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Peter Borer, COO, Peninsula Hotels

5 min reading time

Published on 15/10/15 - Updated on 17/03/22

Peter Borer is the chief operating officer at Peninsula Hotels and vice president Hong Kong and Shanghai Hotels, since 2004. He joined the group in 1981 after a first experience in the luxury hotel industry in the United States. He has held executive and managerial positions, and was general manager of the Peninsula Hong Kong, and group general manager for Asia. He graduated from the Lausanne Hotel School.

What makes your group different from other Asian and international hotel groups?

It is important to look at the group's origins. The Hong Kong and Shanghai Hotels Ltd, the holding that manages the Peninsula Hotels brand, is a business that has belonged to the Kadoorie family since 1858. Soon we will celebrate the 150th anniversary of the company, which makes it the the oldest hotel in Asia and practically worldwide. The management philosophy is imbued with this family culture that suggests that all our strategies have been established for the long term. The value of the properties, for example, is part of the group's DNA. There is not a single development project in which we are not financially involved, whether as a majority or not.

Doesn't that slow development and prevent reaching the necessary critical size?

We don't develop for development's sake. There is no growth requirement to please shareholders. Each project is part of a will to be in the right place with a long-term project. Our goal is to control each new property and I am personally very involved in the construction and choice of our partners. This was true in Paris, And it is already true for our ongoing projects in London, Istanbul and Rangoon. Peninsula Hotels, today means eleven exceptional properties. We are certainly going to double this number in order to be on the markets that matter, but it is not urgent and our shareholder has imposed no goal.

Could your ownership approach eventually go hand-in-hand with the development of pure management contracts on behalf of the other owners?

We have already been asked, particularly in countries in the Middle East, but our answer is no. We are not trying to manage hotels that we do not own in part. This guarantees that everything that goes into the strength and ADN of Peninsula Hotels cannot be contested by an owner who has other motivations, no matter how commendable they may be.

Do you consider yourselves to be an Asian group that is beginning to leave its natural territory? or a group with a global reach?

When I joined the group 35 years ago we were only present in Asia. Then we went to the United States and for a while the US and Asia were our only areas for development. For several years, it has been our mission to become a global chain with Asian roots and a philosophy of service that nonetheless does not claim to be solely Asian. The Kadoorie family is Asian in origin. An incredible number of different nationalities work in the group and I like this very multilingual aspect. I also believe that if you go into any one of our hotels in -Paris, Chicago, Tokyo or Hong Kong- there is a very strong local flavor. Our hotels are almost all historic buildings, bearing the heritage of the local culture.

This is also the case for three projects that you recently announced, that prolong your internationalization...

In fact, in Istanbul we signed a partnership last July with several local groups (PIHA, SLI, Doğuş Holding and BLG NDLR), that will own 50% of the joint-venture to convert several buildings into a 180-room luxury hotel, with a ballroom, spa, restaurants… It is a former customs house at the frontier of Golden Horn near the Galata Bbridge that will be at the heart of the hotel, with two small byzantine palaces on each side to expand its capacity. It will have a breathtaking view of the Bosporus.

In Rangoon, in Myanmar, the group signed a protocol with a Singaporean company Yoma Strategic Holdings Ltd that will bear on a project to open a hotel in the buildings of the former offices of Myanmar Railway Company, located on Bogyoke Aung San Road. According to plans and photos in our possession, after renovation the property will be a little 80-room gem come 2020.

And in Western Europe, a 190-room hotel project was presented to the Municipal Council of Westminster, in London, to convert a former bank into a modern luxury property. It is a matter of a new construction, that will benefit one of the best addresses in the British capital, at Hyde Park Corner, with a view of Buckingham Palace gardens.

Certain areas that you have chosen are not the calmest at this time, aren't you worried about the impact this may have on your business?

After a fantastic opening, the Peninsula went through a difficult period after the attacks at Charlie Hebdo. I could tell you about the very difficult months that I experienced as general manager of the Peninsula Hong Kong during the SARS crisis. It is a lucky thing to belong to a solid group that has a very far-seeing vision, by being ready to manage a complicated period anywhere on the planet.

Do you believe that clientele who are wealthy enough to maintain a luxury hotel industry will continue to exist?

Absolutely. This morning I read that China now has a middle class that, in terms of revenues, is superior to that in the United States. When the middle class in a country grows, it is the foundation on which a well-to-do clientele will grow. Of course accidents will happen, as we are experiencing right now with Brazilian clientele that are slipping off, but the trend is solid.

Are you tempted to launch a chain that addresses a middle class?

No, We have opted for coherency in luxury. We had a contiguous hotel for the Peninsula Hong Kong, the Kowloon Hotel that addressed this clientèle. We sold it and have abandoned any ideas for brand diversification.

What are the next areas for development?

We are carefully looking at Latin America and India. Our presence there would be justified.

Editor's note: origin of the group lies in the construction of Astor House Hotel in 1858, in Shanghai, which was considered the most modern hotel in China at the time. It was followed by the Palace Hotel in 1907, the Kalee Hotel in 1920 and the Majestic Hotel in 1924. They were all sold after the Sino-Japanese conflict in the 30s. The Hong Kong flagship opened in 1928. The results published in 2013 were for 570 million euros, for an Ebitda of 135 million euros

The Peninsula Hotels

The Peninsula Hotels

Chaîne hôtelière

  • The Peninsula Hotels Hong Kong
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