Hotel News ME - October 2015

THE professional perspective for the hospitality industry OCTOBER 2015 | WWW.HOTELNEWSME.COM

The challenges and opportunities emerging in the region’s most promising hotel market

The future of hospitality Gerald Lawless imparts with his industry insights for the future

Omani Empire

How the Sultanate of Oman is presenting strong growth opportunities

Chain Focus

Why FRHI plan to double its MEA & India portfolio by 2020

CONTENTS

hot topics 08 | NEWS round up a summary of regional and global news 22 | cover story The challenges and opportunities emerging in the region’s most promising hotel market: iran 28 | chain focus Fairmont Raffles Hotels International (FRHI) 46 | MEET THE EXPERTS Hospitality specialist views

features 40 | take 10 saudi on the rise

32

42 | hotel design trends Al Al Marjan Island has been tipped to become Ras Al Khaimah’s landmark 36 | F&B Forum The roundup from the big f&b forum

36 42

40

CONTENTS

22 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

18

Sales Manager Charlotte Ringrose Charlotte@bncpublishing.net

52 | event review the rundown from spatec middle east 56 | marketplace The supplier and buyer roundup of news, products and services 44 | Tatjana Ahmed writes about her recent collaborations with Housekeeping Associations in London and Mumbai

Group Editor Melanie Mingas Melanie@bncpublishing.net Editor Sophia Soltani Sophia@bncpublishing.net Art Director Aaron Sutton Aaron@bncpublishing.net

28

Marketing Executive Mark Anthony Monzon

c o n t ribu t o rs Gemma Greenwood

SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196

56 Further to our September issue Chain Focus, Millennium & Copthorne MEA operates 22 hotels across the region and will open M Hotel Makkah in Q2, 2016. The Saudi Focus section of the article incorrectly referred to Movenpick Hotels. Hotel News ME apologies for any confusion caused.

4

HOTEL NEWS ME October 2015

For all commercial enquiries related to Hotel News ME contact dom@bncpublishing.net T +971 50 55 97339 All rights reserved Š 2014.

Opinions expressed are solely those of the contributors.

Hotel News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Hotel News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Printed by Raidy Emirates Printing Group LLC www.raidy.com

PORDAMSA速 Design for Chefs Porcelain Manufacturers Since 1975

Distinctive designed tableware for profesional use makes the difference.

For more information please contact:

1765 Gemini LLC P.O. Box 125434, Dubai, UAE Tel. +971 4 388 4773 Fax. +971 4 388 4772 Email - info@1765gemini.com Website - www.1765gemini.com www.pordamsa.com

Persian Promise As Iran’s historic nuclear agreement breaks boundaries, how will the region’s hospitality sector cope with the influx of foreign investment?

As a proud half-Iranian myself, it has made for a great change to hear some positivity surrounding the Islamic Republic of Iran with hoteliers and investors lively with excitement at the prospect of developing and opening hotels in Iran, where since 1979 foreign investment has been restricted.

And following the historic nuclear agreement in July, which is set to see international sanctions lifted, I am expecting to see a modern-day gold rush as investors check back in and race to secure their place in one of the world’s largest untapped markets.

With the Iranian hospitality industry having been isolated from the rest of the world for the last 30 years, many of the existing properties have been left outdated and rundown.

So with Tehran’s existing portfolio of 96 operating hotels, and only 16 of those sitting in the 4 and 5-star bracket, it leaves no shadow of doubt in my mind that the opening of Iran’s economy is going to present humungous opportunity for the industry.

With the lack of experienced hotel operators in Iran, chains including Rotana and AccorHotels are already set to cash in on the boom. With Rotana opening four hotels under the company’s alcohol-free brand, Rayhaan Hotels & Resorts by Rotana and AccorHotels set to open two properties this month.

So with plenty of pros to the sanc-

6

HOTEL NEWS ME October 2015

tions being lifted, what about the cons?

Despite the recent improvements seen in the region, if any new restrictions are announced by the US government, or issues arise with Iran’s involvement in the Syrian war, plus the risk of ongoing tensions with Saudi Arabia and other international powers, can indeed leave Iran in an open position of instability.

Despite the ‘what ifs’ and the ‘buts’ Iran is rich in resources and has a great number of skilled, straight out of university graduates ready to drive employment in the service industry. So with that said, the long term potential for Iran given the country’s population of almost 80 million, with a well-educated workforce in good stead for an economic boom with further relaxed sanctions.

Sophia Soltani Editor

Follow us on our social media pages @hotelnewsme /hotelnewsmme hotelnewsme

REGIONAL NEWS

NEWS

WHO SAID THAT?

“We are very proud to have opened our first properties in Turkey, which we see as representing an important milestone in our continued growth and global expansion."

Omer Kaddouri, President & CEO of Rotana

Visitor attraction revenue set to double by 2019 A report published by EuromoniChristine Davidson, group sus $638 million for the UAE. tor International for The Hotel event director of the dmg events But with massive leisure deShow and The Leisure Show Dubai hospitality portfolio, including velopments currently underway 2015 revealed the positive outlook The Hotel Show and The Leisure across the UAE including five for the UAE hospitality industry Show, said: “Euromonitor Interna- theme parks, three major muwith annual revenues forecast to tional’s new report reveals that the seums and two safari parks, its reach $10.9 billion in 2019, al- UAE is leading the Middle East visitor attraction revenues are most doubling from the $5.9 bil- and North Africa for hotel room forecast to almost double to $1.2 lion figure recorded in 2013. revenues, with over three times billion by 2019.

Visitor attraction revenues the amount recorded and foreAs more developments enare also forecast to double from cast for Saudi Arabia and Egypt ter the pipeline, including last $521 million recorded in 2013 to who follow. month’s announcement of the over $1.2 billion record-breaking by 2019.

“Saudi currently leads the market Meydan One project In 2015, UAE the world’s for visitor attractions, however, featuring hotel revenues are largest indoor ski also forecast to with $4.6 billion in revenues fore- slope, the UAE’s fucast for 2015 versus $638 million ture for leisure and reach $7.3 billion, while visitor attracentertainment tourfor the UAE.” tion revenues will ism looks exceedhit $638 million.

“The UAE also currently leads ingly good.”

The new figures were released the region for hotel construction All which ties in with STR at The Hotel Show and The Lei- to meet demand.”

Global's September 2015 report sure Show Dubai 2015, which ran She continued: “Saudi currently that there are 693 hotels in the from Monday 28 September 2015 leads the market for visitor attrac- pipeline for the MEA region, tofor three days at the Dubai World tions, however, with $4.6 billion talling 1765, 674 rooms under Trade Centre. in revenues forecast for 2015 ver- the total active pipeline.

8

HOTEL NEWS ME October 2015

GO FIGURE

$10.9b the predicted annual hospitality revenue forecast for 2019

5

theme parks currently under construction in dubai

26%

of muslim travel spend is on shopping

44th dubai's global ranking on list of top cities for international meetings, 2014. (source: icca)

No Preser vatives | No Palm O No Hydrog il Gluten Fr enated Fats ee | Lac tose Free

Showroom 3, Sh Ahmed Bin Juma Bldg.

Sh. Zayed Road, Dubai, UAE | ABU DHABI | OMAN

Come & Visit us!

Hall 7: Stand B7-4

Phone: + 971 4 3433478 Fax: +971 4 3433498 E-mail: info@lamarquise.ae - www.lamarquise.ae

27-29 October, 2015 Dubai World Trade Center

REGIONAL NEWS

WHO SAID THAT?

GO FIGURE

4 & 5 star

“Our long-term strategy targets asset-light and sustainable growth with a specific focus on emerging markets. Kurdistan is one of the most interesting emerging markets in the Middle East: this prospering oil-rich country is not affected by instabilities in Iraq and offers considerable business potential. We carefully monitor and evaluate safety and security in Kurdistan and are confident that the region will experience a further positive development.”

Wolfgang M. Neumann, president & CEO of Carlson Rezidor."

“Through the launch of this Emiratisation programme we aim to build a significant talent pool of Emirati professionals in theme park operations."

Raed Al Nuaimi, Chief Executive Officer of Dubai Parks and Resorts

hotels in Dubai experienced a significant increase in performance levels for the month of July compared to the same period last year.

(SOURCE: HOTSTATS)

319

“We are very excited about signing this partnership with Aria Ziggurat in Iran.

We are certain that Novotel and ibis will fit perfectly into the growth momentum that Iran’s hospitality sector is enjoying. Our brands are looking at huge growth potential in this country, which is home to almost 80 million people and is expanding its economy. Our ambition is to develop an important network in the country thanks to our global portfolio of brands covering all segments, from luxury to midscale and economy.”

Sébastien Bazin, Accor Hotels’ Chairman and CEO

The COMBINED TOTAL number of KEYS ROTANA'S NEW Burgu Arjaan by Rotana and Tango Arjaan by Rotana WILL ADD TO its PORTFOLIO

Dubai Parks and Resorts launches emiratisation programme Dubai Parks and Resorts has launched a major emiratisation programme to target more than 1,000 UAE nationals by dedicating more than one third of its jobs to Emiratis. In line with Dubai's 2020 vision and seven year national agenda, the programme will seek to empower and grow a new generation of talent for the theme park industry, one of the UAE’s most exciting growth sectors. The programme includes three divisions, Forsati, Sahim, and Helmi, which offers Emiratis of all career levels, from new graduates to future leaders, an inspiring range of job opportunities. Forsati, which means my ‘opportunity’ in Arabic, will comprise a development pro10

HOTEL NEWS ME October 2015

gramme for UAE nationals of high-school education or below and provide a total of six months training.

Sahim, which is Arabic for ‘contribute’, will offer a direct recruit of UAE nationals at all levels with a high-school education and above with a minimum of three years’ experience across all departments. Helmi, which means ‘my dream’ in Arabic, will offer graduates an exciting scholarship programme. Each programme division will empower participants to become well-trained professionals, who will play a central role in driving the the operations of the company’s three theme parks in Dubai that are set to open in October 2016.

New Cooling Ceramics

“The Magisso Cool-ID Tumbler stands out with surprisingly long-lasting cooling effect.

It is also convincing in terms of its formal design in contrasting colours. ” – Statement of the Red Dot Design Award 2015 jury

Renarte General Trading LLC

1109 - Showroom | 1002 - Office, Grosvenor Business Tower, Tecom PO Box 123568 Dubai UAE Tel: +971 4 4356994 Fax: +971 4 4356993 sales@renartellc.ae www.renartellc.com

REGIONAL NEWS

The UAE’s tourism contribution in 2014 to the GDP recorded AED126.7billion and is projected to grow by 5.1% in 2015 reported by the World Travel Council."

Vincent Miccolis, Area General Manager, Gulf Region, ASCOTT INTERNATIONAL MANAGEMENT

Go figure

18,555 Visitors from morocco came to abu dhabi in 2014. a 40% increase from 2013. (source: TCA Abu dhabi)

27.2 the percentage growth in revenue for abu dhabi hotels (source: hotstats)

12

Four Seasons Hotels & Resorts confirms 12 openings for 2016 Four Seasons Hotels & Resorts

has announced plans to expand its global footprint with 12 new hotel openings over the course of 2016. Three of the scheduled 12 hotels will open in the GCC including the hospitality brand's first hotel in Kuwait.

The First Four Seasons Hotel will open in Abu Dhabi, boasting 200 rooms at Al Maryah Island in the heart of the new Central Business District.

Other openings include the brand's second Dubai property which will open in Downtown Dubai and host 106 rooms.

Marking the brand's initial entry into Kuwait the Four Seasons Hotel will be situated in Burj Alshaya, the central business district with 263 rooms.

Additional properties include Bogota, Colombia, the second of two additions to the brand’s South American portfolio, the modern, 64-room hotel will also

HOTEL NEWS ME October 2015

introduce a new Japanese concept restaurant to a city that is receiving growing international attention.

Kyoto, Japan will be an 124room hotel marking the second property in the region and will be situated close to the city’s historic Higashiyama-ku district.

New York, USA Four Seasons will be located in Lower Manhattan in the Tribeca district and just a short city stroll from the new World Trade Centre. The new propery will host 185 rooms and joins its sister hotel in Midtown, offering travellers two options in the city. The Robert AM Stern Architects building with interiors by Yabu Pushelberg will also be home to an exclusive spa and fitness facility.

The Oahu, Hawaii, USA property will arrive as the fifth resort on the island and is set to have 358 rooms. The Four

Seasons Resort O‘ahu at Ko Olina is situated on the beachfront on the island’s sunset coast, with easy access to recreational pursuits, historic sites and shopping.

Surfside, Florida, USA will be an exclusive 77-room hotel with a 9-acre complex with 965 feet of Atlantic beachfront with more than 40 beach cabanas amongst landscaped gardens and four pools.

In Tianjin, China, underscoring the continued strategic importance of China as both an inbound and outbound travel market, the 259-room Four Seasons Hotel Tianjin will be the brand’s ninth hotel in the country. Part of a mixed complex with an office tower and retail stores, the Hotel is in a pedestrianfriendly area near Nanjing Road, the city’s main east-west thoroughfare and Bingjiang Avenue, the city’s major shopping area.

Comprehensive Menu.

Gourmet Lunch. One Source.

Butter Croissant (Bridor) Pain Au Chocolat (Bridor) Pain Aux Raisins (Bridor)

Sparkling Mineral Water (S.Pellegrino) Still Mineral Water (Acqua Panna) Still Mineral Water (Sohat) Sanpellegrino Sparkling Fruit Beverages

Brownie Heaven Chocolate Peanut Butter Cake (Sweet Street)

Waffles Waffles (Carbon‘s Golden Malted) Butter (Bridel)

Grilled Rib-Eye Steak Rib-Eye (ULSA) Beef Stock (Maggi) Potato Cubes (La mbWeston)

Grilled Salmon with Olive Oil and Lemon Filet Mignon with Asparagus Tenderloin (Stanbroke) Demi Glace (Maggi) Mashed Potato (La mbWeston)

Salmon (SEACREST) Basmati Rice (Tilda) Virgin Olive Oil (Chefmate)

T: +971 4 340 3330 F: +971 4 340 3222 marketing@horecatrade.ae www.horecatrade.com Order Online Now at shop.horecatrade.com & double your HORECA Rewards points

REGIONAL NEWS

Hotel News Middle East's Procurement Conference

SAVE THE DATE

Procurement Conference October 19, 2015 Grosvenor House, Dubai

Free to attend for hotel Procurement Managers, Purchasing Managers, Finance Managers, Cost Controller, Revenue Managers, General Managers

WHO SAID THAT?

