BT : Pan Pacific Hotels seizing the day in tough times‏

Business Times - 05 Nov 2009

SINGAPORE INTERNATIONAL
Pan Pacific Hotels seizing the day in tough times

IN times like this, when business is hard to come by, the weakness of a poorly run or financially strapped company really shows up, says Eric Levy, Pan Pacific Hotels Group's senior vice-president for development.

When the going gets tough, owners of badly operated hotels or service apartments, weighed down by debt, have no choice but to turn to new operators or sell their assets, he says.

And that's when Pan Pacific Hotels Group, formerly Hotel Plaza and a subsidiary of Singapore-listed UOL Group, steps in - to offer its management services or buy the properties.

It's no wonder that Pan Pacific Hotels Group is expanding in the middle of a global recession.

The group unveiled Pan Pacific Xiamen in China in August and, within a few months, will add properties in Suzhou, Bangkok and Kuala Lumpur to its portfolio.

Pan Pacific Hotels Group is also building a new hotel in Tianjin, China.

'While several of the industry giants are slowing their development due to corporate cutbacks, Pan Pacific Hotels Group is taking the opportunity to prime itself for growth - by strengthening its Pan Pacific and Parkroyal brands and enhancing its capabilities,' Mr Levy says.

With consumers having cut back spending, Pan Pacific Hotels Group is offering lower-priced alternatives without compromising standards - to meet still-high expectations.

It is also offering more to hotel owners. 'With our increasing pipeline of new hotels, they can look forward to increased brand equity and awareness, and a larger customer base to leverage on,' says Mr Levy.

Pan Pacific Hotels Group is securing more hotel management contracts in key cities in North America, Greater China, Japan and Australia, he says.

'We have identified these cities as key feeder markets, and increasing our visibility and brand awareness in them will benefit all the properties in our portfolio.'

Mr Levy says Pan Pacific Hotels Group further plans to build up a presence in resort destinations such as Bali and Phuket, 'because we see the opportunity to tap into the discretionary travel segment'.

According to him, Pan Pacific Hotels Group has an advantage over other Singaporean hospitality players because both of its brands - Pan Pacific and Parkroyal - are international and backed by decades of heritage.

'Parkroyal Hotels & Resorts had its beginnings in Australia in the 1960s, while the first Pan Pacific Hotel was established in Jakarta in 1976,' Mr Levy says.

'We acknowledge the brand equity that both brands have and hope to leverage on this to grow them.'

In markets where it is just starting to make its presence felt, Pan Pacific Hotels Group intends to make greater inroads through its 'exemplary' service and product offerings, and through 'focused and expert sales and marketing capabilities'.

Mr Levy claims Pan Pacific Hotels Group also has an edge over other global hotel players when teaming up with hotel owners.

'We have an ownership mentality as owners of over 15 hotel assets ourselves,' he says.

'As such, we are able to adopt an ownership mentality in approaching all the properties in our management portfolio. Our experience as hotel owners allows us to efficiently partner with owners to maximise returns and enhance the value of their assets.'

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