Hospitality Business ME | 2014 July

GLOBAL HOTEL INDEX: Asia Pacific 67%/ $119.02 - Americas 62.1%/ $119 - Europe 64.2%/ $138.91 - MEA 65.2% / $175.10 (Occupancy %/ADR $ May 2014)

Issue 27 r -uly 2014 r www.hospitalitybusinessme.com

INSIDE VP PROFILE Rotana COO Guy Hutchinson on regional expansions and the possibility of Rotana Australia

INVESTMENTS Hilton Worldwide, Preferred Hotel Group and investor insight

TREND TALK Life after free WiFi, franchising for hotels and cloud IT

ROUNDTABLE The luxury experience supported by iPads

Brand Ambition

Announcing a corporate ambition to become the world’s “preferred hospitality company” and a growth mandate that will double the regional portfolio by decade-end, FRHI president Jennifer Fox tells the story behind the global growth strategy

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CONTENTS

60

NEWS & DATA 04. Editorial board 06. News

80

09. Data 18. DTCM

PROCUREMENT 20. The balancing act

Rotana COO Guy Hutchinson on new properties and people

Pain points and trends driUing procurement, followed by The Procurement Network launch.

50. Building brand Qatar

28. Supplies and services

FRHI president Jennifer Fox on the regional expansion of heritage brands

30. Hotel security Physical and IT security under the microscope

34. Supplier spotlight EMW talk about a new solution for productiUity and eƧciency

INDUSTRY 36. Investment outlook The ƥtures behind and factors aƤecting inUestment and capital export

40. Five minutes with

Analysing the Gulf state’s supply spike

54. Brand ambitions

60. Roundtable iPad technology and its place in hospitality

67. Trend talk Cloud IT systems, hotel franchising and life after free WiFi

74. Event roundup All the news and highlights from last month’s Hospitality Business Summit

78. Sustainable luxury

Carlos *hnessier, 5P deUelopment, Hilton

The story behind The Palace Downtown’s Yero waste to landƥll initiatiUe

42. Being boutique

80. Warm welcomes

When to brand and when not to brand?

That is the question

The success story of Pullman DCC based on the GM’s top hospitality tip

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46. The main Guy

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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

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

PRODUCTION MANAGER ASSOCIATE PUBLISHER HOSPITALITY DIVISION

JAMES THARIAN

DAVE REEDER dave.reeder@cpimediagroup.com M: +971 (0) 50 450 6745

WEB DEVELOPER, HOSPITALITY DIVISION

GROUP MANAGING EDITOR

DISTRIBUTION MANAGER

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

ROCHELLE ALMEIDA

LOUIE ALMA

PRINTED BY Printwell Printing Press LLC, Dubai, UAE

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

PUBLISHED BY

SENIOR GRAPHIC DESIGNER HOSPITALITY DIVISION CHRIS HOWLETT

PHOTOGRAPHER HOSPITALITY DIVISION ANAS CHERUR

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

Head OƧce, PO Box 13700, Dubai, UAE D: +971 4 440 9100 Group OƧce, Dubai Media City Building 4, OƧce G08, Dubai, UAE A publication licensed by IMPZ © Copyright 2014 CPI. All rights reserved.

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EDITOR’S LETTER

3

BEST BUYS L

ast month the team here at Hospitality Business proudly launched The Procurement Network – a peer to peer networking event based on the idea of education and introductions.

In establishing the network, we aim to provide a platform through which hotel procurement managers can meet and speak with key suppliers to learn about each other’s businesses. But what happened at the first edition captured everybody’s attention.

While there is a general awareness that not all procurement practices are fair and transparent, the extent to which the supply chain can be corrupted – and how easily so – was shockingly evident.

The further concern is that it’s slowly becoming a culture across the industry; bribery, contracts signed but not honoured, a lack of quality assurance and even products packaged to one weight, but in reality containing less then specified in the order.

The incidence of such practices isn’t always as overt as one would expect.

What is bribery? It can be anything

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from a regular car share arrangement to an occasional gift. What can a general manager do other than to be involved in every purchase?

The loopholes were alarming; and that’s when orders are going through a central department. The issue of petty cash, how and where it is spent and the tracking of receipts, exposes even further areas of loss – which can be substantial over time. How many buyers check to ensure the box of 100 paperclips purchased, actually contains all 100 items?

As business winds down for the summer, we’re now working to organize the network’s second meeting, which will be themed around ‘buying for new builds’. Covering everything from how to break down the task, to best practice purchasing and how to avoid instilling a culture of corruption before the hotel has even opened.

We hope you can join us.

MELANIE MINGAS GROUP MANAGING EDITOR

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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 ultraboutique consulting ƥrm, which specialises 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 of Front OƧce Managers and Assistant Managers of 4- and 5-star hotels.

Founded in 1964 it has developed into an international fellowship with sections in 18 countries.The Dubai section of the AICR was founded in 2005 and has grown to become an exciting, active network for all Rooms Division Executives working and living in the city. Schmittmann is also Director of Front OƧce at the Millennium Airport Hotel Dubai.

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Revive Collection

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NEWS

1 / Omani hotels receive increased demand Statistics released by the National Centre for Statistics and Information in Oman reveal that by the end of April 2014, guest demand in Oman’s 4 and 5-star hotels grew by 23.8% YoY, from 215,074 stays in April 2013 to 266,314 this year.

This in turn led to a rise in hotel revenue for the high-end hotel sector, which rose from OMR 59,702,000 last year, to OMR 65,966,000 by the end of April 2014, representing a 10.5% rise.

Omani guests travelling within the country internally registered a 14.2% increase by April end, from 64,259 to 73,354 YoY. This rise in hotel demand follows Oman’s Ministry of Tourism’s annual report, which revealed that in 2013 they approved the development of 54 new hotels, creating a total of 2,908 rooms to Oman’s hotel inventory.

1

2 / Katara’s IHG hotel spree Katara has acquired ƥve European Intercontinental hotels from a private investor, according to a release from the company.

The Qatar-based owner, developer and operator has welcomed to its portfolio the InterContinental Carlton Cannes, the InterContinental Amstel Amsterdam, the InterContinental Madrid, the InterContinental Frankfurt, and the leasehold interest in the InterContinental De La Ville Rome.

In total Katara now has 32 hotels, exceeding its goal of 30 hotels by 2016. The company now has properties or projects in 14 countries, with a total of 7,103 rooms operational or under development.

His Excellency Sheikh Nawaf Bin Jassim Bin Jabor Al-Thani, Chairman of Katara Hospitality, said on the occasion: “We are delighted to be able to add these ƥve hotels to our portfolio of iconic properties across the world. This deal provides a major expansion of our footprint, both geographically and in terms of our hotel operator partners.”

“We are pleased to welcome the InterContinental brand

2

3 / Rotana Australia hint from COO Recently appointed COO for Rotana Hotels and Resorts, Guy Hutchinson, has said the regional operator is “looking seriouslyŚ at the possibility of ts ƥrst hotel in Australia.

Already running a representative oƧce, Hutchinson told Hospitality Business CEO Omar Khaddouri is regularly travelling to the country and exploring opportunities.

“There are no hotels signed yet in Australia but we look at it very seriously. There are a number of opportunities we are exploring and we would love to be there,” he said.

Hutchinson, who since his appointment has overseen the announcement of 10 new properties will also steer the opening of Rotana’s new commercial oƧce in Dubai.

For the full story, turn to page 46.

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NEWS

7

4 / Dubai’s double Double Tree

4

Representing the second property for Hilton Worldwide in Dubai and fourth in the UAE, DoubleTree by Hilton Dubai – Jumeirah Beach has oƧcially opened on The Walk.

Counting 110 one, two and three bedroom suites, some with fully equipped kitchens and views of the Arabian Gulf Sea and The Palm Jumierah, in addition to eight meeting rooms, a health club and ƥtness facilities, the hotel aims to attract both leisure and business travellers.

“DoubleTree by Hilton is proud to present its ƥfth opening in the Arabian Peninsula region,” said John Greenleaf, global head, DoubleTree by Hilton. “As one of Hilton Worldwide’s market-leading brands, DoubleTree by Hilton caters to both business and leisure travellers by focusing on a warm, welcoming guest service culture.

5 / 24% guest spending boost in Ramadan

5

Hotels can boost in-house guest spending by as much as 24% during Ramadan, according to research conducted by Sweetbeam.

The ƥgure follows a two month project last summer, which in tracking 45,000 rooms across Dubai’s 5-star hotels, found average spending dropped 15% over Ramadan, accelerating to as much as 40% across a family booking.

Troy Simoni, CEO of SweetBeam advised: “To avoid drops in revenue during a summer Ramadan, hoteliers need to use guest intelligence to personalise experiences so each guest is aware of the services and oƤerings that are relevant to them. For example many fasting parents will be keen to know about kids clubs to entertain young children in the afternoon, whilst international guests need to know which restaurants are open during the day. Utilising the right information to drive timely, personalised communications not only increases guest satisfaction but also dramatically boosts a hotel’s revenue during this time.”

6 / Westin opens 200th property

6

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The opening of The Westin Chongqing Liberation Square in China, marks the 200th Westin branded property globally.

Furthermore to this milestone, the brand is set to launch three more hotels in China, including the Westin Zhujiajian Resort in Zhoushan, The Westin Blue Bay Resort in Qingshui Bay, Hainan and The Westin Haikou in Hainan.

This expansion is to be mirrored in the growing Middle East market, where Westin has plans to triple its portfolio by 2016 with ƥve new properties in markets including United Arab Emirates, Saudi Arabia and Jordan.

Starwood reveals that they expect to open a total of nine new Westin hotels worldwide by 2014-end and nearly another 30 by December 2016, with almost half of those new hotels in Asia Paciƥc, the brand’s fastest growing region.

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FIGURES

Pull and tear here

9

IN FIGURES Of Qatar’s existing hotel stock could be in need of renovation, pg 54

Under contract pipeline, Brazil, recorded suppply in addition to existing, pg 16

Minimum number of holiday homes required in a portfolio to apply for Decree No. 41, pg 18

Le Meridien properties sold to Starwood

by Rocco Forte, which is now to re-enter ME with a new Jeddah property, pg46

MEA May 2014 ADR, according to STR Global, pg 10

Total of unbranded hotel stock in Abu Dhabi, compared to 56% in Ajman, pg 42

Rooms operated globally by Fairmont Raffles Hotels International, pg 58

Waste to landƥl target for The Palace Downtown, Pg 82

Base fee of gross revenue, under a standard managemeent agreement, pg 74

Of hotels now oƤer free WiFi but how to make the model pay? Pg 74

Value of Akoya Park Project Dubai Land, pg 14

Rise in average room rate, post-refurb, Pullman Deira City Centre, pg 84

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10

DATA

GLOBAL PERFORMANCE Global hotel performance analytics from STR Global, May 2014 ($) OCC%

ADR

REVPAR

% CHANGE FROM May 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Middle East/Africa

63.5

62.4

154.14

149.49

97.94

93.22

1.9

3.1

5.1

Middle East

70.2

67.7

182.76

180.93

128.38

122.49

3.8

1.0

4.8

Northern Africa

50.9

54.0

86.10

84.09

43.86

45.43

-5.7

2.4

-3.5

Southern Africa

58.2

57.9

122.38

121.63

71.17

70.48

0.4

0.6

1.0

OCC%

ADR

REVPAR

% CHANGE FROM May 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

$VLD 3DFL頭F

67.6

65.5

115.10

114.95

77.80

75.28

3.2

0.1

3.3

Central & South Asia

54.9

53.7

108.09

117.92

59.38

63.28

2.4

-8.3

-6.2

Northeastern Asia

69.2

66.0

101.64

99.64

70.30

65.78

4.8

2.0

6.9

Southeastern Asia

64.3

66.1

134.41

133.65

86.46

88.30

-2.6

0.6

-2.1

Australia & Oceania

71.8

68.7

161.89

161.68

116.17

111.11

4.4

0.1

4.6

OCC%

ADR

REVPAR

% CHANGE FROM May 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Europe

74.0

71.7

148.89

136.15

110.17

97.61

3.2

9.4

12.9

Eastern Europe

64.0

67.3

119.85

113.59

76.73

76.42

-4.8

5.5

0.4

Northern Europe

77.9

76.3

142.20

127.23

110.77

97.06

2.1

11.8

14.1

Southern Europe

71.6

68.5

146.74

138.21

105.06

94.67

4.5

6.2

11.0

Western Europe

74.7

70.4

167.33

153.02

125.05

107.70

6.2

9.4

16.1

1

1

OCC%

ADR

REVPAR

% CHANGE FROM May 2013

2014

2013

2014

2013

2014

2013

OCC

ADR

REV PAR

Americas

66.9

63.7

116.90

111.88

78.18

71.32

4.9

4.5

9.6

North America

67.0

63.8

115.84

110.89

77.59

70.75

5.0

4.5

9.7

Caribbean

65.8

63.7

174.16

162.17

114.52

103.32

3.2

7.4

10.8

Central America

53.7

55.5

109.59

109.27

58.82

60.67

-3.3

0.3

-3.1

South America

64.8

62.2

143.44

135.54

92.94

84.35

4.1

5.8

10.2

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11

DATA

YTD May 2014 RevPAR

YTD May 2014% Change 12 11 10 9

120

8 7

100

6 5

80

4 3

60

ASIA PAC

2 1

40

0 AMERICAS

-1

20

-2 0

ASIA PAC

AMERICAS

EUROPE

MIDDLE EAST/AFRICA

EUROPE

MIDDLE EAST/AFRICA

-3 -4 -5 -6

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Material supplied by

12

JOBS

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SALARY DESCRIPTION:

Spas

AED 16,000 plus AED 7,000

DEPARTMENT: Animation and

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START DATE: ASAP

Club

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LOCATION: ME/GCC (Except

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an international branded hotel

SALARY DESCRIPTION: USD

FINANCIAL CONTROLLER

Beverage Service

in Dubai, this role will require

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LOCATION: ME/GCC (Except

the executive chef to train and

START DATE: ASAP

Spas

UAE)

manage kitchen personnel

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DEPARTMENT: Finance and

SALARY DESCRIPTION:

and supervise/coordinate all

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ADDITIONAL DETAILS: A

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RECRUITER: Eagle Eye

DIRECTOR OF SALES AND

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SALARY DESCRIPTION:

Holding

MARKETING

recreation and leisure manager

Attractive salary offered

ADDITIONAL DETAILS: This

INDUSTRY: Hotels Clubs and

who has similar experience in

START DATE: ASAP

candidate must have excellent

Spas

star hotels in the Gulf region.

RECRUITER: One to One

knowledge of English and be

DEPARTMENT: Sales and

Hotels- the Village

well presented. They must

Marketing/PR

EXECUTIVE HOUSEKEEPER

ADDITIONAL DETAILS: On

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LOCATION: United Arab

INDUSTRY: Hotels Clubs and

to One Hotels – the Village,

customers and staff, and are

Emirates (UAE)

Spas

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required to have industry

SALARY DESCRIPTION:

DEPARTMENT: Housekeeping

controller who has good

experience. This candidate

Attractive salary

LOCATION: United Arab

English speaking skill, three

must be willing to live and

START DATE: ASAP

Emirates (UAE)

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work in Doha, Qatar.

RECRUITER: Hozpitality

SALARY DESCRIPTION:

Consulting

Attractive salary offered

experience in star hotels

5-star hotel in Al Khobar,

in the Gulf region, active

HOUSEKEEPING MANAGER

ADDITIONAL DETAILS: A new

START DATE: ASAP

and prompt, able to sustain

INDUSTRY: Hotels Clubs and

5-star hotel opening in Abu

RECRUITER: Hozpitality

pressure and who has good

Spas

Dhabi is looking for a DOSM

Consulting

delegation skills.

DEPARTMENT: Housekeeping

who has similar experience in

ADDITIONAL DETAILS: An

LOCATION: United Arab

Abu Dhabi’s hospitality market

Abu-Dhabi based 5-star hotel

GENERAL MANAGER

Emirates (UAE)

with star hotels.

is looking for an executive

INDUSTRY: Hotels Clubs and

SALARY DESCRIPTION:

Spas

$WWUDFWLYH VDODU\ DQG EHQHĂ´WV

PASTRY CHEF

experience in the UAE market

DEPARTMENT: General

offered

INDUSTRY: Hotels Clubs and

with star hotels.

Management / GM

START DATE: ASAP

Spas

LOCATION: United Arab

RECRUITER: Ayla Hotel

DEPARTMENT: Food

ASSISTANT F&B MANAGER

Emirates (UAE)

ADDITIONAL DETAILS:

Production/ Kitchen

INDUSTRY: Hotels Clubs and

SALARY description: AED

Candidates for this role must

LOCATION: ME/GCC (Except

Spas

30,000

have prior experience in a 4

UAE)

DEPARTMENT: Food and

START date: ASAP

or 5 star hotel, high level of

SALARY DESCRIPTION:

Beverage Service

RECRUITER: Hozpitality

commercial awareness and

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LOCATION: United Arab

Consulting

cost control capabilities. This

offered

Emirates (UAE)

ADDITIONAL DETAILS:

person will be the department

START DATE: ASAP

SALARY DESCRIPTION:

A Dubai-based hotel are

head of the team and will

RECRUITER: Hozpitality

Attractive salary offered

looking for an Arabic/

ensure company standards

Consulting

START DATE: ASAP

European general manager

are being met and ultimate

ADDITIONAL DETAILS: A

RECRUITER: One to One

who has similar experience

guest experiences are created.

renowned 5-star international

Hotels- the Village

in star hotels in the region.

Housekeeping experience in a

hotel based in Bahrain is

ADDITIONAL DETAILS:

Candidates based in Dubai

4 or 5 star hotel is required.

looking for a pastry chef.

This candidate should have

Candidates with similar

one to two years of similar

EXECUTIVE CHEF

experience in 5-star hotels

experience in star hotels in the

0$1$*(5 Ç– 6(1,25

INDUSTRY: Hotels Clubs and

in the Middle East will be

UAE/Gulf region, with good

SUPERVISOR

Spas

preferred for this position.

computing and delegation

INDUSTRY: Hotels Clubs and

DEPARTMENT: Food

Spas, Restaurant/ Bars and

Production/ Kitchen

LEISURE AND RECREATION

to sustain pressure and be

cafĂŠ

LOCATION: United Arab

MANAGER

extremely active and prompt.

