Park Hotel Group’s Allen Law rolled up his sleeves to learn the processes that lead to better innovation and sustainable growth. This is the latest in a series of profiles of leaders around the world challenging the status quo. Read them all in HOTELS’ April issue.
From a scrawny, awkward 24-year-old when he first joined his father’s Park Hotel Hong Kong, Allen Law has come into his own and become a poster boy for successful new-gen Asian hotel entrepreneurs.
The son of Hong Kong real estate tycoon Law Kar Po showed leadership is in his blood as he grew the single hotel into a branded operator comprising 16 owned/managed assets with over 4,500 keys across 11 cities in Asia Pacific. All this was accomplished in just 15 years; he became CEO of Park Hotel Group in 2012.
“If you were to ask me what attributes immediately come to mind to describe Allen, I would say entrepreneurial, fast-minded and strategic,” says Diana Ee-Tan, vice chairman, Singapore Hotel & Tourism Education Centre Institutes, and former president of Raffles Hotels & Resorts. “The expansion of his hospitality group over a short span speaks for his business acumen.”
Ee-Tan, who has served on a couple of boards and committees with Law, adds, “As someone with a very comfortable family background, who could have gotten by without getting his hands too dirty, he does stand out in that from the outset of entering the hotel business, he was willing to be a hewer of wood and a drawer of water, so to speak, working alongside his team in all areas of operations, in front office, housekeeping. He learned quickly, at that, the ropes of the trade.”
Learning the business
Rather than coming in as the privileged son of the owner, Law rolled up his sleeves to learn the business in six months of training, working double shifts for 16 hours every day across departments.
“It was hard work and I gained exposure and insights into how many processes could be done more efficiently,” Law says. “Innovation is crucial in this business, and this is the mentality and culture that I have tried to instill in Park Hotel Group since day one.”
In expanding the brand, Law saw two opportunities: First, an exponential growth in Asia Pacific that drove the need to create products catering to diverse Asian travelers. Second, Law recognized few hotel operators were themselves owners. By wearing both hats, he saw he could add value to other owners not only by delivering business but by increasing the asset value.
“Asia Pacific reported the highest growth by region of about 10% in 2016, led by strong demand from intra-regional source markets. The tourism outlook is expected to remain robust and resilient for the next few years,” says Law, who recently launched a third brand, the select-service Destination, after his Grand Park and Park brands. “The positive market sentiment and a deep understanding of Asian cultures and values present a huge opportunity for Asian homegrown hotel groups to grow their presence in emerging or untapped markets in this region to further strengthen their foothold. It’s a very exciting time for Asia now where travel interest and spending remains strong and our portfolio of brands is able to serve the varying needs of diverse travelers.”
Nimble, caring culture
Law believes Asian brands can tailor their products and services to the Asian customer at every touchpoint of the guest journey – “not just changing the breakfast menu items but also looking at how these customers book, transact, engage and then developing new strategies and channels to be where they are.”
This is far more important than blindly rushing into technological innovations like self-service check-in kiosks or voice-controlled rooms. “We are in the people business, and love is the core of our hospitality,” says Law, referencing the chain’s marketing theme of “Loving Hospitality.” “People travel to be inspired and enriched by local cultures, people and stories. The human connection that binds these experiences is invaluable and is what makes travel meaningful.”
The next lap for Park Hotel Group, however, won’t be a breeze – even if it has become an established name. So these days, Law, now 37, is preoccupied with how to ride changes hitting the industry.
“2016 saw the M&As of some of the biggest players in the industry,” he says, adding that the sharing economy will also continue to grow and disrupt the way things are done traditionally. “The growing dominance of OTAs and large, well-funded companies like Google getting into the hotel booking business have also changed the dynamics,” he continues. “Along with the shift in customer preferences, from the way they choose to transact to the way they experience the destination, change is taking place across the ecosystem.”
Law also believes the group’s smaller size and structure will allow it to respond quickly. For example, it is implementing payment gateways and developing standalone hotel websites dedicated to serve the needs of specific markets.
Corporate culture will also need to evolve and adapt to the fast-changing landscape, Law muses. “Why are certain companies or industries able to re-invent themselves faster than others? I believe corporate culture is a key factor.”
But it’s clear “Loving Hospitality” will remain the core of Park Hotel Group, no matter how the world changes.
Law, a father of two, says work isn’t work when you love what you do, and it’s the people you work with who share common goals that will bring about shared performance and results.