hotelier indonesia 18th edition

HOTELIER INDONESIA

HOTELIER

CLARENCE TAN

I N D O N E S I A

www.hotelier-indonesia.comHOTELIER COMMUNITY | JOBS | EVENTS | HOSPITALITY NEWS | MAGAZINE

Senior Vice President of Development,InterContinental Hotels Group (Asia, Middle East and Africa)

ASIA PACIFICUPDATE

HOTReport

2014 HOSPITALITY EVENTS UPDATE

HOT-SPOT MANTRA NUSA DUA

Hot Interview

EDITION 18TH/VOL III/ 2014

12 • HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com

HOT | interview

“Indonesia is a key growth market for IHG,

especially in the

mid-scale segment.”

CLARENCE TAN

COVER STORY


Senior Vice President of Development, InterContinental Hotels Group (Asia, Middle East and Africa)

HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com • 13

CLARENCE TAN:

Clarence Tan leads IHG’s growth activities across a diverse geography covering 38 countries ranging from South Africa to Australia and across the Middle East. Prior to this, Clarence was IHG’s Chief Operating Officer, South East Asia and Resorts overseeing the operation and perfor-mance of nearly 70 hotels in Cambodia, Indonesia, Malaysia, Singapore, Thailand, Vietnam and Philippines, as well as 19 resort properties in Asia, Middle East and Africa.

This year marks Clarence’s decade-long career with IHG. He joined the company in 2004 as Head of Finance for the Asia Pacific region, and took on the role of CFO and Head of Operations Support for Asia and Australasia in 2009.

1. Why is Indonesia a market of focus for IHG and what is the strategy for hotel development in the country?

Indonesia presents tremendous opportunities for us to grow our brands, accounting for nearly 60% of our development pipeline in South East Asia, especially in the mid-scale hotel segment. It is the fourth most populous country in the world with a bur-geoning middle class that is projected to double to 150 million by 2020, so we expect there to be a substantial increase in the demand for travel and tourism.

This positive outlook is supported by vast improvements in trav-el infrastructure by the government to operate 12 new interna-tional airports in Indonesia by 2015, including plans to expand existing airports in Jakarta and Bali. Regional airlines such as AirAsia and Lion Air have also expanded to widen their flight routes, so these trends create favorable conditions to grow our offerings and we remain bullish about the industry’s outlook.

When we entered into Indonesia, the market was already satu-rated with local players so we took a very strategic approach to make sure we can establish that competitive edge and this meant years of research to really understand the trends, travel patterns and economic conditions.

Today we have 12 hotels open in key cities such as Jakarta, Semarang, Bandung and Bali and we plan on growing our pres-ence by over 250% in the next few years to also cater to emerg-ing growth in second and third tier cities such as Surakata and Yogyakarta. CLARENCE TAN

HOT | InterviewCOVER STORY



HOT | interviewCOVER STORY

2. What is the development pipeline for IHG in Indonesia?We have a strong presence in Indonesia with two InterContinental, two Crowne Plaza, four Holiday Inn and also four Holiday Inn Express hotels which we opened back to back after introducing the brand into the country less than a year ago.

Over the next three to five years we plan to more than triple our current system size in Indonesia with 28 hotels (6,800 rooms) – four InterContinental, one Crowne Plaza, eight Holiday Inn and 12 Holiday Inn Express.

Indonesia is made up of over 17,000 islands so there’s opportunity for us to not only grow our city hotel offerings but also to have more resort properties. Next year we are opening the world’s first Hotel Indigo branded resort prop-erty in Seminyak, Bali.

Hotel Indigo is our boutique hotel offering and each property takes on the personality of the neighbourhood that it is situ-ated in. So in Seminyak you will see elements of Balinese tradition, local culture, ethnic flavours and everything else that is popular to that area come to life through the design of the hotel.

3. How does the Holiday Inn Express offering dif-fer from other mid-scale, limited service hotels in Indonesia?Holiday Inn Express is our fastest growing hotel brand and it offers guests with a refreshing and uncomplicated experi-ence. This means having a comfortable stay in a convenient location near the city centre and at a reasonable price – that is the beauty of Holiday Inn Express. It is an affordable alter-native to full-service hotels with everything that guests need for a fuss-free stay including a comfortable bed, free and high-speed Wi-Fi access and free breakfast.

There is simply one size for all the guest rooms – queen or twin beds, so no suites or family rooms and each Holiday Inn Express is always situated close to shopping malls and res-taurants so there is no need to have restaurants at the hotel. This helps us to simplify the offering so guests know exactly what to expect each time they stay at Holiday Inn Express and with that also comes the consistency and reliability of a global hotel brand.

