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Dubai: Pricing up the big hotel industry divide

Seen in "Middle East Hotelier", Oct 01, 2006

The hotel industry has always been divided between those properties boasting a chain name and the independent owner/operators. The latest mystery survey from Hotelier's sister publication, Arabian Travel News, has revealed that this divide could also be affecting hotel rates and revenues.
The survey reveals that Dubai's independent hotels appear to be cutting out the middle man — the travel agent — by offering cheaper room rates for customers who book direct.

ATN compared the room rates of five Dubai hotels; the independently operated Arabian Courtyard Hotel and the new five-star Dhow Palace Hotel in Bur Dubai, as well as three hotels operated by large international hotel chains; Le Royal Meridien in Jumeirah, (Starwood), the Grand Hyatt in Oud Metha (Hyatt) and Madinat Jumeirah Al Qasr in Jumeirah (Jumeirah Group).

The mystery shopper called the hotels direct, checked out prices on each hotel's web site and also gained at least two quotes from some of Dubai's most prominent travel agents including Al Naboodah Travel and Tourism, Al Rais Travel and Belhasa Tourism.

The mystery shopper found that while the bigger hotel chains offered the same rates as travel agents and, in some cases, were more expensive, independent hotels offered cheaper prices for customers who rang the hotel direct or booked online.

As the hotel industry calls for greater pricing transparency, this survey revealed that prices from the region's independent hotels were inconsistent and confusing.

At one independent hotel the price quoted for a standard room by the hotel's reservations department was US $131, including service charges, taxes and breakfast. This compared to three different web site quotes; $95 (promotional rate), $102 (corporate rate) and $327 (rack rate), all excluding taxes and breakfast.
Travel agent quotes ranged from $177 to $182, both including services charges, taxes and breakfast.

Certainly, independent hotels have more room to manoeuvre when it comes to prices. They don't have to pay for international marketing or reservations services delivered by a parent company. Neither do they have the stringent service and hardware standards of a larger chain.

One independent hotel does not have to look and feel just like another, so there are options in terms of in-room amenities, the thread count of the linen, and the level of staff-to-room ratio.

While Dubai is an unusual market in which to operate at the moment — with high occupancies and high room rates — does this price undercutting from the independents mean that soon the city will be at the mercy of market fluctuations, with hotels battling it out in the revenue stakes to win over guests in the years to come?

Or should Dubai look at implementing a pricing cartel, such as those found in countries like Kuwait or Bahrain, to level the playing field?

One thing is for certain — as more hotel inventory continues to come online, Dubai is going to become just as competitive a market as London, New York or Hong Kong, and it will be down to the revenue managers to steer their hotel towards success.

Visionen für Berlin: "Wir müssen Berlin als Kulturstadt vermarkten!"

Gelesen in "Berliner Morgenpost", 24. September 2006

Berliner Morgenpost: Was muss in Berlin passieren, um die Stadt zukunftsfähig zu machen?
Fred Hürst: Berlin ist exzellent aufgestellt, es gibt sicher Defizite in etlichen Bereichen, aber was Sie heute in Berlin spüren, ist eigentlich, dass die Zukunft schon begonnen hat. Ich verspüre eine unglaubliche Dynamik in der Kultur- und Kunstszene. Die junge Szene ist international sehr stark vernetzt. Berlin ist ein absoluter Hub für Kulturschaffende, es gibt einen enormen Austausch in alle möglichen Länder und Städte. Für mich ein Zeichen, dass die Zukunft schon begonnen hat. So etwas entsteht in einer Stadt, wo das richtige Umfeld vorhanden ist. Ich vergleiche zu diesem Zeitpunkt Berlin mit dem New York in den 60er Jahren, vielleicht etwas übertrieben, aber vom Facettenreichtum her. Natürlich müssen wir einiges tun, dass die Werbung für die Stadt auf ein etwas höheres Niveau gebracht werden sollte. Heute ist der Zeitpunkt gekommen, die Werbung unter den Umbrella Kultur zu stellen. Das ist eine zukunftsträchtige Strategie, nicht für Kulturinteressierte, die wissen sowieso, was hier los ist, sondern für die breitere Masse, die nicht unbedingt diesen hochwertigen Teil der Stadt richtig einschätzt.

