BERLIN — A snap decision that is too reactionary to current events or headwinds could lead to long-term pain for the global hotel industry.
David Taylor, CEO, Kew Green Hotels, said in an interview at the International Hospitality Investment Forum EMEA that the time is now for hoteliers to be patient and resilient in the face of geopolitical headwinds. Sticking to a nimble strategy is what hotel owners and investors want to see, he added.
As for the current geopolitical crisis in the Middle East, Taylor said there has not been any effect on his company's hotels yet. But he expects some overall impact on energy prices and rising inflation.
“The U.K. has a lot of inbound. There is a question mark as to whether that will be affected at this stage. … [But] we are very used to dealing with crises … in this industry, and we are very good at reading the data as well and looking at the signs, and I think if we saw some stress in the market, we’d be pretty quick to react to that and to make sure we protect our investors,” he said.
That uncertainty is yet another reason to hone long-term strategies, Taylor added.
Kew Green and its owner China Travel Group have a high proportion of owned hotels, but he noted the portfolio it manages on behalf of other brands and owners requires the same level of care and excellence.
Owners “have to trust us with their assets. We have to treat all hotels as we would our own,” he said.
Beginning in 2000 in a coffee shop off Kew Green, London, Kew Green Hotels was acquired in 2015 by CTG subsidiary Hong Kong China Travel Service. The new owner subsequently built up Kew Green Hotels via acquisitions to approximately 50 hotels, 40 of which Taylor said are owned outright.
“CTG has been investing in the portfolio, and now we’re ready for the next stage of growth.”
The past few years have been about getting the right levels of management and back-of-house and operational infrastructure, Taylor said.
CTG is “eager for us now to use the skills we’ve developed over the last five or so years, currently, mainly in U.K. under Kew Green, but also under CTG in Asia, with more than 200 [hotels] both owned and managed,” he said.
He added Kew Green and CTG have a great relationship and learn from one another to apply technology to improve the hotel guest experience and make each property more efficient.
Being a successful white-label hotel manager with several internationally branded hotel partners gives Kew Green a loud voice at the table, and in the current geopolitical landscape, that is a must, Taylor said.
Kew Green can “test and learn, so we can create a situation where we almost have got a living laboratory in some hotels, and I think that really interests the big brands, but at the same time it also interests investors,” he said.
For the full interview with Kew Green Hotels' David Taylor, click on the video or podcast embedded above.