THE PROFESSIONAL PERSPECTIVE FOR THE HOSPITALITY INDUSTRY MARCH 2015 | WWW.HOTELNEWSME.COM
MIND T HE
GAP
Filling the void left by a dramatic downturn in Russian and CIS business
F&B BOSSES SPEAK OUT
NEW FAMILY BRAND
THE NEED FOR SPEED
Quality over quantity is new sector mantra
First & Foremost launches fresh concept
Dubai projects fasttracked in Expo lead-up
CONTENTS
hot topics 08 | NEWS ROUND UP A SUMMARY OF REGIONAL AND GLOBAL NEWS 24 | THE PANEL A GROUP OF F&B BOSSES DISCUSS QUALITY OVER QUANTITY 60 | TAKE 10 WHAT MAKES A GREAT ENGINEER? 62 | MEET THE EXPERTS HOSPITALITY SPECIALIST VIEWS
features
36
36 | COVER STORY WHAT STEPS HOTELIERS ARE TAKING TO FILL THE GAP LEFT BY THE CIS MARKET
44 | DESTINATION FOCUS AN OVERVIEW OF DUBAI'S FAST- TRACKED EVOLUTION
24 44
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CONTENTS
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50 Managing Director Walid Zok Walid@bncpublishing.net Director Rabih Najm Rabih@bncpublishing.net Director Wissam Younane Wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley Dom@bncpublishing.net Sales Manager Charlotte Ringrose Charlotte@bncpublishing.net Executive Editor Gemma Greenwood Gemma@bncpublishing.net Deputy Editor Sophia Soltani Sophia@bncpublishing.net Art Director Rana Husam Shiblaq Rana@bncpublishing.net
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50 | CHAIN FOCUS PROFILING THE HOTEL GROUP'S ACHIEVEMENTS AND FUTURE GOALS
Marketing Executive Mark Anthony Monzon
CONTRIBUTORS The Factory Photography www.thefactory.me
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interviews 16| MIKE SCULLY REVEALS HIS PLANS TO ROLL OUT A BRAND DEDICATED TO FAMILIES 72 | CHRISTOPHE LANDAIS DISCUSSES ACCOR'S AMBITIOUS PLANS TO DOUBLE IT'S PORTFOLIO BY 2020
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HOTEL NEWS ME MARCH 2015
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MARCH 2015 HOTEL NEWS ME
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CHAIN OF THOUGHT... ON THE REBOUND, HOTELS BOUNCING BACK, LET'S SEE
AVOIDING A 2015 SLUMP SURVIVAL STRATEGIES KICK IN AS RUSSIAN CRISIS DEEPENS AND OIL PRICES TUMBLE The hotel industry is facing a new wave of challenges in 2015, which threaten occupancies and RevPAR in the short- to medium-term. One of the region’s most established and lucrative sources for business and leisure tourism, Russia, is suffering in the wake of US- and EU-led sanctions. Assets are frozen, the rouble has devalued and inflation is rocketing; a combination of factors that has put Russian consumer and corporate spending on hold. The UAE in particular is one hotel and hospitality market impacted by this economic quagmire, with Dubai arguably set to lose out more than most. To add fuel to the fire, Russians heading abroad for winter sun have been opting for value-for-money destinations such as Egypt’s Red Sea resorts, leaving Gulf cities searching for alternative business. Another market in decline is the CIS, led by the Ukraine where civil war has all but thwarted the population’s ability to venture overseas. Hotels UAE-wide are reporting a significant decline in business from what a year ago was one of the region’s strongest emerging markets for tourism. Of course, given the Gulf’s advantageous geographical location, whereby two-thirds of the world’s population lives within an eight-hour flight of the region and one third lives within a four-hour flight, the opportunities to fill beds left empty by Russian and CIS visitors are plentiful. And current and potential tourists and
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corporate travellers continue to be lured to the GCC by investment in leisure and business infrastructure, the massive growth of the aviation industry and mega events such as the upcoming World Expo 2020. That said, there are a number of other hurdles hoteliers must overcome in the immediate future. Most industry experts agree that between now and 2017, hotel supply will outstrip demand, putting downward pressure on occupancies and revenues. If there are no major market shocks over the next few years, the equilibrium will return in a relatively short time frame. However, the biggest worry is the longer-term impact of low oil prices. With oil revenues accounting for a major proportion of Middle East government budgets, a decline in profit will most likely thwart public spending. This could lead to many infrastructure projects being put on hold if other investment sources are not found to make up for the shortfall. These peaks and troughs are unavoidable, but the hotel industry must once again adapt and evolve its business development strategy to take into account all eventualities.
LOVING THE DRAWINGS, BUT SOMETHING'S MISSING?
OK, I SEE WHERE IT'S GOING...
NOT SURE IF IT CONVEYS THE COVER STORY WELL ENOUGH
GREAT! GOT IT IN ONE, MIND THE GAP, WITH A TWIST
GEMMA GREENWOOD Executive Editor
Follow us on our social media pages @hotelnewsme /hotelnewsmme hotelnewsme
REGIONAL NEWS
NEWS
WHO SAID THAT?
“EGYPT IS AN APPEALING DESTINATION AND PEOPLE ARE EAGER TO CONSUME AGAIN AND INVEST IN THE MARKET; THERE ARE SIGNS CONFIDENCE IN THE MARKET IS RETURNING" MARK WILLIS, AREA VICE PRESIDENT MIDDLE EAST & SUB-SAHARAN AFRICA, THE REZIDOR
Hotel industry buoyed by ME government initiatives A raft of government initiatives Mark Willis, area vice president “The strategy of governments and designed to boost tourism and off- Middle East and sub-Saharan Africa, tourism organisations is to highlight set the negative impact of regional The Rezidor Hotel Group, confirms the country’s divers product offering pockets of instability, have been wel- Egypt is one of the region’s “most and promote it as a multi-purpose comed by the hotel industry. positive stories”, with occupancy destination,” says Willis. Hoteliers and industry analysts say rates rocketing from 20 to 80% in “Beirut’s occupancy towards the the growth of the hospitality sector, the last half of 2014 – “a sure sign end of last year increased by 40% even in recently beleaguered markets, business is returning”. over the first quarter and this upward is being supported by investment in “The Egyptian government [now] trend has continued, with RevPAR infrastructure and a surge in promo- needs to position the destination on the rise too.” tional activity. again and capitalise on the draw of Chetia notes the destination’s efEgypt stands out as one forts to attract religious of the most proactive martourism with the tourism "THE EGYPTIAN GOVERNMENT kets says Prabir Chetia, authorities releasing a film associate vice president at and book to promote Leba[NOW] NEEDS TO POSITION THE research firm Aranca. non’s Christian and Muslim DESTINATION AGAIN " “Government and pubholy sites. lic authorities have worked He says the wider Midextensively to strengthen relation- classic and Nile tours, Luxor and dle East is set to benefit from the ships with travel firms regionally and the Giza Pyramids in order to bring improved economic and political internationally,” he says. “Plus travel back traditional markets like the circumstances in former crisis-hit bans have been lifted, allowing key UK, France, Italy, Germany and the countries such as Egypt, Lebanon feeder markets to return to Egypt. USA,” he says. and also, in Bahrain. “The country’s effort to diversify Willis and Chetia pinpoint Leba“It will not only result in more the target market by attracting more non as another market where relative Gulf tourists travelling intra-regiontourists from Asian growth markets, stability combined with government ally, but improve international visitor such as India and China is also likely initiatives are paying dividends for sentiment in favour of the Middle to contribute to drive demand.” the travel and hospitality sector. East as a destination,” he argues. 8
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HOTEL GROUP
GO FIGURE
71% THE PERCENTAGE OF INFRASTRUCTURE INVESTMENT DEDICATED TO TOURISM PROJECTS IN LEBANON (SOURCE: ARANCA)
200% THE Y-O-Y INCREASE IN TOURISM REVENUES FOR CAIRO IN AUGUST 2014 (SOURCE: ARANCA)
100 THE NUMBER OF COUNTRIES NOW ELIGIBLE FOR A VISA ON ARRIVAL IN BAHRAIN (SOURCE: ARANCA)
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REGIONAL NEWS
Meliá Hotels International has announced two hotel firsts for the Gulf. The Spanish hotel brand has revealed plans to open one of three properties under its new “urban brand”, Innside by Meliá, in the UAE - Innside Dubai will feature 125 rooms. The other two will open in the UK; Innside Glasgow and Innside Birmingham The firm also recently opened the doors to its second property of three planned for the Gulf. Meliá Doha is the Qatari capital’s first five-star Spanish property. Located in the West Bay district, it features 280 rooms and 37 suites plus three restaurants including award-winning Signature by contemporary Indian chef Sanjeev Kapoor, marking the outlet's Doha debut. The Meliá portfolio comprises 378 hotels with 100 more in the pipeline, located in emerging markets in Asia, the Middle East, Africa, the Caribbean and Latin America.
WHO SAID THAT?
GO FIGURE
204mn
Meliá discloses two hotel firsts for the Gulf
“IT IS TOO EARLY TO
THE AMOUNT SECURED IN AED BY R
EVALUATE THE FULL
HOLDING/R HOTELS
IMPACT OF
FOR THE DEVELOP-
CRASHING ROUBLE AND RUSSIAN
MENT OF ITS NEW PALM JUMEIRAH PROPERTY
ECONOMY ON THE TOURISM SECTOR IN THE UAE” LAURENT A.
1,550
VOIVENEL, CEO, HMH – HOSPITALITY MANAGEMENT HOLDINGS
THE NUMBER OF ROOMS ADDED TO ABU DHABI'S HOTEL MARKET IN 2014 (SOURCE: JLL MENA)
CAIRO OCCUPANCY GROWTH
122.8
THE PERCENTAGE INCREASE FOR THIRD-QUARTER OCCUPANCY GROWTH IN THE CAIRO HOTEL MARKET (SOURCE: STR GLOBAL)
All eyes on Cairo as occupancies bounce back Cairo reported 122.8% occupancy growth in Q3, 2014, indicating renewed consumer confidence in the tourism destination, according to STR Global Middle East area director Philip Wooller. "However, occupancy was still below 50% at 46.6%, so there is still some growth to be had before it reaches pre-crisis levels," he noted.
Jumeirah Group signs first Venu on Bluewaters Island Jumeirah Group has inked a deal with Meraas Holding to manage its first Venu property on Bluewaters Island. The debut of the hospitality firm’s new lifestyle hotel brand will operate under the Venu Living brand and is expected to open in 2017. Venu Bluewaters Island will comprise around 300 rooms plus 119 serviced apartments. The property will boast extensive beachfront access, a wide range of restaurant and bar options, a spa, plus conference and meeting facilities. Bluewaters Island is a Meraas Holding mixed-use development currently under construction off the coast of Dubai. When 10
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completed it will be home to the world’s largest Ferris wheel. “Meraas Holding is a respected developer with a bold vision and we are proud to bring our unique hotel experience to Bluewaters Island,” said Jumeirah Group president and CEO. “Opening our first lifestyle Venu hotel is a significant milestone for the Jumeirah Group and an exciting achievement towards our goals for expansion.” Meraas Holding chief hospitality officer Cherif Hosny said the partnership with Jumeirah for Venu hotel was "is in line with our objective to grow our portfolio in the hospitality sector to cater to the 20 million projected tourists".
Lactalis Dairy Products and Trading (Middle East) LLC Email: info@ae.lactalis.com - Tel: +971 4 3623025
MARCH 2015 HOTEL NEWS ME
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REGIONAL NEWS - SPOTLIGHT ON SAUDI ARABIA
WHO SAID THAT?
“THE NUMBER OF PILGRIMS EXPECTED TO VISIT THE KINGDOM IS SET TO REACH FIVE MILLION THIS YEAR, PRESENTING A GREAT OPPORTUNITY FOR US TO TO GROW OUR FOOTPRINT IN THE COUNTRY” PASCAL GAUVIN, CHIEF OPERATING OFFICER, INDIA & MEA, IHG GO FIGURE
13,397 THE TOTAL NUMBER OF HOTEL KEYS IN RIYADH AT THE END OF 2014 (SOURCE: JLL HOTEL MARKET OVERVIEW, Q4, 2014)
7% THE Y-O-Y DECLINE IN RIYADH'S ADR IN NOVEMBER 2014; FROM $254 TO $237 (SOURCE: STR GLOBAL)
12
Hoteliers confirm confidence in KSA prospects Some of the world’s biggest hotel groups have re-confirmed their commitment to aggressive expansion plans in Saudi Arabia. InterContinental Hotels Group (IHG), Hilton Worldwide, Movenpick Hotels & Resorts and Rezidor are just some of the big names forging ahead with hotel openings between 2015 and 2017. “Saudi Arabia remains one of our strongest markets in the region,” said IHG’s chief operating officer for India and MEA, Pascal Gauvin. “We operate 24 hotels in Saudi Arabia today, with nine new properties in the pipeline. “ This year IHG will open Hotel Indigo Riyadh King Abdullah Financial District, marking the Middle East debut of this boutique brand. Gauvin said IHG was also well placed to cash in on the kingdom’s burgeoning religious tourism market with visitor numbers from this sector expected to hit five million this year. “In response, 2016 will see the
HOTEL NEWS ME MARCH 2015
opening of Holiday Inn Makkah – the largest Holiday Inn hotel in the world with 1,238 rooms,” he said. “Domestic tourism is expected to account for 640 million nights by 2019 and we are ready to cater to this growth with the opening of Crowne Plaza Riyadh ITCC this year.” Meanwhile, Hilton Worldwide has 23 hotels planned for Saudi Arabia – its largest pipeline in the Middle East. The hospitality firm most recently announced a new Hilton Garden Inn hotel in Yanbu City, marking the seventh property to open under this midscale brand in the kingdom. Expected for completion in early 2017, the new-build will be developed in the Red Sea port city featuring 239 rooms. “KSA’s hotel market continues to perform strongly and 2014 saw Hilton Worldwide open two new properties – Hilton Makkah and DoubleTree by Hilton Dhahran,” said Christian Grage, vice president
of operations, Arabian Peninsula, Hilton Worldwide. “The Hajj season and business tourism continue to drive growth as Saudi looks to diversify its economy into new industries, with the hospitality sector playing a major role.” Mövenpick Hotels & Resorts is also setting its sights on KSA expansion, recently signing a deal to manage the 270-key Mövenpick Residences Al Khobar, scheduled to open in 2016. Taking into account 2015 openings of properties in Riyadh and Jeddah, the company will boost its Saudi Arabia portfolio by one-third, from nine to 12 properties by the end of next year. Rezidor is quick off the mark too, revealing plans to open the Radisson Blu Hotel & Residences Jeddah Gate in the first quarter of 2018. The property will feature 302 rooms and 150 service apartments and represents the group’s eight project in Jeddah.
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WORLD NEWS
IHG reveals 'Trust Capital' trend A 2015 trends report by InterContinental Hotels Group (IHG) has revealed a blueprint organisations can follow to build trust amongst different consumer demographics. The ‘Building Trust Capital: The new business imperative in the Kinship Economy’ report identifies a transition from brand experiences to brand relationships in the hospitality sector. “As we look around us, there are so many shifts taking place. In a digital, 24/7 world, where personalisation is increasing and consumers have a new definition of value, the trust that people have in both brands and the organisation behind them is more important than ever,” said IHG CEO Richard Solomons.