GO FIGURE

“One of the biggest trends of 2015 is the surge in Middle Eastern and Mainland

The value by which GLOBAL HOTEL TRANSACTIONS HAVE RISEN Y-O-Y TO 55%.

(SOURCE: JLL)

Chinese investment into hotels globally."

11%

Mark Wynne Smith, Global CEO JLL Hotels & Hospitality

14

HOTEL NEWS ME October 2015

opportunities.

Panel sessions will cover pressing industry matters including a debate surrounding the potential impact on supply and demand for hotel equipment and furnishings considering the 175,574 rooms under construction in the Middle East. The conference also promises to deliver a lively discussion covering e-procurement practices and new software solutions that claim to simplify the buying process but often hinder the user.

The conference is free for all purchasing, finance and procurement professionals to attend, please contact mark@ bncpublishing.net to register.

$42bn

UAE spa tourism set to be worth $411m by 2015, with the Global Wellness Institute identifiying that the MENA region is the second fastest-growing market in the world for spas

Hotel News Middle East is set to host its inaugural Procurement Conference on 19 October, 2015 at Grosvenor House, Dubai.

The industry event is due to bring together procurement professionals, purchasing managers and directors from across the MENA region to discuss evolving procurement practices, new opportunities and how technological advancements are working towards fully automated services.

The half day event will boast a stellar line up of panelists, key-note speakers and industry analysts with both prime discussion time and key networking

GROWTH FOR HALAL TOURISM INDUSTRY BY 2020.

(SOURCE: DUBAI CHAMBER)

HMH partners with Ethiopian airlines frquent flyer program HMH – Hospitality Management Holdings has entered into a partnership agreement with Ethiopian Airlines’ Frequent Flyer Program, ShebaMiles. As part of the agreement all ShebaMiles members staying at any participating hotel within the HMH portfolio will be entitled to earn 2 Miles per $1 spent for their qualifying service. "Ethiopian Airlines ShebaMiles is one of the most successful frequent flyer programs with over one million members from 200 countries and is stated to grow at an annual rate of 20%," said Laurent A. Voivenel, CEO of HMH.

STONEWARE

Granite Double Face Carved in fine marble from Macarel. All pieces are unique and unrepeatable. They are carved and polished to offer customers a unique experience.

SUBLIME PORCELAINE

Oyster XXL, Oyster L & Sea Urchin Inspired in the original shapes of the nature

CATERING

GLASS CONCEPTS Chardonay with handle Exclusive and fully customizable in small quantities with infinite possibilities. resistant to blowtorch, nitrogen, big temperature changes, highly resistant to impact from silverware and anything imaginable!

It’s amazing!

Yogurth & Yogurth thermo-sealable cover Smart presentation.

Indispensable to serve appetizers, snacks, cocktails, dessets, vinaigrettes, sauces and juices.

Visit us online and discover 100s more creative products email: info@muddle-me.com P . O . Box 57245, Dubai, UAE tel: +971 4 354 5220 fax: +971 4 329 8283

facebook.com/muddle.me.online twitter.com/muddleme issuu.com/muddleme www.muddle-me.com

REGIONAL NEWS

There are

688

hotels, Totalling

175,574 rooms under contract in the MEA region This represents a

19.1% increase in rooms under contract compared with August 2014 (SOURCE: STR GLOBAL)

Go figure

670,853 people travelled to and from Dubai through its land, sea and airports during Eid Al Adha 2015

With a total number of

17,306 residency permits and

123,974 entry permits issued during Eid Al Adha (SOURCE: GDRFADubai)

16

Mövenpick Hotels & Resorts announces African expansion plans Mövenpick Hotels & Resorts is taking its Africa expansion plans to the next level by debuting in three new African markets over the course of the next four years. The hospitality company plans to establish a presence in key cities across the continent’s thriving SubSaharan region.

The Swiss hospitality brand will open three upscale hotels across Kenya in East Africa and Nigeria and Cote d’Ivoire in West Africa, between 2016 and early 2019.

The expansion trail will commence with the opening of the 223-key Mövenpick Hotel & Residences Nairobi in mid-2016, followed by the 212-key Mövenpick Hotel Abidjan in early 2018, rounding off with the 250-key Mövenpick Hotel and Conference Centre Abuja in 2019.

“Sub-Saharan Africa is forecast to be the fastest growing region in the world over the next five years with a projected GDP growth rate of 4.8% from 2014 to 2018, according to research by Deloitte,” said Alan O’Dea,

HOTEL NEWS ME October 2015

senior vice president Africa, Mövenpick Hotels & Resorts.

“It is therefore crucial we get a strong foothold in this market, which is undergoing a trade and investment boom right now, and our three new properties are well positioned to capitalise on the economic growth projected across both East and West Africa.”

Mövenpick Hotel & Residences Nairobi is a 15-storey property owned by prominent regional real estate developer, Golf Course Hotel (K) Ltd., situated in the Kenyan capital’s soughtafter Westlands district with stand out features including a revolving tower with panoramic downtown views plus extensive dining, leisure and meetings facilities. Mövenpick Hotel Abidjan is located in the centre of Cote d’Ivoire’s largest city, adjacent to the corporate and government district and offering guests an impressive range of business, MICE and leisure amenities.

Mövenpick Hotel and Conference Centre Abuja, owned by Queen Amina Garden Ventures Ltd, a wholly

owned subsidiary of Urban Shelter Ltd a prominent Nigerian property development company, will take advantage of Nigeria’s status as Africa’s largest economy. Located in the capital’s upmarket Jabi Lake district and a part of a stunning leisure and hospitality master development, the property’s highlights will include five food and beverage outlets, a dedicated conference centre and spa and fitness facilities. “Our new properties are strategically located in Sub-Saharan Africa’s most economically prosperous cities,” said O’Dea. Mövenpick Hotels & Resorts’ African portfolio currently comprises 23 hotels, resorts, and cruise ships spanning five countries including Egypt, Tunisia, Morocco, and Ghana.

The company will open its third property in Morocco, the Mövenpick Hotel Mansour Eddahbi & Palais des Congrès, Marrakech, in mid-2016 and has inked a management deal for a third hotel in neighbouring Tunisia .

Face to Face

The future of hospitality

Gerald Lawless, president and group CEO, Jumeirah Group weighs up the impending shortage of talent for the industry, life post Expo 2020 and Jumeirah’s ambitious plans to have 46 hotels in operation by 2020

18

HOTEL NEWS ME October 2015

You have spent 18 years with Jumeirah and have extensive experience within the hospitality industry, what first attracted you to the industry?

I was interested in going to hotel school because it is such a welcoming and inclusive environment and industry, a hugely positive industry where you meet so many people.

I learnt so much in my early years and have passed on my wisdom to my son, who recently graduated from the Cornell University of hospitality. I told him that he’ll never be lonely in the hospitality industry, because you are always interacting with people and it is a hugely vibrant business and those are the key factors that first attracted me to the industry.

D EFINING GUEST EXPERIENCE SINCE 1942 1942

With 11 Jumeirah hotels currently operating in the Middle East, which would you say are performing best?

We have a pretty even performance around the world between Middle East and Europe, the most outstanding performers are the hotels in Dubai and the Maldives as these are at the top end of the spectrum operating with very high occupancy rates.

Our occupancy levels worldwide are very good, and Abu Dhabi has been a great growth story for us, as we have grown very strongly there. On a global basis we are getting a lot of interest from other brands asking us to run their properties.

What is your vision for the Jumeirah brand, and how do you ensure it stands out in a competitive market?

One of the greatest things about Jumeirah is that we are Dubai based but our brand isn’t just well respected in the region, but worldwide too with our iconic properties including the Burj Al Arab and Jumeirah Emirates towers that have become landmarks for Dubai and the region.

When you look at these hotels they have truly stood the test of time, and haven’t suffered with old age or gone out of fashion.

Whilst we are known as a luxury brand we have reintroduced to the market our lifestyle brand Venu, which is inspired by the spirit of Dubai and is infused with a powerful sense of substance. We believe that this new brand will appeal to the millennial traveller and will give us a competitive edge to our existing portfolio.

Our Venu brand is expected to open in 2017 and will offer 119 serviced apartments and 300 rooms, ensuring we stand out in the market.

Valette Hotel Safety Welcome Tray A sleek contemporary design.

Dubai (Stockist): +971 4 420 2667 Cairo: +202 225744966 Amman: +962 6 4783 251 Email: sales@northmace.com

Can you tell us little bit about your global brand strategy?

HNME VWT 0115

We have 11 operating hotels and 12 properties in the pipeline scattered around the globe including locations such as China, Spain, Azerbaijan and the UK. Our current pipeline includes two hotels in Muscat, one in Abu Dhabi at present but we are looking at potentially two more there, eight in China, one in Bali and next year we will be concluding our fourth phase at Madinat Jumeirah’s, Jumeirah Al Naseem.

All of this highlights Jumeirah’s competitive edge and we want to keep raising the bar of luxury and setting it at

www.northmace.com

Face to Face

Jumeirah Beach Hotel, Dubai

another level. We have serious ambitions for the future and are always careful about where we plan on going next.

Historically there tends to be an economic downturn post Expo, what do you foresee happening to the hospitality industry after 2020?

Jumeirah at Etihad Towers, Abu Dhabi

With over 175,000 rooms under construction in the Middle East, what impact do you think this will have on the employment crisis currently facing the hospitality industry?

Travel, tourism and hospitality account for 277 million jobs and this is projected by 2020 to grow to at least 300 million jobs worldwide.

I am extremely inspired by the leadership of the Vice President and We have also seen a total of 9% of global employment falls under Prime Minister of the United Arab Emirates and President of Dubai, hospitality, which is more than the car industry and more than many his Highness Sheikh Mohammed Bin Rashid Al Maktoum and I have other industries too. every faith in his leadership to guide Dubai onto the right path pre and So for one I really feel that we don’t get enough credit within our post 2020. industry for how much travel, tourism and hospitality benefits the We are not just focusing on 2020 at Jumeirah and nor are many global economy. other hotel chains, we have to plan for the future if we want to grow in Secondly, we are forecast to grow over the next five years within the this market. industry by at least 4% per annum, which way exceeds the GDP goal So our ten year plan should lead us to having approximately 75 for most countries.

Jumeirah hotels worldwide as a prediction by say 2023 and by 2020 We need to look at where the business is coming from and we also we should be looking at somewhere in the region of 45 or 46 hotels in need to ensure that we have the correct career growth for the next operation. generation of hoteliers.

The future of travel and tourism, as predicted by the Royal Travel and The Jumeirah Group recently launched its own restaurant group, Tourism Council shows us that we have a talent shortage in 37 out of 46 what can you tell us about this move? countries internationally, so this is a huge challenge for us here in Dubai The Jumieriah Group already has a stable of brands including Jumeirah too, but I do think this is a challenge we are well ready to face.

Hotels and Resorts, contemporary lifestyle brand Venu, plus our wellWe know that we can attract more people to the region and industry, ness brand Talise so it was only right that we debuted a restaurant brand but we also have to be careful as to how we attract people to these jobs. in February this year.

I personally feel that within the hospitality industry we have In doing so, the Jumeirah Restaurant Group senior leaders excelling yet we don’t take Dubai has been a really successful venture and enough risks with the younger people. it is a global restaurant management company At The Jumeirah Group, we have made “We have 11 operating that operates, creates and franchises a variety of sure that we are pulling graduates in from hotels and 12 propdifferent restaurants.

Cornell University, Emirates Academy of erties in the pipeline We currently have 60 restaurants under our Hospitality and other hospitality managescattered around ment schools into employment. They are wing including Tortuga, The Noodle House the globe including management graduates, and I do seriand Pierchic and we operate not only high-end locations such as ously believe that we need to give people brands, but also offer casual dining solutions and China, Spain, Azerbaithe opportunity to progress quickly in their lounges. And we seek to develop further existing jan and the UK” industry. It is vital that we reach out to our restaurants located within our Jumeirah and local community too and encourage Emiratis Resorts portfolio with menu overhauls, refurbishments and by acquiring top-notch chefs. to engage in the hospitality industry.

20

HOTEL NEWS ME October 2015

Le MĂŠridien Hotel - Abu Dhabi, UAE

Four Seasons Resort - Dubai, UAE

Four Points by Sheraton Hotel - Beirut, Lebanon

Rosewood Hotel - Abu Dhabi, UAE

Four Seasons Hotel - Beirut, Lebanon

W Hotel - Doha, Qatar

Sofitel Hotel - Dubai, UAE

Oryx Rotana Hotel - Doha, Qatar

Hilton Hotel - Mecca, KSA

The challenges and opportunities emerging in the region’s most promising hotel market

By Gemma Greenwood

Cover story

S

eptember 15, 2015 heralded a new era for Iran’s dorthe world over look to capitalise on Iran’s massively untapped mant hotel industry. trade potential.

International hospitality giant AccorHotels officially Accor was one of the savvy companies that seized the moment, signed its two inaugural properties in Tehran with ownsigning on the dotted line for its two Tehran properties, which ing firm Aria Ziggurat Tourism Development Company. are both connected to the main terminal of Imam Khomeni When Novotel IKIA and ibis IKIA open their doors this International Airport, on July 29, just 15 days after Obama and month (October 2015), it will mark a momentous occasion, says Rouhani’s historic agreement was made.

Christophe Landais, managing director, Accor Middle East.

“We are very excited about signing this partnership with Aria “When we go into a country we try to be leader and in Iran Ziggurat in Iran,” said AccorHotels’ chair and CEO, Sébastien we are the first international company to sign and open properBazin, speaking at the official management agreement signing on ties in 36 years,” he says. “We intend to remain leaders in this September 15. market, taking advantage of being the first entrant.”

“We are certain that Novotel and ibis will fit perfectly into France-headquartered Accor, one of the world’s biggest hotel the growth momentum that Iran’s hospitality sector is enjoying. companies and renowned for its bold expansion strategy in Our brands are looking at huge growth potential in this country, frontier markets, has been “actively watching Iran for many which is home to almost 80 million people and is expanding its years”, reveals Landais who is close to the action, having overseen economy.”

Accor’s Middle East portfolio from the Accor is not the only branded hotel group group’s regional headquarters in Dubai for to secure properties in Iran. some 16 years.

