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Development Design & Construction

issue 7 | November 2011

PROFILE AGON HOTELS & RESORTS

C H A N G I N G F A C E SHASSELL | JOHN STENTON

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PRESENTERThalia Andrews

EditorPaul Snowdon

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Development Design & Construction

030709

Summary Newsfrom around Asia

Profi le : John Stenton Principal Hassel

Agon Hotels and Resorts with Darryl Agon

This week we talk to Darryl Agon of Agon Hotels and Resorts and catch up with the charming John Stenton, Principal of Hassell Studio, Bangkok Thailand.

Next week we are off to Vietnam and then to Hong Kong to talk to some more exci ng people from the Business of Design Week Conference! There aren’t many days le in this year so be sure to send us your news for the remainder of the year and for January 2012 and fi nally, don’t forget to share our link and encourage others to subscribe to this free magazine at h p://development-design-construc on.com/

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As the worst of Thailand’s fl ooding appears to have

passed and the waters have be-gun to recede, the country’s real estate fi rms have started to take stock of the situa on. Many of Thailand’s property developers have asked that the City Plan-ning Department of the Bang-kok Metropolitan Administra- on (BMA) review its new dra

city plan, which is due to come into eff ect next year. According to the developers, this year’s fl oods demonstrate that a new plan with be er fl oodways is re-

quired in many areas within the capital.

However, many developers have also accepted that they also need to review their own con-struc on processes when build-ing in Bangkok. Homes will need to be be er designed to with-stand fl oods, while more land-fi lls and more eff ort is required to ensure that new homes are above fl ood levels. It is es -mated that these new measures are likely to increase construc- on costs by 1.5% for detached-

houses and 3% for townhouses.The Real Estate Informa on Centre (REIC) reported that as many as 700,000 residen al units sustained fl ood damage in Bangkok. It has been predicted that the Bangkok property mar-ket could fall by as much as 33% as a result, although some es -mates are as low as 10%.

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THAILAND’S FLOODS: THE DAMAGE DONE

Thai property developer Rai-mon Land remains bullish

about the future of the Thai property market despite the dev-asta on caused by the recent fl ooding in parts of Bangkok. The company’s chief execu ve, Hu-bert Viriot, told the Na on that he expected the fl ooding to be a “one-off ” event with no las ng impact on Raimon’s expansion plans. Raimon’s proper es were mostly unaff ected by the fl ood-ing.

During the fi rst 3Q of 2011, de-mand for Raimon Land proper es grew with pre-sales up 23% from

the same period in 2010. Never-theless, the company reported a fall in overall revenue and a net loss of Bt114 million during the same period with the weak fi g-ures blamed on a change in the accoun ng policy of the Stock Exchange of Thailand, which now books pre-sales revenue only when the property is transferred to the homeowner.

Raimon Land remains in a healthy posi on with a backlog worth Bt16.2 billion and inventory for sale worth Bt28.6 billion set to generate revenue for the next two years. The company currently

has four condominium projects under development in Bangkok and Pa aya and has also con-fi rmed its inten on to launch its new Unixx brand in Pa aya off ering units at under 1 million baht each.

RAIMONLAND REMAINS BULLISH OVER FUTURE

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Despite new residen al prop-erty regula ons imposed by

the Chinese government, Capita-Land is commi ed to con nuing to look for new opportuni es in the Chinese market. Facing the risk of a property market bubble, the Chinese government raised

the down-payment and mort-gage requirements and imposed home purchase restric ons in about 40 ci es earlier this year. Nevertheless, CapitaLand has vowed to con nue looking for new opportuni es as it seeks to maintain a balance between

its residen al and commercial projects. The Singapore-based company is South-East Asia’s largest property developer and has S$10.1 billion ($7.8 billion) of assets in China.

CAPITALAND TO MAINTAIN PRESENCE IN CHINA

Understated Luxurywww.riverbirches.co.nz

Hong Kong-based Shangri-la Hotels and Resorts is to in-

crease its por olio of hotels in North-East China to eight with the opening of the 400-room Shangri-la Hotel, Yingkou in 2015.

