Hospitality Business ME | 2013 July

GLOBAL HOTEL INDEX: Asia Pacific 66.4% - Americas 59.4% - Europe 60.40% - Middle East and Africa 64.6% (Global Hotel Index, occupancy, April 2013)

Issue 15 • July 2013 • www.hospitalitybusinessme.com

gm profile

Kempinski GM, Alejandro Bernabe talks renovation plans before his departure for the Far East

News and analysis for the Middle East’s hospitality professionals

vp spotlight

Ritz-Carlton on linking guest knowledge and satisfaction

special feature

Switching to new lighting technologies

Roundtable

going global

Debating what will change the workplace in 2014, in part one of our HR special focus

also inside

Tenders, jobs and data

In 21 years Rotana has established itself as a leading Middle East brand, with 47 properties currently operating across the region. But, says executive vice president and COO Omer Kaddouri, the best is yet to come In association with...

Publication licensed by IMPZ

00 Cover July 2013.indd 1

7/2/13 1:00 PM

CONTENTS

16

36 24

32 16

18

24

32

36

44

BEFORE HIS DEPARTURE FOR THE FAR EAST, KEMPINSKI MALL OF THE EMIRATES GM ALEJANDRO BERNABE REVEALS RENOVATION AND F&B PLANS

ROTANA COO AND EXECUTIVE VP, OMER KADDOURI ON THE GROUP’S PLANS TO BRANCH OUT BEYOND THE MIDDLE EAST, WHILE STILL DRIVING GROWTH IN THE UAE.

PEOPLE MANAGEMENT IS KEY TO A SUCCESSFUL BUSINESS AND GROWTH. BUT HOW IS IT CHANGING AND WHAT WILL BE THE KEY DEMANDS TO EMERGE IN 2014?

RITZ-CARLTON GLOBAL OFFICER OF WORLDWIDE OPERATIONS, BOB KHARAZMI EXPLAINS WHY YOU CAN’T ACHIEVE LUXURY UNTIL YOU KNOW YOUR GUESTS

LIGHTING DEMANDS 22% OF ALL THE ELECTRICITY GENERATED IN THE MIDDLE EAST. HOW CAN HOTELS WORK TO REDUCE THIS AND WHAT WILL LIGHT THE FUTURE?

EVERYBODY CLAIMS TO BE ABLE TO PREDICT THE NEXT BIG THING. HERE THE EXPERT VIEW PROVIDES INSIGHT ON THE TRENDS THAT WILL CHANGE GUEST INTERACTION

GM PROFILE

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COVER STORY

ROUNDTABLE

VP SPOTLIGHT

SPECIAL FEATURE

JULY 2013

IN ROOM TECH

REGULARS 02 EDITOR’S COMMENT

04 NEWS 09 DATA 12 DTCM NEWS

42 PRODUCT WATCH

51 APPOINTMENT NEWS 52 JOBS 56 COLUMN

HOSPITALITY BUSINESS MIDDLE EAST / 1

COMMENT / EDITOR’S LETTER

Around the corner

I

s it too early to begin talking about 2014? It seems that would depend on who you ask.

Speaking to GMs, the key trends will be linked to pipelines and demand drivers. Speaking to the area executives, it’s all eyes abroad.

But speaking to the HR specialists garners quite a different response.

Their key market changers won’t be the competition or the economy.

Salaries could become problematic as the economy recovers, but that’s another issue in itself.

No, next year is already set to be far more intricate than any of these factors would suggest.

The word is already in people’s minds, but not necessarily on their lips, and therein lies the problem.

It has recently been publically discussed by UAE President Sheikh Khalifa and has already been covered in the pages of this magazine. The key game changer next year, will be nationalisation.

Re-drawing the boundaries and dynamics of business, the experts say this isn’t about tempting young Emiratis into the private sector.

Instead it’s about readying the private sector for their arrival.

Hospitality Business Middle East official media partner

28 - 30 September 2013

It turns on its head every previous concern about integration, training and salary structures and it puts the proverbial ball firmly back in the court of the employer.

What does it mean to prepare a business to integrate the youth of its host country? How can this be measured? And what will be the price if these theories – as intangible as they are – are not achieved?

For the (suggested) answers, turn to page 24. But do be warned, they are not black and white. Instilling a change in culture within existing businesses – and the concept of ‘existing’ in the hospitality industry often means decades old and multinational in structure – is no mean feat. This is an issue that, as much as revenue, headcounts, and market demands do, will dictate growth and will have to be considered in expansion plans.

The final echoes of the conversation were ones of “act now to make tomorrow easier”. If you don’t believe it, consider the current situation, deadlines hanging overhead, that businesses in Saudi Arabia currently face.

Next month the people management theme continues with an in-depth discussion on Gen Y; how they are changing the work place, and where, as a result, the power now lies.

It’s food for thought for us all.

MELANIE MINGAS EDITOR

PUBLISHER: Dominic De Sousa GROUP COO: Nadeem Hood ASSOCIATE PUBLISHERS Alex Bendiouis Dave Reeder EDITORIAL Editorial Director: Dave Reeder dave.reeder@cpimediagroup.com +971 55 105 3773 Editor: Melanie Mingas melanie.mingas@cpimediagroup.com +971 56 758 7834 Photography: Anas Cherur ADVERTISING Alex Bendiouis alex.bendiouis@cpimediagroup.com +971 50 458 9204 Ankit Shukla Sales Director ankit.shukla@cpimediagroup.com +971 55 2572807 Vass Mafilas Sales Manager vass.mafilas@cpimediagroup.com +971 55 8870720 DESIGN AND PRODUCTION Art Editor: Christopher Howlett chris.howlett@cpimediagroup.com Production Manager: Devaprakash devaprakash@cpimediagroup.com MARKETING & DISTRIBUTION Rochelle Almeida rochelle.almeida@cpimediagroup.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.

2 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

GLION 100% ONLINE HOSPITALITY MBA

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Ranked number 2* among all international hospitality management schools in the world for an international career, Glion’s 100% online programs are dedicated to developing executive talent for the global hospitality and wider services industry. As a market leader in hospitality management education and with close ties to the industry, Glion delivers tailor-made online programs for corporate partners and individuals. Contact us for more information.

ÄŠÇŠ ÇŠ ÇŠ#(ÇŠ (. ,( .#)( &ÇŠ )-*#. &#.3ÇŠ ( ÇŠ ,0# ÇŠ ( /-.,# -ÇŠ ( ! ' (. ÄŠÇŠ )-.!, / . ÇŠ ,)!, '-ÇŠ ÄŠÇŠ ,) --#)( &ÇŠ 0 &)*' (.ÇŠ ,)!, '-

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*Statistically, three institutes occupy this ranking position (TNS Global Survey, September 2010).

NEWS WATCH

86%

OF GLION STUDENTS OFFERED JOBS BY INTERNATIONAL BRANDS

MENA Renaissance Hotel’s Cairo launch NEWS Renaissance Hotels has announced the meeting rooms, a 1100sqm events manager of the hotel. “With its sleek opening of its new Renaissance Cairo Mirage City Hotel, the first Renaissance Hotel in the Egyptian capital. Minutes away from Cairo Airport, the 333room hotel and suites offers seven

space, including ballroom and a range of F&B offerings.

“We are thrilled to introduce the Renaissance Hotels brand to Cairo,” said Magdy Naguib, general

design and signature Renaissance Hotels programming including NAVIGATOR and RLife LIVE, we are confident the hotel will be a popular destination for guests and locals alike.”

The 333 room Renaissance Cairo Mirage City Hotel is located close to Cairo Airport.

“Use online to boost profits” The independent unbranded hotel market needs to increase its proactivity online in order to maximise profits, according to leading online and digital experts.

Discussing the impact of online marketing and OTAs (online travel agents) as business leads at a forum organised by HSMAI, representatives from Google, Facebook, Jumeirah Group, GTA and Sabre Hospitality urged independent hoteliers to realise the reach and potential of social media and web bookings in order to increase direct bookings,

4 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

especially from repeat business.

“OTAs are buying the key words of the hotels in order to attract the business without any proactivity from the hotels to take charge of their own sales and invest in the people to direct that area of the business,” said Alexander Barder, regional director of business development, MEA, Sabre Hospitality. He added: “Another key area is the user experience of a hotel’s website. You have to give site users the same experience on your hotel website as they would get on Expedia, etc. The websites of independent hotels need to

be quality, responsive platforms that allow users to actually make a booking on various tablet and mobile devices.”

Added Walid Driss, Facebook MENA: “The OTA brings you new customers and its then up to the hotel to maintain communication with those customers. If an OTA is taking repeat bookings from the same guest, something has gone wrong.

“If businesses want to go direct Facebook gives almost instant success.

If you do it right, you can reach your guests directly, communicate with them after check out and before check in and provide them a direct link to book, without going through the OTA,” Driss continued to advise.

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NEWS WATCH

250,000 Aparthotel to launch in ME Accor is to launch its new Aparthotel brand to the Middle East with a scheduled Q3 2013 opening in Abu Dhabi, the first of 10 properties.

The 279 apartment Adagio Abu Dhabi Al Bustan will be closely followed by two more properties over the coming 18 months, with a total planned inventory of 10 properties

across the region’s key cities within three years.

Currently, five of these properties will be under construction or fully operational by 2013 end, says Accor and plans to bring Aparthotel to Riyadh, Jeddah, Doha, Makkah, Dammam and Al Khobar are already in the “advanced discussions” stage.

REGISTERED USERS OF HOZPITALITY.COM

Hozpitality hits the silver screen Hospitality employment and networking portal, Hozpitality.com, has launched its own dedicated hospitality TV channel.

Already confirmed to feature are Jumeirah Creekside Hotel, Premiere Inn Hotels, Ramada Ajman and Beach Hotel, Citymax and Jebel Ali, the channel will also be present to capture all the action at The Hotel Show, September 28 – 30.

Hozpitality founder and director, Raj Bhatt, has called the new platform an essential extension of the existing website, which currently reports 250,000 registered users.

From its headquarters in Dubai, in addition to listing hospitality and hotel jobs in Middle East to the Americas, the website also provides an effective platform for hospitality community networking and brand advertising for top hospitality companies and suppliers.

Hozpitality.com is a subsidiary of VR Online Portal.

Hoteliers wishing to contact the channel for more information can email: email@hozpitality.com

Adagio Abu Dhabi Al Bustan will open in Q3, 2013.

“Building as we grow” Rotana executive VP and COO, Omer Kaddouri, has announced details of the group’s extensive expansion plans to Hospitality Business Middle East.

Explaining how the company will steer a 100% portfolio increase, Kaddouri said: “We are building that as we grow. As we develop the company, we are also developing and enhancing our corporate platform to make sure we can reach out and accomplish everything we need to do well, as if we only had 10 or 15 hotels.”

The plans will see 10 new properties added to the Rotana

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portfolio by mid-2014, with another 10 added the following year, until the portfolio has been doubled within five years. There are also plans to open representative offices on new continents and Europe has not been ruled out for hotel projects.

Speaking of his plans for the company next decade, Kaddouri added: “By that point we will have reached a whole new dynamic that will keep us very busy.”

Turn to page 18 for the full story and interview.

JULY 2013

HOSPITALITY BUSINESS MIDDLE EAST / 5

NEWS WATCH

$196.06 MENA NEWS

TRIPINDEX COST EVENING OUT AND AN OVERNIGHT STAY IN SOFIA, BULGARIA, THE LEAST EXPENSIVE DESTINATION

Second Sir Bani Yas resort opens

NEWS IN BRIEF 86% OF GRADUATES OFFERED JOBS Glion Institute of Higher Education has revealed that 86% of its graduating class this year received one or more job offers before their diplomas were granted, and 100% of its job seeking students were offered positions.

According to other data released by the school, 13.6% of graduates in the management programme – selected as a line of study by 48% of Glion’s total student body – hold positions in sales or marketing, while 11.4% choose the rooms division. Other graduates are currently working in the restaurant business or in the areas of human resources, finance, or events management.

Mandarin Oriental, Starwood, InterContinental, Four Seasons, Hilton, Marriott and Hyatt were among the hiring chains.

Anantara has announced the opening of its 23rd property worldwide, Anantara Al Yamm Villa Resort, Sir Bani Yas Island, Abu Dhabi. It is the island’s second resort after the opening of Desert Islands. The luxury beach villa complex comprises 30 luxury, beachfront villas; 21, 1-bedroom villas overlooking the Arabian Sea; and seven, 1-bedroom villas and two 2-bedroom villas

overlooking the salt water lagoon.

The resort has been designed to offer an alternative stay experience complementing the existing Desert Islands Resort & Spa by Anantara.

This opening is the first of two new developments to be planned for the expansion of the island, with Anantara Al Sahel Villa Resort slated to open 2013 end.

OBEROI OPENS IN DOWNTOWN Hotel operators and airport catering firm The Oberoi Group, have announced the opening of their first UAE property, Oberoi Dubai, adding to a portfolio of 30, 5-star hotels.

The Oberoi, Dubai, is located at The Oberoi Centre, overlooking Burj Khalifa – a view maximised by floor to ceiling windows in each of the 252 rooms and suites. The hotel has four restaurants.

TITANIC CLOSE CONFIRMED Meliá Dubai has closed its signature Marco Pierre White restaurant Titanic and will reveal plans for its replacement over the summer.

Calling the close a “mutual decision”, a statement from Enrique Ortiz, VP of operations EMEA, hotel division, Meliá Hotels International read: “We were pleased to launch our first hotel in the GCC with a signature restaurant from such a recognised name in the industry and Marco Pierre White brought a great depth of knowledge with him. However, one year on... It is time to take a different path. We wish Marco all the best.”

6 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

Anantara Al Yamm Villa Resort is the group’s second resort on Sir Baniyas Island.

Hoteliers demand approved green suppliers Hoteliers have demanded a list of approved suppliers to help them source truly sustainable materials and appliances to meet green targets and certifications.

Speaking at the launch of Emirates Green Building Council (EGBC) Green Key initiative, a hospitality sector focussed programme with the purpose of diversifying EGBC’s capacity, a panel discussion chaired

by Hospitality Business magazine editor, Melanie Mingas, concluded that approved suppliers would make the sourcing of genuinely sustainable products easier.

Speaking with reference to the Masdar Future Build programme, which has an approved supplier list for building supplies in the Emirate of Abu Dhabi, Sebastian Weyer, director of engineering, Westin Abu Dhabi,

commented: “The Masdar Future Build list of approved suppliers has helped us a lot and what we ask is to see the Future Build certificate in order to use that as the benchmark to help us source sustainable goods.”

Starwood’s Westin brand was one of the first to introduce energy monitoring to its properties in 2002 and has been accredited for 11 years.

Weyer was joined on the panel

by Fathuma Hamziya, HR manager and regional ‘responsible business’ coordinator for Radisson; and Vinesh Hurrychurn, director of engineering, MENA, for Hilton.

