Hospitality Business ME | 2015 January

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HOSPITALITY BUSINESS MIDDLE EAST OPERATIONS

DESIGN & TECHNOLOGY

NOW TRENDING

Rocco Forte’s The Charles Hotel, Mövenpick Hotels & Resorts and Aujan Group Holding

Advances in all-rounded hospitality solutions, SOXV WKH LQGXVWU\¶V ¿UVW YLGHR FRQFLHUJH

Investment in hotel rooms, and the evergrowing demand for free, quality Wi-Fi

ALONG FOR THE RIDE A NEW WAVE OF THEME PARKS ACTING AS DESTINATION MAGNETS LOOKS SET TO TRANSFORM THE HOSPITALITY SECTOR

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EDITORIAL

IT’S ALL GROWTH!

SOPHIE MCCARRICK ASSISTANT EDITOR

s we enter another year and the world begins to reign in after festive splurges and holiday indulgence, the Middle East’s hotel industry LV RII WR D À\LQJ VWDUW ZLWK WKH JUHDW PDMRULW\ RI SURSHUWLHV LQ WKH UHJLRQ operating near over 90% occupancy during the New Year weekend. ,QWHUQDWLRQDO WRXULVW DUULYDOV ZHUH XS E\ WKURXJKRXW WKH ¿UVW WHQ PRQWKV RI DFFRUGLQJ WR WKH 81 :RUOG 7RXULVP 2UJDQLVDWLRQ :RUOG 7RXULVP %DURPHWHU DQG ODVW \HDU FDPH WR D FORVH ERDVWLQJ D <R< LQFUHDVH LQ occupancy to 67.4%; propelling 2015 in the right direction. (J\SW -RUGDQ /HEDQRQ DQG 6DXGL $UDELD DOO EHFDPH VWDUV RI WKH VKRZ ODVW \HDU LPSURYLQJ WKHLU RFFXSDWLRQ SHUIRUPDQFH VXEVWDQWLDOO\ ZKHQ FRPSDUHG to 2013; progressing into 2015 with further anticipated growth. 1RZ MXVW ¿YH \HDUV DZD\ IURP WKH PXFK DQWLFLSDWHG ([SR 'XEDL ZLOO VHH D FRQVLGHUDEOH FKXQN RI LWV XSFRPLQJ KRVSLWDOLW\ SLSHOLQH ODXQFK WKLV \HDU ZLWK H[FLWLQJ RSHQLQJV LQFOXGLQJ WKH NH\ ,QWHU&RQWLQHQWDO 'XEDL 0DULQD DQG WKH UHJLRQ¶V ¿UVW 3DOD]]R 9HUVDFH 'XEDL -XVW ZKHQ HYHU\RQH WKRXJKW WKH (PLUDWH KDG UHDFKHG LWV H[WUDYDJDQFH SHDN ZLWQHVVHG WKH DQQRXQFHPHQW RI D VWULQJ RI PHJD SURMHFWV LQFOXGLQJ WKH HLJKW PLOOLRQ VTXDUH IRRW 0DOO RI WKH :RUOG SOXV 'XEDL 3DUNV DQG 5HVRUWV HQFRPSDVVLQJ WKHPH SDUNV 0RWLRQJDWH /HJRODQG DQG %ROO\ZRRG 3DUNV 'XEDL D GH¿QLWH SXEOLF SOHDVHU /RRNLQJ DKHDG WKH *&&¶V WRWDO URRP UHYHQXHV DUH IRUHFDVWHG WR JURZ DW DQ DQQXDO UDWH RI WR ELOOLRQ E\ DQG WKH UHJLRQ¶V KRVSLWDOLW\ LQGXVWU\ LV H[SHFWHG WR PDLQWDLQ VWHDG\ RFFXSDQF\ UDWHV RI WR RYHU WKH QH[W IRXU \HDUV $PLGVW WKH LQXQGDWLRQ RI LQVSLUDWLRQDO µD QHZ \HDU D QHZ VWDUW¶ TXRWHV KHUH¶V RQH WKDW SDUWLFXODUO\ VWDQGV RXW WR PH ³7KH EHVW WLPH WR SODQW D WUHH ZDV \HDUV DJR 7KH VHFRQG EHVW WLPH LV QRZ ´ 7KLV VLPSOH \HW SRZHUIXO &KLQHVH SURYHUE DIILUPV LW¶V QHYHU WRR ODWH WR DFKLHYH greatness and growth on yesterday. Wishing you all a happy, healthy and prosperous 2015!

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EDITORIAL

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CONTENTS

P46

P35

INTRODUCTION P01 Ź EDITOR’S LETTER DATA P06 Ź GLOBAL DATA A global breakdown of hotels confirmed under contact, including construction, final planning and planning stages.

PROCUREMENT P08 Ź SUPPLIER SPOTLIGHT Luxury supplier, Rikan, highlights the importance of having ready-to-go stock available in the Middle East’s hospitality industry.

P10 Ź SUPPLIER NEWS The latest product and supplier news.

P14 Ź 4 CORNERS INTERN DIARY P22

4

Hebah Al Blooshi discusses the importance of greener supply chains.

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CONTENTS

DESIGN & TECHNOLOGY P 16 Ź IT’S ALL ABOUT BYOD Alcatel Lucent Enterprise introduce the industry’s first all-in-one BYOD solution for hotels.

P20 Ź ENHANCING EXPERIENCES A new app launched by Travall represents the region’s first video concierge guide.

P40

P44

DEVELOPMENT & INVESTMENT P22 Ź ALONG FOR THE RIDE Currently boasting the largest pipeline of theme parks in its history, the GCC is poised to capitalise on a new billion dollar industry.

OPERATIONS P28 Ź ISLAND MANAGEMENT Cluster GM for Radisson Blu Hotel, Abu Dhabi Yas Island and Park Inn by Radisson, Yas Island, Criag Bruce, reveals his management strategies.

P30 Ź MINIMISING WASTE, SUPERCHARGING GROWTH Key-players from the hospitality sector explore ways in which a company can boost its bottom line through effective waste management.

P35 Ź THE SUITE ESCAPE GCC travellers now represent one of Munich’s top tourism source markets, says Rocco Forte’s The Charles Hotel GM.

P38 Ź ONE TO WATCH Riverpark will become the grand entrance plaza interconnecting three new theme parks at Dubai’s latest, upcoming mega-leisure and entertainment destination.

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P30

P40 Ź MORE THAN A ONE MAN SHOW With 30 hotels in the Middle East, Mövenpick Hotels & Resorts COO of MEA, Andreas Mattmüller, divulges expansion plans.

TREND TALK P50 Ź THINKING OF INVESTING? Advice on the legal ambiguities surrounding investment in hotel rooms for developers, operators and hoteliers.

P44 Ź AFRICAN OFFERINGS

P52 Ź INTERNET INTEREST

CEO of Aujan Group Holding, Hospitality and Real Estate, Salim Bitar, tells of the company’s strategic growth in Africa.

Tips on how hotels can save on costs, maximise exposure and capture guest data, through Wi-Fi.

EVENT P46 Ź ENJOYABLE EVENINGS

COLUMN P54 Ź SLOWDOWN? WHAT SLOWDOWN?

The UAE Professional Housekeepers come together for an evening of fun.

Why is Dubai so popular with tourists? Sudeshna Ghosh examines.

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DATA

STR GLOBAL: CONSTRUCTION PIPELINE REPORT, NOVEMBER 2014 REGIONAL BREAKDOWN OF HOTELS CONFIRMED UNDER CONTRACT INCLUDING CONSTRUCTION, FINAL PLANNING AND PLANNING STAGES.

Rio de Janeiro

Shanghai

ASIA PACIFIC HOTELS

CENTRAL / SOUTH AMERICA

2,433

HOTELS

ROOMS

545,630 ROOMS PER KEY MARKETS: CHINA:

147,991 INDIA:

29,013 INDONESIA:

28,806 MALAYSIA:

12,124 JAPAN:

8,138

6

438 ROOMS

70,882 ROOMS PER KEY MARKETS: BRAZIL:

50,477 COLOMBIA:

5,008 PANAMA:

2,826 ARGENTINA:

2,403

PHILIPPINES:

CHILE:

7,459

2,369 hospitalitybusinessme.com

DATA

Istanbul

Dubai

MEA

EUROPE

HOTELS:

HOTELS:

644

890

ROOMS:

ROOMS

151,680

141,558

ROOMS PER KEY MARKETS:

ROOMS PER KEY MARKETS:

UAE:

40,102 SAUDI ARABIA:

37,362

GREATER LONDON, ENGLAND:

17,919 ISTANBUL, TURKEY:

7,487 MANCHESTER, ENGLAND:

QATAR:

12,073 EGYPT:

7,583 MOROCCO:

6,381 OMAN:

5,836

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4,362 CENTRAL MOSCOW, RUSSIA:

3,563 GREATER AMSTERDAM, NETHERLANDS:

3,507 GREATER BERLIN, GERMANY:

2,540

NIGERIA:

GREATER MUNICH, GERMANY:

5,412

2,433 7

PROCUREMENT

SUPPLY ON DEMAND SUPPLIER TO OVER 800 HOTELS WORLDWIDE, RIKAN’S MANAGING DIRECTOR, RIAZ KHIMANI TELLS OF AN INCREASED DEMAND FOR MORE USER FRIENDLY AMENITIES IN THE HOSPITALITY INDUSTRY TODAY, AND THE IMPORTANCE OF HAVING READY-TO-GO STOCK.

F

rom tissue boxes to turn down trays and menus to baggage tags, hotel and restaurants supplier, Rikan, is producing luxury amenities for the Middle East and beyond. Established in 1996 the company employs more than 300 people across four manufacturing units in India, Dubai and New York, and supplies to 800 hotels worldwide. And while Rikan’s products include everything from leather folders to resin bathroom accessories, the company’s core strength, according to its Managing Director, Riaz Khimani, lies in its strong research and development team, who can trasmform any hotelier’s vision into reality by designing and creating not only beautiful, but user-friendly, products. They also offer a wide range of F&B and banqueting items for buffet display and service in stainless steel, wood and natural stones, in addition to a design and manufacturing service of exclusive menus and other F&B items. “Our core products are all kinds of leather, metal and resin accessories and OS&E supplies for rooms and F&B,” the MD adds. With core products selling well, Rikan’s current focus is on innovation, and providing a supply on demand service.

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IT’S ALL ABOUT QUALITY “Rikan has always worked towards establishing itself as the most reliable brand providing excellent quality products on time, backed with the best industry service. It’s vital to supply on demand and the company’s vision has always been, and will be to keep working towards this,” says the MD. It appears the focus is well placed, as currently, custom products, designed specifically to meet client’s needs, are Rikan’s best sellers. Last year, the company also witnessed rising demand for more user-friendly accessories. Reacting quickly, Rikan introduced an extensive bathroom line in resin, of which Rikan plans to add two new designs to every year. This line provides hoteliers a cheaper alternative to the traditional stainless steel or brass options. “As for F&B we also introduced a wide range of innovative service bowls and platters in hammered stainless steel in 2014, and in banqueting we introduced a number of new buffet display risers, elevations and stands,” says Khimani. As an overview of the company’s service, he surmises: “We offer hoteliers the opportunity to turn their imagination into

reality. With the extensive manufacturing set up, years of experience and a very established research department we can successfully create products that the hotelier has in mind.” Along with fostering innovation, Khimani explains that Rikan has heightened its responsibility towards the environment and society. “Last year we took our eco-friendly approach a step further with the successful implementation of various green initiatives in our manufacturing units,” he says. Today, all adhesives and glues used in leather products are free of lead, zinc and any other toxic substances. All boards, papers and plastics used in leather products are recyclable and all dyes used in the tanning of leather are natural, with no toxic substances or fume emissions. Rikan also landed ‘Rikan Cares’, a Corporate Social Responsibility fund which sees profits donated towards the education of children in India and medical aid for children and families in need across the world. The company also works closely with Medicines Sans Frontiers, International Red Cross and the Red Crescent in a bid to reach children and women in war torn and disturbed regions.

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PROCUREMENT

SUPPLIER NEWS THE INDUSTRY’S LATEST PRODUCT AND SERVICE INNOVATIONS.

SMART GUEST APPLICATIONS Radisson Royal Hotel, Dubai and Radisson Blu Resort, Fujairah are the first two hotels in the Middle East to employ HoistLocatel’s dedicated guest services portals. The in-room web application aims to provide guests’ with hotel and concierge information in English and Arabic, at the click of a button. From in-room dining orders to city guides and restaurant and spa bookings, the applications, LobbyCompanion, In Room and Companion, greets guests when they first log on to a hotel’s Wi-Fi network.