Ideally located in the city’s fast-growing economic development

district as well as near the beach in the coastal resort of Yingkou in China’s Liaoning Province, the property is aimed at both busi-ness and leisure travellers with a special focus on family groups. In addi on to F&B outlets, mee ng space, a health club, an indoor pool, a spa, and a hot spring village, the hotel will also

feature a 1,400-square-metre family entertainment centre and children’s adventure zone.Shangri-la’s fast-growing port-folio of proper es in North-East China already includes hotels in Changchun, Dalian, Harbin and Shenyang.

NEW SHANGRI-LA PROPERTY FOR CHINA

According to the October 2011 STR Global Construc-

on Pipeline Report, there are 1,373 hotels and 327,630 rooms in the Asia/Pacifi c hotel devel-opment pipeline. The largest expected growth is in New Delhi

with +46.3% (10,477 rooms). Other major growth markets include Manila at +30% (5,523 rooms), Mumbai at +22.5% (4,185 rooms), Bali at +19.3% (6,257 rooms), and Jakarta at

+17.3% (4,541 rooms).

ASIA/PACIFIC HOTEL DEVELOPMENT PIPELINE

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Singapore’s Banyan Tree Holdings and Malaysian de-

veloper Lumayan Indah Sdn Bhd have reached an agree-ment to open a luxury property in Kuala Lumpur. The 55-storey Banyan Tree Signatures Pavilion Kuala Lumpur comes at a cost of RM1.4 billion (US$440 mil-lion) and is set for comple on in 2015. The development in-cludes 441 private residences, 51 service residences, and 50 hotel suites.

The property will stand on the junc on of Jalan Conlay and Ja-lan Raja Chulan and will feature a link bridge to the Pavilion Kua-

la Lumpur shopping mall. When completed, the tower will be one of the tallest residen al buildings in Malaysia. Banyan Tree will operate the 50 hotel suites and manage the private and service residences, while Pavilion Property Consultancy Sdn Bhd will be the sales and marke ng consultant for the Banyan Tree Signatures private residences.

Banyan Tree hopes that the Banyan Tree Signatures Pavil-ion Kuala Lumpur will open the door to more hospitality projects in Malaysia as the com-pany con nues to enter new

markets. Since opening its fi rst property in Phuket, Thailand in 1994, the company has gone on to establish more than 30 ho-tels and resorts, almost 70 spas, nearly 80 retail galleries, and two golf courses. There are 30 more projects in the pipeline, with China the company’s main target market. Among the prop-er es due to open in 2012 are the Banyan Tree Tianjin, Ban-yan Tree Riverside, and Banyan Tree North Bund in Shanghai; the integrated resort of Banyan Tree and Angsana Lang Co in Vietnam; and the Banyan Tree Kerala in India.

BANYAN TREE TAKES ROOT IN KL

Indonesia’s state-controlled con-struc on company Adhi Karya is

set to go ahead with several new projects a er raising Rp 800 bil-lion ($89 million) from newly is-sued shares. Among the projects is a 100-storey offi ce tower, which will be the tallest in the country when it is completed in South Ja-karta. Funds will also be invested in a toll road project in Bali and several power plant projects.

INDONESIA’S TALL-EST TOWER RECEIVES

FUNDING Two contractors were pro-hibited from undertaking

projects by the Quang Ninh pro-vincial authori es in Vietnam recently amid claims of bidding irregulari es and an inability to complete assigned work on schedule. The Thang Long Con-struc on Company No 9 and Vinaconex Xuan Mai will not be allowed to work on any projects funded by the local authori es. However, the two companies have protested their innocence and cited their good work on

other projected as evidence of their abili es. It is expected that other contractors could also fi nd themselves in the same situa on as the Vietnamese government looks to ghten its control of public investments.

VIETNAM GETS TOUGH ON CONTRACTORS

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With a seemingly increas-ing number of natural as

well as man-made disasters to contend with, many businesses are turning towards the benefi ts of computer so ware that can provide 3D simula ons as part of the risk assessment process. Business Con nuity Simula on is the new buzz phrase for com-panies hoping to reduce the im-pact of disasters.

The 3D simula ons provide vis-ible proof of how businesses could be aff ected in worst case scenarios that include fi re, fl ood, landslides, and storms as well as terrorism, data the , and computer security risks. While the so ware can’t prevent the disasters from occurring, it can at least help companies prepare in terms of be er design and construc on of new facili es.

