COVER STORY
operate in the ether , but even they run into challenges . The pandemic touched everyone and it hit exponentially hard on luxury hotels . It forced Peninsula to close some of its hotels in full , though some , like its flagship Hong Kong property , remained open , but its demand mix changed almost overnight into one catering to only locals , which transmogrified into staycations . Borer said The Peninsula Hong Kong was able to get to around 40 % occupancy during the throes of the pandemic , but did drop rates .
This theme applied through the portfolio , like at The Peninsula Tokyo , which was forced to close on two separate occasions and then began to cater mainly to a Japanese clientele .
“ When the pandemic ended , we saw massive demand from international travelers . And what we discovered is the need for comfort and safe haven ,” Borer
The lobby of The Peninsula Hong Kong was originally conceived to welcome guests arriving from Europe via train .
said . He cited the Middle East as one feeder market where demand patterns have shifted . In the summer , to beat the heat , Middle Eastern travelers typically take flight to destinations such as the U . K ., France or the U . S .
“ Now ,” as Borer pointed out , “ they ' ve changed the school year and have two breaks , so we ' re actually seeing a very nice increase of that region into Asia .”
The pandemic , however , did not give Peninsula cover to cut back on the services and amenities the brand is known for . In fact , as Borer pointed out , those services and amenities were increased . “ Now , with the increase in demand , it ’ s allowed us to raise rates and provide a true five-star experience ,” he said .
More emphatically , Borer isn ’ t coy about what it means to be a Peninsula hotel and its place within the competitive landscape . “ We are a small company . We can ' t afford to become mediocre and we don ' t have a right to exist as a mediocre company ,” he said .
Like all segments , the luxury market is not immune to the labor crunch . Moreover , frontline employees in a luxury environment have a set of service points and mannerisms to ply that are distinct from other types of hotels . In Peninsula ’ s Tokyo property , for example , most of the room attendants — and this isn ’ t dissimilar to any hotel in the city — are housewives who are employed not by Peninsula , but by outside agencies . They work a few hours per day or per week ; whatever suits their schedules . Post COVID , it ’ s been difficult to get them to return , Borer said .
The Peninsula London has a different problem : too many applicants to choose from . According to Borer , there were 31,000 applications for the 600 positions to fill .
WE ARE ALWAYS LOOKING INTO THE LONG TERM . YOU CAN ’ T INVEST IN PROJECTS LIKE THESE WITH A SHORT-TERM HORIZON
– CLEMENT KWOK , MANAGING DIRECTOR AND CEO , THE HONGKONG AND SHANGHAI HOTELS , LIMITED
58 hotelsmag . com September 2023