In The Footsteps Of A Legend | Steve Shellum, Publisher/editor Of Hotel Asia Pacific, Talks To Peninsula GM's Ian Coughlan And Rainy Chan About Their New Positions At The Peninsula Hong Kong And Peninsula Bangkok, Respectively

Ian Coughlan joined the company in 1996 as RM of The Peninsula Hong Kong. He was promoted to hotel manager, and then transferred to The Peninsula Bangkok as GM in September 1999. He took over as GM of the group's flagship property in Hong Kong at the end of August

Tell me something about yourself and your family.
I have Kyle, he's seven, and Emmet, he's five. My wife is Pamela.

You must be feeling pretty happy about being appointed GM of one of the world's most legendary hotels ...
It's certainly a very happy moment for me - and an unexpected one - and it's a great honour to be given the flagship to lead for the foreseeable future. But, in a sense, there's a feeling of coming home because I spent more than three years here with my mentor, Peter Borer. There's also a very low turnover of staff here, so there are a lot of old faces.

What are your plans for The Peninsula Hong Kong?
To be honest, right now I still have a number of challenges to see through in Bangkok; we are planning a spa, and I still have next year's budget to look at. It's nice to be coming home to the flagship, and no doubt I'll face challenges with new competition, but I think the Peninsula has proven over 75 years that it has weathered the storms in a very elegant and gracious way.

This was clearly demonstrated during the SARS nightmare ...
There has always been an affectionate relationship between the ownership of the company and the employees. There is mutual respect that is a result of 75 years of hospitality. I don't look at crises like SARS in terms of a time capsule of six months, but step back and say: "Yes, this is a significant business threat but, in the realm of 75 years, it is a bump in the road".

Peninsula has always been a benevolent organisation. There is no doubt that we are a business and we like to make money, but there has always been a community responsibility as well.

Give me some background about your working history.
I was born and raised on the West coast of Ireland, in County Clare. I went to hotel college after secondary school, with a year in Switzerland and a year in the UK, then started as a trainee with Trusthouse Forte.

I worked in London for eight years, then moved to Ritz-Carlton in the US, starting out in Atlanta as restaurant manager. I was with the brand during its embryonic period in the mid '80s [under former CEO Horst Schulze]. They had five hotels, and I was with them for just over five years - and when I left they had more than 20.

It was a really good breeding ground for future executives; we were put on highly personalised development programmes and, as hotels opened, we were sent to very senior positions. So, in five years, I worked in four properties all in the US.

And then Asia called. I was working in Hawaii and ready for a change, and Michael Hoffman - who was then RM of The Peninsula New York - was moving out here. He called me and said there was an opening at the Oriental Singapore and thought I would be the right person for the job.

I flew to Singapore in 1991 and took up the job of F&B director there for 18 months, and was then made RM, before joining Peninsula in 1996.

When you were appointed GM of The Peninsula Bangkok, it was during the Asian financial crisis. That must have been tough.
We were struggling with only 23% occupancy, but the company was willing to take a deep breath and say, "Perhaps we need to change the way we are marketing the hotel". It turned like a speedboat, and the following year we were running 82%.

Can you explain what you actually did?
Peter Borer, who was regional GM at the time, was charged with turning it around. His idea was to make it as simple as possible for customers to understand that we'd just opened a new hotel and we'd like them to experience it - but not with just a three-month promotion which would have been finished by the time they'd heard about it.

Instead, he introduced the Sunrise Promotion, which lasted for 16 months and, basically, gave a flat dollar rate - including breakfast and car transfer - to anybody who wanted to book over a 16-month period.

There was a perception that something had to give because it was too good to be true, but we actually enhanced our service and facilities and we made quite a bit of money, so it was a success in every way.

It achieved huge international exposure and, when we increased our rates, everyone sat back and laughed, but within 22 months we'd doubled our rate. True, occupancy dropped from 82% to 73%, but we were very happy to have a doubled rate at 73% occupancy. We built loyalty, and have a very high proportion of repeat guests. It was a fair offer, and they were able to take advantage of it, but they knew it was a special offer.

What is The Peninsula Bangkok doing this year in terms of occupancy and rate?
We're hoping to do 73% for the year, and we're 15% ahead of budget - not in occupancy points, just in terms of revenue.

You've been in the industry for many years, and have seen some drastic changes. As a traditionally trained hotelier, how do you balance new technology with the old ways of delivering hospitality excellence?
Technology is an enhancement towards efficiency, and has made many things, including fire and life safety systems, much more efficient over the past 15 years. It has reduced manpower requirements and given you better controlling systems. But, in terms of service to the guest, it's still all about people.

