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'FBUVSF Yas Viceroy GM Heiner Werderling reflects on the property’s first year since re-branding *OUFSWJFX Sofitel worldwide CEO Robert Gaymer-Jones on expansion after downscale and launching new brands 2 " Social media is the most powerful tool you have; but do you know how to use it?
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"OBMZTJT The latest statistics and rates from STR Global and Ernst & young 5FOEFST More than 20 new project tenders and 13 new jobs
GLOBAL HOTEL INDEX: Asia Pacific 70.9% - Americas 64.3% - Europe 71.6% - Middle East/ Africa 65.5% (Average room occupancy 2012, STR Global)
ALSO INSIDE INTERIOR DESIGN FF&E SPECIAL
HOTELS
TRENDS
PEOPLE
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OOUR U R FIRST F I ANNUAL REVIEW OF THE MOST IMPORTANT HOSPITALITY TRENDSS
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CONTENTS
06
EDITOR’S LETTER
08
REGIONAL AND INTERNATIONAL NEWS
14
DATA WATCH STATISTICS AND ANALYSIS FROM STR AND ERNST & YOUNG
18
DTCM NEWS THE DEPARTMENT’S MOST RECENT EVENTS AND INITIATIVES
20
COVER STORY THE REGION’S GMS SHARE THEIR INSIGHTS ON THE TRENDS SET TO SHAPE 2013
28
VP INTERVIEW SOFITEL CEO, ROBERT GAYMERJONES ON THE 2013 EXPANSION PLAN AND VP OF HUMAN RESOURCES MAGALI LAURENT EXPLAINS THE SOFITEL SCHOOL OF EXCELLENCE
34
EYE ON DESIGN WHAT MAKES A SUCCESSFUL FIT OUT AND WHAT SHOULD HOTELIERS LOOK OUT FOR?
42
GM INTERVIEW HEINER WERDERLING REFLECTS ON THE YAS VICEROY’S RE-BRAND
44
Q&A HOW, WHERE AND WHEN TO USE SOCIAL MEDIA
50
DU ANALYSING THE BENEFITS OF ‘BRING YOUR OWN DEVICE’
56
PRODUCT WATCH THE LATEST PRODUCTS, SERVICES AND LAUNCHES
58
TENDERS
61
JOBS BOARD APPOINTMENT NEWS AND NEW OPENINGS
64
COMMENT INSIGHT FROM REED GLOBAL
28
34
28
42
cpidubai.com
44
DECEMBER 2012
HOSPITALITY BUSINESS MIDDLE EAST / 1
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COMMENT / EDITOR’S LETTER
Looking ahead I Just when you think you have a plan, Dubai changes everything....
t’s been a year of ups and downs in the Middle East; while at one point occupancy rates outstripped those of the Americas, overall arrivals across the region have dropped 10%. Social and political upheaval, compounded by the effects of the ongoing Eurozone crisis have hit some hard, but others revel in the challenge. 2013 will see thousands of new rooms added across the UAE and a number of major global chains have recently announced expansions, including Sofitel (page 28). This month also marked the soft opening of the world’s tallest hotel, JW Marriott Marquis, in Dubai’s Business Bay (page 8). But how will these developments shape the industry in 2013? According to trend predictions from World Travel Market, the Middle East is already making all the right moves. From shopping hotels to luxury branding partnerships and the lure of a decadent desert experience, the hard work appears to be on track. But quite how continued global challenges, affecting everything from recruitment to visitor numbers, will hinder such a strong start remains to be seen. So this month Hospitality
On Twitter? Follow us for daily updates on the global hospitality industry at HospitalityBME.
Quite how continued global challenges, affecting everything from recruitment to visitor numbers, will hinder such a strong start remains to be seen
Business Middle East surveyed GMs and analysts from every market segment to gauge their thoughts on the year ahead (page 20). Then, as the magazine approached deadline, Dubai did what Dubai does best, announcing the launch of a new project that will change everything; Mohammed Bin Rashid City. In addition to a Universal Studios branded theme park, another ‘world’s biggest mall’, and green areas covering around 170ha Mohammed Bin Rashid City will also have 100 hotels. Plans are in the early stages but the feasibility of the city is pegged to a projected 13% growth in tourism. It certainly throws an interesting tangent on the market and I invite everybody reading this issue to share their thoughts. MELANIE MINGAS EDITOR
PUBLISHER: Dominic De Sousa GROUP COO: Nadeem Hood ASSOCIATE PUBLISHERS Alex Bendiouis Dave Reeder EDITORIAL Editorial Director: Dave Reeder dave@cpidubai.com +971 55 105 3773 Editor: Melanie Mingas melanie@cpidubai.com +971 56 758 7834 Contributor: Karen Young Senior designer: Christopher Howlett Photography: Anas Cherur ADVERTISING Alex Bendiouis alex@cpidubai.com +971 50 458 9204 Antony Crabb Sales Manager antony@cpidubai.com +971 55 338 7639 Ankit shukla Sales Manager ankit@cpidubai.com +971 55 2572807 MARKETING & COMMUNICATIONS Marizel Salvador marizel@cpidubai.com PRODUCTION Production Manager: Devaprekash dev@cpidubai.com DISTRIBUTION Rochelle Almeida rochelle@cpidubai.com SUBSCRIPTIONS www.cpievents.net/mag/magazine.php PRINTED BY Printwell Printing Press LLC, Dubai, UAE PUBLISHED BY
Head Office, PO Box 13700, Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Group Office, Dubai Media City Building 4, Office G08, Dubai, UAE A publication licensed by IMPZ © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
6 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
B5 The Art of Living Shop G10, Ground Floor, Sidra Tower (Fraser Suites) Sheikh Zayed Rd (E11 S), Al Sufouh, Dubai, United Arab Emirates, P.O. Box 346646
www.b5living.com
info@b5living.com
Tel: +971.4.447.3973
Fax: +971.4.427.9868
NEWS WATCH
147,224
ROOM COUNT FOR DAYS INN BRAND GLOBALLY
MENA NEWS
Marriott Marquis GM Rupprecht Queitsch welcomes Tomasso Bendoni.
Ready to make a statement: JW Marriott Marquis begins Dubai opening Marriott’s first Marquis property outside North American has begun its phased opening with the launch of 804 rooms and three restaurants, and the arrival of two VIP guests. The world’s tallest hotel, which stands at 355metres, is located in Dubai’s Business Bay and marks not only the first Marquis branded Marriott property outside North America, but also the first hotel in Dubai positioned to cater to the business convention market, with capacity to host 1000 convention guests simultaneously. Opening its doors for the first time on November 11, the first guests included director for Boeing IT Middle East and Africa, Fadi Deek, and Globesoccer’s Tommaso Bendoni.
8 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
“I have opened six hotels over my career and Marriott looks at this as a really stellar, iconic property that makes a significant statement about JW and our growth in the region and worldwide,” said the property’s general manager, Rupprecht Queitsch, who also shared the chain’s ambitious plans to tap the pharmaceutical and automotive convention industries, as well as emerging business markets such as Russia, South America and India. JW Marriott Marquis features two large ballrooms and will eventually add 1600 rooms to Dubai’s hotel stock; in total there will be nine F&B offerings open by January 2013. “There is growing demand for a hotel that can cater to large groups. I think we can add another dimension
to allow Dubai to compete with other convention cities like Paris, London, Berlin, Hong Kong,” Queitsch added. The plan also aligns with Dubai’s 2021 ambition to become a global convention destination. Queitsch also revealed that Marriott will double its inventory by 2020, in the Middle East and Africa alone: “There is still a lot of opportunity in Africa and the Middle East and we have many interesting brands here. This isn’t rocket science, it’s about giving each guest an experience that is so special they will talk about it and return. That, I think, is a mission that maybe not everybody is looking at, but we take it very seriously.” Marriott Marquis will officially open in February 2013.
cpidubai.com
NEWS WATCH
804
ROOMS AND SUITES INTRODUCED ON SOFT LAUNCH OF MARRIOTT MARQUIS, DUBAI
$680m Madinat Jumeirah expansion Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, has announced his support for the fourth phase of the Madinat Jumeirah development; a $680m project due for completion by 2015 end. The expansion will include a 420key luxury, five-star hotel; a 45 villa complex run by Jumeirah Group subsidiary Jumeirah Living; and F&B and retail centre.
The existing Madinat Jumeirah comprises two grand boutique hotels and a cluster of 29 Arabic summer houses, all designed in traditional Arabic style and built along gardens and waterways. The first phase of the development, designed by architects Mirage Mille, took 36 months to complete and opened with the launch of Mina A’ Salam in September 2003.
UPS 3.4% Growth in global tourism in 2012, taking the number of total global travelers to more than 1bn
51% Increase on 2012 Russian visitor numbers says Coral Oriental Dubai, also reporting 40% rise in KSA nationals and 10% total H1 YoY visitor growth.
2012-2016 The predicted boom time for medical and shopping tourism, rail, cruise and spa holidays.
-11,800 Phase four of Madinat Jumeirah will face the iconic Burj al Arab.
100 hotel megacity planned for Dubai Dubai’s latest megaproject, Mohammed Bin Rashid City (MBR), will add 100 new hotels to the Emirate’s ever-growing stock. Breaking a number of world records in the process - some for the second time - the development is planned for the outskirts of the existing Downtown Dubai area. MBR will feature a mall larger than Dubai’s current record-holder, Dubai Mall, a Universal Studios familythemed entertainment destination, and a park 30% larger than London’s 142ha Hyde Park. The hotels will facilitate a projected 80 million annual visitors, who will be drawn in by the new ‘World
cpidubai.com
Mall’ and the largest theme park destination in the MENA region. The announcement, made via statement, quoted Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum as saying the destination will be aligned with “future ambitions” for the Emirate. The project, for which no immediate prices, phase or completion dates have been announced, pushed stock values in the Emirate’s construction and development companies through the roof on November 25. Mohammed Bin Rashid City will be built by Emaar Properties PJSC and Dubai Holding LLC.
According to current announced projects, by 2015 the rate at which the UAE adds new rooms will drop to around one fifth of the projected 2013 levels of 14,534
25% Of the UAE's hotel project pipeline is on hold and a further 21% of projects postponed with scope to 'change drastically' once resumed, says Christie + Co/ STR
21/12/2012 While the Mayan calendar ‘predicts’ December 21 will bring ‘the end of the world’ hotels in Mexico and South America are looking ahead, with ‘Mayan-themed’ apocalyptic packages.
DOWNS
DECEMBER 2012
HOSPITALITY BUSINESS MIDDLE EAST / 9
NEWS WATCH
$1.65m MENA NEWS
ESTIMATED SPEND ON INTERIOR FIT FIT-OUTS OUTS IN 2012
NEWS IN BRIEF GOLDEN TULIP TO ADD 10 HOTELS Golden Tulip has announced the launch of 10 new hotels in 2013, in partnership with Oman’s national tourism board. “Our aim for 2013 is to open 10 new hotels and to promote destinations with the help of the Ministries of Tourism. It is with the dedication of our employees and their loyalty to our company that we grow and improve” commented Amine E. Moukarzel. Golden Tulip Hotels, which is part of Louvre Hotel Group and owned by Starwood Capital, comprises 7 prestigious hospitality brands with more than 1000 hotels in 43 countries.
GCC INTERIOR SPENDS TO HIT $1.6M The value of hotel fit out projects completed in 2012 is expected to hit $1.65m, an estimatd 22.5% of total project costs, according to analysts Ventures Middle East. With total project costs calculated to reach $7,334m, Ventures also said Saudi Arabia’s interiors and fit-out sector is currently growing at twice the speed of the UAE’s, increasing 125% this year. In total the Kingdom’s market is said to have reached an all time high of $3.5b.
2015 SOFITEL RIYADH COMPLETION Softiel has announced the launch of a “major new flagship hotel” in Riyadh, Saudi Arabia. The Sofitel Riyadh, which is currently under construction, is expected to open by the end of 2015 and will mark the 121st property for the Sofitel Group, over five continents. “We are delighted to sign a new agreement for this exceptional project in the Kingdom, with the King Abdullah International Foundation. We believe that the Foundation’s humanitarian values and objectives are very well aligned with Accor’s strong commitment towards the environment, local employment opportunities, talent development and the blend between different cultures,” declared Denis Hennequin, Accor chairman.
10 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
Rosewood’s Al Faisaliah property, Riyadh.
Best hotel’ accolade for rosewood Riyadh Rosewood’s Al Faisaliah property, located in Riyadh won the ‘best hotel’ at the The Arabian Hotel Awards held at London’s Marriott Hotel Grosvenor Square on Sunday, November 4. It’s the fourth recognition this year, after the same hotel became the first in Saudi Arabia to be included in the Condé Nast Traveler Gold List 2012. It was also awarded two prizes at the
2012 World Travel Awards, Dubai. “Al Faisaliah Hotel is renowned for its unrivalled luxury, prestige and world class hospitality. Receiving recognition of this kind is certainly a true honour for Al Faisaliah Hotel. We will ensure that this leadership position continues for many years to come,” said Rosewood’s regional VP for Saudi Arabia, Erich Steinbock.
Days Inn KSA announced Wyndham Group, the largest hotel company in the world, has announced the signing of an agreement with Riyada International Hotels and Resorts, that will see the Days Inn brand launched in Saudi Arabia. Riyada International, which also operates Ramada in the Kingdom, signed an agreement for 10 hotels over seven years at the Riyadh-
based Saudi Commission of Tourism and Antiquities. Hinting at plans to capitalise on the Kingdom’s religious tourists, newly appointed SVP, Rui Barros, said, “This brand has exceptional growth potential as it is perfectly suited to the growing number of travellers seeking comfort and quality accommodation.”
cpidubai.com
NEWS WATCH
10
HOTELS TO BE DELIVERED IN KSA BY WYNDHAM GROUP OVER FIVE YEARS
GLOBAL Aloft Munich and Aloft Stuttgart to launch NEWS Starwood Hotels and Resorts Worldwide, Inc. (NYSE: HOT) has announced the debut of its Aloft brand in Germany, with the launch of Aloft Munich and Aloft Stuttgart, both due to open by 2015. Located near Munich city centre and Munich Central Station, the 184 key Aloft Munich will be within walking distance of retail stores, cafés and restaurants. The new-build Aloft Stuttgart will be part of the MILANEO mixed-use development project in Stuttgart’s European Quarter, offering shopping, restaurants and entertainment venues as well as office space and residential units. Aloft Stuttgart will comprise 165 guest rooms. “The signings of Aloft Munich and Aloft Stuttgart underline Starwood’s continued commitment to expanding our portfolio of mid-market brands in Germany and throughout
THE VERDICT
THE 2013 PREDICTION TRENDS FROM WORLD TRAVEL MARKET MIDDLE EAST: Rise of Shopping Hotels AFRICA: Destination Nollywood GLOBAL VILLAGE: Digital Detox ASIA: Car Brands Take on Hotels INDIA: Gold Rush on Low Cost EUROPE: BRICs’ Grand Shopping Tour UK: Tingo Rips up the Rule Book AMERICAS: Attracted to Forbidden Lands Turn to page 20 to read the full 2012 trend predictions from the GCC's GMs and analysts
12 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
A project rendering of the Aloft Stuttgart and its adjoining leisure venue. Europe,” said Bart Carnahan, SVP for acquisitions and development, EMEA, Starwood Hotels and Resorts. “Aloft Hotels has completely reinvented the mid-market hotel
category and continues to emerge as a popular choice for owners and developers in primary and secondary markets throughout Europe,” Carnahan added.
