Hospitality News Middle East - Aug/Sep 2017 (Issue 113) by Hospitality Services

EDITOR'S VIEW

Editor-in-chief Nouhad Dammous Managing director Joumana Dammous-Salamé

Lebanese entrepreneurs are not only driving growth in the traditional tourism industry, but also leading the way in the 21st century

Editor Annie Keropian-Dilsizian Publication manager Randa Dammous-Pharaon Community manager Lisa Jerejian Publication coordinator Rita Ghantous Sub-editor / writer Miriam Dunn Graphic designers Elias Tufunkji Ibrahim Kastoun Features consultant Rana Freifer Writers Jad Haidar, Maghie Ghali Sales executives Michel Ajjoub, Maha Hasbani, Josette Hikri, Elise Salem advertise@hospitalityservices.com.lb Subscription coordinators Houayda Haddad-Roumman Mirna Maroun subscribe@hospitalityservices.com.lb Circulation coordinator Rita Nohra News news@hospitalityservices.com.lb Production & printing Arab Printing Press Published by Hospitality Services sarl Lebanon Borghol Building, Dekwaneh P.O.Box 90 155 Jdeidet el Metn 1202 2020 Tel: +961 1 480081 Fax: +961 1 482876 info@hospitalityservices.com.lb hospitalitynewsmag.com Dubai Tel: +971 50 8426693 All the information disclosed in the magazine was provided by the parties concerned by each publication and checked to the highest possible extent by the editors. However, the magazine cannot ensure accuracy at all times of all information published and therefore could in no case be held responsible should any information reveal to be false or insufficient. We welcome views on any subject relevant to the hospitality industry, but request that letters be short and to the point. The editor reserves the right to select and edit letters. Hospitality News ME is distributed to trade professionals in the catering and lodging industry in the Middle East.

What is Lebanon’s largest export? Historically, besides food and beverages, it has been its people.

The Lebanese diaspora is estimated to total around 12 million. However, many go back to visit Lebanon, while quite a few also return permanently, bringing with them the knowledge and skillsets they’ve learned overseas. This knowledge-sharing can bring great benefits to the Lebanese economy, both in the immediate and in the future. Such skills will be in strong demand, not only among the diaspora, but also within new markets, including those outside the diaspora group and even outside of the Middle East. Domestically, they are expected to prove particularly effective in helping Lebanon grow its tourism industry. Optimistic by nature, Lebanon offers tourists and visitors the opportunity to share in a bright outlook, rich, lengthy history and natural beauty. Beyond the bustling city of Beirut, the country is home to charming beaches, mountains offering the health benefits of pure, fresh air, scenic surroundings and a large selection of valleys. Interestingly, Lebanon is the only country in the Arab world that has snow and wonderful beaches within reach of each other, meaning visitors can go skiing and do other winter sports activities, while also heading to the coast on the same day. Lebanon also contains a wealth of nature reserves - 14 in total - which are the basic pillars of the rural development policy, supporting the country’s natural heritage and providing important means of safeguarding the countryside against the threat of environmental deterioration through industrial activity. As for the nightlife, the Lebanese are renowned for their entertainment industry, with the best all-year-round restaurant/club scene in the Middle East, alongside special events and festivals. In essence, Beirut offers a rich history, fascinating present and exciting vision for the future, all of which bode well for Lebanon in terms of future growth and opportunities to maximize the tourism sector as a whole. Lebanese entrepreneurs are not only driving growth in the traditional tourism industry, but also leading the way in the 21st century, in an operating environment that caters to a technologically advanced world. This includes both young Lebanese who are eager to set up new businesses and those who left Lebanon and have returned to share the knowledge they learned abroad about setting up a venture. Many Lebanese expatriates are already following their dream of settling back in the villages where their grandfathers grew up. ‘Tourist tube’ (Michel Sfeir); ‘Bayt.com’ (Shadi Tabbara); ‘Alhawch’ (Faysal Saab); ‘Bread Basket Square’ (Soumaya Merhi) are just a few examples of such entrepreneurship. Here’s hoping that many more will follow in their footsteps. Nouhad Dammous Editor-in-Chief Docteur Honoris Causa

In this issue

Aug - Sep 2017

EDITOR’S VIEW

03 What is Lebanon’s largest export?

NEWS

8 INDUSTRY OVERVIEW 10 HOTELS 16 RESTAURANTS 20 CHEFS 22 SUPPLIERS

HORECA NETWORK

26 PREVIEW

What’s happening at Horeca Jordan?

EVENTS

From Lebanon to Moujins

SEEN & HEARD WHERE TO BE SEEN Dubai International Hospitality Week and HostMilano

MENA HOSPITALITY INVESTMENT REPORT 2017 39

Global hotels market overview by Philip Ward, JLL

What’s driving investment in the hotel market by Grant Salter, Deloitte Opportunity for mid-market by Hala Matar Choufany, HVS Hotel investment in the global economic climate by Robin Rossmann, STR Internal vs external hotel asset management by Mariano Faz, TFG Asset Management The Hospitality News hundred fifty top hotel projects Regional investments outlook by Lumen

Coming issue October - November 2017 • Special report Coffee & tea • Market update KSA & Cairo • Hotels Loyalty programs • Food Chocolate & burgers • Equipment Coffee & tea tools HospitalityNewsME

@Hospitality_Mag

BUSINESS INTERVIEW Exclusive: high stakes with CEO and GM of 32

Casino du Liban, Roland Khoury

STRATEGY 34 The new tourism model 36

MARKET UPDATE Investing in Turkey

HOTELS Limited services, tough challenges 56 LAUNDRY 58 Taking a load off RESORTS Coastal opportunities 60 62

EYE ON Shanghai

RESTAURANTS 64 Al Falamanki spreads Middle Eastern

hospitality Food and entertaiment with the bulldozer

F&B Water: returning to the source 68 MARKETING 74 Effective action plan for restaurants 76 78

ARCHITECTURE AND DESIGN Standout art Hotel bathrooms: the union of form & function

SERVICE 82 The icing on the cake

SOLUTIONS

HR 84 Optimize your workforce

MANAGEMENT

6 tips for maintaining vendor relationships

MARKETING

Are apps delivering for restaurant owners?

PRODUCT ZONE

On the market

NEW PRODUCTS

EQUIPMENT 92 Top of the table FOOD 98 More than ‘meats’ the eye CHOCOMANIA 102 Chocolate pop art

WE WERE THERE

104

Out and about with Hospitality News ME

HospitalityNewsME

NEWS

INDUSTRY OVERVIEW

MIDDLE EAST LEADS TOURISM PERFORMANCE International tourist arrivals worldwide grew by six percent year-on-year (y-o-y) in the first part of 2017 to reach 369 million, according to the latest UNWTO World Tourism Barometer, with the Middle East leading the way. Prospects for the second half of the year also remain bright. International arrivals reported by destinations around the world were positive overall, with only a few exceptions. Most of 2016’s strong performers maintained momentum, while destinations that struggled in previous years continued to rebound in the first part of 2017. “Destinations

that were affected by negative events during 2016 are showing clear signs of recovery in a very short period of time, and this is very welcoming news for all, but particularly for those whose livelihoods depend on tourism in these destinations,” said UNWTO secretary-general Taleb Rifai. This is reflected particularly in the better results of the Middle East (up 10 percent), Africa (up eight percent) and Europe (up six percent). Asia and the Pacific (up six percent) and the Americas (up four percent) continued to enjoy robust growth. unwto.org

IH&RA TO LAUNCH EMERAUDE HOTEL PROGRAM AND CHINA CONGRESS The president of the International Hotels and Restaurants Association (IH&RA), Ghassan Aidi, has signed an agreement with Han Ming, president of the China Hospitality Association (CHA), to hold its 53rd congress in Hangzhou, where G20 met for their summit in September 2016. The CHA, which is a hospitality industry leader in China, will launch the certification process for most of the association’s 100,000 hotels and apply the sustainable development criteria of the IH&RA’s exclusive label, ‘The Emeraude Hotel’. The process will take between one and two years. In line with the launch, the IH&RA will set up an office in Beijing. “We will certify most of our members before 2020,” said Aidi. He added that the major step CHA was taking towards sustainability in China would serve as a great example for other Asian countries. “We have signed contacts for The Emeraude Hotel program with Croatia and Bosnia, and we are trying with Lebanon too,” he said. China will also propose franchising or operation and management initiatives for thousands of hotels

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Construction firms from China and Morocco will build Africa’s tallest high-rise tower in Morocco’s capital Rabat. The 250-meter skyscraper will cost USD 375 million. The 45-story building will include offices, hotels and luxury apartments. Think Labs to install new hotel technology in 50,000 hotel rooms by 2018

Think Labs Limited, one of Hong Kong’s most successful startups, appointed a GCC management team to drive the ambitious rollout of its mobile travel solution ‘handy’ across the region. Handy is a smartphone provided as a complimentary amenity in partner hotel rooms, integrating with hotel services and offering travelers unlimited connectivity on the go, free of charge international calls and tailored travel guides. The device will be targeting select four- and five-star hotels in Dubai. handy.travel Atlantis, The Palm announces USD 100 million refurbishment project

Starting July 4 2017, the five-star destination resort will embark on a three-year refurbishment program, including the resort’s 1539 rooms and suites. The project will see 50 rooms and suites refurbished every six weeks, to ensure that guest experience will not be impacted, with completion benchmarked for 2019. atlantisthepalm.com Emaar Square Mall opens in Istanbul

Emaar Turkey, the country-subsidiary of Emaar Properties PJSC, has opened Emaar Square Mall. The retail and leisure destination is located in the heart of Emaar Square, a master-planned development. The mall has several bigbrand outlets from Turkey, along with other global names, and is expected to welcome 25 million visitors annually. emaar.com.tr New acquisition for Majid Al Futtaim

to hotel management companies. “This is a great opportunity for all hotels chains, whether medium sized or smaller ones, to come to China and start operating hotels in the country,” Aidi said. Another issue set for negotiation is the partnership between major Chinese restaurants and international investors, which aims to introduce the world to Chinese gourmet food. ih-ra.org

Majid Al Futtaim has acquired Retail Arabia, the franchise owner of 26 Geant stores across the UAE, Bahrain and Kuwait, as well as four Gulfmart supermarkets in Bahrain. All of the acquired stores, which include hypermarkets, supermarkets and convenience stores, will be rebranded under Carrefour. majidalfuttaim.com UAE’s Ministry of Health and Prevention encourages healthy meals

The UAE’s Ministry of Health and Prevention organized an induction workshop for food catering companies to shed light on the objectives and the nutritional standards of the newly launched ‘Health Meeting’ initiative. mohap.gov.ae Visit Lebanon campaign secures contracts for companies

The 53th Annual Congress of International Hotel & Restaurant Association When & Where: 13-15 October, The Dragon hotel, Hangzhou-China IH&RA | International Hotel & Restaurant Association To register go to: http://ih-ra.org/event-congress.php

HOSPITALITY NEWS ME | AUG-SEP 2017

According to a survey recently published, Visit Lebanon forum exhibitors secured around 2480 business meetings with hosted buyers, meaning that on average, each of the Lebanese companies established 40 contacts. The forum took place in May 2017 and was organized by the Ministry of Tourism and Global Network. destinationlebanon.gov.lb

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COLLIERS MIDDLE EAST HOTEL FORECAST FOR JUNE TO AUGUST Amman

Filippo Sona, Director (MENA), Colliers International

Beirut The Beirut hotel market has witnessed strong growth in the first half of the year, with the revenue per available room (RevPAR) as of year to date (YTD)-May 2017 trending 14 percent above YTD-May 2016. Occupancy is the key driver behind the RevPAR growth. The occupancy rate improved following an increase in leisure and corporate activity in the market. The summer-month occupancy was driven by leisure demand from Lebanese diaspora, followed by both leisure and corporate demand from Arab and GCC countries. The security outlook has also been upgraded, which is further enhancing demand. The trend is anticipated to continue for the rest of the year and the RevPAR for full-year 2017 is forecast to close 9 percent higher than in 2016.

The Amman hotel market witnessed a decline in both occupancy and average daily rate (ADR), adversely affecting the RevPAR performance. The RevPAR YTD-May 2017 is trending 14 percent below last year for the same period. The pressure on ADR and profitability will continue, due to rising payroll costs and taxes. The drop is due to limited leisure and meetings, incentives, conferences and exhibitions (MICE) demand, mainly caused by adverse security perception from the wider region. The trend is anticipated to continue, with no shortterm recovery in sight.

Riyadh The Riyadh market continues to suffer in both occupancy and ADR due to a drop in corporate and MICE activity caused by limited public and private spending, owing to the drop in oil prices. The RevPAR YTD-May 2017 is trending 18 percent below that of the same time last year. The trend is expected to continue and the 2017 full-year RevPAR is forecast to close 16 percent below 2016 performance. However, a mid to long-term improvement in performance is expected, once the cityâ&#x20AC;&#x2122;s leisure attractions, such as the Six Flags Theme Parks and mega mall developments, reach fruition. colliers.com

DUBAI HOLDING LAUNCHES USD 1.7 BILLION MARSA AL ARAB

IN BRIEF IHG and Bukhamseen Group sign exclusive agreement for Kuwait

The business conglomerate Bukhamseen Group Holding Company has been given the rights to build and operate InterContinental Hotels Group (IHG) properties in Kuwait after the two sides signed an exclusivity agreement. Under the deal, Bukhamseen Group, a Kuwaiti venture, has been granted country-wide exclusivity over a 10-year term for six IHG brands. Ihg.com Wyndham launches The Trademark HotelCollection

Trademark is designed for independent entrepreneurs who have built an iconic hotel and are looking to boost its distinctive legacy with unmatched support. The brand invites hoteliers who operate landmark, three and four-star hotels to maintain their individual spirit, while taking advantage of Wyndham's scale, distribution, services and loyalty program. At launch, the brandâ&#x20AC;&#x2122;s pipeline includes over 50 hotels and interested owners of both existing hotels and new construction opportunities in top urban markets around the world. wyndhamworldwide.com Selim El Zyr, cofounder of Rotana, builds home for the elderly in Batroun

Located in Jrebta, Batroun Caza, north Lebanon, the newly established home for the elderly, Beit Rafqa, has welcomed its first residents. Beit Rafqa, a not-for-profit initiative, was built and donated to the sisters of St. Joseph Monastery. The project was founded by Selim El Zyr, cofounder and vice president of the hotel chain Rotana, with a total investment of USD 4.5 million. Beit Rafqa features 44 single and double occupancy rooms. beitrafqa.org Lebanese businessman developing a boutique hotel in Ivory Coast

The comprehensive tourist destination aims at elevating the family tourism proposition in Dubai. The mega-project is spread across 372,000 square meters and comprises two islands on both sides of Burj Al Arab Jumeirah. One island will be dedicated to entertainment and family tourism, while the other comprises an

HOSPITALITY NEWS ME | AUG-SEP 2017

exclusive luxury resort. Dubai Holding will also develop Marine Park, a marine life edutainment center and Dubai Pearl Museum to showcase a historical collection of rare pearls from the region and worldwide. The project is set for completion by 2020. dubaiholding.com

Hotel du Boulevard is a four-star boutique hotel under development in Abidjan, Ivory Coast and owned by Lebanese businessman, Ouday Fakhry. The project is currently in the permit phase, with construction set to kick off in December and completion expected in 2019. The hotel will be built on a 1000 sq-meter plot of land, over five floors. Investment in the development is USD 2.5 million. domainepublicarchitects.com

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60 SECONDS WITH THE REGIONAL VICE PRESIDENT OF FOUR SEASONS HOTELS AND RESORTS refurbishment plans. “We are rejuvenating our 230 rooms without closing down the property. The timing is right to do it as the hotel has been operating now for seven years,” he said. The project, which is expected to kick off this September, will be finalized within 18 months.

The Gulf business is coming back, even if not at the same previous pace Sayess told HN that the hotel has witnessed healthy growth, with year-round occupancy hovering around 70 percent and exceeding 90 percent in some months. “We have been accommodating many leisure European visitors, mainly from Holland, Germany, Italy, the UK and France in the past two months, which echoes a positive trend,” he explained. The hotel has also been hosting corporate guests, mainly from Egypt and Syria. Sayess added, “The Gulf business is coming back, even if not at the same previous pace. However, this seems to be promising.”

HN speaks to Rami Sayess, regional VP and general manager of Four Seasons Hotel Beirut, to learn more about the chain's latest developments Four Seasons Hotel Beirut has been working on developing its F&B offering, increasing its operations from two to four outlets. The hotel is currently operating Arabesque, the seasonal restaurant on the third floor, serving Lebanese food with a Greek touch, The Grill on the second floor, The Roof, in addition to an extended lobby terrace. “We are becoming a true destination, helped especially by our expanded banqueting facilities,” Sayess said. The property is also fine-tuning its soft

The Four Seasons Hotel Beirut was one of only a few properties to stick to its regular price range during the difficult conditions that hotels in Lebanon faced. On the subject of catering to millennials, Sayess believes

that even with growing interest in reaching this important market, management chains should avoid compromising on quality. “There is a misconception about millennials and about what they seek,” he said. “It is not always the case that millennials only seek budget hotels. From our perspective, we want to cater to millennials by offering the finest service.” In a separate development, Four Seasons Hotels have been running an innovative program called the MIT (Managers in Training), where sees chain leaders travel to top hotel schools in Switzerland, mainly Glion, Lausanne and Les Roches, to source potential talent. Within an 18-month program, successfully-selected candidates will be eligible for assistant manager positions throughout Four Seasons properties. “Since I represent Europe, the Middle East and Africa (the EMEA), I am looking to meet fresh grads and talents who would be suitable for the 33 properties across our region,” he explained. When it comes to openings, the hotel chain is preparing for the grand opening of its Four Seasons Hotel Kuwait at Burj Alshaya, a 284room property with seven restaurants, slated for November. The chain will also be opening a new property in Tunisia this September. fourseasons.com

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PEOPLE ON THE MOVE Four Seasons Hotel Kuwait at Burj Alshaya announces executive team ahead of summer 2017 opening. From center and clockwise, Didier Jardin, Christel Artaud, George Safi, Mohamed Zakaria, Mohamed Karara, Mohamed Ismael and Ali El-Zein. Four Seasons veteran Didier Jardin will lead the team.

Key regional appointments for Mövenpick

The Carlson Rezidor Hotel Group has promoted Mark Willis to area senior vice president for the Middle East, Turkey and Africa. Willis has over 20 years of experience in the hospitality industry, including more than 15 with Carlson Rezidor.

Kempinski Hotel Soma Bay has appointed Lars Pursche as the new general manager of the hotel. His most recent post was general manager at Kempinski Hotel Huizhou in Southern China, Guangdong Province.

Stefan Thumiger is the new cluster GM for Wyndham Hotel Group’s Ramada Plaza Jumeirah Beach and Ramada Hotel & Suites Sharjah. Thumiger has notched up over 34 years of experience in the hospitality industry.

Mövenpick Hotels & Resorts is pursuing rapid expansion across the globe. It currently operates 83 hotels and resorts, with plans to increase its portfolio to 125 properties by 2020. To support this accelerated growth plan, the group has appointed Andrew Langdon (1) as chief development officer. The role is a new position created by the Swiss hospitality management company as part of its efforts to grow and solidify the brand’s position. Langdon takes on the challenge, having led the company in Asia over the past two years in the position of senior vice president Asia. The group is expanding its management team in the Middle East and Africa and Asia regions, with the appointments of: Marc Descrozaille (2) as vice president, operations, MEA; Gerard Hotelier (3) to vice president, operations, Asia; and Pasquale Baiguera (4) as the new GM of Mövenpick Hotel Bahrain. Baiguera joins from Mövenpick Hotel Beirut. With more than three decades in the hospitality industry, he brings to his new role a wealth of knowledge, with a focus on proactive leadership, strategic management, sales skills and revenue development.

Hilton appoints cluster properties’ directors in Dubai and Beirut 1

The board of directors of the Rezidor Hotel Group has appointed Federico González-Tejera (1) as president and CEO of Rezidor. González-Tejera moves into his new role from Carlson Hotels Group, where he held the position of Global CEO from February 2017. González-Tejera succeeds Wolfgang M. Neumann, who resigned from the role of president and CEO of Rezidor. Carlson Rezidor Hotel Group has also promoted Eric de Neef (2) to executive vice president, global chief branding and commercial officer. In his new role, Neef will lead the branding and commercial organization for the Carlson Rezidor Hotel Group globally.

HOSPITALITY NEWS ME | AUG-SEP 2017

The Hilton Dubai cluster has appointed Julien Besançon (1) as cluster director of operations for Hilton Dubai Jumeirah and Hilton Dubai The Walk. Besançon brings over 15 years of experience in the hospitality industry, including eight years with Hilton Group across the Middle East. He is returning to Hilton Dubai from Hilton Doha, where he was the director of operations and won the EMEA Hilton F&B team of the year award in 2015. Hilton has also named Malek Fakhro (2) as cluster director of business development for Hilton Beirut Habtoor Grand and Hilton Beirut Metropolitan Palace. In his new role, Fakhro will develop and lead the commercial strategy of the group in Lebanon. Previously, Fakhro served as complex director of sales at Marriott International for Aloft Riyadh and Dhahran.

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KAMAKIAN TAKES FULL OWNERSHIP OF FIG HOLDING

Aline Kamakian, co-founder of Fig Holding, the company that owns and runs Mayrig and Batchig, has bought out fellow co-founder Serge Maacaron to

become the 100 percent stakeholder of the company. “I purchased Serge’s 50 percent stake of Fig Holding for USD 1.8 million through a three-year extension of a subsidized bank loan,” Kamakian explained. Following the deal, Kamakian terminated the franchise agreement with Mayrig Dubai, due to the alcohol license issue, and is now looking to relocate. Mayrig is still welcoming customers at its Riyadh branch and Kamakian is now exploring the possibility of expanding Batchig in the city and also in Lebanon. “My immediate focus is on developing Fig Holding from a family business into a cooperation,” Kamakian said. She added that the firm is currently restructuring and finalizing its strategy, which is focused on the franchising and development of its concepts. “A new concept will be launched soon,” she said. figholding.com

BURGUNDY NAMED TOP CNN RESTAURANT CNN Travel has named Beirut's Burgundy restaurant among the world’s 20 underrated restaurants in the world. The list included Al Toke Pez, Peru (Lima), Enigma, Spain (Barcelona), Moregrill, Russia (Moscow), and Ristorante Giglio, Italy (Tuscany). CNN said that even with influential guides navigating foodies to elite restaurants around the planet, great eateries continue to fly beneath the radar. Food writers and a regional chair of the global academy that appoints panelists for the World's 50 Best Restaurants were asked to make the recommendations. Jade George, editorial director of Middle Eastern food culture magazine Carton, reported: "It bills itself as contemporary French, but chef Youssef Akiki of Burgundy challenges rigid dining habits by introducing Lebanese dishes done his way, and often experimenting with local produce. Although the restaurant's tasting menu changes

HOSPITALITY NEWS ME | AUG-SEP 2017

seasonally, I am fond of Akiki's bird dishes, his pickled vegetable dish from Jacqueline’s garden and the savory and sweet bites with which he takes you on a regional journey.” cnn.com burgundybeirut.com

EXPANSION PLANS FOR MARGHERITA

Margherita, the Neapolitan restaurant, is getting a boost in the form of investment led by Lebanese stakeholder, Gaby Bou Najm. "Margherita is a brand that is very dear to our hearts; we strongly believe in its international potential,” Bou Najm said. “We are investing time, resources and energy to ensure and maintain Margherita's continuous success.” While there are no major changes set to take place in the next year at least, the investors wish to expand and open new franchises of the Italian eatery. Giovanni Casa, former majority stakeholder will remain on the board of directors, helping and advising on the concept orientation, while Marc Naaman will assume the management, operations and franchise development of Margherita. “As a franchisor, we are currently operating in four different territories, including Lebanon, Kuwait, UAE and KSA. In addition to that, we are opening in Qatar before the end of the year and in Riyadh - KSA in the second quarter of 2018,” Bou Najm explained. “Our Lebanese operation will be increased with the opening of two to three restaurants within the next few years.” With this in mind, the investors hope to strengthen Margherita’s local operation and help its development regionally. pizzeriamargherita.com

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NEW OPENINGS

IN BRIEF HOOKED SEAFOOD RESTAURANT

AL FALAMANKI RAOUCHE, BEIRUT Facing Pigeon’s Rock in Lebanon, Al Falamanki Raouche is a replica of the original Al Falamanki in Sodeco, with a lighter feel and a breathtaking view. This wonderfully bucolic and traditional Lebanese café, has also extended its areas to include a quaint rooftop. Opened July 4, 2017 Owner Sea Village sal

L'ATELIER DU MIEL WORKSHOP & GARDEN CAFÉ, BEIRUT

Total investment USD 2.5 million Covers 700 Average price/person USD 26 Typical dishes Khalil’s Salad, Kale with Quinoa and Shanklish, Shrimp Fatteh, Lebanese Burger with Halloum, Khalil’s Saj Address Charles de Gaulle St., Raouche, Beirut alfalamanki.com

EM SHERIF, KUWAIT

HOSPITALITY NEWS ME | AUG-SEP 2017

Opened May 2017 Owner Ghia Holding Executive chef Kamil Bouloot Average price/person USD 10 Typical dishes Shawarma and Barbecue Address City Mall DoraFood court L1, Beirut ghiaholding.com

Opened July 2017 Owner RGC Hospitality sarl Covers 24 Average price/person USD 8 Typical dishes Classic Berlin Doner, classic Chicago Gyros and Donermite Fries Address Mar Mikhael, Beirut donerandgyros.com

KATSUYA BY STARCK, DUBAI

BEIRUT BY GRILL

DONER & GYROS

Opened June 29, 2017 Owner(s) Marc Antoine Bou Nassif, Ralph Bou Nassif and Rabih Traboulsi Total investment USD 500,000 Consultant chefs Pierre Abi Hayla and Hadi Saroufim Covers 60 Average price/person USD 30 Typical dishes Cold cuts and cheese platters, desserts - all natural ingredients Address Armenia St., Mar Mikhael, Beirut atelierdumiel.com

Opened May 13, 2017 Owner Diverse Dining Company Executive chef Gerard Ruvira Covers 240 Average price/person USD 165 for two (without alcohol) Typical dishes Sushi and Sashimi, Robata Grills Address Jumeirah Al Naseem Hotel, Jumeirah St., Dubai katsuyarestaurant.com

Opened April 30, 2017 Owner Eleanor Genato-de Leon Covers 170 Average price/person USD 30 Typical dishes King Crab Legs, Snapper Steak, American seafood boil Address Zayed 2nd Street, Al Markaziyah, Abu Dhabi hooked.ae

KHAROUF BEIRUT

Opened May 25, 2017 Owner(s) Emad Al Sultan and Abdulmohsen Al Babtain Covers 120 indoors/ 50 outdoors Average price/person USD 60-84 Typical dishes Authentic Lebanese cuisine Address Palms Hotel, Bidaa Area, Kuwait emsherif.com

Opened Mid-July 2017 Owner(s) Georges Khoueiry and Sharbel Akiki Covers 30 Average price/person USD 15 Typical dishes Hummus Mkhawraf, Pomegrenate Kharouf, Kharouf Mharhar, Kharouf Platter Address Pharaon Street, Mar Mikhael, Beirut kharoufbeirut.com

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MEET THE CHEF: RABAH OURRAD Chefs working today need to recognize that a plate is a blank canvas for creating something with a wow factor. Customers also want to be served fresh, local produce and to be surprised by texture and taste.