DEPARTMENT: Food and

Emirates (UAE)

INDUSTRY: Hotels Clubs and

already will be preferred.

JULY 2014

12 - 13.indd 12

housekeeper who has similar

skills. They must be able

hospitalitybusinessme.com

6/30/14 3:13 PM

13

JOBS

GROUP IT MANAGER

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LOCATION: ME/GCC (Except

in international hotels, good

INDUSTRY: Hotels Clubs and

candidate should have gained

UAE)

English communication

Spas

experience for at least three

SALARY description:

skills, a positive attitude and

DEPARTMENT: IT and

years in the similar role with a

Attractive salary package

willingness to learn and grow.

Computers

reputable company.

offered

Salary will not be a constraint

START DATE: ASAP

for the right candidate.

LOCATION: United Arab

RECRUITER: CHA International

Emirates (UAE)

EXECUTIVE CHEF

SALARY DESCRIPTION:

INDUSTRY: Hotels Clubs and

ADDITIONAL DETAILS:

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DOSM is required for a

OPERATION MANAGER

START DATE: ASAP

DEPARTMENT: Department

property in Doha, Qatar, who

INDUSTRY: Hotels Clubs and

RECRUITER: Hozpitality

Head

will be responsible for all

Spas

consulting

LOCATION: United Arab

marketing and sales activities.

DEPARTMENT: Food and

ADDITIONAL DETAILS:

Emirates (UAE)

The candidate should have

Beverage Service

Recruiters are looking for

SALARY DESCRIPTION: AED

experience in the same

LOCATION: Asia, ME/GCC

a group IT manager who is

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(Except UAE),

able to work between hotels

START DATE: ASAP

and hold a valid UAE of Qatari

SALARY DESCRIPTION:

in the UAE and Oman. This

RECRUITER: Apt Resources,

driving license. Candidate

Competitive salary

candidate should have similar

Dubai

should be preferably aged

START DATE: ASAP

experience in star hotels

ADDITIONAL DETAILS: For

between 30 and 40.

RECRUITER: Islamabad

preferably in UAE/GCC region.

a reputed global chain of

BANQUET SALES AND

Marriott Hotel

hotel set to open in Dubai,

DIRECTOR OF EVENTS

ADDITIONAL DETAILS:

KEY ACCOUNTS MANAGER

this candidate must have

INDUSTRY: Hotels Clubs and

This position will require the

INDUSTRY: Hotels Clubs and

a minimum of two years

Spas

candidate to be responsible

Spas

of experience in the same

DEPARTMENT: Food and

for the overall sales of

DEPARTMENT: Finance and

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Beverage Service

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LOCATION: United Arab

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LOCATION: United Arab

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SALARY DESCRIPTION:

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Emirates (UAE) SALARY DESCRIPTION:

RECREATIONS MANAGER

Attractive salary offered

and service ability of all staff

Negotiable

INDUSTRY: Hotels Clubs and

START DATE: ASAP

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START DATE: ASAP

Spas

RECRUITER: Hyatt Regency

they will provide the highest

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DEPARTMENT: Animation and

Dubai

possible level of service

ADDITIONAL DETAILS: Liwa

Recreation

ADDITIONAL DETAILS: This

to achieve highest guest

Hotel’s parent company

LOCATION: United Arab

person will be responsible for

satisfaction.

located in Dubai is looking for

Emirates (UAE)

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a key accounts manager with

SALARY DESCRIPTION:

division in line with Hyatt’s

CHIEF ENGINEER

both hospitality and residential

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International’s Corporate

INDUSTRY: Hotels Clubs and

backgrounds. Experience in

START DATE: ASAP

Strategies and brand

Spas

the Middle East is preferred.

RECRUITER: Aloft Abu Dhabi

standards, whilst meeting

DEPARTMENT: Engineering

ADDITIONAL DETAILS: The

employee, guest and owner

and projects

RISK MANAGER

recreations manager will

expectations.

LOCATION: United Arab

INDUSTRY: Hotels Clubs and

represent management in

Spas

the area of guest relations

ASSISTANT IT MANAGER

SALARY DESCRIPTION:

DEPARTMENT: Security and

within the outlets of recreation

INDUSTRY: Hotels Clubs and

Attractive salary package

Transport

department, which is

Spas

offered

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START DATE: ASAP

UAE)

role are “host� of personally

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welcoming as many guests

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Consulting

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offered

highest standard of service.

SALARY DESCRIPTION:

chief engineer is required for

START DATE: ASAP

Attractive salary offered

a Dubai based hotel, who has

RECRUITER: Hozpitality

START DATE: ASAP

previous experience in the

Emirates (UAE)

Consulting

DIRECTOR OF SALES &

RECRUITER: Fraser Suites

Middle East region. Medical

ADDITIONAL DETAILS: A

MARKETING

Doha

insurance, life insurance,

risk manager is required for

INDUSTRY: Hotels Clubs and

ADDITIONAL DETAILS:

return annual ticket, 30 days

a 5-star international hotel in

Spas

Fraser Suites Doha is looking

annual vacation and laundry

Doha, Qatar. A college degree

DEPARTMENT: Sales and

for an assistant IT manager

and meals are all provided in

in risk management or related

Marketing/PR

who has similar experience

the salary package.

hospitalitybusinessme.com

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JULY 2014

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14

TENDERS

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

Contracting & Trading Company (Kuwait) BUDGET : ($) 210,000,000 STATUS : Current Project

TENDERS

NAME : Accor Hotel Complex Project DESCRIPTION : Construction of a hotel complex comprising

All the latest tenders information you need to know about

two basement levels, a ground ĂľRRU D PH]]DQLQH ĂľRRU DQG VL[ DGGLWLRQDO ĂľRRUV CLIENT : Accor Group (Dubai) COUNTRY : Qatar CONSULTANT : Alonso +HUQDQGH] $VRFLDGRV (Qatar) CONTRACTOR : Al Bandary Group (Qatar) BUDGET : ($) 25,000,000 STATUS : Current Project NAME : Vendome Shopping Mall Project - Lusail Entertainment City DESCRIPTION : Construction of a Shopping Mall as well as hotels and residential accommodation.

CLIENT : Qatari Diar Real Estate Investment Company (Qatar) COUNTRY : Qatar CONSULTANT : Projacs International (Qatar) CONTRACTOR : Construction & Reconstruction Engineering

NEW & CURRENT PROJECTS

DESCRIPTION : Construction of

CLIENT : Rayadah Investment

NAME : Jumeirah Beach Hotel

a new Hotel comprising (272)

Company (Saudi Arabia)

Company (Qatar) BUDGET : ($) 45,000,000

Expansion Project - Phase 5

rooms.

COUNTRY : Saudi Arabia

STATUS : Current Project

DESCRIPTION : Construction

CLIENT : Majid Al-Futtaim

CONSULTANT : Hill

of an ultra-luxury resort

Properties (Dubai)

International Middle East Ltd.

NAME : Juman Park

comprising (350) hotel rooms

COUNTRY : UAE

(Saudi Arabia)

Development Project

with panoramic beachfront

CONSULTANT : KEO

BUDGET : ($) 134,000,000

DESCRIPTION : Development

views, including recreational

International Consultants

STATUS : New Project

of a Park, spread over an area

marine facilities that

(Dubai)

NAME : Madinat Al-Fahaheel

of 55,000 square meters with

encompass spas, health clubs,

BUDGET : ($) 40,000,000

Project - Phase 2

facilities, including private

elevated tennis courts, a world-

STATUS : New Project

DESCRIPTION : Development

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of a large mixed-use waterfront

for children, an amphitheater

class sports complex and a range of ocean-facing retail,

NAME : Museum of the Built

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and multi-sports courts.

food and beverage outlets.

Environment Project - King

star hotel, a conference and

CLIENT : King Abdullah

CLIENT : Jumeirah International

Abdullah Financial District

event hall, shopping centers,

Economic City (Saudi Arabia)

(Dubai)

DESCRIPTION : Construction

international entertainment

COUNTRY : Saudi Arabia

COUNTRY : UAE

of a Museum comprising

venues, etc.

STATUS : New Project

permanent and temporary

CLIENT : Tamdeen Real Estate

CONTRACTOR : New Job

galleries, a 150-seat auditorium

Company (Kuwait) Kuwait

Contracting Company (Saudi

NAME : Westin Hotel Project -

and a destination restaurant

Deira City Center

and terrace.

JULY 2014

14 - 15.indd 14

Arabia) CONSULTANT : Ahmadiah

BUDGET : ($) 12,000,000

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15

TENDERS

STATUS : Current Project

NAME : Mall of Qatar Project

July 15, 2014

Secretariat (Iraq)

DESCRIPTION : Construction

ADDRESS : D2 Compound,

NAME : Akoya Park Project –

of a new shopping mall

NAME : Public Authority

Dubailand

comprising three storeys

for Housing &

International Zone

DESCRIPTION : Construction

featuring a hypermarket, a

Welfare (Kuwait)

COUNTRY : Iraq

of 4.3 million square feet of

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CITY : Safat

PHONE : (+962-6)

open parkland, a man-made

stores and at least 20

13094

beach and luxury villas.

restaurants, in addition to

3267$/Ç–=,3

CLIENT : Damac Properties

a car park with capacity to

CODE : 23385

(Dubai)

accommodate (7,000) cars.

COUNTRY :

COUNTRY : UAE

CLIENT : Private Investor

Kuwait

CONSULTANT : Naga

(Qatar)

PHONE : (+965)

Architects, Designers &

COUNTRY : Qatar

2530 1000

CITY : Baghdad

$6bn

550 4700 NATURE OF WORK : Provision

Akoya Park Project,

of Catering

DubaiLand

Services.

LAST DATE OF SUBMISSION : July

Planners (Dubai)

CONSULTANT : Chapman

FAX : (+965) 2538 7464

BUDGET : ($) 6,000,000,000

Taylor (UK)

WEBSITE: http://www.housing.

STATUS : New Project

CONTRACTOR : UrbaCon

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NAME : Amiri Diwan (Kuwait)

General Contracting (Qatar)

NATURE OF WORK : Provision

CITY : Kuwait

STATUS : Current Project

of hospitality services.

COUNTRY : Kuwait

COST OF TENDERS : ($) 75

PHONE : (+965) 1800008 /

NAME : Hilton Fujairah Corniche Resort Project

3, 2014

DESCRIPTION : Construction

NAME : City Centre Project –

LAST DATE OF SUBMISSION :

2846 2116

of a hotel resort comprising

Sharjah

July 15, 2014

FAX : (+965) 2222 1417

(280) rooms, (10) villas

DESCRIPTION : Construction

comprising (120) to (150)

of a new City Centre.

NAME : Ministry of Foreign

of catering services.

rooms, a retail shopping centre

CLIENT : Majid Al-Futtaim

Affairs (Saudi Arabia)

COST OF TENDERS : ($) 536

development and a car park

Properties (Dubai)

ADDRESS : Nasseriya Street

LAST DATE OF SUBMISSION :

building.

COUNTRY : UAE

CITY : Riyadh 11544

July 6, 2014

CLIENT : Hilton International

STATUS : New Project

3267$/Ç–=,3 CODE : 55937

(Dubai)

NATURE OF WORK : Provision

COUNTRY : Saudi Arabia

NAME : Ministry of Awqaf &

COUNTRY : UAE

NAME : Al-Khor Stadium

PHONE : (+966-1) 406 7777/

Islamic Affairs (Kuwait)

CONSULTANT : Aeroports

Project

405 5000/ 441 6836

CITY : Safat 13001

de Paris International - ADPi

DESCRIPTION : Construction

FAX : (+966-1) 403 0645/ 403

3267$/Ç–=,3 CODE : 13

(Dubai)

of a new stadium with capacity

0159

COUNTRY : Kuwait

BUDGET : ($) 250,000,000

of (60,000) seats.

EMAIL : information@mofa.

PHONE : (+965) 2246 6300 /

STATUS : New Project

CLIENT : Qatar 2022 Supreme

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2248 0000

WEBSITE: http://www.mofa.

FAX : (+965) 2244 9943 /

Committee NAME : 1L]ZD

(Qatar)

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2241 9472

Grand Mall

Qatar

NATURE OF WORK : Provision

EMAIL : info@awkaf.net

CONSULTANT :

of hospitality services and

WEBSITE: http://www.islam.

Albert Speer &

cleanliness of buildings.

gov.kw

Partner GmbH

LAST DATE OF SUBMISSION :

NATURE OF WORK : Catering

(Germany)

July 6, 2014

of buffets and meals.

$25m

Project DESCRIPTION : Construction of a Shopping

Accor hotel complex

Mall comprising

project, Qatar

restaurants,

STATUS : New Project

entertainment

COST OF TENDERS : ($) 270 NAME : Aspire Foundation

LAST DATE OF SUBMISSION :

ADDRESS : Opp. Khalifa

July 6, 2014

and children’s play areas

NEW TENDERS

Stadium & Aspire Academy

and many shops, in addition

NAME : Public Authority for

CITY : Doha

NAME : Jouf Health Affairs

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Housing & Welfare (Kuwait)

COUNTRY : Qatar

(Saudi Arabia)

prayer room, toilets and other

CITY : Safat 13094

PHONE : (+974) 4447 6786

CITY : Jouf

facilities.

3267$/Ç–=,3 CODE : 23385

WEBSITE: http://www.

COUNTRY : Saudi Arabia

CLIENT : Ministry of Defence

COUNTRY : Kuwait

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PHONE : (+966) 4624 9100

(Oman)

PHONE : (+965) 2530 1000

NATURE OF WORK : Supply

FAX : (+966) 4624 7300

COUNTRY : Oman

FAX : (+965) 2538 7464

and delivery of chinaware &

WEBSITE: http://www.moh.

CONSULTANT : Amjaad

WEBSITE: http://www.housing.

operational equipment.

gov.sa

Consultancy (Oman)

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COST OF TENDERS : ($) 85

NATURE OF WORK : Provision

CONTRACTOR : Amjaad

NATURE OF WORK : Provision

LAST DATE OF SUBMISSION :

of Nutrition Services.

Contracting (Oman)

of hospitality services.

July 8, 2014

COST OF TENDERS : ($) 270

STATUS : Current Project

COST OF TENDERS : ($) 5360 LAST DATE OF SUBMISSION :

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14 - 15.indd 15

LAST DATE OF SUBMISSION : NAME : United Nations

August 12, 2014

JULY 2014

6/30/14 3:26 PM

16

GLOBAL DATA

RevPAR drops as Brazil gears up for World Cup The country’s football team may still be going strong in the World Cup, but hotel performance saw a decline in RevPAR prior to kick oƪ

A

ccording to data from STR Global, hotels in Brazil have experienced declines in revenue per available room as they prepare to host the FIFA World Cup, which kicked off on June 12 The country’s performance is following a similar trend observed by other host countries, including Germany and South Africa.

South Africa saw sharp declines in occupancy before the start of the World Cup, which was mainly driven by an increase in room supply and averagedaily-rate growth. Brazil’s year-to-date performance has declined due to lower occupancy levels during March and April.

After experiencing low rates at the start

of the year, Brazil has increased ADR, partly as a positive result of the Carnival.

The overall supply trend for Brazil shows a countrywide supply compound annual growth rate (CAGR) of 1% since 2008. The supply growth has been flat since 2008, and the country has not seen any sharp rises leading up to the World Cup or the Olympics. Since 2012, Brazil has seen a decline in demand following a positive trend of growth for more than two years.

During the previous years, Brazil was able to consistently increase ADR without significantly impacting occupancy rates. Brazil’s previous increase in ADR is driven primarily

JULY 2014

16.indd 16

by increasing inflation rates seen throughout the previous years, which is currently at 6.4%.

Despite the historical supply growth, the Under Contract Pipeline of the country recorded an additional 21% supply on top of existing supply, of which 23,600 rooms are projected to open by the end of 2015. Of this 69% of growth is allocated amongst the Economy, Midscale and Upper Midscale classes. International hotel brands are increasing their portfolios in Brazil, with projects not restricted to main tourism destinations or large cities, but also converging smaller city destinations that have significant growth potential.

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18/06/2014 17:27

18

DTCM

Honouring UAE national hospitality graduates 30 graduates commended by DTCM Emiratisation drive Reinforcing its support and encouragement of young, qualified UAE nationals who opt to work in the hospitality and tourism sector, DTCM has honoured 30 new nationals graduating with hospitality degrees in the UAE. After successfully completing ‘START’, DTCM’s vocational programme, the graduates were honoured at an awards ceremony held at Mina A’Salam in

Madinat Jumeirah, which was attended

by Ibrahim Yaqoot, executive director, corporate support from DTCM along with general managers, HR directors, training directors and managers from the hospitality sector.

Operated in cooperation with the American Hotel and Lodging Educational Institute (AHLEI), the ‘START’ programme includes a series of intensive training

courses aimed at providing young professionals with the knowledge and skills required for long-term careers in an industry which continues to be a key pillar of Dubai’s economy.

Illustrating the growth of Emiratis in hospitality, in 2002 there were 15 UAE nationals working in this sector, a number which has since increased to around 300 today.

New licence procedures for holiday home operators DTCM announces new, mandatory license regulations for holiday home operators The use of residential properties as holiday homes is now restricted to licensed operators only, following the implementation of the December 2013 Decree No.41, on June 15, 2014.

The Department of Tourism and Commerce Marketing (DTCM) has revealed it is now receiving applications for the license, enabling home owners to become an operator of holiday homes.

Only those entities who intend to become operators of a portfolio of properties, with a minimum of 20

properties within their portfolio, will be able to enter into the first phase of applications. Home owners who wish to rent out their property as a holiday home will be required to use the services of a licensed operator, with their property becoming part of the operator’s portfolio.

Khalid bin Touq, executive director of licensing and classification, DTCM, commented: “Through regulating the use of properties as holiday accommodation, the objective is to broaden the range

JULY 2014

18 - 19.indd 18

of options available to visitors, while ensuring that the high standards of quality for which Dubai is known, are maintained.

“Visitors booking their accommodation through licensed operators will have the assurance that the accommodation they are booking has been classified in line with global best practices, while owners of properties will benefit from the expertise and marketing capabilities of the operator through which they will rent out their property,” he added.