Adding that the will of owners to invest in sustainable building systems is also key to greening the UAE’s hotel stock, the panel reported that many discussions currently are based on price, rather than a sense of responsibility.

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NEWS WATCH

th

200 GLOBAL NEWS

HOTEL OF IHG HAS JUST OPENED IN CHINA

IHG opens 200th China hotel InterContinental Shanghai Ruijin has opened in China, marking IHG’s 200th property in the country.

The first international hospitality company to enter the now lucrative market, IHG is now the largest international operator in China, with 170 hotels in the pipeline.

According to the forecasts by the World Tourism Organisation, the Chinese hotel room market will overtake that of the US, which is currently the largest in the world, by 2025. By 2039 China’s will be twice the size of the US’s. In light of the rapidly growing market, IHG will continue its commitment to China.

Over the next 20 years, IHG plans to increase by almost eightfold, the number of hotel rooms it has in Greater China, which equates to about 360,000 rooms and an additional 300,000 new jobs.

A premier room at the InterContinental Shanghai Ruijin.

Hyatt Regency for Uzbekistan A Hyatt affiliate has entered into a management agreement with State Unitary Enterprise (Poytaht Qurilish va Xizmat) for a Hyatt Regency hotel in Tashkent, Uzbekistan The new property will join other Hyatt outlets at Yekaterinburg, Kiev, Baku, Bishkek, and Dushanbe, making it the 6th CIS property for the chain.

Globally, it makes Hyatt’s pipeline the largest it has ever been.

“We are delighted by the plans for the first Hyatt-branded hotel in Uzbekistan,” said Peter Norman, senior vice president, real estate and development, EAME for Hyatt Hotels and Resorts.

“The CIS is establishing itself as both an international business hub and an attractive tourist destination, and we believe the Hyatt Regency brand and the enviable cosmopolitan

8 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

location will attract international travellers visiting Tashkent. This announcement demonstrates our commitment to growing our brand presence in new markets.”

Prominently located next to the National Library on the city’s main street, Hyatt Regency Tashkent will offer 300 guest rooms, including 44 suites, two restaurants, a bar and lounge, more than 1,200 square meters of meeting facilities including a ballroom, and a spa and fitness club.

The hotel will be designed to become the preferred venue for the international conferences and festivals for which Tashkent has long become a popular destination.

The property is so far scheduled to open in January 2015, and no further hotels are in the pipeline for Hyatt in Uzbekistan.

Wyndham Super 8 in Turkey expansion Wyndham Hotel Group, the world’s largest hotel group, is to launch its fourth brand in Turkey since 2007, with the opening of 20 Super 8 hotels, taking the total number of Wyndham brands in Turkey to four.

Meeting mid-range market needs the launch comes only six months since the introduction of Wyndham’s upscale brands Wyndham Hotels and Resorts and TRYP by Wyndham.

No retraction of the plans have been stated in light of the ongoing political unrest in the country.

“To now launch our Super 8 brand is extremely exciting as it truly enables us to offer a solution to each and every guest in the market, regardless of budget or travel purpose,” said Eric Danziger, Wyndham Hotel Group president and chief executive officer.

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KEY FIGURES

-1.3% OCCUPANCY

-2.5%

-3.8%

ADR

DATA WATCH

REVPAR

Special focus: Asia Pacific hotel results for May 2013 Data by STR Global shows the Asia Pacific region experienced three decreases in performance in May

H

otels in the Asia/Pacific region experienced decreases in the three key performance metrics in May 2013 when reported in U.S. dollars, according to data compiled by STR Global.

In May, the Asia/Pacific region’s occupancy ended the month with a 1.3-% decrease to 65.9 %, its average daily rate dropped 2.5 % to US$119.69 and its revenue per available room was down 3.8 % to US$78.82. “In U.S. dollars, Asia/Pacific was the only global region to report negative RevPAR growth year-to-date 2013, falling 3.1 %�, said Elizabeth Winkle, managing director of STR Global. “The RevPAR decrease was mainly driven by Central/South Asia, where countries such as India are suffering from oversupply, and in Northeastern Asia, where countries such as China are reigning in spending. However, Southeast Asia is reporting strong growth, where markets such as Jakarta are posting an 18.2 % growth in ADR year-to-date 2013; ADR growth is driving RevPAR performance in this region�

Highlights from key market performers for May in local currency (year-over-year comparisons): t 5PLZP +BQBO SPTF JO

t 5ISFF NBSLFUT experienced doubledigit ADR increases: Taipei (+14.9 % to US$207.96); "VDLMBOE /FX Zealand (+12.3 % to US$112.49); and +BLBSUB UP US$107.43). t 5PLZP GFMM JO "%3 UP 64 reporting the largest decrease in that metric.

occupancy to 85.4 %, reporting the largest increase in that metric. t 5BJQFJ 5BJXBO UP TWD6,248.09), and Jakarta, *OEPOFTJB UP IDR1,056,378.88), achieved the largest ADR increases in May. t ćSFF NBSLFUT FYQFSJFODFE double-digit RevPAR increases: 5PLZP UP +1:

+BLBSUB UP *%3

BOE 0TBLB +BQBO UP +1:

t 4FPVM 4PVUI ,PSFB SFQPSUFE UIF largest decrease in all three key performance metrics. The market’s occupancy fell 12.9 % to 74.0 %, its ADR was down 9.2 % to ,38 BOE JUT 3FW1"3 EFDSFBTFE UP ,38

PERFORMANCES OF KEY COUNTRIES IN MAY 2013 (ALL MONETARY UNITS IN LOCAL CURRENCY): Country

Occupancy

% change

ADR

% change

RevPAR

% change

Australia

69.8%

-2.0%

AUD171.79

+0.1%

AUD119.86

-1.9%

China

63.0%

-3.2%

$/:

-3.9%

CNY376.34

-7.0%

India

+2.0%

*/3

-3.3%

*/3

-1.4%

Singapore

81.6%

-0.3%

4(%

+0.4%

SGD238.30

0.0%

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HIGHLIGHTS FROM KEY MARKET PERFORMERS FOR MAY IN U.S. DOLLARS (YEAR-OVER-YEAR COMPARISONS):

JULY 2013

t "VDLMBOE FYQFrienced the only double-digit RevPAR JODSFBTF SJTJOH % to US$82.23. t 4FPVM GFMM % in RevPAR UP 64 reporting the largest decrease in that NFUSJD GPMMPXFE CZ 0TBLB to US$92.36) and 5PLZP UP US$133.22

HOSPITALITY BUSINESS MIDDLE EAST / 9

DATA WATCH

78.82

71.48

"4*" 1"$*'*$ 3FW1"3 2013 YTD AVDERAGE

98.30

".&3*$"4 3FW1"3 2013 YTD AVDERAGE

&6301& 3FW1"3 2013 YTD AVDERAGE

95.50 .*%%-& &"45 3FW1"3 2013 YTD AVDERAGE

Data watch Global hotel data review for May 2013 from STR Global MAY 2013 VS MAY 2012 KEY FIGURES

ASIA PACIFIC

-2.5%

OCC%

YOY AVERAGE ADR FLUCTUATION

ADR

REVPAR

PERCENTAGE CHANGE

2013

2012

2013

2012

OCC

ADR

REVPAR

66.7

119.69

122.77

-1.3

-3.8

78.82 81.90 2013

2012

AMERICAS

1.2%

YOY AVERAGE OCC FLUCTUATION

OCC%

ADR

REVPAR

PERCENTAGE CHANGE

2013

2012

2013

2012

OCC

ADR

REVPAR

64.0

63.3

111.69

107.94

1.2

4.7

71.48 68.28 2013

2012

EUROPE

5%

YOY AVERAGE REVPAR FLUCTUATION

OCC%

ADR

REVPAR

PERCENTAGE CHANGE

2013

2012

2013

2012

OCC

ADR

REVPAR

72.0

70.2

136.49

133.34

2.6

2.4

98.30 93.62 2013

2012

MIDDLE EAST/AFRICA

$152.29 CURRENT AVERAGE ADR

REVPAR

OCC%

ADR

PERCENTAGE CHANGE

2013

2012

2013

2012

OCC

ADR

REVPAR

62.7

60.2

144.41

4.1

9.8

10 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

95.50 86.97 2013

2012

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31.1%

3.2%

RevPAR % CHANGE TO .": &(:15

8.5%

RevPAR % CHANGE TO .": ,4"

16.9%

RevPAR % CHANGE TO .": 4 "'3*$"

DATA WATCH

RevPAR % CHANGE TO .": 6"&

Middle East/Africa May results The Middle East/Africa region reported positive performance results during May 2013 XIFO SFQPSUFE JO 6 4 EPMMBST BDDPSEJOH UP EBUB DPNQJMFE CZ 453 (MPCBM

T

he region reported a 4.1% increase in occupancy to 62.7%, a 5.5% increase in average daily rate to US$152.29 and a 9.8% increase in revenue per available room to US$95.50 for May 2013. “With the exception of Southern Africa, the Middle East/Africa region is posting the highest RevPAR growth in U.S. dollar terms among the four

major global regions�, said Elizabeth Winkle, managing director of STR Global. “Morocco, one of the few countries to avoid the Arab Spring, is currently reporting the highest demand growth year-to-date 2013 of .BZ :5% EBUB GPS .PSPDDP shows a notable increase in occupancy

BOE PWFSBMM 3FW1"3 CVU B EFDSFBTF JO "%3 w

Highlights

KEY FIGURES

)JHIMJHIUT BNPOH UIF SFHJPO T LFZ NBSLFUT for May 2013 include (year-over-year DPNQBSJTPOT BMM DVSSFODZ JO 6 4 EPMMBST

53%

t .VTDBU 0NBO SFQPSUFE UIF MBSHFTU PDDVQBODZ JODSFBTF SJTJOH UP GPMMPXFE CZ %PIB 2BUBS UP

BOE "CV %IBCJ 6OJUFE "SBC &NJSBUFT (+12.4 % to 64.7 %). t +FEEBI 4BVEJ "SBCJB UP 64 BOE %VCBJ 6OJUFE "SBC &NJSBUFT UP 64

experienced the largest ADR increases. t 'PVS NBSLFUT BDIJFWFE EPVCMF EJHJU 3FW1"3 JODSFBTFT .VTDBU UP 64

Dubai (+18.8 % to US$173.09); Jeddah (+17.2 % to US$206.62); and Abu Dhabi

Country

Occupancy

% change

ADR

% change

RevPAR

Egypt

EGP480.19

24.9%

&(1

31.1%

64.8%

-4.8%

4"3

+8.3%

SAR431.33

+3.2%

South Africa

+0.8%

ZAR918.18

+7.6%

;"3

United Arab Emirates

+7.4%

AED693.30

+8.9%

"&%

+16.9%

100 80 60 40 20 0

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AMERICAS

AVERAGE 0$$61"/$: 4"6%* ARABIA MAY 2013

58.1% AVERAGE 0$$61"/$: 4065) AFRICA MAY 2013

YTD May 2013 % Change

120

ASIA PACIFIC

64.8%

% change

Saudi Arabia

YTD May 2013 Rev PAR

AVERAGE 0$$61"/$: &(:15 MAY 2013

EUROPE

MENA

8 7 6 5 4 3 2 1 0 -1 -2 -3

OCC ADR REVPAR

75.1%

ASIA PACIFIC MENA

AMERICAS EUROPE

JULY 2013

AVERAGE 0$$61"/$: 6"& .": 2013

HOSPITALITY BUSINESS MIDDLE EAST / 11

DTCM NEWS

IN FIGURES

315,000 GERMAN VISITORS ARRIVED IN DUBAI IN 2012

14%

INCREASE YOY IN GERMAN VISITORS FROM 2011

68,000 GERMAN CRUISE VISITORS DOCKED IN DUBAI IN 2012

‘Summer is Dubai’, is a three month campaign promoting the festivals and celebrations that are central to Dubai‘s summer season.

German Travel Agents learn why ‘Summer is Dubai’ DTCM and a range of partners from across the city’s tourism industry played tour guide to 100 German travel agents, demonstrating why Dubai is the perfect summer destination, during a four day ‘mega’ familarisation trip, June 7 – 10.

Organised to promote Dubai’s destination credentials to key travel agents and tour operators from the most important source market in Central Europe for Dubai, the itinerary highlighted Dubai as a perfect destination for a multitude of travellers including families, thrill seekers, couples, shopaholics, food

12 / HOSPITALITY BUSINESS MIDDLE EAST

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lovers, and culture enthusiasts. The guests had the opportunity to see Dubai from Burj Khalifa’s ‘At the Top’; to shop at ‘Dubai Mall’; to enjoy winter at ‘Ski Dubai’; and to explore the water world of ‘Aquaventure’ at Atlantis, The Palm.

During a workshop - held at Atlantis, The Palm - representatives from DTCM and key partners from Dubai’s hotel and tourism industry provided detailed information and updates on Dubai through a number of talks and presentations. This included a briefing on ‘Summer is Dubai’, the three month campaign

which is currently attracting visitors to the Emirate through a series of festivals, special occasions and celebrations that are central to Dubai’s summer season.

Saleh Mohamed Al Geziry, director of overseas promotions and inward missions for DTCM commented: “Throughout the year, through our network of 19 overseas offices DTCM organises familiarisation trips with major tour operators from various global markets in order to further understanding of Dubai’s wide and substantial tourism offering. The famtrips are an effective way of building

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DTCM NEWS

relationships with key influencers in the industry and increasing their knowledge of and affection for the Emirate. Germany is one of our key source markets and this fam-trip focused on educating German travel agents on Dubai’s new attractions and, in particular, its appeal as a summer destination.”

The agents were chosen from the readership of the leading German travel trade publication TRAVEL ONE, following a competition organised by DTCM’s Germany office, in the magazine. Saleh Mohamed Al Geziry continued: “The demand from travel agents across Germany to be part of this familiarisation trip was very high, indicating the continuing interest in Dubai from the country.

Their feedback during the trip was very positive, with many commenting that it had transformed their view of Dubai as a summer destination.

Feedback from our partners who helped us to stage the event and took part in the presentations was also very positive, with them forecasting many upcoming deals with the agents.”

With The Address Hotels and Resorts and JA Resorts and Hotels supporting the famtrip, agents enjoyed their stay at world class luxury hotels including Ocean View Hotel and Oasis Beach Tower by JA Resorts and Hotels and The Address Downtown Residence, The Address Dubai Mall Residence, Armani Hotel and Al Manzil Hotel by The Address Hotels and Resorts.

Lunches and dinners at The Address Hotels & Resorts, Jebel Ali Beach Hotel, Atlantis, The Palm and Rixos The Palm helped to showcase the Emirate’s diverse culinary scene and as the destination management company for the event, Gulf Ventures, provided logistical support.

This mega familiarisation trip came soon after last month’s famil-trip when DTCM and Emirates hosted 280 travel agents from Australia, New Zealand and Spain.

