Peninsula Hotels' Luxury Vision: 'Finest' Is Better Than 'Best'
12.10.2023 - 18:01
/ skift.com
/ Colin Nagy
I’ve frequently discussed the tensions in today’s luxury hospitality market. High-end hotels were once comparable to a Saville Row tailored suit: They epitomized craftsmanship, expertise, and rarity.
Now, modern luxury brands are rapidly proliferating, not just in major global cities, but also in smaller markets. This growth has led to innovation, but has also diluted some brands. Expanding too rapidly without great care can compromise brand identity, service standards, and the intrinsic meaning of luxury. Consider brands like Chanel or Hermès. They offer consistent quality and experience worldwide. Their vision remains pure and customers always know what to expect.
Peninsula, the hotel brand, charts a distinct course. It was originally established as The Hongkong and Shanghai Hotels (HSH) in 1866. Its most iconic property in Hong Kong opened its doors in 1928.
Located in Kowloon, it now offers a panoramic view of Central Hong Kong’s Bladerunner neon spectacle. Since Peninsula’s inception, the brand has emphasized a long-term, slow-growth strategy that looks increasingly prescient in a world of dilution.
Sir Michael Kadoorie, involved in the family business for six decades, significantly influenced this direction. His ancestors came from Baghdad to Hong Kong, and established the Peninsula brand as a hallmark of unique Asian hospitality.
It has since expanded to cities like Chicago, Beijing, Manila, and Shanghai, with newer establishments in London and Istanbul. Under Kadoorie’s eye, the brand has expanded thoughtfully, emphasizing care of staff and pushing the boundaries of what a luxury hotel can be.
Peter Borer, the brand’s longtime COO who joined the group in 1981, has also been instrumental in Peninsula’s strategic expansion. While he humbly defers accolades to Mr. Kadoorie and his larger team, Borer’s impact is evident. During his tenure, he has emphasized the importance of brand clarity, measured growth, and understanding luxury’s evolution to cater to contemporary consumers.
Borer explained to me the brand’s longstanding commitment to sustainable growth without compromising brand integrity. Drawing parallels with Chanel and Ferrari, he highlighted Peninsula’s obsession with preserving a coherent brand experience. It is clear Peninsula has strategic patience: Borer pointed to a 30-year deliberative dance before entering the London market.
Despite often being late entrants, Peninsula aims to deeply resonate with clientele. It favors being among the “finest” over superficial claims of being “the best.”
A key to Peninsula’s success lies in its ownership of most of its hotel assets, ensuring a consistent guest experience. Many luxury brands manage assets for different owners, and a cheapskate