CLARENCE TAN

HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com • 15HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com • 15

Holiday Inn Kemayoran Jakarta




4. How do you see the travel industry evolving over the next few years?Travellers now expect global hotel brands to be globally coher-ent, locally relevant and personally unique. This presents a new challenge to global brands to be three dimensional by integrating global, local and personal elements in their offerings.

In the latest IHG Travel Trends Report titled ‘Moments of Trust’, we found that travellers expect a more personalized experience and this is especially apparent among travellers from emerging markets. 68% of travellers from Brazil, 60% from the UAE and 58% from China are more likely to choose a hotel brand that demonstrates its understanding of the city’s local cultures and customs – they are more inclined to trust the brand this way.

The reports help us better understand what travellers around the world want out of their relationships with global hotel brands. While they expect certain standards and consistency, they don’t want a cookie cutter experience. The more a brand shows its respect for the local culture, the more likely consumers are to trust the brand.

Trust is one of the most valuable currencies a brand can have. Brands that build trust can reduce uncertainty while cementing enduring connections.

5. What made you choose a career in the hospitality industry?I actually studied Accountancy in school instead of hospitality, so it might come as a surprise that I’ve been in this industry for over 17 years and now I’ve been with IHG for a decade.

I practiced accountancy for two years after graduating. It was a challenging couple of years as a project accountant balancing books for a construction company that was developing two hotels in Cambodia at the time – one in Phnom Penh and one in Siam Reap. “One day I was introduced to the founder of the construc-tion company and he eventually offered me a job. I then relocated to Cambodia for three years and that marked my first venture into the hotel development industry and I’ve not looked back ever since.”

YOU NEED TO HAVE PASSION TO BE SUCCESSFUL IN THIS INDUSTRY.

“I’ve been extremely fortunate to work with very talented people who are very knowledgeable and passionate about their jobs.”

CLARENCE TAN


My boss at the time once said to me that if you want to do well in the hotel industry, it is not always about brains or luck, but about pas-sion. The moment that passion starts to fade, you’ll need to rethink about where you are . It’s been over 17 years and I still call him up for advice sometimes.

What he said is very true. The industry is very unpredictable some-times, many people come and go and you need to ask yourself what you want your legacy to be.

I’ve been really lucky to have opportunities to travel the world. I’ve spent time in New York, Los Angeles, South America, London and with IHG I’ve experienced Myanmar, Vietnam, Indonesia and Bangkok.

Eventually I hope to be able to take what I’ve learnt and give some-thing back to the next generation of hoteliers and share my experience with them.

6. How do split your time between work and family? A lot of my free time is spent with my four children (10, 9, 5 and 2 years old) and I enjoy reading books with them. One thing I’ve learnt at IHG is to have balance. I travel a lot from Monday to Thursdays, but the weekends are meant to be spent at home with the family. I’ve been based in Bangkok for some time now and while I do miss my relatives and friends in Singapore, having my children live with me in Bangkok has made my family closer than ever.

7. What kind of activities do you do with your family? We watch a lot of sports together, mostly rugby, basketball and Formula One racing.

8. What is your favorite food?I’m a true Asian so I love all things spicy, but I’ve learnt to adapt to the local tastes in any country that I’m in. Nasi Campur is one of my favourite Indonesian foods.

9. Where do you like to spend your down time?My family is my priority but I also enjoy going to church as it gives me some quiet time to think, reflect and be thankful for all that I have.

10. What is your message for the new generation of young hoteliers?There is no short cut to success. You must not be afraid to take some risks, embrace the challenges that come your way and most impor-tantly, you must not be afraid to make mistakes as mistakes give us the chance to learn and grow. If you can have this mentality, then you will have what it takes to have a future in this industry.

Hotelier Indonesia would like to thank Clarence Tan for taking the time do this interview and want to wish him the best ahead.


CLARENCE TAN

Holiday Inn Jakarta Kemayoran Executive Lounge


Holiday Inn Express Jakarta Thamrin

20 • HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com02 IHG Corporate Review 2013 IHG Corporate Review 2013 03

The IHG story

To view the interactive version

of the The IHG Story go to:

story.ihg.com

2008 Holiday Inn Club Vacations®

Announcement of the Holiday Inn Club

Vacations brand, a result of an alliance between

IHG and the family of Orange Lake Resorts,

Kemmons Wilson and the Wilson family.

1777 The story begins...

It all begins in 1777 when

William Bass opens a brewery

in Burton-on-Trent in the UK.

Bass makes its move into the

hotel industry in 1988, buying

Holiday Inn International.

