The perfect host

Krzysztof Wieslaw, Rezidor Hotel Group director of finance for south of Europe and Poland, oversees the financial performance of 16 properties including flagship hotel, the Radisson SAS Warsaw. Colette Steckel checks in

It is 6pm and the lobby of the Radisson SAS in Warsaw is buzzing with the hotel's equivalent of rush-hour: a group of American tourists with a trail of luggage and broad smiles are loitering by the lifts with their key cards at the ready, a bus-load of Japanese visitors, dropped off from a day's sightseeing in the city, are filing through the doors, and a crowd of businessmen are winding down at the lobby bar. Surveying all this with an approving nod is Krzysztof Wieslaw, Rezidor Hotel Group director of finance for South of Europe and Poland.

'Warsaw hoteliers are operating in a tough, mature market,' he begins. 'All the big players are here: Westin, Hilton, InterContinental, Marriott, Sheraton, and we compete fiercely with each other. There are around 10,000 rooms in the city, of which 4,000 are in four and five star properties so, naturally, hotels will compete on price in order to fill the house but excellent service is vital in winning business.' He points out that hotels can suffer from low occupancy levels if service is less than exemplary; a claim that one Warsaw-resident agreed with remarking that despite a hotel's pedigree, news of poor service travels fast in Warsaw. 'The most important thing in the hotel business is the people and the devotion they give to their jobs, whether it's in the kitchen, health club or front of house,' continues Krzysztof. 'In this industry, that makes the difference between having a profitable hotel and a loss-making one.'

Deloitte HotelBenchmarkTM surveys, which track the performance of the hotel market, are requisite reading. Last year's surveys (2006) reveal that of the five star properties in Warsaw, occupancy rates at the Radisson SAS were 81% compared to the total market of 68%, while Revenue per available room, the key indicator of hotel performance, hovered around €65 compared to the market average of €61. 'The biggest success, which I'm extremely proud of, is that this hotel is one of the most profitable in Warsaw,' remarks Krzysztof. 'The Revenue per available room figure shows that we are doing well and holding our own against the competition.'

The hotel's RevPAR has been healthy since 2004 (the hotel opened in 2002), when Warsaw hoteliers emerged from a difficult period of low occupancy and declining average room rates dating back to a hotel construction boom in the city at the beginning of 2000. Hilton Warsaw, which opened earlier this year, is the only major opening in the past four years. While Hilton's foray into Poland has not been greeted with open arms by Warsaw's hoteliers, who fear that the increase in rooms will place rates under pressure, Krzysztof argues that the growth in foreign investment in Poland's commercial hub and increasing visitor numbers means the city can accommodate another five star property. Optimism over the growing business and tourist traffic flowing into the city is supported by Warsaw airport, which is about to unveil its expanded facilities and a new terminal at the end of 2007 to handle a projected six-and-a-half million visitors per annum.

Krzysztof notes that Poland has a lot more to offer outside its capital. 'Warsaw has always been a business-oriented city. There aren't as many tourist attractions as in Krakow or Gdansk, it is expensive and space is scarce; the tendency now is for companies entering Poland to look to cheaper, secondary cities like Lodz [100km from Warsaw] to base their operations.' Computer giant Dell is scheduled to open in late 2007 a €200m manufacturing facility in Lodz, which may well herald a commercial boom in the city - Krzysztof points out that Radisson is looking at a property there - while in the south, Krakow is fast becoming a cultural destination that is drawing visitors and rivalling European cities like Vienna and Prague.

EU brings stability

The steady stream of visitors and business travellers to Poland is down to the country's accession to the European Union in May 2004, which has helped bring about political and economic stability and facilitated an open skies policy, with low-cost airlines and national carriers introducing new routes. According to the World Travel & Tourism Council, Poland travel and tourism business is expected to generate US$43.5bn of economic activity in 2007; a hike of 4.3% on the previous year's figures.

Krzysztof comments that since joining the EU, there has been a positive impact on hotel performance. Revenues in Poland for the Rezidor Hotel Group, which manages the Radisson SAS hotel brand as well as Park Inn, Country Inn, Regent and Missoni, are growing between 7%-20% per annum, with forecasted revenue for 2007 at TEUR 35,000 from four properties (in Warsaw, Szczecin, Wroclaw and Krakow). Another three properties under construction (in Gdansk, Poznan and Krakow), and expected to open between now and early 2009, will broaden Rezidor's hotel portfolio in Poland, in time for the hotly-anticipated Euro 2012 European football championships hosted in Poland and Ukraine. 'Matches will be in the venues in which we already have hotels [Warsaw, Gdansk, Poznan and Wroclaw] so we will be well-prepared for an influx of visitors. The good times are coming.'

Krzysztof joined Rezidor Hotel Group in 2004 after stints at Unilever as a project manager within the finance department, heading systems implementation in Poland, and at telecommunications company Elsinco Technologies, where he was responsible for setting up a finance department in Poland for the Austrian company. He began his finance career at KPMG in 1996, on graduating from Warsaw University, and gained experience working on a range of clients and industries, although never within the hotel industry, he recalls. It was here that he opted to study ACCA rather than the Polish accounting qualification, which, he remarks, would be essential for a career in international business. 'At some point, Poland would join the EU and, for that, fluent English and knowledge of International Accounting Standards are a must.'

He was headhunted for the post of finance director of Radisson SAS Warsaw following three years at Elsinco, by which time, he says, he was ready for a new challenge. Within three months of joining the hotel, he was appointed director of finance for Poland and, in 2006, he became the director of finance for south of Europe and Poland. He oversees the financial performance of 12 hotels in south-east Europe (Slovakia, Czech Republic, Hungary, Austria, Croatia, Bulgaria and Romania) and four hotels under construction, as well as the existing and proposed hotels in Poland, with combined revenue of TEUR 82,000. He is in charge of a team of 11 finance and purchasing staff in Warsaw, and currently 16 hotel financial controllers, which means he is frequently travelling and experiencing the hotels for real. 'I enjoy the fact that I'm not responsible for just one property,' he remarks. 'At any time I could be dealing with a hotel in a country with different cultures and varying needs. I see how the hotels operate in the region, how each department works, and what difficulties they may be experiencing. I get to see the big picture. My job isn't just about the numbers; I have to have a thorough understanding of running a five star hotel.'

Rezidor's successful listing on the Stockholm Stock Exchange last year has meant rigorous reporting and forecasting requirements have to be met on a regular basis. And, with more expansion expected in Poland and south-east Europe in the coming years, Krzysztof's workload and responsibilities will increase. But despite the demands of his job, he still enjoys walking the hotel floorboards, valuing the insight he gets from talking with staff and learning about the issues they face. As we wander around the Radisson SAS Warsaw - Rezidor's flagship hotel in the region - the immense pride Krzysztof has in the staff and the property itself is etched on his face. 'A hotel is open 24/7. It never sleeps. That has to be one of the most invigorating environments in which to be a finance director.'