Hotels Are a System, Not a Product

I have known Nixon Chung for many years, so recording this conversation felt more like catching up than interviewing. I still came away with more notes than I expected.


Nixon began at the China Hotel in Guangzhou in 1983, just as China opened its doors. Four decades later he is the founder of Camloy International and has helped build Smartech Intelligence, which applies data and AI to hospitality. That gives him a long view and a current one. Both matter while our industry is changing so quickly.


What a Single Hotel Can Teach You

Nixon described the China Hotel in three phases. It was first managed by a regional group that brought international practice into China. Then Marriott ran it for twenty years. Today a mainland Chinese group manages it. Over that time the share of international guests has fallen, and about 90 per cent of guests are now Chinese.


I recognised the pattern. In 1996 I was sent to the Shangri-La in Hangzhou with two years left on the joint venture. I was meant to wrap things up. The local chairman asked us to stay instead, because he understood what the brand brought. We planned a renovation and in 1998 signed a 25 year extension. Two hotels, two outcomes, and the same lesson. The guest base shifts, and the owners who adapt are the ones who last.


Owners, Operators and the Lifecycle

Nixon moved from operations into advisory work because he saw where he could add the most value. He had spent years serving Asian family owners. He wanted to help them look at the whole life of an asset, from conversion and rebranding to the day they choose to exit.


His view of the most common mistake was direct. Many owners still see a hotel as real estate. It is a hospitality product, and its value comes from the experience as much as the building.


He also described a model I found fascinating. In China a new kind of investor leases an existing hotel for around fifteen years and converts it. The owner collects rent and carries less risk. If the property improves, the owner can sell. Asian owners now have more choices than before, including operators, franchises and leasing. Conversion makes sense for another reason too. Building new is costly, and the environmental cost is high.


Lessons from Projects That Did Not Go to Plan

Nixon was candid about two ventures. He ran a shared club concept called The Place in Shanghai for seven or eight years. It used a rooftop space to offer a club without each member group needing to invest in a property. COVID changed customer habits, and heΒ chose to stop. He also pointed out that private clubs struggle in China. Guests value privacy and personal security, and many do not want to be seen as members of anything.


His Koh Chang ecotourism project began in 2018 with an investment fund. It was a preserved island with no airport and three plots of land. Then COVID arrived and investors lost their appetite. His conclusion was simple. Timing decides everything, and a long development period leaves you exposed to events you cannot predict.


AI, Guests and What Really Matters

I asked Nixon what AI means for hotels. He was sensible about it. A robot in the lobby is a gimmick and hard to measure. He sees two real uses. AI can simplify operations so that managers and front line staff have more time for human contact. It can also help hotels understand their guests through their data.


He believes guests now expect three things. They want to be recognised. They want their data protected. They also want a reason to travel, which means a hotel has to help them understand the destination and its people. His "China Plus" approach follows from this. It uses the Chinese supply chain for cost, treats China's real world use of AI as a testing ground, and recognises that Chinese guests are creating new habits that the rest of Asia must serve.


On sustainability, Nixon was blunt. Saving water and changing linen less often makes little difference to a guest. If the guest takes nothing away from it, it becomes a procedure. The bigger gains come upstream, in the materials chosen for new builds and conversions.


A Few Personal Reflections

My old CEO at Shangri-La used to say that hotels simply sell sleep. Nixon takes the opposite view. He believes hotels should become integrated systems that connect with their communities and understand their guests deeply.


We both noticed that the human touch still wins. I told him about a Singapore Airlines flight to Bali. A steward saw me struggling with the Wi-Fi, borrowed my phone and spent ten minutes getting me online. I still remember it. Nixon's point was that a robot doing the same thing would mean nothing.


We also spoke about wellness. Nixon sees hospital groups in Thailand opening resorts with clinics inside, because hotels may lack the mindset for medical care. It reminded me of a health check I had in Bali. The hospital was excellent and very affordable, but the hotel concierge only gave me a phone number. That was a missed opportunity.


Nixon's closing news surprised me. He is working with investors on a members only private jet service with regular schedules, using aircraft of around thirteen to thirty five seats and flying within about six hours of Hong Kong or Singapore. It brings a club approach to the sky. It reminded me of the groups of expats who clubbed together to charter flights out of Hong Kong during COVID.


Key Lessons

Hotels earn their value through experience, not property. Timing can undo a good idea. Conversion and leasing offer owners more flexibility than they once had. AI should free people to be more human, not replace them. Sustainability must deliver something the guest can feel.


Nixon also said that tomorrow's hoteliers need to handle crisis and climate risk, stay aware of what is happening beyond their own building, and go beyond being proactive. The same goes for how we talk to younger colleagues. We should learn how they communicate before we try to teach them.
I look forward to hearing how the airline develops.

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