Hospitality Business ME | 2014 April

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SUSTAINABILITY SPECIAL ISSUE

FAIRTRADE HOSPITALITY !

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CONTENTS

44

NEWS & DATA 26

04. Editorial Board Introducing the industry experts advising on the magazine’s editorial agenda

06. News 09. Data 20. DTCM The latest news from Dubai’s Department

PROCUREMENT 20. It’s only fair... Analysing the supply chains and procurement practices, hotels and associations share their views on the rise of Fairtrade in hospitality

24. Green links The logistics of a greener supply chain, explained by the trader behind it

26. The green light ! most energy-intensive appliance, the light

32. Supplies & Services Product and service supply news from across the region

35. Supplier Spotlight industry suppliers

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INDUSTRY 36. GIBTM Stats and showfloor news from the Abu Dhabi MICE show

40. VP Spotlight Russel Sharpe, COO Citymax Hotels explains why the chain is to roll out ‘manchise’ contracts

44. Roundtable Debating how hospitality can be greener,

54. On the cover EGBC board member Amelie Zegmout change regional hospitality

60. Trend talk Commentary from across the industry on sustainable travel and interiors, Jebel Ali Golf Resort’s bio garden and F&B revenues

Hyatt’s John Beveridge on openings,

Behind the role of DOSM

APRIL 2014

2

PUBLISHING PANEL

PUBLISHER

DIRECTOR OF SALES BUSINESS DIVISION

DOMINIC DE SOUSA

SARAH MOTWALI sarah.motwali@cpimediagroup.com D: +971 04 440 9113 M: +971 (0) 50 678 6182

GROUP CEO NADEEM HOOD

COO

SALES MANAGER HOSPITALITY BUSINESS ME

GEORGINA O’HARA

EDITORIAL

GROUP DIRECTOR OF EDITORIAL PAUL GODFREY paul.godfrey@cpimediagroup.com D: +971 04 440 9105

ASSOCIATE PUBLISHER HOSPITALITY DIVISION DAVE REEDER dave.reeder@cpimediagroup.com M: +971 (0) 55 105 3773

JULIE CAULTON Email: Julie.Caulton@cpimediagroup.com D: +971 04 440 9112 M: +971 (0) 56 778 9793

PRODUCTION MANAGER, HOSPITALITY DIVISION VA DEVAPRAKASH

WEB DEVELOPER, HOSPITALITY DIVISION LOUIE ALMA

GROUP MANAGING EDITOR MELANIE MINGAS melanie.mingas@cpimediagroup.com D: +971 04 440 9152

DISTRIBUTION MANAGER ROCHELLE ALMEIDA

PRINTED BY

ASSISTANT EDITOR

Printwell Printing Press LLC, Dubai, UAE

SOPHIE MCCARRICK sophie.mccarrick@cpimediagroup.com D: +971 04 440 9150

PUBLISHED BY

SENIOR GRAPHIC DESIGNER CHRIS HOWLETT

PHOTOGRAPHY ANAS CHERUR JAY COLINA

Dubai, UAE D: +971 4 440 9100

ADVERTISING

GROUP SALES DIRECTOR CAROL OWEN carol.owen@cpimediagroup.com M: +971 (0) 55 880 3817

! " # $%& A publication licensed by IMPZ © Copyright 2014 CPI. All rights reserved.

In association with...

APRIL 2014

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EDITOR’S LETTER

THE URGENT AND THE IMPORTANT

A

t a recent lecture series held in Dubai, it was put to the audience that today’s modern world has a conflicting approach

to progress. The tasks we engage in day to day don’t align with the long term goals we seek to achieve. It’s a pattern common to our personal lives as well as the wider aspirations of science, leadership and on occasion government. The idea struck a chord, as the observation is no truer than in the realm of sustainability. Consider: The world has long been aware of the impending complications of dwindling energy resources, rising carbon and sea levels, poor construction standards, a disposable culture in everything from electronics to clothes.

name of a more secure geo-political and social future, many ignored the warnings, refusing immediate investment in change and placing the onus much higher in the chain than any of us can reach. Too consumed with the urgent, they ignored the important. As the legacy of these decisions unfolded over the previous three years, people in ever greater numbers began to demand change in the banking system; the way their waste is processed and their food is sourced; and changes in how energy premiums are invested. Demand rose for organic and Fairtrade produce, a new currency

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was invented and the first sustainably sourced ‘fair trade’ smart phone came to market. Over the coming five years these developments will be key. Power – and with it responsibility – is now shifting from governments into the hands of the consumer and the businesses and service providers they procure from. As a result, it is now the role of private business to lead change, listen to the end users and mobilise its decision makers and budgets in a way that governments – embroiled in deep political and economic issues – no longer have the freedom to do. In business, the future won’t be survival

made through education, retrofit, and forging new and mutually beneficial in the new economy – one built with technology, innovation and invention – the greatest demand needs to be placed on how to achieve these goals while reducing to as near to the point of zero as possible, our environmental impact on the earth. And that begins with you. You and your choice to operate a hospitality asset in the most efficient and holistically sustainable way possible. MELANIE MINGAS GROUP MANAGING EDITOR

APRIL 2014

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4

EDITORIAL BOARD

THE INDUSTRY EXPERTS SHAPING YOUR MAGAZINE Hospitality Business magazine’s top industry contacts who assist in guiding the direction of the magazine to create the most relevant content possible

Christopher Hartley CEO, Global Hotel Alliance Chris Hartley is CEO of Global Hotel Alliance (GHA), an organisation based on a business model similar to that of the airline alliances. Chris was one of the pioneers behind the launch of GHA in 2004, and since 2006 he has overseen its development into the world’s largest alliance of independent hotel brands. Today GHA has 23 member brands and over 420 hotels in 63 countries.

Mark Fraser Managing Partner, Taylor Wessing Mark Fraser is Managing Partner of Taylor Wessing (Middle East) LLP and head of its construction and dispute resolution practices. Mark has advised on a range of development and infrastructure projects in the Middle East, Asia and Europe covering the hotel and entertainment, transportation and energy sectors.

Karyn Williams-Sykes Director of Professional Training and Development, The Emirates Academy of Hospitality Management In the past six years in professional training and development, Williams-Sykes has designed, developed and delivered a wide range of soft skills training to many organisations, both within and beyond the hospitality industry and holds an MBA from the University of Leicester.

Tatjana Ahmed Chair and founding member, UAE Professional Housekeepers Group and executive housekeeper Grand Hyatt Dubai Tatjana Ahmed is a member of the Council of Experts for Hyatt International, assisting hotels in the South/West Asia region during the pre-opening stage to set up the Housekeeping Department and implement brand and procedural standards. An award winning housekeeper, Ahmed is the founding member of the UAE Professional Housekeepers Group.

Martin Kubler Founder, Iconsulthotels FZE Martin Kubler is a hotel GM turned hospitality and service industries consultant with more than 15 years’ executive-level management experience in 3-,4-, and 5-star hotels in Europe and the Middle East. Martin runs Iconsulthotels FZE, an ultra in assisting small and medium hospitality and service industries companies and international hospitality and service industries professionals.

Fabian Schmittmann President, AICR Dubai Section Fabian Schmittmann leads the Association

Managers of 4- and 5-star hotels. Founded in 1964 it has developed into an international fellowship with sections in 18

! " #$% founded in 2005 and has grown to become & ' * % Division Executives working and living in the city. Schmittmann is also Director of Front + "

APRIL 2014

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6

NEWS

1 / New global Emirati hospitality brand 2@L@X@ (MSDQM@SHNM@K AT #G@AHŗR ƥQRS $LHQ@SH NVMDC @MC L@M@FDC ANTSHPTD SNTQHRL @CUHRNQX ƥQL HR SN HMSQNCTBD @M $LHQ@SH GNROHS@KHSX AQ@MC SN CDATS HM +NMCNM -DV 8NQJ 2@N /@TKN @MC NSGDQ L@INQ BHSHDR VHSGHM SVN XD@QR $MBNLO@RRHMF SQ@CHSHNM@K $LHQ@SH SGDLDC % ! @BBNLLNC@SHNM @MC DMSDQS@HMLDMS Ŕ VHSG TO SN @ $LHQ@SH RS@Ƥ Ŕ SGD AQ@MC VHKK DWONQS SGD 4 $ŗR BTKSTQ@K ENTMC@SHNMR SN L@INQ BHSHDR 6GDQD@R 4 $ AQ@MCR RTBG @R )TLDHQ@G @MC 1NS@M@ NODQ@SD HM OQDCNLHM@MSKX HM SGD 4 $ VHSG VDRSDQMHRDC 2./R 2@L@X@ŗR MDV BNMBDOS VHKK S@JD @M DMSHQDKX CHƤDQDMS @OOQN@BG @KSGNTFG ETQSGDQ CDS@HKR @QD BKNRDKX FT@QCDC 2OD@JHMF DWBKTRHUDKX SN 'NROHS@KHSX !TRHMDRR L@F@YHMD ENTMCDQ @MC "$. KH GLDC K 'NR@MH VGN V@R @KRN NM SGD ENTMCHMF SD@L ENQ AT #G@AH 3# @MC 3#(" R@HC ř3GD KDF@BX NE $WON HR MNS ITRS SGD HMSDFQ@SHNM NE $LHQ@SH GNROHS@KHSX HMSN SGD KNB@K VDRSDQMHRDC GNROHS@KHSX HMCTRSQX ATS SGD DWONQS NE SGNRD SQ@CHSHNMR SN SGD QDRS NE SGD VNQKC Ś

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3GD ETKK HMSDQUHDV VHSG KH GLDC K 'NR@MH VHKK QTM HM ,@X HRRTD NE 'NROHS@KHSX !TRHMDRR L@F@YHMD

2 / Fly Dubai adds Moscow #DROHSD SGD QDRS NE SGD VNQKC DWOQDRRHMF QDRDMS SNV@QCR 1TRRH@ %KX #TA@H G@R @MMNTMBDC OK@MR SN RBGDCTKD C@HKX ƦHFGSR SN ,NRBNV "$. &G@HSG K &G@HSG R@HC ř6D @QD OKD@RDC SN @MMNTMBD SGD K@TMBG NE CHQDBS ƦHFGSR SN 1TRRH@ŗR B@OHS@K L@QJHMF SGD @HQKHMDŗR BNLLHSLDMS SN NMD NE HSR JDX L@QJDSR 3GHR MDV QNTSD VHKK NƤDQ ANSG ATRHMDRR @MC KDHRTQD SQ@UDKKDQR FQD@SDQ BGNHBD VGDM SGDX SQ@UDK ADSVDDM #TA@H @MC ,NRBNV Ś %KX #TA@HŗR QDK@SHNMRGHO V@R RSQDMFSGDMDC HM VGDM ENTQ BHSHDR VDQD @CCDC SN HSR 1TRRH@M HSHMDQ@QX *Q@RMNC@Q ,HMDQ@KMXD 5NCX 1NRSNU NM #NM @MC 5NKFNFQ@C ,NRBNV L@QJR SGD MHMSG @CCHSHNM

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3 / Mövenpick regional expansion detailed 3TQJDX ,NMFNKH@ ,NQNBBN $FXOS @MC /@JHRS@M @QD @KK D@QL@QJDC ENQ ,±UDMOHBJ 'NSDKR @MC 1DRNQSRŗ QDFHNM@K DWO@MRHNMR "NLLDMSDC SGD BNLO@MXŗR /QDRHCDMS @MC "$. )D@M &@AQHDK /¤Q£R ř"NMRHCDQDC NQF@MHB FQNVSG G@R ADBNLD @ G@KKL@QJ NE ,±UDMOHBJ 'NSDKR @MC 1DRNQSR @MC SGDRD RSTMMHMF MDV OQNIDBSR HKKTRSQ@SD SGHR OGHKNRNOGX ODQEDBSKX Ś 3GD OK@MR HMBKTCD @ RDBNMC S@JD NUDQ HM /@JHRS@M @ ŖGNSDK VHSGHM @ GNSDKŗ HM $FXOS OHBSTQDC VGHBG QDBDMSKX NODMDC VHSG QNNLR SVN OQNODQSHDR HM ,NQNBBN @ MDV L@M@FDLDMS BNMSQ@BS HM ,NMFNKH@ EQNL @MC @ ENTQSG OQNODQSX HM 3TQJDX VGHBG HR OK@MMDC VHSG @ K@QFD MTLADQ NE RTRS@HM@AHKHSX DKDLDMSR

APRIL 2014

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hospitalitybusinessme.com

NEWS

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APRIL 2014

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FIGURES

IN FIGURES

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APRIL 2014

9

10

GLOBAL DATA

GLOBAL PERFORMANCE

Global hotel performance analytics from STR Global, February 2014 ($) OCC%

ADR

REVPAR

% CHANGE FROM NOV 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Middle East/Africa

