10 things every buyer ought to know about ... Leading Hotels of the World

01-Jun-08

Christy Wyatt caught up with the luxury hotel network's COO during May's ATM in Dubai: Celebrating its 80th anniversary this year, the Leading Hotels of the World (LHW) is still enjoying success, despite the economic downturn. According to its COO, Welf Ebeling: "Today, nobody has not been affected. However, we are in the most resilient demographic structure."

"The US business has shrunk, but we have seen growth in EMEA business," and the company has just launched its third guide showcasing hotels favoured by Arab customers.

The Gulf Cooperation Council (GCC) area has shown a 732% increase in business in the last year, Ebeling says.

The Dubai office opened just three years ago, starting from a low base, he admits, but, he says: "There was a breakthrough in 2006-2007. We saw a significant increase."

1. Vetting process: Last year the hotel network received 1,400 applications, but took on only 40 and parted company with 16 hotels.

"We have a very strict selection process," says Ebeling. "Each property must be vetted and undergo inspection."

As well as growing its portfolio, LHW has launched recent brand extensions, such as Leading Spas of the World.

"The incredible thing is having a brand that is continuously evolving. It plays to my personal liking of entrepreneurialism - finding new opportunities to expand the brand," he says.

2. Hotel development: In line with this, LHW is also now involved in hotel development: "We are in discussion with hotels that have development licences," Ebeling says. These include the Ten Trinity Square project, London, set to open in autumn 2011. www.10trinity.com.

3. Trends: As with many travel companies, LHW is finding authenticity a key trend among its guests.

"We are dealing with affluent customers, the top layer of the travel community," says Ebeling. "For them, one of the most important aspects is a sense of place." With limited leisure time, client's basic requirements must be supplemented by a unique experience, he says.

This philosophy appears to have met with client approval. LHW's global ADR for year ending in April was $494 (£251), compared to $459 (£234) for the same period ending in '07.

Commenting on 2009, Ebeling says: "There might be fluctuations due to currency exchange as we report in dollars, but it will probably remain stable. Even in the luxury segment we will see, for the year, a downturn in business, but I do not think we will see a drop in room rate. The upscale market will remain relatively flat."

While LHW may see a drop in certain regional markets, he says, increasing business from new markets will balance the overall figures.

4. Less corporate, more leisure guests: Previously, LHW's portfolio comprised 65% corporate, 35% leisure hotels. Now, the balance has moved significantly, Ebeling says, with leisure properties making up to 48% of the business.

5. New markets: "We are concentrating on new markets," says Ebeling. "Eastern Europe, for instance. We have seen significant business out of Russia and Ukraine. India and South America are also important markets." He also expects to see "an increase in British domestic travel", with LHW likely to see a 15% drop in business out of the UK for 2008.

6. Bookings: Around 70 per cent of LHW bookings are made through travel agents."Luxury travel agents are important to LHW for the volume of business they deliver to our members. In addition, their clients are the ones who book high rated rooms and suites," he says.

In turn, agents can enjoy LHW's assistance in offering their clients VIP amenities, ability to clear space for sold out dates, commission tracking and so on.

7. Commission: LHW offers increased commission levels during certain periods to stimulate demand and has confidential agreements with top clients (commissions are paid by the member hotel, in most cases at 10 per cent).

8. Number of hotels: Nearly 450 members in 80 countries. Its USP and trademark is, according to Ebeling: "Top locations and authentic individuality. We always look for uniqueness."

9. History: Launched in 1928 as a referral association among a small group of elite European and Egyptian hoteliers. Now a recognised international name, the New York-based luxury hospitality organisation has a network of 25 regional offices in key cities around the world. The company's first brand extension, The Leading Small Hotels of the World, launched in 1999. In 2005, Leading Spas of the World, its global evaluation and certification programme for the spa industry, was introduced.

10. Contact: While the online booking engine www.luxres.com does not currently accommodate travel agents, LHW is exploring options for the future.

www.lhw.com

WELF J. EBELING, Executive Vice President & Chief Operating Officer, the Leading Hotels of the World

BIOGRAPHY

Ebeling has held his current position in the company since 2000. Before this he was a board member for nearly 10 years. "When I left operational hotel management, I made my hobby my profession."

He has worked in luxury hotel management in Asia and Hong Kong including at The Regent Hotel, The Mandarin Hotel Hong Kong, The Regent Hotel Kuala Lumpur and The Royal Lancaster Hotel London.