UAE-based hospitality firm Rotana, also “We couldn’t move any quicker into this known for its maverick approach to entering “When we go into a market because of the sanctions, embargoes emerging hotel markets, has signed managecountry we try to ment agreements for four hotels in Iran – and political situation,” he says. “But we be leaders and in two in Tehran (opening in 2018) and two in have been in touch with possible investors Iran we are the first Mashad (opening in 2017). and assisted some of them by making recinternational comommendations as to the type of hotels that Now that Accor and Rotana have thrown pany to sign and should be developed in anticipation of the down the gauntlet, their experiences in open properties in situation improving so we would be ready Iran will be monitored closely by the global 36 years.” to sign those hotels.” hotel industry and if the nuclear agreement The trigger for Accor was the landmark gets the green light, a huge surge in new agreement reached between Iran and six property signings is anticipated by industry major world powers on July 14 this year, analysts and professionals alike. setting out plans to significantly limit Iran’s nuclear ability in If sanctions are lifted the investment opportunities are vast return for lifting international oil and financial sanctions. says Elizabeth Winkle, managing director of STR Global.

While the historic deal is still being debated in US Congress, “It’s not going to happen overnight, but I think there will be in the words of President Barack Obama, it offers “an opporturapid growth and development,” she says. “Iran has a significant nity to move in a new direction”. population and there are a number of areas of natural beauty and It’s a move Iran’s pragmatic President Hassan Rouhani hopes touristic interest. It’s just a question of how the country markets will eventually bring an end to the isolation his nation of some itself and what opportunities it wants to create after having been 80 million people have experienced since the 1979 Iranian Revoclosed to much of the world.” lution when US sanctions were first imposed. These embargoes have been expanded on numerous occasions since due to the Market potential perceived threat of Iran’s nuclear and political stance.

Prior to the 1979 revolution, Tehran’s hotel market had one of But with the possibility of these crippling financial and trade the highest penetrations of international hotel operators in the constraints being removed in the not-too-distant future, opportunists from a number of industries and markets have dared to region, with IHG, Hyatt, Hilton and Starwood operating properties in prime locations, according to TRI Consulting’s May boldly go where no man has gone before, or at least for the last 2015 report ‘Awaiting the gold rush – exploring the opportunithree decades. ties in Tehran’s hotel market’.

In fact the ink was barely dry on the July 14 agreement before Following the revolution, the industry witnessed decades of a German plane full of the nation’s economic elite touched down stagnation, compounded by the onset of the Iraq-Iran war, in Tehran, the first in a rush of European ministers and business people flocking to a market poised to reopen after a 36-year which made owners reluctant to invest in property maintenance hiatus. and improvement. As a result the quality of most hotels is below Regardless of whether or not Obama can actually push the Irainternational standards. nian deal past the fiercely resistant Republicans in Congress, the There are around 96 hotels in Tehran (compared to Dubai’s gold rush has already started as governments and multinationals 657-plus properties) of which just 13 (around 3,089 rooms) are

October 2015 HOTEL NEWS ME

23

Cover story

classified 4 and 5-star. The undersupply of inventory is evident when you consider the Iranian capital’s population is 12 million.

Occupancies at Tehran’s hotels increased from 58% in 2013 to 79% in 2014 as international relations thawed and tourism arrivals picked up. This generated a 56% hike in room rates from $69 to $108 over that period, according to TRI Consulting’s report.

Prior to the July 14 agreement, domestic and religious travel dominated Iran’s tourism market.

“However, since July 2013 the country has witnessed growth in international visitors,” says TRI Consulting Middle East’s associate director, Christopher Hewett.

“This growth is attributed to the early negotiations over Iran’s nuclear programmes and the improved international relations and public image of Iran set forth by President Hossein Rouhani.”

In late 2013, Rouhani revealed plans to

ACCOR IN IRAN Hotels: Novotel IKIA and ibis IKIA. Location: Imam Khomeini International Airport, 45 minutes from downtown Tehran.

Owner: Aria Ziggurat Development Company, a subsidiary of SEMEGA. Opening date: October 2015.

Specification: Novotel IKIA (296 rooms) and ibis IKIA (196 rooms).

Property features will include Iranian and international cuisine, meeting rooms and convention venues, wellness and fitness facilities and swimming pools.

Iran pipeline: More properties planned.

24

HOTEL NEWS ME October 2015

attract 20 million visitors to Iran by 2025.

“This is an ambitious target given the country only saw 4.8 million visitors in 2014, however, given Iran’s population of 80 million people, its diversity of tourism attractions and destinations, as well as opportunities for investment in the country’s industries, it has the potential to become a leading business and leisure tourism destination regionally and globally,” says Hewett.

“We anticipate the leisure market will mimic similar destinations in the region, notably Egypt, and will be driven by international groups embarking on a tour of the country’s key destinations and attractions. Furthermore we project a growing level of demand from regional residents taking advantage of short holiday periods and visiting individual cities.

“However the key growth segment will be regional and international corporate travellers. The significant opportunities in all sectors of the economy, notably oil and gas, financial services, pharmaceuticals and consumer goods, will result in a new wave of business travellers visiting the country in order to secure their position in the various markets.”

Ali Borhani, founder and CEO of Dubai-based strategic boutique advisory firm, Incubeemea, which recently published the industry’s first ‘Iran Hotel & Hospitality Report’, notes the potential of Iran’s youth as a source market for hotel business both domestically in Iran and international destinations given around 70% of the population is aged under 30.

“One could argue that Iran is one of the largest concentrations of millennial guests who are keen to travel and learn and their needs and tastes are very different to those of their parents,” he says.

“Therefore the biggest opportunity is in trendy, modern and well managed 3and 4-star properties with a progressive and minimalist ambience but with connectivity, amenities, strong F&B offerings plus sports-related activities.”

Cultural tourism is another growth driver he says given Iran is home to 17 UNESCO registered World Heritage sites, while religious tourism, particularly to destination’s such as Iran’s ‘shrine city’, Mashad, located in the north-east of the country, is tipped for greatness.

“the biggest opportunity is in trendy, modern and well managed three- and four-star properties with a progressive and minimalist ambience but with connectivity, amenities, strong F&B offerings plus sportsrelated activities.

– Ali Borhani “All of this represents a very convincing opportunity for visitors, hoteliers and investors alike,” he says.

Iran is also a “true halal destination”, adds Borhani, with an offering “very much in line with the principals and values that Muslim travellers are looking for”, Borhani.

“This could be a key driver in the volume and nature of the source markets that Iran can penetrate and secure,” he says, noting an Islamic economy study by Thomson Reuters valuing the global halal tourism market at $140 billion in 2013, predicted to rise to at least $238 billion by 2019.

All cities, all sectors Hewett says that due to the “severe under supply in the market” with the number of hotels in Iran totaling just 640, there is growth potential across all segments, “from quality budget hotels to luxury 5-star resorts”.

Landais concurs: “We have an ambitious targets for Iran,” he says.

“Accor has 13 brands ranging from its economy ibis product, then its midscale Novotel and Mercure products, to the upscale Pullman and upper upscale Sofitel, so across the board we will be able to meet the demands required in Iran and we want to take a large share of the development pipeline.”

All of Iran’s big cities with a population of more than 1.5 million inhabitants can “support a few market segments of hospitality, from economy to upscale”, according to Landais.

The decision to open Accor’s first two properties at Imam Khomeini International, adding a near 500-room cluster to the market, was based on the airport’s future potential, he explains.

“It’s a relatively new airport that will be dedicated to international airline traffic so we felt it was a good opportunity to have two hotels here, particularly given the government’s 20-million-tourist target by 2025.”

Novotel IKIA (296 rooms) and ibis IKIA (196 rooms) are connected to the main airport terminal and within a 45-minute drive from downtown Tehran.

“we felt it was a good opportunity to have two hotels here, particularly given the government’s 20-million-tourist target by 2025.

“We have a physical advantage with the location of our hotels and it will be some time before our competitors can develop properties there,” adds Landais.

Rotana’s four upcoming Iranian properties – a 4- and 5-star Rayhaan-branded property in both Tehran and Mashad - are also strategically located, says the hospitality firm’s president and CEO, Omer Kaddouri.

The two in Tehran will be built next to one another on top of a brand new mall – “Iran’s equivalent to Dubai Mall” is being constructed by the properties’ owning company offering a combined inventory of more than 400 keys.

The two hotels in Iran’s aforementioned major pilgrimage city, Mashad, owned by the same construction firm, will be located around 1km from one another.

One will be attached to another brand new mall and the other in an “excellent location” boasting a “very modern design” that’s “completely new to Mashad”, says Kaddouri.

“Occupancies are already very high in Mashad due to domestic and international tourism to this shrine city and we believe we can make a difference in this market very quickly,” he says.

“Emirates launching a new [five times weekly] service to Mashad from Dubai [on September 1] is also great news for us.”

Kaddouri says the Rayhaan brand sits well in the Iranian

Cover story

market because of its no-alcohol hotel concept.

“Our owner was familiar with this brand in Dubai and approached us to sign the four hotels,” he says. “We are already in discussions to sign more properties with them every year from 2016 onwards.

“Iran has the potential to be one of our biggest growth markets if things pan out as everyone hopes they will, politically and thereafter, economically.

“As one of the first new hotel players on the ground, opening four iconic hotels simultaneously and introducing a brand new modern product that no one in Iran has seen before, we will get to know the market well and spot opportunities for our other brands.

“I’d like to think we had 10 or more hotels open in Iran by 2025.”

The hurdles ahead While Rotana and Accor have both established rapport with their respective Iranian owners, the ride may not be as smooth for some first-time investors and developers in the country’s hotel market, says Hewett.

“There are a number of challenges,” he stresses. “The first one relates to land prices

“so across the board we will be able to meet the demands required in Iran and we want to take a large share of the development pipeline.”

– Christophe Landais in the major cities, primarily Tehran, where a lack of greenfield sites and elevated prices are hindering future development.

“Furthermore, uncertainty over the legal framework of foreign investment, particularly in the hospitality industry, is impeding growth as investors spend an increasing amount of time understanding the landscape.

ROTANA IN IRAN Hotels: Four properties in total - a 4- and 5-star Rayhaan-branded property in both Tehran and the ‘shrine city’ of Mashad.

Location: The two Tehran properties will be built next to one another on top of a brand new mall and in Mashad, the two hotels will be within 1km of one another and one of them will also be attached to a new mall.

Opening dates: Mashad 2017 and Tehran 2018.

Specification: Tehran - 400 keys across two properties. Mashad – 440 keys across two properties.

Iran pipeline: 10 or more open by 2025.

26

HOTEL NEWS ME October 2015

Borhani says that while many entities in Iran are land rich there is a “liquidity trap”.

“Hence you have a lineup of keen operators who are willing to enter the market, some really interesting mixes of privately owned or institutional property portfolios and land banks, yet the commercial model and syndicated finance for hospitality development is still in its infancy,” he explains.

“The most important aspect of the Iran deal is the mobility of capital and investments in and out of Iran and the fact of the matter is that any operator entering the market today will have to wait for the conversion of a property or a new Greenfield project.

“With sanctions being removed it simply means that by the time the operator has to deliver the repatriation of capital, revenues and profits earned it can do so through official banking channels.”

While the rush to enter the Middle East’s “last frontier market” has well and truly started, led by international companies, exporters and investors, the world’s travelling public may be more reticent given the negative perceptions associated with Iran.

In the short term, domestic and corporate travel will drive visitor growth says Borhani, but he believes the leisure market has strong potential too.

“There is a sense of curiosity among many people who are yet to visit Iran but are keen to explore its culture, landscape and nature,” he argues.

Kaddouri says it will “take time” to grow Iran’s leisure tourism industry but hopes the government will launch more global promotional campaigns to highlight the country’s compelling offering.

“The more people who visit for business and have a positive experience the better,” he says.

“I think we’ll also see more MICE business in the future, particularly corporate meetings and also exhibitions, because everyone will want to sell their wares and invite the world to see them,” adds Kaddouri.

Landais says Iran will also need to review its internet and credit card policies if it is to meet its ambitious tourism targets.

“At the moment our Iranian hotels are bookable on web, but we are not con-

Cover story

nected to the web,” he explains. “There are also no international credit cards in Iran so as a foreigner you have to pay with cash. That will slow down the development of the tourism industry because today everything is done online and paid for with cards.”

Setting new standards At hotel level, the main challenge new international operators entering the Iranian market face is getting the country’s workforce up to speed.

Iran boasts a highly educated workforce yet its experience of world-class hotel standards is virtually non-existent.

“Iran has some great talent and some particularly good engineers and technicians, but they don’t know about hospitality and service,” confirms Landais.

“We will have around 300 staff when we open our two properties so we are training them on-site right now.”

He says recruits have been selected based on their personality and approach,

Hotel News Half Page October 2015.indd 1

“The significant opportunities in all sectors of the economy will result in a new wave of business travellers visiting the country in order to secure their position in the various markets” – Christopher Hewett because “you can teach skill, but not attitude”.

Trainers from Accor’s Dubai-based academy are working with the new Iranian staff plus an English-language tutor

is on hand to help teach them commercial English.

Kaddouri reveals Rotana is seriously considering opening a hospitality school in Iran in conjunction with the owner of its four upcoming properties and has already discussed this opportunity with third-party educational providers.

“We will be employing up to 1,500 Iranians and we need to train them to international standards, particularly the service element,” he says.

“We want to give young Iranians the chance to start something new, ensuring Rotana is perceived as a company that gives back to the community.”

Both Kaddouri and Landais say as the first market entrants they have a duty to help foster a flourishing hospitality industry in Iran.

“We have a responsibility to define the standards and train people to deliver to those standards,” Landais stresses. “We are lucky because the Iranians are naturally hospitable people.”

October 2015 HOTEL NEWS ME

9/22/2015 3:14:20 PM

27

Chain focus

FRHI Hotels & Resorts Hotel News ME looks at the luxury hotel group’s plans to double its MEA & India portfolio across all three of its brands over the next five years

The 309-key Fairmont Amman will open next year (2016)

Swissôtel Katameyah, Cairo, will open before 2020

GROUP OVERVIEW Fairmont Raffles Hotels International (FRHI) FRHI Hotels & Resorts (FRHI) is one of the world’s leading luxury hotel management companies and operates properties globally under the Raffles, Fairmont, and Swissôtel brands.

