GOSTELOW REPORT—“Looking back at the Global Hotel Alliance CEOs meeting earlier this month, in Hong Kong, I must say I am proud to be part of this prestigious, ever-expanding alliance of independent hotel brands,” says Nicholas Clayton, CEO of Capella Hotel Group.
The Global Hotel Alliance (GHA), which now has 35 brands, held its annual global meeting at The Murray, a Niccolo Hotel, in Hong Kong on 7-10 November. This was Capella’s first appearance and Clayton took full advantage, introducing his portfolio to such other GHA members as Kempinski, Minor Hotel Group and Pan Pacific Hotel Group.
Capella is 100% owned by Pontiac Land, headquartered in Singapore. It has six hotels, one each in Düsseldorf, Germany, and Ubud, Bali, plus two in Singapore and two in China, one in Shanghai and one on the Hawaii-like island of Sanya. The present total room count is 486, with a global hotel team of 1,800 plus 25 in head office.
Next opening is Bangkok, scheduled for March 2020, and he has a pipeline of seven. “My wish list includes Phuket, Thailand; Hong Kong; Tokyo and Kyoto in Japan, and Beijing, China,” he admitted.
No one could call Capella cookie-cutter. Every property is unique. Sydney, Australia, will be a conversion of the city’s central business district education offices.
In Singapore, the Capella, a former U.K. officers’ club on Sentosa Island that was majestically extended with side arms by architect Norman Foster, is shortly to be refurbished by cult designer André Fu, while across town Capella manages the Pacific Land-owned Regent Singapore, with Regent owner IHG supporting its distribution strategy. In China, Sanya is a typical Jean-Michel Gathy resort with Bill Bensley grounds that look decidedly One&Only, which was what the property was originally going to be.
Shanghai, in the city’s old French Concession, is showing way-above forecast business demand for its four-floor units, and Clayton admits that he had under-estimated that hotel’s culinary return.
“We were not sure that French dining, even overseen by Pierre Gagnaire, would work, and we made the look somewhat casual. But the market wanted fine dining, so we elevated tabletop, raised prices 15%, gained a Michelin star and we are making 20% profit,” he revealed.
Several GHA members have more than one brand and, indeed, Clayton is also working on four Patinas, a name that Pontiac retained after an abortive joint venture to start that brand in Singapore in 2016. The first Patina will be a 110-villa resort in the Maldives that was originally conceived as Park Hyatt: It, and an André Fu-designed Capella, each will have one complete island in a five-island man-made atoll (another considerable Pacific Land investment).
Next will be a 376-key Patina literally next door to Capella Sanya. “Patina is lifestyle, entertainment; I want our GMs to entertain our guests,” Clayton said, adding that that wish also applies to Capella general managers – Capella Sanya has started a daily routine of morning tai chi performances and evening story-telling that are paving the way for similar twice-a-day appropriate rituals in all properties.
Clayton (“Nicholas please, no shortenings”) seems to be thoroughly relishing the entertainment side of the business. He undoubtedly would have made a great stockbroker, his childhood ambition when growing up in Philadelphia, but his life now is human. In 10 years’ time he intends still to be heading Capella Hotel Group — and he does not rule out that all-inclusive may creep into his growing portfolio.
“And I do know that as we expand we will be working closely with our fellow Global Hotel Alliance members to enhance our distribution and customer loyalty,” he said determinedly.