Can ‘fun’ shake up franchising in Asia Pacific?

INTERNATIONAL
REPORT – Ovolo Hotels joins a small band of boutique life-style manufacturers which might be
difficult the notion that franchising in Asia Pacific is barely viable for
cookie-cutter lodges. The danger for Ovolo? Putting the model within the palms of
franchisees who simply can’t fairly deal with its ‘fun’ ethos, inventive design and
experiential focus.

Shivang
Jhunjhnuwala is effectively conscious of that danger. As chief of workers, the son of Ovolo
Hotels’ Founder and CEO Girish Jhunjhnuwala now performs a central function on the
firm. “We would somewhat have three correct Ovolo lodges than six which might be
hit-and-miss. We’re keen to have fewer franchised lodges, however ensuring
everybody who comes onboard is best than the final,” he stated.

“What
I’m targeted on proper now’s getting the primary one proper as a result of that may show
we all know find out how to do franchising and have a method that works,” he added.

The
franchising technique, for which Ovolo Hotels lately signed a partnership with
Wyndham Hotels & Resorts to increase in APAC, displays the group’s try and
evolve past Hong Kong and Australia, and from an asset-heavy to asset-light mannequin.

COVID pressured us to re-evaluate the enterprise. We’re proprietor/investor, asset supervisor, operator and model. That’s an entire lot on our plate. At some level, it’s important to slowly begin sacrificing a kind of to deal with the expansion of the opposite ones.

Shivang Jhunjhnuwala

This
began round 2018 amid Hong Kong’s fierce political scholar protests and was pushed
additional by COVID-19’s influence. But there’s been only one Ovolo lodge addition so
far – the acquisition of a lodge in Kuta, Bali. The group then launched TriO
Capital in 2023 as a option to diversify the enterprise and increase the Ovolo model.
TriO acquired a lodge in Phuket, however that’s below the Hilton Garden Inn model,
not Ovolo.

In
truth, the Ovolo portfolio may need shrunk a bit of because of the divestment and
capital recycling of three or 4 properties. Currently, the web site reveals
9 Ovolo lodges that clients can ebook.

“COVID
pressured us to re-evaluate the enterprise. We’re proprietor/investor, asset supervisor,
operator and model. That’s an entire lot on our plate. At some level, it’s important to
slowly begin sacrificing a kind of to deal with the expansion of the opposite
ones,” Jhunjhnuwala stated.

“We
consider that Ovolo as a model deserves to be unfold out far and huge, making
the world a greater and extra fascinating place. And that ties into us taking place
the asset-light route. Before, we had been an proprietor/operator, now we’re keen to
discover simply an operator route, [specifically] the franchise route, the place we’ll
have our model on property world wide which might be operated both by us or by
a third-party, relying on what’s greatest for the proprietor and, most significantly, in
a method that doesn’t compromise the model.”

At
the identical time, Jhunjhnuwala stated Ovolo gained’t utterly steer away from
buying property. “We have divested some property, giving us the power to
recycle that capital into new thrilling tasks which can increase our model
footprint,” he stated.

Platinum Room at Ovolo Central Hong Kong

Brand
benefit

Ovolo
has the benefit of being admired as an APAC homegrown model that’s openly
authentic. Launched by the senior Jhunjhnuwala in 2010, there have been few, if any,
of such boutique life-style manufacturers on the time.

Along
the best way, the model markets a string of business “firsts,” together with free
breakfast for direct reserving; free in-room minibar totally stocked and refilled
throughout the keep; all-day snacks at designated stations; versatile, interest-free
installments for reserving; and plenty of others.

Ovolo,
in a nutshell, can maintain its head up as international boutique life-style manufacturers akin to
Moxy by Marriott and Ennismore’s Mama Shelter start to supply franchising within the
area.

“Ovolo
is a superb model with wealthy DNA and we’re assured it is going to be a powerful
franchise companion,” stated Marcus Hanna, COO of La Vie Hotels & Resorts. “With
Wyndham distribution linked to the model, homeowners may have confidence of
glorious distribution with a model that has an ideal following.”