The company’s portfolio of luxury and upper upscale hotels features celebrated icons, worldclass resorts and stylish city centre hotels. With a corporate vision to be “the world’s preferred hospitality company”, FRHI is focused on providing each and every guest with a unique and meaningful travel experience. FRHI currently operates 117 hotels (more than 44,304 rooms) in 34 countries worldwide, as well as 17 residential properties. It has 40 properties currently under development and employs 45,000 members of staff. There are 12 luxury Raffles Hotels & Resorts, 71 Fairmont Hotels & Resorts and 14 residential properties, and 32 Swissôtel Hotels & Resorts plus two residential properties.

CURRENT MEA & INDIA PROPERTIES 19 properties, 3 brands Fairmont Hotels & Resorts 15 Middle East 9 Africa 5 India 1 Raffles Hotels & Resorts 3 Middle East 2 Africa 1

opened its first property in Ajman on May 1 (2015) featuring 252 guest rooms and suites, eight F&B outlets, a 200-metre private beach, infinity pool, seven meeting venues, one of the largest ballrooms in the emirate and a fitness centre and spa.

Bahrain first: Work is now underway on the new Fairmont Bahrain Resort, which is expected to open in 2018. Highlights of the 5-star property, which is part of the Al Jazair mixed-use project, include 215 guestrooms and chalets and the brand’s signature ‘hotel within a hotel’ concept, Fairmont Gold.

UPCOMING MEA & INDIA PROPERTIES 15 properties, 3 brands

UAE • Fairmont Fujairah, Fujairah (182 keys and 13 units) - 2016 • Fairmont Marina Resort Abu Dhabi (563 keys and 249 units) - 2016 • Swissôtel Jaddaf, Dubai (260 keys) - 2018

KSA • Fairmont Riyadh, Business Gate (304 keys) - 2016 • Fairmont Jeddah (350 keys and 100 residences) - 2018 • Raffles Jeddah (180 keys and 165 residences & 21 apartments) – 2018 • Swissôtel Jeddah (247 keys) – 2018

Bahrain Fairmont Bahrain Resort (215 keys) - 2018

Swissôtel Hotels & Resorts 2 Middle East 1 India 1

2015 ANNOUNCEMENTS Ajman debut: Fairmont Hotels & Resorts 28

HOTEL NEWS ME October 2015

Egypt • Fairmont Citystars Sharm El Sheikh (414 keys and 316 units) - 2016 • Raffles Citystars Sharm El Sheikh (234 keys and 100 villas) - 2019

Chain focus

Fairmont Ajman opened in May on the emirate’s Corniche

Swissôtel Citystars Sharm El Sheikh

• Swissôtel Citystars Sharm El Sheikh (387 keys and 374 units) - 2016 • Fairmont Soma Bay, Hurghada (300 keys and 150 residences) – before 2020 • Swissôtel Katameyah, Cairo (250 keys & 150 residences and 50 units) – before 2020

Jordan • Fairmont Amman, Jordan (309 keys) - 2016

Africa • Fairmont Lagos, Nigeria (220 keys) - 2017

BRAND FIRSTS • First Raffles in Egypt - Raffles Citystars, Sharm El Sheikh: Set to open in 2019, the property will feature 234 guestrooms, 100 branded residences/villas, 2,500 square metres of meeting venues, nine F&B outlets, and a Raffles spa.

• First Swissôtel in the UAE - Swissôtel Jaddaf: The property will offer 260 rooms, 1,600 square metres of meeting space and a Purovel Spa & Sport when it opens in 2018.

• First Swissôtel in Egypt – Swissôtel Citystars Sharm El Sheikh: On track to open next year (2016), the hotel will offer 387 rooms, 374 branded residences, four F&B outlets and a wellness centre and spa.

Luxury Gourmet Olives from around the world

Telephone: +971 56 4806518 Email: ross@tgom.me Website: www.tgom.me thegourmetolivemarket.me

#thegourmetolivemarket

@tgom_me

Distributed by:

Come visit our market every Friday at The Ripe Market - Zabeel Park October 2015 HOTEL NEWS ME

29

Chain focus

5 minutes with...

Frédéric Savoye

vice president sales & marketing, MEA & India, FRHI

across divisions spanning design and construction, development, human resources, operations, finance, F&B, spa, procurement, IT, finance, and sales and marketing.

What role will technology and social media play in the group’s sales and FRHI is just one of many hotel groups significantly increasing its portfolio region marketing strategy going forward? wide by the end of the decade; how will you position each hotel and brand to Technology and social media continue to play an increasingly ensure they stand out in their competitive set and meet their performance important role in our business in terms of how we interact with our targets? guests. Today’s travellers are constantly seeking more digital sources One of the main differences between FRHI Hotels & Resorts and other brands is that our hotels are situated in the luxury and upper upscale market and each one features its own distinct personality. We are in a unique position because thanks to our three big brands and landmark hotels such as Raffles Singapore and The Savoy, a Fairmontmanaged hotel in London, we are known as a key player in the luxury hotel market, but at the same time we operate as a smaller hotel chain having retained lasting and meaningful relationships with our owners.

We also operate a number of iconic hotels region wide, from Fairmont Dubai, which marked the debut of the brand outside of North America when it opened in 2002, to the biggest guestroom inventory in Makkah, Saudi Arabia, with our three properties (Raffles, Fairmont, Swissôtel) located next to the holy mosque.

Within the next five years, FRHI aims to more than double its portfolio with key properties including Fairmont Riyadh, Raffles Jeddah, Fairmont Jeddah, and the tri-branded CityStars Sharm El Sheikh project. We’ve also announced two additional projects in Egypt – a Fairmont in Soma Bay, Hurghada and a Swissôtel in Katameyah, referred to as the ‘New Cairo’. With a robust portfolio in place, leveraging our existing brand equity becomes a key focus for FRHI and this certainly falls in line with our pipeline growth projections.

Our expansion is not only based on aggressively pursuing growth markets, but also a reflection of the trust owners have in FRHI. Our goal is to ensure owners are taken on as long-term partners and that we continue delivering exemplary service combined with top line revenue and market penetration.

This is clearly demonstrated with our company’s foothold in Egypt. Given our successful management of Fairmont Nile City over the past six years, the owning company has entrusted us with five landmark projects, all of which are due to open before 2020.

Lastly, to support our growth and to support our 19 hotels already in operation, we have invested in a regional office in Dubai Media City. Over the past two years we have successfully recruited more than 60 professionals to help us achieve our corporate ambition to become the preferred luxury hospitality company in the region. These include experts 30

HOTEL NEWS ME October 2015

for research and direct bookings. In the Middle East there are more than 135 million Internet users and more than 71 million of them actively use social media, research reveals. One of our strengths in the digital arena is our MICE sales and marketing strategy. We are working with some the most internationally recognised MICE digital distribution companies to promote our meeting spaces using various online platforms. We launched a yearlong campaign that has already yielded substantial returns to date, with countless leads generated for our hotels across the region.

We’ve also leveraged our digital assets to ‘tell’ the story of the destination and the communities in which we operate. We have launched topical videos showcasing behind-the-scenes information on destinations and their lesser-known attractions.

Lastly, we treat social media as a way to communicate directly with our guests. In this region we recently completed a Fairmont Luxury survey, which reached more than five million people (23 million impressions). The survey found ‘exploring the world’ was what real luxury meant to 42% of respondents, as opposed to consumer goods. Armed with this knowledge our hotels across the region have developed packages and niche programmes that meet this criteria. Our ‘Makkah Landmarks’ programme, for example, provides guests with access to a number of scared but lesser visited sites in the holy city, providing an unprecedented historical view.

What key source markets are emerging for the group’s current and upcoming properties and how do you intend to tap into them?

The GCC remains a key source market for our hotels within the region. The Tourism 2020 Vision study (by the World Tourism Organisation) also reveals the Middle East will generate more than 35 million outbound travellers by 2020. Compared to the rest of the world, GCC Nationals spend 260% more on airfares and 430% more on accommodation. Qataris spend the most per day during their travels ($4,100) followed by Saudi Arabia ($3,360 per day) and the UAE ($3,280 per day).

Given these figures, the Middle East is an essential feeder market, particularly for our hotels in the UAE and Saudi Arabia. We therefore recently launched an FRHI digital media campaign designed to boost awareness of our Makkah complex, which comprises 3,000 guestrooms and suites across our three brands. In the UAE we’ve extended our ‘50% off the second guestroom’ promotion targeting GCC families in particular.

Desintation focus

OMAN THINKS BIG PICTURE

The Sultanate of Oman is rolling out a number of substantial tourism infrastructure developments worth billions, presenting strong growth opportunities for the destination’s hotel industry

MARKET ANALYSIS Infrastructure developments worth multi-billions are currently underway in the Sultanate of Oman, at least $3.3 billion of which has been earmarked for tourism-focused projects.

It’s all part of the Gulf state’s strategy to diversify its economy away from hydrocarbon receipts, providing a sustainable economic model that will create new industries and jobs and safeguard the country’s long-term prosperity.

Tourism is one of the key pillars of this blueprint and as Hotel News ME went to press, the sultanate’s Ministry of Tourism was preparing to unveil a 2015 to 2040 strategy that it says will outline targets for the industry’s growth and contribution to GDP over the next 25 years.

The new terminal at Muscat International

32

HOTEL NEWS ME October 2015

Meanwhile, the list of tourism-related projects planned or underway is extensive, according to research cited by MEED, and includes four museums/libraries, 24 hotels and resorts, six malls, several shopping centres, a theatre, five sports stadia/leisure complexes, a theme park plus four convention centres including the hotly anticipated Oman Convention & Exhibition Centre (OCEC), the first phase of which will open next year.

Luxury hospitality developments are a key focus for Oman given its current strategy to attract high-value quality tourism receipts as opposed to the mass market.

Some of the new properties pipelined therefore, include a Westin, St Regis and W

by Starwood Hotels & Resorts, the $200 mil-

lion Ritz-Carlton – The Muscat Reserve, the 209-room Kempinski, The Wave, Muscat, and the high-end mixed-use $840 million Saraya Bandar Jissah Resort, which will feature two hotels and be managed by the Jumeirah Group.

Other properties under contract cover the 3- to 5-star segment and include the 320key JW Marriott Hotel Muscat Convention Center, the 88-key Coral Muscat Hotel & Apartments, the 150-room Premier Inn Muscat Al Qurum, the Radisson Blu Hotel & Resort Sohar and another Starwood branded property - Aloft.

By the end of 2015, Oman will offer more than 20,000 hotel rooms.

However, in the short term, this has come at a price. Following two years of strong growth from 2012 to 2013 where guest demand exceeded hotel supply, the influx of inventory, particularly in Muscat, started to put downward pressure on occupancies, rates and revenues at the end of 2014 onwards.

STR Global data says a 12% growth in hotel room supply in 2014, with the upward trend continuing in 2015, coupled with the June timing of Ramadan and the impact of conflicts in neighbouring Yemen on market sentiment, has led to the Oman hotel industry’s softened performance year to date.

Destination Focus

Millennium & Copthorne’s high hopes The longer-term outlook for Oman’s hospitality industry is positive however, according to Naeem Darkazally, vice president, sales and marketing, Millennium & Copthorne, Middle East and Africa, which has big plans for the Sultanate.

The company, which will double its MEA portfolio from 23 hotels to 50 within the next three years, already operates two properties in Oman - Millennium Resort Mussanah and Millennium Executive Apartments Muscat – and will roll out four more by 2017. They are the 328-key Grand Millennium Hotel Muscat, Oman (Q4, 2015); the 164-key Copthorne Hotel, Muscat; the 302-key Studio M, Muscat; and the 286-key Agarwood in Salalah, which will mark the global debut of this eco-lifestyle brand.

“Strong RevPAR growth in Muscat of around 8% is expected from 2016 due to the Oman government’s focus on developing the tourism sector,” says Darkazally.

“As part of its 2020 Vision Plan, the sultanate is preparing to welcome 12 million visitors, which is a substantial increase and we are keen to be part of this. “Government and private sector investment, including the $6.1 billion development of enhanced airport facilities and a new convention centre, are all driving the tourism industry.”

Darkazally says Millennium & Copthorne MEA has identified opportunities to develop “a range of hotel services” to cater to business and leisure travellers alike.

“For example, Millennium Executive Apartments Muscat, which opened in March 2015, addresses the lack of quality, flexible serviced apartment accommodation for medium- to long-stay business travellers, as well as GCC nationals for whom flexible serviced apartment-style living is the ideal solution to family travel,” he says.

The firm’s Studio M property in Muscat will fill the gap for quality budget accommodation in Oman’s capital, Darkazally continues.

“Meanwhile, Agarwood is an intelligent eco-lifestyle concept that has been designed especially for the region and will appeal to the traveller with a social conscience looking for the type of cultural experience that can be found in Oman,” he says. “It is a hotel concept that we believe will address the needs and expectations of Omani, GCC and international travellers and its eco-friendly attributes are aligned with the Oman Ministry of Tourism’s vision to preserve the country’s cultural integrity and protect the environment.”

Darkazally says there “extensive opportunities” to increase awareness of what Oman can offer for families, couples and the MICE market.

“Travellers from Saudia Arabia are a key priority for Oman’s Ministry of Tourism, with a strategic plan in place to attract more visitors from the kingdom so we will be looking to capitalising on this,” he reveals.

“There are also opportunities to attract more visitors from European markets, with traffic from France, Germany and the Netherlands already starting to increase. Additionally, with non-stop Oman Air flight routes from Kuala Lumpar we hope to attract more of the Malaysian market.”

Desintation focus

MUSCAT

Muscat International Airport: Phase one of the airport’s expansion will boost capacity to 12 million passengers annually, increasing four-fold to 48 million when phase three is completed. Enhancements include a new $1.8 billion passenger terminal complex and a second runway capable of handling the A380.

Oman Convention & Exhibition Centre (OCEC): Due to open in late 2016, the OCEC’s highlights include two tiered-seat auditoria seating 3,200 and 450 respectively plus 22,000 square metres of column-free exhibition space over five halls.

There will be 1,000 hotel rooms tool. It’s estimated contribution to Oman’s GDP by 2030 is $623 million (Booz & Co.) The Wave Muscat: Four hotels and a retail development are currently under development.

Jebel Sifah: This 6.2 million-square-metre development will include an 18-hole PGA golf course, 84-berth marina and marina town, six five-star hotels and a marina boutique hotel.

City Walk Muscat: Located in the capital’s CBD, this development will feature 5-star hotels, retail outlets, cafes and restaurants.