BREATHE EASY A filter less air purification system developed by NASA, Airocide, has now been introduced to the Middle East market by Akida Holdings a member of Fakhruddin Holdings and Max Electronics, a part of Landmark Group. According to industry experts, Airocide has proved capable of eliminating almost 100% of Volatile Organic Compounds (VOCs), harmful gasses emitted by products like aerosol sprays, cleaning supplies, disinfectants, paints, thinners and pesticides. The revolutionary technology also helps eliminate mould, fungi, viruses and bacteria as it draws in harmful airborne pathogens into a densely packed matrix where they are destroyed, leaving clean air with zero ozone emissions.

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PROCUREMENT

WARM METALS ARE BACK In recent months the hospitality industry has witnessed growing interest in warm metallic tones, and London’s Door Knob Shop is responding by dedicating a part of their display to contemporary gold finishes. In partnership with the foundry, Haute Déco have perfected contemporary variations on gold which involved devising new polishing processes. The result? A soft satin gold that is the epitome of discreet contemporary glamour; and a highly-buffed bright gold that. “The extent to which the same handle in two, not so dissimilar finishes, conveys such different aesthetics never ceases to amaze me” said Marie-Véronique Swannell, Haute Déco’s founder.

SLEEP COOLER Dubai Furniture Manufacturing Company LLC, a premium mattress supplier in the Middle East, has launched a new micro-support, gel infused visco foam pillow by Serta, which promotes cooler temperature surfaces. The micro-support gel infused memory foam pillows come in two grades – Mirth Pillow and Crest Pillow. The Mirth Pillow range provides support and comfort to the head and neck. Its visco elastic gel conforms to the shape of the head and provides unparalleled comfort and support. The Crest pillow however, provides both a comfortable resting position, and optimum temperature.

INSPIRING HOSPITALITY TECHNOLOGY As the hospitality industry experiences a boom across the Middle East, with a pipeline of major projects under contract, Panasonic Marketing Middle East and Africa plans to secure an even greater market share of the MICE and hospitality sector with its technologically advanced and innovative line-up of security, communication and professional display products. Panasonic’s integrated security solutions incorporate advanced imaging and recording technologies specifically engineered for professional security applications, with cutting-edge broadcast, pro video and consumer imaging products and professional business applications.

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PROCUREMENT

A MINI-BAR MOVEMENT For F&B managers looking to increase their bottom lines through effective merchandising Mobile Simple has introduced ABreez, the hospitality industry’s first cloud-based mobile application for mini-bar operations. ABreez Mobile transforms the manual process of checking minibars and in-room amenities into an efficient task for room attendants. This patent-pending solution works with all types of fridges and snack trays. With ABreez, hotels receive immediate deployment, speed and flexibility in a secured environment and once signed up, a property’s minibar department is up and running within 24 hours.

UPGRADING GUESTROOM PHONES NEO is not just a phone, but a new, colourful, in-room electronics series from Bittel that blends design with mobile device charging. Offering more style and colour choices, NEO also boasts a smaller footprint than most devices in the market, says Mitch Heinlein, Bittel vice president of sales and marketing. It also features two USB ports and Bittel’s patented multi-function charging cable to connect guests’ Apple legacy (iPhone 4s and older), Apple lightning (iPhone 5 and new iPad), Micro USB (Android, Blackberry and Windows) and audio 3.5 (for music) mobile devices for easy charging and playing.

PAINT WORKS Kansai Paint, a Japanese-founded international paint and coatings provider, has showcased a range of innovative products featuring cutting-edge technology. With a 100 year heritage and over $60 million committed to coatings research each year, Kansai Paint has led the development of products that excel in both beauty and function. Its range of premium luxury coatings come to life through a full palette of colours and textures that have been introduced to sustain and nurture the natural essence of the world. The paints, which are available in over 1,500 colours, feature benefits which can help reduce building temperatures and kill disease-spreading bacteria.

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PROCUREMENT

SUPPLIER DIRECTORY THE INDUSTRY’S LATEST COMMERCIAL DISTRIBUTION LIST. EMERSON FZE (INSINKERATOR) World Area Headquarters PO Box 17034 RIKAN GENERAL TRADING LLC

Jebel Ali Free Zone

COFFEE PLANET LLC

The Hotel & Restaurant Supply Co.

Dubai

Unasco Building, Al Quoz 4

202, API World Tower

Tel: +971 4 811 8100

PO Box 73042

Shaikh Zayed Road

Fax: +971 4 883 5063

Dubai

P.O. Box 42830

Email: mohamed.karam@emerson.com

Tel: +971 4 341 5537

Tel: +971 4 325 2500

Fax: +971 4 341 5536

Email: riaz@rikan.ae INTERFACE EUROPE LTD

SHURA TRADING

PI Business Suites Building

Cluster G, Dubai Arch Tower, Jumeirah

Office 505, Al Barsha

Lakes Towers

4 CORNER GENERAL TRADING LLC

Dubai

Dubai

Head Office &

Tel: +971 4 399 6934

PO Box 124219, Dubai

Distribution Centre

Fax: +971 4 399 6823

Tel: +971 4 451 6363

Dubai Investment Park 2

Email: sandra.crasta@interface.com

Fax: +971 4 451 6262

P.O Box 473513 Contact: Mike Walden Mob: +971 (0)55 383 2520

NATIONAL BANK OF ABU DHABI PJSC

Tel: +971 (0)4 884 7248

Abu Dhabi

Email: mike.walden@4cornersuae.com

Contact: Bassem El Boustany Tel: +971 2 611 2046

VINGCARD PO Box 341162 Dubai Silicon Oasis Dubai

BOND INTERIORS

DESERT RIVER LLC

Tel: +971 4 326 2136 / +971 43 342 556

PO Box 15758

Al Quoz

Fax: +971 4 326 2851 / +971 4 334 2558

Dubai

PO Box 74054

Tel: +971 4 271 1727

Dubai

Fax: +971 4 271 3797

Tel: +971 4 3233636

Email: tarek@bondinteriors.com

Fax: +971 4 3233686 BARR + WRAY FZE Dubai Silicon Oasis

BURGESS FURNITURE LTD

Le Solarium Building, Office 401

PO Box 500466

INFOR

PO Box 341246

Design House

Dubai Internet City

Dubai

Al Sufouh 1

Building 2, Room 206

Tel: +971 4 320 6440

Dubai

Dubai

Fax: +971 4 320 6441

Tel: +44 208 894 9231

Tel: +971 4 391 4438

Email: sbateman@burgessfurniture.com

Fax: +971 4 390 4873

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PROCUREMENT

FOR A GREENER TOMORROW ACCORDING TO HEBAH AL BLOOSHI, THE GREENING OF SUPPLY CHAIN IS BECOMING INCREASINGLY VITAL AS SCIENTISTS WARN THE WORLD’S OCEANS MAY ONLY HAVE 25 YEARS BEFORE BEING FULLY DEPLETED OF FISH. BY SOPHIE MCCARRICK

aving completed her fourth month of investigating supply and distribution chains within the UAE’s hospitality industry, Hebah Al Blooshi, 4 Corners intern and student at The Emirates Academy of Hospitality Management, highlights the growing need for greener supply chains across the whole of the Middle East. %DFNHG E\ WKH ÂżQGLQJV RI D QHZ VWXG\ OHG E\ the International Programme on the State of the Ocean (IPSO), scientists have forecast that all marine life in the ocean will be depleted by ZLSLQJ RXW KXQGUHGV RI VSHFLHV RI ÂżVK “Residents and tourists alike in the region do not realise that [the] lazy decisions they’re making in hotels are costing the environment massively. People are only thinking in the now, and not about what’s to come. Even if just the hospitality industry changed some of its ways, greening its supply chains, opting for 4 Corners’ one-stop-shop service, the negative effects of carbon emissions we’re already noticing can be offset,â€? comments Al Blooshi. 5HĂ€HFWLQJ RQ KHU ÂżQGLQJV VKH QRWHV WKDW if hotels continue generating over 25,000km

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HEBAH AL BLOOSHI STUDENT AND INTERN

“THEY ARE NOT ONLY HELPING THE ENVIRONMENT BUT ALSO THEIR PROFIT MARGINSâ€? in produce deliveries every week, “our grandchildren will not only never know the WDVWH RI IUHVKO\ FDXJKW RFHDQ ÂżVK EXW WKH\ PD\ never breath clean, fresh air or see what a clear ocean looks like.â€? Appreciating that substantially offsetting

negative environmental effects would require a global effort, the 4 Corners intern assures that even small changes can make a difference. According to Al Blooshi: “Small alterations in hotels make a difference, like recycling plastic bottles and aluminium cans, not leaving the air conditioning on all the time, taking shorter showers or using eco-shower heads that minimise water usage.â€? However, the vast bulk of the hospitality industry’s environmental and social impact occurs in its supply chain. Tackling these backward linkages is therefore both logical and pressing for any large buyer that is serious about meeting its environmental and social commitments. Engaging suppliers must therefore be seen as an intrinsic part of a hotel’s wider sustainability efforts. “What many hoteliers are failing to realise is that by consolidating their supply chain and lowering the number of deliveries received weekly, they are not only KHOSLQJ WKH HQYLURQPHQW EXW DOVR WKHLU SURÂżW margins,â€? says Al Blooshi. “It’s simply a win-win situation. In addition to lowering carbon emissions and environmental advantages, it cuts down on staffing costs as less drivers are required,â€? she adds. Furthermore, although the motivation for greener supply chains differ from company to company, customers often appear high on the list of drivers for most hospitality groups. Sustainable procurement is integral to building a company’s green credentials, which are increasingly seen as a means of gaining market differentiation and competitive advantage. “With every day further I go into my research, the more I’m certain that in order for the Middle East to fully implement 4 Corners one-stop-shop concept, it will only take several, well-known hotels to take a stand. The rest will follow,â€? Al Blooshi concludes.

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DESIGN & TECHNOLOGY

IT’S ALL ABOUT BYOD

SIMPLICITY, ACCESSIBILITY, CONNECTIVITY ALL EMPOWERED BY TECHNOLOGY IS THE WAY FORWARD IN HOSPITALITY SAYS THIERRY BONNIN, ALCATEL-LUCENT ENTERPRISE’S WORLDWIDE SVP, WHILST INTRODUCING THE INDUSTRY’S FIRST ALL-IN-ONE BYOD SOLUTION FOR HOTELS.

BY SOPHIE MCCARRICK

nspired by the world we live in, where most individuals carry smartphones, tablets and laptops at all times, the BYOD (bring your own device) concept was born, influencing Alcatel-Lucent Enterprise’s decision to launch a hospitality solution that enables guests to access all hotel services, through their personal gadgets. Specifically designed for the hospitality industry, the ‘Guest BYOD Telephony’ solution is compatible with both Apple iOS and Android operating systems allowing interaction before, during and after a visitor’s stay. Once installed on a guest’s smartphone or tablet, the solution complements existing telephones in hotel rooms and can also be used in place of a fixed line telephone, enabling users to access hotel services via their mobile devices. It can also be integrated with third-party ‘e-concierge’ applications or offered by the hotel as a standalone softphone to provide guests with functions such as access to the hotel directory, speed dial, caller ID, and free internal calls when on hotel WiFi, plus a click-to-call ‘e-concierge’ option. Multiple devices can be assigned to each guest room and are automatically registered and managed as part of the hotel telephony and billing suite. “Alcatel-Lucent Enterprise has long been a leader and provider of advanced hospitality solutions to many of the world’s leading hotels. We are delighted to continue our leadership by offering our new Guest BYOD Telephony solution, the first solution that enables hotel

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groups to combine the benefits of thirdparty application functionality with voice capabilities on the device most familiar to their hotel guests – their own smartphones,” comments Thierry Bonnin, worldwide sales vice president global accounts and verticals, Alcatel-Lucent Enterprise. He adds, “Today, other vendors provide Voice over IP apps but not as an extension of the guest room phone, which is where the value lies in our new offering.” As technological innovation and evolution continues, so, too, does guest expectation. In order to ensure consumer satisfaction whilst maintaining the latest tech-savvy standards, Alcatel-Lucent Enterprise has considered all aspects of

hotel operations within its solution to allow lower infrastructure costs, an enriched guest experience and improved hotel, resort and cruise operations.

