Two-star Zest hotels could be Australia-bound
Hong Kong-based Swiss-Belhotel Group, which operates 140 hotels globally, is looking to expand further into Australia and may introduce its new two-star brand, Zest, to capture budget guests.
Swiss-Belhotel owner and chairman Gavin Faull has a simple method of choosing the next hotel location for his growing empire. He consults the maps in the back pages of the Emirates airline magazine — figuring if airlines are increasing capacity to a city it will lead to more demand for accommodation.
Swiss-Belhotel runs hotels in Sydney and Brisbane and Faull, a New Zealander, says he is looking to further expand here and was in talks to acquire the management rights over two hotels in Melbourne.
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“There is always a plan to expand. I am looking in particular in Melbourne and maybe another one in Sydney,” says Faull, a chartered accountant.
“I am keen to grow in Australia. I am looking for hotel development partners in Sydney, Brisbane, Melbourne, Perth and Cairns. Australia has a huge potential (but) the wages costs in Australia are a challenge — labour costs are an issue.
“(But) wages are getting expensive everywhere in the world, even China.”
Of the 140 hotels under management, the group fully owns one hotel, the 80-room Swiss-Belresort Hotel Coronet Peak in New Zealand’s alpine capital of Queenstown, which Faull says is the group’s best financial performer.
Also close to home, Swiss-Belhotel operates 10 hotels in Bali, ranging from two-star to 4.5-star properties that are popular with Australian tourists.
I am looking for hotel development partners in Sydney, Brisbane, Melbourne, Perth and Cairns.
“The Middle East is also developing nicely for us. We have just taken over four hotels in Aqaba (near the historic city of Petra).
“We are looking at Italy and Greece at the moment, there are good deals for hotel investors to buy hotels.”
Swiss-Belhotel also wants to introduce a new two- to three-star brand, Zest Hotels, to Australia with plans to position Zest Hotels on the outskirts of Australian cities, with Mr Faull saying that he is talking to several investors.
Faull, who started his hotel career in 1973 with the venerable The Peninsula Hotel in Hong Kong, bought the Swiss-Belhotel in 2000 and turned it into a hotel company with 12 brands.
Swiss-Belhotel differed from the other major hotel chains in that “you can meet the president any time you like — we are very flexible”, Faull says.
This article originally appeared on www.theaustralian.com.au/property.