The Algerian hip-hop artist turned celebrity chef Rabah Ourrad is the creative mind behind the menu at new Beirut concept, Dirty Laundry. Here, he talks pushing boundaries, channeling passion and the power of a simple salad

On coming to Beirut and Dirty Laundry’s menu… I’d dreamt of coming to Beirut as I love the Middle Eastern culture and have a lot of Lebanese friends. I really loved the city, especially the mix of occident and orient. I wanted the style of cooking to be instinctive and focused on local ingredients, so spent time eating out, especially street food. The menu features local products, such as wild thyme, 'za’atar', 'kataife' and local avocado, but I also incorporated ideas from my North African heritage and travels. Dishes include Beef Cheeks, Prawn Ceviche and Spinach Risotto. On moving from hip-hop to cooking… As a teenager growing up in Algeria in the 1990s, rapping for me was a way of making a political statement, but when I moved to Paris, I felt it was time for a change. I wanted to do something with my hands, so cooking was, in many ways, a logical step. I love that it’s also a universal language.

On his mother’s cooking When I was training in Paris, I’d try to recreate the dishes that my mother and sisters made back home in Algeria. However, it felt like I’d achieved only about 10 percent of the taste, which was frustrating. It took me seven years to realize that you have to make dishes with love, not just ingredients. Of course, you need the skills, but you need to think that you’re feeding souls and not only stomachs. On dining out… I eat out a lot as I believe it’s important to know what other creative chefs are doing. However, I love simple plates too. Not much beats a fresh, ripe tomato, served with white onion, olive oil and sea salt. On the future… There’s another season of Master Chef Algeria planned for late September and other television work. I’m currently working in Palma de Mallorca on a large-scale project for the UK Michelinstarred chef Marc Fosh. I wanted to get out of the TV studio and back to the kitchen sink for a while. It’s a bit like sport - you have to keep training to stay sharp. dirty-laundry.me

The art of great cooking The german specialist in professional cooking technology

MKN Middle East & Africa Phone: +97 150 5 58 74 77 E-Mail: rac@mkn-middle-east.com

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HOSPITALITY NEWS ME | AUG-SEP 2017

NEWS

SUPPLIERS

5 QUESTIONS TO BOECKER® PUBLIC HEALTH CEO MICHEL BAYOUD As the leading public health service provider in the Middle East, Boecker has long been a pioneer in the pest control industry, both across the region and further afield. In July, the firm participated in the International Conference on Urban Pests (ICUP) in Birmingham, an important meeting of minds for tackling urban pest control. HN sits down with Michel Bayoud, to hear what the event signifies for Lebanon and the MENA region as a whole 1. What can you tell us about the ICUP? This is a highly important conference in the world of pest management and is very academic in that representatives from all the major research centers in our industry attend and present their findings, breakthroughs and innovations. The extremely high level of science and academia present at the conference is the reason Boecker chose to Diamond sponsor it. We were the first Middle Eastern company to do that. The conference brings together many professors from a variety of universities, ranging from Purdue in the US to others in Japan and Indonesia in the Far East, which have major pest control centers. 2. Where are we globally when it comes to pest control standards and where are we headed after this conference? In the last 10 years, there have been many changes across Europe and the US, since both have created new bio directives for pesticides and put new regulations in place. These are aimed at combating the effects that pesticides could have on the environment and have led to the retraction of several non-compliant products. We’re proud to say that in over 25 years, none of these eliminated products were made by Boecker and the selection of products and systems that we use have proved to be among those falling into category A that were retained and considered safe and environmentally friendly. This conference shifted the focus from the pesticide to the pest itself. For example, there were 13 sessions in this conference looking at the DNA composition of bed bugs. I strongly believe that the future of this industry lies in biological control, rather than chemical control. It will be more about monitoring population control and controlling the

HOSPITALITY NEWS ME | AUG-SEP 2017

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The extremely high level of science and academia present at ICUP is the reason Boecker chose to Diamond sponsor it; we were the first Middle Eastern company to do so

reproduction cycle of insects than killing them. This research would likely reach the market in maybe 9-12 years, however, so we’re not talking about immediate results. 3. On which panels did you participate and what insight was forthcoming? We focused on the panels that explored problems prevalent in the MENA region mainly food-related pests and pests related to dwellings. Bed bugs are a big issue, as are cockroaches and ant control. The other panel that we were involved with was urban pest management. Boecker works closely with municipalities. We collaborated with representatives from the municipality of Beirut, together with those from other Lebanese municipalities, and also some from the UAE, Dubai and Saudi Arabia. Obtaining information about the prospects for urban pest management and what the municipalities can do to provide protection is important. We have our own academy, a standalone developmental and training entity, which we hope to enrich from this conference. We also want to share our professional experience with municipalities across the Middle East. 4. What about Dubai? What are its needs, given that it’s a relatively new city? From a regulatory point of view, Dubai is the most advanced city in our region. Dubai municipality is doing wonderful work when it comes to public and environmental health. We work directly with the Dubai pest control section, which regulates and audits us. It even produces a chart of the top companies in Dubai twice a year and I’m proud to say that over the last five years, Boecker has placed in the top three out of 186.

As far back as 2002, we were involved in writing aspects of the food safety laws with Dubai municipality. We also exchange expertise and organize workshops for students and schools, raising awareness about pests, highlighting the importance of hygiene and discussing good pests vs bad pests. 5. What projects does Boecker have planned for Lebanon and what is your target completion date? We are rolling out something very important right now in Lebanon, which is our biosecurity line for disinfecting. Following the waste crisis in Lebanon and given the issues surrounding food safety, paying attention to the way we interact with the environment has taken on added importance. Today, Boecker is offering services and products to protect customers from germs; not those germs that can build up immunity, but others that are really harmful and can make people sick for anything up to two weeks. This product will sanitize an environment by targeting the areas that are hard to reach such as the air-conditioning ducts. It enables us to control the mold in a basement or behind closets, which really increases the levels of hygiene. We can do this across all industries, even including hotels accommodating sick guests. In the past, operators would have had to use ozone to sanitize the area, meaning the room would need to remain closed for 24 hours. Today, we can have the room ready in 20 minutes. Even more importantly, we now have the testing tools to prove our results. We’re looking at a three-to-fiveyear return on this project. boecker.com

NEWS

SUPPLIERS

NEW LOGISTICS HUB FOR NESTLÉ MIDDLE EAST Mohebi Logistics and Nestlé Middle East have transitioned Nestlé’s logistics operations to the new Mohebi Logistics Dubai South site, the latest word in high-tech logistics facilities in the Gulf region. The process, titled ‘Project Beacon’, involved identifying the right logistics partner for their new regional hub in Dubai, monitoring the 3PL’s construction of new warehouse facilities and transferring all products to the new Dubai South site. After selecting Mohebi Logistics, construction of the site took two years, with BCC (Building Completion Certificate) awarded in late 2016. This is now one of the most environmentally superior facilities in the region, with a warehouse containing 87,500 temperaturecontrolled pallet positions on a 50,000 sq-meter site. All Nestlé product transfer processes were undertaken over one month, from early January to February 2017. During that time, over 40,000 pallets were moved to the new location. mohebilogistics.com

GROHE takes full ownership of Grome joint venture

GROHE AG has acquired from Mesma Holdings Ltd the remaining 50 percent stake in the joint venture entity Grome Marketing (Cyprus) Limited ("Grome"). With this acquisition, GROHE takes full ownership and control of Grome. Grome was formed in 1983 by Juergen Lorenz as an exclusive agency for GROHE products, covering the Middle East, the East Mediterranean and North and West Africa, a region comprising close to 50 markets. grohe.com Two bottled water companies merge

RIM SPARKLING WATER MAKES A SPLASH Merched S. Baaklini, deputy general manager of Bev Holding, owning company of Rim Water and Rim Sparkling Water, explains why the Lebanese water distributor was recognized at the third International Fine Water Tasting Competition in China. What is the Fine Water Society? Why and how was RIM chosen to be a member? The Fine Water Society is a global entity that helps bring to light the unique values of fine waters, which originate from exceptional natural sources around the world. Its core principle is that fine water must be a natural, unprocessed product with terroir and unique characteristics that reflect the geology and circumstances of its source. Thanks to our all-time, ultra-protective, high-standard and careful sourcing of Rim Water from the Ain el Saifieh spring, a 100 million-year-old natural wonder, Rim Water was deemed perfectly suited to become a member of the Fine Water Society. Membership is by invitation or nomination only and Rim Water is, thus far, the first and only member from the Middle East. What was the basis for the award? Several factors come into play in mineral

HOSPITALITY NEWS ME | AUG-SEP 2017

Talaya Water, the Lebanese mineral water bottled at the highest altitude (1735 meters) in Lebanon, has merged with Orange Cascade. Following the deal, Orange products will follow suit and conform to the standards of Talaya Water’s ISO 22,000 certification. Customers will also be able to benefit from Talaya’s glass gallon innovation and new water dispenser. talayawater.com USD 30.5 million Glass Pack to kick off operations in Lebanon

water and sparkling mineral water tasting, such as the water’s minerality, orientation (pH level), virginality in its protected source, balance in level of carbonation, and so on. Water tasting also requires an experienced and delicate sensibility to accurately assess those attributes. As such, and given our focus on protecting the integrity of Rim Water, especially while developing Rim Sparkling, the jury panel at the 2017 summit deemed Rim Sparkling worthy of the silver award in taste. rimwater.com/sparkling

A NEW AWARD FOR CHÂTEAU KSARA Château Ksara’s Sunset 2016 has won a gold medal at the 14th Mondial du Rosé in Cannes, a renowned competition in which over 1326 rosé wines were submitted from 30 countries. “Sunset is one of the backbones in our extensive portfolio of labels, both at home and abroad, and a modern expression

IN BRIEF

of a winery that has been producing wines of a consistent quality for over 160 years,” said Dikran Ghazal, the new general manager of Château Ksara. First released in 1974 and created from Cabernet Franc and Syrah, Sunset is sold in over 34 countries. chateauksara.com

Glass Pack, a glass bottle manufacturing company, is expected to open next year in Taanayel, Lebanon. The factory, owned by Abdallah Rizk, will produce juice, olive oil, soft and alcoholic drinks bottles, in addition to various glass jars used for jams. The project is expected to be ready within three years. When completed, it will secure 114 job opportunities. investinlebanon.gov.lb Mike Kassabian wins Diageo World Class competition in Lebanon

The Diageo World Class competition jury named Mike Kassabian from Sapa as ‘Best Bartender in Lebanon’. Kassabian will now represent the country in the global finale, which takes place in Mexico in August. The competition, now in its sixth year, attracted the country’s best bartenders who showcased the craft of cocktail creation. All six finalists displayed their skills in front of a selective panel of judges: Jennifer Le Nechet, World Class 2016 global winner; Spike Merchant, World Class global brand ambassador; and Joe Barza, international master celebrity chef and culinary expert. diageo.com

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60 SECONDS WITH GUY MARKARIAN ON MG HOTEL SUPPLIES' NEW BRANCH IN DUBAI all packages required for hotels and restaurants, either at the pre-opening stage or already operating, from F&B, table top, chinaware, tableware, cutlery, hollowware, glassware, kitchenware, linen ware, coffee machines and housekeeping.

Why did you decide to open a second MG outlet in Dubai? Growth! We were very satisfied with our results in Lebanon, which were achieved despite the instability there. We succeeded in becoming one of the leading hotel supply companies in the country in just a few years. However, after reviewing many business proposals, we decided to expand geographically in Dubai, the major regional city and touristic hub. We want to continue growing our business by expanding volume and leveraging our knowhow and experience. The opportunity was perfectly timed and one not to be missed. Which brands do you exclusively retail? The best way to find out is to visit our booth at The Hotel Show in Dubai. We have a wide range of brands, covering

Is the demand different in the UAE and if so, how? The product demand is the same, but the way of doing business and customer relations are different. Customers in both the UAE and in Lebanon are sophisticated and want the latest trends and best technical qualities. It’s true that the demand in UAE is more diversified than in Beirut, due to the large variety of concepts. But what differs most are the volumes and the budgets which, as expected, are much higher and diverse in UAE, due to the larger size of the market. As for customer relations, owners are much more involved in the smallest details of the selection process and the sales in Lebanon, whereas in the UAE, the projects are managed via procurement companies and consultants. What added value can MG bring to a market like Dubai? We will, without a doubt, offer hotels and restaurants our basic three advantages that brought us success: quality products; quick service; and design novelties. However, as a newcomer in Dubai, we have to be better than the established competitors and offer a fresh, young and dynamic business, both in our products and our services. It is important also to mention that we have built up more than 60 years of manufacturing experience with our sister company UNICO, so this gives us the experience and technical knowhow to act more like consultants, advising clients what would be the best for them. mghotelsupplies.com

41 WINNERS OF THE ARAB STUDENT STARPACK COMPETITION Arab Student StarPack, the first regional packaging design competition in the Middle East open to university students in all Arab countries, has crowned 41 winners at an award ceremony at the headquarters of the Union of Arab Chambers. The event was organized by the Lebanese Packaging Centre (LibanPack) and the United Nations Industrial Development Organization (UNIDO). The competition’s main objective is to promote creativity and innovation in this field. The president of the Association

of Lebanese Industrialists, Fadi Gemayel, said that the award ceremony “shows the importance of the packaging industry and the many prospects it can offer to our region and our youth.” He called for intensified Arab industrial cooperation and intra-Arab trade, adding: “As the president of the Arab Union for Paper Industries, Printing and Packaging, I will spare no effort to achieve this goal.” arabstarpack.org AUG-SEP 2017 | HOSPITALITY NEWS ME

HORECA

REVIEW

WHAT’S HAPPENING AT HORECA JORDAN Held under the patronage of Jordan’s Ministry of Tourism and Antiquities, HORECA Jordan returns to Amman’s Zara Expo for the fourth consecutive year, from 10-12 October As a key regional meeting place for the hospitality and foodservice sectors, the exhibition will gather more than 150 exhibitors, providing over 10,000 trade visitors with a platform to network and source the latest products. In addition to its regular features and high-octane contests, including the Hospitality Salon Culinaire and the Al Ameed Coffee Barista Competition, there are plenty of new facets to this year's event.

NEW FOR 2017 Launching of L’Académie Nationale de Cuisine in Jordan President of the academy, Chef Lucien Veillet and Chef Charles Azar, head of the delegation in Lebanon, will be present at HORECA Jordan to oversee the official launch, where the first Jordanian members of the academy will be honored. The objectives of the academy are to promote, preserve, teach and ensure the dissemination of French cuisine through its regions in the pure tradition of culinary art and tableware, both in France and abroad. WorldChefs judging seminar With the cooperation of the Jordanian Chefs Association, a WorldChefs (WACS) judging seminar will be held on October 11 at HORECA Jordan. Taking place for the first time in Jordan to benefit chefs throughout the region, the seminar will be supplemented by a practical training session at the Hospitality Salon Culinaire on October 12. Chef Gert Klotzke, the chairperson of the Culinary Competition Committee at WACS, will deliver the seminar to 25 chefs from countries including Egypt, Lebanon, KSA, Syria, Palestine, UAE and Bahrain. Collaboration with “Top Chef” The gold medalists of HORECA Jordan’s Hospitality Salon Culinaire competitions will be eligible for fastrack auditions for season three of the highlyrated “Top Chef” program on the MBC network. Chef Maroun Chedid, a judge on the popular TV show, will be present during HORECA. Mocktail Competition The first ever Mocktail Competition debuts at this year’s exhibition, where Jordan’s most skilled bartenders will battle it out to create the best nonalcoholic cocktail. Mocktails will be judged on taste, appearance, aroma and decoration. Art of Service Competition sponsored by IVY Hygiene Solutions Friends of HORECA Jordan, Ivy Hygiene Solutions, will be sponsoring the first edition of the Art of Service Competition. The event will engage hotels and restaurants, with the support of the Royal Academy of Culinary Arts at Les Roches. Ivy Hygiene Solutions offers a unique global supply solution through a full and diverse range of all types of hygienic products that are tailored specifically to their clients’ needs.

horeca-jordan.com

HOSPITALITY NEWS ME | AUG-SEP 2017

La w

sseini

Media Services & Exhibitions

nce & re

EVENTS

SEEN & HEARD

FROM LEBANON TO MOUJINS June saw Chefs Joe Barza and Charles Azar represent Lebanon internationally at the 12th edition of the Moujins Gastronomy Festival, which took place in France. The festival has been a culinary icon since 2006, with chefs and food specialists from all corners of the globe coming together to share their knowledge and catch up on the latest industry techniques and ideas. Moujins boasts over 100 chefs in attendance and 120 demonstrations every year, with Barza being a regular and Azar attending for the first time, to bring the best of Lebanese cuisine to the international stage. “When we first began going, it was just to represent Lebanon and display our knowhow and then I started introducing the chefs and visitors to Lebanese ingredients and products. One time I took 'kishik', another, 'freekeh', 'sumac', rose water, 'tahini', 'dibis' and this year I took burghul,” Barza said. “Every year we take something new for the others to discover. When we made 'moughribieh', Chef Frédéric Anton from Pré Catelan went crazy over it.” This year, Barza gave demonstrations and workshops for school children and visitors on the uses of 'burghul', with the aim of boosting demand for Lebanese products by familiarizing the world with national

HOSPITALITY NEWS ME | AUG-SEP 2017

ingredients. “I used 'burghul' to make them the world-famous Lebanese salad, 'tabbouleh', and I also made potato 'kibbeh', with black olives and tomatoes,” he said. “For the main dinner, I made fish 'kibbeh nayyeh'.”

Every year we take something new for the others to discover Chef Charles Azar participated in the sweets and pastry section at the festival, demonstrating traditional Lebanese desserts, such as 'knefeh' and 'kataife'. “I wanted to give them something they hadn’t seen before,” Azar said. “I made a fusion dessert of an apple tartin with caramel, with 'mohalibieh' cream, flavored with rose water and crunchy 'ismailieh'.” Among their aims, Barza and Azar were keen to see how they could bring Moujins and Lebanon together, looking at

techniques and ideas that they could take home to improve culinary knowledge. “I’m always learning new things there,” Barza explained. “We’re going to bring techniques back with us focused on improving our jams and cheeses, and how to make our products better with a view to promoting them abroad.” Azar was impressed with the dedication he witnessed in teaching young people how to cook and introducing them to the culinary world from an early age; something he felt is currently lacking in Lebanon. “They were there peeling apples and making caramel, learning to cook with their own hands,” he explained. “We don’t have this in Lebanon and I believe it’s something we should do. It’s important to let children see cooking done this way and to inspire the next generation of chefs.” lesetoilesdemougins.com

HORECA 15 - 17 JANUARY 2018

KUWAIT horeca-kuwait.com

11:00am - 8:30pm

Kuwait International Fair - Hall No. 8

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Horeca-Kuwait

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EVENTS

WHERE TO BE SEEN

NEW FOR THE HOTEL SHOW DUBAI 2017

CALENDAR SEPTEMBER 18 – 20, Dubai Dubai International Hospitality Week The Hotel Show & Gulfhost Dubai World Trade Centre Dmg: Events Middle East & Asia & DWTC thehotelshow.com dwtc.com

For the first time this year, the annual exhibition, taking place from 18 to 20 September, will form a core part of a brand new industry mega-event ‘Dubai International Hospitality Week’, organized by dmg events and the Dubai World Trade Centre (DWTC). Combining dmg’s The Hotel Show with the launch of DWTC’s GulfHost, the Dubai Tourism-endorsed event is expected to attract more than 50,000 visitors to the DWTC when it opens in September. Alongside a range of educational seminars

and workshops, new features have been announced: The Middle East Housekeepers League of Champions; The Runway; The Great Taste Theatre (for Middle East Hospitality Awards 2017 sponsors); and the second edition of the Tec-Innovation Zone, set to entertain and offer valuable hospitality insight. The Runway, for example, in association with bespoke uniform designers A. Ronai LLC, will showcase trends in the latest uniform ranges for the likes of security, front of house, spa and pool personnel. thehotelshow.com

HOSTMILANO 2017 The countdown to the 40th edition of HostMilano has begun. Italy’s Ho.Re.Ca., food service, retail, mass-market and hotel trade event will take place at Fieramilano from Friday 20 to Tuesday 24 October. The Foodservice Equipment and Bread Pizza Pasta macro-sector is the most heavily represented, with 729 participants. Other macro-sectors include coffee, tea, vending machines, gelato, pastry, furniture and tableware. Excellent Italian Hospitality Services (EXIHS) will shine a spotlight on the age-old tradition of Italian hospitality, thanks to the return of the concept-space by architect Dante O.

