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BRINGING F&B TO LIFE
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21ST CENTURY HOTELS How to pull your marketing teams into the modern world
Give guests more bang for their buck with a taste of restaurant theatre
THAI TEMPTATIONS Why Dusit International’s growth in the region is picking up pace
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37
February 2010 Volume 9, Issue 2 05 NEWS
30 REVENUE MANAGEMENT
57 GULFOOD GALORE
93 TECH TALK
Over-priced Dubai missing out to rival destinations; Jumeirah guest house forced to close; FRHI on massive recruitment drive for Makkah.
A hotelier and consultant join forces to solve the challenges faced by revenue managers.
Showcasing some of the newest products to keep your eye out for.
News from Shangri-La Hotels & Resorts and Beach Rotana, and tips on how to choose your booking engine.
64 BEST PRACTICE: MARKETING 37 ROUNDTABLE: ENGINEERS
12 NEW ANALYSIS An update on The Palm Jumeirah, as Hotelier questions who is to blame for hotel delays.
Hotel engineers — otherwise known as green champions — reveal their energy-saving achievements.
17 COMMENT Service comes under fire yet again; while Guy Wilkinson searches for an authentic experience of the Middle East.
To kick off our Gulfood preview, Hotelier looks at one of the hottest new themes in the F&B world — restaurant theatre.
21 TOUGH TALK
49 GULFOOD Q&A
Mike Scully tackles the green issue from the owner’s point of view.
Gulfood project manager Goli Vossough discusses why demand for the show has grown and how DICEC has met that interest with exciting new features.
Dusit International CEO Chanin Donavanik reveals his plans for gradual but steady growth.
27 GM INTERVIEW Fairmont Bab Al Bahr GM Michael Kaile predicts a positive future.
A review of upcoming properties, hotel performance and tourism trends in Oman.
www.hoteliermiddleeast.com
Getting up close and personal with the latest developments in CRM technology for hotels.
103 HOTELIER INVESTOR News from Layia Hospitality, JAL Hotels and Kingdom Hotel Investments, plus a view from London.
75 SUPPLIER FOCUS Supplier news, expert opinion on laundry trends and Lamb Weston company profile.
108 RECRUITMENT AND TRAINING The new recruit and appointments.
111 LEISURE MANAGER 80 FITTED OUT An exclusive look at The Monarch Suite: the biggest and ‘best’ in the Middle East.
News, opinion and how to maximise revenue from spa retail.
118 CALENDAR Diary of upcoming industry events.
54 GULFOOD OVERVIEW
84 PRODUCTS: UNIFORMS
Everything you need to know about Gulfood, including the new awards, inaugural conference and Ingredients Middle East.
Design tips for hotel wardrobes.
120 HOTELIER CONFIDENTIAL Insights from the news desk.
88 PRODUCT GUIDE Laundry kit and new products.
84
43 27
96 TECH TALK: CRM
69 COUNTRY UPDATE: OMAN 43 COVER STORY: BRINGING F&B TO LIFE
24 EXCLUSIVE: CEO INTERVIEW
Bring your hotel into the 21st century by ensuring your marketing teams are up to date.
49 Hotelier Middle East • February 2010
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Hotel chain offers human bed warmers A hotel chain is employing human bed warmers in oLndon, UK to help guests get a good night’s sleep. The walking electric blankets are dressed in special all-in-one sleeper suits and are sent to warm the beds of guests staying at the Holiday Inn before they get under the covers, according to a report by the Press Association. Dr h Cris Idzikowski, director of the Edinburgh Sleep eCntre, said the idea could help people get off to sleep. He said: “There’s plenty of scientifi c evidence to show that sleep starts at the beginning of the night when body temperature starts to drop. The decline occurs partly
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because the blood vessels of the hands, face and feet open up and release heat. “A warm bed — approximately 20 to 24ºC — is a good way to start this process whereas a cold bed would inhibit sleep. Holiday Inn’s new bed warmers service should help people achieve a good night’s sleep especially as it’s taking much longer for them to warm up when they come in from the snow.” Holiday Inn spokeswoman Jane Bednall said the idea was “like having a giant hot water bottle in your bed”. The five minute free bed warming sessions were also being tried out in Manchester in the north of England.
The dramatic opening of the Burj Khalifa captured three of the top spots on HME.com in January.
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For a list of upcoming properties, see www.hoteliermiddleeast.com.To update your company’s list, contact louise.oakley@itp.com February 2010 • Hotelier Middle East
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FRHI seeks 2600 employees for mammoth Makkah project Fairmont president says complexity of development puts a “premium on the quality of the people” STORY OF THE MONTH
Storey: the complexity of the Makkah project is “unbelievable” and so relies on the very best people.
Fairmont Raffles Hotels International (FRHI) is seeking to recruit 2600 employees of Muslim faith over the next 12 months in order to staff its three properties being developed as part of the Abraj Al Bait Complex in Makkah, Saudi Arabia. The company is currently developing Makkah Clock Royal Tower, A Fairmont Hotel, Raffles Palace Makkah and Swissôtel Makkah. On a recent visit to Dubai, Fairmont Hotels and Resorts president Tom Storey told Hotelier Middle East that “if you think about the complexity of pulling this off it’s unbelievable”. Storey explained: “We’ve spent the past two days with about 50 people from around the world working on
our opening plan for the Makkah property and all the details of that from across the different disciplines. “Think about how hard this is; we’re going to be opening a multibrand integrated hotel, one of the largest in the world in a place that only Muslims can go to, and we have to source about 2600 employees over the course of the next 12 months — they all have to be Muslim, they all have to understand hospitality, they have to fit our culture and we have to do it without ever going to the site”. To put the project into perspective, Storey claimed the only comparable projects underway worldwide were gaming developments. “The only projects of this magnitude that are going on around the world right now are gaming projects and all those gaming projects have
a totally different agenda; they have all been driven by gaming and that’s their fundamental underpinning – here what we have is a religious icon. They couldn’t be more diametrically opposed,” said Storey. “If you think about for us the challenge and the fun of it all, you’re opening the Savoy in London, you’re opening Makkah and then we’re also opening the Peace Hotel in Shanghai, which is arguably the single most famous hotel in all of Asia. “So I sit there and look at that and to be able to pull that off, being as small as we are, really has to put a premium on the quality of the people and that’s what I like — it’s a bit of a David and Goliath,” said Storey. Fairmont Hotels & Resorts has 30,000 employees and Storey cites “US $4 billion of hotel real estate”.
Hoteliers confident of recovery in luxury market TRENDS Experts from the region’s top-end hotels said they are confident the luxury travel market will bounce back towards the end of the year. They said sales from this sector — from both a leisure and business perspective — have been very sluggish over the past 12 months but promotions and value-for-money options are enticing them back. “The luxury segment almost disappeared in the last 12 months,” said InterContinental Hotels Group Dubai Festival City director of sales and marketing Christian Pertl. “Top management from multi-nationals www.hoteliermiddleeast.com
cannot afford to be seen within luxurious environments anymore and there has been a lot of pressure on hotels to lower rates, but it’s all about [offering] smart deals.” He said IHG DFC expected 2010 to “remain a challenge”, although the property did see “positive signs of recovery”, especially from the GCC and Indian markets. Shangri-La Hotel, Qaryat Al Beri Abu Dhabi GM Adrian Rudin said: “Generally I think the premium traveller will still travel; there is a concern about spending, but for those seasoned travellers, this [fear] is less so”. He predicted that there would be a pick up in Middle East business in Q3 and that the international luxury
travel market would “bounce back” by the end of the year. Both Rudin and Pertl were speaking to Hotelier Middle East after attending the International Luxury Travel Market (ILTM) in Cannes in December — a show they claimed was very effective for securing business. The pair also revealed identical goals at ILTM — specifically to gain more business from the European and Russian markets. Lore Koenig, DOSM at The Chedi, Muscat, attended ILTM for the fourth time and said the mood of luxury buyers was “very positive”. Middle East buyer Nick Sheppard, manager, non-air product at Dnata, said he had a “mixed response” from
Christian Pertl: the luxury segment almost vanished in 2009, but there are signs of recovery in 2010.
the hoteliers with whom he met at the show. “Some hotels were eager to offer very keen pricing, in particular for Q1 and Q2, while others were indicating relatively high occupancies at the beginning of the year and were more interested in targeting periods later in the year,” he said. Hotelier Middle East • February 2010
NEWS
6
Overpriced Dubai missing out to rival destinations Hoteliers told to lower prices and offer all-inclusive packages to woo back British travellers PRICING One of the UK’s biggest tour operators has warned Dubai hoteliers that unless they become more flexible with their pricing strategies, they will continue to lose out to more accommodating destinations. “My message to hoteliers is that we really want to focus on Dubai, but reduce rates more, make your F&B cheaper and offer all-inclusive packages if you want to sustain and grow volumes from the UK market,” said Glenn McCool, regional product and contracts manager at Tui’s specialist division, which includes brands such as Hayes & Jarvis, Thomson Tailormade and Travelmood. “All-inclusive always sells well, but even more so right now due to the economic situation — in fact 80% of all bookings for hotels offering this option, such as those in Mauritius and the Maldives, are for all-inclusive packages,” he said. McCool also cited success stories closer to home with hotels in Ras Al Khaimah and Fujairah securing long-
stay business by offering all-inclusive deals to holidaymakers. “In contrast, Dubai is a stopover or short-break market,” he said, naming the lack of all-inclusive deals, high room rates and expensive F&B as the main culprits. He noted that Dubai room rates had come down by around 25%-35% compared to peak 2008 prices, but accused Dubai hoteliers of being inflexible when it came to pricing structures. “A market like Egypt, for example, is much more reactive to market demands,” he said. As a result, Egypt was stealing market share from Dubai in the winter and summer sun stakes, as was New York as a weekend break option, he added. McCool said that in the long term, for Dubai to remain competitive and to fill the number of rooms coming online, prices needed to come down a further 50-60%. “I can see Dubai having to become a charter market in order to get the volumes it needs,” he noted. McCool’s comments echo the sentiments of Virgin Atlantic sales and marketing director Paul Dickinson
The Hilton RAK resort is one ofVirgin Holidays’best performing hotels in the UAE thanks to its all-inclusive packages.
who in a recent interview with Hotelier’s sister publication, Arabian Travel News, said more needed to be done to persuade British consumers that Dubai offered value for money. He revealed that one of Virgin Holidays’ best performing properties in the UAE was the Hilton Ras Al Khaimah Resort & Spa, because it offered allinclusive packages. “The question is, can other hotels in Dubai work on this
Dubai hotels invest in major expansions The Ritz-Carlton Dubai has announced a major expansion project that will see its current room offering nearly double over a two-year period. Construction on the project, which has been conceived by Dubai-based architectural firm Rice Perry Ellis, will commence this April and is due for completion in 2012. Among the planned changes are new restaurant concepts, increased meeting and function space, a grand
Le Baie restaurant will receive a new look as part of the major Ritz-Carlton Dubai expansion programme.
