Interview with Willie Ooi, Executive Vice-President of Gloria Hotels & Resorts
Having been a hotelier for over 30 years, Willie Ooi, Executive Vice-President of Gloria Hotels & Resorts can rightfully be called an industry veteran. After a long period with the Shangri-la Group and extended stints as General Manager for the Hotel Equatorial and Pan Pacific Groups in China and Malaysia, Ooi joined the Beijing-based hotel management group Gloria Hotels & Resorts in 2002. A Malaysian by birth but a cosmopolitan at heart, Ooi has left an indelible mark on the company as well as on the hospitality landscape in China at large. Tourism – Insider recently spoke with Willie Ooi about his views on the industry in China and Gloria Hotels & Resorts’ current expansion.
Tourism-Insider:How do you view the Chinese hotel industry in 2012 as compared to 2002 when you first joined the group?
Willie Ooi: It is still a growing industry. There is still a large gap to fill in many third and fourth-tier cities, but the market is fast maturing in first and second-tier cities. This is keeping in mind that even third and fourth-tier cities can have a population of anywhere between two and four million people.
One of the biggest challenges for this industry is the lack of human resources. It is such an irony given China’s population of 1.4 billion citizens. However, with the country’s one-child policy, practically no parents wish to see their only off-spring work in the hotel industry.
Coupled with the more attractive salaries and benefits of other industries, the hotel industry has become less attractive than what it was 10 years ago. This puts the industry, which is growing fast in a really tough spot.
In which Chinese regions are Gloria Hotels & Resorts expanding at the moment? In which regions do you see the largest potential for your group?
As a group, we are expanding all over China from the North East to as far south as the idyllic island of Hainan. We also anticipate expansion in the provinces of Shandong, Anhui, Jiangsu and Hunan.
What is the strength of your current portfolio of brands and where do you see the strongest future growth for your new brands, such as your business brand GtEL?
Our current strength lies in our 5- and 4-star hotel brands, namely the Gloria Grand Hotels and Gloria Plaza Hotels respectively.
However, we just introduced our new 3-star business brand “GtEL” into the marketplace. We see a huge potential in this value-for-money brand given the fast-growing affluence of Chinese consumers. For years, domestic travelers have been staying mainly at economy hotels due to the convenience they bring to travelers. But with a growing affluent society and a younger generation of travelers, we are poised to tap into this large market potential.
Our “GtEL” brand is very much geared towards convenience in a business-focused hotel, with services like complimentary WI-FI in our lobby, a Business Center and Lounge; a “No Surprise” guestroom set-up with powerful hot and cold water showers; comfy bedding and pillows; coffee and tea-making facilities and an in-room safe deposit box.
As an additional touch, all “GtELs” will feature a “Members Lounge” as well as “Shower Rooms” to cater to late departures. We are convinced that this brand will really add a new dimension to the mid-market hotel segment here in China.
2012 marks the 20th anniversary of Gloria Hotels & Resorts. What is your perspective on Gloria’s success story over the past 20 years?
Basically, Gloria Hotels & Resorts started off as a hotel management company back in 1992 by managing its own properties for the first 12 to 15 years. Following that, there was a transition period for a few years during which we did not grow in terms of adding new hotels.
Over the last two years, after a much-needed revamp of our management team and with additional capital injection, we embarked on a more aggressive expansion journey. Since then, we have been growing at a slow but steady pace, moving from a total of 13 to 19 hotels today. However, slated to open over the next 12 to 18 months are another 38 new properties. We are definitely on schedule to have a total of 50 – 70 hotels in our stable within the next three years.
As we continue to grow at such a rapid pace, I anticipate two of our biggest challenges will be in talent management and energy costs.
The Chinese outbound tourism market is growing at a rapid pace. Does your group have any plans to expand overseas?
Anticipating the growing outbound travel trends from China, we have already had in place a strategic sales and marketing alliance with Warwick International Hotels for a number of years now.
As a hotel management and investment company, we are always looking for the right opportunities both domestically and overseas. However, given the robust hospitality industry growth in China today, our primary focus is still on the domestic market. I anticipate our initial foray into the overseas markets would take the form of a management mode for suitable hotels both in Asia and Europe, which are presently catering to Chinese travelers.
Thank you for your time and statements Mr. Ooi
In the next issue of our China Feature: Gloria Hotels & Resorts we report on the Gloria Plaza Hotel Suzhou and the Gloria Grand Hotel Wuxi and the burgeoning MICE region of China’s powerhouse Jiangsu Province.