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DTCM

19

Burj Al Arab recognised as the world’s best hotel Daily Telegraph’s Ultratravel readers vote Dubai’s Burj Al Arab as ‘best hotel in the world’ For the second consecutive year, the 202-key Burj Al Arab, operated by Jumeirah Group, has been awarded the ‘best hotel in the world’ by Daily Telegraph’s annual Ultimate Luxury Travel Related Awards (ULTRAs) reader survey.

At the ULTRA award ceremony hosted in London, the hotel also won ‘best hotel in the Middle East’ for the eighth time.

Jumeirah Group’s president and group CEO, Gerald Lawless said: “Winning this award is a great endorsement of Burj Al Arab’s recognition as the world’s most luxurious hotel. As the operator of this extraordinary property, Jumeirah Group thanks the readers of Ultratravel and our guests for their continuous support.”

The ULTRAs reader survey recognises the best voted luxury hotels, airlines, cruise companies, spas and destinations around the world, to provide international travellers with a trusted advice platform, compiled using consumer opinions.

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JULY 2014

6/30/14 3:28 PM

20

PROCUREMENT

The procurement balancing act As hotel spending budgets and corruption rise simultaneously, procurement managers are increasingly Ƭnding themselves stuck between a rock and a hard place. Sophie McCarrick investigates how the increased activity is aƪecting both buyers and vendors

A

s much as 50% of a hotel’s total budget can be spent on the procurement of services and supplies to the property; a figure which is affected by everything from refurbishment cycles to the demands of department heads and owners.

The hotel’s procurement processes are often seen only as an exercise in cost control. But in juggling the influences of hundreds of suppliers, as well as internal demands and guest expectations, the practice becomes much more.

Factors such as unreliable and complacent stockists, last minute orders, late deliveries and poor product manufacturing, ensure procurement professionals are up against a different challenge every day.

But so too are the suppliers of the region, who are continuously confronted by late purchase orders and payment deliveries, lack of access to decision makers, plus growing, incoming competition that provides products at lower rates.

Supplying to the hospitality industry and dealing with procurement and purchasing teams on a daily basis, Baiju Jamaludin, regional sales manager for Burgess Furniture, Middle East, noted that working as a foreign company in this region’s procurement industry has posed challenges for the firm.

He explains: “The challenges as a foreign company selling into the region have mainly been in getting our specifications across to the purchasing decision makers involved in hospitality projects. We are also challenged with local companies copying our designs, then quoting the respective project with reduced priced to procurement teams.

To overcome this, it would help if a law was implemented in the region to protect the designs of foreign companies.”

On the other hand, reflecting on positive experiences with procurement and purchasing managers in this region, Jamaludin believes: “Hotel procurement managers are very

well trained and have vast experience from dealing with a wide range of suppliers on a day to day basis. They have their preferences, however they also adhere to what the owning company wants, which gives direction to their purchase requests.”

Commenting from the hotelier perspective Brendan Johnston, director of purchasing for The Restaurant Group, Jumeirah, reveals that it would be useful for his team if suppliers targeting the hospitality industry remained more focused on product quality, pricing and customer service.

“In Dubai, I’m finding quite a number of suppliers that have become far too comfortable. It’s important that they remember there are always alternative choices in this fast-paced market and it is critical everyone steps up their processes.

Product quality, pricing and customer service are all key to sourcing suitable suppliers,” he says.

Moving forward with strengthening the relationship between procurement/ purchasing managers and suppliers, Johnston explains that by spending more face time with suppliers who are reviewing issues in the market and seeing how they can improve their internal practices to better support procurement teams in current and future properties, the two sides will be able to work better together.

“Improving quality improves the guest experience, so it’s a win-win situation for everyone,” adds Johnston.

Internally working against purchasing challenges, he says: “Working at Jumeirah, we have a dedicated division that analyses commonly used products and services between hotels. This team is responsible for negotiating the price and terms to make re-orders easy for staff members in the future.”

As a large percentage of products are imported to the Middle East, Johnston notes that although Jumeirah does not have

We are also challenged with local companies copying our designs...It would help if a law was implemented to protect the designs of foreign companies

JULY 2014

20 - 21.indd 20

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21

PROCUREMENT

Late delivery

Lack of budget transparency

Accurate Product Speci頭cations

Budget increase

Lack of legal frameworks

hospitalitybusinessme.com

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GUEST EXPECTATIONS

Introduction of half- cycle CAPEX solutions

BUDGET DEMANDS

Quality of 頭nished products

Lack of dialogue across industry

Communication breakdown

Last minute orders and short leadtimes

JULY 2014

6/30/14 3:30 PM

22

PROCUREMENT

issues with sourcing particular items, they do occasionally deal with supplier inventory issues, where stock is not readily available or in large enough amounts, forcing them to find lastminute alternative solutions.

Overcoming supplier issues In an ever-growing market, Jubilant Clement, segments specialist for Interface, explains that the main challenge he faces as a hospitality supplier is the lack of access to decision makers and influencers for new entrants in the market.

“There is no platform providing opportunity to review the traditional specifications followed by procurement specialists and establish a meaningful discussion on the new trends and products. That’s a key challenge.

I feel there are not enough procurement professionals in this region who care about the needs for audited, third part certified and sustainable products and suppliers, if this were the case many suppliers who do things the correct way would be much more successful,” Clement comments.

Moving forward he believes that in order for procurement teams and suppliers to maximise their joint business potential, transparency in the procurement process must be achieved, in addition to a change in attitude to embrace change and accept new ideas.

“Many purchasing teams established in Dubai are not open to change or trying out new things, which prevents growth in the market. Professionals in this sector must realise the

potential of procurement platforms that offer direct interaction with key co-professionals in the industry; such as The Procurement Network,” he adds.

Looking at the region’s supplier market on a large scale, Sonia Machado, sales manager at Leather Doctor voices: “There are a lot of small or unorganised players in this market, which is due to the fact that many industries have no regulations here, like they have in America or Europe. Because of this most business becomes a war of the better price.”

Despite the observation however, Machado advises the implementation of balance when comparing quotes. One or two is good, any more could be detrimental. She adds: “When procurement teams are taking up to seven product quotes I think it actually confuses them and good suppliers loose out in the process. This region seems to lack planning, which is why so many orders are placed last minute putting a lot of pressure on the supplier and product quality.”

From the supplier perspective, it appears the deliverance of high-standard products would work more effectively if hotel purchasing teams placed their upcoming stock requirements in advance, whilst working on annual contacts.

“This would allow both suppliers and buyers to focus more on building long-term relationships, beneficial to both sides,” Machado concludes. But as the industry knows, balancing the scales requires a concerted effort for change, on both sides of the fence.

There are not enough procurement professionals in this region who care about the needs for audited, WKLUG SDUW FHUWLƬHG and sustainable products and suppliers

JULY 2014

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24

PROCUREMENT

Last month, Hospitality Business celebrated the launch of The Procurement Network at Fairmont, The Palm. As the Ƭrst networking event of its kind in the UAE, procurement professionals were provided with the opportunity to meet and learn about the latest trends and products in hospitality

O

fficially launched on June 9, The Procurement Network’s inaugural event held at Fairmont, The Palm, presented procurement managers, key buyers and suppliers of hotel equipment and services with an educational opportunity to network.

Inviting key industry personalities, the event welcomed procurement professionals from Al Habtoor Group, Grand Hyatt, Auris Plaza Hotel, Rotana, Mövenpick Hotel Jumeirah, Pullman Deira, Jumeirah Group, Dusit Thani and more.

The after work event, sponsored by specialist hospitality suppliers, Infor Hospitality, The Leather Doctor and Protect-a-Bed, featured two educational presentations including a best practice session on procurement and upcoming

trends in the Middle East, delivered by Mike Walden from 4 Corners Trading.

Following the success of the first event, The Procurement Network will return in September. To register to attend this event, visit: www.hospitalitybusinessme. com/allevents or scan the code below:

Attendees at The Procurement Network.

Wolfgang Empreger, vice president, Infor Hospitality, also presented.

JULY 2014

24 - 27.indd 24

The Leather Doctor Team, Sonia

Ranjit Sharma, procurement at

Machado, A.S Dileep and Mohd

Dusit Thani and Sushil Samtani,

Ameem, event sponsors.

Park Street.

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25

PROCUREMENT

Mariam Al Johar, The Parker Company, and Jessica Lee, Absolute Lifestyle, were among the attendees.

The Procurement Network allows for audience interaction, with Q&As following each education session.

Mike Walden, Four Corners Trading,

Jubilant Clement from Interface

presented the

networks with Jumeirah

educational element of

Group’s director of purchasing,

the event.

Brendan Johnson.

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JULY 2014

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26

PROCUREMENT

Lindsay Reyes, Intermetal; Nalini Dev, Orsini Spi; and Rebecca Tadesse Intermetal.

Event sponsors were provided with one-to-one meeting opportunities.

Rabee Abu-Kishek, Al Qasr Hotel Jumeirah; Jessica Pakenham-Money, Gerro O’ Leary; Stephen Speter and Mikkel Kannegaard, 36 Strategies.

Manesh Balani, Direct Hotel

Nalini Dev,Orsini Spi; Lynne Fairbairn, Daniel

Supplies with Rachel Matthews

Hall, Truebell Marketing and Trading; and

and Gavin Dodd from Ronai.

Asma Wahid, Tradeways International.

SPONSORED BY:

JULY 2014

24 - 27.indd 26

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Presents

Buying for new build hotels Save the date: September 22, 2014

The Procurement Network will return in September with an event themed around buying for new build hotels in the UAE. Register your interest to attend by scanning the QR code below, or visit www.hospitalitybusinessme.com/allevents

For unique networking opportunites tailored to your business needs please contact: Sales Director Sarah Motwali sarah.motwali@cpimediagroup.com D:+971 4 440 9113 M:+971 50 678 6182

Sales Manager Julie Caulton julie.caulton@ cpimediagroup.com D: +971 4 440 9112 M: +971 56 778 9793

Organised by:

27 PROCUREMENT ADVERT.indd 20

7/1/14 10:06 AM

28

SUPPLIES & SERVICES

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

Polynesian themes with ash wood

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In an attempt to take luxury back to basics, yearold Sofitel The Palm Dubai has been modelled on a Polynesian village, fresh with green foliage, cabana-style fittings, and flowing water features. The green, vibrant environment uses ash wood from the American Hardwood Export Council (AHEC) and is the work of Mahnaz Liaghat, CEO, Mahnaz International Design and Planning. The lobby is set below a traditional, natural wood cabana, complete with water elements, which complement guest relaxation areas.

Nespresso has launched Fortissio Lungo Grand Cru, a coffee that reaches notch eight on the Nespresso coffee intensity scale, which goes up to 12. The work that Nespresso coffee experts have undertaken in increasing the complexity and boldness of the coffee has been achieved without changing to a darker roast.

The texture of this new coffee comes from the fullbody and raw character of the Malabar Arabica, and its profile complexity from the structure, roundness and subtleness of Latin American Arabicas.

Designed sustainable technology New this year, Duravit is investing in high-contrast design and sustainable technology with the Vero furniture collection. Vero by Duravit is an elementary model with carefully balanced proportions and strong design identity. The open compartment of the furniture console aims to show that less is more: a shiny chrome frame is a characteristic design feature and also serves as an integrated towel holder, while optional LED ambient lighting below the console is both sustainable and atmospheric.

JULY 2014

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SUPPLIES & SERVICES

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A modern summer

Regional manufacturer, retailer and distributor of premium beds, bedding and bedroom furniture, Intercoil International, has been honoured with the Dubai Human Development Appreciation Award (DHDAA). An initiative of the Department of Economic Development, under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, the award credits Intercoil’s 40 year track record of business excellence built on trust, integrity and respect for human values.

Outdoor furnishing company, Fiore Rosso, has launched a new range of summer inspired furniture in Dubai that brings focus to cool hues and a modern look. Made in Germany and brought to the UAE, the product embodies top comfort quality coupled with chic design. To provide longevity and durability, the furniture is made with high quality PE rattan wicker and water proof fabrics. Items in the collection feature a five seat living set, a rocking chair, lounge seating, dining sets and more. The one piece Belen Lounge (pictured) features in the collection at AED 18,200.

2FHDQ LQVSLUHG FDUSHW WLOHV Global design manufactures of carpet tiles, Interface, has been awarded the Index Product Design Award for its widely acclaimed ‘net effect’ carpet tile collection. Winning the top accolade in the surfaces and finishes category, the ‘net effect’ collection is inspired by both the ocean’s life-giving power and its plight. The collection provides a subtle visual reminder of the sea on its surface, with a design reminiscent of swirling currents.

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PROCUREMENT

A stay out of harm’s way With assurance of guest safety and wellbeing paramount to a hotel’s reputation, Sophie McCarrick explores security methods, trends and innovations implemented in today’s hospitality industry

W

itness to the coming and going of over ten million visitors per year, Dubai’s hospitality industry is faced with the continuous task of maintaining strong security forces and infallible protection methods within hotels.

Housing a heavy percentage of high-net-worth individuals travelling on business or leisure, hotels in the Middle East work around-the-clock to ensure guest safety, through methods such as regular defence training, full CCTV camera coverage, advanced security technology and even social media.

Mahdi Juma, director of security at Kempinski Mall of the Emirates explains: “All hotel security agents are trained regularly by Dubai Police Academy and all staff members are briefed every morning on security expectations and demands. Every individual requiring additional training will attend specific workshops at Dubai Police Academy to be fully trained before they start working at the hotel.”

With full camera coverage of every public area of the hotel, metal scanners for suitcases and an ANPR (automatic number plate recognition) system on security barriers at Kempinski, Juma noted that technology plays an ever-important role in

keeping guests safe. “Thanks to advances in technology and social media we are able to keep guests and Civil Defence aware of what is happening at all times. Each and every area of the hotel is a focus for us to assure maximum safety, security and comfort of our guests and employees. During guest check-in, Dubai police procedures are strictly followed, allowing us to know who is in the hotel at all times. As per Dubai Municipality regulations, every hotel must have one fire drill per year, however we organise them regularly to train employees on procedures,” adds Juma.

As per Dubai Municipality regulations, every hotel must have one ƬUH GULOO SHU \HDU

Crucial security providers While physical and electronic security systems play a key role in any hotel security strategy, it is hotel and security staff themselves who provide the most crucial input to effective security, explains Simon Currie, director of Transguard Security Services an Emirates Group security provider.

Although hotels depend extensively on technology, which enhances security within all properties, this has to be used by well trained and qualified staff who are able to operate applications effectively and efficiently without affecting the

Safemark safe.

Sayed Ahmed, Kempinksi Mall of The Emirates security manager.

Essence InRoom by elsafe.

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PROCUREMENT

31

Celcius from elsafe.

HOTEL SECURITY MEASURES OF TODAY: t Thermal imaging cameras that see through smoke t %LRPHWULF ƩQJHUSULQW DQG UHWLQD LGHQWLƩFDWLRQV t Individual credit card/electronic access room-locking systems t Wireless transmission of in-room smoke detectors to a central point t Suitcase metal scanners t ANPR (automatic number plate recognition) t Social media

guest experience. Commenting on reasons behind the growing technological trend, Currie says: “Hotels have had to increase the capabilities of their electronic surveillance systems following a major international security incident that took place within a Dubai hotel in 2010.

“We have seen huge investment programmes in active security systems that include video surveillance, access control, intrusion detection systems and X-ray machines at hotel main entrances. These systems have required enhancements in the training and qualifications required of all security staff deployed within the hospitality industry.”

From the hotel perspective, head of security at Radisson Blu Dubai Media City, Urfan Afzal, believes in order for technical systems to be successful, the main entrance and exit doors of a property need to be most critically guarded and maintained to ensure welfare.

“It is essential that the lobby and entry doors are always guarded and under CCTV coverage. For overall visitor protection all security guards are trained by Dubai Police Department of Protective Systems, and all staff undergo training in the Hospitality Awareness Programme by Dubai Police. They are taught and prepared for all eventualities, even to deal with suspicious situations such as excessive luggage in a guestroom, fire-fighting and manually operating the elevators, in case of power failure or mechanical fault.”

Biometrics.

Joe Foley , SafeMark.

Urfan Afzal, head of security,

Protecting through technology Supplying to brands such as Marriott, Starwood, Hyatt, Radisson and Hawthorn, SafeMark’s sales vice president, John Foley takes a look at current trends and reveals that although guestroom safes have traditionally been hidden in case goods or secured in wardrobes, they are now being kept in more visible areas.

He comments: “The current trend is to place safes in a more visible location for easier guest access. This has driven us to enhance our product line to include distinctive finish options which complement room décor. Our new LTX 17” laptop safe was inspired by leading hotel designers and incorporates a curved, elliptical face with several signature finishes.”

Noting technology’s crucial role in hotel security today, Manit Narang, vice president, Middle East, India and Africa, VingCard Elsafe, explains that: “Today, implementation of the latest technology into security solutions is critical to staying on top to offer the most advanced solutions to

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Radisson Blu DMC.

Electronic access room-locking

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PROCUREMENT

Thermal imaging.

customers, that allow them to create the highest possible security environment and offer more value-added services to the guests while making a whole seamless experience at the hotel.” Inspiring new security innovations, VingCard Elsafe has introduced anti-cloning technology into their safes and door locks, to avoid any key card cloning. Additionally, a ‘no-lock-on-the-door’ electronic locking system that provides guests with a minimalistic wall designed panel that controls a secure door locking system and guestroom management systems.

Technological advances in products such as digital recording and scanners are continually improving a hotel’s ability to monitor the flow of visitors, however, integrated technology that allows guests to bypass the front desk and access their room, safe and other hotel areas using one pass key, is creating a stir in the world of hotel security.

Foley explains: “While we agree that integration at a high level enhances the guest experience, we disagree with full integration.

For example, if the same device that is utilised to open the guestroom door can also open the guest’s safe, hotels and guests become vulnerable. Should one of those keys or fobs, fall into the wrong hands, the perpetrator gains access to a guest’s valuables.”

Irrelevant of a hotel’s decision to support a hands-on or technological approach to guest safety, it is certain that hotel security remains prominent on the hospitality agenda.

We have seen huge investment programmes in active security systems that LQFOXGH YLGHR surveillance, access control, intrusion GHWHFWLRQ V\VWHPV DQG ; UD\ PDFKLQHV at hotel main entrances

Simon Currie.