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HOSPITALITY NEWS ME | AUG-SEP 2017

Benini, designed this year in partnership with Davide Rampello: a great cube that recounts the history of hospitality through the use of surfaces and material. Other highlights include the finals of the Cake Designers World Championship and the World Trophy of Pastry, Ice Cream and Chocolate, in collaboration with FIPGC (International Federation Pastry Ice Cream Chocolate). Also rounding out the key events is the Altoga (Lombard Association of Coffee Roasters and Importers and Food Wholesalers) with Fipe for Caffè e…, dedicated in its entirety to the coffee industry. host.fieramilano.it/en

29 – 01 Oct, Beirut BEIRUT RESTAURANTS FESTIVAL Trainstation SRCNP syndicatercnp.com

OCTOBER 10 – 12, Amman HORECA JORDAN Zara Expo Center Lawrence & Husseini Consult & Expo Jordan horeca-jordan.com 12 – 14, Rimini SIA GUEST Rimini Fiera, Expo Centre Rimini Fiera S.p.A. siaguest.it 19 – 21, Beirut WHISKY LIVE Le Yacht Club, Zaitunay Bay Hospitality Services whiskylivebeirut.com 13 – 15 Hangzhou, China The 53rd Congress of IH&RA The Dragon Hotel International Hotel & Restaurant Association ih-ra.com 28 – 01 Nov, Paris SALON DU CHOCOLAT Porte de Versailles Event International S.A. salonduchocolat.fr

18/07/17 13:20

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BUSINESS

INTERVIEW

EXCLUSIVE

HIGH STAKES As the new CEO and GM of Casino du Liban, the Middle East’s only casino, Roland Khoury believes in leaving nothing to chance. He did, however, give HN an under-the-table look at his grand plans and winning vision for the iconic venue

There’s no chance in life; chance is when preparation meets opportunity. I was very well prepared when opportunity knocked on my door

HOSPITALITY NEWS ME | AUG-SEP 2017

Tell us about your background... I graduated from Notre Dame University - Louaize (NDU) with a BA in hospitality and I have two MBAs – one in finance and one in marketing. I’ve worked for many restaurants and opened several projects with Synergy. Before Synergy, I was in Dubai and opened restaurants within the hotel industry. When I was a student, I used to be the F&B manager at Mtaileb Country Club and my main training was in Century Park Hotel Beirut, under chef Joe Barza, in the kitchen.

What are your sentiments about the casino on a personal level? How did you feel when you took up your new role? You really start living the casino experience; the numbers, the players…it’s all new to me. I receive a report from the casino every two hours, so it’s become routine for me to wake up every night at midnight, 2 am and 4 am to check the figures. I’m checking how many people are there and what the drop is, which tells me how they are spending their money. In casinos, we look for how many people are spending, not winning.

Is the casino currently making money? We have a big problem in Lebanon; the government currently takes 50 percent of our gross revenue as taxes. We are the only establishment in Lebanon licensed to operate a gaming facility or club. Our contract is for 30 years and, since it was awarded in 1996, it will end in 2026. The government took 30 percent over the first 10 years, then 40 percent in the second 10-year phase, before increasing the level to 50 percent in December 2016. However, we don’t really have a monopoly on gaming, since there are several small shops for poker and other such activities in the country. We are therefore requesting from the government to either close all of the shops, since they are illegal or, if this can’t be done, to let Casino du Liban pay the same taxes as these small shops

do. The shops pay LBP 1 million (USD 667) annually to the government per slot machine. We, on the other hand, have 600 slot machines. If we were to pay the same as the shops, the total would be around USD 400,200. Today, we pay around USD 40 million.

What is the Lebanese government doing to support you? We are in negotiations to extend the contract for another 30 years and to discuss the percentage issue, since casino strategies have changed around the world. Nowadays, they have to pay for tickets, hotel bills and send planes for big players,

The first stage - the new entrance, banquet hall, theatre and enclosed bridge - can be done in two years. The second stage would be the hotel and the yacht docking while funding marketing tools, etc. We cannot do this, when we’re paying 50 percent in taxes. Casinos in Cyprus pay 20 percent to their government, for example, so we need to reevaluate the percentage we are paying and close all the unlicensed shops. Extending the contract is key to finding investors for the casino. Hopefully, the main shareholders will invest and there are also grants available from the Lebanese Central Bank.

What were your immediate points of focus when you took office? First, we needed to control expenses; that area was a disaster. Also, we now have 24hour electricity; before, we were spending USD 1.5 million on generators. I contacted the Minister of Electricity to discuss addressing the issue with him, since Casino du Liban is paying its bills, and now we are paying out less than USD 1 million a year for generators. We are also doing staff training with Caesars Palace in Las Vegas, our consultant. Another development is that we are now on social media and

rebranding our name. Changes are also under way, such as the introduction of new games, and slot machine modernization. Our next main project is to invest in a new gaming room. We’re also thinking of putting in place a new dress code for our guests and working on introducing online gaming, with a service provider. We are also investing in our theater and other entertainment facilities including new restaurants and dining outlets. We have a lovely terrace that isn’t being used, so we want to bring in a big name in lounge bars. The idea is to make our additions and have new rooms in place in the coming year.

How are you reviving the casino? We are studying our customers and marketing the casino across the country, with LED screens to help make it the casino of 2040. We will also be looking at local markets and VIPs from the MENA region. We will work on changing people's perceptions about the casino to a place where you can bring your wife, have dinner, watch a performance and also play. We want people to play safe; loan sharks are no longer allowed to enter the casino. The next step, we hope, is to create a hotel, which will form part of the casino. We’ve begun looking at plans, with tunnels and bridges linking the casino and hotel. The design would include about 50 private 'chalets' and could also feature a cable cart and yacht docking. We want something unusual and unique. The first stage - the new entrance, banquet hall, theater and enclosed bridge - can be completed in two years. The second stage would be the hotel and the yacht docking, which we anticipate would be completed by 2020.

What’s the best business advice someone has given you? There’s no chance in life; chance is when preparation meets opportunity. I was very well prepared when opportunity knocked on my door.

AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

STRATEGY

THE NEW TOURISM MODEL management and mediation. There are also new, disruptive business models as well, stuck in the midst of trend changes and social movements, boosting sales and exchanges, encouraging the act of sharing among peers (‘Peer2Peer’).

New game, new rules

Information and communication technologies (ICTs) have shaken up not only the way we plan and book our trips, but the way we enjoy and share them. Antonio López de Avila Munoz, director, corporate relations, Tech&Lifestyle for IE Business School in Spain, gives us a rundown on how the industry should adapt This past decade, we have witnessed the birth of a new digital tourist: more self-sufficient, very demanding, multichanneled; someone who expects a personalized customer service and feels the need to be connected on a full-time basis. Destination managers and companies must evolve in order to offer an entire range of services for the entire journey – before, during and after – to this new digital tourist. Marketing, promotion, services provision…a comprehensive makeover is needed, as opposed to slight changes or repeats of old models. We are witnessing the creation of a new tourism model for the 21st century, the Smart Tourist Destinations, where the ultimate goal is to achieve a long-term economic, sociocultural and environmental sustainability for tourism. New business models are emerging, exploring all that this new technological environment has to offer. There is a completely new scheme of innovations, starting with a wider offer in terms of purchase processes, sales, internal management, communications, availability

HOSPITALITY NEWS ME | AUG-SEP 2017

Innovation and technology have irrevocably rewritten the rules; playing the role of game changer, and tourists now hold the cards; destination search and selection, products and services screening, hypersegmentation, self-planning of trips, posting and assessing the travel experience. Therefore, the offer must be adjusted to a more demanding customer, who asks for truthful and trustworthy information, the best price-quality ratio, genuine experience, and destinations providing a distinguishing offer. This trend has an impact, not only on the average tourist, but also on the premium sector, as shown in the results of the latest IE Premium Travel Barometer, recently published by the IE Premium and Prestige Business Observatory. Smart Tourist Destinations are based on innovation, technology, accessibility and sustainability. Their development began in 2012, in Spain, driven forward by the efforts of the public company, State Society for the Management of Innovation and Tourism Technologies (SEGITTUR). Its achievements have transformed Spain into the world’s leader in terms of progressive implementation. Spain was also the first country to publish a certification standard in ‘Management System of Smart Tourist Destinations’ (UNE178501). However, this new tourism model goes much further; it’s a door that has just been opened on to thousands of new business opportunities all around the world.

coming! A new era of knowledge, analysis and lifelong learning. Tourism Intelligence will become a key part of the new process from the very moment we start analyzing data. Acquiring greater knowledge of the tourist’s profile and mobile technologies (Go mobile!), will give us the opportunity to undertake totally new, disruptive digital promotions and marketing strategies. These can be related to our customers’ and potential customers’ emotions and needs in a simple, straightforward way. Artificial Intelligence technologies, such as machine learning, Chatbots, smart data, deep learning and natural language processing, which are available now to all kinds of companies, allow us to analyze our customers’ profiles at almost lightning speed. Moreover, we can obtain a deep understanding of what, when and how our product or service is wanted, enabling us to provide them in the most efficient way possible. We must train our teams so they are capable of managing and leading the digital transformation that is essential for both our companies and destinations. Training is essential if we are to survive in a scenario that includes digital tourists requiring volumes of real-time information and, simultaneously, we are given much more information about them than we could have ever imagined. We are part of a sector that comprises travelers and hosts. Let’s leave all that routine, automatic work to machines and let’s encourage our ‘human teams’ to add value where a human touch is needed. A gentle look and a smile… those little details that can truly make a difference!

A new era is coming

ABOUT ANTONIO LÓPEZ DE ÁVILA

New technological developments linked to the Internet of Things (IoT), to Big Data/ Open Data, to Artificial Intelligence and to Virtual Reality, are forging a path to new processes and to new ways of managing things, as well as new strategies to win and ensure customers loyalty in a way we could have never imagined. A warning to marketing teams, sales and loyalty enhancing programs - there is a new era

Lopez de Ávila has served at the IE Business School for over a decade and, before joining the government sector, acted as the school’s director of tourism unit and academic director of the program in tourism management, representing the school at the World Tourism Organization (UNWTO). ie.edu

BUSINESS

MARKET UPDATE

TURKISH DELIGHT Turkey’s incoming tourist figures have fallen sharply since August 2015, with the decline exacerbated by the travel ban on Russian tourists – the country’s secondbiggest source of visitors - implemented by Moscow. However, there are signs of light at the end of the tunnel according to Mehmet Önkal CHA, ISHC, managing partner of BDO Hospitality Consulting Rewind to the mid-1980s, and Turkey’s tourism industry was undeveloped, with visitor numbers totaling less than three million. However, driven forward solely by the vision and initiative of Prime Minister Turgut Özal, a new era in tourism dawned. Special ‘tourism development’ laws were enacted for the development of seaside resorts, which provided investors with useful advantages. Many monetary and non-monetary incentives were applied to tourism investments in Turkey in the 1980s,

HOSPITALITY NEWS ME | AUG-SEP 2017

which helped to boost the number of hotel beds almost 1000-fold to over 1.3 million. The number of arrivals also rocketed, surpassing 37 million in 2015, marking an increase of more than 1200 percent in less than 40 years. Turkey is well situated geographically for all of the prime tourist-generating countries of Europe and the Middle East. The most convenient means of travel for visitors is by air. International scheduled services are mainly provided by the national carrier, Turkish Airlines, alongside other international airlines. Turkish Airlines flies to more countries and destinations than any other airline in the world. Turkey offers a vast array of experiences, from beach holidays along its 7200 kilometers of coastline to winter sports in the mountains and countless historic sites to explore. Visitors can immerse themselves in its rich history, discovering more about the successive peoples that have occupied Anatolia over the last 10,000 years (Hittites, Lycians, Lydians, Lonians, Phoenicians, Trojans, Persians, Hellens, Romans, Byzantines, Seljuks and Ottomans) and catch a glimpse of their remains. The country boasts more than 60,000 sites of historic interest, as well as the natural wonders of Pamukkale and Cappadocia. Turkey also has huge potential for niche tourism, including the cultural, congress and convention, shopping, healthcare and religious segments.

The bad news Turkey’s tourism sector is currently grappling with huge losses, with bomb attacks, unrest in the southeast of the country and a violent coup attempt, followed by mass arrests during a state of emergency, keeping visitors away. Russia was one of Turkey’s most valuable markets for incoming tourism. However, in the first four months of 2016, the number of Russian tourists entering Turkey dropped by 40 percent, driven down primarily by political differences between Ankara and Moscow. Bilateral tension was triggered by the shooting down of a Russian bomber plane by Turkey’s air force in north Syria. Millions of Russians who traditionally populate Turkey’s beaches stayed away. Russian visitors to Antalya, Turkey’s tourism capital, decreased by 95 percent. In 2016, the number of visitors to Turkey plummeted to 25 million. Bomb attacks in Istanbul, Ankara and other cities have also severely affected the country’s broader tourism industry. In June 2016, ISIS militants killed 45 people and injured many more in an attack on Istanbul’s Atatürk International Airport, the main point of entry to Turkey. In Istanbul, the number of foreign visitors dropped over 25 percent. The situation deteriorated further on July 15, when Turkey was hit by a failed coup, in which 246 people were killed. As a consequence, the tourism

industry in Turkey experienced a significant decline in visitor numbers, with bookings for the summer holiday season down by 50 percent.

TRADITIONAL TURKISH DELIGHTS GET A MAKEOVER

The bright side Despite the current challenges stemming from the recent drop in Russian tourist numbers and the violence still ensuing in several parts of the region, Turkey’s tourism industry is battling hard to maintain growth. Turkey achieved a yearon-year increase in tourism revenue of 1.3 percent in 2016, inching up to about USD 4.87 billion in the first quarter of 2017. Tourist arrivals were up by 2.37 percent, with foreign visitors reaching 1.9 million. Turkey is also hoping to continue repairing the damage by attracting tourists from other markets. The country is proving especially popular among visitors from China and the Arab region, with tourists from Tunisia, Algeria, Jordan, Bahrain and Lebanon arriving in increasing volumes. The number of visitors from Macedonia, Bulgaria and, especially, Georgia and Ukraine, is also on the rise. Turkey and Russia have agreed to improve their relations, which is being seen by many as a prelude to the return of Russian tourists to Turkey. Tourism officials and professionals are claiming a revival in reservations from Russia. While erasing the effects of such an extensive crisis will take time, Turkey has, again and again, proved its resilience and ability to successfully emerge from challenging situations. The strength of the Turkish reaction was evidence after the Atatürk airport bombing. Whilst closed with flights blocked in the immediate aftermath, the airport resumed operations just a few hours later.

Marc Pauquet Head of the Chocolate Academy™ Center Istanbul and Technical Adviser EEMEA

Barry Callebaut Known for centuries as a strategic stop along the Silk Road, Istanbul is celebrated for its traditional street food and sweets, and as a melting pot of Middle Eastern, Mediterranean, Balkan and Central Asian flavors. However, in Istanbul, as elsewhere in the world, globalization and urbanization have led to people losing touch with their food’s origins. A growing middle class, rising household incomes and a young Turkish population – over 50 percent are under 30 years of age – are combining to bring about changes in the culinary tastes of young, urban Turks. Driven by urbanization, the traditional food markets called ‘bakkal’ are being substituted by modern grocery retailers, such as ‘Eataly’. Globally-known brands and products are also being given more and more space on the shelves of supermarkets.

So what’s next for Turkey? As long as the country’s economy continues to grow, the food industry will strengthen in its role as a place for local and international companies to do business. Let’s take the example of chocolate as a trend and growth area. Consumers have been able to find industriallyproduced chocolate made by multinational and local brands and high-end confectionery items in supermarkets or pastry shops famous for their chocolates since the early days of the Turkish republic. However, today, small patisseries and chocolatiers are also popping up, selling handmade bonbons, such as truffles, pralines or the chocolate Napolitains called ‘Madlen’. These outlets are producing high-cocoa content bars with health benefits, which means that the quality of the chocolate itself is being given more importance. In addition, classical Turkish recipes are being revamped and created with chocolate as an ingredient. My team and I have decided to respond to this demand and create Turkish classical recipes revisited at Chocolate Academy™ center. These include a favorite across the generations - ‘sutlac’ - a milk rice pudding with white Callebaut chocolate; a ‘baklava’, with an orange-pistachio and dark-chocolate filling; and the classical, iconic breakfast ‘acma’ and ‘simit’, with dark Callebaut chocolate. These are only a few examples of the classical desserts we have created using chocolate, but giving it a modern twist. chocolate-academy.com

Securing a recovery in Turkey’s tourism industry will take a period of peace, something that has been missing in the country for around a year. Perhaps unsurprisingly, in times of relative calm, tourists have been shown to return.

ABOUT MEHMET ÖNKAL With more than 40 years of experience in the tourism industry, Önkal is an expert in investment consultancy, asset management, market research and feasibility studies, appraisals and valuations, hotel brands, management/ franchise/lease/technical services agreements and hotel management. He founded BDO Hospitality Consulting in April 1997, together with the BDO Turkey team. bdo.com.tr

AUG-SEP 2017 | HOSPITALITY NEWS ME

SPECIAL REPORT

MENA HOSPITALITY INVESTMENT REPORT 2017 P. 39

GLOBAL HOTELS MARKET OVERVIEW BY PHILIP WARD, JLL

P. 40

WHAT’S DRIVING INVESTMENT IN THE HOTEL MARKET BY GRANT SALTER, DELOITTE

P. 41

OPPORTUNITY FOR MIDMARKET BY HALA MATAR CHOUFANY, HVS

Investment leaders

P. 44

HOTEL INVESTMENT IN THE GLOBAL ECONOMIC CLIMATE BY ROBIN ROSSMANN, STR

P. 46

INTERNAL VS EXTERNAL HOTEL ASSET MANAGEMENT BY MARIANO FAZ, TFG ASSET MANAGEMENT

P. 48

THE HOSPITALITY NEWS HUNDRED FIFTY TOP HOTEL PROJECTS

RANKING IN TERMS OF INVESTMENT 1 2 3 4 5 6 7 8 9 10

Source: WTTC

The MENA region’s Travel and Tourism investment in 2016 surpassed USD 58 billion, according to a compilation of data released by the World Travel and Tourism Council (WTTC), with forecasts indicating that it will top USD 100 billion over the next 10 years. International tourist arrivals in the region are projected to total over 116 million by 2027, generating expenditure of over USD 150 billion. With the changing economic dynamics, the governments in the region are becoming more involved with tourism and hospitality. Driven by national plans and strategies to boost their local appeal, KSA will be, without a doubt, the tourism investment leader in the coming decade, driving projected investments, with over USD 50 billion set to be injected into the sector. The Kingdom, which launched its Vision 2030 last year, plans to lure visitors with improved visa issuance procedures and by highlighting its historical and heritage sites. Another regional leader is the UAE, which has been showcasing its infrastructure, landmarks and

advancements now for several years. Expo 2020 has repositioned the country as a tourism hub, with new projects undoubtedly set to increase footfall. Projects include: Eye of Dubai; Marsa Al Arab; Dubai Frame; the Water Canal; and the world’s tallest tower under construction at the Dubai Creek Harbour. Third comes Egypt which, while having endured instability and uncertainty over the past five years, is believed to be poised for recovery. Not everyone agrees with this expectation, but a significant number of forecasts suggest the country will be back on its feet and eyeing a return to its former glory days before long.

Highest investment growth Six countries, including Jordan, Egypt, Yemen, Lebanon, KSA and Bahrain, will almost double investments in the sector. Even more significantly, the UAE, Qatar and Syria are expected to achieve a 200 percent investment growth over the next 10 years. Syria’s resurrection, data suggests, is already underway, with a few ventures advancing, albeit cautiously, with momentum set to build once the situation improves.

COUNTRY

INVESTMENT IN 2016

EXPECTED INVESTMENT IN 2027

KSA UAE Egypt Morocco Iran Qatar Algeria Iraq Lebanon Jordan Bahrain Kuwait Libya Oman Syria

28.6 billion 7 billion 4.6 billion 4.1 billion 3.5 billion 1.7 billion 1.8 billion 1.7 billion 1.2 billion 865 million 384 million 374 million 230 million 710 million 0.1 billion

53.4 billion 20.3 billion 9.3 billion 6.3 billion 6.2 billion 4.6 billion 2.6 billion 2.4 billion 2.3 billion 1.7 billion 718 million 449 million 328 million 1.3 billion 0.3 billion

HOSPITALITY NEWS ME | AUG-SEP 2017

GLOBAL HOTELS MARKET OVERVIEW Transaction volumes to pick up

The global hospitality scene has witnessed ups and downs throughout the past year. Philip Ward, CEO Hotels & Hospitality, EMEA at JLL, considers the impact from a regional perspective While uncertainty continues in 2017, with elections in UK and Germany, ongoing Brexit negotiations and U.S. interest rate increases, the outlook for the travel and tourism industry is positive, with forecasts for higher growth at almost four percent (in terms of direct GDP). The industry also appears to have a greater ability to absorb uncertainty than in the recent past. This optimism is supported by encouraging hotel operating performance at the start of 2017. All three regions achieved annual revenue per available room (RevPAR) growth over the February 2017 year-to-date period, with Asia Pacific posting the highest uplift of almost three percent (2.9 percent), while the Americas saw a two percent increase and Europe remained relatively static, with a minimal one percent rise.

The international hotel investment market ended Q1 on a cautious note, with transaction volumes closing the quarter at USD 11 billion, down five percent year-onyear (y-o-y). Asia Pacific posted the largest growth, at seven percent, thanks to strong deal flow in Hong Kong, which got off to a quick start in 2017, with five single-asset transactions worth a combined USD 940 million. The Americas grew by four percent to almost USD 6 billion, with a 392 percent increase in transaction volumes in Canada over the same period in 2016, offsetting an 18 percent decrease in the US. Q1 volumes in EMEA fell 20 percent y-o-y to USD 3.6 billion, as investors adopted a conservative approach due to the heavy election year. The drop came despite Germany registering a 26 percent annual uplift in volumes to USD 1 billion. Investor interest remains high, however and activity is expected to pick up in the latter part of the year.

Top global markets The United States continues to be the top market for transaction activity, although volumes, which totaled USD 4.5 billion in Q1 2017, were 18 percent lower than the same quarter last year. Positive factors, which will have more bearing as the year advances include the return to market of the domestic real estate investment trusts (REITs), an abundance of equity and healthy debt capital markets. Public REITs accounted for 25 percent of acquisitions by volume in the quarter, compared to 10 percent in Q1 2016. Germany sat firmly in second place in Q1, reporting a 26 percent y-o-y uplift in deal volumes to USD 1 billion, of which 75

percent were single-asset sales. Hamburg, Berlin and Munich were the top three investment hotspots, each registering deal volumes of over USD 100 million. Domestic investors dominated the market, accounting for around 90 percent of total volumes. A number of properties traded in Q1 are still under construction, demonstrating investor confidence in the future of Germanyâ&#x20AC;&#x2122;s economy. Hong Kong and Canada joined the top league in Q1 2017. Hong Kong has not had any major investment activity after the USD 1 billion sale of InterContinental Hong Kong in 2015, but got off to a quick start in 2017, with five single-asset transactions worth a combined USD 940 million. Buyers were mostly domestic, with one mainland Chinese investor. Asian investors dominated the Canadian hotel investment market in Q1 2017, which reported a total deal volume of USD 870 million. The Canadian travel and tourism industry has been booming recently and the number of overnight travelers is forecast to grow three percent in 2017, supported by the favorable Canadian currency compared to the US dollar. The UK reported a total of USD 818 million in hotel investment in Q1 2017, down 26 percent on the same period last year. London is still the center of attention, accounting for over 80 percent of transactions, despite stock being tightly held. The UK continues to appeal to investors from both home and abroad, with North American investors the most prominent source of overseas capital. The UK has benefited from a weaker currency and received 16 percent more international visitors y-o-y in the three months to January 2017. jll.eu AUG-SEP 2017 | HOSPITALITY NEWS ME

SPECIAL REPORT

HOSPITALITY INVESTMENT

WHATâ&#x20AC;&#x2122;S DRIVING INVESTMENT IN THE HOTEL MARKET? nationals. From a local investor perspective, key motivations include longer-term investment, portfolio diversification, income returns and status through brand association.

Regional idiosyncrasies

Over the past year, reports on the hotel sector in the GCC region have highlighted falling revenue metrics and performance. Despite these reports, the overall number of hotel projects announced continues to rise. Grant Salter, director and head of travel, hospitality and leisure advisory, Middle East, at Deloitte gives further insight into the regionâ&#x20AC;&#x2122;s hospitality investment trends When considering the hotel investment market in the GCC, it is important to differentiate between investment/acquisition of existing operational hotels and the development of new assets. Given the limited secondary market in the region, it is difficult to highlight investment themes based on transacted or traded assets. The development market, on the other hand, remains very active.

Strong comparative global returns Despite falling top-line metrics, certain markets in the Middle East continue to present an attractive investment opportunity on a global comparative basis. In 2016, Middle East hotels achieved an average RevPAR of USD 115, despite a fall of nine percent y-o-y, second only to Caribbean hotels, which achieved an average RevPAR of USD 135. Gross operating profit across the region averaged around 40 percent. Notably, while the hotel industry in the GCC looks to attract international interest, investment remains primarily driven by local investors, with the exception of investment from Indian

HOSPITALITY NEWS ME | AUG-SEP 2017

Regional idiosyncrasies also come into play. In a region where cash is king, hotels generate a higher amount of income yield/continuous cash, compared to other assets, which can be further invested into other businesses. Another key factor is the regional push at economic transformation, with tourism being at the forefront of the diversification agenda. The introduction of the White Land tax in the KSA has also spurred hotel investment in the nation, as hotels are generally able to generate a higher income return compared to other real estate assets.

