The merger and acquisition rumor mill is as hot as a firecracker these days with the likes of Starwood, IHG, FHRI and others being poked, prodded and speculated about just about every business day. Another company recently brought into play is Mövenpick Hotels & Resort with IHG listed as the predator after its discussions with Starwood apparently fell apart.
While Mövenpick President and CEO Jean Gabriel Pérès was unable to comment other than to say his board in early August had not indicated that such a plan is in place, when he recently talked to HOTELS about the state of his company he made it clear how well he understands and protects the power of his perfectly Swiss brand. In fact, whether or not the brand trades hands, Pérès believes the value of the Mövenpick brand could mean more to the company than its cash flow.
“Something I have always been able to do is express what our brand represents to guests and how valuable that is,” said the Frenchman who has been at the helm of the Baar, Switzerland-based operation since 1999. “It is a passion of mine, and we must always teach everyone in our company what the brand is supposed to express.”
Pérès also likes to remind those around him how privileged the hotel company is to live under the halo of the parent Mövenpick company, which includes restaurants and food brands ranging from coffee, ice cream and chocolate to salmon, yogurt and beyond.
“Not many hotel companies have this,” he says. “We have this internal service philosophy called ‘natural enjoyment.’ But it hasn’t been spread to customers. Now we are telling guests with a new ‘We Make Moments’ theme.”
In fact, the new tagline was very recently endorsed for the entire Mövenpick family of brands and is rolling out in the weeks and months ahead.
Pérès says his teams have many opportunities to impress guests, which has proven to have a positive impact on quality scores. “We have organized workshops challenging all ranks to create special moments for guests, and the feedback has been amazing,” he says. “We want to let our associates express what comes from within and recognize the true dignity of the people working in our hotels. We need more originality and to go beyond standards to show generosity and genuineness in terms of servicing guests.”
A big part of that genuineness will continue to come from, not surprisingly, the F&B department, which Pérès says accounts for 33% of total revenue and a margin of better than 20%.
Among the F&B programs being promoted is “Healthy Shots,” an integral part of the Mövenpick breakfast offering made with fresh fruit and vegetables. The idea is that by having a server hand a Healthy Shot to a guest and explain the ingredients, a positive interaction is established and creates a moment of generosity and kindness to start the day. Later each day, the Chocolate Hour in the lobby is intended to be a seasonal, elegant and fun touch for guests to enjoy live, particularly Swiss demonstrations such as rolling truffles, icing cupcakes or scooping ice cream.
Future of the brand
While the service philosophy continues to be honed across the brand and despite the incessant rumors, not surprisingly, with 82 properties in operation as of July, Pérès prefers to point to 18 new Mövenpick properties signed and in various stages of development. By 2020, he wants 130 to 135 hotels in operation or under construction, adding that he has received great support from the board for his vision.
Mövenpick has been signing 10 to 15 new management deals per year, and Pérès wants to accelerate the pace to two deals per month, pointing to the advantage of what he says is valued-engineered costs that are 30% to 40% less than peers in its comp set. He boasts, “I have known owners for more than 15 years and have delivered promised returns, and often more, because we are a Swiss company good at value engineering.”
Now the industry must wait and see whether it will remain business as usual at Mövenpick or if a new plan develops under new brand ownership.