67.4

66.5

177.42

172.84

119.55

114.92

1.3

2.7

4.0

Middle East

76.1

74.0

218.20

212.37

166.05

157.19

2.8

2.7

5.6

Northern Africa

45.2

47.0

79.01

81.70

35.70

38.36

-3.8

-3.3

-6.9

Southern Africa

66.2

66.9

132.74

138.51

87.91

92.71

-1.1

-4.2

-5.2

OCC%

ADR

REVPAR

% CHANGE FROM NOV 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

67.1

62.1

125.03

131.05

83.88

81.35

8.1

-4.6

3.1

Central & South Asia

69.8

68.2

139.33

157.35

97.30

107.32

2.4

-11.5

-9.3

Northeastern Asia

63.0

55.0

106.33

108.41

67.04

59.60

14.7

-1.9

12.5

Southeastern Asia

73.1

74.6

149.30

144.93

109.16

108.18

-2.0

3.0

0.9

Australia & Oceania

77.9

76.2

163.38

178.61

127.20

136.08

2.2

-8.5

-6.5

OCC%

ADR

REVPAR

% CHANGE FROM NOV 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Europe

60.8

58.8

131.03

121.98

79.61

71.72

3.3

7.4

11.0

Eastern Europe

49.3

48.7

111.88

116.24

55.12

56.64

1.1

-3.8

-2.7

Northern Europe

69.2

66.4

129.08

114.20

89.31

75.84

4.2

13.0

17.8

Southern Europe

55.7

53.2

125.14

118.02

69.71

62.77

4.7

6.0

11.1

Western Europe

58.8

57.4

141.71

135.27

83.26

77.65

2.4

4.8

7.2

OCC%

ADR

REVPAR

% CHANGE FROM NOV 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Americas

60.6

58.7

114.90

111.40

69.58

65.34

3.2

3.1

6.5

North America

60.3

58.4

112.58

108.86

67.91

63.56

3.3

3.4

6.8

Caribbean

77.3

77.4

240.34

225.66

185.86

174.76

-0.1

6.5

6.3

Central America

67.7

68.4

126.49

123.80

85.61

84.72

-1.1

2.2

1.0

South America

62.2

59.6

139.70

150.29

86.89

89.60

4.3

-7.0

-3.0

APRIL 2014

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11

GLOBAL DATA

2,049 hotels 453,790 rooms

STR Global: February pipeline snapshot Rooms under construction, supply growth (%)

Shanghai, China,

8,560 rooms

Manila, Philippines

6,405 rooms

Delhi-NCR, India

5,721 rooms

Jakarta, Indonesia

5,634 rooms

Chengdu, China

5,088 rooms

Bali, Indonesia

4,686 rooms

Caribbean/ Mexico

152 hotels 25,850 rooms

Europe

864 hotels 140,114 rooms

Mexico

5,395 rooms

Bahamas

2,706 rooms

Manchester, UK

3,751 rooms

+26.9% supply growth

Dominican Republic

1,747 rooms

Moscow, Russia

9,286 rooms

+23.7%

Puerto Rico

449 rooms

Baku, Azerbaijan

710 rooms

+19.0%

Jamaica

368 rooms

Istanbul, Turkey

6,089 rooms

+15.1%

London, UK

17,594 rooms

+14.9%

MEA

504 hotels 122,631 rooms

Americas

319 hotels 51,482 rooms Upscale

11,908 rooms

+23.1%

Midscale segment

10,936 rooms

+21.2%

Upper Midscale

10,513 rooms

+20.4%

Luxury

3,104 rooms

+6%

hospitalitybusinessme.com

Saudi Arabia

17,135 rooms

United Arab Emirates

16,627 rooms

Qatar

5,633 rooms

Jordan

3,231 rooms

Egypt

2,966 rooms

APRIL 2014

Material supplied by

12

JOBS

JOB WATCH

buildings within the hotel resort.

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ADDITIONAL DETAILS: An

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START DATE: ASAP

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APRIL 2014

DIRECTOR OF SALES

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JOBS

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training manager is required for an

engagement manager is required

ADDITIONAL DETAILS:

LOCATION: United Arab Emirates

international hotel in Doha, Qatar.

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INDUSTRY: Hotels Clubs and Spas

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hospitalitybusinessme.com

the same role and three years of

APRIL 2014

14

TENDERS

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

COUNTRY : UAE : 50,000,000 STATUS : New Project

TENDERS

NAME : Nizwa Grand Mall Project DESCRIPTION : Construction of a Shopping Mall comprising restaurants, entertainment

All the latest tenders information you need to know about

and children’s play areas and many shops, in addition prayer room, toilets and other facilities. CLIENT : Ministry of Defence (Oman) COUNTRY : Oman CONSULTANT : Amjaad Consultancy (Oman) CONTRACTOR : Amjaad Contracting (Oman) STATUS : Current Project NAME : Mall of Qatar Project DESCRIPTION : Construction of a new shopping mall comprising three storeys featuring a department stores and at least 20 restaurants, in addition to a car park with capacity to accommodate (7,000) cars. CLIENT : Private Investor (Qatar) COUNTRY : Qatar CONTRACTOR : UrbaCon General Contracting (Qatar) STATUS : Current Project NAME : City Walk Project - The Avenue Development - Phase

NEW & CURRENT PROJECTS

eco-tourism in Kalba

COUNTRY : Saudi Arabia

NAME : Vida Residence Project -

CLIENT : Sharjah Investment

CONSULTANT : Faisal Al-Ansari

DESCRIPTION : Construction,

The Hills

& Development Authority

Contracting (Saudi Arabia)

commissioning, testing and

STATUS : New Project

completion of a high-quality

2

DESCRIPTION : Construction of

(Shurooq)

(136) serviced apartments.

COUNTRY : UAE

CLIENT : Emaar Properties PJSC

: 136,000,000

NAME : DoubleTree by Hilton

development covering an area of

(Dubai)

CLIENT : New Project

Hotel Project - Masdar City

over one million square feet.

DESCRIPTION : Construction of

CLIENT : Meraas Development

COUNTRY : UAE

family entertainment and retail

CONSULTANT : Design &

NAME : Hilton Garden Inn Hotel

(Dubai)

Architecture Bureau - DAR

Project - Al Jubail

rooms, including ample meeting

COUNTRY : UAE

(Dubai)

DESCRIPTION : Construction

and event space, a business

CONTRACTOR : Al-Futtaim

: 120,000,000

centre and a wide choice of bars

Carillion (Dubai)

STATUS : New Project

(125) rooms featuring a range

and restaurants along with an

: 250,000,000

outdoor pool, health club and a

STATUS : Current Project

NAME : Kalba Eco-tourism

center and an outdoor pool.

spa.

Project

CLIENT : Hilton International

CLIENT : Hilton International

NAME : Golf Course Project -

DESCRIPTION : Development of

(Dubai)

(Dubai)

King Abdullah Economic City

APRIL 2014

hospitalitybusinessme.com

15

TENDERS

Construction of a new Golf

of a four-star hotel comprising

Course.

DESCRIPTION : Emaar The

apartments and retail shops.

NAME : Sultan Qaboos University

NATURE OF WORK : Provision of

Economic City (Saudi Arabia)

CLIENT : Dubai Real Estate

(Oman)

Cooked Food Services.

COUNTRY : Saudi Arabia

Corporation (DREC)

ADDRESS : Al Khod

COST OF TENDERS : ($) 800

CONSULTANT : European Golf

COUNTRY : UAE

CITY : Muscat PC 123

LAST DATE OF SUBMISSION :

Design (United Kingdom)

CONSULTANT : National

50

April 23, 2014

: 12,000,000

Engineering Bureau (Dubai)

COUNTRY : Oman

STATUS : New Project

CONTRACTOR : Al-Ahmadiah

PHONE : (+968) 2451 3333/ 2451

NAME : Salalah Methanol

Contracting & Trading Company

5081 / 2414 1111

Company L.L.C (Oman)

NAME : New Doha Zoo

(Dubai)

FAX : (+968) 2451 3158/ 2451

ADDRESS : Suite # 4, Ground

Project

: 20,000,000

3013 / 2441 3391

Floor, Shati Al Qurum

DESCRIPTION : Construction of

STATUS : Current Project

WEBSITE : http://www.squ.edu.

CITY : Muscat 38800

om

COUNTRY : Oman

a new Zoo, covering an area of

March 30, 2014

WEBSITE : http://www.moh.gov. sa

750,000 square metres.

NAME : Sabah Al Ahmad Future

NATURE OF WORK : Supply of

PHONE : (+968)2440 0200

CLIENT : Public Works Authority -

City Project

Hiball Glass (Water-8oz), Juice

FAX : (+968) 2440 0298

ASHGHAL (Qatar)

DESCRIPTION : Development

Glass, Tea Cups and Saucers,

EMAIL : sales@salalahmethanol.

COUNTRY : Qatar

of Sabah Al Ahmad Future City

etc.

co.om

CONSULTANT : Mace

involving construction of a 35

LAST DATE OF SUBMISSION :

WEBSITE : http://www.

International (Qatar)

million square metre community

March 30, 2014

salalahmethanol.com

: 63,000,000

comprising universities, schools,

STATUS : New Project

hospitals, residential units,

NAME : Red Crescent Society

Catering Services.

commercial buildings, including

(Abu Dhabi)

LAST DATE OF SUBMISSION :

NAME : Staybridge Suites Al

associated infrastructure

CITY : Abu Dhabi

April 2, 2014

Khobar Hotel Project

such as roads, a ring road,

3324

NATURE OF WORK : Provision of

DESCRIPTION : Construction of a

sewage, water, electrical

COUNTRY : United Arab Emirates

NAME : Ministry of Interior (Saudi

Hotel comprising (189) rooms.

and telecommunications

PHONE : (+971-2) 641 9000

Arabia)

CLIENT : InterContinental Hotels

networks.

FAX : (+971-2) 642 0101

ADDRESS : Al Washm Street,

Group (UK)

CLIENT : Public Authority for

NATURE OF WORK : Supply of

CITY : Riyadh 11134

COUNTRY : Saudi Arabia

Housing & Welfare (Kuwait)

Iftar Meals, including rental of

2933

STATUS : NewProject

COUNTRY : Kuwait

tents during the Holy Month of

COUNTRY : Saudi Arabia

CONSULTANT : Turner Projacs

Ramadan.

PHONE : (+966-1) 401 1944 /

NAME : Crowne Plaza Hotel

(Kuwait)

COST OF TENDERS : ($) 140

401 1111

Project - Dubai Marina

CONTRACTOR : Mubarak Al-

LAST DATE OF SUBMISSION :

FAX : (+966-1) 403 1185

April 13, 2014

WEBSITE : http://www.moi.gov.

DESCRIPTION :

Hajraf General

Construction

Trading &

of a new Hotel

Contracting

NAME : Ministry of Education

NATURE OF WORK : Operation

Establishment

(Dubai)

and Execution of Buffet.

(Kuwait)

CITY : Dubai

COST OF TENDERS : ($) 55

:

3962

LAST DATE OF SUBMISSION :

27,000,000,000

COUNTRY : United Arab Emirates

April 6, 2014

STATUS : Current

PHONE : (+971-4) 217 6899

Project

FAX : (+971-4) 263 8194

NAME : Ministry of Health (Oman)

EMAIL : moe@moe.gov.ae

ADDRESS : Opp. Khoula Hospital,

comprising 2 basement levels, a marina level,

$200m City Walk Project,

phase 2 Meraas

Development

offering (280) rooms.

sa

CLIENT : RP International

NEW TENDERS

WEBSITE : http://www.moe.gov.

Bldg. No. 105

(Dubai)

NAME : Oman National Transport

ae

CITY : Muscat PC 113

COUNTRY : UAE

Company

NATURE OF WORK : Management

393

CONSULTANT : National

ADDRESS : Azaiba

of Canteens in Government

COUNTRY : Oman

Engineering Bureau (Dubai)

CITY : Muscat PC 112

Schools.

PHONE : (+968-24) 602 177

CONTRACTOR : Gulf Asia

620

LAST DATE OF SUBMISSION :

FAX : (+968-24) 602 647

Contracting Company L.L.C

COUNTRY : Oman

April 7, 2014

WEBSITE : http://www.moh.gov.

(Dubai)

PHONE : (+968) 590 046/ 592

STATUS : Current Project

948

NAME : Riyadh Health Affairs

NATURE OF WORK : Provision of

FAX : (+968) 590 152/ 591 791

(Saudi Arabia)

Catering Services for a Hospital.

NAME : Hyatt Palace Hotel

NATURE OF WORK : Provision of

CITY : Riyadh

COST OF TENDERS : ($) 65

Apartments Project - Baniyas

Catering Services.

