Issues & Trends – December 2011
What’s NEXT as Constellation becomes SilverNeedle and aims to lead Asia-Pacific
FOLLOWING SilverNeedle Hospitality’s recent acquisition of Constellation Hotels, the group has re-launched its Australian operation under the SilverNeedle Hospitality corporate brand and set its sights on becoming “one of the top hotel groups in Asia Pacific”.
A “new highly efficient urban hotel brand – NEXT Hotels” is a key element of the strategy being imple-mented by the Singapore-based company, a wholly owned subsidiary of the $US750 million Nadathur Group. The NEXT Hotels model is based on a 100 – 250 room hotel for business travellers that offers a combination of service and self-service, replacing a number of traditional hotel elements, such as multiple restaurants and large banqueting facilities, with “neighbourhood restaurants that are run by local vendors”.
Pointing to a shortage of rooms in the four to four-and-a-half star market and claiming parent company technology will help deliver energy, including hot water and air conditioning, at a lower unit cost, SilverNeedle Hospitality senior vice president – operations Jonathan Wooller claimed his company’s new flagship brand will attract property investors “by consistently delivering higher returns”.
Wooller has led Constellation Hotels for the past six years overseeing its expansion from 38 to more than 65 properties in Australia and NZ.
SilverNeedle will deploy the know-how of its Australian acquisition as it implements plans to expand its Asia Pacific footprint.
Joining Australian hotel brands Chifley, Grand Chifley, Australis, Country Comfort and Sundowner in the SilverNeedle Hospitality portfolio are South East Asia independent boutique hotels and resorts including SilQ, Bangkok, Kiridara, LuangPrabang, Laos, Surya, Bangkok and the soon-to-be opened 137 Pillars in Chiang Mai.
The company is scouting for hotels in China, Vietnam, Thailand, Indonesia, India and Sri Lanka with plans to grow by over 10,000 rooms in the next five years.
“The name change enables us to have a more consistent presence in both Australia and Asia and to make it very clear to our regular business and holiday guests that there is a lot more to our offering now,” said Wooller.
“Our existing brands are consis-tently experiencing significant year on year growth in occupancy and RevPar (revenue per available room). We will continue to expand these brands in Australia as well as look for export opportunities into Asia.”
Wooller assured that Constellation’s “highly experienced team” will remain in place under the SilverNeedle banner, adding they will work closely with their counterparts in Singapore, Bangkok and Mumbai to expand the NEXT brand.