Accor ranks Top 25
Social media integral
The annual survey of the world’s top employers has named Accor amongst its 2012 ‘25 Best Workplaces in the World’, for seven of its global markets, including: Argentina, Brazil, Chile, Mexico, Peru, Austria and UnitedKingdom. Conducted by Great Place to Work, the ranking took into account: the group’s 2015 promotion target to recruit 75% of GMs through internal promotion; the AccorJobs recruitment portal; and the Académie Accor, the first corporate hospitality university, launched in 1985. “The companies listed on the second-annual list are creating workplaces dedicated to fostering trust, pride and camaraderie amongst their employees,” said Susan LucasConwell, Global CEO of Great Place to Work.
The UAE travel and tourism sector can develop further and reach new global customers by embedding key strategic online marketing tactics into business and marketing plans, said industry speakers at an event organized by Potential.com and Google, in Dubai last month. “Online marketing is one of the most vital tools which keeps companies continuously connected to their customers," said Shadi Banna, managing partner, Potential. com, a business development company working with SMEs and entrepreneurs. "It’s a cost effective way and if done properly, will provide companies a better chance to increase their customer base. Response rates for e-marketing are higher in comparison with other tools.”
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DATA WATCH
4.6%
MEA YoY OCCUPANCY INCREASE
0.4%
7.5%
MEA YoY INCREASE IN ADR
MEA YoY RevPAR INCREASE
60%
2012 MEA OCCUPANCY YTD
Data watch Global hotel data review for June 2012 from STR Global OCTOBER 2012 VS OCTOBER 2011 KEY FIGURES
ASIA PACIFIC
+1%
OCC%
AVERAGE ASIA/ PACAFIC REGION OCCUPANCY INCREASE YTD
ADR
PERCENTAGE CHANGE FROM JUNE 2011
2012
2011
2012
2011
OCC
ADR
REVPAR
70.9
71.1
135.51
136.30
-0.2
-0.6
-0.8
REVPAR
96.08 96.86 2012
2011
AMERICAS
2.4% AVERAGE AMERICAS OCCUPANCY INCREASE YTD
0.2% AVERAGE EUROPEAN OCCUPANCY DECREASE YTD
OCC%
ADR
PERCENTAGE CHANGE FROM JUNE 2011
2012
2011
2012
2011
OCC
ADR
REVPAR
64.3
62.8
111.10
106.92
2.4
3.9
6.4
REVPAR
71.39 67.10 2012
2011
EUROPE OCC%
ADR
PERCENTAGE CHANGE FROM JUNE 2011
2012
2011
2012
2011
OCC
ADR
REVPAR
71.6
71.3
138.17
142.31
0.4
-2.9
-2.5
REVPAR
98.93 101.51 2012
2011
MIDDLE EAST/AFRICA
7%
OCCUPANCY % CHANGE FROM 2011 YTD
REVPAR
OCC%
ADR
PERCENTAGE CHANGE FROM JUNE 2011
2012
2011
2012
2011
OCC
ADR
REVPAR
65.5
62.7
183.97
168.14
4.6
9.4
14.4
14 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
120.56 105.35 2012
2011
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76%
80%
AVERAGE YTD OCCUPANCYDUBAI BEACH
79%
AVERAGE YTD OCCUPANCYDUBAI CITY
85%
AVERAGE YTD OCCUPANCY DUBAI OVERALL
DATA WATCH
AVERAGE YTD OCCUPANCY CHANGE - DUBAI APARTMENTS
The hotel benchmark The Earnst & Young hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. It includes five star and four star international branded and operated properties DUBAI OVERALL MONTHLY PERFORMANCE KEY FIGURES
Occupancy %
% OCCUPANCY DUBAI - OVERALL HOTELS Occupancy % September 2011 - September 2012
100 90 80 70 60 50 40 30 20 10 0
82
87 83
74
88
88
89
86
79
78
73
69 62
$233
AVERAGE ROOM RATE DUBAI OVERALL, 2012
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
188
204
AVERAGE ROOM RATE DUBAI - OVERALL HOTELS (US$) Average Room Rate September 2011 - September 2012 350 274
Average Room Rate
300
255
250
254
268
280
290
217
204
189
200
174
167
$329
AVERAGE ROOM RATE DUBAI BEACH, 2012
150 100 50 0
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
REV PAR IN DUBAI - OVERALL HOTLES(US$) Room Yield September 2011 - September 2012 300
Room Yield
250
241 210
200 150
189
235
250
249
211 161
140
135
100
148 116
117
Jul
Aug
$186
AVERAGE ROOM RATE DUBAI CITY, 2012
50 0
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Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
DECEMBER 2012
Sep
HOSPITALITY BUSINESS MIDDLE EAST / 15
DATA WATCH
22.3% 28.3% CAIRO YoY CHANGE IN ROOM YIELD
-58%
AMMAN YoY CHANGE IN ROOM YIELD
-2.9%
BEIRUT YoY CHANGE IN ROOM YIELD
DOHA YoY CHANGE IN ROOM YIELD
MARKETS WITH THE LARGEST VARIANCE ON A PER MONTH BASIS KEY FIGURES
% OCCUPANCY BEIRUT HOTELS
Occupancy %
-6%
AVERAGE ROOM RATE YOY CHANGE IN MANAMA
100 90 80 70 60 50 40 30 20 10 0
Occupancy % September 2011 - September 2012 76
74 65
74 64
60
67
66
64
58
53 46 34
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
142
136
127
Jun
Jul
Aug
Sep
AVERAGE ROOM RATE ABU DHABI HOTELS (US$)
-18.2%
270
250 Average Room Rate
AVERAGE ROOM RATE YOY CHANGE IN ABU DHABI
Average Room Rate September 2011 - September 2012 300 222
200
205
223
217
203
208
179
168
150
151
100 50 0
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Sep
REV PAR IN RIYADH HOTELS (US$) Room Yield September 2011 - September 2012
AVERAGE ROOM RATE YOY CHANGE IN RIYADH
Room Yield
-5.2%
180 160 140 120 100 80 60 40 20 0
165
155 134
153
153 144
133
136
126
111
113
88 57
Sep
16 / HOSPITALITY BUSINESS MIDDLE EAST
Oct
Nov
DECEMBER 2012
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
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DTCM NEWS
There are several more projects in the pipeline to maintain, and further improve the playing facilities in the region, with the vision of providing an even richer, more fulfilling, and truly luxurious international golfing experience” Hamad M. bin Mejren
Dubai clinches IAGTO award for third time in a decade In a glittering ceremony to honour the best golfing destinations around the world, Dubai, for the third time in a decade, walked away with the Destination of the Year Award for Africa, Gulf States and the Indian Ocean. The prestigious award was received by Hamad Bin Mejren, dtcm Executive Director at a gala dinner in the Algarve, Portugal. The award formed the culminating moment of DTCM’s highly successful participation in the 2012 International Golf Travel Market (IGTM), which took place from November 12 to 15. DTCM’s exhibit, which brought together the top golf clubs in the Emirate to showcase the exceptional diversity Dubai has to offer as a golfing destination, was extremely well received and garnered high praise from across the broad spectrum of the world’s international golfing stakeholders. Held on the concluding day of IGTM and organised by the International Association of Golf Tour Operators (IAGTO) – the global trade body for the golf tourism industry – the event is one of the most important highlights of the year for the world’s vast audience of fifty million golfers. On this occasion, the DTCM director general, Khalid bin Sulayem said: “As an integral part of tourism, sport plays a great promotional role functioning as one of the most important tourism attraction factors. As such the Department has since its inception been greatly interested in sporting issues and remains committed to its continued support of the sporting community.” He noted that this award is a testament to the real efforts exerted by the UAE’s golf courses and clubs
18 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
Dubai was voted the best golfing destination in the region. in order to provide an exceptional experience to their guests, adding that the infrastructure of golf tourism in has Dubai witnessed exceptional growth development during the past few years, which has both enhanced the competitive elements and added to the distinctive nature of Dubai as tourist destination. Hamad M. bin Mejren, the executive director of business commented: “The DTCM is proud to receive the award for Dubai, which has clinched the best golf destination award for the third time in a decade. “This highlights the genuinely successful golf industry in Dubai. In a very short period of time the city, technically a novice in golfing, has come at par with cities with a much older reputation as golfing destinations. “There are several more projects in
the pipeline to maintain, and further improve the playing facilities in the region, with the vision of providing an even richer, more fulfilling, and truly luxurious international golfing experience.” Bin Mejren extended thanks to all golf clubs in the emirate which participated in the Department’s pavilion at the exhibition to showcase the exceptional diversity offered by Dubai as a unique golf destination Out of IAGTO’s approximate 470 core specialist golf tour operators based in 59 countries across the world, 455 voted for Dubai as the best golfing destination for the region which includes Africa, the Gulf States and the Indian Ocean. The city had previously won the award in 2009, having also received the Emerging Golf Destination of the Year award in 2002.
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DTCM NEWS
Drive to take greater German market share A delegation from TUI Deutschland GmbH, Germany’s primary tour operator, visited Dubai to launch its ‘Summer 2013’ brochure, designed to promote Dubai as a major tourism destination to the German tourism market. Joined by 100 German media professionals, the group included TUI CEO Christian Clemens, who said the the UAE’s tourism, culture and social renaissance is a role model and the whole Arab region. “DTCM is honoured that TUI has chosen Dubai to be its world destination from which it launches its ‘Summer 2013 brochure’, particularly as the UAE, in general, and Dubai, in particular, have
Hollywood beckons DTCM has been presented with the Definitely Dubai film award for best original score at the Hollywood Music in Media Awards, during a ceremony held at the Fonda Theater in Hollywood last month. The eight-minute long film shows the tourism attractions in Dubai’s hotels and resorts and shopping centers. It also illustrates Dubai’s tourism infrastructure including the cruise tourism sector, conferences sector and more. Khalid A bin Sulayem, DTCM director general refers that the film focuses on the attractions in Dubai and shows the quality of services and facilities offered for tourists and visitors and the well-developed infrastructure of the city and methods of modern communication and transportation. Bin Sulayem also commented that this film is displayed in the external and internal exhibitions, conferences and workshops and events, the film was recently released in addition to other promotional films.
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become very important destination for German tourists basically due to the outstanding attractions and mega projects here,” said Hamada bin Mejren, executive director for business tourism with DTCM Germany is among the main countries most exporting tourists across the globe. “DTCM is geared up to enhance partnership with TUI for the benefit of tourism sector in general, and both sides in particular,” Bin Mejren elaborated. “The tours and trips DTCM organizes all the year round for delegations and media people are meant to update them about the recent developments in Dubai.
GOLF IN DUBAI The United Arab Emirates has been welcoming golfers since 1988 when the Majlis course at Emirates Golf Club, often referred to as The Desert Miracle, became the first grass course to open in the region. In the 24 years that has followed Dubai has introduced a host of world class golf courses, with the Emirates Golf Club set to celebrate its 25th anniversary next year and the Dubai Creek Golf & Yacht Club its 20th. Dubai has also become a major destination on the regional and international golf tour circuit, welcoming the world’s very best players to the Omega Dubai Desert Classic and Omega Dubai Ladies Masters at Emirates Golf Club, in addition to the prestigious DP World Tour Championship, Dubai, the season finale of the European Tour which is held on the Earth course at Jumeirah Golf Estates.
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NEWS IN PICTURES
OUT OF IAGTO’S APPROXIMATE 470 CORE SPECIALIST GOLF TOUR OPERATORS BASED IN 59 COUNTRIES ACROSS THE WORLD, 455 VOTED FOR DUBAI AS THE BEST GOLFING DESTINATION FOR THE REGION WHICH INCLUDES AFRICA, THE GULF STATES AND THE INDIAN OCEAN.
Majid Al Marri, director of classification for DTCM, presented JW Marriott Marquis GM Rupprecht Queitsch with the hotel’s 5-star plaque on November 20.
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THINGS TO COME From the global economy and regional politics, to technological developments and the environment, Melanie Mingas asks the region’s GMs and analysts how the industry can capitalise on 2013
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he second half of 2012 has marked a sea change in the perception of the Middle East hotel industry; already world renowned for its standards in hospitality and luxury, in October 2012, data from STR Global found average occupancy even outstripped that of the Americas. A feat achieved in the face of regional political turmoil and ongoing global economic problems, it capped a strong year for the industry. In the UAE, U UA E,, 10 10 new neew hotels hote ho tels te ls w were ere op er opened pen e ed d by by
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operators including Sheraton, Hilton, Fairmont, Marriott and Jumeirah; Saudi Arabia saw two major openings in Medina; and Doha launched properties by Intercontinental, St Regis, Hilton and Shangri-La. “The MEA pipeline comprises 495 hotels totaling 125,481, according to figures available from industry research,” says Michel Noblet, president and CEO of Hospitality Management Holdings (HMH). Although he continues to warn that tthe hee aadd ddi that additional rooms could affect
rates and occupancy, hoteliers seek solace in the demand created by millions of tourists previously loyal to destinations such as Egypt, Bahrain and Syria. And their bet would appear to be a safe one; this market drove occupation rates to 100% in many UAE hotels over Eid Al Adha this year. “Hospitality is known to be one of the most vibrant businesses in the market,” states GM for Millennium Hotels Dubai, Peter Mansourian. “It is safe to say we have already g g trends in witnessed several emerging
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2012 and this will continue to grow in 2013. We have seen for ourselves that the long-term stay business is gaining more popularity since a lot of executives are relocating to Dubai for business and we are starting to see increased demand driven by not only a greater range in properties, but the Arab Spring,” he adds. While there is no doubt the industry is developing, it isn’t immune to the impact of global trends. Already a leader in luxury hotels, airport development and world-class attractions, research from this year’s World Travel Market, held in London last month, suggests the Middle East will play a key role in a number of the emerging trends predicted for 2013. From the change in dynamics leveraged by the prominence in guests from the BRIC, CIS and Asian states, to the power of technology and the lure of the ‘shopping hotels’; while European and American hoteliers struggle to stay open, their Middle Eastern counterparts will be presented with a very different set of challenges. “The Gulf is completely different to any other market,” echoes Christopher Hewett, consultant for TRI Hospitality Consulting. “If you p look to some markets, p properties are
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WHEN I STARTED IN WITH RADISSON WE FORECAST ON 10 YEAR PLANS, THEN IT WAS REDUCED TO FIVE YEARS AND NOW IT’S THREE.
Francois Galoisy.
being sold and liquidated but hotels are doing relatively well in the main commercial centres. Business drives a lot of activity and companies are focussing their expansion plans on Africa and the Middle East,” he adds.
