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13-11-2014, 10:09 AM
Peninsula still looking for Sydney hotel site
THE AUSTRALIAN NOVEMBER 13, 2014 12:00AM
Lisa Allen
Property & Tourism Reporter
Sydney
PENINSULA HOTELS
Peter Borer, chief operating officer of Hong Kong’s Peninsula Hotel Group, says he is looking for the right location in Sydney. Picture: John Feder Source: News Corp Australia
HONG Kong’s Peninsula Hotel Group says Sydney is on its radar for the development of a five-star city hotel but two of the key properties on offer — Gold Fields House and the government’s sandstone-clad heritage buildings in Bridge Street — do not cut it.
Peter Borer, chief operating officer of the Hong Kong and Shanghai Hotels Limited group, which operates Peninsula Hotels around the world, said he would not proceed with Gold Fields House, despite strong assertions from hospitality executives the group was initially interested.
“As I mentioned we are looking (in Sydney), but as I mentioned we are not part of that (Gold Fields House) tender,” Mr Borer said yesterday. “We are always interested in further expansion.”
Mr Borer would not reveal why Gold Fields House was off the drawing board, but was candid on why the hotel chain was not considering redeveloping the sandstone-clad Education and Lands Department buildings.
“We would not look at them because they don’t have a view,” he said. “The view in your city here is prime. Everybody wants to see the beautiful Opera House and (Sydney Harbour) Bridge. It’s like San Francisco and Hong Kong harbour — everybody wants to see the harbour.
“It would not be, in my opinion for us, a prudent investment to go into a situation where you don’t offer a view.”
In its first foray into Europe, the Hong Kong-listed company, which is majority controlled by the Kadoorie family, has just opened the Peninsula Paris, and has committed to opening the Peninsula London within six years and a Peninsula Yangon within four years. It is also embarking on renovations to its Beijing and Chicago hotels.
“We are very interested to move into India and maybe Istanbul and we are always looking at an opportunity in Sydney, but it has to be in the right location. Right now there is no iron in the fire,” Mr Borer said.
Unlike many other hotel companies, the Peninsula has a philosophy to manage and own its hotels. “We always want to own ... the business principle for the hotel company is to do these investments for a very long term,” Mr Borer said. He revealed that the company owns all its hotels except for the Los Angeles and Paris hotels, which are majority owned by the Qatari government, with Peninsula having 20 per cent stakes.
Mr Borer said he would continue to look at Sydney. “It is so hard to prioritise because sometimes an opportunity presents itself and then you have to grasp it. And sometimes it takes years. With the commitment of the Kadoorie family we are here for the very long term and hence we have no pressure to grow, and we can do it in a way that keeps up that commitment to quality and financial prudence so there is no rush.
“We get a lot of approaches from all over the world. We are also getting a lot of approaches in terms of going into more resort-type priorities, which we always decline because we believe our strength is going into five-star city hotels.”
But it is clear the Australian market would like a Peninsula Sydney given Aussie travellers account for 4-6 per cent of the company’s international business.
THE AUSTRALIAN NOVEMBER 13, 2014 12:00AM
Lisa Allen
Property & Tourism Reporter
Sydney
PENINSULA HOTELS
Peter Borer, chief operating officer of Hong Kong’s Peninsula Hotel Group, says he is looking for the right location in Sydney. Picture: John Feder Source: News Corp Australia
HONG Kong’s Peninsula Hotel Group says Sydney is on its radar for the development of a five-star city hotel but two of the key properties on offer — Gold Fields House and the government’s sandstone-clad heritage buildings in Bridge Street — do not cut it.
Peter Borer, chief operating officer of the Hong Kong and Shanghai Hotels Limited group, which operates Peninsula Hotels around the world, said he would not proceed with Gold Fields House, despite strong assertions from hospitality executives the group was initially interested.
“As I mentioned we are looking (in Sydney), but as I mentioned we are not part of that (Gold Fields House) tender,” Mr Borer said yesterday. “We are always interested in further expansion.”
Mr Borer would not reveal why Gold Fields House was off the drawing board, but was candid on why the hotel chain was not considering redeveloping the sandstone-clad Education and Lands Department buildings.
“We would not look at them because they don’t have a view,” he said. “The view in your city here is prime. Everybody wants to see the beautiful Opera House and (Sydney Harbour) Bridge. It’s like San Francisco and Hong Kong harbour — everybody wants to see the harbour.
“It would not be, in my opinion for us, a prudent investment to go into a situation where you don’t offer a view.”
In its first foray into Europe, the Hong Kong-listed company, which is majority controlled by the Kadoorie family, has just opened the Peninsula Paris, and has committed to opening the Peninsula London within six years and a Peninsula Yangon within four years. It is also embarking on renovations to its Beijing and Chicago hotels.
“We are very interested to move into India and maybe Istanbul and we are always looking at an opportunity in Sydney, but it has to be in the right location. Right now there is no iron in the fire,” Mr Borer said.
Unlike many other hotel companies, the Peninsula has a philosophy to manage and own its hotels. “We always want to own ... the business principle for the hotel company is to do these investments for a very long term,” Mr Borer said. He revealed that the company owns all its hotels except for the Los Angeles and Paris hotels, which are majority owned by the Qatari government, with Peninsula having 20 per cent stakes.
Mr Borer said he would continue to look at Sydney. “It is so hard to prioritise because sometimes an opportunity presents itself and then you have to grasp it. And sometimes it takes years. With the commitment of the Kadoorie family we are here for the very long term and hence we have no pressure to grow, and we can do it in a way that keeps up that commitment to quality and financial prudence so there is no rush.
“We get a lot of approaches from all over the world. We are also getting a lot of approaches in terms of going into more resort-type priorities, which we always decline because we believe our strength is going into five-star city hotels.”
But it is clear the Australian market would like a Peninsula Sydney given Aussie travellers account for 4-6 per cent of the company’s international business.