“Our research has shown that building ‘Trust Capital’ plays a critical role in delivering sustainable, high quality revenue growth. To build trust, organisations must ensure they adopt a trust agenda, focus on personalisation whilst being aware of the boundaries and develop a deep understanding of how guest needs are changing by demographic and by geography.” The report identifies two key consumer groups with very different travel preferences and desires: Boomers (born 19461964), who look for brand relationships that go smoothly with no hitches or glitches and Millennials (born 1982-2000, who prefer close, experiential relationships with brands.
Relais & Châteaux CEO Jean-François Ferret talks to Skift.com about the future of the guest experience, the evolving expectations and demands of hotel guests and the group's strict culinary admission standards.
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GO FIGURE
WHO SAID THAT? “IN 2014 ALONE, MARRIOTT SIGNED
1 million
“Cuisine is really our specialty and there is no competition around this. We have 328 Michelin Stars in our family, which is really unmatched”
“Trust Capital’ plays a critical role in delivering sustainable, high quality revenue growth”
AGREEMENTS FOR MORE THAN 650 HOTELS AND 100,000 ROOMS TO BE ADDED TO ITS
THE NUMBER OF MARRIOTT ROOMS IN OPERATION OR PIPELINED BY THE END OF 2015
WORLDWIDE SYSTEM OVER THE NEXT FEW YEARS, A SIGNING PACE OF
67%
NEARLY TWO NEW HOTEL DEALS A DAY” ARNE SORENSON, PRESIDENT AND CEO, MARRIOTT
OF BOOMERS PREFER TO CALL A HOTEL AND SPEAK WITH ‘REAL’ PEOPLE (SOURCE: IHG REPORT)
10,000 THE NUMBER OF EXHIBITORS ANTICIPATED AT THIS YEAR'S ITB BERLIN TRAVEL TRADE SHOW, WHICH TAKES PLACE FROM MARCH 4-8, WITH 190 COUNTRIES REPRESENTED
ME key growth market for ITB ITB Berlin has identified the Middle East as one of its key growth markets for exhibitors. “Demand for places from the Arab states has been extremely high and unable to be fulfilled in every case; halls 5.2a and 5.2b were booked up at an early stage,” said an ITB statement. “Iran is becoming increasing popular as a tourism destination and for the first time has its own Hall (7.2a).” Asia is another growth market for the show, with Bangladesh and GilgitBaltistan, a hiking destination in Pakistan, attending the event (March 4-8) for the first time.
FACE FACE TO TO FACE FACE
FAMILY FIRST Mike Scully, managing director of First & Foremost Hospitality, reveals his plans to roll out the world’s first and only brand dedicated to families
Mayer Family Hotels – key features • World’s first and only brand fully dedicated to families with kids and a special focus on babies and toddlers • Every hotel suite has separate kids’ bedrooms, baby monitoring devices and other relevant equipment • Core to the concept is a kids’ club with 30 registered child minders available 14 hours a day, seven days a week, across five age groups • Kids facilities and services include indoor and outdoor play areas, soft play, a cinema, theatre, on-site ski facilities, water splash areas, sports facilities, swimming lessons • Offers a holiday with the children, but away from the children and all-day dining restaurant MIKE SCULLY
It’s very likely you know or have met Mike Scully – the larger than life South African hospitality professional who spent more than 20 years working in the Middle East’s hotel sector. He is perhaps best known for managing two of Dubai’s leading luxury family resorts, the Westin and Le Meridien Mina Seyahi, which he developed into leisure and entertainment destinations in their own right. But now Scully has set his sights on rolling out an entirely new and unique hospitality concept that he firmly believes could 16
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take the region – and eventually, the world – by storm. As founder and managing director of hotel group start up, First & Foremost Hospitality, Scully is launching a brand dedicated to families, with the first properties to open in the Gulf over the next few years. To make it possible, Scully has teamed up with a company already excelling in this field with properties in Central Europe, Mayer Family Hotels. The group operates 56 top-end family hotels and resorts and is considered the
global pioneer of family properties and vacations. Its existing resorts currently operate at 95% average occupancy, 30% above the average in the Austrian hotel market, with an impressive repeat guest rate of 72%, such is this unique proposition’s popularity with the family leisure market. First & Foremost Family Hotels has also joined forces with professional golfer Ernie Els to launch the business venture. Speaking at the recent Dubai launch of the concept, Els told media and guests he believed there was a “huge market for family hotels” and that First & Foremost
FACE TO FACE
Hospitality could “fill a gap” by providing a concept that’s “better than what’s out there already”. Investment potential aside, Els also has a philanthropic interest in the venture, driven by personal circumstances. Both Els and Scully have children who are on the autism spectrum and in a world first, they have vowed to build in an autism-friendly aspect into the family hotels they develop. At first this will mean two or three rooms adapted to suit the needs of families with autistic children. However, in the longer term, the properties aim to draw on the expertise of the Els Centre of Excellence, which is being built in the US under the guidance of the Els for Autism Foundation. This will mean hotels atering to autistic guests with specialist facilities, services and dietary requirements. “We don’t want to sell ourselves as a hotel for autistic people but we will have facilities available for autistic kids,” explains Els. “The concept of a family hotel chain makes sense to me.” Scully describes the collaboration with Els and Mayer Family Hotels as a “dream partnership”. Here he explains why:
Where will you launch your first property and when? I’d certainly like to open a property in Dubai, given I spent 20 years working in the hotel industry here, plus the UAE and other Gulf states including Saudi Arabia.
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Why is now the right time to launch a family hotels concept in the Middle East? Most of the world is currently reaping the benefits of low oil prices, which is reducing the price of fuel and cost of living in our key source markets, Europe and US. It should drive more tourism business to the region and in general. Add to that strong growth in family tourism and there is a gap in the market for fully inclusive family hotels. The Middle East needs what we have. It’s a very family-orientated market and will attract domestic, regional and international guests. We also have 350,000 guests who stay at Mayer Family Hotels already and they have told us they want a beach alternative in the sun. GCC guests like the concept too and have said they want something closer to home.
DEFIN IN G G U EST EXPERIEN CE SIN CE 1942
www.northmace.com MARCH 2015 HOTEL NEWS ME
Hotelier Middle East Ad - New Spec.indd 1
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20/10/2014 10:07
FACE TO FACE
Vital statistics (For Mayer Family Hotels)
(L TO R) MIKE SCULLY, ERNIE ELS AND FLORIAN MAYER, DIRECTOR, MAYER HOTELS
95% average occupancy – 30% more than the Austrian average
72% repeat guest rate I week minimum stay
350,000 families in the database who stay 2.8 times per year 82% of guests are self-employed
“AROUND 99% OF BOOKINGS MADE AT THE HOTELS IN EUROPE ARE DIRECT, WHICH DEMONSTRATES THE STRENGTH OF THE FAMILY PRODUCT IN A WORLD TAKEN OVER BY OTAS”
the hotel industry here, plus the UAE and other Gulf states including Saudi Arabia. We are also speaking to potential partners for a property in Egypt and ultimately, we would like to take the concept worldwide. We believe it would work exceptionally well in the US. What makes these hotels different? We focus on fully inclusive family hotels and resorts. The 56 hotels in Europe do very well and we feel we can export the brand here, catering to families looking for a hotel where all family members can be looked after. The properties include purpose-built annexes within the room for the young children; a crèche for the babies and toddlers with nurses and fully trained carers; mini water parks; plus a theatre for kids’ 18
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productions. All these facilities make us quite unique and add substantial value to the property through RevPAR. So what’s the business case for opening family properties here? There is a huge amount of hotel inventory coming online and properties without a point of difference will struggle, particularly when so many rooms are booked online through OTAs. The phenomenon of ‘air and B&B’ (whereby travellers book their flight and room online themselves) plus peer-to-peer selling is making it difficult for properties that don’t have unique selling points to stand out. However, we are almost exempt from these factors because we are unique. Around 99% of bookings made at the family hotels in Europe are direct, which demonstrates the strength of
the family product in a world taken over by OTAs. Obviously we respect the OTAs, we need them and will be happy to work with them but we are in a good position in a world where everyone’s objective is to get direct bookings and avoid paying commission. These properties also enjoy fantastic occupancies and most, double-digit ROI. How will you ensure you get the right staff on board? Fortunately we have the big advantage of 56 hotels in Europe with fully trained staff and the best teams in the world. Mayer has its own training academy so we can tap into this expertise. Another key objective is to be a leading employer of autistic adults. We will also encourage our suppliers and partners to take on the responsibility of employing them too.
MID-SCALE HOTELS
FULL STEAM AHEAD
With Accor’s plans to double its portfolio by 2020, Christophe Landais, chief operating officer, Middle East explains how this ambitious target will make headway across the region
ACCOR’S PORTFOLIO
100 HOTELS IN OPERATION
How many hotels do you currently operate in the UAE and how well are these properties performing? We recently reached a key milestone in the Middle East of 100 hotels in operation or under development, which breaks down as 66 opened hotels, with a total of more than 16,000 rooms, and 34 under development. These hotels are spread across 10 countries with a total of over 24,500 rooms, open and being developed which underlines our status as one of the largest hotel groups in the Middle East. In the UAE specifically, we operate 26 hotels with over 7,000 rooms and have five hotels under development, bringing the total number of rooms to nearly 9,000, spanning from economy to luxury brands. Our economy segment includes ibis and ibis Budget, whilst our midscale brands are Novotel, Suite Novotel, Mercure and Adagio Aparthotels. Our upscale offering consists of Pullman and MGallery, with Sofitel being our luxury brand. 20
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Our hotels performed very well in 2014, and in particular at the end of June 2014, our occupancy levels are still extremely strong and we expect this to continue for the remainder of the year. We are also seeing solid occupancy in our new Adagio Aparthotels hotels that opened in Fujairah, Abu Dhabi and Doha. Our Adagio Aparthotels Al Barsha in Dubai will open shortly and we are confident that there will be sufficient demand here too. What are the key factors driving occupancies at your properties and what are your key source markets for business and why? In addition to Dubai’s Vision 2020, key factors driving demand and occupancy at our properties include the increased connectivity we have experienced and are still witnessing in the region in the form of more airline connections. The Emirates and Qantas partnership brings arrivals to the region from East Asia and Australia in particular. The expansion
16,000
CHRISTOPHE LANDAIS, CHIEF OPERATING OFFICER, ACCOR, MIDDLE EAST
ROOMS
66
26
HOTELS IN THE UAE
OPENED HOTELS
OR UNDER DEVELOPMENT
34 UNDER DEVELOPMENT
of interregional airlines such as Air Arabia and Fly Dubai also contributes to increased traffic and demand for hospitality and hotel infrastructure. In Qatar, ahead of the World Cup 2022, approximately 60,000 - 80,000 rooms are needed, with the current number less than 20,000. There is a need to develop the infrastructure, with or without the World Cup, and in particular, three and four star hotels. Accor is committed to working with the authorities to help meet this demand. You have announced plans to target 30,000 rooms in the Middle East by 2020, why is now the right time to be opening more properties in the UAE? There are several factors why we believe now is the right time to be opening properties in the UAE and Middle Eastern region. The UAE in particular is a five-star destination, so there is a natural requirement for upscale and luxury brands, which we are increasingly
MID-SCALE HOTELS
“ACCOR’S AMBITIOUS DECISION TO DOUBLE THE SIZE OF OUR OPERATIONS WAS IN RESPONSE TO THE DYNAMIC GROWTH TAKING PLACE IN THE REGION AND OUR COMMITMENT TO DOUBLE IN SIZE BY 2020 IS A BOLD STATEMENT OF OUR CONFIDENCE IN THE FUTURE OF THE REGION”
servicing with our Pullman, MGallery and Sofitel brands. There is also rising demand for the development of more three and four star hotels, particularly in light of Dubai’s Vision 2020 and the city’s growing status as a global leisure, trade and financial hub. As a worldwide and regional leader in the midscale and economy segments, Accor is well-positioned to help meet the need for three star brands with its ibis, ibis Budget and four star brands with Novotel, Suite Novotel, Mercure and Adagio Aparthotels in Dubai – and has led the
pack, operating ibis and Novotel hotels in Dubai since 2003. This new target is almost doubling the Accor portfolio, how do you plan on making these projects a success, and at present, what are the top priorities for this project? Accor’s ambitious decision to double the size of our operations was in response to the dynamic growth taking place in the region and our commitment to double in size by 2020 is a bold statement of our confidence in the future of the region.
Our success depends on the support of our valued partners who work closely with our experienced and localized teams here in our three offices in Dubai, Jeddah and Cairo, and the strength of our portfolio of brands that continue to deliver operational excellence and compelling returns. Can you provide details of the new properties? The new properties will comprise of many of our brands, including ibis and ibis Budget, Novotel, Suite Novotel, Mercure, Adagio Aparthotels, Pullman, MGallery
MID-SCALE HOTELS
IBIS MALL OF THE EMIRATES
“THE EMIRATES AND QANTAS PARTNERSHIP BRINGS ARRIVALS TO THE REGION FROM EAST ASIA AND AUSTRALIA IN PARTICULAR. THE EXPANSION OF INTERREGIONAL AIRLINES SUCH AS AIR ARABIA AND FLY DUBAI ALSO CONTRIBUTES TO INCREASED TRAFFIC AND DEMAND FOR HOSPITALITY AND HOTEL INFRASTRUCTURE” and Sofitel, in various locations around the Middle East where we already have a presence. More details will be unveiled in due course. What happens from 2020 onwards in terms of your ongoing expansion strategy? Our strategy of expanding aggressively through select developments tailored to each market location, in partnership with leading regional investors, has delivered outstanding results so far, and we will continue to build on this over the coming years. As a result of the Expo 2020, we are 22
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seeing increased demand for hotels in the region, but this is in conjunction with a number of other factors. We see strong growth potential given that there are on average only two rooms per 1000 inhabitants in the Middle East, compared to 10 and above in more matured markets. Across all our segments, from economy to luxury, we are seeing rising demand for the development of more hotels, and expect this to continue. Accor represents mid-scale brands, what potential is there for this type of property in the region? Accor caters for all market segments from
luxury to economy brands depending on the market demand. Back in early 2000, we noticed a lack of supply but increasing demand for economy and midscale hotels in the region, and hence developed this market segment. This strategy proved successful and we are now the regional market leader in the economy and midscale segments, helping to meet the growing demand for three and four star hotels in the Middle East. This is driven by factors such as Dubai Vision 2020, the 2022 FIFA World Cup in Qatar and Saudi Arabia’s target to attract 20 million visitors – all of which increase the need for affordable yet comfortable accommodation.
