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Accor’s Asia-Pac CEO talks brand strategy, recruitment

“To make a hotel work, first is location, then the brand, then ownership and then the GM,” says Michael Issenberg, chairman and CEO Asia Pacific, Accor.

His vast territory stretches from the Indian subcontinent east to French Polynesia. He has over 1,100 open hotels and a signed pipeline of over 284, to open within five years. His team at his Singapore base is around 120, and he also oversees regional offices in India, Thailand, China, South Korea, Japan, Indonesia and Australia.

“About 50% of our new hotels are with existing owners — we are guardians of owners’ assets,” he explained, adding that of his open hotels roughly two-thirds are Accor-managed, the rest franchised.

Accor’s Michael Issenberg at his office in Singapore: “It is up to us to stand out from our competitors when it comes to being an attractive place to work.”
Accor’s Michael Issenberg at his office in Singapore: “It is up to us to stand out from our competitors when it comes to being an attractive place to work.”

“My biggest ongoing concerns are safety and security, then finding talent. We have a total complement of over 113,000 employees in APAC (around 40% of global total), with an approximate line-staff turnover rate between 30% to 40%. In Asia Pacific we need more than 10,000 new staff each year just to keep pace with our development, not to mention the addition of travel verticals and complementary businesses, so of course talent acquisition is a worry.

“We work very hard to elevate the reputation of hospitality to show that we can provide fun, interesting career paths for the long term and not just a job while people are studying for another career.

“We also have a unique situation here in Singapore — where we have 15 properties — where there are quotas on foreign workers, which makes it difficult for us to fill vacant positions,” he continued. “We hope that in time, the ASEAN agreements will help lead to a better flow of talent across borders between participating countries as this will help us fill positions throughout the region. Ultimately, it is up to us to stand out from our competitors when it comes to being an attractive place to work.”

Issenberg is a big believer in mobility, at all levels. “We can move our people, line staff or management, between brands, say promoting GMs from Ibis to Mercure, but it would be rare to see movement from, say, Ibis to Raffles.”

Like, it seems, the entire travel and hospitality industry, not only in Asia Pacific, he is looking forward to the re-opening of Raffles Singapore, scheduled for August 1. “It will help kickstart other developments but the hotel was already known. It will be wonderful to have it back, both for Singapore and the brand. The opening of new celebrity restaurants including with Alain Ducasse, Jereme Leung and Anne-Sophie Pic will be good as it will elevate the dining experience in Singapore, where eating ranks as one of the nation’s top pastimes,” he explained.

When it comes to integrating former FRHI brands into future development, Issenberg feels that although Raffles is well-known — as is Fairmont — throughout Asia Pacific, expansion will still take time at the luxury level.

“Australia could take a Raffles in Melbourne or Sydney, and the brand has potential including other gateways, Beijing, Hong Kong, Shanghai and Tokyo.”

Some of the other names in Accor’s 38-brand portfolio are not so well-known in his region: “Introducing SBE’s brands and 25Hours will undoubtedly take longer. Potential developers may well need to go to the USA to get to know what SBE is all about, and to Europe or Dubai to understand 25Hours. I do think 25Hours will definitely come, but probably only three, at most, in Asia Pacific.”

In May 2018 Accor paid A$1.2 billion for Australia’s largest hotel group, Mantra, which added 138 properties in Australia, New Zealand, plus Bali and one in Hawaii. The Mantra acquisition expands the portfolio held by this U.S.-born hotelier who was CEO of Australia’s mighty cross-industry giant Mirvac before joining Accor in 1994 (Accor snapped up Mirvac’s hotels in 2012, for A$320 million).

“Right now, an immediate priority is to incorporate Mantra into our portfolio — with luxury and lifestyle it takes some time to integrate — followed by maximizing opportunities for all our global brands.”

He also, like a good Boy Scout, has to be prepared. With Accor, additions might come at any moment. “I cannot plan more than two years ahead.”

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