The Interview with Mariá Zarraluqui

Hotelier Indonesia: Q&A

The Interview with Mariá Zarraluqui

1. We understand that you have signed more than 110 hotels worldwide over the last 3 years, how do you observe and discover a new & potential market (a destination or a country) that Meliá Hotels International can enter?

We take a strategic, long-term perspective to achieve sustainable growth. International expansion has always been and will remain a fundamental basis of our strength. Meliá Hotels International was the first international company to open a hotel in Nusa Dua (Bali) and was also one of the pioneers in several leading destinations in the Caribbean, such as Cancún, in México, and the Dominican Republic.

Before entering a new market, we will always do extensive research. These evaluations will give us a clear assessment of the market volume, its growth potential – in the short- and long-term – as well as the infrastructure in the area.

And when we enter a new market, we make sure to align with strong local partners who have deep knowledge of the market. We have always sought symbiotic relationships with partners that we can trust, and with whom we can build our success. In Indonesia we have done just that, where we still keep strong connections with our partners from 30 years ago.

2. What are the challenges the company faces when entering a new market and how do you overcome these challenges?

Entering a new market brings both challenges and opportunities. We must do extensive research before entering each new market or country, ensuring that we thoroughly understand how Meliá Hotels International best fits into this market and how we can position our properties in a beneficial and profitable manner.

As I mentioned before, it is essential to find strong local partners to help navigate the many challenges that accompany establishing a hotel in a new market.

3. We understand that Meliá has 7 different brands, each with their own distinctive features. How do you identify and decide on a specific brand for a new hotel? Do you discuss with the property owner, or do you make the decision independently?

Meliá Hotels International has 7 different brands, this diversified brand portfolio allows Meliá Hotels International to target a wide variety of travellers, including business travellers and the new generation of millennials. For each demographic and psychographic segment, we have a hotel brand that will suit the experience customers are looking for and fulfill their expectations. Thanks to such a brand strategy, Meliá Hotels International can not only differentiate from the rest, but also cater to a definite customer profile and gain their loyalty.

In addition, we always work closely with the property owners to ensure we are bringing the most appropriate brand to the target market. Each new hotel brings its own unique situation and circumstances and we decide on the brand based on an in-depth analysis of the market and what fits best for the particular property.

4. With 5 existing hotels in Indonesia and 10 more hotels in the pipeline, what makes Indonesia important for Meliá Hotels International? How do you regard the Indonesian market?

Indonesia is the most important market in APAC for Meliá Hotels International. Indonesia has always been closely linked to our global expansion strategy – we opened our first international hotel in the country more than 30 years ago.

We currently manage 5 hotels in the key destinations Jakarta, Bali, Yogyakarta, and Makassar. 10 hotels are currently in the pipeline that will add approx. 2,000 more rooms over the next two years in important destinations for both the international and domestic market such as Bintan, Surabaya, Lombok or Pekanbaru.

In the near future, one of our goals will be to establish clear brand positioning by developing tailored marketing plans that speak to both international and Indonesian audiences. We see a lot of potential in the hospitality industry in Indonesia and we look forward to expanding our operations in the country.

5. How does Meliá Hotels International see the growth of the hospitality industry in Indonesia?

The outlook for the Indonesian hotel industry is very promising. Aside from being Southeast Asia’s largest economy, Indonesia has abundant natural resources and continues to be a key tourism hub.

These aspects have helped pave the way for increased tourism in Indonesia. According to Indonesia’s Ministry of Tourism, the number of international visitors to Indonesia in 2016 has increased by 10 million when compared to 2015. Also, we can’t forget the domestic market that has been growing exponentially and reached more than 250 million trips since 2014. There’s also a healthy pipeline of hotel construction and the government has invested in building the requisite infrastructure to help support this growth.

We couldn’t be happier that the country as a travel destination is on the rise. Melia Hotels International has had the pleasure to be part of Bali’s development since the 1980s and we are excited to continue to grow alongside Indonesia in the coming years, working on consolidating our position in the country, which will drive efficiencies and capture greater market share.

6. What’s your strategy to make Meliá Hotels International become the main player in the industry in Indonesia?

Our development strategy for Indonesia, as with everywhere else in the world, is based on long-term partnerships. A proof of this is our strong relationships with some of our Indonesian partners, with whom we have been together for more than 30 years and manage hotels across Indonesia and Malaysia.

Our growth strategy focuses on achieving sustainable growth over volume, and identifying the right opportunities with the right partners in the right locations. Another facet of this growth strategy is our commitment to invest in the renovation and repositioning of our hotels.

Our philosophy and values as a family-grown company, and our impeccable track record over the years in hotel management consistently make us the leading choice for hotel owners in Asia.

7. What are the core values of Meliá Hotels International? How do you communicate the core values to your team, partners and customers?

Meliá’s core values are founded on our family nature and values, honed over 6 decades in the industry. At our heart, we are Spanish company and we are deeply proud of our heritage. As a Family-grown and globally established hotel group, we have a passionate and attentive service culture inherited from our Spanish origin and we remain devoted to creating unique memories for our travellers in their home countries and beyond.

Our core values encompass the following:

Service vocation: because our guest is our reason for being

Excellence: because we do things right: with professionalism, efficiency and agility

Innovation: because we anticipate and evolve to be better every day

Proximity: because we love to share, listen, and feel

Consistency: because we do what we say

Over the past 60 years, we’ve grown from a small company to a multinational group with nearly 100,000 rooms in 43 countries. Yet we’ve never lost our family spirit or values. It is precisely thanks to these values, and a united and talented team, that we have been able to achieve sustainable growth and maintain our global leadership.

From the very beginning, our Chairman and Founder, Mr. Gabriel Escarrer, had the aim to create shared values within the communities, and we are proud to say that we have achieved this goal. We now have over 42,000 employees in 43 countries, and our efforts have been widely acknowledged. In June earlier this year, we earned the recognition of being the travel and hospitality company with the best reputation in Spain for the 4^th consecutive year from the prestigious Business Corporate Reputation Monitor (Merco).

In each country that we operate in, we have embarked on a journey to design a consistent service culture across our brands, all in an effort to activate all guest touch points to deliver a unique and differentiated experience.

8. Lastly, what are Meliá Hotels International’s plans and targets for the Indonesian market in the next five years?

We remained committed to growing our presence in the Indonesia market. We will continue to grow our existing flagship brands in established tourism destinations in Indonesia including Gran Meliá in Bintan and Meliá in Lombok.

In addition, we will introduce new brands to cater to both demographic and psychographic travellers in the growing premium and upscale segments. We will be introducing two new brands in the country in 2017.

• INNSIDE – Urban hotels, each with its own character, design and aesthetic, and very much a part of the local environs. These hotels will allow guests to effortlessly combine work with leisure during their stay.
  • INNSIDE Yogyakarta is set to open in July 2017
• Sol House – Chic and stylish resorts in popular resort destinations that target the millennial generation. Beyond the amenities and great location, these hotels are also about the experience and connecting socially.
  • Sol House Bali Legian, will open in March 2017

With these new properties and brands, we aim to cater to a wider group of domestic and international travelers through a more diverse brand portfolio.

The upcoming pipeline for Indonesia properties includes 10 hotels:

Sol House Legian, Meliá Bandung, INNSIDE Yogyakarta, Meliá Pekanbaru, Meliá Surabaya, Meliá Ubud, Meliá Lombok, Sol House Jimbaran, Gran Meliá Bintan, and Meliá Bintan.