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What the participants said Doris Schmitzberger, owner of Reisen-Schmitzberger “I have visited Dubai four times, most recently two years ago. Despite the short period of time, I have witnessed a huge change in the city’s infrastructure and monuments, and it is a miracle to see so many new hotels and attractions added during these two years.”

Frank Bokenkroger, owner of Aster Reise Service “This was my second visit to Dubai, my first being 15 years ago and I have been astonished to witness such a huge difference with amazing attractions such as Burj Khalifa, Dubai Mall and Atlantis - a difference you can’t find in any other city in the world.”

Steffi Breternitz, senior project manager at BCD Travel Groups in Frankfurt “I was truly amazed at the changes in infrastructure and new landmarks Dubai has

added in the past five years. Dubai is one of the most sought-after and fastest growing destinations worldwide, attracting a large segment of vistors over the past few years and MICE tourism has gained momentum worldwide and more. People in Dubai always have smiles on their faces no matter which nation, culture or religion they are from and this is something unusual, not found elsewhere in the world.

Marco Greiner from Novo Tours “This is my first visit to the city and when it comes to shopping malls, Dubai is a leading shopping and lifestyle destination.

The collection of luxury hotels, the Dubai Metro, The Palm, and Burj Khalifa are unbelievable. This visit was the best trip I have been on and I will certainly promote Dubai once I am back in Germany and persuade German tourists to visit Dubai during summer.”

Conrad Dubai granted 5-stars DTCM has granted a 5-star rating to Conrad Hotel Dubai. The rating field tour was attended by Majid Al Marri, director of classification, and Atef Najib, director general and private property manager, DTCM, staff from the Classification sector, and hotel management.

Majid Al Marri, director of classification at DTCM commented: “Conrad Hotel Dubai is a new addition to the hotel industry in Dubai. We have conducted a number of field visits earlier to ensure the hotel complies with all the listing and classification procedures”.

Al Marri added that the hotel offers variety of facilities and remarkable restaurants for its distinguished guest with worldwide inspired cuisine and sophisticated surroundings.

The hotel enjoys great location

The teams from DTCM and Conrad at the property. in the heart of Dubai’s commercial, business and entertainment district in Sheikh Zayed Road adding a further 555 rooms that will make a thriving addition to the community.

At the end of the visit, Mr. Atef Najib, director general and private property manager, and management of the enterprise thanked the Department of Tourism for their efforts in supporting tourism in the Emirate.

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HOSPITALITY BUSINESS MIDDLE EAST / 13

Providing mobility Shafayat Miah, director of digital development at Jumeirah Emirates Towers, shares his tech tips

Industrybased trade shows such as The Hotel Show also play a part in bringing the latest and greatest technology to our shores.

H

as the demand for technology from Jumeirah customers grown in recent years? If so, how?

an absolute necessity as a core basic requirement.

We are certainly seeing our guests come in with more of their own technology and more connected devices than ever before. Whether it’s a guest’s own laptop, tablet or smartphone, each device requires connectivity to the Internet, and this places significant pressures on network infrastructure and bandwidth. Therefore, adequate wireless Internet capability is an absolute bare minimum. Guests are also keen to try out many of the new technologies that we have implemented, such as iPads in our hotel rooms, the latest Interactive TV systems, or innovative ways to interact with and control the room.

Have you found that new technological demands have affected room rates?

Are there any minimum standards or basic requirements for technology for hotels across the UAE and GCC? I would certainly say so. At Jumeirah, we maintain a set of IT Brand Standards that are regularly updated to incorporate advancements in technology. Our Brand Standards specify minimum requirements for different types of technology within our product set all across the globe.

If an exception to the standard is required due to a region or hotelbased requirement or restriction, this is handled on a case-by-case basis.

Providing mobility is the key, as nearly all guests will have at least one or multiple mobile devices, which of course require connectivity. So from a guest-facing perspective, fast, reliable and comprehensive WiFi internet service is an absolute must. Internally from an operations side, a robust Property Management System and Point of Sale system is

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Our room rates reflect the quality of our entire product, and are based on a number of factors including the configuration of a room or suite, the in-room experience, the facilities available at the property, the location of the property and general market conditions. Technology is just one part of this.

Do you think the UAE is as up to date with technology as the rest of the world?

We are fortunate in that the hotels in the UAE are relatively young, and as such have been able to implement not only the latest, but also best in class technology. We also have a population that is quite tech-savvy and comfortable in being early-adopters.

And of course, industry-based trade shows such as The Hotel Show also play a part in bringing the latest and greatest technology to our shores.

Why is technology so important in Jumeirah Hotels?

Technology plays a part in every

single aspect of a guest’s journey.

From dreaming about staying with us, to researching one of our properties online, to booking their stay through Jumeirah.com, to experiencing our in-room and onproperty technology, and finally to sharing their experiences through social media; there isn’t a component that technology doesn’t touch. But more than anything, technology helps deliver the service levels that Jumeirah is renowned for, especially in all of the infrastructure and enterprise solutions that the guest does not necessarily see.

In essence, technology is yet another way for us to achieve our ‘Stay Different’ brand promise. One way we aim to go the extra mile is by providing extra services such as free WiFi in all of our vehicles and our ‘virtual concierge’ app which is even available on 24 karat gold iPads in every suite at Burj Al Arab.

How do you feel the technology sector will benefit from The Hotel Show in 2013?

The Hotel Show is fantastic in that it allows us to solidify relationships with our existing partners, but also to see advancements in technology from other exhibitors with whom we may not already have a relationship with. More than anything, it helps us keep our fingers on the pulse of the industry.

From an exhibitor perspective, where better to present your latest technology than here in Dubai, where you have some of the biggest players in hospitality on your doorstep.

Shafayat Miah, Director of Digital Development, Jumeirah Group.

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GM PROFILE

Reporting a 20% rise in GOP and 15% increase in RevPar this year, despite being in the midst of an extensive, multi-million dollar refurbishment project, Kempinski Mall of The Emirates is going from strength to strength, says outgoing GM Alejandro Bernabe

I

t would be fair to assume that of Kempinski’s entire Middle East portfolio, its seven-year-old Mall of The Emirates property wouldn’t be the focus of attention this month. But in spite of the imminent opening of Kempinski The Palm, and a select number of new projects in the pipeline, the 48,000sqm hotel adjoined to one of Dubai’s premier shopping destinations, is going from strength to strength.

Building on the success of a spectacular lobby re-design, by 2013 end the hotel will have doubled its fine dining offerings from two to four outlets, with the introduction of an authentic tapas lounge and the extension of a family restaurant with shisha lounge on the rooftop terrace.

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Probably, we are the most fortunate hoteliers right now, in the world

JULY 2013

A new concept for the all-day dining outlet is still to be finalised. In January 2014, the 18 month room renovation project will commence to update the three key elements of bathroom, technology and ambience.

“In terms of results, 2012 was fantastic and we thought 2013 would be difficult because of the ongoing work to the hotel, but so far we have seen a 20% increase in GOP and 16% increase in RevPar in the first quarter.

The rest of the year is looking strong,” says GM Alejandro Bernabe, who last month announced he is to relocate to Siam Kempinski Hotel, Bangkok.

The overhaul won’t just be aesthetic, in 2012 Kempinski made a companywide decision not to outsource its F&B, instead presenting owners

with a full service, speciality hotel management package. The model will be implemented across all four of Kempinski Mall of The Emirates’ outlets, bringing a fine dining option to the Barsha clientele, currently only served by casual dining throughout the neighbourhood and mall.

“We want to establish our own restaurants and this fits very much with the vision of our owners and the niche we believe there is to be filled here,” Bernabe explains.

“Imagine you are an owner and you hire a management company to operate for you but they say they can manage the hotel, but the outlets are then managed by subcontracted parties. It’s not the right approach.

We want to tell our owners that we are experts in hospitality, we have the F&B knowhow, and we believe F&B can make money to elevate the value of the property,” he reasons, continuing to reveal details of the tapas lounge, which, with a 90 person capacity will aim for 150 – 200 covers nightly, while targeting the local business market for an express, speciality lunch option.

“The designers are from Barcelona, the chef, manager and music will all be

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STORES IN MALL OF THE EMRIATES Spanish, but it will not be kitsch, with bullfighters and flags. It’s something aligned to current fine dining options in Barcelona and Madrid.”

With the project ongoing, the budget falls between $68m to $81m, an amount testament to the importance owners Majid Al Futtaim place on the property.

Trend watch At World Travel Market 2012, mall hotels were hotly tipped for success and it would be easy to match that prediction with Kempinski’s success, concluding the two are linked – especially when considering that this mall records an annual footfall of 36million and has only two hotels adjoined. But as Bernabe explains things aren’t so simple.

“Hotels attached to malls are not automatically a recipe for success, you have to look at more components. You have some mall hotels where both the mall and the hotel are not doing well. To be really successful you have to look at which brands are best to pair up, along with the location, and if you get those things together you can be very successful.

“Moving forward, I think Dubai will begin to see some boutique hotels, possibly with an Arabic theme because so far this is non-existent, and there will be more big complexes, like the new Habtoor complex on Sheikh Zayed Road. We will go in both extremes I think,” he continues, hinting that the opening of specific luxury, Kempinski residences on The Palm Jumeirah – the third such property in the region after Doha and Jeddah – could be another growth area.

“You don’t see many residences managed by luxury companies, so there is potential there, for branded, upscale residences.”

For now the focus is clear, introduce new GM Konstantin Zeuke to the property, launch the new F&B concepts and begin work on 393 guest rooms. For Kempinski, Bernabe insists the plan is not about rapid growth.

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2006

YEARS IN THE MIDDLE EAST

OPENED

48,000

SQM PROPERTY

GM PROFILE

4

F&B OUTLETS TO BE OPERATING BY 2013 END

393 ROOMS

KONSTANTIN ZEUKE, NEWLY APPOINTED GM, KEMPINSKI MALL OF THE EMIRATES Konstantin Zeuke takes over from Alejandro Bernabe who is joining the Siam Kempinski Hotel in Bangkok as GM. Zeuke joined Kempinski in 1998 as Assistant Front Office Manager at the Kempinski Vier Jahrezeiten in Munich, Germany.

Prior to moving to Slovakia in November 2007, Konstantin held his first position as GM and successfully opened the Kempinski Hotel Grand Arena Bansko, which became the first Leading Hotel of the World in Bulgaria.

In 2009 he was in charge of opening the first luxury five star hotel in Slovakia, and in June 2010 he successfully opened yet another Kempinski hotel in the capital of the Slovak republic, the Kempinski Hotel River Park Bratislava.

Designs have progressed substantially from the initial concepts, pictured above.

The group plans to expand its world-wide portfolio from 73 properties to 120 by 2015, but Barnabe insists growth will be measured in order to prevent a dilution of the brand with an influx of B-location properties and rapidly-hired staff. He also admits that while options have been presented by various owners, overall growth is a global strategy, not local, and something to be carefully considered when there is an upper limit on the number of total properties Kempinski wishes to manage.

“The Kempinski philosophy is to continue growing, but with limited numbers. We don’t want to be bigger than our age, and in the same way we wouldn’t put 10 hotels in Dubai because that would compromise our growth in other areas.”

“Every single hotelier in this market

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is very fortunate. Emirates Airlines is bringing many new clients to Dubai and DTCM is doing a great job marketing and helping with regulations; keeping the city clean and organised and safe; and we need to continue growing, but with quality.”

The approach is refreshing for a brand established in a city that is tangibly gearing up to double visitor numbers in seven short years, and in response is building dozens of hotels.

But beyond thinking purely about Dubai and its Expo2020 ambitions Kempinski is thinking about its own growth and brand preservation. Over the seven years the hotel has been in Dubai it has already experienced one incredibly steep peak and trough and a measured approach to creating a future built on quality is something many other chains could learn from.

HOSPITALITY BUSINESS MIDDLE EAST / 17

COVER STORY

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COVER STORY

In 21 years, Rotana has established itself as one of the Middle East’s leading operators, with 47 properties open across the region today. But with a 100% expansion plan for the coming decade, executive vice president and COO Omer Kaddouri, says the best is yet to come.

M

ost hotel operators reach an age greater than 21 before ambitiously and publically announcing plans to execute a 100% expansion programme, entering regions others barely speak of, let alone open hotels in.

But for a brand with the heavyweight presence of Rotana, the likes of Iraq, Yemen, Turkey and Africa are firmly on the cards, as are Oman, Bahrain, India, Turkey and Jordan.

By this time next year, Rotana will have taken its total inventory from 47 operating properties to 57, projections for the following year will see that number rise again to 67, and the growth will continue – across all four of the operator’s existing brands and one new brand, The Residences (see box overleaf) – until the current inventory has been doubled.

It is estimated this will be achieved within five years.

One of the few chains currently operating in the region that caters to more than one market segment, Rotana is not only covering a vaster area, but taking on ever bigger properties, with the average number of rooms rising in each of its new hotels.

Despite being a UAE brand, with imminent plans to have a hotel in each of the seven Emirates and a luxurious new resort recently announced for Saadiyat Island, Abu Dhabi, executive vice president and COO Omer Kaddouri reveals that the main growth is coming from

non-UAE markets, such as Bahrain, which will see more properties open after the successful launch of Majestic Arjaan by Rotana in March of this year.

Jordan is also earmarked for more hotels, with the first Arjaan branded apartments opening this year.

“Iraq is a big destination for us and our second property will open in Karbala by September, making

us the first international brand there. It’s a difficult location and has its challenges, obviously, but nevertheless we are ready for it.

“Oman is a new destination for us. Our first property will be a beautiful 444 key resort in Salalah, so it’s definitely going to be the jewel in the crown of all the hotels when we open in December this year,” Kaddouri reveals.

We like to focus on the basics and concentrate on what our owners want.

Beach Rotana Hotel and Towers, as it is known today, was both Kaddouri’s, and the group’s, first property.

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COVER STORY

The residences The Residences by Rotana will be unfurnished and non-serviced branded residential buildings, architecturally designed using Rotana specifications and standards. They will have limited services such as concierge, property maintenance, a gym and some with a swimming pool. Housekeeping is normally not provided or available in such models, unless requested by guests.

Moving beyond 2013, Rotana is also eyeing the increasingly lucrative and popular Turkish market.

The plan for two hotels in Istanbul, Tango Arjaan by Rotana and Burgu Arjaan by Rotana, is as yet unaffected by recent social and political turbulence, due to the project’s lead time.

Additionally, MOU signings recently took place in India and Mauritania, West Africa, and this month construction will begin

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To join a company with only six or seven hotels and still be there when you know there will soon be 100... that has been the pinnacle

JULY 2013

on two new properties in Muscat, Oman: Sundus Arjaan by Rotana and Sundus Rotana Muscat have a scheduled completion of 2015.

Two new properties are on the drawing board for Qatar, where the group’s fifth brand, The Residences, will debut, although full details of how it will differ from the Arjaan apartments brand are still closely guarded. And in Saudi Arabia, demand for a specific offering from both guests and investors mean that “four or five” Rayhaan hotels will open by 2020.