COUNTRY : Saudi Arabia

LAST DATE OF SUBMISSION :

Square

NATURE OF WORK : 80

PHONE : (+966) 1450 7255

March 30, 2014

DESCRIPTION : Construction

LAST DATE OF SUBMISSION :

FAX : (+966) 1450 5089

hospitalitybusinessme.com

om

APRIL 2014

16

MEA DATA

STR Global: MEA February 2014 results MEA occupancy up 2.7% with RevPAR up 4% to $119.55

T

he Middle East/Africa region reported positive performance results during February 2014 when reported in U.S. dollars, according to data compiled by STR Global. The region reported a 1.3% increase in occupancy to 67.7%, a 2.7% increase in average daily rate to $177.42 and a 4.0% increase in revenue per available room to $119.55. “The Middle East still is driving performance in the region”, said Elizabeth Winkle, managing director of STR Global. “Jordan, Oman and Saudi Arabia are all posting both occupancy and ADR growth (in local currency). Jordan and Bahrain are reporting the largest occupancy growth. Dubai is still reporting high occupancy; the new supply coming in is being absorbed and we are seeing double-digit rate growth”. Highlights among the Middle East/Africa region’s key markets for February 2014 include (year-over-year comparisons, all currency in U.S. dollars): t Three markets reported double-digit occupancy growth: Manama, Bahrain (+39%to 63.2%); Doha, Qatar (+13.9 % to 76.9%); and Amman, Jordan (+10.2 % to 59.3%). t Beirut, Lebanon, fell 25.2 % in

occupancy to 39.4%, posting the largest decrease in that metric. The market also reported the largest decrease in RevPAR, falling 31.4 % to $55.61. t Dubai, United Arab Emirates, achieved the largest ADR increase, rising 9.7 %to $286.99.

t Abu Dhabi, United Arab Emirates (-22.9% to $148.72) reported the largest ADR decrease in February. t Manama jumped 37.7% in RevPAR to $120.11, experiencing the largest increase in that metric, followed by Amman with a 15.2% increase to $97.16.

Performances of key countries in February 2014* Country

Occupancy

% change

ADR

% change

RevPAR

% change

Egypt

45.1%

-6.0%

$60.50

-4.9%

$27.27

-10.6%

Saudi Arabia

75.4%

+2.6%

$188.61

+3.2%

$142.13

+5.8%

South Africa

68.9%

-0.9%

$103.74

+11.2%

$78.41

+10.2%

UAE

84.1%

+0.5%

$240.31

+3.0%

$202.08

+3.5%

* percentages are increases/decreases for February 2014 versus February 2013

Dubai’s seven year high

+6.3% Supply

+7.1%

+0.7%

Demand

Occupancy

APRIL 2014

+10.7%

+11.5%

ADR

RevPAR

+3.8%

Total 2014 RevPAR predicted

hospitalitybusinessme.com

18

DTCM

! " # " Royal Caribbean, the world’s largest global cruise line, is to re-launch its suspended Gulf itinerary for the 201415 season with a regional debut for its “vision class� ship, Splendour of The Seas.

2015 through March 2016. “I would like to express our thanks

DUBAI ANNOUNCED AT ITB BERLIN THAT 13 EUROPEAN COUNTRIES WOULD BE ADDED TO ITS ‘VISA ON ARRIVAL’ LIST. THEY ARE: t Poland t Slovenia t Slovakia t Czech Rep t Lithuania t Hungary t Latvia

t Estonia t Malta t Cyprus t Croatia t Romania t Bulgaria

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At the ITB Go Asia awards, Dubai was named ‘Most Popular Destination in Arabia’ while the named as ‘Best Arabian Tourism Board in Germany’

APRIL 2014

hospitalitybusinessme.com

19

DTCM

Record 6.4m passengers for DXB ! " # Source markets growth

180,982

GCC traveller increase, highest ! ;

140,910

> 9 /

126,305

> 3

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DESTINATION DATA t India - 800,397 passengers t Saudi Arabia - 514,071 t UK - 435,806

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hospitalitybusinessme.com

APRIL 2014

20

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APRIL 2014

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21

E

stablished in the late 1980s, Fairtrade is an organisation committed to tackling poverty and social injustice through trade. It has captured the attention of thousands of producers worldwide, but as development in the Middle East hospitality industry increases, here too is an ever-growing importance placed on responsible procurement and fairly traded products. Unbeknown to many procurement teams when placing supply orders, the products delivered have travelled down an often unfair supply chain and are sourced from poorly paid farmers who are not working in decent conditions. By partnering with Fairtrade and using certified products within a hotel, businesses can help address the injustices of conventional trade, which traditionally discriminates against the poorest and weakest producers - depriving them of an opportunity to improve their position and have more control over their lives. Fairtrade procurement Despite receiving positive backing from companies worldwide, it seems Fairtrade is experiencing difficulty breaking into the Middle East market. Regional procurement manager of Accor Middle East, Shahbaz Tiavar explains: “When it comes to procuring Fairtrade products in this region, it’s quite challenging because we know what we want to implement in our hotels, as we have done in other regions, but here the supplier market simply isn’t advanced enough and it’s difficult to source Fairtrade products.� Although Accor believes in brand consistency globally, Tiavar admits that the company is struggling to offer the same range of Fairtrade products in its Middle East properties as it does in Europe. At present, Accor properties in the Middle East feature Fairtrade products such as Malongo, Nespresso coffee and Fairtrade tea. Future advancements will see the introduction of jam, sugar and orange juice, however, it’s not without challenges. “We are not only hindered by availability, it also comes down to pricing because these products often come at a higher cost,� says Tiavar.

AAA farms have....

22.6% condition

41%

economic

46%

income

52%

Ozanne explains another problematic issue slowing Fairtrade adoption is the carbon footprint of importing certified products to the region. He elaborates: “As we are unable to procure many of the items we want we have looked at importing, but in most cases it doesn’t make sense to do so because of the carbon footprint that creates. We have to consider the optimising logistics to reduce the carbon footprint of Accor. We are committed to sustainability and initiatives such as Fairtrade, but it’s also about looking at the bigger picture and calculating the all-round better solution; environmentally, socially and economically.� He continues: “Particularly in Dubai, we find the Fairtrade concept is delayed because it seems many people are simply looking ahead with a short-term view. But as the industry evolves this will become a major aspect of hospitality. It’s a true advantage in the industry to be able to offer Fairtrade. Guests are becoming more demanding about seeing this around them.� Additionally, both note the primary psychological issue surrounding the Fairtrade concept is expense, as it costs more to source and offer certified products. Which may in some circumstances be true, but as Tiavar comments: “If people look at what it actually means to invest in these products, they’ll realise everyone benefits in the end�. “It also boosts our company’s CSR output, and is embedded in our commitment to sustainability.�

One of the key challenges for us is getting major hotel chains to look at direct sourcing

Catch 22 Accor’s Middle East pre-opening project manager, Vincent

WHAT IS FAIRTRADE? Fairtrade works to secure a better deal for farmers and workers in developing countries, so they are paid a fair price for their products plus a Fairtrade premium to invest in local community development. Fairtrade buyers enter into long-term contracts enabling investment and stable employment. Fairtrade standards include environmental protection and employee rights. Fairtrade’s vision is a world in which all producers potential and regain control of their future.

hospitalitybusinessme.com

Fairtrade vs fairer trade Tiavar continues to say that once implemented, users better understand and acknowledge the invaluable contribution of the innovative business concept to sustainable development, poverty reduction and consumer awareness. Accor is currently working to create a fully sustainable hotel room and at present 23% of its properties have at least three eco-designed components, such as Renova eco-pillows and duvets, made using 100% recycled plastic bottles. MÜvenpick’s director of F&B Europe, Thomas Hollenstein, explains the brand implemented its own-brand blend of MÜvenpick Fairtrade Coffee across the portfolio two years ago to assist in providing a sustainable income for coffee farmers

APRIL 2014

22

352&85(0(17 ǖ )$,5 75$'(

around the world. He says: “We made this decision because it’s evident customers are becoming evermore concerned with what they consume and they want to know products have come from a responsible source; there is more focus today on sustainable F&B. “There is a demand for further expansion in this area and we know that offering these products in most cases will increase selling prices, however an increasing amount of customers are willing to pay such prices providing they are aware of the product’s origin and quality,” Hollenstein continues, adding that guarantees of such information can justify commercial premiums in some cases. He reiterates: “It’s definitely a growing trend and puts businesses under the microscope as consumers demand assurance that workers are not exploited.”

no commitment on their behalves to source raw materials sustainably, which is where Fairtrade can now assist.” To encourage hoteliers, Fairtrade has created several Fairtrade hotel rooms throughout Europe using Fairtrade certified products; most successfully in the Netherlands. “We hope the new Fairtrade cotton model will help penetrate the hotelier market in all regions – which we believe it will as it’s a growing trend. Information suggests that boutique hotels are driving the super-sustainability trend right now.” Market stance From Nestlé to Dale, from Starbucks to Nespresso, the biggest traders are joining efforts to offer producers a fair deal for their work: But how many are actually targeting hotels? International coffee brand Nespresso, announced its partnership with Fairtrade in 2013, as part of the AAA Sustainable Quality Program with Rainforest Alliance. Since, Nespresso’s purchase of Fairtrade certified coffee has risen to approximately 10% of global supply; a percentage of which is being used within hotels internationally. Pierre Debayle, regional manager, Nespresso MEA and Caribbean explains: “Currently we are working with over 62,000 AAA farmers in eight coffee producing countries to improve social and environmental performance and coffee quality, focusing on soil and water conservation, reforestation, reduction of pesticides, working conditions and farmer income.” As part of the AAA programme, Nespresso pays a premium price of around 30% to 40% above the standard market price and 10% to 15% above coffees of similar quality in order to build long-term relationships with farmers; improving quality, sustainability and social responsibility. “A study performed by Colombian research institute CRECE, demonstrates AAA farms had 22.6% better social conditions, 52% better environmental conditions and 41% better economic conditions compared to non-AAA farms. Additionally, AAA farms had 46% higher net income than non-AAA farms,” relays Debayle. “Fairtrade within the hospitality industry is still a growing concept, especially within the MENA region, but looking at what we have achieved in the last year shows exactly how much of a difference the switch to Fairtrade can make,” he adds. On a concluding note, Hearson explains the hotel industry’s “apparent lack” of Fairtrade involvement is not a matter of social conscience, it is one of marketing, as the majority of caterers who support the Fairtrade movement “simply do not promote it enough”. “The hospitality sector remains a challenge for the initiative, however it is beginning to improve as more and more products become Fairtrade certified such as in-room cosmetics, fresh-cut flowers, chocolate, nuts, linens and others,” she says. The question now stands: How long before the Fairtrade movement is fully embraced by the hospitality industry?

We are not only hindered by availability, it also comes down to pricing because these products often come at a higher cost

Driving new developments From Fairtrade UK, account manager Rachel Hearson explains the organisation is trying to further push Fairtrade within the international industry with a Fairtrade Sourcing Programme for cotton and other products such as cocoa and sugar; directly connecting Fairtrade farmers with companies wanting to buy specific commodities on Fairtrade terms. “We aim to make it less complex for the hotels to sign up to working with Fairtrade as part of their overall sourcing strategies. Effectively major hotel chains are using vast quantities of cotton so it’s only a matter of time before they start looking to source it sustainably,” says Hearson. In recent years the increasing use of synthetic fibres like polyester has had a negative effect on the cotton industry – pulling prices down to an all-time low and reducing job security for millions of growers. By selling to the Fairtrade market, cotton farmers have the security that they will receive a set price which aims to cover their average costs of sustainable production. Hearson explains: “One of the key challenges for us is getting major chains to look at direct sourcing. At present there is

INSIDE A FAIR TRADE HOTEL ROOM Converting a hotel room to t Flowers Fairtrade could be easier t Hand-made beds (Lavital than you think. Beds) From the cotton in t Hand cream, soap and the towels, bed linen shower gel and pillows and the t Paper products such as chocolates placed on menus, welcome notes, them, everything has the wallpaper, etc. possibility to be Fairtrade. t Fruit such as bananas and apples Here are some in-room t Food sources used for Fairtrade items: room-service t Cotton bed/bathroom t linen and towels t Sugar t Chocolates t Mini-bar drinks

APRIL 2014

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24

EVERY GREEN STEP COUNTS Speaking to Hospitality Business, Mike Walden, commercial director of 4 Corner General Trading explains the importance of sustainable supply chains

R

epresenting a significant part of a hotel’s sustainable development, it has been noticed the Middle East has yet to follow suit and implement eco-friendly supply chains into daily property management. With plans of introducing a one-stop-shop for hotels to procure all of their stock from, UAE-based 4 Corner General Trading this year aims to support hotels in the region to lower their carbon footprint, enhance their CSR remit and reduce negative environmental impact. During 2013, the 4 Corner team assessed ways in which supply chain efficiency could be improved; through revised supply routes, vehicle tracking and multi-temperature distribution, while reducing the number of vehicles on the road. This year the company plans to completely re-design its delivery network in the UAE. “Currently we are investing in larger multi-temperature vehicles and a warehouse facility, which will be a sort of one-stop-shop for hotels to order all stock items. What it means is that hotels will be able to effectively source all core product ranges from one place and have it all delivered in one vehicle,� says Walden. “The concept will not only allow for all-in-one convenience, it will offer long-term fixed pricing and help avoid unnecessary inflation charges.�

sustainability point of view, it’s absolutely dreadful.� Proving successful at testing stage, the commercial director believes that positive feedback is coming in due to the “huge inflation fear surrounding Dubai at the moment in approach to 2020�. “It’s a great cost-saving mechanism for hotels and is efficient because everything arrives all in one go.� “If there was an initiative to lower Dubai’s carbon footprint, green supply chains in hotels alone would definitely be a huge contributing factor,� he added. Hotelier awareness If hotel staff are not fully educated and aware of sustainable supply chains, it makes implementation much more difficult. From the international hotelier perspective, Accor regional procurement manager, Shahbaz Tiavar explains his team is now working with its suppliers in order to limit the number of truck delivery rotations to their hotels, delivering stock and produce. “We really understand the importance of having green supply chains in all our properties and the reason we don’t already have them in this region is because of the supplier market in the Middle East. “It is very under-developed in comparison to the likes of Germany, UK and France,� says Tiavar. He adds: “The supplier market is not yet ready here, also suppliers in the region are mostly working with exclusivities and one or two major distributors, which complicates the whole process. “Not only are we challenged in the UAE, we are trying to implement eco-supply chains and heighten our use of Fairtrade products in Saudi Arabia, Qatar and other Middle East destinations; therefore dealing with many different distributors and regulations.� Once products are responsiblty sourced, sustainable supply then comes down to how many miles - and as a result tonnes of carbon - can be taken out of the supply chain through consolidation and transportation; benefiting a company’s financial situation and making an environmental difference, on a global scale. Walden concludes: “We alone obviously cannot improve the environment, but we will be aiming to work very closely with all hoteliers in 2014 to remove millions of miles from the UAE’s transport network and hundreds of kilo tonnes from carbon emissions out of the atmosphere.�.

