Cambodia Insight Editor-in-Chief Choi Young-jo
Oakwood Hotel is known for its premium service and its operating philosophy, which emphasizes harmony with local culture. The hotel has been providing high-quality accommodation services in Cambodia, and leading its management is CEO Jeong Hee-dae. Until recently, Mr. Jeong also served as the Vice President of the Koh Cham Korean Chamber of Commerce and Industry, where he worked to promote economic exchanges between Korea and Cambodia. In this interview, he shares insights on his journey as a hotel manager and business leader.
A Journey from Global Hospitality to Cambodia
After graduating from Washington State University in the United States, Mr. Jeong served in the army and later joined the executive training course at the headquarters of the InterContinental Hotel Group. For two years, he received training across all hotel departments before being posted overseas in 1996 as part of the opening team for the InterContinental Hotel in Cambodia. There, he worked as the food and beverage manager, experiencing firsthand the challenges and transformation of Cambodia during a time of civil unrest.
Following his tenure in Cambodia, he returned to Korea to work at the InterContinental Hotel in Samseong-dong, later becoming the Deputy General Manager of the Grand InterContinental and COEX InterContinental Hotels. He subsequently moved to Vietnam as General Manager of the InterContinental Hotel in Ho Chi Minh City, leading its opening project. In 2008, he joined China’s Fenghua Group as President of the Hotel Division, overseeing the management and opening of three Hyatt Hotels over the course of a decade.
In 2019, Oakwood headquarters offered him the position of General Manager and CEO for the opening of the Oakwood Premier Phnom Penh Hotel, bringing him back to Cambodia. Initially responsible only for Oakwood Hotel, he was recently appointed as the CEO overseeing the entire One Park project. Returning to Cambodia after many years, Mr. Jeong acknowledges Phnom Penh’s tremendous progress and sees vast potential for future growth.
Overcoming Challenges in the Cambodian Market
When asked about the biggest challenges in Cambodia’s hotel industry, Mr. Jeong highlights the difficulty in sourcing construction materials. Cambodia relies heavily on imported materials, making the review and decision-making process more time-consuming and costly. Additionally, construction and supervision often depend on foreign experts, presenting both logistical and language barriers.
During the development of Oakwood Hotel, decision-making delays due to material supply issues and language constraints were common. The four-year preparation period for opening was further prolonged by the COVID-19 pandemic. According to Mr. Jeong, these are common challenges faced by hotels and large-scale projects in Cambodia.
The State of Cambodia’s Hotel Industry
Cambodia’s hotel industry currently faces excessive competition, leading to lower sales and profitability. The main issue, according to Mr. Jeong, is oversupply. While the number of hotels is not exceedingly high, the rise of residential and condominium projects—many of which operate in a hotel-like format—has led to a saturation of accommodation options despite insufficient investment demand. As a result, price competition is intense, except for certain multinational hotel brands.
One key trend in the industry is the shift towards independent travel. More travelers are opting for individual bookings rather than relying on travel agencies or group tours, with online platforms like Booking.com, Agoda, Expedia, and Trip.com playing a growing role in reservations. Social media platforms such as Facebook and Instagram have also become critical marketing tools, making digital marketing strategies essential for success.
Additionally, the rapid advancement of AI technology is expected to significantly impact the industry. AI-based personalized services are on the rise, and digitalization in hotel management is set to accelerate in the near future.
Meeting the Needs of Local and International Customers
In many developed cities, local customers account for around 30% of hotel occupancy, with staycations being a common trend. However, in Cambodia, local occupancy rates remain low due to lifestyle and income differences. Instead, local groups from the provinces often book accommodations for seminars and events, though they tend to favor budget-friendly options.
To cater to diverse clientele, Oakwood Hotel has two large banquet halls designed to host both local and international events. While the hotel prioritizes its guest room business, food and beverage services and banquet facilities play a secondary role. Mr. Jeong emphasizes that the hotel’s focus is on providing the highest level of comfort and service to all guests, regardless of their origin.
Employee Satisfaction and Growth
Since opening in 2022, Oakwood Hotel has achieved annual sales growth exceeding 30%. However, Mr. Jeong considers the company’s most significant achievement to be its strong employee satisfaction ratings. Last year, the hotel won the Champion Award for achieving the highest employee satisfaction score across the Ascott Group, Oakwood’s parent company.
Mr. Jeong believes that a positive work environment and professional development are crucial for long-term success. The hotel prioritizes staff education and training, particularly in language skills, to enhance service quality. He aims to develop employees to a level comparable to mid-level managers at competing hotels, fostering a culture of continuous improvement.
The Future of Cambodia’s Hotel Industry
Despite the challenges of oversupply, Mr. Jeong remains optimistic about Cambodia’s hospitality sector. He stresses the importance of urban infrastructure development, including improvements in roads, water supply, power distribution, and urban planning. Noise pollution from events, animals, and loud music also needs to be addressed for Phnom Penh to evolve into a truly international city.
Another major challenge is Cambodia’s appeal as a tourist destination. Compared to Vietnam and Thailand, Cambodia has higher travel costs and less-developed infrastructure, making it difficult to attract visitors. Mr. Jeong believes the government must take strategic action to enhance the country’s tourism appeal, which would benefit not only the hotel sector but the broader economy as well.
At Oakwood Hotel, the focus remains on customer satisfaction, employee engagement, and operational excellence, with a target of achieving annual growth above 10%.
Strengthening Korea-Cambodia Business Ties
Beyond his hotel role, Mr. Jeong has played an active role in the Koh Cham Korean Chamber of Commerce and Industry (KOCHAM), where he worked to facilitate exchanges between the Korean and Cambodian governments, foreign embassies, and business chambers. However, he notes that KOCHAM’s engagement with foreign chambers has been limited due to language barriers. With more young Korean businesspeople stepping up, he anticipates greater international participation in the future.
KOCHAM has also worked closely with the Council for the Development of Cambodia (CDC) to address challenges faced by foreign companies operating in the country. The chamber has regularly collaborated with KOTRA and the Korean embassy to provide practical support for new businesses entering the Cambodian market. Mr. Jeong hopes that KOCHAM will continue strengthening its role as a trusted resource for Korean enterprises in Cambodia.
Community Engagement and Sustainability
Oakwood Hotel is committed to giving back to the local community through charitable initiatives. The hotel hosts fundraising events several times a year to support NGOs and charities. In 2023, the hotel celebrated its second anniversary by making donations to a local orphanage. During Christmas, both staff and customers participated in a gift donation drive.
In addition, Oakwood Hotel is actively working to reduce its environmental footprint by minimizing the use of disposable products. On March 6, the hotel will host the ‘Woman in Red’ event to support International Women’s Day.
A Global Perspective for Young Entrepreneurs
For young professionals considering Cambodia, Mr. Jeong advises embracing a global mindset. He encourages young entrepreneurs to look beyond the Korean market and explore international opportunities, emphasizing the importance of language skills, adaptability, and a willingness to take on challenges.
“Opportunities overseas are endless,” he says. “I hope more young Korean entrepreneurs will step onto the global stage and seize the chances available to them.”