Hat Berlin den Fehler gemacht, bislang zu sehr auf das Image Partystadt zu setzen, oder war das der richtige Weg?
Sven Schimank: Meiner persönlichen Einschätzung nach war das keine Strategie, sondern eine Eigendynamik. Berlin ist voller Gegensätze. Überall da, wo es noch unklar ist, ob es uniformiert wird, wird es jung. Diese Gegensätze haben nicht zuletzt nicht nur im Partybereich, sondern auch in der Mode dazu geführt, dass Designer in der ganzen Welt glauben, hier die Impulse zu bekommen. Hier kann man in sehr vielen Bereichen etwas tun, Kultur ist ein Ansatz, weil es Hochwertigkeit hereinbringt. Wir haben so viele Kapazitäten, aber auch Möglichkeiten für junge Menschen. Voraussetzung dafür ist allerdings auch gleichzeitig, dass man sich Gedanken macht, was mit der Wirtschaft generell passiert. Denn wenn ich einen interessanten Standort habe, dann bekomme ich qualifizierte Arbeitsplätze mit guten Leuten gefüllt, weil jeder auch an einem interessanten Standort leben möchte. Aber ich brauche dazu auch die Voraussetzung, dass Arbeitsplätze auch da sind. Das gehört in ein Konzept, denn es wird auf uns Hoteliers im positiven Sinne zurückschwappen.

Was muss in diesem Bereich passieren?
Wolfgang Nitschke: Was ich in Berlin vermisse ist, dass man viele gute Gedanken hat, aber man braucht so immens lange, das auf den Weg zu bringen. Ich denke nur an den Flughafen. Wir können doch nicht der Welt sagen, wir brauchen weitere acht, neun Jahre, bis die Hauptstadt Deutschlands einen internationalen Flughafen hat! Ich habe gerade diese Woche ein Riesengeschäft von 250 000 Euro verloren. Da schreibt die Dame aus den USA, dass sie auf ihrem Hin- und Rückflug Berlin-Chicago solche Probleme mit dem Gepäck hatte, dass sie das noch mal nicht mehr mitmacht - die haben also die Veranstaltung abgesagt und gehen nach London! Das Schlimme aber an Berlin ist, es ist wirtschaftsschwach, es ist, wenn ich es mal brutal ausdrücke, eine Beamten- und Arbeiterstadt. Es hat keine internationalen Flüge oder relativ wenige. Warum müssen wir alle nach München oder Frankfurt? Das sagen auch unsere Kunden. Die können das nicht verstehen!