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THE PANEL
REINVENTING STRATEGIES Hotel News ME gathered a group of F&B managers and directors to discuss how having less restaurants within a hotel makes more sense than ever, and the ways in which standalone restaurants are posing challenges never seen before within the industry WORDS SOPHIA SOLTANI
IN ASSOCIATION WITH
The Hoteliers
SUBARNA THAPA, FOOD & BEVERAGE MANAGER, DUSIT THANI DUBAI
CONOR O' LEARY, DIRECTOR OF F&B, GRAND HYATT, DUBAI
JUSTIN GALEA, DIRECTOR OF F&B, LE ROYAL MERIDIEN, ABU DHABI
MONICA METZGER, F&B OPERATIONS MANAGER, THE WESTIN, DUBAI MARINA
This month, Hotel News ME in association with Rikan General Trading, gathered a group of F&B professionals at The Westin Dubai Mina Seyahi Beach Resort & Marina to discuss how the rise of independent restaurants are challenging the F&B outlets within hotels more than ever and what the professionals within these outlets are doing to secure their place in the dining scene across the region. How much of the hotels revenue would you say comes from the F&B outlets and why? Metzger: Personally speaking we have 14 restaurants and bars, with one as a major bar and contributes quite significantly to our revenue, so these outlets are just as important as the rooms are. So in our case, I would say around 40%, obviously we put a lot of emphasis on keeping the F&B outlets up-to-date, but it is safe to say that the rooms don’t always necessarily contribute to the revenue within the F&B outlets as we have a large following of people who come to the hotel just for the restaurants 24
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and especially the brunches we offer here at the Westin. Thapa: I think in terms of revenue, when you compare how much a room brings in compared to an F&B outlet within the hotel, it depends largely on what type of hotel you are running and I completely understand the resort aspect, but for example, when you go to a business hotel like ours and you have five or six dining options within the property the percentage of the food and beverage revenue can equate to around 30-35% maximum because this is a different platform in terms of the hotels positioning due to it being a
business kind of hotel, so a resort always comes a little stronger with their F&B revenue intake. Galea: Well we are a business hotel, and our dining outlets amount to at least 50% of our revenue, if you talk about capture rate and you look at the Middle East as a region compared to anywhere else in the world, F&B is very, very strong, and it is driven by one thing, beverage. Beverage drives F&B in the Middle East, competition is rough and trying to focus on your capture rate is paramount to your success trying to get the proper concepts in, venues that do not compete with
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“WE ARE A BUSINESS HOTEL, AND OUR DINING OUTLETS AMOUNT TO AT LEAST 50% OF OUR REVENUE, IF YOU TALK ABOUT CAPTURE RATE AND YOU LOOK AT THE MIDDLE EAST AS A REGION COMPARED TO ANYWHERE ELSE IN THE WORLD, F&B IS VERY, VERY STRONG, AND IT IS DRIVEN BY ONE THING, BEVERAGE” – GALEA
IN ASSOCIATION WITH
The Hoteliers
DAVID NUENEMANN, DIRECTOR OF F&B, KEMPINSKI HOTEL, MALL OF THE EMIRATES
each other and create USPs within your hotel, this drives the revenue. I say this as an ex executive chef, so instead of spending three days in the kitchen preparing one dish that generates 75DHS as opposed to opening a beverage that produces 50DHS per serving, you have to look at the facts and see where your revenue is coming from. So when you look at beverage driven venues, their revenue is higher, their labour costs are lower and their productivity is higher, so as far as revenue goes, it allows an outlet to compete with room revenue to a certain degree. O’Leary: I think it is changing a bit, I’ve
IVAN LEON, F&B MANAGER, JUMEIRAH ZABEEL SARAY, DUBAI
spent a lot of time in London and in the UK, and there people spend as much time as possible trying to avoid eating in the restaurants within hotels, whereas here you don’t really have a choice as far as licensed venues go. But now the market is beginning to change, and you have the likes of Pier 7 popping up and DIFC upping its game, so our strategy going forward is to certainly look at having less F&B outlets within our hotel, we have 12 that we run and one that we lease, and I don’t think that this model will continue to run with so many licensed outside and stand alone venues popping up. So overall our F&B outlets generate around 30% of
KHALED SHAWESH, DIRECTOR OF F&B, PULLMAN HOTEL, JUMEIRAH LAKES TOWERS
our revenue and our banquets add on another 20%. Leon: I would say for us it is slightly different being located on the Palm, so we have quite a large hotel which is a slight distance away from other outlets, which benefits us as it encourages our guests to dine in-house and I would say the F&B outlets account for approximately 50% of our overall revenue. We have ten different outlets, I also agree with O’Leary that the model of having so many different restaurants in one hotel will begin to fade out due to the competition, at present we have 10 and it works in our favour. MARCH 2015 HOTEL NEWS ME
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“THE MARKET IS BEGINNING TO CHANGE, AND YOU HAVE THE LIKES OF PIER 7 POPPING UP AND DIFC UPPING ITS GAME, SO OUR STRATEGY GOING FORWARD IS TO CERTAINLY LOOK AT HAVING LESS F&B OUTLETS WITHIN OUR HOTEL” – O’LEARY
IN ASSOCIATION WITH
Apart from decreasing the amount of restaurants within a hotel, what other challenges are faced and how can they be overcome? O’Leary: The quality is changing drastically I think that it was enough just to have the outlets for a long time and now you have some great concepts arriving some great operators setting up it forces the quality to increase, so this links can also lead to the downsizing of outlets. By reducing the number of restaurants you can focus more on the quality of the few you do have. Leon: For example, we have a Turkish restaurant and when we opened there were only around 2 or 3 Turkish restaurants in the whole city, now you go to Jumeirah Beach there are about twenty. So people are looking for new outlets and new concepts, in the city there are
also new areas that people are talking about and DIFC is one of them, DIFC is coming up stronger than ever. So trying to fill 200-300 covers within the hotel is getting a bit more challenging. Metzger: I think the challenge that we have in Dubai is that we are living in a city that is literally growing under our feet, which is something that you don’t get in other countries as they have been established for hundreds of years. I have been here for 8 years in Dubai, and when I first arrived you didn’t have any other choice but to dine in a hotel restaurant if you wanted to go out and socialise, and previously people didn’t trust the small independent outlets based on the quality, so everyone was very cautious, you didn’t know if the quality was going to justify the risk of not knowing what you were going to get, but now it is a completely different case, the smaller outlets are
becoming more favourable, even if they don’t serve alcoholic beverages they have really secured their place within the market as small, independent stand alones. Additionally, people are also becoming more cost conscious, so the mentality has changed drastically, why does someone want to spend 100DHS on a pizza in our Italian when they can buy four pizzas at that price from a standalone. Galea: For me it is about quality and creating USPs within your venue, but moving away from food halls and creating boutique restaurants, concentrating on average check quality, creating a feel in your venues which makes you feel that you are not actually in a hotel, I think that none of us actually like eating in hotel venues and we all strive as operators not to have a hotel feel in our restaurants yet we are all guilty of doing it in one form or another. Left to right: Galea, thapa, Shawesh, Metzger
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“SOCIAL MEDIA HAS TAKEN HOLD OF SOCIETY, SO AS AN F&B MANAGER OR AN F&B DIRECTOR YOU HAVE TO SUDDENLY CONSIDER A BAD REVIEW ON TRIP ADVISOR, NOT JUST FOR THE HOTEL BUT FOR YOUR RESTAURANT TOO” – THAPA
IN ASSOCIATION WITH
The F&B managers respond to the input of the group
If you look at Abu Dhabi as a market for the population and tourism, it is completely oversaturated as a market and we as hoteliers then over saturate our hotels with venues. It is also about looking at concepts that don’t clash and don’t compete. Am I a fan of 10 venues, I am and I’m not, so I don’t believe that if you have 10 venues, that all 10 should be open for lunch and for dinner, then what you are able to do is offer variety, control your costs, and your labour, plus you are able to ferry your guests and your sleepers into where they should be dining. Then that allows you the scope of having a multidimensional F&B structure, but it is controlled and that is what we are trying to do in 2015. 28
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Shawesh: I agree, because the saturation within your dining outlets also has a significant amount to do with your location. For example, we just opened up Pullman Hotel in JLT. Now the business within that area is lunch, so after 6 to 7pm you hardly see anyone walking around that area unless you are lucky enough to be located in a residential area of JLT it is unlikely you will attract a mass of people in to eat around dinner time. So it is a completely valid point to say that not every F&B outlet within your hotel should be open for both lunch and dinner, due to our location we are trying to push business lunches and beverage driven revenue in the evenings.
Nuenemann: To add another challenge to the table, as a hotel based around a mall [Kempinski Mall of the Emirates] and of course a couple of years ago this area was less developed, there were not many other hotels around and so we were the lucky ones being attached to the mall and at that time it was a huge advantage. We were driving people in from the mall into our restaurants, they were easily accessible without much competition, now things have drastically changed and we now have serious competition especially with the new three and four star hotels popping up around the area, they are also providing good F&B with the liquor licence, therefore we have really adjusted our F&B to focus more on quality as you
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“DIFC IS COMING UP STRONGER THAN EVER. SO TRYING TO FILL 200-300 COVERS WITHIN THE HOTEL IS GETTING A BIT MORE CHALLENGING” – LEON IN ASSOCIATION WITH
Leon engages in conversation with Nuenemann and O'Leary
you cannot compete with everybody, this is an impossible task considering there are more tan 100 outlets within the mall now. So here with us, the key lies that we are driving the revenue forward with our beverage selection. Having touched upon the challenges, how would you say the F&B industry has changed over the past five years across the region? Nuenemann: Most definitely the standards in quality has changed, clients are getting more demanding and other outlets are becoming more competitive, so what we see in Europe, is people are not in the habit of going to a hotel just for a restaurant except
for a super famous chef that is making an appearance and this culture is starting to latch on in Dubai, especially with the freestanding restaurants popping up across the region. Leon: I would say that there has been a move to more branded restaurants, consumers are becoming more aware as to what brands are out there and they identify themselves within a category of restaurant. Metzger: We must also be mindful and address the fact that Dubai is very much about the newest, the biggest and the best outlets in town. The whole culture and society is built upon appearances, the latest trends and being so new, Dubai is still adapting to its own self. One of the advantages that the
standalone restaurants benefit from that we, as hoteliers do not, is that there has never been a premeditated standard to adhere to. They have the flexibility of creating their own identity. Additionally, they also have unlimited capital from the investors so they are able to build a restaurant to appear overly attractive in appearances and focus on the aesthetic look of it but not necessary focus on the refinement of the service or quality of the food, so this alone pushes people through the doors of their restaurants. The problem that we then have from a hotel restaurants perspective is that we do not always have the capital to renew ourselves or do something different because we are tied from so many different angles.
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“NOT EVERY F&B OUTLET WITHIN YOUR HOTEL SHOULD BE OPEN FOR BOTH LUNCH AND DINNER, DUE TO OUR LOCATION WE ARE TRYING TO PUSH BUSINESS LUNCHES AND BEVERAGE DRIVEN REVENUE IN THE EVENINGS” – SHAWESH IN ASSOCIATION WITH
Galea: The pressure has most definitely increased over the past five years, in relation to the fact that an independent outlet does not need to worry about upsetting its guest as much as we do within our outlets, this is because the critics can often be guests within the hotel and upsetting them can be detrimental to bookings which can subsequently lead to a revenue decrease from other parts of your hotel. Another key factor that has changed the industry is pop culture in Dubai and Abu Dhabi, it is almost like Japan in the 80’s except now whatever is hot for the next 38 seconds and is up on Instagram or trending on Twitter has to be looked at and taken seriously within the F&B outlets in our hotels. Nuenemann: We could also learn a lot from the independent restaurants, but as Monica also mentioned, we don’t always have the luxury of throwing money into a quirky concept or refurbishing so our F&B outlets are also somewhat of an amenity within the hotels, as what you generate from rooms you can also generate from your dining options, so they can balance each other out, but this also means that whatever revenue comes in from your restaurants do not always stay within your restaurants. This then hosts the problem of staff, as the pressure is often more intense within a hotel, and so when the revenue is split between sectors of the hotel, we cannot always afford to offer extortionate salaries to our staff, so the independent restaurants come in, offer them double and we are left at a loss once again. The majority of good staff that you find in the independent restaurants have been trained and refined within hotels, the main reason the staff move on is due to pay.
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Thapa: There are many more restrictions for hotels now as opposed to five years ago, legislation has changed the scope and direction of the outlets, and also social media has taken hold of society, so as an F&B manager or an F&B director you have to suddenly consider a bad review on Trip Advisor, not just for the hotel but for your restaurant too. We must keep up to date with trends and train our staff better in order to service our guests to the highest standard possible and this can often stretch your resources hence the high turnover of staff within the hospitality sector. Shawesh: Restaurants have to be well maintained for sure, but not always refurbished, if it has been good for a set amount of years, don’t change it if it works and that is what people are expecting. How often does a restaurant need to be refurbished or reinvented to stay fresh within the competition? O’Leary: Depending on how good it already is, for example so many restau-
rants haven’t been changed or touched for over 20 years plus, because the outlet represents everything it is supposed to and that is the experience that the customer is expecting to receive. On the other hand you have restaurants that open within a year and then find it necessary to try and reinvent themselves or so to speak refresh themselves within the market having only been around for 12 months or so. Galea: I think that you have to be very careful with regards to change. If you have a concept that has created its own brand and you have an existing following, for the want of refurbishing you can actually do damage to your venue. We have an Irish pub, which was the first Irish pub in Abu Dhabi and by no means is it in line with the rest of the hotel and that’s putting it politely. Now this Irish pub has outperformed four newly opened restaurants within the hotel and has it own cult following, going to prove an F&B venue within a hotel can build its own brand and be a strong brand at that without having to fabricate on the foundations of glossy interiors. Rikan distributes gift bags at the end of the discussion
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WHAT SETS US APART THE PANEL
Firm foundations Mark Griffiths, senior vice president, regional operations for Middle East & Africa, Kempinski Hotels, talks to Sophia Soltani about the trials and tribulations of a 25-year long career within the hospitality industry
MARK GRIFFITHS, SENIOR VICE PRESIDENT, REGIONAL OPERATIONS FOR MIDDLE EAST & AFRICA KEMPINSKI HOTELS
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With over 25 years experience in the hospitality industry, how did you transition between asset management to senior management roles? I worked in operations for the majority of those 25 years, but the time I spent on the asset management side was time well spent in preparation for a larger role in regional operations. As an asset manager with operations experience I was able to see where hotels could realistically improve profitability from first-hand knowledge, and not by just crunching numbers. Stepping back into the operator’s side with the asset management perspective works in much the same way. Having that kind of insight into the expectations
of our various owners and asset managers enables me to manage those relationships well and to better support the GMs. What would you consider to be your greatest achievements within the history of your career and why? One of my greatest achievements would be working together with the team at Le Meridien Nirwana Golf & Spa Resort to break even when business dropped over 80% following the Bali bombing in 2002. The whole team pulled together and took a pay cut to ensure that no one lost their job. The team spirit, inventiveness of the team, and hard work by everyone was a truly amazing time and achievement for all of us.
WHAT WHAT SETS SETS US US APART APART
Kempinski recently unveiled its new Beijing property, at present, what would you say there is room for expansion within the UAE and Africa? If so, what are Kempinski’s plans to grow? Kempinski is expanding all over the world. Over the next few years we are opening hotels in Asia, Africa, and the Middle East. In the Middle East and Africa we have hotels coming up in Ghana, Oman, Egypt, Lebanon, KSA, and three more in the UAE, and Kempinski has a variety of new openings in the pipeline for 2015 including, the Royal Maxim Palace Kempinski in New Cairo, Egypt, Kempinski Hotel Berchtesgaden, Germany, Kempinski Hotel Gold Coast City, Accra, Ghana,
Kempinski Hotel Harbin Harbin, China, Kempinski Hotel Summerland, Beirut, Lebanon, Kempinski Al Othman Hotel, Al Khobar, Saudi Arabia and Kempinski Hotel Nusa Dua, Bali in Indonesia What factors would you credit the success of your career to and why? Throughout my career I’ve always looked for ways to make improvements at work, either in my department, or at the hotel in general. It’s easy to just show up at work every day and do your job, but to go beyond just doing your job well and take the initiative to see what can be changed, enhanced, or even eliminated, to make a positive impact on our business is a quality I admire in others too.