If there was an initiative to lower Dubai’s carbon footprint, green supply chains in hotels alone a huge contributing factor

A first for the region Acknowledging a hindering aspect of why this concept has not yet been embraced by local hoteliers, Walden explains that a problem he finds is that hotels and F&B outlets use many different brands, all of which tend to have exclusivity agreements with suppliers. According to 4 Corner’s findings, another problematic aspect is that many hoteliers’ initial perceptions of the green supply chain is that it would be overly complicated to achieve. “The UAE is still a young market and hotels are only used to working with specific brands who are exclusively tied to a limited amount of suppliers and locked down in contracts, which drives a culture of exclusivity and prevents a fair trading platform, so this concept is proving slow to catch on. To overcome this we are looking at sourcing products from other destinations, whilst still being economical, and fitting them into the supply chain,� adds Walden, continuing: “I’m sure the idea will catch on at some point in the near future because if you observed how many delivery trucks come and go from major hotels on a daily basis, from an environmental and

APRIL 2014

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26

! Sophie McCarrick

O

n average lighting, can account for 20-40% of a hotel’s monthly electrical consumption, however with the right technology this necessary yet energy-intensive product can actually provide the greatest ROI of any energy saving initiative. Central to many corporate sustainability agendas and carbon footprint reduction schemes, more and more hotels are replacing their old energy-rinsing tungsten halogen light bulbs, for the latest LED (light-emitting diode) lights or CFLs (compact fluorescent lamps). On life hours alone in comparison to a halogen bulb, which an approximate lifetime of 1,000 hours, CFL’s can offer up to 20,000 hours and LED up to 100,000 hours. A recent report by the Centre for Industrial Studies revealed that the UAE lighting industry is now worth $336 million and is expected to grow by 10% this year. Sustainable lighting solutions can help hotels reduce electricity consumption up to 80% and newly developed bulb types last up to eight times longer than older versions and produce less heat, therefore lessening the strain on in-house cooling systems. Although not implemented in every hotel in

APRIL 2014

the region, all hoteliers note that the big switch to sustainable lighting is a fast-growing trend gaining pace as more and more hotels boast of their savings and contribution to sustainability. From Dubai’s iconic Burj al Arab hotel, health and safety manager Sarel Du Plessis, noted that in 2013, LED lighting within the property proved to be the highest energy saver. It’s not only LEDs and CFLs that contribute to savings in hotels, it’s the innovative technology that runs alongside, such as timers for outside lighting and motion sensors that recognise when a room or area is no longer being used. Rob Collier GM, Radisson Blu Residence Dubai Marina said: “In order to move forward sustainably, all hotel lighting should be on timers and sensors so it doesn’t impact guest responsibility, whilst optimising energy savings. Through implementation of sustainable lighting we are saving a lot of energy.� It’s clear to say that the improved performance capabilities of LED’s and other high-efficiency light sources is boosting demand for these products across the hospitality sector – and will continue, thanks to rapid payback, long-term savings and a sustainable future.

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RADISSON BLU From the Radisson Blu Hotel, Dubai Media City, chief engineer Nicholas Fernandez reveals that the property uses 95% LED lighting and 5% CFL, highlighting that both are sustainable and generate generous savings for the hotel. Fernandez explains that the hotel made the lighting

between the The Carlson Rezidor Hotel Group and Philips Middle East in 2013. “This deal made it easy for us to convert the hotel lighting to LED. We replaced 5,200 lamps last year

The replacement project was relatively easy however it was important to maintain the same lumens in all guest areas,� he said. During the project, the engineer explains that their interfacing their existing dimming controls with the LED lamps, and overcome this by replacing the lamps drivers, something he described as a “small alternation on the electrical circuit.� lights include reduction of expenses on replacing lamps, because LED lamps have a much longer lifeline, and they !"

#

consumption while still maintaining the same amount of quality lumens. All in all, lower maintenance, lower work load, and lower bills,� concluded Fernandez.

THE KEMPINSKI The Kempinski Hotel Mall of the Emirates has also recently changed all of their lighting to Saturn LED sustainable lights, across the entire hotel. “Implementing LED lights across the hotel was not an easy project, in fact it took us a few years to make this happen as the hotel has been busy and in order to not disturb our guests and operations we had to make this happen gradually. However, now that it is done we are extremely happy with the results and impact it brings us. It massively contributes to our hotel’s sustainability, and reduces our electricity costs by 10%� comments Elodie Bodin, green champion of Kempinski M.O.E. Sustainably plays a big role at the hotel and the team believes that it’s becoming ever-more important to work and operate in a healthy environment, not only for their guests, but also for themselves and the atmosphere.

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APRIL 2014

27

28

352&85(0(17 Ç– 6867$,1$%/( /,*+76

electricity consumption and less man hours needed to maintain our lighting systems DUSIT THANI Chief engineer at Dusit Thani Dubai, Sebastiao Ferrao, explains that the property fully introduced the use of sustainable lighting three years ago, replacing normal halogen lamps with LEDs and low energy consuming lamps, CFLs. felt are low electricity consumption and less man hours needed to maintain our lighting systems. We not only changed all the lights we also implemented variable frequency drives (VFD) on our pumps,� said Ferrao, lighting technology in the market. “These days there are a lot of sustainable products on

the right quality product because many suppliers are ! " #

quality is more expensive, which is what is necessary to

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THE ACCOR In order to obtain the ISO 14001 environmental + change all of their old light bulbs to LED. Regional procurement manager, Accor Middle East, Shahbaz Tiavar said that: “Recently we launched a global campaign in all of our hotels globally to change all of their old light bulbs to LED lights. Now, all of our hotels have implemented this including those in the Middle East, we have noticed very positive changes to our brand’s energy consumption. In order to keep check on how much we are saving, we are now monitoring and reviewing on a monthly basis the energy consumption of every property.� He goes on to explain that the company is glad of their decision to implement LED lighting, however it wasn’t the easiest thing to persuade higher management of in the beginning stages. “The process and cost of replacing thousands and thousands of bulbs in the hotels is a big investment, so it was a big thing to convince the owners of doing, # no-brainer,� he added.

In order to move forward sustainably, all hotel lighting should be on timers and sensors so it doesn’t impact guest responsibility, whilst optimising energy savings. All in all, lower maintenance, lower work load, and lower bills STATS

20-40%

Of energy consumed in lighting

100,000 Hour lifetime in LED

APRIL 2014

50%

Of light can be blocked by fittings

5,200

Lights replaced at Radisson Blu Media City, Dubai in 2013

hospitalitybusinessme.com

30

352&85(0(17 Ç– 6867$,1$%/( /,*+76

Top 10 lighting tips for energy saving in hotels:

1

4

8

2

Use low-energy lighting, such as CFL or LED

Keep windows clean to make the most of natural lighting

5

hanger, on room door handles

Use the lowest wattage bulb required to meet a room’s lighting needs

Use light dimmer switches

9

3

Install occupancy and daylight sensors

6

Install low wattage lights, solar lights and movement detectors for external lighting

Allocate one switch per light rather than turning on multiple lights with one switch

7

Conduct routine maintenance to clean and replace lamps to avoid dust build-up

10

allow light through so a lower wattage bulb can lighting by 50% or more

PLEASE TURN LIGHTS OFF

APRIL 2014

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32

SUPPLIES & SERVICES

SUPPLIES & SERVICES The world’s most useful and innovative new designs, delivered to you every month

Wilson Associates announces

Phase 1 at Dubai Trade Centre District

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APRIL 2014

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SUPPLIES & SERVICES

33

Improving air quality through design

Simmons’ customisable bed

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Delta Faucet Company opens in Oman 2ODBH@KHRHMF HM QDRHCDMSH@K @MC BNLLDQBH@K E@TBDSR #DKS@ %@TBDS "NLO@MX G@R NODMDC HSR ƥQRS RGNVQNNL HM SGD CHRSQHBS NE 6@SS@X@G ,TRB@S HM .L@M VHSG (CD@K /QNIDBSR ++" 3GD MDV RGNVQNNL VHKK DWGHAHS @ ETKK OQNCTBS Q@MFD EQNL SGD #DKS@ AQ@MC HMBKTCHMF A@SG @MC JHSBGDM E@TBDSR HM @CCHSHNM SN @ CDCHB@SDC CHROK@X ENQ !QHYN OQNCTBSR #DKS@ %@TBDS "NLO@MXŗR OQDLHTL ƥWSTQDR AQ@MC @KK NE VGHBG @QD MDV @MC HMMNU@SHUD RNKTSHNMR SG@S @QD DMUHQNMLDMS@KKX QDRONMRHAKD

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APRIL 2014

Stay First The maximum expression in minimalistic electronic lock.

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35

SUPPLIER SPOTLIGHT

The business of sleep is not resting A bad night’s sleep is the most popular complaint on TripAdvisor. Hassan Al Hazeem, MD of Intercoil International, explains how innovation is meeting the most basic guest need say truly transformed the industry. A back-to-basics move shifted the focus from in-room entertainment to a good night’s sleep, which unsurprisingly, resonated with guests. So far, over 30,000 Heavenly beds have been sold, and many other hotel businesses have since introduced and now sell their own branded sleep experience. Hassan Al Hazeem MD of Intercoil International

I

t is thought that humans spend one third of their lives sleeping, although most of them don’t understand how a mattress is constructed, or what makes some more comfortable or more expensive than others. Sleep is taken for granted too often – but with stress, pollution, noise and allergies all affecting how people sleep, there is a growing awareness about the health benefits of a good sleep and the critical role it plays in our overall wellbeing. Clearly no more so than in a hotel. Access to information correlated with the growth of the travel and hospitality industries have also changed the dynamics of the business of sleep. When guests have a great night’s sleep in a hotel, they are more likely to visit again or to recommend the hotel to friends and family. A bad night’s sleep is the most frequent complaint on TripAdvisor. Hotels are not betting anymore on guests counting sheep or wearing ear plugs. They understand that, of all the amenities a hotel can offer, the most essential is a good night’s rest. The trend started in 1999, when Starwood’s Westin hotels introduced the “Heavenly bed” – a step that some

Sleep secret Good sleep means happy guests and good business. But what is the key to a great night’s sleep? There are many aspects to consider, although we can all agree the most important one is the bed and the mattress, with cleanliness, comfort and durability as the most required features. It is the responsibility of the bedding industry to be able to provide new ways in which hotels will offer their guests the experience of a quality, undisturbed sleep for many years to come. Our industry is driven today by innovation. Providing a positive sleep experience can go a long way to giving guests the value they expect, and a clean, comfortable bed is something guests should be able to take for granted. Industry surveys found that more than 90% of respondents rated cleanliness and mattress comfort as two of the most important factors in selecting a hotel. Technologies like the HealthSmart™ mattress top, a zip-off mattress top from Simmons that can be laundered, helps hotels reduce allergens and dust mites in the sleep environment so they can ensure a clean and healthy sleep for their guests just as easily as laundering the sheets.

Industry surveys found that more than 90% of respondents rated cleanliness and mattress comfort as two of the most important factors in selecting a hotel

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APRIL 2014

Luxurious gel foams are used to provide the perfect soothing comfort, memory foams the perfect support, while temperature control innovations help in creating a personalised, comfortable sleep temperature. Green stay sleeping But the hospitality industry today is not only concerned with comfort or durability. Consumers are becoming more environmentally conscious, and so are hotels, with surveys revealing that almost 90% of guests would rather stay overnight in a “green” hotel. If reducing water and electricity consumption has driven hotels’ sustainability efforts for quite some time, it is only recently that technology and innovation in the bedding industry have provided hotels with new ways of offering comfort and customisation while reducing the number of hotel mattresses are discarded annually. As a basic necessity of life, recent research reveals an increasing number of people have sleep problems, so we cannot just take sleep for granted. Whether home or travelling for business or pleasure, a good night’s rest is critical for any human being. Constant innovation, responsibility and commitment are essential in our business. We are not in the business of mattresses or beds; we are in the business of a good night’s sleep. We are selling wellbeing.

Established in 1974, Intercoil International is a family-owned business, founded by the late Mr. Abbas Ali AI-Hazeem, and currently managed by Mr. Hassan Abbas AI-Hazeem, who is passionately committed to developing Intercoil into a globally recognised brand, achieving sustainable growth and becoming the market leader in orthopaedic sleep systems in the region.