GUEST EXPERIENCE ENRICHMENT With the touch of a screen, guests are provided with total control over their room and service booking, providing them with a 360° personalised experience when using AlcatelLucent Enterprise’s hospitality solution. “Guest expectations have never been so complex or intricately linked to connectivity as they are today, and hotels need to provide optimum, user-friendly platforms for them to use their mobile devices to the full,” says Bonnin. “The award-winning My IC Phone

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DESIGN & TECHNOLOGY

centralises control for room appliances and connects guests with hotel services and reservations. Guests can control their environment and personalise their settings to match their preferences.” Whilst the ‘Mobile Guest Softphone’ allows guests to take control from their own mobile device, phone functionalities also include push notifications, which can be used by the hotelier to send targeted offers to customers’ devices in a bid to increase footfall in hotel restaurants and other venues. Bonnin brings focus to the importance of WiFi in today’s hospitality industry, noting that bad or non-existent WiFi has now become a deal-breaker for hotel guests who

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want quality connections for their mobile devices. “BYOD has radically altered guests’ definition of good service.” “Our network infrastructure solutions support hotels in satisfying customers, managing costs and generating new revenue streams. With our solutions for reducing infrastructure costs, hotels can deliver secure broadband and use segmentation to start charging for WiFi access. A powerful network will help unleash the full potential of BYOD to offer guests tailored deals and increase revenue,” he explains. Used by Al Rayyan Hospitality in Qatar, another aspect of the solution involves consolidating networks (WiFi, telephony, security cameras and more) to simplify

operations, lower maintenance costs and achieve greater transparency and efficiency. Bonnin concurs: “Managing access to a converged network is easy. The AlcatelLucent Enterprise Unified Access solution enables network access segmentation by person and type of device. It gives staff and guests access to appropriate IP devices, such as telephony or security cameras, while maintaining complete control over the secure network at all times.”

BETTER HOTEL OPERATIONS Meanwhile, Alcatel Lucent Enterprise’s ZRUNÀRZ PDQDJHPHQW V\VWHP LV VDLG WR ERRVW staff productivity, improve service and make teamwork simple through mobility, video

17

DESIGN & TECHNOLOGY

The Executive Briefing Center is at the heart of the newlybuilt Enterprise headquarters in Colombes, France.

“OUR COSTEFFECTIVE SOLUTIONS HELP ORGANISATIONS EMBRACE NEW USERS AND MODELS BY ENABLING MULTIMEDIA CONVERSATIONS ACROSS ANY DEVICE”

END TO END BENEFITS

IMPROVED GUEST EXPERIENCE

NEW REVENUE OPPORTUNITIES

OPTIMISED HOTEL OPERATIONS

Superior handling of guest

Customisable in-room services

Communications services tailored

reservations and inquiries

to job requirements Online gaming and video

Personalised in-room services

on demand

using a customised telephonebased interface

Unified communications including fixed and mobile services

In-room digital TV, radio and music options

TV-based service delivery

Enhanced front desk operations through integrated communications

Wireless telephone and internet Wireless telephony services

Voice, data and video conferencing Advanced business services

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High-speed wired and wireless

Simplified management of the

internet

communications infrastructure

hospitalitybusinessme.com

DESIGN & TECHNOLOGY

FRQIHUHQFLQJ DQG ZRUNĂ€RZ PDQDJHPHQW solutions. “Solutions exist to improve hotel operations by simplifying communications, increasing transparency and implementing HIIHFWLYH ZRUNĂ€RZ PDQDJHPHQW ´ $OFDWHO /XFHQW (QWHUSULVHÂśV ZRUNĂ€RZ management system provides task management, accountability and tracking. “You’ll see customer satisfaction improve as \RXU WHDP DGGUHVVHV UHTXHVWV HIÂżFLHQWO\ DQG LQ RUGHU RI SULRULW\ ´ 7KH (PHUJHQF\ 1RWLÂżFDWLRQ Server ensures hoteliers are alerted in case of an emergency, increasing safety and enabling hotel staff to take action in time, while data is FROOHFWHG WR HQDEOH SUREOHP LGHQWLÂżFDWLRQ DQG continual service improvement. 6WUHDPOLQLQJ ZRUNĂ€RZ PDQDJHPHQW DQG communications for hotel employees, AlcatelLucent Enterprise telephony solutions, including digitally enhanced cordless handsets, make real-time communication possible. Individuals are able to move around and stay in contact with each other using the Softphone Application, which allows staff to receive calls on their mobile devices using a multiple line internal network.

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With headquarters in France near Paris, and 2,700 employees worldwide, AlcatelLucent Enterprise currently serves more than 500,000 customers globally. “Our cost-effective solutions help organisations embrace new users and models by enabling multimedia conversations DFURVV DQ\ GHYLFH IURP RIÂżFH WR WKH FORXG supported by Application Fluent Network,â€? summarises Bonnin.

Today,

everyone

from

the

concierge

to the maid can connect and share information in real time. “- Loic Le Berre, director

general,

Buddha

Bar

Hotel,

Paris, France “The great thing with an IP infrastructure is that you can enhance it with new features

and

applications

that

are

relevant to the business. There will always be ad hoc requirements not on

HOTELIERS HAVE THEIR SAY‌

the original specification.� - Luis Silva, director of IT

“Alcatel-Lucent gives great support – all over the Middle East – but in Qatar

“We’re looking for a long-term partner,

especially. And this is why we decided to

not

just

an

go with Alcatel-Lucent, to get something

provider.

We

for our guests and our administration

for

which is not just reliable but problem-

expertise and global presence. We are

free.�

confident that the company understands

-

Saeed

Rehman,

cluster

IT

manager, Al Rayyan Hospitality, Qatar

its

broad

immediate chose

equipment

Alcatel-Lucent

product

line,

industry

our objectives and will work with us to achieve our vision to become the

“The

mobility

offer

really

brought

worldwide

specialist

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all-inclusive,

efficiency to our teams, allowing them

upscale,

to be available at any time and therefore

vacations.� - Michel Wolfovski, executive

rapidly answer our customers’ needs.

vice president and CFO of Club Med

friendly

and

multicultural

19

ENHANCING EXPERIENCES

Photograph by Dave Reeder

TAKING INTERACTIVE GUIDES TO ANOTHER LEVEL OF INTIMACY AND PERSONALISATION, THE RECENTLY LAUNCHED TRAVALL APP REPRESENTS THE MENA REGION’S FIRST VIDEO CONCIERGE GUIDE.

20

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DESIGN & TECHNOLOGY

n December 2014, travall, a new video review mobile application was launched across Dubai. The with hopes of becoming the region’s ultimate experience enhancer. The mobile concierge app can be downloaded free of charge on all iOS and Android platforms via the App Store or Google Play. Once installed, tourists and residents alike are able to build an itinerary, make reservations, share details on social media, rate and review an outlet and redeem free vouchers. Set to launch in Abu Dhabi in February, and across the rest of the UAE over the coming months, travall will be offered to 3,600 travel agents throughout the 0(1$ UHJLRQ 'HVLJQHG VSHFLÂżFDOO\ WR support the travel, tourism, entertainment and leisure industries, the app offers videos and information on a number of popular Dubai-based destinations with compelling, broadcast standard videos that engage consumers looking for insight into the destinations, before or during their visit. “Users can check accommodation, dining, venues, clubs, activities, malls and exhibitions by watching a 30 or 60-second videos. The app also provides an interactive RSWLRQ VR WKDW XVHUV FDQ ÂżOP WKHLU RZQ 15-second Video Review, for others to ZDWFK Âą D ÂżUVW RI LWV NLQG LQ WKH 8$( ´ explains Adam Ridgeway, CEO of travall. Explaining the advantages to a visitor’s experience, Ridgway says, “travall is a perfect support app to businesses involved in, or connected to, Dubai’s travel and tourism business. Primarily, however, the app is a consumer app that allows the user to gain better insight into the destinations and locations they hope to visit, by being JLYHQ D GHGLFDWHG YLVXDO WRXU ´ “We are all familiar with the ‘memories’ that are created when we travel; at travall we are committed to creating what we call ‘pre-memories’ – experiences of the GHVWLQDWLRQ EHIRUH JHWWLQJ WKHUH ´ KH DGGHG In addition to allowing app-users to build an entire itinerary for their trip, other key features include: Making reservations; sharing details on social media; rating and reviewing an outlet; redeeming free

I

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Travall app available for all iOS and Android platforms.

vouchers; and taking advantage of last minute promotions. In addition, the most engaged users can earn points towards various prizes including: meal deals, weekend stays, holidays, flights, and other travel and leisure experiences. With travall’s management team claiming that the app will be made available to 3,600 travel agents in the MENA region, it is hoped that it will lend support to agents selling Dubai as both a holiday or business destination. Clients already on board include the Burj Al Arab, Atlantis Hotel, Dubai World Trade Centre, Anantara, Sofitel, Cle and Dubai’s Roads & Transportation Authority. “We feel very strongly that organisations or destinations will increase their opportunities for generating more business by partnering with travall and using the specially created videos to leverage their unique selling points. We currently have some of the greatest hospitality, leisure, retail and entertainment brands, and we are adding videos to our Dubai and Abu Dhabi GHVWLQDWLRQV DW D UDSLG UDWH ´ KH VD\V Recent data suggests that online video marketing is rapidly becoming more of an influence on the purchasing decisions of consumers. “Over 65% of consumers that view videos online click through to the vendor’s website and 52% say that product videos create more confidence

in their online purchases. Online video marketing is also believed to increases EUDQG DVVRFLDWLRQ E\ D GUDPDWLF ´ says Ridgway, who beleives that travall’s detailed, first person, point of view videos offer a more personalised, immersive experience than a still image or just the written word. Moving forward, the app, which boasts 1,700 downloads since December 2014 is scheduled to launch in international markets such as Bahrain, KSA, India, Mexico, South Africa and the US as part of its franchised-model business plan.

21

DEVELOPMENT & INVESTMENTS

22

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DEVELOPMENT & INVESTMENTS

ALONG FOR THE RIDE CURRENTLY BOASTING THE LARGEST PIPELINE OF THEME PARKS IN ITS HISTORY, THE GCC IS POISED TO CAPITALISE ON A NEW BILLION DOLLAR INDUSTRY. BY SOPHIE MCCARRICK

hen the first Disneyland park opened in 1955, its founder Walt Disney was hailed a visionary. The man who was once ridiculed for trying to create the world’s first feature-length animated film, had created a business model so lucrative that in 2013, Forbes reported the company’s 11 operational theme parks around the world contributed almost one third of the Walt Disney Company’s $45bn revenues and 20.7% of its $10.7bn operating profit. The Magic Kingdom did indeed become the place “where dreams come true” and today Walt’s money factory brands account for nine of the ten most visited parks worldwide. And while Disney may have no plans to enter the Middle East, today the GCC has the largest theme park development pipeline in its history and there are big plans ahead for the industry. “Theme parks are a draw card for many leading family tourism destinations and their success plays an important role

W

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in providing a constant flow of family tourists to an area, positively impacting the hotels that are situated within or in close proximity to the parks,” comments Filippo Sona, director, head of hotels, Colliers International MENA. While destinations throughout the USA, Europe and Asia have undeniably made breakthroughs in the theme park and themed hotels sector, the GCC is only just pushing the boundaries of this leisureinspired industry. Major theme parks planned include IMG World of Adventure, Montiongate, Legoland, Bollywood Parks and Red Sea Astrarium, and there’s an ever-growing gap in the market for hotel operators and investors to capitalise via one of two types of themed hotels: innercircle hotels, located within the theme park and generally full themed, and outercircle hotels, situated on the periphery and usually “lightly-themed.” The first brand to fully commit to

23

DEVELOPMENT & INVESTMENTS

the new opportunity, will be Marriott International, which is confirmed to operate the Polynesian “Lapita” family hotel at Riverpark; the gateway to Dubai’s first multi-park development. Alex Kyriakidis, president and MD of Marriott International, MEA said at the time, “We are confident that given the ambition, drive and commitment of our partners, Dubai Parks and Resorts will emerge as the premier theme park destination in the Middle East, and provide a perfect fit for our debut Autograph Collection hotel in the region.” According to Colliers International’s report The DNA of Theme Park Hotels, theme parks and their accompanying resorts are playing an increasingly important role in attracting not only family visitors, but also MICE tourism. Sona says, “The concept of inner-circle hotels has not yet been developed in the region, as it first would require the opening

of a large-scale theme park.” The first such opening is expected to be Lapita, due 2016. “Having visitors stay within the vicinity can extend length of stay and increase the tendency of repeat visits, which generates significantly larger returns than from theme parks alone,” he adds. Based on global research, inner-circle theme park hotels trade at an average occupancy level 2-10% higher than city hotels. Predominantly orientated towards leisure and family guests, these hotels can also attract large MICE groups if their offer is segmented effectively.