The more the merrier It’s not only the volume of visitors that is impacting on the industry, but the ethnic diversity of the crowds too and as a trend this is expected to impact on the price range and brand choice of the Middle East’s hotel stock, in addition to recruitment habits. One of the key findings published during WTM was the number of BRIC and CIS nationals who are now drawn
to the hybrid luxury/paradise market of the Middle East. It’s a demand facilitated by recent developments in visa regulations and the launch of new travel routes, in addition to the growing business opportunities in Africa and leisure offerings in the ANTICIPATED Emirates. OCCUPANCY FOR Q4 AT The brand choice of these CORP EXECUTIVE APARTMENTS DUBAI guests will play a major role in 2013, with many selecting their hotel based on brand awareness and loyalty, which on many occasions goes hand in hand with price; albeit for the CIS market more than BRIC. “When I arrived in Dubai six years ago, the industry was somewhat unsustainable; you did have a wealth of supply, but it was high rates aimed at a very limited market segment. Now the market is much more mature, and you can see a good range of luxury to budget and serviced offerings,” observes Hewett. Catering specifically to the midmarket sector, Dubai’s Corp Executive Hotel Apartments in Al Barsha, has reported a 15 % increase in business in 2012 compared to 2011, while also witnessing the average room rate grow by 8% during over the same period. “Our average occupancy for Q1, Q2 and Q3 stands at 96%. We are expecting to close Q4 with an average of 98% occupancy,” reports GM Aamir Pervez, attributing the rising trend
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to the flexibility of the apartment offering and the growing market for British guests. Hewett furthers his predictions to add that the growing range of new stock will also help the Emirate tap the lucrative stop over market, which until recently has harnessed a mere 15% of the millions of people traveling through Dubai International Airport; a figure which itself increased 8% in 2011. “Repositioning Dubai as a stop-over destination requires that extra choice in the market to entice people to stay a day or two,” he says. But the impact of this on the market will reach further than simple demand dynamics. “As more diverse nationalities come to Dubai, this needs to be reflected in the staff. When guests arrive at our reception, we now have staff who can speak to them in Chinese for example,” says Francois Galoisy, GM for Radisson Blu Dubai OF BOOKINGS ARE Media City.
70% COMPLETED ONLINE
Click, stay, share It’s not just about where these guests are from, but how they are coming to be in the Middle East; one trend that has predominantly driven the leisure guest market is the rise in online bookings and the empowerment given to travellers via social media and review site forums.
SUSTAINABILITY A leading buzz word in almost every other industry, sustainability will also impact on the hospitality agenda in 2013, with more operators influenced by the habits of global travellers, rather than local markets. Today demanding responsible water and waste management, guests from beyond the region will continue to drive this trend in 2013 and also placer greater emphasis on the need to establish CSR initiatives, such as Rotana’s
It’s a development almost every hotelier has an eye on, with some naming social media and others focused on the impacts – both positive and negative – of review and booking sites. “It is the young travelers who are driving change in our industry with social media and design. In the new world, travellers are connecting and sharing their travel experiences on multiple platforms through photographs, wall posts, tweets, updates, check-ins, blogs and reviews. Hence social media is increasingly becoming a revenue generation tool for hotels and it will significantly grow in 2013,” asserts Noblet, who quotes that 70% of bookings are today completed online, with mobile devices set to drive this further. The view is backed unanimously and Wilson says: “While a high percentage of bookings are made
MORE THAN 1000 ROOMS WILL BE ADDED IN SHARJAH AND AJMAN BEACH WHICH COULD BE A BIG THREAT IF WE DO NOT MAKE NECESSARY CHANGES.
Jean Pierre Simon, Coral Beach Resort - Sharjah.
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beach clean ups and Dusit Thani Dubai’s participation in the Earth Check initiative, the first hotel in the UAE to achieve silver certification. “I believe there is an increasing need for tighter waste and energy management. With the growing number of hotels in Dubai, there needs to be a stronger industry compliance to the guidelines set by internationally recognized environmental bodies, such as Green Globe Earth Check,” James Wilson, Dusit Thani.
via IDS, the OTA has reached a certain maturity and is expected to grow further and stabilise. That said there will also be more bookings via mobile devices. Research on hotel and travel options and booking and communicating room preferences are done directly with the hotel and therefore hotels are investing more on making their system friendly to any mobile channel booking. “In fact, Google is projecting that mobile will overtake PCs as the most common web-access device by 2013.” Meanwhile Anand says developments in online search engine and booking tools will also have impact. “Consolidation of online players will be a challenge in the coming times. The recent move by Priceline to acquire Agoda and Kayak and the relaunch of Booking.com and Expedia have all re-enforced the strength and reach of these companies. At Holiday Inn we are already geared to meet these changes with a relaunch of hotel websites in line with reinvestment in the development of hotel channels, and this highlights our levels of preparedness for sudden changes,” he adds. The digital focus doesn’t end when the guest completes their booking. Today, it permeates as far as the in-room experience and as such expectations are inching ever higher. Says Anand: “It’s no longer just about free WiFi. Technology is no longer about what guests use to get to the hotel, but also what they get in the hotel.”
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as cornice and marina hubs, not to As celebrity chefs, Michelin stars mention mall and ‘downtown’ type and world famous brands further developments, will also require enhance competition between hotels, diligence over the coming 12 months F&B is becoming ever more important if hotels are keep ahead of the curve. in keeping guests within the hotel, “Hotels are now competing with an as well as drawing in its host city’s ever-growing number of independent residents; an increasingly crucial F&B venues in Dubai. At the revenue stream. same time they are coming Attributing the to terms with the fact that discerning taste of the a growing number of Middle East visitor to the independently managed expectation that every PASSENGERS WILL FLY INTO THE UAE ONCE CURRENT F&B venues are more dish in the world should AVIATION DEVELOPMENTS ARE COMPLETE successful than hotel run be sourced and shipped to F&B venues.” the region, Hewett says this is Turning the tables, he adds: partly due to the lack of seasonality “Instead of leasing out our own space in menus and partly the pace of guest to outsiders, we are interested to lease turnover. His conclusion is that hotels out space in other hotels or licensed have no choice but to keep ahead of locations to setup our existing the demand. F&B concepts and capitalize on the “Owners are looking at to try footfall.” and reposition assets within their Dusit Thani Dubai GM James properties and F&B is the biggest Wilson predicts this focus will shift one. The whole asset life cycle of a away from brands and towards restaurant used to be five years, but cooking methods and their health now a lot of GMs are starting to benefits: “Healthy eating will be an reposition after three years. We’re increasing focus with less market talking refurbishment, rebranding and consideration on the chef and more bringing in new concepts, because that on cooking methods, ingredients lifecycle has become a lot shorter.” (organic) with the health and Naming it as one of his top three Good food nutritional benefits very much in trend predictions for 2013, Majestic If there’s one thing that can make mind,” he says. Hotel Tower GM, Alexander or break an experience it’s the Economides, says that F&B leasing culinary offerings of a hotel and its and independent F&B zones such neighbouring properties. Shop and stay While retail and art were named as key drivers for wealthy BRIC COMPETITION tourists visiting Europe, the Middle East sticks to what it does best, offering ‘shop an stay’ options at “In terms of competition, make sure you retain almost every major mall. the long term strategies, rather than applying Demonstrated by The Address, knee jerk reactions to Kempinski and Al Faisaliah, the market. occupancies are steadied by the “Hotels will undercut rates to get occupancy presence of luxury brands across the but at the end of the day, if your rate drives region’s major malls and soar during you rate card you will have a much more events such as the Dubai Shopping profitable performance, but if your occupancy Festival, which drew 3.5million drives the rate card, you’re going to have a poor visitors in 2011. performance profitability-wise. In addition, the “There is great synergy between higher your occupancy, the greater the wear and hotels and malls and the concept has tear on your asset and the higher maintenance worked well for us and our owners, costs will be,” Majid Al Futaim Properties, in both Dubai and Bahrain,” says Kempinski’s Christopher Hewett, TRI. MEA regional director of sales, Avsar
In meeting this demand, Wilson adds: “The explosion of social media and integrated systems as booking tools, and the need of the user to be continually connected, has prompted us to not only offer free WiFi to all residents in 2012, we have now just started installing full media hubs in all bedrooms so clients can stay connected.” Another element of demand created by digital advancements is the organic promotion of new destinations via an ever wider reaching word of mouth – another key prediction made during WTM. One potentially detrimental development, that Hewett describes as masquerading as an industry aid, is the rise in popularity of the ‘daily deal’ website. “There are a number of hotels that have begun to use these sites to increase occupancy and I can see why that would happen during very low periods of demand, but don’t do it too often because it will erode the perception of the quality of your product and hotel.”
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200m
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leisure and entertainment attractions Koc, who maintains the trend is – plenty of which are connected to the driven as much by business travelers city’s renowned shopping malls.” looking for onsite leisure offerings, as it is families and shoppers. Reporting some of the chain’s Fly away highest occupancies at its Mall of the Although arguably the most Emirates property in Dubai, fundamental market driver, Koc adds that for the the aviation industry failed discerning Middle East to attract much attention guest, location remains an in WTM’s 2013 global add on. predictions, but it is far 15% SALES DECLINE WITNESSED BY HOTELS “The demands of our from off the radar in the AFFECTED BY THE ARAB guests in any hotel remain Middle East. SPRING the same and working with Expansion and new build the mall we can offer an extension of projects are ongoing in UAE, Qatar, our five-star service in the hotel to Saudi Arabia, Oman and much of shopping guests through exclusive North Africa. In the UAE alone, shopping experiences.” passenger numbers are predicted to Antony Treston, GM at The Address swell to 200 million over the coming Dubai Marina, agrees: “The demands two decades and in the interim, of guests does not differ entirely; in a national carriers are increasing their city like Dubai, to ensure that guests offerings. Pervez observes: “Over the can find exactly we they are looking past few months, the UAE airlines for, we link hospitality with retail have launched a number of new so that there is something for both services, linking the UAE with new shopping guests and non-shopping markets including South America, and guests. new destinations in Europe and Asia.” “Visitors who do not seek to shop “It is a great move and will can instead indulge in an array of definitely help increase traffic from
15%
emerging markets such as Brazil, Argentina, China, Korea and India. At the same time it will boost the traditionally strong source markets of Europe,” he adds. It doesn’t end with the in-bound market, as expatriates and national residents take advantage of lowcost carriers for long weekends and tropical holidays. “Today because of global communication and connectivity and the introduction of low-cost carriers people are attracted to travel to other parts of the globe. The world is getting connected like never before and 2013 will bring it closer,” says Noblet. Already transporting freight cargo, Dubai World Central will play host to up to 160million passengers by 2030, drastically changing the hospitality industry and also wider city. “It’s going to be a phenomenal development. It’s hard to visualise the direct impact; it will demand more hotels but only as the project rolls out. For that reason the associated new builds will have to be timed right to avoid over supply,” advises Hewett.
Avsar Koc, regional director of sales, Kempinski
Michel Noblet, President & CEO, HMH – Hospitality Management Holdings
Peter Mansourian, General Manager, Grand Millennium Dubai
Authenticity: Touches like Arabic coffee served in a dalla at reception and pearl diving with a local guide, create lasting memories; something you can’t put a price on in today’s fast-paced world.
Revenue Management: Hotels are adjusting prices on an hour to hour basis to match demand. Hotels can reach out to the wider world through effective use of various distribution channels, hence rate parity is absolutely essential.
Emerging markets: It is safe to say that we have already witnessed several emerging markets this year and this will continue to grow in 2013.
Off the beaten path: Similar to authenticity, travellers want to discover new places. Sustainability: Consumers are becoming more educated, and therefore more demanding, about sustainable products and practices. From the operations side, sustainable practices help reduce environmental impact and ultimately our bottom line.
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Themed hotels: We are moving more and more in the direction of sustainable developments and themed hotels are growing in popularity too. You could have hotels for bachelors, ladies, sportsmen, etc. You can have spiritual hotels or hotel and hospital combinations. Mid-market: Today because of global communication and connectivity and introduction of low-cost carriers our industry is definitely moving more towards the mid-market
Long term stay: The long term stay business is gaining more popularity since a lot of executives are relocating to Dubai for business. Demand for marketing and PR: Hospitality is known to be one of the most vibrant businesses and we are expanding on our marketing and PR towards the emerging markets to create a product knowledge base for them.
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IT WILL DEMAND MORE HOTELS BUT ONLY AS THE PROJECT ROLLS OUT. FOR THAT REASON THE ASSOCIATED NEW BUILDS WILL HAVE TO BE TIMED RIGHT TO AVOID OVER SUPPLY
Christopher Hewett, TRI.
The flip side Analysing the 2012 figures may have demonstrated a year of strong performance for the UAE, but the regional dynamic paints a different picture, with overall arrivals declining by 10% and those hotels affected by the Arab Spring reporting a significant 15% decline in sales. “Political unrest in Syria is now beginning to spill into neighboring areas that has had a very severe impact on our business, completely dislodging our development plans in the affected countries and hitting hard our existing hotels,” says Noblet. “At the same time, debt crises in the Eurozone led to a new period of uncertainty in Europe and a direct hit on tourism in the region. We saw this year a very long and lean summer and as a result the MEA region too experienced sharp decline in business,” he adds. Add to this the increased supply due to come online, and 2013 may not be the easy ride it appears to be. “We are always very cautious about the future. When I started with Radisson we forecast on 10 year plans, then it was reduced to five years and now it’s three. “On one hand, where else in the world to you see double digit growth?
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Ones to watch
Further findings from WTM named medical tourism, rail development and spa facilities to demonstrate the best performance in the period to 2016, with online travel sales outstripping those of the offline world. In conclusion, with the right focus and a measured approach to operations the future looks bright, with the importance of guest comfort, attention to detail and a reasonable cost to quality ratio, all unchanged, and a refined focus on personal experiences. “The customer today is more informed than ever. The approach ‘one size fits all’ is a sin. The guest needs the flexibility to pick, choose That is happening in Dubai. But also, and customise their stay. It’s like a we have to be careful because success basket now, you pay for only what doesn’t happen by coincidence. you choose and no more hidden You must develop strategies and incidentals,” says Anand. infrastructures and still have to With stability a key factor of any forecast reasonably,” warns Galoisy. market, there are three markets tipped Preparations for adverse trends to benefit most from this in 2013; vary, with some adding value to the UAE, Qatar and Oman. hotel experience and other re-tailoring With Hewett observing Qatar’s it entirely. focus will be set on global MICE and “We can see competition growing convention travellers – particularly around our area quite significantly in the absence of sufficient touristic as within two years time more than offerings and the impending COP18 1000 rooms will be added in Sharjah conference – others say Oman will and Ajman Beach, which could remain a silent yet steady be a big threat if we do not force in the industry. make necessary changes. The real money, however, Therefore, we emphasize remains on UAE, which, if on creating a boutique it can maintain its position PIPELINE HOTELS family resort out of the as the region’s safest market, PROJECTS IN THE MENA REGION current Coral Beach Resort, will see continued growth that is how we can tackle this in 2013. competition,” shares Jean Pierre Pervez comments: “The UAE with its Simon, regional GM for the Northern free economy, political stability, culture Emirates, at Coral Beach Resort, of openness, exciting calendar of Sharjah. business and leisure events, exceptional Noblet adds: “Our strategy has been infrastructure and international largely to capitalise on our strengths as connectivity, is witnessing a period well as target new markets. It is utterly of great opportunity and attracting logical for us to position ourselves in travellers in large numbers. The countries where there is demand for country has one of the most dynamic alcohol-free hotels. In this respect and promising hospitality sectors in the Indonesia and Malaysia look quite region and is most certainly the beating promising.” heart of the Middle East.”
