D N U O B E R E H T N O
THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY FEBRUARY 2015 | WWW.HOTELNEWSME.COM
EGYPT BAHRAIN ABU DHABI
LEBANON
AN JORD
Why some of the region's beleaguered hotel markets are bouncing back in 2015
GM DEBATE
RETURN OF THE BULL
Hoteliers discuss 2015 prospects
Hotel investor confidence swells
RULES OF ENGAGEMENT Marriott’s Kyriakidis talks digital
CONTENTS
HOT TOPICS
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10 | NEWS ROUND UP A SUMMARY OF REGIONAL AND GLOBAL NEWS 24 | THE PANEL A GROUP OF EXPERT GMS DISCUSS THE CHANGING LADSCAPE OF THE INDUSTRY
BAHRAIN ABU DHABI
52 | TAKE 10 THE TOP 10 DESIGN TRENDS
LEBANON AN JORD
54 | MEET THE EXPERTS HOSPITALITY SPECIALIST VIEWS
FEATURES 36 | ON THE REBOUND INDUSTRY ANALYSTS DISCUSS WHY SOME OF THE REGION'S MOST BELEAGUERED HOTEL MARKETS ARE BOUNCING BACK
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42 | COUNTRY REPORT: QATAR AN OVERVIEW OF THE GULF STATE’S DIVERSIFICATION STRATEGY
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24 FEBRUARY 2015 HOTEL NEWS ME
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CONTENTS
42 Managing Director Walid Zok Walid@bncpublishing.net Director Rabih Najm Rabih@bncpublishing.net Director Wissam Younane Wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley Dom@bncpublishing.net Sales Manager Charlotte Ringrose Charlotte@bncpublishing.net Executive Editor Gemma Greenwood Gemma@bncpublishing.net Deputy Editor Sophia Soltani Sophia@bncpublishing.net
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Art Director Rana Husam Shiblaq Rana@bncpublishing.net Marketing Executive Mark Anthony Monzon
74 | DESIGN TAKING A LOOK AT HOW DECOR PLAYS AN INTEGRAL ROLE IN THE DINING EXPERIENCE
CONTRIBUTORS Lucy Taylor, Sarah McCay The Factory Photography www.thefactory.me
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66 | GULFOOD PREVIEW TAKING A LOOK AT THE UPCOMING SHOW HIGHLIGHTS
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INTERVIEWS 18 | ALEX KYRIAKIDIS EXPLAINS HOW THE HOTEL GROUP IS EMBRACING DIGITAL MARKETING & SOCIAL MEDIA 72 | F&B INTERVIEW ADAM D'SYLVA DISCUSSES CODA RESTAURANT
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HOTEL NEWS ME FEBRUARY 2015
FEBRUARY 2015 HOTEL NEWS ME
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CHAIN OF THOUGHT... ON THE REBOUND, HOTELS BOUNCING BACK, LET'S SEE
THE YEAR OF THE COMEBACK
STRUGGLING HOTEL MARKETS PICK UP IN 2015; EGYPT LEADS THE WAY
Political tensions ignited by the Arab Spring back in 2011 have plagued some of the Middle East’s most established hotel markets ever since. Instability region-wide has thwarted local and global inbound business and leisure tourism to a number of countries, with Egypt bearing the brunt most forcibly. However, at the end of 2014, following more than six months of relative political stability, the destination was showing marked signs of recovery, with tourism returning to Cairo and Sharm El Sheikh in particular, driving improvements in hotel market performance. STR Global data points to a 122.8% occupancy growth in Cairo for the third quarter of 2014 and while occupancies still have a long way to go before they reach pre-economic crisis levels, they are definitely on the up. A combination of proactive government-led advertising campaigns targeting its key tourism source markets and value-for-money holiday and corporate and leisure hotel packages are luring back the crowds. Analysts cited in this month’s cover story, which looks at the region’s rebound hotel markets in more depth, note how tourists from Saudi Arabia in particular are flocking back to Egypt. If stability ensues they say summer 2015 could prove a catalyst for recovery as Gulf nationals switch back to holidaying in the North
African destination. It’s a concern for pricier cities in the region, Dubai included, which during the Arab Spring provided a safe haven for Gulf tourists. Saudis are also starting to re-visit another summer holiday favourite, Lebanon, but this market’s recovery remains more fragile due to ongoing tensions internally and across the Levant region, nowhere more so in warravaged Syria. Bahrain is another market to watch this year, again, as stability returns to the Gulf state. It’s another market witnessing a return of visitors from Saudi Arabia, plus corporate business is on the rise. Investors appear confident in Bahrain’s longevity too, with investment in new hotels going full steam ahead. Several properties are due to open in the kingdom over the next few years, across all categories, and Bahrain’s pipeline growth is forecast at 42%, with 3,537 rooms under contract according to the latest STR Global figures. This compares to the current inventory of 8,422 rooms. However, some analysts warn there will be a general oversupply of hotel accommodation in many Middle East markets over the next two years, so while a resurgence in business might be occurring in many cities and destinations, the industry might have to wait until 2017 to see demand catch up with the inventory boom.
GEMMA GREENWOOD Executive Editor
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HOTEL NEWS ME FEBRUARY 2015
THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY JANUARY 2015 | WWW.HOTELNEWSME.COM
How to meet the modern age demands of the ‘Millennials’ jet set, from smart marketing tactics to edgy hotel concepts
THE YEAR AHEAD
SPOTLIGHT ON IHG
RESTAURANT RESOLUTIONS
2015 industry trends you should know about
New COO unveils group’s ME ambitions
New year strategies for F&B outlet success
NICE IDEA, WORK WITH THE COLOUR?
THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY JANUARY 2015 | WWW.HOTELNEWSME.COM
How to meet the modern age demands of the ‘Millennials’ jet set, from smart marketing tactics to edgy hotel concepts
THE YEAR AHEAD
SPOTLIGHT ON IHG
RESTAURANT RESOLUTIONS
2015 industry trends you should know about
New COO unveils group’s ME ambitions
New year strategies for F&B outlet success
LET'S GIVE IT A LITTLE BOUNCE.
THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY JANUARY 2015 | WWW.HOTELNEWSME.COM
ON THE REBOUND
Why some of the region's beleaguered hotel markets are bouncing back in 2015
GM DEBATE
RULES OF ENGAGEMENT
RETURN OF THE BULL
GOOD COLOUR, A LITTLE PLAIN THOUGH.
EBOUND ON THE R
THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY FEBRUARY 2015 | WWW.HOTELNEWSME.COM
EGYPT
BAHRAIN ABU DHABI
LEBANON N JORDA
Why some of the region's beleaguered hotel markets are bouncing back in 2015
GM DEBATE
RETURN OF THE BULL
Hoteliers discuss 2015 prospects
Hotel investor confidence swells
RULES OF ENGAGEMENT Marriott’s Kyriakidis talks digital
GOOD SENSE OF SPACE, THAT'S THE ONE.
Follow us on our social media pages @hotelnewsme /hotelnewsmme hotelnewsme
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HOTEL NEWS ME FEBRUARY 2015
ADVERTORIAL
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FEBRUARY 2015 HOTEL NEWS ME
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REGIONAL NEWS
NEWS
WHO SAID THAT?
“IDEALLY WE WOULD LIKE A FIRST AND FOREMOST PROPERTY IN DUBAI, OMAN, THE NORTHERN EMIRATES AND THEN FURTHER DOWN THE LINE, INTRODUCE THE CONCEPT THROUGHOUT THE GCC, INCLUDING SAUDI ARABIA" MIKE SCULLY, MANAGING DIRECTOR, FIRST &
First and Foremost heads to Gulf to drum up business Family property specialist, First and most Family Hotels is ‘Exceptional First and Foremost Family Hotels Foremost Hospitality, is hoping to & diverse; bringing families back to will offer these facilities and more, roll out its unique concept in all of hotels’. The firm has already tried- but its key selling point is that all the Gulf’s major tourism markets. and-tested its family concept success- properties will be Autism-friendly, The company’s managing director, fully with Leading Family Hotels – a catering to families with children on Mike Scully, well known in the UAE group of four properties in Austria the Autism spectrum. for managing two of Dubai’s leading developed in partnership with Mayer Specialist facilities and services luxury family resorts, the Westin and Family Hotels GmbH. will range from sensory walls and a Le Meridien Mina Seyahi over a 15At these properties, key features sensory integration room, to special year period to 2008, headed to GCC include purpose-built annexes with- LED lighting and cuisine catering to at the end of January dietary requirements. to explain the First This is why the and Foremost Hoshospitality firm has "ALL THESE FACILITIES MAKE US QUITE pitality concept to UNIQUE AND ADD SUBSTANTIAL VALUE TO teamed up with the potential investors. Els for Autism FounTHE PROPERTIES THROUGH REVPAR" “We are launchdation, created in ing the company 2009 by golfer Ernie with the intention Els, whose son, Ben, of getting developers and owners in the room for the young children; has Autism. on board in the region,” Scully told a crèche for the babies and toddlers The foundation established the Els Hotel News ME. “Ideally we would with nurses and fully trained carers; Centre of Excellence, which will have like a First and Foremost property in mini water parks; plus a theatre for a key role in developing facilities at Dubai, Oman, the Northern Emir- kids’ productions. the upcoming properties. ates and then further down the line, “All these facilities make us quite “Hopefully we will also get the introduce the concept throughout unique and add substantial value to support of the local authorities to the GCC, including Saudi Arabia.” the properties through RevPAR,” build and launch hotels in the reThe strapline for First and Fore- said Scully. gion,” Scully added. 10
HOTEL NEWS ME FEBRUARY 2015
FOREMOST HOSPITALITY
GO FIGURE
9% THE INCREASE IN DUBAI'S GOVERNMENT BUDGET ON 2014 FIGURES, TO AED 4.1 BILLION FOR 2015
100,000 THE NUMBER OF EGYPTIANS WHO CHECKED INTO ABU DHABI’S 157 HOTELS AND HOTEL APARTMENTS IN 2014 (SOURCE: TCA ABU DHABI)
42% HOTEL ROOM PIPELINE GROWTH CONTRACTED FOR BAHRAIN (SOURCE: STR GLOBAL)
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REGIONAL NEWS
The brand new 464-room Hyatt Regency Dubai Creek Heights will open in March 2015, owner wasl Hospitality and operator Hyatt Hotels & Resorts have confirmed. Located in Dubai Healthcare City and overlooking Dubai Creek, the property will include 76 luxury suites plus 405 private residential apartments. It will be the fifth property in Hyatt’s Dubai portfolio, which already includes Hyatt Place, Park Hyatt Dubai, Grand Hyatt Dubai and Hyatt Regency Dubai. Additional facilities will include a Regency Club Lounge; a spa, gym and fitness studios; and conference bridal facilities. “Hyatt Regency Dubai Creek Heights will provide a welcome place for business travellers, convention goers and vacationers alike,” said general manager Mathieu Greppo. "The property opening marks significant momentum in the expansion of our brand in the UAE."
WHO SAID THAT?
GO FIGURE
21,133
March opening for new Dubai Hyatt Regency
“HOTELS MUST CONSTANTLY PLAN FOR CHANGE AND
THE NUMBER OF HOTELS ROOMS HILTON WORLDWIDE MIDDLE EAST AND
STRATEGIES
AFRICA ACROSS 70 HOTELS
DON’T LOSE CUSTOMERS TO COMPETITION” HAMAD AL MULLA,
1,238
CEO AND BOARD MEMBER, KATARA HOSPITALITY
68.9m THE NUMBER OF INTERNATIONAL PASSENGERS PASSING THROUGH DUBAI AIRPORT IN 2014 UP TO DECEMBER 22 (SOURCE: AIRPORTS COUNCIL INTERNATIONAL)
HAS PIPELINED IN THE
KEEP THEIR FLEXIBLE SO THEY
DUBAI AIRPORT TRAFFIC
THE NUMBER OF ROOMS AT THE HOLIDAY INN MEKKAH, OPENING IN 2016 - THE LARGEST HOLIDAY INN IN THE WORLD
Dubai becomes world's busiest airport, overtaking Heathrow Dubai International Airport has overtaken London Heathrow as the world’s busiest airport for international passenger traffic. Dubai Airports reported 68.9 million passengers in 2014 up to December 22, compared to 67.8 million at Heathrow, Airports Council International data has revealed.
Courtyard in the capital targets junior executive biz travellers Marriott’s newest UAE property has opened in Abu Dhabi, introducing a hotel concept designed to cater to today’s junior executive business traveller. Richard Bleakley, general manager of Courtyard by Marriott World Trade Centre Abu Dhabi, said the innovative facilities offered at the property, which opened at the end of 2014, were created with this young demographic in mind. “Courtyard by Marriott is a really youthful brand, which is perfect for young business travellers who want to work on the go and add some fun into their busy schedules,” he said. “We really wanted to create a different hotel experience and I 12
HOTEL NEWS ME FEBRUARY 2015
can’t wait for people to come and experience our cool hangout, Fifth Street Café, and our stunning rooftop bar and lounge, Up and Below.” Fifth Street Café offers locally produced coffee, blended in the UAE, and a giant worktable supported by multiple power points, while the hotel's reception features an innovative and interactive GoBoard where guests can access useful information. Free Wi-Fi is offered throughout the property. Courtyard by Marriott World Trade Centre Abu Dhabi is conveniently located; it is a fiveminute walk from Abu Dhabi Corniche and adjacent to World Trade Centre Mall.
FEBRUARY 2015 HOTEL NEWS ME
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REGIONAL NEWS
WHO SAID THAT?
“THE UAE, SAUDI ARABIA, JORDAN AND IRAQ ARE GOOD REGIONAL FEEDER MARKETS FOR OUR PROPERTIES IN KUWAIT” ALAIN DEBARE CEO ACTION HOTELS
GO FIGURE
646,000 THE NUMBER OF ARRIVALS TO KUWAIT BY 2016 (SOURCE: EUROMONITOR INTERNATIONAL)
8.6% THE Y-O-Y INCREASE IN ADR ACROSS THE KUWAIT HOTEL MARKET IN 2014, (SOURCE: STR GLOBAL)
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M&C to corner Kuwait's burgeoning MICE market The upcoming opening of Millennium Hotel & Convention Centre Kuwait will cater to pent-up MICE industry demand in the Gulf State, according to operator Millennium and Copthorne Middle East & Africa (MEA) The 295-room property, which opens this quarter (Q1, 2015), will add 6,000 square metres of meeting space to Kuwait’s MICE inventory. This will include a multi-functional 1,605-square-metre banquet ballroom, and seven exhibition halls covering more than 2,400 square metres – an offering rivaling the space available at Kuwait’s biggest MICE venue, Kuwait International Fair (KIF). “The hotel will offer one of the biggest convention centres in Kuwait,” confirmed Naeem Darkazally, vice president of sales and marketing for Millennium and Copthorne (MEA). “The facilities will allow us to target a multitude of business sectors across the GCC.”