CATERING TO DEMAND With close to 45 amusement parks and waterparks operating in the GCC region at present, the report reveals that the majority of attractions are currently located in the UAE, primarily in Dubai, followed by Abu Dhabi, Sharjah and Ras Al Khaimah. Although Colliers counts 44 themed

THEMED HOTELS - KEY RISKS AND RISK MAITIGATION RISKS

By targeting one segment only (i.e. leisure tourists), there is a risk of being affected by seasonality.

RISK MITIGATION

Target several segments. provide facilities, services and experiences that will bring MICE guests to the hotel.

The popularity of a specific theme may change over time, which can affect a themed.hotel.

Create a broad theme that is flexible and appeals to all cultures. for example, if partnering with a movie production company, the themes are the movies, hence change over time.

No theming, soft theming or light theming may result in an incomplete experience, and possible mismatch with the overall experience

Create a more complete theme, that extends through all aspects of a guests stay, from design to F&B offerings, to entertainment and services.

entertainment destinations in the GCC, the concept of having lodging facilities close by remains largely underdeveloped. At present very few attractions offer a dedicated hotel, such as Dreamland Aqua Park in Umm Al Quwain, UAE. On the other hand, a trend noted in the Middle East is the tendency to develop a leisure attraction as an added entertainment facility within a resort property, such as Aquaventure Waterpark within the Atlantis the Palm complex. Incidentally, Walt Disney World Orlando is served by 140 hotels nearby and just 25 inner-circle hotels.

WINNING FACTORS The Colliers International report stresses that while investors and developers should consider proximity to theme parks carefully before building a property, the distance to the city centre should not be neglected either. Close proximity to the city centre enables easy accessibility; a key factor for corporate and MICE travellers. All major theme parks are catalysts for MICE tourism, the report states, and as this industry gains momentum within the Middle East, themed hotels provide an extra, experiential pull to the corporate sector. “The ability to target the MICE segment will play an important role in the

Source: colliers international

24

hospitalitybusinessme.com

DEVELOPMENT & INVESTMENTS

emphasises the importance of balancing guest experience and construction costs. Reflecting on the results, Sona concludes: “By observing global theme park hotels and their success factors, we are confident that these developments can thrive in this region. “However, the real winners will be those who pick the right location, broaden their appeal beyond just leisure guests, and control costs by taking a flexible approach to theming.”

ANALYST EYE Filippo Sona, director, head of hotels MENA, Colliers International, answers HBME’s questions How can a theme park hotel minimise its risk exposure in the GCC? The key principle to minimise risk is to firstly broaden the targeted segments to include a good proportion of MICE business in order to fill the demand

long-term success of theme park hotels. This sector would soften the seasonality impact and diversify the target markets once leisure demand matures,” Sona comments. Colliers reports occupancy rates and length of stay timings can be drastically impacted by location, accessibility, and neighbouring activities such as conference centres, retail outlets, a beach, golf courses and restaurants. Given the higher costs associated with developing themed hotels, the report also

THE REAL TEST

required during mid-week and lower

Now, faith lies in the hands of those investors willing to take the plunge into accepting Dubai Parks and Resorts AED 2.5bn IPO. Issued in December after experiencing high levels of oversubscription for its offering from some of the most prestigious investors in the Middle East. Raed Al Nuaimi, chief executive of Dubai Parks rounded-up: “We believe Dubai Parks has the potential to generate significant value over the long term. The strong response we have seen from both institutional and retail investors validates the project’s future prospects.”

seasonality targeting

period.

regional

Next,

focus

on

tourists

from

the

GCC to stimulate repeat visitation and then keep innovating the theming of the hotels to match the demand of the target audience. Which existing international theming model

do

you

expect

to

be

most

be

more

attractive to GCC investors? Soft

theming

is

likely

to

attractive due to the versatility of the business model. Who do you envision operating theme park hotels in the GCC? Globally, 17% of theme park hotels are

THEMED HOTELS DEVELOPMENT COST

internationally branded while 41% are consumer brands. Therefore I see the same trend happening within GCC where

NON-THEMED HOTEL

SOFT THEMED HOTEL

Standard developments costs

3-10% increase in OS&E costs (uniforms, amenities etc)

there will be a mix of arrangements which will be suited for the strategy of the overall themed parks. This will also be determined by the inner or outer circle locations. How much is this sector worth?

LIGHTLY THEMED HOTEL

FULL HARD THEMED HOTEL

10-15% increase in OS&E and FF&E costs

15-30% increase in OS&E FF&E and construction costs

It’s very premature to quantify, however it will likely be into billions of Dollars. With the venues already under construction, for sure the market will require an additional 10,000 to 15,000 keys across the GCC, and if all these theme parks will be built

OS&E: OPERATING SUPPLIES AND EQUIPMENT FF&E: FIXTURES, FURNITURE AND EQUIPMENT

within the announced opening date it may allow Dubai to achieve the 20 million visitors ahead of 2020.

Source: Colliers International

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25

DEVELOPMENT & INVESTMENTS

SEGMENTATION, SOURCE MARKETS AND LENGTH OF STAY IN THEME PARK HOTELS

DISNEYLAND PARIS Length of stay: 2.4 days Majority: Regional market

FLORIDA THEME PARK HOTELS Length of stay: 4.5 days Majority: Domestic, Asian, South American

TOKYO DISNEYLAND Length of stay: 1.3 days Majority: Domestic market

RESORTS WORLD SENTOSA Length of stay: 5.7 days Majority: Regional/ Malaysia, China, Indonesia, India

HONG KONG DISNEYLAND Length of stay: 2.0 days Majority: Domestic/Chinese

THEME PARK HOTELS - THE KEY SUCCESS FACTORS t Choose the right brand t Focus on regional source markets t Target MICE business t Choose the right level of theming t Create and enhance the destination t M aximise length of stay by competing with city hotels t Cater to the needs of families t P osition as mid-market or upscale, not luxury Source: Colliers International

26

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D

ese

DEVELOPMENT & INVESTMENTS

LOCAL PERSPECTIVES

HOTEL GENERAL MANAGERS ANKE GLAESSING FROM MÖVENPICK HOTEL, DEIRA, OTTO KURZENDORFER OF JA OCEAN VIEW HOTEL AND DAVID ALLAN FROM RADISSON BLU, DUBAI MEDIA CITY, SHARE THEIR OPINIONS. world class facilities such as a Universal Studios or Alton Towers would be great. Could theme parks support a growth in MICE tourism? A.G: Surely it would help. MICE agents are always looking for new activities to Anke Glaessing

David Allan

Otto Kurzendorfer

propose to clients. This might further

Mövenpick Hotel, Deira

Radisson Blu, Dubai Media City

JA Ocean View Hotel

help in the return ration of a specific MICE client. They would have the choice

Do you believe the development of

now consider it, to experience the local

of historical tours, shopping, desert trips

theme parks is crucial to future tourism

culture in addition to the themed venue.

and also theme parks.

development?

O.K: Yes, themed hotels in the right

D.A: With regard to MICE demand, I’d be

Anke Glaessing: I would not say the

location

factor,

hesitant to say yes but would add that it

development is crucial, but I would rather

however will have a shorter shelf life

could certainly do no harm in providing

say it is essential to have parks developed

than a traditional beach or city hotel due

another facet for us to sell the UAE as

in this area to attract family tourism and

to the concept evolvement of around 15

a destination.

also leisure tourism overall.

to 25 years. I think age themed hotels like

Otto Kurzendorfer: Yes, they will play a

the Wild West or Old Rome could create a

What are your thoughts on further theme

major role in establishing a secondary

very unique appeal.

parks and themed hotels in the region?

will

have

a

novelty

geographic customer focus for the region.

A.G:

When

designing

theme

parks

I

David Allan: I would suggest that a

Which theme parks, if any, do you believe

think one should consider the various

structured and targeted growth of theme

should be developed here?

nationalities and cultures that visit the

parks is absolutely essential to growing

O.K: Cultural hotels which are strongly

UAE and live here too. Furthermore, the

tourism demand further in the GCC.

themed do exist already, for example the

location of theme parks should be varied

The caveat is that this growth must be

Royal Mirage, some Jumeirah properties,

not clustered, to boost tourism in various

structured and targeted; the right ‘type’ of

Bab Al Shams. However stronger themed

areas and not only ‘new Dubai’.

theme park in the most desirable location.

hotels like Legoland, Playmobil, Hello

O.K: I believe traditional European guests

There must be infrastructure in terms of

Kitty, Japanese Manga, or Paramount

are not the biggest fans of the classical

transport, hotels and general amenities to

Hotels, would certainly find a strong

theme parks such as Legoland or Disney.

support this growth.

following here. Although I do believe

They have a tendency to visit cultural

The relative success of Ferrari World on

that geographic, cultural, science or time

or recreational theme parks. While new

Yas Island is the ideal case in point.

period oriented theme parks would have

markets

a longer attraction timeline than purely

America and Africa are more receptive

Is it necessary for more themed hotels to

kids’ themed parks.

to

be developed in the region?

D.A: I would strongly suggest that they

Singapore,

A.G: The region can easily sustain a few

should be attractions that offer distinct

Shanghai, so I think it’s important to offer

theme parks including themed hotels, for

alternatives to the UAE’s USPs, which

variations to suit all.

example Hard Rock Hotel. Themed hotels

are namely shopping and dining. These

D.A: Themed hotels can only add to the

usually have their own target clientele so

points do not appeal to all and to grow

attraction of the area and, I for one, am

having one of these in the region would

tourism demand in a sustainable manner,

all for supporting them. They may not be

mean that guests who may not have

the appeal of the country needs to be

to my personal taste but they appeal to

considered traveling to the UAE would

broadened. A family style park with

many. So, why not?

hospitalitybusinessme.com

such

classical

as

China,

theme Hong

India,

parks,

Kong,

South

proven

Sydney,

in and

27

OPERATIONS

ISLAND MANAGEMENT &/867(5 *(1(5$/ 0$1$*(5 )25 5$',6621 %/8 +27(/ $%8 '+$%, <$6 ,6/$1' $1' 3$5. ,11 %< 5$',6621 <$6 ,6/$1' CRIAG BRUCE REVEALS +,6 0$&52 0$1$*(0(17 675$7(*,(6 )25 23(5$7,1* :,7+,1 $ 0,&52 0$5.(7

What’s the most enjoyable part of your current role, and what opportunties are you regularly faced with?

briefings throughout all organisational KLHUDUFK\ FUHDWHV RSWLPDO LQYROYHPHQW

PROFILE

Expecting the unexpected would be the hallmark of being a general manager, due to the dynamics of the hospitality industry ZLWKLQ WKH 8$( DQG VSHFLÂżFDOO\ <DV ,VODQG Opportunities arise daily and even hourly, our team is always ready to respond to the QHHGV RI JXHVWV SURPSWO\ DQG HIIHFWLYHO\ Supporting the management team, enhancing their capabilities through empowerment UHĂ€HFWV SRVLWLYHO\ RQ WKH KRWHOÂśV SHUIRUPDQFH

What are the unique obstacles you face

Name: Craig Bruce

working in your current role at this property?

Job title: Cluster general manager for

The island consists of six hotels grouped WRJHWKHU LQ <DV 3OD]D ZLWK WKH VDPH NH\ VHOOLQJ SRLQWV WDUJHWV DQG VHJPHQWDWLRQ 6R GLIIHUHQWLDWLQJ \RXUVHOI LV D XQLTXH REVWDFOH 5H]LGRUÂśV HWKRV GULYHV RQ EXLOGLQJ JXHVW relationships as a key factor while being professional, responsible and focused on TXDOLWDWLYH VHUYLFH

Radisson Blu Hotel, Abu Dhabi Yas Island

What’s the greatest challenge you face day to day in your role and how do you overcome it?

Looking at your position in the wider industry: How can this role be developed further to enhance a hotel’s bottom line?