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Sofitel So, Singapore, is one of the chain’s 2013 openings, scheduled for a July debut.
Je ne sais quoi After halving the number of its global properties in 2007 Sofitel is now expanding in the Middle East, announcing its first address in Saudi Arabia this month. Worldwide CEO Robert Gaymer-Jones tells Hospitality Business Middle East about repositioning a luxury brand and making less more
W
hen French luxury chain Sofitel repositioned its brand last year, the sights were set on emulating the opulent ambiance of none other than Chanel, Hermès, Cartier and Yves Saint Laurent.
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The move followed a turbulent three years. In 2007, then newly appointed, worldwide CEO Robert Gaymer-Jones, almost halved the chain’s portfolio from 206 to 120 properties; marking a sea-change in the focus of the brand and its place in the market.
Steering the repositioning of such an iconic global name, in the midst of a global recession, it was difficult to imagine such a feat would be achieved. But in 2011 J.D. Power and Associates and STR officially recognised Sofitel as a luxury brand, and growth since then has been exponential. “The first years were very much focused on rationalising the network, and working with the teams in Sofitel in the creative intent of the brand,” Gaymer-Jones says of his tenure to date. Launching two new Sofitel subbrands – Sofitel Legend, comprised of iconic assets, and So by Sofitel, an “urban, affluent lifestyle brand”, Gaymer-Jones has today emerged as a beacon in the establishment of luxury. “Making sure we were able to create reference points of luxury
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“We have been able to increase (revenue available room) through 2011 by 43% over 2009 figures, and it was up 6% through the third quarter of 2012,” he reveals.
Driving luxury
that were clearly differentiated in hotel luxury, while we developed our touch points of the brand, meant we were able to then develop the message to our potential owners and clearly explain Sofitel and the complimentary labels of Sofitel So and Sofitel Legend,” he adds.
New markets This month announcing the chain’s first property in Saudi Arabia, a further 14 “key cities” have been identified for opportunities worldwide, with the Middle East, BRIC countries and South East Asia on the target list. “Sofitel’s ambition today is to strengthen the brand by attracting new clients and building customer loyalty, as well as investors and collaborators, around the globe. And more than ever, it is to reinforce the brand signature ‘Life is Magnifique’. “The emerging BRIC countries are our main target and growth market and we are seeing continued increases in numbers from these areas. We are looking at reaching out through direct marketing using Sofitel’s internal network database through our hotels in these regions and also through social media,” he says, adding a further pledge to “continue focus” on the Middle East, particularly new developments in cities such a Jeddah, Istanbul, Doha, Beirut, Kuwait and Oman. Using 100 as a base, Gaymer-jones says the results of the repositioning have been evident in KPIs.
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For the affluent Middle East guest, luxury can become a given, rather than…. well, a ‘luxury’. And with such a competitive hospitality industry, carving a niche in such a market is not easy. Commenting on the presence of luxury in the Middle East hospitality market, Gaymer-Jones says: “The need for establishing their own unique DNA [and to] distinguish themselves from the competition will continue to pose a challenge within the luxury travel industry. “The luxury traveler now expects to receive value and/or value added services at a reasonable price.” The luxury traveler also expects a level of luxury in the destination city. Carving a new identity as the globe’s preferred MICE destination, Dubai in particular will benefit from transport infrastructure developments and its reputation as a dynamic destination, as the market continues to develop. If it can continue the trend to develop more cultural offerings, Gaymer-Jones predicts a very bright future. “We’re seeing a move away from ostentation toward authenticity in the travel experience, and a call for sustainability and environmental conservation as an integral part of the offerings for affluent travellers.” The future for Sofitel looks incredibly bright too, and the daring 2007 move to make less become more certainly silenced the brand’s critics. But as the market continues to evolve and competition – as always – continues to increase, Gaymer-Jones has one piece of advice for his fellow hoteliers: “Hoteliers need to meet and, where possible, exceed growing guest expectations. “New approaches to merchandising, customer service and in-room technologies need to be adopted.”
Luxury re-focused Sofitel worldwide CEO Robert Gaymer-Jones explains how he made less, more “When we first desired to recreate the brand, we visited with our team several luxury brands like Chanel, Hermès, Cartier and Yves Saint Laurent, to learn how they create their own form of luxury. Once we understood what brands needed to stand out from their own luxury competition, we decided to hire designers to create something new and creative to emerge Sofitel as a luxury brand with elegant French DNA. “We worked with creative artists such as Jean Nouvel who designed the Vienna Sofitel, Didier Gomez, who designed two new Sofitels in Morocco as well as the Sofitel Paris Le Faubourg and many other world known, international designers. “At first it was very difficult to reduce the number of Sofitel hotels down from 206 in 2007 to less than 110, while at the same time working on the new design of the brand. In the middle of all of this there was the global crisis with the financial pressures on owners of hotels to be supportive of the changes we were making. We are very fortunate to have so many great owners who realised the importance of this change and the results that can be achieved if we move deep into luxury. “
So Sofitel, Bangkok.
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INTERVIEW
French luxury hotel brand Sofitel, part of the Accor Group, sees service as a key differentiator in the market. To help drive development of future senior staff, it has invested in a global School of Excellence programme, explains Magali Laurent, senior VP of human resources
J
Magali Laurent commits time from her global role to mentor students.
oining Sofitel in 2007, Magali Laurent had a key support role in the repositioning of the brand to a five star luxury level, as recruitment manager and HR tools at Sofitel Worldwide. A year later, she was human resources manager for Sofitel Worldwide as well as Sofitel new organisation g worldwide p project j coordinator, overseeing the internal reorganisation of the brand.
She is now senior vice president human resources of Sofitel Worldwide, implementing the corporate strategy and looking after 25,000 employees. One of the key HR objectives of Sofitel is staff development to ensure that service is central to the brand equity and a number of programmes are in place, p , most noticeablyy the recently introduced School of which aims Excellence programme, whi to identify and mentor future futur senior management.
HBME: How did the School of Excellence E programme develop? with the Magali Laurent: We began wi understanding that it’s hard to create differentiation in this sector with product alone - for example, example the same designers will work for all companies. c So central to our repositioning reposition is the belief that service is the key factor and our executive team is fully committed c to training and a service ethic. eth The key thing is people and we have a number of programmes, as a do our staff. competitors, to train and develop de But we wanted more and so created the School of Excellence, wh which takes a limited number of students every year and guarantees them mentoring mento by senior executuves.
HBME: How are the students ch chosen? ML: We work with 15 hotel management schools globally global and
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I have two students at present - as well as being in touch regularly and supporting their progress, they can also phone or e-mail me at any time. Imagine the benefit! each year we choose two students from each school to go through the programme. These will be fast-tracked as next-generation leaders - just 30 a year across the whole of Sofitel. Students apply for the programme and then each executive mentor visits the school that he or she is responsible for to pick the successful candidates.
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Local success Scott Gordon is a graduate of the School of Excellence and is now a management trainee as Assistant Revenue Manager at Sofitel Dubai Jumeirah Beach. According to the hotel’s Assistant Director of Sales, Abhishek Sharma, who manages Scott indirectly, his qualities are “shaping him up to be a very knowledgeable, hands on and focused strategic leader”. Scott believes the School Scho of Excellence programm programme is “a career accelerator and a an amazing experience. experienc The programmer is not just management training, train it is THE manma agement agemen training!” training
HBME: What qualities are you looking for in students? ML: Above all, an understanding that luxury is an attitude. We look at personality, humility and a lack of arrogance. It’s really less about diplomas and more about the students being themselves. We know how to get the best out of people, how to develop them, but the personality is central. Some of them, of course, will be more suited to a more economy brand and so we’ll suggest seeking a career elsewhere in Accor. If they have savoir faire, then we can train them.
HBME: And if you find a number of outstanding candidates? ML: There’s a limit of two per school - no negotiation. Of course, they can always reapply the next year.
HBME: Any other considerations? ML: A spirit of openness is important to us. Then, of course, there may be issues about visas or cultural or religious restrictions on where some students either want or are willing to work. If we have the right person, we’ll be as accommodating as we can.
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HBME: Any mistakes so far? ML: No. The programme has been running two years and 30 students have gone through. To date, we’ve only lost one - very unfortunately - due to family issues. Many of those students have already been appointed in supervisory roles, such as project managers, VPs or sales and marketing. My chosen school is the Emirates Academy of Hospitality Management, which is why I’m in Dubai, and one of my students is now at the Sofitel Al Khobar and another at Sofitel Washington, DC.
HBME: What is the biggest challenge faced by the programme? ML: I think ensuring that we can integrate our operational needs with the programme. The way that it works for a student is this: for the first six months they get exposure to every part of our business being hands-on and then, after discussion, they deciside to specialise in maybe F&B or sales and marketing and work for another six months in more of a supervisory role. After that, there’s the opportunity to do another six months in the programme, or to move to a suitable position within Sofitel. It’s important to
Left: The luxury look Sofitel The Grand Amsterdam
realise that this is not about study, it’s very operational and we expect people in the programme also to be ambassadors to the wider staff community.
HBME: For you, what is key to the success of the programme? ML: That we stick to reality and to the Sofitel DNA. It’s also critical that we provide personalised training that supports our global positioning.
HBME: If you’re developing future leaders, isn’t 15 students a year for the whole world a small number? ML: It’s important to remember that in the luxury market, quantity is not the criteria - think of the limited number of Chanel jackets, for example. In order to get the qualitative results we want, mentoring is key and our mentoring programme is very intensive. I have two students at present - as well as being in touch regularly and supporting their progress, they can also phone or e-mail me at any time. Imagine the benefit of being able to do that with our COO for someone at the start of their career! As senior executives, we’re committing to the time to look after these students
DECEMBER 2012
SOFITEL IN NUMBERS
6
MONTHS WORK ACROSS DISCIPLINES
6-12 MONTHS SPECIALISATION
30 120
STUDENTS A YEAR
HOTELS
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
Finasi general manager Matteo Pellegrini tells Hospitality Business Middle East about the expansion that will bring Armani Casa to the company’s portfolio Matteo Pellegrini at the Dubai showroom, which features a range of Armani-designed products and the award winning ‘Arc’ table designed by Foster + Partners and manufactured by Molteni & C.
hen Finasi opened its first showroom in Dubai in 2009 it was the result of two years of market research to identify and address the precise needs of the quality interior furniture and fit out industry. Offering high-end furniture to a market in recession, it wasn’t until the appointment of general manager Matteo Pellegrini, that hoteliers, corporate clients and VIP individuals began to realise the value of investment. “To open at that time, we’re probably the bravest company ever! But we had already planned this investment and the partners decided to go ahead,” says Pellegrini, who joined in 2011 to drive Finasi into its current expansion phase.
BRANDS Brands Molteni & C Armani/Dada Dada Gandia Blasco Varachin Panzeri Citterio Sagsa Colombini Group Okalux
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More than doubling staff numbers and steering the growth of Finasi’s offerings, Pellegrini is also responsible for introducing a number of new brands to the Finasi portfolio. “We are selling exclusive and high end furniture; there is a big distinction. In a market like the UAE’s you may hear the term ‘Italian furniture’, but there are Italian products and Italian products; we know our country and the difference in our products,” Pellegrini says. For Finasi, 2013 will herald a new era, with the official opening of the new Armani Casa showroom on January 22. Adjacent to the current showroom of Molteni & C group on Al Ittihad Road, Deira, Dubai,
the space will house products from the Armani Casa range; a globally recognised furniture collection covering everything from furniture to lights and accessories. Already official distributors for Armani Dada (kitchens designed by Armani and manufactured by Dada) the addition means that under its contract division, Finasi can now supply entire Armani interior solutions. The products, designed and manufactured by Armani will be aimed at both corporate and private clients. “The Moltani & C Group is our flag; we are the largest Italian group supplying high end furnishings, achieving €0.5bn turnover annually. The group is recognised worldwide by the best architects and designers as the market leader in high end furnishings for luxury hospitality solutions. This is a winning partnership and the design characteristics are developed with genius,” Pellegrini says
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
The Finasi showroom, Located on Al Ittihad Road, Dubai, will expand further on January 23 when Armani Casa joins the Finasi portfolio.
COMPANY DIVISIONS Retail operations Divisions specialising in: kitchens, systems and wardrobes, loose furniture, turnkey and individual office requirements Contract operations Finasi works with consultants and contractors to meet the bulk needs of its corporate clients. These range from apartments to hotels.
PROJECTS Al Bateen, JBR Colombini group 400 kitchens 600 Vanities Rosewood by Daman, DIFC Molteni & C and Dada 800 wardrobes 400 kitchens 600 Vanities Meydan Beach Club, Dubai Gandia Blasco FF&E and outdoor furniture Cartier All worldwide retail premises
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DECEMBER 2012
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DESIGN SPECIAL SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
B5 Interiors uses technology within design to create themed and unique illusions.
Competing with new properties and influenced by guest demands, technology and fashion, hundreds of the region’s hotels are undergoing refurbishment. Interiors specialists advise on how to strike the balance between style and cost 34 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
eoff van Wijk, partner for hospitality furnishings supplier Furnish, observes a new trend is emerging. Driven by everincreasing competition, developments in technology and fast-paced fashion influences, hotels are refurbishing quicker than ever before. “We are still doing a lot of new projects but over the last year we have been invited to tender for more refurbishment work. That cycle is starting now, where every five to seven years hotels re-fit, and we’re coming up to that point for many of the hotels
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that were built last decade. I have seen a shift towards refurbishment work,” Wijk shares. But the speed at which projects are required and the tight budgets they are expected to be completed on, are leading to substandard results. President and CEO of Selva, Philipp Selva, echoes: “What we can see is that refurbishments have become significant. Luckily things are going in the right direction now because many companies when fitting out hotels initially bought far eastern products and have now realised that the quality is so poor they need to replace pieces quicker than they anticipated.”
The message is clear; plan and pay. For consultants, contractors, designers and suppliers, there are a number of core mistakes they observe in the specification and execution of interior projects in hospitality, and they all believe that it’s the guests who pay for such oversights. “You only have finite resources and funds in a hotel so the FF&E is under pressure because it’s a product that comes towards the end of the development. But it’s also very visible and tangible, so in my belief it’s an area that should have money spent on it,” says Wijks who says that where physically and financially possible, products should be bought as specified, rather than re-created. “The problems are down to speed, the requirement to design hotels very quickly, late appointment, and a lack of information on the spec sheets. There are also problems in the execution, and contractor and turkey projects can have very different outcomes in terms of quality and respect of the interior design,” he continues. From the financial point of view Middle East regional sales manager for Burgess furniture, Ily Fasie, says recent market conditions are causing havoc on buying decisions and that the consequences are “cannibalized” future budgets and shortfalls in the completion of banquet, FF&E and OS&E elements. “As a result, some hoteliers may have been forced into accepting lower standard products for these venues, and unfortunately suffer the consequences! Once hoteliers have this experience firsthand, the impulse to buy real quality to replace the pieces they need, is usually manifested as soon as it becomes feasible budgetwise. Every hotelier wants the very best for their property,” she adds. It’s an observation B5 management Patricia Boettcher shares: “At the end of the day, the problem is the hotel business here is always dependent on the budget and it’s often used upfront earlier in the process, when mistakes have been made. Most of the time you
DECEMBER 2012
TIPS TO HOTELIERS What is needed is a lightweight, solidly built chair that is comfortable for the guest. Whenever I visit or stay in a hotel, I check under the seat for the manufacturer’s name, and it hasn’t failed yet: I can tell whether it’s a Burgess chair just by sitting on it. This is not always easy to tell by looks, at least to the untrained eye, as our products have been copied widely – maybe we should be flattered? But as the wise man said, all that gleams is not gold.