Despite falling top-line metrics, certain markets in the Middle East continue to present an attractive investment opportunity Which markets and why Not all markets are created equal and while geo-political issues affect the region as a whole, legal transparency, tourism economics and infrastructure vary across key markets and play a major role in attracting investment. The UAE, in particular, remains the most attractive market in this regard, with a strong tourism demand forecast. The Saudi market has strong fundamentals in terms of population and religious tourism demand, but is constrained by a limited, albeit developing, investment market. This is evidenced by the level of upcoming supply in planning or under construction, with the majority being in the UAE and Saudi Arabia. Oman has also seen increased hotel investment interest in Muscat, Salalah and new destinations, such as Sohar and Duqm.

Financing trends and access to capital One way to look at the hotel investment market is through the capital structure. The financing structure for hotels in the region previously adopted the typical equity and bank debt sources. We have seen a shift in the way developers are raising non-debt finance. Due to tightening bank liquidity, developers are turning to alternative sources

of finance, such as mezzanine funds for lastmile funding. Investment firms dominate the mezzanine financing landscape â&#x20AC;&#x201C; with a rise in the formation of capital in the mezzanine and junior debt space in the UAE recently.

The bank perspective From a debt perspective, the market is seeing stricter terms and increased due diligence, partly caused by its past over-exposure to the real estate market. Banks are no longer taking pure construction risk based on feasibility studies, even if the numbers appear attractive. Their criteria is shifting more towards the profile of the investor/developer. Liquidity is generally available for qualifying investors who have a development track record and alternative sources of free cash that they could use to service project debt until the project is able to generate cash. In addition,

OPPORTUNITY FOR MID-MARKET

The region has undergone a range of socio-political and economic shifts that have undoubtedly had ramifications for the MENA hotel industry. Hala Matar Choufany, president, Middle East and Africa at HVS, speaks about the opportunities emerging in the sector. Historically, the main investors in the Middle Eastâ&#x20AC;&#x2122;s hospitality market have been government entities, followed by semi-private investment entities. Approximately 70 percent of the existing hotel inventory in the upper scale and luxury market has been developed and continues to be owned by these entities. The presence of upper scale and luxury hotels in key cities in the Middle East, most notably in the GCC, is well established, and, with the anticipated growth in tourism in the region, supported and facilitated by the expansion of tourism infrastructure, private owners and highnet-worth individuals are looking for suitable opportunities for the development of hotels.

Plenty of potential for mid-market

Pearl Rotana, Capital Centre - Abu Dhabi

banks are generally no longer willing to finance the cost of land, and typically require investors to include the land as a portion of their equity contribution. A typical term sheet for the major markets (UAE and KSA), would include a loan to value (LTV) ratio of 60 to 70 percent on hard construction costs only, at a cost of 5.5 to six percent. Loan tenure generally ranges between two and three years of construction, plus seven to eight years of amortization, with a 20 to 30 percent balloon payment. Local banks that have advanced leveraged finance capabilities on sophisticated structured financing deals will sometimes work with alternative lenders that generally play a role during construction.

Market outlook Within the Middle East, sovereign wealth funds and government related-developers

are likely to continue driving hotel development in their respective local markets, while family businesses are likely to focus on key regional cities. The largest issues deterring international investment are legal frameworks, currency risk and business process transparency. If these issues are addressed, the market could see a rise in activity within the secondary market and the development of a more mature real estate institutional investment environment. In the meantime, developers continue to explore alternative funding structures, such as real estate investment trusts (REITS), alternative debt and the Condo Hotel model. Bank debt, however, is likely to continue to be available for qualifying investors who have a development track record and alternative sources of free cash. deloitte.com

Mid-market hotel development became one of the fastest growing and successful segments in North America more than a decade ago. To begin with, developers were drawn to the appeal of the midscale hotel investment model - in many cases, an investment supported by low developments and operating costs - which, in turn, generated higher returns than the full service, four-to-five-star hotel counterparts. Another plus was that the mid-market hotel proved to be more resilient to the credit crunch and global economic downturn, experiencing a lower overall decrease in RevPAR than the typical four-to-five-star hotel rating during this time. Despite a series of current and future macroeconomic challenges, the MENA hotel investment and development pipeline remains strong, particularly amongst mid-market branded hotels. The Middle East consists of a diverse range of hotel markets that are stimulated by varied segments of demand, and, as primary markets continue to mature and saturate with four and five-star hotels, secondary markets are beginning to progress, supported by improved modes of accessibility and infrastructure developments. hvs.com

AUG-SEP 2017 | HOSPITALITY NEWS ME

SPECIAL REPORT

HOSPITALITY INVESTMENT

HOTEL INVESTMENT IN THE GLOBAL ECONOMIC CLIMATE started in mid-2014, when the crude oil price started dropping. For markets that rely heavily on oil production, this has had a massive impact on corporate travel, which is a very important business segment for this region. As of July 2017, the crude oil price is hovering around USD 51-52 per barrel (according to Statista), which is nearly double the 2016 low point, but still far below year-end averages seen earlier this decade.

From the ground up

Globally, the hospitality industry has kicked off 2017 with largely positive performance results. RevPAR growth was seen in North America, Central/ South America, Europe, Asia Pacific and Africa in the first five months of the year (in US dollars), and Robin Rossmann, managing director of STR, sees continued performance increases in many key regional markets as the year progresses As of May, the Middle East has recorded a five percent year-over-year drop in RevPAR. The region is impacted by a wide range of factors that can be narrowed down to two main buckets: hotel supply growth and greater economic issues.

Tied to the barrel This year-to-date as of May, the Middle East’s occupancy is down one percent, while ADR has dropped 4.5 percent*. The region’s gross operating profit per available room (GOPPAR) declined six percent in 2016, compared with the previous year. STR has identified a strong correlation between the decline in the price of oil and an overall downturn in hotel performance and profitability for the GCC nations. Significant declines

HOSPITALITY NEWS ME | AUG-SEP 2017

Anyone following the Middle East’s hotel development is aware that several markets currently have extensive pipelines. As of May, the region has nearly 160,000 rooms under contract across 581 hotel projects, representing a 3.8 percent increase compared with the same month last year. Dubai leads the way, with 46,000 rooms in the pipeline, followed by Makkah with 28,500. Focusing on the former, the market has managed to continue growing demand, despite its rapid supply growth, which has offset much of the potential performance declines that typically come with a build-up of this magnitude.

The Ramadan effect Taking a look at recent performance trends, most key markets in the GCC recorded performance declines when comparing Ramadan 2017 with Ramadan 2016, with the exception of Muscat (RevPAR +9 percent) and Dubai (RevPAR +0 percent). While early close to the school term impacted performance in Saudi Arabia, again these results are heavily influenced by growing hotel

supply and geopolitical issues. Also, currency devaluations in Egypt and Indonesia, two key religious tourism source markets, likely played a role in hotel business declines, as pilgrimages to Saudi Arabia were less affordable for potential visitors from those countries this year.

STR has identified a strong correlation between the decline in the price of oil and an overall downturn in hotel performance and profitability for GCC nations; significant declines started in mid2014, when the crude oil price started dropping Looking ahead Keeping focus on Dubai, STR forecasts year-end performance to be in the red, brought down by drops in ADR. So far this year, however, Dubai’s demand levels have exceeded our previous expectations, so we have raised our forecast year-end occupancy level for the market. After much consideration, we have updated our long-term outlook for 2020 based on an analysis of mega events. We now expect Dubai’s performance growth to be stronger than we had previously envisaged, driven by ADR growth and strong demand. For the region as a whole, it is clear that corporate travel will be heavily swayed by oil prices, but attracting leisure demand will be very important for markets to counterbalance supply growth. strglobal.com

SPECIAL REPORT

HOSPITALITY INVESTMENT The demand for comprehensive hotel asset management services has increased in the last five years. It has also become increasingly important for owners to assess whether they should hire an in-house manager or appoint a specialized, third-party company. Mariano Faz, head of asset management, at TFG Asset Management explains

INTERNAL VS EXTERNAL

HOTEL ASSET MANAGEMENT The hotel sector is one of the world’s most competitive industries. The number of hotel owners correlates directly with the number of hotels, the vast majority of which are managed by large corporations. In regions such as the US, branded hotels comprise more than 80 percent of supply.

A hotel owner would be well advised to hire a professional hotel asset manager to ensure that both sets of interests are represented fairly. A hotel owner’s responsibilities include positively challenging the hotel operator and, in this situation, hiring an in-house asset manager can provide a partial solution.

The same trend is evident among hotel owners in the Middle East. Given the highly competitive nature of the market, hotel owners are required to understand every aspect of the hotel and the idiosyncrasies of the hotel operator. They need to protect their interests, while the hotel operators endeavor to secure their returns.

The asset manager will be able to represent the hotel owner’s interest, but it will not be possible for that person to challenge the multiple complexities of a hotel, such as understanding new technologies, sales skills, segmentation, operational requirements, F&B, financial analysis and maintenance issues.

HOSPITALITY NEWS ME | AUG-SEP 2017

Hotel asset managers must have sufficient, extensive operational experience, as well as strategic and revenue knowledge, to protect the owner’s investment. Very few asset managers – in fact, almost none - can claim that they have experience in all the required areas. Individuals might have great expertise in certain areas, but it requires more than one person to be at the forefront of the industry in advisory terms. The hotel asset manager should constantly challenge the hotel operator. If the asset manager fails to stay up to date with industry trends, they risk losing the respect of the hotel operator. This is a major challenge in the hospitality industry, which is constantly being disrupted by new technology and trends in guest satisfaction. Hospitality REITS are able to set up a multiskilled asset management team in-house to manage the spectrum of hotel assets across their portfolio because they have a sufficient number of rooms to support the team. However, the hotel industry is not solely owned by REITS. The vast majority of hotels are owned by private individuals who do not have the capacity to set up large teams of asset managers. A third-party asset management company will be able to provide the best advice and assistance to those individual owners. These companies tend to have a team of professionals specialized in different areas of the hotel, where the owner is guaranteed to receive the best advice. In conclusion, owners would be well advised to employ third party hotel asset management firms if they are intent on maximizing the efficiencies and profitability of their hotel investments. The industry is so challenging and dynamic that a single person is not able to process so many changes and such diverse information single handedly. tfgassetmanagement.com

SPECIAL REPORT

HOSPITALITY INVESTMENT

150 BAHRAIN

Hilton Bahrain Bay Hotel & Residences

TOP HOTEL PROJECTS IN THE MENA REGION, RESEARCHED, REVIEWED AND SELECTED BY HN JORDAN

Opening Q3 2021 Number of rooms 210

Centro Olaya Opening Q4 2017 Number of rooms 156

Centro Waha Opening Q3 2017 Number of rooms 290

EGYPT

The Ritz-Carlton, Amman Opening 2020 Number of rooms 233 Marriott International and Al Eqbal Real Estate Development signed an agreement to open The Ritz-Carlton, Amman, marking the debut of The Ritz-Carlton brand in Jordan.

W Amman Hotel Mövenpick Resort El Ein Bay Opening 2020 Number of rooms 214 The new property is envisioned as a chic and contemporary resort, with five dining options, including: a specialty restaurant and a rooftop lounge; meeting and event space spanning more than 1,000sqm; a large swimming pool; and an extensive spa and fitness facility.

Opening November 1, 2017 Number of rooms 280

KSA

Centro Corniche Opening Q4 2017 Number of rooms 253

The St. Regis Cairo

Opening September 2017 Number of rooms 326

IRAQ

Mövenpick Hotel Heraa Jeddah Opening 2019 Number of rooms 227

Mövenpick Hotel Erbil Opening 2018 Number of rooms 207

Mövenpick Residences Al Khobar Opening 2018 Number of rooms 270

Sulaymaniyah Rotana Opening Q2 2018 Number of rooms 240

Centro Salama Imam Reza Rayhaan by Rotana Opening 2018 Number of rooms 272 The first Rotana property to open in Iran, as part of the Rayhaan brand, this five-star hotel is located in Mashhad.

HOSPITALITY NEWS ME | AUG-SEP 2017

Opening Q1 2018 Number of rooms 400 The luxurious 5-star hotel has been conceived to be a prestigious address for discerning travelers to Madina and is located just across the road overlooking the Holy Mosque.

Crowne Plaza Riyadh RDC Hotel & Convention

Opening 2017 Number of rooms 366

IRAN

Coral Al Madina Hotel

Opening Q4 2017 Number of rooms 189 Alongside Centro Shaheen, this is Rotana’s second property under the Centro brand to open in the heart of Jeddah. Centro Salama is located just minutes from premium shopping centers, national embassies and business districts.

Radisson Blu Hotel Al Hidaya and Park Inn by Radisson Hotel Al Hajla Opening Q2 2019 Number of rooms 2,850 The Carlson Rezidor Hotel Group is set to become one of the largest hotel operators in Makkah, Saudi Arabia with the announcement of two hotels. The chain signed a management agreement with Saudi company, Al Majd Al Arabiah.

SPECIAL REPORT

HOSPITALITY INVESTMENT

Omer Kaddouri President and CEO

Rotana Hospitality investments in the UAE and in the region are expected to receive a boost due to a number of factors, such as upcoming global events like the Expo 2020, as well as key government initiatives aimed at easing travel and stay. The UAE’s decision to grant its visa-on-arrival facility for Russian and Chinese citizens is one example. The GCC hospitality market is expected to grow at an almost eight percent CAGR

MOROCCO

JW Marriott Tamuda Bay Opening 2018 Number of rooms 176

OMAN

in the coming five-year period to reach USD 36.7 billion in 2020, while in the UAE, hospitality revenue is forecast to increase to almost USD 10 billion by 2020. A recent report by JLL predicts a spike in hospitality investment, with the total volume of transactions in the EMEA region expected to hit USD 22.5 billion in 2017, up from USD 20.5 billion in 2016. As technology continues to disrupt tourism and hospitality and influence consumer expectations, I believe we will see hotel brands in the region placing renewed emphasis on innovation to meet guest expectations around personalization and on-demand functionality. Rotana is leading the way in this regard, with a world-class range of product brands that cater to the needs of specific guest segments and, as we continue to expand our presence and enter new markets, a quest for innovative ways to improve overall guest satisfaction remains at the center of our business strategy.

Sundus Rotana Opening Q3 2017 Number of rooms 215

QATAR

TURKEY

Centro WestSide Opening Q4 2017 Number of rooms 152

WestSide Arjaan by Rotana Opening Q1 2018 Number of rooms 153

TUNISIA

Four Seasons Hotels Tunis Opening Q4 2017 Number of rooms 200 The first Four Seasons Hotel in Tunisia will offer the largest accommodations in the city.

Royal Tulip Korbous Resort Opening Q4 2017 Number of rooms 167

UAE

Aloft Dubai City Centre Deira Opening Q1 2018 Number of rooms 304 Majid Al Futtaim, together with Marriott International, plans to launch the region’s first cinema-themed concept, featuring a unique offering of cinematic themed rooms, in addition to an ‘Outdoor’ VOX Cinema, developed in collaboration with Majid Al Futtaim Cinemas.

Al Bandar Rotana

Crowne Plaza Muscat - Oman Conv & Exhib Ctr

Opening Q4 2017 Number of rooms 190

Opening October 2017 Number of rooms 296

Al Bandar Arjaan by Rotana Opening Q4 2017 Number of rooms 90

Al Jaddaf Rotana Opening Q4 2018 Number of rooms 320

Beach Arjaan by Rotana Opening Q3 2018 Number of rooms 326

Golden Tulip Doha

Opening 2019 Number of rooms 324

Opening Q3 2017 Number of rooms 198 This luxurious 4-star hotel in Doha is positioned near many of the city's top attractions, including the Qatar National Museum.

Tulip Inn Downtown Muscat

Holiday Inn Doha - The Business Park

Mövenpick Hotel & Apartments Al Azaiba Muscat

Opening Q3 2017 Number of rooms 180

Opening September 2017 Number of rooms 307

Golden Tulip Headington Ruwi

Staybridge Suites Doha Lusail

Opening Q3 2017 Number of rooms 118

HOSPITALITY NEWS ME | AUG-SEP 2017

Opening March 2017 Number of rooms 119

Bulgari Dubai and Residences Opening 2017 Number of rooms 120 The luxury property will be the world's fifth Bulgari Hotels and Resorts property.

Holiday Inn Dubai Festival City

Mama Shelter

Opening March 2018 Number of rooms 520

Opening 2020 Number of rooms 201

InterContinental Fujairah Resort

Mandarin Oriental

Opening September 2017 Number of rooms 190

Opening 2020 Number of rooms 257

Pearl Rotana

Mövenpick Resort Al Marjan Island

Opening Q4 2017 Number of rooms 315

Opening 2020 Number of rooms 550

Crowne Plaza Dubai Marina

Roda Jewel of the Creek

Sofitel Dubai Wafi

Opening March 2018 Number of rooms 273 Located in the cosmopolitan Dubai Marina area, the 3037-square-meter hotel is in close proximity to the city’s business hubs, such as Dubai Media City, Dubai Internet City and Knowledge Village.

Opening Q4 2018 Number of rooms 986 The first phase of this mixed-use development will include a unique 450key, 5-star hotel property, four towers of serviced apartments and studios, more than 20 restaurants and a 65-berth marina.

Opening 2019 Number of rooms 501 Sofitel, part of AccorHotels, announced the largest Sofitel property in the Middle East with development partner MKM Commercial Holdings LLC.

Saadiyat Rotana Resort & Villas Opening Q4 2017 Number of rooms 327

Palace Fujairah Beach Opening 2019 Number of rooms 162 The second project to be managed by Address Hotels + Resorts in the emirate.

Emerald Palace Kempinski Palm Jumeirah

Rosemont Hotel & Residences, Curio Collection by Hilton

Opening Q4 2017 Number of rooms 389 With its opening scheduled for end of this year, this legendary European Palace in Dubai will complement the Kempinski Hotel & Residences Palm Jumeirah, opened in 2011. Rooms start at a size of 67 square meters and are thus the largest rooms in this category on the Palm.

Opening 2019 Number of rooms 450, 280 serviced apts.

Henk Meyknecht COO, Middle East & Africa

Kempinski Hotels The industry has never been more global, with guests increasingly on the lookout for unique experiences to match their individual tastes and preferences. Luxury hospitality demands constant attention to detail and we believe Kempinski is perfectly positioned, as an independent luxury hotel company with a long-

Hilton Abu Dhabi Yas Island Resort Opening 2019 Number of rooms 641 The resort will be part of the USD 2.3 billion development plan announced by Miral for the southern end of Yas Island.

term view to deliver this exceptional experience. This entrepreneurial spirit is embedded in the heritage and culture of Kempinski. Our strategy is to remain an independent, European, luxury hotel operator with a ‘small is beautiful’ philosophy. This translates into our development projects which are focused on select destinations, where we can blend our brand of luxury European hospitality with the local culture of the community in which we operate. This year at Kempinski Al Othman Hotel Al Khobar in Saudi Arabia, we featured a Ramadan tent in the Grand Ballroom, which was well received by the local community. For us, customization isn’t just a marketing gimmick, it’s truly part of our original DNA. In the Middle East, we benefit from strong brand recognition. With our continued expansion as a group into Central Asia, India and China, we expect these feeder markets to further

Wyndham Garden Ajman Corniche Opening Q4 2017 Number of rooms 179 The 17-story, 4-star hotel is owned by R Hotels, the hospitality management division of the Ajman-based R Holding. The project has a total investment of USD 54 million.

strengthen our performance in the Middle East. In particular, there is strong interest in the meetings and events segment from these emerging markets. We are actively expanding our presence in the Middle East and Africa through selective growth, with projects in destinations in line with our brand. Overall, we are optimistic about the long-term outlook for luxury hospitality in MENA, particularly in growing cities within Saudi Arabia, as well as UAE, Bahrain, Oman and Kuwait. In KSA, we are planning future developments in Jeddah and Medina. Our aim is to operate luxury hotels in each key city within the GCC and we look forward to opening the Kempinski Hotel Muscat at the end of 2017, while moving forward on new potential projects in Bahrain and Kuwait. In Africa, we are exploring in Addis Ababa, Dakar, Rabat and Tunis.

AUG-SEP 2017 | HOSPITALITY NEWS ME

SPECIAL REPORT

HOSPITALITY INVESTMENT tophotelprojects.com

COMPILED FROM TOPHOTELPROJECTS, THE ONLINE DATABASE FOR THE HOSPITALITY INDUSTRY SAUDI ARABIA

ALGERIA

TUNISIA

Dammam Marriott Hotel and Apartments

250

Q2/2018

DoubleTree by Hilton Al Qassim Unaiza

127

Q3/2017

DoubleTree by Hilton Makkah, Jabal Omar

668

08/2017

DoubleTree by Hilton Riyadh

110

Q1/2018

01/2018

275

Q2/2018

Holiday Inn Algiers - Cheraga Tower

242

08/2017

Marriott Bab Ezzouar Algiers

1218

Q1/2018

Radisson Blu Hotel Algiers Hydra

138

11/2017

Radisson Blu Hotel Tipaza

168

Q1/2018

BAHRAIN 356

Grand Swiss-Belresort Seef

189

Q4/2017

Four Seasons Jeddah Corniche

Park Inn by Radisson Manama

207

Q2/2018

Fraser Suites Edafah, Riyadh

08/2017

Grand Millennium Hotel Madinah

299

Q1/2018

156

Q1/2018

Swiss-Belresidences Juffair

129

Q4/2017

EGYPT

212

Q1/2018

Four Seasons Hotel Tunis

203

Q4/2017

Movenpick Hotel Les Berges Du Lac Tunis

190

Q1/2018

Radisson Blu Pearl Resort Sousse

224

Q3/2018

DoubleTree by Hilton Canakkale

201

Q4/2017

DoubleTree by Hilton Eskisehir

136

09/2017

TURKEY

DoubleTree Suites by Hilton Bahrain Juffair

Shaza Seef Bahrain

DoubleTree by Hilton Tunis

Hilton Antakya Museum Hotel

200

08/2017

180

Q1/2018

Hilton Al Jubail Corniche

347

Q1/2018

Hilton Garden Inn Bursa

Hilton Al Khobar Corniche

359

Q4/2017

Hilton Garden Inn Iskenderun

154

08/2017

150

08/2017

Hilton Bab Makkah North,Jabal Omar

746

Q1/2018

Hilton Garden Inn Isparta

08/2017

746

Q3/2018

Hilton Garden Inn Istanbul Bostanci

147

Hilton Bab Makkah South, Jabal Omar

Hilton Garden Inn Yalova

121

Q3/2018

Q1/2018

Hilton Garden Inn Al Jubail

131

Q1/2018

Hilton Istanbul Bakirkoy

305

02/2018

Q1/2018

Hilton Garden Inn Al Khobar King Fahd Causeway

159

Q3/2018

Park Inn Apartment Hotel Istanbul Esenyurt

484

Q2/2018

Hilton Garden Inn Riyadh

260

Q1/2018

Q4/2017

240

Q2/2018

Park Inn by Radisson Hotel & Residence Istanbul Odayeri

Hilton Garden Inn Yanbu Hilton Obeikan

217

Q1/2018

122

10/2017

Hilton Riyadh Hotel & Residences

864

11/2017

Park Inn by Radisson Istanbul Atasehir Hotel & Residences

260

Q1/2018

Hilton Riyadh King Saud University

241

Q2/2018

Radisson Blu Hotel Istanbul Topkapi Radisson Blu Hotel Trabzon

162

Q2/2018

Marriott Hotel Riyadh Diplomatic Quarter Hotel

Q2/2018

UAE

Marriott Jubail

380

Q2/2018

Golden Tulip Deira City Centre

125

Q1/2018

Mirage Grand Hilton Hotel North Ring Road

262

Q4/2017

Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl

368

10/2017

Movenpick Hotel & Apartments Al Tahlia Jeddah

164

Q1/2018

Hilton Dubai Palm

611

Q3/2017

Hilton Garden Inn Dubai Al Garhoud

167

2018

Movenpick Hotel Financial District Riyadh

353

Q1/2018

Hilton Garden Inn Dubai Al Jadaf

336

Q2/2018

Mövenpick Wa'ad Al Shamal

237

Q3/2018

Q1/2018

350

Q1/2018

InterContinental Abu Dhabi – Grand Marina

200

Park Inn by Radisson Jeddah

Jumeirah Saadiyat Island

291

Q3/2017

Park Inn by Radisson Makkah Aziziyah

330

Q4/2017

Majlis Grand Mercure Dubai Sheikh Zayed Road

364

Q1/2018

Park Inn by Radisson Najran

120

09/2017

Marriott Dubai Jumeirah

Q1/2018

Radisson Blu Hotel & Residence Riyadh Diplomatic Quarters

114

Q1/2018

Movenpick Hotel Al Reem

713

Q1/2018

299

Q1/2018

Radisson Blu Hotel & Residence Unaizah

180

Movenpick Hotel Apartments Al Burj Business Bay Movenpick Hotel Apartments Downtown Dubai