Also braucht Berlin ein internationales Drehkreuz?
Nitschke: Absolut, wir sind viel zu spät! Wir müssen was tun. Die neue Halle in Schönefeld ist von den Wegen her eine Schikane. Das muss besser geplant werden.
Willy Weiland: Es ist ein Fakt, dass in Schönefeld der neue Flughafen in fünf, sechs Jahren entsteht, der zwar nicht mehr internationaler Hub sein wird, denn der ist jetzt in München festgefahren. Aber es ist die Frage, muss es heute immer ein Hub sein, oder kommt es nicht auch auf die Endverbindungen an, die stehen? Ich sehe Berlin da weit vorn.
Nitschke: Stichwort Baustellen. Wie Unter den Linden . . . Man muss doch seine Stadtplanung besser im Griff haben!
Weiland: Mit den Baustellen haben wir ein Problem, es gibt viele Baulücken. Berlin hat nicht die Möglichkeit gehabt, sich 50 Jahre langsam zu entwickeln. Dafür hat Berlin jetzt wahnsinnig viele Möglichkeiten, Dinge auch besser zu machen als andere Städte.
Nitschke: Wir hatten einen leeren Mauerstreifen, man hätte dort eine Stadtautobahn bauen können, einmal quer durch!
Weiland: Die Frage ist doch, was ist im Tourismus unterbelichtet, was muss mehr belichtet werden? Ich sehe Potenzial in der Umgliederung des Tourismus, wir arbeiten ganz stark im Kulturmarketing. In Japan wird Berlin als Kulturstadt Europas dargestellt. Das nehmen wir hier gar nicht wahr! Wir haben Galerien, Mode, Museen, kulturelle Bewegung, die eigentlich schon wieder ein Markenzeichen darstellt. Die gilt es, neu zu vermarkten. Ich habe gerade mit einem Galeristen gesprochen, der sagt, neben New York sei Berlin die Kunststadt schlechthin geworden. Man orientiert sich an Berlin.
Hürst: Das Problem ist aber, dass noch nicht sehr viel gehandelt wird in Berlin, weil die Kaufkraft fehlt. Kann man das wirklich mit Programmen unterstützen? Das ist wie eine Pflanze, die wachsen muss! Die Voraussetzung, dass diese Pflanze Berlin in die richtige Richtung wächst, ist da. Die Erde stimmt, es regnet genügend, man braucht wirklich nur Impulse geben. Das gilt auch für die Wirtschaftsförderung. Wenn man sich die Kultur hier anguckt. Was wurde dafür gemacht? Die preußischen Museen haben 4000 Mitarbeiter, einer kümmert sich um Marketing. Und was macht der? Er macht ein paar Flyer, es gibt gar kein Marketingkonzept, das heißt die Kultur ist, wenn man so will, wild gewachsen. Daraus wird ganz sicher Wirtschaftswachstum resultieren, erstens im Tourismus, aber auch im Bereich Ansiedlung von neuen Unternehmen. Da könnte man sich wünschen, dass ein klareres Profil herausgearbeitet wird.

Sehen Sie alle Berlin im Jahr 2020 als singulare Insel, oder gibt es gemeinsame Entwicklungsmöglichkeiten mit Brandenburg, Potsdam, Hamburg?
Weiland: Ich denke, Berlin wird mit dem Umland zusammenwachsen müssen. Zunächst mal mit Brandenburg. Der Kunde kann nämlich nicht verstehen, dass da zwei Länder sind. Ich könnte mir auch eine Tangente nach Warschau vorstellen. Das sind 600 Kilometer, das ist heutzutage keine Entfernung! Da ist so viel unterentwickeltes Potenzial da. Berlin ist mitten in Europa. Vielleicht sind wir nicht aktiv genug! Wir müssen die Türen öffnen.
Nitschke: Es ist ein generell deutsches Problem, dass Wirtschaft eigentlich in vielen Bereichen vertrieben wird. Das trifft Berlin auch. Wir reden darüber, was können wir denn ansiedeln, vielleicht sollten wir auch mal darüber nachdenken, was können wir denn halten?
Hürst: Was ich als Problem ansehe, ist, dass wir in Berlin, mindestens in unserem Bereich, zwar eine hohe Dienstleistungsbereitschaft haben, die aber leider in den Behörden überhaupt nicht vorhanden ist. Ich kann nur ein Beispiel nehmen: Wir haben hier die Kampagne "Winterzauber" am Potsdamer Platz aus der Taufe gehoben, gefördert vom Senat, mit Eisbahn, Markt, Rodelbahn. Es war ein Schildbürgerstreich! Wir haben es fast nicht fertig gebracht, dass diese Rodelbahn abgestellt werden konnte. Dies ist ein Thema, an dem die Stadt krankt.