36

EVENT 2014 GIBTM

ME leading MICE

The three day MICE conference, GIBTM, returned to Abu Dhabi March 23 – 25, welcoming 250 regional and international hosted buyers and 300 exhibitors

M

iddle East is fastest growing MICE market globally, more than doubling the number of association meetings over the last 15 years. Standing out, the UAE leads the way with 66% of meeting planners having held meetings in the country over the last two years, with Dubai the most popular of its seven Emirates. “The number of meetings in the Middle East has even grown even quicker than in other regions, it has more than tripled over the last decade,� said GIBTM exhibition manager Lois Hall. “With improved facilities, more flight connections and in some cases reduced visa requirements and the Expo 2020 only six years away, the growth potential for the region’s MICE sector is exceptional,� added Hall.

Sultan Al Daheri leads GIBTM opening tour.

ME Buyers’ Report

78% of corporate FIT bookings in GCC are last minute, higher than global average

48%

price is fourth priority when selecting meeting venues

48%

55% venues loose business through negotiations

price is fourth priority when selecting meeting venues

52%

58%

safety and security concern among buyers for MICE venues

turnover as a

venue selection

78%

61%

buyers prioritise ease of access when selecting venues

52%

as key decision criteria

of corporate FIT bookings in GCC are last minute, higher than global average

APRIL 2014

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“The online MBA from Glion is a perfect match for busy hospitality professionals anywhere in the world...� Philippe Le Bourhis General Manager, Novotel Bangkok on Siam Square, Thailand, Glion Online MBA student

Glion Institute of Higher Education

Glion’s Suite of Online Programs:

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.

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38

GIBTM 2014

STATS

100%

532

association meetings in the Middle East, 1998 – 2002

905

association meetings in the Middle East 2003 – 2007

the increase each decade of regularlyoccurring, internationallyrotating association meetings

association meetings in the Middle East 2008 – 2012

250

regional and international hosted buyers

1,000 532 number of International Congress and Convention Association members

1,776

association meetings in the Middle East, 1998 – 2002

905

$3.23bn in revenues generated by MICE in Thailand

association meetings in the Middle East 2003 – 2007

APRIL 2014

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SRL

amenities around the world

PACKING90 S.r.l. - ITALY ki 90 i - info@packing90.com i f @ ki 90 www.packing90.it

40

VP SPOTLIGHT

LEARNING ON THE JOB Citymax Hotels COO, Russel Sharpe is on a mission to allow the region’s hotel owners to manage their own properties through ‘manchise’ contracts, simultaneously

Hospitality Business investigates APRIL 2014

W

hen it comes to offering a unique service to a client or potential business partner in the hospitality industry, few stones remain unturned. From A++ locations to 5-star brands, operators’ tried and tested methods are a well-worn road, but that doesn’t mean owner demand has ceased to evolve. Bucking the trend, one brand is pegging its future on meeting the owners’ ambition to themselves become the hotelier – while breathing new life into a business-speak portmanteau. Announced back in February, the

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VP SPOTLIGHT

41

Citymax Hotels Bur Dubai Exterior.

Citymax Hotels ‘manchise’ contract model is a hybrid management concept for hotel owners and developers in the Middle East, which according to the chain offers “flexible solutions as an alternative to traditional long term management agreements”. The model is a popular one in India and is particularly suited to the roll out of Sharia compliant properties in the Middle East for [other] international brands, but its application to the midmarket sector to date has been limited. Not to be mistaken with the traditional franchise contract, for Citymax it’s an initiative that will springboard expansion of the portfolio – placing its mid-market

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name in new geographical locations, for example the nigh-on impossible to penetrate Abu Dhabi and coveted Saudi Arabia – while offering owners greater transparency and flexibility in their contracts, following years of economic uncertainty, social political turmoil and subsequent financial losses. Acknowledging the risk in granting non-hoteliers licence to operate under a well-known brand, Citymax COO Russel Sharpe, explains: “We came up with a solution to satisfy the management and franchise aspects while maintaining our brand image standards – in particular the training of staff – and giving the owners the opportunity to run the hotels, especially in Saudi Arabia where a lot of franchising occurs,” he adds, simplifying: “We run the hotel for three to five years and then hand it over to the owners.” Within the model, Citymax will fully establish the property to establish the brand concept, operating procedures, marketing mix, training procedures and day to day operational structure of the hotel. After the three year period the owner will be able to resume management under what sharpe refers to as a “franchise type” of arrangement, with

APRIL 2014

checks and balances in place to ensure the Citymax DNA remains. Complete autonomy will be granted for rates, procurement and the like. Sharpe adds: “This is not a new concept for the Middle East, but one which we expect to appeal to regional owners. It gives new entrants into the industry the opportunity to learn the business without jeopardising their investment, and once the hotel operation is beginning to stabilise and mature, the owner will also be ready to run it as they wish.” In short, where other operators offer a brand portfolio to owners, Citymax puts a suite of contract models on the table and the feedback has been positive. In terms of responding to industry sentiment, the introduction of the manchise model couldn’t be timelier and places the owner-operator at a distinct advantage in terms of formulating a rapid expansion programme to keep it ahead of competitors. Consider Nakheel’s 3-star development at Jebel Ali’s Ibn Battuta, Emaar and Meraas announcing Dubai Inn and Al wasl reinforcing the local Hilton portfolio, and it’s little wonder Standard Charter is reporting unprecedented

42

loan application volumes for Citymax’s immediate rivals in the 3-star sphere. Implementation Denying that Citymax is to become the McDonald’s of the hospitality world, the manchise does allow for variations, predominantly to accommodate the people elements of the industry. And while the announcement comes amid DTCM’s continued incentivisation of the mid-market sector, the focus is not solely on Dubai. Manchise will support an increased presence in the rapidly growing CIS states and demand so far has seen enquiries from owners in some of the world’s most remote locations. The contracts are currently in the hands of consultants with a number of deals already on the table, regardless of which there are also seven new Citymax properties on the cards and Sharpe would be “very happy� to have a further three signed by 2014 end.

VP SPOTLIGHT

Joint ventures are also on the cards in Abu Dhabi and while a lack of definition at Dubai World Central has put that development off limits for Sharpe in the immediate future, Deira and Fujairah are still very much on the map. Yet ambition doesn’t eliminate challenges. Naming the domination of unbranded properties in the 3-star and mid-market currently as being detrimental to the segment’s reputation, Sharpe is dedicated to changing perceptions and making the mid-market somewhere to sleep, rather than somewhere to party. “There will always be a position for those hotels but more and more they will fall by the way side because they cannot keep up with the brands and internationals. The next challenge will be getting qualified staff.� As Sharpe maintains the focus was never to “reinvent the wheel�, but to innovate existing ideas, and since 1999 for Landmark Hospitality that has

encompassed hotel contracts, casual dining brands and the continued prominence of Fitness First and Balance Spa. For the future of Citymax Hotels within the $5bn Landmark Hospitality portfolio, specific hotel activity is earmarked for growth beyond its current 25% contribution towards the entire hospitality portfolio. It’s a heady projection considering the rapid growth of Landmark’s other brands, and the recent division of restaurants between casual dining and fast food, but it’s far from impossible. As Sharpe reiterates the conceptualisation of the manchise contract as organic to the market, he concludes: “We were listening carefully, we came to understand that an opportunity exists and because we are flexible, home grown and we can adapt quickly, we said let’s adapt. The issue now is execution.�

ADDED BENEFITS While the 5-star arena is too complicated a segment for the manchise model, Sharpe is keen to stress the positive impact the roll out could have on regional nationalisation quotas. As the owners will be assigned a GM to oversee day to day operations and guide development of the property – a manager who would be trained and if necessary replaced by Citymax should the owner not wish to retain them at the end of the initial contract period – there is clear opportunity to train young locals. Explaining the tie-in as a preempt of the inevitable, Sharpe explains: “The industry has to realise that there will be Saudi nationals in GM positions in the future and those GMs will be trained and placed in hotels to run them to international standards. “There is a whole new wave of nationalisation in Saudi Arabia, which, even now operators are Citymax Hotels Al Barsha Exterior.

APRIL 2014

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t Tell us your business objectives

t Let our expert team bring

together a panel of decision makers for you to meet at a roundtable discussion

t Coverage in Hospitality Business

magazine, read by 20,000+ industry experts

DIRECTOR OF SALES SARAH MOTWALI M: +971 (0) 50 678 6182 D: + 971 (0) 4 440 9113 SARAH.MOTWALI@CPIMEDIAGROUP.COM

SALES MANAGER JULIE CAULTON M: +971 (0) 56 778 9793 D: + 971 (0) 4 440 9112 JULIE.CAULTON@CPIMEDIAGROUP.COM

44

456! ' 7&

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Left to right: Elodie Bodin, ‘green champion’, Kempinski MOE; Sandrine Le Biavant, director consultancy, Farnek; Charles Blaschke, GM, Taka ! " # $ % & ' () * &+- . ! ( ) / ' ' 0 & - ) - ) 1 ) " ' 2% - 3

APRIL 2014

hospitalitybusinessme.com

45

H

ow much can greening hotels contribute towards global sustainability targets? Jeff Willis: From a sustainability point of view, everybody has to do everything they can, no matter how small that might be. By the addition of a number of individual things happening in the hospitality industry, they are actually achieving something quite large. Everybody here is LEED, Green Globe or Green Key certified and I think that’s a higher ratio than in any other industry in the UAE. Competition between hotels has helped, but the issue is making people want to do this, because once people want to do something they will find a way to do it. Amelie Zegmout: Hotels are a great platform to share sustainability practices with guests and end users. Certifications are great initiatives but they remain at an engineer level whereas other staff could communicate them to the guests. A lot more could be done to carry the message besides notes on towels. Srilal Palihakkara: We have a lot of focus on employee awareness as part of a training programme to reach each and every employee.

What has been the impact of guest demand? Sandrine Le Biavant: Guests want peace of mind that they are living as sustainably in a hotel as they would at home. Hotels are at a stage of best practice implementation throughout operations and they are seeing savings. Guests are looking in that direction also. Rob Collier: We see this too, especially for MICE bookings, so we have a whole tailored package. Our own Rezidor conferences all have to be carbon neutral via a number of different measures, including off-set and tree planting. Our customers are definitely asking more questions and we have to remain competitive, but it’s also a great talking point. AZ: There needs to be a shift between luxury and sustainability, as they don’t

need to be conflicting. To be sustainable as a hotel could become such a statement that it is luxurious, similarly to the social statement of organic food. There is a feeling sometimes that some luxury brands are afraid to convey that message in case the perception is that they are not luxurious enough. SB: A lot of it is about shared values. When you feel a hotel isn’t respecting your values, this is where you begin to feel hurt or ask questions and try other properties. A lot of sustainability is about satisfaction, the guarantee a guest will return and the enhancement of the experience with sustainability. But that all depends on how you convey the message, how you integrate them to local cultural aspects of the country they are in. Business travellers come for one or two days and what do they see or learn? Will they come back for a second trip and bring their families? It’s that link between the hotel, the destination and the demand. Yet, Dubai particularly remains in a position whereby almost self-sufficient hotels stand side by side with hotels serving hammour three times a day. So if they can ignore guest demand, where does the incentive lie and who should be instigating change? SRP: A lot can be done in regulatory terms. Money is often taken away from sustainable operations because stakeholders re-prioritise sustainable ROI into an area with a quicker return. However, regulation takes away that choice. How about limiting the amount of power a hotel of a certain size is allowed to consume? It would force the procurement of energy efficient products and machinery or a green building concept. Ashrof Shakoor: The ROI on LED bulbs now is less than six months, so it is also important for private business to keep ahead of what is happening in the market place. Charles Blaschke: You always specify a more efficient product or building but in value engineering the owner will cut it out.

For me the future is to get to the point where we are not consuming any more of the earth’s resources

hospitalitybusinessme.com

APRIL 2014

46

ROUNDTABLE

SRP: That’s why regulation should be in place. JW: There are changes coming to the regulations and speaking as a consultant who has had numerous designs changed by contractors to save money, I think there is a particular problem with the market here where the contractor has more authority than the consultant. Then, specific to hospitality somebody will build a hotel before selecting the operator. Their influence is very important for demanding efficiency in the machinery, operation, building skin. If somebody is allowed to build without control you end up with something that is difficult to operate. RC: That is a huge challenge and as operators change so too do installations and designs. If the operators were involved from day zero to instil the DNA a lot of the cost would be saved. CB: Is there a communication break down between the operator and the owner? If your engineer asked for AED2.5m for efficiency upgrades, what would you say? RC: After I picked myself up off the floor… I would speak with the owners and if they are supportive and can see the ROI over time, I wouldn’t see a huge challenge. We are lucky because a certain allocation of our funds are aligned to responsible business and sustainability so we are guided with an element of our budget to plan a year ahead. CB: What could you spend that money on to get a better ROI?

What single green policy has provided the greatest ROI in your hotel? Kempinski: In-room recovery systems and LED Sofitel: Water savers and LED Hyatt: LED Mövenpick: LED lighting Jebel Ali Resorts: Automatic sensors for lighting Radisson: Sensors, timers, balancing the aesthetics vs energy savings is critical. And safety.