HOTEL NEWS ME FEBRUARY 2015
He said Saudi Arabia would represent a “key feeder market” for business eventsat the property, as well as the Kuwaiti government which utlised hotel and conference facilities to host its “extensive calendar of yearround events”. Local corporate MICE businesses from the pharmaceutical and banking industries plus meetings generated by the influx of multi-nationals setting up shop in Kuwait also spelled good news for the new property, he added. Darkazally said 2014 had been a “very positive year for the Kuwait hotel market”, with Millennium and Copthorne’s existing properties reporting ADR increases. “With a number of contracts signed with the world’s leading oil and gas companies and more in negotiation, Kuwait is in a strong position to capitalise on the MICE opportunities these partnerships create,” he added. In the long term, the multitude of
infrastructure projects and upgrades planned for Kuwait would ensure demand and supply growth in the hotel industry, Darkazally said. He cited the US$698.5 million investment in the redevelopment of the Kuwait International Airport, with the aim of increasing its annual capacity to 20 million passengers; the construction of eight public hospitals by 2016; the Bobyan Port project, which involves the Ministry of Works transforming Kuwait into a financial and commercial trade hub by increasing the number of berths to 60 with a depth of 20 metres to accommodate larger vessels; plus the Kuwait Metro System spanning more than 160km and comprising 69 stations and the Kuwait National Rail Road System - an integrated rail network stretching 511km. “We believe the country will have a constant stream of corporate travellers due to the many infrastructural and industrial developments taking place,” said Darkazally.
SHOP NOW AT
WORLD NEWS
Hilton unveils new tech in MEA Hilton Worldwide has now introduced its pioneering digital check-in and room selection technology at more than 4,100 hotels and resorts spanning 11 of its brands worldwide. It’s a move that marks the hospitality sector’s biggest digital roll out to date and includes 53 of Hilton’s hotels in the Middle East and Africa. Hilton HHonors guests can now check-in and choose their exact room from digital floor plans or lists, on desktop, tablet and mobile devices. They can further customise their stay by requesting upgrades. “Digital check-in and room selection puts our guests in the driving seat and gives them unprecedented choice and control
GO FIGURE
180mn
"Historically luxury hoteliers would produce great service and product. Today there’s a lot more collaboration and cocreation with the customer."
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$250mn THE AMOUNT ACCOR GROUP HAS INVESTED IN ITS BRAND-WIDE 'LEADING DIGITAL HOSPITALITY' UPGRADE PROGRAMME UNDER DEVELOPMENT FROM 2014 TO 2018
WHO SAID THAT? “WE WERE THE FIRST TO PUT TELEVISIONS IN HOTEL ROOMS AND NOW WE ARE THE FIRST TO LET YOU
THE NUMBER OF PASSENGERS WHO FLEW IN AND OUT OF THE US DURING THE FIRST 11 MONTHS OF 2014, UP 7% ON 2013 (SOURCE: NATIONAL TRAVEL AND TOURISM OFFICE)
CHOOSE YOUR ROOM – RIGHT DOWN TO THE EXACT ROOM
160m
NUMBER” SIMON VINCENT, EXECUTIVE VICE
Leading Hotels of the World CEO Ted Teng talks to Skift.com about the role of social media in shaping the guest experience.
across their entire stay,” said Geraldine Calpin, global head of digital at Hilton Worldwide. “Never before have guests been able to check-in, select their room from a digital floor plan and customise their room ready for arrival. We are truly revolutionising the industry and this is just the tip of the iceberg for digital at Hilton Worldwide.” The hotel group has also updated its Hilton HHonors iOS app, providing a new interface as well as improved functionality and recently revealed plans to introduce mobile key technology in the US across four of its brands in 2015: Hilton Hotels & Resort, Canopy by Hilton, Waldorf Astoria Hotels & Resorts, and Conrad Hotel & Resorts.
PRESIDENT AND PRESIDENT, EMEA, HILTON WORLDWIDE
THE NUMBER OF ANNUAL OUTBOUND TRIPS BY CHINESE TOURISTS ANTICIPATED BY 2018 (SOURCE: SKIFT)
Accor becomes travel advisor Accor Hotels has launched an innovative destination-themed homepage, customisable for 32 source markets in 16 languages. It marks a transition in industry mindset, with the global hotel group positioning itself as a hospitality provider that can deliver a fully personalised local travel experience. The homepage features destination scenes and flags up destination- and hotel-driven offers and the website includes a travel itinerary building tool called ‘My Trip Planner’, backed up by a library of guidebook-style destination information.
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FACE FACE TO TO FACE FACE
RULES OF ENGAGEMENT Alex Kyriakidis, president, Middle East & Africa, Marriott International, explains how the hotel group is embracing digital marketing and social media strategies to keep pace with guest engagement trends ALEX KYRIAKIDIS
What marketing and technology trends are defining the hotel industry right now? There is a real shift towards more meaningful engagement with guests - engagement that is responsive to their immediate requests and that communicates with them before, during and after their stay. Guests are also on the move with mobile and tablet usage increasing - the allimportant Gen Y group is leading this trend. They seek mobile-friendly websites, hotel apps, reward programmes using the latest technologies as well as strong social media presence. It’s also driven the need for hotels to offer free Wi-Fi connectivity. Marriott recently announced plans to provide free internet access to all 48 million members of our Marriott Rewards loyalty programme from Janu18
HOTEL NEWS ME FEBRUARY 2015
ary 15, 2015. This is a win-win move for us as it allows us to respond the evolving needs of our guests and build long-term relationships with them. How is Marriott engaging the Gen Y demographic? Catering to Millennials and younger generations will become increasingly important. Marriott Hotels has conducted extensive research into this segment, which in the Middle East and Africa comprises one quarter of all our guests. We created a multi-year global marketing campaign called ‘Travel Brilliantly’. This draws on the personal passion points and values of the next-generation traveller to create a visual that is emblematic of the new Marriott Hotels experience. It also defines the future of travel by wel-
coming guests to submit their innovative travel ideas to help make every Marriott stay a brilliant experience. This dialogue reflects how the lifestyle of Gen Y travellers, who blend work and play in a mobile world, can change their travel experience. What role does social media play now play in marketing your properties? The role of social media in marketing hotels is more important than ever before. A survey by leading online statistics portal, Statista, found 48% of respondents believed that by 2017, social media would be more important that pay-per-clicks via online advertising. Earlier this year, Marriott International launched Middle East and Africa Facebook and Twitter social communities allowing
FACE TO FACE
HOT STATS Marriott International research conducted with Viacom revealed: q PG (FO : HVFTUT BDDFTT .BSSJPUU JOGPSNBUJPO BOE CPPLJOHT on their smartphones. q PG USBWFMMFST XPO U CPPL B IPUFM TUBZ XJUIPVU DIFDLJOH POMJOF SFWJFXT GJSTU q PG USBWFMMFST XIP TFBSDI POMJOF GPS SFWJFXT BSF JOGMVFODFE CZ UIFTF SFWJFXT
our guests to engage directly with us. From our own research we discovered Gen Y in this region is more likely to request Arabic as a preferred language in comparison to other generations, and in response to this we provided social media content on our MEA pages in both English and Arabic. They are the only Marriott International dual language platforms, signalling our commitment to tailoring our approach to what fits best. To bolster our presence across these platforms, we recently launched our #30DaysOfMarriott competition giving page Likers the chance to win prizes from more than 15 Marriott properties across the MEA. The competition increased our likes by 82%. What other Marriott initiatives cater to Gen Y behaviour? Our research also found that 49% of Gen Y guests communicate with us via their mobile devices whether it’s accessing Marriott information or making bookings. Our launch of online platforms and mobile apps allows travellers to check-in and out easily and play a role in increasing Gen Y engagement. Since the app was launched in 2013, the check-in feature has been downloaded 2.5 million times and Marriott.com and receives over 4.5 million visitors a month from smartphones. Our Marriott Rewards programme has also been adapted with the mobility trend in mind, with members receiving a push notification on their Apple iPhones or Android devices after 4pm on the day before their arrival alerting them they can check-in. Then they receive an automatic notification when their room is ready. Because payment information is stored within members’ profiles, guests simply walk
FACE TO FACE
49% OF GEN Y GUESTS ACCESS MARRIOTT INFORMATION AND BOOKINGS ON THEIR SMARTPHONES
HOT STATS q PG USBWFMMFST SFGSBJO GSPN CPPLJOH JG UIFZ SFBE OFHBUJWF reviews. q PG UIF HMPCBM XPSLGPSDF XJMM GBMM JOUP UIF (FO : TFHNFOU CZ q PG UIF HMPCBM QPQVMBUJPO GBMMT JOUP UIF .JMMFOOJBMT CSBDLFU q PG UIF .JEEMF &BTU QPQVMBUJPO JT UIF .JMMFOOJBMT EFNPHSBQIJD q PG .JMMFOOJBMT JO &HZQU BOE JO 4BVEJ "SBCJB TBZ UIBU UIFZ XPVME SBUIFS TUBZ BU IPNF UIBO HP on holiday without internet access.
“OUR RESEARCH ALSO FOUND THAT 49% OF GEN Y GUESTS COMMUNICATE WITH US VIA THEIR MOBILE DEVICES�
up to the expedited mobile check-in desk where their pre-programmed key card will be waiting for them. How will you evolve Marriott Rewards to keep pace with next-generation demands? We are currently testing new concepts and innovations with our Marriott Rewards Gen Y members in mind. We have learned a key Gen Y trait is instant gratification and so one concept we are working on is called Plus Points, which allows members to earn 20
HOTEL NEWS ME FEBRUARY 2015
points in real time through social media interactions with Marriott Rewards. This allows us to amplify our social media presence and have a two-way dialog with our Gen Y members. It helps to satisfy their desire for instant gratification by rewarding them for their interactions with us. How do you believe hoteliers interact with their guests in the future? I can see a trend in the outsourcing of con-
cierge facilities to call centres that provide ‘click-to-chat’ facilities whereby online resources respond to customer needs. I predict hoteliers will not completely embrace all concierge facilities via digital means until 2020 and while online concierge tools will be used to manage bookings and activities, and drive efficiencies by having information available in real time, Marriott International will continue to use its associates and latest technologies to fulfil guest needs and enhance their experience.
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Hit the Top
MID-SCALE HOTELS
KEY TIMING Mohammed Awadalla, CEO, Time Hotels
How many hotels do you currently operate in the UAE and how have these properties performed? We currently operate seven properties within the U.A.E including TIME Oak Hotel & Suites in Al Barsha, Dubai, TIME Grand Plaza Hotel in Al Qusais, Dubai, TIME Opal Hotel Apartments, Dubai, TIME Crystal Hotel Apartments, Dubai, TIME Topaz Hotel Apartments, Dubai, TIME Ruby Hotel Apartments, Sharjah, Pearl TIME Residence , Abu Dhabi and Zakhar TIME Residence in Abu Dhabi. Considering all of these openings, 2014 has been our best year yet in terms of performance which indicates a positive sign that the market is improving in comparison to 2013. What are the key factors driving demand and occupancies at your properties and what are your key source markets for business and why? TIME operates mid-range, non-alcoholic properties across the region, they are primarily business focused hotels but have the added benefit of being situated ideally close to main retail centres. Our apartment hotels are perfect for short term family leisure breaks including weekends and Eid and of course for the Dubai Shopping Festival (DSF) and the Dubai Summer Surprises. Another factor such as low cost air carriers like flyDubai and Air Arabia are expanding rapidly around the region, driv22
HOTEL NEWS ME FEBRUARY 2015
Mohammed Awadalla, CEO, Time Hotels, discusses the brand's future pipeline plans and how midmarket hotels are making headway throughout the MENA region
ing in more travellers including GGC families looking for hotels that offer better value for money.
ing at areas where TIME does not currently have a presence, such as Oman and Saudi Arabia to try and broaden our portfolio.
You recently opened Zakher Time Residence in Abu Dhabi and have another two in the pipeline for the city due to open in 2016, why would you say it has been important to expand the portfolio within this area? Abu Dhabi is growing steadily, developing major attractions such as Ferrari World, Yas Water World, Yas Mall and the Yas Marina Circuit. Saadiyat Island is being developed as the city’s cultural centre and three museums are planned to open there by 2017, including extensions of the Louvre, Guggenheim and Zayed National Museum. Abu Dhabi not only has a huge corporate and MICE segment, but the number of tourists have almost tripled since 2004, from less than 1 million to approximately 2.8 million visitors in 2013. We felt that there was a gap in the market for Shariah-compliant mid-scale apartment hotels in the capital to satisfy the demand for GCC families as well as corporate stays. What happens from 2016 onwards in terms of your ongoing expansion strategy? We feel that there is room for more five-star non-alcoholic concept hotels and resorts within the region, so our aim for 2016 is to try and acquire a greater representation in that segment as well as expanding our TIME express brand. We will also be look-
What areas of the UAE and the region will be your target going forward and why? There is a growing demand not only in UAE but across the Gulf, especially in Saudi Arabia for new value brands with a quality pedigree from respected operators. One which travelers can trust to deliver on cost, comfort and connectivity. Time represents mid-scale brands – what potential is there for this type of property in the region and how will your upcoming properties cater to pentup demand in this respect? We believe that demand for mid-scale hotels within the region will grow faster than any other segment, especially the luxury segment. Middle East businesses and indeed business travelers are mindful of budgets and in many cases prefer non-alcoholic accommodation, which not only represent value for money but are culturally comforting. In addition, TIME appeals to price sensitive markets such as transiting airline passengers and stopover budget tour groups, especially those looking for little more than a hearty meal and some last minute shopping.
MID-SCALE HOTELS
“WE BELIEVE THAT THE DEMAND FOR MID-SCALE HOTELS WITHIN THE REGION WILL GROW FASTER THAN ANY OTHER SEGMENT, ESPECIALLY THE LUXURY SEGMENT” Which factors would you say are driving demand forward for more budget and mid-scale hotels across the UAE? Government initiatives such as the Dubai Summer Surprises and Dubai Shopping Festival plus the Dubai Expo 2020 which is expected to bring in over 20 million visitors are just a few of the factors driving demand forward. Many experts see the mid-scale hotel sector holding the greatest growth potential, especially apartment hotels. There is also the factor of providing a wholesome family offering, where quality four-star accommodation combined with the convenience of being located within walking distance to the metro, shopping malls and other family entertainment venues, will always drive demand forward.
Do you intend on expanding your offering to include other brands and categories such as budget or top-end hotels, if so, how? We are introducing our new budget TIME Express brand to the region following the signing of an MOU to launch the TIME brand in Saudi Arabia as well as two additional locations in Dubai. The city centerbased properties will target value-driven business travellers looking for no-frills quality accommodation with guaranteed high-speed Internet access and basic business center services. TIME is talking to several potential partners in the Kingdom about a rollout plan for TIME Express across the country, targeting key gateway cities and urban locations that are currently underserviced when
it comes to quality accommodation for this specific and fast-growing market segment. How has the upcoming Expo 2020 impacted your business development strategy? The Expo 2020 bid is expected to bring up to 25 million visitors to Dubai alone, 70% of which will come from overseas, and will yet again raise the profile of the UAE. Bank of America’s Merrill Lynch has said “that hosting the event could positively impact GDP by up to US$23 billion between 2015 and 2021 which, combined with Alpen Capital’s forecasted rise in tourism receipts by 67% over the next few years puts the industry in prime position to capitalize on this opportunity.”