CCTV security

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ADVERTORIAL

33 INTERFACE.indd 33

7/2/14 3:12 PM

34

SUPPLIER SPOTLIGHT

Inspiring innovation As the hospitality industry witnesses major technological transformations dictated by consolidation and rapid expansion, Serjios El-Hage, founder and CEO of the smart convergence and ICT applications company, EMW, introduces the ‘bring your own device’ initiative increasing housekeeping productivity

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ransforming mobile hotel operations Atlantis, The Palm recently implemented an enterprise mobility management (EMM) solution from AirWatch by VMware, an EMM provider driven by EMW, which has increased producivity in housekeeping.

The mobile solution allows hotels to deliver a host of new services to elevate the experience of its visitors, such as using mobile devices to access reservation details, expedite the check-in process and enables hospitality organisations to transform the traditional service model by mobilising housekeeping staff, restaurant servers and management.

It enables the entire hotel work force to use devices such as iPods to assign staff members to clean rooms based on factors like availability and special requests from guests.

Additionally, properties can integrate modern concepts into their F&B outlets with things such as using digital menus on tablets instead of printed menus.

The AirWatch solution offers a reliable EMM platform that enables device administration from a single location, meaning hotels can drastically improve efficiencies by streamlining Ian Evans, managing director EMEA at AirWatch, Joe Tesfai, senior vice operations and create significant cost savings. Providing president, I.T at Atlantis and Serjios El-Hage. security, reporting and management for mobile devices that access a hotel’s network, EMM enables hotels to transform deployment is to understand end user requirements, pin their operations by implementing the ‘bring your own device’ point the feature set and make sure it all integrates together.

(BYOD) initiative to pull internal processes together and Devices are the end result however there are lots of steps enhance the luxury travel experience for guests. need to be addressed prior to users interaction with the Founder and CEO of EMW, Serjios El-Hage, explains: system.

“With AirWatch, we at EMW drive EMM 7KH ƮH[LELOLW\ RI “Remember the flexibility of any mobile considerations, because it’s not a one-sizedevice management (MDM) system is as good fits-all solution. It’s about breaking down any MDM system as the implementer’s ability to understand the typical hotel features and departments, is as good as the the current environment and transform it to determining your organisation’s requirements for each one, and then LPSOHPHQWHUoV DELOLW\ suit the current needs with an eye for the future,” he adds. taking potential EMM solutions through a to understand the Smaller properties that are infrastructure trial period to ensure they can offer the ready can take advantage of EMW’s appropriate level of management support to current environment experience being the first who brought MDM the BYOD initiative.” and transform it to the region over four years ago pioneering He continues to say that EMW caters the BYOD concept across all platforms. to some of the largest hospitality groups, to suit the current Concluding, El-Hage explains that across all star ratings, not as suppliers but as needs with an eye for following implementation, EMW offers a partners. dedicated 24/7 support service. He says: the future “We support our clients through all channels Catering to all properties available to them example 800EMWME. We provide manage The system is designed to service any need irrespective of services as evident for some large customers and we pride the hotel size. EMW has deployed AirWatch for as little as 50 ourselves in post implementation support across multiple devices to as much as thousands of devices. platforms across geographies all day, every day.”

El-Hage comments: “The secret of EMW’s success in every

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taka solutions forecasts energy savings in your building and is only paid through the achieved savings over the contract period. Our team of engineers will create a customized solution that will optomize your building preformance and guarantee the highest energy savings possible. We implement these solutions and manage the performance over the life of the contract, ensuring that energy savings are continuously achieved. At the end of the contract, our clients have a healthier, more efficient and more valuable building.

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www.takasolutions.com

+971.4.360.7524 29/06/2014 12:03

36

INVESTMENTS

INVESTMENT OUTLOOK This year, global hotel investment will hit a ĆŹve year high, reaching $50bn, and rising 35% on 2013 volume.

With cross-border investment from the Middle East riding high, Jones Lang LaSalle share the latest data

4%

8% 57%

74% 16%

9% 2%

22%

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he time of year for the Middle East’s largest investors and most famous family firms to travel to Europe with an agenda of shopping and business, is almost here.

Mixing that business with pleasure, some return to the Middle East with slightly larger holiday souvenirs than the rest of us can afford. Taking a strategic look at the figures, as reported

by Jones Lang LeSalle, Hospitality Business looks at the key influencing factor on the rise in global hospitality transactions, cross border investment.

8%

5%

At a glance: global hospitality transactions 2014 SNAPSHOT

$50bn

Predicted global total hotel deals

$28bn

Target projection growth, the Americas

$16bn

EMEA transactions, driven by debt restructuring

2013 RETROSPECT

$46.7bn Transaction total up 35% on 2012

$24bn post 30% uplift witnessed in Americas

$13.2

Transaction values up 17% on 2012, EMEA

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36-38 INVESTMENT.indd 36

87%

North America Latin America Europe Middle East Africa Asia Australasia Global

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INVESTMENTS

Hotel demand: The key market drivers t 15% increase in outbound travel from China, 2013, rising further in 2014 t Leisure demand up: driven by baby boomers t Corporate demand up: driven by Millennials t MICE tourism t Development of secondary locations t Mid-market development

% 8%

2%

57% 11%

The most famous trophy purchases of Middle East investors

87%

22% 96%

4%

Harrods – bought from Mohamed AL Fayed by the Qatari Royal Family in 2010 for $2.3bn

36% 34% 5%

25%

IHG Europe –Qatar-based owners, developer and operator Katara last month snapped up InterContinental Carlton Cannes, the InterContinental Amstel Amsterdam, the InterContinental Madrid, the InterContinental Frankfurt, and the leasehold interest in the InterContinental De La Ville Rome Valentino – another purchase of the Qatari Royal Family, the Italian fashion house was bought for $857m in 2012 Art – reports last year estimated that Sheikha Al-Mayassa bint Hamad bin Khalifa Al-Thani and the Qatari Royal Family spend an estimated £600m a year on art.

Cross border investment rising Opportunistic purchasing of assets – for example trophy purchases such as Katara’s recent snap up of iconic IHG properties in Europe, or the rumoured interest of Middle Eastern buyers in the original Scotland Yard HQ in London – will continue to fuel investment patterns.

With cross-border investment accounting for 30% of global hotel investments in 2013, driven by outbound

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capital from the Middle East and Asia, it is surprising to learn that this will increase in dollar values, but that monopolies in the number of buyers, will cap further market share for this sector..

Middle Eastern investors, who accounted for $4bn in outbound capital in 2013 are predicted to continue their current behavior in addition to growing interest in portfolio acquisitions

Groupe du Louvre Portfolio – Constellation Hotels (part of the Qatar Holding investment vehicle that has invested in Sainsbury’s and Barclays) acquired the four hotels from Starwood Capital for $955m Marriott UK - ADIA (Abu Dhabi Investment Authority’s) purchased of 42 Marriott hotels in the UK for $900m Malmaison and Hotel du Vin portfolio s bought by private equity Ƭrm KSL for $319m.

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INVESTMENTS

The intercontinental comparison

Hotel market cycle MEA

Hotel market cycle Europe Berlin

Vienna

Muscat

Moscow Istanbul

Amman

Bratislava Prague

Dubai Jeddah

RevPAR growth slowing

RevPAR falling

Cairo

Beirut RevPAR rising Kuwait CapeTown

RevPAR decline slowing

Barcelona Budapest Brussels Munich, Krakow Frankfurt

RevPAR falling

RevPAR growth slowing

Madrid

RevPAR RevPAR Copenhagen rising decline St. Petersburg slowing Dublin Milan Sofia Paris, London Regional UK Lisbon Rome Geneva Zurich Amsterdam Warsaw Source: Jones Lang LaSalle

Riyadh Abu Dhabi Source: Jones Lang LaSalle

The region’s $180bn global real estate spree Looking to the future it is predicted the Middle East will continue its real estate reign, spending to the tune of $180bn over the next decade, according to research from CBRE. The focus will continue to fall on Europe, with interest also developing in America.

Growing role of Middle east capital in global commercial real estate investment market, by type of capital

15 All other investors

Sovereign wealth funds

12

$ Billions

9

6

3

0

2007

2008

2009

2010

2011

2012

2013

Source CBRE Research, RCA, All commercial real estate and hotels, cross regional capital ĆŽows only

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Our products are designed to meet your needs for efficiency, convenience and peace of mind, with industry-leading technology, sleek designs and user-friendly features for both your staff and guests. With a customer service network that spans the globe, we’re here to help…and here to stay. So stay with the leader – VingCard Elsafe.

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40

INVESTMENTS

Five minutes with‌.

Carlos Khneisser, Hilton Worldwide With its core brand already established in every major city in the Middle East, Hilton is diversifying its interest at opposite ends of the spectrum. Hospitality Business catches up with &DUORV{.KQHLVVHU 93{GHYHORSPHQW 0LGGOH (DVW {+LOWRQ :RUOGZLGH

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ith 950 openings globally over the last five years, Hilton Worldwide is a force to be reckoned with and its core brand Hilton – one of ten – is a mainstay in every major city across the Middle East.

Moving forward, the American operator will be focusing on the development of its mid-market and ultra-luxury brands, in three key geographies: Qatar, Saudi Arabia and UAE. Following the announcement of a second Doha property in May this year, Carlos Khneisser, VPdevelopment, Middle East, Hilton Worldwide, says: “We are not looking to events and deadlines, we are looking for sustainable business.

Our contracts can be up to 25 years long, so we look at locations that are good for growth and also economically sustainable.�

The plans for Qatar include a Hilton Garden Inn to join the established Hilton, and the development of two Double Tree properties as well as a Waldorf Astoria, serving the opposite end of the spectrum. “Despite what is happening in terms of regional disruption, we are still doing a good job growing our footprint,� says Khneisser, referencing the success of Double Tree by Hilton, which has gone from zero presence in 2009, to an operational portfolio of four properties and a pipeline of a further 20. Khneisser relays it is the fastest growing, upscale, full service brand in the region.

Continuing with its plans for Sulaymaniyah and Erbil, Khneisser comments: “It’s an interesting region, taking into consideration the political structure of the region, which helped us to enter into the market with the Hilton which is currently under construction

Stats

48

hotel pipeline in the Middle East

80%

of ME pipeline under construction

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40.indd 40

17

hotels under construction in Saudi Arabia

in Erbil, this region lacks a lot of international operators.�

Revealing the plan is to focus on new build rather than conversion properties, again with a focus on Double Tree, he adds that there is one Double Tree under construction and a second recently signed in Sulaymaniyah. “It’s a region fuelled by corporate business and a little leisure, as well as the extended stay segment, which is supported extensively by the foreign companies, who need to position senior executives on the ground there. That fills the segment.�

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4/23/14 4:42 PM

42

INVESTMENTS

BEING BOUTIQUE Searching for an alternative to the domination of international operating companies, more owners are choosing to go it alone. Anthony Ross, Preferred Hotel Group EVP IRU $VLD 3DFLĆŹF 0LGGOH (DVW DQG $IULFD, explains the lure of remaining independent, the power of consortia brands and being boutique in a homogenised market

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cross the UAE, the percentage of unbranded compared to branded hotel stock ĆŚuctuates from just 16% in Abu Dhabi to 56% in Ajman, providing a country-wide average of 31%. Applied to the wider GCC, that ĆĽgure averages 39%.

Based on data accumulated by Colliers International, the figures demonstrate a market segment inching an ever larger share of the region’s total hotel stock (see charts overleaf).

It is growth fuelled by owners who, whether stung by management contracts in the past or harbouring an ambition to enter the highly lucrative hospitality industry alone, are increasingly looking to hang their own name above their doors.

However, while on the one hand they face reaping the benefits of ownership and management autonomy, on the other they are clamouring to be noticed in a crowded market that shows no signs

Stats

85

650

COUNTRIES

MEMBER HOTELS

$175

AVERAGE BOUTIQUE ADR, GLOBALLY

7

PHG BRANDS

$834m REVENUE GENERATED

of abating. Not only dependent on costly OTA marketing and distribution models, they also face the perception that unbranded is automatically mid-market.

It’s an issue further compounded by the lack of a true boutique sector to would raise the profile and perception of unbranded hotel stock.

So why are more hoteliers choosing to tackle the market without big brand backing?

According to Anthony Ross, EVP for Preferred Hotel Group in the Middle East, Asia Pacific and Africa, those forces range from everything from the duration of contracts, to the clauses and individual owner and investor experience of the market.

Preferred Hotel Group (PHG) is a family owned and managed company established in 1968 to give shared strength to 12 independent hotels in North America. The company recruited its first European hotels in 1972, yet despite being established more than 40 years and boasting 650 member hotels across 85 countries, only this year did PHG see such strength in the Middle East market that it exhibited at ATM. In 2013, the group generated $834m in revenue on behalf of its member hotels, up 14% on 2012.

Over the course of 2014, the group aims to add 125 hotels to its collection over seven brands, including adding to the current 10 properties in the Middle East.

Owners want to retain control over their asset, they ZDQW WKH ĆŽH[LELOLW\ of decision making, independence of the JXHVW H[SHULHQFH DQG architecture

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“Today you have many owners saying ‘hey this isn’t rocket science, I can do it myself’, then you also have developers reaching a point of critical mass in their portfolio and for that reason wanting to start their own brand,� says Ross, who was appointed to his current position in March of this year.

Exemplifying his former employer Mandarin Oriental and similar household luxury brands, he adds: “The owner wants to put their own name on the building, but still needs that initial support. The consortia option is like a brand incubator, allowing an owner to retain control of their asset but also be connected to the world, particularly Europe and the US, as well as OTAs. They want endorsement from a global brand, in order to compete in a meaningful way.�

That’s not to say gaining membership is easy. Unlike consortia such as Global Hotel Alliance, which signs up mid-sized chains, PHG membership is based on a number of standards and inspections for individual properties and in some territories those standards can also require local star-rating certifications.

The sign up process begins in the design phase and runs through to preopening.

Ross says: “It’s a big world out there and with Dubai’s level of connectivity hotels from all the emirates benefit.

There are travel agents all over the world, whose clients are asking for trips

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INVERVIEW

43

PREFERRED HOTEL GROUP, MEMBER HOTELS t Royal Rose Hotel Abu Dhabi t Marjan Island Resort & Spa, Ras Al Khaimah t Cristal Grand Ishtar Hotel Iraq Baghdad t Cristal Hotel Erbil* Erbil t Divan Erbil Erbil t Regency Kuwait, The Salmiya t Al Nahda Resort & Spa Muscat t Al Raha Beach Hotel Abu Dhabi t Cristal Hotel Abu Dhabi* Abu Dhabi t Dusit Thani Abu Dhabi Abu Dhabi t Royal Rose Hotel Abu Dhabi t Dusit Residence Dubai Marina Dubai t Dusit Thani Dubai Dubai t Grand Excelsior Hotel Al Barsha, Dubai Dubai t Grand Excelsior Hotel Bur Dubai, Dubai t Habtoor Grand Beach Resort & Spa Jumeirah Beach t Marjan Island Resort & Spa Ras Al Khaimah

here. Hotels needs endorsement to be able to stand out in that crowd.

Snapshot The market factors leading to today’s divergence perfectly coincide with a rise in the number of guests looking for unique experiences; which can only be created by hotels not affiliated with the international brands dominating the industry currently.

While unbranded and boutique are still mutually exclusive concepts their growing prominence in the market, combined with more differentiated guest demands, is adding strength to the sector. As with the diversification of star ratings, they are poised to capitalise on a huge regional demand from guests who want a je ne sais quoi, rather than just another hotel experience.

The current point at which the market today sees investor and guest profile trends colliding has created a vacuum for soft brands, like PHG, to fill. As much as ambition and experience can back a business plan, competing with the distribution channels of the

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internationals and with the inability to provide a comprehensive guest loyalty programme, market penetration is hindered.

“Hearing from management companies, especially in places like Ras al Khaimah, owners want to retain control over their asset, they want the flexibility of decision making, independence of the guest experience and architecture. They are scared of the cost of management companies and the length of contract they are required to sign up for, as well as the get out clauses,” says Ross.

Creating character The majority of PHG’s focus currently is on owners and developers looking to create new hotels on Greenfield sites. A trend driven by Expo and the resulting supply and demand dynamic, it’s one Ross predicts will only grow over the coming years.

“Dubai outstrips the other markets in every metric and it’s like a gold rush for developers,” he observes, noting it’s a much needed address of the current balance.

The trend is also evident in the number of affluent local families who now, looking to complement their shipping, construction or manufacturing businesses, are stepping into hospitality.

“I’m amazed by the number of projects going on here and amazed by the number of small hotel management companies.

It’s a land of opportunity at the moment.

“Dubai perhaps isn’t representative of all the GCC or UAE, but how did Dubai do it? Just build it and they will come.

“Make a great airline, make a great airport, make great hotels and Abu Dhabi and Qatar are going down the same path now, too.”

Al Nahda Resort & Spa

INVESTMENTS

UAE

Unbranded

%Unbranded

Dubai

89,071

27,085

30%

Abu Dhabi

27,398

4,471

16%

Sharjah

10,049

7,373

73%

Fujairah

3,491

1,138

33%

RAK

5,370

1,209

23%

Ajman

3,101

1,737

56%

404

404

100%

138,884

43,417

31%

Umm Al Quwain Total

GCC

Hotel supply

Unbranded

%Unbranded

UAE

138,884

43,417

31%

KSA

105,994

53,815

51%

18,638

6,502

35%

Oman (Muscat)

8,419

3,997

47%

Bahrain (Manama)

5,426

2,600

48%

Kuwait (Al Kuwait)

4,520

130

3%

281,881

110,461

39%

Qatar (Doha)

Total Source: Colliers International.

From his experience, which spans Asia and Europe, the boutique and independent markets naturally follow the march of the corporates in any environment where they are allowed to thrive. It’s a market segment driven by culture, tradition, and basic and established infrastructure, which are all in high demand as the pendulum naturally swings away from the homogenised brand-led offerings – and even manufactured boutique – that have led the way to date.

The drive will no doubt see a number of consortia and soft brands entering the market to lend support to the 39%, and they will no doubt over time be squeezed by owners looking for ever

favourable contract terms.

In what sounds like music to an owner’s ears, Ross simplifies: “We get paid on your performance, so when you do well we do well.”

It’s a performance model in which Ross sees so much strength, even the development of commercial boutique brands – such as Hotel Missoni and Starwood’s W – provide limited threat.

“The big brands are very good at commoditising so you end up with a global product that is the same in California and Hong Kong, which is comforting for some guests. But with true independent and boutique hotels you create hotels that have character and you need that counter balance.”