February 2009 – 2012: Cluster Hotel

,Q P\ FXUUHQW UROH DWWDLQLQJ FRQVWDQW alignment and focus on the business strategy goals across all departments is challenging, with the vast number of nationalities, different perceptions, WKRXJKWV DQG DQDO\WLFV PHWKRGRORJLHV Weekly meetings and regular brainstorming

Communication is key, conducting regular PHHWLQJV DPRQJ WKH *0ÂśV RQ WKH LVODQG has created an opportunity to tackle current RSSRUWXQLWLHV DQG IXWXUH HQGHDYRXUV Shifting to macro level strategies as a destination island will eventually enhance $EX 'KDEL DQG WKH 8QLWHG $UDE (PLUDWHV

Radisson, Yas Island

and Park Inn by Radisson, Yas Island Time on property: 2.5 Years Career to date: May 2012 – present: Cluster General Manager for Radisson Blu Hotel, Abu Dhabi Yas Island and Park Inn by Radisson, Yas Island

28

Manager for Radisson Blu Hotel, Abu Dhabi Yas Island and Park Inn by 2007 – 2009: EAM operations Radisson Blu Hotel Waterfront Cape Town, South Africa 2002 – 2007: EAM Sun International Zimbali, South Africa

hospitalitybusinessme.com

ROUNDTABLE

MINIMISING WASTE, SUPERCHARGING GROWTH EXPLORING WAYS IN WHICH A COMPANY CAN BOOST ITS BOTTOM LINE, INCREASE ITS ASSETS AND MAXIMISE RESOURCES THROUGH EFFECTIVE WASTE MANAGEMENT, KEY-PLAYERS FROM THE HOSPITALITY SECTOR GATHER TO DISCUSS THE CHALLENGES AND OPPORTUNITIES.

W

hy do you believe that sustainability isn’t as high on the agenda of

importance in the GCC, as it is in other countries internationally? Simon Dickason: The difference that I find between countries like the UK and the GCC is that sustainability agendas are written as part of UK legislation. Whether you are building a residential property or a hotel, you have to keep that in mind starting from design as it is required by law. In this region however, hotel developers keep sustainability solutions in check but they are not necessarily followed. I’m sure that will change in the coming years, but right now, here in this region, there’s still no written legislation that serves as the core that developers follow. Steven Miller: 7KH UHJLRQ GH¿QLWHO\ IROORZV certain sustainability standards which are

STEVEN MILLER VP BUSINESS DEVELOPMENT, SHAPOORJI

30

often followed by property developers. However, we don’t have benchmarking certifications for these standards, therefore it’s a question of how far it goes. There are architects and engineers who design their projects around these standards but whether the client agrees to those specifications is a different story. How much recognition does the value of being ‘green’ have in this region? Ulysses Pappadopolous: I was in interiors

for 18 years here in the UAE and in the past we implemented projects for most of the multinational corporations eyeing this region. We were increasingly being pushed by these corporations to look at areas suitable for green buildings, but the problem was that the local property developers were not really keen, because

IVAR KRASINSKI DESIGN DIRECTOR, L+B DESIGN GROUP

ULYSSES PAPADOPOULUS FOUNDER & MANAGING PARTNER, GREEN EMIRATES CONSULTANTS

they felt that no one was really focusing on green buildings. So there’s always been a separation between multinational and local property developers. Stuart Harris: From my personal point of view, mostly it comes down to the money. When I’ve approached companies about implementing sustainability systems the initial thing they ask is, ‘How much is it going to cost?’ and that is usually the challenge. If sustainability practices were part of the legislation then that would change things immensely. Ivar Krasinski: I don’t think legislation is the only thing. Just because the standards exist doesn’t mean that they are the right standards for the long-term. I believe that incorporating efficiency in the design is generally the best way. You can actually have better solutions than those which are

MOHAMMAD JARRAR COMPOST PLANT MANAGER, TADWEER

SARAH SAHA HSE MANAGER, MADINAT JUMEIRAH RESORT

hospitalitybusinessme.com

ROUNDTABLE

mandated with proper building design. Joe Ferrara: 70 years ago, when food waste disposers were created it wasn’t about saving the environment; at the time there were no environmental issues. We created disposers for two main reasons: Kitchen hygiene and user convenience. Since we invented disposers the environmental topic came along, so we have now done a lot of work and research on the subject. We’ve gathered a lot of empirical evidence on how we can

STUART HARRISON SUPPORT SERVICES DIRECTOR, EMRILL

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¿W RXU SURGXFW LQWR WKLV HQYLURQPHQWDO VWRU\ We can help divert food waste away from ODQG¿OO DQG KDUYHVW WKH HQHUJ\ HPEHGGHG LQ food waste. We don’t see ourselves as the solution to these environmental dilemmas but we are part of the solution in the management of food waste. S.M: Back in the day in New York, the use of disposers was not allowed because we have combined sewers in the city; the storm and waste drainage are the same. The sewer

MOHAMED KARAM BUSINESS DEVELOPMENT MANAGER, MIDDLE EAST AND AFRICA, INSINKERATOR

SIMON DICKASON REGIONAL MANAGER, TANGRAM GULF

system has also been a big part of New York’s history. It was designed during the 1860s and they didn’t want anything that could damage it. But in this part of the world, everything is relatively new. Like here in Dubai, if we experience a few days of rain and we drive along a newly developed FRPPXQLW\ ZHœOO GR MXVW ¿QH %XW LI \RX JR WR 'HLUD IRU LQVWDQFH WKH DUHD LV ÀRRGHG because the old parts of the city don’t have storm sewers like the new communities.

SANDRINE LE BIAVANT DIRECTOR OF CONSULTANCY, FARNEK

JOE FERARRA VICE PRESIDENT INTERNATIONAL, INSINKERATOR

31

ROUNDTABLE

In this region, and the UAE particularly what are the bottlenecks when it comes to implementing sustainability solutions? Mohammad Jarrar: A primary issue that we face is that developers tend to only take notice of the initial cost of a solution or innovation. They make decisions based on those figures alone. They think about how much they would have to spend without considering the possible long-term benefits and the savings. As one of the hospitality industry leaders, what makes Jumeirah Group want to incorporate proper waste management in your balance sheets from day one? Sara Saha: We are quite proud of being

a leader in sustainability practices which is globally recognised, especially now that we have acquired our Green Globe accreditation. For food waste management, we do have facilities like food composter machines. We also implement a system that automatically reduces the amount of food and organic waste. Apart from that we also have energy saving protocols that we administer in our building management systems. We believe sustainability is something that everyone should be involved in, so within the Group, we engage with all our stakeholders whether it be suppliers, colleagues or guests and we get them on board with the initiatives that we have. These include practices like recycling and portion-control. As an example, Jumeirah’s buffet food stations may appear to have large quantities of food, but in reality, we use smaller portions which are continually being replenished. For Tadweer, being a private entity, what kind of waste management solutions do you offer? M.J: Tadweer is a privately-owned company

and operations are not subsidised by the government. Food waste represents about 30% of Dubai’s waste. This means that out of the 1000 tonnes of waste we receive 300 tonnes is food waste. What we do is convert that waste into compost, which isn’t an easy

32

job as production costs are high, while the demand for the product is low. In the other Emirates waste management is subsidized by local municipalities and we hope to see the same in Dubai soon. We also endeavor to establish a waste management and sustainability standard that is suitable for the GCC region in the near future. What works in the US or in Europe does not necessarily work here for a number of reasons, including weather conditions.

How

is

the

line

of

communication

between various stakeholders involved in developing a property? Also how does the role of public and private sector liaisons impact mega infrastructure projects? J.F: In the US, we do a lot of work with the

municipality. We inform and train people in densely populated cities about the importance of proper food waste disposal. People may find that we can never fully reach sustainability but we can achieve something that is close to it, that is user-

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ROUNDTABLE

friendly and affordable. I.K: There is not enough communication between architects and others involved in the development of a project. That is the primary reason why we are keen on join discussions like this one. There is no direct correlation between architecture and sustainability. S.H: We almost never get involved at the design stage. So our approach usually involves education on a personal level. We look at sustainability from an individual’s point of view. Rather than teaching people how to get rid of the waste that’s being created, we educate them on how to reduce its creation in the first place. From an architectural point of view is it true that waste management technology is simply not an established part of your remit here when you’re putting design proposals together? I.K: Yes that’s right. As architects we often

work with a number of different consultants who advise us on various disciplines. I feel that as an architect it is ideal to have more

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ideas from both the operations and FM side so that we are able to understand the bigger picture of what’s available, and the different strategies that can be implemented so we can LQFRUSRUDWH WKDW ZLWKLQ RXU SODQV LQ WKH ¿UVW place. At the moment FM companies do not generally get involved in the design process. U.P: Unfortunately we haven’t been able to build that kind interactivity as of yet. In the past I have experienced various issues when it comes to sustainability in buildings. We came across several developments that have facilities that are not energy efficient and we would have to spend more money just to fix those problems. This is all because there is not ample communication between architects and FM companies or MEP contractors. This concern is being raised a lot during Middle East Facilities Management Association (MEFMA) meetings. However, it all depends on the developers’ decision. S.D: I have a number of projects in the healthcare industry, similar to hospitality, but there we’d have to deal with more

complex organic wastes. As architects we were expected to be involved in the project from day one so we could adapt our designs to complement the waste management systems. Sandrine Le Biavant: Hotels are now increasingly investing in health and safety, and risk management as well. They now perceive food waste as a health and safety issue. I think Dubai specifically is realising their responsibilities and are now recognising that they need to know more about the technologies that are available to reduce waste and negative environmental effects. When talking about the proper separation of waste, how do you deal with that and how do you go about educating your stakeholders on that aspect? S.S: In Jumeirah Group we incorporate

that within all our employees training. We educate our managers about the benefits of segregating waste and we also inform them about the whole process. For example,

33

ROUNDTABLE

with glass bottles, it is not just about putting them into separate bins. We show employees what actually happens to those glass bottles during the recycling process. M.J: The waste that we receive usually comes from different parts of Dubai. There are several communities who are disciplined and do segregate their waste properly, which makes our job simpler as we can go through their waste and easily seperate we can use from those what we cannot. That demonstrates the importance of awareness because it results in discipline. U.P: Here in the UAE waste management is very central. For example, in Sharjah, Ras Al Khaimah, Ajman and Abu Dhabi waste management companies have been nationalised and are joint ventures with the government. We can see that happening in Dubai. Something that the municipality is pushing for is the increase in the fees for waste disposal. At the moment you have to pay about $3 for a truck irrespective of how much waste goes to the landfill. S.L.B: I think we’re lacking transparency in the UAE. Whenever we speak to waste management companies about where their waste goes, we often don’t get straight answers. I think everybody would win with transparency and proper understanding of what is happening with the waste collected.

Do we feel that the public sector here is doing enough to support initiatives related to waste management? M.J: I think the participation of the public

sector is inevitable. The upcoming Dubai Expo 2020 is a great motivation for the Emirate to be more involved. We can see significant contributions from the government sectors in the coming years.

In the hospitality sector do you believe that effective and good food waste

What are the next steps that you see

management

hygiene

regarding waste management and in

issues or do you believe that it is the

particular food waste management in

right environmental practice?

this region?

S.S: I think hygiene and taking care of the

Mohamed Karam: Awareness and education is the key. Moving forward I think the best step to take is educate people on a personal level and get them interested on the importance of proper waste disposal. Then we can speak with the developers and get them on board. Then have a dialogue with government entities and come up with a solution that can be implemented in this market. We can also adapt the programmes that we have in other markets and make them suitable for this region. I.K: I still think that moving on there should be discussions on what could be done to

springs

from

environment comes hand in hand. Our big focus is to invest in our sustainability practices and hygiene is a big factor in that. S.L.B: The more sustainability is embedded in the hotel chain, the more there is passion that actually creates a culture. I can see more and more chefs and people in the F&B industry in hotels making sure that they review their menus and look at ways to minimise the amount of food wastage when cooking, and save water and energy when preparing food. But it means re-engineering the processes in the hospitality industry.

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involve architects in tackling the elements pertaining to sustainability in buildings. It would be ideal if we can be informed about the solutions and systems available to address these key issues. S.L.B: Case studies and the involvement of the media will also be a key instrument in spreading awareness about the importance of sustainability and proper waste management. At the moment there is lack of information in the market. Although water and energy saving solutions are not really part of the hospitality sector’s niche, it’s something that people should know about. S.D: Climate change is happening around us now. We are all improving but there’s nothing we can do to stop the change. So it is just a matter of educating and communicating with people on what they can do on a personal level. Sometimes small steps can make a difference.

HBME would like to thank Ritz Carlton, DIFC for its warm hospitality whilst hosting this discussion.