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The Hoteliers
DAVID ALLAN, GENERAL MANAGER, RADISSON BLU DUBAI MEDIA CITY
OBJECTIVE OUTCOMES Hotel News ME gathered a group of expert GMs to discuss the changing landscape of the industry, future hopes and growth anticipation
The Hoteliers
WAEL EL BEHI, GENERAL MANAGER, HAWTHORN SUITES BY WYNDHAM JBR
This month Hotel News ME, in association with Rikan General Trading held a roundtable event at the Radisson Blu, Media City to discuss the main challenges faced by the industry and what the experts wholesomely anticipate to see for the upcoming year in terms of growth.
SAMIR ARORA, GENERAL MANAGER, RAMADA DOWNTOWN
FREDRIK REINISCH, REGIONAL GENERAL MANAGER, UAE & SEYCHELLES, JA RESORTS & HOTELS
ROB COLLIER, GENERAL MANAGER, RADISSON BLU RESIDENCE DUBAI MARINA
What according to you, will be the single most important trend to be seen within the Middle Eastern hospitality industry in 2015? Allan: What I hope is going to be the most important trend going into 2015 is the supply coming into the market. That the majority of hoteliers recognise they drive RGI best by pushing rates rather than the majority positioning themselves in the defector position of our occupancy strategy, that it is no longer going to be viable going into 2015. Reinisch: I completely agree, this year it is very important with the increased supply and the small glitches within the market, it is more important for hotels and resorts to focus on the unique competitive advantages, instead of just joining the rate game that we see. We do not just want our properties to become another commodity, so it is really very important to talk about how unique our various properties are. Mansourian: We must also not forget that there are however, many plus rooms around, and that often IN ASSOCIATION WITH
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makes it very difficult to achieve your average room rate and to fill at complete occupancy. It is all good and well to work in a hotel and wear a nice suit, but we have to put plans around, budgets in place. We have a hard year in front of us. Aditionally, you have to have a good team and be a hands on person. I open it in the morning and I close it in the evening, this is my business. Sometimes I can spend up to 20 hours at work, so you can’t be a person who does a 9 to 5 and turns around and goes home, its full time job. Purcell: It remains a typical buyer's market totally driven by price. All are in agreement that increasingly higher booking volumes pass through intermediaries that are putting pressure on rates. This trend will continue to grow and I would love to see the RGI go up, but the reality is a much bleaker picture. In the UAE there are three markets, Dubai Abu Dhabi and the rest of us, Ajman falls into the rest of us, and the rooms available are picking up but not the occupancy and not the rate.
FERGHAL PURCELL, GENERAL MANAGER, AJMAN PALACE HOTEL
FERNANDO GIBAJAS, GENERAL MANAGER, JUMEIRAH ZABEEL SARAY
ROXANA JAFFER, CEO , SOVEREIGN HOTELS DUBAI
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The Hoteliers
MARKO JANSSEN GENERAL MANAGER, MELIA DUBAI
PETER MANSOURIAN, GENERAL MANAGER, GRAND MILLENNIUM HOTEL DUBAI
JEFF SHEARER, GENERAL MANAGER, CITYMAX HOTELS
ELENI TSOLAKOU GENERAL MANAGER, CENTRO BARSHA, DUBAI
"I THINK THE CORPORATE MARKET IS GOING TO BE SIGNIFICANT THIS YEAR, I THINK THAT PROPERTIES HAVE POTENTIALLY BEEN FIGHTING FOR CORPORATE SHARES IN THE PAST AND THERE HAS BEEN A SIGNIFICANT SHIFT IN THE LAST QUARTER" - COLLIER
Tsolakou: We are currently hearing about the rates in the market and over the summer they are due to drop, and hotels that keep slashing the rates don’t even manage to break even. If we keep on slashing the rates, what do we do? Do we just work for nothing? So yes, I understand there is a hit in the market and a big hit in the Russian market which has a trail on effect. Shearer: I think there is a little statement to make about room rates, there’s no way we can hold a mark on room rates in the UAE. Anyone who has ever been on a down-mark knows it is not beneficial. You need to assess the market and leisure factors. We have to diversify and you’ve just got to make sure you hit that spread. I think everyone else is pulling down the rates and if you look at the OTA’s you can see some of those rates dropping. You’ve got to look at the market place and look at your position in the market place
and plan when you can. Collier: I think the corporate market is going to be significant this year, I think that properties have potentially been fighting for corporate shares in the past and there has been a significant shift in the last quarter. I think that’s going to continue into this year. I believe we are all going to be fighting for the same thing in terms of corporate business and fingers crossed, we can have a little bit of confidence not to drop too much out too early, because then it would become a real touchy situation. Jaffer: People have got more money in their pocket, especially the importers. Africa is a market we should be tackling now because they are becoming more important and we can see that already. The picture here is focusing on the segment we ought to be targetting, we are not as aware to brand as the previous generaFEBRUARY 2015 HOTEL NEWS ME
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"Last year the returns were around 12-15% which is a real dream for owners but if you look at the bench mark, the bench mark is between 8-10%" - El Behi tion were. We are more technically savvy so perhaps our marketing should be changing to show we are going more towards the millennial mindset. Tap into that and re-group with the bosses. Eventually, they will have to bring the prices down which will make travelling cheaper, that is undisputed by around April/May. There are pros and cons but on the contrary if prices go down the infrastructure will also go down in this region. I was reading an article in Gulf News where Saudi government is also planning to cut down because 15% of their budget is towards payroll and that is a significant market for Dubai. Jaffer: So to tap on your point people who are not oil exporters but oil importers are now seeing that oil is cheaper for
them and middle class people have a lot more money to spend and what they will want to do is built on their horizons and travel to places like Dubai. Which I believe will create a much bigger influx by 2016. Reinisch: Don’t forget there are three theme parks under construction that will be invested in by millions of people and we will not have enough room when it’s ready. We have to see this as a blip in the market and a very painful one at that. In the long term we need more rooms, as a company of course we are trying to bridge the gap between budgets and revenues and profits. Hotel apartments are still in profit, they are still doing very well. Our plan and focus now is to have an inventor ready for 3 to 4 years’ time.
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What are the avenues for growth within the industry over the next few years? Jaffer: With a drop in oil prices, the trouble hitting an old time low, Iran and its softened US sanctions, Dubai will witness a change in feeder markets, a greater growth being witnessed from emerging and oil importing markets, whose consumers have more money in their pockets as petrol prices drop. Since Dubai has lent itself to being a destination worthy of once in a life time visit, it will also be attractive to mature markets like China & India and we have to be ready for a greater use of our welcomes of Ni hao & Namaste. El Behi: Last year the returns were around 12-15% which is a real dream for owners, but if you look at the bench mark, the bench mark is between 8-10%. Across Dubai last year, most of the owners got between a 1215% return.
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Tangible stats from 2013 vs. 2014, the first 6 months there was a 6% increase in guest visits, 15% increase in total revenue and so the indicators are promising. Moving ahead, I think this year it is all about hotels with complications with price value that might take a strategy.
Arora & Mansourian catch up after the debate
Gibajas: The key for us is to just maintain the rates for the moment. We do however have a tactic and we know that the guests are coming back to us for the service. I mean if you want to drop the rates then drop the rates, but how are you going to maintain the service and the product? His highness has a vision and he wanted to make sure we had 12 million visitors into the country, so I see a massive emphasise on growth. Janssen: You are talking about new competition coming in from the market place and when something like that happens you have to look at your own property and say have I got this right and where you are placed in the market place and what position you are in vs. what position they are in on the market place. Where are they getting their market share? We see long term; we cannot judge the next 6 months because the indicators are there that there is room for growth. Shearer: STR has forecast that this year there has been a 7% increase in supply and a 5% increase in demand. So revenue is 0.9 in comparison to last year. So far 2015 to 2016 is on the up, it is also very important to have the right people involved in your team.
Purcell & Gibajas exchange notes on the discussion
Reinisch: There are three theme parks in constructions that will be invested in by millions of people and we will
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Left to right: Janssen, Purcell, El- Behi, Collier, and Allan listen in
"WE REALLY HAVE TO GET A LOT BETTER AT TREATING OUR PEOPLE. IT IS NOT JUST THE SALARY WE NEED TO LOOK AT, BUT WHERE THEY LIVE, WE HAVE TO LOOK AT HOW WE TREAT THEM AS HUMAN BEINGS AND WE’VE GOT TO RETAIN THEM" - PURCELL Shearer imparts with some infustry insights
not have enough rooms when they are ready. In the long run we need more rooms, as a company of course we are trying to bridge the gap between budgets, revenues and profits. Hotel apartments are still in profit and they are still doing very well. Our plan and focus now is to have an inventor ready for 3 to 4 years time. What is the one thing that hoteliers are currently not paying enough attention to
that should ideally be addressed? Purcell: We have to be very careful that we don’t focus too much on the product instead of the people and the service. We are all going to be competing on the same level of rates, what is going to set us apart is the quality of service. We need to start training and developing our people, I’ve just come from over-seas and it really is horrifying some the things we do here to get better. The people are our biggest asset, not the
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rooms, not the lobby not the variety of restaurants that we have, it’s about the level of service we get from the concierge and the staff. We really have to get a lot better at treating our people. It is not just the salary we need to look at, but where they live, we have to look at how we treat them as humanman beings and we’ve got to retain them. Eleni: It’s our biggest problem, sourcing takes 45% of our budget and that’s a huge
THE PANEL
"IT’S OUR BIGGEST PROBLEM, SOURCING TAKES 45% OF OUR BUDGET"- TSOLAKOU
The GM's catch up on the debate
expense and we see how employees are turning around. Jaffer: Talent retention is another important strategy. Research shows that 46% of employees expect to move jobs in two years, staff turnover costs eating into profits. Focusing on loyalty schemes or bonuses related to preset KPI get hit on the head as competition from new hotel openings take effect when carrots are waved. Hoteliers do not pay attention in mounting strategies to make work colleagues belong by looking into a work ethic of empowerment, self worth and dignity by developing a work culture that is difficult to depart from.
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The GM's deep in discussion
"TALENT RETENTION IS ANOTHER IMPORTANT STRATEGY. RESEARCH SHOWS THAT 46% OF EMPLOYEES EXPECT TO MOVE JOBS IN TWO YEARS, STAFF TURNOVER COSTS, ESSENTIALLY EATING INTO PROFITS" - JAFFER
Allan discusses his news to the group
Such strategies are only as good as the leaders and should be aligned to business strategies, to be working in tandem and not on an ad-hoc basis, to be sustainable. Gibajas: It is very much about paying more attention to the people that work for us. When I first started the first think gI notched that I had to do was look at my people, because I had a high rotation I needed to understand what was going wrong, so I spoke to my owners and informed them that we would change the staff caferetia, I now eat there and keep up to date with my peoples needs. As hotelier we have to pay more attention to the people that work for us.
Left to right: Tsolakoui, Shearer, Arora & Gibajas
Samir Arora: We also need to lok at our recruitment strategy as hoteliers, we need to take more time and more responsibility in terms of who we recruit and keeping them in the orgaisation, more emphasis on training and development. There are many skilled people that have been working within the same industry for over 20 years with no room to progress. We need to make more room for progression.
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WHAT SETS US APART
Connecting continents Fredrik Reinisch, regional general manager of the UAE and Seychelles, JA Resorts & Hotels tells Sophia Soltani what factors he credits his successful career to, differentiating hospitality markets and the pressures of his role
VIEW FROM INSIDE THE LOBBY AT JA OCEAN VIEW HOTEL
“PEOPLE TELLING ME THAT IT IS DIFFICULT OR IMPOSSIBLE ONLY MOTIVATES ME FURTHER” Your first step into the hospitality industry was as assistant front office manager, how would you say this attributed to your career path to date? My early career was in restaurants, mainly in service. Then I did a two-year stint in the army, first in Sweden and then a spell as a peacekeeper in Bosnia. I also studied Hotel management in Sweden and in the UK. I think that front office is a good learning ground; you are constantly in touch with all departments so you get a good overview of the hotel. What would you consider to be your greatest achievements within the history of your career and why? I think leading the team as general manager at JA Jebel Ali Golf Resort, especially when the property was expanded and improved in 2012-2013. We added inventory, separated the two properties and implemented 34
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world-class sports and leisure facilities. We also came up with the ‘hotel-within-hotel’ product concept at JA Palm Tree Court called The Residence, which is now popular amongst celebrities and royalty. During this period we also rebranded the company to JA Resorts & Hotels so it was a very hectic time. I remember saying to the team when reviewing the deadlines, “this is impossible but we just have to do it anyway”, and so we did! What would you say are the challenges and pressure points of being the GM for the UAE and the Seychelles? The main challenge is that we really have one of each property type, one beach resort, one mountain hideaway, one city hotel, one luxury hotel apartment and one private island resort. Bateaux Dubai also belongs to us and we have Al Sahra Equestrian Resort in Dubailand. We own properties, lease them
and operate others under management contracts so the circumstances vary between the properties. All of this ensures that two days are never the same. Being in charge of two completely different regions, how does the market in the Seychelles differ to the UAE? The Seychelles is a boutique market relying heavily on the luxury segment. Luckily, our resort has been welcomed by high net-worth individuals who seek a hideaway experience and appreciate the private pools and beach that all the villas feature. In general, I would say that the luxury segment is more bullet proof as high networth individuals will always travel, even if they come from some of the markets that are currently going through a downturn. The Seychelles will now also benefit from new direct flights from China and India, which is very good news indeed.
WHAT SETS US APART
FREDRIK REINISCH, REGIONAL GENERAL MANAGER OF THE UAE AND SEYCHELLES, JA RESORTS & HOTELS
Having recently announced that the new JA Jebel Ali Hotel is set to open in 2017, at present, what would you say are the top priorities and major ambitions for this project due to open in 2017? Actually it is a hotel in addition to JA Jebel Ali Beach Hotel, so a third property within the resort which will bring our inventory close to 700 keys. Hopefully we will be in the ground at the middle of this year. We
know that there will be huge demand for rooms in the Jebel Ali area once the theme parks open up in 2017. Al Maktoum International Airport is also picking up pace and we are starting to see demand from that area, especially corporate business and FIT’s. We are also planning to add approximately 20 luxury villas with private pools at a secluded area of the resort, which will be a standalone concept catering for the GCC market and HNI’s. We cannot wait to get these ready as the demand is already there and we have to turn the business away at the moment. Expo 2020 is of course also in the background but we are not using this as a key component of any feasibility studies.
rates and promotions; I think that caution is required. We must refrain from going too far and simply treating our rooms as a commodity. I would recommend offering added value to the guests and focusing on your unique competitive advantages, nobody wins in a rate war.