SB: There are a lot of studies showing investment in energy efficiency is the highest return for the lowest risk. You are managing your investment and the savings are coming directly to you.

Guests want peace of mind that they are living as sustainably in a hotel as they would at home

CB: This is why I wonder what could generate the same amount of revenue. A full retrofit? RC: From the ROI perspective it’s the best thing to do. From the owner perspective, they are looking at what they have to invest, how they can drive house rates and increase top line revenue. There are some owners who think that to invest money it must

APRIL 2014

44-52 ROUNDTABLE.indd 46

have a visual impact, but a lot of the energy saving infrastructure we put in place cannot be seen. AS: We have a company to monitor and send results every month to give a greater understanding of where the savings are and this information is useful for that reason. SB: It’s also useful to identify if and why one property isn’t as efficient as another. The operators and owners alike need to know how much they are getting out of their asset. Elodie Bodin: If an owner’s asset cannot comply with our company values we cannot do business with them. It’s

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3/27/14 3:34 PM

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ROUNDTABLE

something that must be met with every property and more and more it is becoming a challenge. AZ: One of the positive changes I have seen is the structuring of the operator chains in Dubai in terms of the headquarters. I work for an electrical manufacturer and I can see a very big difference on new projects today between hotel operators who have structured teams with directors for project and technical services. I think some operators have really grasped that importance. It makes a huge difference when communicating with the owners and ensuring things are understood and it can make a huge difference with the efficiency of the project. Of course there is also the communication between the new project guys from the operator and the director of engineering, there could be improvements on the handover of projects and vice versa. Improvements

can always be made. At EGBC we are looking to create a platform of exchange between new and retrofit projects to ensure they are going in the right direction and with shared values. RC: A few years ago Radisson went through a de-centralisation process and now per region there are specific teams looking at these areas. AZ: How projects are managed and how they understand the locality is huge.

To be sustainable as a hotel could become such a statement that it is luxurious, similarly to the social statement of organic food

Looking at waste, how much of a priority is zero landfill? AS: Our sustainability programme has a target of 25% reduction to 2016. What I see is a difficulty in the supporting services to meet that target. SRP: To get to zero landfill you have to recycle all the kitchen waste, which usually means composting waste food but then where do we put the compost? There are so many things linked to zero landfill. From May to December we achieved 9% diversification on landfill, which is not huge but it is progress.

APRIL 2014

WHAT ARE THE MOST CRITICAL ELEMENTS WHEN GREENING AN OLD BUILDING? The building probably hasn’t been commissioned and doing that can achieve 20% utility bill savings. It’s also likely the people operating don’t understand the building. Make sure that what you have is working to its best. Charles Blaschke: There is so much technology today that can transform how a building operates but we’re still dependent on people risk and make money. Then look at indoor air quality and VOC because sometimes you can achieve savings but still have unhealthy environments.

PV: Two years ago everything was going to landfill then we realised there was a possibility of segregation and we began to separate and send waste via Union Paper Mills. As their recycling services increased so too did the variety

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of materials we could send to landfill. There is also Frigo Glass, formerly Jebel Ali Glass Factory, that has a huge plant and they don’t ‘recycle’ but they remanufacture. Aluminium is not happening in the UAE right now, but if it is segregated it can be sent to other countries. Union Mill collects and exports aluminium. Using CPS we also make money on the recycling of electrical waste and printer cartridges. Now we have reduced waste to landfill by 45% the next step is to invest in a compactor. How easy was that to achieve? PV: It wasn’t that easy. It took a lot of time and the managers were asking how we were spending our time! SB: It’s very often in the designing of the SOPs as well, you need to analyse how operation systems are managed and look at check lists and on the job training. EB: It’s changing your whole business

ROUNDTABLE

model. If your owners and managers believe in it you can be ready to change. SP: If you look at Burj Al Arab we are sat on a confined space and are reliant on the waste management company to give the correct figures because they do everything off site, that’s our biggest challenge – an audited waste management company. RS: Recycling in the hotel is a process that has to start in every outlet. It isn’t the greatest priority in the kitchen, and it can be difficult, but you can make progress, even if you only compost 50%. When we tell people that you can save AED85,000 through a computer shutdown policy, they realise the value. AS: Between 2012 to 2013 we saved AED2.7m on energy and water costs.

Every month we have the P&O and we tell them the savings in Kw and money and this motivates the whole team. If you save AED3m that’s AED9m in revenue. The Park Hyatt is almost one kilometre wide and was lined with halogen lamps, maintained by two full time employees replacing the 1000 bulbs on rotation. Switch to LED and the cost fell from more than AED30,000 a year to AED2,000 and we gained two staff members. Heat pump technology has saved us significant amounts as well. EB: To get LEED certification we also had to look at the flow of goods coming into the hotel as well as the recycling programme, the water system, all the housekeeping products – because we

How about limiting the amount of power a hotel of a certain size is allowed to consume?

APRIL 2014

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AHIC ARABIAN HOTEL INVESTMENT CONFERENCE Madinat Jumeirah, Dubai

www.arabianconference.com

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ROUNDTABLE

GREEN HOTELS Elodie Bodin, Kempinksi: Under Green Inspiration each hotel has a committee and ‘green champion’ to head projects and six months is dedicated to achieving each objective. Additionally, each hotel is responsible for local sourcing, LED lighting and consumption management. Kempinski MOE has LEED Silver accreditation. Rob Collier, Radisson: Radisson’s sustainability outlook for 25 years, initiated by former CEO Kurt Ritter, is a key brand pillar in addition there is a 25% energy saving target to 2017 across all hotels. The Planet 21 scheme has 21 commitments ranging from energy monitoring to a vigilance ! ! generate 50% of hot water, the AC drain goes into irrigation and LEDs are used in public areas. Ashrof Shakoor, Hyatt: For 20 years Hyatt Regency has collected condensation from AC systems and used that 15 gallons/ day in cooling towers. Impact also covers non " #

reduction targets. Srilal Palihakkara MĂśvenpick: Sustainability across MĂśvenpick meets more than 300 points, over energy saving, fair trade and employee welfare. 2009 to 2011 we saved 30,374MWH, enough to operate six hotels; 78,000 cubic litres of water in real terms, not YoY; and 25,258 tonnes of CO$ since 2009. Sarel Du Plessis, Burj Al Arab: Jumeirah Emirates Towers was Green Globe 2012 and Green Globe &

Jumeirah Group hotels in 2014. Piyush Verna, Jebel Ali Resorts: ' ( ISO training and a full analysis and understanding of all the activities across all the departments, the strategy encompasses a bio garden to recycling. ) !

! ( 45%.

have to work in a healthy environment too. What is the greatest challenge moving forward? RC: What to do next. Continuity is habit now but in five years’ time where do we go? AZ: I think there is a need for hotels to share information and best practice and that’s the obvious thing we have to incorporate. Additionally, we need support from DTCM, the Expo Committee. EGBC is working towards this but there is room for more organisations to be involved. SB: Speak to the other stakeholders; owners, managers, suppliers. What is it that we need to be able to drive our sustainable practices to improve? SRP: There are a lot of things happening but it all stops somewhere. For example setting standards on refrigeration, it moves to a certain point then stalls. JW: There are issues here with whether

or not the way things are going is likely to dramatically reduce somebody’s source of income. There are many steps down the right path from banning inefficient AC systems and halogen lights to labelling buildings. But, I believe sustainability is zero consumption of the earth’s resources and the only way we achieve that is to make everything apart from food cradle-tocradle. That means that we don’t buy anything anymore we rent it and when it’s finished we return it to the manufacturer to recycle. For me the future is to get to the point where we are not consuming any more of the earth’s resources.

You always specify

APRIL 2014

Hospitality Business would like to thank Jebel Ali Golf Resort for hosting the discussion at its 128-acre, Green Globe certified, Blue Flag beach-side hotel.

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COVER STORY

APRIL 2014

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COVER STORY

In the continued absence of strict regulatory frameworks, Emirates Green Building Council is pushing the message of sustainable hospitality far beyond clean linen and recycling. Hospitality programme ambassador Amelie Zegmout and vice chair explain how they are greening the region one hotel at a time

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single night’s stay at an average hotel has a carbon footprint of 16.8kg/CO per room per day. It’s the equivalent to driving 130km in a small car with no passengers, according to data calculated by the Environmental Protection Agency. For an upscale hotel inclusive of restaurants, food service and meeting space the figure almost doubles to 33.38kg/C0 per room per day. Add to this the journey to the hotel – whether by car, plane, cruise, or a combination of all three – and then multiply by the 10million plus visitors to to see the overwhelming need to green the hospitality and tourism industries. Globally, progress is limited. Whether it’s an international chain with a multifaceted sustainability scheme, which continues to insist that it cannot be ‘luxury’ without miniature plastic toiletry bottles, or the international player talking the sustainability talk while serving hammour on an all-day dining buffet, the inevitable is being avoided. But there is good news, and a growing number of operators are tackling utilities consumption, waste to landfill and supply chains, educating owners and guests simultaneously. Avoiding the prescriptive approach, Emirates Green Building Council (EGBC)

is taking its message of sustainability awareness and green building management to the hospitality industry in order to improve the performance of its assets. It’s a drive that will address headon the fact that, according to EGBC’s observations, the building and management of hotel assets is far from efficient and few maintenance teams know how to operate the building they are in charge of. Under the Green Key programme launched last year, for which EGBC is the exclusive UAE operator (see box), the not-for-profit (NFP) organisation founded in 2006, has been collecting data from hundreds of hotels through its sustainability survey. The scheme this data will eventually quantify will see tourism establishments registering to participate in addressing five key pillars of sustainability: Education, preservation, consumption, marketing and CSR, ultimately increasing the efficiency of their assets to meet sustainability criteria, reduce utilities consumption and manage their impact on the planet.

Immediately hoteliers ask us for a benchmark report or a comparison against their competitors, as well as how much money they can save

THE GCC’S GREEN KEY CERTIFIED HOTELS BY COUNTRY

22 UAE

2

Kuwait

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5

Saudi Arabia

“Immediately hoteliers ask us for a benchmark report or a comparison against their competitors, as well as how much money they can save,� reports the scheme’s ambassador and EGBC board member Amelie Zegmout, adding the response rate is around 90%. “There is a competitive element between hotels to be the best at this. That is great motivation for them to be involved, and for other industries too. The benchmark report will come after we have gathered and analysed the data,� she continues, adding that a hotel’s facilities, room sizes and star rating are a key part of this analysis.

2

Oman

1

Qatar

1

Bahrain

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Know your enemy The immediate aim is to face facts and, much like receiving a bad credit card statement, identifying where and how resources are being wasted. EGBC vice chair and veteran of the UAE’s sustainable building community, worst of the region’s sustainable buildings, from water tanks which leaked undetected to unmetered energy consumption. Advocating that the start of any sustainability drive is to know exactly what is going on, his advice is ever more relevant following last year’s events in Jordan and the resulting 20% tariff hike on the country’s energy bills; placing an

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enormous strain on operators who had yet to implement efficiency measures. For those who actively want to improve the performance of the buildings they own and operate, he begins by advising: “To identify where the problems are occurring you need to monitor them. The first thing you should do is commission the building. Potentially that can save 18 to 20% on energy bills, just by checking that everything is running how it should. Look at variable drive motors, which save money on a short ROI.� Unfortunately many buildings are not commissioned, often they are built before the operator is signed, leading to an asset that isn’t entirely fit for purpose and will either run on a lower efficiency or require further work. When the number of these properties is calculated it’s an undeniably heavy burden produced by the industry. In tandem, a shift is visible in revenue structures from RevPAR to Rev/sqm, which means every inch of a hotel’s revenue generating potential is under scrutiny; hiking the real term value of that 20% saving. Zegmout and Willis hope this will inspire an organic demand for sustainable hotel operations, based on a hotel’s subsequent popularity with their

COVER STORY

guests and owners alike, in addition to a drive to green the GCC’s building stock, which today includes 1,236 LEED rated projects (Leadership in Energy and Environmental Design). “Part of this is about generating a competitive element between hotels by making sure everybody is aware of what each is doing, because it’s all good. I’m talking to a number of the larger landlords about how they operate and then engaging them in competition with each other. “It’s about collecting all the information and feeding it back out to the rest of the world to inspire other industries too, because hospitality is doing an awful lot in comparison� Willis reveals of the ultimate aim. The succeeding step is to close the gap by using an education platform to reach the ultimate end user while they are staying at the hotel.

to the hospitality industry and it isn’t hospitality’s issue alone to solve. Like a number of stakeholders and within hoteling demand is coming ever more from the guest, as well as any bottom line. It’s that demand Zegmout and Willis credit with generating the positive results seen of late, but they are clear that in addition to the demand-creating incentive, it should also become a platform in its own right to educate the hotel’s guests, as As Zegmout re-affirms: “In hospitality you are bringing people together from all over the world and there is opportunity there to provide a very positive educational platform.� Willis exemplifies the shock of European tourists who find it difficult to re-adjust to not separating and recycling their waste, but he adds: “People didn’t demand change previously because they didn’t think it would happen. People are beginning to realise now that they

To identify where the problems are occurring you need to monitor should do is commission the building. Potentially that can save 18 to 20% on energy bills

360 demand Sustainability is not an issue unique

ABOUT GREEN KEY The largest global eco-label relating to accommodation, Green Key is recognised by WTO and United Nations Environment Programme (UNEP), across 44 countries. EGBC guides hotels and other tourism establishments in pursuing the Green Key eco-label, providing advisory on introducing best practices in environment and energy management. A Green Key baseline criteria in environmental management and awareness, and energy and waste. To enquire about the Green Key scheme, contact: greenkey@ emiratesgbc.org or 04-346 8244

The Radisson Blu Hotel in Media City is a recipient of the Green Key eco-label.