Hat denn der Zauber der WM noch einen Nachhall gefunden?
Nitschke: Absolut! Wir bekommen jetzt interessanterweise viele Anfragen aus England, aus Orten, von wo früher niemand gekommen ist. Grundsätzlich haben wir in Berlin noch den Turnschuh-Tourismus, der natürlich nicht die finanzielle Kraft hat, der zwar die Masse nach Berlin bringt, aber nicht unbedingt unsere Hotels füllt, sondern den unteren Bereich. Das, was wir brauchen, ist den etwas gehobenen Tourismus.

Müsste nicht deutlich intensiver Wirtschaftsförderung betrieben werden, Stichwort One-Stop-Agency?
Nitschke: Ich würde einen Schritt weiter gehen. Es muss eine Änderung in den Behörden passieren. Sie sind nicht dienstleistungsorientiert.
Hürst: Der neu gewählte Bürgermeister müsste sich das auf die Fahnen schreiben!
Schimank: Nun, da wird der Blick in die Zukunft helfen, denn in 14 Jahren wird ein Teil derer, die an die Versorgung von Gotteshand glauben, nicht mehr arbeiten.
Hürst: Ja, genau, ein Generationswechsel kommt hinzu.
Weiland: Aber die Menschen, man hat es bei der WM gesehen, sind schon sensibilisiert! Ich spüre hier schon einen enormen Leistungswillen, mindestens bei uns. Ich gehe heute so weit, dass die Mitarbeiter, die wir in der Hotellerie in Deutschland zur Verfügung haben, Weltspitze sind. Das wissen viele Leute im Ausland noch nicht!

Welche internationalen Gäste sehen Sie kommen?
Nitschke: Man muss dazu sagen, dass Deutschland einen ganz starken Binnentourismus hat. Wir haben im Schnitt 60 bis 65 Prozent deutsche Gäste. Die Firmen haben ein großes Potenzial an Übernachtungen und den Hebel zu verhandeln. Deshalb bleiben die Übernachtungspreise tief. Wir müssen es schaffen, mehr internationale Gäste zu bekommen. Die sind sofort bereit, 50 Prozent mehr zu bezahlen, ohne dass sie es überhaupt wahrnehmen. Der asiatische Markt im hochwertigen Bereich ist für Berlin noch nicht ausgeschöpft.
Hürst: Russland darf man nicht unterschätzen!
Weiland: Durch die Fußball-WM haben wir sehr viel aufgeholt. Das Image von Berlin im Ausland ist sehr viel besser als in der Stadt selbst. Ich bin auch überzeugt, dass der Kongresstourismus das aufgreifen wird. Berlin hat eine hervorragende Zukunft. Ich wünsche mir nur, dass der Flughafen Tempelhof nicht geschlossen wird und als Hub in der Stadt für den betuchten Tourist bleibt. Jede andere Stadt würde so etwas bauen, hier wollen wir ihn zumachen.
Hürst: Später könnte das Tegel übernehmen! Tegel ist unglaublich schnell zu erreichen, vom Zentrum gerade zehn Minuten, märchenhaft!

Wagen Sie eine Prognose, wie viele Menschen 2020 nach Berlin kommen und hier übernachten werden?
Weiland: 20 Millionen in 2010. Wir sind jetzt bei 15 Millionen.

Und 2020?
Nitschke: 30 Millionen!
Weiland: 30 Millionen, wenn wir davon ausgehen, dass die Olympischen Spiele kommen!
Alle: Ja, das wäre gut! 

Hospitality Joint Venture Sets New Standards in Luxury Hotel Market in Asia with Two New Brands