What do you think that 2015 will be like for the UAE’s hospitality sector? We will certainly have some challenges in the hospitality industry due to the lack of travellers out of the CIS market, which in the past has been a very active travel market. Hospitality is becoming an even more competitive industry in the UAE especially with
What do you do when you are not busy at work? I like to spend time with my family, especially going camping around the UAE. My wife and I also like to go out and try new restaurants in Dubai. I also do Thai Boxing three times per week, a great way of getting any stress out of the system.
How would your employees describe you? Firm, fair and friendly, I hope! Also curious and stubborn, people telling me that it is difficult or impossible only motivates me. I also focus on being a good listener as it never fails to surprise me how you can pick up ideas or solutions from people, even outside their area of responsibility or from more junior team members.
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ON E H T D N U O B E R
Industry analysts tell Gemma Greenwood why some of the region's most beleaguered hotel markets are bouncing back in 2015
EGYPT BAHRAIN ABU DHABI
LEBANON
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The analysts
HALA MATAR CHOUFANY, REGIONAL DIRECTOR, HVS GLOBAL HOSPITALITY SERVICES, DUBAI
PRABIR CHETIA, ASSOCIATE VICE PRESIDENT, ARANCA
PHILIP WOOLLER, MIDDLE EAST AREA DIRECTOR, STR GLOBAL
NIKOLA KOSUTIC, RESEARCH MANAGER, EUROMONITOR INTERNATIONAL
ON THE REBOUND The Middle East is a region accustomed to political turmoil and instability and some of its most popular business and tourism destinations demonstrate a remarkable resilience in the face of adversity. From terrorism attacks to civil war, countries in Northern Africa and the Levant in particular have suffered repeated setbacks, but they have also proved their ability to bounce back against all odds. The revolutionary impact of the Arab Spring has caused shockwaves throughout the region since 2011, dampening the performance and development of many hotel markets. Yet 2014 marked the start of another recovery phase, with markets such as Egypt, the king of comebacks, witnessing an upswing in fortunes. Confidence has returned following a marked period of political stability under President Abdel Fattah El-Sisi and Egypt is back on both the tourism and
investment maps. The Bahrain market has picked up too, with positive investor sentiment re-igniting the hotel pipeline and speeding up property openings. Inklings of market recoveries are also evident in Lebanon, Jordan, Kuwait and Abu Dhabi to varying degrees. However, analysts such as Aranca’s associate vice president, Prabir Chetia, note the Middle East hotel market’s overall performance remains “significantly below pre-recession levels in both nominal and real terms”. Citing STR Global data, he says: “In November 2014, the region reported a 4.8% year-on-year increase in occupancy to 67.4%, a 2.4% decrease in average daily rate (ADR) to US$174.28 and a 2.3% increase in revenue per available room (RevPAR) to US$117.40.” He says a number of global factors will play havoc with the region’s hotel industry performance in 2015 with the collapse of the
Russian Rouble already impacting the sector. “Hotels in the Middle East, particularly in Egypt and the UAE, are struggling to find ways to keep business flowing from Russia, which is a key tourism market,” he says. Philip Wooller, Middle East area director, STR Global, says diminished tourism and investment flows from Russia, combined with plunging oil prices could “create financial challenges across the Middle East”. “As a consequence, some larger projects could be put on hold that could impact the hotel business,” he says. But Hala Matar Choufany, regional director, HVS Global, argues the major challenge for most of the region’s hotel markets over the next two years will be excess inventory. “I think 2015 and 2016 will see slow growth in all sectors due to oversupply and aggressive development plans, which will be further amplified by global factors,” she says. “Demand won’t catch up until 2017.” FEBRUARY 2015 HOTEL NEWS ME
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EGYPT
Egypt experienced a “challenging first half ” in 2014 due to the “unstable domestic situation”, says Chetia. Tourism revenues over this period slumped 25% to US$3 billion, compared to the same period the previous year. “However, in H2, 2014, the economy and the tourism sector witnessed gradual improvements,” he says, “The increase in corporate demand in Cairo was a driving factor for the sector stability.” He notes that in August 2014, the Egyptian capital’s tourism revenues increased 220% year on year. STR Global’s Middle East area director, Philip Wooller, stresses how Cairo reported a “substantial occupancy growth” of +122.8% in Q3, 2014 as the political environment became stable and tourism returned. “However, occupancy was still below 50% at 46.6%, so there is still some growth to be had before it reaches pre-crisis levels,” he says.
“Cairo remains a good value-for-money destination, with continued low rates contributing to the occupancy growth. Nonetheless, rates have increased by 13.1% on a year-over-year basis.” Wooller also highlights Hurghada’s significant 52.5% occupancy increase of 52.5% with an “even lower ADR than other parts of Egypt”. He believes Egypt’s current hotel market pick up is “promising”. “The economy is recovering, general country stability is more evident and travel advisories are being lifted,” he argues. GCC tourism to Egypt is playing a significant role in boosting inbound arrivals, says Hala Matar Choufany, regional director, HVS Global Hospitality Services. “A lot of Saudis travelled to Egypt this summer (2014) because it’s become safer and quieter,” she says. “There is also a lot of support from the UAE, with one investment firm [HVS is working with]
looking to pump AED 50 billion in Egypt’s hospitality industry. “It’s always been an investment market for the GCC and the combined efforts of the Egyptian Government and its GCC supporters will help in Egypt put its tourism industry back on track.” Aranca rates Egypt’s rebound status as ‘medium’ says Chetia. “Egypt is by no means wholly stable; however, tourist numbers are expected to rise by up to 10% and recover to pre-uprising levels of 14.7 million visitors by end of 2015,” he says. “The Russian market, Egypt’s biggest tourism influx source, is expected to see a cumulative increase of 38% from 2014 to 2018 and forward hotel bookings have increased, driving the sector on its way to recovery in 2015.” Dangers threatening the rebound, he adds, are “Islamic State-inspired militants operating in the chaos of a post-Gaddafi Libya who are seeking to topple the Cairo government”.
nese returning home,” she argues. Tourism arrivals to Lebanon declined 19% year-on-year in 2014 due to unrest in neighbouring Syria, adds Chetia, quoting UNWTO figures. “Hotel reservations dropped by 13% compared to 2013 and occupancy rates at the end of 2014 stood at below 55%,” he continues. Hotels suffered a 5% dip in profitability as they were forced to cut their room prices by 50% to attract tourists. But on a positive note, he points to occupancy improvements in H2, 2014, as tourist arrivals increased 5% after Saudi Arabia lifted its travel ban on Lebanon in June 2014. “Sector growth seems positive for 2015 and
Lebanon is expected to benefit from a greater influx of tourists if the domestic security situation remains stable, especially when compared to the low tourist turnout in 2014 during a streak of suicide bombings and internal clashes,” Chetia concludes. Kosutic adds: “As soon as the situation is resolved in Syria, and travel bans are removed, tourists from Gulf countries will quickly return to Lebanon in the same numbers than they did before. This has been the case in all previous Lebanese conflicts. The only potential issue is that for now, tourism to other regional destinations will increase, and some, such as Turkey, easily have the potential to replace Lebanon as a Gulf tourist favourite.”
LEBANON
Analyst opinion on Lebanon’s status as a re-
covering hotel and tourism market are divided. “Lebanon seems to be recovering,” says Wooller. “Perhaps it is still a little fragile but, as a hugely desirable destination, tourists are returning. He says October 2014 year-to-date data showed occupancy rates increased by 1.5% to 48.6%, “so there is still a significant amount of room for additional growth”. Choufany says Arab visitation to Lebanon is limited given the country’s borders with Syria remain closed. “There has been a movement in arrivals, but this doesn’t necessarily translate into room nights because rather than tourists, it’s the Leba38
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JORDAN
Jordan’s 2015 prospects are also a topic for hot debate. Chetia stresses the country’s improved tourism sector performance in 2014, with visitor revenues up 10% year on year to US$3.5 billion. He says the promotion of Jordan as a religious destination drove y-o-y increases in visitor number to Jerash (19%), Karak (15%) and Madaba (15%). “By 2015, Jordan plans to increase the number of international visitors (currently around 8.2 million) to 9.4 million,” he says. Tourism receipts for 2016 are forecast at US$5.9 billion, Chetia adds.
But Choufany views Jordan as a “struggling market”, stressing that while Amman’s hotel industry has witnessed improvements, unrest in neighbouring Syria is causing market stagnation in general. She says Jordan needs to emulate Egypt’s strategy by pumping cash into tourism promotion initiatives. Kosutic agrees: “Despite having rather ambitious plans for the development of tourism, Jordan’s marketing budget for the sector is still limited and would have much to gain from more promotions and advertising activities,” she says. “Exposure is limited in terms of the number of
countries targeted, and outreach for potential tourists is also restricted.” But she points to Aqaba in the south as a potential success story over the next few years, thanks to “significant economic growth” driven by infrastructure investment in the city. “The Aqaba Special Economic Zone is the authority in charge of the development of the area and is allocating 50% of its investment to the travel and tourism industry,” she notes. “There are cruise facilities being developed, and the city as a whole is being promoted as a stand-alone destination for tourism, independently from the rest of Jordan.”
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WHAT THE HOTELIERS SAY HILTON WORLDWIDE Christian Grage
vice president of operations, Arabian Peninsula, Hilton Worldwide In Egypt, where we operate 18 hotels, with a further five in the pipeline, we continue to support government and private sector initiatives to attract visitors. In the last months of 2014, we saw avpositive impact on trading following a sustained period of political stability in the country, as well as the easing of travel restrictions from many important source market countries, including Germany – all of which has contributed to an uptick in visitors. In 2015 we will open the Hilton Alexandria Resort, which we believe will set new heights among upscale resort offerings in Egypt.
ROTANA Omer Kaddouri president & CEO, Rotana We opened ART Rotana Bahrain in 2014 and Banader Rotana in the first week of January, so we have one of the biggest inventories in the kingdom (across three properties). Business is coming in locally, from Bahrain, as well as Saudi, the GCC and Europe and while a lot of guests are corporate, often from the financial sector, more is being done to attract leisure tourism.” “We are seeing business improve dramatically at our property in Egypt – it’s up 30% year on year – with increasing business coming out of the UK, Germany and Russia as more airlines fly there again. With the new government there seems to be a confidence that wasn’t there before and the general pipeline of hotels planned for Cairo looks quite strong.
BAHRAIN KEMPINSKI HOTELS Avsar Koc regional director of sales & marketing India, Middle East & Africa, Kempinski Hotels We opened Kempinski Nile Hotel in the summer of 2010 in the best part of Cairo, right on the banks of the Nile. Just a few months later the GM and the staff were on lock down in the hotel as protesters filled the streets on their way to Tahrir Square, which is less than a kilometre away. But Egypt is Egypt – it has always been, and always will be a great tourist destination. After the Arab Spring the destination struggled to attract a steady stream of visitors, but the Egyptian Tourism Board has done a fantastic job to reach out to travellers with its advertising campaigns in times of trouble and its recent ‘We miss you’ campaign was all over billboards in Dubai just in time for last year’s Eid Break. We saw a significant increase in visitors from the GCC in the second half of 2014 and expect a steady increase in guests again this year. We are confident in the long-term resilience of the destination and are preparing to open our second hotel in Cairo later this year, which will be our third hotel in Egypt. A market Kempinski is optimistic about in the long term is Lebanon. While it is experiencing a slower rebound compared to Egypt, we believe in what Lebanon has to offer as a destination and we are re-opening a well-loved resort in Beirut later this year, Kempinski Summerland Hotel & Resort. Travellers from the region love the destination, and have been returning in greater numbers in the past 12 months. There is also a steady flow of the Lebanese diaspora who come to visit family and friends, and one of our biggest markets is actually the local population. If there is one thing you can count on, no matter what happens in the region it’s the joie de vivre of the Lebanese. This makes them a key market for us and will draw them to our property where they can enjoy our restaurants, spa, and the best beach club in Beirut.
MARK WILLIS, Area vice president Middle East and sub-Saharan Africa, The Rezidor Hotel Group A market Kempinski is optimistic about in the long term is Lebanon. While it is experiencing a slower rebound compared to Egypt, we believe in what Lebanon has to offer as a destination and we are re-opening a well-loved resort in Beirut later this year, Kempinski Summerland Hotel & Resort. Travellers from the region love the destination, and have been returning in greater numbers in the past 12 months. There is also a steady flow of the Lebanese diaspora who come to visit family and friends, and one of our biggest markets is actually the local population. If there is one thing you can count on, no matter what happens in the region it’s the joie de vivre of the Lebanese. This makes them a key market for us and will draw them to our property where they can enjoy our restaurants, spa, and the best beach club in Beirut.
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COUNTRY FACE REPORT- QATAR FACE TO TO FACE FACE
SUPERSIZE QATAR Qatar is ploughing billions into big infrastructure projects as the Gulf state fast tracks its diversification strategy and gears up to host one of the world’s top sporting occasions, the 2022 FIFA World Cup
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HOTEL NEWS ME FEBRUARY 2015
COUNTRYCOUNTRY REPORTFACE TO REPORT QATAR FACE
Lusail City: Set for completion in 2019, Lusail
beachfront island; leisure and watersports facilities;
land near West Bay Doha’s business district is ongo-
City is Qatar’s largest single development and will
food and beverage outlets; plus water parks located
ing with a 2017 completion date said to be on track.
eventually become home to more than 200,000
in a sun-protected garden environment.
New cruise terminal: A new port is being
residents, while 80,000 are expected to visit its entertainment, sports and leisure facilities. Highlights
Barwa City: Located south of Doha, this city,
built to the south of Doha, replacing the old port
include a light rail network, water taxi transporta-
due for completion this year, will include residential
in central Doha, which will be transformed into a
tion system and a cycle and pedestrian network.
areas, schools, hospitals, hotels, a golf course and
cruise terminal.
commercial facilities.
Katara Towers: Lusail City’s flagship project is
Leisure attractions: Hailed the biggest attrac-
Katara Towers, located in the marina district. This
Barwa Al Khor: This is a mixed-use develop-
tion of its kind in the region, the final concept mas-
Katara Hospitality project, with two curved tower
ment to the north of Doha comprising a residential
ter plan for Doha Zoo was unveiled in 2013, while
structures housing a five- and five-star deluxe ho-
component, two hotels, a marina, golf course and
in July 2014, US-based reef developer, Reef Worlds,
tel and luxurious branded apartments, will open in
shopping malls. It will be completed in 2025.
revealed intentions to create unique underwater
early 2017. It will also feature a man-made satellite
Pearl Qatar: The development of this man-made is-
theme parks resorts in Qatar.
