A lot of boutique hotels opened everywhere, but it's a matter of sustaining them. I meet people like that all the time - people who think that because they stay in hotels they can become a hotelier, or they eat at enough restaurants so they become a restaurateur. They don't realise that in the long run it is a profession.

Q: How is the luxury hotel business doing right now? Where do the guests usually come from?

A: Leisure travel is exceeding Business travel in the speed of its rebound. 2011 will still be viewed as a year of recovery with 2012 being the first year for real growth post recession. Even though China and India are experiencing economic progression they do not generate substantial amounts of luxury hotel bookings to date. In fact the top 3 countries producing travellers in this category are the US, the UK and Brazil.

Q: Have the expectations of guests changed after the financial crisis? Do luxury hotels feel the need to be competitive on prices?

A: Discounting was viewed as a disservice to the luxury industry and serves only as a quick fix and will cause larger problems later on. There is a nice comparison to Louis Vuitton's mantra of 'never putting things on sale'. The drive here is to believe in the brand and add value. Customers will pay if you meet and surpass expectations.

Since the recession the idea of luxury has been diluted. In the luxury travel business we need to redefine what the concept of luxury travel entails and incorporate a more customised and unique experience. When opting for simplicity, the basics should be exceptional. Service, service, service creates an exclusive and individual experience, and showcases quality.

Q: How about business travellers? Do you see they are more pragmatic with travel budgets? And how should the hotel industry cope with that change?

A: The correction has brought more old-fashioned values back into view. People are not willing to overpay for things anymore. On the other hand, there are always people who are willing to pay a premium for really good service.

I know the corporations travelling today, even within Europe, they cut all business-class travel because it is too expensive. It is the same thing with hotels. Budgets have been largely reduced. People who used to go to five star properties now stay at four stars and the four star guests now go to three.

I created some hotels recently in Paris which are between three and four stars, but they give very good value for money. They are hip, they are fun places, not trying to be overly serious, but friendly you know. I don't do trendy hotels. So they are timeless, interesting concepts and designs, but at the end of the day they seem to do well.

Q: How are independent hotels pitched against the chain hotels, which probably score better with the star-system?

A: It is like shopping, you go into a global store, you know what to expect. Where I like go to shopping to Milan and Hong Kong to look for things a bit different from the rest with a bit of local flavour and a bit more creativity. Does that mindset sit together with LV and Miu Miu? I am sure it does. Both can work. Today in my wardrobe, I could have YSL. I am wearing a blouse from J.Crew - this was US$80, and then this is Euro850 [HK$9,300]. That's the new clients. They can choose, they have the confidence to mix and match things of different social [levels]. I think it's cool. If we look at style magazines, they dissect what the celebrities wear, they can be in Dolce & Gabbana jeans and they can wear a $30 Tee-shirt from H&M. Why not?

Q: What is the hotel scene like in Europe, and Paris?

A: In Europe, more than 60 per cent of the hotel inventory is still owned and operated by independent individuals, as opposed to the United States which probably has a much smaller proportion of independently-owned hotels. In Paris, up until five years ago there was still a shortage of major chains. They couldn't penetrate a market like Paris because more than 50 per cent of the inventory was just non-chain. But chains like Shangri-la, and Peninsula, finally got there after so many years of waiting.

I got my training with the chain hotels. And now I have developed my skill set to take existing hotels that are losing money, or looking very tired, and my job is to come up with a vision. I put a team together, do a costing and redevelop the whole project. I reposition the hotel. Sometimes it is also taking advantage of an historical building and transforming it into a hotel. Like in Lisbon, five years ago a local developer asked me to turn this 18th century building into a small luxury hotel with 85 rooms

Q: How do you turn around the hotels which solicit your operation and management services?

A: My speciality is properties with 60 to 120 rooms in Europe.

I adapt to the building, and do a lot of customised work. Only very recently the chains finally understood that the boutique hotel movement has really cultivated a clientele which they would love to have. That's why they develop smaller units - even Mandarin has developed a hotel in Landmark which is less than 100 rooms. Before, they never dreamt of doing that.

Q: What are the areas you look at when giving a property a facelift?

A: Operationally, we will have an assessment of everyone. If the right person is there we continue, if not, then we change the management, almost systematically. A lot of time when you take over hotels, they are tired, they lack energy, their performance is down and there are reasons for that.

A lot of the time it is harder to change people than carpets and curtains. Sometimes you can't change people and they have to go. It's sometimes worthwhile to pay people (to go) who have negative energy - they don't want to change, they don't want to hear about anything that you want to bring in. It is a matter of calculating how much damage you will make in the future by keeping them on the payroll.

Q: Don't you find it sad? It's usually people who have helped laid down the foundations of the business who are most reluctant to change.

A: Today, even for those who have the expertise, they are replaceable. All of us are replaceable. I have no illusions about that. So for those who think they are the corners, they are not going to last.

Q: Do you pay attention to the star-system at all when you re-position a hotel, or would you rather use another set of criteria to guide you where you should go?

A: The star-system varies from country to country, and it is always useful because it gives a certain structure and discipline so that hotels can meet certain requirements. For example, in Europe disabled persons' requirements are very demanding. It is always good to make sure needs are being met.

But what I don't believe is what happened before 2009 - people came up with six stars, seven stars, and that is totally absurd. This is totally over the top.

Q: How do you categorise your hotels then?

A: I use fashion terms instead. Haute couture is like five-star, because it is more customised, more refined. Then pr?t ? porter clients are willing to take the risk but they prefer a more private atmosphere, and the casual chic category is basically like a diffusion line - like if you look at the Armani it will be Emporio Armani.

And I have the one called the Jules that has been a real success since it opened in 2009 in the middle of the crisis. We immediately signed up a lot of fashion groups. It was quite interesting to see that the sophisticated clientele are not bothered by the fact it is not in the typical district that you consider chic and all that. People love it.