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Dewald Kruger: Silk Road Hospitality Positive About Growth Rate

Silk Road Hospitality, which is about four years in the Nigerian hospitality market, is inspired by a rich and enduring history. If you understand the history behind the famed Silk Road of China then you can easily grasps the balance and leverage that the new hospitality management brand offers. It is about a journey to discovery and interconnectivity to new experiences, arts, cultures and people among others.

The company proudly associates itself to these ethos which underscore the fact that, ‘‘The Silk Road open doors to the new world, where new cultures, religion, knowledge, art and design began to interconnect. ‘‘Some of the first diplomats were the Envoys sent down the Silk Road to make way for the traders to pass safely through foreign territories. ‘‘Our inspiration for Silk Road Hospitality and its corporate identity has come from that story.’’

Offerings

Given this inspiration, the Abuja-based outfit, according to Kruger, offers unique services with sight on return on investment (ROI) to investors, best hospitality experience to guests and a lovely environment for career progression for its personnel.

Its services cut across turnkey hotel development, food and beverage concepts and operation as well as best class development assistance, latest design advice, best technological application, onsite visits and inspections, economic advice, financial reports, recruitment, staffing and training and best of Nigeria, with world perspective.

Kruger tells you that the outfit, which boosts some of the best hands in the market, is buoyed by its proven track record on high end products. This is even as he assures investors are guaranteed high yield on their investments.

We know who we are

It is not enough to have the expertise and offers a wide range of services as reeled out by Kruger, rather it is knowing who you are, your strength and the kind of property to manage. For Kruger, this is what sets Silk Road Hospitality apart in the marketplace, as it sights are fixed on boutique property that offers guests luxury and unique hospitality experience.

This is what its flagship hotel, The Envoy Hotel by Silk Road Hospitality, which was formerly under The Mantis group, until 2020 when the new independent brand came into the scene, represents. ‘‘We know who we are, we are not a big brand hotel, so we value our boutique feel, our personal services, our designs, our colours and everything.

We carry out maintenance on regular basis and we have very serious security partners that look after the security of our guest and staff. We would not go anywhere we know there is weak security arrangement,’’ he says of the focus of forte of the outfit. He notes that, ‘‘We do things very deliberately because when we go into a city, we scout around to see what is happening and what the competition is and we will not just pick any property that is in offer.

Some brands like to collect as many hotels as they can and then they run out of man‘‘So, we don’t want to be in that position.’’

Nigeria is our oasis

As a Nigerian wholly brand, Kruger, who is South African, and a thoroughbred hotelier, with rich professional history dating back to the former Protea Hotel group, where he first cut his professional teeth, conquering the Nigerian market is the brand’s foremost target while hoping to extend to West Africa and Africa in later years.

‘‘We see ourselves covering all major cities in Nigeria properly before even thinking of going to West Africa. So that is our goal. The main focus is Nigeria,’’ he says. Furthermore, he reveals, ‘‘Silk Road Hospitality is an African brand, purely develop here in Nigeria. You don’t have to pay your commission and fees to Europe or America but the money stays here in Nigeria and we develop Nigeria.’’

A local brand with international flavours

For Kruger, what is unique about the brand is the fact that it infuses local and international flavours into a perfect mix, noting, ‘‘We are a local brand with international standards, with international aspirations because we definitely want to cross borders and who knows we might team up with other local or international groups. But we are purely local and that is what I want to stress.’’

We want to develop the local people, product and environment

He also discloses that, ‘‘our management is local and we develop local products. We want to remain local, develop local and remain local. We want to do meaningful things and by virtue of us spending locally, developing locally, doing things locally and employing local skill that is part of our Corporate Social Responsibility (CRS).’’

Fastest growing brand in Nigeria

Given that the brand is just under four years, boasting eight properties in its portfolio, with three in operations already while three more will be added to it by the end of the year and two in the pipeline due for opening next year. It is then safe to say that the brand has made an historic feat in the market space as it is the only brand in Nigeria, either international or indepenin such a short span of existence.

Kruger takes one through this epoch making feat as he speaks further on the operations of the brand, which side of The Envoy Hotel Abuja, which has been in operation since 2018, notched up in 2021 City Green Hotel, Yola, Adamawa State; Castle Green Hotel, Kadu and Airport Hotel, Lugbe, both in Abuja; Nelson Mandela Gardens in Asaba, Delta State, and another hotel in Kano city.

Business in first quarter of the year

His assessment of business in the first quarter of the year is quite revealing, as he notes that, ‘‘April was very flat, we were very good in the first quarter, really good but in April, the election and its aftermath and the public holidays ate into the business days. ‘‘But otherwise we are very good, I think we’ve got a good transition and people know us and they are coming back. So it is looking good already.

We’ve hit a positive note as a brand

‘‘I think we really hit a positive note, people were more inclined to spend internally and we were able to keep our standard of service and product at a very good level and so we opened City Green Hotel in Yola and we have also opened Nelson Mandela Garden Hotel in Asaba.

