New York - Luxury
hotel company Kempinski aggressively is expanding its portfolio, but president
and CEO Reto Wittwer said it neither would become a massive megabrand nor venture
beyond the luxury tier.
Kempinski, which counts corporate transient travelers as a
significant portion of its business, recently opened new hotels in Moscow, East
Delhi and Vienna, and a converted Gran Melia in Shanghai. Upcoming openings
this year include a new Nairobi property.
Speaking this month at a media luncheon here, Wittwer said
that while Kempinski has "more to come, particularly in Africa, we will
not grow beyond a certain number. What is associated with luxury is numerically
limited, be it watches, cars or clothes."
He elaborated that Kempinski, now with about 80 properties
in 30 countries (though none in the United States), should "never have
more hotels than the age of the company"—currently a spry 116 years.
Wittwer added that Kempinski has no intention to accelerating
growth with upper upscale or midprice properties. "We cannot do everything
well, but we do luxury well," he said.
He also noted that luxury is a moving target. "Ten
years ago, Hilton was a luxury hotel," he said. "Is it today? Will it
be in 10 years? My job is to manage the future."
As such, Kempinski is focused on the "re-identification
of luxury," which the company ties to its employees and food and beverage services.
For example, the company pays its managers to get MBAs, and hotel managers hire
employees directly rather than human resources.
While many hotels in lower tiers are moving away from
traditional hotel restaurants, Wittwer said the restaurant remains a critical
piece of the luxury tier.
"If a hotel doesn't have good food and
beverage—good drinks and signature dishes—it will not integrate into the local
market," he said. "An iconic hotel is collectively owned by its
people."