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THE SUITE ESCAPE ACCOUNTING FOR 35% OVERALL ANNUAL OCCUPANCY AT ROCCO FORTE’S THE CHARLES HOTEL IN MUNICH, GCC TRAVELLERS NOW REPRESENT ONE OF THE CITY’S TOP TOURISM SOURCE MARKETS. BY SOPHIE MCCARRICK

ince spearheading it’s opening in 2007, Frank Heller, the long-standing general manager of Rocco Forte’s The Charles Hotel in Munich, Germany has gained a strong reputation across the Middle East. During the first two years of operation, GCC travellers provided around 10% of the property’s overall annual occupancy, a figure that has risen a further 25% over the past year. With 160 luxury guestrooms, including

S

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24 suites and one presidential suite, The Charles Hotel prides itself on offering “unique, tailor-made” services, specifically catering to the needs of Arab visitors. Backed by experience in Dubai’s hospitality industry, the German-national explains: “From the beginning we had several employees educated on the Middle Eastern culture. However, in recent years, due to demand, the amount of staff who we have trained on Arabic ways, language and

service has grown to include over half of my 220 employees.” Despite receiving high numbers of visitors from other source markets including America (10%), Russia (10%) and Germany (28%), the GM notes that although incountry visitors used to be the hotel’s strongest market, nationals from the Middle East are now the most frequent guests. Of the GCC guests that account for 35% of the hotel’s yearly occupancy,

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around 50% are from Abu Dhabi and Dubai, followed by Saudi Arabia and Qatar. “A few years ago the summer months and Eid were the peak times for visitors from the GCC, however, now we have a constant high season [from this market] year-round.” The growing demand is being fuelled by medical tourism, Heller believes. “Aside from our personalised welcome, service standards and high-security policies, the main draw to Munich and our hotel with GCC nationals is the health services provided in this city.” With suites catering to a range of visitor needs, he reveals the most recent trend with Arabic visitors is for entire families to travel together for several months at a time while one family member undergoes medical treatment. “Although certain areas in the Middle East are now really progressing in this industry, like in Dubai, I see that locals are still more comfortable travelling away for medical reasons. It’s all about trust when it comes to health. Years back, hygiene and medical standards in the GCC were not high, and so many went abroad when they were ill. They trust the medical system in Munich,” Heller explains.

SAFE SUITES Offering facilities to prestigious guests, safety is the first priority to many who stay at the hotel, including those from the Middle East. “Our Presidential Suite Monforte provides the highest comfort and is the most secure suite in town. The 200sqm space is expandable to over 450sqm if needed, and is entirely bullet proof, protected by 40 cameras and is accessible via three separate underground routes. Guests, no matter who they are, just want to feel 100% secure, and that is how we make them feel,” Heller says. Reiterating his pledge, the presidential suite has an autonomous telecommunication installation as well as an SOS alarm system. Additionally, one can prevent electromagnetism and switch off the entire

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ROCCO FORTE HOTELS COMPRISES: t Hotel de Russie, Rome t Hotel Savoy, Florence t The Balmoral, Edinburgh t The Lowry Hotel, Manchester t Hotel Astoria, St Petersburg t Hotel Amigo, Brussels t Brown’s Hotel, London t Villa Kennedy, Frankfurt t Hotel de Rome, Berlin t The Charles Hotel, Munich t Verdura Golf & Spa Resort, Sicily

power supply of the suite from the bed with one manual movement. A security representative of the hotel provides guests with help and support and is also responsible for the control of the surveillance system of the hotel; the nearest police station is 900 metres away, and the closest hospital around 1 kilometre. “Many areas in the Middle East have been faced with concerning security issues lately, and I believe our increased business is also due to this. People want to travel to destinations where their safety is reassured,” the GM remarks. Germany, Munich in particular, has become much more accessible in recent times, too, he notes, adding: “Emirates Airlines, Qatar Airways and many more now fly multiple times per day into the city. With hourly arrivals from the Middle East, last year alone we saw around 200,000 arrive from the GCC, which YoY has grown 10%. It’s really amazing to see.”

TRADITIONS IN A NEW ERA In a cosmopolitan city such as Munich, Middle Eastern travellers are made to feel at ease, Heller says. Not only out and about, but within the property, where they are provided with services such as Arabic speaking staff, a welcome that includes a fresh towel and Quran, with access to

prayer rooms, ladies swimming and spa evenings, halal food, cleanliness facilities, cultural awareness and more. However, despite sticking to their traditions, the GM notes that he has seen GCC travellers becoming more open and intrigued by other cultures. “Times are changing and they are definitely opening up more to learning about the German heritage and holidays relating to our culture. For the first time this year I actually saw our Arab guests exploring Octoberfest,” he reveals. Guests of The Charles Hotel are looking for unique experiences Heller notes and

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The Charles Hotel in Munich, Germany.

action-adventure that begins the moment they receive a mobile phone in their room, assigning them a mission. Escorted by a ‘private agent’ suited in Bond-like attire, the guest is fully emerged in a day of the action star and given the option of a ‘normal’ or ‘challenging’ mission.

THE FAMILY TOUCH

“FOR $74,000 OUR GUESTS CAN PLAY THE ROLE OF JAMES BOND FOR 24 HOURS. COMPLETE WITH A FILM TEAM, PARTICIPANTS ARE TAKEN TO THE MOUNTAINS IN A HELICOPTER” in line with that, several ‘different’ events and activities have been initiated. For New Year’s Eve, the property hosted ‘The Night of the Diamond’, an evening of glitz and glamour that provided attendees with the opportunity of finding a real diamond in the bottom of their glass. “We wanted something that was exciting for everyone, and we know how much our GCC guests enjoy the luxury, VIP environment,” he comments.

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“Also, we recently had a ‘James Bond for the day’ experience available where, for $74,000 our guests can play the role of James Bond for 24 hours. Complete with a film team, participants are taken to the mountains in a helicopter tasked with a ‘secret mission’. They drive the flashiest of cars, go bungee jumping, secure their mission, the lot. It’s different and exclusive and it’s what our guests want,” adds Heller. This experience, takes guests on an

Established by Sir Rocco Forte in 1996, the hotel group has since been a familyrun business and now comprises 11 properties within Europe, which all have a unique style, designed by Sir Rocco’s sister, Olga Polizzi. Set to make its Middle Eastern debut next year, the brand has plans to open a property in Jeddah. “We do not currently have any further expansion plans for the region, however I think this will be a successful first time into this market because we already have such a strong client base there,” Heller says. “The Dubai market is so full with 5-star properties from all major international brands. If we were to move there in the future, we would be sure to make ourselves as unique as possible. Our service standards are some of the highest because this company is run the family way. We’re all very close, unlike many large brands.” The GM also notes that the group is exploring further expansion within Europe, in destinations such as Paris and Milan, however have yet to find a “suitable” property. “There’s nothing currently in the pipeline, but we’re always looking for the perfect properties that offer the heritage feel. Moving forward we’re also interested in entering the New York and Shanghai markets,” he explains. For Heller, the most important component of maintaining a strong brand in hospitality is working closely with guests and empowering ones’ employees to lead success. After all, “it doesn’t matter how unique, beautiful or different a hotel is, if the guest does not return, the service has not been satisfying enough,” he concludes.

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ONE TO WATCH

INTRODUCING: RIVERPARK SPANNING OVER 20,000SQM, RIVERPARK WILL BECOME THE GRAND ENTRANCE PLAZA INTERCONNECTING THREE NEW THEME PARKS AT DUBAI’S LATEST, UPCOMING MEGALEISURE AND ENTERTAINMENT DESTINATION.

ffering visitors a destination that integrates retail, casual dining, innovative transportation options plus indoor and outdoor entertainment, Riverpark is set to become the entrance hub of three new theme parks at Dubai’s latest mega-development in Jebel Ali. Dubai Parks and Resorts LLC, a Meraas Holding company, reveals the park will cover a total built up area of 20,000sqm over 120,000sqm, presenting a space that will take guests on a journey through a French village from the 1600s, the French Expo at the turn of the twentieth century, English Colonialism in 1930s India and 1950s America. A one kilometre canal will flow through the development lined with cafés, retail outlets, street entertainment and outdoor activities on either side. Water taxis and a tram route will help visitors navigate the park. In addition to Riverpark, Dubai Parks and Resorts will also comprise three theme parks: motiongateTM Dubai, Bollywood ParksTM Dubai, and LEGOLAND® Dubai. The development will also feature Lapita, a family themed hotel.

O

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OPERATIONS

MORE THAN A ONE MAN SHOW CURRENTLY BOASTING 30 HOTELS IN THE MIDDLE EAST, MÖVENPICK HOTELS & RESORTS CHIEF OPERATING OFFICER OF MIDDLE EAST AND ASIA, ANDREAS MATTMÜLLER, DIVULGES PLANS TO ADD 12 NEW PROPERTIES TO THE GROUP’S REGIONAL INVENTORY BY 2020. BY SOPHIE MCCARRICK

eing a successful leader is not a one man show, exclaims Andreas Mattmüller, chief operating officer, MEA, Mövenpick Hotels & Resorts, whilst considering the importance of understanding all aspects of the hospitality industry when in a senior position. Learning how to build relationships and carry out business with integrity across the world in a range of cultures is what really tests hoteliers, the COO says. “I love to see progress, see results, see people grow, see the brand develop. But this is not a one-man show, I trust the people I work with and we are trusted by the business partners who share our vision. I’m proud of that,” he concurs. In the coming five years, Mövenpick has big regional expansion plans, particularly in UAE and Saudi Arabia, however as the experienced Mattmüller states: “A plan is only as good as its implementation.” The Swiss-national began his journey with Mövenpick in 2001 – a time where just a handful of hotels under the brand existed in the region. Under his management, the group has grown to

B

40

manage 30 hotels in the Middle East. Now, as a seasoned hotelier backed by several decades of experience in prestigious hotels in 15 countries across five continents, Mattmüller prepares to lead Mövenpick into its next chapter of progression. Since your appointment with Mövenpick in 2001, what have you achieved in your role so far, and what do you hope to achieve moving forward?

Giving the brand a significant foothold in this region is probably the biggest achievement to date. When I started, our regional portfolio included our existing hotels in Egypt and four hotels in Jordan. At the moment we manage 30 hotels in the Middle East and several key projects are under development in various countries. In Asia we currently manage seven hotels and over 20 projects are under development in destinations that are new to our portfolio, including Sri Lanka, Bali and Kuala Lumpur. Brand awareness has also grown over the past few years and we are delighted that Mövenpick Hotels & Resorts ranked

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number two in brand awareness within the Middle East in the latest survey by BDRC, an independent market research consultancy. The continued growth of our brand and organic expansion of our portfolio in both regions, are naturally two things my team and I continue to pursue as primary goals. Of course this has to happen while making sure that our company values are embedded in all our new properties. Tell me about the latest news coming from Mövenpick in the region. I hear you’re due to open two hotels in Saudi Arabia next year, plus a seventh hotel in Dubai…

Indeed! We continue to grow in the Middle East and our strategy for 2020 is to have 42 hotels operating in the region. The next openings are Mövenpick Hotel Riyadh and our third hotel in Jeddah, Mövenpick Hotel City Star Jeddah, which will both open during the second quarter of 2015, taking our portfolio in Saudi Arabia to a total of 11 properties. Recently we signed a management agreement for Mövenpick Hotel Apartments Downtown Dubai, our seventh Dubai property, set to open in 2017. Apart from our varied portfolio in Saudi Arabia and the UAE, we have five well-known properties in Jordan as well as good reach across the GCC and Arabian Peninsula. Although our development plan continues to incorporate expansion in these countries, we are also very much focused on growing in the other destinations within this dynamic region. With such growth in this region, do you expect to hire many more employees in the coming five years? How many staff are currently in this region?

We presently have 7,800 employees in the region and in line with our 2020 strategy we expect to increase this number to 11,800. Recruitment and employee retention is something we take quite seriously and we’ve developed a service culture programme based on our brand promise of ‘Natural Enjoyment’. This programme recently received the ‘Innovation in

42

Work Culture’ award at the 2014 Daman Corporate Health Awards and was previously honoured at the Worldwide Hospitality Awards for ‘Best Initiative in People and Talent Management’. In addition to having our own e-learning platform where all employees can enhance their skills, we partner with eCornell to provide a selection of hospitality-specific courses. The Academy is a three-day learning event we hold several times a year and we also have a Graduate Development Programme that guides top-level recruits through an intensive two-year plan. Our Talent Development Centre focuses on identifying and developing our company’s future general managers.

impact, from the way guests are choosing and booking their accommodation, to the influence of social media, consumergenerated content and technological inroom features. Brand websites and OTAs are currently the main generators of bookings, a development which changes the traditional commercial environment. Retention of employees is also a growing industry challenge and we continuously endeavour to enhance our selection process to keep retention rates high. Being in this business also requires a proactive approach to address unexpected downturns in some regional countries due to the prevailing political environment, so we adapt to these situations and look for new markets.

