SVP interview: Carlson Rezidor's Mark Willis
With 2014 a record year for The Rezidor Group’s growth, the operator is now scoping out opportunities for its two new brands and is powering ahead with a robust Saudi pipeline. There might be challenges ahead, but Mark Willis, SVP Middle East & Turkey, will carry on climbing
Having been in the Middle East now for 13 years with its core brands, upper upscale Radisson Blu and long-stay Park Inn, The Rezidor Group had a record year in 2014. Now with 32 hotels operational, Rezidor is considering opportunities for new brands announced last year, Radisson Red and Quorvus, and is working full steam ahead with its Saudi pipeline, having signed a master development agreement with local owner Al Hokair Group in October for 30 new hotels.
With the workload becoming increasingly heavy for the Middle East & Africa team, Rezidor’s sub-office in Johanasburg has begun transitioning into an area office and Mark Willis, senior vice president Middle East & Turkey will now focus solely on the Middle East, Turkey and North Africa (Egypt and Libya).
“As of January this year I’m in the process of giving up Sub-Saharan Africa due to growth both there and in the Middle East,” the British national tells Hotelier Middle East during an interview at Radisson Blu Media City, Dubai.
“It was the right time to separate and our focus is very much on the continued growth of Africa. We’re fast approaching 60 hotels in the [Middle East] region and if you look at the pipeline it’s an ever-changing scenario as far as business development goes and new opportunities.”
The importance of the Middle East to Rezidor’s global portfolio is demonstrated by the fact that 40% of last year’s global signings were in this region, and a quarter of properties signed worldwide were in Saudi Arabia, which Willis admits is his main focus for growth in the Middle East. Currently there are eight operating hotels in the Kingdom and 16 in the pipeline across primary and secondary cities.
Referring to the strategy for Saudi Arabia, Willis comments: “We are not focused just on the key cities. It’s also the Eastern Province, Jizan which is not too far away from the border, we’ve got projects we’re looking at in Salamah, Jubail, Ta’if.
“These locations — although they’re considered secondary locations — it’s quite surprising when you actually go to them, the amount of building and construction that’s actually going on.
“We’re developing the brands across the Kingdom in line with that infrastructure development, so it’s really exciting.”
In October, the company signed a long-term development agreement with Saudi firm Al Hokair Group to develop and operate more than 30 properties across the kingdom. The deal covers both existing and new hotels, resorts and serviced apartments under the Radisson Blu and Park Inn by Radisson brands, with the properties to open over the next 15-20 years.
“If you look at that partnership, I think it made a lot of sense,” comments Willis.
“You bring immediate local knowledge to the table, and with Sami Al Hokair [Al Hokair Group owner] you’ve got an entrepreneurial, commercial guy heading up the organisation.
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“He was a perfect partner for us and they bring that local knowledge to the table, local contacts, as well as that investment arm, which is extremely positive.”
Rezidor currently has 10 projects with Al Hokair group “on the table” as well as others in the pipeline. Two of these opened at the end of February; the new-build 150-room Radisson Blu Resort Jizan and the 90-room Park Inn by Radisson Hotel Dammam, which is a conversion project. Another two are to open in Jeddah this month; the 120 room Radisson Blu Plaza Residence, and the Radisson Blu Red Sea Palace Hotel, which will add another 261 rooms.
“That’s a hotel which was close to completion but we’re working with Al Hokair to finish it,” explains Willis, referring to the Red Sea property. He adds that a huge amount of unbranded inventory in Saudi Arabia makes acquisitions an interesting route for growth for the company.
“Throughout the Kingdom, as well as other places in the GCC, there’s a lot of unbranded inventory, and if an owner has got the desire to take the property forward with a group and brand then that’s an opportunity.”
While organic signings continue to be the main avenue for expansion of Rezidor in the Middle East, Willis hints that the company may be almost ready to go into franchising in this part of the world.
“I think franchise has always been one of the elements of Rezidor’s focus and I think we wanted to increase and improve on that,” he remarks.
“We see opportunities throughout the various areas within the organisation and while franchise is not something that’s actively prominent in the Middle East, I think that will change in the years to come as owners become more astute and more knowledgeable about the industry. That will grow as they want to self-manage but under the umbrella of a branded group.”
While Rezidor’s pedal is to the metal when it comes to Saudi Arabia, Willis is careful to add that the UAE is still key to the portfolio, and presents opportunities for all of the company’s brands.
Demonstrating this point, the first midscale Park Inn opened in Dubai last month, and three more are in the pipeline for Dubai. The 90-key Park Inn by Radisson Hotel Apartments Al Barsha marks Rezidor's 34th property in the region.
“I think [UAE] is very similar to Saudi Arabia. I know people consider them very differently, but if you look at the amount of investment into infrastructure, whether it be the airports, roads or facilities — both locations have diversified. In the UAE it’s not just shopping malls and beaches, the various theme parks and attractions are mega, mega projects.”
The group had a successful 2014 across the entire GCC — even in markets that have been volatile in recent years. Leading this was Egypt (32.3%) and Bahrain (16.1%); both experiencing double-digit growth.
“If you look at Bahrain, it has rebounded very positively I believe. The Diplomat Radisson Blu Hotel, Residence & Spa in Bahrain has a fantastic new ballroom, and when you’re talking about millions of dollars of investment into a market that only two or three years ago looked slightly unstable, hats off to the owners there, who have worked with us fantastically well.”
