Exclusive Feature: An one-on-one interview with David Etmenan, CEO & Owner of Novum Hospitality at the Novum Stand IHIF 2018 Berlin.

L & R: David Etmenan and Joseph Fischer

JF The Novum Hospitality started back in 1988 as a privet GMBH family business by your Father. You have grown to 160 hotels in 2018. Do you see the company staying as a “family business” or would you consider moving to a “Public company” model?
D.E. In our 30 years of company history we always relied on our family and friends. Even for our strong forwarding expansion in Europe – currently operating and developing 160 hotels with more than 20,000 rooms – we’ll keep strong with short internal communication and decision structure. Our owner and CEO, David Etmenan, and his family is proud of being recognized as solid merchants and entrepreneurs with their state-of-the-art reliable ‘handshaking’ business style; you can always trust on them. In addition, the whole owner family pays carefully attention on their employers and families.

J.F. Most of NOVUM growth came since 2010. where do you expect to see NOVUM Hospitality in 10 years’ time in terms of number of hotels and geographical spread?
The journey never ends. With our innovative niu hospitality & lifestyle concept we’ll focus on emerging city destinations in Europe – and in fact a successful transformation of our hotel portfolio. The number of 40 niu development projects today will be increased by two-digit numbers while conquering hotel markets in Western Europe and the UK.

D.E. So far, all of your development activity was in Europe. Would you consider moving to the Middle East – GCC? How about Africa? What about Eastern Europe and Russia?
Central & Eastern Europe are on our radar. We are considering further destinations – but this is part of our group’s vision.

J.F. Currently, Novum has 3 independent brands Novum Hotels, NIU and SELECT, but you also have franchise and JV agreements with global brands such as IHG, ACCOR. Do you consider the global brands as partners or as future potential competitors?
For each city destination we consider a variety of accommodation services, i.e. lifestyle feeling for millennials and digital natives (niu), budget & comfortable overnight stays (Novum) and first-class business & conference hotels for MICE bookings (Select hotels and franchise hotels with i.e. IHG, AccorHotel, Best Western and Choice International). We are convinced that a wide portfolio of different, successful hotel brands is the right answer for the hotel markets today and in the future.

D.E. We have seen Accor aggressively moving to JV deals with new brands. 25HOURS, MAMA SHALTER, RIXSOS. So, if tomorrow, IHG will come to you and offer you a partnership, would you consider it?
We are cooperating with multiple global international brands such as IHG and Accor, however we are a family business and we are aiming to keep our own independence which allows us to be very fast and agile when it comes to new deals.
With IHG we’re developing Germany’s first Staybridge Suites hotel concept in Frankfurt (Staybridge Suites Frankfurt Alte Oper, 146 rooms/apartments, opening in 2020) and the Hotel Indigo Frankfurt Alte Oper (238 rooms, opening in 2020).

J.F.The “name of the game” for each and every hotel company today in having a great B2C distribution. OTA’s, M&A activity between global brands. Airbnb moving into hotels soon to be followed by GOOGLE, AMAZON. How can you compete in this very competitive playfield?
D.E.With niu we establish easy-to-use IBE for direct bookings, smart solution for smartphone check-in, check-out and mobile payment, automated invoice handling and – in the near future – voice-control systems for in-house communication. We believe that the advantages of digitization will be the cutting-edge factors to compete in this revolutionary times in the hospitality industry.

J.F. Can you tell us in percentage figures how much of your bookings activity comes via OTAs and how much comes trough your own direct channel?
D.E. We strengthen our sales actions with meta searchers Trivago und Kayak beside our strong relationship with leading OTA Booking, of course. Our strategy to offer best available room rates for niu via our own IBE is successful; booking numbers with c-booking system are increasing strongly. In addition, analyzing big data with CRM tool ‘DailyPoint’ enables our sales and marketing team to follow-up loyalty and corporate guests.

J.F.Do you consider expending your brand activity into Hostels, Pod Hotels?
D.E. Indeed, all options are on the table. We are expanding with well developed serviced apartments concepts, niu Apart, too.
And in our ‘hotel lab’ division we’re creating another new lifestyle brand for stylish boutique hotels.

J.F.If asked to give a raw model name, someone in the industry you look up to who whould you name?
D.E. Hardly to be honest… well, let’s say David E. could be (hotel) brand of itself. Just kidding…

J.F. How can you best describe Novum Hospitality corporate culture?
D.E. Since the early beginning, Etmenan family is proud of being recognized as solid merchants and entrepreneurs with their state-of-the-art reliable ‘handshaking’ business style; you can always trust on them. In addition, the whole family pay carefully attention on their employers and families.

J.F. In your view, What is the biggest asset the Novum brand owns ?
D.E Tipping to the point: 30 years success story of a family-run business.
In 1988, David’s father Nader Etmenan opened the first hotel in Hamburg near the central station passing his dedication for service quality and true hospitality to his children. David E. worked in nearly every position at his parental hotels and learned this business from the first second and the earliest beginning. Creating Novum brand such as stunning and innovative niu concept – and much more, i.e. first-class Select hotels, a multi-decade experience and purposefully development of powerful sales channels are the core assets of our own, strong hotel brands which will become international meaning and reputation, for sure!

Joseph Fischer is the CEO of Vision Hospitality & Travel - An international lodging & hospitality consulting firm. He is a veteran hotelier with over 30 years of extensive management experience in the global lodging Industry. A strategic “out-of-the-box” thinker, visionary, with plenty of tangible and ready-to-be-implemented ideas. Joseph is a frequent contributing writer on 4Hoteliers.com global new portal.

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