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Martin Smura
Martin Smura was running through an airport while doing this interview . Smura , CEO of Geneva-based Kempinski Hotels , is “ very , very busy ” trying to save contracts coming up for renewal and enticing hotels away from competitors in markets where he has lost crucial deals . In early November he had 13 hotels on exit , accounting for 20 % of the company ’ s fee base . At the time , he said the best-case scenario was saving eight .
The respected industry leader , who left Dorint GmbH in July , is reinvigorating a European luxury legend whose reputation has been tarnished over the past seven years due to in-house issues .
“ From the guest ’ s point of view , the brand perception is very good ,” Smura says . And investors ? “ They perceive us as a dying animal because we didn ’ t show any growth the last three years or we couldn ’ t grow over and above those hotels we had to exit . We have to work on that image .”
He points to his experience on the investor side , which yielded an abundant network . “ We will gear up in terms of hotel investment ourselves because we already wholly own one hotel and it ’ s quite a good business for us ,” he adds .
The company is partnering with Duesseldorf-based 12.18 . Group to launch a luxury lifestyle brand extension called 7Pines Kempinski ; that starts with rebranding one successful casual luxury hotel in Ibiza and another property in New York City . The goal is to create some 20 7Pines Kempinski properties by 2022 , with 12.18 investing € 500 million ( US $ 549 million ) in capital .
With about 80 hotels systemwide , nine more Kempinski hotels ( 1,961 rooms ) are opening through 2020 , including in Tel Aviv , Tblisi , Bangkok and Cuba ; another seven hotels ( 2,404 rooms ) are under construction . The majority Bahrainiowned group also is developing the Shaza brand in the Arabian Gulf and Nuo in China . But Smura is not positioning Kempinski for sale . The family of Bahrain ’ s prime minister , which holds 70 % of shares , are prudent investors , he says , and “ they really want to have quality growth and top-end positioning in the
luxury segment .”
Instead , the company is focusing on creating value in several areas : introducing quality-control services among members of the Global Hotel Alliance ( GHA ), of which Kempinski is majority shareholder ; appointing German Formula One racing
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champ Nico Rosberg as a brand ambassador ; and investing in real estate ( the company has hired a chief development officer ).
“ We ( GHA ) are now number five in the world with 15 million loyalty members and we are about to sign a major deal , which would elevate us above 23 million ,” Smura says . “ We would be the only business available for smaller luxury companies to have their own sweet spot in loyalty with a meaningful redemption program ... I really believe that we can make a difference there .”
— JEFF WEINSTEIN
14 hotelsmag . com January / February 2020