The Hills resident worked at the hotel when it opened more than 25 years amid much hype that Parramatta could never support a 5-star hotel.
Media commentators of the day were mostly united in their view that the west of Sydney was destined to fade into the suburban abyss, downtrodden and culturally sterile.
Time, of course, has proven otherwise and as the Parramatta Parkroyal considers major extension plans Michal and his team are more optimistic than ever of that brave move more than two decades ago to open premier hotel in Parramatta.
He brings to his new role an in-depth understanding of the hospitality industry in Australia and New Zealand, backed by almost 30 years of experience managing business hotels, resorts and tourist attractions across the two countries.
Pan Pacific Hotels Group's portfolio in Australia includes two other hotels - namely Parkroyal Darling Harbour, Sydney and Pan Pacific Perth.
Michael Johnson spoke exclusively to WSBA editor, Michael Walls.
WSBA: This must a home coming of sorts for you Michael after so long away. Do you still feel those emotions as you look around the city today?
MJ: Prior to coming to Parramatta, I was General Manager at the Parkroyal Melbourne Airport. But I was commuting with the role – backwards and forwards to Melbourne. And just with where family commitments were, it wasn’t the right time to move the family. And then this opportunity came up to resettle in Sydney. You know, it is interesting coming back to a hotel that I opened 27 years ago.
WSBA: I’m interested in that, in what sense?
MJ: Although in a different role – in the capacity of I was doing Food and Beverage in those days. And of course it was in the days when there was very little available in Parramatta. So this was the first hotel that Parramatta had. Prior to this hotel, there was the – I think they’re called Parramatta City Motel up on Great Western Highway. And that was the competition. So we certainly knew that Parramatta was going to go ahead. And I suppose at that time we were at the cutting edge of it – you know – which was interesting.
WSBA: What memories do you have of that time?
MJ: Really fond memories actually – because there was a lot of sceptics at the time that said a five star hotel wouldn’t work in Parramatta. And of course, it was extremely successful and is still successful today.
WSBA: What’s caused that success, do you think?
MJ: I just think back then, in those days, there was actually a lot of market. And when I say “a lot of market”, a lot of leisure and also corporate market in this area but it wasn’t being serviced. They had to actually be accommodated in the city or, if you’re a leisure guest from the Hills or even from the Central Coast, you had to go to the city for a hotel experience. But having the hotel in Parramatta was successful very much from day one. And particularly as well, from the conferencing and from the food and beverage outlets, were very successful back in the 80s, because there was nothing here.
WSBA: These days you’re predominantly a corporate property – a corporate market. Not much leisure?
MJ: Very much Monday to Thursday is corporate and predominantly corporate and conference. And then week-end is very leisure. And leisure can take different slant – so for example, the week-end just gone we’ve had a fairly large wedding in house which had guests stay. We had the local Wanderers play which had guests stay to come and watch the A League. The previous week we had the Australian Dancing Competition which generated - a lot of guests stayed that were attending that and. So you’ve got all different factors that actually drive that what I call the Friday/ Saturday/Sunday trade for the hotel. And then predominantly you go back into corporate then on Monday.
WSBA: I’m interested to know about your perceptions being that you were part of the team that opened the hotel, now you’re back 27 years later. So you’ve seen Parramatta in different forms.
MJ: I mean just to go to the 12th floor of the hotel and look out over Parramatta and it really is a city today. Whereas I suppose it was always classified as Sydney’s second CBD, even many years ago. But I think it was still fairly low level. You can see our skyline growing and growing. And it’s continuing to grow. I think the other major growth that’s happened in this area is the opening of a number of business parks within the 10 to 15 kilometre radius of Parramatta. And it’s those business parks that are really generating a lot of business and that has sustained the growth and the growth of hotels. And we see a continuing opening of hotels over the years.
WSBA: Do we need any more hotels in Parramatta? Is the market a pretty well balanced thing? Or is it at its peak?
MJ: I think there’s still room for more rooms in Parramatta. I think – and if I go back – and again, looking at history – historically the hotels were always full Monday to Thursday. But on Friday/Saturday/Sundays, they always struggled for occupancy. Whereas today, the hotels are still very much full Monday to Thursday. But on the week-ends, they’re also busy because there is enough leisure activity happening all year round with something on.
WSBA: What about trends in the area? Are you seeing any – I would think in the hotel business you’d see trends happening in terms of hospitality – what people like to eat and drink, in terms of the demographics of booking hotels.
MJ: Expectations are probably higher today than they’ve ever been for hotels. And I think, interestingly, the market is probably younger than it has been in the past because - it’s interesting – whilst everything seems to cost more, there’s ways and means particularly younger Third Party websites stretch that you can you know pick up good deals on week-ends. So I think we’re seeing the market change. It used to be something of a special occasion to stay in a hotel. Whereas I think today – and particularly in the Australian market – people are more inclined to take a week-end, take a break, have maybe a one or two night stay in a hotel, maybe go to a sporting fixture, maybe go to a concert, happen to have dinner in a restaurant – and use that as a bit of a break from the rat race. I think that’s where the leisure markets have grown for the Fridays and Saturday nights in particular, whereas previously there had to be something on for that to happen. Whereas I think hotels in particular in the Parramatta region can quite often be full or close to full and there’s not necessarily anything on at all. They’re just doing leisure business of people that are having a break.
WSBA: Michael Johnson, thank you.
MJ: Thank you.
