What started as a small portfolio and a big dream is on the cusp of becoming a formidable player in Asia’s luxury boutique hotel landscape.
Alila Hotels and Resorts, which operates seven upscale properties in India, Indonesia, and Cambodia, has 17 new openings in the works that are expected to open during 2013, Mark Edleson, the company’s president, said in an email.
“It is the culmination of an incredible 10-year journey since we started out with a dream to run our own hotels with just the Chedi Ubud, Serai Manggis and a newly completed Alila Jakarta, which was the first Alila flagship hotel,” he said. “The two Alila resorts in Bali were subsequently renamed as we started our corporate (headquarters) in Singapore to grow our management company and build the brand. It is very gratifying to see that the ideals that we started with in the business have translated into commercial success for the Alila brand.”
That expansion has been opportunistic in nature, Edleson said. Whereas major chains can be more discerning in which regions they target for expansion, Alila has taken a flexible approach that has leveraged both new builds and conversions.
The majority of projects in the works are in China and Indonesia, but other possibilities include Portugal, Korea, Malaysia, Vietnam and Oman.In addition, the company operates two residential villa communities in Bali.
“We also find that many of our developments stem from new projects by our ongoing partners where there will be more Alila resorts in the country,” Edleson said.
With so many opportunities, company management has had to be selective.“It is critical that we do not overspend beyond the business potential for the project. Being a small boutique operator, we have to plan our resources well to grow our portfolio and our hotel teams simultaneously,” Edleson said.
The company also has had to turn some projects down.“We are proud to say that we have always managed to absorb and redeploy our management team when a hotel project fell through,” he added.
Unique brand, unique hotels
The name Alila comes from Sanskrit meaning “surprise.” It’s a good fit for the company, Edleson said, as each of its properties is intricately linked to the surrounding community and is therefore “surprisingly different.”
“Alila is an innovative brand that is design-driven and offers creative and exciting destination experiences,” Edleson said. “… They all have a strong architectural focus and are often quite distinct in their individual character and style.”
The focus on individuality has served the brand well, attracting a steady flow of travelers from Europe and, more recently, a growing base from the Asia/Pacific.
“Alila has gained much recognition with the opening of Alila Villas and Alila Diwa Goa in India. Positive word-of-mouth, evident in Alila’s ranking in TripAdvisor, has given rise to many development opportunities. We also see an emerging affluent market from North Asia, which is doing well for the Alila Villas brand while Australia and Europe continue to do well for Alila resorts in Bali and Goa,” Edleson said.
He expected most properties to achieve gross operating profit between 40% and 50% by year end.
10 years and on
Company management isn’t resting on its laurels as the company celebrates its 10-year anniversary. Edleson in the decade ahead wants the Alila brand to become synonymous with “the top boutique luxury operators in Asia.”
“We keep on the pulse of the latest development in design and living with the best young, cutting-edge talents and artisans to expand our presence in Asia, in both established and emerging destinations,” he said.
“We see the growth of branded resort residences to continue in Southeast Asia. The demand will come primarily from increasingly wealthy citizens and expatriates living in North and South Asia,” Edleson said. “As wealth continues to be created in Asia, the demand for leisure residences will increase. With our first European foray in Portugal, we are looking at private estates in France and the Mediterranean region.”