246

Q1/2018

Movenpick Hotel Dubai Media City

251

Q1/2018

Park Inn by Radisson Dubai Al Jadaf

300

Q3/2017

Park Inn by Radisson Dubai Motor City

150

11/2017

DoubleTree by Hilton Ain Al Sokhna

197

Q3/2017

Hilton Makadi Resort

676

Q3/2018

Radisson Blu Hotel Cairo Nasr City

300

Shaza Cairo Nile

428

Swiss-Belhotel Marseilia, Alexandria Beach

200

IRAQ Radisson Blu Hotel Erbil

260

Q3/2017

Swiss-Belhotel Erbil

108

Q1/2018

JORDAN Al Qala'a

315

Q3/2017

Qasr Al-Aqaba

285

08/2017

KUWAIT Four Seasons Kuwait at Burj Alshaya

284

09/2017

Four Seasons Kuwait City

250

09/2017

Swiss-Belboutique Bneid Al Gar

Q2/2018

Swiss-Belresidences Al Sharq

Q2/2018

LEBANON Golden Tulip Jounieh

10/2017

Hilton Beirut Central District

158

09/2017

MOROCCO Hilton Taghazout Bay Beach Resort & Spa

170

Q2/2018

Jumeirah Marrakech Golf & Polo Resort

280

Q3/2017

OMAN

Q1/2018

Jumeirah Resort Muscat

318

11/2017

Jumeirah Saraya Bandar Jissah Boutique Hotel

312

09/2017

Radisson Blu Hotel & Residence, Jeddah Gate

452

Q1/2018

Radisson Blu Hotel Dammam Al Faisaliyah

260

Q2/2018

Radisson Blu Hotel Riyadh International Convention & Exhibition Center

218

Q1/2018

Kempinski Hotel Muscat

310

11/2017

Shaza Salalah

210

Q1/2018

QATAR DoubleTree by Hilton Doha West Bay

240

08/2017

Radisson Blu Resort Al Khobar Aziziya

186

Q1/2018

R Resort and Spa Palm Jumeirah

253

08/2017

Hilton Doha The Pearl Residences, Qatar

414

Q3/2018

Shaza Makkah

251

Q1/2018

Hilton Salwa Beach Resort & Villas

362

Q1/2018

205

Q2/2018

Radisson Blu Hotel, Dubai Canal View

204

Shaza Riyadh

Q2/2018

100

10/2017

Radisson Blu Residence Al Sufouh

Q4/2017

283

Swiss-Belhotel Al Khobar

264

Majlis Grand Mercure Hotel Doha Shaza Doha

180

11/2017

Swiss-Belhotel Riyadh

126

08/2017

The Radisson Blu Hotel, Dubai Waterfront

432

08/2017

HOSPITALITY NEWS ME | AUG-SEP 2017

LOUVRE HOTELS GROUP

Do dare reinvent on

i en

Royal Tulip Korbous - 167 Rooms

Golden Tulip Carthage - 254 Rooms

Golden Tulip Residence Carthage - 135 Rooms

Golden Tulip Sfax - 130 Rooms

Golden Tulip Taj Sultan - 250 Rooms

Golden Tulip El Mechtel - 344 Rooms

Louvre Hotels currently operates 6 Hotels & Resorts across Tunisia, leading the way in both leisure & business segments. Louvre Hotels is one of the Fastest growing hospitality groups worldwide with a target of 150 new openings yearly. Based in Paris with strong support from our Chinese partners, Louvre Hotels provides cutting edge modern hotels including budget focused brands to upscale services & luxury experiences.

KEY FIGURES Top 5 hotel operator worldwide. Louvre Hotels Group is a subsidiary of Jin Jiang International Holdings Co., Ltd., one of Chinaâ&#x20AC;&#x2122;s largest tourist and travel conglomerates. Headquartered in Paris, France, the group operates 6 hotel brands, each leveraging the strength of their differentiated positioning and a shared passion for innovation. Louvre currently manages over 60 hotels in the MENA Region with another 35 properties in the pipeline by 2020.

REGIONAL INVESTMENTS OUTLOOK

Despite regional uncertainties, political turmoil and economic instability, mega projects are still the fuel of the Middle East region, namely the UAE and Saudi Arabia lumenhospitality.com

MEGA MUSEUMS EGYPT

KUWAIT

Grand Egyptian Museum Phase III

Sheikh Abdallah Al Salem Cultural Center

130,000sqm footprint

470,974sqm land area 92,623sqm museum

8 buildings

built-up

8 F&B outlets and 5 retail shops

5,952sqm Pyramid

restaurants

6 museums

SPOTLIGHT ON THE KINGDOM The Kingdom recorded 68 new

Abraj Kudai Towers, a USD 4.5bn hospitality project, opening in Makkah, will become the world’s

hotels accounting 29,033 rooms to open across the major cities of the country.

biggest hotel when it opens in Q4,

2017, offering 10,000 rooms. Riyadh, Jeddah, Al-Khobar and Makkah are set to be the country’s busiest Saudi cities for hospitality development in the current year.

Saudi Arabia’s Vision 2030 plan is based on three major themes:

A Vibrant Society

A Thriving Economy

An Ambitious Nation

DUBAI MAKES IT TO THE TOP ONCE AGAIN With the highest market share, the UAE makes up approximately 42% of all hospitality and leisure recreation projects in the region. Currently valued at USD

179.7bn.

Dubai is now building around 72,000 new rooms, which will increase the total room supply from 99,000 back in 2016, to approximately 165,000 for Expo 2020. Project

Country

Investment (m USD)

Project Status

Al-Jadaf Area Redevelopment: Culture Village Dubai Eiffel Tower Makka Residence Development - phase 2 Firdous Sobha Royal Atlantis Resort and Residences Silver Pearl Hotel

UAE UAE KSA UAE UAE Qatar

13,500 1,500 2,000 6,800 1,400 N/A

Execution launched Design stage Design stage Concept Development Execution Launched Execution

HOSPITALITY NEWS ME | AUG-SEP 2017

BUSINESS

HOTELS

LIMITED

SERVICES

TOUGH

CHALLENGES With the changing hospitality benchmarks, lodging schemes are evolving and a new breed of accommodation models that are more convenient and forward-looking is developing. Ralph Nader, C ‎ EO at hospitality consultancy firm Amber Consulting, highlights the challenges of limitedservices lodgings and the opportunities they offer The rise of select and limited service hotels in a global market that is evolving faster than ever is impressive. According to STR Global, select-service rooms accounted for nearly 70 percent of new supply in the US in 2014 and 2015. Most hotel chains are developing their own affordable select-service brands and are adopting an ambitious plan to further expand this category. Vib by Best Western, Tru by Hilton and EVEN by IHG, are all new, growing brands recently launched in the segment.

HOSPITALITY NEWS ME | AUG-SEP 2017

The Middle East is also witnessing the take-off of this trend. While the region has a long history of focusing on upscale establishments, it seems this luxury segment is coming to saturation. Travelers’ habits are changing: quick business trips, short, transit stays and tighter budgets will make for most of the demand growth in the region. For these reasons, limited and select-service hotels will undoubtedly be the investors’ and travelers’ preferred choice.

Blurred lines There is no standard definition of this type of hotel or ‘in-between’ establishment. Limited-service hotels usually don't have restaurant facilities, although they might include some very basic amenities, such as laundry services. Between the limited-service and the full-service hotel lies a hybrid category; the select-service hotel. These establishments offer the fundamentals of limited-service hotels, with a selection of amenities similar to full-service properties, but less extensive. For example, limited F&B offerings, such as grab and go, breakfast only, a few small meeting rooms and a small gym. Therefore, today’s market is therefore facing a revolution; a categorization shift from ‘rating scales’ including upscale and midscale, to ‘assets-scale’, such as limited, select and full.

The challenges These new accommodation models present a different set of challenges led

by fewer revenue streams and brand equity. With limited F&B offerings, select-service hotels are unable to rely on a topnotch restaurant to increase revenues. This could be particularly frustrating in a market like Dubai, where hotel restaurants benefit from being the only establishments permitted to serve alcohol. Today, the UAE’s hotels heavily rely on this monopolistic advantage. Most hotels develop unique F&B concepts that contribute significantly to the facility’s revenues. They also contribute to the hotel’s brand equity, since Dubai's visitors, more than any other city in the region, will select a hotel based on their dining experience expectations.

Investors should be aware of the challenges ahead and make sure they have a sound, mitigating plan in place prior to opening No room for error ‘Every penny counts’, would make an accurate summary of the business model that limited and select-service hotels need to adopt. Budgets should be closely monitored and daily reports constantly Limited-service hotels usually don't have restaurant facilities, although they might include some very basic amenities, such as laundry services

rooms without significantly impacting the customer’s perception of comfort is a key challenge. For example, Hilton’s Tru brand simply replaced the built-in closets in their rooms with ‘landing zones’ for the luggage and a few wall hangers, while developing special lighting to help the rooms appear larger. Mini-bars, working desks and TV desks are among the other elements that can all be considered for revision or even removal to save space.

Most hotel chains are developing their own affordable select-service brands Pressure on human resources

‘Tru’ by Hilton

shared with management. Cost increases of just a few hundred dollars could significantly impact the bottom line, especially when it comes to small hotels (i.e., those with less than 200 rooms), which make up the majority of limited and select-service hotels. Solid and, admittedly, often tedious processes need to be put in place to ensure money is not wasted and that profitability is maximized.

Select and limited hotels cannot afford the luxury of a large team to handle daily operations. The management team therefore has to be very well-rounded, efficient and carefully selected. Just like the general manager, each assistant manager should have a comprehensive understanding of the way the hotel works and where savings matter the most. This applies to other staff as well. As labor costs need to be closely monitored, cross-functional job descriptions are common; your front office manager might also inspect your room, while the waiter should be able to oversee food preparation. This multi-faceted approach enhances the guest’s experience, since the points of contact are often the same person, and cuts down on labor costs. However, the system inevitably also puts

additional pressure on staff. One solution consists of cutting staffing costs by heavily investing in technology solutions, like self-check-ins, to reduce pressure and increase efficiency.

Keeping the clientele One of the strongest challenges the investor will face, especially in the Middle East, is ensuring their clientele know what to expect. Middle Eastern travelers are used to traditional hotels, with a plethora of valueadded services. In select and limited-service hotels, rooms have less amenities, with the absence of a mini-bar or closet. Although clients are most probably aware that they’re stepping into a hotel with fewer facilities, they might acquire a degree of frustration and an unfounded negative perception of the quality of the accommodation. A commoditization risk might well occur, where the business traveler selects his hotel solely based on the price. The key to success is for the hotel’s management to keep a customercentric culture, while ensuring the provision of some level of support in satisfying their clients’ needs. One example is being able to recommend a selection of nearby restaurants.

What to conclude Given the impact on the Middle Eastern region of lower oil and gas prices, regional instability and changing demographics, the number of select and limited-service hotels is undoubtedly going to increase, causing fierce competition. Investors should be aware of the challenges ahead and make sure they have a sound, mitigating plan in place prior to opening. Invest in good management, develop solid procedures for optimal efficiency, adapt to the country’s culture, educate the clientele and manage the costs very carefully.

Minimal space, maximum value ‘Saving space will save money’ is an essential rule for these types of hotels. Finding ways to reduce the size of the

amber-consulting.com

‘Vib’ by Best Western

AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

LAUNDRY

TAKING A LOAD OFF The hotel industry has been grappling with difficult choices across the board, in a bid to keep pace with shifting consumer demands without forsaking quality. Yet the considerations that enable operators to maintain optimal results without sacrificing return on investment (ROI) are not always straightforward While offering a laundry service to guests staying at a hotel is a given, there has been a gradual shift when it comes to decisions on whether to run an in-house facility as opposed to outsourcing such an amenity, with the main concerns directly related to overhead costs and quality controls.

revenues. “There's less certainty and, as a result, forward planning is more challenging,” Kubler admitted. “If you spend money on an in-house laundry, it needs to be used. If you're not sure you'll have the necessary volumes going forward on a consistent basis, it’s probably better to outsource it.”

Philip Jones, general manager of Mövenpick Hotel Jumeirah Beach, told HN that in an ideal world, hotels would certainly prefer to have an in-house laundry, since this gives them direct control over both the quality and quantity of items going in and out. “However, typically the outsourcing takes place when hotels have to convert the laundry space to a more revenue-generating area,” he said.

Given the shifting situation, some hotel guests are relying on a different kind of laundry service all together and doing the outsourcing themselves, helped by the rise of new technology. “Laundry apps are on the rise,” Kubler noted. “Today's guests are internet-savvy and used to the on-demand economy. They have no issue downloading an app and using it. Consider the Dubaibased ‘Washmen’; you simply download the app and get your laundry picked up at the click of a button.”

Elaborating further on the subject, Martin Kubler, CEO of SPS:Affinity, a reputed Dubaibased boutique consulting firm that helps small and medium hospitality and service industry companies achieve their business goals, noted that outsourcing is largely the norm nowadays. “The only hotels I know here with in-house laundries are either older properties from times when space was still available and labor was cheap, or high volume clustered properties,” he commented. “Everybody else outsources this service and rightly so, because ultimately, we’re hoteliers, not launderers.”

The challenges of in-house laundry Hotel guests may well be unaware of the fact that an in-house laundry service is very expensive, with costs driven up by the equipment needed and the maintenance required to keep machines running. Other challenges include periods of low occupancy, when the operation becomes even more costly to maintain, with staff required to remain on call. However, there are exceptional circumstances when a hotel might continue running an existing in-house laundry service or even set up a new one, as Kubler explained. “If the hotel has a lot of money to spare and has the necessary guest laundry volume, or the owning company is diversified and just happens to also own a laundry business, then the decision could be different,” he said. Yet fluctuating hotel occupancy and shorter stays are significantly cutting into laundry

HOSPITALITY NEWS ME | AUG-SEP 2017

Advantages of outsourcing However, this reality is cutting into the bottom line of hotel laundry services and prompts another challenging question, namely: what are the advantages of outsourcing the service on behalf of guests? In response, Jones said that when outsourcing, ensuring that the work is given to a reputable laundry capable of handling the work is vital. “The outsourced laundry needs to have the right equipment, a spacious store, as well as proper laundry separations, and production capacity to deliver in a timely manner,” he concluded. While outsourcing may well come across as the most effective solution for some hotels, disadvantages include the forfeiting of control that an establishment has over the service. Nonetheless, it would seem that the advantages of outsourcing are far greater than the risks, as Kubler suggested. “Outsourcing of non-core services is

Philip Jones General Manager

Mövenpick Hotel Jumeirah Beach

Martin Kubler CEO

SPS:Affinity generally on the rise, in areas such as security and housekeeping,” he said. “Building an in-house laundry would go against this trend.” A significant portion of hotel operators seem to share that view and understandably. Better results are achieved when the work is done by professionals and cases of accidental damage to materials are reduced, as are costs, such as employee sickness. Going beyond the habitual, Kubler explained that the trend for outsourcing would, in all probability, soon have hotels renting the very same linens being sent to second party laundry service, as is already the case abroad. “Why do we not already have multiple linenrental companies competing for business here?” he asked. “In Europe, very few hotels own their bed-linen. It’s all rented in an endto-end solution, i.e. supply of linen, tracking of linen, cleaning and replacing of worn-out linen.” Such services offer added flexibility and save storage space, Kubler added.

BUSINESS

RESORTS

COASTAL

OPPORTUNITIES

sources of revenue and often rent out their space at night for private events, such as thematic receptions or weddings. These can represent up to 20 percent of yearly revenues. Today, the seaside has become almost saturated, with about 170 beach projects in existence. Developers have difficulty finding available plots of land with access to the sea on which to build new concepts. All along the coast, most of the land is already exploited. Despite the recent tourism crisis, competition remains fierce for those who wish to secure a spot by the water. ‘Beaches’ cover a huge range of concepts, from small snack shops with plastic chairs to resorts worth half a billion dollars in investment. The one thing they have in common is their access to the sea, whether sandy or rocky. Usually, ‘beaches’ are divided into three categories: private beaches, where visitors pay a daily entrance fee; resorts, where clients book rooms; and gated communities that sell or rent bungalows or flats.

Private day beaches Private day beaches can take the form of a simple beach with private access or can include some facilities such as sunbeds, private jacuzzis, swimming pools or restaurants. They usually require minimal investment compared to resorts or gated communities, with the client paying a daily entrance fee between USD 3-50, which is the main source of revenue for the owners. Beaches are, by definition, seasonal and operate for an average of 20 weeks per year. Owners therefore try to diversify their

HOSPITALITY NEWS ME | AUG-SEP 2017

The vast majority of private day beaches are located between Batroun and Saïda, although new projects have recently emerged to the north in Enfeh and to the south around Tyre. So far, all of these private day beaches are homegrown and locally managed concepts. In the current context, the advantage of private day beaches is that they rely on a local clientele made up of Lebanese and expatriates who are very loyal, as evidenced by the fact that over the last five years, there have been no closures of significance in this segment. On the contrary, beaches keep opening, as witnessed with the relaunch of La Siesta in Khaldé. To survive in a highly-competitive environment, private day beaches aim to specialize and target specific customers. Some bet on luxury, like Orchid, which invested USD 2 million in a new location in Batroun in 2015. Others, like Lazy B in Jiyeh, set out to identify itself as a relaxation destination, with large gardens, wellbeing activities and no music. Another growing trend is the ‘beach party’ concept, with places such as Iris beach in Damour or Loco Beach in Batroun, which host DJs day and night.

Beach resorts: heavily dependent on tourism With tourist numbers remaining low due to the chronic instability that continues to plague Lebanon, the number of large

With 220 km of coast, Lebanon is a natural seaside destination. Although some iconic beach clubs, such as ATCL and Sporting, existed before the civil war began in 1975, most beach concepts emerged afterwards, from 1990 onwards, and began booming in the 2000s. Nagi Morkos, managing partner at Hodema consulting services, gives us a glimpse into this sector

beach resorts is also small, totaling just 10. In addition, land prices on the seafront are extremely high, prompting most investors to develop hotels elsewhere. According to the Syndicate of Beach Owners, the cost of a square meter of land on the seafront near the capital city can reach USD 5000. For this reason, some investors opt to play safe and partner with international or regional operators to boost their chances of attracting a wider clientele. Both Mövenpick Hotel in Beirut and Golden Tulip in Jiyeh have adopted this strategy. Given that the sea is only accessible from May to October, such hotels offer much more than just a room and a beach, with other services allowing properties to operate out of season and be sustainable long term. These include a wide range of facilities, such as restaurants, banquet halls, meeting rooms and spas to attract both corporate and leisure clientele. The latest addition to Lebanon’s beach resorts is the Kempinski Summerland Hotel and Resort, which opened in September 2016. This iconic hotel, built in 1978 by the Saab family, underwent a complete revamp and change of ownership. Located on a 75,000 sq-meter plot of land south of Beirut, the resort includes a luxury hotel of 153 rooms, 73 private apartments and 583 beach huts. The complex also includes a marina, two swimming pools, two spas, three restaurants and a 300-meterlong sandy beach for a total investment of USD 500 million. However, beach resorts have been hit hard by the tourism crisis. Just 1.6 million tourists visited Lebanon in 2016, down from 2.2 million in 2010. Arrivals from the Gulf have

According to the Syndicate of Beach Owners, the cost of a square meter of land on the seafront near the capital city can reach USD 5000

Iris Beach Club - Lebanon

fallen significantly, weighing heavily on the occupancy of Lebanonâ&#x20AC;&#x2122;s hotels. This segment is known for its high spending levels, with the average purchasing power of Gulf tourists estimated to be five times higher than that of Lebanese customers. On the plus side, there is a glimpse of hope that things will pick up again in 2017. The Ramadan schedule has also had a knock-on effect on business. For the past five years, the fasting period has fallen during summer, which has slowed down tourism activity. According to the Syndicate of Beach Owners, the month of Ramadan produces a decrease in turnover of 60 percent.

Beach gated communities: a safe bet No matter how hard the crisis hits, buying or renting a bungalow or a flat on the seafront remains a must for Lebanese and expatriate investors. Gated communities are residential or mixeduse real estate projects, characterized by a closed perimeter of walls, fences and controlled entrances that only tenants and their invitees can access. The added value of such projects lies in the sense of security and exclusivity that tenants feel. In the case of gated communities located at the seaside, the project also includes private beach access, pools and sometimes a marina. Beach gated communities were mostly developed during the Lebanese Civil War. The majority of them are located on the northern coast of Beirut around Jounieh, an area that remained relatively calm when the rest of the country was caught up in chronic, episodic violence.

Six Senses in Zighy Bay - Oman

Atlantis, The Palm - UAE

The north of Lebanon has always been an exception, with beach gated communities that date back to the 1980s, such as Las Salinas in Enfeh, Miramar Resort Hotel & Spa and Palma Beach Resort in Tripoli.

The UAE and Dubai, in particular, is the regional champion, showcasing plenty of beach resorts, including Atlantis the Palm, The Ritz Carlton, the Four Seasons and the Westin.

From a current real estate perspective, beach gated communities help owners to develop their land by dividing them into several smaller plots, which are easier to sell than larger ones. Key recent projects, such as Kye Resort in Tabarja, successfully sold a good number of units because they kept them small and offered them at â&#x20AC;&#x2DC;affordableâ&#x20AC;&#x2122; prices.

To the south, Oman is also carving a niche as a destination for beach tourism, with high-end resorts like Six Senses in Zighy Bay, Shangri La and Chedi Hotel & Spa in Muscat. In some other Gulf countries, beach concepts exist, but are kept secluded due to cultural restrictions. Saudi Arabia, for example, is home to a number of private beaches, like Salhiyeh in Obhur to the north of Jeddah. However, these facilities target mainly expatriates.

Beach concepts also successful in the Gulf Beach concepts are also a fast-growing trend in Gulf countries. However, the majority of these beaches are found within hotels across these destinations, since the target clientele is mostly foreign tourists.

hodema.net

Kempinski Summerland Hotel & Resort - Lebanon

AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

EYE ON SHANGHAI

SHANGHAI

Shanghai is unlike any other city in the eastern part of the world. Home to approximately 30 million people, it is a constantly changing environment, where much of the population is competing to make money, especially the city’s restaurateurs. Emilia Shi, senior partner of Dentons Shanghai office, offers her insight on Shanghai’s fast-moving and diverse hospitality sector When it comes to local food, visitors will find decent outlets less than 100 meters away, irrespective of their location. The number of small, independent stores in Shanghai, otherwise known as mom and pop shops, is vast, equaling, if not exceeding, New York City’s offerings.

HOSPITALITY NEWS ME | AUG-SEP 2017

Some estimates suggest the number could even be double that found in the Big Apple. This is a major plus, as local Chinese food remains popular with Shanghai’s citizens, and these mom and pop shops generally serve the best quality cuisine for the price. The list of places with name recognition serving great Chinese food and favored by locals includes The Grandma’s, known for its Hangzhou style food, and Jesse, which is a Shanghai original, famous for its Xiefen potato soup and Shaoxing wine-marinated crab. Shanghai locals are also huge lovers of crayfish, so much so that there is an entire street, named Shouning Rd, with nothing but crayfish restaurants on it.

International food to fit any mood Many Chinese people have a negative opinion of Western-style food, viewing much of it as too sweet or fattening. However, for the more adventurous locals and the tourists making their way through Shanghai, there are plenty of great Western-style restaurants to choose from, including both chains and non-chain outlets. Leading the way as a destination famous for showcasing a variety of food options from different cultures is the French Concession. Don’t

be misled by the name, however, this must-visit area for foodies is home to an abundance of restaurants offering diverse cuisine options, including the famous Cantina Agave (Mexican) and Bella Napoli (Italian). Shanghai has also found itself caught up in a craze for bread in recent years, leading to the opening of several artisan bakeries, such as the excellent Bread, which is also located in the French Concession. Meanwhile, in another part of the city, Nanjing Rd has welcomed some well-known names since the beginning of the year, including one outlet each for American Bistro chain Hard Rock Café and New York City’s famous Joe’s Pizza.

