When Hotel ICON was in the initial stages of planning, it was wary of the negative connotations that could be attached to a hotel that is owned by a school.
“We didn’t want people to think of it as a hostel and that they’d be served by students only,” said Richard Hatter, general manager.
So aware of the negative possible perceptions, it turned things around and started thinking of itself as “a pit stop in a Grand Prix race”, a well-tuned dress rehearsal as it were for students preparing for real life in the hotel workplace.
Today, a year after it fully opened, it proudly claims its status as “a hotel with purpose” – and customers are voting with their wallet. It’s running healthy occupancies of over 80% and average room rate from HK$2,400 up.
Of course, one could ask, could a Hotel ICON work anywhere else but in Hong Kong which has one of the region’s healthiest hotel businesses?
“We think it could work in conjunction with the hotel school concept in most South-east Asian developing countries, as well as Shanghai or even Singapore,” said Hatter. “Why not?”
So what’s the Hotel ICON model?
Opened in September 2011, it’s founded and owned by the Hong Kong Polytechnic University (PolyU) and is the world’s first co-located, co-lead programme offered in a teaching and research hotel.
Built at a cost of US$166 million, it comprises the hotel, staff quarters, campus and administration offices . The School of Hotel & Tourism Management, established in 1979, sits on the same complex.
The 365-strong workforce for the hotel comprises full-time staff and a body of students – 100 students throughout the year – who are part of the school intake. Students are trained for the industry, Hatter stresses. “We give them hands-on training and put them through internship programmes to get them ready for industry.”
Hatter, who himself is an Adjunct Professor, along with his executive team, said the combination of theory and practical within a working and commercial hotel environment was proving a winning formula in turning out quality talent.
“We are bridging the gap between what schools are turning out and what the industry is looking for. Students are taught by industry practitioners and we also work as an innovation lab for research and prototype projects.”
Said Hatter, “Our guests like the fact that we are a hotel with purpose, they see the greater good of us – that this is a new generation hotel training a new generation of talent.”
Beyond that, the hotel’s contemporary design also sits well with a younger, creative and entrepreneurial set of customers. “Our first guest was a 42-year-old Chilean self-made woman – she runs her own business with ties in Guangzhou. When she heard of our hotel, she checked out of the hotel she had been booked in and walked across the street.”
Hatter links ICON’s success to the fact that “it is relevant to people’s lifestyle” and “its thinking outside the box”.The strong design theme is seen throughout the hotel from its lobby to café (free wifi for everyone). There’s a suite designed by alumni Vivienne Tam and art pieces by Hong Kong designers are on display.
A vertical garden provides nice, green relief in the lobby atrium. There’s a food and wine academy where celebrity chefs are invited to showcase their skills with chefs from other Hong Kong hotels.
It has cleverly blended a club lounge with its Chinese restaurant. This lesson Hatter took from his career at Shangri-La Hotels & Resorts where he saw that club lounges were really only used at breakfast and evening times and the space went to waste. “So we created a hybrid area where guests, if they arrive early or have a late departure, can freshen up.”
“On the 9th Floor where the health club and spa is located, we have something called ‘Timeless’. It’s for travellers on longhaul flights who arrive early in the morning or depart late at night to lounge around in,” says Hatter.
Its food & beverage outlets are a success with waiting lists for seats at the Market. It has a purpose-built wedding venue and in November alone, it will hold over 12 weddings.
Hotel guests are split 60% men and 40% women, and it does only FIT business. Market mix is Australia 14%, UK 15%, US 20%, China 15-20%. Its reservations is powered by Sabre’s Synxis and IDeaS ran a pilot programme for a year to train its staff on its systems.
A large part of its business comes direct through the website, as well as from OTAs and corporate accounts. The rest is delivered through packages and promotions by the hotel which uses a blend of social media, edm and banner ads to drive sales.
“It’s amazing the number of people who say they found us on TripAdvisor,” said Hatter, adding, “We were cash positive after the first month of operations and achieved GOP target after the third month.”
Beyond ensuring the hotel’s strong performance, Hatter has another goal. “In the past, only 40% of graduates ever stayed in the industry. We want to increase that. The first cohort from our hotel school will graduate soon and we will monitor that.”
With Hotel ICON, Hatter, 54, is also realizing a personal dream. “I always wanted to be a teacher but didn’t want a teacher’s salary. Now I can teach and still be a hotelier.”
