Since beginning his career in Syria more than 25 years ago, Christophe Lorvo has worked all over the world in the hospitality industry. He landed in Japan in May 2009, in the midst of the financial crisis, to take up his current post as general manager of the Grand Hyatt Tokyo.
Lorvo has been with Hyatt International since 1992, starting as outlet manager and banquet manager at Hyatt Regency Paris-Charles de Gaulle in Paris. He is a graduate of the Ecole Hoteliere de Saint-Quentin en Yvelines.
1. McKinsey: Tell us a little bit about where the hotel is and who its customers are.
Lorvo: Our guests are 40% Japanese and 60% foreign. Some 50% of our guests, both Japanese and foreign, are repeatguests; about 70% are here on business.
Being located in Roppongi Hills is one of our strengths. This is considered one of the world’s most extensive mixed-use complexes. It has a world-class museum, the Asahi Television Broadcasting Headquarters, four exclusive residential complexes, and 200 shops and restaurants. This location helps us to be a lifestyle destination hotel.
I have worked in hotels in many different countries around the world, including the Middle East, the U.S, South America, Africa, and Europe. Coming to Japan and learning about the culture has been very inspiring, particularly in terms of the importance of respecting local tradition while maintaining modernity and international sophistication.
2. McKinsey: Are there differences between Japanese and non-Japanese guests?
Lorvo: In Japan, attention to detail is highly praised, and Japanese guests pay attention to service. But balance is key; service should not be overly offered. Many Japanese guests are also particular about ingredients, especially in food. Our foreign guests, of course, pay attention to service, too but ambience and friendliness also seem to be important factors. The importance of the wedding business in Japan, compared to hotels overseas, is another difference. Grand Hyatt Tokyo provides high-quality services and various venue options, such as our uniquely designed chapel. We also offer packages, such as second-wedding plans, using our restaurants.
3. McKinsey: A number of businesses closed in the aftermath of 11 March. Did Grand Hyatt Tokyo consider doing so?
Lorvo: Grand Hyatt Tokyo is committed to serving the community. Hence, closing the hotel was not a consideration. Immediately after the earthquake, we opened the lobby area to the general public, setting out chairs, and distributing water, blankets and sweets. Information about public transportation was also shared with our guests and we offered complimentary guestrooms for guests with children. We received a request from the Minato-ku ward to prepare banquet rooms to use as an evacuation area, and we opened the banquet rooms to provide accommodation and breakfast for employees who were unable to return home.
The hotel has also launched “Smiles for All,” a support project comprising fund-raising activities that we hope will bring smiles to both our guests and to the people affected. Activities include the setting up of donation boxes; the donation of the full price of bottles of Hyatt’s original wine, purchased in the hotel’s restaurants; and donations from charity accommodation packages and banquet sales. During the month of May, proceeds of Evian water sales will be duplicated by Evian to donate to those directly affected by the Tohoku earthquake.
4. McKinsey: What changes have you seen to your business since March 11?
Lorvo: Like most other businesses in Japan, we have seen an impact in line with what is happening in the industry. We have received cancellations, extensions and shortening of stays, as well as changes to arrival dates, due to the transportation situation. Nevertheless, as countries have lifted restrictions on travel to Japan and the sentiment is becoming positive, we are seeing positive changes. We fortunately have not seen a drastic fall-off in occupancy with our local guests and support from Mori tower companies. Our restaurant occupancy has almost returned to pre-earthquake levels. Safety is a very important factor that guests look for, and our property has been evaluated as having high-level safety measures. As Japan is beginning to rebuild and come back, we hope to see a full recovery soon.
5. McKinsey: What actions have you taken to deal with concerns about food safety and power outages?
Lorvo: As the safety of our guests and employees is our primary priority, we have been strictly following local authority’s control of safety and quality standards to protect our food supply from contamination. We are monitoring the situation carefully and controlling our food inventory in order to confirm the origin of all products to ensure that they meet our safety and quality standards. As for power outages, Roppongi Hills provides its own electricity, so the hotel is not affected by power shortages. However, following a request from the government, we are cooperating by limiting the use of electricity in the public areas of the hotel and back-office space, as well as by asking guests to cooperate with energy conservation.