Those who attended a briefing given recently by Guy Stehlik, founder and chief executive officer, of new hotel management group, BON Hotels, were left with no doubt that the young BON Hotels’ management team has set its sights on becoming front runners in both the South African and international hospitality sectors.
Stehlik stresses that although BON Hotels intends to become international hotel operators, Southern Africa will remain the number one target area, with hotels in the main centres (Johannesburg, Durban and Cape Town) being those most likely to benefit from BON Hotels’ involvement.
BON Hotels was founded in 2012 by Stehlik who, along with the handpicked management team, have 100 years of collective experience in hospitality.
The company focuses on every aspect of hotel management and operation, with the specific needs of the owners in mind.
Stehlik revealed that he expects at least 10 hotel management contracts to be up and running by the end of 2013 and these will by no means be confined to Southern Africa.
They could, he said, be “anywhere where we can genuinely add value – the big advantage of our operation is that it certainly does not have to be confined to one territory”.
In Dubai, Stehlik expects to be managing his first 3 hotels within three to four months.
These and other Middle Eastern contracts are, he said, “being negotiated through a joint venture with a well-established, ‘seasoned’ Dubai based company that, apart from other businesses, owns hotels in the Middle East.”
“The joint venture has great potential because our partners recognise that they require our intellectual capital, our IT systems and training programmes, and we know that we need a respected local partner who is accepted in the area and understands Middle Eastern trading conditions.”
The partner also recognises the value of being associated with an international brand and chooses to be linked to the BON Hotels name, he explains.
According to Stehlik, the Middle Eastern hospitality sector was severely affected by the global financial crisis, but the vast majority of establishments there, he said, have strong, patient, financial backers capable of holding out through tough times – and in the last year their establishments have been on a recovery path which augurs well for the future.
Guy Stehlik, founder and chief executive officer, for new hotel management group BON Hotels expects at least 10 hotel management contracts to be up and running by the end of 2013 and these will by no means be confined to Southern Africa.
“Throughout the Middle East, it is the middle bracket (three and four-star) establishments that are recovering fastest – and this is the field to which our skills are best suited.
“However, as in South Africa, the five-star establishments are also, once again, beginning to look promising, although it may be some time before the major corporates can justify that their staff should use five star hotels again on a regular basis, he says.
The general perception that Middle Eastern hospitality venues are likely to be exorbitantly expensive is not accurate, says Stehlik.
“Venues in the middle-market bracket offer prices, services and facilities very similar to those in South Africa and it could almost be described as an affordable holiday or business conference destination.”
Stehlik stresses that although BON Hotels intends to become international hotel operators, Southern Africa will remain the number one target area, with hotels in the main centres (Johannesburg, Durban and Cape Town) being those most likely to benefit from BON Hotels’ involvement.
He says he is especially interested in the Kruger Park peripheral areas, where many of the game lodges have much to offer.
The danger for BON Hotels is to accede to the many urgent requests, particularly from South African hotel owners, for partner deals.
These have escalated as a result of the current economic conditions, but in many cases BON Hotels might not be able to add value where hotels are already in difficulty.
In the present economic climate, says Stehlik, a significant number of SA hotels do need some form of rescue operation – but may not be suited to partnering with BON.
“Often the owner will need a major upgrade which cannot be justified on his current cash flow.
“While it is true that our involvement has on occasion helped hotel owners to raise the finance they need, we will take great care to avoid going into deals where the fundamentals for success are simply not there.”
Since the onset of the recession, competition for hotel management contracts, both locally and internationally, has intensified. This, however, in no way daunts BON Hotels.
“Our big advantage in negotiating for these contracts, is that we are prepared, firstly, to offer relatively short term contracts – say for five years – and, secondly, are always willing to draw up a list of performance criteria, which, if not met, allow the hotel owner to exit from the deal.
“This, I believe, is a major step forward in the hospitality sector and hotel owners find our flexibility in this regard very refreshing”.
He points out that there is a danger, especially among smaller operators that, after getting rid of the management team, the owners may believe they can run the hotel themselves, only to discover in time that they lack the experience and expertise to do this effectively.
South African hospitality staff have a good reputation internationally: they tend to be more flexible, more willing, more transparent and more friendly than those of many big name international operators.
They do not see service as irksome but as a pleasure and almost, without exception, they are very hard workers, according to Stehlik.
“Our South African hospitality tradition is something we can and will build upon.”
He notes that recently, he was in Italy, generally recognised as a major tourist venue, but every one of the hotels at which he stayed could have been improved by BON Hotels’ involvement, particularly with regards to staff attitudes.
“With our SA work ethic, lack of complacency, readiness to serve, innovative thinking, and tried and tested systems, BON Hotels can and will be very useful to any hospitality organisations where the owners recognise there is a need for improvement,” he adds.