So aggressive are the plans, not even Europe is off the cards for Kaddouri, should the right opportunity arise.

As he reasons, Rotana competes with international brands in its current markets, so why not compete with them in their native markets?

The final piece of the jigsaw is a chain of representative offices in the US and Australia, attracting in-bound business and truly capitalising on the

exponential growth of the region’s aviation networks and home-grown aviation brands. The offices will add to existing marketing networks that today cover Shanghai, Moscow and Mumbai.

It’s not just new properties that Rotana will bring to the industry, but with a doubling of inventory, a two-fold increase in staff numbers can also be expected. By 2016, Kaddouri says it is entirely plausible the group will need to employ 24,000 staff just to keep the doors open.

“Those are areas we want to grow into faster in the two to three years to come, which is a little putting the stamp on the company. We are known to be the local chain in the UAE and regionally, we are in nearly every city.

The vision of the company founders was for a hotel under one brand or another in every major city in the Middle East. We are very nearly there and then we will have the platform to move out a little more globally.”

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COVER STORY

Half way there The vision of founders Nasser Al Nowais and Selim El Zyr began with the opening of Beach Rotana Hotel, a year after Rotana Group was established. It quickly became a market leader in Abu Dhabi, for occupancy, F&B and guest traffic, and global recognition followed.

It was the very property where Kaddouri began his Rotana career 15 years ago. During his tenure as GM, Kaddouri developed the property from a single building that today merely forms the ‘wing’ of a sprawling inventory that enjoyed a $68m expansion to take the total room count to 558.

Climbing the ladder, Kaddouri has since held the positions of resident manager, general manager, SVP of UAE operations and EVP. Previously working for Hilton and Shangri-La, Kaddouri is the first to admit he has never stayed with the same company for so long, and attributes both his success, and loyalty to Rotana, to the strength of his colleagues who he credits as “self-starters full of passion”.

To date, and considering the plans for the coming decade and beyond, the highlight of his career has been his fingerprint on Rotana’s growth.

“To join a company with only six or seven hotels and still be there when you know there will soon be 100, knowing that, as an individual, you have had something to do with that growth, that has been the pinnacle,” he asserts.

The 308 room Yas Island Rotana enjoys consistently high occupancy rates.

The Rotana story Rotana was founded by Nasser Al Nowais and Selim El Zyr in 1992. Opening Beach Rotana Hotel and Towers in 1993, which fast become a leading hotel in Abu Dhabi, recognised for its F&B and guest traffic. In 1995 Nael Hashweh and Imad Elias joined the group and today, with 47 operating properties Omer Kaddouri is tasked with leading operations to take the total portfolio to 100 hotels by 2020.

Fujairah Rotana at Al Aqah Beach.

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JULY 2013

HOSPITALITY BUSINESS MIDDLE EAST / 21

COVER STORY

But achieving that growth isn’t an automatic right when faced with the difficulty of striking a balance between stakeholders. The secret he reveals is to go back to basics.

“We like to focus on the basics and concentrate on what our owners want. I think that is what has made us successful. We talk to our owners, they talk to us.

“Some of the larger companies aren’t as available as we are, but we focus on the basics, and that’s how we will continue to do our business going forward.”

Stronger together The growth planned for the rest of this decade is not Rotana’s alone.

The coming years will see strong tie ups with Etihad Airways, through its partner programme that will create marketing opportunities providing both guests and employees with benefits packages.

In Kaddouri’s plan, the attitude towards overlaying Rotana

Cove Rotana Ras al Khaimah.

and Etihad’s respective global footprints is one of “never say never” and he identifies a number of similarities between the two companies as they both reach out beyond their native market.

REGIONAL 2013 OPENINGS

KARBALA RAYHAAN

BY ROTANA Location: Karbala, Iraq Brand: Rayhaan

200 BOULEVARD ARJAAN BY ROTANA Location: Amman, Jordan Brand: Arjaan

SIDRA RESIDENCES

BY ROTANA Location: Doha, Qatar Brand: The Residences

427

500

ROOM INVENTORY

ROOM INVENTORY

ROOM INVENTORY

200

ROOM INVENTORY

SALALAH ROTANA RESORT Location: Salalah, Oman Brand: Rotana

577

ROOM INVENTORY

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HILI RAYHAAN BY ROTANA Location: Al Ain, UAE Brand: Rayhaan

JULY 2013

“Hotels and airlines have been partnering for years with points and frequent flyer programmes and we are reaching out further afield to reach some of the largest companies.

But two home-grown companies growing together to reach out to the millions of customers out there... We are very excited about it.”

Despite the predictably measured and formal business tone, that excitement is still tangible in Kaddouri’s voice and sitting with him and his team in the presidential suite of a property that not just kick-started but propelled what would become an illustrious career with one of, if not the, fastest growing brands in the region – and the only Arabic brand to achieve such substantial growth – gives the feeling of coming full circle. But that would insinuate that there is an end in sight and nothing could be more misleading.

With growth, partner tie ups and new markets on the short term road map, what could the future beyond 2020 bring for the Rotana Group?

“One day we will be a global brand. There is no doubt it.

“If we continue to run our business the way we do today, there is absolutely no reason why we can’t.”

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3OHDVH FRQWDFW /* (OHFWURQLFV *XOI RIˉFH IRU IXUWKHU GHWDLOV LG ELECTRONICS GULF FZE AL NASR PLAZA OFFICE BUILDING #4, OFFICE 309 OUD METHA RD., P.O. BOX 61445, DUBAI, UAE TEL: +971-4-357 3466, FAX: +971-4-357 3460 &RQWDFW Salwan Finj (+971-56-683 7424) Jeongjun Park (+971-56-681 7029)

ROUNDTABLE

W

hat is your primary people management challenge?

Cho The Oo: The change in

Do you think this signals a long-term perspective on recruitment, rather than the perception of a transient market?

NK: There is that element, but also the

processing visas is slowing down the recruitment of Thai and fact that the spotlight is on the UAE Philippine associates. more than it ever has been and people are now actually looking to the UAE Wissam Beiruty: Competition and and asking which best practices are retention. It is becoming more being adopted. The UAE is attracting challenging to recruit in general and global business and global talent, the way we are retaining associates but there needs to be more than the is changing because of the changing excitement and attraction of ‘Dubai’ engagement trends brought about by to keep them here. Since we had the Gen Y. Engagement now is more than market dip, companies want to make just wearing a uniform and working. sure that, if that ever happens again, Atul Sinha: While some countries have you have people locked into the new restrictions on labour forces, organisation. we also face the same difficulties with visas for people from Egypt and Syria. Training is also an important From the AON Hewitt perspective, what aspect; most of the staff are required are the key observations?

ASAP so the window for training is Andy Heath: These days it’s all about very limited and it’s difficult to Nationalisation. It’s key. Out of balance the arrival of new that you have the Oman/ staff with their training Saudi scenario, where and deployment to there is a high number of clients. nationals, but it’s about OF EMPLOYEES IN THE getting those high numbers Nikki Ferguson: The MIDDLE EAST ARE ENGAGED, DOWN 10% into employment; versus the rewards and retention UAE/ Qatar scenario where challenge has been at the it’s about getting the employer value forefront of UK-based HR practice perspective to attract them into the for 20 years, but today we’re seeing private sector. evolution and awareness in our Middle We are doing a lot on East client’s perspectives of total nationalisation strategies and how rewards, compensation and benefits. organisations can position themselves A clear infrastructure of reward, to be more attractive as an employer. retention and management of career paths should be ingrained in company And secondly, which is primary to employee engagement, we also have culture, but sometimes achieving career pathing. that requires re-organisation of The people who remained postthe company. Unless you are able crisis are the high-performing to understand and embrace those employees that present opportunities, changes, you are on a highway to so involuntary turnover is decreasing nothing. and it’s about retaining and We now see groups in the UAE developing the key people. embracing the whole employee engagement concept…. Is it AS: Responding to Andy’s first point, something that I genuinely believe Nationalisation from a regional will change and will happen across perspective is very interesting, and industries? Yes, absolutely. we have more than 200 Emiratis I have been here since 2005 and to working for us full time. It’s different see these changes now – for example in different countries, there are certain flexible benefit schemes. If you had categories where you need a 100% said those words even two years ago, national workforce. By 2015, we need people would have looked at you like to double our nationalisation target, but you were crazy. these are minimum numbers and based

59%

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JULY 2013

on short term contracts they do increase.

AH: You’re going to see from that, there are targets in various industries and sooner or later you will see it enforced here, like it is in Saudi Arabia.

Employers have been scrambling for the last couple of years there, so the more you can do now, the better shape you will be in.

How will this transfer into hospitality?

This isn’t finance or construction.

WB: It’s more challenging in hotels and the common reaction we get is that Emiratis aren’t familiar with the

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ROUNDTABLE

FORWARD THINKING

Last month, UAE President Sheikh Khalifa declared that “human capital is the real wealth of this country, before and after oil.” Consultants, service suppliers and hoteliers debate implementing nationalisation, performance management and the concept of employee engagement

Ferguson, director, Q&A People Matter; Cho The Oo, Assistant HR manager, Dusit Thani, Dubai; Atul Sinha, director, business development, QBG Facilities Management.

industry. They think it will be Haram because of alcohol or the cultural aspects of male and female interaction.

Although we have people in F&B and recreation it is challenging. We have internal targets, like most industries, but because of what will happen very soon, we are setting those higher. We try to attract them with the packages and career opportunities.

NK: I think you have hit the nail on the head. Sheikh Khalifa said Emiratis are our wealth, not oil, and while it’s very good saying that, if the businesses are not fit for purpose and do not have

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The more you can do now, the better shape you will be in.

the ability to embrace and actually absorb Emiratis within the existing business culture, it is set to fail. It can’t just be about training the mindset of the Emiratis to make them fit for the workplace, it’s about making the businesses fit for Emiratis, too.

AH: Most of the young employees – Millennials, or Gen Y – have a two year average length of service.

Engagement of those people is key to the organisations now and it develops onto the flexible benefits on offer.

What will be important is the meeting of Gen Y and their aspirations in

JULY 2013

the work place – they want to be promoted almost instantly – and that will be a big challenge.

How will the hospitality industry cope with that?

WB: We have people who join and three years later they want promotion, so in the hiring process we now explain that we are offering a career and that promotion is performance based. For me, aiming to be a preferred employer, I want to develop people for Rotana, on a long term basis.

HOSPITALITY BUSINESS MIDDLE EAST / 25

ROUNDTABLE

How are staff trained?

CTO: We have a succession planning for colleagues of all levels, starting from service agent upwards and individual development plans for everybody. The challenge is that you may find certain colleagues who are happy where they are, so then we develop them to perform their job above and beyond. For those who want to go further there is cross training.

From the agency perspective, how much commitment goes into employee development?

AS: For our existing 3000 people you

It can’t just be about training the mindset of the Emiratis to make them fit for the workplace. it’s about making the businesses fit for Emiratis, too.

would be looking at around six hours per month as a KPI. You also need more planning in training and greater consultancy with clients to ensure training is relevant In addition kitchen and housekeeping, staff maybe encouraged to move into another role because the salary is higher and the returns we get on various professions differ. So cross training is an important element for agencies, too.

AH: In the GCC I see Performance Management (PM) systems as being primarily focused on INCREASE ON AVERAGE annual bonus. There is no ENGAGEMENT WHEN other dimension to that LOOKING AT BEST EMPLOYERS IN THE conversation in terms of MIDDLE EAST development plans. To me it’s key that out of that annual conversation you would cover performance correction, aspirations, etc.

WB: This is important for retention.

If there is a real genuine two-way conversation of personal and business goals the employee remains engaged.

CTO: And if you have the right PM system in place, the training becomes the culture of the organisation and each and every employee takes responsibility for their own development.

Whenever we do PM we instil the idea of a professional and development opportunities. mployees know when they attend training that it is for their benefit and we benefit from that.

14%

NK: How often do you revisit development plans?

CTO: We have monthly one to one with department heads and direct supervisors and PM every six months, so there is enough time to review.

WB: At Rotana it’s a yearly cycle. In Q1 the person in charge of Annual Performance Review (APR) sets goals then there is a six month review, and evaluation at year end.

This is the structured part but we keep an eye on things over the shorter term. We tell department heads are instructed to meat with teams to discuss their contribution to the big picture.

AH: This industry and region enjoy the highest rate of engagement of any sector in the region, according to our data, sourced today. I have spoken to a number of brands and they are reporting 70%+ and 80%+ engagement.

The banking industry average in the GCC is 52% and I have known companies with 26%. To achieve those levels in hospitality, it has to come down to the movement strategies and the customer service.

With respect to the workplace culture that supports this, how does Dusit juggle the challenges of being a Thai chain, facing nationalisation targets and restrictions in your primary source markets, with the needs of more than 30 employee nationalities, and still achieve Investors In People Silver Accreditation?

CTO: It’s the creation of a sense of security and the ability to take our time to speak with consulates and candidates to clarify rules and who we are.

Then we have all levels of engagement activities at work that also reflect the diversity of our workforce.

We don’t outsource our staff canteen; colleagues eat food cooked by our own chefs. We have recreation events at the colleague’s request; accommodation has sports and leisure facilities; and we have day trips outside of Dubai. Our colleagues have a voice to suggest all these things.

We began the IIP accreditation in 2011 and because of the established standards in the hotel we were invited to go for the higher certification band.

We are currently the only hotel in the Middle East to have that.

AS: This proves that engagement has to become more creative. We have done surveys that showed at least 95% of resources at entry level would spend up to 20 years in Dubai but never have their families visit, so we began a programme to sponsor their family’s trips at absolutely zero cost to them.

CTO: We have a similar initiative and help with the family’s visit visas.

How are agency staff supplied by QBG and what are the client demands you are currently meeting?

AS: We are working with several hotels across the UAE and we are involved in everything from recruitment to development. We send our recruitment teams out across the world and then screen the people personally. We ensure candidates know the job description in detail because if a contract is for us to provide 50 people, we have to provide them

2%

IMPROVE IN GLOBAL ENGAGEMENT LEVELS, 2011 TO 2012

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ROUNDTABLE

engagement follows, but as GDP goes down, engagement also goes up. It takes time to implement downsizing policies.

Further to that, if business is driven by value and value is driven by people, how should hotels invest in their people and how can ROI be measured on the commitment to development?

CTO: We need to provide the right

The satisfaction survey doesn’t reflect the reality – they are happy, but are you as a business getting the most out of them?

employees to know and understand that they are actually part of those. If it’s a new reward package or a new policy, make them feel it’s part of the company culture and not a quick fix. But don’t peg a whole strategy on one thing.

AH: Going back to the engagement part, people sitting in their seats does not correspondent to engagement.