February 2010 • Hotelier Middle East
ballroom and enhanced private dining facilities. In addition, 163 extra guestrooms will be housed in a new wing, meaning the hotel will remain open for the duration of the project, and they will include two Royal Suites with an 180-degree panoramic view of the Arabian Gulf. All guest rooms will be upgraded with technological features such as iPod docking stations, flat screen televisions and DVD players in response to increased customer demand. The Ritz-Carlton Dubai general manger Andrew Nasskau said: “This major project is part of our goal to meet our guests’ requirements in the coming years. Since the resort’s opening 11 years ago, our numbers of guests have increased annually, and with the development of The Walk and Dubai
Marina, we are predicting even higher visitors’ interest in The Ritz-Carlton at the completion of this expansion”. Meanwhile, the owners of the Arabian Courtyard Hotel & Spa in Dubai have pledged an AED 4 million (US $1.1 million) rejuvenation programme to be spent on product upgrades to maintain market position. Arabian Courtyard Hotel & Spa general manager and Hospitality Division of Planet Group chief executive officer Habib Khan said: “Our commitment to customer care, employee development, community involvement and investment in product has been the key to our success over the years”. The investment will include LCD TV screens in all rooms, an IPTV system and an additional restaurant.
all-inclusive basis,” he pointed out. McCool said the only hope on the horizon was that Mövenpick Hotels & Resorts planned to offer an all-inclusive concept at the group’s forthcoming Royal Amwaj property on Palm Jumeirah (see www.hoteliermiddleeast.com), due to open in Q3. “If this premium all-inclusive package goes ahead, it will sell exceedingly well,” he concluded.
442
Hotels in the Middle East and Africa according to the December 2009 STR Global Construction Pipeline Report released at the end of January. Among the key markets in the region, Dubai reported the largest amount of rooms in the total active pipeline with 29,727 rooms. The Dubai market also ended the month with the largest amount of rooms in the ‘In Construction’ phase with 15,291 rooms. Abu Dhabi followed with 13,701 rooms in the total active pipeline and 6,939 rooms in the ‘In Construction’ phase.
www.hoteliermiddleeast.com
7 NEWS
Dubai hotels call for transparency on green issues Bosses call for government measures to formalise green expectations STANDARDS Dubai hoteliers have called on the government to create green standards and guidelines that are both legally binding and transparent. They say initiatives such as the Dubai Green Tourism Award programme, the winners of which are expected to be announced on February 25, are a step in the right direction,
yet Dubai’s Department of Tourism and Commerce Marketing (DTCM) and Dubai Municipality needed to join forces to put together green specifications that all hotels — both old and new — must adhere to, with each being forced to declare their green credentials publicly. Emirates Hotels & Resorts senior vice president Tony Williams, who has been forcing the ‘green’ agenda in Dubai for the last 13 years, said green
ABOUT THE DUBAI GREEN AWARDS Introductory workshops were conducted for the hospitality industry to explain the green tourism concepts and the awards programme in 2009. About 200 hotels were eligible to compete for the programme but 79 applications were actually submitted. From the 79 applicants, 33 hotels were
visited by the Green Awards panel for further evaluation. A six-member judging panel evaluated submissions and shortlisted 18 hotels from which the winners were then selected. InterContinental Dubai Festival City is the official hotel sponsor for the awards and entered a submission to the programme.
standards must be created and the results of the Dubai Green Tourism Awards in terms of why the winners won and details of their green initiatives must be published. “The awards are a good idea as long as they are assessed properly and are transparent,” he said. “If not, such initiatives like that will be seen as another ‘green wash’.” Williams said the firm’s Dubai eco-resort Al Maha did not enter the awards programme, “because compared to most other hotels in Dubai, we are so far ahead [in terms of sustainability] that it would be a case of us having to win it”. He stressed that the reputation of Dubai hotels was “shocking” when it came to green issues and hoped initiatives such as the awards would force hoteliers to change their ways.
Arabian Park’s Mark Lee: Government driven green initiatives should be set through realistic legislation.
Mark Lee, GM at Arabian Park Hotel, a property that did enter the awards programme, said it proved a useful exercise in terms of benchmarking the hotel against industry standards, but added that “realistic legislation” was sought, “even if this means a gradual stepped change” to get owners/hoteliers’ buy-in.
Jumeirah guest house forced to close A guest house located close to the Burj Al Arab has closed due to the “Dubai Municipality refusing to authorise the renewal of running a guest house in the residential area of Jumeriah”. In a statement sent to Hotelier Middle East, PR representatives of La Maison d’Hôtes said that the hotel had closed its doors as of January 11. However, when Hotelier Middle East contacted the PR company, we were told the owners — Julie Renaudie and Claude Berquier — were not able to comment any further. A spokesperson from the DTCM could not comment on the case specifically but said the decision to give licences was based on regulations set by the Dubai Municipality. He explained: “We give licences and classification based on planning of the area, so based on the municipality plans. We co-ordinate with the municipality, who provide us with building usage. Some of them are working without a legal licence and when we discover this we will stop them. www.hoteliermiddleeast.com
“If a hotel or guesthouse is operating in a residential area we can’t give approval. They [the municipality] will say this area is residential, this area is commercial and this area is for hotels all based on zoning and planning,” continued the spokesperson. “They [the owner of the property] have to provide the DTCM with a certificate from the municipality showing they have permission and plus they have to fulfill the DTCM’s criteria. “The requirements for the DTCM are laid out in the classification manual that can be found on the DTCM’s website,” he added.
La Maison d’Hôtes’ Claude Berquier and Julie Renaudie.
Hotelier Middle East • February 2010
NEWS
8
New kids on the block Hotelier Middle East provides the low-down on hotel announcements and new openings A suite at Banyan Tree Al Wadi. Coral Port Sudan
Coral Khartoum
PROPERTY: Banyan Tree Al Wadi Resort LOCATION: Ras Al Khaimah, UAE OPERATOR: Banyan Tree Holdings OWNER: Rakeen Development PJSC KEYS: 101 villas STATUS: Soft opened on January 1, 2010 OUTLETS: Four FACILITIES: Private pools, treatment pavilions, rainforest hydrothermal circuit with a hammam and vitality pool, banquet hall, beach, golf course, adventure activities
PROPERTY: Coral Khartoum and Coral Port Sudan LOCATION: Khartoum and Port Sudan, Sudan OPERATOR: Coral Hotels and Resorts OWNER: Sudanese Kuwaiti Hotels Co. Ltd KEYS: Khartoum – 285 rooms Port Sudan – 114 rooms STATUS: Already operational
MIDDLE EAST WINNERS FOR IHG HOTEL STARS AWARDS InterContinental Hotels Group has announced the results of its Hotel Stars Awards designed to recognise excellence in performance in its employees across hotels in Europe, Middle East and Africa. In the Middle East, Carlos Malliaroudakis of Holiday Inn Kuwait Downtown
won both the ‘general manager of the year’ award and the ‘quality excellence award’ for the Holiday Inn brand. Meanwhile, the Crowne Plaza Jeddah won ‘hotel of the year’ and ‘the torch bearer award’ following a renovation last year.
ARMANI HOTEL DUBAI TO OPEN IN MARCH
Holiday Inn Kuwait Downtown GM Carlos Malliaroudakis.
RROSE RAYHAAN OFFICIALLY WORLD’S TALLEST HOTEL TThe newly-opened Rose Rayhaan by Rotana, the t UAE flagship for Rotana’s alcohol-free brand Rayhaan Hotels & Resorts, has had its b status as world’s tallest hotel officially certis fied by Guinness World Records. Rotana
senior vice president UAE operations Omer Z. Kaddouri said “We are indeed very proud to be managing this landmark property, which will increase Rotana’s stronghold further in Dubai and across the region”.
THE NILE HOTEL CLOSED FOR EXTENSIVE RENOVATION WORK The Nile Hotel, Cairo, which first opened under the Hilton brand in 1958, closed its doors in January ahead of a 30-month renovation project. The hotel, which is owned by Misr Hotels, a subsidiary of The Holding Company for Tourism, Hotels and Cinema, will reopen in 2012 as The Nile RitzCarlton, Cairo.
February 2010 • Hotelier Middle East
The proposed transformation, which has been designed by WZMH Architects/Frank Nicholson Inc, will include 327 rooms, 52 suites and two 432m² royal suites. There will be four specialty restaurants, two lounges and a bar, as well as a Grand Ballroom capable of holding events for up to 4000 guests.
Armani Hotel Dubai will be located within Burj Khalifa.
Armani Hotel Dubai, the joint venture between Giorgio Armani S.p.A and Emaar Properties PJSC, has announced that it will open on March 18, 2010. Positioned in the recently opened world’s tallest building, Burj Khalifa, Armani Hotel Dubai is to be the first in a global initiative featuring exclusive properties designed by Giorgio Armani.
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Are we being ‘Palmed’ off? Gemma Greenwood asked hotel operators and developers to cite the reasons for delays to hotel projects on The Palm Jumeirah and received nothing but positive — and evasive — responses ANALYSIS ontroversy surrounding The Palm Jumeirah has been rife since its inception, with questions as to its viability asked almost on a daily basis. Would this man-made island affect the tidal flows around the Gulf? Would it sink? Was the vulgar display of wealth and hedonism shown at the launch of Atlantis, The Palm, appropriate during the onset of the worst recession in decades? And most recently, of course, would Nakheel, the brainchild behind this offshore development — and many others in Dubai — go out of business?
