Grace International, Singapore, recently expanded its luxury boutique footprint with the opening of The Scarlet Huntington in San Francisco following a US$15 million refurbishment of the 1924 vintage Huntington Hotel.
Grace International CEO Fong Kah Seng wants to add to the company’s portfolio of two hotels (the owned and operated Scarlet in Singapore opened in 2004) via management or acquisition with specific interest in Asia Pacific gateways.
Fong recently spoke to HOTELS about his aspirations for the Scarlet brand.
HOTELS: Can you elaborate on new hotel development plans and expectations?
Fong Kah Seng: The re-branding of The Huntington Hotel in San Francisco to The Scarlet Huntington in May 2014 marks the group’s first step in worldwide expansion as well as the global introduction of The Scarlet brand. Grace International is certainly on the look out for suitable markets for further strategic expansion, primarily focusing on a luxury boutique product with a connection to heritage, culture and history in key gateway cities in Asia Pacific.
H: Is Singapore becoming overbuilt, and what is your expectation for the market in 2015?
Fong: Despite a slowing global economy and a downward shift of local GDP from 5.1% to 4.9%, Singapore’s economy has expanded with a 2.3% growth from Q1 2014 reflecting a stronger momentum and a less drastic slowdown (Business Monitor International, 2014. The nation is also noted for nurturing an emerging local fashion scene and recognized for its efforts in heritage conversation, greenery and dining (the place where artisanal coffee was started).
2015 is also Singapore’s 50th birthday known as SG50 with the theme of ‘Celebrating as one people.’ The highlight of the year-long celebration is the 50th National Day, which returns to the Padang, the site of many historically significant moments, including the very first National Day in 1966.
Next year is also “the year of arts and sports.” Coinciding with the Golden Jubilee is the opening of the Singapore Sports Hub with an impressive line up of sports programs. The National Gallery Singapore will see major art pieces from the region on display here for the very first time.
As one of the market leaders in the global MICE industry, Singapore continues to host an array of international events, including the Singapore Formula 1 Grand Prix and the recent 2014 WTA Championships. Singapore’s hospitality scene is set to grow exponentially.
H: How is the San Francisco hotel performing, and how do you successfully manage a hotel so far away when it is the only Grace hotel outside Asia?
Fong: The iconic Nob Hill is an affluent district home to many of San Francisco’s upper class families and a large young urban professional population. It is also where The Scarlet Huntington is located.
Since making its debut in May 2014, The Scarlet Huntington has ignited interest in community members who embrace its East-and-West fusion hospitality design. Since then, the hotel experiences robust occupancies from guests who attend San Francisco’s citywide events.
H: What makes your organization a preferred manager for potential owners? What makes you different and better than so many competitors, especially outside Singapore?
Fong: Competition is intense in the hospitality industry and will continue to be so as more hotels are currently in development. With 10 years of experience in the strategic acquisition, conceptualization and development of hotels, Grace International also provides hospitality management and business consultancy services.
The group always aims to deliver an attention to detail, including its relationships with guests, owners and other stakeholders, based on its core values of being discerning, passionate and radical.
A constant champion of innovation that is reflective in the unique configurations and design of each of its hotel rooms, Grace International’s business approach is revolutionary and always seeks to challenge the status quo through offering fresh perspectives.
H: What is the biggest challenge Grace International faces to becoming a bigger company with more management deals?
Fong: Grace International together with other small-to-medium enterprises have started the year on a positive note with a GDP growth forecast at 2% to 4% this year. Despite the positive vibe, the challenges that need to be turned into opportunities are industry competition, currency volatility and labor costs.
Industry competition remains the top priority with multinationals turning to Asia as the Western economies slow, given increased market penetration, a positive strategy to optimize its accommodation and food & beverage products and services is needed so as to differentiate its offerings from the competition while strengthening guest relations.
To complement this, Grace International engages guests (current and potential) in the virtual world. Through harnessing the strength of these interactions it is constantly able to instantly access and obtain opinion of its current offerings and service standards. This is especially so with the Millennial generation who are more inclined to embrace social media for the latest news, making a decision and sharing of experiences.
Besides product and service differentiation on social media, being able to customize accordingly to the market it is in with strong branding is crucial for Grace International to be a distinct international hospitality management company.
H: What is the biggest opportunity for Grace’s growth?
Fong: The greatest opportunity is the rise of experiential travellers, who are seeking personalized and unique experiences in the city they are travelling to. As Singapore’s first luxury boutique hotel, The Scarlet is poised to meet this increasing demand and hope to meet the expectations of our guest.