VIENNA—Hotel developer and operator Vienna International Hotelmanagement AG, has 40 properties under its umbrella and celebrated its 25th anniversary this year with a decided push into Eastern Europe and a new CEO, Rupert Simoner, who took over the reins on 1 September.
Based in Vienna, the company, more commonly known as Vienna International Hotels & Resorts, employs approximately 2,500 people and has all its properties in Central and Eastern Europe, with the exception of two properties at Disneyland Paris.
This geographical focus remains the company’s principal thrust, but its eyes are peering elsewhere, too.
In his first interview since starting his new post, Simoner, whose previous guise was as senior VP of Kempinski Europe, told HNN he believes VI Hotels has always been aware of the great potential of these core markets but that his intention is to increasingly venture outside these heartlands.
“We have a two-fold growth strategy across those (regions) but also tapping new profitable and attractive markets as Western Europe,” Simoner said, adding his initial project is to strengthen the company’s brand architecture.
“Within the last (18 months VI) has taken over 11 properties. And we definitely want to expand further,” he said.
VI, which has its own capital invested in its bricks and mortar, has a number of standalone hotels and one three-hotel brand, but its main brands are Andel’s, with five properties; Angelo, with seven; and Arcadia, with 10.
Simoner said the company is a competent hotel management chain with know-how in market observation and hotel development, and specialization in restructuring, particularly in property turnaround.
“Within the last year, VI started to invest in its own properties and owns today approximately 25% of its portfolio. My task is now to structure and position the single products and brands and see which model—management, lease or ownership—applies best to the strategy,” Simoner said.
Vienna International Hotels also is in the business of managing third-party properties, as is the case with the August announcement that it will manage the 220-room Marriott Hotel Minsk, owned by Belarus-based Falcon Investment Company, when it opens in the first quarter of 2015.
The chain’s hotels under management, according to Simoner’s figures, generated €177 million ($224 million) in revenue with 2.4 million roomnights in 2013.
Brand consolidation
Simoner is confident Andel’s and Angelo stand well in the market and work for leisure and business guests.
He said Angelo “stands for an urban, colorful lifestyle,” with interiors sporting black, coral-red, yellow and white tones in combination with furnishings and accessories from the Far East,” while Andel’s “signifies style, fresh colors and accents, top-quality materials and open space,” with each property having a connection to the history of its destination.
“The general focus for development plans is Europe and, depending on the brand, growth will be structured accordingly. Generally we are open to conversion opportunities as some destinations are saturated, and new-build properties will not promise economic success,” Simoner said.
He hinted VI would consolidate down to having just three brands, with changes likely to be signed off in the next few months.
The VI portfolio also spans city properties, design hotels, family resorts, and spa and wellness options. All properties, according to Simoner, maintain highly personalized service levels. Business destinations include: Berlin; Bucharest, Romania; Krakow, Poland; Moscow; Prague; and Salzburg, Austria. Also, there are two in the Russian city of Ekaterinburg, 900 miles east of Moscow, the main cultural and federal city of Russia’s Ural region and the farthest east the hotel company calls home.
Simoner remains positive about the entire region, despite its recent wobbles.
“In every down, there is an opportunity. You can see that good quality products stand crises,” he said.
Simoner said he would value a push into other regions, such as Africa, but such a move is “not on the agenda” as of yet.
“My aim and my mission is to reposition the company, position and strengthen the brands, and continue the expansion with excellent operational performance in mind. My knowledge from Kempinski supports this case, (as it was) there I learned what works out and what doesn’t,” Simoner said.
Correction, 14 October 2014: An earlier version of this story misstated that VI in January took over management of two if its own hotels in Prague and Pilsen, Czech Republic.