C
February 2010 • Hotelier Middle East
Many of these questions remain unanswered, either because no one knows or no one dares to say and it’s much the same concerning the world of hospitality on The Palm Jumeirah. There are around 30 hotels planned for The Palm Jumeirah and only one — the aforementioned Atlantis, The Palm — is currently open. And, despite the many moans and groans about its grotesque aesthetics and the over-the-top opening ceremony, one thing that can be said for this pink behemoth is that it opened
exactly when Sol Kerzner promised it would. This cannot be said for the remaining 29 properties scheduled for The Palm, all of which have been delayed, even if their owners and operators swear blindly that the postponement was actually planned.
WHO OR WHAT IS TO BLAME? On a macro scale, it was mooted that Nakheel couldn’t get its act together, however, construction of the actual palm structure itself does seem to be
AS FAR AS WE ARE CONCERNED, THERE HAVE BEEN NO PROBLEMS WITH THE CONSTRUCTION OF THE PALM
going ahead as scheduled and most hotel owners/operators who have interests on The Palm seem to have nothing but praise for the developer. Mike Scully, the managing director of hospitality at Seven Tides, investor in two new Mövenpick properties on The Palm, said Nakheel had done a “fantastic job” considering this was an “ambitious project” and a “brand new concept”. “They have developed well over 80% of the island itself and that is a phenomenal feat whatever the economic conditions, let alone during one of the biggest economic crises known to man,” he told Hotelier. “As far as we are concerned, there have been no problems with the con-
13 NEWS
Jumeirah Al Fattan will open this year as planned.
struction of The Palm. Individual developers might have had problems, but I can’t speak for them.” He denied that the opening of the Royal Amwaj Resort & Spa — the first property in Dubai to have over-water villas — and the Oceana Hotel & Spa were actually delayed, although operator Mövenpick did originally put out a 2008 opening date on the hotels. Scully said Seven Tides and Mövenpick had been busy “improving product and design” and that the properties would open in Q3 this year with exact dates expected to be announced this month. He also argued that most Dubai hotel projects had been delayed, regardless of where they were located, due to a variety of factors, ranging from funding issues to fluctuations in the availability and price of raw materials. Mövenpick’s business development director, Guy Epsom, chipped in that it wasn’t uncommon for hotel projects to overshoot their estimated opening date.
“It is realistic to say that the uncertain business cycle of the past months has introduced other criteria and exaggerated the traditional project management issues,” he said. “This reality has influenced the timelines associated with many new projects and this looks unlikely to change in 2010, however, all of our [four Dubai] projects are all set to open this year.” IFA Hotels & Resorts, which has investments in several projects on The Palm Jumeirah, conceded that the construction of most of these had been delayed, but put a positive spin on the situation. “The delay in opening is actually advantageous,” said vice president development Patrick Smith. “The hotels will open in a much stronger market and at a time when less inventory is coming online.” IFA owns The Palm Residences (Fairmont managed), which are already open and operational; the Fairmont Residences, Palm Jumeirah, which were scheduled to open in Q4 2009 and will open in Q1, 2010
THE PALM JUMEIRAH – WHAT WE KNOW Nakheel Properties has made a commitment to open five new hotels on The Palm Jumeirah by 2011. Despite the delays, Nakheel has said that none of the 30 hotel projects set to open on Palm Jumeirah have been cancelled. Mövenpick’s two Palm properties — Oceana Hotel & Spa and The Royal Amwaj Resort & Spa — will open in Q3, 2010. One&Only The Palm, will open on October 10, 2010. Kempinski’s Emerald Palace will open in mid-2011. It is still unknown if the Trump Tower proj-
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ect, which was set to be one of Dubai’s new icons, will actually go ahead. Jumeirah Al Fattan Palm Resort will open this year as planned. The Fairmont Palm Jumeirah hotel will open in 2011 and Fairmont Kingdom of Sheba will open in 2012. Rixos is remaining tight-lipped about its Ottoman Palace project and did not respond to Hotelier’s questions. Sofitel told Hotelier it had no information to give on its Palm Jumeirah hotel project. Atlantis did not respond to Hotelier’s enquiry about extensions to the property.
Hotelier Middle East • February 2010
NEWS
14
Kempinski’s Emerald Palace will open in 2011.
OUR FINANCIAL PLANS SHOW IT IS BENEFICIAL TO OPEN THE HOTEL 12-16 MONTHS AFTER THE OPENING OF THE RESIDENCES
The Fairmont Palm Jumeirah has been delayed “ due to a redesign” but is now scheduled to open in 2011.
A TASTE OF THINGS TO COME Fairmont Kingdom of Sheba: a resort with 550 rooms and suites, conference centre, Willow Stream Spa, beach and pools, kids club, Fairmont Heritage vacation ownership units and on-site souk with shopping and dining facilities. Fairmont Palm Jumeirah and the Fairmont Residences, Palm Jumeirah: will comprise a 377-room luxury resort with 588 vacation ownership residences. The hotel will include 36,500ft² of meeting space, beach restaurant and a private beach club, a pool complex and children’s activity centre and a Willow Stream Spa. Jumeirah Al Fattan Palm Resort: located at the northern tip of The Palm’s crescent and featuring 211 rooms, six restaurants and lounges, a signature Talise spa, extensive sports and leisure facilities, an exclusive
February 2010 • Hotelier Middle East
beach club with more than 200 metres of private beach and conference and banqueting facilities. One&Only The Palm, Dubai: comprising the three-level Manor house with 30 rooms and five suites; six low-rise mansions with 36 rooms and 22 suites, many with private pools, as well as four private beach villas. Highlights include a 1200m² One&Only Spa and a private marina for 12-15 yachts. Ottoman Palace by Rixos: will boast 410 rooms, suites and villas alongside 19 dining outlets and a spa featuring the world’s largest Turkish Bath. The Royal Amwaj Resort & Spa: featuring 293 rooms and villas including 18 over-water villas, 2km of temperature-controlled natural swimming lagoons, a spa with 25 treatment rooms and six F&B outlets.
due to “minor delays”; The Fairmont Palm Jumeirah, which was scheduled for 2009 but will open in 2011 with delays due to a redesign, “which included the introduction of penthouses to the top floors of the hotel”; and the Kingdom of Sheba — phase one of which comprises the Balqis Residences and Fairmont Heritage Place, Kingdom of Sheba, which are scheduled to open in 2010 and are “progressing well”. “The completion date for the second phase will be determined once the most recent designs have been finalised,” added Smith. He stressed that Nakheel had been a “valuable partner” to IFA Hotels & Resorts during the development. Hotel operator, Kempinski Hotels and Resorts, had very similar views to IFA and Seven Tides when it came to reasons for delays to properties on The Palm Jumeirah and the supportiveness of Nakheel. Both Ulrich Eckhardt, the president for Middle East and Africa at Kempinski, and Seven Tides’ Mike Scully emphasised how the developer had created a top tourist destination (The Palm) that added 76 kilometres of much-needed coastline to Dubai. With reference to Kempinski’s Palm Jumeirah ventures — the Kempinski Residences and the Emerald Palace — Eckhardt argued that no final opening date had ever been set for the latter but confirmed that the hotel “carcass” would be complete this month with interior fit out due for
March/April “with a view to opening in mid-2011”. “Today we have four thousand people working on the adjoining plot, which houses the Kempinski Residences and once that is complete, resources will be moved to the hotel,” said Eckhardt. “Our financial plans show it is more beneficial to open the hotel 12-16 months after the opening of the residences,” he added. Nakheel itself has remained tightlipped about forthcoming hotel projects on The Palm Jumeirah and did not respond to questions regarding the subject that were posed by Hotelier Middle East. The most recent press reported that Nakheel Properties had stated it was committed to opening at least five hotels on the Palm Jumeirah by 2011, but had “nothing new to say about Trump Tower”, which was set to rival Atlantis for iconic Palm Jumeirah status. The comments regarding the mega tower were made in response to a story by Hotelier’s sister publication, Construction Week, in which Donald Trump Jr, heir to the Trump Empire and a partner on the project, said that the construction of the tower was now in the hands of Nakheel. “I am hoping we can restart work on the project within the next two years but it all depends on the market situation,” said Trump Jr. “At the end of the day, the ball is in Nakheel’s court.” HME www.hoteliermiddleeast.com
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17 COMMENT
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All aboard for training! T
his editor’s letter has been penned from an unusual location this month, where exactly I am not even sure. On board the Brilliance of the Seas cruise ship for Royal Caribbean International’s maiden Middle East voyage, I believe this was written somewhere between Fujairah and Abu Dhabi in the Gulf of Oman. The cruise was a seven-night tour, starting in Dubai and stopping for a day each in Muscat, Fujairah, Abu Dhabi and Bahrain before returning to Dubai for an overnight stay. While I would happily have swapped my cabin — sorry, stateroom — for any basic hotel room and my cubicle — sorry, bathroom — for a shower I could lift my arms up in, I discovered that accommodation aside, this cruise ship quite easily trumps many of the hotels I have stayed in. And I have been lucky enough to experience some of the region’s very best hotels, so the bar is set very high. Food and beverage was one of the areas that really stood out. Assuming you had an outlet big enough, could your F&B team serve 1000 people twice over in one evening? And could it do this providing hot food at the same time for every person on tables of 10, while also managing multiple drink requests and adding the occasional skit and song to keep guests entertained? I didn’t think so.