Habtoor Grand Resort & Spa Dubai

The Regency, Kuwait

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Hotel

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VP PROFILE

The main guy Announcing 10 new hotels as part of the 2020 strategy to operate 100 properties, Rotana’s recently appointed COO Guy Hutchinson explains that people will drive the Abu Dhabi-based operator’s expansion

T

he news in January that Rotana co-founder Selim EL Zyr would gradually depart from the hospitality brand he established with Nasser Al Nowais in 1992, triggered a chain reaction that in the six months since has seen the promotion of Omer Khaddouri to CEO and president, new management appointments and a new commercial office opening in Dubai.

The man now heading the brand’s operations, Guy Hutchinson, is well versed in expansions with experience of working across Japan, Australia, China and India

with previous employer Hilton India.

Since his official arrival in January 2014 – Rotana, the Abu Dhabi-based operator that opened 50 hotels in little over 20 years – confirmed 10 new properties in its drive to operate 100 hotels and take the regional name to new territories.

The 10 new properties will be located in some of the industry’s most talked about countries, including Iran, Tanzania and Sudan.

At a glance, this specific element of the pipeline is to include five new

UAE t Dubai Creek, 2017, 280 room complex t Al Barsha, 163 rooms, opening 2018 under Arjaan Hotel Apartments by Rotana t Wafi area to open a 528 room Hotel under the Rotana Hotels and Resort brand, combined with a 100 room property under the Arjaan Hotel Apartments by Rotana, both due by 2018.

Iran t Mashhad, a 362 room hotel in 2017 under Rayhaan Hotels & Resorts by Rotana t Mashhad, a 275 room hotel in 2018, also under Rayhaan Hotels & Resorts

by Rotana. t Tehran, a 5-star 194 room Rayhaan property by 2018 t Tehran, a 4-star 210 room Rayhaan property

Sudan t Second Rotana in Sudan, due to open 2019

Tanzania t A 249-room project in the capital Dar es Salaam.

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VP PROFILE

Dubai properties; four Rayhaan branded hotels across Iranian cities Mashhad and Tehran; the second Sudanese property following the opening of Al Salam Rotana, Khartoum; and a 249room project in the Tanzanian capital Dar es Salaam.

Hutchinson also recounts last month’s Jordanian debut – staffed almost exclusively without expatriate talent – and Kabul.

But there are two openings at the forefront of Hutchinson’s mind, the Tango Arjaan by Rotana and Burgu Arjaan by Rotana, in Istanbul.

Announced prior to El Zyr’s departure, the two hotels will add 410 rooms to the portfolio while marking the first step into a country which significantly bridges the gap – both geographically and culturally – between the Middle East and Europe.

A bold statement for Rotana’s continues expansion ambitions.

In collaboration with Turkish developer Dap-Yapi, the two properties will include facilities for both the business and leisure guests in the extended stay arena, and will soon be joined by up to five more hotels in the country.

“When we open in Istanbul there will be another layer of challenges. We have to take the brand there, replicate how we operate and show the market what we are about when there is no existing platform,” he explains.

With a mandate to promote from within, and a rule of thumb that turns the standard international approach upside down, Rotana’s openings are generally staffed with 80% internal appointments and 20% external.

“The signature for Rotana is the attention to detail in a hotel and the amount of focus and effort that goes into the operations. When we open everybody is there including Omar and myself, to instill that structure. But in order to do that you need people.”

13,269

Total number of Rotana rooms in UAE, following new openings

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Commenting on the strength in the human capital platform, Hutchinson adds: “I’m very people focused in terms of quality because no matter how well you map a strategy if you don’t have the quality in the organisation to deliver it, don’t bother. You learn when you start running larger organisations that value is driven in engagement. If you can do that to a point where people are doing it out of free will, then that’s where things happen.”

Culture of delivery It’s a magic formula that Hutchinson will be looking to create with the opening of the new Dubai-based commercial office, where 80 of the group’s top corporate

We would love to be there but there is nothing signed or concrete

VP PROFILE

decision makers will be based.

“I believe strongly that this business exists in a very small space. When a customer meets an employee, our business exists in that space. That interaction is key.

“Revenue, service, loyalty all come from there and expansion comes from there, too,” Hutchinson shares, crediting the reactionary and decisive management style of the group with the ability to fuel so many vast changes at speed.

With the expansions and new corporate office, Hutchinson is blunt about the need for a Dubai-based VP and says the appointment of more senior managers is inevitable,

considering that by 2020 there could be 25 hotels in the emirate.

“Here, business evolves quickly. If we spot a need and there is commercial reason for doing something, we do it,” he adds, also hinting there could be a need to cluster local management structures, similarly to how Rotana’s international competitors operate.

Never say never Looking forward, Hutchinson has four primary ambitions, which span critique, analysis and growth, all underpinned by his focus on human capital and a “culture of delivery and ownership.”

Highlighting the success of Rotana before his appointment, he begins: “I’m four months in at the company and it was extremely successful without me.

“We have 50 hotels today, so where are we commercially? The sales structure, global sales network, revenue management environment.

There was a lot of work done last year in terms of putting structures in place across our global sales network and revenue management environment,” he continues.

“Today, we have hotels running at 85% but I believe we are on the upwards curve of growth, so how do we position our hotels for the next five years and how we work in the structures we have got?”

With a never say never attitude, Hutchinson is keen to continue Kaddouri’s work taking the brand beyond the Middle East and Africa and, like his predecessor, establish a Middle Eastern experience in some of the largest hospitality industries globally, including Australia and America.

“There are no hotels signed yet in these markets but we look at them very seriously,” he says, noting there is full time representation in Australia, in addition to “a number of opportunities we are exploring” “We would love to be there but there is nothing signed or concrete,” he adds.

“We are very focused on expansion ad going beyond our traditional strengths, but they must be the right partners, the right locations, the right quality and there must be spaces where we take the same focus. If we are going to do something it has to be successful.”

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INDUSTRY ANALYSIS

BUILDING BRAND QATAR

Identifying an “untapped resource” in tourism, Qatar is laying the foundations to diversify from its carbon controlled economy. As the international operators move in, Hospitality Business asks if the steep increase in supply could be counter-productive to the goal

I

n February of this year, Qatar Tourism Authority chair Issa Al Mohannadi publically pledged the 2030 National Tourism Sector Strategy would receive a cash injection of $45bn to support ambitions to increase international inbound visitor numbers by almost four-fold; create an additional 100,000 jobs; and increase GDP contributions from less than 1% to 8%.

With a context of diversification from the Gulf state’s carbon dependent economy, Al Mohannadi referred to tourism as an untapped resource.

In the months since, major hotel and resort developments have been announced by Kempinski, Hilton World Wide, The Rezidor Hotel Group and others, with many of the largest players naming Qatar as a key focus.

The country’s total confirmed pipeline currently stands at 38 properties, with a total of 9,251 rooms according to data from STR Global and with a current stock of 74 properties totalling 13,596 rooms, the impact will be significant.

Before year end 3,000 keys will enter the market, operated by the likes of Accor’s Pullman, Hilton’s Garden Inn and Starwood’s Westin, among others.

By the end of 2015, that number will

Age of hotel stock

17% 10+ YEARS

19% 7-9 YEARS

13% 51% 4-6 YEARS

0-3 YEARS

Source: Colliers International.

have surged to 4,759 keys. However, where other markets with large supply increases struggle to find an equilibrium with demand, Qatar is buoyed by a strong corporate market and growth in the demand for extended stay products.

“The growth in the corporate market is largely driven by the growing number of large-scale projects in the country, requiring consultants, project workers and engineers to travel to Doha more regularly,” explains Colliers International director and head of hotels, MENA, Filippo Sona, who quotes a 20% YoY occupancy increase in the suites and serviced apartments sector in 2013.

That’s not to say the market is without concern, as PwC director Alison Cashmore highlights: “Finding that hotels recorded 1.3 million visitors in 2013, which is an increase of 8.3% from 2012, our research has found ongoing rate reductions resulting from high levels of competition led to a decline in ADR over the period 2012 to 2013 by almost 20%, which in turn has driven down the RevPAR by 11%.”

It’s a similar tale to that of Abu Dhabi, which unlike its neighbouring Dubai, struggled when experiencing a surge in room keys and delays to anchor projects on Saadiyat Island.

A May 2014 report by JLL, found ADR and occupancy declines (of 20% and 6% respectively) resulted in a RevPAR contraction of 25%, only recovering in the last 12 months.

Seasoned general manager Gordon

7.1m

Target for international tourist arrivals, by 2030

5.2% Projected RevPAR increase, 2014

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INDUSTRY ANALYSIS

MacKenzie, who has lived in Doha for 22 years, was at the helm of the city’s largest hotel, Radisson Blu, and warns that, regardless of the supply demand dynamic, cutting rates to create the perception of strong performance creates a dangerous precedent.

He says: “The market does not dictate that you are going to get another 100 or 100,000 bookings because you have cut the rate, or packaged the deal.”

Reporting performance was at its highest in 2009, he attributes this to global recession and limited hotel stock locally.

He adds: “Qatar is a completely different market to other GCC cities.

F&B revenues in Qatar often match the revenue generated by rooms and with 22 outlets in this hotel alone it is always possible to supplement performance.”

However, Sona warns that a 17% growth in the 5-star segment since 2009 has increased competition at the top end of the market and created a compression effect that echoes through all segments.

“All new hotels in Doha are mostly competing for the same target market of corporate travellers, which has increased the bargaining power of this segment since they have more hotels to choose from.”

Staying ahead Concern appears relative. In Q1 2014, hotels generated $274.5m in revenues, with occupancy up from 68% to 75% , supported by the closing of almost 2% of total stock due to renovations.

In an ever competitive market, the need to constantly renew offerings is integral to success, especially for the

Market Class

Existing Property Count

Room Count

Luxury Class

9

3,051

Upper Upscale Class

14

3,353

Upscale Class

12

2,389

Upper Midscale Class

11

996

Midscale Class

17

2,945

Economy Class

11

862

Qatar stats

9,251

4,759

20%

33.7%

Rooms in Qatar currently

Keys to be added to stock by 2015 end

YoY occupancy increase in suites and serviced apartments

Mid-market hotel share

17% of Doha’s hotel stock aged 10 years or older (see chart overleaf).

Working on a standard refurbishment cycle of seven years, it can be calculated that 36% of Doha’s stock could be ripe for renovation today and the iconic, 32 year old Sheraton is the latest to close its doors for such work, with an upper budget cap of $192m.

MacKenzie’s tenure at Radisson Blu coincided with a $25m refurbishment of the hotel’s 324 West Wing rooms.

The eighth refurbishment and opening assignment of his career, he reports the key to successful projects is to pick and mix contractor services.

He shares: “We recognised years ago that, if you don’t innovate you die.

“We had four contractors and designers create four different mock up rooms and we paid them $50,000 each.

At the end of that process we selected one supplier but also took the best of each of the rooms and amalgamated it into one,” he recalls.

Changing tastes Driven by a rise in the number of midmarket properties, which currently account for a mere 33.7% share of the total market, over the coming decade Sona predicts the mid-market will slowly gain pace against the 46% market share held by luxury, upper-upscale and upscale properties.

The evolution will be driven by what Sona refers to as sports tourism, as well as leisure destinations such as Qatar Mall and Doha Zoo. Again the changing guest profile will demand the development of a different hotel product; a diversification he notes is

1.9%

Projected occupancy increase in 2015

$45bn

Investment pledged

by Qatar Tourism Authority

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INDUSTRY ANALYSIS

already tangible. But the operators aren’t hedging bets.

In June 2014, Hilton Worldwide announced the development of Qatar’s largest beach resort, with investors AlRayyan Hospitality. The 362 key Hilton Salwa Beach Resort and Villas will be set on 104 hectares of land, located 97km outside Doha and co-located with a waterpark, marina, dive centre and retail development. It’s a significant contribution to the product type leisure tourism will demand and the arrival of other Hilton products such as Garden Inn, backs this.

However, Hilton has also chosen Doha for the regional debut of its ultra-luxury Curio Collection. This 207 key hotel will be co-located with the underconstruction Mall of Qatar and is being developed with investors Al Jaryan Trading and Contracting.

Says Hilton VP of development, Carlos Khneisser: “In Qatar we are not looking to 2022, we are looking for sustainable business. Our management contracts can be up to 25 years’ long, so we look at locations and products which we know will be good for growth. We are developing five of our 10 brands in Qatar and that portfolio will also include Double Tree and Waldorf Astoria. “Qatar is one of our three target markets in this region, alongside UAE and Saudi Arabia,â€? he adds. +RWHOV DQG Ĺš%UDQG 4DWDUĹ› If leisure is the future, or at least an essential diversification from the corporate heavy focus experienced to date, the main growth drivers for this critical sector will stem from the

creation, development and maintenance of Brand Qatar.

Akin to the strategy implemented in Dubai, it’s an element Sona predicts will come from the growth of Qatar’s key stakeholders namely Qatar Airways, Hamad International Airport and Al Jazeera, in addition to the promise and legacy of major events.

With an ambition to increase the GDP contribution of tourism from 1.1% to 8% by 2030 and the huge financial commitments made by Qatar Tourism Authority, the backing of private sector stakeholders is unlikely to wane. “These factors reinforce the hospitality sector’s positioning as an important economic pillar within the country,� he observes. “Development of hotels and hotel apartments is a key element within the National Development Strategy 2011 to 2016, Qatar National Vision 2030 and Qatar National Tourism Sector Strategy 2030 working in parallel with Qatar Airways, and its expansion plans, to position Qatar as a tourism destination,� he adds.

The phenomenon of planning and constructing mega urban developments may be second nature in the Middle East, but success isn’t without its peaks and troughs. In such markets, despite undisputed and unprecedented wealth, exposure to market forces is still a sobering reality. Having observed the rise and fall and rise again of Abu Dhabi and Dubai from across the Gulf, Qatar would benefit from remembering that economic diversification is more than replacing one source of wealth with another.

17%

Growth in 5-star market since 2009

50 - 52.indd 52

THE KEY DEVELOPMENTS HILTON SALWA BEACH RESORT AND VILLAS Ţ .P RXWVLGH RI 'RKD Ţ NH\V Ţ KHFWDUH GHYHORSPHQW Ţ 6XUURXQGHG E\ ZDWHUSDUN D OX[XU\ PDULQD DQG \DFKW FOXE D GLYH FHQWUH FLQHPDV D ZHDOWK RI SUHPLHU UHWDLO VKRSSLQJ DQG QXPHURXV UHVWDXUDQWV CURIO – A COLLECTION BY HILTON Ţ JXHVW URRP KRWHO Ţ VXLWHV Ţ &R ORFDWHG ZLWK 0DOO RI 4DWDU Ţ 3RVLWLRQHG LQ QHZ GHYHORSPHQW $O 5D\\DQ *DWH PULLMAN DOHA WEST BAY Ţ URRP Ţ DSDUWPHQWV Ţ 2SHQLQJ WESTIN HOTELS AND RESORTS Ţ 7R GHEXW LQ 4DWDU Ţ JXHVW URRPV Ţ H[HFXWLYH VXLWHV Ţ P HYHQW VSDFH -: 0$55,277 4$7$5 Ţ )LUVW -: 0DUULRWW LQ 'RKD Ţ 2SHQLQJ HDU PDUNHG IRU HOTEL MISSONI Ţ 'HVLJQHG E\ 5RVLWD 0LVVRQL Ţ URRPV DQG DSDUWPHQWV Ţ 2SHQLQJ

35%

Of hotel stock could be due renovation

6/30/14 3:51 PM

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COVER STORY

Announcing a corporate ambition to become the world’s “preferred hospitality company” and a growth mandate that will double the regional portfolio by decade-end, FRHI president Jennifer Fox tells the story behind the luxury operator’s global growth strategy

W

hen Jennifer Fox was promoted to the newly created role of president at Fairmont Raffles Hotels International, she was not only granted the corner office at a company positioning itself as the ‘leading hospitality brand globally’ but she became one of the few female business leaders in the industry.

What she has done for both the FRHI brand and her fellow female leaders since has been refreshing to say the least and, paradoxically, it starts with her admission that she “takes female out of the equation”.

While she observes the differences between male and female leadership habits, she refuses to acknowledge her gender as a differentiating factor in her career.

Focusing solely on the job at hand, since leaving Intercontinental Hotel Group in 2011 she has leveraged the global brand and leadership experience built over a career spanning 13 years

with Starwood and 10 years with IHG, and in the three years since has moved from being president of Fairmont Hotels and Resorts to take leadership of the international FRHI operation.

It’s a role that will only grow as the Canadian company focuses its energies on Asia and the Middle East with an expansion plan that will see a 50% increase in the global portfolio and a doubling of regional operations across all three brands; the uberluxury heritage Raffles, luxury Fairmont and upper upscale Swissôtel.

In numbers it will initially take the global portfolio from 41,000 rooms over 110 properties to more than 140 operating hotels.

The immediate announcement of seven new properties in the all newbuild MEAI pipeline adds to the region’s 19 existing FRHI hotels. The key focus markets for this phase of expansion will be Saudi Arabia, UAE, Egypt and Nigeria. One of the openings will see the Swissôtel brand debut in Dubai

Naturally you allow a certain amount of customisation, we don’t want to be a cookie cutter brand

JULY 2014

54-58.indd 54

– also home to the first international Fairmont in 2001. Two of the seven new properties will open before 2014 end.

The ambitions, with a 2020 deadline and an aside to achieve superior RevPAR – thus becoming the world’s ‘preferred hospitality company’ – were officially announced at ATM 2014.

However, more than a straight forward expansion announcement, the interesting twist on this news was the expansion of a heritage brand which is historically very selective with whom it conducts its business and where it opens properties.

FRHI’s portfolio is the largest collection of historic landmark hotels in the world.

“We think we have a very clear vision and view of our brands and they are positioned quite uniquely in their competitor set, so uniquely positioned against each other, and we want to stay true to the brand DNA in every market we operate in. Naturally you allow a certain amount of customisation, we don’t want to be a cookie cutter brand,” she adds, pledging to combine this brand DNA with the cultural essence of its host destinations while remaining firmly in the luxury sector.

“We think there is enough growth

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COVER STORY

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COVER STORY

right now in those segments that there is enough room to grow our brands. In future we may start to think differently, but that’s our focus immediately.”