Majarat Oman: Oman’s biggest indoor theme park, located at Al Sawadi Beach Resort, will be completed by 2017. Built to the tune of $120 million it will cater to up to 3,000 visitors daily.

SOHAR

Sohar Airport: Flights commenced last year but the passenger terminal is still under construction. It will be able to accommodate half a million passengers annually when completed.

SALALAH

New Salalah International Airport: The new terminal opened on June 15 and the airport already has capacity for one million passengers annually. The on-going phased development project, being executed over three stages, will ramp up annual capacity to two, four and six million passengers respectively.

Salalah Beach: A new development covering 15.6 million square metres that will offer two 18-hole PGA golf courses, a 200-berth marina and marina town, five 5-star hotels and smaller boutique properties.

As Sodah Island: This eco-friendly resort by Muriya will include the upscale boutique property Maisons Cheval Blanc with 32 chalets. It will be operated by the LVHM Hotel Management, an entity of the Moët Hennessy Louis Vuitton (LVMH) group.

2015 SNAPSHOT

• New hotels from brands including Kempinski, Four Seasons, Centara Hotels & Resorts, Shaza, InterContinental Hotels Group (IHG) and The W; • 20,000 hotel rooms planned for Oman by the end of the year;

34

HOTEL NEWS ME October 2015

• New projects due to open this year include Avenues Mall, the National Museum of Oman, the Mall of Oman, Saraya Bandar Jissah, Panorama Mall and Palm Mall.

(Source: Oman Ministry of Tourism) • 1.14 million tourism arrivals are forecast, up 3% on 2014.

Tourism receipts are set to hit the US$2.24 billion mark, up 5% year on year.

2023

Oman is targeting 3.2 million tourism arrivals Airport arrivals Almost nine million passengers passed through Muscat International in 2014, up 6% on the 8.5 million reported in 2013.

Source: Oman Ministry of Tourism and Oman Airports Management Company (OAMC)

HOTEL DATA

Currency: Omani Riyals (OMR) Year to date, Jan-June 2015 Occupancy: 59%, down 4% YoY ADR: OMR 76.4, down 9.7% YoY RevPAR: OMR 45.05, down 13.3% YoY

Best month

February: Occupancy hit 70.6% but still down 7% compared to February 2014; ADR hit OMR 84.5, down 6.8% year on year; RevPAR slumped 13.3% YoY to OMR 59.63.

Worst month

June: Occupancy slumped to 36.5%, down 10.7% year on year, with Ramadan falling at the end of the month impacting demand. ADR declined 11.5% YoY to OMR 58.5 and brought down RevPAR to just OMR 21.33, (a 21% decline on June 2014 figures).

Factors to consider

• 2012 and 2013 were growth years for Oman’s hotel industry.

2014 ended flat with the Sultanate witnessing occupancy declines; • Supply growth has been strong over the past two years, hitting 12% in 2014; • Oman is top heavy, dominated by luxury and upscale properties; • Ramadan started in June; • Regional unrest and the war in neighbouring Yemen have impacted market sentiment.

Source: STR Global

Event review

The Big Food & Beverage Forum 2015 Catering News ME hosted its inaugural Big Food & Beverage Forum at the Ritz Carlton, JBR, here we take a look at the rolling highlights from the event

H

otel News ME’s sister publication, Catering News Middle East hosted its first Big Food & Beverage Forum at the Ritz-Carlton JBR on 15th September, 2015 with some of the region’s top chefs, F&B managers, directors, procurement managers and experts from the tourism and hospitality sector from across the emirates in attendance for the half day conference.

The conference was also supported by the Department of Tourism and Commerce Marketing (DTCM) with Debra Greenwood, director of Dubai Food Festival in attendance as the keynote speaker who addressed over 160 delegates.

Greenwood focused on the importance of Dubai’s F&B scene in the international marketing of the emirate to tourists; she called on all Dubai’s 6,700 F&B establishments to join in the marketing campaign. With specific focus on social media, she said: “People who are yet to visit Dubai are unaware of the world class cuisine on offer. Our role as a tourism authority is to increase awareness, through social media, international journalists and word of mouth.”

While Bobby Thulasi, Dubai Municipality food safety specialist introduced the new food hygiene rules that will be implemented to

36

HOTEL NEWS ME October 2015

establish an “effective foodborne disease surveillance” investigation system within the next 12 months.

Bobby said the system would become an integral tool in tracing the source of contamination and disease and would help in preventing outbreaks.

The event which was moderated by Stephen Marney, broadcaster, presenter and journalist, comprised of presentations, prime networking opportunities, open Q&A sessions, and lively panel discussions on a varied range of topics, including the hugely popular subjects of ingredient sourcing and tackling obesity.

A staggering 30 industry leaders spoke throughout the conference, including Nils El Accad, founder of Organic Foods and Café; Markus Roeder, Marriott International and The Ritz-Carlton Hotel Company, Senior Director of Operations, Middle East and Africa; Dr. Graham Simpson, chief medical officer and founder of Intelligent Health; Naim Maadad, CEO of Gates Hospitality; Farah George, F&B general manager at Al Khayyat Investments; and Salem Khalifa Bin Dasmal, founder of Silver Spoon Investments.

Interest remained high throughout the day, which culminating with a much welcomed malt masterclass, presented by African and Eastern.

The need for joint promotional efforts Out of Dubai’s total count of F&B establishments, 1,400 are still not utilising the marketing tools at their fingertips, which were the figures quoted

by Debra Greenwood, director of the Dubai Food Festival, DTCM, during her keynote address at The Big Food & Beverage Forum.

Focusing on the importance of Dubai’s F&B scene in the international marketing of the emirate to tourists, Greenwood asked Dubai’s 6,700 F&B establishments to join the marketing campaign.

With a special focus on social media, she also explained: “People who are yet to visit Dubai are unaware of the world class cuisine on offer. Our role as a tourism authority is to increase awareness, through social media, international journalists and word of mouth.”

While Dubai ranks ahead of destinations such as Istanbul, the UK and France, currently, according to data gathered by DTCM, only 5,300 of Dubai’s total 6,700 F&B establishments are visible across various social media platforms.

Project Canvas Today’s Generation Y demographic prefers to spend on food and beverages than consumer electronics, apparel, footwear, beauty, cosmetics and accessories.

Speaking at The Big Food &Beverage Forum, Markus Roeder, Marriott International and the Ritz-Carlton Hotel Company, senior director of operations, Middle East and Africa, presented at the Forum the group’s ‘Project Canvas’ initiative, which is designed to bring unutilised hotel space in line with Gen Y requirements, by supporting entrepreneurs in the F&B industry to launch their own concepts.

According to Roeder, by 2018 Gen Y will have outstripped boomers and by 2020 more than half of all travellers will be Gen Y. “We have 4,300 hotels and the issue is how we get them all in the right direction in terms of what the latest generation expect from F&B,” he added.

Food Hygiene Dubai Municipality food safety specialist, Bobby Thulasi spoke at the Big Food & Beverage Forum, he explained that Dubai would establish an “effective foodborne disease surveillance” investigation system within the next 12 months, Thulasi also added that the system would become an integral tool in tracing the source of contamination and disease and would help in preventing outbreaks.

While such measures cannot guarantee the complete safety of all foods, they will greatly eliminate the cases of food related illnesses.

As part of the measures, from January 2016, kitchens must be designed and laid out in accordance with new guidelines. In addition, a card system will be used to identify issues ranging from critical (red) to caution (yellow) and acceptable (green). Those establishments with no violations will receive a “name and fame” recognition and for all suppliers it will be mandatory to display green cards and clients will have a right to ask the reason behind a supplier having a yellow or red card.

Take 10

Saudi on the Rise

Rolf Lippuner, general manager, Four Seasons Hotel, Riyadh lists why Saudi Arabia’s hospitality inventory is on the rise and it’s not just down to religious tourism

H

aving worked his way up the career ladder to become the newly appointed general manager of the Four Seasons Hotel, Riyadh, Rolf Lippuner has been with the hotel chain since 2008.

With a Bachelor of Science in Business Administration from the University of Kwazulu Natal in South Africa, Lippuner began his journey with Four Seasons as director of housekeeping at the former Four Seasons Resort Aviara in Carlsbad, California.

Placing him in good stead for his new role, over the next seven years Lippuner advanced to become director of residences at Four Seasons Resort Nevis, then to director of rooms and finally hotel manager at Four Seasons Hotel Washington, DC before joining Four Seasons Hotel Riyadh. Here Lippuner discusses the ten pressing factors as to why the Kingdom is fast becoming direct competition for other regions in the Middle East.

1 Growing Economy

On account of the current economic stability and growth in the Kingdom, the potential of the business travel segment continues to offer an incredibly promising opportunity in Saudi Arabia. Saudi Arabia has been making bold movements in terms of development, which has led to a boost in economic activity, attracting investors and professionals in large numbers. This has naturally increased the demand for quality hotels and room rates have also achieved an increase of 8.9% to SAR968.73 for year-end, which resulted in a RevPAR increase of 9.9%. Jeddah has been able to achieve rate increases consecutively over the past 32 months, with the highest ADR achieved for the city since 2000. Jeddah also continues to increase the amount of rooms under construction; with the most recent report showing over 2,000 rooms in

40

HOTEL NEWS ME October 2015

regions of Saudi Arabia travel to Riyadh for long weekends or holidays.

3 Luxury Travel

Luxury travel is making a major comeback as consumers continue to put a greater emphasis on experiences over tangible goods. Today’s travellers are looking for a variety of experiences whether a blissful spa visit or a one-of-akind gastronomical experience. This segment of today’s luxury travellers are looking for a more intimate exploration of a destination’s culture and people. Regardless of the destination it has become increasingly apparent that it’s the experience that matters the most and that people are willing to pay for memories that will last a lifetime.

4 Tradition Rolf Lippuner, general manager, Four Seasons Hotel, Riyadh

the pipeline (2,728) and we at Four Seasons Hotel Riyadh cater to the stringent quality and standards expected by international travelers and expats heading to the Kingdom for work and pleasure.

2 Domestic Tourism

Lately we have noticed a strong trend in Saudi Arabia in terms of a growing domestic tourism. The Saudi government has been taking every possible step to nurture this new target market. The intention behind Saudi Arabia’s recent growth in domestic tourism is attributed to the government’s efforts to encourage local citizens to discover their own country which helps grow the domestic tourism economy as opposed to what used to be a steady outflow of tourist riyals as Saudis mainly travelled abroad for their vacations.

We are now seeing more locals from different

Saudi Arabia is a unique market where businesses have to be sensitive to customs and traditions; I would say that with a great understanding of such traditions, hotels can create better marketing opportunities in this market just like we did at Four Seasons Hotel Riyadh with our women-only floor “The Pearl” which has proved to be a great success since its opening. Looking at the holy cities of Makkah and Medina on a 2014 year-end basis, they achieved RevPAR increases of +4.3% and +8.6% respectively. Medina also reported a significantly higher year-end occupancy growth (+9.8%) compared to Makkah's +5.8%.

5 Family Market

Another growing trend in the Kingdom is multi-generational family travel, where three generations of the same family travel together and stay in a hotel together. High-end brands, elegant restaurants, and luxurious shopping centres are the main attractions being sought out by local travellers. The government is also focusing on developing the country’s cultural

tourism, to encourage local travelers to explore the rich heritage of the Kingdom.

Tourism 6 Leisure The Saudi Commission for Tourism and Antiquities is committed to enhancing and improving tourism services in the country by capitalising on both existing and new business and leisure opportunities with some planned or under-development projects such as museums, sports stadiums, theme parks and convention centers, all of which cater to the family market. In addition, the unique and diverse heritage of archeological sites that the country already possesses also support the Kingdom’s ambitions of becoming a destination for touristic and family travel.

7 Diversification Efforts

Infrastructure projects have received a significant boost from the government as a means of placating growing demand in the country.

With year-on-year growth of about 16% in the total value of infrastructure projects, Saudi Arabia has become the GCC region’s fastestgrowing market. $55 billion worth of contracts were awarded in the kingdom in 2014, which are directed towards civil infrastructure such as transportation, water, power and housing. The Saudi Arabian General Investment Authority (SAGIA) recently announced its plans to open offices in countries such as China, the United Kingdom, the United States and Germany in order to attract more investment in infrastructure projects.

8 Competition We foresee a huge increase in inventory in

The Four Seasons hotel, Riyadh

the city in terms of hotel rooms, especially from global brands, possibly amounting to a 30%-40% rise over the next three years. So it’s no secret that there is more competition now than ever in the luxury hospitality market and we believe that the only sustainable differentiator is one’s ability to customise the guest experience, to truly understand their needs and to deliver a memorable experience at all levels. Our goal is to be the first and only choice for GCC travelers at the top end of the luxury hospitality scale and we expect to accomplish this by ensuring that we not only anticipate the needs of our guests but also develop programs and services to consistently exceed their expectations.

9 Authentic Experiences

More and more travellers, who visit Saudi Arabia primarily for business, are looking for elements of authenticity and individualisation; looking for ways to immerse themselves in the local culture while conducting business. Saudi Arabia is a treasure trove of unusual things to do, a destination where tradition blends seamlessly with a modern city dynamic, promising unique cultural experiences for these travellers.

Tourism 10 Religious Saudi Arabia is currently implementing the Extended Umrah Tourism Program, allowing

foreign nationals travelling to the country for the Islamic pilgrimage to stay for a longer period by converting their Umrah visa to a 30-day tourist visa following their pilgrimage.

Since Saudi Arabia does not currently issue tourist visas to visitors from any country, the programme will be one way for foreign visitors to experience the tourism offering of the Kingdom and will be crucial to boosting inbound leisure tourism. Cities with welldeveloped airlift to international, regional and domestic destinations will benefit from their position as gateways to the rest of Saudi Arabia for those tourists looking to further explore the Kingdom through this scheme.

October 2015 HOTEL NEWS ME

41

Design Trends

Designing destinations Since the conceptualisation of Al Marjan Island, it has been tipped to become Ras Al Khaimah’s landmark, multi-property resort, with 8,000 operating keys, 23km of beachfront and 12,000 apartments. Melanie Mingas speaks to architect Abdullah Rashed Al Abdooli, managing director of AMI Company to discover more about developing destinations

N

ot since Dubai’s The Palm Jumeirah has an offshore tourism destination captured the attention of the GCC’s tourism market in the way Al Marjan Island has.