I’ll concede that the dishes were not that adventurous compared to the wealth of cuisine offered by the region’s outlets, but there was a choice of at least six options for each course. Plus, the scallop risotto I had on ‘Italian night’ was faultless and the omelette cooked fresh for me at breakfast was one of the nicest I have ever had. I heard no complaints from any of the guests I spoke to about the food, but I think I was more impressed than anyone by the level of speed and skill with which the food was produced; perhaps I have got used to slow service that other people — particularly older generations — would just not accept. And then onto housekeeping, another highlight for me. Having checked in, there was soon a knock on the door from my room attendant, introducing herself to find out if I would have any specific needs during my stay. She was to become a companion for the trip, laughing along with me while I tried to master the cruise dress codes and having a chat with me morning and evening. The secret behind the success of both the great dining experiences and the immaculate housekeeping is service — or Royal Caribbean’s Gold Anchor service to be precise. Brilliance of the Seas has a crew of 800-plus, and I probably came into contact with 30 or so of these during my cruise. Without exception, they
Louise Oakley, editor
louise.oakley@itp.com
were friendly, welcoming and genuine — nothing was scripted, instead personalities were really shining through. A cruise ship can’t be the easiest or most comfortable environment to work in, yet everybody was upbeat and dedicated. It was impressive and inspiring to see the crew interact with guests of all ages and nationalities —Brilliance of the Seas will carry people of 65 different nationalities during its 14-week Middle East tour. The overall feeling, even as a first time cruiser somewhat outside the average age bracket, was that you were part of a family. So many hotels talk of creating a ‘home from home’ — but I have never before seen this achieved better than on a cruise ship. Now where’s the sense in that? HME
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VOX POP: With Gulfood round the corner, we asked F&B experts to describe their worst dining experience… “There is nothing more avoidable than an empty Dubai fish restaurant on a Sunday night. This is where I, unfortunately, found myself a couple of weeks ago, picking my way through a quartet of “fresh” shrimp who looked like they had committed group suicide before the chef could get to them. The herb crusted sea bass that followed smelt like burnt fennel and cat breath. I didn’t even bother to look for the waiter. He was far too busy waiting for his contract to end.“ Dan Clayton, general manager, Ruth’s Chris Steakhouse, The Monarch Dubai I recently paid a visit to a casual-dining outlet in a major Dubai shopping mall — a well-
known brand that prides itself on quick, cheerful service. However, at this branch it seemed the staff had not even been trained; servers were standing around chatting, completely ignoring myself and the other tables. After eventually placing an order at the counter, I got my food (mediocre) but was unable to catch anyone’s attention to order another beverage or even when the time came to pay the bill! Needless to say, this experience has put me off the whole brand. Lucy Taylor, editor, Caterer Middle East My worst experience was at a bar/restaurant in Doha, where quite a lot of things went wrong. Having been directed to the bar, there
were no guests there and the bar staff looked very disappointed to see my friend and I enter. I soon realised that the bartender was having a telephone argument with his manager on the ground floor of the bar, as it was the end of his shift so he didn’t want to serve us. Although the bar was still open we felt very unwelcomed and they made sure we knew that we were causing them discomfort. When we asked for the menu, they took forever to bring it and mentioned that a lot of the items were not available. We left the restaurant without eating. They offered to take care of the drinks but we refused and paid our bill. Anuj Sharma, beverage manager, The Palace — The Old Town
Hotelier Middle East • February 2010
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In search of the authentic Viability director Guy Wilkinson turns tourist for a day in Dubai and heads to Sharjah, Nizwa and Doha to explore the accessibility of history, tradition and culture to the region’s visitors
COLUMNIST hether resident expatriates or week-long holidaymakers, visitors to the u Glf often seek an authentic experience of local history. In some places, it’s either difficult to find, or ironically, hard to tell when you do find it. My wife and I broke the habit of a lifetime and decided to be tourists in Dubai the other day. We spent a pleasant enough couple of hours in Dubai’s Bastakiyah district, where the government has restored a block of old Iranian wind tower houses and filled them with galleries, museums, cafés, restaurants and gift shops. There are a couple of guest houses there too, including the X VA allery, a historic courtyard house G which combines a contemporary art gallery with a vegetarian caféand seven petite guest rooms, each featuring different interiors done up by local artists. It’s a very welcome contrast to Dubai’s pervasive mirror-glass towers, international buffets and blaring discos, but is it authentic? I hate to downplay such a worthy endeavour, but the restoration work was so cleanly done throughout the district that one could hardly believe the original houses had been built a century before. The paintings and sculptures were great and I personally find the whole rarefied ambience of cafés fi lled with middle February 2010 • Hotelier Middle East
Image: Guy Wilkinson
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Pottery in the Nizwa Souk in Oman, one of the authentic attractions encountered by Wilkinson on his travels.
IT WILL BE INTERESTING TO SEE IF ANY OF DOHA’S INTREPID ENTREPRENEURS WILL ATTEMPT TO DEVELOP A BOUTIQUE HOTEL IN THE SOUQ WAQIF class, expat arty types very alluring. But somehow we felt there was an important missing link to the past of the place itself. The 10-room Orient u Gest House, another delightful courtyard property there, proudly displayed a sign saying ‘Starbucks coffee served here’ on its outside wall, which seemed to sum it all up. Similar historic downtown districts have been restored in Sharjah and Doha, and thanks to their deliberately rustic approach to finishing, they are arguably more successful.
STEP TO SHARJAH Sharjah is a city of contrasts and mixes some very attractive parts such as its Khaled and Al Khan lagoon Corniches, the Q asba Canal, the Blue Souq and its Islamicstyle university campus, with drab
industrial areas. The Arts and Heritage Areas work so well, I believe, because they are not isolated from the ‘real’ Sharjah, and not restored so pristinely as to appear unreal. The district includes the restored Souk Al Arsah, where you can still get a cup of tea for a couple of dirhams and where the shops are dusty and affordable. And the art galleries and museums there, including the Sharjah Art Museum and Sharjah Museum of Islamic Arts and Culture, are genuinely worth a visit. All these attractions are surrounded by hotels and serviced apartments, including most notably the Radisson Blu and Rotana. In Doha, the equivalent is the Souq Waqif, adjacent to G rand Hamad Street and the CBD, where what was until recently a dirty
working souq in a mish-mash of architectural styles dating mainly from the 1960s and ‘7 0s, has been ingeniously refurbished back to what might have been its appearance when the original souq there was founded 100 years ago. aced with a similar demographic F imbalance to that experienced in Dubai, the Q ataris have wisely invited Arab traders from Oman and other neighbouring countries to set up shop there, rather than turning the souq into a little India or an outpost of Manila, and for tourists, this really makes a difference. It will be interesting to see if any of Doha’s intrepid entrepreneurs will attempt to develop a boutique hotel in the Souq Waqif. It’s a project that’s begging to be undertaken. or a still more authentic experiF ence, head for Nizwa in Adh Dakhiliyah, the heartland of Oman. Nizwa was once the capital of Oman in the 6th and 7th centuries AH (13th century AD) and is now a delightfully quiet market town about an hour and a half from Muscat, and five to six hours’ drive from Dubai. To the casual visitor, Nizwa’s souq and fort look a lot like other areas of the G ulf that have been ‘over-restored’. But give Nizwa a chance and it will reveal itself to you. It was not only the country’s capital, but also the crucible of silver-smithing in the Sultanate and true historic treasures can still be found. And when the tourists experience these attractions at the hands of their ever-friendly and attentive Omani guides, they know they have found the authentic G ulf historical experience they were always looking for. HME
Guy Wilkinson is a director of Viability, a hospitality and property consulting firm in Dubai. For more information, email: guy@viability.ae
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Growth of a green culture Sev Tides Hospitality managing director Mike Scully predicts growth Seven for hotel companies in developing countries — but only if they adopt a gre green culture and demonstrate low carbon initiatives in all markets now ities and green policy requirements, this ROI could be far quicker.
FUTURE APPROACH
THE OWNER’S VIEW ith the Copenhagen Climate Change Conference out of the way without the hopeful agreements being signed, I feel that it is only right that we look at this in the context of the hospitality industry and its longterm implications. It was highlighted once again at the conference that we have a new “Cold War” and this war between North and South as opposed to East and West is concentrated on the “haves” and the “have-nots”; the “haves” being the northern, prosperous, high-consuming energy countries, who have been responsible in the most part for global warming, and the southern “have-nots”, who are trying to obtain aid from the north and will ultimately hold the north accountable for global warming. How does this affect the hospitality industry? I believe that the largest growth potential for both hospitality developers and operators will be in the developing countries predominantly in the south. These developing countries will hold western countries and companies to ransom on their green philosophies and practices. In essence, this is one of the few tools they have and they will use it willingly. We, therefore, need now to ensure that we follow green low carbon philosophies on all projects, whether in developed nations or developing nations, in order to show that our organisations have developed a culture of low energy consumption.
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Developing countries want to see green policies in place in hotels all over the world.
IT MUST BE REMEMBERED THAT ENERGY COSTS MONEY AND DEVELOPING NATIONS DO NOT HAVE THE NECESSARY RESOURCES TO SUPPLY WASTEFUL UTILITIES I have mentioned the word “culture” in previous articles when talking about an owner’s responsibility towards revenue management; I do so now in light of green issues as well. We are talking about team work from concept, architectural, development and management stages. If all parties show equal determination, I believe those who participate will gain — and can demand — priority status when developing nations are looking for partners. It must be remembered that energy costs money and developing nations do not have the necessary resources to supply wasteful utilities.
ENERGY BREAKDOWN We know that in the split of energy consumption in hotels, air conditioning can account for between 30-40% (closer to 60-65% in the Middle East), lighting similar, hot water 8%, with the rest taken up by stoves, laundries etc.
The International Hotels and Restaurant Association (IH&RA) and the United Nations World Tourism Organisation have set savings targets of more than 20% for the hospitality industry with the potential of up to 30%, which equates to savings of about US $40,000 per average size hotel per year. This is mostly applicable to developed properties, however, we need to be as committed to new builds, looking at design and construction using the latest green, low carbon technology. It is clear that whatever replaces current energy technology has to be affordable, reliable and low carbon. It is generally accepted that to build LEED equivalent standards, the costs could increase by anything up to 10%. I believe that this money will be well spent and the return on investment will be relatively quick — and with the forecasted rise in price of util-
It is not only technology which will reduce the carbon load of individual properties; it is the developer and owners’ requirements in conjunction with architects that need to be seriously addressed. We need to look at the size of open areas that need air conditioning, the way our door systems work in regulating air flow in and out of buildings, the size of windows and the positioning of the hotels with regards to sun and shade in order to reduce the HVAC requirements. The use of natural materials and in many cases ground cover can substantially reduce energy requirements too. We all know what the leading lighting and equipment suppliers such as Phillips are offering in order to reduce consumption from lights, signage, TVs, kettles and hair dryers among many others. We also know that there are PMS and RMS systems available that can assist in substantial savings and these must be purchased and effectively used by operating companies. And this is where I stress once again the need for a low carbon culture where the owner/developer purchases the right equipment and agrees to an energy efficient design, which the operator commits to using in the best interests of the owner. There must also a move away from energy inefficient five-star products to more low carbon friendly, good service four-star hotels. HME Mike Scully has worked for some of the leading hotel management companies worldwide — Sun International, Holiday Inn, Accor and Starwood — as well as developing and managing properties for the Dubai Government. He is currently managing director of Seven Tides — Hospitality, which will be opening four luxury properties in Dubai within the next 12 months and which also owns Dukes Hotel in London.
