Sankara looks to Marriott brand for winning recipe

Sankara last month completed the conversion to a Marriott Group’s Autograph Collection brand. This came as the hotel space in Nairobi is awash with activity, with investors setting up at every corner of the city.

The Business Daily sat down with Sankara Hotel Group’s general manager, Krishna Unni, to discuss their partnership with Marriott and strategy in light of the emerging competition.

WHAT ARE YOUR THOUGHTS ON ALL THIS COMPETITION POPPING UP AROUND SANKARA? PULLMAN IS OPENING DOWN THE ROAD, YOU HAVE MOVENPICK ACROSS THE STREET, KEMPINSKI, DUSIT, PARKINN…

First I think competition is good for all of us because it makes us grow and keeps us on our toes. We can’t just remain static.

We have to constantly innovate. I think that was one of the key reasons that Sankara Hotel Group took the decision to join the Marriot family, because Marriott being the largest hotel group in the world has a lot more resources we can tap into and will give us a boost. Competition is great. It’s good for guests, it’s good for hoteliers, it’s good for Nairobi. These are exciting times.

ISN’T THERE THE RISK OF OVERSATURATION OF HOTELS MARKET, ESPECIALLY IN THE MID- TO UPPER-SCALE SEGMENT?

Initially, you might have a little bit of that happening but I think the market recovers. Nairobi and generally Kenya is a big hub for the East Africa market. Maybe now during this period it is difficult for all of us but I would say going forward, Nairobi is a key city for this region, so , we are very confident that the market will recover.

TWENTY-SEVEN NEW HOTELS ARE TO COME TO KENYA. ALMOST 80 PER CENT ARE IN NAIROBI . WHY IS THERE SUCH A HUGE ON WESTLANDS, KILIMANI, UPPERHILL? WHY IS THERE SUCH A HUGE INTEREST IN THE CAPITAL?

I think it is a big business hub. People tend to forget how key Nairobi is. Kenya is the gateway to East Africa. For you to be successful in this region, you need to be successful in Kenya and in Nairobi.

That’s why you see a lot of development in this region, not just in the hotel space but in any industry. Over time you will see that the market is more than big enough to cater to all the hotel openings. As I said, this is a key hub. You have to be in Kenya.

DOES SANKARA PARTNERING WITH AN INTERNATIONAL BRAND MEAN THAT THE DOMESTIC MARKET IS NOT ENOUGH TO RUN A HOTEL OR THAT LOCAL BRANDS ARE NOT BIG ENOUGH TO GATHER INTERNATIONAL CLIENTELE?

I don’t think so. There comes a time when you as a standalone want to take the next step not in terms of service as a product but in terms of distribution. Marriott has been around much longer and is more established in different markets, that’s what we are tapping in to. We are not looking at the product side of it or the service side of it.

There is training for our associates. Tying up with Marriott helps us further that now. That is something I am excited about. We are focused on developing local talent. Once they are outstanding, we do not have to worry about service.

I think at that, Kenyan brands do a fantastic job.

HOW DOES KENYA COMPARE TO THE REST OF EAST AFRICA IN TERMS OF DEMAND AND AVAILABLE WORKFORCE?

Kenya has a young workforce, a very educated population and geographically it’s a fantastic location easy to access from Asia, Middle East, Europe, the rest of Africa and now direct flights from the US. It’s got a perfect blend of fantastic labourforce and all these other benefits. That’s why you see a lot of international brands eager to come invest and build in Kenya.

WHAT STRATEGY IS SANKARA TAKING GOING AHEAD?

First, this brand (Autograph Collection) enables us to keep our uniqueness and maintain our Kenyan-ness in terms of style, product, food and beverage and so on. But we also get their global distribution network and salesforce primarily for rooms and also conferencing and the rewards programme. Our focus is still to be unique and innovate in food and beverage. So far we have been very successful in the food and beverage space because we have taken risks and done something different.

SPEAKING OF FOOD AND BEVERAGE, IS FINE DINING SOMETHING THAT IS WORKING FOR SANKARA OR IS IT SOMETHING THAT IS STILL SLOW IN THE KENYAN SPACE?

At Sankara we try and avoid the traditional, fine dining experience. A lot of our guests are not so attracted to it, so we do a unique experience for them and it has reflected in, for example, Graze steak house.

It is very established in the market and it has won numerous awards even in the luxury restaurant competitions in Africa. Fine dining is not our style, we want to be a bit more cutting-edge.

HAS THE GROWTH, WHETHER EXPANSION AND CONTRACTION OF THE KENYAN ECONOMY, AFFECTED THE PRICE OF THE ROOM OR FORCED DISCOUNTED PRICING?

We avoid discounting. Every economy has its ups and downs, it’s something experienced everywhere in the world. We try and base our room pricing on the potential. We are flexible but when you base it on potential you can see that this is a passing phase. Long term, there is going to be tremendous growth not just in Nairobi but Kenya as a whole.

IS THE LOCAL SUPPLY CHAIN DEVELOPED ENOUGH TO SUPPORT THE DEMAND?

I think it will. Five or 10 years ago when Sankara first opened, we had to buy containers of wine because there weren’t as many distributors but now we do not need to do that any more because there are so many wine distributors you can get wine from across the world locally.

Second, as our guests get more demanding, we are more demanding of our distributors, so everyone starts improving. Going forward, there will be many options and existing suppliers will have to improve otherwise they will become irrelevant because there is more choice.

IS THERE A SPACE FOR HOMEGROWN BRANDS TO FIND THEIR NICHE IN THE MARKET WITHOUT NECESSARILY NEEDING TO ANCHOR ON AN INTERNATIONAL BRAND?

I think yes there is, but certain product styles that are very high end of the market, the local brands need to leverage on the international experience.

DO YOU THINK KENYA HAS MORE TO OFFER IN THE HOSPITALITY INDUSTRY BEYOND CONFERENCING AND BUSINESS HOTELS?

I definitely think so. There is so much potential here and maybe now when you look at the short term, you wonder where is this coming from. But it’s not just the traditional business and leisure, you have so many other types of tourism from religious tourism, to environmental tourism or even education. Kenya has some fantastic schools in this region.

WHY IS NO ONE VENTURING OUTSIDE BEACH-BUSH-LEISURE?

It is a risk and sometimes when the economy in the short term is not looking right, they hold back. It will happen even if not right away.

WHAT DOES IT TAKE TO BE A PROFITABLE HOTEL IN THIS ECONOMY?

First is solid product. Positioning is key then you can target who you are selling to. You have to maintain service level and standard and of course you have to be watchful of your costs. It is a balancing act.