Hospitality is a business that can get weighed down by its traditions. It has served me well in my career to continually look for opportunities to improve the way I work and the way my teams work in order to drive success and profitability. We create our own opportunities, and if you don’t take time to look for them, you’ll miss out on them. What would you say differentiates you from other senior vice presidents in the region? There is some serious talent in hospitality in this region because it’s been such an important area of growth for many brands. Kempinski has a strong portfolio of hotels in this region and we only
WHAT SETS US APART
for ways to make improvements at work, can focus on helping our hotels deliver the hotels in Europe, Asia, and the Middle either in my department, or at the hotel in luxury product and service that KempinEast. Understanding the owner’s side of general. It’s easy to just show up at work ski is known for. And of course my experithe business is also a plus for someone in every day and do your job, but to go beence on both the owner’s and operators’ my role. Owners need to work with someyond just doing your job well and take side of the business differentiates me from one they trust just as much as the GMs. the initiative to see what can be changed, some of my peers who have come from an Working with great leaders and having enhanced, or even eliminated, to make a exclusively operational background, or an the opportunity to lead my own teams in positive impact on our business is a quality exclusively asset management background. diverse settings gave me the kind of firstI admire in others too. hand experience necessary to excel in this Hospitality is a business that can get What advice would you give to yourself role. weighed down by its traditions. It has about the hospitality industry if you served me well in my career to continually could go back to the start of your career? Who has been your biggest inspiration look for opportunities to improve the way Hospitality is a people business and manwithin the hospitality industry? I work and the way my teams work in oraging stakeholder relationships well is the Bernard Lambert, former CEO of Le der to drive Meridien Hosuccess and and Re“WE CREATE OUR OWN OPPORTUNITIES, AND IF YOU DON’T tels profitabilsorts, he truly TAKE TIME TO LOOK FOR THEM, YOU’LL MISS OUT ON THEM” has a gift for ity. We create our own leading and opportuniconnecting ties, and if you don’t take time to look for key to success in this industry. with others, which is why he was able them, you’ll miss out on them. Whether that is managing guests, emto rise in the ranks of Le Meridien and ployees, suppliers or owners, it will serve become CEO. What would you say differentiates you you well to be flexible and polite, to defrom other senior vice presidents in the velop good communication and listening How would your employees describe you? region? skills, to be adept at problem solving and I’m actually pretty new to the Kempinski There is some serious talent in hospitality negotiation, and the most important tool team, but I think they would describe me in this region because it’s been such an imto have is a great sense of humor. as hardworking and fair, which is what I portant area of growth for many brands. expect from them. Kempinski has a strong portfolio of hotels In your opinion, what would you sugI’m a family man and believe in mainin this region and we only have one brand, gest are your strongest points as a senior taining a healthy work-life balance, so unlike many of the multi-brand compavice president and why? which can often be challenge in the nies with hotels in the five-star market, I I’ve worked as a GM in a variety of hospitality industry. 34
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WHAT SETS US APART
GRIFFITHS FACTFILE OVERSEES KEMPINSKI’S NINETEEN OPERATING HOTELS IN THE MIDDLE EAST AND AFRICA GRIFFITHS HAS MORE THAN 25 YEARS OF EXPERIENCE IN HOSPITALITY JOINED KEMPINSKI IN NOVEMBER 2014 EMIRATES PALACE, KEMPINSKI HOTELS, ABU DHABI
HAS WORKED WITH LE MERIDIEN AND JUMEIRAH IN EUROPE
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RESPONSIBLE COVER STORY BUSINESS
MIND T HE
GAP
As hotel guest numbers from Russia and the CIS countries plummet, Gemma Greenwood looks at what steps hoteliers are taking to fill the void
COVER STORY
The hoteliers
WYNDHAM HOTEL GROUP: BANI HADDAD, REGIONAL VICE PRESIDENT, MIDDLE EAST AND AFRICA
KEMPINSKI HOTELS: AVSAR KOC, REGIONAL DIRECTOR OF SALES & MARKETING - INDIA, MIDDLE EAST & AFRICA
Tumbling oil prices, civil war in the Ukraine and the subsequent US- and EU-led sanctions on Russia have crippled one of the Middle East’s biggest source markets for hotel guests and hospitality property investment. Russia’s trading position is severely compromised; its assets are frozen, inflation is rocketing and the value of the rouble has diminished.
PREMIER INN: DARROCH CRAWFORD, MANAGING DIRECTOR PREMIER INN HOTELS LLC AND SENIOR VICE PRESIDENT PREMIER INN MEA
CITYMAX HOTELS: RUSSEL SHARPE, CHIEF OPERATING OFFICER
country where spend on both leisure and corporate travel has been stifled. “The collapse of the rouble and the plunging of Russia’s economy towards recession has put pressure on hotels in the Middle East, which are struggling to find ways of keeping the flow of business from this key tourism market,” confirms Prabir Chetia, the associate vice president
HMH – HOSPITALITY MANAGEMENT HOLDINGS: LAURENT A. VOIVENEL, CEO
sector, accounting for more than 70% of some annual government budgets, could help drive tourism benefits, says Chetia. “Lower oil prices will enable airlines to reduce ticket prices, boosting travel to Middle East countries,” he argues. However, STR Global’s Middle East area director, Philip Wooller, says the oil price de-
“LOWER OIL PRICES WILL ENABLE AIRLINES TO REDUCE TICKET PRICES, BOOSTING TRAVEL TO MIDDLE EAST COUNTRIES”
Neighbouring CIS countries, a once burgeoning source market for tourism to the Gulf, are feeling the pinch too, plus war-torn Ukraine is in a state of crisis. It spells bad news for the Middle East’s tourism and hospitality sector, which for the past decade has witnessed strong visitor growth and high spend from Russia and the CIS Russia is one of the UAE’s top 10 inbound tourism markets, but hoteliers are already witnessing significant declines in business from a
of research firm Aranca. “The Middle East has become a popular destination for Russian visitors, with Egypt and the UAE welcoming the highest numbers of Russian tourists to the region. In light of the changing economic landscape in Russia, the hospitality and travel industry is seeing an overall reduction in outbound travel from this market.” However, the current low oil prices (to below US$60 per barrel), while thwarting revenues for Middle East economies heavily reliant on this
cline could create financial challenges across the Middle East and Russia with knock-on effects for the hotel sector. “Some of the region’s larger projects may be put on hold, which could impact certain aspects of the hotel business,” he argues. “[But] the economic situation in Russia is [definitely] an issue for Middle East hoteliers,” he says. “Russian visitors are very important to the region, particularly the UAE; they spend a lot of money and tend to stay at luxury hotels.” MARCH 2015 HOTEL NEWS ME
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RESPONSIBLE COVER STORY BUSINESS
“THE COLLAPSE OF THE ROUBLE AND THE PLUNGING OF RUSSIA’S ECONOMY TOWARDS RECESSION HAS PUT PRESSURE ON HOTELS IN THE MIDDLE EAST”
If the value of the rouble remains low and the political situation in Russia is not resolved quickly, the region’s hotel sector will bear the brunt, he adds. However, some destinations in the region could benefit from the situation in Russia, with Egypt’s Red Sea resorts luring the country’s middle class travellers with discounted packages and all-inclusive deals, according to TRI Hospitality Consultancy, Middle East. “Russian tourists could be reconsidering their trips to more expensive destinations, such
as Dubai, and travelling to more value-driven destinations like Sharm [El Sheikh],” the firm’s senior consultant, Rashid Aboobacker, recently told the media. Average Dubai beach hotel rates are currently a staggering six times the price of Red Sea resorts, which is driving up occupancies in the latter. Dubai and the northern emirates are likely to be two of the biggest casualties of misfortunes in Russia and the Ukraine. Dubai’s tourism figures for 2014 and a mar-
ket-by-market breakdown had not been released at time of press, but Dubai International Airport revealed a 18.2% downturn in passenger traffic from Russia and the CIS in November 2014, compared to November 2013. However, this was offset by increased traffic from emerging markets with Eastern Europe topping the list with a 54.1% year-on-year hike in passenger numbers, spurred by growth from Budapest, Prague and Warsaw. South America and Asia were the second biggest growth markets respectively.
BOOKINGS FROM RUSSIA ARE DOWN BY AROUND
35%
AT SOME WYNDHAM GROUP ME HOTELSBUSINESS
How has your hotel business been impacted by sanctions on Russia? Haddad: It depends on the individual property, but bookings from Russia are down by around 35% at some hotels. This appears to be slightly better than declines experienced by large tour operators and travel agents bringing inbound tourism from Russia to the market. Koc: “In our high-end luxury segment, most of our clientele keep their savings in foreign currencies like the euro, dollar and pound so they are not necessarily affected by the depreciation of the ruble. However, mass-market destinations like Egypt, Spain and Turkey have suffered because all government employees were urged to spent their winter vacations in Russia. Some of our hotels in this region have experienced a decrease in Russian business since October, but properties like Emirates Palace have seen slight increases. News that some Russian travel
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companies have faced financial difficulties and shut down their operations has made people nervous. This hasn’t been the case for our contracted operators, but it has pushed everyone to limit their financial exposure in Russia by using pre-payments. Crawford: We attract little Russian or CIS business but we are aware the top-end and budget sectors seem to have been impacted the most. It seems Russian visitors filled rooms at the two extremes of the industry and, fortunately for Premier Inn, much less so in the mid market. Sharpe: We have noticed a 25% drop in Russian business, with Citymax Hotels Bur Dubai most impacted. Voivenel: The Russian Federation is the world’s 5th largest outbound travel market and a top source market for the UAE from September to June, so we are naturally seeing a big drop in tourists from the country as visitors stay away
or cut down spending. The rouble has dropped nearly 40% against the US dollar since the start of 2014 as Western sanctions over [hostilities in] Ukraine have hit the Russian economy. Owing to the currency peg between the UAE dirham and the dollar, the fall in the rouble translates directly to reduced spending power in the UAE. Western sanctions have also affected the credit facilities of big Russian tour operators. What has been the impact on business from the emerging CIS market? Haddad: “CIS guest numbers are down approximately 15%. Declines are most pronounced from the Ukraine (around 65%). In 2013, there were as many Ukrainian arrivals as there were arrivals from all other CIS countries combined (excluding Russia). Now they number around 40% to 45% of the total arrivals from other CIS countries (excluding Russia). For the Wyndham Hotel Group, the impact is limited to the UAE
COVER STORY
“IT DEPENDS ON THE INDIVIDUAL PROPERTY, BUT BOOKINGS FROM RUSSIA ARE DOWN BY AROUND 35% AT SOME HOTELS”
18.2%
YEAR-ON-YEAR DOWNTURN IN PASSENGER TRAFFIC FROM RUSSIA AND THE CIS IN NOVEMBER 2014 (DUBAI INTERNATIONAL AIRPORT) THE RUSSIAN FEDERATION IS THE WORLD’S
RUSSIA IS ONE OF THE UAE’S TOP
5TH
10
LARGEST OUTBOUND
INBOUND TOURISM MARKETS
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RESPONSIBLE COVER STORY BUSINESS
and price-sensitive leisure travellers is the segment most affected; this is evident at Ramada hotels in Sharjah and Ajman. In Dubai, the number of Russian guests has dropped 15% versus 2013. There is a possibility that Turkey, where Wyndham Hotel Group is the market leader, will be affected in the summer months if the situation remains as is. Koc: We don’t have the figures for Kazakhstan, Azerbaijan and other CIS destinations. Sharpe: We began to feel the drop-off [from this market] during summer 2014 and it has progressed quickly since then. This has impacted hotels across the UAE and we have had to drop rates.
How have you adapted your sales and mar-
Sharpe: We have realigned our strategy to target
OIL PRICES ARE TUMBLING TO BELOW
What do you believe will be the impact of the Russian crisis on your group and the industry in general in 2015? Haddad: The price sensitive sector of leisure market is likely to be affected in Sharjah and Ajman as the Egyptian Red Sea resorts are back on the market with very competitive offers. Koc: Kempinski maintains a rate over volume strategy and would rather invest in marketing 40
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DROP IN RUSSIAN BUSINESS
Koc: For hotels where the Russian market is a leading producer we are pursuing markets in Europe and the GCC while continuing our push into China, India, Brazil, Scandinavia and Nigeria as part of our long-term business development strategy.
Voivenel: Tourist numbers from CIS countries are down 15 to 35% in the northern emirates.
Voivenel: Business from emerging source markets such as India, China and Africa has helped to boost occupancies but not at the same rate as the CIS market and ARRs and RevPAR have been diluted.
25%
Haddad: The UAE already benefits from diversified feeder markets and sectors and the drop in Russian and CIS visitors sharpens our focus on developing new markets such as China and India.
Crawford: We haven’t experienced a drop off in business, quite the reverse in fact, although we are aware demand softened overall in Dubai in the second half of 2014. But we’re never complacent and continually fine-tune our business mix to maximise RevPAR.
group and FIT business in new and expanding markets such as India, Australia and the Far East.
CITYMAX HOTELS HAS WITNESSED A
keting strategy in light of declines in Russian and CIS business?
OIL REVENUES ACCOUNT FOR MORE THAN
70%
US$60
OF SOME ANNUAL ME GOVERNMENT BUDGETS PER BARREL
and distribution to reach new clients than discount. However, I do expect some operators to use this tactic to capture leisure business, particularly all-inclusive hotels and resorts.
in Q4, 2014, based on this strategy.
Crawford: We are not predicting any major impact, just a slight slow-down in growth in Dubai this year.
Haddad: We do not anticipate a major impact in 2015 but if the oil prices remain at that level for several months it could reduce public spending and affect the region’s economy. That would more likely impact 2016.
Sharpe: We have to be confident in our products and avoid dropping our rates significantly, but we are also mindful of destinations such as Egypt and Turkey promoting themselves heavily in the European markets and Thailand, offering very competitive pricing. Voivenel: The CIS is an important source market for Sharjah and Ajman but we have a replaced this with business from a diverse range of destinations. It has given us the opportunity to look at markets such as the GCC, India and China and we performed far better
How will falling oil prices impact the region’s hotel industry?
Koc: When oil-producing countries cut down their investment in oil exploration, drilling, etc. this impacts the number of business travellers staying at hotels in the region. Diminished oil revenues could also result in fewer government-funded projects, but so far, in the case of [oil producer] Saudi Arabia, increased investment is planned for 2015. We have certainly not seen a drop in guests from KSA at any of our properties. I don’t see any airlines cutting down fares yet.
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COVER STORY
Crawford: We are viewing this as a potentially bigger issue for the industry than the Russian/ CIS situation. If oil prices remain low for a sustained period, the region will witness a slow-down in investment, and a reduction in general spending will follow. Premier Inn hotels attract custom from all over the world, so we are less exposed than other, but GCC business will be impacted.
Sharpe: One could argue air fares will come down and bring more business, but falling oil prices are not good for the Gulf government coffers that fund public spending. Voivenel: We do not expect any major impact on intra-regional business. However, Russian and CIS visitors to the UAE have dropped considerably due to falling oil prices and the weakening rouble.
“IF OIL PRICES REMAIN LOW FOR A SUSTAINED PERIOD, THE REGION WILL WITNESS A SLOW-DOWN IN INVESTMENT”
INDIA AND CHINA HOLD “STRONG POTENTIAL” FOR THE AJMAN PALACE HOTEL.