Supporting the immediate regional expansions, Fox has overseen the opening of a new regional HQ in Dubai, headed by Sami Nasser formerly of Sofitel, and with staff numbers growing from 32 in 2012 to 60 by 2014 end.

Sami Nasser FRHI SVP operations, MEAI.

Innovating heritage While the expansion is all about spreading the heritage footprint, the trends Fox eyes in pursuit of ‘preferred hospitality company’ status, are based around customisation and personalisation.

Echoing the sentiments of competing uber-luxury brands in the market place, she reveals the evolution of the FRHI experience will cater to her observations that “people want things on their terms and they want them tailored to them”.

She adds: “Personalisation and customisation are very important to our guests so delivering that, and in a meaningful way, is also important.

“If somebody could unlock that and find a way to do that, well and consistently, it would be very powerful.

So we’re thinking of a way to achieve it.”

To date this has focused on the strength and reach of the Passions Programme, but that could develop even further to see technology and new

Rami Moukarzel, VP development MEA.

Francois Baudin, SVP development, EMEA.

Right now our focus is on the right brands and the right teams and ensuring that, when the hotels open they do so successfully from day one

FRHI Stats

110

Open and operating hotels today

30

Development pipeline as it currently stands

47,650 41,500 5,806 Colleagues, globally

JULY 2014

54-58.indd 56

Rooms globally

Rooms in the Middle East

7,258

ME colleagues

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COVER STORY

service approaches integrated into the traditional heritage experience.

It’s a bold move and one even the traditional luxury stalwarts shy from, but as Fox – a global expert on branding and luxury hospitality experiences – surmises, innovation will be key. “Keeping up with innovation and staying at the forefront of industry is always a challenge. So those are the things I am thinking about when I think of our brands and where we are going in the future.�

Team player That future journey is one that won’t be travelled alone and the Middle East is a hotbed for all things new in FRHI’s plans.

Regionally, operations will be headed

by Sami Nasser and by Q4 a 60-strong team covering finance, HR, sales and marketing, development, F&B, design and construction, and technology will join him at regional HQ. Kent Cooper will head sales and marketing as VP, MEAI; Rami Moukarzel takes on the role of regional VP development; and Francois Baudin assumes SVP development for EMEA. Their immediate task will be the opening of Fairmont Ajman and Fairmont Riyadh, Business Gate by year end. Also this year, first-generation Dubai property, Fairmont Dubai will undergo extensive re-working of its lobby. “Right now our focus is on the right brands and the right teams and ensuring that, when the hotels open they do so successfully from day one,� asserts Fox, praising recent openings such a Fairmont’s entry into Jeddah. “It’s about our whole system to ensure our hotels open with a bang and that they have good occupancies, good ADRs and driving superior RevPAR in a region that is critical to us. That is so important because that’s what we offer our partners when they sign with us. “Wherever we are we know our brands outperform their competition so we are very focused on those things,� she adds, while also underlining that growth focus doesn’t end with properties.

Perhaps inspired by her own career ladder, Fox shares that growth is equally important for the professional

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COVER STORY

development of her colleagues as well as the travel patterns of guests.

With a high retention rate within FRHI, the current MEAI senior management team bring more than 20 years of experience from within the brand to the table. Sami Nasser is the most recently appointed, in July 2013, specifically for his expertise and cultural knowledge of the region, following 25 years in the business.

It’s in piecing such detail together one becomes aware that Fox is a leader who foregoes ego to concentrate on the task at hand, and executes it in such a way as to not detract from her teams.

The growth strategy currently in place is the most ambitious since the creation of the Fairmont brand with the opening of Fairmont San Francisco in 1907. No doubt influenced by today’s owners, Katara Hospitality and Kingdom Holding, who took the helm

after merging Fairmont Hotels and Resorts, Raffles Hotels and Resorts and SwissĂ´tel Hotels and Resorts in 2006; the future is about nothing other than growth. “It’s always been about growth, but the right type. We want to grow in strategic markets, with the right brands and owners,â€? she explains, with a trademark charm that, far from taking centre stage appears to underpin the brand’s presence just as much as her own.

Not one to shy from challenge, she concludes: “I think what is important is that in this market, the Middle East, Africa and India, we are going to double the size of our company over the next two years, “I think Dubai is going to become much more powerful on the global stage moving forwards, so we want to be able to take advantage of that.�

I think what is important is that in this market, Middle East, Africa and India, is that we are going to double the size of our company over the next two years

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Kent Cooper, VP sales and marketing MEAI.

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The future of hospitality?

As the traditional luxury approach of personalised service fuses with the modern day application of technology in the luxury hospitality experience, Hospitality Business investigates where the intersection falls and how the iPad could be used to enhance the idea of 5-star service SPONSORED BY

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Seated L-R: Mohammed Rizwan, director of IT, Marriott Marquis; David Kerr VP Technical, Paramount Hotels; Robyn *RHW]{GLUHFWRU RI VSHFLDO SURMHFWV DW{3DUDPRXQW +RWHOV{DQG 5HVRUWV /XFD %DQGHFFKL FRUSRUDWH GLUHFWRU PDUNHWLQJ and communications, Paramount Hotels; 6WDQGLQJ / 5 3UDVDQQD{5XSDVLQJKH GLUHFWRU RI ,7 .HPSLQVNL 0LQHVK 'RVKL UHJLRQDO GLUHFWRU 'LJLYDOHW 5DKXO 6DOJLD IRXQGHU DQG &(2 'LJLYDOHW

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rom the inception of the hospitality industry, luxury has been synonymous with traditional white glove service. Over the decades as both fashion, design and even F&B concepts have evolved from their traditional roots, the idea of personal butlers and one-to-one service has only been reinforced, and even exported to the serviced apartments and cruise industries.

But with the advent of technological innovations such as the smartphone and iPad, and their increased prominence in the daily lives of consumers, all that is changing.

The rise of the iPad has been phenomenal, not only revolutionising

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how we use IT but how we interact across all walks of life and, as usual, the hospitality industry has been far from immune to the changes.

From the infamous gold iPads at Burj Al Arab to the more subtle infusion of technology in guest rooms across the up-scale luxury and upper upscale market segments, tablet computers in hospitality today are not an innovation in IT, but in guest services.

The question now is, how do they become part of the luxury experience?

On one hand John Vanderslice, global head of luxury and lifestyle brands for Hilton Worldwide, told Hospitality Business in March of this year, technology and lifestyle apps will be pioneered across the Conrad portfolio but Waldorf Astoria will retain its ‘traditional luxury’ charm.

On the other hand, Philippe Zubair, COO of Emaar Hospitality, confirmed to Hospitality Business in May of this year, that implementation of iPad-based applications at The Palace Downtown – which facilitate everything from AC temperatures to spa and F&B bookings – brought about a 50% increase in room service revenues.

As the world moves away from the traditional idea of luxury, how will hospitality brands adjust their individual approaches to luxury? What are the benefits of allowing guests to browse a hotel’s offerings at their leisure? And what does the introduction of in-room iPad applications mean for the future of data capture and targeted advertising?

Marquis we have centralised controls for the lighting, heating and cooling and we have integrated PMS systems. It’s all about giving a wow factor to the guests.

One thing very important is that this has to be done correctly at all times because there are chances where you have a guest who cannot work the technology and it becomes too complicated, which then puts more pressure on reception and housekeeping, who receive more calls as a result.

Prasanna Rupasinghe: At the moment, we are re-vamping the whole experience for the guests and we look at the engagement for staff with guests before they even arrive. We will be bringing in an iPad solution to replace the paper literature and notifications on the TV because our focus is on positive guest engagement.

More hotels are looking at more intimate technology, from smart phones to iPads, because TVs are not the ideal scenario by which to engage a newly checked in guest with the brand, services and facilities in the hotel.

We look at this from a different perspective, yes it is technology, but it is also visual storytelling for your brand.

That’s the connection between guest and brand and it should guide the guest to your services and marketing materials, and drive revenues while reducing costs.

So we currently have ongoing projects with in-room iPads, TVs and mobile apps.

Guest connection will be via one app and BYOD. David Kerr: Our four hotels are under development and we are embracing technology in our standards. We are trying to ensure the latest technology is integrated and that includes the full online integrated GRMS system, the controls in the rooms, Lighting and AC. We also have specialists looking at WiFi, which is essential and we are paying a lot of attention to who we select as a partner for that. But we see that as coming later.

We are also looking at concierge services, and we are looking at

Yes it is technology, but it is also visual storytelling for your brand

What are the key pieces of in-room technology facilitating guest and hotel interactions currently?

Mohammed Rizwan: When we talk about fast paced technology, the most important thing is the really fast internet supporting all the other innovations.

Guests aren’t just concerned with the quality of food and beds, but the quality of connectivity. The more devices we have linked to this, the better it has to be. Connectivity is as important as F&B. In the guest rooms at JW Marriott

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ROUNDTABLE

companies to come in and provide this on iPad. It’s our intention to have tablets in each room in order to run the different services.

If we are looking at the interactive apps on which guests can order services and products within the hotel, how do these align with each brand’s approach to luxury?

How can technology complement the personal interactions so synonymous with luxury hospitality?

MR: Marriott has apps which developed in house and we are now rolling out mobile check in and check out over 500 hotels. We are also extending the app for additional services for example concierge and room services. Our MICE clients can make requests through the app which are executed within a set timeframe.

For Marriott as of now, we are considering all the brands to have these services but when we move from manual based system to electronic, you cannot eliminate the human element. You still need associates who are involved with the guest, so we combine technology, generally for the younger or business guests, but then we still have the human

element running parallel.

PR: We don’t see technology as replacing human interaction. Technology in hospitality isn’t about installing robots. The purpose is to engage through experience.

What we aim to achieve with our technology and apps is going to be another channel of customer engagement that is about preempting their needs.

Using data from a combination of sources, whether it’s through preferences stored from their last visit, or activity on the official app during this visit. You are able to personalise your contents and you are able to do location tracking of the guest to personalise that.

Technology isn’t about replacing people it’s about enhancing the personalisation of guest services and taking that to a new level.

DK: If a guest wants the human interaction, they get it, if they want to self-serve in a luxury environment through using technology, they can do that too. The two should work in tandem.

Rahul Salgia: A tablet in the room is a concept, it is almost mainstream now and there are many approaches

We move from manual based systems to electronic but you cannot eliminate the human element

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Room controls, lights, air conditioning, curtain controls, locks.

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In room dining, F&B orders, spa reservations, bill checking.

Reading newspapers, internet, weather forecast, world clock, hotel information, F&B facilities, city map, local attraction info.

Movies on demand, YouTube, DVD players.

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What does your guest want to do?

Book golf, theatre, scuba diving, services beyond the hotel.

to implementing that, with each hotel having its own brand experience to uphold and extend to the guest. The Digivalet app works over five principles of services that guests would want to access while in a hotel (see graphic below). With the advent of technology, for communication to other services, the natural expectation of guests is to have some kind of interface from the hotel.

These technologies give hotels an opportunity to improve communication.

It’s as simple as seeing a fruit platter before you order it – technology empowers the hotel to communicate better with its guests. There is a growing trend of adaptation and hence the engagement level from such technologies should be at different levels.

And in doing that, the hotel can also collect data on how and what guests use in terms of hotel services. For example, if you have a guest who shows interest in fitness and healthy eating you know to position for example an extreme sports activity to them.

PR: The more you know about the guest and the more technology allows you create analytics on their preferences and habits, the better. It exists already, but of course it is all the budget allocated to this and whose job it is to analyse each guest’s usage patterns.

Paramount’s hotels are under development, so in essence the task there is to create a future proof version of the products and room concepts we see today. Talk us through the process.

DK: Ensuring you can get the infrastructure to support these services, a lot of these are going to be WiFi based, so that’s the foundation of all our innovations in terms of tech-based guest developments. That even comes down to having an antenna in each room, rather than in the hall way. In terms of future proofing our systems, the main concern is having a good enough bandwidth to support those future systems.

Going through a process, you also need to test the reliability and usability of the systems. It’s not just a case of a switch on a wall, guests have to have technology available to them before they reach the hotel. In order to be

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comfortable with technology it has to be a norm, as well as the future. We are in a transition period at the moment and have to be mindful of that.

The reliability has to be tested and proven. This industry has suffered in the past when we have installed technology that hasn’t been quite there. TVs, interfaces, we can’t jump too far ahead and risk leaving our guests behind.

Are you at liberty to share how technology will interact with the concierge department and guest interaction at Paramount Hotels?

DK: We have had demonstrations from companies who supply such technology and it is out there, for us at this point it is about future proofing that technology for our hospitality products.

Luca Bandecchi: Paramount knows technology is now part of the hospitality experience. Many guests prefer to use their own devices to interact and that is a key element of this transition period.

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Also, from a hotel perspective we want to create something that allows us to interact with the guest before they come into the hotel. Communication prior to arrival is very important The talk about smart TVs now compared to two years ago appears to have subsided and it would seem that currently the iPad is all the rage, rather than the interactive smart TV. Is their integration into hotel rooms dependent upon their integration in the home?

DK: Definitely. The next TV will be a smart TV and when that becomes standard in people’s everyday life, the hotel industry will also have to take that on board.

PR: TV is the display, but the smart TV itself works from the cloud and that’s

the future. Smart TVs are cloud devices and they are all about apps, which are shared from your own device. What is happening today again depends on the different thoughts, many hotels are getting rid of the set top boxes to install smart TVs and put more money into the tablet experience apps with more guest engagement. It’s more intimate and the guest uses their own smartphone.

Guests still want the TV to do what a TV has always done, then bring the multimedia and interactivity to the room via the iPad or tablet device, because it’s more engaging to use a tablet than a remote control.

DK: Is it not case that there is more content on the web, so they want that content to stream through the TV? iPads are for apps, yes, but TVs can still stream.

We are looking at companies to come in and provide concierge services on iPad

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There is also a trend for integrating devices, for example the bedside alarm clock, do you Digivalet as an app vendor and developer, envision a future where we will see this app integrated into a TV? RS: No. How do people want to interact?

People handle everything by touch and smart devices are becoming much more interactive with flip, multiple touch, voice activated controls. What we have on our television is a display and your interaction with the TV screen is a small fraction of what you can do on a tablet.

In many ways, TV will eventually become a display with all interactivity on a device, of some description. TV will be there because of the display quality, but that will only ever be entertainment, the most interaction it will be used for will be gaming.

MR: We have started to integrate technology into the guest experience across a number of platforms but moving forwards that will remain within the traditional channels. So mobile check in pre-arrival and mobile check out and interactive TVs but using their own devices for hotel apps. The in room technology will focus on the quality of services we provide to the guests.

As we spoke about the amalgamation of different devices in the hotel room, so too there should also be an amalgamation of all the different applications and functions a guest can order, via a single app on a single platform. The idea of a single interface app not only engages the guest, but makes those services easier to utilise.

We have said that what happens in the home leads to what happens in the hotel. However, in developing the guest room of the future, how can hotels take the lead in this process?

PR: Hoteliers cannot compete with the consumer market, it moves too quickly and you don’t yield the result.

What hoteliers should do is have accommodating infrastructure.

People bring their own devices so you need good display and good sound; flexible technologies that can support many platforms and elements.

LB: Also, what you buy for a hotel is only one part of the battle, you also need to manage it. Hotels need products and services that can be instantly understood.

If it takes your guest their whole stay to work a TV or iPad, you haven’t supported their needs.

Today I would say attention spans are short and the window of engagement is therefore short as well. The time to engage the guest is shrinking and we have to be mindful of that.

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Moving away from the tech-savvy side of these products, what are the other challenges you see to integrating things like concierge apps?

MR: When we have a new initiative to deploy, we go through a set of processes, which are about reviewing how that initiative fits into the brand, the direction of the company and the importance we place on different aspects of the hospitality experience.

It’s about creating products that serve the guest better, but that also match the security we need from our systems. Each stage of review requires discussion on how we use guest preferences collected from such devices, how we securely store these and how we explain those terms of use to our guests, because people are protective of their data.

How do the usage patterns of such devices differ between business and leisure guests?

RS: I do not see a difference in the adoption of technology by the business or leisure guest but I would say the

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difference is in reducing complexities.

We acknowledge the mind-set is different between the two profiles, the way they use the room, the amount of time spent in there and what they want from the room differs, but I would say that as long as the application is easy to use and it adds value to the guest’s stay, it will be used.

Simplicity is key, regardless of the guest profile.

DK: We are looking for many other touch points in the Paramount Hotels from digital signage to media mapping.

In public areas it’s all about interactive AV, which is technology led. For the in room standards we are looking at what other hotels are doing and setting a benchmark from there.

Looking now at how that will support guest engagement and where technology and the human touch will come into play, when continuing that lobby experience into the room, how do you aim to achieve the transition?

DK: We are trying to do away with the traditional check in desk in favour of pods or individual workstations, there will be online check in, too. All that technology is being looked at and we are benchmarking ourselves as a techbased hotel.

Robin Goetz: We are in the movie industry, the standards are pretty high and creating that Hollywood experience in a hotel environment will be dependent upon how we interact with the guests, but also how the guests are able to interact with us.

DK: I see a lot of services that bed-side telephones provide being integrated into other devices, we could see the telephone is no longer relevant, just installed because of mandates.

PR: Before tablets came in hotels tried to create the same experience using telephone displays, but people did not like it. Now there are a lot of phone manufacturers who have stopped producing telephones with screen.

DK: Which is another point of exposure for the hoteliers. We could find ourselves spending money on these things only to find out that the guest doesn’t like it. That’s why we have to be careful with our tech investments.

RS: If you don’t want to be the earliest

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adaptor you can wait and see the trends from other brands, but hospitality has always been like that. Of all the industries hospitality has never been the earliest adaptor of technology.

If you do want to lead the way, speak to guests and other hoteliers, review your objectives, asses if your infrastructure is strong enough to innovate.

PR: Every dirham you spend is a risk.

Business is a risk and technology is no different.

RS: One of the largest chains we supplied the Digivalet iPad solution to has spoken to us at length on this very issue.

They had already decided to buy the technology but they wanted to future proof it so we offered them, uniquely, the whole solution on a monthly OPEX model. It not only included the cost of the technology and support, but also the cost of ensuring everything we do is upgradeable as long as the contract is valid.

There could be a financial model to future proof things, too and perhaps considering the pace of the industry when implementing technology to date, that could be a solution.

