FRHI pursues tri-brand growth strategy
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Marty Kandrac, executive vice president & real estate and development officer, FRHI Hotels & Resorts, outlines the hospitality firm’s global expansion plans for its three brands – Fairmont Hotels & Resorts, Raffles Hotels & Resorts and Swissôtel Hotels & Resorts.
What are the key areas of focus for FRHI’s development plans and why?
We see many opportunities for future development, but are approaching growth in a smart and strategic way. We’ve identified top markets where we’d like to see our brands have a presence, and for the most part they are leading cities and in-demand resort destinations globally. On a regional level, China has been a very active market for us, and we see this continuing. Another key area is the Middle East where we are hoping to double our regional footprint by 2020. New developments are set to open in key strategic markets such as Saudi Arabia and the UAE. We also recently announced two new hotel projects in Egypt, which nicely complement our previously announced tri-brand hotel development in Sharm El-Sheikh that will feature a Fairmont, Raffles and Swissotel.
Which brand has the most potential in terms of the biggest pipeline and why?
From a pure volume perspective, Fairmont and Swissotel are the brands with the most robust pipelines. Raffles, our smallest brand in terms of number of hotels at present, will see the highest percentage of growth. Growth for all of our brands is top priority and our company has embraced a steady, aggressive pace of growth, opening new properties in strategic and emerging markets around the world. The result of this is a 50% projection of growth over the next five years.
How do these development plans break down by brand in each region?
In terms of Eastern Europe, Raffles Hotels & Resorts will open in Warsaw in 2016, which is a market largely unexplored by the luxury tourism market in the UK. It is an extremely exciting venture, particularly as the physical property is a landmark of the city, which is so fitting with the heritage of the Raffles brand. Our tri-brand development in Egypt is also an extremely exciting project as it will be the first time all three brands will be represented together. It will allow regular guests of one brand to explore and familiarise themselves with the other brands they may not know as well. This helps to promote the FRHI brand further as well as showcase each brand individually.
What plans do you have that will interest the UK market specifically?
This summer we will open Swissotel Bodrum, which is definitely a property for the UK market with several new airlines launching routes from the UK this year.
We also added a new hotel in Barcelona recently, which has always been a key destination for UK travellers, and the same could also be said for Sharm El Sheikh where our tri-brand development is located. A new hotel being developed in Bulgaria’s capital of Sofia also adds to our European development activity, as does a second Swissotel being developed in Istanbul that is expected to debut in 2019. Looking at some of the gaps, we’d like to see a Raffles hotel in London, and think the market can sustain another Fairmont hotel too. Taking a larger European view, increasing our exposure in Paris is a must. Other top targets include Rome, Prague, Milan and Madrid to name a few.
With two new properties announced in Egypt; what potential do you see in this market?
We think Egypt is poised for a rebound. The security situation has improved dramatically and the market is beginning to see greater demand for travel and tourism. Many are predicting double-digit growth and a return to pre-2010 levels when the market was at its peak.
What major hotel design influences are you rolling out at your upcoming properties and how does this vary from brand to brand?
Technology has always been a key design focus for us at FRHI as we aim to seamlessly integrate beautiful design with state-of-the-art technology which makes the stay experience more seamless. That being said we always bring a sense of place to each property in the design so that it is in fitting with its surroundings and that by just walking into the hotel you can feel it’s authenticity to the local area.
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