AJMAN SEEKS CIS REPLACEMENTS Ajman is one destination feeling the pinch from a decline in CIS business, which until H2, 2014, was one of its fastest-growing markets. But hoteliers in the burgeoning emirate have been quick to execute strategies to compensate. “Ramada Ajman has entered into many new markets to offset the decline in CIS guests,” confirms Iftikhar Hamdani, cluster general manager, Ramada Hotel and Suites Ajman and Ramada Beach Hotel Ajman. “We compensated with German and Turkish business, plus the corporate and sports segments, and to date, this strategy is working well. Occupancy at both hotels was 100% for the last quarter of 2014, and 2015 is very promising.” He says Ajman beach hotels were “heavily dependent on the CIS market” and were suffering given its decline. “To tackle this issue, we are also focusing on Eastern Europe, particularly, Czech Republic, Romania, Hungary, Poland and Bosnia,” Hamdani continues. “Until now, the GCC market has been ignored due to high occupancies, but now we are focusing on Oman. In October, 50% of all GCC guests were Omanis. The local market is good for weekend business and has contributed 15% of our total occupancy year to date.” Many Ajman properties are targeting Asia’s new wave of middle class travellers to offset CIS declines, including The Ajman Palace Hotel, managed by HMH – Hospitality Management Holdings. “There is sufficient business out there across the different segments to sustain existing and upcoming hotels, but we will have to work very hard for it as we are competing with top destinations,” notes general manager Ferghal Purcell. “As feeder markets, the GCC, UK, Germany as well as other Western countries, plus India and China hold strong potential for us and we will be tapping into these further.”
DESTINATION FOCUS: DUBAI
THE CITY THAT NEVER SLEEPS Dubai’s evolution is being fast-tracked in the run up to the World Expo 2020 with mega projects worth more than US$240 billion under construction
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HOTEL NEWS ME FEBRUARY MARCH 2015 2015
DESTINATION FOCUS: DUBAI
NEW DEVELOPMENTS Al Maktoum International, Dubai World Central: The new airport will accommodate more than 200 million passengers annually when fully operational in the mid 2020s after Sheikh Mohammed bin Rashid Al Maktoum endorsed an AED 120 billion (US$32 billion) expansion project. World Expo 2020 site, Dubai Trade Centre – Jebel Ali: Construction of the 438-hectare DTC site, set out in the Dubai Expo 2020 Master Plan, starts this year and will include a 150-hectare Expo area and a surrounding residential, hospitality and logistics zone. When completed in 2019, the site will have capacity for 300,000 visitors.
Mohammed Bin Rashid City: One of the emirate’s most ambitious developments to date, this ‘city within a city’ will feature a large water park, Universal Studios theme park, a mega mall and 100 hotels when it is completed in 2022. Al Habtoor City: This AED 11 billion (US$3 billion) metropolis will be completed by 2017 and feature the Middle East’s first standalone theatre, the world’s first Bentley Café and three five-star hotels. It is expected to attract 20,000 visitors daily and up to 7.3 million annually once fully operational. Dubai Trade Centre District (DTCD): The construction of the Dubai Trade Centre District (DTCD)
22,332
LEGOLAND Dubai: Merlin Entertainments has teamed up with Dubai Parks & Resorts Limited (part of Meraas Holdings) to open the region’s first LEGOLAND Park in the Middle East, located in Jebel Ali and scheduled for completion in 2016.
10,969
NUMBER OF ROOMS UNDER CONTRACT
NUMBER OF ROOMS UNDER CONSTRUCTION
5.7%
INCREASE IN DEMAND IN 2014
IN 2014
Dubai Design District: Also known as d3, Dubai Design District is a purpose-built community dedicated to promoting and nurturing emerging local talent. In addition to housing design studios, office spaces, ateliers and workshops, d3 will also offer residential, convention and F&B spaces, plus boutique hotels along a waterfront promenade.
NEW ATTRACTIONS
HOTEL DATA 7.8% INCREASE IN SUPPLY
is underway – a 146,000-square-metre development located between Dubai International Convention & Exhibition Centre (DICEC) and Emirates Towers with the initial phase encompassing offices and a 588-room business hotel, scheduled for completion in Q3, 2015.
Dubai Safari: Set to open this year, the 120-hectare safari park near will boast a zoo, butterfly park, botanical garden and golf course. IMG Worlds of Adventure: A theme park featuring the Marvel Universe, the Cartoon Network Zone and several additional entertainment zones, located in Dubailand. Dubai Opera House: Shaped like a traditional sailing vessel, this iconic building will feature a theatre with 2,000 seats. Bluewaters Island: A 210-metre Dubai Eye Ferris wheel, inspired by the UK capital’s London Eye, will be the focal point of this island project.
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DESTINATION FOCUS: DUBAI
LEGOLAND DUBAI WILL OPEN IN 2016
Quran Park: Located in Al Khawaneej, this park will be designed with the Holy book of the Qu’ran in mind featuring many of the 54 plants mentioned in the text, plus a special Islamic garden, children’s play areas, an Umrah corner, outdoor theatre and fountains.
Nakheel Mall: Located on The Palm Jumeirah, this mall will offer five retail levels, a nine-screen cinema, medical centre, fitness complex and a rooftop plaza with fine-dining options. Adjacent to the mall, The Palm Tower will house a five-star 50-storey hotel and residential complex.
Madinat Jumeirah Phase 4: The established Arabian-themed Madinat Jumeirah development is being expanded (phase four) to the tune of S$700 million to include another five-star property, a villa complex, restaurants and retail outlets
MARKET ANALYSIS
Dubai Frame: Opening soon, this structure, resembling a huge picture frame, will be an iconic centrepiece within Dubai’s Zabeel Park and feature a viewing gallery boasting city views.
NEW RETAIL DEVELOPMENTS Mall of the World: Part of the world’s first temperature-controlled city being built on Sheikh Zayed Road, this mall will stake its claim as the world’s largest shopping mall – four times the size of the current record-holder, Dubai Mall. It will also boast the world’s largest theme park, a covered street-shopping concept and 100 hotels. Akoya Drive: Pitched as the Rodeo Drive of the Dubai, Akoya Drive is a 1.3-km strip featuring shops, an outdoor cinema, ice-skating rink and kids entertainment areas. It is part of the Akoya by Damac golf community. 46
HOTEL NEWS ME MARCH 2015
The International Monetary Fund (IMF) predicts Dubai’s economic growth will average around 5.6% over the next six years, driven by large real estate projects and huge spend on infrastructure related to the World Expo 2020.In fact ten mega projects worth a whopping US$240 billion are set for completion over the next 16 years, according to MEED Projects data. The biggest in terms of its value is Meraas Holdings’ Jumeirah Gardens ($89.5 billion), followed by Dubai Holdings’ DubaiLand development ($61 million) and of course, development of the $16.7 billion Dubai World Central (DWC) aerotropolis, home to what will become the world’s largest airport, Al Maktoum International, is also ongoing. Add to these developments a raft of new hotels, with 140 new properties offering 85,000 rooms set to open by 2016; tourism attractions, retail precincts and venues; not to mention the rapid growth of the emirate’s homegrown airline sector; and it’s easy to understand why investors and analysts are more bullish than ever before about Dubai’s future.
INVESTOR SENTIMENT OUTLOOK Dubai remains at the top of the wish list for investors eyeing Middle East markets, according to Chiheb Ben Mahmoud, executive vice president – head of hotels & hospitality, Middle East & Africa, JLL Hotels & Hospitality Group. The firm’s Hotel Investor Sentiment Survey published in December 2014, which tracked investor sentiment for 32 cities, ranks Dubai as one of the top locations in terms of medium-term investor sentiment, along with Casablanca, Amsterdam and Paris. But while developers are optimistic about building in Dubai, with more than 21,000 luxury hotel rooms and serviced apartments expected to enter the market by the end of 2017, attaining Dubai’s goal of attracting 20 million visitors by 2020 will require the emirate to also increase its midscale offering, which is slightly less appealing to investors. There is also concern about where these extra visitors will come from. Dubai relies heavily on the Russian market, but with the depreciation of the rouble and political uncertainty, the number of visitors is expected to fall and it will be necessary to attract visitors from new feeder markets if the emirate is to achieve this goal. “Dubai attracts investors, not because of the requirement of rooms, which would tend to act in the opposite direction as there would be expectation of larger supply, but because of three main reasons: (1) the unique infrastructure; (2) the track record of the entire tourism chain, including retail, entertainment etc., in delivering a complete and coordinated experience;
DESTINATION FOCUS: DUBAI
DATA TOURISM (H1, 2014 FIGURES) TOURISM ARRIVALS: MILLION
5.8
TOP SOURCE MARKET: SAUDI ARABIA TOP SOURCE MARKET: SAUDI ARABIA TOP EMERGING MARKET: CHINA, WITH ARRIVALS UP 26% Y-O-Y
“ DUBAI WILL CONTINUE TO SEE A SUBSTANTIAL INCREASE IN INTERNATIONAL AND DOMESTIC TRAVEL” MARCH 2015 HOTEL NEWS ME
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DESTINATION FOCUS: DUBAI
AL WASL PLAZA, PART OF THE DUBAI EXPO 2020 SITE
NAKHEEL’S PALM TOWER
and (3) continued and consistent focus on tourism as a strategic development driver,” notes Ben Mahmoud.
THE HOTELIER ANGLE Investment in unique infrastructure and mega projects has led global hotel operator InterContinental Hotels Group (IHG) to focus on Dubai as one of its key Middle East markets for expansion. Last year the firm signed a new Holiday Inn hotel and Staybridge Suites at Dubai World Central and this year will witness the opening of the “landmark” 328-key InterContinental Dubai Marina. Pascal Gauvin, chief operating officer, India, Middle East and Africa, IHG, says the new hotels will capitalise on status as a “well-established tourism hub” and cash in on the anticipated increase in visitors to the emirate in the run up to the World Expo 2020. “And with a projected airline capacity of 98 million by 2020, according to Dubai International Airport, Dubai will continue to see a substantial increase in international and domestic travel,” he says. “As one of the largest hotel companies operating in the region, we are in a good position to support this growth.” With the midscale segment currently underserved in Dubai, another global chain, Hilton worldwide is focusing on filling this gap. “We will debut our mid-scale Hilton Garden Inn brand in Dubai in 2015, with the opening of Hilton Garden Inn Al Mina and Hilton Garden Inn Al Muraqabat,” notes Christian Grage, vice president of operations, Arabian Peninsula, Hilton Worldwide. At the same time Hilton is rolling out new upscale properties across the emirate having opened two DoubleTree by Hilton properties in Al Barsha and on Jumeirah Beach in 2014. 48
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CHAIN FOCUS: FOCUS WYNDHAM
WYNDHAM HOTELGROUP Hotel News ME profiles the hotel group’s 2014 achievements, its future goals, plus its planned Middle East pipeline
WYNDHAM GRAND MANAMA WILL OPEN IN 2016
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CHAIN FOCUS: WYNDHAM
Group overview Wyndham Hotel Group, part of Wyndham Worldwide Corporation (NYSE: WYN), is the world’s largest and most diverse hotel company with approximately 7,590 hotels and 655,300 rooms in 71 countries under the hotel brands: Wyndham Hotels and Resorts®, Ramada®, Days Inn®, Super 8®, Wingate by Wyndham®, Baymont Inn & Suites®, Microtel Inn & Suites by Wyndham®, Hawthorn Suites by Wyndham®, TRYP by Wyndham®, Howard Johnson®, Travelodge® and Knights Inn®. The company also has a licence agreement to franchise the Planet Hollywood Hotels brand and provide management services globally. Most hotels are independently owned and operated, but some are owned or managed by an affiliate of Wyndham Hotel Group.
Current MEA properties Wyndham Hotel Group has 39 hotels open and operating across nine countries in the Middle East, in locations spanning the UAE, Saudi Arabia, Bahrain, Qatar, Lebanon, Jordan, Iraq, Kuwait and Oman. The company operates six brands in the region covering all segments: •Wyndham Hotels and Resorts (upscale) •Hawthorn Suites by Wyndham (extended stay) •Ramada (full service midscale) •Days Inn, Howard Johnson and Super 8 (budget) In Africa: Five hotels across Ghana, Morocco, Tunisia and Nigeria under the Ramada and Hawthorn Suites by Wyndham brands.
Company firsts • Wyndham Hotels and Resorts properties will soon debut in the UAE, Bahrain, Saudi Arabia and Kenya. • The company will also launch the midscale TRYP by Wyndham brand in the region, bringing “a cosmopolitan, Mediterranean flair to the midscale segment”. • Hawthorn Suites by Wyndham will debut in Bahrain.
Africa
Wyndham Hotel Group plans to double its presence on the African continent, expanding the Ramada brand into Tanzania, Ethiopia and Kenya. In addition, a Wyndham Hotels and Resorts property will open close to Amboseli National Park in Kenya.
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CHAIN FOCUS: WYNDHAM
BANI HADDAD, REGIONAL VICE PRESIDENT FOR THE MIDDLE EAST AND AFRICA, WYNDHAM HOTEL GROUP
THE HOTEL GROUP’S KEY ACHIEVEMENTS AND MILESTONES IN 2014:
feedback about their properties and benchmark their hotels against their competitors.
The Wyndham Hotel Group marked a number of
In the same year, Wyndham Hotel Group
firsts across Europe, the Middle East, Africa and
also introduced TripAdvisor ratings and reviews
Indian Ocean (EMEAI) in 2014. We:
on all of its proprietary websites such as
• Launched the first Super 8 property in the region
WyndhamRewards.com to help potential guests
- in Riyadh, Saudi Arabia. • Opened the first Hawthorn Suites by Wyndham in Saudi Arabia. • Signed the first Wyndham Garden for the Middle
make more informed decisions based on fellow travellers’ feedback. Wyndham Hotel Group also recently entered a strategic partnership with technology supplier
East, expected to open in the Qatari capital
Sabre. We are now the first large global hotel
in 2017.
company to leverage Sabre’s SynXis Enterprise
• Celebrated the 60th anniversary of our iconic
Platform, enabling us to provide our hotel
Ramada brand, with more than 20 new Ramada
owners with an integrated and automated
hotels opening across EMEAI during the year,
revenue management system that optimises
including new properties in the UAE and
rates, occupancy and revenue per available room
Saudi Arabia.
(RevPAR) to grow market share, as well as enhance
• Signed our first upscale property in Africa - Wyndham Amboseli Golf Resort and Spa. • Launched the Ramada brand in Kenya with Ramada Nairobi. • Announced Wyndham Hotel Group’s first property in the Ethiopian market, Ramada Addis.
TACKLING CHALLENGES AND OPPORTUNITIES FACING THE HOTEL GROUP:
hotel-level security with cutting-edge credit card capabilities to support tokenisation and chip-andpin technology. Technology aside, as the group’s portfolio and geographical presence grows, we need to recruit talented staff possessing skill sets relevant to the regions in which we operate. Wyndham Hotel Group offers an extensive online training platform accessible to corporate
The key challenges facing Wyndham Hotel Group
associates, as well as the associates of our
and the industry largely concern technology,
franchised and managed hotels worldwide. Course
human resources and the political and economic
topics range from leadership training, sales and
stability in some parts of the world in which
marketing to business compliance.
we operate.
