“I always said that when I reached 50 I would go back to Europe,” says the perennially youthful Bernold Schroeder, member of Kempinski AG’s management board and vice chairman of Kempinski SA’s board.
“Interrupted by a short spell in New York, in total I did 30 years in Asia, including four in China. I had realized for a long time that Kempinski is regarded in Asia with the same awe as such other German brands as BMW and Mercedes. I knew Kempinski CEO Markus Semer through the Global Hotel Alliance, GHA, and we had lots of talks. He needed someone to support him, a chief of staff on his own level to help with commercial focus that works in tandem with disciplined execution. I joined Kempinski in May 2017 in a new role, one of the three members of Kempinski AG, which owns Kempinski. I am also Kempinski’s head of operations, Europe, which currently provides over half of the company’s income,” he explained.
Disciplined execution was shown a few weeks ago: On May 21, Kempinski beat off other serious contenders to be awarded management of The Capitol Kempinski Hotel Singapore.
“Our bid was accepted not only as a result of brand awareness but because we considered the owner’s point of view. We were minutely concerned with maximizing each square foot of the hotel and its residences, plus the complex’s integral mall and restaurant street, and the working Capitol Theatre which gives the development its name,” he explained. On May 23, with only two days’ notice, Schroeder hosted an international media cocktail in the hotel, with Kempinski colleagues flying in from Germany, Dubai, Thailand and China.
The company has significant presence in all those countries – it manages 21 hotels in China. Interestingly, it is not currently in Bahrain, home of the sovereign fund that acquired the majority of the Kempinski brand in February 2017 (the sovereign fund of Thailand retains a minority share), and Schroeder scoffs at rumors that the company is an acquisition target.
“Rumors don’t make any sense — we are not for sale at all,” said Schroeder firmly. He will say that, looking ahead, with his knowledge of both Asia and Europe, he thinks Asia will become increasingly dominant. “Europe does not realize that the world is shifting. We need to bring Asia to Europe to be win-win. We are re-locating some of our Asia-based GMs to Europe – the younger ones in particular have really valuable knowledge of Asia’s millennials.”
Even without any current properties in India, that country is, like China, a strong feeder market for the company’s hotels. “We need to be back in India, and in Hong Kong. Worldwide, we want to be in all key cities, one hotel per destination, with perhaps two in, say, Beijing,” he said (Kempinski still manages two in Berlin). With 85 hotels operating and a pipeline of 15, there is a lot of work to be done. Fortunately, the German, who at 16 was toiling overtime setting up a surf gear operation, is no stranger either to hard work or efficiency – he personally sent out photos of the Singapore party within 12 hours of it ending.
Kempinski has a strong investment in its people, and Schroeder is a strong advocate for promoting the young (“if I like someone I will go all the way for them,” he declared). When necessary he will personally chart a path. He was MD operations and development of Banyan Tree Hotels and Resorts for 14 years, and he recalls traveling to Delhi to talk with P.R.S. Oberoi, scion of that group. Even then Schroeder talked owners’ language, and a partnership was signed between Banyan Trees’ spas and Oberoi’s hotels – the partnership expired after Schroeder moved on, in turn to be CEO Jin Jiang, in Shanghai, China, and then, again as CEO, of Singapore-based Pan Pacific Hotels & Resorts.
“One of our many opportunities now is to enhance F&B in many of our properties, to give a better return to owners. We are doing all right when it comes to fine dining – one of our Michelin-starred chefs will be cooking during Virtuoso Travel Week in Las Vegas this August,” he shared. Some hotels, notably in Vienna, Budapest and Bangkok, have widely applauded breakfast buffets, but on a corporate basis there can still be enhancements.
“Quality in luxury is a given and perhaps we have been a little low-key in blowing our own trumpet, but as we move faster and faster we are finding owners are coming to us rather than to big conglomerates. They like our size, and the fact that our close-knit management speaks several times a day. We all understand that the hotel business is not that difficult. It just needs execution,” he concluded, before rushing off to yet another long-haul flight.