In a region that suff ers from earthquakes, tsunamis, ty-phoons, fl oods, and monsoons, it could well be a business’ best investment.

www.linuxxoffi ce.com

3D SIMULATIONS TO HELP BUSINESS AS-

SESS RISK

There is concern in some quarters that insurance rates

for construc on contractors, ar-chitects, and engineers could be about to rise in response to a series of natural disasters, rises in workers compensa on cases, and poor interest rates across the globe.

The Asia/Pacifi c region alone has been hit by such catastro-phes in 2011 as the devastat-ing earthquake and tsunami in Japan on March 11 as well as fl ooding in Thailand, Cambodia,

and Australia. Some markets have also seen a tangible rise in compensa on paid out to con-struc on workers over the past 12 months. Meanwhile, insur-ers have found it diffi cult to off -set their losses with investment income because of depressed interest rates. Many observers are now predic ng a rise in in-surance rates as the only op on open to the major insurance companies.

INSURANCE RATES FOR CONSTRUCTION

CONTRACTORS TO RISE?

Meliá Hotels Interna onal of Spain is to increase its

por olio of proper es in Asia to nine with the opening of two new hotels. The 419-room Gran Meliá Xi’an will be the com-pany’s second hotel in China when it opens in 2013. The new development will feature F&B outlets, a spa, and a conven on centre. The Meliá Danang is due to open in December 2012 and will be the company’s second property in Vietnam. The hotel

will feature 150 rooms includ-ing 10 villas, two F&B outlets, a spa, and an execu ve fl oor. Meliá also has one hotel and Malaysia and four in Indonesia with a fi h in the pipeline.

MELIA TO OPEN TWO NEW HOTELS IN ASIA

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New company, new posi on, what new objec ve do you have?

New company but a familiar company, as former a compe tor but also a respected design prac ce, with whom I had worked 25 years ago in Melbourne, albeit briefl y. My objec ves are simply to maintain and build on the HASSELL reputa on for design excellence and expand the Architecture por olio in Thailand and the South East Asia region.

How is Hassell posi oned in the market compared to other design fi rms in the region?

HASSELL is recognized in Thailand and the region as one of the leading Design prac ces, with Architecture, Interiors, Landscape, Sustainability and Urban Plan-ning capabili es in major market sectors.

What are some major design challenges of hospital-ity development?

Hospitality is really all about the guest experience, at the end of the day, a hotel bedroom is somewhere to sleep, the challenge is to enhance the overall experi-ence and design innova ve but func onal spaces,

PROFILE | JOHN STENTON | PRINCIPAL HASSELL

Trends come and go, good design i s s u s t a i n a b l e and appreciated.

“ “

Radisson Suites Bangkok

which meet and exceed not only the guest experience but meet the operators brand and budget criteria.

How will you use your experi-ence in your new posi on?

I have over 25 years experi-ence as a designer and every day presents fresh challenges, which I relish with enthusiasm. I am recognized as a mentor and knowledge sharer, which hope-fully, is benefi cial to younger, less experienced designers, peers and clients alike, resul ng in successful design outcomes.

In developing the hospitality side of the business where do you see the biggest challenges

from the designer’s point of view and the owner’s point of view?

The biggest challenge as previ-ously men oned is crea ng a point of diff erence and value adding through design. I recent-ly had two friends from Austral-ia staying overnight in Bangkok and slept in the most comfort-able beds they had slept in for years, the hotel was not expen-sive or lavishly appointed but the beds, linen and ambience will be remembered and com-mented on and will prompt a return stay. That is the kind of value adding to a refurbished room or new that helps exceed expecta ons.

What are the owners of hos-pitality developments looking for from your studio? Are they looking for innova ve designs; conserva ve designs or to min-imize risk?

Innova ve, func onal design with features that can exceed guest expecta ons and set the brand apart.

What are some interes ng hos-pitality design trends that we should keep an eye on?

Trends come and go, good de-sign is sustainable and appreci-

ated.

Plans for the future for HAS-SELL Bangkok?

