In conversation with Thomas Schmitt-Glaeser, VP The Sukhothai Hotels and GM of Sukhothai Shanghai (Exclusive Interview)

How has the property performed after lifting pandemic restrictions? What are your expectations for the rest of 2023?

The business demand for the city has been resumed to the level of 2019 after 3 years’ pandemic restrictions. The domestic travel and city events are coming back very quickly especially after Chinese New Year holiday. which has benefited the hotel with an exciting increase in occupancy, while overall average room rates are slowly kept up. It is also foreseen international travellers to have a positive impact on hotel business that we are expecting more to come from Q2 onwards. I hope we will be able to take advantage of the increased demand by offering personalized services to cater to the different needs of international visitors. 

Are there still any challenges persisting? What about opportunities or ‘lessons learned’ during these 3 years?

Identifying the right talents, especially rank and file employees, is the top persisting challenge, as the cost of living in first-tier cities such as Shanghai is becoming increasingly unaffordable, compared to their hometowns, coupled with a highly competitive market situation. Additionally, another key challenge is the team’s language skills, especially due to a lack of foreign guest communication practice in the past three years. 

One of the most important opportunities has been the shift in consumer preferences, with guests now prioritizing health and safety. We will continuously implement enhanced cleaning protocols, social distancing measures, and flexible booking policies to build guest confidence.

For ‘lesson learned’, I think it is the importance of treating colleague kindly, especially during difficult times. By prioritizing the well-being of the colleagues and providing them with support, we have retained our workforce and maintain our reputation in local market.

What has been your approach for reopening and achieving pre-Covid service standards? How do you achieve consistency when it comes to service?

We have implemented several measures to ensure tour guests to feel comfortable and safe during their stay. One of our main focuses has been English training for our employees to eliminate any communication hassles for our inbound travelers and to strengthen guest engagement to provide personalized experiences for our guests. Additionally, we are reviewing and amending the breakfast varieties to meet overseas travelers’ expectations.

For the past three years, we provided more Chinese options and less Western items due to our business mix, as we heavily relied on the domestic market. However, we are expecting the need to adapt and modify our breakfast offerings to cater to our overseas guests’ needs. This helps us achieve consistency when it comes to service by ensuring that all our guests receive a high-quality experience that meets their expectations.

To ensure consistency in service, we have also invested in employee training and development. This includes training on guest service, communication, and problem-solving. By providing our employees with the necessary skills and knowledge, we can ensure that they are equipped to provide excellent services to our guests consistently.

Tell us more about the positioning of the hotel – USP’s, comp set, guest profile.

The Sukhothai Shanghai is a stylish sanctuary amidst a vibrant landscape – Experience the traditional virtue of hospitality with a contemporary twist, complemented with meticulously designed facilities and hotel services to accommodate to the modern urbanities. 

As a luxury hotel located in the city center of Shanghai, we face strong competition from other luxury hotels. To remain competitive, we focus on providing crafted experience, personalized service, and attention to detail. We target high net worth individuals, business and leisure travelers, who expect the best service and product. 

Beyond that we have many clients who make their decisions to stay based on how well our corporate social responsibility is integrated into our offering. We have received recognition and awards in this area from both domestic and international sources. Whether it be the high percentage of recyclable products used or the through yet environmentally conscious hygiene standards the hotel upholds, minimalizing the carbon footprint is clearly an ongoing concern for us. 

Has the guest profile changed? – spending, length of stay, time of booking, type of accommodation 

In terms of spending, guest spending on rooms is still 10% behind the same time in 2019. However, we have seen a 1.5% increase in the length of stay for guests staying two nights or more. We have also observed an 11.1% increase in bookings made more than two days in advance. Although this data suggests that some guests are still making last-minute decisions, it also indicates that many of our guests are planning their trips in advance and are becoming more confident in their travel plans. In terms of accommodation type, we have seen an 11% increase in corporate bookings, which is a positive sign of business recovery. 

Is there a different perception of luxury? Which key markets are you prioritizing? 

Luxury is subjective and unique to each individual, travellers staying in luxury hotels are looking for unique and personalized experiences that cannot be found anywhere else. 

At The Sukhothai Shanghai, we always try to create a modern, healthy and personalized lifestyle to our guests that we do explore opportunities to work with luxury and fashion brands with same concept. Recently, we cooperated with famed British designer brand Tom Dixon to present the concept of themed rooms and cocktails. This collaboration features some of the most iconic designs from Tom Dixon and create an entirely memorable experience for guests which cant be replicated.

How are the F&B and wellness offerings conceived? To what extent you are targeting non hotel guests.

Over 90% of diners and over 50% of wellness guests are non-residential guests. We take pride in providing our guests with healthy offerings in both our dining and wellness venues. Our focus is to promote not only our guests’ physical well-being but also their mental and emotional well-being, with the aim of helping them reduce their stress levels. 

Our dining venues feature healthy foods and beverages that cater to a variety of dietary needs and preferences. In our wellness venues, we offer a range of treatments and therapies that are designed to promote mental wellness, such as sound therapy, singing bowl massage, and sleep well therapy. Our rehabilitation therapy is also an essential part of our wellness program, and we provide our guests with access to the latest technology and techniques to help them recover from injuries or manage chronic conditions.

What is your view on the recovery and evolution of rates?

The overall average room rates has not been kept up with the increase of occupancy. It takes time to go back to rate level of pre-pandemic days, so to speak. With the continuing ease of flights and boarder restrictions, and more international travellers back to travel to Shanghai, we expect the overall rate level will continue to recover to the level of pre-pandemic days, We need to be patient and actively adapt our price strategy according the market demand forecast, to keep a balance between competitive rates when needed and a pricing level that reflects the luxury experience we offer.

Are there any novelties we should be anticipating?

To lead and shape a lifestyle environment has always been one of our priorities. Hotel has been continuously seeking for collaborations with art partners or fashion brands for such showcase opportunities. Having said so, starting in March 2023, our hotel has been honored the the exclusive hotel partner of Design Miami / Podium x Shanghai with an extended exhibition on the first floor. We are enthusiastic about the future and fully committed to continuing our exploration and support of the art and design community as we pave the way for an innovative and sustainable path forward

Which are you 5 top off-the-beaten-track tips on Shanghai?

– Gin library with 400+ gins from all over the world at The Sukhothai Shanghai

– Ultraviolet by Paul Pairet

– Shanghainese noodle shop which hide in the small & old local compound and won Michelin plate award

– Shanghainese dancing in the park

– Art quarters in Puxi 

Since 1997, Thomas has held senior management positions with Kempinski, Shangri-La and The Sukhotai hotels, which also includes The Sukhotai Bangkok

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