THE INTERVIEW : JENNIFER FOX
In addition to The Plaza , Fox would like to see a Fairmontbranded hotel in
New York City .
travel as well out of China is huge for the rest of the world , so we need to have a strong presence in China .
Also , we have a limited footprint in Europe . Europe ’ s a little more challenging to get into because of the cost of entry and the availability of product . Still , there are opportunities that exist .
The Savoy in London is among Fairmont ’ s most iconic properties .
We ’ ll have a big focus around Europe as well .
H : Are there particular markets in Europe that are top priorities ?
JF : We ’ re in London with The Savoy , but we ’ d like to also be in London with the Fairmont brand . We ’ d like to be in Paris , Rome , Milan , some parts of Germany . We ’ re already in Hamburg , but we would like to be in Frankfurt and Berlin . We just signed a wonderful deal in Moscow . We ’ d like to be in Barcelona . It ’ s really sort of the key markets . We ’ re going to be focusing very hard on trying to fill some of those gaps .
We also have a few gaps in North America — Florida , we ’ d like a little more in California . We also have The Plaza in New York , but we ’ d still like to have a Fairmont-branded hotel in New York .
H : What is your read on the current climate for getting deals done ?
JF : We ’ ve had three very rough years in the hotel business in terms of development , getting deals done and getting deals funded — 2008 , 2009 and 2010 were pretty tough . 2011 started to see a little bit of a recovery .
I don ’ t think we ’ re out of the woods yet . I still think banks will pick and choose what deals they fund , so I think it ’ s very important that we look at the right deals . Fairmont ’ s position is that we are a management company , but if there was the right strategic opportunity , we would look to ways that we could perhaps JV or key money or some way to invest in the right strategic assets . We ’ re not opposed to that strategy . So I think while we ’ re not out of the woods yet , 2012 will be more positive . I think it will only be more positive as we go into 2013 .
Europe has been a challenge in terms of availability of deals , but I think when there is a downturn , a lot of the independent hotels in Europe realize that if you have a brand , it gives you more strength to be able to drive the profitability of the business . So I think we ’ ll start to see opportunities pop up in Europe where people are looking for a strong brand to manage their hotels for them and to provide a distribution system .
H : What do you see as the biggest challenges as Fairmont enters new markets ?
JF : It ’ s really important to make sure when we do enter a market we enter the right market in the right location with the right product and the right partners . There ’ s always a risk of growth for growth ’ s sake , that a company would take perhaps a deal that is not something that meets their core strategy . So I think the key for us is going to be ensuring that we do deliver on all of those things — that we go into a market knowing that we ’ re going in with the right product and the right property in the right place . That will be very much a focus , which then of course does limit some of the deals you might be able to do .
In terms of product , we have a lot of classically cultural , historic hotels . That ’ s important , and we like those properties . But also , if you look at some of our newer hotels , they ’ re architecturally impressive , they ’ re contemporary , and I believe a brand
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