Does more interaction, as facilitated by technology, enhance the guest experience?

MR: Yes. As we discussed earlier, there are guests who would like to be by themselves and they have access to the technology and they are well versed with all the new things coming in. They should be supported in their wish to interact via apps and tablets.

The guests who demand personalisation in their service, should also be supported in their preferences.

PR: It definitely does but it has to the right product. For me it is all about interface, that’s where you connect and if that element is wrong you will fail.

RS: We say technology should not be seen but it should be seen to be working for the guest. At the end of the day it’s a hotel and hotels are experiential.

You can have a lot of technology working behind the scenes as an enabler, but to the guest it should not be seen as technology.

Simplicity is the way to look at guest facing platforms.

DK: I think it is the overall experience of what you are looking to give the guest.

You want memorable experience and the only thing you want to remember about technology is that it worked, just in the same way that you went to the restaurant and the food was delicious.

That’s a challenge to us. There are many ideas out there but the challenge is making it work.

If a guest wants the human interaction, they get it, if they want to selfserve in a luxury environment using technology, they can do that too.

They need to work in tandem

It’s a similar model to what we see in the consumer market for mobile phones – if that is adopted would technology then exclusively be leased to hotels, and not sold, and what would that do for guest interaction and standards of technology in hospitality?

How would it affect vendors?

PR: The biggest problem would be for the management companies because we run on OPEX. We don’t want to hit our bottom line by spending our budgets on rental models.

We want to invest upfront. On the OPEX model also, vendors have more revenue streams than the direct investment. There are pros and cons, it’s how you want to look at it.

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This discussion was sponsored by Digivalet, a provider of iPad solutions for the luxury hospitality sector.

To contact Digivalet, call +971 55 1042164 or email: info@digivalet.com Hospitality Business magazine would like to thank Armani Hotel, Burj Khalifa, Dubai for hosting this discussion.

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TREND TALK

The case for cloud Clear skies? Implementation and security in industry

Bernard Ellis Vice president of Industry Strategy, Infor Hospitality

T

here is a natural fit between hoteliers and cloud and as a result, numerous benefits for those hospitality businesses looking to exploit the technology. At the beginning of a project there are far lower upfront costs. Especially attractive is the fact that there is no need to purchase additional hardware or increase IT headcount.

After a swift deployment, typically much faster than on-premise, changes can be easily made as business needs expand over time. The long-term return on investment (ROI) is higher because the technology vendor will handle

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system upgrades and enhancements.

And in the case of the worst case scenario, disaster recovery of data is also easier, as information is backed up in the cloud rather than on physical servers.

It is also worth remembering that none of these bonuses come at the expense of the same robust, hospitalityspecific functionality as an on premise system. Indeed, the combination of specific capabilities plus a cloud infrastructure supports globalisation for hotels and resorts. With access via the cloud, users, partners and suppliers at locations across multiple continents can share real-time data on everything from guests to revenue. The inevitable result is that information flows more freely and managing daily operations becomes easier as teams are able to connect from different properties and departments - communication and streamlining go hand in hand. This is seen in more informed decision making, as hotel managers have visibility into comprehensive data and an enterprisewide view of how their organisation is performing and operating.

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The concerns over cloud There are some issues to address and top of this list for the hospitality industry is security. Hoteliers are in a unique position because guest satisfaction, not the delivery of a physical product to market, is the top priority. Compromised guest data including contact and credit card information would mean a serious blow to both revenue and reputation for a hotel. With more ways than ever for customers to voice feedback, including social media and online rating sites, news of a security breach would travel far and wide.

It is therefore vital for hospitality companies to vet a vendor’s approach to cloud security before selecting a provider for their cloud technology.

Hotels must own and manage the data, but they do not need to own its protection - indeed, a technology specialist is better.

Ensuring security in the cloud is a two part endeavour. Hoteliers must take steps internally to safely store and transfer data, staff need to be properly trained and the actual operational processes assessed to make sure that customer data is protected at all times.

The software vendors must also take measures to assess potential threats and implement effective security controls. Its own security approach must be robust and it is essential to confirm that any technology partner follows the industrystandard necessary protocols.

Vendors are the obvious choice as a starting place for each of these security measures. Technology providers should be a partner in ensuring cloud success.

So, with security top of mind for cloud deployment, decision-makers should first ask potential technology partners how in-depth their security strategy is.

No vendor should rely on a single technique or device - there is safety in numbers. Data assurance should be conĆĽrmed through a multiple layer approach with overlapping security controls. For example, the cloud architecture should include different levels to protect against specific strikes like a Distributed Denial-of-Service (DDoS) attack, as well as more general information attacks such as vulnerability

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scanning. Real-time monitoring of potential internet threats and firewalls is also crucial in order to isolate critical components and prevent access from an external network.

at every location is running up-to-date anti-virus protection software and does not have a compromised system. The network should enforce security, even when employees do not.

For an industry based on physical The consistent cloud buildings, one of the other top concerns The next issue is then how this strategy should be the physical measures taken has led to the technology vendor to protect the infrastructure. How the developing products that are cloud data centre will be physically protected secure. Software should secure from is a vital consideration. Will there be the ground up. Security features and registered guest restrictions, locked cage performance for each product should spaces or biometric safeguards? How be established from the beginning to will the vendor monitor, detect and alert guarantee that they are architected into necessary IT staff and decision-makers if the software design. Consistency is key there is a physical intrusion? to any defence and the only way that Beyond physical considerations, can be achieved is have a security-aware the traffic within the network should strategy in place from never be broadcast the point of product using an antenna or In order to truly design. wireless transmitter. A comprehend this, Potential partners virtual private network should also conduct should be required to hotels will have to frequent, routine protect data. These start analysing data should all be part testing to identify potential vulnerabilities of the strategic IT on a transactional and problem areas, as services offered by the level and will no well as code reviews. vendor and they must And these reviews are include mandatory longer be able to not just limited to the security requirements. rely on broad market These could include products. In order to verify that developers automated logging segmentation are kept up-to-date, of security events, confirm that the software provider continuous management of backups, and also conducts regular security training administration of limited user-account sessions to make sure that all security permissions. policies are followed.

Services should be fully compliant with the security standards required for The connected clouds? global data centres in order to enable A key point of security is to assess if the highest level of safety and of course, the cloud network will be separated data should also be encrypted to ensure from the general corporate network. that the information of hotel guests is Independent cloud networks that exist protected from potential threats. separately from the general corporate network provide additional security The contained cloud against data corruption. It also means Best practice is provide options for the cloud network can be designed, tiers of user access within the network, from the ground up, to feature increased allowing hotel staff to see only the security without impacting the information that is required to complete performance of the corporate network. their job. The vendor should not allow View the two as brother and sister, not hotel users to tap into supporting the same child. operating systems or lower functions, Part of this extra protection for the but rather requests should be managed cloud network will then enable hoteliers in different segments, and then sent to to remain protected, even if users do protected back-end databases. not employ security best practices. For If this sounds like a lot of work for the large international chains it is utterly vendor, it is, so check that the vendor impossible to confirm that each user has a specific group or business unit

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tasked with the implementation and deployment of cloud technology. Cloud security is no place for amateur. Confirm that those working to build and launch the system have extensive experience with SaaS-based implementations and have received extensive training on cloud security. Having a group dedicated to cloud technology also indicates that it is a priority for the vendor, and that they will actively work behind the scenes to enable the security of your data, as well as continue to develop system protection enhancements and optimise the application overall.

A vital role for this team should be security monitoring in order to identify attempted breaches. At the most basic level, the system should maintain centrally managed passwords to protect administrative access points to the cloud network. Unsuccessful password attempts and patterns that could potentially indicate a security breach are top priorities. The system should always have the ability to authenticate the server, which ensures that all user sessions are authenticated.

Additionally, vendors should log and monitor security incidents to certify that the system has not been compromised. By collaborating with hoteliers to investigate intrusion attempts, vendors can become a critical ally in mitigating safety risks.

Cloud technology has a massive array of benefits to offer hoteliers and indeed many of the above issues will be invisible to all but a select few within a company. But the security of customer data is critical for the hospitality industry and as such these best practices form the cornerstone of the exceptional ROI that cloud can deliver.

Vendors should demonstrate compliance with ISO-27001 - the internationally recognized credential for a securely designed information management system. This is often the first, and most concrete, box to check when selecting a technology provider for your project.

It is designed to enable the security of financial assets, intellectual property, employee details, and third-party information, which for hoteliers includes guest-related data and should be viewed as “table stakes� in selecting a technology partner.

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TREND TALK

A guide to hotel franchising Will your asset beneƬt from brand aƯliation? Helen Hangari, senior legal consultant, DLA Piper Middle East LLP shares a must-read guide to hotel franchising

Eric Rogers Regional head EMEA, FCS Computer Systems

T

he Middle East and North Africa have long been regions where most international hotel operators do business by way of entering into management agreements with hotel owners whereby they operate hotels in exchange for a fee constituted by various elements (typically a base fee, incentive fee, license fee, marketing and reservations fees and possibly a centralised services fee).

Whilst this is typical for most emerging markets, the market in the MENA region is steadily maturing, a trend that is partly reflected in the growing number of international hotel operators becoming more willing to grant franchise agreements under the right circumstances, to the ‘right’ owners.

Franchise agreements are very popular in Europe and the US but, for many international hotel operators the use of such agreements is relatively new to the region. A well-defined brand, plus the meeting of guest expectations, are the cornerstone of the franchise system and critical to growth and expansion in each region where franchise agreements are used. Therefore, both must be

possible in each case where a franchise agreement is to be used.

For hotel operators the franchise model is very appealing, provided that the ‘right’ type of owners exist in the market. It offers a method of quickly expanding a brand and often lends itself more to three and four star brands, of which there is a particular need and desire to further develop in the Middle East market.

The key question for hotel owners developing a hotel is whether their asset will benefit from affiliation to a brand. There are significant benefits from brand affiliation which generally result in a higher likelihood of success.

For example, increased brand awareness, easier access to financing and access to centralised systems. Taking a franchise is one of the quickest and easiest ways to achieve these benefits whilst allowing the owner to still retain control over its asset.

For owners, the main differences to note between a management agreement and a franchise agreement are: Control - under a franchise agreement, the owner retains day-to-day control and management of the hotel whereas under a management agreement, such management and control is passed to the hotel operator. Therefore, this model appeals to owners who have experience of managing a hotel and want to retain more control over their asset. However, under a franchise agreement, an owner must still adhere to the brand standards, participate in group marketing and advertising, participate in the group’s reservation system and ensure the hotel development/renovation is approved by the hotel brand. Therefore, whilst

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control and management is retained by an owner under a franchise agreement, this is subject to compliance with a framework established by the hotel brand. Of course, the benefits of this framework is the brand affiliation and access to customers who are loyal to that brand.

Rights granted - under a franchise agreement, the owner is granted a license of a package of intellectual property rights relating to the brand which must be used in the operation of the hotel. Access to centralised services and reservation systems are also granted. Under a management agreement, the hotel operator still grants a license of its brand and access

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TREND TALK

to centralised services and reservation systems, but manages the use of these itself.

Fee structure - in general terms, the fees payable to the hotel brand are lower under a franchise agreement compared to a management agreement.

Under a franchise agreement, there is typically an initial fee payable which may be linked to the size of the hotel and may be non-refundable. Thereafter, there is a royalty fee of between 3% and 5% of room revenue, a marketing contribution also based on room revenue of between 2% and 4% and possibly a separate reservation fee which differs depending on the way the hotel brand operates its reservation system. Under

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a management agreement, there is usually a base fee of between 2% and 4% of gross revenue, an incentive fee of around 10% of gross operating profit, a marketing contribution and reservation fees which are of a similar level to under the franchise model and then centralised services fees.

Whether a franchise agreement or management agreement is used, the key to successfully benefitting from a hotel brand is compliance with its brand standards. Under both models, the owner will be responsible at its own cost for developing a hotel in compliance with the brand standards and carrying out any capital expenditure to ensure on-going compliance with the

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brand standards. Therefore, whilst the increased control over an asset under a franchise agreement can appeal to an owner, such an owner must bear in mind that the success of the hotel depends on the faithful compliance with brand standards and that this serves the mutual interests of the owner and the hotel brand.

Helen Hangari is a Senior Legal Consultant in the firm’s Middle East Real Estate Practice. Helen has particular experience of the hotel sector, including advising on hotel management arrangements, mixed use development projects, branded residences and sales and acquisitions having advised many of the region’s operators and owners.

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TREND TALK

Life after free WiFi 64% of hotels now oƪer free wireless Internet (WIFI) to guests, which has become one of, if not the, most sought after amenity for hotel guests worldwide, whether traveling for business or leisure great for travelers, but a challenge for hoteliers.

Jason Jefferys CEO iRiS Software Systems Ltd

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longside diminishing videoon-demand revenues and non-existing telephone income, hotel WiFi revenues are steeply shrinking, whereas the cost to provide Internet has gone up as a result of demand for more bandwidth and mounting infrastructure costs.

The rise in cost and fall in revenues in offering complimentary Internet has become a much-debated issue in the hospitality industry, it naturally leads to the question: Is there life after free WiFi? The answer is: yes there is.

There are 6.8 billion people on the planet. 4 billion of them use a mobile phone compared to the 3.5 billion who use a toothbrush. Out of those 4 billion, 95% bring their mobile phone with them when they stay at a hotel, giving hotels the opportunity to interact with guests through their mobile devices. Besides their mobile phone, 78% of guests bring laptops on an average trip and 55% carry tablets on their travels.

Research shows that one of the first things guests do when arriving at a hotel, is to log on to the property’s wireless Internet, often with multiple devices.

Combined with the knowledge that guests prefer digital hotel information to printed materials, there is really no reason why we shouldn’t engage with guests through mobile from the very moment they arrive, if not earlier.

There is no other industry where customer interaction is more important than in the hospitality sector. It is paramount, especially in luxury. The use

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of mobile technology should therefore be to enhance the guest experience and provide real and tangible benefits to their stay. We add to that the opportunity to recapture lost WiFi revenue through free wireless Internet, meaning there is life after free WiFi! The WiFi landing page of a hotel, restaurant or leisure facility is the single guaranteed opportunity to reach every in-house guest directly and multiple times a day, whether they check in during the night, are part of a group, or kids staying with their parents.

In many cases hotels have their corporate or property website as the WiFi landing page, or worse, it’s the login page of the Internet service provider, which doesn’t add much value to inhouse guests, especially since most of them will have already checked-in to your property by the time they log in. We see the WiFi landing page as the hotel’s premier ancillary revenue window and service enhancer.

Hotels can use this as a window of

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opportunity to boost their revenues and to get a good return on their investment for offering free Internet.

They can do this by turning their WiFi landing page into a powerful sales and marketing platform that features not WiFi the hotel’s special offers and promotions, but gives guests the opportunity to book hotel activities, transportation, spa treatments, etc. as well as order room service and other amenities right from their mobile and through the hotel’s WiFi network.

You can only imagine how much easier it would be to distribute news and promotions such as a last minute offer on the room service menu.

In addition, hotels can look to partner with local brands, shops and companies

and offer advertising on their landing page, hence adding another revenue stream whilst giving guests access to exclusive offers; a true win-win scenario.

Taking it one step further, hotels can save on hefty OTA commissions by encouraging guests to book direct for their next stay, which for most hoteliers is music to their ears.

It’s not just us technology providers to the industry that see life after WIFI. Floor Bleeker, CIO for Mövenpick Hotels and Resorts, says: “As part of Mövenpick’s Natural Enjoyment brand promise we always look for opportunities to make a stay at our hotels even more enjoyable and intuitive. The WiFi landing page is the ideal platform to interact with every one of our guests and provide them with

There are 6.8 billion people on the planet. 4 billion of them use a mobile phone compared to 3.5 billion who use a toothbrush

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value added services and offers.”

To make it as easy as possible for staff and guests, the solution is to offer one digital window to the in-house guest covering the WiFi landing page on the guest’s tablet, smartphone or laptop as well as the hotel TV, and even the digital signage around the property.

The key is a responsive design that looks good on any type of device the guests may bring or the hotel may offer.

This single window would provide the guest with the same content, same services and messages whichever device they use to access it.

The hotel staff only needs to update one content source to ensure a seamless and immediate update of all digital touch points in the hotel.

The hospitality industry is fast recognising the need for mobile technology in their properties. We have seen it reducing costs, increasing revenue and enhancing the guest experience. Your guests are already using the technology and so should you.

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EVENT

Bringing restaurants, hotels and business professionals together

L

ast month saw the gathering of almost 400 hospitality industry professionals for The Hospitality Business Summit hosted at the Dusit Thani Dubai on June 17 and 18, to discuss a broad range of issues and opportunities in the industry, from food to IT. The unique event provided leaders from the region’s hotel and restaurant sector to come together to identify,

debate and act on trends they foresee shaping the coming years, particularly in approach to Expo 2020.

Uniting readers, sponsors and contacts from both Hospitality Business Middle East and The Pro Chef Middle East magazines, participating in key subject panels, a selection of the industry’s top hoteliers and chefs provided delegates with an up-to-date view on a vast range of current industry affairs.

Dr Joanne Taylor, training and research director, TSI UK, and Ghida Sarieddine, hygiene and quality

Taking a look into the world of changing hospitality hygiene regulations, Dr Joanne Taylor, admitted that she believes hotels are losing money by supporting food sampling as it “doesn’t add any value, nor is it reliable”. Taylor explained that across the Middle East standards and sampling specifications vary, creating an inconsistency and the question ‘how do you know you’re testing the right criteria?’

Suggesting an alternative to sampling, Taylor said that companies should be focusing more on standardisation and the day to day practices happening in their kitchens.

Majid Al Marri, DTCM director of hotel classification

DTCM’s director of hotel classification revealed details of the 2014 World Hospitality Championship during the summit, promising delegates a ‘world-class culinary spectacular’ where Emirati cuisine Peter O’Connor, general manager, Habtoor Grand, Gaurav Shanker,

and hospitality will take centre stage through tasting, live cooking and

front office manager, Radisson Blu, Konstantin Zeuke, general manager,

competitions. Organised by Za’abeel Hospitality, the event will return

Kempinski, and Laurent Chaudet, general manager, Pullman DCC

on October 30, for a four day event at the Dubai World Trade Centre featuring 1000 chefs from around the world.

