Home' Hotel Management : HM FEB 2017 Contents This year, 2017, is one which no-one can actually work out the economic direction of the hotel
industry or the economic impact of the global economy. We see a continuing cooling of the
boom economies, especial China although India has very positive economic vibes. We have
Europe going through economic challenges and the Brexit situation is throwing the whole of
Europe and the European Community into an uncertain economic environment compounded
by the huge refugee migration not only from Syria but also Northern Africa. The political
uncertainty in the major European nationsis another dimension of uncertainty. The political
and economic confusion of Italy and Greece are further challenges.
The Middle East will see a restructuring of power and geographical relationships in
the next two years triggered by the security and political issues of Turkey and Syria.
The United States, under President-Elect Donald Trump will develop into a stronger
nation of direction, foreign policy and economics. Trump will communicate very clear
decisions and he will set the initiatives on the global stage. He will manage with decisive
decisions and direct communication.
Despite these global political, security and economic issues, I still have positive
confidence in the 2017 hotel industry as the travel, tourism and business travel industries
are very resilient due to the need to ‘get on with business’. The business community has
to continue travelling to meet the demands of their business developments and business
management and the leisure business will continue to be driven by the growth in air and sea
travel especially based on the tremendous aviation growth in the Middle East and Asia.
Swiss-Belhotel International has had a very strong and interesting 2016 when we
took on long term leases in Australia and New Zealand, as well as investing in a hotel real
estate opportunity in Queenstown, New Zealand which are new economic models for
the group as for the last 30 years our business approach has been as a pure international
hotel management company. This gives a balance sheet depth to the company as well as
taking on new risks. Also in 2016 Swiss-Belhotel International entered into negotiation
on a number of management opportunities in Europe and has opened up opportunities
in Jordan, Saudi Arabia and Egypt. Australia and New Zealand have booming tourism
growth due to their safe and politically stable environments as well as being the new
tourism frontiers for China, India and Asia. Swiss-Belhotel International will continue
its focus on the South Pacific as more management and investment opportunities arise.
The push into The Middle East and Europe are again capitalising on opportunities as
Swiss-Belhotel International expands its 12-brands suite and is also looking into the two-
star designer opportunities arising from the new Zest brand, sub-branded into Zest Plus,
Zest and Zest OK. This brings diversification into the group’s global expansion.
Indonesia is still a major portion of the group’s structure and business with over 60
operations of its total 140 operations and projects, however the recent expansion is stabilising
its growth. Indonesia has had challenges similar to the rest of Asia with economic slow-
down and currency weakness which has impacted on projects and profitability.
With all these political and economic challenges, Swiss-Belhotel International is
continuing its frugal and cautious business approach however with an aggressive drive of
efficiency, productivity and passion and professionalism – the key elements to it’s culture.
The development of technology and different business approaches is a challenge to
all businesses. But in particular the hotel industry has to contend with Airbnb, Uber, the
Online Travel Agents (OTAs) and other developments which have yet to hit the markets.
Airbnb has entered the hotel investment business; C-Trip is now owning and managing
hotels; other internet companies are looking at hotel investment and as well as many many
new brands being developed – traditional fashion house brands and automobile brands are
“applying” their brands to the hotel industry. Competition is coming from all directions and
so often not from traditional areas of the business. The hotel industry and hoteliers are slow
to recognise change and are usually forced to change by the market. Innovation in the hotel
industry is so often coming from the entrepreneur and the
technical people outside the industry who are so often new
to the business. They see hoteling as an underperforming
and often poorly managed industry; poorly invested and
financially structured and usually poorly financially managed
giving below investment market expectations and return
on investment requirements. These elements have led to
massive management company consolidation in 2015 and
2016 such as Marriott and Starwood; Accor’s major brand
acquisitions and the focus by China based investors into
hotel management and hotel real estate. This will continue
Swiss-Belhotel International is focused on being an
alternative second-tier international management group
which has been achieved very successfully in the last 10
years. The Group will be focused on more management
contracts and investments in the security safe tourism areas
of Australia, New Zealand and the South Pacific. Strategic
partnerships are being negotiated in Asia and The Middle
East but such partnerships will be entered into cautiously.
Performance growth in 2016 was 25 per cent ahead of 2014
and 2017 will continue this trend and is expected to reflect
financial performance growth of Swiss-Belhotel International
as a company will be at least 35 per cent.
The group will continue to open a hotel every 6-8 weeks
during 2017 and this growth is already attracting financial
Swiss-Belhotel International is a flexible and
imaginative company which is focused on its market
position but looking for growth opportunity through
operational expansion and investment fund support.
Number of hotels & rooms (Globally):
75 hotels / 11,819 rooms
Number of hotels & rooms (Asia-Pacific):
64 hotels / 10,136 rooms
Number of hotels & rooms (Australia,
New Zealand and South Pacific): 5 hotels / 729 rooms
Number of employees (Globally): 7,091
Year first hotel opened (Globally): 1991
Year the company was founded: 1987
Brands in the organisation: 14 (Grand Swiss-Belhotel,
Grand Swiss-Belresort, Swiss-Belhotel, Swiss-Belresort,
Swiss-Belsuites, Swiss-Belvillas, Swiss-Belboutique,
Swiss-Belresidences, Swiss-Belinn, Swiss-Belcourt, Swiss-
Belexpress, Zest Hotel Plus, Zest Hotel, Zest Hotel Ok)
Head office location (Globally): Hong Kong
Chairman and President
44 HM The Business of Accommodation
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