Ily Fasie
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
Meeting room furniture is exposed to high levels of usage and requires durability.
TIPS TO HOTELIERS I think hotel design is the very beginning and you must appoint a top architect and designer – it’s a major factor in the success of the hotel. Hotel design is an art and I can tell you that I have seen some situations, even the hotels here as a professional or guest you will know when you enter from the feeling of seeing the hotel and thinking ‘wow’. Sometimes you go in and say ‘wow hmm’ or ‘wow wow’. You know from that first moment that everything is true and only a designer can do that. At the end of the day people touch and feel the differences.
Philip Selva
have already invested money in the wrong direction.” Explaining a new specification portal, Innspec, which he has developed to tackle such issues while aiding suppliers, Wijk warns: “It comes down to the speed at which specifications have to be completed. If you don’t give your designers enough time to specify properly and they have to do an entire hotel in three months, with detail specification, then you can’t expect the correct degree of detail in the specs.” Artist or accountant? It’s not only the direction of investment but the type, and balancing artistic licence with brand values. Who should be in charge of a project and should hotels have a hands-on in-house creative team of their own? “I think you need both. Firstly take all those people who have been in the business, procurement companies and specifiers and so on. Some are very knowledgeable,” says Boettcher, who maintains that quality requires money, but that spending that money requires understanding of what you are trying to create. “It’s more important to invest in something that’s individual, than to invest in a name,” advises lighting artist and designer Beau McClellan. Having installed bespoke lighting installations in some of the world’s most impressive hotels (see opposite), and operating in the Middle East through B5, McClellan urges hoteliers to think about how best to create something interesting with their budget, rather than just fill space, and to assess lobbies, corridors and rooms through the eyes of the guest, rather than the budget holder. “The current logic is ‘we need a chandelier and we have this much money. What can we afford? Great, put it in’, ” he adds, continuing: “Apple is one of the richest companies in the world, but Steve Jobs wasn’t money driven, he was driven on the detail and bringing something into harmony with effect, and purity.”
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WORD FROM THE INDUSTRY Gaby Khoury, vice president, and Sam Saleh, business development director, Greenline Interiors, shares their tips No two projects or clients are the same Very project is different, yet between conceptualization and the design phase, all the way to actual production, there is opportunity for value engineering that enables a project to minimise cost yet increase durability and practicality. Playing by the rules One of the most important aspects of our work is to always look for that innovative way in which we can offer our clients fit-out work using
techniques that enable them to abide by new regulations that emerge. Take for example fire and safety regulations that are becoming more and more stringent across the region. Signature style Another factor that we advise our clients on is the awareness factor in regards to animal rights and the use of exotic skins. Our research department is always at the forefront of cutting edge technologies and one of the most sought after materials is cow leather that can be manipulated to resemble exotic skins, thus saving the endangered animals while maintaining a unique look.
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
CASE STUDY When Beau McClellan was commissioned to produce a creative lighting feature for the Conrad Algarve, Portugal, he was presented with a towering dome structure and an instruction to ‘fill it’. Contrary to the chain’s initial vision for the space, McClellan painted the dome and then created an LED powered installation comprising of a number of mirrored lamps, suspended from the ceiling of the hotel entrance, that worked with the space. Positioned so the mirror glass pendent lamps would reflect the natural light streaming through the windows during the day, the lamps illuminate to create a completely different effect after sunset, McClellan explains as “one thing when it’s on and it’s one thing when it’s off”. “This beautiful hand blown crystal has a very simple form, but what’s going on inside is very special in terms of LED technology. When the lights are off they’re completely mirrored so you can’t see anything through them and they reflect everything around so they look like a sculpture. “What I try to do with a lot of my work is to create a stand-alone piece throughout the day that transforms at night. We also had to use a special chip in order to develop the correct colour because the warmer you go with LED is the less output you have and you still need to have output.” The use of LED technology, which produces a more versatile colour range now than when the technology was first introduced to the market, means each bulb can produce 60,000 hours of light. The lamps also feature a static coating that repels dust. Working with the whole design and architecture team throughout the night, McClelland continued a theme throughout the hotel and its grounds, placing a further chandelier in the spa and lighting outdoor spaces with fire torches. “By the second night the guys were getting so excited because the theatrics of the hotel had been brought out and they started to realise, with that spark of creativity, that something better could be achieved,” he recalls. “Hoteliers need to listen to the lighting designers to guide them and help them save money. We’re not going to machine gun the roof with thousands of lights if it doesn’t need it; think of the installation and running costs. In this project we actually removed about 70% of the existing lighting because they didn’t need it.”
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DECEMBER 2012
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SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
B5 Interiors showroom in Dubai features products by a number of designers and suppliers.
Boettcher says: “The business is growing and you need to be different from the others. I think hotels should create their own identity, not just in look but in style.” Amongst some of the ‘style’ products on offer at B5 is a video wall that can create the illusion of being underwater or on a beach, using visual and audio simulations. Controlled via iPad, Boettcher says the concept is ideal for spas, restaurants or nightclubs and it has proven popular with both hospitality and private clients. “The special features add value to a hotel. People go to different hotels for different reasons; for example the gold at Emirates Palace, you walk in and it feels ‘wow’. You should feel like coming home,” she says asserting that the therapeutic benefits or artistic touches are even more important in properties aimed towards the business traveller. “There is also a clear gap in the market for “concept” hotels, hotels
Knowing how long it took for lighting to be appreciated and realised as a psychosomatic feature, I would say the next design trend that will emerge will be sound design Beau McClellan
designed with the art community in mind. Their needs are obviously very different to the IT community’s needs or to the diamond trader’s needs,”
TRI principal and managing director, Daniel During agrees. Market direction In terms of completing interior projects that will last, the resounding conclusion is to create something timeless, yet with a touch of niché. It is also predicted that the niché market that dominates London and Europe will gain a stronger foothold regionally and that hotels will soon have to modify their offerings to match the needs of young travellers, single parent families and females. Yet for During, the focus is elsewhere as he says hoteliers need to define who their guest is and ditch the current ‘one size fits all’ approach to room design: “It’s the most common mistake and consequently hotels rooms are being designed as ‘one size fits all’. Hotels should ask: will our guests be mainly female, Emirati, or European?” “One of the most challenging but easily solved problems is that more
TIPS TO HOTELIERS My philosophy, and the root of the B5 name is: be creative, be innovative, be individual, be sophisticated and be unique. For me, design and functionality are still key words; you can have a nice design and still not have quality and functionality, it’s all related. Hoteliers should be asking themselves: What is the design, what quality do I get and what can I do with this product? Patricia Boettcher, B5
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Commercial and Hotel Interior Furniture
Established in 1985
50,000sqm factory
Specialist manufacturer of sofas, mattresses, beds and quilts
Longzhou Road Dawan Area Baotian Building Leliu Town Guangdong China
T: +86 757 2533 9981 /82/83/84/85/86/87 +86 757 2533 9901 /02/03/04/05 F: +86 757 2533 9900 www.baotian.com E: amanda@baotian.com
SPECIAL FEATURE - INTERIOR AND DESIGN, FF&E
Interiors supplied by Selva have been used in both residential and hospitality projects.
TIPS TO HOTELIERS Define the market; define the concept; and work with hospitality consultants, not just designers. In the 80’s and 90’s hotel design was operator driven. In the 2000’s it was designers driven. I believe that we are entering a zone where hospitality consultants will be called upon to drive the design based on brand, market segmentation and ROI. Designers are generally more concerned about the integrity of the design, and they usually sacrifice function over form. It’s time to stop developing architecture and start developing marketable spaces that are market driven.
Daniel During
than 95% of project managers in hotels are men. This often leads to ladies’ needs being overlooked; details such as oversized or heavy towels are great for men, but too heavy for a lady to wrap around her hair for example. Shaving mirrors are usually placed at a man’s eye level while they should actually be placed at ‘make up mirror’ level so ladies can use them too. Also hairdryers that are either too underpowered, too heavy or in the wrong place. A busy woman wants to be able to do her hair quickly and get out,” During continues. Observing a more holistic shift in the approach to creating positive atmospheres within properties, McClellan says the next player to enter the market will be the ‘sound designer’. “Knowing how long it took for lighting to be appreciated and realised as a psychosomatic feature, I would say the next design trend that will emerge will be sound design.
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Apple is one of the richest companies in the world, but Steve Jobs wasn’t money driven, he was driven on the detail and bringing something into harmony with effect, and purity Beau McClellan
Finishing touches Wijk says value, as opposed to price, is even more important when it comes to fabrics; a product where quality and protection against damage are essential. As is the consideration of maintenance, running and replacement costs, throughout the FF&E scope. “There are a lot of products that don’t have a very high total cost of ownership or have a low total cost of ownership initially but will cost you a lot in maintenance and repairs and replacements. That’s purely from an FF&E perspective. “You should also be using the right people, so go back to specialist manufacturers who produce that product as their core business. Don’t try to have something re-made or copied, you still need to consider maintenance, replacements, and so on. Don’t try and re-invent the wheel from project to project. That’s something we see a lot here,” he says
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INTERVIEW
Racing ahead One year on, the rebranded Yas Viceroy continues to evolve, according to GM Heiner Werderling. By Dave Reeder
A
lthough the Yas Hotel opened in 2009 as one of seven properties developed by Aldar Properties on Yas Island, it wasn’t until July 2011 that the iconic 5-star hotel really began to take shape as the Viceroy Hotel Group was given the contract to operate it. At the time, Brad Korzen, CEO of Viceroy Hotel Group, said: “It is only fitting that Viceroy’s first property outside North America is in Abu Dhabi, the home of our international headquarters.” In October 2011, the hotel was rebranded as Yas Viceroy. According to GM Heiner
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Werderling, “The improvements we have made since taking over the management of the hotel exemplify our dedication to immediately introducing Viceroy Hotels and Resorts’ unique service standards to the Yas Viceroy. “Our guests will see both cosmetic and service changes to Yas Viceroy, designed to ensure that what is already an architectural icon of Abu Dhabi becomes a standard bearer for hospitality in the region.” The hotel has an enviable position on the island, at the heart of the Yas Marina Circuit, home to the Formula 1™ Etihad Airways Abu Dhabi Grand
Prix, although this has brought some operational issues. Recently announced, for example, is the AED5m investment in upgrading balcony doors due to guest complaints about noise from the circuit. Werderling denies that the cost will affect the hotel’s profitability, pointing out that a programme of upgrade and enhancements has been in place since Viceroy took over management of the property. “All of our investment for Yas Viceroy is to enhance the guest experience and all the upgrades we are making are for us to offer our guests an exceptional, luxurious stay,” he explains. “For the Formula One weekend, it’s all about living the race experience, so the sound is definitely part of the atmosphere!” Over the past year, change has continued at the hotel, starting with a refurbished lobby by leading design
ROOMS, 74 SUITES
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INTERVIEW
firm Poltrona Frau Emirates, based in Abu Dhabi; plus a new branding; an expanded greeting area; and improved concierge facilities. Next on the to-do list was the re-introduction of executive club suites with benefits that include complimentary access to the executive lounge, private check-in and checkout. Werderling is keen to raise the standard of F&B in the hotel, a hallmark of Viceroy globally. “In all of Yas Viceroy’s dining venues and lounges, we continue to refine our offerings and service to add a better value for money.” With his team, he began with the menus at Noodle Box and Angar, two of the hotel’s twelve contemporary restaurants. This year, he hired from San Francisco a chef with a growing reputation in that city, Jennie Lorenzo, as Chef de Cuisine in charge of Nautilus, the property’s signature fish restaurant. She is developing a new menu and is working hard to improve the hotel’s sourcing options,
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The Viceroy Hotel Group Its current portfolio of managed properties includes two luxury brands, Viceroy and The Tides Current Viceroy properties include hotels and resorts in Santa Monica, Palm Springs, Miami, Anguilla, Snowmass, Colorado and Yas Island with forthcoming openings in Beverly Hills (currently L’Ermitage Beverly Hills), the Maldives and Bodrum, Turkey. The Tides collection includes hotels and resorts in Miami’s South Beach, Mexico’s Riviera Maya and Zihuatanejo, as well as upcoming developments on St Lucia in the Caribbean, which is currently operating as Jalousie Plantation. The Urban Retreat Collection includes Avalon Hotel in Beverly Hills, Maison 140 in Beverly Hills, and Sheraton Delfina in Santa Monica. moving in line with Werderling’s wishes to make F&B at Yas Viceroy as sustainably based as possible. Although he does not foresee future competition from any new projects on Yas
Island, Werderling is not complacent about the future, instead viewing success as coming not just from the hotel’s association with Formula One. “The Yas Marina Circuit and its associated business is only one source of Yas Viceroy’s business,” he DINING OPTIONS explains. “We are very actively establishing ourselves in the MICE and wholesale market. At present, we are doing well year round and, with even more leisure opportunities at Yas Island such as the Yas Beach and Yas Waterworld which are opening soon, we’re predicting an overall increase in occupancy.” Unlike many GMs he doesn’t face hiring or retention issues, “being such an iconic and unique hotel”. However, that doesn’t mean that he is without challenges
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Q&A
Every month, Facebook users spend 700 billion minutes online and in 2012, 75%* of companies intended to increase social media spending. Marketing specialists from Dusit Thani, Le Meridien, Hilton, Edition Hospitality and Table4ME share their observations and guidance for harnessing the power of the social web
S
ocial media is predominant in almost every aspect of daily life – how active is your property/chain and what do you do?
Daniel Andrews: Because social media is such a large part of daily life it would be a missed opportunity for any business to ignore it. Dusit International has fully embraced social media channels as an additional avenue of communication between the hotel and our guests. More specifically, Dusit Thani Dubai monitors its own sites on a daily basis to ensure that we reply to all comments or queries promptly. Our accounts on sites such as Facebook and Twitter not only serve as a platform for promoting our Thai culture and heritage but
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also allow us to provide guests and prospective guests with any updates to services and promotions. Review sites such as TripAdvisor are vital in providing the hotel itself with feedback from our guests and serves as a valuable platform for us to respond to guests experiences after their stay with us.
Tiina-Maija Bergman: It’s really encouraging to see that more and more restaurants have a presence on social media whether on a single channel, or across multiple platforms. Where I see a huge opportunity for the F&B sector is in how they use their social media presence to further enrich their diners’ experience and drive more business, for example
through online table bookings. Marketing budgets in the restaurant industry can be tight and the use of, often free, social media channels is a great way for restaurants to further extend their marketing reach and to effectually do more with less. I would love to see more restaurants in the region take full advantage of this vast opportunity. Lastly, the restaurant industry in my view benefits tremendously from having a dialogue with customers. Social media has made it possible to shift from primarily monologue marketing to effective dialogue with diners and followers allowing them to engage and interact directly with their customers, for example through restaurant review sites.