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“SOCIAL MEDIA PRESENTS HUGE OPPORTUNITIES FOR HOTELS TO DIRECTLY COMMUNICATE WITH THEIR GUESTS AND TRACK FEEDBACK”
Touching on my last point, political and
Social media presents huge opportunities
economic stability in some parts of the world
for hotels to directly communicate with their
affects occupancy as well as ADRs. We monitor
guests and track feedback and back in 2012
and pre-empt these developments in our markets
we introduced WynReview, our social listening
as much as possible by diversifying our segments
and online reputation management platform.
so that we can compensate should there be a drop
WynReview helps our franchisees and managed
from any given market feeder.
properties efficiently manage reviews not only
A current example is the decline in Russian
on TripAdvisor but also across major online
visitors to several key hotel markets around the
travel agency sites, allowing owners and general
globe such as Dubai, due to the fall in value of
managers to better understand and measure
the rouble.
HOTEL NEWS ME MARCH 2015
WYNDHAM DUBAI MARINA WILL OPEN THIS YEAR
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L a c t a l i s D a i r y P r o d u c t s a n d Tr a d i n g ( M i d d l e E a s t ) L L C - E m a i l : i n f o @ a e . l a c t a l i s . c o m - Te l : + 9 7 1 4 3 6 2 3 0 2 5 MARCH 2015 HOTEL NEWS ME
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CHAIN FOCUS: WYNDHAM
SUPER 8 RIYADH OPENED IN 2014
OBJECTIVES FOR 2015:
Marina, Ramada Resort Dar es Salaam and the Ramada
We are embracing the mobile technology trend
Wyndham Hotel Group is committed to growing its
and Hawthorn Suites by Wyndham hotels in Manama.
and continue to develop more responsive websites,
footprint in the MENA region with an emphasis on
These openings not only introduce new brands to
mobile apps and express booking options, to name
the Wyndham Hotels and Resorts, Hawthorn Suites by
key cities but will see us double our managed portfolio
Wyndham, Days Inn and Super 8 brands. We believe
in the MENA region. This is a clear testimony to our
We also engage with our guests through our
there are still many opportunities in the upscale and
multi-faceted, flexible approach to adding the right
WynReview platform and our social media channels
budget sectors. In addition, extended stay products
hotels in the right locations with the right partners.
such as Facebook, Google+ or Instagram. Social
such as Hawthorn Suites by Wyndham are relatively
but a few.
media platforms not only help us raise brand awareness
new to the market, but will cater to pent-up demand
HOW TECHNOLOGY IS DICTATING THE
and engage in conversations which may drive product
for this offering in certain locations. Several hotel
WAY WYNDHAM HOTEL GROUP RUNS ITS
innovation through direct feedback, but also to recruit
openings are imminent including Wyndham Dubai
BUSINESS AND LIAISES WITH CUSTOMERS:
fresh talent and connect with new suppliers.
Model shift While Wyndham Hotel Group has historically focused on franchise agreements, with 35 of the company’s 39 hotels in the Middle East and all of the company’s properties in Africa operated under this model, the company is increasingly offering management services. Management contracts now comprise more than 60% of the company’s regional pipeline. Through partnerships with other companies within parent company Wyndham Worldwide, such as RCI and The Registry Collection, Wyndham Hotel Group is also in the position to facilitate holistic solutions for mixed-use developments combining hotel bed stock with shared ownership components.
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DECEMBER 2014 HOTEL NEWS ME
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CASE STUDY
Lactalis International
Hotel News ME profiles the international dairy produce company to view its extensive portfolio of hospitality clients and growth strategy
LACTALISINTERNATIONAL
PRODUCTPORTFOLIO
Lactalis is a family-owned dairy group based in Laval Mayenne, in the west of France. In 1933, André Besnier started up his cheesemaking company On the first day he collected 17 litres of milk and produced 35 camemberts: the Besnier company was in business. Since then, the group, which adopted the more international name of Lactalis in 1999, has continued to expand rapidly. Its range of products has grown considerably (cheeses, milk, cream, butter, ultra-fresh, milk powder, etc.), as has the reputation of its products. Lactalis now owns a series of prestigious French and international brands.
Lactalis supplies a variety of dairy products across the region to mass catering companies, hospitality outlets and restaurants, brands include President, Lactel, Picot and Roitelet. Discussing the brands, Fadi Selwan, regional food service manager explains that, “we supply a variety of high-class, high-quality dairy products to so many different platforms throughout the region, coming from France, all of our products are authentically made, so as you can imagine, no kitchen is complete without the basic dairy products, we supply all of those.”
QUICKFACTS
ONGOINGSTRATEGY
The group now employs 55,000 people, and owns more than 200 industrial plants around the world, in 35 different countries. It is the: •Number 1 dairy group in the world •Number 1 dairy and cheese group in Europe •Number 1 milk collector in Europe •Number 1 cheese producer in Europe
For more than 80 years, Lactalis has been dedicated to milk processing and covers all dairy products, from cheese, nutrition and FMCG to Ingredients. Currently, Lactalis is focusing on introducing to the Middle East and GCC regions an exquisite range of high-end specialty cheeses such as Comté,
CASE STUDY
UNIQUE MOODS FOR UNIQUE TABLES
Camembert, Saint Marcellin, Tomme de Savoie, and Beaufort as examples, under various brand names like Président, Société, Lanquetot, Pochat, Corsica, Lou Perac, Le Montagnard, and more. Discussing local plans Selwan explains “It is important for us to remain in the public eye and attend exhibitions suich as Gulfood where we can showcase and highlight our products and services, it is also a fundamental part of what we represent to engage with out clients and suppliers, so we held a cocktail dinner in collaboration with Xavier Thuret, international ambassador of French cheeses for Lactalis and Jean Chauvel, Michelin Star Chef on the 9th of February at the Palace Hotel. We need to continuously show the consumer and food service industry of Dubai that cheese isn’t only for consumption as a dessert or throughout breakfast, cheese is also a food that can be used for high-end cuisine and gastronomy, this is why we have with us this year, establishing chefs coming to Dubai and putting cheese on the map for innovators with cheese.”
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BAHRAJA GENERAL TRADING LLC P.O. BOX: 20197, DUBAI, U.A.E. Phone: +971 4 267 2353 Email: bahraja@eim.ae Created in Germany.
lookseasy.com
RESPONSIBLE BUSINESS
ROTANA EARTH HARMONY HOUSE IN INDIA IS SUPPORTED BY THE ROTANA EARTH PROGRAMME
Rotana recently published its sustainability report for 2014 as part of the group’s commitment to addressing environmental, social and economic priority areas and measuring the progress and performance of CSR and sustainability initiatives undertaken within the framework of its landmark Rotana Earth, the company’s global corporate sustainability platform. Documenting the progress, the report emphasised the hotel chains commitment to CSR initiatives across the region, highlighting that Rotana undertook a total of 273 CSR activities across its 50 properties, raising the equivalent of AED 2 million through cash and in-kind contributions as well as employee volunteering and fundraising. Additionally, Rotana achieved a combined saving of AED 3 million in 2014 from waste management and recycling programs executed across group properties, including over 1,100 tonnes of recyclable waste was diverted from landfill and 74,064 litres of used oil was also recycled. Omer Kaddouri, president and CEO of Rotana, explained, “Rotana is focused on developing innovative solutions to reduce our environmental impact and operating costs. We believe protecting the environment is everybody’s responsibility, and at Rotana our commitment to sustainability extends beyond our own wide-ranging green initiatives to engage and educate various stakeholders, including guests at
our properties on sustainability topics in order to bring about awareness and inspire action.” Kaddouri also added, “In linking sustainability to strategy, Rotana Earth provides a practical guide to achieving our business goals without sacrificing the environment and the ability of future generations to meet their own needs, and it gives us immense satisfaction that we were able to exceed targets and expectations in the very first year of the program’s implementation. Rotana Earth will continue to set the guiding principles for the group as we press ahead with our efforts to reduce our carbon footprint and RASHID CENTRE STUDENTS WITH KINAN AL GHRAOUI, GM, VILLA RIMAL AND RIHAB
Having participated in 273 CSR activities across the region, raising over AED 2 million through initiatives and achieving a 9% water saving in 2014, Hotel News ME profiles the hotel chains upcoming CSR goals for the rest of 2015
integrate green practices into our operations across the value chain to build a more sustainable future for everyone.” Having embarked on a successful CSR programme in 2014, Rotana has lined up two major sustainability initiatives for the coming two years. The first of these involves building on Rotana’s commitment to responsible procurement by developing a responsible procurement code. The hotel chain will also implement a stakeholder engagement plan through surveys and targeted interactions to actively engage with its stakeholders.
RESPONSIBLE BUSINESS
MORE THAN A MILE Setting the pace for other GMs across the region, Michael Nugent, general manager of Mövenpick Hotel Ibn Battuta Gate, is due to participate in the London Marathon taking place in April, consisting of 42.2km, which will then be followed by the 89km South African Comrades Ultra Marathon in May, running a total of 131.2km over the course of two months to raise funds for Crohn’s and Colitis research charity.
MICHAEL NUGENT, GM, MÖVENPICK HOTEL IBN BATTUTA GATE
Nugent’s goal is to raise AED 50,000 to be donated towards research into Crohn’s and Colitis. He knows personally, several young people suffering from this debilitating illness and wants to help in any way he can. Throughout his career in the hotel industry, 54-year-old Nugent has implemented and initiated various corporate social responsibility activities. His simple philosophy is that “if we all do
something, be it big or small, we can ultimately make a tangible difference in our local communities and beyond.” He also wants to inspire all his colleagues to run or undertake their own personal challenges for worthy causes. To contribute towards Nugent’s run and support Chron’s and Colitis Research Charity visit www.justgiving.com/Michael-Nugent54
In-Stock in Dubai
Exclusive Distributor UNIQUE PRECISE INTERNATIONAL Suite No. 1006 • Sidra Tower • Tecom • Sheikh Zayed Road PO Box 120537 • Dubai, UAE Phone: +971 4 4572012 | Fax: +971 4 4572130 info@uniqueprecise.com | www.uniqueprecise.com
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TAKE 10
What makes a great engineer? GEORGE FARES, DIRECTOR OF ENGINEERING, JUMEIRAH ZABEEL SARAY DISCLOSES THE TOP 10 ESSENTIAL SKILLS EVERY ENGINEER REQUIRES TO MAKE IT SAFELY THROUGH THE DAY
With over 25 years experience working with Jumeirah, George Fares who is originally from Lebanon holds a Masters Degree in Electro Mechanical Engineering. Fares first came to Dubai joining the Jumeirah team in 1988 with the intention of only staying for one year and joined the team at Chicago Beach Hotel as assistant chief engineer. Shortly after, he became heavily involved in the demolition of the Chicago Beach Hotel, Fares then took on the challenge of assisting in the construction and pre-opening of Jumeirah Beach Hotel. Following this, in 1999, he moved to Burj Al Arab where he took on the role of resident engineer. Still with Jumeirah today, Fares imparts on the precise knowledge and skill it takes to develop within the complex industry of engineering and the things they didn’t teach the engineers about in college.
“HAVING DEEP PRACTICAL KNOWLEDGE OF THE INDUSTRY IS ESSENTIAL, THERE IS NEVER A FAILURE IN ENGINEERING, IT IS EITHER A SUCCESS OR AN EXTREMELY VALUABLE LESSON LEARNT”
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TAKE 10
TECHNICALLY INCLINED In a world of continuous development, it is an extremely desirable skill to keep up-to-date with the latest technological advancements. To know about the latest trends and technologies within your industry as technology advances every day in engineering and these advancements happen very quickly. Keeping informed about these advancements and trends often means getting a job done quicker and enhances ones skills, having deep practical knowledge is also essential, There is never a failure in engineering, it is either a success or an extremely valuable lesson learnt.
ENTHUSIASM Confidence and enthusiasm in solving all the technical and non-technical related matters are highly and possessing the eagerness and passion to execute a job always encourages learning on a daily basis. This also entails being constructive and dealing with the challenges being an engineer consist of, you can’t be afraid of getting your hands dirty at times.
MANAGEMENT I have been with Jumeirah for more than 26 years and along the way, there have been so many achievements as well as challenges. Here, I learned that regardless of the circumstances a lot of things are dependant on your attitude and perception of things. So my advise to other engineers within the hospitality industry is to stick with it, this way you learn so much and grow within your field with one organisation.
TRAVEL You must be flexible and able to travel, demolitions or architectural designs are influential from all over the world, which can inspire any engineer and bring back ideas from another country back to Dubai.
ATTITUDE Willingness to learn and to be at my best is very important especially that Engineering is the Heart of the Building where we tend to make everything functional so as not to affect the operations.
STRONG LEADERSHIP Being a director of engineering means that you are not only responsible you’re your work, but also your team and the foundations of the hotel in which you are working for. Knowing that every second counts, there is therefore no time to waste in delaying a project, sometimes you have to be firm to get things done.
DEADLINES Meeting and delivering projects in a timely fashion is so important but executing and completing everything earlier than the deadline is even more essential with all due respect to the quality output of the project, because if you miss a deadline, a project may be left undone which has the tendency to create a domino effect.
COST CONTROL Strictly monitoring the budget, ROI and P&L are all key factors of the job, it is very important to ensure that the engineer does not jeopardise the budget and is able to manage well by finishing on time, as delayed jobs can severely damage the budget and set back on other pending jobs. Studying the market and doing comparative analysis tables also assist in managing the budget, this was you can compare where others are sourcing from too. RESULT ORIENTED Whether it be a director of engineering or an engineer, it is imperative to ensure that the property is well maintained to the highest level of standards, in order to be results orientated we must be mindful to the Health, Safety and Environmental standards that are required.
DUTY OF CARE To be an engineer you must be a team player, you become a family, jobs can often be dangerous, so sourcing the correct staff on the team means you become a united front, the director of engineering has to manage a place where colleagues, guests, partners, tenants and contractors all are safe to work and roam. Further to this, the project has to be environmentally friendly and adhere to local standards.
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MEET THE EXPERT
Looking beyond RevPAR to assess revenue performance Maximising a hotel’s revenue streams can prove a complex exercise
MARIANO FAZ, HEAD OF ASSET MANAGEMENT AT TFG ASSET MANAGEMENT.
Measuring a hotel’s revenue performance has become a hot topic of debate – one that generally divides asset managers and operators. Operators measure performance based on industry benchmarks, most notably RevPAR (revenue per available room), while asset managers will consider other factors in order to formulate a deeper analysis. While RevPAR is a useful tool for assessing performance, it does not provide deeper insights and nor does it challenge an operator to strive to exceed industry benchmarks. Hotel revenue is generated from a significant number of sources. Operators prefer to focus on RevPAR because they generally consider these other factors a distraction. In other words, they are normally very protective of their income strategies. Asset managers are best placed to assess the various revenue streams and to identify any gaps in performance. They are therefore ideally placed to play a key role in formulating the hotel’s commercial strategy and to work with the operator to best leverage the property’s attributes to generate maximum income. Ultimately, the greatest value is created when the respective goals of ownership and management are aligned. Measuring revenue performance is a complex exercise. A single KPI is not a sufficient tool in this respect. Additional performance indicators should 62
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be considered, such as the displacement effect, identifying optimum market segmentation and the acquisition cost of particular bookings. Displacement is the most complex but potentially useful tool for determining the relative value of a certain business proposal. Hotel operators may consider this factor in certain room allotments without considering the displacement consequences and the potential knock-on effect on overall profitability. Identifying optimal market segmentation is another critical aspect. The average room rate is broken down into different market tiers. Establishing goals for each of these tiers is important when trying to formulate an overall strategy. Revenue management refers to the process of selling a room at the right price and at the right time to the right customer through the right channel. It primarily focuses on price strategies, leaving aside the cost of acquisition of a particular booking. In an increasingly fragmented market shaped by emerging technologies, hotel operators must sacrifice a portion of their revenues, whether through price reductions or commissions to third parties in order to remain competitive. Therefore, the cost of acquisition is becoming a key consideration when determining the feasibility of any type of deal. Ultimately, the asset manager’s revenue strategy should be fully integrated with the owner’s objectives. The hotel operator and the asset manager
should be fully integrated with the owner’s objectives. The hotel operator and the asset manager should embrace the same approach and strive to meet agreed targets. This joint venture approach will ensure a healthier relationship between owner and operator and guarantee their energies are focused on the same performance measures and outcomes.