One organisation we worked with had an average length of service of 15 What’s happening in the hotels? years, but the engagement score was WB: Rotana does outsource and that very low because the employees had varies between hotels, from security such an easy job, they didn’t want to and valet parkers to accommodation move on. caretakers. We prefer not to Ideally, you need people who outsource because we have say good things, want to stay better control over our and want to strive and that own colleagues, from their OF PEOPLE IN THE MIDDLE want and ability to go the training and development EAST ARE THINKING OF extra yard is a key element. to their welfare and we LEAVING THEIR ORGANISATION The balance is to get the prefer for their PM to be in low performers out, develop the our hands. high performers and bring in fresh CTO: our outsourcing is very stable at ideas. the moment. We too prefer our own employees because you still have to take time on orientations and other How much of a threat does that pose to elements; they still require investment an organisation? of time for training, so why not have AH: We did one study in the US on 500 our own colleagues where cost allows? FTSE companies, where we looked at ROI and measured the shareholder increase vs engagement over five Nikki, you spoke earlier about rewards years. We saw a positive correlation and retention best practice. What is your between engagement scores and advice on this? investment in shares.

NF: Firstly look at the organisation’s In the hospitality industry the structure: Where it is now and where equivalent would be comparing guest do you want to be? If you establish satisfaction with employee satisfaction. benefits without looking at what In terms of other correlations we see you need and how best to cultivate employee engagement lacks economic engaged, loyal employees, progression indicators, so at the moment we are is not guaranteed. You then need to seeing it rise whereas the last couple of begin on active communication and years it was in decline. As GDP goes up, if there are going to be changes allow for the duration of the terms. We being the out sourcing partners, also provide consultancy to clients on the next upcoming labour markets; you do find some labour source markets dry up.

We are also involved with the day to day issues with our clients from replacements to enhanced training needs, so you can focus on your core business.

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47%

JULY 2013

training for the job so planning and development play a major role. We have a strategy to check the ROI on this, through satisfaction surveys, analysis of how benefits meet needs, HoD monitoring and mid-year checkups between surveys.

We also cross this with the customer satisfaction for ROI indicators and we also analyse the number of internal promotions to quantify PM and career development. If the results are up our ROI is up; happy employees, happy business.

WB: We have the Rotana Colleague Satisfaction Survey in January and July. Between the first and second survey we have an action plan to target the lowest scoring points, and the Gen Y career pace issue is evident here.

If we are talking about ROI compared to the guest satisfaction survey, we can see there is a relationship there. However, recently we have been told this may change because still our turnover figures can be reduced. The satisfaction survey doesn’t reflect the reality – they are happy, but are you as a business getting the most out of them? What we currently use is a good tool but it only reflects the reality to an extent, we can dig deeper than that.

CTO: Dusit also conducs exit interviews so we know why staff leave.

What do you do with that information?

CTO: We have found it might not be the right time for them to work with us, others have waited for a specific opportunity to arise elsewhere, but when they see a chance to move back to Dusit we invite them back, providing they haven’t returned to their native countries.

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Visit us at booth 401 during HITEC 2013, June 24-27 in Minneapolis, MN. Not visiting HITEC? Call +1.800.260.2640 or email hospitality@infor.com. www.infor.com/hospitality

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ROUNDTABLE

PRESIDENT SHEIKH KHALIFA ON NATIONALISATION “HUMAN CAPITAL IS THE REAL WEALTH OF THIS COUNTRY, BEFORE AND AFTER OIL.” “SERVING THE INTERESTS OF CITIZENS IS THE GOAL THAT WE STRIVE FOR EVERY DAY. BUILDING HUMAN RESOURCES IS CENTRAL TO COMPREHENSIVE SOCIAL AND ECONOMIC DEVELOPMENT.

When we look at our turnover ratios we can link it to the reasons people are leaving and what is happening in the market.

AS: If you take the whole cycle of outsourcing for a couple of years and you understand the benefits around it, you see you have the luxury of not having to take the financial risk of permanent employees, especially in low season. Take into account staff visas.

Outsourcing here is not like it is in Europe, the UK or US. Here you have the benefit of greater engagement and control. Our employees know their increments are controlled by the clients, they understand their career path is controlled by the client. You give appraisals, we take feedback, and we ensure our contractual obligations are met. So you have the control just like with your own staff.

Ideally, you need people who say good things, want to stay and want to strive and that want and ability to go the extra yard is they key element

Let’s talk about retention rates WB: There are always people looking

on are the ones who move to other properties. It’s a challenge.

There has to be an agreement between HR managers whereby if somebody has not completed two years in the property try not to take them. If a HoD leaves for another hotel you could have five resignations in their former department. We can only try to do what we can within the immigration and labour law to prevent that situation.

What do you predict will be the top trend in 2014 for people management?

AS: Salaries. It happens every year, but this time in response to the rising cost of living.

AH: Two key things. Our GCC data shows that only 39% of colleagues believe they are paid fairly compared to colleagues in similar roles in the same organisation.

Is that gender or racial inequality?

AH: It’s all perception. It’s based on

for jobs because that is the nature of the market today, but in terms of turnover, which is directly related to retention, this is higher from 2010 to 2012 and this is dissected geographically. In 2010 it was, 24%; 2011, 32%; 2012, 29%; and the forecast for 2013 is even higher than that. In response, we are increasing the focus on Rotana as a career not a job, to reduce the likelihood of those junior position employees going to a competitor for a nominal salary increase.

Much of the time you can’t control it – some people are just ready to move back home. The ones we focus

12,000 responses, which is not a small sample, but that blows me away. It’s not to do with the salary itself, but in terms of perceived quality of the PM system; people feel their grades do not reflect their input in the organisation and I think correlating that over the coming year will be key. Transparency and equitable PM systems. The second will be nationalisation.

WB: Nationalisation and HR being seen more as a business partner. We don’t make money, but we can save it. We contribute to the

bottom line, revenue and guest satisfaction.

CTO: Nationalisation, and we have targets. With our expansions, this and talent pools are a focus area.

AS: But there is a perception that there is only so far you can engage with UAE nationals in the work place.

What we believe is that if you only have nationalisation as a number or percentage to quote, you probably aren’t engaging them enough. On several projects, covering a number of levels we saw that across 15 nationalities on a single project nationals were highly engaged, especially when facing challenging tasks.

NF: Nationalisation, engagement and total reward, are the buzz words, but from a HR perspective the biggest challenge in 2014 will be cultural change within businesses and the ability to change.

If you have an organisational infrastructure but management is not ready to embrace that and help to execute changes, it’s not going to happen. When that is done, you can begin with engagement, benefits and rewards, nationalisation.

But without that culture you can’t move forward.

Hospitality Business would like to thank Dusit Hotels for hosting the discussion at their Dubai property.

Next month, HR and training professionals will debate the link between Gen Y, career development and professional education.

68%

ENGAGEMENT LEVEL RECORDED IN THE MIDDLE EAST IN 2009

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VP SPOTLIGHT

Getting to know you The Ritz-Carlton experience is built on knowing guests, but how will this develop as technology plays an ever more important role in attracting the next generation of travellers? Global officer of worldwide operations, Bob Kharazmi, talks next generation guests and the next generation of Ritz-Carlton hotels

B

y this time in 2017, taking into consideration the seven hotels that opened in 2012 and the current MENA pipeline, RitzCarlton will have added 32 hotels to its global collection, five of these will open in 2013; two in China, and one each in Bangalore, Kazakhstan and Aruba (see box).

In the MENA region, the focus is on North Africa, where five new properties will open, including the delayed Ritz-Carlton Tahir Square Cairo. The primary focus is on the currently politically stable, and naturally stunning, Morocco and Tunisia.

Two Moroccan properties are due for completion by 2014 end: The under construction Ritz-Carlton, Rabat, a 120-room hotel within Royal Golf Dar Es

Global officer of worldwide operations Bob Kharazmi.

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Salam; and the 98 room and 35 poolvilla suites at Ritz-Carlton Reserve, in the exclusive Tamuda Bay, 60km east of Tangiers. Ritz-Carlton Tunis resort, with 129-suites, at the world heritage site of Carthage and Tamouda Bay, is due 2016.

But the flagship is Ritz-Carlton Marrakech, to be developed around the Jenan Amar Polo Fields, the launch of which was announced exclusively at ATM in May this year at Dubai World Trade Centre.

Together, the new properties will have established a solid and reputable presence in the North Africa region for the luxury brand that arrived in the Middle East 15 years ago.

“This region has always been important. I must say, truly, this market has been growing almost daily and we all compete to present our new brands and products to the Gulf market, and that shows this is one of the most important and dynamic markets for us.”

Playing to the marketing tag line of “let us stay with you” the new locations, says global officer of worldwide operations Bob Kharazmi, are essential to broadening the horizons of the luxury traveller, and broadening Ritz-Carlton’s own horizons simultaneously.

“The Middle East, North Africa and sub-Sahara Africa are all growing markets. Today’s luxury travellers are looking for places where they can connect with the local culture and be involved in order to experience local culture. This is a trend in the luxury travel market,” he observes.

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Previously luxury was material, it was about expensive products, but the majority of brands are now realising that the functional part of a guest’s stay will not keep you as the market leader”

“Paris, New York, London and Rome are all still important, but there has been so much travel there already people are looking to experience something truly different and so these [new] markets, and their future performance, is looking strong,” he adds, while assuring that far from emanating away from the Middle East, the aim is keep the comforts of the Gulf region with the Gulf traveller as they explore new destinations.

“Ritz Carlton is armed to move with other growth factors and open properties for guests around the world. Middle East travellers are very important for us, in leisure and business.

“The importance of this region is that if you are looking to properties outside the gulf we are catering our amenities to their liking, with TV and newspapers in Arabic, for example and local F&B to cater to their tastes and create a home away from home.”

‘Stamp’ of distinction According to hotel construction analysts, the global luxury hotel pipeline currently tops 1200 properties; a significant number of homes away from homes in anybody’s book. So what will differentiate the Ritz-Carlton offering?

While the growth plans are very much tangible, the ability to execute them is linked to something that is very much intangible. However, assures Kharazmi, therein lies the differentiator.

Revisiting his explanation of the “let us stay with you” principle, Kharazmi

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VP SPOTLIGHT

In addition to an impressive pool area, Ritz-Carlton Marrakech guests will also be located by the Jenan Amar Polo Fields.

Artist’s impression of the newly announced Marrakech property. explains that Ritz-Carlton works on a principle of ‘golden stamps’, which are “simple, but applicable to our commitment to our guests”.

It begins with staff training– for all 38,000 worldwide – which does not imbue the same workplace hierarchy as other multi-national brands, but instead puts the employee on the same playing field as the guest: Both employee and guest are all referred to as ladies and gentlemen.

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Training is the basis of all employee’s careers with the operator and is reoccurring across a number of platforms on a monthly, and sometime even a daily, basis.

“We strongly believe our best asset is our employees and we invest a lot in them. It’s all about selling the experience, not marketing amenities. You have to create lifetime experiences to bring guests back. The whole idea is to impact their heart

and soul,” he adds, reciting the cliché “look after your employees and they will look after your guests” with a sincerity that hints in this case it may actually be true.

Granted, room rates reflect the investment that is made in training, but to facilitate ‘painting the perfect experience for guests’ – a core business philosophy – to something so imperceptible, still seems like a gamble. Not for Kharazmi.

“It’s very simple. Guests have expectations, from the basic requirements to possible requests that you may have during your stay and we try to surpass all that to delight and surprise our guests. We have a system called ‘mystique’ so we’ll remember things like your birthday, we try to remember what you like and dislike, based on your previous stays so if you prefer still water, we will make sure you have your favourite bottle of water ready in the room.

“The personalisation and attention is on the guest and based on what we know about you, that creates the memories.”

But Ritz-Carlton will have to toe a fine – at some points, even invisible

JULY 2013

IN FIGURES

PROPERTIES IN THE COLLECTION BY 2015 END

HOTELS TO OPEN WITHIN THREE YEARS

OPENINGS IN PREVIOUS 12 MONTHS

HOTELS IN CURRENT PORTFOLIO

HOSPITALITY BUSINESS MIDDLE EAST / 33

VP SPOTLIGHT

– line in order to strike the balance between personalised and intrusive, particularly when targeting the next big market demographic. But as his explanation of the philosophy continues, Kharazmi hints that luxury will soon become ever more abstract.

Generation where?

While talk of Gen X, Gen Y and their impact on business models continues, Ritz-Carlton believes not only to have insight on their interpretation of the world, but the ability to use that knowledge to strike a balance between tech and luxury, something many other brands are still grappling to understand.

While traditionally luxury is all about the palpable, the personal service that is a concierge, a porter and perhaps even a dedicated butler, on hand to meet any need, Kharazmi is boldly leading Ritz-Carlton into new territory and re-defining luxury in a way other hoteliers do not dare, by stepping back.

“I would say evolution of technology in order to personalise the experience will be more dominant in the luxury field than it used to be.

Previously luxury was material, it was about expensive products, but the majority of brands are now realising that the functional part of a guest’s stay will not keep you as the market leader,” he shares.

Combining technology and choice, the next generation of guests will find luxury in optional seclusion and mobile technology will form the backbone of how that is facilitated, with testing due by 2013 end.

Mobile and remote check in and check out, room service ordering from a guest’s mobile and the ability to contact the hotel while leaving the airport to arrange room numbers and arrival refreshments are all on the cards.

“Generations are changing and the younger generation is becoming our customer base. We have to move with that,” Kharazmi states reitering the part technology will

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2013 ROUNDUP

Generations are changing and the younger generation is becoming our customer base”

China - Ritz-Carlton Chengdu & RitzCarlton Tianjin Overlooking Tianfu Square, the heart of an iconic Chinese city, Ritz-Carlton Chengdu features 353 rooms, including 55 suites.

Ritz-Carlton Tianjin will be focused on entertainment and leisure with a number of luxurious entertainment and dining venues, for both the leisure and business traveller.

Kazakhstan – Ritz-Carlton Almaty This 145 room hotel, the first in Kazakhstan, is located in the 37 storey Esentai Tower within the mixed use Esentai Park development project in Almaty which includes an extensive shopping mall, fitness club and residential complexes. The hotel, located in the centre of the city, will offer club and suite accommodation together with over 10,000sqf of meeting facilities.

Bangalore In the upscale commercial hub of Residency Road in “Silicon Valley” India, this hotel offers guests, 277 luxury rooms and suites, a spacious Ritz-Carlton Club Lounge, international dining options and The Ritz- Carlton Spa by ESPA. While Kharazmi admits the property has been “under construction for many years”, mostly due to market difficulties, he does not shy from estimating a September 2013 opening.

Aruba Aruba is a 33-kilometer-long island of the Lesser Antilles in the southern Caribbean Sea, located 27km north of the coast of Venezuela.

