The Small Luxury Hotels of the World (SLH) moved its regional office from Sydney to Singapore this year. The SLH Singapore office will be headed by Mr Mark Wong, assisted by Mr Brandon Chan, both of whom have extensive experience in the hospitality industry.

SLH represents more than 500 hotels worldwide. The company currently has 100 hotels in the Asia Pacific region, with 20 in Australia and New Zealand. SLH will still maintain a presence in Sydney but the Singapore office will drive the business growth for the region. In Singapore, Naumi Hotel and Sentosa Resort & Spa come under the SLH banner.

It has expanded its team to grow its network, so as to deliver more business from the region to its hotel.

"Our goal is to grow our network and grow our business for our hotels," said Mr Paul Kerr, CEO of SLH. He noted that the luxury travel market took a hit last year but is confident that business will bounce back, with the region leading the recovery in the sector.

Demand for luxury hotels will remain

2009 was a tough year for SLH. The company saw a 17 per cent drop in revenues, as compared to 2008. "It wasn't a good year for anybody," said Mr Kerr. Its average rate declined 20 per cent from 2008 to US$320.

Mr Kerr, who is looking at a five per cent growth this year, said he was not unduly worried about any long-term impact of the global financial crisis on the luxury market, and in particular how luxury is perceived.

New wealth in new regions

The SLH customer has not changed fundamentally. The profile of an SLH Club member is usually an American or British traveller, who is on average between 45 and 60 years old.

Of customers currently coming through the SLH system, British make up 25 per cent and another quarter comes from the US.

"The interesting fact - and I only know the business that comes through SLH - the biggest business that goes to hotels direct is usually British. That's true across our hotels around the world," said Mr Kerr.

However, this could change over time, he admits. "Post-financial crisis, this has to change. There is overwhelming evidence that the new wealth is in Asia and Brazil and Russia."

Asked if SLH would alter the way it selected its hotels to attract these new customers who might want a different experience, he said, "People aspire to the same things - good service, good quality. If anything, standards have to be higher because I think people in Asia are less forgiving."

2009 - A tough year

Last year, SLH added 65 hotels, and lost about 40. In a tough year, particularly for the luxury market, some hotels went broke, some closed down for alternative use and some switched brands.

"Very few - and perhaps that's a testament to our choice of properties - part company because they are not up to scratch," said Mr Kerr. "If people leave us, it's mostly due to payment.

"We are quite lenient and considerate and we recognise our members' problems but if there is non-payment, we cut off the reservation system."

As for those who switch brands, Mr Kerr said, "I don't take it personally. Some switch to us, so all's fair."

He counts among his closest competitors Design Hotels, Leading Small Hotels Of The World and Relais & Chateaux. He feels Relais & Chateaux probably comes closest, but says that because they are more focused on food & beverage, their room product is not as good as SLH's.

"It's hard to make money out of F&B in hotels - it's more of a marketing cost than a profit centre, unless you do big weddings. If a hotel concentrates on F&B, it's hard to be a profitable hotel," he explained.