Two years after spinning off from Hong Kong-based Far East Consortium, public-listed Kosmopolito Hotels International has rebranded as Dorsett Hospitality International, promising a mix of Asian and British cultures in all its properties.

Winnie Chiu, president and executive director of Dorsett Hospitality (pictured left), said the rebranding was aimed at achieving “strong brand recognition, alignment of the brands and strengthening of the overall brand presence.”

The blending of British and Asia is also in keeping with the group’s history – it is headquartered in Hong Kong, the centre of British influence in Asia for decades and the group is currently actively expanding in the region.

“Sometimes it takes the intertwined stories of two cultures to bring out the extraordinary,” added Chiu.

Dorsett Hospitality International, which was launched in September, comprises three brands covering different market segments:

However, she reiterated Dorsett’s strategic focus is still on the “Chinese Wallet”, which is to tap the huge Chinese outbound market that has provided busness growth for its four star properties.

She believes the rebranding of the hotels will go down well with the Chinese market as there are Chinese elements in all its properties, for example in the room design, its own brand of Chinese tea and porridge for breakfast. There are also plans to employ mainland Chinese to work in the hotels to cater to Chinese guests and make them feel at home.

Chiu also does not think there will be any identity problems with the name change as the hotels have been operating as Dorsett and Silka since the group was operational, and not under the “Kosmopolito” brand.

Dorsett Hospitality now owns and manages 18 hotels in mainland China, Hong Kong and Malaysia. Eight properties are scheduled to open within the next two years under the three brands –  mainland China (2), Hong Kong (2), Singapore (1), Malaysia (1) and UK (2). Total room inventory is 4,873 rooms, and 95% are owned by Dorsett Hospitality.

Pictured right: Silka West Kowloon Hotel Hong Kong

The two hotels in London – Dorsett London in Shepherd’s Bush and The Matrix London at Aldgate High Street – marked the group’s foray outside of Asia. Dorsett London, converted from a theatre, is expected open in the first quarter of 2014. The Matrix is an existing office building and is also slated for a 2014 opening.

The acquisiton of these two hotels is also in line with the “Chinese Wallet” strategy as the UK is attracting an unprecedented number of Chinese tourists

The group has recently rebranded the former 264-room Yue Shanghai Hotel into Dorsett Shanghai. The 285-room Dorsett Singapore (pictured below left) is slated to open in the first quarter of 2013.

Despite the competitive environment and as a relatively new kid on the block the company boasts the highest profit margins among its peers at 64%, “which is rare in the industry,” as Chiu puts it.

Occupancy is healthy too, with region-wide average of 79% in 2011 and expects to end this year at 83%.

Chiu attributed the good showing to a number of factors, among them room cost efficiency and low staff to room ratio of 0.46%, the staff’s hard work, innovation and a wide range of products that cater to all segments of the travelling public.

“Innovations and being different in how we offer our products play an important part too. For example, we’re the first to convert an industrial building in Hong Kong and a theatre in London into hotels.”

Three factors that also worked in Dorsett’s favour are its focus on values and mid-scale hotels, its combined role as owner/operator/developer, and its Chinese DNA.

Another trait Chiu is known for is her ability (and sometimes speed) in which she sells an existing property when the offer price is right and acquires another just as fast. When asked if the disposal of hotels for profit affects the brand or morale of the staff, she said it would not as it was part of the company’s organic growth and acquisition strategy.

“We sold Dorsett Regency Hong Kong for HK$800 million in September with a record gain of HK450 million after offsetting the hotel book cost. We then utilised the proceeds from the sale to acquire The Matrix in London, as well as use them for future investments in Hong Kong and overseas. Although we sold off the asset, the staff remains the same as we usually continue to operate the hotels under management contracts like Dorsett Regency Hong Kong.”

Chiu also dismissed suggestions that the group is expanding too fast and may lose focus.

“We have remained focused, which is on developing and managing three and four star properties to capture untapped potential in major Asian cities. We only go to British colonised countries due to familiarity with the legal systems and land issues. We believe in ‘pocket growth’ that is in acquring properties in cities and not spreading resources to areas like beach destinations.”

She is also striving for a standardisation of operations. “We’ll look at management for Dorsett, affiliation for d.Collection and franchise for Silka. I have big aspirations for Silka.”