News for the Hospitality Executive
Kempinski Residences, Led by Jean-Claude Bailly,
Showing Signifcant Growth in Just Two Years
by Barry Napier, September 2008
Kempinski Hotels are already well-established in the hospitality industry. Alongside their expanding hotel interests, Kempinski began Kempinski Residences in October 2006, and, already, it has become a major contributor to the group’s finances.
It is a joint-venture between Kempinski Hotels S.A. (Switzerland) and specialists in management and consulting in the field of residence business, TMC Partners S.L. (Spain). As with the Skiper Hotel resort complex in Alberi. near Umag, Croatia, some of the Kempinski premises include serviced apartments. Demand for serviced accommodation increased, so Kempinski started to think about providing Residences on their own.
Right next to the Skiper is the brand new Adriatic Hotel: modern, five star and - as I have seen - with stunning views from its cliff-top position, and a luxurious range of facilities, including a marina, and serviced apartments for sale.
I have also seen the Kempinski venture in the centre of Prague, a stunning historical site in an equally stunning city. And, just for good measure, I have also seen the site of its facility on Gozo, sister island to Malta, in another wonderful setting. Kempinski knows the best places to operate and, from my own observation, it isn’t just hype. At the moment there are 18 sites with 2,314 units. A further 12 sites, with 1,300 units, are being negotiated.
Reto Witner, President and CEO of Kempinski Hotels S.A. said they had to learn a great deal about how to run Residences, but were helped by their Spanish partner, TMC. This seems to be an emerging style for Kempinski – to hit the deck running with brand new ventures requiring partners to provide know-how. So far, this fast-entry technique had worked to excellent effect.
Witner adds that they will concentrate on mixed-use developments, combining
hotel and apartments (and villas), in the future, taking into account changing
requirements of customers. But, Residences as stand-alone ventures are
now a top priority, too. TMC Partners are the preferred licensees in the
Residence side of the business, and they expressed delight at the arrangement.
CEO of Kempinski Residences, Jean-Claude Bailly, said that whilst they had no historical data to back the venture, it has grown significantly in just two years, satisfying its budget fully. “The Residence business contributed substantially to Kempinski’s group profit.”
Appointed CEO in June 2007, Frenchman Bailly has 38 years hospitality experience. Before his current appointment he was General Manager of Kempinski Hotel Dalian in China, so he was already versed in Kempinski methods and ideology.
Before that, he spent 11 years with Le Méridien, in Singapore, Montreal and New York. For eight years he was CEO of Serena Hotels in Pakistan, and also worked variously on the Advisory Council for the Development of Tourism, Pakistan, and as a French Foreign Trade Counsellor. Other similarly prestigious offices have been held. Bailly was also CEO of the Les Roches Swiss Hotel Association School of Hotel Management. After holding other offices with the same establishment, he finally joined Kempinski.
With a pilot’s licence, Bailly literally ‘gets around’! He enjoys literature, classical music, theatre and opera, and has organised events for these interests in several countries. It is rare to find a man with such a diverse background, all of which add to his already impressive credentials.
Residence properties will be as varied as the demand made by customers, and include apartments, villas, penthouses and town-houses. To cover all bases, all will be available for purchase, or for long or short-term rental. So far, these are in 16 countries, in Europe, Middle East and Asia. The added bonus for these luxurious properties is that they are fully serviced and have top-grade facilities on their doorstep, some of them quite innovative.
It is not just the properties that are of the highest luxurious standard – so is the location of each property or resort, build quality & materials, interior design and landscaping. After-sales quality is also high, with offices usually on the same site. The offices offer rental services, too, if owners want them.
60% of all new Kempinski city projects and 80% of their new resorts are mixed-use sites, so the idea of serviced properties is a major part of its business. Residences are further divided into two distinct businesses – Kempinski Private Residences, offering luxury properties for sale, and Kempinski Residences, dealing in the rental market.
Board members are Simon Coombs, Executive Vice President & Chief Financial Officer, and Michael Novatin, Chief Operating Officer, both of Kempinski Hotels. They are joined by Manfred Schoenleben, Executive Chairman of Kempinski Residences, and co-founder of both Kempinski Residences and TMC Partners.
Barry Napier, 2008
|Also See:||Unique Joint Venture Brings Together Kempinski's European Experience with Anantara's Asian Experience / April 2008|
|Kempinski Hotels Grows to 92 Unique Hotels, Launches New Hotels in Russia, China and Central Europe / January 2007|