A landmark in its own right since the opening of Rixos Bab Al Bahar in Q1 2014, Al Marjan Island has become the jewel in Ras Al Khamaih’s crown and will soon also become the backbone in the Emirate’s tourism strategy.

First announced in 2013, the four island enclave is today home to hotels operated by Rixos, Hilton, Accor, and developers AMI, with a further property by Bin Majid Hotels and Resorts, due early next year.

Literally translating as “coral” the Al Marjan project extends 4.5km into the Arabian Gulf, the entire plot covers an area of 2.7million sqm, with a number of other projects currently under design review. Each of the four islands – named Breeze, Treasure, Dream and View – has its own characteristics, and the coral shape maximises the vista.

Architect Abdullah Rashed Al Abdooli, who is also managing director of developers AMI Company, explains: “The coral shape gives the investors and visitors a fantastic waterfront view from the moment you enter the gate. It’s totally different from other waterfront developments. That’s the unique part of Al Marjan; the design is more friendly and sustainable and innovative and each attraction on those islands has its own characteristics.

He adds: “Whenever you want to build you have to think in a new direction and add value and complement. You have to ask: what can I add to the offer? That’s why we tried different projects on the waterfront. Although 42

HOTEL NEWS ME October 2015

it is risky you have to build something unique and build it carefully.”

An architect by profession, Al Abdooli has stipulated in the masterplan that all developments on the island will be limited to seven to 10 storeys, to avoid feelings of overcrowding and encourage people to embrace outdoor activities.

He says: “The main purpose here is to attract people. Not just people in RAK, but people who will visit for the weekend, foreign travellers, business people, investors. That is why we call it ‘your favourite destination’.”

Al Abdooli is the final quality control check after the technical review of proposed projects has been completed, who is empowered to check plans against their original design and assess how a design can be adapted, if and when necessary, to investor demand, while also respecting the overall vision of the development.

“Our investors want to make revenue and we have to support that.”

The island In addition to the existing stock and projects due to open imminently (see box), there are further projects currently under design review and discussions with investors, who have purchased off plan, ongoing.

Taken in its entirety, the project is a study of regional hotel design trends and encompasses the needs of families, couples and groups in a way few other master-planned tourism communities manage to integrate.

“The evolution in hotel design is moving faster and faster and the user right now is looking towards quality and size, so those are the main focus points,” observes Al Abdooli.

“Rixos is popular because of the room size and that is important in terms of attracting families. It’s what you can do to add value to your vicinity, as well as the quality of the finishings and the different orientations you can offer. These are the factors improving and evolving hotel design; architectural elements and soft furnishings.”

Design Trends

The Al Marjan Inventory • A 655-rooms Rixos Bab Al Bahr Resort opened its doors on the man-made Marjan Island of Ras Al Khaimah in Q1 2014.

• The 346-rooms Ras Al Khaimah Waldorf Astoria opened in Q3 2013, marking the entry of the luxury Hilton Worldwide brand to the UAE. • The 265-rooms Al Hamra Fort Hotel & Beach Resort re-opened in Q4 2013 as a Hilton Hotels & Resorts property.

• The 485- key DoubleTree by Hilton Resort, Marjan Island is opened in Q4 2014.

• The 265-rooms Santorini Hotel by Bin Majid Hotels scheduled to open in Q4 2014 on the Al Marjan Islands.

• The 301-rooms Marjan Island Resort & Spa opened in Q1 2014 on the Al Marjan Islands.

The bigger picture

Another important element is the focus placed on the surrounding environment.

While the long summer months have left many unable to recall of the charm of the great outdoors, since the appointment of CEO of the emirate’s Tourist Development Authority (TDA), Steven Rice, significant focus has been placed on posi-

tioning RAK as a place to do, rather than eat or observe, as the pattern has emerged in other emirates.

Working with this vision, not only are the low rise buildings intended to ensure nature is visible – and therefore accessible – they are circled by promenades, family friendly facilities and watersports.

The project isn’t just another development in an ever changing area, but an integral part of the landscape and overall vision of the emirate’s government, which has invested $500m into tourism development projects to date.

In appointing Steven Rice as CEO of the TDA in December 2013, the government delegated responsibility for the emirate’s reputation and popularity to the organisation and is starting to reap the benefits. Rice is responsible for an ambitious rise in GDP tourism receipts from 5% to 9% and establishing the emirate globally as an affordable luxury and outdoor adventure destination.

Speaking ahead of his first ATM in 2014, he said: “Ras Al Khaimah is going from strength to strength as a tourism destination. We are in a fantastic position to attract investment which capitalises on RAK’s accessibility to Dubai International Airport, its natural attractions of a moderate climate, rugged terrains and mountains, clean beaches and archaeological sites, coastal areas and desert, to build the emirate’s tourism sector.”

Growth will not keep up with the pace of development seen elsewhere in key GCC destinations and RAK’s pipeline will only increase as demand does – ensuring strong performance results across the key metrics for all stakeholders.

That doesn’t mean results to date haven’t been strong, with a 50% increase in tourists in 2014 and an estimated growth in hotel revenue of 35 – 40% YoY, raising an additional $384m in revenues in 2014.

As these results increase and investor appetite also grows, the role of Al Marjan Island moving forwards will most certainly be an important one.

October 2015 HOTEL NEWS ME

43

Housekeeping

Housekeeping Networking going Global Chairperson of the UAE Professional Housekeeper’s Group, Tatjana Ahmed, writes about her recent collaborations with Housekeeping Associations in London and Mumbai and the impact of good housekeeping on good hospitality Tatjana with delegates at the London Housekeeper's event

T

he hospitality and travel industry could not have become what it is today without the extremely high standards and versatility of hotel accommodation it has to offer globally. Behind it, the executive housekeepers who are responsible to ensure that these accommodations meet and exceed the uncompromised expectations of today’s travellers.

When we talk about the global traveller, please do not forget that housekeeping plays an integral part in making this traveller feel at home; in any part of the globe.

The UAE Professional Housekeepers Group 44

HOTEL NEWS ME October 2015

meets on a regular basis to network, share best practices and to keep updated about latest products and trends in the cleaning industry.

But so far there have not been many opportunities to share our perspective with executive housekeepers from around the world. Therefore I was fortunate enough to be invited to attend and present my views on trending subjects in the world of housekeeping in two different places during last summer.

The first meeting I attended was the India Professional Housekeepers Association in Mumbai in June. While I was sharing my views

“the housekeeping department is going through many changes as we embrace new technologies and practices to ensure we keep pace with the demands of providing clean and well maintained guest rooms and facilities to our customers” on “cleaning for health” and “what’s trending in housekeeping” I was part of two panel discussions in which we discussed “how to meet the demands of the connected customer” and “how to manage your people.”

The Indian Housekeepers Association hosted a full day event, sponsored by H&FS India, the country's foremost hospitality media. The agenda included various presentations from suppliers and vendors, as well as the two panel discussions. The organisers were able to bring together a small group of GMs who stood answer to their housekeepers on how they can be developed further. Before the evening concluded with networking and cocktails an image consultant and makeup artist had advised the audience on how to look your best.

The UK Housekeepers on the contrary, did

Housekeeping

Tatjana Ahmed at the National Housekeeper's Convention in India

not have so much time on their hands and the meeting was held in the early evening. Networking seems to be key in the city of London and I was impressed with the attendance on that night. I have to give the venue a mention: Holborn Bars, an inspiring central London venue which was built towards the end of the 19th century. The London Housekeepers shared their views during a panel discussion on green initiatives taken in their properties and what else could be done to become more sustainable.

The London Housekeepers were sponsored by Mitre Linens who are also supplier to the Royal Household as well as Protect-A-Bed, the leading manufacturer for mattress and pillow encasing.

All in all to sum it up, we share many challenges of the same nature. And therefore it is imperative for us to meet and share our best practices on how to overcome these challenges.

Like any other department in the hotel, the housekeeping department is going through many changes as we embrace new technologies

and practices to ensure we keep pace with the demands of providing clean and well maintained guest rooms and facilities to our customers.

I’m extremely humbled that I have had the opportunity to network with the Housekeepers Associations in Mumbai and London and to share with them the message of the incredible value we bring to the hospitality industry.

I hope the opportunities will increase to work with various Housekeeping Associations on a more global platform in the future.

October 2015 HOTEL NEWS ME

45

Meet the expert

From wireless to TripAdvisor: How technology has transformed hospitality

I

magine yourself on a business trip, winding down in a hotel room. You turn on your laptop, tablet or smartphone to catch-up on your emails, contact your family or watch the latest episode of your favourite TV show. This is all very normal today, yet at the turn of the 21st century, this behaviour would have been highly unusual. The truth is that these habits have only emerged fairly recently, in tandem with the proliferation of a new technology. I am referring to, of course, Internet connectivity.

Now picture this: Same situation, yet you have to pay for your WiFi. For any frequent traveller, the thought of having to pay for a service that you can receive at the purchase of a small coffee in your local cafĂŠ would elicit feelings of deep indignation. Pay for wireless at a hotel?

Outrageous! And yet, complimentary wireless in hotels is a relatively new phenomenon. In fact, when we introduced free WiFi in our Radisson properties in 2005, we were the first international hotel group to offer this service. Since then, guests, no matter where the location, expect to have access to the Internet as a basic utility, like water and electricity.

The Internet is the best and most obvious example of a technology that has transformed the way that people live, work and play. A Cisco survey of American consumers found that up to 70% of mobile users consume WiFi via a public hotspot, with 57% using this service at least once a week. According to the survey, consumers log into public wireless systems everywhere, from trains, restaurants and, of course, hotels and we can expect the adoption of similar behaviours here in the Middle East. As per research from the International Telecommunications Union, the rate of mobile broadband subscriptions in the Arab world is expected to rise by 12% in 2015.

For hoteliers, the sheer ubiquity of WiFi makes it an integral part of services. From hardware to network management, to hiring IT

46

HOTEL NEWS ME October 2015

Mark Willis, area vice president, Middle East and Turkey, Rezidor Hotel Group discusses how the Internet has altered consumer behavior staff, to making sure bandwidth is elastic enough to meet guest requirements while still being cost efficient, providing connectivity to guests is a sizable investment.

Considering that we are living in an age where hotels have progressed from a pit stop in a traveller’s diary, to an essential part of customer experience, ensuring that we evolve our behavior alongside our customers is essential. The worldwide web and by extension WiFi, has transformed the way people travel.

The proliferation of travel sites is one example of how the Internet has altered consumer behaviour. A 2014 white paper by the United Nations World Tourism Organisation (UNWTO) found that people are increasingly dependent on travel-

related content prior to making travel plans. And the statistics supporting this fact are eye-opening: 60 days before travelling, consumers visit an average 13.6 unique websites, with an average visit of 2.9 visits to each website. That is 39.9 travel-related visits per customer. A quick visit to websites like TripAdvisor, Booking.com will show that these portals offer a staggering amount of information on everything from hotels, tour guides, flights, to restaurants. And through the reviews section, these websites have included a crucial human aspect of travel.

The growing popularity and influence of guest reviews has the potential of being a market disruptor, whereby the hotel star classification system is no longer a major draw for travellers.

However, with every challenge comes an opportunity. Hoteliers should look at these review systems as a marker of their performance. In fact, the UNWTO has encouraged the integration of reviews into hotel rating systems. If implemented, this new classification will result in the democratisation of a quality system that goes beyond a checklist of amenities in a property to include the quality aspect of service.

Rather than looking to technology as a challenge that results in additional expenditure, hoteliers should look at how solutions can turn these obstacles into opportunities. Currently, aspects of Big Data have yet to make a mark on our sector; however, there is great potential to improve how hotels provide services. For hotel groups, Big Data will only be transformative when all the minute details of a guest are hooked up to a cloud, thereby enabling access from any hotel around the globe. The result? Better insights on a guest, as the hotel will have intelligence on their likes, dislikes and preferences, no matter if they are checking into a hotel in Dubai, or Singapore, or London.

For a service- based sector, a future where we can have this level of understanding of people will help us to continue to flourish.

The case for part-time workers to enter the fray Piers Burton, executive director at boutique executive search firm Eagles Spearing Consulting, ponders how access to part-time employment may help fill some of the 350,000 line staff vacancies between 2016 and 2020

B

NC Publishing recently hosted Catering News’ ‘The Big Food & Beverage Forum’ discussing all things restaurant and food related. This included a panel debate regarding the concerns arising from the lack of available talent to manage and operate the plethora of hotels and restaurants, which are scheduled to open in the region over the coming five years.

In July’s column I estimated that during the crowded 2016 to 2020 development period, the region will require c.350,000 new line staff from restaurant and bar staff, housekeeping, facilities, front desk, security and so forth to service the new hotel properties alone, without even accounting for the huge number of independent restaurants that are also in the pipeline.

This will more or less double to c.700,000 staff when we factor in the attrition that will naturally occur from the existing properties and those coming on line. Put into context, that’s more staff than are currently employed across the whole hotel industry in the GCC. A serious problem of demand vs. supply of skilled staff is looming.

So, other than all the usual strategies we employ to recruit and retain the best full-time staff for our businesses, something needs to be done by the authorities

to alleviate this problem. One practice that could be applied is that of part-time workers being introduced to the workforce, enabling employers to manage their peak periods of business with staff who are engaged on a casual basis and paid by the hour. In markets where income tax isn’t levied on individuals, what could be the harm of that?

In most developed markets the hospitality industry, in particular, is serviced by a deep pool of part time workers, often students or people taking on second jobs to supplement their incomes, allowing employers to retain a crew of both permanent and temporary staff that can provide excellent service as the business requires. Under the existing visa and labour card system applied across the GCC, this form of employment isn’t permitted which is detrimental to efficient business management.

I appreciate that this is a bigger picture debate, with federal regulations needing to be altered, but with events such as Expo 2020 Dubai on the horizon every effort needs to be made to facilitate changes that will enable hospitality businesses to operate at their best, so providing visitors (and residents) with a level of service that defines international standards.

Benefits of the Eco burner chafo

Marketed and Distributed by: Innovative General Trading Tel: +971 4 8135963 Mobile: +971 56 6233153 + 971 50 2957747 Email: info@innovativegt.com

Meet the expert

A bite at F&B The editor of Catering News ME, Michael Gordon gets to grips with the conscious efforts hoteliers need to take in order to tackle obesity The hotel industry should be commended for taking the lead, with initiatives to tackle obesity and healthy eating. Both Radisson Blu Hotel, Dubai Deira Creek and Anantara Hotels & Resorts in Abu Dhabi have introduced healthy eating plans for their staff, and implemented competition amongst their staff in a challenge to shed the pounds.

