LOS ANGELES—With several high-profile acquisitions under their belts and a new brand at the ready, executives at Millennium & Copthorne Hotels are eager to build from their existing footprint to expand around the globe.
The company on Monday announced the launch of the Monogram Collection, which will comprise hotels with individual, historic, stylish or unique characteristics ranging from heritage to designer lifestyle, according to a news release.
The first addition was The Chelsea Harbour Hotel, the former Wyndham Grand London Chelsea Harbour that Millennium acquired in late December 2013.
Executives said it was too early to comment more broadly on the Monogram Collection, although Colin Wang, regional general manager for North America, in an earlier interview outlined the group’s strategy in the region he oversees and beyond.
A primary driver of growth will be continued acquisition of real estate, he said, pointing to the $273.6-million purchase of the recently renovated Novotel New York Times Square as a prime example.
The hotel will retain its Novotel flag because of an existing management contract, the presence of which does not deter Millennium executives. The group’s top priority is to hold significant assets in the most desirable locations. The parent company also owns the Grand Hyatt Taipei, the W Singapore, St. Regis Singapore and other properties under its own brands.
Millennium, which is 65% owned by a Singapore real estate company and is listed on the London stock exchange (LON: MLC), owns, asset manages and/or operates nearly all of its approximately 100-property portfolio. It comprises eight brands: Grand Millennium, Millennium, Grand Copthorne, Copthorne, M Hotel, Studio M, Kingsgate and the Monogram Collection.
“Real estate is where our company began, and it brings a solid value proposition for shareholders,” Wang said.
Target markets
“The group is on a roll, and we are definitely expanding in the U.S.,” Wang said. “The Novotel transaction was a quick one. We started the discussions in a roundabout way in mid-December and closed in mid-February. That continues the cementing of our foothold in places we want to be.
“And unlike those who see Asia as the main driver of business for the future, we see the U.S. as even stronger, and that is why we are interested in acquiring real estate here. Real estate is hot again, and international tourism to the U.S. is growing nicely.
“We own iconic assets in ideal locations like the Los Angeles Biltmore, the Millennium Knickerbocker on Michigan Avenue in Chicago and another hotel in Times Square in Manhattan,” Wang continued. “My chairman (Kwek Leng Beng) always jokes that the Biltmore in Los Angeles is The Plaza of the West.”
Globally, the purchase of the Boscolo Palace Roma in Rome (the company’s first in Italy) and the former Wyndham Grand London (the sixth in that city) demonstrates the company’s commitment to Europe. There is also strong growth in the Middle East, according to Wang.
Strengthening the base
Executives are investing in the existing portfolio as they look to bring in new additions, Wang said. The group this year is refreshing its 13 North American properties.
These initiatives build on a $22-million refurbishment of the Millennium Hotel Minneapolis last year and $30 million spent on the debut of a luxury West Tower at ONE UN New York in 2012.
Throughout 2014, hotels in Boulder, Colorado; Anchorage, Alaska; Buffalo, New York; and Scottsdale, Arizona, will receive upgrades ranging from renovations of rooms to restaurant and public areas as well as exteriors.
“Over the next 12 to 18 months, it is our goal to make a significant investment in upgrading all of the properties in our North American portfolio,” Wang said. “In addition to Boulder, Buffalo, Scottsdale and Anchorage, we look forward to announcing renovation plans for more hotels in the very near future.”
Aside from its locations, Wang said the brand’s differentiators include an Asian touch to hospitality.
“Recently we opened the Bugis Street Brasserie in Los Angeles, which features Singaporean/Asian cuisine. We want to bring that feeling to other hotels. We also focus on succession planning and grooming our own people, which is what drives the company.”
Looking ahead, Millennium will continue to seek locations in key gateway cities and will maintain the consistency of the brand in the upscale to upper-upscale category
Millennium & Copthorne owns, asset manages and/or operates more than 100 hotels across seven brands: Grand Millennium, Millennium, Grand Copthorne, Copthorne, M Hotel, Studio M and Kingsgate.