Seen on ehotelier.com, Oct 06, 2006

Over the past several decades, luxury hotels across Asia have set new standards worldwide for extraordinary service, amenities and design. However, the needs and tastes of todays affluent leisure and business travelers have changed. Two industry veterans have now addressed this need for a new vision of luxury hospitality as their plans to introduce two extraordinary new hotel and resort brands in Asia were unveiled in Singapore today. Kwee Liong Tek, Chairman of Kwee Inc. Pte Ltd, and Horst Schulze, Chairman of West Paces Hotel Group, announced the formation of a 50:50 joint venture to be known as West Paces Hotel Group Asia.
Headquartered in Singapore, this hotel management company will introduce the new Capella Hotels and Resorts and Sols Hotels and Resorts brands in gateway cities and resort destinations in the region. Kwee Liong Tek and Horst Schulze have a ten-year-long friendship born of mutual respect, and each brings a remarkable record of success to the joint venture. Kwee Liong Tek is Chairman of Pontiac Land, which owns properties such as The Ritz-Carlton Millenia Singapore, Conrad Centennial Singapore, and The Regent Singapore; he will focus on business development and securing strategic partnerships in Asia with leading high net-worth families and institutions.

Our synergistic partnership and our shared commitment to excellence form a great foundation to build the worlds finest hotel management company, said Kwee Liong Tek at todays announcement ceremony. Horst Schulze, the former President, COO and Vice Chairman of The Ritz-Carlton Hotel Company, is credited with industry leading innovations in luxury service and amenities. His West Paces Hotel Group, established in 2002 and headquartered in Atlanta, Georgia (USA), will contribute management and operations expertise in designing properties geared toward affluent travelers a niche that Schulze believes is now underserved by existing brands.

The West Paces Hotel Group Asia business model will capitalize on filling the need within this niche and aims to be the global leader in the service industry. Capella Hotels and Resorts will serve travelers in the top two percent demographic who desire genuine service and customized privacy and luxury. Solis Hotels and Resorts will serve business travelers and group meetings business with an uncompromising commitment to reliable service and luxury accommodation. Schulze commented, We will offer the kind of personalized service and experience that has been lost in todays travel environment.

Our research has identified significant shifts in the practical needs and unexpressed desires among travelers for this service; as a result, we have developed scientific quality systems to create meaningful and enriching memories that extend beyond the stay of every guest. He continued, We are honored to partner with Kwee Liong Tek. Ive often referred to the creation of the Capella and Sols brands as the chance to paint my finest canvas. Knowing Kwee Liong Teks outstanding track record and commitment to excellence, I know that we will create masterpieces together.

Kwee Liong Tek commented, We have found the ideal partner to create hotels and resorts that will raise the bar of excellence in the global service industry. In addition to Horst Schulze, West Paces Hotel Group Asia will draw on the experience of highly regarded industry veterans such as Bob Warman, who currently serves as Executive Vice President and COO of West Paces Hotels Group and Phil Keb, Executive Vice President, Development for West Paces Hotel Group. Both are former Ritz-Carlton executives, where Warman served as VP of Operations for hotels worldwide, and where Keb negotiated and closed hotel transactions with a property value in excess of US $2.5 billion. Warman and Keb both served on the corporate leadership team that helped earn the Malcolm Baldrige National Quality Award. M. Douglas Ivester, a strategic investment partner with West Paces Hotel Group and former chairman and CEO of the Coca-Cola Company, commented, The timing is right for the introduction of these two brands in order to take advantage of significant opportunities in the Asian market, and to meet needs that customers are demanding be addressed.

West Paces Hotel Group Asia has established a partnership with proven executive leadership and a strategically sound business model. In addition to Singapore, initial target areas for development include Hong Kong, China, India, Indonesia, and Thailand. These geographic targets are primed for increased demand from travelers. China continues to realize exponential growth in visitor arrivals, with annual increases in excess of 10%. Annual visitor arrivals to India in 2006 are running nearly 14% above 2005 figures, year-to-date. Singapore has posted record-setting visitor arrival figures with the most recently available monthly statistics. July 2006 figures represent 4.0% growth over the same period a year ago, and represent the highest monthly totals on record. Capella Singapore, plans for which were revealed just prior to the joint venture announcement, represents the first location in Asia. Capella Singapore is set on an unrivalled location on Sentosa Island, nestled in 1.3 million square feet of lush rainforest.

