Home' Hotel Management : HM JUNE 2016 Contents With the election due in July, it will be very
important for the hotel industry to remind MPs
and Senators of the contribution that the industry
is making to the economy and, in particular,
employment. Few other industries in Australia can
match our sector for employment potential.
The industry's successful introduction of a Hotel
Career Expo in May has put the focus on our role
in not just creating jobs, but developing careers.
Professionalism needs to be the key focus of the
industry, because with a vast collection of new hotels
entering the market over the next five years, we
need an equally transformational attitude to service.
Leading into the election campaign our two key
pillars are 'labour and skills' and 'promoting tourism
growth and investment'.
For some time now we have called on
Governments to invest in tourism infrastructure
and to recognise the tourism and hospitality sector
for its economic potential. Thanks to the strong
growth in demand, we are now seeing greater
recognition and investment by governments in
the sector. This is evidenced in new convention
centres, extensions to airports, new cruise facilities
and significant promotional funds dedicated to
marketing Australia overseas.
However we need Governments to also address
some of the structural issues a ecting productivity
in the industry. TAA Chair Martin Ferguson made
a very strong and public call for all parties and the
unions to accept the 'umpire's decision' when the
FWC review into the Hospitality Award is handed
down later this year. Following that call, the Leader
of the Opposition, Bill Shorten, said publicly that
they would accept the verdict.
This is very positive, as the FWC is an independent
review board that specialises in labour issues and
is best placed to make such a judgement. We are
hopeful that the lead provided by the Productivity
Commission recommending that Sunday penalty
rates should be brought into line with Saturday will
be accepted by the FWC because the majority
of people now accept that the award conditions
established some 50 years ago do not apply today.
In our submissions to the FWC, we also advocated
that a new era for the Award should include a
change of terminology. Being paid significantly
extra for working on weekends or public holidays
shouldn't be referred to as 'penalty' rates, but
rather 'additional remuneration', reflecting that the
extra payment is a loading -- hardly a penalty.
It is very encouraging that government has
accepted tourism and hospitality as a first-tier
industry for Australia's future economic growth.
This will hopefully translate into the quality of the
talent hotels can attract into the industry.
A change of perception and culture is just as
important as a new building boom. With the right
support and mentoring and genuine career paths,
the new breed of workers in our industry should
really help set up a golden era for the Australian
Carol Giuseppi is CEO of Tourism
Accommodation Australia (TAA)
China's HNA Tourism Group, a division
of HNA Group, a Fortune Global 500
company with operations across aviation,
tourism, hospitality, finance, and online
services among other sectors, and Carlson
Hospitality Group have announced
they have entered an agreement for the
acquisition of Carlson Hotels globally.
Carlson Hotels owns the Quorvus
Collection, Radisson Blu, Radisson,
Radisson Red, Park Plaza, Park Inn by
Radisson, Country Inns and Suites By
Carlson brands and the Club Carlson global
hotel rewards program.
"Since my grandfather, Curt Carlson,
founded our company in 1938, our family
has run businesses that create opportunity
for people and positive change in the
world," said Diana Nelson, Carlson's chair
of the Board.
"Hospitality is in our hearts, which made
this a di cult decision.
"We strongly believe that selling our
hotel business to HNA Tourism Group,
a company that fully recognises its value
and heritage, is the best way for us to
position it for success and to be true to my
grandfather's legacy in the long term."
The companies say the combination of
HNA Tourism Group and Carlson Hotels
will have increased ability to accelerate
growth through investments in areas such
as digital, owned assets in major gateway
cities, building of Radisson Red and other
"Carlson Hotels own a powerful set of
global brands and this historic agreement
provides tremendous opportunities for
growth," said David P. Berg, Carlson
Hospitality Group Chief Executive O cer.
"We look forward to working within HNA
Tourism Group, a greatly respected global
enterprise, in what will be an exciting new
chapter in the history of Carlson Hotels.
"As part of HNA Tourism Group, Carlson
Hotels will have an opportunity to advance
our commitment to providing guests with
hospitality world-wide," Berg said.
Under the terms of the Agreement,
which were unanimously approved by the
Carlson Board of Directors, HNA Tourism
Group will acquire all of Carlson Hotels,
including its approximately 51.3 per cent
majority stake in Rezidor Hotel Group AB,
Carlson Hotel's master licensee based in
Brussels, with hotels in Europe, the Middle
East and Africa.
"We have great respect for the Carlson
family and a deep appreciation for its history
and special culture," said Haibo Bai, HNA
Tourism Group board member and HNA
Hospitality Group Chairman and CEO.
"Carlson Hotels' global success and
strong, sustainable growth potential
is a testament to their world-class
brands, continuous innovation, excellent
management, and unique employee-
focused culture, all of which we will build
upon as part of this combination to establish
our presence in the U.S. market and expand
our footprint in hospitality internationally.
"We look forward to working together
with their management team, employees,
franchisee partners, suppliers and customers
to accelerate growth by investing
substantially in the business," he said.
The transaction is subject to receipt of
regulatory approvals and other customary
closing conditions, and is expected to close
in the second half of (calendar) 2016.
CHINA'S HNA GROUP TO
ACQUIRE CARLSON HOTELS
Carlson Hotels is set to be acquired by China's HNA Tourism Group
10 HM The Business of Accommodation
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