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Q&A
Madiha Zakir: We are active throughout the day on our major social media channels, which are Facebook and Twitter. We respond to all queries and feedback, regardless of it being negative or positive. Engagement with our fans and followers is the key. We also hold regular TweetUp events at the hotel. Tuhina Rahman: Social media is a dominant marketing force at Hilton Worldwide’s four properties in RAK. We monitor all user generated content on a daily basis and respond as quickly as we possibly can – regardless of the subject matter. Of course, it’s a twoway dialogue so we also share articles, images, and videos and also update with special offers or events. We have found our regular guests, who are active on social media, are more than happy to act as ambassadors and forward information and promotions to their own contacts. Discussion with the consumers is crucial; I do this by asking open answer questions whether it is about key initiatives s to joining groups that share a common interest with my hotels, for instance destination information or charities, and then constantly interact with the groups. This is great cross exposure for the properties. I cannot guarantee these conversations are paying off but I do know that the conversations are going on and I would believe it is better to be part of it.
Paul Parsons: Create great content! It is fast becoming a more social world in which great content is shared, often beyond the anticipated, reach to a much larger audience. Hotels need to think outside of the box and ensure that their content is genuine, true to brand and is not just a post or tweet of their promotions. The online world is all about engagement, therefore the effort needs to be made to enhance a twoway communication and what better way to develop that relationship, than to utilise user generated content;
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We have found that our regular guests who are particularly active on social media, are more than happy to act as ambassadors Tuhina Rahman, Hilton Worldwide, RAK. guest images or stories of their stay. In addition hotels should capitalise on the variety of niche online platforms, such as LinkedIn.
What does the industry need to do to maximize its reach online? DA: The power of social networks has never been greater and while in the past few years we have seen a strong increase in the adoption of social media within the hospitality industry, along with a great deal of investment in new apps and design, there are still so many opportunities to maximize on this. We are constantly looking at new and emerging platforms to see how they can benefit not only us as a business but also for our audience
and regularly share ideas and new practices across the group.
TMB: I think it’s important for the restaurant industry to look at their overall distribution strategy and to ensure that both traditional and digital distribution channels are fully aligned and working to achieve their maximum potential in driving business to the restaurants. Optimally using the available technology for restaurant marketing gives restaurants access to very detailed real-time analytics that they can use to measure and track promotions or the effectiveness of using one booking channel over another, which is invaluable in proving ROI and effort.
MZ: The industry has to find smart, creative ways to reach consumers today because conventional marketing does not work anymore. Through deep social media engagement, brand loyalty and targeted search placement that drives a high ROI, properties can ensure a good reach online.
97%
PERCENTAGE OF 700 COMPANIES POLLED BY WILDFIRE* BELIEVE THAT SOCIAL MEDIA MARKETING BENEFITS THEIR BUSINESSES. 75% INTEND TO INCREASE SOCIAL MEDIA SPENDING IN 2012.
TR: Befriending community organisations, media, and noncompeting local businesses is a great start – our hotels play a major role in
THE RESPONDENTS
Daniel Andrews PR and communications manager, Dusit Thani Dubai
Tiina Maija Bergman managing partner, Table4ME
DECEMBER 2012
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Q&A
750m
FACEBOOK HAS MORE THAN 750 MILLION ACTIVE USERS. OVERALL, FACEBOOK USERS SPEND 700 BILLION MINUTES ONLINE IN A MONTH.
their individual local communities so it’s important that we build relations locally and know what is going on. For all in-house guests, we want to maintain an on-going interest in the hotel so we clearly display our facebook link everywhere in our properties from poster stands in the business centre to digital screens at high traffic areas. We want to attract people who actually want to know about hotel offerings and to encourage uptake we run competitions as part of the feedback. We also seek testimonials and celebrate international and local events and holidays, we find this helps encourages customer engagement. However the biggest opportunity for social media comes from the intersection of social media and mobiles. We are currently working on our location base services such as Facebook Places and Foursquare. When Foursquare users check into the DoubleTree, they unlock a special that earns them a complimentary drink.
How is the growing popularity of review sites helping and hindering the industry? TMB: I believe restaurant review sites have fostered transparency in the F&B industry as a whole, and as a result there is more authenticity and proactivity in restaurant marketing,
Social media market share
Facebook Twitter Blogs LinkedIn Youtube Other
which is I think is a healthy trend. It’s an expectation from customers and hence a responsibility for restaurants to respond and listen to customer feedback and failing to do this in a positive, consistent manner could taint their reputation quickly, which could be seen as a downside of the ever-growing popularity of review sites.
DA: The hospitality industry has a number of ways in receiving reviews and feedback from guests. The growing popularity in review sites serves to increase the quantity of reviews the hotel receives to ensure
THE RESPONDENTS
Tuhina Rahman cluster marketing and PR executive, Hilton Worldwide, Ras Al Khaimah
Paul Parsons digital marketing consultant, Edition Hospitality
Madiha Zakir online marketing manager, Le Meridien Dubai/ Le Meridien Fairway Hilton
that we are meeting expectations of our guests and address any areas of improvements. It is those businesses that struggle to manage the reviews and respond to them correctly that will find the growth a hindrance, but for us we see them as valuable to our operations and services.
PP: Due to the increased nature of the social world we are in, these review sites provide an easy, accessible and fast resource, usually with an honest portrayal of what new guests could expect and encounter during their potential stay. These sites can be beneficial for a specific hotel or brand as they provide an additional, yet impartial platform that allows for greater exposure. Hotels should use these additional platforms to their advantage by responding to each and every review, both positive and negative, in a personal manner. This in turn helps to maintain the brand image and demonstrates the hotel’s desire to enhance all future guest experiences. How do you deal with negative comments that are posted on/to your brand’s profiles? TR: This element of customer service is a crucial aspect of social media
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Q&A
and one which requires immediate attention. Indeed, when handled correctly, a negative guest comment can often be turned into a positive if the complainant fully understands the steps being taken to resolve the issue. The ease and access of social media means that we hear more about challenges and potential problems, and are therefore given an opportunity to act on the information, before it can escalate further. It’s also extremely valuable feedback in helping us to improve our operations. I also use Google Alerts to review comments and feedback from other websites.
DA: Any comments, negative or positive, are handled in the same manner, promptly. So many businesses get worried about any criticism online and either delete or shy away. We have taken firm steps to ensure that any negative comments are shared with the relevant departments and are investigated as a matter of urgency. We can then reply with an informed response. By doing this we are not only clarifying any issues on the same platform they were delivered, but we are seen to be taking all guests experiences seriously and with sincere respect. MZ: We all have to deal with negative feedback at some point. While it can be tempting to ignore criticism or complaints, it is not a productive approach. Instead, we acknowledge the negative comments and decide on a service recovery measure with the concerned department and respond to them in a corrective manner (if any) internally. PP: The majority of negative comments made by customers are predominantly from those who are eager to express their opinion and point of view. The most successful way to respond to a negative comment is to acknowledge the feedback and provide the customer with additional contact details and a dedicated representative, should they wish to continue their
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discussion. It is vital for hotels to respond appropriately and within a timely manner, as this demonstrates respect for each customers point of view and their aim to provide all guests with a positive experience.
How does online activity strengthen your brand? DA: Dusit has such a strong brand identity. Our Thai heritage and culture sets us apart from our competitors and the multimedia possibilities of online platforms are a perfect avenue for us to be able to showcase to prospective guests what they can experience during a stay with us. MZ: With hundreds of hotels in Dubai, online activity is not a choice anymore. It is necessary to maintain the buzz in the market and for consumers to keep coming back to you.
TR: The internet provides us with the ability to discover our audience’s preferences and what online platforms they are using, to target them accordingly. We make sure business messages are accurate, consistent, and relevant and, in particular, devoid of corporate jargon – this helps to build popularity and credibility. We also feel it’s important for audiences to see the faces behind the social media brand, so we attend many local events and networking opportunities to add a personal introduction to the hotels. We also use regularly update newsletters to provide subscribers with the latest news and remind them of our social media sites.
WTM: The key social media trends to watch in 2013 More connections: The use of social media is growing, while use of the remainder of the web is shrinking. In March 2011, Facebook usage (as a percent of total web usage minutes) had increased year over year by almost 70%, while usage of the remainder of the web dropped by 10%. A survey by Wildfire also found that businesses were not rushing to judgment about a measurable return on investment (ROI) for social media marketing, but rather saw these “early days” in the exploration of the social web as an opportunity to grow brand awareness and engage in customer dialog. New marketing landscape: 2012 marked a turning point from traditional to digital marketing strategies, as digital budgets overtook those of print, radio and TV marketing; largely interpreted as proof of the reach of digital marketing. Viral connections: The goal of marketing on the Internet is to contact consumer influencers with compelling content. Targeted content is determined not only by the user’s preferences, but also by the “likes” of the user’s friends (the theory is that friends share likes). While it’s useful that good news travels fast, it’s worth noting that bad news travels faster. Remember that letter to Richard Branson’s Virgin Airlines about the quality of onboard meals? Implications: Success in this social media dominated world requires travel companies to embrace social media marketing.
PP: As the current online community is so diverse and reaches all corners of the world, hotel brands are provided with a unique and more cost effective opportunity to increase their exposure and brand recognition in what were previously hard to reach markets and demographics. Online also allows hotels to observe and review what their competitors are
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doing in the same markets, in a more immediate and often frequent manner, which helps to ensure that their brand is on trend and on par with their competitors whether this be offers provided or methods of exposure.
50%
OF FACEBOOK USERS LOG ON IN ANY GIVEN DAY
How is the growing popularity of review sites helping and hindering the industry? MZ: Being one of the pioneers of hospitality in Dubai for the last 33 years, the majority of Le Meridien Dubai’s reviews are positive and help us drive and convert more business. Negative reviews should always be taken as an opportunity to improve your hotel’s service and processes
TR: Sites that feature user reviews like Trip Advisor and Expedia etc are important for hotels. Authenticity and reliability are key qualities to rank well on these sites and it’s important for us to maintain and update profiles and to always monitor the top review sites. Indeed, we believe in taking this a step further by actively encouraging guests to post reviews on key sites such as TripAdvisor which we then share on our in-hotel posters, digital screens and facebook sites. How would you rate the industry’s adoption of tablet computers? What is it doing well and what can be improved on? TMB: I believe there is an opportunity to further grow the use of tablets in the restaurant industry besides the common use for menu browsing and restaurant information, and to use the technology that has been invested in already, to further enrich the customer experience. This could be done for example through the use of guest comment/feedback apps or the integration of restaurant loyalty and incentive schemes. Lastly, tablet technology enables marketing to multiple senses. Not only can we read about a menu item, we can now also see photos of dishes
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Carnival Cruise Lines Carnival partnered with Buddy Media to develop and launch a Facebook page that uses videos to help first time cruisers become more comfortable with the cruise experience. The page allows potential travelers to interact with Carnival cruisers, who can post videos, ask questions and interact with crew members. As of November 2012, the page had 2,158,040 likes. or watch how they are made through cooking demos through the use of photo and video. Perhaps the one thing that could impede growth and adoption of tablets in the industry is the cost of the tablet devices itself, which needs to be budgeted for separately, meaning it’s often a longer-term decision and/or investment for the restaurant.
PP: The adoption of tablet computers is still in its infancy, especially with their own online presence. A large number of hotels still do not have a compatible website for most tablet devices and are running before they can walk by trying to develop applications for these tablets instead of enhancing something they already have first. At the moment, guests are most likely use a search engine to research a hotel - its location, promotions etc. when this is done, apps are not referenced, only a hotel’s website is. Despite the delay, some hotel brands have been leaders by incorporating tablet computers into a guest’s experience whether it be as an all room remote or as an interactive menu in an F&B outlet. I assume that, as the novelty of the tablet wears off and these become more affordable, hotels will be able to use these as a resource more and more
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Mobilising the workforce More and more people in the hospitality industry are using their own smart devices at work
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he hospitality workforce already makes good use of smart devices, particularly in the Middle East, where wireless internet connections are ubiquitous. At work, the very same people want to use and connect their devices to the hotel network, just as guests do, to catch up on their emails or check applications. 6RPH KRVSLWDOLW\ FRPSDQLHV DUH WDNLQJ DGYDQWDJH RI WKLV E\ LQWHJUDWLQJ HPSOR\HH SXUFKDVHG PRELOHV DQG WDEOHWV LQWR WKH FRUSRUDWH QHWZRUN 7KLV QRWLRQ RI µEULQJ \RXU RZQ GHYLFH¶ RU %<2' LV FDWFKLQJ RQ IDVW ,W LV GULYHQ E\ WKUHH PDLQ WUHQGV LQ HPSOR\HH EHKDYLRXU
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&RYHULQJ PDUNHWV DQG VXUYH\LQJ RYHU employees across a number of different verticals â&#x20AC;&#x201C; including hospitality, financial services, healthcare, media, public sector, healthcare and life sciences, and energy and utilities â&#x20AC;&#x201C; the survey drills into what is driving employees to use their own devices for work. 2YHUDOO DURXQG RI DOO IXOO WLPH HPSOR\HHV DUH XVLQJ a personal smartphone or tablet to access corporate data â&#x20AC;&#x201C; and that calculation takes everyone into account, including those people who do not own a smartphone or tablet. Among those who do own a smartphone or tablet, WKDW SHUFHQWDJH MXPSV WR DURXQG +RVSLWDOLW\ HPSOR\HHV ZRUNLQJ LQ D KLJK JURZWK PDUNHW OLNH WKH 8$( GHPRQVWUDWH D VWURQJHU WUHQG WRZDUG preference for a single phone for work and personal use WKH VDPH LV WUXH RI SODFHV OLNH 6LQJDSRUH 6RXWK .RUHD DQG WKH %5,& FRXQWULHV $V ZLWK VPDUWSKRQHV ZRUNHUV LQ KLJK JURZWK PDUNHWV DOVR GHPRQVWUDWH D VWURQJHU preference for a single tablet for work and personal use. 2YHUDOO VRPH RI KRVSLWDOLW\ ZRUNHUV SUHIHU using a single smartphone or tablet for both personal DQG EXVLQHVV XVH $ PDMRULW\ RI KRVSLWDOLW\ ZRUNHUV DOVR OLNH WKH Ă&#x20AC;H[LELOLW\ RI EHLQJ DEOH WR DFFHVV ZRUN GDWD RXWVLGH RI QRUPDO ZRUN GD\ KRXUV DQG IHHO WKDW GRLQJ VR means they are able to do their job better.