Which country in the Middle East, do you

To ensure success, what are the main

believe, holds the most potential?

things

We believe there is great potential growth in both the UAE and Saudi Arabia, though many other countries in the region also offer some fantastic opportunities. So far, Dubai’s tourism sector remains strong with a solid growth of leisure guests to the emirate, despite an increase in room supply. Additional attractions, opening of new flight routes and infrastructure developments associated with Expo 2020 also make Dubai and the UAE destinations with huge potential. The hospitality industry in Saudi Arabia is expanding significantly and we have witnessed a growth in business, leisure and religious travellers. In addition, we believe that the government and private sectors have recognised that potential, proven by the mega-developments and infrastructure projects in the country. The Kingdom’s drive to promote domestic tourism, encouraging Saudis to holiday at home, is also achieving increasing success.

forward in their properties?

Moving

forward

with

the

brand’s

ambition, what challenges do you face in your role?

In this industry in general, things change fast and in order to turn opportunities into real wins we need to adapt quickly. The digital world has made a significant

your

GM’s

should

be

driving

Our GMs create environments where our values flourish, those being quality, reliability and care with a personal touch. Core behaviours we look for when appointing our GMs include trustworthiness, integrity, the ability to build and maintain partnerships, entrepreneurship and drive. A focus on revenue management, digital marketing and e-distribution is crucial, as well as an innovative approach to F&B experiences, which is one of our core competencies in the company. What’s your take on F&B concepts? Do standalone outlets work best, or should there be more focus on developing signature restaurants?

Ultimately the format of a successful outlet depends on the market and destination, but since our heritage is in F&B, we want to keep providing exciting and unique dining experiences. Independent restaurants work in some areas because they are fun, employees can express their personalities and they are not restricted by traditional processes. Our focus is to come up with innovative, personalised service in F&B concepts that focuses on the quality and freshness of products.

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AFRICAN OFFERINGS CEO OF AUJAN GROUP HOLDING, HOSPITALITY AND REAL ESTATE, SALIM BITAR, TELLS OF THE COMPANY’S AFRICAN EXPANSION, THE CONTINENT AS A KEY STRATEGIC DRIVER FOR GROWTH, AND LOGISTIC CHALLENGES FACED WHEN DEVELOPING A BRAND ACROSS THE REGION.

W

hat are Aujan Group’s plans for Africa following its signing with

Minor Group?

Aujan Group’s Hospitality and Real Estate’s business in Southern Africa has evolved from a main focus on leisure tourism, to a focus on the expansion of our business hospitality offering. Our joint ventures with the Minor Group allow us to partner with a global leader in hospitality, reflag our properties with globallyrecognised brands and distribution systems, and share in the growth opportunities the African continent presents. Overall our partnership covers three island resorts carrying the Anantara brand, and one city resort under the Avani brand. Furthermore, in partnership with Minor, 2015 will see the introduction of our landmark commercial and residential development project in Maputo, Mozambique’s capital city, which is due for completion in November this year. This is an expansion of the Radisson Blu hotel project which has been open since 2013. Africa’s picturesque natural resources and rich heritage, combined with its overall economic growth and growth potential in the oil and gas, tourism and hospitality

44

sectors are among the fastest growing and most lucrative on the continent. This potential is the key driver behind our expansion strategy. Do you have any contingency plans to accommodate the impact of any social or political situations in target countries that could affect your business plans?

Hospitality in Africa serves as a key economic driver contributing to job creation and supporting surrounding communities. The recent elections in Mozambique are a testament to the social and economic

progress contributing to the responsible political environment we see developing throughout the continent. We are optimistic that this will help further economic growth and stability, demonstrating a promising expectation of a prosperous future of the African hospitality sector. We’ve made significant contributions to conservation and community support in Africa. Aujan Group was the first private investor to accept the responsibility of developing economically viable safari activities in the greater Niassa National Reserve. The Lugenda Wildlife Reserve is an important part of the Niassa National Reserve, an area of 42,000 square kilometres and home to about two-thirds of Mozambique’s elephants. We formulated a unique management plan that includes effective anti-poaching initiatives and the development of programmes which benefit the local fishing communities. Our safari camp staffs almost 200 people active in anti-poaching, conservation and community activities within the reserve. While we have been active in conservation for over a decade, we have come to realise that protecting Niassa’s natural resources requires global attention.

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Since 2013, Aujan Group has partnered with the Wilderness Foundation, a SouthAfrica-based organisation founded by Dr. Ian Player, focused on protecting the wilderness. The foundation’s role will be to help organise, focus on and fundraise to raise awareness at a global, local and government level about the issues facing Mozambique’s natural treasures. Rani Investment has $300m of dedicated Middle

East

and

Africa

investments.

What is the $ value or % increase by which you are looking to increase this?

The Aujan Group takes the long-term view when it comes to investments. We have established and grown our core businesses across challenging geographies. In Africa, we will continue to grow our hospitality

and real estate business through expansion and acquisition. With the right partnerships, we aim to establish a model where the returns on our investment portfolio are maximised through world class processes and brands. Are

you

looking

to

strike

strategic

partnerships with any other groups?

Aujan Group strongly believes in developing strategic partnerships with global players within the business sectors we operate in, in order to grow and diversify our businesses. We have successfully developed, and continue to do so, a portfolio of assets in challenging geographies and environments. Given the right partner and opportunity, our group will continue to replicate that business model.

What are the primary challenges to hospitality investment in Africa currently?

Logistics, supply chain, quality, and the ability to run the construction process smoothly are the key challenges we face when building a new project in Africa. Recruiting, training, developing and retaining a skilled workforce is always a challenge in a developing economy. Finally, a key challenge is the difficulty in funding real estate developments and the prohibitive financing terms which take into consideration the inherent country, industry, and customer risks. Accordingly, investors should be prepared with a long term back up financing plan relying on equity funding and the ability to sustain the sometimes lengthy start-up stages of a new business venture.

EVENT

ENJOYABLE EVENINGS PRESENTING THE OPPORTUNITY TO MEET, NETWORK AND LEARN ABOUT THE LATEST HOUSEKEEPING TRENDS, THE UAE PROFESSIONAL HOUSEKEEPERS CAME TOGETHER LAST MONTH FOR AN EVENING OF EXCITEMENT. networking event dedicated to educating hospitality professionals on best practice in a fun, stimulating environment, saw the UAE Professional Housekeepers Group come together on December 15 at the Mövenpick Hotel, Jumeirah Lakes Towers. In a relaxed, informative setting the group caught up on the latest happenings and trends in the industry, whilst viewing product demonstrations and information from the event sponsors: Rikan, Al Diyafa, Cannon Hygiene, OCS, and 4 Corners.

A

46

Welcoming attendees, Tatjana Ahmed, chairwoman and founding member of the UAE Professional Housekeepers Group, said, “We’ve really seen a lot of progress in this group. It’s such a great platform for both housekeepers and suppliers for making new contacts and keeping up to date on the most recent industry trends.” Continuing, Pamini Hemaprabha, IS & Communication, UAE Professional Housekeepers Group, said: “Housekeeping is all about team work and events such as this really allow us to learn from each

other and further strengthen the feeling of being part of a team.” Highlighting a trend of today, she added: “These days, social media is such a huge part of life, however we need to not forget about how important being ‘social’ is, and continue to come out, meet with fellow colleagues and other local professionals.”

TEAM WORK Emphasising the importance of teamwork in the housekeeping department, guest speaker and ex-professional footballer, Allan

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Neilsen, invited the group to participate in a variety of activities; all of which promote the values of working together. “In all of my experience on the field, if there’s one thing I learnt, it’s that teamwork is vital to any sort of success,” he said. Broken into small groups, the six teams of housekeepers competed against each other in games that included building the tallest tower using raw spaghetti and candy, a numbers brainteaser game and more. The winners were awarded a trophy, which for now remains with them – until next time, when the title is up for grabs once more.

“IT’S SUCH A GREAT PLATFORM FOR BOTH HOUSEKEEPERS AND For more information about the upcoming UAE Professional Housekeepers Group gathering, please get in touch with us, or visit us on Facebook by searching ‘Hospitality Business Middle East’ for all the latest updates.

SUPPLIERS FOR MAKING NEW CONTACTS AND KEEPING UP TO DATE ON THE MOST RECENT INDUSTRY TRENDS”

THE COMMITTEE MEMBERS Tatjana Ahmed Grand Hyatt Dubai Chairwoman and founding member Jeanette Clift Al Bustan Rotana Hotel Secretary and founding member Laetitia Lasry The Palace Dubai Members’ secretary Nadine O’Connor Jumeirah Creekside Hotel Treasurer Pamini Hemaprabha Kempinski Hotel Mall of the Emirates IS & Communication

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14

The only event designed FOR the restaurant investment community The Global Restaurant Investment Forum (GRIF) will be THE business conference of the Dubai Food Festival 2015, making it the place to do all your deals in 2015. The event provides a unique platform which brings together key stakeholders in the restaurant investment community in one place to share best practice, innovation, knowledge and address current issues that face the sector. The GRIF programme has been built on four key pillars:

Creating successful concepts Generating growth through franchising Internationalizing your business Innovation and inspiration to improve your existing operations

GRIF

GLOBAL RESTAURANT INVESTMENT FORUM 16-18 February 2015 Conrad Dubai

Informative event where you can interact and understand the players in the industry, a unique forum for all that service the Restaurant industry. Tariq Sanad Managing Director, Lime&Tonic

KEYNOTE SPEAKERS 2014

Through an educational and actionable agenda you can learn how to mitigate the challenges faced when expanding internationally, learn from those with their feet already firmly planted in different markets, tap into their local knowledge, and learn how to roll-out your product without selling its soul.

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THE EVENT FOCUSES ON HIGH ENERGY FACE-TO-FACE NETWORKING OPPORTUNITIES, ALLOWING YOU TO FORGE NEW AND EXCITING GLOBAL PARTNERSHIPS IN ONE PLACE!

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THINKING OF INVESTING? FOR THOSE DEVELOPERS, OPERATORS AND HOTELIERS CONSIDERING AN INVESTMENT IN HOTEL ROOMS, HELEN HANGARI, SENIOR LEGAL CONSULTANT AT DLA PIPER, SPECIALISING IN HOSPITALITY PRACTICE IN THE MIDDLE EAST, WARNS THERE ARE KEY POINTS OF DELIBERATION TO OVERCOME BEFORE TAKING THE PLUNGE. 014 was a year in which the sale of hotel rooms become a popular offering from developers in Dubai keen to pursue alternative routes of raising finance. Against the backdrop of banks in the region continuing to take a rigorous approach to lending, developers have looked at creative ways to raise finance and with a return of investors’ appetites for off-plan purchases, the sale of hotel rooms appears to have been a popular strategy. The appeal for investors is that the returns on hotel room assets look good due to the high occupancy levels and high room rates achievable in Dubai. Added to this is that all maintenance and operational issues are dealt with by the hotel operator so there is a perception of such an asset being hassle-free. However, as always, the details of such schemes are what gives rise to interesting legal and commercial issues and whilst the market in Dubai may be leading the way in this new asset class, there are important issues that need to be considered by developers, operators and investors alike.

will also have to pay a share of the hotel’s operating expenses and the fine detail of what is included in revenue and operating expenses could significantly impact the overall yield, something that is often overlooked by investors.

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LEGAL STRUCTURE The model commonly adopted in such schemes is that the developer is the owner of a plot of land. The developer undertakes to develop a hotel, either as a standalone building or as part of a mixed-use development. The hotel will be operated as a whole but each individual hotel room is offered for sale to investors with a compulsory lease back to the developer which comes into effect immediately upon handover of the completed room. Through this structure, the developer gains exclusive occupation of the hotel

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KEY CONSIDERATIONS FOR HOTEL OPERATORS

HELEN HANGARI SENIOR LEGAL CONSULTANT AT DLA PIPER

rooms and has retained the ownership of all other areas of the hotel. Therefore, the developer is entitled to then hand over the operation of the hotel (as a whole) to a hotel operator or may choose to operate the hotel itself. Where a hotel operator is appointed, the term of the lease to the developer must cover the period of the operating term under the hotel management agreement and therefore is likely to be at least fifteen or twenty years from the opening date of the hotel. Because of the lease back to the developer, the investor in a hotel room is not entitled to occupy the room which it owns, but is likely to be offered some benefits by the developer such as free accommodation in the hotel for a limited number of nights a year, discounts on food and beverage outlets or discounts on spa treatments. The investor will get a title deed for its hotel room and depending on the specific terms of the lease to the developer, will receive a percentage share of the revenue generated by the hotel rooms. However, it

t Management reporting - Every operator’s nightmare is essentially having to deal directly with a vast number of hotel room owners. Although, from a legal perspective, there is no contract between the operator and the room owners, once the hotel is operating, in practical terms WKH ¿UVW SRLQW RI FRQWDFW LV OLNHO\ WR EH WKH operator as they are present at the hotel. t Operators should ensure that their management agreement obliges the owner to include a term in the leases for the hotel rooms making it clear that hotel room owners must raise any queries or comments to the developer and not approach the operator directly. t Cash calls - the hotel management agreement will set out the circumstances in which a developer must provide the hotel with funds required for the purposes of working capital or capital improvements. In the context of hotel rooms being owned by investors, the operator should ensure that such funds are provided irrespective of the cash flow vis-à-vis the developer and the investors. t Access and control - it is essential that the operator has full access to all areas of the hotel, including each hotel room. From a security and health and safety perspective, it is also essential that the operator has full control over all areas of the hotel.

