Pan Pacific Hotels Group’s global asset enhancement initiative has progressed into Australia, where properties are being scaled up to match elevated brand standards and evolving customers’ expectations. CEO Choe Peng Sum reflects on the process
Three of your six properties in Australia have recently completed significant renovations. What motivated your asset enhancement initiative (AEI) in Australia?
The answer to this starts way back. Pan Pacific Hotels Group (PPHG) is a baby when compared against the big boys (other global chains). Yet, this baby has grown over the years to own and manage over 50 properties across Asia Pacific, North America, Africa and Europe.
We constantly tell ourselves that each of our property must punch above its weight. How do we do that? Through asset enhancements. An opportunity came right in the heart of the Covid-19 pandemic, when occupancy was lower. It was the best time to renovate.
It was then that we looked into version two of our brands and the required hardware to match. Pan Pacific London (in the UK), which opened in September 2021, become representative of the new Pan Pacific brand while the Parkroyal Collection Marina Bay (in Singapore), which opened in December 2021, become representative of the new Parkroyal Collection brand. All openings that followed adopted our vision of brand version two.
Since then, we have renovated and opened about 14 Pan Pacific hotels, 10 Parkroyal hotels, and three Parkroyal Collection hotels.
The majority of our properties are in Singapore and this part of Asia. Once we were able to establish version two of these properties here, we knew it was time to look at Australia, where we have six owned and managed properties.
It is a no brainer that our next big AEI investment must be for Australia because the country has done so well in tourism after the pandemic. International arrivals into destinations like Sydney, Perth, Brisbane and Melbourne are great, and the state authorities are investing so much into tourism development.
According to the Australian Trade and Investment Commission, international tourist arrivals are expected to rise by 41 per cent between 2024 and 2028. Arrivals from Singapore alone have grown by over 40 per cent between 2022 and 2024.
How much was invested in your Australia AEI?
We pumped close to A$55 million (S$35.8 million) into completely transforming Pan Pacific Perth. That’s a huge price tag because Pan Pacific Perth is a big box project – with 488 guest rooms and suites, it is the largest of PPHG’s six properties in Australia.
Designed by renowned FDAT Architects, the hotel’s refreshed interiors, redesigned lobby, and elevated Pacific Club Lounge draw inspiration from Western Australia’s natural landscapes. Sustainable design was integrated into the transformed Pan Pacific Perth – decorative panels were made from repurposed denim, hand-pressed natural herbs, and 100 per cent recycled plastics.
Pan Pacific Perth now represents brand version two in Australia, just as how Pan Pacific London is for the brand in Europe, Bellustar Tokyo, A Pan Pacific Hotel is in Japan, and Pan Pacific Jakarta is in Indonesia.
Our AEI investment also covers Parkroyal Melbourne Airport – it recently completed a comprehensive enhancement of its 276 guestrooms, conference facilities, and public areas. Business at this hotel is booming, thanks to corporate meetings. It runs with an average room occupancy of 80 to 90 per cent most of the time.
We also took Parkroyal Parramatta, Sydney through significant upgrades, including the revitalisation of its 286 guestrooms and event spaces. The hotel stands in Sydney’s second CBD, which is absolutely buzzing.
Our AEI in Australia so far has cost us about A$100 million. It is necessary to ensure each property evolves in step with changing consumer expectations and elevated brand standards.
What was the most crucial change made in those three transformation projects?
It would have to be our transformation to make the most of the business events market.
Australia’s business events industry is forecast to grow at a robust 11.5 per cent from 2024 to 2032, reaching US$42.8 billion. Melbourne and Sydney continue to lead as key hubs for business events, presenting a strong opportunity for PPHG as it expands its offerings to meet the demands of both leisure and business travellers.
Pan Pacific Perth’s 2,500m2 convention floor, which is the largest in the city, has been upgraded with advanced LED screens and cutting-edge audiovisual technology. Those LED screens wrap around from wall to wall, and are able to move with the walls when the space is reconfigured. We have also invested in the best sound system available and engaged Encore (an Australian audiovisual specialist) to leverage its production expertise.
The hotel’s launch party in May put up a really great show on the convention floor, and the Lord Mayor of Perth City Council was impressed with what our venues and event technology could do.
We also put money into upgrading the function rooms at Parkroyal Melbourne Airport and Parkroyal Parramatta.
The business events market across the world is growing as well, which is why we intend to make every ballroom and events space in all our hotels top of the line through the ongoing global AEI.
What plans are there for the other three properties in Australia?
Well, we want every property to be representative of brand version two, but there are considerations to be made.
When we acquired the property that is now Pan Pacific Melbourne (opened in 2017), we invested in a multi-million-dollar refurbishment with the help of Chada, one of the world’s premier interior studios. The upgrade gave the property a stylish and comprehensive facelift, keeping in line with its location at Melbourne’s iconic South Wharf. The hardware still looks excellent today, so we will review the need for an AEI down the road.
We opened Parkroyal Monash Melbourne in 2021, so it is still new.
Our sixth hotel in Australia is the Parkroyal Darling Harbour, Sydney (opened in 2011). I cannot say now, but watch out for some exciting news to come.
What other development plans does PPHG have for Australia?
We want to introduce our Parkroyal Collection brand to Australia. We believe that this brand, with its strong sustainability promise, will resonate very well with Australian owners and Australian travellers.
I aspire to have a Parkroyal Collection hotel in Sydney, Melbourne, Brisbane, and Adelaide. Sydney and Melbourne are lively destinations, and I see huge tourism growth potential in Brisbane. Some people say Adelaide is a sleepy town, but to me, it is a hidden gem that has undergone an exciting revival.
I will have to work harder to get this brand into these cities.
What comes after PPHG lifts all properties into the next level of hardware and brand promise?
As we bring every product up to brand version two, they become testimony of our management ability.
We are very excited about the prospects of growing our management contracts. Now, owners call us up. In the past, we would call up owners, and they would not be familiar with our company.
Now, we can fly owners to anywhere with our properties and show them what we can do. They can choose what works best for them.