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FRQVXPLQJ DQG LPSUDFWLFDO ± H[WHQGLQJ WKHLU RSWLRQV LQ terms of what is possible to do while on the move. &KHFNLQJ HPDLO DQG EURZVLQJ WKH ZHE DUH WKH PRVW FRPPRQ %<2' DFWLYLWLHV RQ WDEOHWV ± FRQVLVWHQW ZLWK what is seen on smartphones (discounting calls and 606 $V H[SHFWHG ZH DOVR VHH LQFUHDVLQJ XVH RI more complicated apps such as analytics, customer UHODWLRQVKLS PDQDJHPHQW &50 DQG HQWHUSULVH UHVRXUFH PDQDJHPHQW (53 RQ WDEOHWV WKDQ RQ VPDUWSKRQHV the larger the tablet screen, the better the overall user H[SHULHQFH IRU WKHVH DSSV ,Q 2YXP¶V VXUYH\ WKHUH LV YHU\ FOHDU DJUHHPHQW IURP WKH majority of respondents that having access to work email and other business apps at all times of the day helps them WR GR WKHLU MRE EHWWHU EHOLHYH WKLV WR EH WKH FDVH ZLWK PRUH UHVSRQGHQWV XQGHFLGHG WKDQ LQ GLVDJUHHPHQW 7KLV GHPRQVWUDWHV WKH SRWHQWLDO EHQH¿W RI %<2' behavior in increasing employee productivity. 'DWD SULYDF\ FRQFHUQV DUH D VLJQL¿FDQW LVVXH DFURVV DOO JHRJUDSKLHV $OPRVW RI ZRUNHUV LQ WKH 8$( Ã&#x20AC;DJJHG that data privacy concerns would stop them from using personal apps on a corporately provided smartphone DQG RU WDEOHW" %XW DSSUHFLDWHG WKH IDFW WKDW WKHLU employer could offer them some preventative security VXSSRUW IRU LQVWDQFH E\ KDYLQJ D VHUYLFH ZKLFK FRXOG remotely wipe personal data from a smartphone and/or tablet if it was lost or stolen.
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For more information please contact du at managed. services@du.ae
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TRENDS / PRODUCT WATCH
Product watch The world’s most useful and innovative new designs, delivered to you, every month
FUTURE PROOF MIXER SOLUTIONS FROM HANSGROHE Hansgrohe SE has launched an easy to use , ergonomically designed mixer range with pre-set temperature functions. The Talis Care is described as being ideal for the hospitality industry. The Talis Care range for the wash basin consists of two single-lever mixers of different heights, ComfortZone 80 and ComfortZone 150, which cater for differing space requirements above
the wash basin. The range is complemented by a wall-mounted single-lever mixer, a mixer for the bath tub, and another model for the shower. To increase the temperature to more than 40°C the user first has to deactivate the safety lock by pressing a button and the simple styling from Hansgrohe is also particularly easy to clean.
AWAD BADI NAHAS DISTRIBUTION FOR MIELE German kitchen manufacturer Miele has signed a new distribution agreement with Saudi Arabia’s Awad Badi Nahas following the development of an exclusive range of domestic appliances for the Kingdom’s market. Specifically distributing Miele’s range of luxury domestic appliances, Awad Badi Nahas has more than three decades of experience in the Kingdom.
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“Our distribution agreement is a strong foothold in Saudi Arabia for the brand, and Miele’s reputation for quality and expert craftsmanship means that we are perfectly placed to fill a gap in this mega market with our innovative, high quality collection of luxury domestic appliances,” said Gaby Koudsi, GCC managing director for Miele.
DYSON BEATS OWN PRECEDENT Dyson has developed a new range of cordless vacuum that is even more powerful and lightweight than previous models and suitable for every floor type, Dyson Digital Slim. Powered by the Dyson digital motor, carbon fibre brushes on the vacuum feature anti-static properties to reduce the build up of static charges. The brush bar also has stiff nylon brushes to pick up ground-in dirt from carpets. The new model features a detachable, long-reach wand; lithiumion technology; and docking station and remote charging. “Our digital motor has taken over ten years to develop. Because of its speed – it spins five times faster than a Formula 1 car engine – it’s smaller, stronger and more efficient, making DC35 a smaller, lighter, and more powerful machine,” said Dyson.
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BEST OF THE REST
BATTERY POWERED TOUCHLESS TAPS MARRIOTT IRAQ CONTRACT FOR LIMAH Marriott has specified a Wayfinding and signage system developed by Limah Design Consultants for its new property In Erbil, Iraq. The 5-star property, Marriott’s first in Kurdistan, will feature 200 rooms and a 75 unit deluxe apartment offering. Both are planned to open simultaneously in 2014 and will form part of a the mixed-use project development “Empire World”, a cluster of residential towers, private villas, office towers and retail and leisure space. “The interiors of the hotels were designed by LWD, and provide much of the inspiration for our work as we like to integrate our designs into the space, making it seamless with interior finishing,” commented Limah founder and managing director, Jason Lewis.
A new generator unit has been incorporated into the environmentally friendly touchless Geberit lavatory taps type 185 and 186. To ensure the lavatory taps can also be supplied with current in a sustainable way and function selfsufficiently as previously, the taps were conventionally fed via power supply system or battery. The energy produced during operation is stored in a rechargeable battery that supplies the lavatory taps eliminating the entire standby consumption of a power supply unit also. The micro power station is suitable for public and semipublic areas where touchless lavatory taps are used for environmental and hygienic reasons.
NEW WATER CONCEPT FROM DORNBRACHT Dornbracht has announced the introduction of a range of accessories designed to create a series of “unique scenarios” using water, called the “Ambience Tuning Technique”, developed as part of Dornbracht’s “Transforming Water” concept. The “scenarios” are described as balancing,
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energizing and de-stressing and are delivered via the JustRain, WaterSheet and WaterBar shower fittings. The central components of the Ambiance Tuning Technique are the eTool, eValve and eSwitch. Integrated in an open system, they consist of the technical components that allow a user to set the choreography of the water – the pressure, temperature and volume. Designed by Sieger Design, the three pre-programmed scenarios are activated by keeping the respective button pressed down for two seconds: the water choreographies then begin automatically. Within the scenarios, the temperature and volume settings of the outlets alternate. This is made possible by the electronic eValve that is installed directly behind every outlet. The eSwitch controls electricity supply and communication between the eValve and the eTool control panel. The integrated service port in the eSwitch enables configuration and diagnosis of the system.
DORMA A new sliding door system, by DORMA, has met the latest German energy saving regulation EnEV 2009. Providing thermal insulation, ST Flex Green is approved by the German testing, surveillance and certification body ift Rosenheim. The ST Flex Green is part of a new range of sliding doors featuring slender profile system, suitable to create elegant full-glass systems that can secure an environment from intrusion as well as be green.
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TENDERS
Tel: (+971) 2 634 8495 www.EmiratesTenders.com
NEW SUPPLY AND SERVICE TENDERS Project name: King Fahd Medical City (Saudi Arabia) City: Riyadh 11525 Postal/Zip Code: 59046 Country: Saudi Arabia Phone: (+966-1) 288 9999 ext:1449 Fax: (+966-1) 461 4006 / 467 4006 / 1458 eMail: purchasing@kfmc.med.sa Nature of work: Provision of catering services for patients of a medical city. Cost of Tender Documents ($): 13335 Last date of submission: January 9, 2013 Project name: Ministry of Interior (Saudi Arabia) Addres : General Diwan, Airport Road City: Riyadh 11134 Postal/Zip Code: 2933 Country: Saudi Arabia Phone: (+966-1) 401 1944 / 401 1111 Fax: (+966-1) 403 1125 Website: http://www.moi.gov.sa Nature of work: Provision of catering services for various hospitals of a ministry. Cost of Tender Documents ($): 400 Last date of submission: December 25, 2012 Project name: Muscat Municipality (Oman) City: Muscat PC 100 Postal/Zip Code: 79 Country: Oman Phone: (+968) 2475 3000 Fax: (+968) 2479 8134 / 2479 6205 eMail: info@mm.gov.om Website: http://www.mm.gov.om Nature of work: Construction, operation and management of a premium luxury restaurant for a municipality. Cost of Tender Documents ($): 265 FARSI SEVEN TOWERS Last date of submission: 30.12.2012 SAUDI ARABIA
$134m
Project name: King Saud University Address: University Street, Dirriyeh City: Riyadh 11451 Postal/Zip Code: 2454 Country: Saudi Arabia Phone: (+966-1) 467 0000/ 467 6935/ 467 4000 Fax: (+966-1) 467 7008/ 467 7580 eMail: eng@ksu.edu.sa Website: http://www.ksu.edu.sa Nature of work: Provision of catering services for male and female students to a university. Cost of Tender Documents ($): 2670 Last date of submission: December 9, 2012
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DECEMBER 2012
Tenders All the latest information on the tenders you need to know about
NEW TENDERS Project Name: The Address The Boulevard Tower Construction Project - Downtown Dubai Description: Construction of 340-metre, 63-storey The Address The Boulevard Tower comprising a 5-star hotel and serviced apartments consisting of studios, one-two-three and four-bedroom apartments. Client Name: Emaar Properties PJSC Country: UAE Consultant: Atkins International (Dubai) Status: New Project Project Name: Mixed-Use Tower Construction Project - Sheikh Zayed Road Description: Construction of a 100-storey mixeduse tower, including serviced apartments, shops, swimming pools and garden areas. Client Name: Meydan L.L.C (Dubai) Country: UAE Status: New Project Project Name: Hard Rock Hotel Construction Project - Saraya Development Description: Construction of a five-star Hard Rock Hotel comprising (5) basement levels, (4) podium levels, (32) floors and (4) levels of services. Client Name: Aabar Properties L.L.C Country: UAE Consultant: Confluence Project Management (Abu Dhabi)Status: New Project Project Name: Farsi Seven Towers Project Description: Construction of 38-storey Farsi Seven
Towers comprising (130) apartments, four penthouse suites and commercial space for (16) outlets, including a gymnasium, lounge and events hall. Client Name: Zaki Farsi Group (Saudi Arabia) Country: Saudi Arabia Consultant: Zaki Farsi Group Budget (USD): 134,000,000 Status: New Project Project Name: Mondrian Doha Hotel Project Description: Construction of Mondrian Doha Hotel comprising two basements, a ground floor, a podium and (25) upper floors. Client Name: Al Hamla Holding (Qatar) Country: Qatar Consultant: South West Architecture (Qatar) Contractor: Societe d Enterprise & de Gestion - SEG W.L.L (Qatar) Status: Current Project Project Name: Marsa Zayed Mixed-use Development Project - Phase 1 Description: Design and construction of 3.2 squarekilometre Marsa Zayed mixed-use development comprising a 33-storey tower, 263 Village Flats that will be serviced by a neighbourhood retail and community centre, a grand mosque that will accommodate 2,000 worshippers, 146 townhouses and all infrastructure works - Phase 1.
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TENDERS
Client Name: Al Maabar Abdoun Real Estate Development Company (Jordan) Country: Jordan Consultant: Hill International Middle East Ltd. (Jordan) Budget (USD): 10,000,000,000 Status: New Project Project Name: Kingdom Tower Project Description: Construction of one-kilometre-high Kingdom Tower comprising (161) storeys, a 97,000 square metre retail mall and underground garages for more than 4,700 cars. Client Name: Kingdom Holding Company Country: Saudi Arabia Consultant: Bechtel (Saudi Arabia) Contractor: Saudi Binladin Group (Saudi Arabia) Budget (USD): 1,200,000,000 Status: Current Project Project Name: Crystal Towers Project Description: Construction of Crystal Towers consisting of two buildings, a 30-storey and a 35-storey tower housing a hotel, including offices and apartments at Dubai Marina. Client Name: Al Fattan Properties Country: UAE Consultant: Tabanlioglu Architects Budget (USD): Unspecified Status: New Project Project Name: Banyan Tree Hotel & Resort Project Description: Design and construction of three-storey Banyan Tree Hotel & Resort comprising a total of (239) rooms at Jebel Sifa Client Name: Muriya Tourism Development Company Country: Oman Contractor: Muriya Real Estate Budget (USD): 220,000,000 Status: Current Project Project Name: Msheireb Downtown Doha Development Project Description: Development of Msheireb Downtown Doha (Formerly Heart of Doha City) mixed-use scheme comprising several districts, including a residential and mixed-use quarter, a retail quarter, a heritage quarter and a commercial area. Client Name: Msheireb Properties Country: Qatar Consultant: Gensler Associates International (USA) Contractor: Hyundai Engineering Corporation Budget (USD): 5,500,000,000
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Status: Current Project Project Name: Golden Mile 3 Commercial Development Project - Palm Jumeirah Description: Development of Golden Mile 3 commercial scheme comprising three basements, a ground floor, and a retail and office building. Client Name: Nakheel PJSC (Dubai) Country: UAE Consultant: Dubai South Africa Architects International (Dubai) Contractor: Cliff Creek Builders (Dubai) Budget (USD): Unspecified Status: Current Project
restaurants and two outdoor lounges, eight meeting rooms, two boardrooms, a business centre, separate male and female ballrooms and a junior ballroom. Client Name: General Organisation for Social Insurance - GOSI (Saudi Arabia) Country: Saudi Arabia Consultant: Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia) Contractor: Al Latifia Trading & Contracting Company (Saudi Arabia) Budget (USD): 480,000,000 Status: Current Project
Project Name: Fairmont Hotel & Serviced Apartments Project Project Name: Banyan Tree Hotel & Resort Project Description: Construction of Fairmont Hotel & Jebel Sifa Serviced Apartments comprising a 39-storey Description: Design and construction of hotel tower consisting of (563) guest three-storey Banyan Tree Hotel & Resort rooms, (144) services apartment units, comprising a total of (239) rooms. (105) other apartments, (13) food Client Name: Muriya Tourism and beverage outlets, ballroom and Development Company conference rooms, a swimming pool Country: Oman MARSA ZAYED PHASE 1 BUDGET and supporting facilities including Contractor: Muriya Real Estate underground and ground-level parking Budget (USD): fro 1,300 vehicles. 220,000,000 Client Name: National Investment Corporation (Abu Status: Current Project Dhabi) Country: UAE Project Name: Doha Festival City Development Project Consultant: Khatib & Alami Consulting Engineers Description: Development of Doha Festival City (Abu Dhabi) comprising a retail centre, an entertainment Budget (USD): 410,000,000 park, two hotels and an auto park made up of car Status: New Project showrooms. Client Name: Al-Futtaim Group Real Estate Project Name: Five-star Hotel Resort Project Country: Qatar Fujairah Consultant: Mace Limited (Qatar) Description: Construction of a five-star hotel resort Contractor: Arabian Construction Company - ACC comprising (200) rooms. Budget (USD): 1,600,000,000 Client Name: Al Ain Properties (Abu Status: Current Project Dhabi) Country: UAE Project Name: Centro Rotana Hotel Consultant: National Engineering Bureau (Abu Description: Construction of 10-storey Centro Dhabi) Rotana Hotel comprising (230) rooms and related Budget (USD): 55,000,000 facilities. Status: New Project Client Name: Al Malki Group Country: Qatar Project Name: Marriott Hotel & Executive Consultant: Arab Engineering Bureau Apartments Project Budget (USD): Unspecified Description: Construction of five-star Marriott Hotel Status: New Project & Executive Apartments comprising (200) rooms and (75 Nos.) deluxe apartments. Project Name: Hilton Riyadh Hotel & Residence Client Name: Empire World (Iraq) Description: Design and construction of Hilton Country: Iraq Riyadh Hotel & Residence comprising a 20-storey Status: New Project tower consisting of (480) rooms and a 14-storey Budget (USD): Unspecified tower with (350) hotel apartments, including several
$10b
DECEMBER 2012
HOSPITALITY BUSINESS MIDDLE EAST / 59
MIDDLE EAST
THE FIRST INTERNATIONAL CONSUMER TRAVEL MAGAZINE IN THE UAE
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APPIONMENTS NEWS
by a seasoned professional who knows the industry in this region, and O’Neill is the perfect person for the job,” said Jeff Senior, HSMAI global chair and executive vice president of marketing and sales at Fairmont Raffles Hotels International.
