Business management & development
lot about the way expectations are evolving,” says Willemijn Geels, IHG’s vice-zzpresident Development Europe. “Up to the end of September 2023, luxury and lifestyle brands showcased 40% of all signings in Europe, Middle East, Africa and Asia.”
Know your customer The global population of HNWIs is not only growing in, but also becoming more diverse. The range of experiences and destinations they seek continues to evolve, though the traditional luxury experience in well-established destinations remains as attractive as ever. In getting to understand their customers’ needs, luxury brands must take a balanced approach to existing assets and new opportunities. “Post-Covid, it is fairly clear that leisure-driven hotels and the resort segment had the lion’s share in the guests’ hearts and wallets,” observes Francesco Cefalu, chief digital officer at Mandarin Oriental. “I believe it is a combination of realising the value of a scarce resource such as time – and the desire to make the most out of it – and a general trend towards valuing luxury experiences even more than goods.” Cefalu’s current development strategy is two-
fold. The first strand is to enhance luxury offerings and experiences across existing properties, ensuring they align with the expectations of increasingly affluent guests.
“This involves investing in state-of-the-art
amenities, personalised services and unique, culturally relevant experiences that resonate with the elevated preferences of HNW guests,” he remarks. “Secondly, given the concentrated wealth among specific demographics, we are actively exploring strategic expansion into key markets. This includes exploring regions that experience economic growth in the luxury segment and emerging markets.” The overall goal, echoed by other operators, is to
establish a presence in key destinations that resonate with affluent guests while also aiming to identify those destinations that could come to promience in the future early. At IHG, the approach is to have a luxury offering to suit everyone. InterContinental Hotels & Resorts is thriving as a key pillar of IHG’s global portfolio, the Regent and Kimpton brands are making their debuts and Hotel Indigo is expanding rapidly. Regent has recently added iconic properties
like the Carlton Cannes, and Kimpton’s impressive pipeline, which includes a 155-key new build property in Frankfurt as part of one of Europe’s largest inner-city developments, is consistently popular with guests. The luxury and lifestyle conversion brand Vignette Collection also has 25 open and pipeline properties worldwide, among the recent additions being Europe’s first Vignette Collection property, Casa da Companhia in Porto.
Hotel Management International /
www.hmi-online.com
“What sets our approach apart is the strength and breadth of our global enterprise,” says Geels. “While we engage in selective development, our owners benefit from the vast resources, market intelligence, and operational expertise that come with being part of a global hospitality leader. This dual strategy ensures that our luxury brands not only thrive in exclusive locations but also benefit from the comprehensive support network provided by IHG’s global presence.”
Balancing exclusivity with ROI As Geels points out, portfolio expansion in the luxury market is happening in all regions of the world: the key to finding developments that provide a return on investment is less about the potential of a particular country or destination, and more about the unique qualities a particular development can provide. “HNWI preferences are constantly changing,” remarks Hazelton. “In recent years, there has been a trend towards experiential travel. They are looking
for experiences that are authentic, immersive and unforgettable. In addition to experiential travel, there is also a trend towards wellness and sustainability, as they are increasingly interested in healthy and eco- conscious lifestyles and are looking for brands that share the same ethos and mindset.” Kerzner has experience in developing, investing and building resorts in some of the world’s most remote, pristine unlocked destinations as well as the most coveted urban addresses. Its One&Only, Atlantis and more recent new brands SIRO and Rare Finds exemplify this approach. “Our resorts are located in extraordinary
nature, alpine, beach and urban destinations,” adds Hazelton. “Each property offers a curated selection of exceptional, once-in-a-lifetime experiences that celebrate the local culture, landscapes and communities in which they are located. Across each of our differentiated brands and distinctive destinations,
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Above: As a Kerzner property, the One&Only Mandarina utilises its unique location, overlooking the Mexican rainforest.
Opposite: Another of the properties in Kerzner portfolio includes Atlantis The Royal, Dubai.
Mandarin Oriental
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