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SilverNeedle takes over Constellation – big plans are Next

Constellation Hotels was officially re-launched under the SilverNeedle Hospitality corporate brand this week.

The re-launch follows the recent acquisition of the Australian hotel company by SilverNeedle Hospitality. The acquisition portfolio includes over 60 hotels, resorts and apartments in Australia and New Zealand under the Grand Chifley Hotels, Chifley Hotels, Australis Hotels and Resorts, Country Comfort Hotels and Motels and Sundowner Motor Inns brands.

SilverNeedle Hospitality is an intergrated management, development and investment company focusing on mid-upper scale properties in key destinations across Asia. Headquartered in Singapore the company has regional offices in Bangkok, Mumbai and Sydney.

With significant plans to shake up the hotel industry by offering a new highly efficient urban hotel brand – Next Hotels, SilverNeedle Hospitality initiated its growth and expansion plans by purchasing Constellation Hotels. Bill Black, president of SilverNeedle Hospitality says the name change is an important step for the company as it consolidates its position as a leading hospitality brand across the Asia Pacific region.

“We are very excited about the acquisition with Constellation and we think it’s the perfect marriage. Talking to all the managers about the company’s values and what Constellation has developed and how SilverNeedle wants to operate is very much in sync,” he said.

“The opportunity to acquire Constellation Hotels has given us a great platform to launch our own new brand, Next Hotels and Resorts. Constellation with its 25 years of operating expertise, know-how and insights gained in the mature tourism market of Australia will be of great benefit to our new company,” said Mr Black.

With the hotel sector across the country experiencing a shortage in the four and four and a half star market, Mr Black aims to increase the company’s 4000 room footprint to 6000 rooms in Australia over the next five years.

“The Next Hotels is a brand we are creating and basically, as the name clearly demonstrates, its really about the acknowledgment of the next generation of travellers that is emerging very clearly in a global basis and even more so in Asia where there is an emerging middle class,” he said. “The profusion of budget carriers has opened up travel opportunities to a huge market that previously didn’t think about travel. And that’s been addressed immediately at the budget hotel level which has seen a huge growth. Where we are positioning for Next Hotels is really in the upper mid scale level where it’s not the five star luxury but really focuses on the aspirations and needs of the current distant traveller which is all about connectivity. The traveller today is looking for an experience.”

The Next Hotel model is based on a 100 to 250 room hotel for business travellers that offers a combination of service and self-service. The model replaces a number of elements from a traditional hotel set up, such as multiple restaurants and large banqueting facilities, with neighbourhood restaurants that are run by local vendors. The strategy will not only engage the local community but also aims to commercialise public areas within the hotel says Mr Black.

It also offers the provision of utilities and services at a lower unit cost by leveraging the expertise in technology and energy of its parent company.

AN34 - Spotlight - Bill Black“Our hotels will go through a process of making sure that the product and offerings is something the majority of people need and will use,” says Mr Black. “Our Next Hotels will not have three or four restaurants; we look at food and beverage as providing an opportunity to try local cuisine. We will outsource food and beverage to a degree. Where you have an existing standing restaurant in that location we want to bring that operator into the property so that the guests get that authentic experience but also will bring the local people into the hotel,” he said.

It is about time and efficiency explains Mr Black.

“This really comes from the Asian experience of where there is an expectation of service and at the same time where time is important you want to be able to fix something up yourself and move quickly through and go onto getting your business done,” he said.

The company is hoping to announce its first hotel to the brand early next year with some Constellation Hotels also possibly being transformed into Next Hotels.

“Generally we will continue the brand that Constellation has developed and manage those and grow those. If we have an opportunity and it’s the right opportunity to put a Next Hotel in Australia we will certainly do that. There may be an opportunity to be able to do that hopefully sooner than later,” Mr Black added.

Australian Tourism Export Council managing director, Felicia Mariani said SilverNeedle Hospitality was making an important contribution to growing Australia’s tourism infrastructure.

“In order to achieve the tourism industry’s 2020 stretch potentials we need to secure an additional 40,000-70,000 rooms across Australia. The real challenge will be in attracting investment in accommodation infrastructure so ATEC welcomes SilverNeedle Hospitality’s initiative,” Ms Mariani said.

SilverNeedle Hospitality is a solely owned subsidiary of Nadathur Group, which is a family-backed private investment firm of N S Raghavan, co-founder Infosys Technologies, a US$35 billion market cap NASDAQ-listed company.

By Leah Odgers

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