ABOUT THE FIRST GROUP AND TFG ASSET MANAGEMENT The First Group (www.thefirstgroup.com) is a British-owned global property development company based in Dubai, with an exclusive focus on creating innovative, iconic hotel projects. The First Group Asset Management (TFG Asset Management - www. tfgassetmanagement.com) assists with every aspect of a completed development to ensure property investors get maximum return on investment. Head of asset management, Mariano Faz, has more than 12 years of expertise in global hospitality and real estate markets and has held a number of high-level positions in hotel operations and management, business development, and hotel asset management for hotel owners.
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INTRODUCING THE GM LEADERS CONFERENCE
INTRODUCING PRESENTED BY
THE GM LEADERS CONFERENCE PRESENTED BY
BRINGING TOGETHER GMS FROM ACROSS THE REGION FOR A DAY OF WORKSHOPS, PANEL DISCUSSIONS AND DEBATE BRINGING TOGETHER GMS
FROM ACROSS THE REGION FOR A DAY OF WORKSHOPS, PANEL GIVING DELEGATES A PRIME DISCUSSIONS AND DEBATE OPPORTUNITY TO NETWORK AND DISCUSS THE LANDSCAPE GIVING DELEGATES A PRIME OF THE EVER CHANGING OPPORTUNITY TO NETWORK HOSPITALITY INDUSTRY AND DISCUSS THE LANDSCAPE OF THE EVER CHANGING HOSPITALITY INDUSTRY MONDAY 1ST JUNE 2015
64
SPONSORSHIP OPPORTUNITIES Diarmuid O’Malley SPONSORSHIP dom@bncpublishing.net OPPORTUNITIES +971505597339 Diarmuid O’Malley dom@bncpublishing.net HOTEL NEWS ME MARCH 2015
SPEAKING OPPORTUNITIES Sophia Soltani sophia@bncpublishing.net SPEAKING OPPORTUNITIES Sophia Soltani sophia@bncpublishing.net
REGISTER TO ATTEND Mark Anthony Monzon mark@bncpublishing.net REGISTER TO ATTEND Mark Anthony Monzon mark@bncpublishing.net
MEET THE EXPERT
THE IMPORTANCE OF THOROUGH REFERENCES Piers Burton, executive director at boutique executive search firm Eagles Spearing Consulting, ponders the need to dig very deep with the reference process to ascertain the suitability of candidates that on paper look right for the job under consideration
It’s a major concern here in the GCC that troublesome or underperforming employees are often encouraged to resign and leave quietly from their company, rather than face the more negative impacts of dismissal. By agreeing to resign, it seems to be assumed that the employee’s exit can be smoother for all parties and, as part of the deal, assurances are given that a positive reference will be supplied when they are applying for their next position. This is mendacious in every respect. Conversely, due to lack of regulations in the region about how information can be shared, good employees who look to further their careers by applying for roles in other companies can be exposed to negative references from former employers who feel aggrieved that their good employees are leaving them. Such griev-
ances can lead to an inaccurate statement about a former employee’s capabilities and reliability, so reducing their chances of obtaining the new position they are being considered for. As recruiters, we take the responsibility of obtaining a range of fair and accurate references very seriously. It is our obligation to dig beneath the politics and to present candidates who are truly suitable for the role that they are being considered for, avoiding the cost and upheaval of hiring mistakes. We largely avoid contacting the references listed on a candidate’s CV, preferring to find others who have worked alongside the individual and asking them for candid feedback. Usefully, we always ask the questions “Does the departure of this individual present you with a major problem, or will his / her exit not be of any significant impact?” and “Would you hire this person back into your company if he / she were to reapply?”. The answers to these questions tell us enough about a candidate’s potential, enabling us to present them to our clients with conviction about their capabilities. MARCH 2015 HOTEL NEWS ME
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SUPPLIER FOCUS
SPOTLIGHT ON BATHROOMS Taking a look at the latest trends seen to be appearing in bathrooms across the hospitality segment in the Middle East
The experts
ANDREAS DORNBRACHT, CEO, DORNBRACHT WORKS IN THE FAMILY RUN BUSINESS WHICH LAUNCHED OVER 60 YEARS AGO BY ALOYS F. DORNBRACHT
SOPHAY YOUNG HAS BEEN WITH THE GROUP FOR SIX YEARS AND IS SENIOR PROJECT DESIGN CONSULTANT FOR BAGNODESIGN, SANIPEX
THORSTEN BIES, SALES DIRECTOR BATHROOM AND WELLNESS AFRICA/INDIA/NME, VILLEROY & BOCH, HAS BEEN WITH THE COMPANY SINCE 1994 WORKING IN VARIOUS DEPARTMENTS
BAGNODESIGN
ANDRE WINOGRADSKY, HEAD OF GULF, GEBERIT INTERNATIONAL SALES AG HAS BEEN WITH GEBERIT SINCE JANUARY 2014
What trends are currently being seen in bathroom design? Bathrooms with uninspired tiled interior, white lighting and cold, stark finishes are a thing of the past. Warmth finds its place in the bathroom in the
“PART OF THE SANIPEX GROUP AND ESTABLISHED IN 1995, BAGNODESIGN IS AN INTERNATIONAL DESIGNER AND MANUFACTURER OF CREATIVE BATHROOM SOLUTIONS. WITH A PRESENCE ACROSS EUROPE, THE MIDDLE EAST, CENTRAL AND SOUTH ASIA, BAGNODESIGN HAS DEVELOPED AN ENVIABLE INTERNATIONAL REPUTATION FOR SUPPLYING INNOVATIVE AND HIGHLY FUNCTIONAL SOLUTIONS FOR THE MODERN BATHROOM – YOUNG”
form of wall textures, furniture, clever lighting and creative flooring. Wood is often used to create a relaxed mood, offering a subtle, warm element. Our new range of Metreaux furniture, which is available in Balinese Teak and African Wenge, lends itself very well towards this trend and nowadays mirrors are considered as feature pieces instead of just a functional item. There are many variations, ornate, backlit or full length. With the increased use of wallpaper in the bathroom, using backlit mirrors will allow the wallpaper to really shine! Additionally, granite was previously the go-to material for vanity tops but now quartz is a fresh, new material being introduced into the bathroom. This trend is not only limited to counters but is also used to produce velvety-smooth bathtubs and basins. Interesting metallic finishes are another big trend for 2015. We are seeing a move away from regular chrome finishes toward warm coloured copper, brass and oil rubbed bronze finishes. Stainless Steel is also proving very popular right now. Who are some of your hospitality clients? To name a few, the JW Marriott Marquis Hotel, Dubai, Yas Viceroy, Yas Island, The One and Only, Palm Dubai, Qasr Al Sarab Desert Resort by Anantara, Kempinski and Raffles Hotels in Dubai. What should buyers look out for in 2015? Following the huge success of last year’s event, we are pleased to announce that the BAGNODESIGN Dealer Summit is back and will take place between 19th-21st April in our BAGNODESIGN Academy in Dubai. Delegates will be the first to see and hear about several new product ranges being
METREAUX MIXER
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launched by BAGNODESIGN over the coming months, additionally, the Summit will coincide with our 20th Anniversary.
SUPPLIER FOCUS
DORNBRACHT “DORNBRACHT EMBODIES THE VALUES AND BOUTIQUE CRAFTSMANSHIP OF A TRADITIONAL FAMILY COMPANY WHILST EMBRACING MODERN TECHNOLOGY AND AVANT-GARDE DESIGN TECHNIQUES TO REDEFINE BATHROOM DESIGN. DURING OUR 65-YEAR HISTORY WE HAVE DEVELOPED SOME OF THE MOST ARCHETYPAL AND RECOGNISED FITTINGS FOR THE BATHROOM SEGMENT. OUR PRODUCTS ARE AN EXPRESSION OF A DISTINCTIVE BATHROOM AND KITCHEN CULTURE, WITH A FOCUS ON CLEAR, PURE FLOWING WATER” - DORNBRACHT ” What are the current trends are being seen in bath-
greater vitality while purifying the mind. By being
will also be available in the elegant ‘platinum matt’
room design?
able to manipulate the pressure, temperature and
finish – giving you even more opportunity to be cre-
At Dornbracht we constantly search for answers, how
volume of water with a simple touch, we can create
ative in the bathroom with IMO.
does water influence our state of being? How should
different therapeutic effects on the body, which can
a fitting be designed so that it not only perform its
positively impact our mood and emotions. Based on
Which hotels do you supply to?
function, but also conveys a sensation? We regularly
Dornbracht’s Smart Tools, Smart Water is an intel-
One of Dornbracht’s most recently completed proj-
explore and experiment.
ligent system that networks the components in the
ects was Four Seasons Resort Dubai, Jumeirah Beach,
We let ourselves be inspired by artists, architects
bathroom and kitchen with one another, while con-
the resort that captures the city’s energy and excite-
and designers, we begin to define the details: aesthet-
veniently simplifying and individualizing the applica-
ment in a glamorous new beach resort. Dornbracht
ics, health, intelligence, and intimacy. In the digital
tions involved.
has provided the resort with luxurious bathroom ac-
age, our needs in the bathroom are changing, and so are our ideas and products. Modern technologies have the power to simplify
cessories What are the latest products being seen within the market?
Could you name a few of your hottest products?
and individualise our everyday lives and Dornbracht
In addition to a new luxurious platinum matt finish,
The SensorySky is extremely popular as it provides
has applied this vision to reshape the way we interact
Dornbracht has added new products to the already
the feeling of showering in the open air, the wide flat
with water. By applying intelligent control technolo-
popular IMO series, giving more creative freedom and
rain panel has separate shower fields for head sprin-
gies in the bathroom and kitchen our experience with
design opportunities. With a modern design and uni-
kler, body sprinkler and rain curtain, a cold-water fog
water is made easier and more flexible, bringing more
versal appeal, IMO is the bathroom fitting to harmo-
nozzle and light and fragrance functions. Sensory Sky
comfort to our everyday lives.
niously fit into every lifestyle and suit any design taste.
provides a selection of three pre-programmed cho-
A three-hole basin mixer and a new single-lever ba-
reographies including the READJUST sharpens the
What new technology has Dornbracht introduced?
sin mixer with a raised spout have recently been added
senses with mist, warm rain and a pleasantly soft dry
Through the SMART WATER vision, Dornbracht
to the product portfolio, adding a little extra to the
forest fragrance.
redefines our bath experience and transforms our time
shape of the washbasin.
RELEASE is as cleansing and liberating as intensive
in the bathroom into an individual ritual. A source
A tissue holder with cover and a towel bar round
summer rain – accompanied by a fresh, tropical-like
of spiritual strength, water is a living element, one
off the product range. In addition to the high-gloss
fragrance. REJOICE protects, envelops and stabilises.
that connects us with nature, providing relief and
‘polished chrome’ finish, the entire series of fittings
Water drops sparkle in all the colours of the rainbow.
SENSORYSKY
SUPPLIER FOCUS
GEBERIT INTERNATIONAL What are the current trends seen in hotel bathroom
a hydraulic servo lifter, which is a slim plate made
Which countries do you supply to?
design?
of glass or stainless steel, floating millimeters from
The Gulf regional office is in Dubai, across the GCC
We see the trend towards more relaxing and comfort-
the wall, without any buttons or knobs. Everything
Geberit is very well positioned investing in the region
able bathrooms. Building quality has dramatically
a style-savvy person needs for actuating a dual flush.
for a sustainable long term growth. We have the right
improved so acoustics within buildings is of utmost
Featuring servo support, a small pulse is all it takes for
people in the right place to expand as the countries
importance. People now look to upgrade and renovate
the hydraulic servo lifter located in the cistern service
develop.
bathrooms using acoustic pipes and quiet fill valves in
opening to activate a flush with virtually no noise at
Who are your hospitality clients? Geberit products
the toilet cisterns, which allow acoustic levels in living
all.
can be found in numerous hotel chains. (Hilton, Fair-
spaces to be reduced dramatically.
mont, Marriott, Holiday Inn, Four seasons, KempinWhat are the latest products?
ski, Ritz Carlton, Meridian, to name just a few).
How have bathroom styles changed?
Geberit is always improving its current products with
Today's hotel bathroom has evolved into a place of
new innovations, and maybe it is not always obvious,
Could you name a few of your hottest products?
relaxation and a retreat, people look to the bathroom
but there is a lot of sustaining innovation happening
Our best sellers to the hospitality industry include
to luxuriate after their day in a fast pace life. More
in our product portfolio every year. Be it with new
Geberit cisterns and mechanisms and the touchless
and more, people look for the spa element in the hotel
designs for push plates or self-sustaining electronic
sensor faucets. Lavatory taps must be hygienic, easy
bathroom. Cisterns are now increasing being placed
faucets. Our shining star will be the new flagship of
to clean and safe in order to handle the extreme stress
behind the wall, still allowing access through the ac-
our Monolith range called Monolith Plus with odour
they are subjected to in semi-publicly and publicly ac-
tuator plate but creating clean
extraction built in, electronic flush, ambient lighting
cessible sanitary areas. By installing touchless Geberit
with sensor. A few new products already released is the
lavatory taps, you provide your customers with eco-
What new technology have you introduced?
AquaClean Sela Shower Toilet, Monolith Plus module
nomical and durable solutions that exceed the high
We have introduced the Actuator Plate, actuated by
for WC, and the Omega concealed cistern range
expectations in this area.