Two existing colonial buildings from the 1880s will form the centrepiece of the resort, and will be combined with ultra-luxury villas, suites and bungalows designed by Foster and Partners. The S$250 million project will blend traditional Asian materials and themes with contemporary influences. Capella Singapore, scheduled to open in 2008, reinforces the crucial notion of customer choice in determining the travel experience: guests who want access to the heart of Singapore will have it, and those who wish to retreat to the lush privacy of a resort surrounded by rainforest will enjoy that option, as well. The group aims to have a portfolio of up to 30 resorts and hotels globally in the next five years, with a significant number of these located within Asia. NOTES: The West Paces Hotel Group was founded by Horst Schulze, former president and COO of The Ritz-Carlton Hotel Company, along with several former Ritz-Carlton executives to create and operate branded hotels in several distinctive market segments.

The principals of the company leverage unparalleled hospitality experience and a diverse track record of operating world-class hotels and resorts. The groups mission is to create value through superior service at luxury, world-class properties and conference centers in gateway cities and high-profile resort destinations around the world. West Paces launched the Capella Hotels and Resorts and Sols Hotels and Resorts brands in 2005. Capella properties include: Capella Singapore; Breidenbacher Hof, a Capella Hotel (Germany); Capella Pedregal (Mexico); Capella Resort and Spa, Castlemartyr (Ireland); Capella Resort and Spa, Dunboy Castle (Ireland); and Schloss Velden, a Capella Hotel (Austria). Sols properties include: Sols Chicago Hotel and Spa; Sunny Isles Beach, Florida, a Sols Resort and Spa; and Sol for more details. Kwee Inc. Pte Ltd. (Associated with controlling shareholders of Pontiac Land Group) Founded in 1959 by Henry Kwee, Pontiac Land Group began as an enterprise specialising in the development of architecturally distinctive homes. Today, the Groups assets include office, hospitality, residential and medical developments, including The Ritz-Carlton, Millenia Singapore, Conrad Centennial Singapore, The Regent Singapore, Millenia Tower, Centennial Tower, Millenia Walk, The Colonnade, and Camden Medical Centre. Please visit for more details.

Over the past several decades, luxury hotels across Asia have set new standards worldwide for extraordinary service, amenities and design. However, the needs and tastes of today's affluent leisure and business travelers have changed. Two industry veterans have now addressed this need for a new vision of luxury hospitality as their plans to introduce two extraordinary new hotel and resort brands in Asia were unveiled in Singapore today.

Kwee Liong Tek, Chairman of Kwee Inc. Pte Ltd, and Horst Schulze, Chairman of West Paces Hotel Group, announced the formation of a 50:50 joint venture to be known as West Paces Hotel Group Asia. Headquartered in Singapore, this hotel management company will introduce the new Capella Hotels and Resorts and Solis Hotels and Resorts brands in gateway cities and resort destinations in the region.

Kwee Liong Tek and Horst Schulze have a ten-year-long friendship born of mutual respect, and each brings a remarkable record of success to the joint venture. Kwee Liong Tek is Chairman of Pontiac Land, which owns properties such as The Ritz-Carlton Millenia Singapore, Conrad Centennial Singapore, and The Regent Singapore; he will focus on business development and securing strategic partnerships in Asia with leading high net-worth families and institutions.

"Our synergistic partnership and our shared commitment to excellence form a great foundation to build the world's finest hotel management company," said Kwee Liong Tek at today's announcement ceremony.

Horst Schulze, the former President, COO and Vice Chairman of The Ritz-Carlton Hotel Company, is credited with industry leading innovations in luxury service and amenities. His West Paces Hotel Group, established in 2002 and headquartered in Atlanta, Georgia (USA), will contribute management and operations expertise in designing properties geared toward affluent travelers - a niche that Schulze believes is now underserved by existing brands.

The West Paces Hotel Group Asia business model will capitalize on filling the need within this niche and aims to be the global leader in the service industry. Capella Hotels and Resorts will serve travelers in the top two percent demographic who desire genuine service and customized privacy and luxury. Solis Hotels and Resorts will serve business travelers and group meetings business with an uncompromising commitment to reliable service and luxury accommodation.

