From a receptionist to general manager

By Morris Aron

Austrian by birth, 53-year-old director of operations-Africa and general manager of Intercontinental Hotels Group (IHG) shuffles through documents and signals for a minute as he gets ready for the interview.

It is easy to notice the mounds of paperwork in several trays at the front of his Mahogany desk to the shelf upon shelf lined up across the walls.

Karl Hala is in charge of more than 4,600 hotels across Africa owned by IHG. Among the portfolio under his watch include a number of exclusive high-end hotel facilities.

Take for example the world-class presidential suite at the Nairobi’s Intercontinental Hotel which is fully equipped with bullet proof windows, an in house bar, a visitors waiting area and two security staff bedrooms, one of its kind only rivaled by Serena Hotel.

"All of the world’s mighty and powerful have slept here," says Mr Hala.

"That is the reason we take extra care and go to extra detail to ensure that nothing is left to chance."

Work and experience

Hala was posted to the country three years ago after more than 26 years experience in the hospitality industry, having held several managerial positions throughout his career across a variety of properties and countries, with special focus on the African market.

"My job is to ensure that we expand our presence in the African market," he says.

He joined IHG in 1991 and worked across several hotels and resorts and Crowne Plaza properties in Africa, the Middle East, the Caribbean and Europe.

In 2000, he was appointed General Manager of InterContinental Budapest in Hungary, where he managed a major refurbishment project for the hotel.

In his last position as General Manager of Intercontinental Warsaw, Poland, the property won several performance and excellence awards.

During this period, Hala also championed the growth strategy for the InterContinental Hotels and Resorts brand in the Polish market. With this experience, it did not take long before he was appointed to head the African operations.

"When asked if I was interested in taking up the position in Africa, I gladly obliged as everybody sees this continent as the next growth frontier," says Mr Hala.

Area of expansion

IHG operates 76 properties and 18,617 rooms within the Middle East and Africa, with a further 43 properties and 11,126 rooms in the development pipeline.

Recently, IHG unveiled plans to double their Africa portfolio in the short and medium term.

"You are right, Africa is a key area of expansion for us, hence, the reason for the current fact-finding visits."

"Some time ago, we carried out a strategic analysis of Africa in regard of our markets, and we found out that in a number of key cities, IHG was not present or we had been there in the past and should consider re-entry into those markets."

IHG’s eyes are focused on using Nairobi as the launching pad to have their presence felt. Next in line is a plan to copy the same in Lagos, Nigeria.

Africa’s investment climate has changed in recent years, often driven by a boom in resources and commodities.

"The biggest challenge for us is to understand the countries and understand the markets," says Hala

And the strategy reads like a cookbook menu.

"When we are looking at new locations, a crucial factor is political stability. As a globally-operating hotel group, it is of utmost importance for us that our guests and our staff are safe."

Traditionally, whenever IHG invests in a country, the average management agreements are between 15 to 20 years in length.

The group is also keen on identifying the right business partners and the cultural diversities from country to country.

IHG’s normal operation standard is that it enters through five-star Intercontinental brand.

Customer service

"We value our customers and as such give them what they expect of us — a large property, often with a convention centre, multiple restaurants, with all the required infrastructure to guarantee safe operations for guests and staff," says Hala.

But the construction of a five-star hotel is not always a smooth sailing. Sometimes IHG has been forced to analyse the financial environment of any area they operate in before deciding whether to build, get into equity arrangements or even franchise.

"We combine all these models depending on the market after carefully studying it."

In countries where average room rates are relatively low, IHG uses its middle income brand such as Holiday Inn, which is also a full-service operation, or the Crowne Plaza brand or a combination of all.

Kenya is among the countries where IHG has mixed all the brands given the high level of differentiation of the market.

The newly constructed Crowne Plaza in Nairobi for instance is an example of a modern contemporary hotel located in an emerging business hub outside the Central Business District.

Treatment of staff

It is an example of a good upscale business hotel complementing the group’s operation in the city. Otherwise, they rely on upgrading locally existing establishments into a four or a five-star status.

So how does the treatment of staff play in all this?

The group has in place an elaborate staff-training programme with association with local institutions that have international reputation.

In Kenya, IHG has a close working arrangement with Kenya Utalii College and Strathmore College. Hala was a one-time trainer at Utalii college.

In Nigeria, the group has a close relationship with the Abuja School for Hospitality training towards the same aim.

"We do this so as to blend international training with local preferences," says Hala.

With such a big assignment, how did an individual who at one time wanted to be a priest end up in the hospitality industry?

"My three aunts owned hotels and I would work there to earn some money. My first employment was a night auditor."

Simply put, at the beginning of his career, he was a night receptionist cum accountant. A long journey indeed.