APRIL 2014

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Gerald Lawless CEO, Jumeirah Group

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can cause change,� while he continues to add that Zegmout’s contribution has been the driving force behind the progress of the last 12 months. He also points out that the progress of individual properties occurs on a sliding scale. While some chains start well and get better, others make less progress and take longer to change. Whether the competitive streak between the two is strong enough to drive those at the lower end of the scale without further incentive, remains to be seen. As with much of the modern world, the ethic is often “the money is rolling in�. Holistic approach As a not-for-profit organisation, EGBC is entirely reliant on members volunteering time to spearhead its work; which will involve a huge analytical task once the full survey results are in and Zegmout is ever aware of the role EGBC will play moving forward. “It helps that hoteliers are happier to have an NFP driving this. For example the technology suppliers can generate energy reports and they are useful and important, but they are essentially selling a product,� she relays. As the next generation of real estate comes online – inclusive of 160,000 new hotel rooms in Dubai alone – all constructed under a plethora of new building regulations, it will become even more important for the older hospitality assets to improve efficiency and sustainability in order to retain current ratings, as well as respect from guests. Zegmout says EGBC’s next focus will be the endorsement of local authorities and an inter-emirate, cohesive benchmarking tool – a level of collaboration Willis has wanted since 1983 – based on the collated and analysed data results. And of course, based on continued volunteer support. The stakes are high. While EGBC has big ambitions for the results it can achieve within the hospitality industry, the pressure is multiplied by the achievements of its American sister organisation, itself responsible for the development and introduction of LEED. The wider issue isn’t helped by owner demand to see rapid ROI and favouring the quickest and most visible route

COVER STORY

HOW BAD ARE THE UAE’S BUILDINGS? the largest LEED rated government carbon city (Masdar) and the highest LEED platinum rating ! " # $ $ to not-so-green real estate tells a % & '*! # + % observes: “The worst thing that $$ $

, . . somewhere else has designed something and sent it over without knowing about the culture or weather and as a result it’s $$ $ $ $ & / . is the decentralisation that has brought these decisions back to the local region and allowed an 0 adds.

Masdar City in Abu Dhabi.

upgrade work. Although it is supported by operators who today report their insistance that assets meet a base-level of sustainability criteria before they sign to operate them. While the Green Key research is still

APRIL 2014

in its infancy, one thing to emerge that is clear is the demand for a notfor-profit approach to sustainability, especially in an industry that is not only unsustainable by nature, but has the ability to inspire so many minds.

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TREND TALK

Sustainability as a business model for success Sustainability is without a doubt the biggest business opportunity of this century. By strategically

Visitors in Middle East In 2011, there were over 54.9 million visitors

By 2020, Visitor numbers to grow to 150 million

Drs Daan Elffers Founder and CEO of international sustainability consultancy EMG

I

n an era of space tourism, supersonic commercial flights, the Burj Khalifa and superhotels such as the Emirates Palace, it is clear that what’s possible is limited only by our imagination. What it really comes down to is deciding what it is we want to achieve. The mainstream approach to sustainability however, still focuses largely on reduction and minimisation - often as a passive response to increasing legislation. While efficiency is of course good business practice, the approach as a strategy is very defensive. Take a holistic view Sustainability leaders turn the traditional model of sustainability completely inside out. Instead of thinking within the set boundaries of their business, they see their organisation as an intrinsic part of the greater society and environment in which they operate. This way, their corporate values and ideals have the potential to have a much broader effect, creating

The Region’s aircraft eet increase by over 150% by 2025

Plans for 2020 Over 800 new hotels

800

750K

1M opportunities to enhance their impact and reputation on a considerably larger scale. Be ambitious Building on their unique strengths and

APRIL 2014

750,000 extra hotel rooms

500,000 to 1 million extra sta

opportunities, sustainability leaders set themselves high targets. Importantly, instead of focusing on reducing negative impacts (‘being less bad’) they focus on ‘doing more good’, in every possible way: Economically, but also

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TREND TALK

socially and environmentally. Imagine buildings that do not need external energy to operate but rather harvest their own, even generating additional income. In a region where air conditioning accounts for a full three quarters of all energy consumption, imagine a building that manages its own temperature without any energy consumption at all. In a time when indoor air quality is on average up to eight times worse than the outdoor air quality in many major cities, imagine hotels and restaurants with ‘green walls’ that produce oxygen and clean the air, enhancing the wellbeing of visitors and guests, while sequestering carbon. The examples mentioned represent just a fraction of the possibilities that exist, all contributing towards increased productivity and profitability. Implement effectively Without exception, leaders in sustainability integrate the principles of sustainability and corporate responsibility systemically and effectively. By securing sustainability practices in standard operating procedures (SOPs) and key performance indicators (KPIs), they ensure their goals and ambitions will have a maximum, immediate and quantifiable effect. Looking at the example of a light bulb from a practical perspective: If the purchasing department of a hotel is stimulated to buy only on price, it will (by default) most likely purchase the cheapest light bulb available, regardless of its attributes. However, if this purchasing department is incentivised to look at the total cost of ownership, the picture becomes very different. New possibilities arise such as leasing contracts based on ‘usage of light’ where the supplier retains ownership of both the light bulbs and the fittings, replacing them when necessary. This way, the supplier, and its supply chain, are economically incentivised to manufacture durable products made for easy disassembly and ‘upcycling’, as they can serve as valuable raw materials for next generations of products.

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Eco Flights 26% would pay a 5-10% premium to take an eco-friendly ight

38% said would pay more to take an eco-friendly ight

40% consider environmentally-friendly tourism when making travel plans

66% say environment friendly measuresare making a dierence

Eco Rooms

9%

34%

38%

9% would speciďŹ cally seek out environmentally-friendly establishments 34% would pay more to stay at an environmentally-friendly hotel 38% said they had already stayed at an environmentally-friendly property

A good strategy in an era of material scarcity! The hotel, in turn, benefits from a sustainable, high-quality lighting service at a lower total cost of ownership. Sustainability and corporate responsibility are inherently core to the hospitality business. We all strive to create a safe, healthy and pleasurable living environment, catering for our guests’ needs and desires. By taking this just one step further, we can design a world of hospitality where ladies and gentlemen not just serve ladies and gentlemen, but also bring benefit to society and the environment.

APRIL 2014

CEO of international sustainability consultancy EMG (www.emg-csr.com). Educated at Swiss hotel management school Hotel Institute Montreux, the hotelier-turned-environmentalist is an experienced management consultant through sustainable development. He is an advisor with the Cradle to Cradle Products Innovation Institute in California and is on the CSR Expert Panel for the Department of Business Economics at Erasmus University in Rotterdam. training programmes the business of sustainability in Qatar, Saudi Arabia and the UAE and will be the Chairman for 11th " #

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TREND TALK

Heartfelt Hospitality & Bio Gardening – A Perfect Hole in One! The story of Dubai’s most famous green garden

Martin Kubler Founder, Iconsulthotels FZE

T

hose of us, who have been in Dubai a little longer, might remember that in 2007 there was a lot more free space around the city than there is now. We all know how successful Dubai has been in filling this free space with world-class attractions, iconic residential and commercial developments, and even the occasional park. Mark Brettsworth, the late General Manager of what was then the Jebel Ali Golf Resort & Spa, located seemingly far outside the growing city, had a different idea when it came to making use of free space in 2007: He turned an area of unused land at the resort into the city’s first bio garden. Over the past seven years, Dubai has grown a lot bigger, and so has the bio

garden of what is now the JA Jebel Ali Golf Resort. An easy 30 minutes drive away from Dubai Marina, a full-time gardener and lots of enthusiastic volunteers, grow a large variety of fruits, vegetables, and herbs – all 100% organic. Just like Dubai, the garden is set to grow even bigger in the coming years with the addition of a greenhouse and more space for further organic produce. Fredrik Reinisch, the resort’s current General Manager, makes a convincing business case for the company’s bio gardening activities: It’s good for the environment, good for the resort’s guests, and good for the company’s bottom line. No pesticides are used in the resort’s bio garden and the resort’s CO2 emissions are reduced, because less produce has to be shipped in from outside. The hotel’s bio gardening activities also reduce the amount of waste shipped off to landfills, because the gardening team makes its own compost using waste materials from the resort’s several kitchens. The resort also installed a water recycling system that reuses water used to irrigate the resort’s golf course to water the growing bio garden. Last year, the company went a step further and

APRIL 2014

unveiled a new aquaponics system that combines conventional aquaculture (raising aquatic animals such as snails, fish, crayfish or prawns in tanks) with hydroponics (cultivating plants in water) in a symbiotic environment. Aquaponics gardening is an amazingly productive way to grow organic produce, while providing the added benefits of fresh fish as a safe, healthy source of protein. JA Jebel Ali Golf Resort’s bio garden now satisfies all the resort’s herb needs and the vegetable needs of two restaurants – the savings on not having to buy herbs from outside suppliers alone amount to approximately AED 5,000/month. Interestingly, the bio garden is virtually self-funding – the used oil from the resort’s kitchens is converted into diesel by an external company. The money raised from diesel sales pays for the full-time gardener and all tools and seeds needed to keep the garden growing. Guests at the resort not only get to enjoy locally grown, organic, produce, but are also encouraged to visit the bio garden and learn more about where the food served in the resort comes from or just relax by the watering pond in the middle of the garden and enjoy the tranquil atmosphere and the aroma of fresh herbs. The resort’s kids’ club even holds weekly gardening sessions and the company is also keen to involve local schools in its bio gardening efforts. Savings in buying quality produce from outside suppliers combine seamlessly with priceless PR value at the resort. In 2012, it was awarded the first ever Dubai Green Tourism Award, and it enjoys high profile locally and regionally amongst environmentalists and green enthusiasts. In a city that often vies for attention with “artificial” attractions such as indoor ski slopes or sprawling water parks, JA Jebel Ali Gold Resort, chose a more natural and sustainable path and is seeing its efforts pay off handsomely.

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Fine dining? Fine reading! 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.

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TREND TALK

The power of E-F&B If F&B generates 50% of revenue, why is it not given 50% of a hotel’s focus? Tiina-Maija Bergman, managing partner Table4ME, shares her observations

Tiina-Maija Bergman Table4ME

T

he shift from traditional hotel reservations to sophisticated revenue management happened in our industry over a decade ago. Since, hotels have realised the vast potential for online room reservations, which is partly driven by the impact OTA’s have had on their business in recent years. But what’s happening with restaurants here in the region? Are we realising the power of E-F&B? The answer is not fully. Yet. The majority of a hotel’s efforts, as well as its sales and marketing focus and technology investments, are still dedicated to the rooms division. We know from the market here in the Middle East that in many cases F&B contributes up to 50% of a hotel’s total revenue. Paradoxically, hotels are not investing 50% of their focus and budget towards managing and optimising this and there remains a disparity in support resources for F&B. Why? In most cases, F&B outlets, as well as other revenue generating departments such as spas and activities centres, are not considered a true business unit and their realistic profitability is not a driving force in the business. can no longer rely as much on room patrons’ contribution towards other operating departments’ demand, and are finding themselves in often unchartered waters in trying to become gym or

have had the rude awakening of realising the olden day approach just doesn’t work and thanks to this, the focus has shifted from generating ancillary revenues to managing departments in a more business-like manner. In some cases this means outsourcing to specialists, a trend we see in the management of health, spa and fitness facilities; in others it means adopting technology to support the operations to make them more efficient. the true power of E-F&B and drive more revenue to our restaurants online? Understand it !" restaurants need to have the ability to forecast accurately. To do that, they need to understand the business at a granular level. We can dissect rooms business into booking source, market segment, rate codes, room type, booking channel, etc., and we can do the same with our restaurant business. We need to know

UNLOCK THE POWER OF YOUR t Activate targeted promotions and advertising campaigns on the channel of your choice t Offer value-add promotions to increase awareness (and likes) t Have an instant call to action that is measurable t Launch marketing initiatives at

' $ t Automatically collect valuable customer data including party $ selection, etc. t Adjust your product offering * ' ' generate

APRIL 2014

who our customers are, what they like, how often they book and through which channel. We also need to understand the typical lead times for bookings and calculate our conversion and table usage rates. It all comes down to knowing who is a ‘planned’ versus a ‘chance’ customer in our restaurants. If the lemon is the restaurant, we need to learn where there # $ business performance. Plan for it It’s important to be where your diners are looking for you. Where do they want to find you and how do they want to book? This includes looking at online booking facilities on your own website, social channels such as facebook and twitter, closed loyalty sites, restaurant portals and mobile apps. Once you are set up, findable and bookable online, you can start reaping the benefits of targeted online marketing activities. An online booking engine enables restaurants to offer instant reservations that are available 24/7/365, meaning every booker gets a consistently smooth experience and restaurants can ensure that up to date information on promotions are available through the different distribution channels at all Digital and social media marketing has a big advantage in that lead times are a lot shorter than in traditional marketing, which allows for tactical, instantaneous marketing to a restaurant’s target audience. If a restaurant needs to push a lunch promotion or a dinner service for that same day, digital and social media give you the opportunity to do so. To optimise revenue, restaurants shouldn’t just be present online; they need to turn their digital media presence into a marketing channel that delivers strong ROI.

