Eva Ziegler, senior vp for Le Méridien, part of Starwood Hotels and Resorts Worldwide, talks about the re-launch of the brandat the newly renovated Le Méridien Etoile, Paris, the first in the French capital
Background
In November 2005 Starwood Hotels and Resorts Worldwide acquired Le Meridien and a portfolio of 110 hotels in more than 50 countries. Ms Ziegler has been responsible for marketing and operations leadership for Le Méridien hotels and resorts worldwide with emphasis on the continued growth and positioning of the brand.
How has Le Meridien grown since Starwood bought it?
"When Starwood bought the brand in November 2005 Le Meridien was a little bit of a high-end "distressed" brand. Between 1995 and 2005 it had five or six owners all with different intentions and ideas, so that meant that the whole portfolio over those years became quite mixed up. It's true that over the last few years there was quite a substantial financial pressure on the brand but the way you have to see it is that when Starwood bought the brand, it was the start of a new era. Suddenly through Starwood's centralised systems and reservation processes the brand had access to a platform to operate effectively in a way it never could before. And that's the beauty between being a stand-alone brand as part of a big hotel company."
Are you aiming at the same customer base as before the acquisition?
"When you look at the performance figures over the last three years Le Meridien has out-performed any other Starwood brand on revPAR (revenue per available room), and this is all to do with Starwood's centralised systems becoming available to the brand. However, once a brand is financially distressed you are to some extent forced into promotional systems, so you are attracting a promotionally sensitive customer, which we did not want to do.
"To transform Le Meridien into a strong lifestyle brand you must upgrade your customer base, and [through Starwood's system] we have access to these people and to a customer base that basically pays 25% more than a generic Le Meridien hotel guest. The other thing is that being part of Starwood our negotiation power versus corporate clients is a completely different ball game so the contracts are in a different league too. Finally, through this transformation into a lifestyle brand through this art and discovery we are aspiring to attract those with a creative mind."
Do you think that the re-brand is clear to everyone now?
"I think that re-launching a brand does not happen from one month to the other month - it takes time. In 2005 Starwood bought the brand, and then 2006 was the year when we were strategically defining what the brand was all about and the footprint strategy, such as where we are going to grow and how we are going to grow, as well as the core values and inspiration. We looked at everything from the experience of arriving at the hotel, staying and departing and we identified 72 "touch points" where the brand is experienced. The third year is the year of global implementation so by the end of 2008 it will be across the globe. Over the next three years, by the end of 2011 we will have around 115 hotels but then by 2011 we will have had 60 hotels renovated as well."
Do you think in the current economic climate there is room for all these high-end brands? Is there a point when a chain can have too many?
"Trendsetters will always exist whether that be 2010 or 2020, so if our brands exploit these trends they will always exist too. That's how you make the segment in the market - if you pick a long-term trend then the brands will be long term too. If we are disciplined we will succeed to have different brands exploiting - in the same price territory - different types of attitudes."
How do you think you will get through the next few years with the economy as it is? Will there be some big casualties?
"If I were a magician I would predict the future but I really don't know. What I do know is that Starwood is completely behind Le Meridien, in a smart way and now with the relaunch we will roll it out in a way that is time sensitive and financially sensitive to what is going on."
www.starwoodhotels.com/lemeridien