Hotelier Middle East • February 2010
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Why green hotels depend on design Re Engineering Middle East managRed ing director Mick Cairns says hotels can only achieve sustainability through proper design
THE DESIGNER’S VIEW he idea of sustainability is no longer floating at the margins of the built environment; it has become central to the concept of what makes for ‘good design’. Although regulatory frameworks have begun to ensure that minimum standards of sustainability are incorporated into building design, the private sector is catching on to this, recognising the commercial opportunities associated with being, and being seen to be, ‘green’. It is often taken for granted that improving the environmental credentials of a building through enhanced assessment LEED/BREEAM targets is guaranteed to add cost, but this does not have to be the case. The earlier in the design process that the principles of sustainable design are considered, the more likely it is that additional cost can be avoided. While many operators have very well defined design guidelines which incorporate an absolute requirement for the inclusion of ‘green’ technologies and in some cases go as far to stipulate energy consumption benchmarks, how many ‘carbon efficient’ hotels are operating today? Sustainable technologies that can be applied
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to hotels are many and well documented, however, it should be understood that this, in no way, guarantees efficient operation of a building. All too often, hotels are actually burning money and increasing carbon emissions due to excessive energy consumption. In some cases operators are the victim of the property they inherit; in others they are central to the cause. Key issues in relation to MEP systems that cause excessive energy consumption include: • Over-design (missed opportunity to apply suitable diversity, poor zoning of systems to match use-profile of various spaces) • a poor approach to or lack of effective commissioning • poor operational management A safe, conventional MEP design solution that does not adequately consider the complexities and interaction of the various spaces within a four- or five-star hotel can result in significant over-design of local and central plant and equipment that results in grossly inefficient system operation. This can increase energy consumption by 40-50% when compared to a well-considered design solution that challenges every aspect of each system and their intended performance and use-profile. By way of example, broadening the range of internal temperature and humidity control tolerances can bring significant reductions in building CO2 emissions without sacrificing anything significant by way of occupant comfort. Energy modelling
THE EARLIER IN THE DESIGN PROCESS THAT THE PRINCIPLES OF SUSTAINABLE DESIGN ARE CONSIDERED, THE MORE LIKELY IT IS THAT ADDITIONAL COST CAN BE AVOIDED February 2010 • Hotelier Middle East
Designers hold the answers to sustainable solutions.
is essential during the design phase — it allows the MEP designer to make informed decisions in respect to system and building diversity. Early collaboration between designer and operator is strongly recommended. Engineering systems, their maintenance and control, should be kept as simple as possible since it is the building operator who inherits the designer’s legacy. Moreover, continued involvement of the designer in the first year of building operation can allow further refinement of future projects by collecting data and analysing this against the energy models that were produced during the design. By taking a holistic approach, we better ensure that ‘green wash’ is avoided and our buildings are sustainable in the proper sense. HME Details: www.red-eng.com www.hoteliermiddleeast.com
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Thai temptations As only the second CEO in Dusit International’s 62-year history, Chanin Donavanik outlines how he plans to follow in his founder mother’s footprints by prioritising carefully chosen hotel projects overseas alongside one of the largest industry education programmes in Asia can be long-term. In the last 62 years there has only been two CEOs in my company and we want a lot of relationships, we want consistency, we want stability. We are not buying a hotel today to sell in five years. We have not looked at investing in Asia as much because the prices in Asia did not drop as much in 2009 and in some countries they have gone up. If you want to invest in a hotel in China today, it costs 30% more than last year. So in some countries it’s not worthwhile [for us to invest]. Right now we have almost 10 projects in the Middle East, we have seven in India, we have our first project in China — we want to do more, we have just opened a development office in China. We also recently opened an office in Berlin and have offices in Dubai and New Delhi.
CEO INTERVIEW You took over the management of Dusit International following your mother Thanpuying Chanut Piyaoui’s retirement aged 84. What are your plans now you are at the head of the company? The company was founded by my mother 62 years ago and since then we have not changed much. For her, she wanted to bring something Thai overseas because she believed very strongly in what the Thai people or the Thai culture could do to the hotel and hospitality field and for 62 years we have been trying to do that. Just recently we have been expanding overseas and when we do that we want to bring something with a little bit of Thai passion to every place that we go into. I have been working with the company now for 32 years; we have been around for 62 years and I’m the second CEO. My mother retired four years ago when she turned 84. I don’t think I’m going to work until I’m 84! Outside of Asia, Dusit already has hotels in Dubai and Egypt. What is your approach to overseas expansion? We have been trying to go overseas for 17/18 years now. We bought or we invested in the first hotel in the early 90s overseas. At one time we bought a European hotel company, which we sold because of the Asian financial crisis. As a company we are still very conservative, we don’t like to have debt so we have been very selective of what we have been doing. I think with Dubai we were a little bit lucky. I had the opportunity to meet someone here who gave us the first opportunity to come here seven or eight years ago. He had a vision that he would like to bring something from Asia to Dubai, so we were the first Asian hotel company in Dubai. February 2010 • Hotelier Middle East
Dusit International CEO Chanin Donavanik.
AS A COMPANY WE ARE STILL VERY CONSERVATIVE, WE DON’T LIKE TO HAVE DEBT SO WE HAVE BEEN VERY SELECTIVE You said the company was very conservative; has that assisted you in seeing through the tough times of 2009? Yes I think so. It helped us so well that now we are actually starting to look for new investment. I think that before 2009 we had four or five years of booming time for the hotel industry worldwide so a lot of hotel pricing and a lot of hotel investment had been too high. I think now is a good time to look and see what we can do –
it is the best time to invest in the hotel business worldwide, maybe more so in the North American market because prices here have come down the most. Would you expand further? Yes. There are a few cities in Europe and a few in North America. We are not a big company and the idea is not to be everywhere. The idea is to be in strategic cities and locations that we
Following the opening of Dusit Princess Dubai at the end of December, you now have three of your five brands in Dubai. Tell us a little more about them? Dusit Thani has been around for a long time and is usually a more traditional hotel or classic hotel in terms of Thai style. And they are big properties with 500-600 rooms. We have Dusit Residence Dubai, which is a serviced apartment and our first branded product in the serviced apartment business. Last year, we opened the Dusit Princess — actually the Princess is my mother’s original hotel name; the name dates back 62 years. The
8000 Number of staff working for Dusit International
25 PEOPLE
Dusit Thani Dubai was the company’s first hotel to open in the Middle East following a “lucky” opportunity.
DUSIT IN THE MIDDLE EAST
reason why we call it Princess was because the first hotel was opened by the elder sister of the King of Thailand. It is a very first class hotel, not a luxury hotel but it’s still comfortable and I think there’s going to be a lot of demand in the Middle Eastern market to have this kind of hotel. We are trying our first here in Dubai and we are very confident that it is going to be a success, then hopefully we can grow the Dusit Princess brand throughout the Middle East.
Dusit International currently operates four properties in Dubai and two in Egypt, including the new Dusit Thani Lakeview Cairo, which opened in the first week of January this year. Of Cairo, Donavanik says: “I think the market is quite strong and I think we also have a very good partner there. I think our hotel should be one of the top two, top three, top four in the whole of Cairo. It’s a top luxury hotel. It’s going to be better than many of the traditional major chain hotels”. Later this year, a Dusit Thani will open in
Why did you launch the Residence brand in Dubai rather than Thailand? We have been looking at this business for a long time — in Thailand we have apartment buildings but we have not really done it in a way that it is linked to the hotel brand. We had an opportunity here and again we have been very lucky because the developer and owner were interested in working with us in their serviced apartment building, so we jumped at that. So I think we have been very lucky so far, the Dusit Residence is doing very well. Right now we are trying to grow the serviced apartments in this part of the world. Can you describe your new brands? We have two other brands we have not brought in, the Dusit Devarana, which is a deluxe type of operation and we have started building that in a few parts of Asia. The first one will be in New Delhi in India in May 2010. Then we have two to four coming up in five years. We don’t have one in Dubai. www.hoteliermiddleeast.com
We have also been doing quite well with our lifestyle brand, which is a smaller, more boutique style of hotel brand called dusitD2. And we have a few opening now in Thailand; we want to grow that brand outside also. We have many brands not because we try to be creative like some of the big boys; we need that because we want to grow and we want to capture different markets and we want to capture it in a way that it is clearly defined. We don’t want to put our name to lots of different hotels so the customer is confused, we try to create different sub brands so that the customer will understand what they are looking at. Will Dubai have all five brands? I would love to, I do not know when but I would love to. We always see Dubai as a centre for this part of the world. We made this our headquarters for our operation in the Middle East — it would be nice to have a product that we can show to people. How are you progressing Dusit’s education programme? For a hotel company, at least in Asia, we are doing more than anyone else there in terms of hospitality education. Our Dusit Thani College, which offers a bachelor degree programme and has just started a masters degree programme, has been around for almost 15 years. Right now we have 2200 students studying full-time so every year we graduate with a bachelor degree about 400 to 500 students.
We also are the only partner of Le Cordon Bleu cooking school from Paris — every year we have almost 1000 students going to our programme. We try to grow our education programmes, which was my mother’s decision 20 years back to see what we can do to prepare Asian new generations for the hotel industry. So, we have been in the Philippines for a year; we have a programme that we joined with one of the top universities in the Philippines. In the first year we had almost 5000 students. This programme will have about 15,000 students when it has stabilised for the four year bachelor degree programme, so we will be graduating maybe 3000 to 4000 people from the Philippines programme. We are now discussing with people for India. We would like to bring our education programme to India and we are talking to someone in China. So it should be quite active in this area and it is something that people in Asia need.