To maintain and increase mo-mentum in all aspects of HAS-SELL philosophy and be recog-nized as the Design prac ce to be associated with.

http://www.hassellstudio.com/

PTTEP Head quarters Bangkok

Condolette Light Convent

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AGON HOTELS AND

RESORTS

We caught up with Darryl Agon of Agon Hotels and Resorts.

Agon Hotels and Resorts Ltd.Second genera on in this business what direc on do you see it going.

I actually come from four genera ons of hoteliers, dat-ing back to the 1900’s when my great grandfather devel-oped and managed restaurants and inns in Cuba. Since then the next genera on developed and managed sev-eral hotels in Hong Kong including the former Hya Re-gency on Nathan Road, the former Miramar Hotel (now Mira), the Ambassador and Astor hotels, and was also a founding member of the HK Hotels Associa on. My father, Richard Agon started in the hospitality business in the 1960’s and worked for hotel chains, schools, and owners before he started in the consul ng business. I joined him ten years ago, though I have been trained by him and grew up in hotels and was a perrenial ap-pren ce.

Over the past 10 years, we predominantly have been known as a hospitality consultant, advising on a wide range of industry-related issues, such as development, owner’s representa ve, opera onal audits, silent shop-per programs, training, recruitment, and others. How-ever, now and in the future, we off er an alterna ve so-lu on to owners for providing management services. Whereas several big hotels brands off er their products, we off er a diff erent value proposi on: we off er hotel owners the op on to create their own hotel brands and their own dreams, with the confi dence to know they have a professional team suppor ng and advising them. They enjoy seeing their own ideas professionally man-aged and they enjoy the crea on process and holding their own brand equity.

How do you see the hospitality industry in Asia devel-oping in the next 10-20 years? Where’s the focus? Re-sorts Hotels, Bou que family hotels?

We’ll probably see new brands and diff erent hotel con-cepts. Maybe more emphasis on food and beverage and perhaps more retail brands extending into hospitality.

You deal with recruitment in the hotel industry what’s the most challenging aspect of that from your point of view.

In recent years, with the rapid hotel development espe-cially in China, it is more and more diffi cult to fi nd man-agement talent. And with the number of opportuni es around, people tend to move between jobs more o en, making it more diffi cult for employers to fi nd candidates

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with long term, more stable work experiences.

How diffi cult is it to persuade a client about the benefi ts of your services?

We are o en brought into hotel development projects when the project team of architects and other designers and consultants press the owners to know what is the project’s opera onal require-ments and market posi oning. They need to know the end-user requirements, and we provide this as the hotel operator consultant, or as the operator itself. Fundamental ques ons are raised and de-pending on the project circumstances, the benefi ts of our services become glaringly obvious. However, as with most other services, marke ng intangibles such as me and professional exper se can have challenges to show exactly the contribu ons being provided. Advice can be subtle changes, which col-lec vely add up to make huge overall diff erences.

If you are asked by a client who has a failing hotel business what advice and ac ons can you provide and how do you do it.

There can be many reasons why a hotel is under-performing: design management, strengths and exper se of the team, market pressures, etc. We normally look at such opera ons on a holis c lev-el as o en it is a combina on of factors that can be improved. From mee ng with the staff , to de-tailed property and equipment inspec ons, from reviewing compe tor proper es, and speaking to other industry insiders, and a whole host of other ac onables, we form “as-is” and “could-be” models of the hotel for a clearer picture of the circumstanc-es. Just as people go to the doctor for check-ups, hotels can be checked too, so just to be er ensure long term healthiness of the opera ons.

Do you think the hotel industry can provide more of the service you provide or less?

We are certainly providing niche services and there are many providers doing parts of what we do, but not all of what we do. There are recruitment com-panies, there are consul ng companies, there are training companies, and there are operators.

Meanwhile, we are an end-to-end solu ons provid-er and draw on such interdisciplinary areas of the hospitality industry to create synergies across areas and provide insight and be er value to our clients.

What is the profi le of your clients, big interna on-al groups or more private bou que hotels?

Our development clients range from publicly-listed conglomerates, to state-owned or quasi-govern-ment groups, and to private entrepreneurs. Be-cause we are not a typical branded hotel compa-ny, we can also assist with any hospitality related projects of diff erent size, scope, and grading.