“PRECISION, KNOW-HOW AND PLEASURE IN INNOVATION CHARACTERISE GEBERIT PRODUCTS AND SYSTEMS, AND HAVE BEEN CREATING QUALITY OF LIFE FOR GENERATIONS SINCE 1874.OUR ENGINEERS AND PRODUCT DESIGNERS ARE REPEATEDLY FOUND ON CONSTRUCTION SITES WITH MEP. TO NAME A FEW, OUR PRODUCT LINES COMPRISE OF SANITARY SYSTEMS, INSTALLATION SYSTEMS, CISTERNS AND MECHANISMS”
- WINOGRADSKY
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SUPPLIER FOCUS
VILLEROY & BOCH
What are the current trends seen in bathroom design? There is not just one powerful trend which determines bath-
“FORMED IN 1748 IN METTLACH IN GERMANY, VILLEROY & BOCH IS A LEADING CERAMICS MANUFACTURER AND ONE OF THE MOST IMPORTANT INTERNATIONAL PREMIUM BRANDS IN THE AREAS OF BATHROOM AND WELLNESS, TABLEWARE AND TILES. WE OFFER INNOVATIVE PRODUCT AND FURNISHING CONCEPTS FOR PRIVATE CUSTOMERS AND PROPERTY DEVELOPERS. USING A VARIETY OF STYLES” – BIES
room design and equipment. In fact, there are various concepts and trends that have to be taken into account. In 2015 features like sustainability, hygiene, and comfort are all topics Villeroy & Boch is focusing on when it comes to bathroom design. Another aspect gaining more importance is the demographic change. People are getting older and want to live in their own homes as long as possible, therefore the private bath has to be designed in a way to accommodate this. How have bathroom styles changed? The bathroom was once a purely functional space for personal care. Today, it represents wellness, comfort and relaxation, which we see as people begin to place more emphasis on design and quality elements for their bathroom. What new technology has Villeroy & Boch introduced to the market? In 2013 Villeroy & Boch introduced its new DirectFlush technology, which is currently very successful. DirectFlush WCs are rimless and therefore the conventional flushing rim is replaced with an intelligent water flow that rinses the interior of the bowl, without over-splashing. The rinsing of the bowl on each and every flush and the prevention of over-splashing are guaranteed by the special splash guard on the upper edge of the bowl and the higher positioning of the water jets. What are some the latest products Villeroy & Boch has introduced to the market? With our new collection Vivia, launched at the ISH 2015 exhibition, we have focused on the current demands for bathroom design matched with comfort. The demanding customer expects bathroom products and equipment with sophisticated functionality for easy and convenient handling and a high level of user convenience, which is also pleasing to the eye. Vivia combines a timeless design with ingenious extras, providing more comfort and well-being in the bathroom. It provides stepless showering comfort with a spacious shower area in which a practical shower panel and several hidden functions have been incorporated. Who are your hospitality clients? In the professional business Villeroy & Boch is working with the key architects, interior designers and planners. In the Middle East our hospitality clients include major hotels such as Four Seasons, Bahrain, Kempinski, Hilton Doha, Ritz Carlton, Grand Hyatt, The Address, Meydan (Dubai), and Fairmont. Could you name a few of your hottest products? One of our hottest products is the new Squaro Prestige bath tub. Hand-fitted real wood veneers refine the freestanding Squaro Edge 12 baths, turning them into unique baths that
VILLEROY & BOCH MEMENTO RANGE
fulfil the most discerning demands. Each product is elaborately hand decorated in a German manufactory.
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SUPPLIER SUPPLIER FOCUS FOCUS
CeramicPlus: To repel dirt that quickly
accumulates through daily use, Villeroy & Boch has developed CeramicPlus a finish for all ceramic surfaces. This ceramic surface actively repels dirt and is easy to clean even if limescale residue can be easily removed on a CeramicPlus surface without the use of aggressive cleaning agents. nigel.lehwald@villeroy-boch.co.uk villeroy-boch.com
DirectFlush: Instead of the customary rim, DirectFlush Biarritz: Bringing a sense of French chic to the is a rimless toilet which channels the water to ensure the toilet bowl if flushed thoroughly will avoid oversplashing, which is prevented by a special guard at the top of the bowl, as well as by the higher position of the water jets.
classic bathroom, Biarritz from BAGNODESIGN has smooth contours, a variety of finishes with simple to operate crosshead controls with a curved spout. Biarritz comes with a choice of basin mixers, a deck mounted or floorstanding bath shower mixer.
nigel.lehwald@villeroy-boch.co.uk villeroy-boch.com
bagnodesign.org info@bagnodesign.org
BATHROOMS
Full set: A long tray with a side open box attached Power & Soul: Characterised by their fluid, organic Grandera: Stylistically, the Grandera collection on top for carton boxed amenities. This item is for a complete setup in five star bathrooms encasing the material of brass, silver plated and a hammered, glossy finish.
sales@baal.com.lb baal.com.lb
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silhouettes, GROHE Power & Soul showers come with a choice of up to four innovative spray patterns and the 190 mm shower head has a choice of three sizes of hand shower, ensuring a match for every installation need.
can be combined with a wide range of bathroom furnishings, with the added flexibility of two colours, chrome and chrome gold thanks to GROHE Star Light technology, not only will the fittings retain their shine in the long run but they are also extremely resistant to dirt and scratches.
info-uk@grohe.com grohe.com
info-uk@grohe.com grohe.com
SUPPLIER FOCUS
MEM Refinement: With its new Cyprum finish,
Dornbracht has applied the growing copper colour trend to the bathroom, initially exclusively for the MEM series. 18 carat pink gold and copper are used to produce this highly reflective finish, injecting it with a fine and exquisite luster. dornbracht.com dornbrachtme@dornbrachtgroup.com
Footbath: The Foot Bath combines different jet types, Metreaux: The centerpiece of Metreaux is
comfort functions and pre-programmed scenarios to the freestanding bath, generously deep for a revitalise, refresh and stimulate for a warming, relaxing relaxing soak and made from BAGNOQUARTZ, a composite stone that is robust and ultrafeeling. durable. With all the benefits of natural stone, BAGNOQUARTZ has a satin matt texture that is smooth to the touch and maximises comfort. dornbracht.com dornbrachtme@dornbrachtgroup.com
info@bagnodesign.org bagnodesign.org
PRODUCTS YOU SHOULD KNOW
Polyresin: This set of black frost finish polyresin
Hotel Collection:
The BAGNODESIGN Hotel accessories comes with a sandy rubber texture and range has been designed with the needs of hotel is accumulative a combination including a tissue box, cotton bud box, amenity tray and a soap dish for guests in mind and covering every requirement for the hotel bathroom, including tissue bathroom accessories within a hotel. dispensers, shaving mirrors, towel racks and even shower seats. sales@baal.com.lb baal.com.lb
info@bagnodesign.org bagnodesign.org
Self-supporting power supply: AA small generator makes the touchless taps independent from the mains power supply or battery power. This system reduces the ecological impact down to 50% compared to the use of batteries and 80% compared to an electrical connection. The ideal solution for sustainable projects, all settings are programmed via the Geberit Service Handy. sales.gulf@geberit.com geberit.ae
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MARKETPLACE
MARKET PLACE The supplier and buyer roundup of news, products and services
5 MINUTES WITH…
WHO: MANFRED POHLSCHMIDT, MANAGING DIRECTOR, HUPFER
FROM: HUPFER
WHERE: GULFOOD
TELL US A LITTLE BIT ABOUT HUPFER? Hupfer is more than 45 years old now and I have been with the company since 1978.
At Hupfer we pride ourselves on being a highly skilled manufacturer and supplier of top-quality products made from stainless steel for business sectors like commercial catering equipment.
We have been exhibiting at Gulfood since 1996 and our first customer was TSSC back then but today we are working with all major catering companies here in Dubai showing how we have grown.
WHAT PRODUCTS ARE YOU EXHIBITING AT GULFOOD? One of key sellers is our shelving range, and at this year's Gulfood , we are pushing new innovations within this range.
PROJETS PRESTIGE ANNOUNCES 2015 DATES Bringing together hospitality suppliers and buyers from across the MENA region, Europe, Africa and Asia, Projets Prestige has announced that the conscientious industry networking event will take place on the 3rd and 4th of December 2015, in Istanbul, Turkey. Yumna Chabrol, event director, tells Hotel News ME about the upcoming edition of the event, “ Projets Prestige unrolled very smoothly and beyond our expectations for this first renewed version: we had repositioned the event on the high end segment of the hotel market and on the contract business. More than 1150 face to face meetings took place during the 48 hours and we gathered a total of 754M€ of renovation and construction projects for four-five-star hotels.” Discussing the success of last year, Chabrol elaborated on the upcoming event highlights, saying, “We will be having 140 - 70 suppliers and approximately 70 buyers and there will be more private meetings between the buyers and suppliers, there is quite a lot of opportunity to be benefited from.” Naming a few suppliers, Chabrol explained that, “Artemide, Astro Lighting, Moroso, Halo Creative Design, Parsua, Niko, Hydropolis and Ligne Roset” are a few of the esteemed suppliers due to attend the 2015 edition of the event.
We also supply and are exhibiting transport trolleys and stacking equipment for the catering and hospitality sectors. Additionally, we provide cooling units, kitchen furniture, and induction technology to the industry . WHICH AREAS OF THE GCC ARE YOU CURRENTLY LOOKING TO GROW IN? Saudi and Kuwait especially as there is much room for growth in these sectors.
ATTENDEES FROM THE 2014 EDITION OF PROJETS PRESTIGE
MARKET PLACE
COFFEE MOMENTS SIGNS EXCLUSIVE DEAL WITH BONCAFÉ MIDDLE EAST Thamer Abdallah Baeshen, CEO and owner, Coffee Moments came together at Gulfood 2015 with Tony Billingham, CEO, Boncafé Middle East to sign an agreement for the KSA exclusive distribution. Boncafé Middle East LLC signs and appoints Coffee Moments as its exclusive distributor for Boncafe products for the territory of KSA. Coffee Moments operates in all 3 regions Riyadh, Jeddah and Dammam, commenting on the new partnership, Baeshen explained, “expanding its operations to provide coffee machines with full after sales service and maintenance of the highest standards we turned to the experts in the industry, Boncafe Middle East.” Coffee Moments will now further expand its operations by providing a ‘one stop shop’ coffee solution by adding coffee machines to its product portfolio, providing after sales service and maintenance facilities to its already successful coffee supply business module.
THAMER ABDALLAH BAESHEN, CEO AND OWNER, COFFEE MOMENTS AT GULFOOD 2015 WITH TONY BILLINGHAM, CEO, BONCAFÉ MIDDLE EAST
PRODUCT PLACEMENT AIGNER: To set things apart and spice up in-room products, Aigner No.1 Oud encompasses aromatic tones, offering a mysterious fragrance, which takes inspiration from Middle Eastern traditions. Opening with spicy tones of coriander, cinnamon and nutmeg for a dramatic entrance, the scent then moves into its floral heart with jasmine, rose and violet with a hint of Clove. diversified.ae sales@diversified.ae
Finest bedding...
Since 1920
FINEST BEDDING MADE IN GERMANY Mühldorfer GmbH & Co. KG · D-94145 Haidmühle · T +49 8556 96000 · www.muehldorfer.com
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SUPPLIER EVENT
QUICK BITE VALRHONA: New to the chocolaty collection this year, Valrhona has launched Biskélia 34%, Chocolatey and Toasted Biscuit, plus Azélia 35%, Hazelnut and Chocolatey. The Biskélia 34% consists of fresh, smooth milk chocolate which gives way to warm notes of toasted biscuit and caramel, enhanced by a touch of salt, and the Azélia 34% is a combination of chocolate, milk and hazelnuts, and can be used for chocolate bonbons, tablets or bars, ganache, desserts, ice cream and sorbets. valrhona.com eugenia.ferreira@valrhona.fr
MKN GULFOOD EVENT Each year Gulfood connects suppliers and buyers alike from across the globe to network and engage with likeminded individuals, at the hope of expanding their business development strategies and revenue statistics. Throughout this period of time, it is also perceived as a valuable occasion in which to gather together select individuals to celebrate achievements and encourage new business opportunities. In sync with the networking opportunities, MKN not only exhibited in the 2015 Gulfood showdown, but also chose to celebrate its clients, partners, consultants and end-users at the Nay restaurant & Lounge, DIFC. Elias Rached, export department, regional director, MKN praises the success of the event, “ We witnessed a huge number of visitors at Gulfood, and many of our loyal existing clients. During this period, we had a successful evening at Nay Restaurant & Lounge where we enjoyed food, drinks and live music. It was a humble way to thank all our business partners for their continuous support and commitment to MKN.”
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COVER STORY
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MEET THE SUPPLIER
ARECONT VISION Sanjit Bardhan, director, Middle East, Africa & Indian Subcontinent, Arecont Vision discusses the companies latest innovations in surveillance technology
Could you provide a description of your company? Arecont Vision manufactures high-performance megapixel IP cameras and associated software. Our products are made in the USA and feature low-cost parallel image processing architectures MegaVideo and SurroundVideo that represent a drastic departure from traditional analog and network camera designs. All-in-one products such as the MegaDome, MegaView and D4F/D4S/D4SO series provide installer friendly solutions. Compact JPEG and H.264 series of cameras address cost sensitive applications. These innovative technologies enable Arecont Vision to deliver multi-megapixel digital video at IP VGA camera price points.
What products and services do you provide to the hospitality industry? The hospitality vertical is one of our largest and most successful areas of business globally. In the Middle East, Africa and India regions, we have successfully implemented our solutions to some of the best-known chains. It is hard to point one particular product line, as all our product families have been accepted with very strong results. Having said that, I must mention that our panoramic technology (SurroundVideo®) has been a door opener for us. All our hotel references utilise our panoramic technology, and can vouch for the performance.
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What does your company offer that other suppliers in your field do not? We have one of the most diverse ranges of products in the IP Surveillance industry. Our diverse product range has a bevy of unique products that can add tremendous value to our growing customer base. Our products such as the SurroundVideo series, provides users with massive fields of view to capture more detail with fewer cameras. With fewer cameras on the network, there is a huge reduction on other systems like cables, network, civil work, labour and maintenance. Our product offering is unique, and something that all our customers appreciate. We provide a great return on investment and thus have very strong customer retention. How well did your company performed over the last year? We grew dramatically, and thus made significant investments in the region. Our Manufacturing representatives who have grown significantly as well closely support our team, all this success boils down to great products, technology and customer-support.
ARECONT’S
HOSPITALITY CLIENTS
FOUR SEASONS HILTON INTERCONTINENTAL ROTANA SHERATON
WHAT’S NEW? THE 4K SURROUND VIDEO OMNI MEGABALL PANOMORPH
What is the most popular product that you supply to the industry? Our SurroundVideo and MegaVideo series are the most popular products within our hospitality clients. The SurroundVideo Omni is of particular interest in the SurroundVideo series, due to the application needs that it addresses. What growth do you anticipate to see over the course of the year? 2015 is expected to be yet another strong year for Arecont Vision in the region. We have upscaled our regional resources, and now have a very strong support base. We have always been consistent with our growth, and this year, we expect the same.
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
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LAST WORD
COMPETITION The final say
To be in with a chance of winning 6 Spiegelau style glasses and 6 Spiegelau style flutes, simply answer the question below:
Mark Griffiths, senior vice president, regional operations for Middle East and Africa, Kempinski Hotels, shares his views on a career outside of the hospitality industry.
“If I wasn’t in the hospitality industry, I’d definitely work in sports. I am a big football fan and it’s an exciting industry with global appeal and opportunities.”
‘The company that supplies Spiegelau glassware, is also the same company that supplies Dudson and Revol’, which company is it?’ Email your answers to hnmesocial@bncpublishing.net with the subject line ‘competition.’
Room with a view THIS MONTH’S ROOM WITH A VIEW GOES TO THE PANORAMIC VIEWS OF MARINA BAY IN SIGNAPORE FROM THE ICONIC RITZ-CARLTON
The art of luxury comes to life at The Ritz-Carlton, Millenia Singapore, where an impressive collection of contemporary art, unobstructed views of Marina Bay and a location near popular attractions such as Gardens by the Bay, Singapore Flyer and Esplanade. All rooms come with panoramic views of the Marina Bay, Singapore river or city skyline, and for art lovers, unlimited access to the hotel’s 4,200-piece contemporary art collection, including works by Frank Stella, Andy Warhol and Dale.
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
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luxury hotel& restaurant
For over 60 years IVV, Industria Vetraria Valdarnese represents Italian Style and quality in the field of glass production offering elegance and style, classic and contemporary design to cater to every need at home as in professional hospitality. A truly comprehensive offer of exclusive Made in Italy serveware, drinkware, tabletop and decorative pieces ideal for all dining, serving and entertaining occasions. IVV the House of Italian glassware.
IVV Exclusive Partner for professional hospitality in UAE is 1765 Gemini
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www.1765gemini.com • Tel. 00971 4 3884773 martin@1765gemini.com • info@1765gemini.com