Abu Dhabi comprising 400 hotel rooms and 100 serviced apartments. There are also Dusit Thani hotels scheduled for Jeddah and Bahrain, both due to open at the end of 2012. In terms of other Middle Eastern markets, Donavanik adds: “We like Oman. We have been looking at a few projects there. Hopefully, in the next three months we can finalise something there. We would like to find something in Qatar and that would cover most of the Gulf states. In North Africa, we like Morocco”.
We are not a large university, but this year we are going to have about 8000 people studying with us full time and as I said, the number is going to be close to 15,000 in a few years. But the most important thing is it is going to develop and train people so that as Asia is growing very fast in terms of hospitality and travel, these people are going to be helping the economy to grow as well. And why are we so popular — because most of our graduates don’t have a problem in looking for work. How would you sum up future growth? There are 8000 people in the company; I think within two or three years it’s going to be 15,000. We have about 14 hotels opening in the next two years. We are going to be opening six, seven, eight hotels a year from now. That is not easy for a small company. It’s a lot of work. I think this is going to be good for our people; there are a lot of opportunities for us to grow. HME Hotelier Middle East • February 2010
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All’s fair in Abu Dhabi Fairmont Bab Al Bahr general manager and company stalwart Michael Kaile explains why the luxury brand’s future success in the UAE capital is secure GM INTERVIEW
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Fairmont Bab Al Bahr in Abu Dhabi has been opening in phases since October 2009? What stage is it at now? At the very beginning of October we opened with one restaurant and a few bedrooms. During the month of October we opened Frankie’s Italian Restaurant and Marco Pierre White. By the F1 Abu Dhabi Grand Prix, we had our bedrooms open, we had three restaurants plus our pool, and the chocolate gallery on the first floor. Now we’re by no means finished. In January, our big conference centre opened; that’s amazing as it has a ballroom for 900 people and a fabulous glass wall at the end with a view right across the creek and lovely outdoor gardens. We have also one more restaurant that will open this year — the concept looks to be a Lebanese restaurant. And our Chameleon Bar will open in February. The big thing then is a very significant Willow Stream Spa — it will have 16-17 treatment rooms, a hammam and be self-contained. We’ve taken the health club facilities and made those separate so if a guest wants to use the gym he doesn’t have to intrude into the spa space. And also when club membership opens up here for the beach, there are additional changing spaces for the beach guests. Hotelier Middle East • February 2010
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The stunning lobby at Fairmont Bab Al Bahr.
The hotel has a fantastic Fairmont Gold area. Why was this a priority? We had to hasten to get ready for F1 and we are going to make some upgrades to this space over the next few months. You need an area to eat, then people want to sit and relax — you need that space — then you really need a proper check in area and greeting space and the butlers need room to move and do all the things that they need to do for the guests on this floor. This is very dedicated. We are finding a huge demand, and we are very lucky because Fairmont Gold manager Arnold Francisco and several of his team here came from the Fairmont Dubai. We have an amazing butler team, probably the strongest butler team I’ve ever had in my career with Fairmont. You previously opened Fairmont Dubai — how will you leverage this hotel’s established reputation? Having opened Fairmont Dubai I think that was the springboard that put the name into the region. Subsequent Fairmont hotels on the Palm will follow, Cairo is now open and other Fairmonts in due course will follow too. This hotel will mature quickly because of the market demands, so you are going to have really two hotels to assist the rest of them and to help grow the brand across the Middle East. Do you compete with the hotels on nearby Yas Island? We do but really what we’re bringing is critical mass. The word competitive set is really marketing jargon but what we’re adding is a critical mass February 2010 • Hotelier Middle East
Kaile: we’re privileged to be located in Abu Dhabi.
ABOUT MICHAEL KAILE Michael Kaile, or MK as he is affectionately known by the Fairmont Bab Al Bahr team, has worked in the industry since leaving hotel school in 1969. Having started his career with Trust House Hotels in the UK, Kaile moved to Bangkok to launch the Renaissance brand there and then to Canada with Commonwealth Hospitality — taking him to Vancouver, the place he now calls home.
Kaile joined Fairmont 19 years ago, opening the Fairmont Waterfront in Vancouver before moving to Bermuda with the company. His first Middle East posting was the pre-opening of Fairmont Dubai in 2001, where he stayed for six years. After a stint back in Canada, Kaile returned to the UAE in 2008 to join Fairmont Bab Al Bahr, owned by Rmal Hospitalty, part of the Al Fahim Group.
that will enable events to be held here and really the success depends on us physically being here — it’s a growing marketplace. It only reaches absurdity if the amount of new hotels coming in is out of total proportion to what can be absorbed by the marketplace. Then you get into a different situation; we’re not there yet. We’re going to fill the need of an enlarging marketplace and there is a relationship at the moment, although it’s never perfect, but there’s more of a relationship here between supply and demand — obviously with F1 there has been a little bit of a peak but if you draw the line out over a longer period you’ve got a much more harmonious situation.
What markets are you expecting to appeal to? This is very interesting. The market comes from so many different places, it tends to be generated out of demand for Abu Dhabi, therefore at least 60% of it is driven from the GCC. This percentage at the moment is a guess because we haven’t had our conference centre going, but I would see at least 60-65% of business originating from the GCC. Maybe Abu Dhabi might pick up particularly in the European market, if you look at every room sold here for the rest of the world to do 40% its quite an undertaking. We’re blessed now with Etihad Airways, the new terminal and the
airport and these are big wins. Dubai has so dominated the marketplace in this area for the last two to three years and now Abu Dhabi is getting its own share of recognition but it does take time to get some traction. So do you see Abu Dhabi competing with Dubai now? Dubai went first, Abu Dhabi is now going through a tremendous amount of change. I think the two are going in quite different directions, which is good. It’s not a case of one emirate competing against the other, they are going to be different. The raison d’etre to come to Abu Dhabi is more culturally based, it is the capital. We’re quite privileged to be here in Abu Dhabi now. We’re a global company and speaking to my colleagues at Fairmont all over the world they always say ‘you are so lucky to be in Abu Dhabi’. There’s a feeling that business is happening here, there’s a feeling you can do business here and there’s a feeling there’s business to be had here. In globally difficult times, while we are not immune, you still feel that the lights are still on. There is very much an optimistic feeling here in Abu Dhabi. HME www.hoteliermiddleeast.com
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How to get revenue management right Kempinski Hotels VP distribution and revenue management Rex Demanser and IDeaS Europe, Africa and Middle East major account holder Guy Barnes discuss the science of revenue management, urging hoteliers to place a renewed focus on training and integration in 2010 DEBATE How have you seen revenue management evolve over your careers in the hotel industry? Guy Barnes: When I started out we practised inventory management. The priorities were simple — ensuring availability of rooms for sale, that rooms were priced correctly, and simple rate and sometimes length of stay controls were in place. Analysis of bookings, cancellations and even denials was underway, but all too often the quality of data available affected the outcomes. With improvements in data quality, came a more scientific approach and more useful information. But with reporting lines often into sales and marketing, revenue management was often seen as a constraining factor rather than a guiding light. Today, revenue management is a science, providing powerful intelligence, an early warning system, accurate forecasting and finely February 2010 • Hotelier Middle East
tuned pricing and controls. In more and more cases revenue management is now given the profile it deserves, with board level presence, and understood as a function that provides firm direction to maximise hotel revenues. The future is even more exciting, as revenue management has become more than just maximising rooms, but encompasses meeting and events, is seen in managing restaurant space, and in total asset management.
that time we were just using spreadsheets etc to try and pick up trends and in my first hotel where I really applied it (it was a small hotel in central London), we doubled the revenue in two months just by analysing demand. Five or sixth months later, we had tripled the overall revenue. I think our rack rate back then was £75 (US $121) which I kept pushing and pushing, and was relentless in selling it. After that, I became known as ‘Rack Rate Rex’!
Rex Demanser: I came into revenue management originally through reservations. We were doing revenue management before it was even called ‘revenue management’! At
What key challenges do you face in your sector? RD: I guess the levels of knowledge of revenue management in the wider hotel community is the hard-
TODAY, REVENUE MANAGEMENT IS A SCIENCE, PROVIDING POWERFUL INTELLIGENCE, AN EARLY WARNING SYSTEM, ACCURATE FORECASTING AND FINELY TUNED PRICING AND CONTROLS
est and finding good people that just have a real passion for the numbers is tough. I think there’s also a lot of confusion between what revenue management is as a discipline and data analysts. Some people think that being a data analyst is being a revenue manager and it’s definitely not. Anyone can crunch the numbers. I’ve seen revenue people, across different hotel groups, that think that putting these beautiful colourful spreadsheets together is revenue management. But unless you’re setting a price point for decisions, there’s no value. GB: I think a lot of people also confuse people in reservations with revenue managers, so you can have someone put into the position of revenue manager when they really don’t have the discipline and the skill set for it. That selection can have an impact on that situation at that time, but also on the hotel’s view on employing a revenue man-
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reporting directly to them. So it’s starting to get serious and ‘grow legs’ as a discipline, and it’s definitely improving.
