case study - raffles makati
DESCRIPTION
Presented on 9 November 2010 at the Philippine Tourism Investment Forum by Susannah Donne, Director - Global Sales, Europe, Fairmont Raffles Hotels International, on behalf of James Kaplan, SVP - Development, Fairmont Raffles Hotels InternationalTRANSCRIPT
Philippines Tourism Investment ConferenceLondon
9 November 2010
2
Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
The Raffles Brand
Raffles is a global luxury hotel management company which traces its roots back to 1887 with the opening of the acclaimed Raffles Hotel in Singapore.
Through the years, Raffles has journeyed from a fabled past to the highest echelon of the hospitality industry.
Today, Raffles Hotels & Resorts is known to create enchanting experiences through providing gracious and heartfelt service in a sophisticated residential environment.
4
History
Raffles Hotel opened on Beach Road under the management of Tigran Sarkies, offering 10 rooms in an old bungalow-style building
Raffles International Limited was formed as the hotel management arm of Raffles Holdings Limited
1887 1989
1991
Raffles Hotel, Singapore reopened on 16 September after a complete restoration
Expands footprints to open two landmark hotels in Cambodia - Hotel Le Royal, Phnom Penh and Grand Hotel d’Angkor, Siem Reap
1997
First hotel in China - Raffles Beijing opened in June
Expands into Middle East – Raffles Dubai opened in November
2007
2010
onwards
Raffles continues to open more hotels and resorts in key cities around the world including Seychelles, Makati, Moscow and Jakarta
2006
Raffles opened Tianjin in March and 2 other hotels in Makkah and Paris in August and October respectively
10
Raffles Hotels & Resorts
Number of Hotels & Resorts:
8 in operation5 under development
Average size: Urban 150 to 250 roomsResort 100 to 180 rooms
Market Segments:
Luxury tierBusiness Transient
Competitive brands:
The PeninsulaFour SeasonsMandarin OrientalOne & Only
Raffles Brand Average RevPar
120% Significantly outperforming its luxury competitive set
11
Global Portfolio
Dubai
Beijing
Siem Reap
Phnom Penh
Singapore
Manila
Tianjin
Paris
Jakarta
Moscow
Sanya
Seychelles
▲▲
Makkah
▲
▲▲
▲
▲
Under development▲
In operation
Current portfolio: Raffles Hotel, Singapore Raffles Beijing Hotel, China Raffles Grand Hotel d’Angkor, Siem
Reap Raffles Hotel Le Royal, Phnom Penh Raffles Dubai, UAE Raffles Tianjin, China Raffles Makkah Palace, Saudi Arabia Raffles Paris – Le Royal Monceau
Future additions: Raffles Praslin, Seychelles Raffles Makati, The Philippines Raffles Sanya, China Raffles Jakarta, Indonesia
12
Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
A joint venture between Kingdom Hotel Investments (KHI) (80%) and Ayala Land, Inc (Ayala Land) (20%).
The 30-storey complex occupies 7,377 sqm of prime freehold land on Makati Avenue.
The development will comprise a 300-room Fairmont Hotel, a 30-suite Raffles hotel and 239 Raffles-branded private residences.
The Project
Raffles Makati
Fairmont Makati
Located on Makati Avenue in the financial and cultural hub of the Makati District – often called the ‘Wall Street of the Philippines’ it is home to the Makati Stock Exchange and the Makati Business Club.
Situated directly across from the Greenbelt Mall, one of the most celebrated malls in all of Asia.
Raffles & Fairmont
Makati
Location
Raffles and Fairmont will have two separate entrances and lobby lounges, creating two distinct arrival experiences.
Raffles30 suites and 239 Raffles Residences Approximate size of guest rooms is 60 sqm
Fairmont300 guestrooms including 51 Fairmont Gold rooms and 8 suitesApproximate size of guest rooms is 40 sqm
Raffles and Fairmont Makati
First significant luxury branded residence in Makati
Opening in 2011, poised to become the premier address in Manila, with the first branded penthouse residences.
