GLOBAL UPDATE
“ WE HAVE TO BE PREPARED TO
CHALLENGE
OURSELVES
WHERE APPROPRIATE TO BE
FLEXIBLE IN WAYS WE CAN BE ABOUT COMPROMISING WHAT THE BRAND STANDS FOR .”
– ALLEN SMITH
Extending from that is the need for us to always be focused on delivering exceptional value to hotel guests and property owners . In my mind , if we are in a position to do that , we will be in a position to generate long-term sustainable growth . I say sustainable growth because I think of that as growth more within our control because we will have met the needs of these important constituencies , and they will want to do more business with us . Clearly there is a mandate for growth , but within that context . H : What does this change at the top signal to the industry ?
AS : There is a very keen awareness among the shareholders of that which makes Four Seasons strong and a very genuine commitment that those attributes are protected and grown . There is a clear desire for a purposeful and thoughtful approach to growth that isn ’ t driven by any absolute numbers . There is no thought that we have to double our unit count in a fixed period . We want growth in keeping with the quality of the brand and that continues to strengthen its market position . H : Some industry experts have said it is hard for Four Seasons owners to make money . How would you respond ?
AS : We have to be always mindful of the fact that ultimately our owners are in this to make a rate of return . We have to be prepared to challenge ourselves where appropriate to be flexible in ways we can be without compromising what the brand stands for . We have examples of where we have worked very constructively with owners to find solutions — both capital and operating — that have addressed their needs . But there is more that we can do . I think there is a degree to which we can introduce more of an asset-management mentality to some of what we do , but that is in the context of this being one of the leading luxury hotel companies in the world , and we will continue to focus on being that . H : Four Seasons has 60 deals under development . Based on market conditions , how do you get more of those deals to the finish line ?
AS : A lot has to do with human resources and having people on the ground engaged in doing these deals , and then having the capability to run these properties . We are blessed with a deep bench of talent and have a lot of Four Seasons-ready GMs . That is very important . The organic growth that we will generate — there are some limitations on how fast we drive that . Now I am talking about the literal real estate development cycle . There will be opportunities to evaluate conversions to Four Seasons where there is physical product we can bring up to standard . There are a variety of tactics . H : Will Four Seasons likely consider a brand extension ?
AS : I don ’ t think right now it is a key focus as we don ’ t lack for opportunities with what is our core strength . Having said that , any company needs to be prepared to be innovative and open-minded and stay very close to the markets and its customers , and how it can continue to serve them in different ways . There has been nothing ruled out in that regard , nor has there been anything ruled in . H : Is the endgame an IPO for Four Seasons ? AS : There has been no discussion with me about that , and it is not in and of itself an objective I have been told I need to achieve . Any time a company is private there is always speculation about when it will go public , but it is not part of what I am focused on . The endgame for me is to focus on continuing to strengthen the brand and grow the company .
www . hotelsmag . com December 2013 HOTELS 11