Kempinski VP distribution and RM Rex Demanser.
ager again in the future, or another third party organisation looking to evolve that property as well. Historically there has been confusion as to what revenue management is and where it fits into a hotel organisation. Is the perception of it as a function that needs to sit at high level improving? RD: I think the enlightened CEOs may not know what revenue man-
How important was Kempinski’s revenue management strategy and partnership with IDeaS in managing business throughout the 2009 downturn? RD: I think it goes too far to say that IDeaS saved us in terms of overcoming the economic crisis, but I do think that with the Emirates Palace it was very clear that there was an up lift. However, IDeaS contributes as part of a collection of ordered tools, with other initiatives. At this time [November 2009] for Kempinski, for our electronic business, we are 17 points down on 2008, primarily hit by GDS. We’ve been in recovery on web business since June, with every month showing year-on-year growth, culminating in October with 13% year-onyear growth — I think double digit growth in the current environment is impressive. Some of our packages and programmes have shown
IN GROWING MY CAREER IN REVENUE, I MUST HAVE RISKED MY NECK SO MANY TIMES agement is, but they know that they need it because they’ve seen the results driven by it. In fact, a colleague was at a CEO Conference in Korea around four months ago, attended by a number of leading international hotel CEOs, many of whom said that they expect their replacements to come from the revenue management discipline and that hotel groups should have their revenue management discipline
440% year-on-year growth, which is a large chunk of change, not by changing the value proposition but rather by changing the way we operate online. In other words, don’t say something in 100 words that you can say in three — say it in three and it will probably sell. But, as of yesterday, we are two points up on web business and we are hoping to finish 2009 up by about 5%. So I think 5%
ABOUT IDEAS — A SAS COMPANY IDeaS’ core business is hospitality revenue management, providing best of breed revenue optimisation solutions (revenue management systems) to hotels. The company also provides a number of standalone tools and services, including the recently launched Rate Optimisation Service, which analyses a hotel’s existing pricing and makes recommendations on the pricing spectrum and associated pricing that should be in the market to optimise revenue.
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“Just a 1% improvement in pricing can directly increase operating profit far more than many cost cutting or sales improvement measures,” says IDeaS major account manager — EAME Guy Barnes. IDeaS Advantage is the consulting arm, providing support for strategic revenue management and outsourcing services. The company also provides a car park revenue optimisation solution and has also provided services for bus companies and event ticketing.
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Revenue management is starting to be applied to more than just rooms, with hoteliers talking about bringing solutions into food and beverage operations and meetings.
growth isn’t bad, in the current economic climate. What is your current revenue management strategy and how do you plan to build upon it in 2010? RD: I don’t know if it’s a revenue management strategy, but I want to look at how we can do more centralised, even though I know our company strategy is regionalisation. Can I get a passionate entrepreneurial business advisor [revenue manager], that really knows what they’re doing, in every hotel? Can they be of the right quality, calibre and passion? Maybe I’m too old fashioned but I used to, when there wasn’t a revenue management system, work 32 hours in a row because I was trying to find some formula, some pattern on pick-up and I wouldn’t go home until I had a number, or a formula or a number of rooms sold two days out, three days out, four days out and I would keep doing it until I saw the patterns. Finding similar people with that kind of passion, or training, you just can’t beat it — it’s either there or it’s not there — but I’m still as passionate now as I was and so I’m thinking ‘bring some more in’ and find five passionate people and at least have them even if it’s not to revenue manage hotels. I do see a point where I February 2010 • Hotelier Middle East
can start bringing it much closer to home and I do think I can make a lot of money that way. What are you doing to improve the training for revenue managers? RD: We’re looking at a revenue academy for next year, including a half day for GMs because I also think the general managers need to know more about the important elements of revenue management. Certainly there are some who know what they are talking about but there are others that don’t. We had it on the agenda for 2009, but given the other projects we had and cut backs and costs etc, we thought it would be better in the first quarter of 2010. So yes, there is a plan to get to a place where people are certified to our level for revenue management.
reservation manager who has been put in that position. We’re also finding hotel groups are looking outside of the industry to bring revenue managers in, because they might have different experiences and might be the people able to analyse the data and take the risks rather than the people coming through the hotel ranks at the moment. It’s definitely different interests and different skill sets.
What skills does it take to be a good revenue manager? RD: With revenue management you need to be more entrepreneurial, you need to be moving all the time, akin to the stock market, adjusting the price points based on length of stay; spotting a new demand as it materialises; identifying a new trend — whether it be up or down — and moving with it quickly. That’s the fun of it! Everything is moving and evolving constantly, and as a revenue manager you need to be able to react and above all capitalise on it. I think it’s passion but it’s also risk-taking. In growing my career in revenue, I must have risked my neck so many times — I mean, literally, the whole thing on the line and I like living there, on the edge of good. Maybe one day I actually will get fired, but it hasn’t happened so far! I must have gotten close, telling the chairman of Hilton when he called me for a booking once, ‘if you’re telling me to take it, I have no choice as you’re the chairman, but if you’re asking me, my answer is over my dead body!’, and he said ‘No problem Rex’ and he hung up — but what a frightening fight that was. That particular Tuesday night in the hotel, (they had owned it for about 10 or 11 years), but that particular Tuesday night turned out to be the highest Average Daily Rate (ADR) in the history of the building – the highest single day’s revenue
REVENUE MANAGEMENT OPERATED IN ISOLATION WITHIN THE HOTEL IS A COMPLETE WASTE OF TIME
GB: From my side there are a couple of things. One is that we’re working in partnership with Cornell University, where we’re sponsoring the revenue management course. We’re also working with the British Association of Hospitality Accountants and Oxford Brookes University, so the more it’s becoming a discipline, the more we’re going to get people coming into the industry with that foundation rather than those coming at it as a www.hoteliermiddleeast.com
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Hotelier Middle East • February 2010
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A good revenue manager must be willing to risk his neck.
THE IDEAS AND KEMPINSKI PARTNERSHIP Kempinski has been a client of IDeaS since 1999, at first using its legacy revenue optimisation solution in nine hotels. Since then these hotels have migrated over to IDeaS’ ASP delivered solution v5i and the IDeaS estate has grown to 17 Kempinski hotels. An IDeaS client relationship manager is assigned to Kempinski, who has day to day interaction with the hotel revenue managers. In total, 50% of IDeaS’ employees are dedicated to client servicing and support. Of the decision to work with IDeaS, Kempinski Hotels vice president of distribution and revenue management Rex Demanser says: “Well, for a start, IDeaS has no serious competitor as there is no one in the market that does everything that IDeaS does. I am absolutely convinced of that. There might be one other that gets close, but close is not good enough in this business. I think IDeaS also, as a company, is totally driven towards supporting their customers as that is the only income that they get. Which, of course, means that if they get it wrong, then their business fails! I think that provides something different in the way that customers are serviced”. Since teaming up with IDeaS, Demanser adds: “I think that, on the upside, we’ve definitely been able to have access to a much wider range of products and tools (which have since become essential), on top of consistent increased revenue across
February 2010 • Hotelier Middle East
the board”. Out of this selection of products, the solution that has proved most beneficial to Kempinski is IDeaS’ Best Available Rate (BAR) module. IDeaS major account manager — EAME Guy Barnes says: “The BAR module has arguably been the greatest success and through this IDeaS has been able to help Kempinski hotels to make optimal BAR pricing decisions, incorporating competitor rate shopping data and delivering the pricing to their internet channels through their channel manager”. Demanser agrees: “Yes I think the Best Available Rate by Length of Stay module has been great, the Group Pricing module has been absolutely essential, the Forecasting is getting better and better all the time. The integration with TravelClick RateView has just been perfect because we can really see how our business clicks. The EZYield Channel Distribution has been great too. So basically I can revenue manage in one clear screen within IDeaS and then distribute to all channels before you’ve even had coffee in the morning!” Most recently IDeaS has been able to support Kempinski Hotel Munich Airport directly through its IDeaS Advantage arm, following the departure of the hotel’s revenue manager, by providing interim outsourcing of revenue management services, adds Barnes.
IDeaS major account manager — EAME Guy Barnes.
in the history of the building. So they had no choice, the board had to write to me and say ‘congratulations’. But I was watching it for three months and it just shows you what you can do if you concentrate and go with your convictions. What would be your top three tips to hotels looking to transform their revenue management department? RD: I think revenue management, as a concept or as a philosophy, operated within isolation within the hotel is a complete waste of time — you may as well go home. If revenue management isn’t a culture across the executive team at a hotel, then you haven’t got everyone on board
to understand the power of it, what it can do and what it means. I think it has to be a collective management decision, and I think the biggest challenge to revenue management has always been built in isolation. It’s always one person, in one office at one desk so that would be one top tip — you have to be fully adopted! There is now talk of revenue management in food and beverage and in meetings, I mean it’s still a very un-talked about topic as we are really only talking about revenue management in most cases in terms of rooms. But there is an opportunity and it exists already, if you take the same ideas you can expand — that would be one tip. The other is that you can do all the revenue management in the world, but if you don’t have integration between a revenue management system and your property management system (PMS), or reservations don’t know what or how to sell on a phone call with a customer, well then you’re lost again. It has to be that they know how to take the pricing output and then sell it appropriately because at the end of the day, the sales are still happening in most cases between two people. I’m hoping that will change over time but it has not changed yet. Some companies are reporting 40% electronic production but maybe, maybe not. Finally, training! Don’t think the system will be like some magic wand! Wouldn’t that be great? If you just bought a revenue management system and just plugged it in? But it just doesn’t work that way. You’ve got to work at it and you’ve got to keep advancing and I think IDeaS generally is. GB: Honestly, I think my three top tips would simply be education, culture and training. HME www.hoteliermiddleeast.com
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Green Giants Hotel engineering experts met at The Palace — The Old Town in Dubai to discuss not just how to save costs or energy in hotels, but how to save the world ROUNDTABLE How has the economic crisis impacted your engineering department? Abdul-Quddus Sheikh: I think we saved a handsome amount last year in the Palace hotel and we did very well as compared to the previous year’s utilities’ consumption. We did not spend much on buying specified energy saving devices other than energy saving bulbs, timers and motion detectors — we found other ways and means to fulfill our needs. Plus the slow period forced us to look into alternatives to control our property operation, maintenance and energy costs (POMEC). It’s my second complete year in this hotel and as a result of team effort we saved a good amount of money against our budget of 2009. In 2008, the total energy cost was AED 7.9 million (US $2.2 million), which reduced to AED 6.9 million ($1.9 million) in 2009. So the total energy savings compared to last www.hoteliermiddleeast.com
Sameh Zaki: The main issue with engineering is that we are a spending department. We are actually the expenditure department, most of the other departments are revenue generating, so we are on the spot for any saving. We are the main expenditure and at the same time the main saver — any dirham that you are saving is a complete dirham. The pressure was there but we proved that engineering can come up with the solution. We saved something like 20% on electricity and with water something like 12%. Everyone I think has done his best and we have survived the tough time.
opened a hotel in 2008 and accepted the challenge — there were many advisors who said is that right, but we proved the other way. From day one we knew we were opening in a crisis so had to be more innovative. The consultant was very clear that you have to allow the building to run for two years before you establish an energy conservation programme but we did not wait — we said that’s a theory, let’s think practically, how we can save? So my F&B, engineering and housekeeping teams surveyed every nook and corner to see how we could bring down the energy bills. I do not have the figure to compare to my previous one because it did not exist, but I can confidently say that we must have saved 30-35%.