Said
Dan Voellm, CEO and founding father of AP Hospitality Advisors, “A franchise may be
scaled quickest with a extremely standardized product. Lifestyle ideas are
comparatively new to franchising given their particular person character. The Ovolo model
was constructed with nice ardour by its founder and workforce and could be very progressive in
their service choices. Finding the best homeowners who share the imaginative and prescient and
drive can be key for the model to flourish.

Like any new partnership the events might want to work laborious at applicable integration and to make sure an appropriate alignment of pursuits. There will little question be extra transactions of this sort to come back.

Andrew MacGeoch

“Rolling
out of the model would thus require extra involvement from company workplace,
which might name for a change to the Wyndham enterprise mannequin. Depending on how
the deal is structured, Ovolo could deal with technical providers and operations to
guarantee model expertise, whereas Wyndham principally focuses on growth and
distribution.”

The
timing can be proper for Ovolo Hotels to take the franchising route, noticed
Andrew MacGeoch, a seasoned and well-known lodge lawyer in Asia primarily based in Hong
Kong.

“Hotel
operators in Asia are actually specializing in franchise preparations and never simply in
the price range mid-scale sector however within the upscale, life-style and on events even
luxurious sectors,” MacGeoch stated. “There is now vital confidence amongst
worldwide lodge chains in working with the various mature and complex
homeowners in Asia. Somewhat delayed after twenty years of huge growth
development in Asia.”

On
the Ovolo-Wyndham tie-up, MacGeoch stated, “Like any new partnership the events
might want to work laborious at applicable integration and to make sure an appropriate
alignment of pursuits. There will little question be extra transactions of this sort
to come back.”

Protecting
the model

According
to the next-gen Jhunjhnuwala, the corporate has created a really sturdy and intense
‘Operational Brand Experience Playbook’ consisting of effectively over 100 pages.

Moreover,
Jhunjhnuwala stated Ovolo Hotels will work with homeowners and their groups to coach
them on how their experiences and repair rituals have to be adopted.

He
expects to see “some franchising opportunities” to come back on-line earlier than the tip
of the yr.

If I’m succesful in the future of taking up, I hope that day can be a very long time in coming. Not that I don’t wish to be succesful, however as a result of I actually take pleasure in this dynamic I’ve with my dad.

Shivang Jhunjhnuwala

And
when requested if he has a dream location for the primary franchised Ovolo lodge, Jhunjhnuwala
stated he would love for it to be in Mumbai.

“I
would like to have a lodge in India. Born and raised in Hong Kong, however being of
Indian descent, India in some methods has at all times been attractive to me because it’s a
enormous contributor to who I’m as a human being,” Jhunjhnuwala stated. “There are
a lot of lodges opening in Mumbai, however none are like Ovolo. Lifestyle manufacturers are
simply coming into the market, which is thrilling.”

As
chief of workers, Jhunjhnuwala is a conduit between the workforce and the CEO. He
works with group director of individuals and efficiency, Nicole Downs, COO of Ovolo
Hotels in Australia Wayne Taranto and GMs of lodges in Australia, Hong Kong and
Bali.

“When
they create up issues that they’re going through, it’s my job to work with them on
the answer choices then current these choices to Girish,” stated Jhunjhnuwala,
who joined the group in January 2024.

So,
the place is he on the training curve in the direction of turning into the CEO?

“My
dad and I’ve an fascinating work relationship. Family companies are
sophisticated for a wide range of causes. But one among my favourite emotions that I
get on a regualr foundation after I’m within the workplace is after I hear Girish say concepts
that nobody has thought of. Or, generally we’ll current him with choices A,
B and C and he’ll give you D and E that nobody else noticed. And we will additional
construct on the thought, feeding off on one another’s power. For me, that’s actually
thrilling.

“So,
if I’m succesful in the future of taking up, I hope that day can be a very long time in
coming. Not that I don’t wish to be succesful, however as a result of I actually take pleasure in this
dynamic I’ve with my dad.”