‘‘We have three more projects that will open this year and two more that will open next year. So we are very positive with our rate of growth. ‘‘Therefore, we will have five hotels in operation by the end of the year and two in the pipeline for next year. So that is very positive and the clients see the value of using us. We are very close to them.

Our hotel is build on good foundation

He attributes the positive growth rate of the brand to the leverage that The Envoy Hotel has given them as not just only its flagship hotel but like its operations laboratory as well, as he says to you that, ‘‘our hotel was built on a good foundation, we had an owner that was sympathetic to proper standards and procedures.

We were able to achieve both standards and procedures as we won the World Travel Awards for Best City Hotel three times in a roll. ‘‘That tells you that even in international community, it is recognised. We don’t compromise on standards and even in designs, in development and operations. We just can’t as our clients are just too particular and our guests are widely travelled.’’

Competition and operating environment

Competition, he admits, is stiff, however, there is an upsurge in demand, which is good news for the market and for those who are properly positioned to take advantage of it. This, for him, is what makes the difference, as Silk Road Hospitality is all out, punching higher, neither relenting nor compromising on the essentials.

‘‘So, the competition is there and the demand is there,’’ he says, stressing, ‘‘that shows us that we are in the right spot and pricing is on the right spot. People would say let’s cut down on certain things at the hard time especially marketing and training but we are keeping on with those things and you might say that they are expensive.

‘‘Well, we say it is not expensive because we need to do them and we need to still recruit people with the right mind set and who understand what hospitality is. Those we are still doing as we are not compromising on them. ‘‘We look at what competitors are doing and we evaluate and re-evaluating what we are doing, our weaknesses, challenges and opportunities, advantages and strategize our campaign.’’

We’re very positive with our growth and development

Quite elated and happy with the growth trajectory of the brand, Kruger reveals that, ‘‘given our focus, we are very positive with our growth and development. Our approach to development is intentional, and our financial plans are good, we employ and improve local skills, we manage and promote from within. ‘‘Nigeria has a high level of skill in hospitality, so we are able to recruit, train and put them in the right mindset and attitude.

We’re positive about the market

He describes the acquisition and operational style of the brand as very focused, deliberate and purpose driven, as he says that, ‘‘For us, it is deliberate, it is focused, not just to go into any project. When we see the green light then we say yes, we are moving forward because the plan is good, the finances are there and the market is good. ‘‘We are positive about the market, we look at the micro economy of Nigeria, the direction the country is going; the approach of Nigerian people and businessmen.’’

The Envoy Hotel Abuja as the brand’s poster hotel

You are right to say that The Envoy Hotel Abuja is the poster hotel of the brand as Kruger himself admits that much, noting that, ‘‘We are developing from it, we promote from it and we are investing in it and it is an example of what we want to be and build.’’ He is delighted with the position of the hotel and its good health, saying, ‘‘I think it is doing well, our guest base is phenomenal.

We have international list of individuals, companies and NGOs that stay with us frequently. ‘‘We had the Commonwealth delegates here during the general elections, which was a big honour. ‘‘We have the trust and confidence of our guests.’’

I am satisfied and enjoying myself

Kruger expresses satisfaction with the way the brand is developing. Of course, he is in a good place and enjoying it all, as he discloses that, ‘‘it is like a Greenfield project and it is extremely enjoyment for me. My guests are wonderful, challenging but wonderful and then my staff. I love my staff, they are so committed and connected. Our reviews are good, even from the point of entry and security, we are deliberate about it.

Aspirations for the new government

He is also happy that a new government is coming on board in Nigeria, this is as he discloses his aspiration for Nigeria and the hospitality market. ‘‘I am happy to see a new president inaugurated. ‘‘We believe that the new president is a business man and has got a proven track record of getting things done and moving things along.

‘‘So we hope that the business environment will be settled and made friendly for visitors. That is a very big request that the business environment be made friendly, the country secured and infrastructure plans are good and functional. ‘‘It is good to have a plan but if it is not functional than is useless.’’

The future

The future holds a lot for the brand, as Kruger looks forward to more properties and moderate growth, as he says, ‘‘We have short term plan as we like to have five operating hotels by the end of 2024 and we would like to rush to a 1,000 room under our control by that same year. I think that will be moderate growth for us and if things pick up we might adjust. ‘‘I think we have a platform that will allow us to adjust.

It is like a green field project for me

Given his rich background and transit- ing smoothly, I should say, into his new role and brand, Kruger, who appears to have stamped his authority on the brand, says it is a green field project for him that he is devoted to nurturing into a giant brand, exploring perhaps the former Protea Hotel group model, which for him was very good.

Hear him, ‘‘it is almost like a green field project. We have Protea here before and it was a very good platform. Ending up with about 120 hotels across about 20 countries and later sold out to Marriott. ‘‘I saw how good that worked and I think that you can establish a brand and have about 20 hotels in Nigeria operating professionally.

You are going to have local rewards as maybe other groups and that could draw owners, investors, developers and guests to your property and that is the way I want to go.

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