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Expansion Policy
What is your policy to strengthen your company worldwide?
MHR has witnessed considerable growth of its portfolio in the last few years. Last year alone we signed new hotel management contracts resulting in 35% growth in the number of new hotel rooms with over 20 new hotels currently under development and due to open within the next 24 months. We intend to continue this expansion growth with the objective to operate 90-100 hotels by 2010. We are focusing on Europe, Africa, the Middle East and also Asia where we recently signed a management agreement for a new 220 room hotel in Bangalore, India due to open in 2008.
What are the main obstacles – benefits in expanding your brand?
Probably a key challenge facing any rapidly expanding hotel company including MHR is the need for qualified personnel at just about all levels. As a result, we implemented an internal management development program with the objective to build and recruit managers and key personnel from within. Given the company’s rapid growth, delivering our high standards of Swiss quality and service on a continuous basis in all new hotels, is not without its challenges.
The fact that we are an internationally renowned hospitality management company with Swiss roots and incorporating Swiss values in everything we do, brings multiple benefits to the expansion of the brand. More importantly, strategic expansion of the brand brings a lot of added value to our customers, partners, hotel owners and ultimately our shareholders.
Which destinations have more dynamic potentials?
Lately and surely in the next few years, the Middle East and in particular the GCC countries, have shown very dynamic growth rates. Asia as well is booming and projections for countries such as India and China are very promising. Simultaneously, select areas of Africa hold considerable potential as do some destinations even in established Europe.
How did your company expand the previous decade and where are you going to invest in the next decade?
Between 1999 and today, we have more than doubled our portfolio from 35 hotels to over 75 hotels & resorts in operation or under construction and this with very minimal investment. Our plans call for 90-100 hotels in operation by the year 2010, fuelled largely by new management agreements with little or no investment. Nevertheless, our growth will not be just for the sake of growth, but healthy growth. All new hotel developments will need to make sense financially and quality-wise with the objective to satisfy first and foremost our customers’ needs & expectations, while providing healthy returns on investment for our partners and shareholders.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