Technology halts brick and mortar retail While the food industry in Shanghai might be booming, the news has not been so good for the retail sector, which is bearing the brunt of the rise and rise of delivery apps.

Online ordering has taken the city by storm In Shanghai, customers can order anything they fancy through a variety of apps, like Taobao - which is similar to Amazon - and Ele.me, the go-to food delivery app that delivers from almost any business selling

food and drink. Much of the time, these apps will waive delivery fees in a bid to secure repeat business. The philosophy among locals is, why leave the house when everything can be delivered free of charge? This massive rise in using the internet to buy goods and services has forced many businesses in Shanghai to make their products available online or face closure from a lack of both revenue and footfall. Many smaller malls and stores have shut down during the last five years, having failed to adapt and change. However, another new trend that is taking Shanghai and wider China by storm could help to stem the flow somewhat. Sharebike is a movement, which encourages people living in and visiting

China to get around its cities by hopping on a bike for a small fee. Under the system, the cycles are easily accessible, lined up along most streets and colorcoded by operator. Users can unlock the bike via smartphone, with fees ranging from between one and five yuan (USD 0.08 – 0.15) for half an hour’s use, significantly cheaper than traveling on the metro (four yuan) or by taxi (20 – 40 yuan). Once done riding, users can drop off the bike and relock it. Two firms have the lion’s share (70 percent) of the Sharebike business: Ofo, whose cycles are yellow, and Mobike (orange). Given cycling’s health benefits and suitability for city life, alongside Sharebike’s affordability, the system may well help efforts to revive retail footfall.

SHANGHAI’S F&B SCENE

For westerners, unusual delicacies, ranging from insects to oddly-shaped seafood, might be a little too adventurous for some in the first instance. However, when served barbecued on skewers with paprika and spices, with a familiar taste and texture similar to crab, calamari or octopus, it’s easy to see why they’re so popular with locals. Small local street units also showcase delightfully colorful and rich fruit displays. I was particularly interested in the cashew fruit, with its unique taste and texture, and the beautiful dragon fruit.

Maya Bekhazi Noun

Shanghai is home to many award-winning restaurants

The Food Studio

In Shanghai, even with the many Westernadapted and high-end Chinese options, eating like a local remains the preferred choice.

Dumplings are king We came across an abundance of small and medium-sized restaurants, which were successfully competing with some of the city’s most famous fine-dining spaces. The little eateries served food from steamers and the city’s famous soup dumplings, which were unlike any others found elsewhere in the world. Another delicacy was pan-fried pockets, usually filled with pork, although beef options were available, soft and juicy inside, complete with a crispy base. The noodle dumpling dish also proved well worth trying. We were given a bowl of noodles or noodle soup, topped with silky, thin layers and very juicy, delicious dumplings.

When it comes to the city’s hotel business, the hottest new thing is the Shanghai Disney Resort, which opened in June 2016 and serves the trademark Disneyland Park. The resort currently consists of two hotels - the Shanghai Disneyland Hotel and the Toy Story Hotel - offering 420 and 800 rooms respectively. Located near the new Disneytown, an area within the confines of the resort that has extensive retail shopping, dining and entertainment facilities, both hotels are extremely popular and usually booked up well in advance. Plans to build two more parks within the resort are in the pipeline, which will pave the way for many more hotels. dentons.com

buy a dozen from the outset as I can assure you you’ll want more – that way, you’ll avoid having to take your place at the back of a lengthy queue.

Founder and Managing Director

Just back from her culinary exploration of Chinese cuisine, Maya Bekhazi Noun, founder and managing director of The Food Studio, provides us with an in-depth look at Shanghai’s authentic culinary scene

A call for new hotels

Coffee for locals, tea for me Although coffee seemed to be rapidly increasing its share of the hot drinks market, with a great many fresh-roasting, freshground, fresh-brewing style coffee concepts in evidence, we tourists remained intrigued by the tea offerings available. Found on each street corner and commanding lengthy queues, the city’s Chinese-style milk tea concepts clearly remain hugely popular. The vast choice of hot and cold tea selections included fruit, thick foamy cream, chewy tapioca bubbles and other herbal jelly varieties, including the delightful coconut jelly (nata de coco).

A thriving street food culture Wandering off the main road into some of the city’s narrower alleys, we came across an all-encompassing abundance of street food. Shanghai clearly still boasts a culture of cheap, clean and easy-to-find street food. Peking duck rolls - crispy duck morsels in very thin pancakes, topped with hoisin sauce, green onions and cucumber juliennes – quickly became a firm favorite. My suggestion is to

The inexplicably popular congee Given that this dish is essentially a fairly bland porridge made by boiling rice in unsalted water, it’s difficult to understand why locals are so passionate about it. Somewhat gluey, glutinous and lacking in flavor, it’s found everywhere and eaten at any time of the day. I spotted congee at the breakfast buffets of five-star hotels, being sold by vendors on street corners, as a side dish at restaurants and even at top chefs’ tables!

The international scene Shanghai is home to many award-winning restaurants, featuring beautiful interiors and truly amazing food. A few to look out for are: Mr. and Mrs. Bund, Flair, El Willy, Jin Xuan and Lost Heaven And of course, there's the international chains, such as Hakkassan, Joel Robuchon and Jean Georges, among others. Many top venues also offer locally-sourced ingredients, such as fresh black truffles, caviar and high-end charcuterie, as well as a selection of rich, local wine. food-gallery.com AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

RESTAURANTS

AL FALAMANKI

SPREADS MIDDLE EASTERN HOSPITALITY

Authentic Lebanese café concept Al Falamanki has just opened its second branch in Beirut and third outlet regionally, facing the iconic Pigeon's Rock. Tony Ramy, CEO of Mood Village, the company behind Al Falamanki, continues to make strides in his aggressive, grassroots campaign for Beirut’s culinary dominance in the Middle East Al Falamanki opened its first branch in Sodeco, Lebanon, in 2008, taking the form of a nostalgic café that transports visitors back to 1960s’ Beirut. The venture was founded by a group of entrepreneurs with a repertoire of successful F&B and nightlife destinations: Najib Abu Hamza, Tony and Ted Ramy and Mario Jr. Haddad. Back then, traditional shisha cafés were not branded nor had a specific Lebanese menu. Thus, Al Falamanki

HOSPITALITY NEWS ME | AUG-SEP 2017

tapped into an opportunity, giving a Lebanese café a genuine identity. A decade later, dozens of similar concepts have popped up, inspired by this novel idea.

Big heart, big location Named after Khalil Al Falamanki, a Lebanese wrestler-turned-bodyguard, a second branch in Lebanon for the restaurant was never on the founders’ agenda, until they came upon an appropriate location on Beirut’s shores. “Raouche (Pigeon's Rock) is an iconic Lebanese landmark and so is Al Falamanki. It was the perfect match,” Tony Ramy told HN. The new outlet stretches over 1600 square meters of space, split between an indoor and an outdoor area, and spread over three levels, with the capacity to seat 750 people. With this new addition, Al Falamanki’s family has grown to 500 employees, including Sodeco and Dubai team members. Investment in the project is over USD 2.5 million, excluding land and building costs.

Specialty food Most items on the menu echo authentic Lebanese flavors, namely 'fattouch', 'fatteh' variety, fava 'hommos', the 'balila' and veggies

Raouche

found alongside the 'kafta' (minced meat) with 'tahini', served in clay dishes. In addition, the new menu includes a selection of finger foods and seafood appetizers to complement the new location.

Beyond social responsibility Prior to opening the new Raouche branch, Al Falamanki organized a campaign to clean up the surrounding beach area. The clean-up drive is one of the company’s key CSR initiatives, reflecting its commitment to environmental conservation and the protection of Beirut’s coastline. Furthermore, due to the restaurant's strategic location, the company took it upon itself to light up

Raouche

Sodeco

Dubai

Dekkanet Al Falamanki

the iconic Lebanese landmark, Pigeon's Rock. "It was a personal initiative, but an important one, not only for our guests, visiting in the evening, but for the city in general," Ramy said.

Al Falamanki abroad Al Falamanki has managed to export Lebanese traditions to the region through its successful outlet in Dubai. Opened in 2016, the standalone venue faces the Four Seasons Hotel on Jumeirah Beach Road. Spanning a 2500 sqm site and benefiting from a large company investment of USD 6 million, the outlet has managed to turn heads in the UAE, gaining the status of a true landmark.

Dekkanet Al Falamanki is a convenient, agro-retail boutique, offering a wide variety of provisions from many of Lebanon’s villages, ranging from pantry and dairy products to vegetables, bread, pastries and sweets. The concept has also been exported to Dubai, where the rural-inspired store sells some of the goods and produce found on the restaurant’s menu, to provide people with a taste of Al Falamanki to take home. These include spices, olive oil, various flavors of jam, pickles, organic soap and herbs, all of which preserve the spirit of authentic Lebanese production, in addition to designers’ home products and kitchen wear. alfalamanki.com

AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

RESTAURANTS

Cipriani

FOOD AND ENTERTAINMENT WITH THE

BULLDOZER

How would you describe the F&B scene in Dubai?

Bulldozer Group’s impressive portfolio comprises several F&B and nightlife destinations in Dubai, including Cipriani, Novikov, Sass’ Café, Downtown Toko, Socialista, Eshak, and VIP Room. Evgeny Kuzin the group’s founder and managing partner, gives his take on the emirates’ ever-developing food scene and tells HN that standing still isn’t an option 66

HOSPITALITY NEWS ME | AUG-SEP 2017

When we look at Dubai’s F&B industry, we realize competition is at its fiercest. Dubai has undergone drastic changes and rapid development over the years. It’s vital that we keep pushing the boundaries and avoid becoming complacent with our brands and end offerings to the consumer. We are continuing to expand our portfolio by not only tapping into the finest F&B brands that we can bring to the GCC, but also exploring local, homegrown concepts. However, we are well aware that it’s not only about the brands we bring in, but also the offering itself, which needs to be unique and create a mark in Dubai. The emirate already boasts the best brands in the world, so we always evaluate the value proposition of the offering and how it can differentiate itself.

date is our ability to employ and partner with the best talents in the market. There’s no substitute for a team that has years of knowledge and hands-on experience; with partners of this caliber, we are able to not only navigate, but also set trends in this fastpaced industry.

What makes you stand out? It's a combination of factors, from the core offering of the food and entertainment, to the designs, exteriors, attention to small details and sensibility. We also believe that creating the right ambience is essential if a destination is to become the ultimate hot-spot. For example, people might not necessarily enjoy excellent food if the service is poor or the setting unattractive. Due to the intense competition across the F&B and nightlife scene, it’s vital that all the elements work together in harmony.

What impact has Bulldozer Group made on the local F&B landscape?

What challenges have you faced and how did you address them?

At the Bulldozer Group, we pride ourselves on the concepts that we introduce to the Middle East, but most importantly, the fundamental factor behind our success to

The major changes evident in Dubai’s F&B scene have taken place in less than five years. The emirate has become home to numerous new and diverse concepts that

Novikov

The Hobo Club

Movida

Novikov

span the spectrum of F&B and nightlife offerings. In 2012, you could easily open a club or restaurant and were guaranteed some degree of success, but that’s not the case today; the market is saturated with F&B and nightlife venues and brands have to be very clear in their vision and offering if they’re to survive. We continue to retain our leading position in the market because we know who our target audience is and what we can offer them. Moreover, we are always adding new elements for our guests to experience. Ensuring that our guests don’t become bored with us is an ongoing exercise.

What additional opportunities are you exploring in the market? Aside from bringing high-end, well-established concepts to Dubai, we’re also focused on homegrown concepts and the casual dining scene. These have tremendous potential to grow organically, if executed correctly.

As a Russian group, did you encounter challenges integrating in Dubai? Dubai is multicultural, with most of the emirate’s population made up of expats of different nationalities from various countries, so integration was not really an issue. The

emirate has proved itself a receptive market and business there continues to boom, making it an attractive destination for new, international enterprises as well.

number of hospitality companies are making inroads into the emirates. The number of tourists, too, is continuing to rise, with even more visitors expected for the upcoming Expo 2020 Dubai.

The market is saturated with F&B and nightlife venues and brands have to be very clear in their vision and offering if they’re to survive

Which regional markets interest you?

What upcoming projects do you have in the pipeline? Our current portfolio consists of 10 F&B and nightlife concepts and we’re planning to open eight more in the UAE, together with an additional outlet in Saudi Arabia, before the end of 2017. These outlets will include a mix of international, regional, local homegrown and possibly casual dining concepts.

Do you think F&B and hospitality projects remain an attractive proposition for investors and investments? The hospitality sector in Dubai is not only expanding, but ever changing. A growing

Saudi Arabia has a thriving economy and affluent population, which makes it one of the most attractive markets in the region. Its F&B industry is growing, which signals great potential for us to tap into.

ABOUT BULLDOZER GROUP Dubai-based Bulldozer Group is a boutique investment and brand management company. Since its inception in December 2011, the Bulldozer Group has opened brands that are aligned with celebrated restaurateurs at the forefront of the global industry. These brands include: Movida, VIP Room, Toko Dubai and Sass Café Dubai, Cipriani, Socialista, Eshak, and The Hobo Club. bulldozer-group.com

AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

F&B

RETURNING

TO THE SOURCE

Martin Riese, the USâ&#x20AC;&#x2122;s only water sommelier

That reality, however, has been gradually changing, due to a broad range of factors, chief among which is growing health awareness, lifestyle and an ever-expanding hotel and F&B scene. Consequently, manufacturers of bottled water are promoting new ranges of products aimed at satisfying these shifts in demand. At the same time, and in line with broad-based bids to add value, the global F&B industry has moved to implement various strategies aimed at distinguishing the dining experiences offered to their customers.

Creating a niche market According to Allied Market Research, the global bottled water market was valued at USD 169.8 billion in 2015 and is expected to rise to USD 319.9 billion by 2020. Growth has been particularly strong in the GCC markets, as evidenced by the 1500 different water brands registered with the Dubai Municipality in 2011, according to reports. The crowded market has proved

HOSPITALITY NEWS ME | AUG-SEP 2017

While the human body is made up of over 50 percent water, most of us have little, if any, specific preferences when it comes to the drinking water we consume. This may be due, in part, to the fact that many consumers canâ&#x20AC;&#x2122;t tell the difference between one variety of water and another. As a result, and depending on the context, purchases by the general public are usually driven by price in relation to quantity, planned use and the selection of products available

to be especially taxing for premiumbranded waters operating in the Middle East region and, though the challenges facing the F&B industry are clear, the best strategies remain elusive.

The trend in food is for health and farm-to-table concepts, you want to know where your food is coming from, the same will happen with water Some F&B managers are paying closer attention to the brands of water they give their guests, thereby focusing less on higher profit margins and more on quality of the experience. Other hospitality outlets are offering their guests rare bottled water brands that are unavailable in the retail market, creating a niche for themselves by adopting a strategy based on brand

exclusivity. Despite these approaches, however, the biggest barrier to growing this kind of offering stems from the need for a different kind of education that few seem to have.

Insight from a global authority To shed further light on that matter, HN spoke to Martin Riese, the USâ&#x20AC;&#x2122;s only water sommelier and a global authority on the subject. Riese currently holds the position of general manager at Patina, an awardwinning, Michelin-starred restaurant, located in the heart of Downtown Los Angeles, serving contemporary French cuisine with international influences. In 2013, he became the first professional in the world to offer a water menu at a restaurant. Riese believes the biggest challenge in the water market is that consumers remain under-informed about the

BUSINESS

F&B

S. Pellegrino S.Pellegrino flows naturally from a spring in Val Brembana, in the foothills of the Italian Alps in the territory of San Pellegrino Terme, near Bergamo (Lombardy). The water arrives at the surface naturally enriched with mineral salts. S.Pellegrino water has great presence thanks to its lively and long-lasting bubbles, which feel creamy on the palate and produce a slightly salty taste, well-balanced with acidity to give an overall refreshing, thirst-quenching feel. Sweet Smooth

Salty Complex

Available in: Sparkling TDS: 1109 mg Content: Sodium 36 mg Magnesium 53 mg Calcium 181 mg Home: ITALY

There are wine menus, selections of beers and liquors, so why shouldn’t I offer guests a water menu? different qualities of water available. “Consumers are confused when it comes to the question of the source of water,” he said. “What is purified, what is spring, what is mineral water?” That reality, however, hasn’t stopped a small number of fine-dining restaurants and five-star hotels from offering water menus, a novelty they hoped their guests would find fascinating. An advocate of this concept, Riese pointed out that making options available to customers has long been a practice in the restaurant business. “There are wine menus, selections of beers and liquors, so why shouldn’t I offer guests a water menu?” he asked. Though the implementation of such a strategy can seem daunting, Riese explained that introducing a water menu lends the restaurant several key benefits. Firstly, he pointed out, “When you offer your guests a variety of non-alcoholic beverages, they will be tempted to try something new instead of asking for tap water right away.” Such offerings, Riese added, raise the restaurant’s return on investment (ROI) and add more value to the total dining

HOSPITALITY NEWS ME | AUG-SEP 2017

experience. “In all the restaurants where we implemented a water menu, water sales rose between 100-350 percent,” he said. “The water menu is not just a fun idea, it is an extremely important revenue center now for restaurants.” Riese explained that while the prices of the water on the menu range from USD 5-20, the high-end varieties are proving popular. “We actually now sell water in the price range of USD 12-20 all the time,” he noted. “You can definitely build your guest average with the water menu.” Gradually, it seems, diners who are exposed to these offerings develop a soft spot for water. Riese is convinced that it’s an investment. “My message is always the same; give water value and honor water,” he said. “People will start to understand the importance of water and recognize that it’s way more than just a side beverage.” In an attempt to expand its market share by drawing on this trend, Nestlé, which produces a whopping 50 brands of bottled water, has created a sommelier education scheme for regional F&B operators, as well as a water codex, comprising three books dedicated to empowering the F&B community. It has also been reported that a number of companies are taking matters a step further by investing in water sommelier

Perrier One hundred and twenty million years ago, on the Languedoc plain in Southern France, rainwater seeped into the ground as volcanic gas rose up to the surface. When the water and gas met, they both forced their way up through the open fissures in the limestone and gushed with the release of carbonic gas. The water bubbled as if boiling, earning this place the name, “Les Bouillens,” meaning ‘bubbling spring’ in French. Sweet Smooth

Salty Complex

Available in: Sparkling TDS: 475 mg Content: Sodium 9,5 mg Magnesium 6,8 mg Calcium 155 mg Home: FRANCE

The biggest challenge in the water market is that consumers remain underinformed about the different qualities of water available

Sohat, from the heart of the protected Falougha mountain, celebrates a Lebanon that still exists, in spite of everything.

#untouchedlebanon

BUSINESS

F&B

education. However, some experts believe that this approach needs to be adopted throughout the entire region to be effective. One solution, some say, would be to have F&B operators and bottled water suppliers join forces to create and introduce plausible strategies to unlock the market’s potential, while also educating people.

At present, the learning curve remains steep. However, experts are confident that just as consumers began making distinctions between Australian and Brazilian beef, they will also start developing preferences when it comes to water. Riese sees the trend as a natural industry progression. “The trend in food is for health and farm-to-table concepts,” he

concluded. “You want to know where your food is coming from. The same will happen with water. People will start to ask questions about the source of the water they’re being offered and, in the future, will demand water from untouched, naturally-occurring sources. I therefore envision major success in glacial, spring and mineral waters.”

THE GLOBAL MARKETS

Gary Hemphill, managing director of research at the US Beverage Marketing Corporation, shares with HN a general overview of the status of bottled water in the US, echoing international trends.

Capping a remarkable, decades-long streak of vigorous growth, bottled water passed a major milestone in 2016, when it surpassed carbonated soft drinks to become the largest beverage category by volume in the United States. The bottled water category is experiencing solid growth, mostly driven by consumer demand for healthier refreshment. Singleserving sizes of those bottles became the most popular option, driving overall growth of the category and accounting for the majority of its volume. beveragemarketing.com

What is TDS? TDS stands for total dissolved solids. It measures the mineral composition of any given water, creating a specific flavor profile and character. TDS levels determine how much sodium, magnesium, calcium and other minerals are present in a water type, therefore letting you know how your water of choice pairs with your food. In water menus, these levels begin at under 10mg at the low end, and go all the way up to above 3000mg at the high end.

Source: Beverage Marketing Corporation

Regions

2011

2012

2013

2014

2015

2016

Asia

North America

Europe

South America

Africa/ Mideast/ Oceania

Global Bottled Water Market / Share of consumption by region 2011 / 2016 Figures are in percentages

A SPLASH OF WATER FROM THE MIDDLE EAST Lebanon SABIL sabilwater.com

SHAFA shafawater.com

SANNINE sannine.com

UAE MASAFI masafi.com

SOHAT nestle-waters.com

FALCON SPRING falconspringwater.com

TANNOURINE tannourine.com

AL GHADEER alghadeerwater.com

RIM rimwater.com

Kuwait AL-RAWDATAIN alrawdatain.com

TALAYA talayawater.com

ABRAAJ

HOSPITALITY NEWS ME | AUG-SEP 2017

abraajwater.com KSA HANA hanawater.com ALOYOUN aloyoun.com.sa Qatar RAYYAN rayyanwater.com SAFA safawaterqa.com ALMAS almaswater.com

Water classification Purified water Derived from a municipal source and filtered through reverse osmosis, with a minimum amount of added minerals. Spring water The most authentic form of water, sourced from natural springs. Mineral water Comes from natural springs and must have a mineral content, also known TDS, of at least 250 parts per million (ppm). Distilled water Water that has had many of its impurities removed through distillation. Distillation involves boiling the water and then condensing the steam into a clean container. Long-term consumption of distilled or demineralized water containing low TDS levels is not recommended and can be linked to increased diuresis, body water volume, serum sodium concentrations, decreased serum potassium concentration and increased elimination of sodium, potassium, chloride, calcium and magnesium ions from the body. Simply put, drinking distilled water for an extended period of time can jeopardize your health.

BUSINESS

MARKETING

Chadi Chidiac, managing partner of PROTOCOL, breaks down the key elements of an effective restaurant marketing plan and provides an explanatory and readerfriendly roadmap that can be used to successfully design an action plan for the year ahead The formulation of an effective marketing plan for any given restaurant is a tedious job, unless you do it with a pro or like a pro. There is no reason to conceive a 15page plan with minimal font-size and no spacing document if you and your team won’t be reading it. The more you write, the more you're likely to repeat yourself, or overanalyze your strategies. The key to a good annual marketing plan (yes, annual, since PROTOCOL strongly advises a mandatory revisit and revision of the plan on a yearly basis) is conciseness.

(12-month period). It should highlight each and every event and promotion that you intend to run before the end of December, and the outcome you are expecting to explore as a bottom line. By pinpointing your promotions ahead of time, you’ll be far less likely to go overbudget on unforeseen or unexpected costs and expenses.

Structure and skeleton of a marketing plan There are a few key things to consider in your plan, regardless of how you put it together. These considerations are: • Goals set for the year • Marketing budget (annual) • Preset calendar of all intended events and promotions • Strategies to use • Expected outcomes to achieve

Your goals set for the year Before the kick-off of any plan(s), it’s important to visualize and define your overall marketing goals for the year. These should be objective-oriented and measurable, so you can gauge how far you’ve come over the plan’s period (12 months).

Marketing plan by definition

A few goals to consider implementing

Think of your marketing plan as a milestone chart for the upcoming year

• Boosting your yearly gross revenue (YGR) by [x] amount

HOSPITALITY NEWS ME | AUG-SEP 2017

• Increasing online reservations by [x] • Increasing hits volume or clicks on your website by [x] • Increasing your conversion rate (the ratio of web-visitors that converts into confirmed reservations or bookings) by [x] • Increasing social media (Twitter/ Facebook/Instagram) followers by [x] • Increasing newsletter’s subscribers by [x] • Increasing mentioning of the brand in the media by [x] • Raise positive reviews on major search, discovery and reviews service pages (TripAdvisor/Yelp/Zomato) by [x]

Annual budgeting Setting an accurate annual marketing budget can be a daunting task, because there’s no way to identify or to quantify how successful your promotions are going to be; they’re simply a guess or a hunch. It’s commonly accepted as an industry standard to spend between one and 10 percent of your sales on marketing, though this depends on several factors, like the type of concept and its operating profit margin. When you propose an annual figure, bear in mind additional expenses, like subcontracting pro-consultancy, hiring freelancers, attending marketing seminars and conventions, as well as other training. Then decide the rate and percentage

rate, cost per click, and/or number of bookings. Referrals, as well as testimonials and PR mentions are expected to ramp up significantly once systems are set (customer referral offers, survey or comments cards by order, in addition to press releases for every theme night).

