SINGAPORE—Patina Hotels & Resorts, which launched in 2012, has not yet opened its first hotel but already has growth plans, private owners with cash to spend and an experienced CEO.
Sitting down with Hotel News Now at the recent International Hotel Investment Forum in Berlin, CEO Marc Dardenne, said his goal for the Patina brand was for it to be an “Andaz on steroids,” referring to the brand from Hyatt Hotels Corporation, a company he once worked for.
“A director of sales and marketing (for Patina) has been in place for more than a year now. It is currently a brand of one, but being privately owned, brand expansion is not driven by the numbers,” Dardenne said.
The first Patina property, the 157-room Patina, Capitol Singapore, will open in July and will be affiliated with Leading Hotels of the World. It’s part of the luxury Capitol Singapore lifestyle development, most of which debuted in late 2014.
The hotel is a 50/50 joint venture with Singapore-based Capitol Investment Holdings Pte. Limited.
Opening in Singapore does not come without challenges, Dardenne said.
“Singapore is driven by land prices, so mixed-use development helps. We have a 99-year lease on the property, although due to government policy the usual route is to buy.
“The hotel was complicated due to it consisting of two adjacent structures, one of which had historical importance and thus was subject to strict building regulations,” he added.
Included in the hotel’s offerings are an 800-seat theater, 150,000 square feet of retail space, 39 penthouses and a restaurant serving Japanese-Peruvian cuisine.
“The ramp-up on the property is quite good due to its location, and we see good occupancy already that will stabilize by next year, a mix of leisure and business. Our model will be a combination of upselling regular rooms and instigating dynamic pricing,” Dardenne said.
Singapore is a star market in the Southeastern Asia region.
According to STR Global, Hotel News Now’s sister company, average daily rates in the luxury class in Singapore stood at 371.43 Singapore dollars ($272), a 0.3% increase on a 12-month rolling basis to February 2015, almost identical to equivalent ADR in competitor Hong Kong for the same time period, 2,926.69 Hong Kong dollars ($378), a 0.5% increase.
In the entire Southeastern Asia region, luxury class ADR is $222.22.
Expansion
Patina will seek third-party management contracts in Asia before striking farther afield, Dardenne said.
That process already has begun.
In January, Patina announced its second property, The Patina, Thanburudhoo Maldives, in the Indian Ocean island-nation of The Maldives. It will also be a joint venture, this time with fellow Singaporean firm Telos Investment. The hotel will have 70 keys, 40 of which will sit over the water.
“We have a 35-year lease with the opportunity for an extension, and the return on investment is astronomical,” Dardenne said.
Dardenne added that Sydney is on his radar, as is Shanghai, which would most likely happen via a pure management agreement.
“We have looked at opportunities in Europe, but the first priority is Asia, with Thailand, China, Indonesia and maybe Dubai top of the list,” Dardenne said.
Art and architecture
According to Dardenne, Patina hotels will be bold statements of architecture and art and will include art from owners the Kwee family.
Designing the debut property is architect Richard Meier, whose previous arts-related work includes the Getty Center in Los Angeles and Barcelona Museum of Contemporary Art.
“The choice of brand name, Patina, is apt—a shine on a masterpiece that improves with age,” Dardenne said.
Another focus will be on local experiences.
“I know that is not ground-breaking, but it is something that again will add shine, and staff will be passionate and treat the hotel as a hobby as well as a service role. Quality and lifestyle are paramount,” Dardenne added.
Patina’s owners are the billionaire Kwee family, which has an established ownership portfolio in the city-nation of Singapore, including the 112-room Capella Singapore, the 507-room Conrad Centennial, the 440-room Regent and the 608-room Ritz-Carlton, Millenia hotels.
Dardenne, too, has an enviable curriculum vitae.
Born in Belgium, he grew up in Switzerland, where his love for hotels began during his teen years and he attended the Ecole Hôtelière de Lausanne, Switzerland. After graduating, he worked in such countries as Kuwait (for Hilton), The Philippines (for Hyatt) and, his first post, Benin (as a food-and-beverage manager for Sheraton).
His career also has seen him work for Ritz-Carlton; launch Armani Hotels’ first properties in Dubai and Milan; develop The Address Hotels + Resorts portfolio, and open restaurant At.mosphere Restaurant & Lounge in Dubai’s Burj Khalifa.
Before joining Patina, Dardenne was CEO of Emaar Hospitality Group, the hotels division of the United Arab Emirates’ sovereign wealth fund.