GLOBAL UPDATE : PROFILE
Niche opportunity
A renovated suite at Hotel Le Bristol , Paris
The ultra-luxury Oetker Collection wants to add 10 to 15 hotels over the next decade .
By Jeff Weinstein , editor in chief
Perhaps it should serve as a metaphor that after spending 14 years with the ultra-luxury Oetker Collection in Europe , CEO Frank Marrenbach this past summer finally jumped into the ocean for a swim at the company ’ s iconic Hotel du Cap-Eden- Roc , Cap d ’ Antibes , on the French Rivera ’ s Cote d ’ Azur . Previously , Marrenbach didn ’ t think it would be proper as CEO to do such a thing , and until a few years ago , Marrenbach and the owning Oetker family really didn ’ t consider making a splash with a serious expansion of its portfolio . Not that they are planning to jump into the deep end now in their very narrow hotel niche , but Marrenbach has made it clear the group wants to grow the collection more aggressively — by 10 to 15 hotels — over the next decade .
“ If you remain so individual that you are lonely it puts you at risk ,” Marrenbach says . “ Big chains will
dominate , but they leave nice niches . … This is where we come in .”
In addition to the 41-villa Palais Namaskar , set to open in Marrakech in mid-2012 , and a 250-room Le Bristol in Abu Dhabi , which Emirate ’ s National Corporation for Tourism and Hotels plans to open in 2014 , Marrenbach says he is looking elsewhere in Europe and the Middle East . The Collection wants to get into cities like London , Milan and Istanbul , and countries like Oman and Qatar . “ We also have a second opportunity on Saadiyat Island in Abu Dhabi — a new development where we might build a full-fledged resort hotel ,” Marrenbach adds .
The one exception to the EMEA focus is New York City . “ The Americas and the U . S . represent 20 % of our current market . As a feeder market , it is of the greatest relevance and as a destination a very important place to be ,” Marrenbach says . “ We are in talks and have engaged someone who is looking for us .”
New York City also is the one exception where the Oetkers might be willing to put in substantial capital — otherwise , the company is looking for management opportunities with sliver equity injections . “ The development of the company is a costly affair , and owning real estate would make it even heavier ,” Marrenbach says . “ We would differentiate in key cities and be prepared to contribute financially .”
While expansion is a priority , the Oetker family continues to invest significantly in its current assets , having spent € 100 million ( US $ 134 million ) at Hotel Le Bristol in Paris since 2009 , and recently completing a total renovation of Hotel du Cap .
The big investment in Paris , where the Oetkers are now the only European family still operating a palace hotel in the city , was deemed necessary with all the new luxury players there . “ We can see we are not affected and see the market getting bigger ,” Marrenbach says .
With Paris and the rest of the portfolio refreshed , the focus turns to growth . “ We wanted to grow the company and offer opportunities for the owners to benefit from the huge investments they have made over time translated into a new business model , and create value for owners , employees and partners ,” Marrenbach says . “ When a door opens and you see a market environment that allows you to fill a gap , you should do it .”
22 HOTELS January / February 2012 www . hotelsmag . com