Home' Hotel Management : HM FEB 2017 Contents Hotel design through new eyes
– the new designer
2 May 2017
Grand Hyatt, Melbourne
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We’re optimistic about 2017, expecting consistent performance in the major markets of
Sydney, Melbourne and Auckland, with strong improvement in some of our regional
markets too. We think 2017 will be a positive year, with growing business confidence and
the imbalance between supply and demand set to continue.
The number one challenge for many independent operators is the rising costs of
distribution. We believe the value proposition of hotel brands reducing these costs will
become clearer and more highly valued than they are today.
With regards to disruptors in the industry like Airbnb, we believe as long as the
rules/requirements are fair for all operators then there’s nothing wrong with healthy
competition. We’re backing the AAoA to continue their good work in lobbying
government to ensure that it is a level playing field.
The focus for our franchisees is on ensuring the customer experience at their
properties is the best it can be in terms of service, recognition and added benefits, like
loyalty points, which most of these disruptors can’t compete with.
I’m not sure you would classify China as an emerging market anymore, with more
than 1 million visitors arriving to our shores in the last 12 months. We’re seeing more
and more visitors from China through our properties, not only in the major markets,
but in many regional locations too. We feel that the growth of the Chinese market will
continue, especially into our regional centres and tourist drive areas, as these visitors look
for different experiences on their second or third visits.
Last year, 2016, was a positive year for growth for Choice Hotels Asia-Pac with 18
new properties added to the network and a healthy pipeline of prospects, many of which
will open in the next 12 months.
Business delivery to our properties has increased almost 30 per cent year on year and
RevPAR is up almost 6 per cent compared to 2015, so it’s been a positive 12 months for
the majority of our franchisees.
The continued growth of our loyalty program, Choice Privileges, has been a highlight
over the last 12 months with more than 60,000 new members added to the program,
taking the total membership base to more than 300,000 in the Asia-Pac region. Revenue
delivery to our properties through this program has increased by 20% year on year,
making Choice Privileges a very important (and low cost) part of the distribution mix
to our properties. In October we launched the Choice Privileges Member Rate across
our portfolio, offering a 5 per cent discount off the BAR rate when booking direct for
our existing Choice Privileges Members, or for new members who sign up during the
reservation process. Whilst this new initiative was only launched a few months ago, the
early signs have been every pleasing.
Last year, 2016, was also another huge year for our partnership with our Australian
based charity, Kids Under Cover. Through the generosity of our franchisees we were
able to raise AUD$60,000 to fund the construction of a studio unit in the backyard of a
property in Melbourne, which will assist a young person who is at risk of homelessness
stay close to her family. A number of franchisees and Choice Hotels Asia-Pac employees
rolled up their sleeves and got their hands dirty on site, helping to complete the build.
We look forward to welcoming our first three properties into China in Q1 2017,
which we’re all very excited about. We’ll continue to drive our development energies here
in Australia and New Zealand along with Singapore and mainland China in 2017.
Chief Executive Officer
Choice Hotels Asia-Pac
SNAPSHOT: CHOICE HOTELS ASIA-PAC
Number of hotels & rooms (Asia-Pacific):
228 hotels / 10,636 rooms
Number of employees (Asia-Pacific): 5000
Year first hotel opened (Asia-Pacific): 1999
Year the company was founded: 1939
Brands in the organisation: 5 (Econo Lodge, Comfort,
Quality, Clarion, Ascend Hotel Collection)
Head office location (Asia-Pacific):
54 HM The Business of Accommodation
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