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View all search resultsBrett Butcher: Finding a niche in today's Jakarta
(Courtesy of Langham Hospitality Group)In an intimate media gathering held last month, the Langham Hospitality Group announced an agreement with Indonesian property developer, Agung Sedayu Group, to operate The Langham Jakarta, expected to open in 2017
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(Courtesy of Langham Hospitality Group) (Courtesy of Langham Hospitality Group)
(Courtesy of Langham Hospitality Group)
In an intimate media gathering held last month, the Langham Hospitality Group announced an agreement with Indonesian property developer, Agung Sedayu Group, to operate The Langham Jakarta, expected to open in 2017.
With a gross domestic product (GDP) growth of 6.23 percent and a GDP per capita of US$ 4,943 as of last year, Indonesia is well on its way to becoming a hot investment destination. In fact, Indonesia managed to edge out India and emerged as the second fastest G-20 economy just behind China. Such developments didn't go unnoticed for Langham CEO Brett Butcher.
But to launch a niche luxury hotel in Jakarta is still a curious, if bold, move. Despite the country's progressive economy, Jakarta's tourism industry remains comparatively unenthusiastic. As a comparison, visitor arrivals reached 25 million in Malaysia, 22 million in Thailand and 14 million in Singapore in 2012, while Indonesia attracted merely 8.04 million. Yet Jakarta is poised to be first Southeast Asian city to host Langham.
'I see Southeast Asia as a big platform for us to grow. And when you enter a big market like Southeast Asia, you want to have a presence in the biggest and most dynamic city. As such, Jakarta is an obvious first choice,' he said.
'As far as international tourist arrival is concerned, I think Jakarta will eventually become a much more favored destination. I believe Jakarta is gearing up to becoming a major tourist destination in the region. That said, every market has to be eventually domestic-led ' any robust economy has to be so, including those in the hotel and tourism business,' Butcher adds of his business decision.
He also says that finding 'the right business partner' and 'the right location for the hotel' have been two major considerations in launching The Langham Jakarta.
His goal for The Langham Jakarta, he says, is to make the hotel the place to be for 'Jakarta's wedding of the year; the biggest MoU [memorandum of understanding] signing ceremony; and the place to be for ladies enjoying high tea'.
Strategically located within the prestigious new complex of District 8 at SCBD (Sudirman Central Business District), the five-star property will feature 170 rooms and 30 suites. Renowned architectural firm Smallwood, Reynolds, Stewart, Steward is in charge of the design.
'We will have classic and elegant contemporary interiors, with details that are reflective of the brand's heritage as one of Europe's premier grand hotels,' says the Queensland University graduate.
The Langham Hospitality Group is a luxurious cult brand capitalizing on the legendary London Langham hotel, a grand establishment built in 1865. About 20 years ago, Hong Kong-based property investment Great Eagle Holdings Limited embarked on a process of buying luxurious properties around the world, specifically hotel assets managed by different companies.
The company acquired The Langham London in the mid 1990s, and within the last ten years, has been able to take the brand to the rest of the world. Great Eagle shareholders soon realized that it would be beneficial to not only own assets but manage them as well.
Langham Hospitality Group is a subsidiary of Great Eagle Holdings, and manages hotels under the Langham, Langham Place, Eaton and Eaton Luxe brands.
But Langham is a comparatively small feat in the international hospitality industry, and Butcher prefers it that way. Despite the major expansion the company has been doing since 2004, Langham plans to remain an exclusive brand that attracts a certain niche of traveler.
'We have a long history of hospitality services, dating back to the time when there was no electricity and telephones. This differentiates us from the North American luxury brands that dominate the market today,' he says.
The Asian phenomenon
Butcher and his family reside in Hong Kong, where Langham headquarters is located. But his first post in Asia was in Shanghai. He came to Shanghai in 1984, during the early years of Deng Xiaoping's economic reform. The native Australian, who had previously worked in Boston for three years, was in Shanghai to open a hotel.
'I first arrived in Shanghai almost 30 years ago, when Western food wasn't available anywhere in the city ' not even in the hotels. My job was to launch a hotel ' the first [international] hotel to open in Shanghai after the Chinese economic reform,' says Butcher.
Shanghai, an international trade and cultural hub of the 19th century, was a center for revolutionary leftism with crippled infrastructure and dilapidated grand European buildings. The four-decade alienation the Maoist government imposed on the city made Shanghai a tired, old grand dame in dire need of a major face-lift.
Today, Shanghai is gleaming concrete jungle with over 1,000 skyscrapers erected within the past two decades, a testament to China's economic progress.
'It's interesting isn't it?' says Butcher of the Asian economic phenomenon, best personified by China.
'Just 10 years ago, a luxury heritage brand such as The Langham would have attracted ' perhaps almost exclusively ' Western travelers. But our properties in Hong Kong cater mainly to the Asian market these days, which only goes to show the growing affluence among the Asian middle class.'
'Today, Asians are a very well-traveled bunch. Starting with regional destinations and then into the rest of the world. In our properties in North America, for instance, we have a significant number of Asian guests,' he shares.
The positive development of the Asian economy means good business for Langham. The group currently operates 20 hotels, 12 of which are owned by Great Eagle.
The speed at which Langham is able to deploy capital and open new hotels is somewhat an anomaly for a small hotel group. But Butcher says that Langham has invested a lot of time and energy into setting up global networks, including sales offices and other alliances, which allows the group to enjoy a smooth business expansion in Asian cities.
'Although the majority of our operations are centered in Asia, we're also growing in other parts of the world,' he explains.
Finding balance
How many hours do you spend flying every month?
The way I try to schedule my diary is to travel every two weeks. I spend one week in the office and the following week I'll be away. That gives me a little bit of routine and ensures I have time with my family too. You need a rhythm. To answer your question, I spend maybe two to three days flying every month.
What do you do to unwind?
I'm looking for authenticity to unwind and not glamor. That usually means a small village by the river in Japan. I also enjoy sailing in Hong Kong ' I'm not a terrific sailor, but I used to sail as a boy in Queensland. In fact, I only won one race in my life. I usually come in the middle of the pack.
What's the best advice for fresh graduates?
Get into a big, global company and commit yourself to giving that company your career for the first 10 or 15 years. What I find is that people move around too quickly these days and eventually they're undesirable because they seem to lack an understanding of the concept of loyalty. Don't start looking for a new job, when you've just started your new job.
What are your favorite things about Asia?
I first fell in love with the food. And then I fell in love with an Asian lady, who is now my wife. (Willy Wilson)
Brett Butcher
Place/ Date of Birth: Dec. 31, 1959 / Queensland
Experience
More than 11 years in the Langham Hospitality Group, taking the role of managing director and senior vice president, before being appointed CEO of the company in April 2009. In 1980, he packed his bags and moved to Boston, where he worked for The Flatley Company, a commercial real estate developer, which, at the time, ran many Sheraton-branded hotels. He stayed with the Sheraton group for some 20 years.
Education
Holds a Bachelor of Business from the University of Queensland.
