Q: Could you firstly tell me a little about yourself and how you first started working with Hyatt International?
A: Well I’ve been in the hotel business for quite some time. After I graduated from hotel school in Switzerland, I stayed for a year in Germany, helping my sister run a Chinese restaurant. I then migrated to Canada, and I started off working for a chain restaurant there. After one year, I applied to Hyatt, and I joined as a night clerk – I worked overnight in the front office.

I found that very useful as it helped me to understand the lower ranking staff of the hotel business. I was then very lucky and moved up fast. I was given the chance to open two new hotels in the following years, in Cheju, Korea and Taipei, Taiwan, and then in 1996 I came here to Shanghai, to prepare the opening of this hotel. I was also put in charge of the development and operation of all the hotels in China (includes the region of Taiwan).

I think what was very important is that I was given the opportunity to open three hotels, which is quite unusual in our industry. I think in the hotel business, you have to have it in your blood. In many ways the financial reward does not correspond to the effort put in.

Q: Grand Hyatt Shanghai has a reputation for giving its guests the ultimate in 5-star treatment. In what ways do you distinguish yourselves from other luxury hotels?
A: I think first of all, we are blessed with superior hardware, being inside the tallest building in China and also being the highest hotel in the world. It’s almost like a place to see, rather than just a hotel. Not only do we have the most spectacular views overlooking the entire city, the environment and facilities in which to enjoy the views are superb – besides the luxurious accommodations, our 12 restaurants and bars are some of the best in the city – the highest pool and bar are both landmark places of the world. As a hotel built for the new millennium, our advanced technology includes wired and wireless broadband internet access, interactive TV and a technology butler at your service 24 hours a day.

On the service side – the software in the hotel – what we want to do is firstly, to exceed expectation, and secondly, to provide services before the guests ask for them. We also try to always give a very warm welcome and to make people feel at home. We want to be proactive. One of the things about Hyatt is that we have never wanted to be the largest hotel chain. We want to be the best hotel chain. Our emphasis is on quality rather than quantity.

One of the other things we concentrate on is value for money. Whatever we do, we don’t want people to think that because we’re a prestigious hotel, we sell everything for far too much. For example, the cost of a Coca-Cola is about RMB2. Traditionally, everyone charges RMB25 for cola. But I asked my staff why we charge RMB25 when it only cost us RMB2, so our Coca-Cola only cost RMB12 in room service.

If we are expensive, then let’s put it in the room rate and let that be what you expect to pay. I think all of these little things add up to a lot. We give people a sense of welcome, a sense of safety, a sense of warmth, and value for money.

Q: Having been here for a few years now, how do you feel about the energy in Shanghai, and particularly in the Pudong area?
A: I think it is really amazing. I came in April 1996. When I first arrived, people often quoted the saying: “I’d rather have a bed in Puxi than a house in Pudong,” and they asked me why we had picked a location in Pudong, thinking that we were crazy. At the beginning, I was worried, but now I see that our company made a very wise decision. With the support of the government, Pudong has simply transformed overnight.

It is amazing the amount of infrastructure that has changed, and the speed at which it has changed. I think that there are two things that have really brought Pudong alive. Number one is the opening of our hotel here in Jin Mao Tower. So many people come and visit here simply because they love to come and see the view. The second thing is the removal of the tunnel toll. I think for this reason that the Shanghai government is extremely smart.

Although they lost revenue there, they made people realise that Pudong and Puxi is actually one city. There was a sudden influx of people moving here, which in turn brought revenue for the government in land and property taxes. I think that now Puxi has become a bit stale. If you talk about newborn energy, you can see a more vibrant feeling in Pudong than in Puxi. I definitely think that Pudong will be the centre of Shanghai in the future.

Q: How do you feel the presence of the Grand Hyatt has affected the profile of the Pudong area in Shanghai, and Shanghai as a whole?
A: It’s definitely had a large influence. An example is the Fortune Conference in 1999. At that time, the Fortune Conference was the largest ever, with a total of about 250 CEOs out of the Fortune 500 companies. About 200 of them stayed with us, including Michael Dell [CEO of Dell Computers] and Jerry Yang [co-founder of Yahoo!].

Considering all these VIPs were staying at the Grand Hyatt, the government decided to take away all the areas that were not so developed around the building: to clear the space, and to make some park areas around. And that was the result of the Fortune Conference.

An interesting quote from one journalist has been, “With the opening of Grand Hyatt Shanghai, Pudong has suddenly become chic,” because prior to our opening, nobody wanted to come to Pudong. It was mainly countryside, and people didn’t often come here, but now it’s become a statement to say “I’m going to the Grand Hyatt.” The Grand Hyatt has definitely brought a lot of people over. It really represents the development of Pudong and Shanghai, and is the epitome of it’s future.

Q: Having mentioned how the hotel has affected business in the Pudong area, conversely, has the continued development and commercialisation of Pudong affected business at the hotel?
A: Definitely, to a large extent. Most of our business comes from Pudong. Of course, many of the Fortune 500 companies are located in Pudong, for example Intel and Coca-Cola. There is also the German Centre, newly created, which will bring in many German companies. The list goes on and on. So definitely, with the ultimate growth of Pudong, the scope of which is massive, we will benefit.

Q: Do you think the opening of the Shanghai Global Financial Centre in Pudong, to be built by the Mori Consortium, along with the planned opening of a luxury hotel at the top of the building, will affect business in your hotel?
A: Well, Mori is still considering which hotel may be put in the building. I don’t really think this will have a massive effect on our business. I know for sure that the new hotel will be relatively small. If they open, then there will certainly be competition, but by the time they open in 2005 or 2006, I hope that the supply will be big enough so that everyone has enough business.

Q: What plans does Hyatt International have for future hotels within Shanghai, and also for future hotels around China?
A: Remember that we are more a quality-concerned hotel company rather than worrying about quantity. I think that now, with Grand Hyatt Beijing open, we have a hotel in all the must-have places within the entire Asia-Pacific region. But when we start to think about having a new hotel, the first thing to consider is location. The second is the owner’s mission, which must be similar to ours. Finally, we have to consider the market, which is a very important factor.

We are not planning to have hotels everywhere in China. The current plan is, by 2005, to have 12 hotels here, whether in operation or under construction. Of course, we currently have hotels in Beijing, Shanghai, Xi’an and Tianjin. The Hyatt Regency Hangzhou should be open by the middle of this year, and we also have a project in Chongqing which should be opening in 2003, so that will makes six hotels within China.

One thing for sure is that we will have one more hotel each in both Beijing and Shanghai. For the final three hotels in China, we would like to have one resort, and the perfect place for that would be Hainan Island. I think Chinese people are now ready to go to resorts, and Hainan is the only place in China that one can say has a true Hawaii-style climate. The other cities that we may like to be in are cities such as Kunming, because of the unique culture, and maybe Chengdu, Guilin, Guangzhou, Shenzhen, Xiamen or Dalian.

Background
Edward Tai is the General Manager of the world’s highest hotel, the Grand Hyatt Shanghai, located in the top 35 floors of the magnificent Jin Mao building. He is also the Regional Director for the China region of Hyatt International, the worldwide luxury hotel chain.