For consul ng, we assist a lot of independent or smaller chain groups. We also work with several interna onal brands focusing on the recruitment side.

http://www.agon.com.hk/

“They enjoy seeing their own ide-as professionally managed and they enjoy the creation process and hold-ing their own brand equity.

”

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Communications will be the single biggest issue, and awareness of this is essential. Active listening skills, written records and checking of facts and information are all needed.

Staff fatigue will be another issue to watch for. In the past many managers have had to be forcibly removed when they started making bad decisions due to lack of sleep, and many have died in car crashes (asleep at the wheel) or had heart attacks during a crisis event.

“Declare victory” at the end of it all and make sure you thank all the parties involved. You never know when they may be needed again!

Review the disaster and your contingency plans and recov-ery actions soon after business as usual is achieved.

Having an outsider assist is an excellent way to ensure an objective report and positive learning can be achieved by your management team. It also allows for this learning to be used to improve your preparedness for the next crisis event.

12 3

45

KEYelements

FOR FLOOD RECOVERY

Please contact us to discuss ideas at any time.Tel. +66 (0)2 2618485E-Mail: info@coverage.co.thWebsite: www.coverage.co.thwww.twitter.com/coverageltdwww.facebook.com/cover-ageltd

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It seems as though the fl oods have now peaked, and some areas north of Bangkok have started to drain. Draining of water outside main river areas is not as easy as just waiting. Pumping is required as some of the the land areas are often below the river levels. This means that it will take quite a while – even weeks – to get all areas dry again.

There is still a risk that dry areas could be fl ooded as those whose houses remain underwater become frustrated with the slow drainage and attempt to speed things up by breaking dykes or other barriers.

So let’s assume that your business facility is starting to dry or will be dry soon. How do you proceed from here?

1. Get Organised

• Who will be in charge? If you have established alternative operations dur-ing the fl oods you may need people to manage those alternative opera-tions, therefore they will not be available to manage any recovery efforts.

• Who will be in the team? Will it be a 24-hour operation or daylight hours only? Who is available and who has the right skills?

2. Make A Plan

• Consult with your legal team and insurer as well as key customers to deter-mine their expectations or needs.

• Check with suppliers who may have also been affected to determine what raw materials you can obtain – no point starting a whole process line only to fi nd out that one small item is missing!

• The best people to get involved, however, are your employees who have been working with you for many years. They will know all the ins and outs of your operations and will think of things that others won’t even have heard of.

• Document the plan and the key assumptions, and let management and the key stakeholders know at least the outline and expected milestones.

3. Find & Secure Resources

Arrange logistics for implementing the plan. This is likely to involve securing cleaners, but could also include structural, mechanical and electrical engineers, security teams, ordering new equipment, fi nding experts in equipment recon-ditioning, IT services specialists and potentially many others – each companies plan will be different.When certain groups or resources can’t be found, you may need to go back and review the plan.

4. Implement

• Monitor progress and be prepared to alter and update the plan as new information becomes available.

FLOOD RECOVERYInsurance

Discuss how they want you to proceed and how funding for recov-ery will work. They may want you to use outside professional resources rather your own people as it will be easier to cal-culate costs.

Andrew Durieux is the Direc-tor and Principle Consultant for BCP at Coverage. For more than 15 years An-drew has focused on BCP, Crisis Management and Risk Management, providing these services on 4 Continents and for a wide variety of clients which range from small Thai operations to US Stock Mar-ket listed companies operat-ing across many countries.

Andrew is a qualifi ed mem-ber of the Business Continuity Institute of the UK, and is a regular consultant to the UN, WHO, International Fed-eration of the Red Cross/Red Crescent Societies, ASEAN Ministries of Health, and the Asian Disaster Preparedness Centre in the area of Human Pandemic Infl uenza, similar scenarios and Crisis Manage-ment in general.

Coverage and Andrew are ready to assist as needed, but it is advisable to contact them sooner rather than later. It is never too late to start your recovery plan, and the sooner the better. The positive side of this is that you could win new customers and the ongoing trust of your existing custom-ers and staff for many years to come by acting quickly as did Coverage’s clients.

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