Guoman Brand Ready To Grow
In London, Asia

Deluxe operator expects to reach 15 or more properties in next three years

By Derek Gale, Senior Associate Editor -- Hotels, 5/14/2008 11:48:00 AM

Guoman Hotels, a deluxe hotel brand several years in the making (it was first announced in 2005), now is ready to tell its story. With three properties in key locations throughout central London, Guoman expects to double its presence in that city within three years time, while also expanding to international markets like Beijing, Shanghai, Kuala Lumpur and Ho Chi Minh City.

The company, officially known as Guoman Hotel Management Ltd., is confident in its ability to grow rapidly in Asia Pacific, as it is owned by the cash-rich, Malaysia-based Hong Leong Group.

Before doing so, however, Guoman will focus on its home market of London, where properties currently in the portfolio include The Cumberland, Charing Cross and The Tower. The company already has spent some £48 million on the design and renovation of these hotels, and expects to spend another £100+ million over the next year or two as it prepares to bring three additional London hotels into the collection: The Royal Horseguards, The Grosvenor and Marble Arch, while also building a new 5-star deluxe hotel near Terminal 5 at Heathrow.

"Each hotel in the portfolio will be uniquely different, with its own defined identity and style, providing the very highest levels of comfort and service to all its guests," says Sanjay Nijhawan, chief operating officer. Service standards will be the thread that ties the brand together, Nijhawan adds (Guoman has two unique training academies, one for front office employees and one for F&B employees).

Points of differentiation from other 4- and 5-star deluxe hotels and brands will include properties with exceptional locations (and individual styles meant to reflect the properties' special settings) along with staff members dedicated to the highest level of personalized service, Nijhawan says.

Brand standards include Guoman beds created specifically for the company by Hypnos, Egyptian cotton linens in all guestrooms, Elemis toiletries and plasma televisions. The brand also is dedicated to fine-dining and nightlife, with Michelin-star caliber restaurants and bars that feature live music. And all new-build Guoman properties will feature full spas.

Another common element at Guoman hotels is the Guoman Club lounge, offering personalized service from exclusive check-in and check-out to dining and entertainment reservations and coordination, in addition to complimentary refreshments throughout the day.

Concerning the brand's expansion into Asia, Nijhawan notes that Guoman (which means "international gateway" in Mandarin) already has a resort property in Port Dickson, Malaysia, and expects additional properties in Kuala Lumpur. But even before those come online, the company already is building in both Beijing and Shanghai, with expectations of opening those properties in 2009 and 2010, respectively. In addition, Guoman has purchased land in Ho Chi Minh City, Vietnam. (The company has offices in Malaysia, Singapore, Hong Kong and Vietnam, Nijhawan also notes).

After taking a few years to define itself and ramp up, Guoman now is ready to grow rather quickly, and in addition to building/owning hotels and looking for management agreements, the company would even consider purchasing a portfolio of hotels to accelerate its growth if the right group were to become available, Nijhawan says. Now is "the right time to see what's out there," he notes.

As for additional attractive markets, Nijhawan mentions Riyadh, Jeddah and Istanbul, as the brand already has some recognition in the Middle East thanks to a portion of its London business coming from that region.