This Hotelier Sets a High Benchmark for Raffles Hotel Singapore
Christian Westbeld: “Rates should always be connected to the value proposition and how special you make the guest feel for the amount of money he or she pays.”
By Raini Hamdi 22 December 2022
Raffles Hotel Singapore is enjoying the highest average daily rate (ADR) and guest satisfaction index in its 135-year history, according to its managing director, Christian Westbeld. His next goal is to benchmark the grande dame against other leading hotels in world cities such as Tokyo, London, Paris and New York.
If successful, it may help correct an anomaly. Rates of luxury hotels in Singapore are lower than in world cities. This, despite the republic being ranked the most expensive city to live by the Economist Intelligence Unit, a dubious top spot it shares with New York this year. The Singapore government questions the survey (read: Is Singapore really the most expensive place to live?)
World cities, save for Hong Kong, have all enjoyed rate increases this year over 2019, according to HotStats data on a selection of six world cities, namely Dubai, New York, London, Singapore, Hong Kong and Paris.
Of the six, the ADR of Singapore luxury hotels is the second lowest, surpassing Hong Kong which is the only city where the ADR of luxury hotels has dropped this year compared with 2019. But as Hong Kong eases border controls, the ADR can be expected to return to 2019 levels, which was higher than Singapore and was more in line with London and New York.
HotStats data also shows that while Singapore luxury hotels have enjoyed an increase in ADR this year, over 2019, their gross operating profit has not reached pre-pandemic levels although it’s near the mark.
Singapore overall hotel prices average $210 (S$284) a night in September, the highest in 18 years, latest Singapore Tourism Board figures show.
Singapore luxury hotels average rate, meanwhile, is $359 (S$485) in December, booking figures from Trip.com show. Raffles, an all-suite hotel, has an average rate of $1,184 (S$1,600) this month.
Raffles has been on a “rate increase journey” since it reopened in August 2019 after more than two years of renovations, said Westbeld. The hotel remained open during Covid-19, with Westbeld doubling down on staycations.
“Post-pandemic, we have noted a further increase in rates and guest satisfaction index. This is important, because rates should always be connected to the value proposition and how special you make the guest feel for the amount of money he or she pays.
“We now have the highest ADR and guest satisfaction index ever in the history of the hotel. The increase is progressive, not erratic, which gives us the feeling it is here to stay,” he said.
Since May, occupancies have returned and at times have exceeded pre-Covid levels, although he declined to divulge any figures.
Flying Colors
Westbeld was appointed general manager of the hotel in 2017. Having overseen the hotel’s renovation, led the business through the pandemic with flying colors, and earned a string of awards for Raffles, his confidence to benchmark Raffles against the best in the world is soaring.
“Global travelers go through destinations such as New York, Tokyo, Paris and London on a frequent basis. These are destinations that could command high rates. We would like to be seen as being on par with them. It is our aspiration to be recognized as a global leader in hospitality which creates experiences that are being talked about globally,” said Westbeld.
Raffles is a unique product with exquisite facilities and rich history, but it is also modern, fun and relevant, a positioning Westbeld has polished since its reopening in 2019.
“Two years of the pandemic has shown us all that the true core of hospitality is first, to look after your guests and make them feel safe and comfortable, then create unique experiences and entertainment. As well, read and understand your guests, so you can build the personalization around them and make them feel they are in a special place,” he said.
During the pandemic, Westbeld led the team to create an exhaustive list of experiences which guests could book as part of their staycation packages. An interesting one was the interactive gameplay, The Curious Case of the Missing Peranakan Treasure. Guests began with the virtual play from the comfort of their suite, before moving through checkpoints across the hotel to receive clues that would lead them to solve the whodunnit. Raffles collaborated with Double Confirm Productions and Sight Lines Entertainment for the interactive play.
Another hit was working with a local food guru, KF Seetoh, to present a series of pop-ups with local hawkers at Raffles Courtyard.
“A lot of hawkers had to shutter their stalls during Covid-19. They were driven by the lunch business, which was gone. So to support them, we worked with KF Seetoh to bring them to Raffles Courtyard. The two-week activation was full every night with the hawkers’ own followers and ours,” Westbeld said.
Other experiences include a private tour of The Intan, a Peranakan home museum, to discover the hybrid Chinese/Malay culture that’s unique to this part of the world, and a bicycle trail that offers insights into how the history of Raffles is connected to that of Singapore.
“These experiences were engaging for local customers and we’re keeping most of them for the international travelers,” said Westbeld.
Covid-19 was a great opportunity to showcase the hotel, which is a national monument, to the local community after its closure from 2017 to 2019 for renovations. They responded, which kept the hotel profitable during the crisis.
“Raffles is a Singapore icon. We love for every Singaporean to feel an emotional connection to the hotel and to be proud of it,” said Westbeld.
Next Step
The next step is rekindle the desire of the international market to come and stay at Raffles.
“We reopened after renovations a few months before the pandemic appeared. Guests read about the restoration but didn’t have the opportunity to see what we have created. People stayed closer to home for more than two years and our communications was focused inwards on staycations. It’s important for us to pick up where we left off, shift into the final gear and push it over the finish line to welcome the world to stay with us,” said Westbeld.
The hotel’s traditional markets such as Europe, the US, Australia and the UK have returned but other important sources, such as Japan, have not. There are also new markets, such as South Korea, to cultivate, he said.
China isn’t a top producer for Raffles but Westbeld said it’s important to have Chinese travelers back in Singapore.
“It provides the base for the city and will also assist us with the Raffles arcade and our F&B. We have 10 restaurants and bars which are not so-called ‘hotel restaurants’ but are seen as unique and independent. We’re seeing the next-gen at our Chinese restaurant and Writers Bar. We are relevant and cutting edge, and we will continue to stay that way.”
Footnote Following the article, Do Superhero Hotel General Managers Exist?, Hotels-Asia is delighted to regularly feature hoteliers whose leadership gives a resounding yes to the question