The conglomerate sells Bass

Brewers and the Bass name

in 2000 and changes its name

to Six Continents PLC.

1946 InterContinental® Hotels & Resorts

The founder of Pan American

Airways has a vision to bring

high-quality hotel accommodation

to the end of every Pan Am flight

route. This leads to the first

InterContinental hotel opening

in Belém, Brazil in 1949. Bass

acquires the InterContinental

brand in 1998, adding it to our

brand portfolio.

1952 Holiday Inn®

Kemmons Wilson’s vision

of an innovative hotel brand

people could trust leads to

the first Holiday Inn opening

in Memphis, Tennessee in

1952. Bass acquires part of

the business in 1988 and the

remainder in 1990.

1965 Holidex®

Launch of HOLIDEX, the

world’s first computerised

hotel reservation system

– the first programme to

connect directly with travel

agents and airlines.

1983 Crowne Plaza® Hotels & Resorts

Launch of the Crowne Plaza brand,

focused on business travellers.

1990 Holiday Inn Express®

Launch of the

Holiday Inn Express

brand aimed at

smart travellers.

1997 Staybridge Suites®

Launch of the Staybridge Suites brand

– IHG’s extended-stay brand for

travellers who spend an extended time

away from home and prefer a warm,

home-like and community environment.

2003 Candlewood Suites®

Acquisition of the Candlewood

Suites brand – IHG’s extended-stay

brand in North America aimed at

providing guests with a relaxed,

casual and home-like environment

at a great value.

2003 InterContinental Hotels Group PLC

On 1 October 2002, Six Continents

PLC announces a proposed separation

of the Group’s hotels and soft drinks

business (to be called InterContinental

Hotels Group PLC) from the retail

business (to be called Mitchells

& Butlers plc), and the return of

£700m of capital to shareholders.

The process completes on 15 April

2003 – InterContinental Hotels Group

PLC becomes a separate company

listed on the LSE and NYSE.

2005 Britvic disposal

IHG announces the

disposal of its 100%

holding in the soft

drinks business,

Britvic plc.

2004 Hotel Indigo®

Launch of Hotel Indigo,

IHG’s boutique brand, with

the first Hotel Indigo opening

in Atlanta, US in 2004.

2006 Room to be yourself

Our employer brand

giving people Room to

be yourself is launched.

2006 IHG® Academy

Launch of IHG Academy, a

pioneering collaboration between

IHG hotels and offices and education

providers and/or community

organisations providing local

people with skills development

and employment opportunities in

IHG hotels and corporate offices.

2007 Holiday Inn Resort®

As part of the $1bn Holiday Inn

relaunch, Holiday Inn Resort,

a new sub-brand of Holiday Inn,

is developed, offering the perfect

destination for family fun

and relaxation.

2009 IHG Green Engage®

Launch of IHG Green Engage,

our online system to help us

measure, monitor, manage and

report on energy, carbon, water

and waste to develop and operate

more sustainable hotels.

2011 IHG® Shelter in a Storm Programme

Launch of the IHG Shelter in a Storm

Programme, equipping our hotels to respond

quickly and effectively in times of disaster,

providing vital assistance and shelter to the

local community and our employees.

2012 HUALUXE® Hotels and Resorts

Launch of the HUALUXE

brand, as the world’s first

international hotel brand

designed specifically to suit

the taste and sensibilities

of the Chinese guest.

2012 EVEN™ Hotels

Launch of the EVEN brand, which

meets the large and growing

demand for a hotel brand to

help wellness-minded travellers

maintain their balance on the road.

2012 London 2012 Olympic and Paralympic Games

In 2012, Holiday Inn and

Holiday Inn Express are the official

hotel provider to the London 2012

Olympic and Paralympic Games.

2013 IHG® Rewards Club

Originally launched in 1983 as Priority

Club® Rewards, our loyalty programme

is the oldest and largest in the industry.

In July 2013, we relaunched the

programme as IHG Rewards Club,

offering enhanced benefits for

members, including free internet

access across all our hotels globally.

2013 marked 10 years since InterContinental Hotels

Group PLC (IHG) became a standalone company.

Highlighted below are just some of the milestones,

achievements and innovations that have come

to define IHG and our family of brands.

HOTELIER INDONESIA | 18TH | Vol 3 | 2014 | www.hotelier-indonesia.com • 2102 IHG Corporate Review 2013 IHG Corporate Review 2013 03

The IHG story

To view the interactive version

of the The IHG Story go to:

story.ihg.com

2008 Holiday Inn Club Vacations®

Announcement of the Holiday Inn Club

Vacations brand, a result of an alliance between

IHG and the family of Orange Lake Resorts,

Kemmons Wilson and the Wilson family.