EFFECTIVE ACTION PLAN FOR RESTAURANTS point of your budget to be allocated to all different advertising mediums. Consider historic data (if available) and what’s worked best for the entity in the past. If you’re gaining traction through below the line marketing (BTL) with social media like Facebook, for example, then drive more of your spending power and investment into that. According to the latest study conducted by PROTOCOL in April, which covered 1050 F&B establishments in the MENA region and Europe, 68 percent of SMEs found email marketing and social media to be their most effective marketing strategies, closely followed by social media engagement (67 percent). In other words, a considerable number of small businesses have become strong believers in investing in social media as a costeffective medium with a high reach factor and penetration ratio.

Calendar of promotions to consider In order to successfully preplan which promotion you want to run, draft out a calendar breakdown of significant holidays and local events. Based on that, consider the events you would like to turn into promotions. Bearing in mind that any event or promotion should be compatible, so match your restaurant concept and customer profile. Aim for slow months (e.g. the holy month of

Ramadan) where an unusual promotion could boost revenue.

Strategies you plan to use Once you’ve set your promotional days, break each one down so you can formulate a more detailed strategy. Your communication strategy should take into consideration the crowd which your advertising campaign will target, the advertising medium(s) you will use, and performance measure using metrics tools. Example Promotion: Valentine’s Day dinner (4-course set menu) / USD 120 per person. Audience: Social media followers. Purpose of promotion: to capture 75 confirmed bookings. Marketing channel(s): Facebook and Instagram paid advertising. Budget: Graphic design fees, Facebook boost, Instagram advertising = total budget. Team assignments: Karen (marketing manager) – social media posting and measurement; Mireille (designer) – graphic design of ads; Sami, Jihad, Bassam (service staff) – in-house promotion to customers. Note deadlines: Graphic design to be completed by [x] date. Measurement metrics: Click through

PROTOCOL assumes from experience that the average customer will return every other month leading to a transaction rate of 0.5 month-on-month (m-o-m) on a monthly basis for a given turnover figure of USD 1.4 million ending first year. Expectations are for a slight increase over the next two years, along with a corresponding rise in the average transaction per customer.

It’s commonly accepted as an industry standard to spend between one and 10 percent of your sales on marketing Sales projections Sales projections are based on first-timer meals rising from four to six percent each month on the back of constantly remodeled and bolstered marketing efforts and regular meals increasing by three percent per month. First-timer meals are a huge contributor and have great potential to become regular meals, as many of these first-time customers will convert to regular meals. The top-line revenue is usually the same for both types. However, there are generally promotional factors with high discounts for first-timer meals which are accounted for as a direct cost of sales, bearing in mind that growth will also begin to slow starting in the third year or after 36 months. This occurs as restaurant sales reach their maximum and hit a capacity plateau.

Target outcome It’s imperative to set just one realistic goal for each promotion. Saying, “I want to attract more customers,” isn’t enough. Be pragmatic and objective about how many bookings you need to break even. “I want to attract 75 confirmed bookings,” is better. It’s also important to acknowledge any obstacles that could get in your way, so you can plan around them. For example, competing restaurants might be offering a similar event on the same day. Being aware of this gives you time to think what you can do to make your promotion stand out or what method of advertising you can use to reach a wider audience. There are no shortcuts when it comes to writing a marketing plan for your restaurant, so map it out in a way that makes sense to you.

protocollb.com AUG-SEP 2017 | HOSPITALITY NEWS ME

BUSINESS

ARCHITECTURE AND DESIGN

STANDOUT ART

make the perfect spaces to support a local art scene and distinguish one facility from the competition.

Right from the start

Hotels and restaurants across the globe are investing millions in art. Many believe that in the current competitive climate, such initiatives can make an important difference to the guest’s experience. Lindsey Gildea, creative director at Dubai-based 17A Art Consultants, speaks about art as an added value in hotels and F&B outlets While guests booking stays at UAE establishments might not necessarily be choosing a hotel or restaurant on the basis of the paintings displayed there, art can stop us in our tracks. If done well, it will be remembered and talked about. For example, the Raffles Hotel Le Royal Monceau in Paris has over 300 revolving artworks. It also has an ‘Art Concierge’, as the property’s mission includes being dedicated to art and culture. While the UAE art market is strong, it is also still evolving. We might not be quite in line yet with how international hotels are engaging with art, but growth understandably needs to be organic. Hotels

HOSPITALITY NEWS ME | AUG-SEP 2017

Integrating art early on into design makes for the perfect scenario, as it allows the art and interior to develop together. There are many questions that need to be asked when considering art for a hotel, just as when approaching any new design. These include: What is the context? What experience do you want to give your guests? Do you plan to include local, national and/or international artists? Is the focus on emerging or established career artists or a mix? Through our relationships with regional artists and the local art scene, as well as international artists, we are able to curate pieces that will create an impact in a hotel, introducing works that interact with the interior design and enhance the story being conveyed. As an example, when commissioning the murals created for Dubai’s Buddha Bar, we ensured that they were exactly what was required for the interior. Steve Chambers, a Dubai-based artist, used a variety of methods to create the murals. Initial sketches and samples were submitted to ensure that the colors, reflections and weights of line achieved the desired effect in the light of the interior. La Villa Hotel’s artwork was commissioned to reflect the contemporary and chic surroundings of City Walk’s architecture and retail environment. Dubai-based artists Melvin San Miguel and Kriti Dixit worked on devising the murals within each of the

hotel guest rooms. His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s quotes from ‘Flashes of Thought’ were made three dimensional in stainless steel and installed on each level of the hotel. The Intercontinental Dubai Marina’s artwork includes the Giacometti-inspired sculptures, named ‘The Travellers’, two 7.5-meter-tall pink stainless steel geometric sculptures, which dominate the lobby entrance. The calligraphy murals by well-known Omani artist Saleh Shukairi and other art installations make this hotel an art gallery in its own right.

Pleasing guests Hotels increasingly want artwork to respond to the needs of their guests. Visitors seek a hotel reflecting their identity or one, which projects an image of who they aspire to be. This is why art needs to stand out and evolve in the same way that restaurants introduce new flavors or food presentations, giving the guest a new and interesting experience. Each piece is carefully considered for each space, not just in size and design, but also with the guest’s experience in mind, along with its relationship to the adjoining space and artwork. Guests can have the information about the artwork and artist sent directly to their mobile devices. In one of our recent hotel projects, we curated the artwork so the guest could be taken on a journey through the hotel and actually learn about the history and heritage of the country through the aesthetic of contemporary art. 17a-artconsultants.com

10 TIPS ON HOW TO BUY ART FOR A HOTEL ART-INVOLVED send out a message to guests that you are a connoisseur. 7. Abstract art conveys the image of a trendy hotel, which is appreciated by most guests. Designer furniture could also be important.

Laure d’Hauteville Founder and Fair Director

Beirut Art Fair 1. Buy colorful and large pieces of art, as they have a greater impact. 2. Place big sculptures and artistic photography in common spaces. 3. Refrain from placing sculptures in rooms as they risk getting broken. 4. Stay away from politically related and dark-colored artworks reflecting sad subjects. 5. Refrain from using posters, videos and installations. 6. Oil on canvas are more valuable and

8. Buy art pieces from local galleries that promote local artists. These galleries will be happy to tell their buyers that your hotel is also their customer, providing you with additional advertising. It’s very important for your clients to know that you care about the heritage of your country and supporting local artists. 9. Making art magazines or small guides about local art galleries available to guests is a nice touch. Consider letting the local Ministry of Culture know that you care about the country’s heritage. You will then benefit from the help of an official authority in developing your image in a way that differentiates you from the competition. 10. Use your art collection as an advertising medium. Whether through social media or your website, broadcasting your passion for art will set your hotel apart and enhance your reputation and image as a contemporary property. beirut-art-fair.com

As the first edition of the Beirut Design Fair draws closer, HN spoke to Guillaume Taslé d'Héliand, founder and director, and Hala Moubarak, cofounder and head of exhibitors relations, to find out more about this milestone event

Why did you decide to found Beirut Design Fair? Taslé d'Héliand: Our vision was to promote recognition of Lebanon’s proper place, at the forefront of creativity in the region. Beirut Design Fair aims to become an annual meeting place for discovery, exchange and business opportunity, for both amateurs and professionals of design throughout Europe, the United States, the Middle East, the Gulf and Asia.

How important is design in Beirut? Moubarak: Lebanon is distinct from other Arab countries, thanks to its Mediterranean positioning, its blend of cultures and the urban character of Beirut. We have a history and a collective memory, a spirited nature, and the freedom to create without limits and in complete independence. The work of Lebanese designers is the fruit of innovative, moving and elegant ideas; sometimes, research and the desire to preserve ancestral craftsmanship can provide an invaluable creative inspiration.

How do you inject design into a hotel or restaurant’s various facilities?

WHEN PASSION FOR ART AND HOSPITALITY MEET

Gordon Campbell Gray Founder

Campbell Gray Hotels

“Hotels are creations. Design, adventure, food, service and excitement are surely all ingredients which you would hope to find in hotels. Art must also sit high on this list. It has always been for me a crucial aspect of living, whether at home or when traveling. To summarize, art should always be a vital part of the creation of an exciting and great hotel.”

Taslé d'Héliand: Decoration is one of the most elegant ways in which a hotel can differentiate itself. It contributes instantly to creating an atmosphere. This ambience may evolve over time or according to the seasons, for example. Apart from the colors, floor coverings and curtains, the first components of the decoration will be furniture - contemporary, antique, vintage, design or simply functional, alongside art, which can also be contemporary, modern or classic. Some hotels have made art or design one of the essential components of their positioning; in Beirut, I’m thinking, for example, of Le Gray Hotel and Smallville Hotel, both of which have clearly established themselves with contemporary art and design, in very different registers. AUG-SEP 2017 | HOSPITALITY NEWS ME

ARCHITECTURE AND DESIGN

VIK Master Suite, Viña Vik, Millahue, Chile - a carbon-fiber bathtub suspended from the ceiling - designed by London’s Splinter Works Studio

THE UNION OF

FORM & FUNCTION

In a fast-paced, noise-filled world, the bathroom, which previously simply served the standard hygiene needs of its user, is transforming into a space that combines these practical functions with a second, stressrelieving element To achieve this multi-layered effect, the focus should be on leveraging size, without compromising comfort and efficiency. HN creates a checklist of sorts to assist anyone looking to obtain the basic desired configuration without the hassle of sifting through the many available styles, which can often be overwhelming. Whether you’re considering revamping an older bathroom or plan on designing your own from scratch, the following

HOSPITALITY NEWS ME | AUG-SEP 2017

items constitute the central focal points that combined, will help leverage comfort, style and functionality.

Tubs and showers In general, and if space permits, three options are plausible, namely: a vintage claw-foot bathtub; a built-in soaking tub; or a freestanding shower. Despite the fact that all three serve the same basic purpose, there are inherent, subtle differences in what they offer. On the one hand, and if you happen to value modern luxury and comfort, then choosing a light-weight basic tub or one with whirlpool features will give you something akin to a spa experience at home. However, if the goal is efficiency, then a walk-in shower or even a steam shower configuration allows more room for additional amenities. Furthermore, modern, high-efficiency showerheads allow the user to control water-flow without it affecting pressure, an ideal choice for a customized and environmentally-friendly experience.

Sinks

While some believe that a sink needs to match the tub/shower, others like mixing things up for an eclectic, rather than homogenous feel. Nonetheless, when considering which model and what size sink to buy, thought should be given to who will be using it; whether it’s intended for guests, an individual or a family. Once that has been determined, choosing a wall-mounted, stand-alone, semirecessed, above-counter, or drop-in basin will depend on the desired visual sweep. Another factor that comes into play is shape, with options to choose from ranging from square, oval, scooped, Zen and round to rectangular models. Finally, there’s the choice of material. Aside from the standard porcelain, the market offers a choice of ceramic, chrome, glass, brass, copper, stone and concrete.

Faucets To bring out the best in a basin, thought will need to be given to other elements and accessories. The faucets are

cntraveler.com

BUSINESS

ARCHITECTURE AND DESIGN

Presidential Suite, Le Royal Monceau Raffles Paris all-mirrored washroom - designed by Philippe Starck

usually attached to the sink. However, installing wall-mounted faucets is an alternative well worth considering, providing a clever way of saving space and maintaining a minimalist feel. Similarly, while opting for traditional chrome is always a safe bet, if you’re a lover of fashion, brass may well be for you. This in-vogue material will bring depth and luxury to a sink, with the added bonus of concealing water spots and finger smudges. Offering several benefits, high-efficiency faucets aerators will appeal to many more potential users than simply the environmentally conscious among us. These accessories are easily installed and will significantly reduce water use.

Modern, high-efficiency showerheads allow the user to control water-flow without it affecting pressure, an ideal choice for a customized and environmentally-friendly experience The vanity unit Achieving a perfect match when pairing a cabinet or vanity unit with a basin of choice involves maintaining a certain harmony so as not to disrupt the overriding flow. The general rules are clear on this matter and the application a straightforward one; if the sink is relatively small or has a minimal design, a vanity unit of equal size will serve the dual purpose of hiding the sink’s plumbing while adding some storage space. On the other hand, if the basin

is of the larger variety, then installing cabinets makes more sense, since these have greater capacity and can therefore accommodate more users.

Toilet bowl Finally, when it comes to choosing a commode, three main factors, which pertain to, size, shape, and flushing technology, should be given serious consideration. Most of these parameters can easily be sorted out based on a user’s weight and height. In other words, the taller one is, the bigger a toilet needs to be to comfortably accommodate all physical faculties. Yet regardless of that, a choice between an elongated, or a round toilet bowl is important when it comes to making specific considerations. In general, a round bowl saves space while an elongated one may come across as somewhat obtrusive. One other concern is the type of toilet, the choice of which mainly depends on a set price point. Though a two-piece toilet, which comes with a separate water tank, is cheaper, a costlier integrated one is easier to clean. Flushing technology is of major importance, yet ironically, is often only given the thought it merits when a problem arises. If the water tank is small and depends on gravity for waste disposal, it may well make sense to invest in a bigger tank. However, if the plumbing is designed to lend assisted-suction, then a small tank should be sufficient.

Brittany Single Bathroom Vanity

Grohe Essence Colour range

With much to think about when it comes to bathroom installation and even more to consider, it makes sense to keep things simple. Focus on the basics and the other elements will follow. Sterling by Kohler Latitude® 995 Single Basin Drop In Utility Sink

HOSPITALITY NEWS ME | AUG-SEP 2017

cntraveler.com

BUSINESS

SERVICE

THE ICING ON THE CAKE If you could have all of your wants, what would you have? Would you have an exciting list of amazing things that are off the charts? Or would you have a list of things that look pretty much like what others have? Would it include things that you need? Or would it be a glorious and exciting list of wonderful ideas and dreams that would make people step back in awe? A blank sheet of paper is perhaps one of life’s greatest gifts. It provides us with an unlimited opportunity for unrestrained creativity. Here’s what I want you to do:

6 steps to a brilliant future Take out a sheet of paper. A3 size is really good for what we are going to do. Now, get a pencil or an ink pen; either are good because they are both natural elements that will flow easily as you get creative. Set a two-minute countdown timer/alarm on your phone. Once you are ready, start the timer and look at the white page; concentrate your attention on it for two full minutes, without writing anything down. Just look at it and as you look at it let your imagination run wild. Imagine the page as an expression of your inner desires and dreams. See this page as the place where you are going to create your future. As soon as the two minutes are up, restart the timer for another two minutes, then grab the pen or pencil and start to write or draw in whatever direction your spirit takes you. Keep your pen or pencil moving for the entire two minutes. Do not stop. When the two minutes are up, stop and observe what you’ve created. For sure, it will be something amazing. You will reveal things that you subconsciously desire or dream of, things that are deep inside you, things that you truly want and events that you want to see happen in your life. Your page may not be a work of art and, at this stage, that is not important. What is important is that you have used your mind to create something that previously didn’t exist. Every idea was, for a while, just a thought, whether it was the

HOSPITALITY NEWS ME | AUG-SEP 2017

famous example of Edison’s light bulb, or an app for your phone. They all began as a chemical reaction in the brain that translated itself through the process we just undertook: converting thoughts into drawings, lists, sketches or scribbles.

Thoughts become things If you turn your attention to the page that you’ve created, you’ll find there’s an idea there that has not yet become real. Something that you imagine that has not yet materialized or not yet been realized. Once you see your page, you may notice something there that does not yet exist, some future desire. Your mind will recognize this and begin to make it into a reality. Keep this paper somewhere safe and put a reminder in your phone for six months from today to open up the paper and look at it. You will find that something you drew or created or thought today will already have become a reality. Then you will understand this process. Once you see that change, repeat the exercise above, but with a greater sense of creativity and ambition. Desire and dream more, and more will appear.

Creating the future The true leadership trait that you need, above anything else, is the one that will inspire you to take the time to set aside a day to pursue the possibilities of what lies ahead. How many of you would like your company to be the ‘best in category’, or ‘best in country’ or ‘best in the world’? The difference between reading this and thinking, “nice idea, but probably not possible,” to reading this and deciding, “why not?” is what will determine the outcome of your thought. To decide that you will be the best at something is a fundamental shift in mentality. It means that deviating from excellence is now unacceptable and every business interaction becomes a learning experience; one that must be examined and deconstructed to find the best way to work, so that next time you do the same activity or task, you do it as well as last time or better.

HN exclusive: The final article in a series of six by master trainer, Mark Dickinson, focusing on the power of Transformational Training No mistakes! In this mindset, there are no mistakes, only learning opportunities. You see, life is all about perspective. In our work and personal lives, we often live with our hands over our eyes, meaning we concentrate intensely on one problem and become so close to it that we cannot see anything else. The problem, like the hand, becomes the sole focus of our mind. But by making a very small shift, almost subconsciously, we can move the problem further away and begin to see many other things, just like the hand. Get a problem into perspective, give it the right background and many problems will become less important. Instead of dominating our attention, they will dissolve, becoming a mere part of the broader picture that that we can see. This provides balance and, from balance will come the ability to solve the problem with relative ease.

Business mastery Mastering business is not a common topic in business today, because it requires dedication and commitment. It demands an unwavering commitment to doing things right every single time we do them, without compromise. Mastering business takes time. It means having excellent processes, well documented and truly practiced on a daily basis, where responsibility and accountability walk hand in hand.

Go deeper Examine each detail of your operation. Understand why things are done the way they are, and keep learning until you fully understand. Engrain good practices into everything that you do, without ever compromising, not even once. The deeper the practice, the deeper the development and, therefore, the more compelling the outcome.

done.fyi

SOLUTIONS

OPTIMIZE YOUR

WORKFORCE

to build systems and processes around those ideals. Then you need to hire people who share such ideals.

Craig Cochrane, senior vice president, human resources, Mövenpick Hotels & Resorts, serves up food for thought on optimizing team members for maximum success When used in a professional setting, the word ‘optimize’ has acquired a slightly negative meaning over the years, and is now often associated in management-speak with cost-cutting or, more specifically, reducing payroll costs. However, this is not an accurate definition of the word, which actually means to make the best of.

Pull in the same direction The first and most obvious technique when it comes to optimizing is to ensure that your teams are motivated and focused on the objectives of the organization. This is easily said, but not so easily done, particularly in larger, matrix organizations, where there may be “micro-companies” operating within a broader brand context. It would be very easy, albeit self-indulgent, to go into motivation theories in great detail at this point, but that is not the point of this article. The best way to get more out of your existing teams is to ensure they are giving 100 percent and pulling in the same direction. People performing at capacity in their roles usually do so because they want to, especially when it comes to work of a creative or cognitive nature. This comes from a culture and environment that motivates rather than a motivational campaign or an incentive scheme. These types of environments don’t come about by accident; they require senior leadership to define what the company stands for, “how we work around here”, and

HOSPITALITY NEWS ME | AUG-SEP 2017

By way of example, one of our ideals at Mövenpick Hotels & Resorts is the personal touch. This means that we are people who like people. We look for contact with each other and try to keep our hierarchy as flat as possible. Therefore, we run an annual Employee of the Year trip, which embodies this. We bring the winners of our Employee of the Year program from around the world to Switzerland for a five-day tour that is guided by the corporate human resources team and other employee volunteers. Our

People performing at capacity in their roles usually do so because they want to CEO is present throughout the trip, and we bond with each host hotel general manager and other colleagues. We choose to give a very personal recognition and unforgettable experience to our employees of the year because this fits with our culture.

Understand the capabilities of your team Another way to optimize your workforce is to provide career growth. It’s healthy for an organization to show career progression possibilities to employees who achieve in the right way and have potential. The battle for talent is a lot less grueling if you are not also fighting yourself. This, of course, includes all of your developmental activities – training, cross exposure, mentoring and coaching – but also involves trusting in your people and taking a few calculated risks. In order to do this, you need a robust assessment system, as well as a set of development tools. To make good quality internal hiring decisions, you need to have good quality performance management and assessment tools; assessment being the key, as this is the part that indicates potential,

in addition to current performance. This is important, as it is where many careers get stuck or poor decisions are made. My reason for saying this is that sometimes, the same attributes that make someone good at one job prevent them from succeeding in a different role. In our industry, this means that it is not automatically the best hotel general manager who will make the best VP operations, for example, because those roles have different requirements. Knowing when to bring new skills and ideas from outside the company, versus developing and growing people from within, requires balance, thought and the best quality information about your own people. We have a strong track record within our company for developing talented hoteliers and giving them opportunities to grow. Every year since 2012, we have filled 70 percent of our general manager (and above) positions through internal sources. We also have 25 percent of the general manager roles filled by people we promoted from hotel manager or executive assistant manager. Sitting behind these percentages is a lot of hard work, good systems and a culture of trust.

Let your teams explore Finally, I would like to offer the idea of creating jobs that offer variety and change to people, as a way of making the most effective use of your workforce. How about removing the shackles of job roles in some parts of the hotel and letting the team attend to guests in whatever way required? Why not hire people who can check in a guest, serve an amazing cappuccino, book a tour and clean a room? For the right people, this could be motivating, skill-building and improve the guest experience at the same time. We want to try something along these lines in selected locations at Mövenpick Hotels & Resorts. Watch this space. movenpick.com

SOLUTIONS

MANAGEMENT

6 TIPS FOR MAINTAINING VENDOR RELATIONSHIPS Challenging and competitive markets make it all the more crucial for restaurant owners to maintain a sustainable and solid relationship with vendors. Omar Maharsi, director of operations at Glee Hospitality Solutions, a company specialized in the Middle Eastern F&B industry, shares a series of tips to help restaurant owners keep things smooth with vendors, while running a successful restaurant business 1. Create a mutually beneficial relationship with vendors Where possible, restaurant owners should try to obtain items from a select number of suppliers and sign long-term contracts that include a credit limit and fixed prices to ensure a sustained and transparent deal. Cross-promotions could also be an option for restaurant business owners to consider offering. If, for example, a vendor offers services which may be beneficial to a restaurant ownerâ&#x20AC;&#x2122;s customer base, proprietors could promote those services in return for discounts or referral fees.

2. Long-term partnerships, better deals and bargain opportunities Long-term partnerships should result in a

HOSPITALITY NEWS ME | AUG-SEP 2017

consistent product, while also helping to avoid interruptions caused by changing suppliers. The greater the number of yearly service contracts with suppliers, the easier it becomes to plan operating budgets. Restaurant owners can also look at working on a rebate agreement, where the supplier will give a percentage back to the restaurant, depending on consumption. Restaurateurs can mutually negotiate beneficial deals, such as cross-promotions. They can also look at consumption and request free-of-charge items for orders over a certain size. Restaurateurs should look at topical dates. If there is a special

Become part of a bigger group that has stronger buying power, since this will help to reduce supplier prices occasion coming up and there is the possibility of placing a larger than usual order for certain products, it makes sense, where possible, to place the order well in advance, allowing time and space to discuss the possibility of securing a better deal. Keeping costs as low as possible by creating dishes from scratch and using local produce wherever possible is good practice, since it will always be cheaper than imported produce. Buying power is a valuable asset for new restaurants. Become part of a bigger group that has stronger buying power, since this will help to reduce supplier prices.

3. Manage timely payments Smart business owners will have a welldefined annual operating budget, which is separated by phases with reasonable revenue goals and created allowing for worst-case scenarios. In this way, the

team will be prepared to handle such situations. One means of managing timely payments is to arrange extended credit limit contracts, which ensure plenty of time for payments and managing cashflow.