As a nation, the statistics for our excess baggage are staggering. A study conducted by Forbes ranked the UAE number 18 on a list of the world’s fattest countries, estimating 68.3% of its citizens to be overweight; making this small country one of the top regions plagued with high obesity rates. Within the Middle East and North Africa (MENA) region, the obese account for: Kuwait 43%, Bahrain 31%, Kuwait 59% (Kuwaiti women 84%), Libya 57%, and the highest is Qatar 55%.

Dr. Graham Simpson, MD,Chief Medical Officer and Founder of Intelligent Health, is an expert in the field of nutrition. He commented: “This level of obesity is almost entirely attributable to diet. We eat a mainly Western diet out here, which is high in grains, sugars, and processed foods. But obesity is not the only concern.”

So hats off to Radisson and Anantara, but their efforts are a mere drop in the ocean.

Furthermore, these disciplines should not be confined to the hotel staff but offered out and suggested to guests too.

Only TI'ME Hotels has spoken out about its drive to promote healthier living, by introducing cooked from scratch meals using only locally sourced organic ingredients. This move rightly earned the hotel group the official ‘snail of approval’ from the Slow Food Dubai, becoming the first hotels in the Middle East to be recognised as pioneers of the 20-year old international movement.

To qualify for the award, the TI'ME Hotels culinary team had to create over 50 dishes from scratch, using only locally sourced ingredients. Bernard Fantoli, corporate director of F&B, TI'ME Hotels, said: “The guidelines implemented at our hotels include a commit48

HOTEL NEWS ME October 2015

ment to using 100% homemade products with no GMO, MSG or other artificial flavour enhancers; local sourcing of all ingredients/products up to a radius of 3,000 kilometres; and a focus on sourcing organic where possible.”

But while hotel operators are beginning to acknowledge the problem, it seems the food and beverage industry continues to swim in the opposite direction, with news this month of yet more burger, pizza and other similar quick service restaurants popping up across the UAE. Dubai alone now has over 40 international burger chains, aside from the myriad of independent outlets, all perpetuating the obesity crisis. So it’s high time the F&B industry picked up the baton from hoteliers and ran with it. We can only hope for a sea change in attitudes to healthy food before we all drown in a river of trans-fat.

“hats off to Radisson and Anantara, but their efforts are a mere drop in the ocean. Furthermore, these disciplines should not be confined to the hotel staff but offered out and suggested to guests too.”

Under the Patronage of H.H. Sheikh Mansour Bin Zayed Al Nahyan Deputy Prime Minister of the UAE, Minister of Presidential Affairs and Chairman of Abu Dhabi Food Control Authority

THE AUTHENTIC

BUSINESS CLASS EVENT FOR THE REGION’S

Strategic Partner

FOOD & BEVERAGE SECTOR

Images by:

www.stockfood.com

7 - 9 December 2015 Abu Dhabi National Exhibition Centre, UAE

www.sialme.com Platinum Sponsor

SIAL, a subsidiary of Comexposium Group

Retail Partner

Culinary Partners

Official Publications

Meet the expert

Launching a new concept into the market Naim Maadad, CEO, Gates Hospitality covers some of the top tips for a successful launch in the F&B industry As is in the case of any new venture being launched in the market, any food and beverage concept needs to be unique, offer great value for money, and needs to offer culinary innovation and creativity, a professional chef representing the brand and have a credible sponsor amongst many other vital components.

One of the key factors that needs the most consideration is the location of the new food & beverage outlet.

I say location lightly as there are many subfocal points which need to be addressed too. Some of these revolve around the suburb, so you have to ask yourself what is the likely footfall that the location will generate, meaning are there clients who are likely to be a captive crowd for example is it located inside a hotel, or a shopping mall?

If yes, then there is a great chance that guests staying in the hotel or shoppers at the mall are likely to recognise the brand and step in to try the cuisine during eating hours. This also begs the question of themes and target audiences, if you are targeting families, a business crowd or offering a fine-dining concept.

Another deciders revolve around flexibility.

Clients need to have the convenience of free, open parking that is readily accessible to them and things like valet parking will encourage diners to visit.

The neighbourhood is also extremely important; one needs to know if there are other facilities located in the area, what is the competition like?

What kind of clientele is most likely to combine a visit so as to save their time? Demographics of the client base you want to build upon are equally worth a thought.

At the start of any business venture there needs to be a thorough study of competitor brands.

One needs to clearly know the similar brands in the city that are competing or offering a similar cuisine that you are planning to bring through your brand. So the need to study is a top priority, and questions that you need to ask yourself include what their business model is. Once you know their strengths and weaknesses, you can get inspired from their pros and cons, make their minuses your key strengths, which will ultimately 50

HOTEL NEWS ME October 2015

“despite new technological advancements, good old fashioned word of mouth recommendations are the strongest, get one bad review, you could ruin your changes of a while office building avoiding your outlet” gibe you the competitive edge.

Put deep thought as to what the aspects that can be truly unique about your brand that none of your competitors can match.

That said, understanding your competitor’s needs to be a concurring theme throughout your marketing once the brand is launched. Keeping up to date with fresh new deals, concepts and ideas. Everyone loves a bargain in Dubai, so happy hours, buy one get one g=free meal initiatives will drive people into an outlet, and if the food is good, the service is good and they had an overall great experience they wont be expecting a deal next time, they will come back because they had an exceptional experience and be willing to pay the full price.

Never stop going back to the drawing board to refine the F&B concept you are trying to drive forward. It is so important to constantly re-evaluate pricing structures, the culinary and service offering, brand positioning, the key target audience, operating hours and new décor concepts.

Sales and marketing has to also be consistent and regular meetings with regards to service standards; social media messaging and positioning all need to be synergistically aligned in order to effectively portray one strong brand message.

Next, always have a clear policy on hiring and staff training, you need to have the right leadership in place from day one who fully understand and support the concept. Staff recognition is also extremely important in the early stages as the turnover in F&B is huge, so a start-up restaurant is always going to face more challenges in the early stages, so hours can be long and often unsociable.

Then comes the need to engage with the client base and make needed changes to find the perfect operational strategy, the power of social media. To strengthen any brand it is so important to have an online presence, you need to be active in updating your website, responding to positive and negative tweets, as there is a massive social media foodie following.

Lastly, on points for what not to do, the number one thing boils down to trust and customer loyalty, you can never ever compromise on this, because despite new technological advancements, good old fashioned word of mouth recommendations are the strongest, get one bad review, you could ruin your changes of a while office building avoiding your outlet.

Follow the local rules and regulations, take care of all the stakeholders of the brand, never let down the team that works for you and believes in you, and ensure there is no default on any commitments or financial transactions at any time.

Dubai is a land of endless opportunities and does welcome all types of business ventures with open arms. The support of the government and business friendly rules and regulations make it a true haven for new brands to thrive, evolve and succeed.

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.

For more info, please contact:

Hills Hospitality & Services DMCC Magy Khalil

M. +97155 5032366 T. +9714 3253130 www.hills-hospitality.com General Manager

Event review

SPATEC Middle East 2015 Spa and wellness buyers and suppliers gathered together in Dubai at The Westin Mina Seyahi Beach Resort & Marina to participate in prime networking and one-to-one meeting opportunities to discover the latest market trends and products on offer

T

his year’s edition of SPATEC Middle East 2015 brought together a diverse range of regional and international spa operators, directors of spa and wellness, spa managers, spa directors and general managers under one roof to meet and network with key worldwide and local spa, wellness and beauty suppliers all in attendance.

The second edition of SPATEC Middle East 2015, which was organised by QuestexMcLean events, and acts as the original meetings-based event for the spa, wellness and beauty industry saw 35 buyers and 37 supplier delegates from 22 different companies from 10 singular product categories attend this year’s three day meet up.

Stephen Pace-Bonello, event director, Questex-McLean Events explains how SPATEC has secured its place in the Middle East as a prime meet and greet event for industry specialists: “Questex-McLean Events are the original meetings-based events and have been organising events for various industries for 18 years. The SPATEC format has evolved to what it is today following several years of experience, including a decade of SPATEC events in Europe and the US.” And touching upon the differentiators of the event, he continues: “Feedback from participating buyers and suppliers has helped the organisers to fine-tune the details to influence changes and improvements. SPATEC buyers are all decision-making spa operators in the region, with existing operations or have upcoming new openings or refurbishment projects in the pipeline.”

“Suppliers attend knowing that the audience of buyers have been pre-qualified and all are senior decision makers. They know ahead of time who is attending and choose who they want to meet. Attendees are guaranteed a fixed number of meetings and get to spend 52

HOTEL NEWS ME October 2015

October 26 and 27 Fairmont The Palm, Dubai, UAE www.servicedapartmentsummitmea.com Twitter: @ServAptNews #SASMEA

The MEA region is rapidly becoming a global hotspot for the serviced apartment, branded residence and extended stay sectors. A recent Colliers International report said at least 10,000 additional serviced apartment units were needed to fulfill projected demand in Saudi Arabia, the UAE and Qatar.

Who should attend?

Serviced Apartment Summit MEA has been launched in response to demand from the industry for a dedicated forum for networking, education and sharing best practice.

          

Join your fellow industry professionals at the region's only b2b conference and exhibition for the serviced apartment, branded residence, aparthotel, corporate accommodation and short-term rental sectors.

For more information call +44 (0)20 8340 7989 or email info@servicedapartmentsummitmea.com Platinum Sponsors Sponsors

 Serviced apartment, branded residence and corporate housing operators  Serviced apartment, branded residence and corporate housing developers Extended stay hotel operators and developers Corporate and HNWI hospitality and real estate investors Bankers, private equity funds and other lenders Advisory and consultancy specialists Real estate brokers Real estate support services Corporate travel buyers Short-term rental companies Lawyers Travel management companies Suppliers / Service providers

Event review

quality, uninterrupted time with the buyers.

SPATEC is held in a luxurious, comfortable venue away from the daily pressures of the office.” Adds Pace-Bonello.

The format of the event began with a reception dinner, followed by an educational seminar the next morning which was delivered by Anni Hood, founder and CEO at Anni Hood, Wellness Business Consultancy, on the topic of shifting dynamics and response over function.

With two dedicated meeting days, during which buyers and suppliers met face-to-face for 20 minutes of uninterrupted quality time by pre-scheduled appointment to discuss business. Having been spread over the course of three days, SPATEC has been solely designed to maximise the attendee’s opportunity to network with their peers and potential clients.

“Suppliers relish the opportunity to showcase their range of products to some of the region’s most important and often elusive buyers. It is so valuable to spend quality time building a relationship with these industry VIPs” With competition rife in the spa and wellness industry, Pace-Bonello also explains why suppliers and buyers alike find the three-day event so valuable: “In terms of the numbers of spa, wellness and beauty facilities across the region it is truly impressive to see so many new outlets popping up. Operators strive to differentiate their offer in order to stand out above the rest. SPATEC provides operators with the opportunity to meet with a variety of suppliers under the same roof to learn about their newest brands and most innovative products. Suppliers relish the opportunity to showcase their range of products to some of the region’s most important and often elusive buyers. It is so valuable to spend quality time building a relationship with these industry VIPs.” The dates for next year’s SPATEC Middle East have been released and the three-day event is set to take place from 12-16 September 2016, with a venue yet to be confirmed.

54

HOTEL NEWS ME October 2015

SAVE THE DATE

PROCUREMENT CONFERENCE OCTOBER 19, 2015 GROSVENOR HOUSE, DUBAI

Free to attend for hotel Procurement Managers, Purchasing Managers, Finance Managers, Cost Controller, Revenue Managers, General Managers Sponsorship Opportunities charlotte@bncpublishing.net +971 56 130 7753

Sponsorship Opportunities dom@bncpublishing.net +971 50 559 7339

To Attend mark@bncpublishing.net

Speaking Opportunities melanie@bncpublishing.net

Market place

The supplier and buyer roundup of news, products and services

Slayer Models

Sugar free products on the rise

Slayer has introduced a new advanced espresso machine range, the Slayer Stock.

Handmade in the USA and distributed in the Middle East by Muddle ME. These Single, two and three group machines are assembled by hand alongside other Slayers.

The classic Slayer comes with jet-black body panels, silver X legs, and Peruvian Walnut handles and actuators. All in-stock models are also equipped with pre-brew timers for each grouphead and one hot water tap. muddle-me.com info@muddle-me.com.

With the UAE and Saudi Arabia claiming the biggest chunks of the region’s annual chocolate spend according to recently released Euromonitor data, a raft of health-conscious, sugar-free snack producers will line-up alongside traditional confectionary producers at Sweets & Snacks Middle East 2015, the MENA region’s leading platform for the international sweets, confectionery and snack industries.

In registering spends of $38 and $31 per capita, respectively, the UAE and Saudi Arabia far outstrip the $4 spend per capita average across the Middle East and Africa.

According to KPMG, regional demand continues to grow with confectionary sales across the GCC forecast to increase 20% this year, while the Saudi Arabia chocolate market alone is predicted to swell 43% in 2016.

Trixie LohMirmand, senior vice president, exhibitions and events management at Dubai World Trade Centre, which is due to host the ninth edition of Sweets and Snack Middle East from 27th to the 29th of October 2015, revealed more than 300 specialist exhibitors from both sides of the industry will vie for buyers’ attention at the show: “The global confectionary industry continues to experience tremendous growth, as reflected by this year’s largest-ever Sweets and Snacks Middle East standing at 25% larger than the 2014 edition,” explains LohMirmand.

“Consumption habits and spending power on luxury goods in the UAE and Saudi Arabia continue to provide leading international chocolate and confectionery producers with vast regional investment opportunities. As the MEA region’s only dedicated industry platform, Sweets & Snacks Middle East provides a tailored sourcing platform for leading buyers, retailers and distributors to explore hordes of diverse confectionary options, both traditional and sugar-free.”

GROHE introduces Rainshower System GROHE has introduced a unique GROHE Rainshower system featuring an innovative SmartControl push button technology. The spray pattern can be selected and started by pushing one of the buttons on the wall-mounted chassis whereas turning the button allows the user to personalise the water volume.

