Let's Get Down to Business: Grace Leo, The Relais Henley

GRACE LEO is a founding partner of The Relais Henley, the former Red Lion Hotel. The daughter of a Hong Kong hotelier, she has been involved in the hotel trade all her life and also has her own consultancy. Grace has created and co-authored more than 20 independent and memorable hotels worldwide.

Describe your business

In October 2020, my business partner Tim Hartnoll and I purchased the landmark Red Lion Hotel. The building was very run down but we have turned it around after a full renovation.

How many people does it employ?

Seventy staff ranging from full-time department heads to hourly employees.

What did you do before you started this business?

For the two years immediately before coming to Henley, I was involved in a conversion project of the Grade II listed Ten Trinity Square hotel in the City. This was principally the reason for my move from Paris and New York, where I lived before. I curated the interior programme, project-managed the process for the owners and brought in the best luxury operator to run it, Four Seasons Hotels.

When did you start your business?

I founded a hospitality consultancy in Paris in 1988, specialising in developing upscale lifestyle hotels from Europe to the Caribbean/North America.

What was your objective?

I had worked for a hotel investment company who hired me to acquire distressed hotels in Europe and turn them around to build up a portfolio of properties. I realised that no one at that time offered the type of customised services I was providing so I set up on my own.

Who or what influenced you?

My father co-owned a pioneering hotel for international visitors in Hong Kong and this had a significant influence on me as a child.

Do you have a mentor or role model?

Adrian Zecha, who founded the most photogenic Aman Resorts that revolutionised the luxury vacation hotel space, and Robert Burns, a charismatic and visionary hotelier who created Regent Hotels.

What would you do differently if you could start again?

I have always been quite fearless and determined so there may have been things that I could have done differently or possibly better but I have no regrets.

What impact did the coronavirus pandemic have on your business?

The pandemic has, thankfully, diminished but the Relais management remains vigilant about keeping our employees and guests safe with the best hygiene practices. International visitors have started coming back to the UK and Henley is slightly behind that curve.

How is your business doing compared with last year?

We only re-opened in August 2021 so we are growing the business and occupancy. We already have guests from last year returning.

What’s the best thing about running your own business?

The ability to create and shape the business model with your vision and hopefully succeed. (The worst thing is if you get it wrong, it falls on your own shoulders too.)

What’s the most challenging aspect?

Post-Brexit and post-covid, recruiting and managing people in an intensively service-dependent sector is the singular most difficult operating issue I have dealt with in my career. It is not a UK phenomenon but has spread out to the rest of the world.

Where is your business headed?

The Relais Henley is our flagship property and from this we are trying to develop the company and the brand, which we have named The Relais Retreats, and to grow it to five or six hotels in the next few years. Our second property is the Cooden Beach Hotel in East Sussex, which has just re-opened after nine months of refurbishment.

How important are online sales?

Online room bookings are the lifeline of the hotel business. We manage the process to optimise revenue because an empty room is perished when not sold.

What’s the most valuable thing you’ve learned?

Be humble, listen well and adapt to the ever-changing environment or you will tumble.

What would you advise someone starting a business?

Make a business plan — don’t just think how much money you’ll be making, consider how much money you could stand to lose. Starting your own business is not for the faint-hearted. If you’re ready and determined and you have some resources to back your conviction, then follow your instincts and heart but be prepared to work like you’ve never done before.

What three qualities are most important to success?

Lucidity, audacity and perseverance.

What’s the secret of your success?

Being a fair and steadfast leader is what works for me. To gain respect from others you must treat others with equal respect.

How organised are you?

Enough to understand my priorities and gather a competent team to ensure the job gets done.

How do you dress for work each day?

Dressing up with elegance and style is part of my DNA, whether it’s for a formal event or a weekend barbecue with friends. It is an important part of my persona as well as to project the right image professionally.

What can’t you be without every day?

My iPhone and a good coffee to start the day.

Lunch at your desk or going out?

Quick lunches discussing work-related matters with my team.

What do you read?

I only read when I am on vacation, so that’s not too many books. My current unfinished book is The Secret History by Donna Tartt.

How are you planning for retirement?

No rest for the wicked, no retirement in sight… keeping active is the secret of staying youthful.