With such a huge portfolio of diverse brands, how does RHR maintain brand integrity?
We have a solid 20 per cent growth, all portfolio-wise, in the first quarter and it’s coming from two major things: all our hotels in all sectors have very clear market segmentation, leading people to trust the RHR brands; and we have been able to utilise our systems very well.
Diverse brands enable us to capture a much bigger segment of the market, but we also understand that it’s a big responsibility to make sure that all these brands are distinct (from one another) and offer great value, whatever price range one chooses – be it the affordable yet quality Go Hotels and Go Plus Hotels, to the midscale Summit and upscale Grand Summit. Fili Hotel is the only fully Filipino five-star brand, and it spells luxury and opulence. Ultra-luxe Nustar Hotel will be launched in May. Then we have Dusit Thani Mactan in Cebu, and in Ortigas, we have The Westin Manila, Crowne Plaza Manila Galleria, and Holiday Inn and Suites Manila Galleria.
The basic promise across the brands is that you will always get strong internet (connection), a great sense of security and privacy, and attention to detail.
You mentioned utilising systems well; could you elaborate on that?
Technology in the right hands is very powerful. You can look at a large amount of data in a short period of time. Tech also enables you to set price points quickly… I think these are some of the strengths you can leverage. Our systems have key factors: app and website, loyalty programme, and revenue management.
Guests are using the mobile app and website more and more to book, which increases our traction. We make sure our mobile app and website are easy to use for exploring our home-grown hotels, checking room availability and exclusive offers, seamless booking and payment, using Go Rewards points, faster check-in, etc.
RHR has leveraged Go Rewards, a massive retail loyalty programme with 10 million members, of which almost 10 per cent are in RHR hotels. It’s a very strong tool in our portfolio of hotels. We made sure Go Rewards is digital, so users can view their points earnings, current balance, and redeem points in real time; it’s the loyalty programme of the JG Summit conglomerate, which includes RHR, Robinsons Land, Cebu Pacific, Robinsons malls, and other retail brands.
As for revenue management systems, we make sure to look at trends, current event dates, and match the demand and supply accurately, ensuring we balance our rates in quick response to the market. Because of this, we are able to deliver the yield.
We ensure that our manpower talent matches the capability of the systems and rules, and we have strong corporate oversight into revenue management. I personally foresee how the trends are developing and make sure we optimise the systems and software.
How does RHR decide where to build hotels?
We always opt for mixed-use unless it is a resort location as it brings great value to all stakeholders. For example, we have Crowne Plaza Manila Galleria next to Robinson’s Mall, Westin Manila next to Westin Residences, and Go Hotel in Ortigas next to offices. We firmly believe in mixed-use.
We will soon open Fili Hotel in Bridgetowne, a beautiful town in Metro Manila. It’s not just a hotel, but an integrated destination that is part of our real estate firm, Robinsons Land. Opposite it is a high-end mall that is already open, and we will also have a premium Robinsons Mall. (Additionally), we are entering joint ventures with Hong Kong Land for residential developments and with Shangri-La for residences and office spaces.
Our group’s vision has always been to provide great accessibility and comfort to all Filipinos. That’s why RHR has expanded into many unconventional locations. The majority of big groups and international brands stick to Manila, Cebu, and Boracay, but we (have ventured) from Tuguegarao in northern Luzon to GenSan in Mindanao. The Gokongwei group believes that Filipinos should have a great life and enjoy life wherever they are. So, we continue to expand into new, vibrant locations, ensuring that true Filipino hospitality can be experienced by travellers everywhere.
Why is RHR investing more in home-grown luxury and ultra-luxe hotels in recent years?
We believe in the overall promise of tourism and aim to contribute to elevating luxury in the Philippines. We also believe in the potential of Cebu and metro Manila: The Nustar Resort and Casino in Cebu City already has the 379-key Fili Hotel, which opened three years ago. In early May, the ultra-luxe NuStar will be launched, followed by the upscale Grand Summit in a few years. Fili Hotel Bridgetown is set to be completed in 2026.
Additionally, a Grand Summit Panglao will be developed in Bohol, and by next year, RHR will manage 20 luxury villas in General Luna, Siargao. At the Grand Summit in GenSan, the best compliment we receive is that guests no longer need to travel to a hotel in metro Manila, as they experience the same luxury in a setting similar to Manila. A Grand Summit is also planned for Dagupan, Pangasinan.
Where does RHR go from here?
We will continue managing hotels and are also offering full franchise opportunities. We will keep doing so if we find the right partners. We already manage a hotel in Lanang, Davao, and the villas in Siargao will also be managed by us.
We are also focusing on sustainability. For instance, last year we opened an in-house facility for reusable water bottles, which allowed our hotels in Ortigas – The Westin Manila, Crowne Plaza Manila Galleria, and Holiday Inn and Suites Manila Galleria – to stop using single-use plastic bottles.
I want to create more synergy within our hotels, such as in procurement and using manpower and talent resources; we also aim for synergy between our local and international brands and within the Gokongwei Group (JG Summit), which is so large it employs 17,000 people.
As part of our five-year focus, we are committed to growing our talent. In the next two and a half years, we will add 1,000 more keys to our portfolio and are aiming for a 15 per cent growth over the next five years.
To maintain consistency in our service standards, we are investing in talent through the RHR Academy, which provides nearly four hours of training for every employee every month. We also offer training for our supervisors and managers, ensuring that all front-liners receive strong on-the-job training.
Article source: TTG Asia. by Rosa Ocampo