4. Understand the shift in business strategies Itâ&#x20AC;&#x2122;s difficult to maintain a successful business in todayâ&#x20AC;&#x2122;s market conditions. Suppliers are keen to avoid credit payments for newly opened restaurants and are quick to halt deliveries if there are any delays in payments.

5. Invest in vendor management Investing in vendor management is important to ensure that communication and documentation between the restaurant and supplier run smoothly. Handling it in-house is not advisable, since this could lead to miscommunication and mistakes in the contracts.

6. Resolve disagreements professionally and know when to search for new vendors The most common issue that causes problems between suppliers and restaurant business owners is late payments. If this happens, restaurateurs must ensure the business is not affected. One way of doing this is by offering cash on delivery payments until credited pending payments are settled in the case of financial disagreements. Issues such as delays in deliveries and inconsistency in products should act as a red flag. Other signs to look out for include sporadic changes in pricing; of course, inflation means that the price of goods will increase, but only moderately. If you are not receiving regular communication from a supplier, it's time to look for a new one. gleehospitality.com

EuropEan dairy products The tastiest moments of your day!

www.EuMilkyWay.eu

SOLUTIONS

MARKETING

ARE APPS DELIVERING FOR RESTAURANT OWNERS?

Right across the world, food delivery apps have become a trusted and reliable onestop shop for hungry, but indecisive customers. The ease and convenience - and huge commercial success of food delivery apps means they’re undoubtedly here to stay, but at what cost to the restaurants themselves? Boudy Nasrala, managing partner, Wondereight, shares his thoughts Restaurant owners often feel powerless when it comes to delivery apps, since they have no control over them, but are being charged almost 20-30 percent of their profits. Unfortunately, for restaurant owners (but fortunately for delivery apps) there is no turning back, since millions of customers have already switched to ordering online through third-party apps.

Food delivery platforms In simple terms, there are four types of food delivery platforms:

1. Aggregators • Users have access to multiple restaurants • Users can compare menus, prices and reviews • Aggregators collect a fixed margin of the order • Restaurant handles the delivery • No additional cost to consumer

2. New delivery • Users have access to multiple restaurants, even those that don’t deliver

• Users can compare menus, prices and reviews

• New delivery collects a fixed margin and charges a delivery fee to the customer,

HOSPITALITY NEWS ME | AUG-SEP 2017

making the meal more expensive

• New delivery-service provider handles the delivery

3. Restaurant controlled • Users have access to one restaurant and its menu. This works for delivery-only and physical restaurants • No cost for restaurant, other than delivery resources, and no additional cost for customer, except maybe for delivery

4. Cloud/satellite kitchens • Allows food producers to start, test and launch a delivery-only restaurant concept in a short period of time, with minimal financial commitment. Now being rolled out by Deliveroo, UberEats and Zomato. • Food producers, chefs and entrepreneurs can enter the market and keep costs down by leasing existing infrastructure, without fixed costs. Deliveroo UK and Ireland managing director, Dan Warne, believes that a bespoke, delivery-only kitchen is a perfect example of innovation. “It lets our restaurant partners scale to new sites at low risk, whilst creating amazing new choices for customers,” he says.

Eating profits In the US, companies such as GrubHub and Postmates are charging restaurants roughly 12 percent to 24 percent of the final check, but newcomers, such as UberEats and Amazon Restaurants, are stepping it up. Amazon charges 27.5 percent, while it’s rumored that UberEats is soon to ramp up prices to 30 percent. And of course, better late than never, Facebook has now also entered the game, with its 2016 acquisition of Delivery.com and Slice. Some of these companies simply collect a fixed margin of the order, whilst other ‘new delivery’ ventures also charge a delivery fee, making it even more expensive for the customer. This leaves restaurant owners faced with the dilemma of either creating their own app to avoid the fee and save their profits, which means possibly losing market

share, or biting the bullet by signing up and paying whatever charges delivery apps have chosen to apply.

Will delivery profits disappear? The impact of high commission rates on a restaurant’s profits can at first seem daunting. This is why, as in the case of travel apps, businesses need to start thinking about the app experience as an opportunity to market directly to consumers and to think creatively of how to save money. It’s about changing your attitude; basically, restaurant owners need to use the platforms they pay to use to increase market share and mitigate the dent in profits. Restaurants are free to sell through multiple app service providers, unleashing the potential for thousands of new customers. And, with a powerful visual brand, restaurants can transform their identity and appeal to a wider range of consumers. Only a decade ago, local restaurants didn’t view owning their own website as important. However, today this is recognized as a necessity for a business, which is why it has to be better than just good. Whether we like it or not, if we want to maintain and grow market share, a restaurant needs to build a fantastic, engaging online presence loved by customers. And, if it can get that right, it stands a chance of increasing market share and gaining customer loyalty. Then the commission fee will start to pay dividends. In a fiercely competitive environment, creative agencies, like WonderEight, can help restaurants make that transition, handling everything from a slick new website, modern brand identity and search engine optimization (SEO) tools that will help land them at the top of search engine results. And, of course, we shouldn’t underestimate the most important ingredient for success in the brave new world of delivery apps – great food!

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TOP OF

THE TABLE From rustic pottery in rich, earth-inspired colors to multi-functional novelties, perfect for sharing on social media, today’s crockery and other serving ideas are as individual and creative as the chefs using them Tableware from Noma Mexico, René Redzepi's seven-week pop-up restaurant in Tulum

While presentation has long been a key component of the dining experience in good quality restaurants, the bowls and plates on which food was served in years gone by were rarely a talking point themselves. Fast forward a few years, however, and all that has changed, with today’s tableware not only serving its original, functional purpose, but now also often making a statement in its own right. From colorful, rustic, earthenware recalling the kitchens of yesteryear to cutting edge, chrome creations that provide the perfect platform for chefs to showcase their ingenuity, tableware in the new millennium is taking center stage like never before. According to Kathryn Oldershaw, marketing director at Utopia Tableware, a leading supplier to the hospitality and branded glassware industry, “Recent research has highlighted how everything from color to shape can impact upon the way we taste food and as such, it’s not something that should be considered an afterthought.”

All about individuality There are several factors driving the trend for creative serving options, according to industry players, including a competitive environment, which is heightening the need for venues to set themselves apart from their rivals, Danny Goodall, design director at Dudson, a UK-based manufacturer of fine china, says the number of requests for individually designed, bespoke tableware is definitely

HOSPITALITY NEWS ME | AUG-SEP 2017

on the rise. “Customers sometimes want something unique that reflects their own brand identity, which they may not find in our standard ranges,” he comments.

trendsetting name in the kitchen cookware and table concept business, agrees that locally, as globally, uniqueness is the current industry buzzword.

Kitchen professionals, it seems, have recognized the importance of seeking out unusual and eye-catching tableware when opening a new restaurant. Ricardo Menta, a well-known industry personality and currently head chef at Thanini, a concept which opened in Dubai in April, told HN that no restaurant operating today wants to find identical crockery to theirs in another venue. “Tableware is undoubtedly part of an establishment’s identity,” he said. “Being unique is really important to me, so I research extensively when the time comes to purchase my products.”

“Lebanese owners always have one thing in mind, which is to be different, to introduce something new, to become the talk of the town, the unparalleled and the initiator,” she notes. “We offer a wide choice of beautiful lines today that are still virgin and clients are happy to enjoy this.”

Carla Faissal Sabbagh, owner and managing director of Boutic’Hotel, a

Part of the décor Operators are also taking a more holistic and joined-up approach to the dining out experience, which involves ensuring that tableware complements the broader feel of an establishment. Nicolas E. Chammas, managing director, INTHRA SARL, a creator and provider of high quality hotel and restaurant supplies in the

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Middle East, specializing in amenities and tabletops, believes ambience is now a top priority. “The location of the restaurant is not that important anymore,” he says. The identity and mood is more important and this is reflected in the tableware purchases.” Faissal Sabbagh agrees that tableware today makes an essential contribution to the aesthetic and decorative side of a project. “The choice of table accessories should work in parallel with the palette of colors, style and overall spirit of a place, making it a stage in the process that merits plenty of consideration,” is her philosophy.

Memory lane Many of the tableware designs making waves today have a nostalgic feel to them, inspired by equipment used decades ago, such as brightly-colored pottery that perhaps sparks childhood memories and generates a feelgood factor among visitors. According to Chammas, rustic designs are especially popular. “This helps to make tables look like home or recalls the countryside, even though we are lunching in Downtown,” he says. Guy Markarian, owner and general manager, MG Hotel Supplies, notes that there’s even been a move towards décor with minor imperfections. “Details such as slightly scratched surfaces can cleverly help to create a feeling of homeliness and a bygone era,” he adds. This trend is also extending to the tableware itself, as Oldershaw explains. “Pieces that have a hand-thrown effect, produced or shaped by turning on a lathe or wheel, in a shape that means no two pieces are exactly the same, are definitely the order of the day,” she notes.

Pushing boundaries Chefs are, additionally, having to raise the bar to meet the demands of an increasingly demanding clientele. “Novelties are a must today, not an extra,” Danny Kattar, director of F&B, InterContinental Abu Dhabi, told HN. “The basics are not enough. You have to think outside of the box. Customers expect to be wowed.” Kattar features interactive dishes on his menus, including a dessert for which diners operate an orange squeezer over a chocolate combination. “People like it because they’re involved,” he explains. “They can also see what’s happening inside the glass as the ingredients combine.” He adds that innovation at the table gives diners the opportunity to share their dishes and eating-out experiences on social media. “Today’s customers want to post photos of their dishes and rave about them, so they’re looking for something special,” he said. Menta agrees that diners are looking for a

HOSPITALITY NEWS ME | AUG-SEP 2017

“bit of theater” nowadays, which works well when shared on Instagram or via other social media. “A supplier in London created a thin, rectangular wooden crate with a marble top and inserted a line in the middle on which we place a dessert,” he explains. “We can then pour liquid nitrogen through the hole which, when infused with water, produces smoke that rises and covers the dessert.”

Multiple use The trend for creativity has also seen establishments squeeze multiple uses out of their tableware when getting imaginative with their serve, something that Oldershaw believes is a win-win approach. “Whether it’s cocktails and smoothies served in ceramic milk bottles or miniature desserts in bento boxes, being creative is key,” she says. “Not only does this make sense from a financial point of view, changing the traditional usage of certain pieces can also leave a lasting impression and give your operation a real quirky point of difference.” Markarian adds that these trends also give chefs versatility. “For example, the resurgence of old-style mini pots made from copper and brass offer chefs plenty of flexibility and creativity in terms of cooking and presentation, since food can be cooked and served in the same pot if so desired,” he says.

The aesthetics are certainly a key part for Menta, who likes to present his Pintxos, which are a Basque dish featuring a variety of bite-sized delicacies, in double-wall shot glasses.

Mixing it up Goodall notes that professionals have also steered away from thinking in sets of tableware. “What we are noticing particularly, is that chefs are choosing an eclectic mix of product across several different styles of tableware,” he comments. “The bowl or plate is chosen for each item on the menu, rather than serving food across an entire tableware range.” Many of the multiple-use concepts work well for sharing and grazing concepts, which, while long popular in the Middle East, are now also taking off across other types of cuisine. “One new product we’ve noticed that’s creating a buzz is a pallet, like those used in shipping, which is being used to serve a range of food like appetisers, wings and sushi,” Markarian notes. “These ideas not only allow chefs looking for unusual and innovative vehicles to showcase appetisers and other dishes, but also help to create a convivial environment.”

Choice is king While rewriting the rule book seems to be acceptable today, there’s room for

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establishments to simply tweak their tableware if preferred, especially at the upper end of the market. “White may still be the overriding color of choice for fine dining, but introducing complementary metallic touches and shapes will most definitely shake things up, offering a more modern feel,” Oldershaw notes. Chammas told HN that the arrival of customization in the Lebanese market had widened the choice significantly for local industry players. “Today, they can take advantage of current trends, such as multicolored porcelain, which was not the case before,” he says.

Everything from color to shape can impact upon the way we taste food; it’s not something that should be an afterthought

1. Utopia Tableware’s Birdcage plate stand, complete with copper finish, brings an ontrend rustic feel to a table. 2. Harvest hand-finished pieces by Dudson combine earthy colours with unique design features, like wobbly edges, which echo the highly-popular artisan, individual ‘potter’ style.

One takeaway message, it seems, is the importance of injecting personal passion into a table setting. “Your table is what you are,” Faissal Sabbagh says. “It is from this emotional angle that I became involved in that side of the business. When I first introduced original table accessories to the tableware business, the industry was mostly promoting just basic white porcelain. My ideas for personal touches then began to take off commercially in various ways.”

3. Perla by Vista Alegre porcelain from Boutic’Hotel, has a pearly contour that gives it distinction and simple sophistication. 4. A dish of lobster, salmon and octopus, marinated in paprika, potato foam and chorizo oil, served in a double-wall shot glass at Thanini. 5. Scarlet, the vibrant and colorful line with distorted shapes, evokes a delightful Mediterranean feel, from Boutic’Hotel.

Certainly, the choice today is broader than ever, as is the scope for experimentation. And for the purists among us, the good news is that white can still be alright. “The upcoming hot trend is for exactly that – the plain white round plate,” Goodall tells HN. “So don’t write it off yet!”

6. Guy Degrenne Modulo tableware from Inthra. 7. A colorful collection of plates and bowls by Seltmann Weiden from Inthra. 8. The newest addition to the La Tavola flatware family is Rétro by MG Hotel Supplies.

MEET THE EXPERTS

Kathryn Oldershaw

Danny Goodall

Ricardo Menta

Carla Faissal Sabbagh

Marketing Director

Design Director

Head Chef

Owner and Managing Director

Utopia Tableware

Dudson

Thanini

Boutic’Hotel

Nicolas Chammas

Guy Markarian

Managing Director

Owner and General Manager

Director of F&B

Inthra

MG Hotel Supplies

InterContinental Abu Dhabi

HOSPITALITY NEWS ME | AUG-SEP 2017

Danny Kattar

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FOOD

MORE THAN ‘MEATS’ THE EYE As the world’s inhabitants approach the 7.5-billion mark, governments are scrambling to devise more elaborate strategies to keep up with everincreasing demands related to providing the resources needed for continued growth and sustainability Yet despite the differences around the globe that set us apart, the similarities that unite us allow for the application of novel, modern innovations. These include one common factor, which is that the overwhelming majority of people eat some kind of meat. While providing a unifying thread, this reality, in and of itself, however, also presents a diverse range of challenges. According to data from BMI Research, the population of the MENA region had reached approximately 430 million in 2016. Significantly, a study by GIRA foodservice company showed that 10.88 million tons of poultry were consumed

HOSPITALITY NEWS ME | AUG-SEP 2017

last year, together with 4.17 million tons of beef and 2.42 million tons of sheep meat (mutton and lamb).

For beef, demand for chilled premium cuts, such as branded packaged loin cuts, is strong and growing, especially in areas with a high concentration of five-star hotels To put these numbers in perspective, HN spoke to Nick Meara, the international business manager for the MENA region at Meat & Livestock Australia (MLA), who elaborated on the challenges that the region faces, the solutions available and the innovations taking shape.

A fluctuating Middle East market According to Meara, “Australian beef and sheep meat exports to the Middle East North Africa region have fluctuated in recent years due to the flow-on effects of a regional economic slowdown, lower oil prices, and regional conflicts, which have impacted consumer confidence and government spending.”

While these factors have had a direct impact on imports, Meara said that the MLA, due to its long-standing relationship with countries in the region, had maintained its reputation by continuing to carry a guaranteed mark of quality, Halal integrity and food safety credentials. Offering a statistical breakdown of the biggest regional consumers, he said, “Last year, Australia exported more than 30,000 tons of beef to some 16 countries in MENA. Saudi Arabia was the largest market in the region and Australia’s ninth-largest beef export market by volume overall, followed closely by the UAE. Significant volumes are also exported to Kuwait, Egypt, Qatar and Jordan. As for sheep meat, the Middle East is one of Australia’s top three lamb export markets, along with the US and China.”

Willingness to pay a premium for quality Meara added that despite regional challenges, MENA offered a great deal of potential, with a population showing signs of being willing to pay a premium for quality meat and food products into

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FOOD

the next decade, particularly consumers residing in GCC countries. “Regional growth drivers of imported beef demand are increasing, due to disposable income, urbanization, westernization, a young population, large expat professional populations and a developing tourism sector,” he affirmed. Factoring in these indicators, Meara projected that sector development within the GCC countries was poised to increase and, with it, chilled red meat sales. By 2020, the number of households set to be earning USD 35,000 or more is expected to have increased by 48 percent. Another promising trend, Meara remarked, related to two of the largest and most progressive markets for Australian lamb - the UAE and Qatar where growth in the high-end, casual dining and QSR (quick service restaurant) foodservice sectors is forecast to rise, due to the high cross-section of ethnicities across their populations.

Demand for transparency in sourcing “Lamb carcasses are favored in all segments of the market, particularly foodservice and traditional restaurants,” Meara noted. “For beef, demand for chilled premium cuts, such as branded packaged loin cuts, is strong and growing, especially in areas with a high concentration of five-star hotels.” On a somewhat similar note, and due to an ever-growing number of savvier, health-oriented consumers, demand for quality meats is coupled with the need for more transparent information about the sourcing of these consumables. As a result, the halal wave is making a big splash. Meara highlighted the intricacies that go into offering this kind of service. “Consumers are more in tune with the source of their food than ever before and when they eat red meat, they want to know where and how it was raised,” he said. “Australia’s guaranteed stamp of halal integrity on all its beef and lamb

enjoyed by Middle Eastern customers has never been more important and its accreditation systems are recognized and trusted throughout the world.”

Vending machines can heat single-serving meals, such as lamb meatballs in Massaman curry, in just two minutes; they are now being trialled at railway stations and universities He added that furthermore, Australia’s favorable animal health status, combined with the controls applied to the production of halal meat and meat products by both the department and the Approved Islamic Organization, ensure that high food safety standards and halal integrity are maintained.

Innovation

Feasting trend grows popular Furthermore, menu trends that appear to be all the rage and spreading like wildfire are seeing former concepts, based on ingredient-based items, replaced by concept-based, eating-out experiences. “The act of eating is intrinsically linked to enjoyment and ignites all the emotional senses when the experience is shared,” Meara said. “For this reason, we believe ‘share plates’ and ‘feasting’ style menus are a growing popular trend. This more casual and relaxed way to eat is not only a great way for people to try different meat cuts and flavors they may not choose individually, but is an excellent way to promote the versatility of non-loin cuts – not to mention the benefits in significantly assisting chefs’ plate costs.”

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One major technology that recently went into the ‘public testing phase’ which is creating a significant stir could soon be the hottest item on the menu throughout the Middle East, as efforts to meet tougher consumer demands through the introduction of novel offerings gain pace.

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“Australian-led innovation in red meat processing has made a breakthrough in convenience stakes, with vending machines producing hot, readymade meals,” Meara explained. “The vending machines can heat single-serving meals, such as lamb meatballs in Massaman curry, in just two minutes. They are now being trialled at railway stations and universities in Australia, as well as locations in Europe.”

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Customers can receive pre-cooked Australian lamb ready meals in as little as 10 minutes from the vending machines, which also collect point of sale information and, potentially, consumer feedback. The vending machines not only add value to lower-priced cuts, but the technology is also fuelling the trend for quick, convenient and healthy meals for busy consumers.”

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CHOCOMANIA

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PRALINE FILLING COOKIES Created by Raymond Tham - independent chef; Callebaut consultant of the Chocolate Academy™ centre in Singapore COOKIE DOUGH Ingredients • 233g flour • 4g baking powder • 188g unsalted butter • 83g icing sugar • 66g Callebaut - Finest Belgian Dark Chocolate - Recipe N° 70-30-38 • 35g egg yolk Preparation Sieve together. Cream and add to previous mixture. Melt chocolate and mix in. Leave dough to rest. Roll out to a thickness of 4mm. Cut and sprinkle with cocoa nibs. Bake for 10 minutes at 180°C. FILLING Ingredients • 160g Callebaut - Finest Belgian Milk Chocolate - Recipe N° 823 • 50g Callebaut - Pralines - Almond praline • 30g roasted and blanched whole almonds • 2g Callebaut - Cocoa Nibs Preparation Melt. Add to chocolate. Add to previous mixture. Mix and pipe into cookies. EMF Middle East t. +961 9 938732 | info@emf-me.com www.emf-me.com

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Callebaut®'s cocoa nibs With their intense toasted cocoa taste and crunchy texture, nibs make for a great ingredient to texturize your desserts or even savory dishes. Sprinkle them on freshly dipped or enrobed confectionery for an extra-intense cocoa boost. Infusing your caramels with (finely crushed) cocoa nibs will create a wonderful nougatine. Or, mix them into your chocolate-nut praline mixtures or giandujas for some extra flavor and a surprising texture.

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June 8

Rémy Martin at Steak Bar Sushi In a unique dining experience that brought together guests from the world of fine cuisine, mixology, fashion and media, Steak Bar Sushi, the innovative destination in Lebanon, delighted its guests with an exceptional experience that combined the eccentric fusion ingredients of its menu with the finest cognac. The pairing resulted in an impeccable union of textures and aroma.

15 June

Japanese whisky and sushi pairing experience G. Vincenti & Sons, the leading distributor of food and spirits brands in Lebanon, held an exclusive evening, in collaboration with the award-winning Japanese restaurant Shogun, to launch the most renowned Japanese single malt whisky, ‘The Hakushu’, at The Cask & Barrel liquor boutique in Lebanon. To celebrate the art of Japanese whisky, guests were treated to a detailed food-pairing lesson, along with the finest Japanese hors d’oeuvres.

6 July

Travelport and Middle East Airlines host travel industry dinner Travelport, a leading travel commerce platform, was recognized as the Best Global Distribution System in the Middle East at this year’s Arabian Travel Awards’ gala ceremony in Dubai. A stunning, celebratory gala dinner was hosted in honor of the event.

27 July

15 June June 8

Iftar gathering at Gefinor Rotana Hotel As part of its ongoing activities for its media partners, and on the occasion of Ramadan, Gefinor Rotana Hotel held a unique Iftar at Olive Garden Restaurant & Terrace in Beirut.

Pasquale restaurant opens at Grand Hills in Lebanon Offering guests a new and authentic gastronomic experience, Pasquale, Broumana’s finest Italian restaurant opened its doors to welcome Italian food lovers at Grand Hills hotel.

Launching of two new Masters programs at IGE in Lebanon Saint Joseph University, Institut de Gestion des Entreprises (USJ-IGE), launched a Master in Hospitality Management program with two specialties: "Luxury and Lifestyle" and "Lebanese and Mediterranean Gastronomy and Lifestyle". The announcement was made under the patronage of the Minister of Tourism, HE Avédis Guidanian.

29 June 9 June

Meref gala dinner at Résidence des Pins The Movement of French Enterprises and Economic Representations in Lebanon (Meref - CCI France Liban) organized its fifth annual gala dinner at the Residence des Pins. Many French and Lebanese business leaders attended the special dinner.

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MEKER holds 50-year celebration Meker celebrated 50 years of Lebanese kitchen manufacturing in an evening featuring a masterful blend of excellence and great atmosphere. Highlights included a live gourmet cooking experience with the renowned Nicolas Audi and exotic cocktails from Pacifico. More than 400 top-notch architects, interior designers, engineers, VIPs, influencers and bloggers attended the event.

27 July

ABC Verdun opening ABC Verdun, has brought an uplifted level of experience to the neighborhood of Verdun, creating a bustling center for social, environmental, and economic encounters. The glamorous event unveiled a new shopping address set to welcome Lebanese, expatriates and tourists.

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Distributed by Pierre Azar Trading SAL - PO BOX 306 1227 2030 ZOUK MOSBEH - LEBANON - TEL: +961 9 933 024

Création : Insign

Inspiration is Valrhona’s first range of fruit couvertures* created with 100% natural ingredients. All Valrhona’s chocolate-making expertise has been put to use to develop this technical breakthrough, combining the unique texture of cocoa butter with the color and intense flavor of fruit.

The premium recipe to enhance your business. BUSINESS SOLUTIONS Nespresso supports you every day to increase your business by introducing the Aguila machine: the versatility of Aguila with its state-of-the-art technology allows you to offer a range of luxuriant recipes to help attract new business, while retaining current volumes. It has never been more comfortable to deal with high volumes on a sophisticated level â&#x20AC;&#x201C; Grand Cru after Grand Cru.