Analyses

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Interview with Mr Iqbal Jumabhoy, newly appointed managing director of SilveerNeedle Hospitality

6 min de lecture

Publié le 08/03/12 - Mis à jour le 17/03/22

Following SilverNeedle Hospitality’s recent acquisition of Constellation Hotels, the group has re-launched its Australian operation under the new corporate brand.

What challenges were involved with the process, and how is it progressing thus far

?Iqbal Jumabhoy: The acquisition of Constellation Hotels by SilverNeedle Hospitality was the outcome of a good cultural and people fit. The integration process is underway and has been relatively seamless. While SilverNeedle is a relatively new organization, it has a network of more than 4,000 rooms in operation across Australia, Laos, New Zealand and Thailand. Our Australasia operation is one of the oldest in the industry, having recently celebrated its 25th Anniversary. Our distribution currently comprises some 60 hotels across four core brands, namely Chifley, Country Comfort, Australis, and Sundowner along with a portfolio of non-branded boutique hotels. We have significant plans to shake up the hotel industry by offering a new highly efficient urban hotel brand to the Australian market - NEXT Hotels.The group's expansion plans in Asia Pacific sets a goal of over 10,000 keys by 2016. What will be some of the key factors to achieving this goal?IJ: One of the key factors will be establishing our flagship brand-NEXT. We address the upper-mid market segment and we hope to see our first NEXT brand hotel in 2012. SilverNeedle Hospitality is a product of the new progressive Asia — dynamic, fast growing, energetic. Our aim is to become the leader in Asian hospitality by 2016. Our team will create a network of over 10,000 much-needed rooms over the next five years throughout the Asia-Pacific region. SilverNeedle Hospitality’s urban and resort properties will provide a welcome that will exceed the expectations of the new generation business travellers, and long-term value for stakeholders through a combination of efficient design, innovative services and flawless execution. Another key factor that will spur growth is our expertise in investment, development and management. As an integrated investment, development and management company we understand that the needs of the new Asian traveller is changing. On the development front we aim to bring more value to brick and mortar and more value to our investors. Maximizing revenue from every aspect of a hotel will underpin all our management efforts.We will also build our sales and distribution network across the Asia Pacific region and continue to expand our portfolio of independent boutique hotels. Which markets are being prioritized for development growth, and why these locations in particular?IJ: From a development stand point we will are exploring opportunities in South East Asia and South Asia, specifically in the mid to upscale segment. We will also continue to explore opportunities in Australia and New Zealand .The Asian Hospitality sector presents a unique opportunity for sustained, profitable growth over the next decade. Currently, there are around 360 million visitors arriving into Asia on a yearly basis. At the same time, supply of hotel rooms has not increased by much over the past 5 years. In 2009, there were around 1.9 M hotel rooms across economy through luxury hotel sectors. We forecast that this gap between demand and supply will actually widen in the upper midscale through upscale hotel segments over the next decade. The gap in the Asian market is evident, with India being one of the major contributing factors, fuelling the travel growth patterns in the region. SilverNeedle Hospitality wants to be present in the Indian market. With a regional office established in Bangalore, the team from the office will provide management services to hospitality properties across South Asia as well as invest and develop assets in India.Part your expansion plan is to focus on strategic investment, development and management. Please highlight SilverNeedle’s business ideology and model in being unique with this.IJ: SilverNeedle Hospitality understands that the hospitality landscape is changing. Travellers are looking for enhanced hotel experiences that cater to their needs. Investors are looking for long- term value for their stakeholders. Our business ideology and model is based on a deep understanding of this new landscape. In the development function we will bring value to brick and mortar. We understand that a building should function cost-effectively and be designed intelligently to truly provide value. We will decrease service facilities and provide the most efficient use of space. Maximizing revenue from every aspect of a hotel will underpin all our management efforts. Our approach will reduce staff per key, use technology to enhance the guest experience and outsource key services. Our Investments will primarly focus on efficiently designed and run hotels that are a good fit for our flagship brand-NEXT.What will you bring to the fold in achieving this target and more?IJ: The SilverNeedle Hospitality vision to be the leader in Asian Hospitality by 2016. My aim as Managing Director, CEO and shareholder is to achieve this target. In order to do so my first task will be to integrate the organization and employees. We currently have offices in Singapore, Bangkok, Sydney and Bangalore. Alignment to the SilverNeedle Hospitality vision will enable us as an organization to effectively utilize our strengths to achieve our goal.What hotel management structure is the group opting to run with and why? IJ: Silverneedle Hospitality is a vertically integrated hospitality business and will invest, develop and operate hotels under its brand portfolio in tier 1 and tier 2 markets across Asia. The core brand NEXT has been primarily developed as a lifestyle urban hotel that will focus on the new age business and leisure travelers that aspire to a simplified but well packaged guest service. As well as efficiently designed rooms and public spaces that meet the demands and expectations of the modern well versed traveller.With a management team with well over 300 years of hotel management experience, based in Singapore, Sydney, Bangkok and Bangalore SilverNeedle Hospitality is targeting traditional management contracts, lease contracts, joint venture development opportunities and other strategic investments.Talk us through the flagship brand NEXT Hotels and Resorts; product characteristics, positioning, target customers, and markets best suited?IJ: Inspired by a new Asian Traveler who is globally connected while firmly engaged within the local community, NEXT Hotels and Resorts has been created to deliver an authentic contemporary Asian hotel experience. Our design approach is to eliminate, reduce, enhance and add to the traditional hotel offerings to provide greater value in areas than matter most to our guests and owners. A unique service culture built upon the latest technologies will provide the guest with the ultimate choice: service "just like home" where you get it yourself or being served as would be expected from an authentic Asian hotel. Connectivity to the world while at the same time to the local community is our trade mark.Finally, are you satisfied with the group’s operational performance to date in the region? Which markets are particularly driving growth for the group and where does most potential exists?IJ: As a young organization we’re off to a good start. We have built a significant presence in the Asia Pacific region with over 4000 keys in our first year. 2012 will be an exciting time for SilverNeedle Hospitality. We hope to continue on a strong growth trajectory and achieve many milestones in the year to come.We are looking to build our core business across Asia with a target of 10,000 rooms under management within the next 5 to 7 years. The prime emerging markets in Asia are our key targets with tier 1 and 2 locations in India, South East Asia and China at the top of the list. The growth of emerging market travelers seeking new and enhanced hotel experiences makes all these markets and destinations prime. To further support these goals SNH is looking to invest and develop hospitality projects in these key markets.It is our view that growth in intra Asia travel and inbound international arrivals to Asia as a whole will fuel the opportunities and growth for hotels in the upper mid market sectors. There are of course new and emerging destinations that we are looking at, however significant growth from India, China and Indonesia, driven by aspirational travelers on business and leisure will underpin our business plan for the next 5 years. This is in addition to markets such as Thailand, which despite geopolitical challenges, arrival continue to grow year on year.In addition to this, we will continue to strengthen our operations in Australia and New Zealand, which are strong markets with a high demand for hotels in the mid-upper scale.

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