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amounts to investors. Whilst the share of the revenue to be distributed to investors is likely to be a percentage of gross rooms’ revenue, a deduction will be made representing a share of operating expenses. Against a share of gross rooms revenue (rather than total revenue), one would expect that the operating expenses would be calculated in respect of the rooms only. However, this is not always the case. Developers will benefit from clearly setting out how the revenue and operating expenses will be calculated to avoid misunderstandings and disputes and investors need to carefully review the contracts that are offered in order to assess the attractiveness of their investment.

t Term of the management agreement in Dubai a particular regulatory issue arises as the jointly owned property law imposes certain constraints on the terms of the appointment of a property manager, which in this context would be the hotel operator. We understand that the Real Estate Regulatory Agency (RERA) is likely to take a pragmatic approach to this in terms of recognising that the structure of such projects is not particularly what the jointly owned property law was intended to apply to. However, this cannot be ruled out as a risk and operators should be mindful to ensure that if they are ever removed as ‘manager’ by the investors they will be entitled to remove their branding immediately from the hotel, therefore impacting the value of such an asset. t Sale of liquor - as the hotel rooms are under the ownership of individuals, it remains to

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be seen whether the authorities will take the view that the rooms are residences and therefore not permit the sale of liquor to such rooms (i.e. through room service) and whether any liquor will be permitted to be sold in the F&B outlets at such hotels. t Over-promising - from a reputational perspective, operators should have some approval rights over the marketing of the hotel rooms during the sales period to ensure that its brand standards are complied with but also to ensure that realistic claims regarding yields are made to potential investors.

KEY CONSIDERATIONS FOR DEVELOPERS AND INVESTORS t Revenue and operating expenses operators will provide developers with the ‘owner’s return’ in relation to the terms of the management agreement and thereafter it is the developers responsibility to distribute the correct

t Land Department Fees - the sale of the hotel room will attract registration fees at Dubai Land Department of 4% of the value. As a matter of custom this is paid for by the purchaser. However, since early 2014, the authorities clarified that registration of leases with a term of ten years or more require registration at the Dubai Land Department which attracts a further registration fee of 4% of the lease value (calculated as the total rent payable throughout the term of a lease). As the lease from the investor to the developer would ideally be for a term which includes the term of the management agreement, it is likely to be longer than ten years, which would trigger the additional Dubai Land Department Fees. This may not be commercially acceptable to an investor or a developer and therefore hotel operators may need to enter into additional agreements with the developer to ensure it is duly protected in the light of the hotel ownership structure. Overall therefore, whilst the sale of hotel rooms is an exciting development in the Dubai market and one that is likely to grow both in and out of Dubai, the commercial and legal issues it gives rise to does require careful and detailed consideration.

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INTERNET INTEREST AS THE DEMAND FOR WI-FI INCREASES IN THE HOSPITALITY INDUSTRY AND IT BECOMES THE ‘NORM’ FOR HOTELS TO OFFER FREE ACCESS, MANISH PUNJABI, CHANNEL MARKETING MANAGER MEA, ALCATEL-LUCENT ENTERPRISE LENDS HIS TIPS AND OBSERVATIONS ON HOW HOTELS CAN SAVE ON COSTS, MAXIMISE EXPOSURE AND CAPTURE GUEST DATA, THROUGH WI-FI. hile walking the streets of Venice and Florence on a recent holiday, I noticed shop windows of nearly every restaurant and café declaring free Wi-Fi and proudly displaying various review site commendations, including the likes of TripAdvisor, Yelp, and Le Routard. The hotels and B&B’s we chose were no different. Upon arrival, I noticed the TripAdvisor certificate of excellence and received the free Wi-Fi code, however it is a different matter when it comes to how well the Wi-Fi performed. There were two takeaways for me from this trip; the first is that TripAdvisor’s rating system has now become the defacto benchmark across Europe. Secondly, there is growing demand for free Wi-Fi across the hospitality sector. Travellers now holiday with laptops, tablets and smartphones, often more than one per person, all of which require connectivity. Big hotel chains can absorb costs of high-speed Wi-Fi along with the other operational expenses like the swimming pool and gym. However in places such as Africa, infrastructure challenges inflate the prices of internet access, and even 5-star chains charge for in-room Wi-Fi. So, what can medium and small hotels do to offset the potential lost revenue? It is no secret that hospitality is a big business in the Middle East. With Dubai’s Expo 2020, Qatar’s FIFA World cup 2022 and Saudi Arabia’s annual Mecca pilgrimage, hoteliers and chains in the Middle East are sitting on a potential gold mine for the next few years. However, my question is, how many of these are catering to the Wi-Fi hungry budget traveller?

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MANISH PUNJABI CHANNEL MARKETING MANAGER MEA, ALCATELLUCENT ENTERPRISE

“TODAY FREE WI-FI IN HOTELS CAN MAKE THE DIFFERENCE BETWEEN A ‘YAY OR NAY’” Five-star hotels require in-room technologies as a requirement or a differentiator but how much do they affect a three-star chain that prides itself for its cost-effective sleep value? How high would you rate free Wi-Fi versus the sole promise for a clean and safe place to lay your head for a few nights? A recent study by Hotels.com pointed out that guests overwhelmingly preferred free and fast Wi-Fi to anything else. Hotels that once considered internet access and Wi-Fi as a revenue stream have now adapted to the guest’s need of constant connectivity to save on hefty roaming charges. Guests are sufficiently familiar or comfortable with online bookings and nearly every arriving guest brings with him

a smartphone, which coupled with Bring Your Own Device (BYOD) policies can replace the room key, for starters, to save on key card costs. Alcatel-Lucent Enterprise launched the world’s first guest BYOD telephony solution called the ‘Smart Guest Application Suite’ solution earlier this year. The solution, installed on the guest’s smartphone or tablet, complements existing telephones in hotel rooms and can also be used in place of fixed line telephones becoming a value-added mobility service as part of a full telephony solution within the hotel. In addition, it can also support third-party ‘e-concierge’ applications and hotel billing services. Services like this only amplify the benefits of a Wi-Fi empowered hotel. Guests have a high tendency of immediately connecting to the Wi-Fi upon check in to update WhatsApp messages or emails missed while in transit. Wi-Fi login pages often terminate in standard web pages similar to the hotel’s internet presence. Instead of the standard website, hotels can create special landing pages that outline services, offers, local amenities and daily specials to create potential alternate revenue stream. Advertising based Wi-Fi is an option too, however, today free Wi-Fi in hotels can make the difference between a ‘yay or nay’ – according to Jacques Bulchand-Gidumal’s 2011 finding, free Wi-Fi improved online rating by 8%, and Honeywell’s 2014 in-flight survey found 22% US travellers willing to pay more for a flight with Wi-Fi. Another suggestion is social Wi-Fi

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– guests’ log-in with their social media credentials such as a Facebook, Twitter or email login. With an email ID captured, the hotel can request a comment or capitalise on a follow up relationship with promotions and programmes. Upon the first (or every) login, the guest’s social media newsfeed is automatically populated with hotel posts. According to Pew Research, an average,

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Facebook user has 338 friends and Gigaom indicated that 208 followers is the average for Twitter. The advertising value equivalent of each post can vary based on your choice of research agency. Either way, the benefit of the analytics built on this data can help small and medium hotels improve their marketing efforts. With over 70% social logins in the travel and hospitality

vertical happening using Facebook, I would not be surprised if Facebook, reeling under Wall Street pressure, tries to monetise the social Wi-Fi logins as well. With these numerous devices, WiFi has become the Nirvana or the ‘raison d’etre’ of our lives. Is it time to revisit Maslow’s hierarchy of needs and include ubiquitous Wi-Fi besides food, shelter and security?

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SLOWDOWN? WHAT SLOWDOWN? IN THE FIRST OF A NEW SERIES, EDITORS FROM OUR RESPECTED SISTER TITLES WADE IN ON THE ISSUES AFFECTING THEM. THIS MONTH, SUDESHNA GHOSH EXPLORES THE CHANGING PATTERNS OF HOTEL OCCUPANCY LEVELS IN DUBAI. Sudeshna Ghosh is Senior Editor for BBC Good Food Middle East, the region’s leading food magazine and website, providing culinary inspiration to its loyal fans since 2007 – with everything from everyday recipes and stylish home entertaining ideas, to expert tips, interviews with top chefs, culinary travel, the latest food news, product picks, restaurant reviews, nutrition advice and lots more.

t was about six months ago, during the summer of 2014, that I’d booked in for a stay-cation in a Dubai hotel. It ended up being one of several Dubai hotel stays for me that happened around the same time, thanks to work commitments. And the one singular message that resonated with me throughout was - just how busy the hotels ZHUH ,W ZDV WKH ÂżUVW WLPH LQ P\ HQWLUH OLIH that I had to queue up to enter a restaurant for a (buffet) breakfast at a luxe hotel on the Palm, the pool always seemed full of happy holidaymakers, and lobbies burst at the seams with people coming or going. And these are really high-end, luxury hotels I’m talking about (Although, honestly speaking, how many of any other kind of hotels are there in Dubai, but that is a whole other conversation?). These hotels looked busier than Times Square on New Year’s Eve! There used to be a time when Dubai, and indeed, the wider Middle East region seemed to go into a lazy hibernation phase between the months of June-July to September. Many residents escaped for long vacations, the pace of work and life slowed down considerably, and hotels that were otherwise bustling with tourists and business people in the ‘good weather’ season, turned into veritable ghost towns. That’s when the trend of ridiculously low rates for luxury hotels aimed at GCC residents who were braving the summer began, I think, to make up for the drastically reduced occupancy levels. But oh, how things have changed in the

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SUDESHNA GHOSH SENIOR EDITOR, BBC GOOD FOOD MIDDLE EAST last couple of years. Hordes of tourists, seemingly oblivious to the searing temperatures, continue to arrive on our shores throughout the summer months – the beach- sunshine-shopping-restaurants FRPELQDWLRQ VXIÂżFLHQW WR OXUH WKHP LQ although I’m not sure if the tourism brochures adequately communicate exactly how sunny the sunshine is! Hotel occupancy levels in August 2013 hovered around the 70% mark, with average room rates lowered to US$229 (down 29%). According to Rashid Aboobaker, senior consultant at TRI consulting, a hospitality consultancy company, “As Dubai attracts more and more international tourists in the coming years, the demand seasonality LV DOVR OLNHO\ WR UHĂ€HFW WKH WUDYHO WUHQGV LQ the global markets. The steady expansion of the tourism infrastructure – such as hotels,

airports, airline capacity – is likely to make it easier for tourists around the world to travel to Dubai at any time of the year in the future.� It’s happy days for the hotels, of course, who no longer have to deal with the extremity of the slow months. While there is no doubt that Dubai’s tourism sector has grown exponentially over the years – the number of hotel guests rose from 3.42 million in 2000 to 11.01 million in 2013 – it is in combating the traditional obstacles to tourist volumes (primarily, seasonality) that the main challenge lies. It’s a combination of clever marketing, competitive pricing (most hotels drop prices by up to 30 % in the summer period), and GLYHUVL¿HG WRXULVP RIIHULQJV FRPELQHG with a global socioeconomic shift in tourist demographics that are helping to turn around an industry-wide problem. Whether it’s Arab or European tourists looking for a beach break, the increasingly ubiquitous moneyed Chinese tourists who take advantage of reduced rates to maximise their mall time, or people from around the GCC for whom Dubai’s glitz and glam is alluring – they all see plenty of reason to visit Dubai in July. And why not? I think Dubai, the brand, should make it into business school textbooks as being one of the best case studies of smart marketing. Now the question is, can other cities in similar positions learn from this? Or are they happy to continue having sleepy summers?

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