GLOBAL UPDATE : PROFILE
Hotelier ’ s view from Australia
The newly appointed head of Stamford hotels talks about market conditions and future plans .
By Jeff Weinstein , editor in chief
While encouraged by improving economic data emerging from markets like the United States , Graeme Goldberg , the newly appointed managing director of Stamford Hotels and Resorts , Sydney , is among many hoteliers battling to maintain occupancy in the face of a cripplingly high Australian dollar .
Goldberg , 61 — a 40-year industry veteran — says surging bond yields and equity market performances in the United States have weakened the Australian dollar to the point where it buys around 1.4 of its U . S . counterpart . And that , says Goldberg , is a doubleedged sword for the hotel industry .
“ Australians are heading overseas in record numbers , and our inbound figures — even from traditional markets like Japan , the U . S . and Europe — are seriously down ,” Goldberg says . “ Australian Bureau of Statistics figures revealed there were just 432,200 international visitors to Australia in September 2011 compared with 790,600 cashed-up locals jetting off overseas .”
While Goldberg says the corporate market remains strong because Australia — with its vast mineral resources — has been cocooned from the world ’ s financial problems , he looks forward to growth in inbound tourism . “ Evaluating the Australian market is further complicated by the fact that following several interest rate hikes last year , Australians have seriously put the brakes on spending ,” he says .
What hoteliers really need , Goldberg says , is a crystal ball to predict where the Australia and New Zealand markets are heading . “ Retailers have been caught on the back foot by the persistent weakness of spending despite the solid economy , robust income growth and a jobless rate hovering at 5 %,” he notes .
Australian hotelier to the stars , Graeme Goldberg
“ Evaluating the Australian market is further complicated by the fact that following several interest rate hikes last year , Australians have seriously put the brakes on spending .”
– Graeme Goldberg , managing director , Stamford Hotels and Resorts
Goldberg also points to Queensland ( the playground state of Australia ), which has been decimated of late due to horrendous flooding that also has affected parts of New South Wales . On a more positive note , Goldberg adds that the New Zealand market is recovering from the Christchurch earthquakes .
One advantage Goldberg tries to use to overcome the economic headwinds is his ongoing relationship with celebrities coming to the market . As a former general manager of Stamford hotels such as the Ritz-Carlton in Sydney , he has attracted a number of high-profile clients . “ When you have someone like Neil Diamond or John Travolta in the hotel , and he is down in the restaurant having breakfast , other guests see him and think , ‘ Well , I ’ m in the right place .’ It ’ s a 5-star stamp of approval ,” says Goldberg , who has also looked after U . S . President Bill Clinton on several occasions during his career .
On the lookout Stamford Hotels and Resorts was formed in 1995 by Stamford Land Corp . Ltd ., one of Singapore ’ s best-known public companies under the watchful eye of Chairman C . K . Ow .
Stamford Land has established a significant geographic presence across Australia with 5-star hotels in Brisbane , Sydney , Melbourne and Adelaide as well as Auckland , New Zealand . The group is the largest owner / operator of premium hotels in Australia and New Zealand with eight hotels , nearly 2,100 rooms and 2,200 employees , not to mention residential assets .
The company is not looking to develop , but is constantly on the lookout to acquire , renovate and reflag 4.5- to 5-star properties . In Adelaide , Stamford plans to spend A $ 20 million ( US $ 20.8 million ) on renovations of the Stamford Plaza and Stamford Grand . In excess of A $ 10 million ( US $ 10.4 million ) has been spent on its Brisbane hotel , and a multimillion dollar total refit was recently completed in Auckland .
“ Stamford remains positive ,” Goldberg says . “ However , the modern trend is that these hotels are selling above book price for conversion into apartments . I feel that this is a major problem , for if these conversions keep happening major cities in Australia will basically run out of rooms .”
14 HOTELS May 2012 www . hotelsmag . com