MARKO HYTONEN, area vice president, Rezidor Hotel Group, spoke to SHALU CHANDRAN about the Park Inn brand
WHAT kind of feedback have you received with the opening of the two Park Inn hotels in KSA and Oman?
Although it is still early days, with both having recently opened, the feedback so far has been positive. Park Inn is a fresh, dynamic and innovative brand which fits perfectly with the emerging markets in Saudi Arabia and Oman. Both are markets where most international brands that are present are aimed at the luxury traveller.
Prior to the Park Inn arrival, mid market choices in these countries have largely been provided by local and regional operators.
Will we see more openings in 2009? Where?
We will be launching the Park Inn brand in the UAE with the opening of Park Inn Yas Island, Abu Dhabi in time for the inaugural Abu Dhabi Formula One Grand Prix. Beyond 2009, we have already announced two new hotels in Saudi Arabia in Riyadh and Makkah.
What are the future development plans for the brand in the region?
We see an excellent opportunity to expand our growth in the region by introducing Park Inn as a new, competitive, mid-market brand with appeal for both local and international travelers. We are currently evaluating certain destinations for Park Inn properties and eventually it will take over – in terms of number of properties – from Radisson Blu.
What is its USP?
Park Inn is a young, fresh and fun brand offering mid-market value with upmarket style. It is full of positive energy and caters to the mid-market customer. It prides itself on having really mastered the essentials, which includes providing the best sleep in town, as well as the best shower and the best breakfast at this price level.
Is now a good time for travellers to go for three and four star properties?
Park Inn’s strong value proposition is especially attractive in a softer economy. If you look at business travel, we have seen a sharp cut-back in meetings related travel. Initially, companies tend to cancel big meetings that require travelling, but that eventually leads to a pent up demand as the need to meet does not go away. We anticipate that most companies will slide down a notch when resuming business travel for meetings. But the corporate buy down stops there. Two star hotels do not have the business model or the facilities to support meetings and events and therefore, we anticipate that three and four star Park Inns will benefit greatly from this trend.
With many five star hotels introducing value added promotions, will occupancies be affected?
Naturally, there has been a decrease in terms of occupancy and demand as a result of the current economical crisis. All hotel companies are currently taking the necessary measures to maintain their revenue and profit lines. We are experiencing more drawbacks in occupancy levels of five star hotels as opposed to Park Inns. Mid-market brands are easier to manoeuvre and adapt to market demands and situations.
What are your plans for summer?
We will continue the launch and showcase our new Park Inn brand and products in the region. Our clear direction is to promote these properties with very attractive tactical offers versus soul branding exercises in order to maintain high volumes.
We are also planning to reach our customer base with a number of online promotions this summer. And by the end of it we are hoping to finalise the re-branding of all our Radisson SAS Hotels to Radisson Blu.