The Ritz-Carlton hotel here, will offer guests 320 rooms and suites; four dining outlets; a 15-treatment room Spa; two swimming pools and a 24-hour casino.

play moving forward. Gen Y and Gen X are becoming a much larger percentage of the customer base and they are looking for authentic and real experiences. They are looking for technology to support them in doing what they want to do and our company is evolving in that fashion,” he continues, assuring that the

JULY 2013

decisions are based on extensive and near-constant market research of the existing client base.

“Our entire drive, focus and energy is about knowing the guest. Knowing what they will need from generation to generation in terms of the evolution of guest demand is key to staying ahead,” he concludes.

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Heinz Grub Area Manager of Starwood properties in Dubai

Samer Khanfar GM, Jumeirah Living Dubai World Trade Centre Residence

Gerald Lawless President and Group CEO, Jumeirah Group

Majid Al Marri

Hospitality Business ME magazine The choice of the professionals To advertise please contact: Alex Bendiouis, alex.bendiouis@cpimediagroup.com +971 50 458 9204 vass.mafilas@cpimediagroup.com+971 55 887 0720 Ankit Shukla, ankit.shukla@cpimediagroup.com +971 55 257 2807 Read every monthly issue free of charge via: www.hospitalitybusinessme.com

DTCM

SPECIAL FEATURE / LIGHTING

TIME TO SWITCH?

In the Middle East, 22% of all the electricity generated is used for lighting – 3% above the global average. With ever more stringent sustainability requirements, how can this number be reduced without compromising comfort and design?

HOTEL HOTEL HOTEL HOTEL

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SPECIAL FEATURE / LIGHTING

G

lobally, the average amount of electricity consumed for lighting is estimated to be 19%.

In the Middle East, that figure stands at 22%, despite a UN initiated plan launched seven years ago to reduce this overall by 20% by 2020.

The hunt is on for a solution and multinationals are investing in the development of new and improved lighting technology, but the market has been incredibly slow to react.

The ‘light of the future’ as it is hailed by industry insiders is LED. The fittings don’t use electric current to glow – while also generating phenomenal amounts of heat. Instead they are actually emitting the light – from a diode – meaning fractional energy demands, which actually produces more light over a longer lifetime. And even when that lifetime has been reached, LED lights to not turn off the way their incandescent ancestors do, they simply continue to work with an average 30% reduction in brightness.

A switch to LED lighting in the Middle East would save 35million tonnes of C02 emissions annually, which is equivalent to 75million barrels of oil and the output of more than 25 power plants.

But, scarred by the experience of buying substandard stock from Eastern manufacturers, the LED experience to date influences purchasing decisions more than the benefits of the technology, and as a result, the market has been slow to capitalise on these benefits.

Incandescent lighting is being phased out globally, but to date no legislation, or plans for legislation, exist in the Middle East. Interestingly, it was Cuba, when led by selfproclaimed environmentalist and then leader, Fidel Castro, that banned the import and export of the old Edison bulb first, in 2005, replacing them with CFLs.

MARKET ADVICE “LED is the light of the future, no doubt, but there is a lack of awareness

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ELECTRICITY CONSUMPTION FOR LIGHTING (MEA)

3% CFL

36%

32%

FLOURESCENT

INCANDESCENT

16% 13% HALOGEN

HID

SOURCE: PHILIPS UNIVERSITY

Boxout headline in this space The study says that LED is an environmentally and economically superior technology; LED bulbs, the report says, can generate more than 100 lumens per watt of electricity, compared with 60 to 75 for CFLs, while lasting three to five times longer. With no mercury in it, their disposal is safer, and can contribute up to 80 percent in energy savings. However, the value share of LED, despite its advantages, was only about 5% in the whole of Middle East and Africa in 2011.

If Led retrofit achieves 37% penetration by 2015, it will drive down costs, improve marketing and significantly reduce the amount of carbon in the atmosphere.

around its pricing. So that means people buy based on price and when that product fails it is the technology, not the vendor, which is blamed,” says Abdo Rouhana, head of Phillips

Lighting University Middle East.

Philips was the first company in the world to introduce a bulb, using LED technology, capable of achieving an output of 100w, by consuming only 20w, with its Philips MASTER LEDbulb. Philips aims to hit a 75% target, globally, for LED sales by 2020, up from a mere 7% in 2008. But says Rouhana, market conditions will decide this.

He warns: “There are now thousands of LED manufacturers and this has created choice in the market, but buyers have to be careful. Dealing with LED requires a person who understands the technology. Even in hotels, LED can flicker and fail because the transformer doesn’t match the bulb requirement. There’s a large education component to this.”

Up to 75% of the electricity consumed by lighting can be reduced by switching to LED, according to figures from GE Lighting.

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SPECIAL FEATURE / LIGHTING

THE SILENT REVOLUTION Iff LED is the miracle solution it is presented to be, why are more people not adopting the technology w aand shouting about its benefits? McKinskey’s LED CCompetency Centre looks at the five barriers to adoption.

“A study by McKinsey states that LED is an environmentally and economically superior technology.

LED bulbs, the report says, can generate more than 100 lumens per watt of electricity, compared with 60 to 75 for CFLs, while lasting three to five times longer, and about 25 to 35 times longer than a standard incandescent bulb. With no mercury in it, their disposal is safer, and can contribute up to 80% in energy savings,” explains Middle East, Africa and Turkey lighting GM, George Bou Mitri.

“The benefits of using LEDs also include a long useful life of up to 50,000 hours, minimised

maintenance and related costs and excellent low temperature performance,” he continues.

And the benefits are being seen, albeit slowly. In the Middle East VIP Bridge, in Dubai; Doha’s street lighting; and The Intercontinental hotel, Festival City, Dubai are all lit

by LED. “In roadway lighting, LEDs also deliver the added advantage of better visual conditions with the colour characteristics of LEDs creating better object recognition and visual results. This is also beneficial for other applications such as for parking lots, where the footage is clearer for security cameras, thus promoting

George Bou Mitri, General Manager, GE.

Jane Aldersley, Global Light and Power, LLC.

11. LED UNIT COSTS ARE TOO HIGH OOur research shows that industry leaders agree unit costs are the biggest rroadblock for LED right now. At €20 to €40, LED is still four times the price oof an equivalent CFL in the 40-watt-equivalent product range, despite tthe longevity savings.

22. PRODUCT POSITIONING AT RETAIL IS WEAK OOur store visits showed that LED lamp manufacturers are not making ssufficient investment in retail presentation. We encountered signage tthat muddied the distinction between the energy efficiency of LED and CCFL bulbs.

33. PRINCIPAL-AGENT CONFLICTS ABOUND LLighting decisions are generally based on initial cost rather than benefits. On the other side of the ledger, the tenants pay the llong-term o ooperating cost, meaning that they would likely prefer LED, if they were in a position to make the decision.

44. DIRECT REGULATORY SUPPORT IS LACKING DDespite bans of incandescent bulbs in more and more countries, LED aadoption has little direct government support.

55. TECHNOLOGY TRANSITIONS CREATE SIGNIFICANT UUNCERTAINTY EExamples of earlier technological transitions reveal risks as well as bbenefits for incumbent players. When cameras shifted from analog to ddigital in less than 10 years, for example, companies like Leica nearly vvanished from the market in Germany, while others like Canon managed tto increase market share.

BBy overcoming these five barriers, the industry could drive a five-year LED retrofit adoption rate above 50%. At that point, LED would become the re e ddominant technology in consumer and commercial lighting, providing tthe industry with a crucial new source of profits for years to come.

Mr. Abdo Rouhana, Head of Philips Lighting University.

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Lighting Design, Estimation, Supply & Installation

SPECIAL FEATURE / LIGHTING

safety,” advises Mitri, adding: “LED lighting is also known to enhance employee productivity by creating a more conducive work environment, and most importantly, they reduce light pollution, which is pervasive with traditional lighting.”

In Europe, where the technology is less of a phenomenon in everyday life, Amsterdam’s Rijksmuseum utilises LED within the gallery, proof of the versatility and cost effectiveness of the solution.

“Many people still have the perception that LED light is a cold bright light, best suited to commercial applications. However LED chip manufacturers have worked to produce a greater range of colour temperatures, so that for some time now LEDs have been available in very warm whites, through to what is considered ‘day light’, and then on into the cool whites,” explains Jane Aldersley sales manager for Global Light and Power, LLC.

2005

THE YEAR CUBA BANNED THE INCANDESCENT BULB

95% 5000

OF THE ENERGY CONSUMED BY INCANDESCENT BULBS IS WASTED THROUGH HEAT

x15

THE INCREASE IN LIFETIME

BY SWITCHING FROM TRADITIONAL TO LED BULBS

HOURS MAXIMUM LIFETIME FOR HALOGEN BULBS

75%

OF PHILIPS GLOBAL LIGHTING SALES IN 2020 COULD BE LED PRODUCTS

35m tns

OF C02 COULD BE SAVED ANNUALLY IN THE MIDDLE EAST BY SWITCHING TO LED

50,000 POTENTIAL LIFETIME OF LED BULBS (HOURS)

INSTANT ON The key to changing market behaviour, in the absence of mandated change, will be due to education, clearly outlined ROI, and the ability for users to transfer their current lifestyle to a more sustainable lifestyle.

In short, the replacement product, whether that is LED or something yet to be released into the market, must be of quality.

“Let’s first consider how we define the word quality. Can we define it as an expectation of high standards, applied to the production of something that is well designed and executed, that will prove to be durable and stand up to years of use with only minimal change to appearance and functionality as the years pass?,” asks Aldersley.

“If so, then many sustainable lighting products are high quality by definition. If we take LED lamps as an example, over standard incandescent or even halogen lamps – a well-made LED fixture lasts years longer, stands up to knocks and drops without

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any parts breaking, and years after installation has the same light colour and brightness as the day it was made,” she adds.

Globalight use Nichia LED chips in their products; a top of the range Japanese-manufactured chip that maintains its correct colour temperature after years of usage.

“If on the other hand we are talking about quality in terms of the human experience of lighting, then I believe sustainable lighting has made very significant improvements in recent times and the pace of develop is accelerating as the technologies become widely accepted,” she adds.

Education of the market will be key moving forward. The general public – let alone the decision makers lighting their public spaces – are seldom aware that, unlike other sustainable lighting solutions, like the much criticised CFL bulbs that were linked to headaches and even mood swings, LED is different.

LED boasts colour variability, instant on and dimming capabilities and the versatility to accommodate hundreds of design aesthetics. With market adoption, economies of scale could see the investment cost drop by 30% at common estimates.

“Lighting plays a crucial role in our lives and the impact is all around us from energy consumption to well-being and the environment, and we are always keen on highlighting this information and creating awareness,” said Rouhana. “Being at the forefront of lighting innovation in the region, Philips continues to drive end-to-end solutions, from the latest LED technology through to intelligent management and control systems, to help address some of these challenges.”

“We must remember one thing.

If we ask for people to save energy they should be able to do so without compromising on comfort. I believe LED achieves this,” he concludes.

cpimediagroup.com

SPECIAL FEATURE / LIGHTING

When design brightens up new technologies Preciosa Lighting, an innovative and progressive company based in the heart of Europe, creates complete lighting design solutions for luxury interiors worldwide. Its chandeliers decorate such elegant hotels as the Ritz-Carlton in Hong Kong, luxury casinos like Pallazo Hotel and Casino in Las Vegas and fashionable interiors like the Shangri-La in Paris or Westin Xiamen in China

T

he essence of Preciosa’s activities lies in design and creation of a wide range of decorative lighting fixtures.

This includes an all-inclusive design service, manufacturing, complete on-site installation and any necessary follow-up maintenance.

The Preciosa Design Team, a group of young art glass designers, is headed up by experienced Chief Designer, Mr. Jaroslav Bejvl Jr. “In my work I focus on the interconnection between art and the use of new technologies,” explains Jaroslav Bejvl Jr., the Chief Designer at Preciosa, and adds: “This makes it possible to inspire the imagination of those looking at a lighting object.” Preciosa uses the latest technologies such as printed circuit boards, fiber optics, LED and

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ALARIS, design by Jaroslav Bejvl Jr. Prisms with cut and polished edges bring out the perfect optical-aesthetic qualities that only the best crystal can afford.

The open shape of the Alaris lighting object brings to mind wings that are ready to soar – in a symbol of freedom and liberty.

This awakens an untamed desire for life in the observer.

nanotechnologies, virtual prototyping and much more.

Glass must be listened to and obeyed Preciosa has always manufactured its own glass, because the glassworks are at the very heart of the whole process.

It is here where the initial sparks of artists’ and designers’ ideas are first ignited, and where all the glass master pieces take shape.

One of the greatest challenges a designer faces is to satisfy project requirements while at the same time pushing the boundary of the material’s limitations.

The tradition of Czech crystal and glass, together with the cutting-edge technologies of the 21st century wins the hearts of design aficionados from all generations.

JULY 2013

HOSPITALITY BUSINESS MIDDLE EAST / 41

SERVICES AND SUPPLIES

Services and supplies The world’s most useful and innovative new designs

SUSTAINABLY BACKED CARPET A carpet backing made from 100% recycled materials – including water bottles – has been introduced by Ege Carpets, specifically for its range of carpet tiles, called Ecotrust.

MARPO ME ARRIVES Marpo Kinetics has debuted a newly re-designed Marpo Rope Trainer.

The machines, which have been featured on weight loss reality TV show ‘The Biggest Loser’ are designed to provide an intense workout, with minimal joint strain. As opposed to a friction brake, the patented design optimises resistance with each movement, allowing for real-time user feedback and smooth, gradual resistance in relation to the exertion applied.

“We are proud of the ingenuity behind the design. The versatility of Marpo Rope Trainers really sets them apart from most other fitness equipment,” says CEO, Marius Popescu.

RS Fitness Dubai has been appointed the official distributor for the local market.

42 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

One of the industry’s first environmentally certified carpet suppliers, Ege previously launched Ecoline, which is a series consisting of 100% recycled fibre from industrial and consumption waste.

“We have been working with environmental and sustainability issues for several years and we have made distinct improvements. This is a process, however, and there is always scope for us to improve even further. Ecotrust represents another step in the right direction. A carpet with a backing of 100% recycled fibres has a lower environmental impact than products made from virgin materials, since recycling gives waste materials a new life. We need to do more of this in the future,” says Jan Ladefoged, Ege environment manager.

CANON MPS AGREEMENTS Canon Emirates has signed two, four-year, Managed Printing Services agreements with Intercontinental Hotel and Beach Rotana Hotel, both in Abu Dhabi. Intercontinental purchased 36 Canon products with output management software and Beach Rotana was provided with 35 machines managed by the output management software, which enables access to mobile printing features.

“Listening to the needs of companies and analysing how best to meet these demands was imperative. Building a trustworthy relationship is one of our key competitive advantages and this was achieved through delivery of promises made to the customer,” said Canon Emirates GM Shadi Bakhour.