7 million
2030
VISITORS TARGET FOR
1.2 MILLION VISITORS IN 2012 1.3 MILLION VISITORS IN 2013
2.6 million tourism's contrubution to gdp in 2012
FEBRUARY 2015 HOTEL NEWS ME
43
COUNTRY REPORT
2015
DOHA EXHIBITION AND CONVENTION CENTRE
(DECC)
2015BARWA CITY 2015COMPLETION OF HAMAD
INTERNATIONAL AIRPORT
HOTEL NEWS ME FEBRUARY 2015
2025
44
BARWA ALKHOR
2017THE PEARL 2019 LUSAIL CITY
Hamad International Airport:
tower is the architectural highlight of the
Phase one of Doha’s new US$15 billion
DECC development and the country’s
airport opened in May with the next
tallest skyscraper. It will be shaped like a
phases scheduled for completion in 2017.
tapering obelisk and house offices, apartments, a hotel and penthouse residencies.
Doha Exhibition and Convention Centre (DECC): Set to open
Qatar Integrated Rail plan:
in Doha’s West Bay area this year, the
Includes 400kms of mainline rail, con-
DECC will offer 90,000 square metres
nected to the planned GCC rail network,
of meeting and conference space and a
plus the metro project with five lines cov-
retail development. It will be connected
ering 260kms.
to the Sheraton Park hotel through an underground tunnel that will also lead
World Cup stadiums: Ten stadia are
visitors to the new crescent-shaped
planned, most with between 40,000 and
Doha Corniche.
60,000 capacity. However, Lusail Stadium, which will host the open-
Doha Convention Centre Tower: This 112-storey, 551-metre
ing and final matches, will be capable of seating 82,250.
CHAIN FOCUS
HILTON WORLDWIDE Hotel News ME profiles the hotel group’s 2014 achievements, its 30/9/14) Middle East including Egypt: future goals, plus it planned hotels, 703 rooms Middle East pipeline 1,169 rooms 221 rooms
Group overview Hilton Worldwide is a leading global hospitality company with a portfolio of 12 brands including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Curio - A Collection by Hilton, Canopy by Hilton, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton Hotels, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations. The company has 4,250 managed, franchised, owned and leased hotels and timeshare properties, with more than 700,000 rooms in 93 countries and territories and manages the Hilton HHonorsÂŽ customer loyalty programme. 46
HOTEL NEWS ME FEBRUARY 2015
rooms
Upcoming Middle East properties (as of 30/9/14) Middle East including Egypt:
52 hotels, 17,354 rooms
2015 openings:
hotel, 336 rooms 438 rooms 10, 884 rooms 3,733 rooms
223 rooms, H1
hotels, 201 rooms rooms
FEBRUARY 2015 HOTEL NEWS ME
47
CHAIN FOCUS
CARLOS KHNEISSER, VICE PRESIDENT OF DEVELOPMENT, MIDDLE EAST, HILTON WORLDWIDE, ON:
In terms of new brands and new signings in the
Dhahran in Saudi Arabia, DoubleTree by Hilton
in Dubai and Hilton Garden Inn Yanbu in Saudi
Dubai Al Barsha, DoubleTree by Hilton Dubai
Arabia in 2017.
Jumeirah Beach, and DoubleTree by Hilton Resort
Worldwide. In September we revealed the scale of our fast-paced growth in the Middle East
upscale segments, and our successful openings are
The latest STR Global data reveals the Middle East
(including Egypt) with the announcement that
testament to that.
hotel development pipeline comprises 637 hotels,
we had surpassed 100 properties, either trading or under development.
We have also announced our third DoubleTree agreement for Dubai DoubleTree by Hilton Dubai
totaling 151,205 rooms. This calls for hospitality companies to recruit
With 51 hotels already trading, our multi-brand
more staff to manage hotel openings and
portfolio continues to perform well. Having
operations. While opportunities abound for the
introduced Waldorf Astoria Hotels & Resorts and trading and a portfolio of properties under
48
the DoubleTree by Hilton portfolio in the region
development following the signing of agreements
– with the opening of DoubleTree by Hilton
to open three properties between 2015 and 2016
HOTEL NEWS ME FEBRUARY 2015
requirements
for
more
trained
hospitality
milestones such
FEBRUARY 2015 HOTEL NEWS ME
49
CHAIN FOCUS
“IN TERMS OF NEW BRANDS AND NEW SIGNINGS IN THE REGION, 2014 WAS QUITE REMARKABLE FOR HILTON WORLDWIDE”
HILTON DEAD SEA RESORT & SPA
HILTON GARDEN INN DUBAI AL MURAQABAT
and as we grow our portfolio in the region we are
are evolving our offering accordingly. The roll
focused on providing long-term and rewarding
under development in MEA and 2015 will see
careers by offering industry-leading learning
many new hotels join our portfolio of 70 hotels
and development programmes; best-in-class
in this region.
opportunities; team member recognition; as
major step change as we pioneer the roll-out of
The coming 12 months will also represent a
capabilities now provides guests with more today’s traveler. Through their Hilton HHonors accounts,
unprecedented choice and control across their global organisation. To highlight the wealth of opportunity in the
also be able to further customise their stay by
industry and at Hilton Worldwide, our annual awareness of the industry as a strong career
As more people prefer to plan their travels
choice. During the month-long initiative in May
on their laptops, mobiles and tablets, our ‘Hilton Suggests’ Twitter handle provides a platform to
MEA alone, through a series of events designed
A survey we conducted in 2014 found more
to help young people reach their full potential.
world respond to traveller enquiries in real time, using their mobile devices. In fact, more than a third of people say choosing their airline seat online with their mobile device is their favourite
50
HOTEL NEWS ME FEBRUARY 2015
their travel easier and more enjoyable.
Meeting your requirements as professionals in the food service industry, and ensuring your complete satisfaction, Galbani proposes high quality Mascarpone in true Italian tradition. As world leader in Italian cheeses, in both the domestic and export markets, Galbani has been a favourite in restaurants for more than 120 years and continues to be the ideal brand to bring out the best in you for your clients’ enjoyment.
L a c t a l i s D a i r y P r o d u c t s a n d Tr a d i n g ( M i d d l e E a s t ) L L C - E m a i l : i n f o @ a e . l a c t a l i s . c o m - Te l : + 9 7 1 4 3 6 2 3 0 2 5 FEBRUARY 2015 HOTEL NEWS ME
51
TAKE 10: TRENDY DESIGNS
TRENDY DESIGNS 4""% .0"48&4 ."/"(*/( %*3&$503 0' #0/% */5&3*034 %*4$644&4 5)& 5&/ .045 %&4*3&% */5&3*03 %&4*(/ 53&/%4 #&*/( 8)*5/&44&% 8*5)*/ 5)& )041*5"-*5: */%6453:
S
aad Moaswes boasts a twenty eight year-long career within the interior design business across the Middle East. With his Masters Degree in construction management from the University of South California, Saad was able to combine the fundamental prin52
HOTEL NEWS ME FEBRUARY 2015
tion to set the pace for Bond Interiors that saw a steady uphill journey to where it is today. Having set up Bond Interiors with the strength of a small warehouse Today, Bond Interiors stands strong with
several local and international branches of 2000 employees worldwide. Here, Saad discusses the ten trending dĂŠcor designs and inclinations catching on across the hospitality industry within the MENA region.
TAKE 10: TRENDY DESIGNS
High gloss laminates High gloss laminate has started making its presence known in quite a few hotels across the Middle East. New to the laminate industry, this material is used as wardrobe Apart from the fact that it looks as rich as also has additional plus points, it is more environmental friendly than its counterpart have to undergo the painting process.
LED lighting
Wood Plastic Composite Wood composite plastic has started establish ing its grounds as the perfect substitute for wood. Sporting an outward appearance and texture of solid wood, WPC is a product of debris and polymer materials. WPC can be extruded into various shapes
Solar Water Heating System for exterior and interior cladding plus decking without the shortcomings of natural wood.
Factors including less maintenance and
Green Walls aspects of investing in LED lights. One of the limitations that hampered its usage in hotels earlier on was the inability to incorporate a dimming system, but now progressive dimming systems have been introduced making LED a more favour able option.
it is the walnut wood that is riding high on the list of popularity within the current interior design trends. This wood is used mainly on case goods and as wall panels in hotels; walnut with its straight, patchy grain along with the perfect stain can effortlessly add a regal touch to any ambience.
White Crystallised Stone: Marble has traditionally domi regards to classic interiors, but with contemporary design taking the reins, high gloss white crystallised stone has captured a lot of attention. A revolu cient alternative to natural stone and white
Hotels are concentrat ing on providing more spacious guestrooms, apart from actually in creasing the size and the volume of the room they become visually enhanced by including the bathroom as part of the room by means of privacy controlled through Magic Windows.
requisites such as lamination, printing
High gloss laminate has started mWith a payback period between LED lights as they have become
Spacious Guest rooms
The green walls are made of a moss like substance that can survive without sun light or water and is ready for installation without any requirement of fertilising or pruning. Adhered to a sustainable tiles are made of natural preserved lichen moss and are placed vertically to create a feature wall. Apart from an occasional misting, this low mainte nance product thrives in an environ ment that has a minimum humidity
Solid Surface This has been within the industry for a long time but went through an unexpected demise a few years back when classics such as marble and granite ruled the industry. Advance ments in technology highlighted the capabilities of solid surfaces, thus catapulting the material back into the industry. Solid surface can be shaped and sized to any required
Solar water heating system, a technology that has been quite prevalent abroad, is now becom ing more feasible in the Middle East. With the raised aware ness of ‘going green’ this heating system has become more practical and economical for implementation within the hospitality sector.
Smart Room Smart Room is the technology that will take our present to our future. Priori tising comfort, security as well as assist ing in controlled energy consumption; this latest fad is gaining momentum. One of the drawbacks is that the technology is not being optimised correctly due to the lack of awareness regard ing its usage. This of course can be overcome by making the system designed to provide comfort and
tile engineered from glass with a surface a lighting element which can sustain intricate mashrabiya. FEBRUARY 2015 HOTEL NEWS ME
53
MEET THE EXPERT
Owner’s representatives becoming redundant Rising competition in the Middle East hotel sector requires a new approach from asset managers
MARIANO FAZ, HEAD OF ASSET MANAGEMENT AT TFG ASSET MANAGEMENT.
With the influx of new operators entering the market, the Middle East hotel industry has changed dramatically in recent years. As a result, traditional models of hotel ownership have been replaced by more complex arrangements. The development of new technology has also altered the way in which hotels are managed. This combination of factors means hotel asset managers must have extensive operational knowledge as well as a strategic understanding of how best to safeguard the owner´s investment. In Europe and the US, publicly traded companies (REITS) managing a significant number of assets, private equity investors and foreign investors account for the vast majority of hotel owners. They each apply different strategies to meet their respective Return On Investment (ROI) goals. In these markets, it is imperative that hotel asset managers employ the appropriate strategies on a daily basis to ensure these long-term goals are met. With new investors flocking to the Middle East, the gamut of hotel ownership will soon reflect more established markets. The traditional role of the owner’s representative – protecting their interests – will have to be reoriented. The introduction of new operators also makes a proper market performance analysis a more complex exercise. In regards to technology, operators must constantly update their online channels to attract new clients. Connectivity, booking engines, OTAs, yield management, and applications, are terms that hotel asset managers need to be familiar with, as they
have a direct impact on shareholder dividends. Ultimately, in this new, more sophisticated and complex environment, asset managers should possess the following skills and knowledge: An intimate understanding of the hotel’s financial performance Strong working knowledge of real estate and hospitality market trends
tors will be useless if there is a breakdown in the working relationship in this respect. Very few asset managers can claim to be experts in each of the facets listed above. As a result, owners would be well advised to employ hotel asset management firms if they are intent on maximising their ROI. The days of the owner´s representative model are over. A new, all-encompassing approach is required to respond to the new challenges of this industry.
Legal knowledge of hotel management contracts and franchise contracts Thorough understanding of revenue/yield management and the latest marketing strategies
ABOUT THE FIRST GROUP AND TFG ASSET MANAGEMENT
Maintenance comprehension and a deep understanding of the needs of the asset in terms of capital expenses
The First Group (www.thefirstgroup.com) is a British-owned global property development company based in Dubai, with an exclusive focus on creating innovative, iconic hotel projects. The First Group Asset Management (TFG Asset Management - www.tfgassetmanagement.com) assists with every aspect of a completed development to ensure property investors get maximum return on investment. Head of asset management, Mariano Faz, has more than 12 years of expertise in global hospitality and real estate markets and has held a number of high-level positions in hotel operations and management, business development, and hotel asset management for hotel owners.
Knowledge of local legislation (i.e. labour, real estate, tourism) affecting the asset Long-term strategic vision that safeguards the owner’s investment interests. The asset manager must also be willing to work as a mediator between the owner and the operator when required. Around 75% of management contracts are terminated as a result of poor working relationship between these two parties. All financial and operational key performance indica-
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EXPERT VIEW
The secret behind keeping OS&E brand standards Yasemin Akaydin Miller, managing director, PASS International FZE, discusses OS&E brand standards, its challenges and how they can be avoided
YASEMIN AKAYDIN MILLER, MANAGING DIRECTOR, PASS INTERNATIONAL FZE
As a hotel operator, you can have all the standards in place, but how can you convince the hotel owner to follow these? How can you make sure the specification and quality is not compromised? At every pre-opening, we experience the same scenarios. The hotel operators have their contract and preferred suppliers, providing essential operational supplies, such as mattresses, bed and bath linens, in room amenities like toiletries and accessories. Those products are often tried, tested and proven to be suitable to the operation; generally being exstock and readily available for easy access during daily operations. You ask the hotel owners to comply and purchase these items from the specified source, where contracts are in place. Do you think the owner would say yes and then go ahead with it? No!… What are ‘ OS&E brand standards’? Of course, ‘brand standards’ is a broad description. Other than physical standards that describe the minimum square meter of a guest room, there are operating standards, which is the heart and soul of the guest experience. Most of these are directly related to hotel operational supplies and equipment, simply called OS&E that includes guestroom supplies and accessories, BOH items, F&B supplies and equipment, uniforms, even vehicles. Every hotel has –should have- minimum brand standards to oper-
ate at their intended star and service level within the group of brands or at the specific markets that they target. What is the challenge? In the Middle East, when it comes to purchasing OS&E at a pre-opening, hotel owners are involved in many aspects of the decisions; from the selection of the bed and bath linen, in room amenities, to TV sizes. They constantly question and resist what is put in front of them as a brand standard or refuse to purchase from a contract supplier. They still would like to see other options and cost comparisons to ensure that your contracts and chosen suppliers are the best option for them and they are getting the best value for money. If the specifications have been studied in detail and compared accurately and properly, then you are getting the same specification from a different supplier. However if it is done only on the basis of the cost, then your brand will be using completely different quality of items in your various properties even though they might be located in the same region. Why it happens? Timing is the key to success is not a cliché; it is reality for this situation. With just six months before the opening, if you start talking about contract suppliers and mandatory purchases, the
owner would feel a bit trapped, Wouldn't you? Why should he now import mattresses and pay more, if he can buy it next door and pay less? Or should they be really waiting for you to try and test every individual item and approve if it is up to your standard? That is going to take time... Yes you should and yes it will, but then why did you start the process that late? If you are very worried about keeping your brand standards, then you don't accept every contract when you think there is no time to brand it as per your standards. If you do, then you have to accept whatever is given to you. Then maybe we should stop talking about the brand standards and let's call it guidelines, shall we? What can be done? It doesn't have to be a compromise at every hotel pre-opening. Instead of fighting at the last minute, both sides could prepare themselves by establishing comprehensive OS&E lists, budgets, correct schedules and listing any deviations from the brand standards when signing the management contract. Hotel owners will be duly informed about the contract suppliers and the costs. With the correct planning in advance, the potential of conflict can be minimized with you and the owner in agreement on the budget and brand deviations, from the outset of the project. At the end, hotel owners want the same thing as you; a profitable hotel that keeps the guests coming back.