1777 The story begins...

It all begins in 1777 when

William Bass opens a brewery

in Burton-on-Trent in the UK.

Bass makes its move into the

hotel industry in 1988, buying

Holiday Inn International.

The conglomerate sells Bass

Brewers and the Bass name

in 2000 and changes its name

to Six Continents PLC.

1946 InterContinental® Hotels & Resorts

The founder of Pan American

Airways has a vision to bring

high-quality hotel accommodation

to the end of every Pan Am flight

route. This leads to the first

InterContinental hotel opening

in Belém, Brazil in 1949. Bass

acquires the InterContinental

brand in 1998, adding it to our

brand portfolio.

1952 Holiday Inn®

Kemmons Wilson’s vision

of an innovative hotel brand

people could trust leads to

the first Holiday Inn opening

in Memphis, Tennessee in

1952. Bass acquires part of

the business in 1988 and the

remainder in 1990.

1965 Holidex®

Launch of HOLIDEX, the

world’s first computerised

hotel reservation system

– the first programme to

connect directly with travel

agents and airlines.

1983 Crowne Plaza® Hotels & Resorts

Launch of the Crowne Plaza brand,

focused on business travellers.

1990 Holiday Inn Express®

Launch of the

Holiday Inn Express

brand aimed at

smart travellers.

1997 Staybridge Suites®

Launch of the Staybridge Suites brand

– IHG’s extended-stay brand for

travellers who spend an extended time

away from home and prefer a warm,

home-like and community environment.

2003 Candlewood Suites®

Acquisition of the Candlewood

Suites brand – IHG’s extended-stay

brand in North America aimed at

providing guests with a relaxed,

casual and home-like environment

at a great value.

2003 InterContinental Hotels Group PLC

On 1 October 2002, Six Continents

PLC announces a proposed separation

of the Group’s hotels and soft drinks

business (to be called InterContinental

Hotels Group PLC) from the retail

business (to be called Mitchells

& Butlers plc), and the return of

£700m of capital to shareholders.

The process completes on 15 April

2003 – InterContinental Hotels Group

PLC becomes a separate company

listed on the LSE and NYSE.

2005 Britvic disposal

IHG announces the

disposal of its 100%

holding in the soft

drinks business,

Britvic plc.

2004 Hotel Indigo®

Launch of Hotel Indigo,

IHG’s boutique brand, with

the first Hotel Indigo opening

in Atlanta, US in 2004.

2006 Room to be yourself

Our employer brand

giving people Room to

be yourself is launched.

2006 IHG® Academy

Launch of IHG Academy, a

pioneering collaboration between

IHG hotels and offices and education

providers and/or community

organisations providing local

people with skills development

and employment opportunities in

IHG hotels and corporate offices.

2007 Holiday Inn Resort®

As part of the $1bn Holiday Inn

relaunch, Holiday Inn Resort,

a new sub-brand of Holiday Inn,

is developed, offering the perfect

destination for family fun

and relaxation.

2009 IHG Green Engage®

Launch of IHG Green Engage,

our online system to help us

measure, monitor, manage and

report on energy, carbon, water

and waste to develop and operate

more sustainable hotels.

2011 IHG® Shelter in a Storm Programme

Launch of the IHG Shelter in a Storm

Programme, equipping our hotels to respond

quickly and effectively in times of disaster,

providing vital assistance and shelter to the

local community and our employees.

2012 HUALUXE® Hotels and Resorts

Launch of the HUALUXE

brand, as the world’s first

international hotel brand

designed specifically to suit

the taste and sensibilities

of the Chinese guest.

2012 EVEN™ Hotels

Launch of the EVEN brand, which

meets the large and growing

demand for a hotel brand to

help wellness-minded travellers

maintain their balance on the road.

2012 London 2012 Olympic and Paralympic Games

In 2012, Holiday Inn and

Holiday Inn Express are the official

hotel provider to the London 2012

Olympic and Paralympic Games.

2013 IHG® Rewards Club

Originally launched in 1983 as Priority

Club® Rewards, our loyalty programme

is the oldest and largest in the industry.

In July 2013, we relaunched the

programme as IHG Rewards Club,

offering enhanced benefits for

members, including free internet

access across all our hotels globally.

2013 marked 10 years since InterContinental Hotels

Group PLC (IHG) became a standalone company.

Highlighted below are just some of the milestones,

achievements and innovations that have come

to define IHG and our family of brands.


HOT | brand



Holiday Inn Express Jakarta Thamrin


HOT | brandHOT | brand


Holiday Inn Express Bali Kuta Square

hotelier indonesia 18th edition

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