Monday, July 27, 2009

Ahhh...The Rainy Season

It is the rainy season now and the middle of the low season. I have not posted much as of late because there was not much to say since business is so slow. Slow enough that I decided to go home to Indiana for five weeks and spend some time with my Mom and family. It was fantastic but due to Mom's great cooking and my appetite I put on a few pounds. Now that I am back in Siem Reap I am on a diet (the staff know just what to cook for me) and off riding my bike. Today was especially nice. I was going to go for a ride around 3pm but walked out of the house to see a big rain storm come through. Around 5:30pm I looked out and the skies were blue and the sun beginning to set and off I went for a ride in the country with the green rice fields, grazing cows and kids playing and having fun. I avoided going anywhere near town (not the least of which to avoid the road construction that is everywhere) and had the best one hour bike ride. That is what is really beautiful about Cambodia during this season, my favorite time of year.

Business has picked up nicely but it is certainly down significantly from last year. June was off 50% from a year ago (and 50% off in low season is low!) so I will be interested to see how July has turned out. The worst is behind us so we are looking forward and getting ready for another fun high season.

Tuesday, April 28, 2009

Thank you Chip!

This past week I had the pleasure of hosting my friend Chip Conley and his partner Donald at The One Hotel. I have known Chip through our weekly basketball days in the Castro dating back more than a decade. In addition to being a good basketball player, Chip is my hotel idol in that he has built his company Joie de Vivre from one hotel into a 38 boutique hotel empire, the second largest boutique hotel company in the world. While I moved to SE Asia about seven years ago, I have tried to keep in contact with Chip and get together with him for a coffee when I am in San Francisco. Chip has always been so helpful and generous in that regard.

Now that I have my own two hotels, I was delighted but a bit nervous about Chip coming to visit. I should not have been as he, Donald and myself had a wonderful time together. I had only met Donald briefly about eight years ago so it was a pleasure to get to know him better. But, best of all, through re-connecting with Chip it has made me take a good hard look our business and how we can get better. For Christmas of 2007 my brother Alan gave me Chip's book:

Peak: How Great Companies Get Their Mojo From Maslow.

As I told Chip, no offense, but I had not yet read the book. Why? Well, quite frankly I have read very little during this time, maybe less than ten books. How pathetic of me! Also I was a bit too wrapped up in our business and not taking the time to step back and do some assessments. I asked Chip to autograph the book and after he and Donald left I read the inscription and was really touched by what Chip wrote about how we had created a Peak experience in Siem Reap, Cambodia. But, while I am happy with what we have accomplished, I always knew we had to keep pushing ourselves to be better, to be innovative and to provide even more to our guests. Then I began to read Chip's book and I was amazed. Everything I could have hoped for to help us in this book. I feel re-energized, re-invigorated and ready to work with my team towards reaching more Peaks in our business. So, more on that to come but for now: Thank you Chip!

Friday, April 17, 2009

Getting The Best Price

I thought that I had written about this earlier, but I guess not. And it is a good follow-up to my last post about the economic crisis ending soon. In response to the failing economy, I knew this low season (April to September) was going to be a challenge. With just a one room hotel we have never really felt the need to discount, except for last minute bookings within 10 days of arrival. And we purposely priced Hotel Be affordably so again not a great need to slash our prices. But, seeing that low season was going to be difficult we came up with a couple of strategies to offer a great value to our guests. We introduced a two night Quick Break package that was less than two nights at our regular rate but also included a bottle of wine and 60 minute massage for two. Then, we added a "Pay Three Nights Get The Fourth Night Free" deal. I am happy to say that both packages have been well received and I enjoy the fact that we are showing our appreciation and determination to get guests by giving them a good deal. Again, I always thought we were a good value before but during this low season we are an even better value. And, today I read on MSNBC that haggling is now in. To which I say, no problem! We will always offer the best deal available for the dates requested. Just today we received a request for a three night stay in May. Of course I could have easily quoted them the our normal price for three nights but instead offered them our two night Quick Break package with an add on third night. The way I look at it is, I am a consumer too and I would rather get the best offer up front rather than having to haggle or worry that I could have gotten a better deal. Then again, with a one room hotel and a three room hotel that are both well priced, we do not need to discount much. After all, what most hotels do is come up with their "rack rate" which almost no one ever pays because they can find many other ways to book a cheaper room. Even though I spent 20 years in that side of the hotel business, I do not subscribe to that theory. I prefer to come up with what I think is a fair price and then, when warranted, offer discounts as needed (especially if you are calling to book a room for the next day and we have availability). And, let us add on something else of value for the same great price and everyone is happy. Hope to see you soon!

Friday, April 10, 2009

It Is Over (At Least That Is My Hope)

As I said in the last post, the challenges of the Siem Reap infrastructure are difficult but we have met every challenge. After all, it is not rocket science is it? That is what keeps us going and keeps us addressing our guest's needs.

I say it is over, and what is that exactly? I believe the US recession has hit the bottom already and is on the slow climb back up. And that will be followed soon by the global economy. Why do I believe that, given that we had a terrible night of sales at Linga Bar and only one room occupied in our hotels. Well, I say that because this has been going on for nearly two years, and then the meltdown of last September and October has passed. I feel like our guests have seen the worst and our continuing to carry on with their lives. I feel this because I have talked to and met our last few guests and they echo that sentiment. Actually, the last guest of The One Hotel consisted of an employed real estate lawyer and an unemployed spouse. We gave them a great deal at The One Hotel and they loved their stay.