EXPERT VIEW
The negative impact of delaying recruitment activities
Piers Burton, executive director at boutique executive search firm Eagles Spearing Consulting, wonders why companies hold back on recruitment initiatives when the business will perform below par without the appropriate number of staff
It’s a phenomenon across several industries, but particularly the hosfollowing year’s budget, were started in October or November pitality one, that so many companies instigate a full-on recruitment at the latest. drive in the January of each year to fill their management and staff The accountants, of course, love to have a business running quotas for the coming 12 months and to drive the business forward with a below par quota of employees. If the payroll is comthrough the insurgence of new blood and new ideas with the introing in under budget, that helps make up any profitability duction of new people. shortfalls incurred through revenue or margin underperforWith at least a sixty day span from the commencement of a mance within the hotel property or the restaurants under recruitment assignment to the successful placement of a candidate, their accountability. the business is already into Quarter 2 before the budgeted number But this is the problem, without a full quota of staff, how PIERS BURTON EXECUTIVE DIRECTOR, EAGLES SPEARING of staff are all in situ; and that assumes that there have been no curcan the operations perform to the levels that are projected rent staff resignations in the meantime. within the budget? Whilst staff vacancies might save on the overheads, they equally hit the Having managed a considerable hospitality business in the past, I look back and wonpotential earnings capability of the business. It’s all part of the traditional Operations verder why I didn’t continuously insist throughout the year that all vacancies were filled as sus Accountants skirmish, I know, but running the business with the appropriate number quickly as possible and that searches for new positions, likely to be approved within the of staff, at all times, must surely be a cornerstone for any business manager to stand up for?
FEBRUARY 2015 HOTEL NEWS ME
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RESPONSIBLE HOTEL INVESTMENT BUSINESS
INVESTORS CHECK BACK IN STAFF AND VOLUNTEERS AFTER THE BIG CLEAN UP
Global hotel investment is on the up in terms of short- and medium-term sentiment, according to the latest Hotel Investor Sentiment Survey, published by JLL in December 2014. According to the property services firm, investors’ near-term sentiment for trading globally improved over the last six months of 2014, with investors’ short-term expectations up 5.4 percentage points to 63.2%, while medium-term sentiment softened by a modest 5.5 percentage points to 61.1%. Data from the survey showed that market fundamentals remained strong as access to capital continued to improve, with markets that had been less active witnessing increased activity. Major gateways globally ranked highest for shortterm trading at 68.8% followed by those located in EMEA at 65.6%. Over the medium-term, investors favour hotel markets in EMEA at 72.9% and major gateways at 65.9%. “Key gateway cities in the Americas and Europe, such as New York, Paris, London and Rome, remain the most attractive hotel investment mar60
HOTEL NEWS ME FEBRUARY 2015
As the global economy recovers, investment sentiment is improving, with strong demand for proven destinations in America, Europe and the Middle East, Sarah McCay reports kets. In the Middle East, Dubai remains at the top of the investors’ wish list, followed by Abu Dhabi then core markets in Saudi Arabia, although the latter markets are more in terms of development than operating hotel transactions,” says Chiheb Ben Mahmoud, executive vice president – head of hotels & hospitality, Middle East & Africa, JLL Hotels & Hospitality Group. In terms of transactions, 'hotel investments' in the JLL report refer mostly to deals on existing assets rather than the development of new hotels. Despite this, the Middle East region still continues to show strong potential, as investors are wooed not only by the amazing blueprints of hotels yet to be constructed, but also by some of the existing landmark property coming to market. Globally, JLL cites that investors’ primary strategy over the next six months is acquisition at 40.3%, disposal at 31.1% and development at 28.3%. “In terms of transactions, Chinese investors have a strong preference for real estate assets including hotels. It is expected that they will contin-
ue to be behind significant and landmark transactions whether in traditional markets of proximity, such as Asia Pacific, or in more remote and complex markets such as Western Europe,” explains Ben Mahmoud. “In terms of developments, all emerging destinations in the Middle East and Africa region will continue to increase the size of their hotel supply albeit at different paces among still relatively constrained hotel financing,” he adds. According to JLL, investor expectations for global leveraged internal rates of return (IRRs) recorded a 130 basis point increase to 16.4% in 2014. Regional leveraged IRR expectations were lowest for Asia-Pacific at 12.8% and highest for the Americas at 18%. Global cap rate expectations recorded a 10 basis point bump averaging 7.2%. Cap rate expectations were lowest for the major gateways at 6.6% and EMEA at 6.8%. Investors expect global cap rates to contract slightly over the next six months with the downward trend most evident in the Americas.
HOTEL INVESTMENT
AMERICA While cap rates may be contracting, investor sentiment remains positive in North America with regards to hotel investments, with investors’ hotel performance sentiment also improved during 2014. The positive push follows improved economic news for North America, with quantitative easing and the recession now history. Hotel performance is mirroring that of the national economy, with steady growth being witnessed. Of the top 25 US markets, 21 have reached their pre-recession revenue per available room (RevPAR) peaks. Driven by more positive hotel operating profits, hotel investors have a resoundingly positive outlook for continued lodging sector growth. For the first half of 2015, the JLL Hotel Investor Sentiment Survey tipped San Francisco, Seattle and Houston as destinations to watch. In the two-year timeframe the Caribbean ranked highest, followed by Los Angeles, Vancouver and San Francisco. In Canada, Vancouver’s medium-term performance outlook is most encouraging, followed by
Toronto and Montreal, respectively. Vancouver and Toronto garnered among the highest midterm performance expectations in the Americas. Of the investors surveyed by JLL, 46% of respondents are primarily pursuing acquisitions, while 31% are focusing on selling assets. As such, transaction levels are expected to increase across North America, with 2014 figures expected to close at US$25 billion, marking a six-year high. Some 23% of investors cited development as their main strategy looking forward, an increase of one percentage point on the year prior. Development intentions are highest in
Boston, San Francisco and Seattle and lowest in Phoenix, Orlando and Atlanta. Branded midmarket hotels will make up the majority of new inventory as upscale select service properties comprise 60% of the region’s active pipeline.
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RESPONSIBLE HOTEL INVESTMENT BUSINESS
“THE MIDDLE EAST CONTINUES TO BE A NET BUYER OF HOTEL ASSETS VIS-À-VIS THE REST OF THE WORLD; THERE ARE MORE MIDDLE EASTERN INVESTORS ACQUIRING HOTELS ABROAD THAN FOREIGN INVESTORS BUYING IN DUBAI”
EMEA The Europe, Middle East and Africa (EMEA) region presents a mixed bag of fortunes and sentiment for hotel investors, swayed largely by recession in some Eurozone countries. In general, short-term trading expectations across EMEA reported a slight uptick since April 2014, rising 10 basis points to 65.6%, while medium-term investor sentiment softened by 60 basis points to 72.9%. “The opportunities vary from one country to another in the EMEA region and even in some instances within the same country across destinations. For example, in Spain there is a difference between Madrid and Costa del Sol. In general, opportunities are 'less obvious' and require sophisticated buyers with a proactive and clear strategy. In the Middle East, opportunities do exist for investors with reasonable yield expectations and a clear strategic focus,” advises JLL’s Ben Mahmoud. Of the 32 cities tracked, short-term expectations are highest for Copenhagen, London, Stockholm and Warsaw. Looking further ahead, medium-term sentiment is strongest in Dubai, 62
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Casablanca, Amsterdam and Paris. According to JLL, short-term expectations for Copenhagen are robust at 100%, falling to 69.2% over the medium term. The Danish capital reported some of the strongest RevPAR growth October 2014 YTD according to STR Global, up 15.5% driven by strong ADR growth. In the UK, trading expectations remained strong for London in both the short- and medium-term. International visitor arrivals during the first six months of 2014 rose 7.6% to nearly 8.5 million trips compared to the same time in 2013, leading to a strong first half for the capital’s hotels. The outlook throughout the rest of the UK is also promising, with strong trading expectations in both Edinburgh and Manchester. Manchester is the UK’s third most-visited city and boasts extensive conference and event fa-
cilities, major sporting stadia and the largest museum and theatre sectors outside London. In the Middle East, investor sentiment is high for Dubai with a positive net balance of 86.7%. While developers are optimistic about building in Dubai, with more than 21,000 luxury hotel rooms and serviced apartments expected to enter the market by the end of 2017, attaining Dubai’s goal of attracting 20 million visitors by 2020 will require the emirate to also increase its midscale offering, which is slightly less appealing to investors. There is also concern about where these extra visitors will come from. Dubai relies heavily on the Russian market, but with the depreciation of the rouble and political uncertainty, the number of visitors is expected to fall and it will be necessary to attract visitors from new feeder markets if the emirate is to achieve this goal.
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RESPONSIBLE HOTEL INVESTMENT BUSINESS
“KEY GATEWAY CITIES IN THE AMERICAS AND EUROPE, SUCH AS NEW YORK, PARIS, LONDON AND ROME, REMAIN THE MOST ATTRACTIVE HOTEL INVESTMENT MARKETS”
“Dubai attracts investors, not because of the requirement of rooms, which would tend to act in the opposite direction as there would be expectation of larger supply, but because of three main reasons: (1) the unique infrastructure; (2) the track record of the entire tourism chain, including retail, entertainment etc., in delivering a complete and coordinated experience; and (3) continued and consistent focus on tourism as a strategic development driver,” says Ben Mahmoud. However, he is quick to add that opportunities do exist elsewhere, whether in North Africa or Sub Saharan Africa, in Oman, or in the Indian Ocean. Investors targeting the EMEA region are increasingly pushing for better returns as business sentiment improves. The JLL survey showed that expectations for leveraged IRR requirements currently sit at 14.2%. This places IRR requirements 130 basis points lower than the long-term average of 15.5% and shows that investors are seeking higher returns on their investments than they were six months ago. It could be argued that Middle East investors are central to this, as funds from Qatar, Kuwait and the UAE continue to snare prime hotel assets across the region. “The Middle East continues to be a net buyer of hotel assets vis-à-vis the rest of the world; there are more Middle Eastern investors acquiring hotels abroad than foreign investors buying in Dubai,” explains Ben Mahmoud. “As a general rule, hotel development tends to be a local play. Sometimes you have capital inflow for strategic purposes, hotel or non-hotel related,” he adds. According to the survey results, investment funds and private equity groups are the most acquisitive groups currently targeting EMEA hotel 64
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real estate, followed by banks and institutional investors. “Hotels have emerged over the last few years as a real estate asset class attracting the interest of a larger pool of potential investors and they have showed a fair level of resilience,” Ben Mahmoud comments. Discussing the investor demographic in the Middle East, he says: “The players cover a wide range - local, regional and international investors with the locals from Dubai, Abu Dhabi and other emirates taking the leading share. Although there is a strong interest from a large pool of international investors who continue to scan the market, the main buyers are from the region. In line with the existing ownership structure, sellers are obviously from the region.”
ASIA-PACIFIC
Investor sentiment for trading in Asia-Pacific hotel markets increased substantially during the second half of 2014, with short-term
expectations surging to 63.5% and mediumterm increasing to 56.3%. Investor expectations for leveraged IRRs fell slightly, averaging 12.8%, with higher expectations for Australasian assets, which increased to 12% from 10.8% in April 2014, stated JLL. This was offset by a slight reduction in expectations for Asia, reflecting the premium that is being channelled to the large volume of capital chasing hotel assets. However, Asia-Pacific cap rate expectations tightened further as outbound capital continued to chase hotels with new entrants attracted to the sector and fewer assets available for sale. Cap rate expectations tightened by a respectable 20 basis points to average 7%. Divergent cap rates are expected over the next six months across the Asia-Pacific but further rate compression is anticipated in Brisbane, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila, Osaka, Phuket, Singapore, Sydney and Tokyo.
HOTEL INVESTMENT
Asia-Pacific but further rate compression is anticipated in Brisbane, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila, Osaka, Phuket, Singapore, Sydney and Tokyo. “Investors should watch all of AsiaPacific. Malaysia is a champion, which has been negatively impacted over the past few months by travel-related bad news, while Thailand had some stability challenges. However, Asia-Pacific is otherwise a very deep region in term of hotel investment opportunities
and that includes destinations such as Australia and Vietnam,� points out Ben Mahmoud. A new ruling set by the Chinese Ministry of Commerce (MOC) came into effect on 6 Octo-
ber 2014. Under the previous rules, any overseas investment project worth more than US$100 million required MOC approval. This requirement has now been abolished and is set to further increase outbound investment for hotel assets abroad. 2015 could prove an interesting year for hotel investment, especially with falling oil prices expected to lead to falling flight prices, encouraging even more travellers abroad, pushing hotel revPAR and ADRs upwards.
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SHOW PREVIEW: GULFOOD
GULFOOD SHOW DOWN With Gulfood about to celebrate its 20th edition, Hotel News ME takes a look at the upcoming show highlights, its
MARK NAPIER, DIRECTOR, GULFOOD
“There is a huge market for leading international companies specialising in advances in kitchen design, technology and production efficiency. Gulfood is the leading platform for these suppliers to meet and network with local, regional and international hoteliers and developers, it is a very exciting proposition for the industry” Mark Napier, director, Gulfood
Every year Gulfood brings together in true celebratory style, flavours from around the world, culinary excellence and not to mention, the enviable range of food and beverage products on show for the hospitality industry to revel in. With having first began as a biennial event back in 1987, Gulfood moves forward to celebrate its 20th anniversary this year as the world’s largest annual food and hospitality trade show. Staged at Dubai World Trade Centre (DWTC) from the 8th of February to the 12th, Gulfood continues to grow and excel, playing an integral and pivotal role connecting nations and suppliers within the hospitality industry and F&B sectors together. 66
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SOARING GROWTH
With the 2014 edition of the show breaking its own participation records, Gulfood 2015 is set tot be the biggest edition in the show’s history and is expected to attract more than 4,800 international companies from across 120 different countries totaling more than 85,000 visitors from 170 countries. To accommodate the meteoric growth and the extensive number of participating brands, Gulfood 2015 will span 127,000m² of exhibition space, including a purpose-built 23,000m², temporary structure tureture which is the largest-of its type regionally.