GROHE SmartControl takes the idea of comfortable showering to a new level with the newly designed push button that integrates both the ON-OFF function and the volume control. Starting the shower only requires pushing the button with the intuitive symbol for the head shower spray pattern or the hand spray. The knurled edges of the push buttons allow to adjust the flow volume accurately even with wet hands simply by rotating them to the left or right.

Additional features include a metal thermostat handle which allows comfortable presetting of the water temperature. It also features a SafeStop button which limits the temperature to a maximum of 38 degree Celsius; to go beyond this point, the user has to deliberately push the override button.

56

HOTEL NEWS ME October 2015

Marketplace

5

minutes with...

Sophay Young

Senior Project Design, SANIPEX Group

Nespresso launches new limited edition coffee Each year Nespresso creates a variety of limited edition coffees and this year Nespresso is set to launch ‘Tribute to Milano’ and ‘Tribute to Palermo’ two new limited edition ristrettos which pay hommage to the diversity and richness of Italian coffee. Both limited edition ristrettos can be enjoyed black but also blend perfectly with milk. The full intensity of Tribute to Milano in a Latte Macchiato also promised to offer you a creamier taste with caramel aromas or savour Tribute to Palermo in a cappuccino without sacrificing any of this blend’s full body and powerful character.

Michelin and GRIF form strategic partnership

Global Restaurant Investment Forum (GRIF) has struck up a new strategic partnership with the Michelin Group. This partnership firmly secures GRIF as a must-attend industry event for restaurateurs, investors and other industry stakeholders from across the world. It will enable both businesses to create and execute effective strategies to foster significant growth and development in the global F&B sector.

The announcement signals the beginning of one of the industry's highest-profile collaborations in recent years. With the knowledge sharing that this partnership creates, GRIF is poised to have a very positive effect on the global hospitality industry. The Michelin group will serve as an incubator for the next generation, as well as position them as a catalyst within the industry.

"The credibility and recognition associated with the Michelin group will assist in positioning GRIF as a must-attend industry forum. We will undoubtedly benefit from the years of experience and knowledge of Michelin in the hospitality industry. The Michelin team, in conjunction with the GRIF advisory board, will help shape the agenda for this forum moving forward,” said Jonathan Worsley, Chairman, Bench Events.

Can you tell us a little bit about the company and its history?

BAGNODESIGN, a member of the SANIPEX GROUP is a market-leading supplier of quality bathrooms, tiles and plumbing materials. Our SANIPEX Project division is the premier choice for industry professionals working on a variety of projects including landmark hotels, iconic buildings, major institutional facilities and residential developments.

What does your company offer that other suppliers do not?

With A&D centres in London, Leeds, Dubai and Hong Kong we are able to ensure that the vision created by architects and designers are translated into the best bathroom solutions possible in the finished project, irrespective of whether it is located in Europe, the Middle East, Africa or Asia.

In addition to being a distributor of leading boutique brands of brassware and sanitaryware, the in-house BAGNODESIGN and AQUAZONE brands are establishing themselves as arguably the most comprehensive range of quality bathroom fixtures and fittings available today. Our unrivalled supply chain capability gives customers what they want when they want it.

What is the most popular product that you supply to the industry and why?

Our relatively new Corsair range of wc’s and bidets are doing extremely well in projects at the moment. The reason for the success is because of the sustainable flush capabilities of this model paired with the aesthetically pleasing design and affordability.

Our AquaEco range of cisterns are also proving extremely popular with state-of-the-art technology and durability. To match our cisterns we offer a range of designer flusplates in different finishes.

What new products/announcements should we know about?

We are adding to our extensive range the new luxury, Italian designed and manufactured Teatro range of mixers and sanitaryware. The mixers will be available in stylish and individual finish options.

Adding to our affordable luxury collection you can now find our Savoia and X10 ranges of sanitaryware and mixers.

sanipexgroup.com October 2015 HOTEL NEWS ME

57

Marketplace

Pacojet 2

Fashionizer Uniforms

The new generation Pacojet 2 offers a clearer, brighter colour display with a touchscreen for easier operations. The new practicing functions expand application possibilities whilst simplifying the procedures. The overpressure mode with automatic depressurisation can be selected as necessary and the portioning set precisely for whole and even to tenths of portions.

Additionally, the Pacojet 2 can sense when a pacotising beaker is overfilled and in such cases a recovery process is started automatically, thus making it possible to process the entire contents of a fresh-frozen beaker without waste or need to thaw.

Other features include special programs designed for processing fresh foods, a new brushless motor that was engineered in Switzerland exclusively for Pacojet 2 and is practically wear-free and significantly quieter making it perfect for frequent users and for frontline cooking. Pacojet offers a special, extended 5-year warranty on this new motor.

Fashionizer is a refined leader in corporate fashion. Boasting an impressive international client list including: Aman Spa, Four Seasons Hotels and Resorts, Intercontinental Westminster and Six Senses Spa to name a few.

Offering a selection of quality ready to wear ranges including hospitality, business suits, restaurant uniforms and housekeeping uniforms alongside a separate division, Fashionizer Spa, offering organic spa uniforms with natural fibres and bespoke uniform solutions for projects with a minimum of 30 staff.

muddle-me.com info@muddle-me.com

58

HOTEL NEWS ME October 2015

fashionizer.com

EXECUTIVE SUMMIT

DUB

E EAST IS PROUD L D D I M TO S W

SENT PRE

HOTEL NE

SAVE THE DATE

M

E T 18 2 O 0 1 5 - C O N RA D H

L-

NOVE

BER

AI

Housekeeper's Bringing together housekeepers from across the region for a day of workshops, panel discussions and debate Giving delegates a prime opportunity to network and discuss the landscape of the ever changing hospitality industry Speaking Opportunities sophia@bncpublishing.net

Sponsorship Opportunities dom@bncpublishing.net

Sponsorship Opportunities charlotte@bncpublishing.net

To Attend mark@bncpublishing.net

Marketplace

5

minutes with...

Petvin Fernandes

Senior Vice President Middle East, Africa and Indian Ocean, INTEREL

Can you tell us a little bit about the company and its history?

Based in Dubai with R&D and manufacturing facilities in Italy, INTEREL is the fastest growing manufacturer of integrated room technologies and energy conservation systems in the luxury hospitality industry, with a footprint across Europe, the Middle East, Africa, Asia and America.

With its vast experience in hospitality industry INTEREL is an approved supplier with more than 15 of the world’s leading hospitality and leisure organisations.

INTEREL’s room technology features a wide variety of Italian design wall-mounted and tabletop guest panels that allow for a high level of customisation to suit individual hotel and brand standards. In addition, the room management system seamlessly integrates with third party RFID door locks, is enabled with TCP/IP communication at room level, and features cross platform mobility solutions with interfaces to all leading mobility hospitality providers.

What does your company offer that other suppliers do not?

We are the world’s fastest growing manufacturer of integrated room technologies in the luxury hospitality industry. Our bespoke and intuitive Guest Room Management System enhances guest experiences and supports the mobile strategies of our hospitality clients. The INTEREL online room management system was named ‘Best New Product’ at the coveted HI Connect® 2015 People’s Choice Awards.

Earlier this year our latest innovation, the ‘connectBsmart’

Bluetooth beacon network, was voted the most innovative technology in the hospitality industry at the Hospitality Technology Next Generation (HTNG) 2015 TechOvation Awards. Our ‘connectBsmart’ Bluetooth beacon technology enables brands and hoteliers, when deploying the INTEREL guest room management solution, to seamlessly install and efficiently manage a future-proof, smart Bluetooth beacon infrastructure throughout the property, which provides a turnkey platform for their mobile hospitality service strategies and guest experience visions.

What is the most popular product that you supply to the industry and why?

The most popular product we supply to hoteliers is our innovative energy management solution and unique guest room controls.

What new products and announcements should we know about?

INTEREL will be launching the world’s first IP-based water management system for the hospitality industry in the Middle East at the Hotel Show Dubai this September.

On average, an overnight guest staying in a luxury hotel consumes 300-1,400 liters of water. Our solution will deliver greener and more sustainable operations by building on the efforts of hoteliers who are focused on reducing their properties’ energy consumption and costs, by addressing hotel water consumption. Through INTEREL’s new water management solution, a 300-bed hotel will be able to save very significant amounts of water every year, without impacting the guests’ comfort and experience.

INTEREL launches IP-based water management system INTEREL introduced its latest technology solution to hoteliers in the region at this year's Hotel Show.

“For a number of years, hoteliers around the world have focused on reducing their properties’ energy consumption and costs to make their operations greener and more sustainable, and we see great results in this space. However, water consumption remains a huge challenge for hotels,” said Florian Gallini, Group CEO of INTEREL. On average, an overnight guest staying in a luxury hotel consumes 300-1,400 60

HOTEL NEWS ME October 2015

litres of water, depending on the usage profile and geographical area. Through INTEREL’s new online guest room water management solution, a hotel will be able to save substantial amounts of water every year, as well as enhance the guest’s comfort and experience. “This is an extensive and strategic product portfolio expansion

for INTEREL and we expect our water management system to have a strong impact on hotels’ sustainability programmes with the opportunity of significantly enhancing a property’s profitability,” he added. INTEREL’s new TCP/IP-based Water Management System allows guests to have instant control over the water flow and temperature in their room. This means they can select personal water preferences with the simple touch of a button, instead of struggling with adjusting unknown basin and shower faucets until they find their preferred temperature.

Marketplace

Canon displays innovations Canon showcased four product categories at The Hotel Show 2015: NVS and Projectors, LFP, Office and Laser.

Product highlights included the launch of the imageRUNNER ADVANCE C3320i*, with an ECO STAPLER FINISH, which is the first in the world (floor standing model); it is a compact and user-friendly, colour A3 multifunctional printer. In the Network Video Solutions (NVS) and Projectors segment, cutting-edge network cameras such as VB-M741LE, VBR11VE, VBH630VE and VB-H43* were on display.

The company also highlighted its Business “Gamechanger” campaign wherein it demonstrated how it is effectively adapting itself to provide new and advanced services and was also a Vision Conference Partner at the show.

During the conference, Shadi Bakhour, general manager for Canon Emirates, contributed to the panel discussion ‘A hotel viewpoint - sustainability for a better tomorrow?’

Canon was also a part of this year’s highlight, TecSec, a technology and security summit that educates hoteliers and restaurateurs on using cutting-edge automated practices to deliver a seamless guest experience.

Bakhour said: “At Canon, we recognize that the hospitality industry is fast-evolving, especially in the UAE. We believe that there is huge room for Canon to grow by providing a wide spectrum of services and solutions that can not only improve costs for hoteliers, but also make their industry more ecoconscious and secure."

ELEGANT, INNOVATIVE, CREATIVE & STYLISH BUFFETWARE TO COMPLEMENT EVERY OCCASION, PARTY & EVENT

Contact: Jufralo Trading LLC, Dubai, U.A.E.

Tel +971-4-2678380 Email: Jufralo@eim.ae

Last word

If I weren’t an hotelier I would be…

Room with a view This month’s room with a view goes to the panoramic cityscape views from The Banyan Tree, Bangkok In the bustling city of Bangkok, a sprawling metropolis with a genius for firing the mildest of temperaments into exhilaration sits The Banyan Tree Bangkok.

With the city a potpourri of food, entertainment, shopping and vivacity. The Banyan Tree Bangkok, a luxury hotel, offers a sanctuary for the senses with elegantly appointed rooms; classic service blended with native hospitality and integrated spa offerings. One of the tallest and most innovative spa hotels in the city, Banyan Tree Bangkok stands as an icon of urban tranquility.

“What I really wanted to do when I was younger was be around cars. I always had cars and mopeds, racing go-karts and fixing bikes, I love speed. Ultimately I can admit that I probably wouldn’t have been a successful racing driver but that is something I would have loved to have been.”

Rudi Jagersbacher, president, Middle East and Africa, Hilton Worldwide

NEXT ISSUE> We will be running a dedicated supplier focus on coffee, ranging from industry trends to suppliers, the latest coffee machine innovations and beans from around the globe available to the hospitality industry.

Additionally, there will also be a Hot Product focus on bathrooms.

To get involved in this editorial, please contact sophia@bncpublishing.net

BIN EID EXECUTIVE SEARCH & SELECTION (Specialised in 5* Hotel Sector) General Manager Director of Operations HR Director

Training Manager Director of F&B Bar Manager Executive Chef

Laundry Manager Revenue Manager Sales Manager

Corporate Director of Finance Complex Director of Engineering Director of Sales & Marketing Complex Executive Housekeeper

Bin Eid is highly specialized in Senior Level Search & Placement of Hotel/Hospitality Industry Professionals.

Our clients include prominent 5 star hotels (international chains), 4 star deluxe properties and other hospitality and leisure industry establishments in UAE and other gulf countries.

We are now in the process of filling in the above positions for our clients in the UAE, GCC and other countries CV may be forwarded by email to M.D. Warrier indicating the present/expected salary

BIN EID EXECUTIVE SEARCH Specialised in 5* Hotel Sector PO Box 5455 Sharjah, United Arab Emirates Email: mdwarrier@bineid.com Tel: +971 6 5686144 Website: www.bineid.com

62

HOTEL NEWS ME October 2015

The secret to a great night’s sleep

Silentnight UAE LLC has been in the UAE since 1978 manufacturing quality mattresses not only for the retail sector as the UK’s No.1 brand but also for the contract sector supplying quality mattresses and divan beds and accessories for all sections of the contract market.

Registered Office: Al Lttihad Street, P.O. Box 2604, Ajman - UAE Tel: (+971 6) 740 7264 / 740 7511 Fax: (+971 6) 740 8550 Email: contracts@silentnight.ae | Facebook: @SilentnightUAE.1978 Website: www.silentnight.ae

Silentnight is the UK’s largest bed manufacturer with over 60 years of excellence.

Voted one of the UK’s strongest brands by experts & consumers

For further information, please contact the following: MATTHEW GO CHRIS GOURDIE matthew.go@silentnight.ae chris.gourdie@silentnight.ae (+971) 55 6854 882

You told us what you wanted in a treadmill. Now it’s here.

Our new Experience Series treadmill is designed and built to last. Extensive research and development with operators, technicians and exercisers has resulted in the most robust, reliable and energy efficient treadmill we’ve ever produced. It’s also the quietest and most stable running experience we’ve ever delivered. So, you enjoy a premium ownership experience, and your guests enjoy their run.

See it in action at precor.com +44 (0) 7881 312660 · info@precor.com ©2015 Precor Incorporated