Raffles Hotels and Resorts

More than 30 properties under Raffles brand name by 2011

By UMA SHANKARI

(SINGAPORE) Raffles Hotels n Resorts is expanding faster than planned, leading the hotel group to revise upward an early projection - made just four months ago - of the number of properties that will come under its wing.

Mrs Ee-Tan: Said Raffles Hotels n Resorts had stepped up its pace of expansion since its acquisition by Kingdom Holding and Colony Capital

According to the latest forecast, Raffles Hotels n Resorts will have about 30 properties under its brand name by 2011, up from 20 which the group said last November it was targetting to have by then, said Diana Ee-Tan, its managing director.

Speaking to The Business Times in her first media interview since taking the helm last June, Mrs Ee-Tan said Raffles Hotels & Resorts has stepped up its pace of expansion since its acquisition by Saudi Prince Alwaleed bin Talal's Kingdom Holding and Los Angeles-based Colony Capital.

Just four months ago, Grant Kelley, chief executive of Colony Capital Asia, said he planned to add 10 more hotels and resorts to Raffles' portfolio over the next five years - effectively doubling the brand's portfolio.

But looking at the pace of growth since then, Mrs Ee-Tan said the group should be able to hit 30 properties by end-2011.

Since May 2006, the Raffles group has announced some seven additions to its portfolio, including Raffles St Lucia in the West Indies; Raffles Tianjin Hotel in China; and Raffles Resort Konottaa in the Maldives. The group now has 17 hotels in 16 locations.

'We will be announcing more deals in the next few months, and after that, we should be able to add another 10 properties,' said Mrs Ee-Tan. 'So by the end of the five years (2011), we will have about 30 properties.'

Another deal in the Caribbean will soon be announced, she said. For growth, the group is zooming in on Asia, North America and the Middle East. It places a lesser emphasis on Europe.

In North America, the Raffles brand could soon have a presence in San Francisco, New York, Chicago, Boston, Toronto and Vancouver, among other cities, Mrs Ee-Tan said. In Asia, one area of focus for the group will be secondary cities in China, which are seeing rapid economic growth. And in the Middle East, the group is in talks with 'several suitors' to enlarge its portfolio, she said. One possible location for a Raffles hotel in the Middle East is Abu Dhabi.

In line with the larger ownership's asset light strategy, Raffles will try to grow mainly through management contracts, Mrs Ee-Tan said. But the group remains open to taking equity stakes in projects if needed.

Raffles Hotels & Resorts is now part of Fairmont Raffles Hotels International, a hotel company headquartered in Toronto. The company owns and manages 120 hotels in 25 countries under four brand names - Fairmont Hotels & Resorts, Raffles Hotels & Resorts, Swissotel Hotels & Resorts and Delta Hotels - as well as vacation ownership properties managed by Fairmont Heritage Place.

The group has been able to ramp up the speed of expansion under the new management because it can leverage on greater resources, Mrs Ee-Tan explained. There are now more funds to works with, and expansion is being driven by development teams based around the world, rather than just out of Singapore like it was before Kingdom Holding and Colony Capital entered the picture.

The Raffles chain also benefits from increased patronage as a result of a common online booking system.

But while the Raffles group has evolved some ways, Mrs Ee-Tan is quick to point out that what remains consistent is the Raffles brand name - associated with unparalleled luxury by its patrons.

'The Raffles brand continues to enjoy great recognition,' said Mrs Ee-Tan. 'And what has not changed is that the brand continues to be anchored in Singapore.' The new ownership, she said, understands that the Raffles brand has 'cachet', and will continue to stay true to its roots.

Most Raffles properties remain small in size, usually comprising between 150 and 250 rooms. This will be maintained to keep the Raffles feel of a residential sanctuary, Mrs Ee-Tan said.

In Singapore, the large Raffles The Plaza hotel will be rebranded as a Fairmont hotel, she said.

Even when Raffles Hotels n Resort is expanding rapidly, all properties will be vetted carefully to ensure they are of Raffles quality before the group decides to put the Raffles brand name on it, Mrs Ee-Tan said.