Oaks still set on local expansion
Oaks Hotels and Resorts will still predominantly focus on Australian expansion despite well documented plans to make inroads into Asia and beyond.
The group, owned by Thai-based Minor International, last week announced the opening of its first hotel in Asia, the Oaks Bangkok Sathorn, and flagged further development in the region (Travel Today, September 20)
But Oaks founder Brett Pointon said local growth remained its core aim, particularly over the next year.
The mining industry presented numerous opportunities to “expand fairly rapidly”, he said.
Oaks is already set to open a 220-room hotel in Melbourne next April, a 144-room property in Gladstone in the latter part of the year with two slated for Mackay.
Emerald, Karratha and Perth all represented further opportunities as the company looks to increase its number of rooms from just under 500 now to 10,000 in five years.
Overseas expansion was on the cards but the priority remained Australia.
“It’s very important we don’t spread our wings too far too quickly or else we won’t be able to be as effective as we need to be,” Pointon told Travel Today.
The international growth depended largely on its Minor International parent with Oaks needing to “piggy back” off Minor’s existing infrastructure. That would not be limited to Asia but potentially Abu Dhabi, Dubai and Sri Lanka, Pointon said, with China also likely to be on the radar.
Among the benefits developing overseas was that costs, particularly wages, were lower than Australia with Oaks able to consider employing more staff to create a full hotel and apartment-style “hybrid” property.
“The model that we have in Australia will not be the same offering as in Asia because we will have a greater level of service in Asia,” Pointon said.
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