INTERVIEW

HN MEETS: ELIE MILKY

VP BUSINESS DEVELOPMENT ME, GREECE, CYPRUS AND PAKISTAN AT RADISSON HOTELS

With the hospitality industry getting ready to reboot after the easing of Covid-19 measures. HN spoke to Radisson Hotel's Elie Milky to learn more about the chain’s upcoming projects and post-pandemic agenda.

Can you describe Radisson’s risk management implementation during Covid-19?

Being able to adapt, respond and implement measures swiftly has been, and will continue to be key moving forward. In May 2020, we launched our Radisson Hotels Safety Protocol, a program of in-depth cleanliness and disinfection procedures, developed in partnership with SGS. Radisson Hotel Group also played a leading role in developing the World Travel and Tourism Council (WTTC) “Safe Travels” protocols, to ensure a common high standard of hygiene, safety and sanitation that is standardized and implemented around the world, and validated by a third party. Radisson Hotel Group has shown a readiness to be innovative when it comes to hybrid meetings, with both in-person and virtual experiences. The company’s cost saving initiatives and lean operating model have further improved the profitability of each hotel in our portfolio, in a further e ort to mitigate risk.

Has the region shown more resilience and signs of sustainability compared to other Radisson markets?

Globally, the hospitality sector has faced challenging times due to Covid-19 which has resulted in reduced travel demand and booking cancellations. The situation in the Middle East has of course been no di erent. Nevertheless, we need to look ahead to the future. Travel will continue to rebound, and more capital is being invested in the industry from both the private and public sectors. Looking at the markets within the Middle East, we believe that hotels in the UAE and Saudi Arabia will lead the recovery in the Middle East’s hospitality industry. The recovery has already been noted in markets with strong domestic demand for leisure hotels, i.e. desert and beach resorts, as well as serviced apartments which continued to maintain healthy occupancy levels and strong profit margins.Looking ahead, Saudi Arabia will continue to benefit from ongoing tourism initiatives, upcoming mega projects, and domestic tourism. The UAE has also been seeing an increase in local demand and staycations.

What is Radisson’s key strength point?

Historically, our group has been known for repositioning existing hotels under one of our brands and we believe we can continue to replicate the same success as owners look at ways of improving their returns. With the overall instability of the economy in the region, hotel owners are looking for custom solutions o ered by trusted operators. And we are o ering just that. What’s important to our investment partners is that we’ve reviewed our brand o ering and have created a clean and simple brand architecture from midscale to luxury, and from resorts to business hotels, while also o ering serviced apartments.

How did your diversified portfolio help you to prevail?

Radisson Hotel Group portfolio includes Radisson Collection, Radisson Blu, Radisson, Radisson RED, Park Inn by Radisson, and our newest addition, Radisson Individuals. The recent launch of Radisson Individuals marks another milestone in our transformation plan. Radisson Individuals is an ideal first step for unique hotels with strong service scores who wish to remain independent or may be considering transitioning to one of our successful core brands. With our six distinctive brands we aim to continue expanding our brand architecture and strengthening our presence across EMEA. The Middle East o ers an opportunity for more a ordable resorts particularly under our upscale, four-star Radisson brand, as well as branded serviced apartments. We believe the market is ready for our lifestyle Radisson RED brand in key cities such as Dubai, Abu Dhabi, Riyadh, Jeddah, Beirut, to name a few. Building on the success of our premium Radisson Collection brand in Riyadh, we believe there is an opportunity to launch that product in the UAE with the right asset. With the recent launch of Radisson Individuals, we are now scouting the market for unique products that are already in operation and that would be an ideal fit, particularly in Dubai.

Travel will continue to rebound, and more capital is being invested in the industry from the private and public sectors.

How did the pandemic impact your developments in the region? Will you be able to maintain your pace?

In 2020, we have confirmed over 40 new hotel signings across EMEA to date. The new signings rea rm our commitment to our owners, partners and our development plan. Looking toward the future, our ambitions across the Middle East region have remained the same and we are further accelerating our development. Despite the unprecedented challenges we face, we continue to work closely with our stakeholders to support the business. Real estate activity has not stopped since investors look to the long term, and this is where we support them. The past few months saw investment activity and new hotel leads continue to flow, although at a slower pace, which is expected. Which markets interest you the most and did you decide to adjust your development strategy due to Covid-19?

The launch of Radisson Individuals is, in fact, an example of how we are addressing conversion opportunities. The Middle East region remains one of the key focus markets for Radisson Hotel Group’s global development strategy. We expect to have at least 10 more openings over the next 18 months. Having said that, despite the challenging year, 2020 saw the opening of two Park Inn by Radisson hotels in Jeddah and in Riyadh.

Do you think the market will change its preferences and will you develop new brands to match these requirements?

We have already seen a shift in preferences to resorts and serviced apartments from both investors as well as consumers. We are, in turn, focusing on those asset classes as well, now more than ever. The pandemic has fundamentally changed the way consumers look at their travel plans, with uncertainties over when to travel, where to travel or how long to travel. Our aim is to o er clients as much flexibility and planning comfort as possible. The post-Covid-19 era will put a major emphasis on cleanliness and safety. On the other hand, our growth journey continues across all markets and key owners. Here, we are selectively targeting key developments and partners where we could add value. Whilst the hospitality industry has been amongst the hardest hit, real estate investments are long term and something every investor needs to keep in mind. Considering that the timeframe for opening a new hotel is one-to-two years, we believe the occupancy levels and demand for travelers will have recovered. Indeed, we are already beginning to see a recovery hospitality products and in some markets.

Where do you see the chain in five years' time?

We have stated a clear ambition to become one of the most favored hotel companies and preferred choice for our guests, employees and investors. As such, we remain confident that the execution of our five-year plan will continue to deliver results for our shareholders, create memorable moments for our guests and also provide employment opportunities for our associates. Looking beyond, we expect further acceleration in our growth, not only organically but potentially through new ventures and strategic alliances. The great support and commitment of our new shareholder should also provide positive momentum for our group to leverage on and gain further traction at all levels – commercially and financially as well as in brand awareness and competitiveness. radissonhotels.com