APRIL 2018 FORBES APRIL | 53than Hong Kong, and he’s lived there since. he government
had just announced initiatives to boost tourism, leading to a
number of hotel sites coming on the market. Within 16 months
Park Hotel had three Singapore projects in the works.
Walking through the Grand Park Orchard today, Allen
marvels at its transformation into a ive-star “cash cow.” He
points to the design features he selected—the subtle herring-
bone pattern that echoes through the halls and the colorful
glass chandeliers by American glass sculptor Dale Chihuly.
And at street level on Orchard Road, the hotel’s money-spin-
ning retail podium teems with customers. Its newest tenant, an
Apple store, opened last spring in a space the size of four shop
fronts. Next door is the upmarket Abercrombie & Fitch retailer,
while around the corner near the hotel entrance, he Hour
Glass operates a luxury jewelry boutique.
But make no mistake; father and son don’t regard hotel
properties as family keepsakes. Rather, every hotel the group
owns is for sale at the right price, especially when it doesn’t
see any more value it can add and the market outlook isn’t
improving. “We are known to be business-driven,” says Allen,
noting that every asset is reviewed each year. “We never try to
catch highest or lowest price. If we’ve done all we can do, we let
someone else have it.”
Sensing a market peak for Singapore in 2013 , the Laws sold
two of the three hotels they owned there, putting the proceeds
into Hong Kong residential property,
with a slice for the family’s charitable
arm. he Orchard Road hotel went to
a mainland Chinese bidder; Park Hotel
continues to manage it. While Allen
won’t disclose the price, he points to news
reports that note it was a record-breaking
igure of more than $900 million, setting
a new benchmark for Singapore of nearly
$1.2 million a room.
Before the sales the Laws had planned
to take the group public, but during nine months of prepara-
tion, market conditions changed and the portfolio’s value fell.
“We missed the right time and called it of,” says Allen, adding
that he and his father would again consider going public if the
opportunity looked promising.
Last year the Singapore press reported that Park Hotel
would entertain ofers for its last Singapore property, the
luxury Grand Park City Hall that also includes a retail podium.
Property agent Savills reportedly had it on the market for
around $740 million, or what could be a record $1.25 million a
room, which prompted speculation that the group was shiting
to an “asset-light” strategy.
Allen dismisses that characterization, while saying a
potential buyer now would be looking at an even higher
$1. 37 million a room. Though he won’t discuss details,
he said Park Hotel began receiving unsolicited bids from
several players last summer that made a potential sale worth
considering, particularly because hotel renovations would
be finished this summer. “A l l properties are for sale,” he
stresses. “It’s a matter of price. That’s our take.”
Also on the market for several months last year, though
of the market now: the new Park Hotel Farrer Park in
Singapore’s Little India, owned by RB Capital since 2013
and opened last May. Beginning with the construction, RB’s
chief executive, Kishin RK, worked with Law to develop the
property, which, like the Grand Park Orchard, sits next to a
private hospital complex. “Allen thinks like an owner,” says
RK, citing what he says is Allen’s entrepreneurial spirit, atten-
tion to detail and keen eye for proitability. “It’s been a good
relationship.”
Networking is clearly important to Allen’s wider ambitions.
Hiring and retaining quality staf to build the brand is his No.
1 challenge, especially in China, where the group owns three
hotels. He regularly travels throughout the region to build
relationships with staf as well as with customers and partners.
Trips can last anywhere from two days to two weeks a month.
As for his leadership style, the former math major calls himself
“very meticulous” and prone to micromanaging. “Numbers
still talk to me quite well,” he says. “If I don’t look into the de-
tails, things may fall apart. I stress-test the system to make sure
everyone is on the ball.”
He also stresses what he regards as the company’s core
values of integrity and honesty. “If we think we can’t get the
business without corruption, we call it of,” he says, noting thatin Indonesia and India, Park Hotel considers only management
contracts and does not invest in projects because it cannot
abide by local practices. “To me there’s 1,001 ways to make
money so why sacriice core values?”
Despite sticky relationship ties to Hong Kong—his parents
would like to see their son return home—Allen seems likely to
remain in Singapore, where he is a permanent resident and is
raising two young sons. His wife, Tan Shin Hui, granddaughter
of retired Singapore billionaire banker Wee Cho Yaw, heads
the group’s communications operation. hey were married in- Will he become a Singapore citizen? He says he doesn’t
know, but then adds that to do so, he would have to give up his
two passports—Hong Kong and the U.K.
For now, he appears pleased with the status quo. He calls
Park Hotel “very healthy,” with cash reserves to deploy, but as
always, he and his father are exercising caution as they search
for the next property play. “he markets are highly volatile, and
it’s diicult inding the right project,” he says. “We’re waiting.
We are low risk. We’re not in a rush.” F
“THE MARKETS ARE HIGHLY VOLATILE,
AND IT’S DIFFICULT FINDING THE RIGHT
PROJECT. WE’RE WAITING. WE ARE LOW
RISK. WE’RE NOT IN A RUSH.”