Stockholm in 2006 and the event has since gone from strength to strength, launching in Asia in 2009 in the midst of an international financial crisis. “HI Design Asia has gone on to grow by 30% this year,” comments Burke, explaining: “Obviously the buoyancy of the


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rriving at Shangri La’s Rasa Ria Resort, delegates for the second HI Design Asia were treated to an impromptu performance by local


Asia Pacific market has something to do with it but the region doesn’t have another design- led event and we’ve found that HI Design is a format the delegates here like.” The success of the inaugural event in


Penang last year has resulted in an increase in attendees in 2010 bringing the total number of hotel operators, purchasing companies, interior designers, and suppliers to 180. Around 50% of these are new delegates demonstrating the dynamic nature of HI Design and ensuring buyers with the most active pipelines are present. Talking of pipelines, Jonas Ögren, Area Director Asia at STR Global, set the scene on the opening morning highlighting confirmed hospitality projects in the region as well as revealing year-on-year RevPAR data. Initial figures looked impressive with a 22.7% increase in RevPAR for year-to-September 2010, but closer inspection showed a shortfall of pre-recession levels given the 26.4% RevPAR decline for year-to-September 2009. The figures do however demonstrate the resilience of the region and what could become a speedy recovery. A closer look at Asia Pacific revealed that ten out of the eleven markets examined enjoyed positive RevPAR changes compared with just two the previous year. Shanghai and Hong Kong were the best performers with remarkable 62.6% and 35.9% increases respectively, Ögren explained.


134 JANUARY / FEBRUARY 2011 WWW.SLEEPERMAGAZINE.COM


Occupancy and average room rate were again encouraging in comparison with 2009 figures, likely due to demand picking up. As the presentation turned to pipeline, suppliers were keen to discover the true potential of the region. According to STR Global, 319 hotels, or 68,445 guestrooms, have opened in the last twelve months whilst a pipeline of 1065 hotels (259,898 guestrooms) were recorded as being under construction or in planning and final planning. Another 287 hotels (66,117 guestrooms) were said to be in the pre-planning stage. The overwhelming majority of pipeline was in China and India confirming these countries as development hotspots. Sharing his experience of the hospitality


industry in Asia, Warren Foster-Brown, founder of design firm F.B.Eye was interviewed on stage by presenter Guy Dittrich. Based out of Singapore, Foster- Brown confirmed seven active projects throughout Asia with several more on hold. “India is great for us right now,” he commented, citing projects for Starwood’s Le Meridien brand and a new four-star concept for Mahindra Hotels. When quizzed on current market conditions, the designer believed that the market was “coming back”, explaining that clients still want to spend the money but over a longer time frame. He was less optimistic about the Middle East however,


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