Technology is great for the waiters and waitresses and front-desk staff, and The Peninsula is something of a pioneer in inroom technology, but when you walk into The Peninsula lobby you feel that tradition is being well served. There's a lot of information that is not visible to the guests, but it's intrinsic to their stay.

Bangkok-bound GM takes it in her stride

Hong Kong-born-and-raised Rainy Chan started her career with InterContinental in Hawaii. She was headhunted by The Peninsula Hong Kong, which she joined as rooms-division manager in 1994, before being promoted to hotel manager. She took over as GM of The Peninsula Bangkok at the end of August

What strengths will you bring as GM of The Peninsula Bangkok?
I would say my strengths are my people skills and my commitment to the staff. I also feel very confident about delivering Peninsula standards.

You spent a lot of your career in front-office operations. Are you confident about having overall responsibility for every department of the Bangkok property?
In Hawaii, I started at the front desk, and I stayed in the front office pretty much the whole time. When I left Maui in 1994, I was desk manager. As hotel manager of the Peninsula Hong Kong, I have also been looking after housekeeping, security and some aspects of engineering. Although I have never worked full time in F&B, I have a good understanding of what is involved - and highly experienced professionals to run all the departments.

There are many people in the industry who would give their right arm to become GM of a hotel like The Peninsula Bangkok.
Transferring from hotel manager of the group's flagship hotel to GM of such a high-profile property is a very big move, and I am very aware and appreciative of the faith and trust the company has put in me.

Your efforts and commitment to the company have been recognised, and I guess other people in the company are saying: "That could be me one day!"
The company has a policy of first looking within for any senior position that might arise. I personally have benefited so much from the company, and it is one of my bigger goals to pay this back.

It's quite a responsibility to carry on your shoulders, and your peers in the industry will be watching closely.
I feel very privileged to have been given the opportunity to be a role model for others. I am fortunate to be that example, especially being a women and someone who truly loves this industry. A colleague once asked me if my blood was green, because that's our corporate colour.

Bangkok is a highly competitive market and, unlike Hong Kong, is prone to hotel price wars. How are you going to tackle such issues?
I am very lucky because Ian [Coughlan] has done such a fantastic job. He has really positioned the hotel and firmly established its market, and I believe we are the only property in the city to raise its rates this year. Our customers are very brand-driven, our customers are very loyal and a lot of that has to do with the fact that we are very much committed to delivering consistent service. A rate war is something I don't have to worry about.

What do you see as your main challenges?
The fact that I am taking over a very high-profile, well-run hotel - and how I can contribute over what has already been done. I am going to put most of my focus into my team, and ensure that they are comfortable with me. I am not going to go in there and change things right away. Ian has done a tremendous job, so I won't need to do that. I don't have any reason to make changes.

Do you have a vision of where you would like to see the hotel, say, three years from now in terms of the product and the service?
There is always room for improvement. The most difficult thing in any hotel is to keep the employees motivated, especially if they are already doing a good job - there are only so many awards, so how do you continue to motivate them so that their smiles remain genuine? You can tell them you are going to take care of them and train them but, really, it's about being consistent in our promises.

Are you technologically minded?
No, I am not. I very much appreciate technology, but I have always been a strong believer in the human aspect of our business - that is the easiest and the most difficult thing to deliver, because we are all human beings. Technology you can buy, and everyone's got it. Obviously, that's important and the guest almost expects it, but the human touch is a more discrete way to anticipate their needs and give that little extra care.

You are the group's first Asian female GM, which is rare for the industry as a whole.
We already have a female GM in Chicago, but I'm the first home-grown one.

The hotel industry is often like a stereotypical gentlemen's club. People might not be watching Ian so closely in his new role because he is Western and male. It can also be a cut-throat business, so you are going to have to be as tough as the next man. Do you feel confident about that?
Tough is not bad - I have had to be tough to be where I am today, and to have done what I have done. I have been through two major events [at The Peninsula New York during 9/11 and The Peninsula Hong Kong during SARS] in very senior positions, and I've had to be tough. In business, you have to know when to put on the tough or aggressive sort of approach, but it doesn't change the way we manage people. I'm a tough girl, but I'm a nice tough girl.

The Peninsula Hotels operates luxury hotels in key gateways of Asia and the USA. It is a division of The Hongkong and Shanghai Hotels, Limited. The Peninsula Hotels includes: The Peninsula Hong Kong; The Peninsula New York; The Peninsula Chicago; The Peninsula Beverly Hills; The Peninsula Bangkok; The Peninsula Palace Beijing; The Peninsula Manila and The Kowloon Hotel in Hong Kong. For more information visit .

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