Appoinment news The latest appointment and promotion news from the region EXECUTIVE HOUSEKEEPER APPOINTED TO KEMPINSKI, MOE Founder of Cairo Housekeepers’ Association welcomed Kempinski has announced the appointment of Pamini Hemaprabha to executive housekeeper at its Mall of the Emirates property, in Dubai. Hemaprabha, who moves from Cairo to take over the role,
previously launched the Cairo housekeepers’ association, a first in Egypt. With nine years experience, Hemaprabha has previously worked at Park Sheraton and Towers in Chennai, India; Raffles Dubai and Fairmont Heliopolis and Towers in Cairo.
HOT HOTELIERS FOUNDER JOINS HSMAI U.A.E. Programme and membership development on task list
Pamini Hemaprabha.
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The founder of Hot Hoteliers, Erin O’Neill, has been named managing director of Sales and Marketing Association International (HSMAI). O’Neill’s responsibilities will include the development of HSMAI programmes and the growth of the organisation’s membership base in the U.A.E. in association with a steering committee of regional HSMAI members. “As we further develop our presence in the Middle East, it is imperative we are led
DECEMBER 2012
Peter French will steer new Raffles openings.
RAFFLES ANNOUNCES NEW COMPANY PRESIDENT Peter French to succeed John Johnston from January 1 Raffles has named the new president who will drive the international luxury brand into a “new phase of global expansion”. Peter French, who succeeds John Johnston from January 1, will steer the opening of four new hotels and resorts from the group’s brand office in Singapore. “Peter is a seasoned professional with proven expertise managing luxury brands and I am confident his wealth of experience will ensure the continued success of Raffles as it enters a new phase of expansion,” said Fairmont Raffles International COO Michael Glennie. The new properties will open in Makati City in the Philippines; Hainan, China; Istanbul, Turkey; and Jakarta in Indonesia, over the next two years. A former Mandarin Oriental Group executive, French has also worked as general manager of Bangkok’s The Sukothai; The Carlyle in New York; and Grosvenor House Hotel in London. Johnston, is to retire at the end of this year.
HOSPITALITY BUSINESS MIDDLE EAST / 61
JOB WATCH
Job watch
OPERATIONS MANAGER Industry: Hotels, clubs and spas Department: General Management/ GM Recruiter: Al Manzel Hotel Apartments Level: Department Head, Top Management Salary Description: Competitive Posted: 18/11/2012 Start date: ASAP The Operations Manager must be experienced in all hotel operations including F&B, Front of House and Housekeeping. You will be liaising with line managers ensuring the highest standard of service, cleanliness and guest experience; overseeing rotas and assisting with wages information and working within budget in addition to controlling stock and orders to maximize profitability. The OM must deal with staff inductions and paperwork required within employment guidelines and implementing correct cleaning and health and safety procedures and maintaining a good level of discipline and respect; Working closely with the Sales Manager, Head Chef and Business Manager to deliver efficient service and develop business. Candidate Profile: t " #BDIFMPS T EFHSFF XJUI .BTUFS T JO #VTJOFTT Administration preferred. t )BT UIF BCJMJUZ UP DPNNVOJDBUF DMFBSMZ JO English and Arabic.
Time to move on? We can help. All jobs can be applied for through the Hozpitality Web site GROUP DIRECTOR OF FINANCE Industry: Hotels, clubs and spas Department: Finance and Accounts Recruiter: APT Resources, Dubai Level: Corporate /Group, Department Head, Top Management Salary Description: AED 90,000 gross / per month Posted: 06/11/2012 Start date: Not specified Candidate must have an excellent background in a similar role within group headquarters, regional offices or corporate head offices of Hotels and any of the above mentioned verticals. This is a top-notch role and will only take in applications from candidates with background in handling finances of renowned Groups of companies.
GROUP CHIEF ENGINEER Industry: Hotels, clubs and spas Department: Engineering and projects Recruiter: CHA International Level: Corporate /Group Salary Description: Unspecified Posted: 19/11/2012 Start date: Immediately Must have GCC experience. Group Chief Engineer required for the Corporate Office for a Group of hotels, based in Dubai. Qualification: Degree / Diploma in Electrical or Mechanical Engineering. Experience: Minimum 15 years experience. Industry Experience Preferred: Hospitality / Service Industry
DIRECTOR OF OPERATIONS Industry: Hotels, clubs and spas Department: General Management/ GM Recruiter: CHA International Level: Department Head, Top Management Salary Description: Competitive Posted: 1 9/11/2012 Start date: As agreed
62 / HOSPITALITY BUSINESS MIDDLE EAST
Director of Operations Madinah, KSA for a stunning 5* luxury hotel - state of the art - 469 rooms, new dinning concepts, Kids Club and Wellness Center unique in Madinah. Generous expat package based on experience and background Due to visa restrictions only open for Lebanese and Syrian Nationalities. Please send your updated CV to susanne@chainternational.com. Please note only suitable candidates will be contacted
REVENUE MANAGEMENT SYSTEMS ANALYST Industry: Airlines, Travel Industry Department: Revenue Management Recruiter: Etihad Airways Level: Corporate /Group, Department Head, Middle Management Salary Description: Attractive, with benefits Posted: 1 9/11/2012 Start date: ASAP This primary purpose of this role is to provide timely, commercially important information and analysis to key commercial staff across the business. Information is derived from a wide range of data sources to provide clarity on strengths and weaknesses in terms of flown and forecasted revenue performance. The revenue management systems analyst must draw on IT competencies in a broad range of software packages – MS SQL, MSOffice and Business Objects amongst others – to extract relevant data from multiple tables in the RM Systems database in response to ad hoc requests and to provide regular reporting on the airline’s revenue performance. The nature of requests frequently involves combining data from numerous database tables and requires advanced IT coding. This is a specialist role, requiring advanced IT software competencies, report-writing and presentation skills and commercial acumen (including knowledge of airline revenue management).
DECEMBER 2012
PRAYING WITHOUT WORKING IS FAITH INACTION, SAJI IJIYEMI.
GENERAL MANAGER Industry: Hotels, clubs and spas Department: General Management/ GM Recruiter: CHA International Level: Top Management Salary Description: Attractive, with benefits Posted: 18/11/2012 Start date: As agreed Position is within a 4/5* internationally flagged hotel in Dubai- Jumeirah, complete renovation in 2011 with 250 deluxe rooms, 7 F&B outlets. Candidate will have European/ Western background and experience with 4/5* international hotel chains; rooms, sales & revenue background, also. A family Package is negotiable based on experience and background. Please send your CV to susanne@ cha-international.com. Please note only matching candidates will be contacted
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JOB WATCH Jobs supplied by:
CORPORATE DIRECTOR OF FINANCE Industry: Hotels, clubs and spas Department: finance and accounts Recruiter: CHA International Level: Corporate /Group Salary Description: Attractive, with benefits Posted: 18/11/2012 Start date: As agreed Corporate Director of Finance, based in Dubai required for a UAE based company with 9 international branded hotels. Min of 5 years experience in a corporate multi unit environment , cluster experience; solid career and a good track record of leadership skills within international hotel operators; attractive salary & package offered as per qualification Please send your updated CV to susanne@chainternational.com please note only candidates with matching profiles will be considered
LEGAL COUNSELOR Industry: Management Consultancy Department: Other Department Recruiter: CHA International Level: Corporate /Group Salary Description: Attractive, with benefits Posted: 18/11/2012 Start date: As agreed Legal Counselor based in Dubai required for a UAE based company with 9 international branded hotels. UAE Experience is a must. Attractive salary & package offered as per qualification. Please send your updated CV to susanne@cha-international.com please note only candidates with matching profile will be considered.
GROUP HR MANAGER Industry: Hotels, clubs and spas Department: Human Resources (HR) Recruiter: CHA International Level: Corporate /Groupa Salary Description: Attractive, with benefits Posted: 18/11/2012 Start date: As agreed Group HR Manager based in Dubai, required for a UAE based company with 9 international branded hotels with min of 5 years experience in a corporate multi unit environment ,
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GREAT WORK IS DONE BY PEOPLE WHO ARE NOT AFRAID TO BE GREAT, CHILEAN ENTREPRENEUR AND POLITICIAN, FERNANDO FLORES.
cluster experience; UAE or GCC Experience is a must; solid career and a good track record of leadership skills within international hotel operators. Please send your updated CV to susanne@cha-international.com please note only candidates with matching profiles will be considered
AIRPORT MANAGER, NEW YORK S Industry: Airlines, Travel Industry Department: General Management/ GM, Travel Management Recruiter: Etihad Airwayss Level: Department Head, Top Management Salary Description: Attractive, with benefits Posted: 18/11/2012 Start date: ASAP This position is based in the US. Successful candidate will manage the airport operation on a day-to-day basis ensuring that service delivery conforms to regulatory, operational, safety and customer service standards within a cost effective environment. Liaise with airport authorities, government agencies and third party service providers ensuring that Etihad Airways ground handling requirements and customer service standards are met at all times. Manage and lead the guest services team to achieve agreed business plan objectives. Requirements: Degree level education is preferred or relevant industry experience, with a demonstrable sound knowledge of airport operations and customer service preferably gained in 5-7 years working experience with an airline or ground handling agency ideally with 2-3 years management experience. Training & Knowledge: Strong written and verbal English language; Computer literate Function specific licenses for tasks performed, where required e.g. load control.
MANAGER CONTRACTS AND BUDGETS Industry: Airlines, Travel Industry Department: Finance and Accounts Recruiter: Etihad Airways Level: Corporate /Group, Department Head Salary Description: Attractive Posted: 14/11/2012 Start date: ASAP
DECEMBER 2012
Primarily responsible for managing the contracts, tenders, and budget processes for all of HR. The role includes assembling tender evaluations and supporting documentation, assisting or leading contract administration including negotiations with external suppliers and obtaining approvals within Etihad. They will be required to design and maintain a suite of tracking initiatives relevant to the HR division. Training requried in: Business Contract Law, Accounting, and Computer Science; Excellent written and verbal communication skills; High computer literacy; Strategic planning and project management skills; Excellent presentation skills.
DIRECTOR OF ROOMS – DUBAI 5* HOTEL Industry: Hotels, clubs and spas Department: Front Office/Rooms Division Recruiter: Confidential Level: Department Head, Top Management Salary Description: Attractive Posted: 16/11/2012 Start date: Not specified We are looking for Director of Rooms for a renowned international 5 star hotel opening in Dubai towards the end of 2012. Candidate should have similar experience in branded 5 star hotels in UAE/Middle East.
CLUSTER MANAGER – SPA OPERATIONS (DUBAI) FEMALE Industry: Hotels, clubs and spas Recruiter: The Nail Spa Department: Spa and Health Club Level: Corporate /Group, Department Head, Top Management Salary Description: Attractive Posted: 25/10/2012 Start date: ASAP Directly responsible for the day-to-day operations of multi locations (3-4 locations/ 150-200 staff) with supervision of all Spa managers or Spa in-charges. Highly proactive individual with strong work ethic who will aggressively strive to create positive (and measurable) impact with minimal supervision and direction.
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COMMENT
Investing in people It’s time the MENA region began to realise its true potential, says John Khan
I
could write a book on why this region has yet to realise its full potential as a true leader in hospitality and tourism. It has all the necessary fundamentals in place such as the right operators and the perfect environment.Yet the UAE, Qatar and Saudi Arabia still lag a long way behind Europe and Asia as destinations recognised as leading global hospitality markets. What I see as being the root of the problem is an endemic lack of motivation from the top and the knock-on effect of this on the workforce below. I’ve worked in recruitment for a long time, for companies such as Gordon Ramsay Holdings, so it’s fair to say that I understand the managerial recipe for success when it comes to hotels and restaurants. Although Gordon may be particular about the type of people he brings to his growing empire, once they are on board he allows them the space and scope to do what he hired them to do. Professional empowerment. All too often I come across senior managers that over the course of 18 months or so, have had every ounce of motivation, creativity and enterprise
64 / HOSPITALITY BUSINESS MIDDLE EAST
DECEMBER 2012
squeezed out of them by corporate bureaucracy and micro management. Leaving them demotivated, disengaged and desperately looking for an exit. This constant managerial churn has become fairly widely accepted as de rigueur by many of the big hospitality players, who seem to accept that two years of commitment from a manager is acceptable and almost expected. It boils down to empowerment. Allow the experienced, often expensive, top executive to come in and do what his track record proves he is good at. Or why hire him at all? There are three things desperately lacking from the corporate structure here that will offer instant pay back; a lack of trust, a lack of responsibility and a lack of support. Managers who have been entrusted to make simple, immediate business decisions without needing complicated and lengthy authorisations from the top will become the cornerstone of the brand, driving it forward with passion and direction. But they also need to be given enough responsibility to hire and fire at will - after all it is the role of the manager to ensure their department operates smoothly and profitably.
And then comes support. Support is not something that you can prove through speaking - it’s about actions. Show the company - and all its employees - that the manager has the full support of the organisation by implementing a chain of command culture so all staff matters are dealt with in the first instance by the manager. The concept of hiring - often at great expense - such experienced managerial level candidates, only to spend the next two years stifling their power and curbing their enthusiasm seems mindless at best. At worst, it’s damaging to a brand, financially unsustainable and enormously time-consuming. Bringing established talent from first world markets who offer the benefit of vast experience and know-how to the Middle East, is the easy bit. The real challenge comes in allowing those professionals to lead development and drive progress through trust. Only then can the region really begin to close in on the leading destinations as a world leader in hospitality John Khan is Reed Global’s head of Hospitality and Leisure for the Middle East region.
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Â&#x2021; SIMPLE INSTALLATION Â&#x2021; MINIMAL HEAD-END RACKSPACE Â&#x2021; RAPID CONTENT CREATION Â&#x2021; REMOTE SUPPORT
LG Smart Hospitality Solutions Information Generator PCS150R Modulator Embeded The PCS150R is a stand-alone Linux data server that manages and controls the Pro:Centric system, delivering unique digital content from the head-end to the hotelsâ&#x20AC;&#x2122; guest rooms via the RF distribution network. It supports a data carousel of applications and services and broadcasts these to Pro:Centric enabled TVs RYHU D SUHFRQË&#x2030;JXUHG FRPPXQLFDWLRQV FKDQQHO HQDEOLQJ JXHVWV WR VHOHFW FXVWRPL]HG FRQWHQW IRU LQ URRP viewing using the TV remote control, such as hotel amenities, daily weather, and the channel programming guide. The PCS150R can be used with both Free-To-Guest (FTG) and Pay-Per-View (PPV) head-end systems.
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