SPONSORED BY:

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EVENT

Saahil Mehta, managing director, Resnet World.

Rupert Diss, director of operations and client servicing at Insignia Worldwide.

In the GCC region, 73% of online searches performed on smartphones are done so in Arabic, reported Saahil Mehta, MD Resnet.

However, 70% of hotels in Dubai listed on TripAdvisor do not offer an Arabic website or booking engine. He noted: “GCC-based hotels need to invest more in Arabic internet. Last year 48% of Saudi Arabia travellers searched on smart phones, but only 12% booked online due to shortage of Arabic booking engines.” A research report performed by Mehta using TripAdvisor revealed that of the 473 hotels listed in Dubai on the website, 83 did not have a website at all, of the remaining 390, only 30% offered Arabic websites, 75% of which did not feature an Arabic booking engine. Furthermore, of those 390 hotels with websites 40% did not have a mobile friendly website.

Sarfraz Dhairkee, Emirates Green Building Council, Rob Collier, Radisson Blu, Charles Blaschke, TAKA Solutions and Sandrine Le Biavant, Farnek.

Darroch Crawford, managing director of Premier Inn, Laurant Chris Gregory, Trip Advisor, Natalie Amos, Four

Viovenel, CEO of Hospitality Management Holdings, and

Communications, and Elodie Patel, Kempinski

Tarek Lofti, revenue management for Golden Tulip.

Mall of The Emirates.

Debating the driving factors and barriers to mid-market hotel growth in UAE, panellists voiced that tax breaks from the local government and an increase in low-cost airline routes to and from Dubai will be just as valuable as the experience of the destination when developing the 3-star hotel market. However, they also warned that construction fees, which skyrocketed by 12% following the positive Expo2020 announcement in November 2013, have quelled some enthusiasm.

Premier Inn MD, Darroch Crawford said: “Value for money is driving the 3-star market and the fact that Dubai is finally accepting the idea Saahil Lalit, associate manager,

of affordable hotels and not snubbing them because they’re not the

Colliers International

usual lavish, luxurious properties the city is used to, the potential of these properties has been realised.”

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Jumeirah’s top F&B executives announced during their keynote that the group’s flagship authentic Mexican restaurant brand, Tortuga, could be introduced in Asia and London. Revealing plans to expand Jumeirah’s F&B footprint beyond its hotels and take established UAE-based F&B brands to a global market, the trio discussed Jumeirah’s The Restaurant Group concept, TRG, under which the group will separate its F&B operations from its hotel accommodation brands. The venture is set to see popular Jumeirah brands opened as standalone venues under franchise and JV contracts.

Silvena Rowe, chef patron and owner, Omnia by Silvena

Celebrity chef Silvena Rowe revealed that she aims to launch her latest restaurant ‘Omnia by Silvena’ by the end of Ramadan. Offering ‘guilt-free indulgent eating’, the new outlet will promote strong Arabic influences in its food and atmosphere. “Omnia by Silvena will celebrate alluring, seductive food in a glamourous but rustic atmosphere, incorporating the wholesome feel of Arabic cuisine. I’ve

Max Grenard, culinary director, Dubai Golf, Daniel

developed a completely new Arabic menu for this restaurant, which is

During, head, Thomas Klein Group and Carlos Hannon,

very strongly influenced by home-style Emirati cooking, however my

chef patron, Tortuga

team will be creating dishes using western, modern techniques.”

SPONSORED BY:

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EVENT

Andy Cuthbert, general manager C&I, Madinat Jumeirah, Sebastian Nohse, executive chef, JW Marriott Marquis, Michael Kitts, director culinary arts, Emirates Academy of Hospitality Management, Frank Noack, cluster executive chef, Hilton and Reif

Dave Shannon, senior consultant, TSI UAE, Sunjeh Raja, director and

Othman, executive chef, Zuma

CEO, ICCA, Brian Morrison, commercial manager, JM Foods, Dr Joanne Taylor, training and research director, TSI UK, Ghida Sarieddine, hygiene and quality manager, and Muhammad Khalid Saeed, senior

Local and internal recruitment are key to staff retention, while ever-

health inspector, Dubai Municipality

growing competition in salary scales could be the most detrimental factor for hotels and restaurants looking to grow a loyal staff, the panel of industry leaders revealed. Nohse commented: “Looking out for traits in a candidate such as loyalty, sincerity and quality from the start of the recruitment process is key to retaining staff. Hiring from Dubai’s internal market allows us easy access to face to face interviews, and hands on testing with candidates.” Panellists also brought attention to the needs of the incoming workforce, Gen-Y. “We also need to take into consideration that the next generation, Gen-Y, has a major effect on staff retention. They want change, new opportunities, they want to grow and are extremely ambitious; we as

Jason Myers, group F&B managing director of Jumeirah Restaurants,

hoteliers, now need to adapt to this new culture,” said Noack.

Jumeirah Group, Christian Gradnitzer, corporate culinary director, Jumeirah Group, Gert Kopera, senior vice president

Dave Reeder, editor The Pro Chef ME, Sudeshna Ghosh, editor BBC GoodFood ME, Brinda Hora, associate director of communications & marketing, InterContinental Dubai Festival City, Samantha Wood, FooDiva and Tariq Sanad, managing director, Lime&Tonic Etinne Haro, director of F&B Fairmont Dubai, Chef Tom Roger, private chef and Willi Elsener, managing director, Bespoke Concepts

Discussing the importance of functional kitchen design, the panel concluded that when a design is not done correctly, it can detrimentally affect a restaurant’s success. Etienne Haro said: “Particularly in this region, because of the growing trend and popularity of using celebrity, top-end designers, many kitchens are being designed beautifully, but Dave Reeder, editor The Pro Chef ME, Uwe Micheel, director

not logically. These designers work with concept, not practicality.” As

of kitchens, Radisson Blu Dubai Deira Creek and president,

space in Dubai comes at a premium and investors want to maximise

Emirates Culinary Guild, Gabriele Kurtz, Talise Wellbeing

profitability by making as much operational space for guests as

Chef, Jumeirah Group and Samantha Wood, FooDiva

possible, kitchen space generally becomes smaller, which in turn affects chef performance, explained Willi Elsener.

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SUSTAINABLE LUXURY Naming a hotel The Palace, creates an illusion of splendor that could be a far cry from sustainable business operations. Yet within 12 months, The Palace Downtown aims to achieve a zero waste to land頭ll target, while at the same time increasing guest engagement through in-room technology. GM Michael 6RUJHQIUH\ DQG FKLHI HQJLQHHU $EGXO{ 4XGGXV{ 6KHLNK explain

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GM PROFILE

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hen The Palace downtown opened its 242 guest rooms and 81 suites in 2007 the concept was to create classical Arabic influences fused with sophistication and luxury.

Far from ending its standards setting approach to hospitality at luxury, The Palace has become a silent supporter of sustainable hospitality. In 2014 the twice Green Globe Certified property has already cut electricity consumption by 28% and pledges to hit a 30% reduction by year end. Additional measures include the use of grey water for staff toilets and reduced size serving plates for all day dining restaurants.

These are backed with more technical drives, such as variable frequency devices for the pool pump and laundry rooms , a reduction in heat exchangers from 2454TRs (tones of refrigeration) to 1636TR and the installation of LED lights.

This year, the hotel embarked on an ambitious drive to achieve zero waste to landfill, through a combination of recycling, upcycling and composting food waste. The hotel, which according to chief engineer Abdul Quddus Sheikh, used to send an entire container to landfill every day, has already achieved a 50% reduction and aims to tackle the remaining 50% - the difficult half – by 2015 end.

Says Sheikh: “The first step of sustainability is to control waste. There are many steps in the industry but the first thing any hotel should do is reduce waste. That’s how we do our part for the environment while providing a luxury hospitality experience.�

Retaining luxury Part of The Address Group of hotels, guests and visitors to The Palace would struggle to find any evidence of compromise when it comes to the integration of sustainability and luxury and it is this point GM Michael Sorgenfrey has worked to ensure is carried into the daily operations of the property. “We do not compromise luxury. Our work to create a more sustainable hotel is about raising awareness among guests. The business man is often in a hurry, but still positively perceives what

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AT A GLANCE GREEN t 28% electricity reduction, 2014 YTD t 30% electricity reduction target in place t *UH\ ZDWHU LQ VWDƨ WRLOHWV t Reduced size serving plates for all day dining restaurants t Variable frequency devices for pool pump and laundry rooms t 2454TRs (tones of refrigeration) in heat exchangers reduced to 1636TR t LED lighting t 50% reduction on waste to ODQGƊOO t =HUR ZDVWH WR ODQGƊOO HQG

we are doing. The luxurious life we live here still has a sense of environment,� he says.

It also uses that sense of environment to create a sense of community, both for the staff and guests.

With an average occupancy rate of 84% across all properties in the chain, the group has seen the same source market and business diversifications as its rivals yet, as Sorgenfrey explains, carves its niche in the small touches luxury hospitality allows for. For example, newly trained tea sommeliers in the lobby lounge.

Looking ahead, Sorgenfrey predicts the pull between the old and new will create a pressing dilemma over the coming year as renovation cycles creep up but guests don’t want to see their favourite things change.

Sorgenfrey confirms that soft refurbishments will commence in guest rooms, with TV sets already

upgraded and iPad application Digivalet introduced to each guest room. The system, which allows guests to order auxiliary hotel services, from room service to spa, concierge bookings, local information and even the daily newspaper, has already propelled a 50% increase in room service revenues.

Naturally, beyond the guest room F&B innovations are on the horizon. “Our USP is that we are a city resort and you can see that the hotel is full but it doesn’t feel like 100% occupancy because 40% is leisure, using the pool facilities and restaurants and the other 60% are business guests who are out during the day. “There are 50 nationalities in the hotel and they are not just there to do a job.

As a general manager I want a hotel where every single colleague in the hotel becomes an ambassador. It’s about giving them the opportunity to shine,� he adds.

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GM PROFILE

Warm ZHOFRPHV Following an extensive AED 135m refurbishment at the Pullman Dubai Deira City Centre, JHQHUDO PDQDJHU /DXUHQW &KDXGHW reveals that RevPAR has increased nearly 50% YoY for Q1 at the hotel, with occupancy rates up by 20%. 6RSKLH 0F&DUULFN reports

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quipped with 30 years of experience in the international and regional hospitality industry, Laurent Chaudet, general manager at the recently re-launched 317-key Pullman Dubai Deira City Centre hotel, reflects on the property’s progress since its official opening in February 2013, reporting that Q1 this year has seen occupancy rates reach between 90 – 92%.

Looking at 2014 so far, when compared with last year RevPAR at the property has increased by 40 – 50% coinciding with a 40% rise in average room rate and 20% rise in occupancy.

The now 12 year old property, which began life as a Sofitel adjoined to the Deira City Centre, was the first in Dubai to be attached to a mall. So far it has flown three brand flags above the door, following an interim under Starwood’s Sheraton brand, which has since moved to Mall of The Emirates.

However, hitting harder times in recent years following the influx of competition, Accor made the decision to not only fully refurbish the hotel, but re-brand and re-position itself in the market as a 5-star hotel bringing business and leisure together.

Commenting on the transition, Chaudet says: “We decided to keep the hotel open during the refurbishment, unlike the residences which we closed for 12 months, because it’s difficult to re-establish yourself back into the

market following one or two years out of it. Because of this and delays in the initial stages, we unfortunately lost a star from our 5-star rating. However, following the re-opening regained that in May 2013, really making Pullman’s launch a monumental moment for Accor and their AED 135m investment.� “It’s not the easiest thing to do, renovating a 12 year old hotel with a complete new, modern concept and brand, but the designers have done a great job. Despite some negative guest feedback last year, due to ongoing internal work, we still finished last year with 80% occupancy in the residences, which has grown this year,� he adds.

In terms of change, Chaudet explains that the refurbishment involved the full renovation of everything in the hotel “starting from the roof�, the swimming pool, spa and fitness centre, all guest rooms and corridors, elevators, lobby, and restaurant outlets, however unlike other renovations projects in the neighbourhood, no structural changes were required. “The designers have really grasped

the spirit of Pullman in the redesign. Pullman is a professional, yet cosmopolitan place where people can feel relaxed and entertained, and the colours and materials use reflect this,� he says.

A focus on art Representing a first for the five year old Pullman brand, the property has launched the ‘Pullman Resident Artist’ initiative in line with a commitment to contemporary art and sustaining the “cool, modern feel� throughout the hotel.

It’s an initiative, which despite the strong financial results reported to date, contributes no direct commercial worth to the hotel, instead creating a cultural pull with community and Islam at its core.

The programme aims to give contemporary artists the opportunity to exhibit in the hotel for a month and be involved in an art evening sponsored by Pullman, the art work can then be found around the property for guests to enjoy. “We decided to do this because eventually as a brand, you have to attach to some sort of concept. We chose

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Stats

50%

RevPAR increase YTD

12

Years since the property first opened

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20%

Occupancy increase

3

Brands have flagged the property to date

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GM PROFILE

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contemporary art because it matches the feel we wish to incorporate in our look and attitude for Pullman. Dubai should be the place for Islamic artists, it’s the perfect setting, and the meeting point we have here is a great place to showcase it,” he explains.

He adds: “The idea is to see young artists showcasing their Islamic art thorough a contemporary way and in the hotel. We hope to hope to have five or six events throughout the year based around this. This isn’t about financial gain for us, it’s more about gaining exposure and providing an alternative method of entertainment for our guests and people who wish to visit and enjoy the art. Not only will be become part of our DNA at Pullman, it also provides us with an opportunity to gain exposure in the media and bring some heart and warmth back into the boring, cold world of business!”

Tomorrow’s USP While Pullman DCC’s flagship USP for the last 12 years has been its co-location with Majid Al Futtaim’s Diera City Centre mall, the stakes today are higher and its exclusive status is now shared with many more mall hotels in Dubai alone.

Commenting, Chaudet says that although Pullman DCC is still actively marketing the hotel through ‘shop and stay packages’, they are now developing other elements to drive occupancy.

“Despite major growth in areas such as Downtown, Dubai Marina, JLT, and Al Barsha, Deira still remains a very attractive and unique place to come in Dubai. We are drawing from the USPs of this area such as the creek, the ‘old Dubai’ and entertainment available in Festival City, perfect for families. For the business guests, perks of our location include the close proximity we have to the airport and also the five minute drive to World Trade Centre via the new fly over” he says.

Additionally, Chaudet brings attention to another USP of providing guests with the welcome they expect from the hospitality industry, of which he believes is lacking in Dubai. “Offering guests a warm welcome is definitely a USP for us. I find in Dubai that many hotel staff now are forgetting the basics of hospitality. They assume they

are already the best and have great reputations, and therefore do not need to put in the work. However, the simple things such as welcoming guests upon arrival and during their stay is the essential to success. Not greeting guests in the correct manner is a grave offence in this industry,” he comments.

And his tip to achieving and maintaining that high degree of homely hospitality? Proficient management.

Chaudet says: “If you don’t have good managers in place, then standards slip.

Staff members all have to share the

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same vision or it just doesn’t work.

It may seem like a minor thing, but welcoming guests is a huge part of hospitality.

“Behind it there is training, procedures, and good attitudes. It’s our job to find candidates who can offer these attributes.”

On a concluding note, the GM, who once dreamt of becoming an airline steward during his time in hospitality school in Paris, notes that he expects big things for this property, and that “the best is yet to come.”

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6/30/14 4:18 PM

Gerald Lawless CEO, Jumeirah Group

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84

HoD PROFILE

Margin maintenance Director of revenue management at Radisson Blu Dubai Media City, Marco Masserini, talks managing hotel proĆŹts in a market with growing inventory and balancing guest wants with the ĆŹnancial requirements of a hotel

W

hatâ&#x20AC;&#x2122;s the most enjoyable part of your current role?

The best part of my current role is that my decisions directly impact the hotelâ&#x20AC;&#x2122;s performances, which is both exciting and scary. With such responsibility just one mistake can cause big ĆĽnancial losses to the company.

Whatâ&#x20AC;&#x2122;s the greatest challenge you face day to day in your role?

In my day to day role, the greatest challenge is anticipating customer behaviour in such a volatile and dynamic market. I have to ensure that we always have the right offers available to

maximise both customer satisfaction, and our profit needs. Balancing the two can be a challenge.

What are the unique obstacles you face working in your current role at this property?

In this role the unique obstacles I face relate to Dubaiâ&#x20AC;&#x2122;s fast growing inventory and slow growth rate in customer demand. This combination means that all hotels are targeting the same clientele, initiating price wars, which is both damaging for the hotelâ&#x20AC;&#x2122;s financial results and also Dubaiâ&#x20AC;&#x2122;s reputation as a highend, luxury destination.

Looking at your role in the wider industry: How can the role of revenue manager be developed further to enhance a hotelâ&#x20AC;&#x2122;s bottom line?

In revenue management it is key that you understand who your clients are and what their needs are. Itâ&#x20AC;&#x2122;s important that a revenue manager not only uses this understanding to generate room revenue, but also look at the hotel from an all round view, to include F&B, I.T, fitness and all other aspects of the property.

Additionally, it would help if a revenue managerâ&#x20AC;&#x2122;s knowledge of technology and incoming market trends are always kept up to date, in order for them to compete effectively in this market.

Name: Marco Masserini Job title: Director of revenue management Time on property: Three months Time in industry: 18 years Career to date: Ţ )URQW RĆŤFH DQG UHFHSWLRQLVW DW Hotel Danieli Venice, a Starwood Luxury Collection property. Ţ )URQW RĆŤFH PDQDJHU DW &URZQH Plaza Milan Linate in Milan at age 23. Ţ 5RRPV GLYLVLRQ PDQDJHU DW 'RPLQD &RUDO %D\ 5HVRUWV Casino in Sharm el Sheikh in 2004. Ţ 5HYHQXH PDQDJHU DW 5RFFR )RUWH Hotel Amigo, Brussels in 2005. Ţ 5HYHQXH PDQDJHU DW 5RFFR )RUWH Brownâ&#x20AC;&#x2122;s Hotel, London in 2007. Ţ &OXVWHU GLUHFWRU RI UHYHQXH PDQDJHPHQW IRU 6RĆŠWHO %HOJLXP in 2010. Ţ 'LUHFWRU RI UHYHQXH PDQDJHPHQW 5DGLVVRQ %OX 'XEDL 0HGLD &LW\ March 2014.

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