THE PANEL
Mark Napier, director of Gulfood explains, “Gulfood 2015 facilitates substantial global transactions for foodstuff commodities such as meat, cereals, grains, rice, coffee and tea. Driven by a fast-growing population, burgeoning hospitality and tourism markets and its prominent position as a re-export hub, the UAE’s demand for food staples is increasing at a rate of 30% every year, according to the Ministry of Economy. With imports accounting for between 80-90 per cent of GCC food consumption, Dubai is best placed to cater for increasing demand in regional food trading.” “Gulfood is also a major contributor to Dubai’s growing reputation as a global events destination and a key pillar of Dubai’s 2020 tourism vision, which aims to double the emirate’s annual visitors numbers from 10 million in 2012 to 20 million in 2020.” “To cater for the increase in visitors, Dubai is aiming to nearly double its hotel room inventory to 164,000 rooms and, consequently, there is a huge market for leading international companies specialising in advancements within kitchen design, technology and production efficiency. Gulfood is the leading platform for these suppliers to meet and network with local, regional and international hoteliers and developers, it is a very exciting proposition for the industry and of course, F&B outlets extend beyond hotels. Additionally, according to a recent report by Euromonitor, the number of F&B outlets in the UAE is expected to double in the
next four years, making food service and hospitality equipment a particularly pertinent sector at Gulfood 2015.”
GULFOOD’S 2015 ANNIVERSARY SHOWDOWN-
With the expected number of visitors due to top 85,000, the anniversary edition of Gulfood is set to not only showcase innovative new products and host global launches but to also draw together HORECA industry professionals and international buyers to participate in the set conferences where industry experts discuss and part with comprehensive information.
GULFOOD LEADERS EVENT
“Beyond its position as one of the highest volume trading platforms of any international food industry trade show, Gulfood remains a centre of knowledge exchange for many food-related sectors. At the highest level, Gulfood 2015 will host the Food Security Summit and Halal Investment Conference where ministers, government officials, policy makers, thought leaders and regional and international corporate visionaries will address key topics relevant to the food industry.” Explains Napier. The Food Security Summit will feature sessions focusing on: Food Security Outlook in the GCC, Food Security Policy Development, Commodity Prices and Drivers, Food Security and Climate Change, Investment in Agricultural Land Abroad, Domestic Agriculture, Food Supply Chain Challenges and ‘Food Security and Water Management.
Key speakers: Bashir Yousif, food safety expert, Dubai Municipality H.E Essa Al Ghurair, chairman & CEO, Al Ghurair Resources LLC Mohamad Bitar, founder & managing director, Just Falafel H.E Khadim Abdullah Al Darei, co-founder & managing director, Al Dahra Agriculture SYRIA HALL FROM GULF FOOD 2014
SHOW PREVIEW: GULFOOD
IN THE LOOP February 2015 Centre (DWTC)
1,300 competing chefs at the Emirates Guild Salon Culinaire
from over 170 countries
9th February
170 countries in 2014
HALAL FOCUS
10th February 11th February
Dubai’s position as a primary global trading hub for the international halal food industry which is a strategic enabler in the emirate’s long-term vision to become the global Islamic Economy capital will see hundreds of the world’s leading halal manufacturers, processors and distributors from over 50 countries convene at the second inaugural Halal World Food presented by Gulfood. With exhibitors from six continents displaying thousands of halal products from energy drinks, vegan and vegetarian foods to meat, poultry and canned goods.
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EMIRATES CULINARY GUILD INTERNATIONAL SALON CULINAIRE
“An undisputed drawcard at Gulfood for the regions’ top professional chefs, pastry chefs, cooks and bakers every year is the annual Emirates Culinary Guild International Salon Culinaire, a showcase of the region’s best culinary talent and expertise. Held in Zabeel Pavilion, the 2015 Salon Culinaire will see more than 1,300 professional chefs evaluated by a panel of 25 renowned experts, mandated by the World Association of Chefs Societies (WACS) to judge culinary events across the globe.” Napier, explains.
M A S T E R the E L E M E N T S
Take control of the elements with the new CT PROformanceTM Combitherm速 oven from Alto-Shaam. The PROformance Series offers versatility to execute every menu from basic to complex with flawless precision and consistency. And it does it all faster than e v e r b e f o r e . Vi s i t w w w. c t p r o f o r m a n c e . c o m t o l e a r n m o r e . FEBRUARY 2015 HOTEL NEWS ME
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SHOW PREVIEW: GULFOOD
GULFOOD 20TH ANNIVERSARY & AWARDS NIGHT
“Thousands of F&B products and services are introduced every year at Gulfood, and the Gulfood Awards, which is due to run into its sixth edition this year, presents an opportunity for excellence to be recognised and rewarded. The prestigious accolades celebrate both people and companies behind the region’s leadership and innovation in the F&B industry.” Says Napier. The awards ceremony is judged by an international panel of independent industry experts and will be divided into six categories hosting ten different awards. Taking place on the 10th of February 2015 at the five-star Conrad Hotel in Dubai, the Awards evening will also play host to a unique and memorable celebration of the show’s achievements over the past 20 years. Over 1,000 leading industry decision mak70
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ers, celebrity chefs, key exhibitors, customers, media and national groups are expected to attend the anniversary event.
FOOD FRANCHISING CONFERENCE
The Franchising Conference offers an essential guide to food franchising, a fast-growing trend in the region, with many international brands entering the market. Industry veterans will be discussing decision-making challenges as well as trends and opportunities when dealing with a franchise. An effective network of entrepreneurs, franchisors, franchisees and investors will gather at Gulfood 2015 to exchange experiences, share business secrets and discuss potential alliances. Additionally, The Food Franchising Conference will feature sessions focusing on making the most of the Middle East, roadmap to creating a successful franchise, regulating franchising processes in the UAE, franchise failure and how to avoid them.
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F&B INTERVIEW
KING CODA
Adam D’Sylva, co-owner and head chef at Coda bar and restaurant in Melbourne, sits down to talk with Sophia Soltani after coming to town to attend an evening with chef Ryan Clift, hosted by Steelite International at the Emirates Academy of Hospitality Management With rich tones of Italian and Indian running through his veins, culinary genius Adam D’Sylva attributes his success and love of good food to his mother, grandmother and aunt who encouraged him from an early age to participate and observe in their cooking tactics. Beginning his career with an apprenticeship at Hilton on the Park in Melbourne, D’Sylva now co-owns restaurants CODA and TONKA which have both become extensions of his vibrant heritage. Can you talk through your career background? I began my career with an apprenticeship at Hilton on the Park in Melbourne and it was such a diverse environment and really very multicultural, so I had the chance to work with some amazing chefs, bearing in mind at that stage I wasn’t too well travelled so it impacted me a lot. I then moved on to work as a chef at the popular celebrity stomping ground Cosi, in South Yarra. After returning from my overseas culinary travels, I then landed a position under the tutelage of the highly respected chef, Geoff Lindsay, at the Pearl restaurant. I then went on to become the very first head chef of Longrain, Melbourne. It seemed only sensible that I would open my own restaurant so to fast-forward to 2009 I launched CODA, and more recently TONKA in 2013. Coming from such a diverse background, what was sitting on your kitchen table whilst you were growing up? You could say I was born into meat and rice! Indian and Italian are both really very strong, dominant cuisine cultures, so growing up at family gatherings there was always a bowl of pasta, and a bowl of basmati rice with some kind of curry, that was the norm. I made pizzas and worked in my father’s butchers shop, so I was never afraid
CHEF ADAM D’SYLVA AT CODA BAR AND RESTAURANT
to be around food. TONKA has been going for a year and a half, how well would you say it has performed and what is the concept behind it? I am a really diverse person, coming from Melbourne and a culturally mixed home, so one day I jokingly said that we should do an Indian inspired restaurant to tap into my Indian side. I didn’t want to be modern in terms of taste, texture and flavour, I
wanted to be modern in presentation without compromising the traditional elements of real Indian cuisine inspired restaurant. With two restaurants on your current portfolio, what is next on your agenda? Well, I jokingly said I should do an Italian restaurant recently and that is how TONKA came about! If I were to do another concept, I would do traditional, peasant style Italian
F&B INTERVIEW
“I AM NO MOËT & CHANDON AND I WHOLLY REPRESENT MY OWN STYLE OF FOOD, I HAVE A BUSY RESTAURANT EVERY NIGHT WITH GREAT PRODUCE, I DON’T WANT TO BE AN OCCASION RESTAURANT AND THAT IS HOW I REFLECT MY ART IN MY COOKING”
CHEF ADAM D’SYLVA
that represents simple real food. I would potentially be interested to do something similar with Steelite, like Clift’s event. Where do you draw your inspiration from to consistently come up with new, inventive dishes? All parts of life, my mother, grandmother and aunty have all been such big inspirations in terms of my cooking, but be it travelling the globe and seeing new cultures, new styles of cooking to reading books and magazines, the beauty of being a chef is a little idea or experience can transcend into an amazing dish. I have worked all over the world, cooked in many countries from India to Asia and around the UK. I have experienced so many different cultures and different avenues, but in Melbourne there isn’t the room to have too many luxury outlets and too many choices, whereas in Dubai there is the flexibility to cater for, and cook for the luxury segment. This has the facility to be an endless array of different outlets. Compared to Melbourne, we can only have a few select ones to pick from. How would you say you have made your mark on the F&B industry? I wouldn’t focus too much on how I have made my mark, more as to how I have been perceived which is more important to me. I am no Moët & Chandon and I wholly represent my own style of food, I have a busy restaurant every night with great produce, I don’t want to be an occasion restaurant and that is how I reflect my art in my cooking. I have also found that in Melbourne people require accessible food perhaps that is how you would say I’ve made my mark. FEBRUARY 2015 HOTEL NEWS ME
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DESIGN
Dining by design The world of restaurant interior design is becoming increasingly competitive, as outlets across the Middle East vie to serve up both style and substance, says Lucy Taylor
The booming Middle East hospitality industry has drawn some exceptional food and beverage talent to the region over the past couple of decades – from head chefs to outlet managers and pastry experts to sommeliers. into a real dining destination, they need just the right setting. Restaurant design is serious business with hotels prepared to invest big bucks in F&B concepts that will both entice customers and last for the long term. That means designers must be in touch with what people want, but also be prepared to innovate, as each project raises its own unique challenges.
OUTLET INSPIRATION According to Tamer Mansour, chef de cuisine at the Waldorf As 74
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toria Ras Al Khaimah, an outlet’s design is “as important as per sonality is to a human”. “It’s so much more than just fancy interiors and lay out,” he asserts. “Restaurant design has to highlight and communicate the concept, while keeping in mind the need for operational func tionality.” Amongst its F&B offerings, this palatial UAE property boasts a slice of Asian style in the shape of Japanese restaurant UMI. Michael Melnick is the general manager of the company be
fusion menu,” he explains – with a design that pays tribute to these origins.
DESIGN
“QUITE OFTEN YOU SEE VENUES THAT HAVE A CONFUSED IDENTITY, WHICH DOESN’T HELP WITH LONG-TERM POPULARITY”
P&B MADINAT THE EYE-CATCHING BAR AT PERRY & BLACKWELDER'S
walnut timber, through to more modern polished stone sur faces, for which Nero Assoluto and Chinese Yellow granites and modern style. Mansour believes the food and design “complement one other, giving the restaurant an identity all of its own”. Across the water in Qatar, there’s a very different take on Asian style at Spice Market Doha – the brainchild of renowned According to outlet manager Jozef Pesta, design is “your iden tity and style, with which your guests connect or disconnect”. “It won’t get you anywhere in the long term if you serve good food and drinks in a restaurant that lacks identity,” he warns.
founder Keith Hobbs expands: “Inspired by the vibrant street life of Southeast Asia, the outlet is made up of two halves, one raised and one lowered, open in parts and intimate in others. colours, textures and details for the restaurant. It’s a sister outlet to his restaurant in New York, so we used deep reds the furniture.” cand Today it’s an attractive dining destination – but there were initial challenges to overcome, as United Designers’ Hobbs explains: “As such a vast space, the restaurant had to be de signed carefully to ensure that it never felt empty, in spite of that size.” FEBRUARY 2015 HOTEL NEWS ME
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DESIGN
LIGHTING IS A CORE STYLE COMPONENT AT SPICE MARKET DOHA
AUTHENTIC AMBIANCE Back in the UAE, at Dubai’s Madinat Jumeirah, Perry & Blackwelder’s Original Smokehouse is a recent addition. General manager Anthony Soethout believes design is
Perry & Blackwelder’s Soethout says the completed design “brings it all together” – but admits that he and the design team had to work hard to ensure authenticity. “I was raised in the States and spent many years in the South, eating real barbeque – so it was sometimes challeng
rant concept. other gimmick – and gimmicks don’t last,” he insists. “The idea behind P&B was to bring real Americana to Dubai, from the layout to the menu to the music. It had to
The job of delivering on that vision fell to The Johnson Studio, as Eric Chiarelli from the company explains. “We ex that evoked a very rustic, casual barbeque shack,” he says.
sioned as a centrepiece, referencing the ranching culture of Perry & Blackwelder’s Soethout says the completed design “brings it all together” – but admits that he and the design team had to work hard to ensure authenticity. “I was raised in the States and spent many years in the South, eating real barbeque – so it was sometimes challeng The Johnson Studio’s Chiarelli says another issue was get ting an accurate look in a newer building: “It took a lot of searching for just the right items to display and a lot of coor dination with the rest of the team to ensure our intent made it through to completion.” 76
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The Johnson Studio’s Chiarelli says another issue was get ting an accurate look in a newer building: “It took a lot of searching for just the right items to display and a lot of coor dination with the rest of the team to ensure our intent made it through to completion.” Another Dubai newcomer is Geales Urban Seafood and Lounge, which opened at Le Royal Méridien Beach Resort and Spa last year – instantly garnering public interest with its Pam Wilby, complex general manager at Le Royal Méri dien and Grosvenor House Dubai, explains: “The concept originates from the UK, however we worked hard with the local team at LW Design to create our own unique and time less interpretation of the brand here in Dubai. “Prior to us bringing the concept [here], the team and I travelled to London to visit the original Geales eatery. We fell in love with the concept from the moment that we set foot in Pia Lakhsmi Sen, an associate at LW Design, says they settled on the theme ‘British vintage seaside setting’, but ex ecuted “in a more contemporary way”. “The colour scheme is black and white with accents of
“White painted panels adorn the walls, decorated with framed photos of vintage seascapes. Industrial pendants
DESIGN
KEITH HOBBS, FOUNDER OF UNITED DESIGNERS - THE FIRM BEHIND SPICE MARKET DOHA
Industrial pendants have been used throughout and vintage bar stools at all the bar counters.” As it was an existing building, the team had to design around the structure that was already there. “We had to take the exist ing beams into account when designing. It meant that in some areas the ceiling had to be reduced quite substantially and we ended up with low ceilings in places,” Sen notes – although she admits the end result has in fact “added to the atmosphere and ambience of the outlet”. lift to a popular existing eatery. Pierchic at the Al Qasr Hotel is an old favourite on the Dubai dining scene, and recently reopened after a major revamp. Outlet general manager Andrea Zampolini comments: “We wanted to refresh the restaurant and appeal to new customers. The new design allows us to host small groups and a younger crowd in the two new pod bars.”
