19 Nov 2015
Words Brooke Kelly

ESSENCE of innovation and hospitality

Silver Needle is the finest and most exquisite of all white teas.  Gathered for only a few days in early spring, it takes more than 4,500 hand-sorted buds to make just 500 grams.  Representing the precious essence of hospitality, its name now signifies a progressive young hotel group with an innovative approach to growth in Asia-Pacific, SilverNeedle Hospitality.

Though a relative newcomer, SilverNeedle Hospitality is endowed with impressive provenance.  It was founded in Singapore in 2011 as a solely-owned subsidiary of Nadathur Group, the private investment firm of N.S. Raghavan, co-founder of NASDAQ-listed Infosys Technologies.

Its launch pad was the acquisition of Australia’s Constellation Hotels, a respected operator that had just won the HMAA’s coveted Hotel Chain of the Year Award.  Constellation brought established brands Chifley, Australis, Country Comfort and Sundowner and a 60-strong portfolio of hotels, motels, resorts and apartment buildings.

SilverNeedle also acquired a Bangkok-based hotel management company, Ativa, which contributed up-market boutique hotels in Thailand, Cambodia and Laos.  The plan was not only become one of the major regional hotel industry players, but to shake up the sector a little with a cutting-edge approach to accommodation services.

Their philosophy is expressed as “innovative ideas, flawlessly executed”.  SilverNeedle Hospitality is headed by Managing Director and Group CEO, Iqbal Jumabhoy, who came to the group from Rendezvous Hospitality Group, where he was CEO.

Helping him to drive growth is Australian Andrew Turner, an industry veteran who was 14 years with Mirvac Hotels and Resorts, where he ended up as CEO.  Now Singapore-based as Executive Vice President, Business Development, he says SilverNeedle Hospitality aims to expand to 100 hotels across Asia-Pacific within three to four years.

“We are an integrated hospitality investment, management and development company focused on mid to upscale hotels and resorts that are intelligently designed and operated for the professional and leisure needs of the business traveller,” Turner says.

“Currently we operate 60 hotels with over 4,000 keys and employ around 1500 staff.”

If you were wondering ‘what’s next’ for this growing operator, you’d be right.  NEXT Hotels is indeed the ‘next generation’, a new flagship brand targeted squarely at the modern business traveller.  And, again, Australia has provided the starting point.

In 2012, SilverNeedle Hospitality bought the freehold of a Brisbane hotel landmark, The Chifley at Lennons, which it already operated.  Then it set-about a radical rebuild of the prime CBD property fronting Queen Street Mall, to develop the world’s first NEXT Hotel.

It was a bold move to usher in what would be their flagship upper-scale brand.   When the 304-room hotel opened last year, SilverNeedle’s core value – innovation – was delivered in spades.  So too the NEXT brand’s promise, “designed to make your time count”.

This is the first hotel were guests, by downloading the NEXT App, can use their smartphones as room keys, to check-in and check-out, to control their air conditioner, lights and entertainment system, even order room service. 

Or, if they prefer, they can use the Samsung Galaxy S4 provided in every room.  This device, loaded with local information for visitors, also allows free local calls, cheaper international calls, and can be taken out of the hotel so you can receive calls on the move.

Wi-Fi is not restricted (a necessity, not a luxury), the mini bar includes four free items daily, and a Club Lounge provides snacks and drinks all day, as well as baggage lockers and sleep and shower pods for those who might land early, before check-in time.

Turner says SilverNeedle Hospitality is justifiably proud of its new NEXT Hotels concept, seeing it as providing the company’s key growth opportunity.

“We live in an age where choice, personalisation, speed and value are paramount.  Innovative strategies and technologies are vital to create greater choice, flexibility and control for our guests.”

Currently SilverNeedle is in a joint venture with a major Sri Lankan retail corporation to develop the US$150 million mixed-use Colombo City Centre, which will include a 200-room NEXT Hotel.  More NEXT Hotels are in the pipeline for Australia too.

“Our main path to expansion in Australia will be through hotel management, and we in negotiations with property owners to operate hotels in locations including Canberra, Melbourne and Perth,” he said.

SilverNeedle Hospitality will also introduce its second new brand in Brisbane.  Their first Sage Hotel will occupy a converted 1902 department store and office building now undergoing renovations in Fortitude Valley.

The 4-star boutique Sage brand has been conceived to “make things uncomplicated for the conservative business traveller”, focusing on “simplicity, familiarity and consistency.”

Turner says a purpose-built Sage Hotel is also under construction in Perth, due to open in March next year, and others are planned for Adelaide and Wollongong where existing Chifley properties will be refurbished and relaunched.

“The Chifley brand, signifying classic comfort, quality and warm service at a fair price, will certainly remain important, but increasingly it will be a serviced apartment brand,” he said. 

“Our other major brand, Country Comfort, which has a long history in Australia as a respected three-and-a-half-star chain, will be refreshed and relaunched.  We see excellent opportunities for Country Comfort to expand across Asia, in countries like Thailand and Malaysia.”

Also in the company’s portfolio is its SilverNeedle Collection, independently owned, luxury boutique hotels and resorts offering unique and authentic experiences in destinations including Bangkok and Chiang Mai in Thailand, and Luang Prabang, Laos.

“We are looking for opportunities to add to this signature collection in Australia, with five-star boutique hotels and resorts in outstanding locations,” Turner confirmed.

Headquartered in Singapore, SilverNeedle Hospitality has regional offices in Bangkok, Bangalore and Sydney.  They say the dynamic growth in Asia, where large segments of the population are becoming increasingly affluent, make it a major target for expansion.

But the group also wants to continue its spread in Australia.  As both owners and managers, SilverNeedle will utilise the gamut of industry models to pursue growth.

“While acquisition was the catalyst for the company initially, and we are open to development opportunities, we are primarily focused on adding established properties to grow our footprint,” Turner said.

“However, we are flexible in our approach.  We also own a number of management rights in Australia, on the Gold Coast, Sunshine Coast and in Newcastle, and we are working with developers in Australia who are producing more serviced apartment products.

“We are also looking at a franchising model to grow our Country Comfort brand in Asia.”

Here in Australia, SilverNeedle Hospitality’s NEXT Hotels brand debut made a big impact, standing out from the crowd with its high-tech design and concept.  But Andrew Turner reminds us that simple pleasures – just as the traditional welcoming gesture of the offer of a cup of tea – are fundamental to hospitality excellence.

“Making sure our service is consistent and convenient is the key.  Technology is one way of delivering innovation, and a very important one.  But every element, from room design to our state-of-the-art bed system, and our very innovative and interesting food and beverage offerings are critical to hospitality excellence,” he said.

“With NEXT, we are the first, but that will change.  Being innovative means always striving to stay ahead, being nimble and responsive to guest needs, and setting the pace.”