Aging gracefully and growing gradually

Profile | Reto Wittwer

Even as many international hotel groups are mushrooming all over China, one of the world's oldest luxury hotel brands is taking the path less traveled.

"We will never have more hotels than the age of our company," says Reto Wittwer, president and CEO of Kempinski. Wittwer was on a visit to China to supervise recruitment recently.

Established in 1897, the German brand has only about 75 hotels worldwide, with 18 established in China.

"Everything related to luxury is limited, be it a watch, a car or a hotel. And when it goes beyond a certain number, then it will become a mass product," he says.

Kempinski will keep the number of its hotels in China to about 25, even in the long run, so it can ensure the quality of service in the world's second-largest economy.

"It means we have to become better and better and we will take out those hotels ranked at the bottom in terms of quality."

Another measure to keep service quality from being detracted is to establish a new brand.

A partnership with the Beijing Tourism Group, the first hotel under the brand NUO is expected to welcome guests in 2015.

Witter says the new brand is to satisfy the growth potential of the Chinese market. But the Kempinksi brand will have its unique selling propositions.

"You want to see the same thing when you travel? Of course not. So every Kempinski is different, and that makes us unique," says Wittwer.

As China is also becoming one of the world's largest sources of outbound travelers, Witter says he is making sure "where there are Chinese guests, there are Chinese employees", and he says the percentage of Chinese staff in all Kempinski hotels is growing year by year.

Although he admits there are visa difficulties, especially in Europe, Wittwer says he is negotiating with the German government and the European Union to demand an increased quota.

"People think luxury is all about brands and goods, but that is not the case. Luxury is to enjoy your life because you only live once."

Wittwer says no country in the world has so many modern luxury and new five-star hotels like China, which is both good and bad.

The sheer number is forcing five-star hotel rooms to sell at three-star rates, and that will hurt the industry.

"Luxury has a price. If you go to a Bentley or Rolls-Royce shop, they will not give any discount."

He says there are some countries where hotels which charge lower rates will be demoted in the hospitality ranking system.

"That may work in China," Wittwer says.

lifusheng@chinadaily.com.cn