Schulze commented, "We will offer the kind of personalized service and experience that has been lost in today's travel environment. Our research has identified significant shifts in the practical needs and unexpressed desires among travelers for this service; as a result, we have developed scientific quality systems to create meaningful and enriching memories that extend beyond the stay of every guest."

He continued, "We are honored to partner with Kwee Liong Tek. I've often referred to the creation of the Capella and Solis brands as the chance to paint my finest canvas. Knowing Kwee Liong Tek's outstanding track record and commitment to excellence, I know that we will create masterpieces together."

Kwee Liong Tek commented, "We have found the ideal partner to create hotels and resorts that will raise the bar of excellence in the global service industry."

In addition to Horst Schulze, West Paces Hotel Group Asia will draw on the experience of highly regarded industry veterans such as Bob Warman, who currently serves as Executive Vice President and COO of West Paces Hotels Group and Phil Keb, Executive Vice President, Development for West Paces Hotel Group. Both are former Ritz-Carlton executives, where Warman served as VP of Operations for hotels worldwide, and where Keb negotiated and closed hotel transactions with a property value in excess of US $2.5 billion. Warman and Keb both served on the corporate leadership team that helped earn the Malcolm Baldrige National Quality Award.

M. Douglas Ivester, a strategic investment partner with West Paces Hotel Group and former chairman and CEO of the Coca-Cola Company, commented, "The timing is right for the introduction of these two brands in order to take advantage of significant opportunities in the Asian market, and to meet needs that customers are demanding be addressed. West Paces Hotel Group Asia has established a partnership with proven executive leadership and a strategically sound business model."

In addition to Singapore, initial target areas for development include Hong Kong, China, India, Indonesia, and Thailand. These geographic targets are primed for increased demand from travelers. China continues to realize exponential growth in visitor arrivals, with annual increases in excess of 10%. Annual visitor arrivals to India in 2006 are running nearly 14% above 2005 figures, year-to-date. Singapore has posted record-setting visitor arrival figures with the most recently available monthly statistics. July 2006 figures represent 4.0% growth over the same period a year ago, and represent the highest monthly totals on record.

Capella Singapore, plans for which were revealed just prior to the joint venture announcement, represents the first location in Asia. Capella Singapore is set on an unrivalled location on Sentosa Island, nestled in 1.3 million square feet of lush rainforest. Two existing colonial buildings from the 1880s will form the centrepiece of the resort, and will be combined with ultra-luxury villas, suites and bungalows designed by Foster and Partners. The S$250 million project will blend traditional Asian materials and themes with contemporary influences.

Capella Singapore, scheduled to open in 2008, reinforces the crucial notion of customer choice in determining the travel experience: guests who want access to the heart of Singapore will have it, and those who wish to retreat to the lush privacy of a resort surrounded by rainforest will enjoy that option, as well.

The group aims to have a portfolio of up to 30 resorts and hotels globally in the next five years, with a significant number of these located within Asia.

About West Paces Hotel Group

The West Paces Hotel Group was founded by Horst Schulze, former president and COO of The Ritz-Carlton Hotel Company, along with several former Ritz-Carlton executives to create and operate branded hotels in several distinctive market segments. The principals of the company leverage unparalleled hospitality experience and a diverse track record of operating world-class hotels and resorts. The group's mission is to create value through superior service at luxury, world-class properties and conference centers in gateway cities and high-profile resort destinations around the world. West Paces launched the Capella Hotels and Resorts and Solis Hotels and Resorts brands in 2005. Capella properties include: Capella Singapore; Breidenbacher Hof, a Capella Hotel (Germany); Capella Pedregal (Mexico); Capella Resort and Spa, Castlemartyr (Ireland); Capella Resort and Spa, Dunboy Castle (Ireland); and Schloss Velden, a Capella Hotel (Austria). Solis properties include: Solis Chicago Hotel and Spa; Sunny Isles Beach, Florida, a Solis Resort and Spa; and Solis Frankfurt. Please visit for more details.