I say the global recession is soon to be over but we may not feel it real terms for another month or two but this is the most optimistic I have felt in more than six months. After all, we have to get on with our lives and enjoy it to the fullest, right? Of course, this is a result of the efforts of the Obama administration since taking office. I can not say enough good things about him: he is thoughtful, competent, inclusive, deliberative, etc. And the renewal of America's standing with the world is a great thing to see happen. We will get through this, and be stronger for it I hope.

Now, all we need is for you to book a room or stop by Linga for a drink. We hope to see you soon!

PS - As I have written before, there are plenty of great ways to get to Cambodia without going through Bangkok or Thailand so don't let their political dramas deter you. We are even getting guests that fly directly from the US to Siem Reap (via Seoul) which has been nice to see.

Thursday, March 12, 2009

Guest Feedback And The Challenges Of Siem Reap Infrastructure

Recently we had a couple stay at The One Hotel that I enjoyed meeting and talking with each day during their four night stay. They were quite nice and seemed to enjoy their visit. So, I was taken aback when I received a lengthy letter of complaint from them after their stay. There was some validity in their complaints of course which we have taken measures to address. And there were complaints that led me to realize that our hotel was just not the right fit for them which is understandable, as we can not possibly be all things to all people. One issue they brought up are the stairs. I do not think someone booking with us would be under the impression, after reviewing our website, that we would not have stairs leading to the room or terrace. That said, the stairs are typical in Cambodian style and steeper than normal stairs for sure. Since nearly all of our guests are fit and active this has never been brought up as an issue (except from my Mom, who does not do well on any stairs let alone ours) but can be for older guests. The One Hotel was formerly a home of a Cambodian family and when we leased the building we, myself and our architect team, never gave much consideration to changing the stairs due to the cost involved and to the loss of space that would have resulted. Therefore, our suite has two sets of stairs: one leading from the lobby to the room and the second leading from the bedroom to the private roof terrace.

Another complaint that was raised in their email and was not brought to my attention during their stay was the lacking water pressure in the room. For most of the last two months Siem Reap businesses have had to deal with either low water pressure or long periods of time without any city water supply. The city is working on the main water system that runs down Sivutha Boulevard but others say it is a lack of water supply due to capacity limits of city facilities. Either way, we have been able to do our best to solve this as it relates to our guest. As I rent three buildings in this area (the building housing Linga Bar, the building that is The One Hotel, and the building next to The One Hotel that is Hotel Be, Linga Spa and AHA restaurant)and throughout this water crisis, the building housing Hotel Be has not had any water supply from the city. We have had to manually fill the water tank from a rigged system from Linga Bar where the water is usually on most of the day. This rigged system works well enough and we let our guest know so that if for any reason there is no water, we can fill the tank in a matter of minutes from our spare tank at Linga Bar which we try to always keep full.

The One Hotel building has always had water, no interruption. But the water pressure is not what it should be. I did not know until I received this guest's email the extent that it was affecting their stay: the rainfall shower in the room did not have adequate pressure nor did the terrace shower or jacuzzi. In my many years in the hotel business I have always operated under the premise that you do your best to fix problems before they arise and react as quickly as possible to new problems. Had this guest mentioned the water pressure was not adequate, we could have reacted. Temporarily we could have manually filled the jacuzzi and provided a water bucket for use on the terrace shower. Since they brought it to our attention, we have solved the issue by adding another water tank for The One Hotel and tying it into the exisiting supply so that together they form enough water pressure to make the showers and jacuzzi work as normal. Again, the supplementary water tank has to be filled manually but we can do that in a matter of minutes. My attitude about solving problems that come up as it relates to hotel operations is: If we can put a man on the moon...then surely we can find a solution to our issues.

So, going back to the guest complaint it was disconcerting that nothing was said while the guest were here but we have taken their feedback, where relevant, constructively and have addressed it. Since I meet and talk to every guest that stays with us when I am in Siem Reap, I know that the we are hitting high marks for nearly every guest. So, when our last guest at The One Hotel checked out this past Tuesday and told me it was the nicest hotel room they had ever stayed in, it certainly brought a smile to my face and a sigh of relief. Another recent guest wrote to thank us for their great stay with the subject line of their email saying "Onederful." And yesterday I received maybe the highest compliment we have had so far. This guest stayed at Hotel Be for ten nights and enjoyed their stay so much that she told me that this is the first time she is coming back from a holiday and will be disappointed to be returning to her apartment instead of her suite at Hotel Be. Now that is a beautiful compliment!

No doubt we will continue to have our challenges trying to do business in the developing city of Siem Reap that is decades behind its regional neighbors, but we will always do our best to solve any issue that comes up as quickly and as efficiently as we can. That is half the fun of the hotel business, solving problems. The other half is having fun guests that really enjoy our hotels. Now, let's keep our fingers crossed that the Siem Reap electricity supply holds out!

Sunday, February 15, 2009

New York Times - 36 Hours In Siem Reap

On 28 December 2008 we were delighted to learn of Linga Bar being part of 36 Hours in Siem Reap as chosen by the New York Times:

Wow, third time in NYT for Linga Bar!

Saturday, December 20, 2008

Now For Something Different, A Little Off Subject

I have decided upon a personal theme song. I recently saw this video of Paul Anka and a song he wrote for Sammy Davis Jr. I love the lyrics and the sentiment so hope you enjoy it too.