Hotel & Motel Management - February 18, 2008 - (Page 30)

30 Special Report HOTELWORLD H&MM February 18, 2008 | HotelMotel.com Luxury expansion hot in Middle East, Asia By Allie Johnson CONTRIBUTING EDITOR ast year, The Peninsula Hotels opened The Peninsula Tokyo in the bustling ﬁnancial district of Marunouchi—right across from the Imperial Palace. The 314-room luxury hotel, complete with ﬁve L restaurants, a spa and a Japanese ceremony room, was the first new hotel Peninsula had opened in more than ﬁve years, and its opening serves as one example of a recent boom in international growth in the luxury segment. Continuing the company’s expansion—though at a slower pace than some major chains because Peninsula owns and operates most of its own hotels—The Peninsula Shanghai is slated to open in 2009, and the company is looking at other global locations. “It’s a very exciting time for us. We haven’t ever had two openings in such a short space of time, and we’re actively seeking other projects,” said Jean Forrest, general manager of marketing for The Peninsula Hotels. And it’s not just Peninsula. Experts say the time is right for international expansion and growth, and major hotel chains are taking advantage of that. Growth is hap- THE PENINSULA HOTELS The Peninsula Tokyo [shown] was the brand’s ﬁrst new opening in more than ﬁve years. The Peninsula Shanghai is scheduled to open in 2009. pening most rapidly in the Middle East, followed closely by Asia, partly due to increasing tourism in those regions. “We see a lot of development in the Middle East—Dubai, for example—and a lot of expansion in Asia—China and India in particular—all coming on the map with a lot of hotel developments,” said Stephen Hennis, managing director of hotel consulting ﬁrm Hospitium, which specializes in upscale and luxury developments. “The opportunities overseas are amazing right now.” Dubai, in the United Arab Emirates, and Hong Kong garnered high average daily rates and occupancy percentages in 2007. According to Smith Travel Research, Dubai in particular topped global markets in the luxury chains, upper-upscale chains and luxury independents category with an ADR of $362.12. There is room for overseas growth, Hennis said. For example, Hilton Hotels Corp. and Marriott International both were focused on North America and Western Europe until about a decade ago, when they started expanding into Eastern Europe, Asia and South America, he said. “That’s where I think the growth is going to come for these brands in the next decade or two,” Hennis said. “There is a lot of expansion potential for top brands.” That seems to be the case for Marriott International, which is experiencing high global growth. With 115,000 rooms in the pipeline for hotels either under construction, awaiting conversion or approved for development, onethird of the company’s growth in the next few years is expected See Luxury | page 32 CIRCLE NO. 109 http://HotelMotel.com http://www.hospitalityseating.com

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Hotel & Motel Management - February 18, 2008 Contents ALIS Attendees: Bumpy Road Ahead Denihan Expands with James Hotel Purchase AAA Updates its Diamond Rating Guidelines Perspective Letters to the Editor Legal FAQ Satisfaction Trends Sales Clinic HotelWorld Update Trends & Stats Locally Grown Food Gains Popularity Companies Cultivate International Ties Wireless Internet Access Opens Up Possibilities Ice Machine Care Improves Efficiency, Performance The Importance of F&B to Leisure Travelers Lamps/Lighting Transactions Events Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - February 18, 2008

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