2012 has been a record year for Kempinski, according to Duncan O’Rourke, chief operating officer of Kempinski Hotels.
“Europe, where we had seen some depression has made progress with markets like Germany being the key driver. Germany has had a strong performance over the last year at both the top and bottom line and our flagship hotels such as the Hotel Adlon Kempinski Berlin and the Hotel Vier Jahreszeiten Kempinski Munich had record breaking years,” he told TTN on the sidelines of ILTM, Cannes last month.
Western Europe continued to perform well too, as revenue and gross operating profit are in line with the budget for the year-to-date. Switzerland has been struggling to attract leisure clients due to the strength of the Swiss Franc but Grand Hotel Kempinski Geneva continues to be a pivotal hotel in terms of profitability.
“Other markets like China continue to show strong results. We just opened the Kempinski Hotel Chongqing, a 416-key hotel and our 15th hotel in China.
“However the main thrust of business has definitely been from Europe for Kempinski Hotels last year,” he added.
MEA markets stayed above targeted levels in occupancy and RevPAR (revenue per available room), mainly fuelled by the excellent performance by Kempinski Mall of the Emirates and Kempinski on the Palm, as well as hotels in Ajman and Djibouti. While some destinations suffered from continued unrest, at the same time other hotels, such as Dubai and Doha, benefitted from the redirected demand. The Kempinski Hotel & Residences Palm Jumeirah had the highest average rate in the company for the year to date.
Kempinski’s leisure destinations in the region have seen great demand from the main feeder markets in Q4, confirming the attractiveness of the product and services. Total revenues for the entire region are up by 15.4 per cent compared to last year.
In Africa, Djibouti Palace Kempinski is leading the region, over performing in all parameters of its business and generating a healthy bottom line. Seychelles has entered the market in March and quickly reached promising occupancy levels despite some initial remedial work.
As a testament to Kempinski’s promising growth prospects in Africa, Villa Rosa Kempinski in Nairobi, Olare Mara Kempinski in Masai Mara and Kempinski Hotel Gold Coast City in Accra are all counting down the days until they open their doors to travellers, bringing a new level of luxury to the continent.
O’Rourke is quick to admit that one of the key reasons for this strong performance has been the restructuring program that the company adopted during the global recession.
“We looked at our resources and hired more talent, restructured and put ourselves in a position where we could capitalise on it now. So when everyone else was firing, we were hiring, thus keeping the brand promise,” he added.
“In 2013 we will launch several new exciting hotels. We have always maintained that we will not have more hotels than how old we are – which is 122 this year. We believe that luxury is limited and so we cap our growth,” he added.
New Kempinksi properties under development currently include the Kempinski Ambience Hotel Delhi (480 keys, opening January 2013), Kempinski Hotel Nikols’kaya (210 keys, opening Q1/2013), Kempinski Palais Hansen Vienna (149 keys, opening March 2013), Olare Tented Camp Masai Mara 12 tents, (January 2013), Kempinski Hotel Gold Coast City (269 keys, opening April 2013), Villa Rosa Kempinski Nairobi (200 keys, opening April 2013), Grand Hotel Kempinski Batumi, Black Sea (250 keys, opening 2015), Emerald Palace Kempinski Hotel Kiev (200 keys, opening 2015) and Kempinski Hotel Crescent Baku (280 keys, opening 2016).
In the Middle East there plans are underway to open two hotels in Saudi Arabia in late 2013 – The Kempinski Hotel Al Othman Al Khobar and the Burj Rafal Hotel Kempinski Riyadh. The Kempinski Hotel Royal Maxim Cairo and Kempinski Hotel Pearl Island Doha Qatar are scheduled to open in 2014.
Another first for the luxury brand is the development of Nuo, its first Chinese international luxury brand. The first Nuo hotel and flagship for the brand will open in Beijing 2015. At the same time, a second property in Shanghai is under development and based on an Art Deco theme. Over the next few years, Nuo plans to open landmark properties in first- and second-tier cities in China and in major cities around the world.
The brand Nuo is based on four pillars: Chinese heritage, luxury, a contemporary feel and a green approach. These four pillars and unique style of service represent Nuo’s core philosophy and ensure that guests will enjoy an unprecedented hotel experience.
2013 will also see the brand introduce the first European Spa brand called Resense, the renaissance of the classical European Spa. A fusion of modern and traditional design, art, music, therapy and bathing, its first spa will launch in early 2013 in Accra, Ghana, with another three currently in development.
“Looking ahead, we want to evolve from a rooms company to a food and beverage company with rooms. The vision is to become an undisputed leader in the hotel and restaurant business, and to make food and beverage a key differentiating factor for the Kempinski brand, driving the top-line while ensuring sustainable and profitable operations.
“This involves launching new fusion restaurants, new concepts like home cooking. We would like for every Kempinski Hotel to prepare and serve the best local dish in town,” added O’Rourke.
As part of its corporate social responsibility, Kempinski also launched Kreen, a Kempinski Arts Programme that offers outreach programmes in education and experience to young talents in classical music and visual arts, two favourite international cultural activities that can be communicated without language barriers. So far, the company has awarded 14 fellowships in three years, fully funded by Kempinski.