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Manage it It’s really encouraging to see that more and more restaurants have a presence on social media whether on a single channel, or across multiple platforms. This is driven by a growing appetite for online restaurant reservations in the UAE and beyond. Where I see a huge opportunity for the F&B sector is in how they use their online presence to further enrich their diners’ experience and drive more business. Business intelligence is power and restaurants need to capture important information that can help them

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market more attentively with tailored information and tactical promotions. Knowing our diners’ preferences and booking patterns gives us invaluable information. Authenticated customer feedback is invaluable information too, and when used correctly, it’s one of the best and most cost efficient ways to learn about market perceptions on how a restaurant is doing vs how they may perceive they are doing themselves. Measure it Your online booking engine and social media platforms will give you

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comprehensive, automated analytics to help understand how the business performs, to measure success and return on investment on marketing efforts, and to track customer behavior such as This is rich data restaurants can use to optimise their service offering, and since the analytics are in real time, they can keep a close tab on how the different channels of distribution are performing for their business on a daily or even hourly basis. the digital era for F&B.

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TREND TALK

Luxury and sustainability can coexist

Randa Tukan, global director of hospitality interiors, HOK

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Randa Tukan Senior Vice President and Global Director of hospitality interiors

ospitality research has consistently shown that guests expect hotels to be sustainable... and brands are responding accordingly. There are numerous opportunities for environmentally friendly interventions that can directly and positively affect the guest experience. Ventilation, dehumidification and thermal comfort are some of the primary drivers of building energy usage in the

APRIL 2014

Middle East and they have a significant effect on guest comfort. Water management is another big challenge in this industry, and more critically in this region. There are now numerous high-performance luxury water fixtures on the market that are particularly appropriate for hospitality establishments and limit water consumption at the individual level. Despite the prevalence of solar thermal hot water panels in the Middle

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East, the technology’s short payback period, and the potential for significant energy savings, it is surprising only a handful of hotels have taken advantage of the technology

But it’s guest engagement and behavior that are really the next frontier of energy performance. Not everything can be automated, so we’re seeing more feedback dashboards that can be installed in a hotel lobby, for example, to inform guests in real time how their behavior impacts building their behavior when they can see the immediate impact. On the softer side of hospitality, we have seen a significant increase in sustainable options for hospitality interiors such as sun shading devices manufactured with design-reflective backings to help reduce solar heat gain. Carpet and fabric manufacturers have developed sustainable product lines that are appropriate for hospitality applications. The key to meeting a hotel’s sustainability goals, however, is commitment to these products with proper installation of the specified and/or certified product as required to maintain its sustainable qualities. Hotel owners and developers often get seduced by alternatives that seem, on the surface, to be an equivalent replacement for these sustainable products but that actually fall short of the expected performance. Beyond the tactical, it is important to infuse sustainability into the brand. Major brands have embraced that and have designated personnel to be sustainable champions within their organisation. Owners and developers are realising the value of this increased focus. Sustainable luxury has become a deeply rooted philosophy. Just as in a polluted society, clean air, freshwater and natural light have become luxuries. In a manufactured society, honesty of materials, authenticity and ethics are valued. In a globalised society, regionalism is prized. In a high-speed society, time is cherished. Authenticity provides identity, origin and quality. Today’s !

" " the underlying story is behind the site’s history. They are looking for a hotel that engages its locale and is proud of its heritage, environment, and its people. Luxury is an enriching personal experience, allowing time # $ $ architecture, art and environment. Food, social and cultural experiences must link to geographic locations. It is about combining old-world craftsmanship and sophisticated design. Luxury is quality. Quality is longevity. Longevity is sustainability.

Randa Tukan, ARIDO, IDC, NCIDQ, LEED AP, is a global director and SVP of hospitality interiors based in HOK’s Toronto office. She has incorporated cultural and environmental cues into design concepts for InterContinental, Marriott, Renaissance, Shangri-La, Hyatt, Sheraton and Rotana. Randa led the interior design of five high-rise hotel towers at Doha City Centre, the Middle East’s largest retail development. Her current projects include a sustainable new 5-star hotel with four restaurants and a spa in Bahrain and a hotel in Doha targeting LEED Gold.

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GM INTERVIEW

IN DEMAND Motivated by government incentives for the 3 and 4-star hotel market, Hyatt is capitalising on industry opportunities with six new projects and the introduction of a new brand. Dubai area manager and GM of Grand Hyatt, John Beveridge, reveals the plans to Sophie McCarrick

APRIL 2014

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ith over 30 years’ experience at Hyatt, John Beveridge looks confidently to the future as the operator prepares to further expand its regional portfolio with the launch of Hyatt Place Deira, in addition to six new projects – reported by Beveridge to be “beyond the ideas stage� – and the debut of Hyatt’s boutique-inspired brand Andaz. The multimillion dollar pipeline marks a turning point in Hyatt’s regional development, since entering the Middle East market in 1980 with the Hyatt Regency Dubai, followed by Grand Hyatt in 2003 and Park Hyatt in 2005. Today, Hyatt is inspired by the numerous incentives driven by the Emirate’s DTCM designed to enhance hotel investment, including a 10% municipality tax waiver for 3 and 4-star hotel developments, a reduced two-month construction pre-approval process, and no fees on change-of-use of land for hotels, amongst others. Dubai’s fourth property, Hyatt Place, due to open in coming months, will be an Arabic-inspired 210-key new build property in Deira’s Al Muraqabat neighbourhood. The 4-star select service brand is to combine casual hospitality with modern design in a technologically advanced environment. Developed by wasl Properties, the hotel is one of three elements in a mixed-use development with a room inventory of 210 hotel rooms. In addition to meeting facilities, the hotel will also feature “several� F&B outlets, although the concepts behind these are still closely guarded. “The launch of Hyatt Place is something very exciting for us at Hyatt as it is the first property of its kind to open in the Middle East,� explains Beveridge while acknowledging recent developments at DTCM have left Hyatt feeling “interested and motivated to expand�. In addition to this development Dubai will also soon boast a taste of Hyatt’s boutique brand with the launch of Andaz, an upscale, lifestyle property designed for the creative-minded guest. The brand, which has seen expansion across cosmopolitan western capitals, such as London, New York and

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Hyatt Place Deira.

Amsterdam over the last 10 years, features an indigenous, artistic design described by Hyatt as capturing the “sights, sounds and tastes of its surrounding area�. “There are a lot of exciting opportunities here for Hyatt and we are very active with planned projects right now, bringing Andaz to Dubai is just one of them,� adds Beveridge. Dubai’s MICE industry potential Acting on noticeable potential in the Middle East’s MICE industry, Hyatt’s residence-inspired meeting concept was implemented at the Grand Hyatt 18 months ago in an extensive investment to further develop its conferencing facilities and satisfy the hotel’s demand, which sees 65% of annual business generated by corporate clients. Occupancy rates at the property have been boosted year on year by an influx of corporate clients, especially from the GCC region and Europe. Seizing the market opportunity, Beveridge reveals that current demand is “very high� and that occupancy this year is stronger than Q1 2013. “The Arab Health and Gulfood exhibitions in particular provided us with many corporate bookings. The MICE industry in Dubai is a very niche market with a lot of demand. Our newest, most

recently introduced meeting space is a large suite facility with seating areas, a show kitchen, a central meeting room and some smaller break-out rooms,� explains Beveridge, who views the property as a ‘city convention hotel’. The GM continues to reveal that maintaining a healthy balance between corporate and leisure business at the hotel is mainly due to the property’s layout. “We can have leisure guests staying with us enjoying recreational facilities, and have no idea that there is a conference for 600 people going on in the same hotel at the same time. With huge thanks to infrastructure, we are very lucky to have the right formula of corporate and leisure facilities,� he said.

One lesson I will take away from Dubai is that you should not just strive to be excellent to survive, but also achieve excellence to prosper

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F&B beginnings Originally from Scotland, Beveridge Hyatt in 1992. However, his journey with the brand began in 1982 as an executive sous chef at the Hyatt Regency Riyadh, followed by Hyatt Borneo as executive chef where he progressed to become regional director of F&B in East Asia. Appointed as GM of Hyatt Regency Dubai in 2008, it was only 18 months before he was appointed to the position of area director for the Emirate, as well as taking on the role as GM at Grand Hyatt Dubai. Commenting on what he describes as

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a “natural transition” he says: “This type of passage has been a culture for many years in Hyatt; the brand really believes in open-mindedness and preparing people for the next step in achieving their career aspirations. I think it is very damaging for a property if sectors work segregated from one another.” During his career with Hyatt, Beveridge has carved a reputation as the manager who handles details and broad strategies with poise; a management style honed in the Far East. It was during his time working across Singapore, Brunei and Korea that he received special titles such as the Malay title Dato, conferred on him by the Sultan of Pahang in Malaysia, and the title of Darjah Paduka Seri Laila Jasa, bestowed on him by His Majesty Sultan of Brunei. Recalling the experience, he comments: “I learnt and progressed a lot during my time in the Far East, the cultures of Singapore, Brunei and Korea particularly rubbed off on me and are still useful today. The Arabic approach to hospitality is something that has also massively shaped me as a hotelier. It is so open and sincere, their welcoming is overwhelming and these high standards really helped me set the bar.” His success and progression is something Beveridge credits to the people he has met throughout his career. “It’s all about the people, I really mean that. This industry is people intensive

GM INTERVIEW

on both sides of the business. A big team of committed people to make the hotel function effectively, and then the customers who are central to our success,” he said. Now based in Dubai, the Harley Davidson enthusiast and family man is fully immersed in the Arabic traditions of the local hospitality industry and

Hyatt Place guestroom.

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In this industry it’s hard to be part of a soccer team integrating those within the Hyatt ethos. “I love exploring the local outdoors, it’s a very therapeutic get-away from the stresses of daily life. Most of my activities are quite solitary, which has developed over the years of working in the hotelier industry. I learnt a long time ago that in this industry it’s hard to be part of a soccer team.” Reflecting on Dubai’s progress over the past ten years and what the city has in store for the near future, Beveridge is optimistic that all development plans will be fulfilled, if not exceeded, saying: “You could be intimidated as an hotelier by the fact every major brand is represented in this city, or very shortly will be; however this just makes it all the more exciting and encouraging to work harder, striving for excellence,” he continues, going on the conclude: “One lesson I will take away from Dubai is that you should not just strive to be excellent to survive, but also achieve excellence to prosper.”

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HoD PROFILE

KEY TO SUCCESS

Leading Mövenpick’s 6th Dubai property for more than three years pre-opening, DOSM Bernard G Mehawech explains the secret to recruiting new teams

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or any business, driving sales and marketing is crucial to success. Since its much anticipated opening in October 2013, Mövenpick JLT Dubai has run at near full occupancy, an achievement steered by DOSM and second in command, Bernard G Mehawech and his hand selected team. Driving the property’s marketing and sales activity for almost four

years – through GM appointments and construction delays – Mehawech has been instrumental in the opening, branding and market positioning of Mövenpick’s 6th Dubai property, which today boasts occupancy of more than 90%. Reporting that exhibitions, road shows and the rapid development of DMCC’s Jumeirah Lakes Towers – referred to be Mehawech as a microcosm of wider Dubai – were all key to today’s success,

he also emphasises that while it can be the most challenging element of the opening process, having the right team in place is also vital to success. “Due to the market competition and high demand for sales people, the challenge in Dubai is always finding the right people,” he comments, adding that experience isn’t the most important element of this process. “I believe in young, newly starting individuals who are eager to achieve and grow and who work very hard because they want to prove themselves,” he continues. Now leading a team of five sales staff, one marketing manager, one sales coordinator and four reservations specialists, Mehawech reveals that as a small property, Mövenpick JLT has been successful in converting business from competitor hotels. “The business coming from corporate companies is growing fast and leisure business is very healthy too,” he adds. Early career While the role of DOSM requires an indepth knowledge of an entire hospitality operation, Mövenpick’s Mehawech, takes it a step further. A specialist in hotel openings who has worked for international, global and

Whatever you achieve today you must achieve again tomorrow local brands in a variety of star ratings, in both resorts and city properties, he is a Lebanese national with a diverse and eclectic professional background who has even broken records for previous employers. Emphasising the importance of guest satisfaction in the region’s most competitive market, Mehawech concludes: “We are on 92% occupancy here today, but we still feel the pressure. In sales, we are thinking about the future – Whatever you achieve today you must achieve again tomorrow. People can think this is an early job and that because Dubai is booming, business is always coming. But with all the competition it isn’t such an easy catch.”

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For more information contact us at +971 (04) 3996934 | www.interfacehospitality.com

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