22 June 2001
The 1,200-room Westin Stamford will be rebranded the Swissotel Singapore, The Stamford when Raffles International takes over management on January 1, 2002.
Raffles is meanwhile keeping the new name for the Westin Plaza under wraps but sources say that will come under the Raffles Collection and will carry the Raffles name. The name Raffles L’Ermitage Singapore is being tipped, along the lines of Raffles L’Ermitage Beverly Hills and Raffles L’Ermitage Berlin.
The long-awaited rebranding to Swissotel was expected after Raffles bought the Swiss hotel company but observers wondered if the Swiss brand would add value to a property that is already a leader in its market category and whether it would actually be seen as a downgrade for Raffles but an upgrade for Swissotel.
Swissotel is relatively unknown in Asia. It has made prior unsuccessful attempts to enter the region. It had a hotel in Bangkok and Seoul. Its presence in Asia is limited to two in China – Beijing and Dalian. The decision to stick Swissotel on the Westin Stamford is however in line with Raffles’ promise to grow the brand when it bought the company.
Asked what value the Swissotel name would bring to the hotel, chief executive officer Richard Helfer cited longevity – Swissotel was set up in 1980 – and the reputation for quality accommodation for business and convention travellers.
“The Stamford is a convention and business hotel and fits the Swissotel brand,” he said. “Swissotels in the US with the exception of Washington have extensive meeting facilities and we can share business in the network.”
Helfer acknowledged that the Swissotel name was less known in Asia than Westin but said that was precisely the reason Raffles felt it would fit in nicely with the group in terms of geographic spread.
“We are well known in Asia but in Europe and the US, the Swissotel name will help.”
Helfer said Raffles was reviewing its brand portfolio. The first to be rebranded was Le Montreux Palace which is now a Raffles. “Any other relaunch will be based on the agreement that we will grow the Swissotel brand and we will review our brand structure to push yields,” he said.
He said Merchant Court in many ways was similar to the Swissotel brand in the business they went after and there may be “some blending of some of the properties into Swissotel.”
Asked if the name Merchant Court might disappear eventually, Helfer said it was too early to say.
A total of S$5 million (US$2.75 million) will go into the rebranding exercise at the corporate level. Individual hotels will have their own budget for rebranding.
Helfer said Raffles would use the Swissotel platform to expand globally. For instance, the purchase had given Raffles a beachhead to expand into South America. Swissotel is present in Quito, Ecuador and Lima, Peru.
He cited five cities – San Francisco, Paris, Rome, Tokyo and Hong Kong – as targets for continued expansion, but said the next stage of growth for Raffles International would not be in scale but in continued brand development to become one of the top 10 global brands by 2005.