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14. Jun . 2008

AAG activities & prominent Alumni
 

Posted by: AAg Office
Expanding a 'fellowship' of fine living
By Sonia Kolesnikov-Jessop
The New York Times Media Group
14 June 2008
International Herald Tribune

SINGAPORE -- In 1954, eight hotel and restaurant operators situated along the highway from Paris to Nice decided to market their properties together.
They published a four-page leaflet entitled ''Route du Bonheur,'' or Road of Happiness, and stated on the cover that it would one day go around the world.

The Route du Bonheur became Relais & Chateaux, a self-styled ''fellowship'' of boutique hotels and gourmet restaurants, and it does indeed now span the globe, with 475 members in 55 countries.

The not-for-profit association's most recent push has been in Asia, with additions that include hotels in Cambodia (Heritage Suites Hotel in Siem Reap) and India (the Malabar House in Kerala, Mahua Kothi in the Bandhavgarh National Park and Le Dupleix in Pondicherry).

''We used to have about 10 members in Asia, all in Japan. Now we have 35, and I bet you that in four or five years we'll have about a hundred in the region,'' said Jaume Tàpies, the 40-year-old Spaniard who is president of international operations at Relais & Ch‰teaux, on a recent trip to Singapore.

Being part of the fellowship does not come cheaply. Membership costs on average €14,000, or $21,500, a year, depending on the size of the property.

For that, members are promoted in the annual guidebook and on the association's Web site, which offers a centralized information and reservation system.

Together the members of the association had annual sales of €1.4 billion in 2007, and Tàpies estimated that about 13 percent of its revenue was generated by memberships. In 2008, Tàpies said, the chain will generate €45 million from the central reservation system and another €19 million in sales of gift certificates.

Tàpies, who said with a laugh that he would ''pay'' to do his job because of the access it affords him to the world's best properties, seems to have prepared all his life for it. A 1989 graduate of the renowned Hotel Management School in Glion, Switzerland, he was deputy general manager of the Chewton Glen hotel in England until 1992, when he took over the family business: the hotel El Castell de Ciutat in La Seu d'Urgell, Spain, which he runs with his wife.

He became a director of the Relais chain in 1993 and secretary general in 1997 before assuming his current post in 2005. He is also a three-time Spanish champion of cross-country skiing, and a private pilot.

Relais & Chateaux aims to be a fairly exclusive club, Tàpies said, with new members vetted by a team of undercover inspectors. While the association does not ''prospect'' in Europe and the United States, he said, because too many potential members already apply to join, Relais & Ch‰teaux has had to take on a more proactive stance in Asia, where it is still fairly unknown:

For the first time last year it approached potential members.

Still, only about 10 percent of applications are accepted each year and membership is not for life: Members are frequently inspected and each year about 20 to 30 members are dropped, having been found below Relais standards.

''Last year, we visited 157 properties in Asia, including 50 properties in Australia and New Zealand, and only 11 were contracted,'' Tàpies said.

But while its competitor chains like Small Luxury Hotels of the World and Leading Small Hotels of the World focus solely on luxury boutique hotels, Relais & Ch‰teaux, true to its roots, casts the net wider to include stand-alone restaurants. That policy has its drawbacks. ''They are less
focused, so there is a risk of diluting the brand,'' said Milton Pedraza, chief executive of the Luxury Institute, a market research firm in New York.

And, like all brands, Relais & Ch‰teaux depends on building name recognition - an area where Pedraza said the chain was suffering in certain parts of the world, even in the United States, where it has 45 members. The institute's recent Luxury Brand Status index of 23 hotel and resort brands in the United States did not include the Relais brand because not enough of the wealthy respondents were familiar with it. Small Luxury Hotels of the World ranked first.

The chain is planning to increase its profile in large international cities like Barcelona, Milan and Tokyo by opening one-stop shops they call Maisons.

Similar Maisons, where customers can browse books and brochures, book tickets and buy gift certificates, recently opened in London and New York, at a cost of $1.5 million.

''Even though they're a highly respected brand, they're extremely 'boutique,''' Pedraza said. ''But because French luxury has such high credibility, they have a wonderful opportunity in Asia.''
 


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