With an initial brief to guide the almost 40-hotel company through its next stage of growth, strengthen internal management processes and extend the Pan Pacific and Parkroyal brands in major gateway cities across Asia Pacific, last January veteran hotelier Bernold Schroeder left Chinese giant Jin Jiang International Hotel Management and became the next CEO of Singapore’s Pan Pacific Hotels Group (PPHG).
Perhaps the biggest news during Schroeder’s still brief tenure came in August with the acquisition of real estate in London’s financial district by its parent company and property developer UOL Group Ltd. for PPHG’s first hotel in Europe.
While further gateway opportunities are on his radar, Schroeder adds PPHG’s growth going forward will come predominantly via third-party management. The focus will continue to be on Asia Pacific with China being a primary target market. “We are setting our sights on the top-tier markets of Beijing and Shanghai, which will give our brands greater visibility, but are pursuing opportunities in emerging Chinese cities at the same time,” he said. “Apart from China, our other pipeline projects are in Australia, Indonesia, Malaysia, Myanmar and, of course, London.”
There is no specific number or timeline target in PPHG’s expansion plan as Schroeder said the group wants to be strategic and sustainable in its approach. Among its current pipeline of nine projects, eight are managed properties while one (in Yangon) is a joint venture. “The growth priority is through management contracts, though we would not rule out the possibility of asset acquisition should it be deemed a worthwhile, long-term investment,” he added.
Aside from development, Schroeder said one of PPHG’s biggest opportunities is to make more people aware that its two brands are under the same umbrella, which will help further establish it as a serious player.
Among his challenges is dealing with the manpower crunch, especially in developing countries like Myanmar and China. “Employee satisfaction has been proven to be directly linked to guest satisfaction and, subsequently, profits,” Schroeder said. “That is why I have made talent recruitment, development and retention a key focus where hiring from the local community and promotions from within are two of our employment priorities.”