SERVICES AND SUPPLIES

xxxxxxx

EMRIL ETIHAD CONTRACT FM firm Emrill has won a five year facilities management contract for Etihad Airways, which will incorporate the airline’s headquarters, training academy, residential buildings, terminal offices, sales shops and kiosks in Abu Dhabi, Dubai and Al Ain. Specialist services in the contract will include the maintenance of generators, signage, elevators, swimming pools and landscaping, among other unique services.

HANSGROHE REV LEAP SENSORY SKY SHOWER Dornbracht has introduced a shower that creates a feeling of “showering in the open air”, with fields for head sprinkler, body sprinkler and rain curtain, a cold-water fog nozzle and light and fragrance functions. Fragrances are produced using high-quality natural essential oils and balms in co-operation with Kemitron, a specialist for spa and wellness fragrances.

Bathroom fitting specialists Hansgrohe Group recorded a 5.4% revenue growth YoY, buoyed by strong sales in the Middle East.

“Our outlook for the remaining 2013 is sound, and we are already receiving much interest in the arrival of Axor Organic, so we are very excited about the year ahead,” commented ME sales director Dirk Schilmoeller.

NESPRESSO CHEF ACADEMY Nespresso coffee experts hosted an evening academy for chefs last month to educate on the concept of harmonising coffee flavours from around the world with different foods.

Covering food harmonisation, using coffee as an ingredient and tips on how to be a coffee connoisseur, it’s the first such event in the Middle

East, following similar successful academies in New York and Europe.

The Academy has been developed to offer chefs in high end gastronomy an in-depth knowledge of not only creating and preparing recipes with coffee, but also a greater appreciation of the sommelier side of coffee expertise.

NOR1 INC I.T. CONTRACT WITH KEMPINSKI HOTELS Kempinski Hotels has entered into a contract with Nor1 Inc to to provide its data-driven upsell platform to its entire 80 property portfolio.

“This agreement underscores Kempinski’s commitment to our guests and to innovation,” said Riko van Santen, VP of digital strategy and distribution for Kempinski Hotels. “Nor1’s dynamic, data-powered upsell offers are as unique as every Kempinski hotel, and tailor-made for each of our guests.”

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Kempinski Hotels will immediately begin roll out of Nor1’s signature eStandby Upgrade™ at its properties as diverse as Hotel Adlon Kempinski Berlin, Emirates Palace Abu Dhabi, The Stafford London by Kempinski, or the Kempinski Grand Hotel des Bains in St. Moritz. Guests will receive exclusive eStandby Upgrade offers when they book directly with www.kempinski.com for upgrade deals on suites, spa treatments, and other hotel services.

FARNEK ACCREDITATION UAE-based FM firm Farnek Avireal has been accredited by BICSc, The British Institute of Cleaning Science.

Farnek’s core team are now official BICSc Assessors and can train and assess all of the cleaning staff at the company and certify them together with BICSc. Farnek works extensively with the hospitality industry and is currently supporting a research project to establish a sustainability benchmark for hotels in Dubai.

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HOSPITALITY BUSINESS MIDDLE EAST / 43

SPECIAL FEATURE

A key differentiator in an increasingly competitive market, technology is now part of the 5-star service. But with so many conflicting trends, where can hotels put their money for the greatest ROI?

44 / HOSPITALITY BUSINESS MIDDLE EAST

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SPECIAL FEATURE

More guests are demanding the infrastructure that will allow them to bring their own entertainment when they travel.

TIPPED TO BE THE NEXT BIG THING: BYOD, BYOC AND BYOS The concept of travelling with your own device, content and/or services, was last year likened to being a ‘force of nature’, by global tech authority, Wired magazine. It was advised that businesses across all industries and sectors would have to tame this force in order to keep their own systems, and therefore data, safe. But from the consumer point of view, little has been more exciting over the last decade and today, in direct response to demand, hotels are finding themselves upping tech infrastructure capabilities so

guests can continue to listen to the same music, watch the same shows and enjoy the same quality of entertainment, as they do at home.

TECH TRUTH If bring your own content and devices takes off, would this reduce the need for the hotelier to provide TV and IT hardware? And could it reduce the need for TV packages to be available in guest rooms?

“We do see more and more hotels providing docking stations for guest

JULY 2013

devices, but we are not necessarily seeing BYOC as competition for the packages we provide,” says Maaz Sheikh, from business development at OSN, which retains a 95% penetration of the 4- and 5-star market in the MENA region.

“Guests still need live news and sports and there is still a need for documentary channels.

“BYOC works for movies for music as an alternative for guests that don’t want to spend on pay per view TV, but we don’t see it replacing traditional services,” he adds.

HOSPITALITY BUSINESS MIDDLE EAST / 45

CATEGORIES Best Hotel Spa Award Best Destination Spa Award Signature Facial Treatment Award Signature Body Treatment Award Best Day Spa Award Spa Marketing Award Spa Therapist Award Spa Design Award Spa Manager Award Green Initiative Award

The Middle East Spa Awards, is the perfect opportunity to put your brand in front of an audience of hundreds of leading spa and wellness professionals.

NEW Best Men’s Spa Best Massage Treatment

Sponsorship opportunities available include: Headline Sponsorship, Associate Sponsorship, Category Sponsor and Reception Sponsor.

The exclusive ceremony, at a luxury hotel in Dubai, celebrates excellence in the Middle East’s Spa and Wellness industry across 12 awards; including two brand new categories, Best Men’s Spa and Best Massage Treatment. The event is a great way to put your brand or product in the hands of key industry figures, plus benefit from the wider promotion of the event as part of the visitor marketing campaign, to the audiences of both The Leisure Show and The Hotel Show.

To discover the full range of promotional benefits available to you, please visit www.thehotelshow.com/MESPA or call +971 4 438 0355

@thehotelshow facebook.com/thehotelshow Official Media Partner

SPECIAL FEATURE

TIPPED TO BE THE NEXT BIG THING: ‘FREE’ WIFI It may seem as necessary as the hotel bathroom in today’s tech-obsessed age, but many hotels still charge for in-room WiFi. It’s a situation that currently puts many hoteliers, specifically those in properties aimed at the business traveller, in a difficult position.

How necessary is it to the guest experience to include free internet?

If guests do not have to pay for their bandwidth, will they be more likely to clog the network by downloading large files? Will charging deter this habit and prevent other users from having to endure overloaded systems?

TECH TRUTH The cost of providing in-room WiFi to even a small hotel could cripple the bottom line of many operators, including the independent, unbranded, mid-market, dependent on upselling additional services,

which generally includes WiFi. The ability to offer free guest internet in this respect begins to put this ‘added extra’ into the realms of 5-star service, but as one 5-star property GM explains, the cost of providing free internet in public areas is high enough, without factoring in the cost of in- room WiFi. “This isn’t a business issue, rather than a leisure issue. The number of devices that even families travel with means that hotels would have to increase their broadband offerings substantially to meet their needs, while ensuring other guests receive a decent level of service, too,” says Mark McCarthy, GM of Al Ghurair Rotana, Dubai. “We are stuck between increasing an already monstrous bandwidth – at a cost to us and the guests – or allowing everybody to use the service for free, but compromising the quality of that service overall,” he adds.

Free WiFi even in guest areas can place a great burden on hotel budgets

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JULY 2013

HOSPITALITY BUSINESS MIDDLE EAST / 47

special feature

Tipped to be the next big thing: Widescreen plasma TV For the consumer, the size and weight of TVs has been a major talking point of late as manufacturers bring out ever bigger, ever thinner products. But the really urgent infrastructure upgrade that should be taking the market’s attention is the HD capability of the content delivery systems. From IPTV – TV services delivered via internet, rather than cable, satellite or transmission signals – to internal cabling systems for high demand users, while the flash might be the display point, the mechanism is the part that requires the greatest investment.

Tech truth

“IPTV is where hotels can really add value for guests, by providing images and that are a higher quality, facilitating BYOC and delivering movies and other content ‘on

demand’,” comments Sheikh, while identifying the main barrier to this technology as being the high upfront costs required. “One other key consideration is the delivery of HD channels to guest rooms, and for that infrastructure has to be

up graded. Again, businesses don’t want to commit with a huge upfront payment, which is why we bundle the channels and infrastructure so that hotels have the choice to pay for both over three or four years,” he adds.

expert eyes Lilia Koleva DoR, Westin Abu Dhabi

Technology integration is a game changer in the industry.

Today we are looking seriously at more sophisticated systems and the ability to provide interactive solutions that allow guests access and control of in-room entertainment, environmental controls, and communication and security features.

In the hospitality industry, inroom technology plays an important part in the guest experience and we must learn to adapt to the ever evolving changes in these areas.

Soon smart phone applications will replace the traditional check in and check-out experience and the need for magnetic card to access to

48 � hospitality business middle east

36-40 In room special.indd 48

a guestroom. Use of tablet devices as menus in restaurants is providing visual enhancements to the items being offered, already.

A luxury hotel’s primary challenge is differentiating itself from competing properties. We are not content to simply meet guest’s needs, we aim to anticipate them, in order to deliver customised service at every opportunity.

The way that we will achieve our goals is through an information and technology infrastructure that enables us to deliver superior service.

Salwan Finj regional sales and business development manager, Hospitality TV GCC, senior regional key account manager, hospitality TV, MEA

JUly 2013

Hoteliers can invest in the Integrated STB solution, to reduce TCO (Total Cost of Ownership) since the Set Top Box is integrated in the TV and there is no additional power socket (civil works) or power consumption needed. In addition, LG Hotel TV sets have an LED clock to further reduce TCO since the hotel would not need to invest in a bed-side alarm clock. They can provide a wake up alarm service using the LG Hotel TV along with the Pro:Centric V solution. This is a low cost solution where-by the hotel can deliver basic one way interactive services such as Channel Guide (EPG), hotel information, weather updates, maps and alarm. LG develops hospitality solutions that are easy to manage and reduce TCOs, helping to deliver enhanced services to the guest to increase sales and marketing activity. These services can also add a prestigious element of service to the guest in a user friendly way.

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7/2/13 1:09 PM

The Pro Chef ME magazine - the magazine for professionals

SASCHA TRIEMER, EXECUTIVE CHEF, ATLANTIS, THE PALM

MIDDLE EAST

Published by

If you work as a chef, restaurant manager, sommelier, banqueting manager or catering manager for a four or ďŹ ve star restaurant in the UAE, then apply for your free monthly copy of The Pro Chef Middle East, the magazine for ďŹ ne dining professionals.

For all advertisment related enquires please contact the following: Sales Director: Ankit Shukla ankit.shukla@cpimediagroup.com +971 55 2572807

Associate Publisher: Alex Bendiouis alex.bendiouis@cpimediagroup.com +971 50 458 9204

Read every monthly issue free of charge via: www.cpidubai/com

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APPOINMENT NEWS

“Keiy did a tremendous job in leading the operation in Alexandria and by rejoining Nile Plaza, we are confident that El Kiey’s passion and expertise will be instrumental in the Hotel continuing to lead the way in innovation and service.

“We look forward to welcoming Keiy back to Cairo,” Olivier Masson, said regional VP and GM of Four Seasons Hotel Cairo at Nile Plaza.

Mahmoud El Keiy

YAS ROTANA WELCOMES NEW EXECUTIVE CHEF

Appointment news The latest appointment and promotion news from the region DUSIT THANI DOSM German-born Julia Alvaro has joined Dusit Thani from Radisson Blu, Media City as director of sales and marketing.

With almost 20 years of international experience, Alvaro worked on the opening of

The Palace Old Town and Le Meridien Mina Seyahi, both in Dubai and has previously worked in the UK. “It is a pleasure to welcome Julia to the team. She brings with her a wealth of experience which will assist in the hotel’s goal of being the leading hotel in the Middle East,” Prateek Kumar, GM, said.

Chef Raghuprasad Pillai has been commissioned as the new Executive Chef of Rotana’s two properties on Yas Island, Centro Yas Island and Yas Island Rotana.

Formerly working for Jumeirah, Intercontinental and Le Meridien hotels, Chef Raghu was named Chef of the Year at the Salon Culinaire Middle East in 2003, and again in 2006. He was also awarded Sous Chef of the Year at the Caterer Awards in 2011.

The new Executive Chef wants to focus on cooking classic favourites with contemporary twists. He commented: “I want to revive that almost childlike enthusiasm and curiosity among my team, to make dishes that guests will remember and come back for.”

FOUR SEASONS CAIRO

Julia Alvaro.

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After 11 years with Four Seasons, Mahmoud El Keiy has been promoted to the position of hotel manager, Four Seasons Cairo at Nile Plaza.

Looking after overall operations, Keiy was formerly director of sales at the property. Keiy began his career with Hilton Hotels Egypt, moving from front office to sales before landing a role with Four Seasons Hotels.

JULY 2013

Raghuprasad Pillai

HOSPITALITY BUSINESS MIDDLE EAST / 51

JOB WATCH Jobs supplied by:

Job watch

departments as they relate to the service of the financial reporting and transactional BDDPVOUJOH PG UIF DPNQBOZ T 1BSUOFSTIJQT

Time to move on? We can help. All jobs can be applied for through the Hozpitality website HR & TRAINING MANAGER - DUBAI Industry: Hotels Clubs and Spas Department: Human Resources (HR) Level: Department Head, Middle Management Location: United Arab Emirates (UAE) Salary: Competitive Start Date: asap Recruiter: Ramada Downtown Dubai Description 3-5 years of similar experience in star hotels in UAE/Gulf t (PPE $PNQVUFS TLJMMT̓ t &YUSFNFMZ BDUJWF BOE QSPNQU̓ t "CMF UP TVTUBJO QSFTTVSF̓ t ( PPE EFMFHBUJPO TLJMMT BT QFS JOUFSOBUJPOBM hotel chain standards

HOTEL DIRECTOR (GENERAL MANAGER) Industry: Cruise lines/Ships, Hotels Clubs and Spas Department: General Management/ GM Level: Top Management Location: Worldwide, Americas North and South, Carribean, Europe, ME/GCC (Except UAE), United Arab Emirates (UAE) Salary Description: attractive salary and benefits Recruiter: Celebrity Cruises We are currently searching for Hotel Directors to join our team. Potential candidates must have at least five or more years in applicable management experience in a four or five star resort, hotel or cruise line. As an industry leader in service and innovation, we provide B XPSLJOH FOWJSPONFOU UIBU GPTUFST DBSFFS growth and development for our onboard team members.

All applicants must fulfill the following requirements: t )BWF UIF BCJMJUZ UP JOOPWBUF BOE QSPCMFN solve, transform both qualitative and quantitative data into actionable reports, plan and implement new initiatives that drive revenue. t 'JWF PS NPSF ZFBST PG NBOBHFNFOU experience in an upscale hotel or cruise ship t .VTU CF BCMF UP TQFBL SFBE BOE XSJUF

52 / HOSPITALITY BUSINESS MIDDLE EAST

MANAGER EMPLOYEE WELFARE Industry: Airlines, Travel Industry Department: Human Resources (HR) Level: Middle Management Location: United Arab Emirates (UAE) Salary Description: attractive salary and benefits Recruiter: Etihad Airways 0O DBMM PO B SPUBUJPOBM CBTJT EFBMJOH XJUI employee issues and well-being. Job purpose includes and is not exhaustive of managing high profile and confidential matters relating to individual employees welfare and leads the team who deal with minor level counseling and well-being issues, arrest and/ or imprisonment, death of an employee and bereavement support for family members.

