Langham extends brand name to Sheraton Melbourne, Auckland

By Heather Jacobs AUCKLAND Langham Hotels International (LHI) will rebrand the Sheraton Towers Southgate in Melbourne and Sheraton Auckland Hotel and Towers in Auckland as Langham Hotels from January. LHI, the hotel operating and management arm of Hong Kong-based Great Eagle Holdings, has owned the two properties since 1997. Its five-year management contract with the Starwood Group expires in December. Renovations are planned for both properties, including the installation of an Oriental-style spa facility, to attract smaller scale meetings, and incentives business to the hotel. Brett Butcher, vice-president operations (Australia and New Zealand), acknowledges the risk in changing the name to a lesser-known brand in these markets. "Sheraton is a very strong brand; however, we believe with the Langham brand and our expansion plans, we are going to be able to run these hotels as well as they have been run in the past," he said. Butcher said the first priority was establishing a Langham property in Sydney. A resort in Australia or the Pacific Islands is also on the cards. Butcher said the CEI market for both countries is continuing to expand, driven by strong tourism growth, which is making them attractive as incentives destinations. While Japan will continue to be an important market, Butcher expects the strongest growth in the incentives and meetings business to come from China and the company is currently establishing an outbound sales office in Shanghai. In Auckland, Langham will have a five-star competitor when SkyCity's 316-room Grand Hotel opens next year above the casino operator's new convention centre.