Looking at the update in more detail, Khaun Chew – design principal founder at KCA In ternational – explains: “The theme was sim ply to enhance the restaurant’s signature sea food cuisine. This is carried through in our the emphasis on lighting, with blue LEDs and backlit skylights; and the mesh lanterns over the high tables.” derline the F&B offering: “The menu is based on the use of sustainable seafood, in a collaboration between three Mi Parsk. It showcases simplicity and respect for the ocean – an A clear vision like this is a big help to the design team, but there’s a great deal that must be taken into account when updat ing a concept, points out Zampolini: “The challenge lay with introducing a new design without alienating our many regular
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DESIGN
UMI AT WALDORF ASTORIA RAS AL KHAIMAH
SPICE MARKET WARM COLOURS, SOOTHING LIGHTING AND COMFORTABLE SEATING AT SPICE MARKET DOHA
“I THINK THE ENTRANCE CORRIDOR LEADING THROUGH THE ARCHWAY IS ONE OF THE MORE SPECIAL ELEMENTS. THE CUT-OUT SECTION GIVES THE IMPRESSION THAT A LARGE BLOCK OF STONE WAS LITERALLY CUT OUT TO FORM THE ARCH”
KCA’s Chew therefore had to work around existing structures with the ceiling proving the trickiest component.
BUILT TO LAST A big challenge for designers is ensuring an outlet can stand the test of time. AMBB Interiors’ Melnick believes the recipe for lon gevity is “to design and build with sensible materials that stand
SPICE MARKET WARM AND WELCOMING COLOURS AT SPICE MARKET DOHA
LW Design senior interior designer Gina Munro agrees that, the secret is “creating a timeless interior”.
true to the concept”. “Quite often you see venues that have a confused identity,
design current,” Munro explains. Overall, F&B design in the region is blossoming nicely. AMBB Interiors’ Melnick notes that the market “has matured consid erably, offering diners an incredible selection” when it comes to settings.
United Designers’ Hobbs adds: “It’s important for the design to be simple and contemporary, avoiding fads or design trends.”
kind concepts – is not a place to set boundaries; so when it comes to the future of outlet design, it looks like the sky’s the limit.
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HOSPITALITY & SERVICES JLT
Hospitality Services Quality Management Systems consultancy and certification (HACCP, ISO22000, ISO9001, and other customized management systems for private enterprises and government sectors) Food Safety Training courses (all levels) Consultancy services for hotels (supply and buying with the vision of helping hotels in reducing their cost by getting them quotations with the best value in terms of quality and price on food and non food supplies such as equipment and furniture); the service does not apply any charge on the hotel itself but on our subcontractors Consultancy services for food trading companies and distributors (supply and buying products from different countries, brands launching and sales planning and execution); this service applies charge on brand owners and not on distributors.
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Hills Hospitality & Services DMCC Magy Khalil General Manager
M. +97155 5032366 T. +9714 3253130 www.hills-hospitality.com
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SUPPLIER FOCUS: BEDS & BEDDING
BEDS & BEDDING
Showcasing the optimum variety of F&B products available to the hospitality
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F&B PRODUCTS
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SUPPLIER PROFILING
AL-HALABI
Barbeque grill
Bain Marie
Could you provide a description of your company. I.e when was it established, by who?
What is the most popular product that you supply to the industry?
What does Al Halabi offer that other suppliers in your field do not?
What growth do you anticipate to see in the next year 2015?
R
R
L.L.C
R
SUPERMARKETS FLOUR MILLS SPICES INDUSTRIES
UAE, BAHRAIN, OMAN, SAUDI ARABIA & INDIA AN ISO 22000: 2005, HACCP, GMP, GHP CERTIFIED COMPANY IMPORTER, EXPORTER,MANUFACTURER, WHOLESALER,RETAILER OF HIGH QUALITY SPICES AND FOOD STUFF ITEMS
PEACOCK BRAND SPECIAL PRODUCTS DAAL
ATTA
SPICES
OTHERS
Award Winner from Government of Dubai, Dept. of Civil Aviation for Quality, Technology and Strategic Partnership.
* INDIAN MASALAS * MIX FLOURS * DALS * RICE * PICKLES * CHUTNEYS * PAPADS * NUTS * * DRY FRUITS* FARSAN (NAMKEEN) * MUKHWAS * HERBS * INSTANT FOODS * CANNED FOODS *AND ALSO OTHER VARIETIES OF INDIAN FOODSTUFFS.
P.O Box : 52409, Dubai, UAE Tel. : 04 3973318 Fax : 04 3973368 E mail : info@adildubai.ae Website : www.adildubai.com
Dubai :
Dubai :
Our Branches Abu Dhabi
Sharjah :
Electra : 02 6761162 ud Metha : 04 3708480 Rolla: 06 5628656 ira-Al Muteena: 04 2656280 Passport Road : 02 6438777 Abu Shagara: 06 5595030 Tourist Club Area : 02 6779791 lock Tower: 06 5218641 usais: 04 2986912 usais II: 04 2511633 Al Nahda: 06 5255535 ajman scovery Garden: 04 4213717 Fujairah : Ajman Museum: 06 7310203 Eid Musalla Area: 09 2248114 facebook.com/Aladilgroup Follow us on :
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RESPONSIBLE BUSINESS
GIVE A GHAF
The Ritz-Carlton, Dubai International Financial Centre encouraged guests and staff to help conserve the UAE’s national tree, the Ghaf as part of its ‘Give Back Getaway’ programme
GUESTS AND STAFF PARTICIPATE IN PLANTING THE TREES
Incorporating eco-tourism and an enjoyable stay, the Ritz Carlton, Dubai International Financial Centre recently encouraged staff and guests staying at the property to take part in a conservation initiative to help preserve the national tree of the UAE, the Ghaf tree. The activity was part of The Ritz-Carlton Hotel Company’s “Give Back Getaways’ program, which seeks to provide guests with a memorable and enriching stay, whilst supporting environmental responsibility, one of the key pillars of the hotel company’s wider Corporate & Social Responsibility program ‘Community Footprints’ and its commitment to help build a more sustainable future. The volunteers were taking part in the ‘Give a Ghaf’ campaign, run by local conservation body Goumbook, to help highlight the tree’s cultural and ecological significance, with the ultimate aim of protecting the wild Ghaf trees. Participants from the Community Footprints team took part with a number of guests, who traveled to Al Barari Farms, Dubai. There, they received a tour of the 86
HOTEL NEWS ME FEBRUARY 2015
nursery and compost room with the horticulturist, along with a step-by-step guide to the conservation process, before helping to plant over 100 Ghaf tree seeds. The seedlings will remain in the pots for two years in the safety of the nursery, protected from high temperatures, humidity and wind exposure, and once strong enough will be donated to the local community’s parks, hospitals, schools, highway and road plantations, helping to create a sustainable community within Dubai and the UAE. Lothar Quarz, general manager, The Ritz-Carlton, DIFC explained “Our guests are seeking memorable experiences when they travel, beyond the luxuries of a five star hotel, so the Giveback Getaway program allows them to participate in an enriching experience, whilst benefitting the local community. Helping to preserve the national tree of the UAE is an important part of the country’s conservation efforts, and we are delighted to have been able to add our footprint to this worthy initiative.”
PARTICIPANT SOWING THE SEEDS DUE TO BE PLANTED
TAKING PART IN THE ‘GIVE BACK GETAWAYS’ INCENTIVE PROGRAMME
RESPONSIBLE BUSINESS
ECO-CAMPAIGNING
STAFF AND VOLUNTEERS AFTER THE BIG CLEAN UP
The Park Regis Kris Kin Hotel Dubai takes part in eco-campaign to help clean up the UAE
Continuing its efforts towards environment protection, the Park Regis Kris Kin Hotel Dubai participated in the 13th cycle of the annual national environmental campaign “Clean Up UAE,” organised by the Emirates Environmental Group. The weeklong campaign, which took off in Dubai, dedicated one day to cover each of the seven emirates. The enthusiastic staff joined thousands of other participants, who were equipped with cotton gloves and biodegradable plastic bags, dedicated to collect the maximum amount of trash. Scott Butcher, general manager of Park Regis Kris Kin Hotel Dubai, explains that "looking after the environment is vital to preserve it for the next generation. The hotel has been making continuous effort to achieve optimal success in this direction. Its participation in the campaign was a way to give back to the nation that has given so much to its residents." “We have been making sustained efforts to preserve the environment by reducing our carbon footprint. Cutting down on waste by recycling and reusing resources and conservation of energy and water is an integral part of our environmental objectives. Our participation in the campaign further emphasizes our efforts towards raising awareness about the cause and makes the community realize that through simple operations one can conserve precious natural resources and make the world a better place to live.”
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M-ICLEAN
DISHWASHING HAS NEVER BEEN SO INTELLIGENT, COST-EFFECTIVE AND APPEALING TO THE EYE AS MEIKO PRESENTS ITS NEW GENERATION OF DISHWASHERS -
Keeping a handle on things with LED illumination
Instant understanding
One of the M-iClean's most striking features is its LED indicator handle with the distinctive M logo. Always cool to the touch and remarkably satisfying to use the illuminated handle provides a useful indication of the machine's status with a series of colours that are clearly visible from a distance. Blue means the machine is ready for operation, a pulsing green-lit handle means that the M-iClean is washing efficiently, and red indicates there is an important message on the display.
Intuitive, simple operation is essential when you are running a business, especially in restaurants where different staff work in the kitchen at different times, this is why the M-iClean has introduced a bold new system of colour coding, any part of the M-iClean that is coloured blue or illuminated blue can be touched, operated or cleaned. The blue-lit touch display also achieves clarity through colour by only showing the precise functions that can be performed at the time.
One touch
Technology
Directly above the LED handle is the ergonomic touch display. This user-friendly panel acts as the M-iClean's control centre. All the available functions appear as clearly identifiable icons, while the dynamic progress bar shows how much of the wash cycle has already been completed. One-touch operation makes it easy to select the required program. Instant understanding
The M-iClean uses a specially designed, stainless steel combined wash and rinse arm which joins the machine's wash and rinse functions. The innovative wash arm, which is made from robust and durable material, eliminates the risk of arms obstructing eachother and makes the machine easier to clean.
Intuitive, simple operation is essential when you are running a business, especially in restaurants where different staff work in the kitchen at different times, this is why the M-iClean has introduced a bold new system of colour coding, any part of the M-iClean that is coloured blue or illuminated blue can be touched, operated or cleaned. The blue-lit touch display also achieves clarity through colour by only showing the precise functions that can be performed at the time. Green power Many machines nowadays are still remarkably wasteful in stand-by mode, steadily eating up the kilowatt hours at an often alarming rate. In contrast, the M-iClean gradually switches its functions one-by-one onto stand-by, using a progressive scale of power-saving modes instead of just one standby status. The M-iClean also features a modern heat recovery system in the form of M-iClean AirConcept, which avoids any contamination of the rinse water while also improving the indoor climate. The hot air is channelled through heat exchangers so that it can be re-used for heating purposes. This can reduce the consumption of valuable (and expensive) energy by up to 15% – and it even gets the dishware dry quicker!
Technology with a big green heart Modern dishwashing technology is expected to make careful and responsible use of water and energy, but instead of pursuing the motto of less is better, MEIKO follows the principle of getting things cleaner by being smarter. After all, the main objective of dishwashing technology is to achieve hygiene and cleanliness, so you will always need a certain amount of clean water and energy. As well as achieving maximum cleanliness with minimal resources that also means building machines from durable materials in a sustainable design. That's why MEIKO has deliberately chosen to use more stainless steel – including for the dosing lines. M-iClean. The intelligent choice. With its intelligent sensor technology, the M-iClean keeps a close eye on key machine components such as the M-iClean filter and rinse arm. Its service-friendly design makes the machine easy to clean. For example, the wash pump is easily accessible from inside the machine, making it quick and easy to remove anything that shouldn't be there.
ALL IN A DAYS WORK
Ready to lend a hand Meeting the people behind the scenes
What made you join the hospitality profession?
Tell us about your average day.
I have always been a very helpful person, going out of my
An average day includes answering calls, check-in and check
way to assist people. By nature I am outgoing, social, caring
–out, offering information, making bookings, handling cash,
and creative, and I realised that I could combine these traits
entering various data, dealing with guest requests and a lot
with my interpersonal skills to make a career in the hospitality
of multi tasking.
industry. In addition, I like the fact that there is never a dull moment in a hotel; you get to feel appreciated and also you
If you could work in other department, what one
get to meet and work with people from different walks of life.
would it be and why? I wouldn't want to change to any other department because I
What was your first role in the industry?
thrive in a position where I interact
My first job in the hotel Industry was as a tourist officer
with guests on a one to one basis.
in 2006 in Kenya at a hotel formerly known as African Safari Club.
Where do you envisage your career heading over the
Why did you choose to work in your current position? I started working as guest service agent in June 2013 because
MERCY MZEE, FRONT OFFICE GUEST SERVICE AGENT CENTRO BARSHA
next five years? I would love to become the guest relations manager.
I finally got an opportunity to do what I really like; dealing
What do you like about your job?
directly with guests, being able to meet people from different
Mostly, I like the fact that each day comes with new chal-
Anything you don’t like about the hotel industry and your job?
parts of the world and with different cultures. I really enjoy
lenges and opportunities to meet different people from differ-
The only thing that stresses me in my current job
the interaction with people and find no problem answering
ent cultures. Listening, socialising and knowing that I can be
is when, for whatever reason, I am not able to meet
even the most trivial questions.
of assistance to someone makes me want to keep on giving.
guest expectations.
In-Stock in Dubai
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FEBRUARY 2015 HOTEL NEWS ME
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COMPETITION
To be in with a chance of winning 6 Spiegelau style glasses and 6 Spiegelau style flutes, simply answer the question below:
THIS MONTH’S ROOM WITH A VIEW GOES TO THE TRANQUIL SURROUNDINGS OFFERED BY BLANKET BAY LODGE IN NEW ZEALAND
‘The company that supplies Spiegelau glassware, is also the same company that supplies Dudson and Revol’, which company is it?’
Blanket Bay Lodge sits at the north end of Lake Wakatipu amidst New Zealand's picturesque scenery, the lodge lies fortyfive minutes away from the world famous resort town of Queenstown where is often titled New Zealand's activity and adventure centre. During the gold rush of the 186’s, miners came to this place seeking their fortunes, first at the Invincible Gold Mine in the Rees Valley and later at Wyuna, where there still exists remnants of over 20 sheelite mines.
Email your answers to hnmesocial@bncpublishing.net with the subject line ‘competition’.
Room with a view
Fredrik Reinisch, regional general manager of the UAE and Seychelles, JA Resorts & Hotels, shares his views on a career outside of the hospitality industry. "If I wasn’t in the hospitality business I would have probably joined the army in Sweeden as an officer, that is the only other career I have considered outside of hospitality. "
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