Responsibilities

English clearly and distinctly t # BDIFMPS T EFHSFF JO IPTQJUBMJUZ management, business administration or related field from an accredited college or university is preferred t "QQMJDBOUT NVTU CF BCMF UP BDDPNNPEBUF B months on / 2 months off contract schedule t . VTU NFFU BMM QIZTJDBM SFRVJSFNFOUT including the ability to participate in emergency life-saving drills and training t "MM JOUFSOBUJPOBM BQQMJDBOUT NVTU IBWF UIF ability to obtain a C1/D1 Visa GROUP DIRECTOR OF HUMAN RESOURCESDUBAI Industry: Hotels Clubs and Spas, Restaurant/ Bars and cafÊ Department: Human Resources (HR) Level: Corporate /Group, Department Head, Top Management Location: ME/GCC (Except UAE), United Arab Emirates (UAE) Recruiter: Hozpitality Consulting 8F BSF MPPLJOH GPS B (SPVQ )3 %JSFDUPS "SBCJD national) for a hotel group to be based in Dubai.

The right candidate should have the following:t 4 JNJMBS FYQFSJFODF JO JOUFSOBUJPOBM IPUFMT preferably in UAE/Gulf. t ( PPE "SBCJD BOE &OHMJTI DPNNVOJDBUJPO TLJMMT BOE &YDFMMFOU (VFTU 3FMBUJPO 4LJMMT t 1PTJUJWF BUUJUVEF BOE XJMMJOHOFTT UP MFBSO and grow t -FCBOFTF 4ZSJBO .PSPDDBO +PSEBOJBO nationals preferred for this position. t 5IJT JT B WFSZ DPOGJEFOUJBM QPTJUJPO BOE POMZ the right candidate will be contacted.

CHIEF ACCOUNT Industry: Hotels Clubs and Spas Department: 'JOBODF BOE "DDPVOUT Level: Supervisory level Location: United Arab Emirates (UAE) Salary Description: Attractive Salary and Benefits Recruiter: The Royal International Hotel 8F BSF DVSSFOUMZ MPPLJOH GPS $IJFG "DDPVOUBOU to manage staff accountants and A/P

JULY 2013

HSE OFFICER (OFFSHORE LOCATION) Industry: $BUFSJOH $PNQBOJFT ̓'BDJMJUJFT Management, Hotels Clubs and Spas Department: Hygiene and Safety Level: Middle Management, Supervisory level Location: United Arab Emirates (UAE) Recruiter: ADNH Compass Middle East Complete responsibility for the highest level of sanitation and hygiene standards in the production facility. To ensure all food served to guests and employees are free from microbiological and physical DPOUBNJOBUJPO BOE BMM XPSL BSFBT DPOGJSN to minimum requirements set by the local health authorities. Responsible for Daily and periodic standards compliance monitoring in all departments, services within the units and ensuring that the agreed corrective, preventative actions are implemented

YOU MISS 100% OF THE SHOTS YOU DON’T TAKE,�

WAYNE GRETZKY

GOVERNMENT RELATIONS OFFICER Industry: Hotels Clubs and Spas Department: Administration and Secretary, Human Resources (HR) Level: Supervisory level Location: United Arab Emirates (UAE) Recruiter: Rixos Palm Jumeirah Must have at least 2 years experienced as a Government Relations Officer and have a solid CBDLHSPVOE PG 6"& WJTB QSPDFEVSFT BOE MBCPVS laws. Must have experienced in a 5-star hotel.

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TENDERS

Tel: (+971) 2 634 8495 www.EmiratesTenders.com

NEW TENDERS Client name: Qatar Petrochemical Company Limited (QAPCO) Address: 5th Floor, Al-Abdul Ghani Building City: Doha Postal/Zip Code: 756 Country: Qatar Phone: (+974) 444 4242 Fax: (+974) 432 4700/ 477 1346 eMail: information@qapco.com.qa Website: http://www.qapco.com Nature of work: Contract for supply of refreshment and towel roll items for a petrochemical company.

Cost of Tender Documents ($): 140 Last date of submission: July 11, 2013

Tenders All the latest information about the tenders you need to know about

Client name: Al Baha University (Saudi Arabia) Country: Saudi Arabia Website: http://www.bu.edu.sa Nature of work: Supply of restaurant equipment for a university.

Cost of Tender Documents ($): 135 Last date of submission: July 15, 2013 Client name: Ministry of Municipal Affairs & Agriculture (Qatar) Address: Intersection of B Ring Road & Najma Street City: Doha Postal/Zip Code: 820 Country: Qatar Phone: (+974) 433 7777 / 433 7414 / 4434 8070 / 4434 8888 Fax: (+974) 443 4727 / 433 9104 / 4443 0234 eMail: qpr@mmaa.gov.qa Website: http://www.mmaa.gov.qa Nature of work: Provision of hospitality services for a municipality.

Cost of Tender Documents ($): 85 VICEROY THE PALM, Last date of submission: July DUBAI 14, 2013

$272m

Client name: Department of Economic Development - DED (Abu Dhabi) City: Abu Dhabi Postal/Zip Code: 12 Country: United Arab Emirates Phone: (+971-2) 403 1000 /403 1308 Fax: (+971-2) 672 7749 Website: http://www.adeconomy.ae Nature of work: Price agreement for the supply of hospitality materials for a government authority.

Cost of Tender Documents ($): 140 Last date of submission: July 3, 2013

54 / HOSPITALITY BUSINESS MIDDLE EAST

JULY 2013

NEW AND CURRENT PROJECTS Project Name: Saadiyat Rotana Resort Description: Construction of 5-star Saadiyat Rotana Resort comprising (354) rooms and (13) beach villas.

Client Name: Rotana Hotels, Suites & Resorts (Abu Dhabi) Country: UAE Consultant: EC Harris International Limited (Abu Dhabi) Status: New Project Project Name: Red Sea Astrarium Theme Entertainment Resort Project Description: Development of Red Sea Astrarium theme entertainment resort comprising four world-class hotels, and expansive retail and dining district, a theatre, a 4D cinema, waterpark and an entertainment district that includes (16) entertainment attractions.

Client Name: Aqaba Special Economic Zone Authority - ASEZA (Jordan) Country: Jordan Consultant: Rubicon Group Holding (Jordan) Status: New Project

Project Name: Hotel Residences Tower Project Dubai Maritime City Development Description: Construction of a new luxury tower consisting of serviced hotel residences at Dubai Maritime City Development.

Client Name: Damac Properties (Dubai) Country: UAE Status: New Project Project Name: Crowne Plaza Oman Convention & Exhibition Centre Project Description: Construction of a hotel comprising (296) rooms featuring extensive meeting and event facilities with a separate function centre that will include a glamorous ballroom with terrace, a boardroom and three large meeting rooms.

Client Name: Oman Tourism Development Company S.A.O.C (Omran) Country: Oman Status: New Project Project Name: Viceroy Resort Project - Palm Jumeirah Description: Construction of Viceroy Resort comprising (481) rooms and (221) residences,

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TENDERS

including (10) restaurants, an 800-square-metre spa, a 350-square-metre gymnasium, a 106-metre swimming pool and a beach club.

Client Name: SKAI Holdings Ltd. (Dubai) Country: UAE Consultant: Palmer & Turner Architects & Engineers Limited (Dubai) Contractor: China State Construction Engineering Corporation (Dubai) Budget (USD): 272,000,000 Status: Current Project Project Name: Jabal Omar Area Development Description: Development of Jabal Omar area involving construction of five-star hotels, residential towers, retail concourse and a car park.

Client Name: Jabal Omar Development Company (Saudi Arabia) Country: Saudi Arabia Consultant: Hill International Middle East Ltd. (Saudi Arabia) Contractor: Rio Trading & Contracting Company (Saudi Arabia) Budget (USD): 5,100,000,000 Status: Current Project Project Name: Jabal Al Akhdar Resort Description: Construction of Jabal Al Akhdar Resort comprising (78) rooms, six suites and two royal villas along with a cliff-side restaurant, pool, spa, fitness centre and space for events.

Client Name: Oman Tourism Development Company S.A.O.C (Omran) Country: Oman Dawood Contracting L.L.C (Oman) Budget (USD): 35,000,000 Status: Current Project Project Name: St. Regis Amman Hotel & Residences Project Description: Construction of St. Regis Amman Hotel & Residences comprising (270) guestrooms, including (91) suites, four restaurants, a cafe, destination bar, pool and pool bar, fitness centre and signature spa along with (80) residences.

Client Name: Al Maabar Abdoun Real Estate Development Company (Jordan) Country: Jordan Consultant: KEO International Consultants (Jordan) Contractor: Arabtec Construction L.L.C (Jordan) Budget (USD): 300,000,000 Status: Current Project Project Name: Mixed-use Development Project Meydan City

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Description: Development of a mixed-use scheme comprising a shopping mall, villas, apartments and hotels.

Client Name: Sobha Group (Dubai) Country: UAE Budget (USD): 3,000,000,000 Status: New Project

Country: Qatar Consultant: Gensler Associates International (USA) Contractor: Hyundai Engineering Corporation (South Korea) Budget (USD): 6,000,000,000 Status: Current Project

Project Name: Commercial Tower Project - Bahrain Bay Development Description: Construction of a commercial tower comprising a ground floor and (47) upper floors, including a five-star hotel occupying (14) floors offering (260) guestrooms, over 500 square metres of meeting space and a 900 square metre ballroom.

Client Name: Cooperation Investment House BSC (Bahrain) Country: Bahrain Consultant: Arif Sadiq Design Consultants (Bahrain) Contractor: Ahmed Al Qaed Group (Bahrain) Budget (USD): PARAMOUNT HOTEL DUBAI PROJECT VALUE 55,000,000 Status: Current Project

Project Name: Damac Towers by Paramount Project - Downtown Dubai Description: Construction of Damac Towers by Paramount comprising a five-star hotel and branded serviced apartments.

Client Name: Damac Properties (Dubai) Country: UAE Budget (USD): 1,000,000,000 Status: New Project Project Name: Al-Waha Mixed-use Development Project Description: Development of AlWaha mixed-use scheme comprising residential, commercial and hospitality towers, a hotel, serviced apartments, a shopping mall, supermarkets, a cinema, including a health club.

Client Name: Al Maabar International Investments (Abu Dhabi) Country: Libya Consultant: RW Armstrong (Libya) Budget (USD): 200,000,000 Status: New Project

$1bn

Project Name: Marina Mall Project - Lusail Description: Build-operate-transfer (BOT) contract for the development of Marina Mall comprising two floors and ground floor, surrounded with a hotel as well as office and residential space.

Client Name: Mazaya Qatar Real Estate Development Company (Qatar) Country: Qatar Consultant: HOK International (Qatar) Budget (USD): 275,000,000 Status: New 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 (Qatar)

Project Name: Dragon Mart Expansion Project Description: Carrying out expansion of Dragon Mart by building 177,000 square metres of retail space, including a three-star hotel and multi-storey car park.

Client Name: Nakheel PJSC (Dubai) Country: UAE Contractor: Kele Contracting L.L.C (Dubai) Budget (USD): 273,000,000 Status: Current Project Project Name: Karbala Town Development Project Description: Development of a complete town comprising 40,000 housing units, hotels, schools, clinics and other facilities in the city of Karbala.

Client Name: National Investment Commission (Iraq) Country: Iraq Contractor: Bloom Properties (Abu Dhabi) Budget (USD): 3,500,000,000 Status: Current Project Project Name: Frontier Town Development Project Description: Development of Frontier Town, covering 29 hectares and comprising (446) homes, a shopping mall, a wholesale centre and a school.

Client Name: Oman Tourism Development Company.

JULY 2013

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COMMENT

Social Media Toolbox Hootsuite - a social media management tool allowing you to schedule posts, track your activity and ROI, and much more.

Mention - an online listening tool that allows you to see where your brand is being mentioned, to what audience, the content used and also provide you with a way to respond.

Five minutes with…

As Ramadan arrives, flash sales and limited offer promotions using social media will be vital to driving business, but how should these be managed for maximum impact? Digital marketing consultant Paul Parsons, of Edition Hospitality, shares his tips

H

ow can social media be used outside of pre-arranged marketing budgets?

Social Media is a platform that allows a hotel to be spontaneous in its marketing, something that cannot be achieved via traditional channels.

When pushing an offer or promotion via social media, it should be relevant to the recipients receiving it. For example, if the offer is targeted towards a family, then the image, hash tags and copy should be relevant to that demographic.

What kind of promotions is social media marketing specifically good for?

Most of your fans are fans because they have either been a customer before, plan to be a customer or are just a fan of the brand and so promotions that relate to this can be very affective.

Some hospitality brands already provide offers and promotions that are specifically for fans of their Facebook page, or followers of their Twitter account. These types of promotions are very well accepted by your social media following, as it provides them with something in return for being a faithful brand follower or ambassador.

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Which social media platforms are best suited to flash sales?

Using the social media platforms you have the strongest following on is usually the best place to start.

Factors such as the demographic you are trying to reach, also have a huge impact. If you are trying to reach a business audience, then perhaps LinkedIn is a more relevant platform.

Some platforms provide a very viral way to reach a wider audience, but also an easy way for customers to purchase such as Facebook offers.

Elaborate on this opportunity.

What are the benefits of using social media rather than daily deal sites?

Cost is probably the most important factor. Using your own network of customers via social media will allow you to provide a better rate as you are driving bookings direct, also they are your customers and fans, not bargain hunters and will therefore not lower the perception of your brand in the way a daily deal can.

Social media also provides you with an interactive and viral way to promote your offer, utilising core features of most social media platforms such as the like button,

Shortstack - an easy to use application builder for Facebook pages, providing you with a way to show more about your brand within Facebook, run incentives and competitions and provide a brand presence to your page. All applications mobile optimised.

share button or retweet, all of which spread your message further in a single click.

Turn around time for offers via social media is also a great benefit, especially when it is related to an F&B offer, as the promotion can be approved and posted within an hour.

What are the common mistakes hospitality brands make when communicating on SM? Not listening to their customers is one of the biggest mistakes. Social media is not another way to just push, push, push. It is a way to build and maintain relationships and communicate with your customers as well as potential customers.

Hospitality brands need to adopt more of a community manager approach to social media, instead of the current sales approach.

Content is possibly the most important part of communicating via social media; create content that reflects your brand, your offering and most importantly, content that your audience wants!

Hospitality brands should also look to user generated content as a part of their strategy and empower customers to share images, reviews and videos of their experiences, which in turn is then shared to your customers.

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