Creating a Legend – Raffles Makati
In July this year, a Raffles penthouse was sold at the highest price per square metre ever paid for a condominium in the Philippines.
A spokesperson for the buyer commented,“My client’s global portfolio consists of prestigious projects in several cities. This purchase was influenced by the fact that this development is the best project in Manila, both in terms of build quality and service levels that the Raffles brand is synonymous with.”
Colliers International, Philippines, “This sale is reflective of continued confidence in this market, and an appreciation by buyers, both local and international, of premium and branded product. Raffles Residences has certainly set the standards for the local, ultra-luxury residential market, and we expect this trend to continue with surging demand for branded residences.”
Raffles Residences – Record Sale Price
An elegant Raffles Lobby Lounge Refined Japanese restaurant
The Long Bar, featuring live jazz
An all-day dining restaurant
Designer boutiques and shops in the retail mall
Raffles Makati – Facilities & Amenities
24-hour concierge service
24-hour signature Raffles Butler service
Raffles Makati - Services
Hotel Lobby
Typical Guest Room
Deluxe Suite – Living room
Presidential Suite
Raffles Lounge
All Day Dining
Long Bar
Swimming Pool
Raffles Residences - Master Bedroom
Raffles Residences - Living Room
Raffles Residences - Kitchen
Raffles Residences - Bathroom
Fairmont Makati offers additional facilties including:
Spa and Fitness Willow Stream Spa State-of-the-art Fitness Center Separate outdoor swimming pool and terrace for each brand
Meeting & Function Facilties 20,000 square feet of combined meeting & banquet space Shared amenities Full service business center
Fairmont Gold Private Gold floors with an exclusive lounge
Fairmont Makati
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Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
Makati is one of the 16 cities that make up Metro Manila, one of the most populous metropolitan areas in the world.
The financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia.
As the host of various embassies, it is also an important center for international affairs.
No new hotel room supply since 2002 or anticipated at this time.
Present luxury brands in this market are Shangri-La, Peninsula, Mandarin Oriental.
Significant gains in ADR/RevPAR were made since beginning 2006.
Makati City
37
Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
Raffles Makati Fairmont Makati
Market Mix:
41% Transient Individuals36% Corporate Travellers13% Group Meetings and Incentives10% Leisure and Wholesale
Market Mix:
61% Transient Individuals 16% Corporate Travellers19% Group Meetings and Incentives4 % Leisure and Wholesale
Competitive Set:
Peninsula ManilaMandarin Oriental, Manila
Competitive Set:
Makati Shangri-la, ManilaInterContinental ManilaRenaissance Makati City
Target Audience
39
Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
40
The Philippines’ national economy is one of the 50 largest in the world.
The Republic continues to experience positive GDP growth and attracts foreign investment and tourism.
FRHI seeks development opportunities in Cebu for a Fairmont resort and Manila for a Swissôtel.
Future Development Plans in The Philippines
41
Outline
Raffles Hotels & Resorts
The Project
Raffles Makati
Fairmont Makati
Makati – The Market
Target Audience
Future plans in The Philippines
Development Pipeline in Asia
42 Note: Status as of July 2010
Existing Fairmont (62 hotels)
Existing Raffles (6 hotels)
Existing Swissôtel (28 hotels)
Current Global Portfolio
FRHI will add 55 properties by 2014 mainly outside of the Americas
43Note: Status as of July 2010
Pipeline Fairmont (26 hotels)
Pipeline Raffles (18 hotels)
Pipeline Swissôtel (11 hotels)
Existing Fairmont (62 hotels)
Existing Raffles (6 hotels)
Existing Swissôtel (28 hotels)
Development Pipeline - Global
44
Raffles
Future openings: Sanya, Jakarta
Actively looking at projects in Bali, Kular Lumpur, Shanghai, India and Thailand.
Fairmont
Future openings: Sanya, Jaipur and Hyderabad, India
Pending projects in Jakarta, Bali and several major cities in China and India.
Swissotel
Newly opened in Kolkata this year
Future projects include many new openings in India and China
Development Pipeline - Asia