Kwee Inc. Pte Ltd. (Associated with controlling shareholders of Pontiac Land Group)

Founded in 1959 by Henry Kwee, Pontiac Land Group began as an enterprise specialising in the development of architecturally distinctive homes. Today, the Group's assets include office, hospitality, residential and medical developments, including The Ritz-Carlton, Millenia Singapore, Conrad Centennial Singapore, The Regent Singapore, Millenia Tower, Centennial Tower, Millenia Walk, The Colonnade, and Camden Medical Centre. Please visit for more details.
www.pontiacland.com/hotels.htm

Estimated over $1 billion invested in Moscow hotels over last 2 years

Seen on ehotelier.com, Oct 05, 2006

Experts estimate that over $1 billion through hotel development and transactions has been invested into the Moscow hotel market in the last 2 years, indicating clear evidence that international and domestic investor interest is intensifying, says Jones Lang LaSalle Hotels. Other Russian cities are starting to attract similar attention as investors are looking at new emerging hotel markets outside the capital.

Mark Wynne-Smith, European CEO, Jones Lang LaSalle Hotels, said: “Russia is achieving outstanding economic growth and its annual GDP figure is growing at an average rate of 6.4%.  This is driving both foreign and domestic investors to gain a foothold in the market. Foreign direct investment into the country topped $18 billion last year so we are seeing that investors are seriously looking at the market and the hotel sector is reaping the rewards.”

He continued: “Evidence of the appetite for hotel assets has been demonstrated in a number of ways over the last 18 months – investment firms have announced their intention to create funds for investment in the Russian hotel industry, such as the ‘Hotel Real Estate’ fund by Finam investment holding. Further evidence includes - European real estate lending institutions offering greater lending facilities for Russian hotel investments with strong support from their Russian counterparts, a significant number of prominent European and US developers and investors are seeking to establish a presence in Russia as well as key international hotel operators plus there have already been some high profile hotel deals.”

New Markets

Many cities across Russia are experiencing an economic and development boom reflected in elevated Gross Regional Product and Foreign Direct Investment. Yekaterinburg (8.9%; $62.6 million respectively), Novosibirsk (5.7%; $13.8 million) and Samara (8.7%; $160 million), to name just a few, have all attracted the interest of domestic and international investors in various commercial real estate sectors including hotels.  International hotel operators such as Accor, Hyatt, Rezidor SAS and Raffles International have all been studying the fast growing markets in Russia as potential areas for future development.

Marina Usenko, Head of Jones Lang LaSalle Hotels in Russia: “Another area we see as a future market for hotels is Rostov-on-Don, 1,226km south east of Moscow.  The city has undergone considerable regeneration and is home to over 20,000 companies. Currently dominated by business travellers, there is however potential growth in the conference sector.  There is lack of international operators at the moment but players such as Rezidor SAS have taken a keen interest in the market.”

“Sochi, the Russian Riviera which is a well known tourist hot spot and was originally a health spa town also has the potential for hotel development.  It has gained popularity for its snow-capped peaks of Krasnaya Polyana, a winter resort only half an hour away from the city centre – the city has been put forward for the 2014 Winter Olympics,” She continued.  “Considering the existing hotel properties in Sochi and the limited available land along the beach area, it is likely that the new quality supply will start with the renovation and takeover of existing spa hotels.  The winter resort of Krasnaya Polyana being a new destination with a very limited accommodation infrastructure, on the other hand, is expected to expand through new hotel development.”

Among other emerging hotel development markets, the Kaliningrad region in the north east is a designated Special Economic Zone giving tax advantages to business and investors.  Investment in the area rose by 118.7% in 2005 compared to the previous year reflecting the region’s importance as a leisure and business destination.