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With political unrest sweeping across the globe in 2014, Willis believes that security concerns are no long attributed solely to the Middle East.
“I think for some years perhaps the Middle East was tarnished with a security issue, political unrest. But you can see that it’s not something that’s isolated to this region,” says Willis, referring to the recent Paris and Sydney attacks among other incidents.
“I think today these are global issues and people see them as that. People do their homework; they are researching and travelling accordingly.”
Another flourishing GCC market for Rezidor is Kuwait, home of what Willis describes as the group’s flagship Middle East property; The Symphony Style Hotel Kuwait, which saw year-on-year growth in 2014 above the average for the country.
The property became one of the first member hotels of Quorvus Collection when it transitioned from Missoni Hotel Kuwait back in May 2014, and is still the only Quovus hotel in the Middle East. The reflag followed Rezidor’s termination of its master licence agreement with the Italian fashion house Missoni, which Willis explains was a result of Rezidor wanting to “take the brand more towards a collection”.
“We parted company with the Missoni family as they looked to concentrate on the key element of their business, which is solely fashion and not hotels.”
Describing what the group is looking for to build its Quorvus portfolio, a collection of independent properties, Willis says: “We’re looking for a destination hotel that has something key about it, whether it’s the location or the style or design. Hopefully we’ll bring a lot of expertise to the table to assist the hotel and develop it to better things.”
At the same time as the announcement of Quorvus in February last year, The Rezidor Group introduced its upscale offering; Radisson Red, a ‘lifestyle select’ brand.
“It’s a self-service concept,” he says. While technology has been a key focus for the Park Inn and Radisson Blue brands — the firm was one of the first to offer free WiFi throughout its properties 10 years ago — Radisson Red will epitomise the tech focus.
“We’re definitely targeting the millennial traveller, trying to meet and exceed their needs. Red will have a real focus on design, detail and technology.
“I think we’ve been a real market leader. We’re very careful with the IT we put into hotels. We make sure it’s a 100MB line, we make sure the facilities are really up-to-speed with the demands of the guest, and Red is going to take this to a new level. I know there are key design elements that are going to come into play in public areas; watch this space.”
While he can’t reveal all at the moment, Willis admits Rezidor is “definitely looking toward Red in the Middle East”.
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“I have real hopes for Red and Dubai is the perfect location. The interest in Red has been huge, and likewise with Quorvus. We’re following up on a number of leads with Red across the area. We need to beat some of my colleagues from other brands!”
Under Willis’ direction, this goal seems achievable. The company has increased its growth in the Middle East 30% YOY since he joined in 2012, which he puts down to being “a very commercial guy, very target-driven”.
However, seeing his team grow, and improve has been the most satisfying aspect of the hotelier’s career with Rezidor so far.
“We’re in the people industry so seeing all those people flourish here, for me coming in new at the time, was a key achievement.”
Inspiring people to perform better is at the core of Willis’ management philosophy, just as he was, and still is, inspired by French chef Michel Roux, and Anton Mosimann, a Swiss chef and restaurateur. Both were key figures in the European food culture scene during the 1980s and their advice and decisions according to Willis took him down “many new roads, allowing me to learn and develop — something that shapes my career today”.
Willis initially started out in F&B as executive pastry chef for South African operator Sun International in 1989. This was followed by eight years in executive chef roles at hotels in the UK, including a two-year stint with InterContinental Hotels Group.
Having been with The Rezidor Group for 15 years, he has moved between the Middle East and the UK since 1995 and in his current role, has been based in Dubai since 2012.
Some of his favourite things about the region are what the more cynical among us refer to as ‘challenges’. “I think one of the very positive things about our area, which is also an element of the ‘negativity’, is that we work in a wonderfully diverse area, the mix of cultures, religions and business segments, whether it’s leisure or corporate or MICE.
“In 2015 and beyond, those organisations that will succeed are those able to deal with the diversity of the area and we all know what that is — whether it’s things happening outside of our area impacting us — e.g. Russia or the political unrest, or the shifting economies in Europe. It’s an ever-changing landscape and I don’t see that changing. I don’t see a year of no diversity and ultimate stability, that’s not going to be the case.”
The start of 2015 has already been positive for Rezidor according to Willis who says “the outlook is good” but this “depends on continued stability and security”. A 2.4% growth in RevPAR is forecast for the year ahead, compared to 2014’s 7.7% increase. Willis attributes this slow-down to varying factors, not least the price of oil and increased supply. However he caveats these concerns in saying: “You have to stay positive with these things, and so we are.”
Unphased by career challenges, Willis is likewise bullish in the goals he sets for himself personally. Having recently climbed Mount Kilimanjaro, he is now mulling over his next challenge. “You know there aren’t too many mountains in the GCC, which is a shame. But outside there are still plenty to climb, and with that comes the inevitable little bit of ‘negativity’ here and there… but I’m up for that!”
2015 hotel openings in Middle East & Africa:
• Radisson Blu Hotel, Sharm el Sheikh Lagoons
• Park Inn by Radisson Dammam
• Radisson Blu Plaza Residence, Jeddah
• Radisson Blu Red Sea Palace Hotel Jeddah
• Radisson Blu Hotel Sohar
• Park Inn by Radisson Residence Dubai Al Barsha
• Radisson Blu Resort Jizan
• Park Inn by Radisson Deira Creek Residence