Madan Kulkarni: With the participation of our colleagues we became more innovative. It’s not that when everything is good we don’t implement energy conservation projects, but it gets you more in depth. We
Tito D’Costa: We opened our apartments last year and during this crisis we had to come up with new ideas. The contractors were trying to do it cheaply and put in normal bulbs, but we pushed them to go for CFL bulbs
year’s consumption was more than AED 1 million less, or 17.8% less.
and we succeeded. The entire apartments are fitted with CFL bulbs. And with the chillers we adjusted the temperatures; the workers wanted them to be very cool but we were on their back not allowing them to play with the temperatures. Wael Farouk: I will take it from there and I will really challenge myself and the engineering teams, because I have been asking myself if we can do it this year, then why have these things not been implemented for the previous year, why did we not focus on this in previous years? This is a question; I do not have an answer, this is a question for the group. That is a good point. Everyone has been talking about energy saving without any prompting; is this your main priority going forward? SZ: We had a very big challenge in Jumeirah last year. We did have our own sewage treatment plant but we got the opportunity to connect to the Hotelier Middle East • February 2010
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THE STAFF COMES UP WITH GREAT IDEAS ON ENERGY SAVING Tito D’Costa
municipality. So in doing that we lost the irrigation water that was coming from the sewage treatment plant, so we had to use the fresh water. One of our guys came up with an idea — we backwash the swimming pool, waste water is thrown to the drainage — why don’t we collect it and treat it and use it for irrigation? And actually we did that and this minimised the usage of fresh water by around 75%. Now we are collecting all the waste water from the different systems in the hotel and using it for that. WF: For my side I will say that focusing on people gives the best result. So what we have done is inspired by
Earth Hour; in our associate housing we have a weekly earth hour and every Saturday from 8-9pm we are encouraging our people to reduce the light to the minimum. We have created Marriott Business Council Green Committee –— every hotel is represented by two people — so what we are doing in the seven hotels we are doing at the same time. We started only with reducing the lights; I’m planning to add more activities to that day. When you build these things into the people, you are sure they will do it in life.I don’t have solid figures because I have implemented this only six months ago, but for sure these thing count to their attitude and their awareness. They know now that I’m not saying this because I want to be seen as a good engineering department — but because we really have a responsibility and a role to play. This was highlighted at the UN Climate Change Conference a few weeks ago — the ice is melting at 5km per hour so we have to start doing something. So we are putting our focus on energy not because we are saving it, but because it is a matter of saving our world and we are lucky that the challenge is coming to us because they rely on us as engineers — we have the tools to help.
Can you give some practical examples of the other steps you have taken to save energy that might inspire others to do the same? TC: We have ‘hotel talk’ every month — a meeting with the staff. The staff comes up with great ideas on energy saving. For example, on the emergency staircase someone said it should have motion sensors so a light should go on only when someone goes out there and we have already implemented it.
fill it with ice and then put your cold cuts on that. That’s a standard process. But I asked him how much of that ice melts? He said the ice they need is only 15% of the total content they fill it up with, but that they want the effect. It’s show business! So we came up with the idea that the lower base should still give the ice effect by putting plastic bubbles in it — it has reduced the quantity of ice by 80%. In today’s climate we are required to question everything.
AQS: We introduced a ‘good idea box’, not only about energy saving but also guest experience, back of house improvement etc. That ignited the idea of forming a green committee. We have done about 10/11 sessions of that. That has guided us a lot as everyone here has said — people on the floor come up with ideas. A junior chef said to use very dry wood to burn the charcoal, not the high tech fuel we had been using and we implemented that. An IT guy programmed the system so everyone’s computer goes to sleep when not used and they did the same thing on the common printers.
What role do you think the government should play in helping you achieve your energy saving goals? Do you think Dubai government’s aim of reducing carbon emissions in hotels by 20% by 2011 is achievable? AQS: That will not work as only the responsibility of the hotels. What happens in the city is they build a building and put four chillers on top and say ‘make it work’. But these are figures everyone knows — 60-65% of energy consumption in this country is air conditioning (AC). To have that air conditioning coming from a chilled water plant would save — just as the whole of Europe is on central heating. So we should really emphasise that the government should come up with a compulsion that every single building should have chilled water from central plants. The chiller’s life varies from 10-12 years. Crowne Plaza Dubai is 15 years old now…they should set up a pipeline for them [to a central plant rather than replacing
MK: The cooks came up with an idea — we have a cold cuts section on the buffet where you take a large ice tray,
AL BUSTAN ROTANA IS THE ONLY HOTEL WHERE I COULD IMPLEMENT A SOLAR ENERGY SYSTEM — IT’S FANTASTIC Abdul-Quddus Sheikh
February 2010 • Hotelier Middle East
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39 PEOPLE
GETTING TO KNOW YOU: HOTELIER’S EXPERT PANEL Sameh Zaki Director of Engineering Hilton Dubai Jumeirah & Hilton Dubai Creek
Tito D’Costa Chief engineer Al Diar Siji Hotel
Currently cluster director of engineering for Hilton’s properties in Dubai, Sameh Zaki has worked with Hilton for 25 years. He has been in Dubai for 10 years and previously worked at Hilton Abu Dhabi for four years. Prior to his hospitality career, Zaki was in the army for 12 years.
Tito D’Costa started his career in Dubai with The Metropolitan Hotel Dubai on Sheikh Zayed Road. He worked there for ďŹ ve years before moving to Fujairah, where he heads up the engineering department at Al Diar Siji Hotel and also the sister apartments, which opened last year. In total, D’Costa has been with Al Diar for 11 years.
Abdul-Quddus Sheikh Director of engineering The Palace — The Old Town Abdul Quddus Sheikh began his hotel career with Bahrain Holiday Inn in 1978, when he was the handover engineer from the contractor. Since then he has worked with Holiday Inn in Muscat, Janbu, Abu Dhabi and Salalah. Remaining with InterContinental Hotels Group, he came to Crowne Plaza Dubai for the pre-opening and worked there for nine and a half years. Sheikh moved to Rotana, working with Al Bustan Rotana in 2001 and opening also Fujairah Rotana and Al Murooj Rotana in Dubai. He took up his current role at The Palace — The Old Town during the pre-opening in October 2007.
Madan Kulkarni Director of engineering The Address Downtown A mechanical engineer, Madan Kulkarni entered the hotel industry in 1978 with Taj hotels in Mumbai. He worked with Taj and Oberoi in India and moved to Dubai 10 years ago to join Ritz-Carlton. Kulkarni took up his current role with The Address Hotels and Resorts in mid2008. He could not imagine doing any other job, saying he was “struck like a magnet with this industry�.
Wael Ahmed Farouk Director of engineering Courtyard by Marriott & Marriott Executive Apartments Green Community, Dubai A civil engineer and graduate from Alexandria University, Wael Farouk worked in maintenance until 1997 but not in the hotel ďŹ eld. He entered the industry in 1997 when he joined Marriott as assistant chief engineer at Marriott Renaissance Hotel in Alexandria in Egypt. Then he moved to Dubai for the opening of Courtyard Marriott in 2004 as director of engineering. He is currently cluster director of engineering for the Courtyard Marriott, Marriott Executive Apartments Green Community and Marriott Executive Apartments Creek, and cant see himself working in any other ďŹ eld.
OUR FOCUS ON SAVING ENERGY IS A MATTER OF SAVING OUR WORLD Wael Ahmed Farouk
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Hotelier Middle East • February 2010
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it again]. The law should be adding something into that. MK: The new buildings have to take into consideration all these aspects. In my new building, I cannot say whether we have achieved 20% carbon emission saving because every litre of oil, whether diesel or petrol, produces nearly 2.5kg of carbon dioxide emissions. If I save three units that means I am saving one litre of petrol oil. The moment you have saved 3000 units you have already saved 10,000 units of petrol oil. That’s how the figures work. So if he has saved AED 50,000 ($13.617) in a year, he has only achieved the figure that I required to save the energy or carbon emission by one third of the source. WF: I have something to say also and maybe my colleagues will agree with me. You know there is a new rule for cameras / CCTV — you are not allowed to renew your annual licence unless you bring a certificate from Dubai police. I strongly believe that a big focus will not be achieved with regard to energy-saving unless similar requirements are put on the renewal of the licence. The problem is it is expensive to implement ideas. Solar panels, for
example, are very expensive but the impact is great. In some properties, especially the old properties, you need to make ROI projects, you need to spend some money just to have the saving and unless you [make this law], yes awareness will change and some light bulbs will change, but this massive change will not come through small projects. SZ: I don’t understand why this country is not using solar energy That’s another good point! Why doesn’t the UAE use solar energy? AQS: Al-Bustan Rotana is the only hotel where I could implement a solar energy system. In summer we used to achieve hot water at almost 90ºC. The hot water energy costs in any hotel is around 10 to 12% of total energy cost. Out of this 10 to 12% we saved 75% of the hot water energy
WE ARE ACTUALLY THE EXPENDITURE DEPARTMENT, MOST OF THE OTHER DEPARTMENTS ARE REVENUE GENERATING, SO WE ARE ON THE SPOT FOR ANY SAVING Sameh Zaki
February 2010 • Hotelier Middle East
FROM DAY ONE WE KNEW WE WERE OPENING IN A CRISIS SO HAD TO BE MORE INNOVATIVE Madan Kulkarni
cost (or 9.75% of total hotel energy cost) It is ongoing and saving a huge amount in that hotel. It’s fantastic — people have to think like this. SZ: From the drawing board phase you have to think like this. You need the space for the solar panels — I don’t have this space. You can have all your water, all your AC run by solar but you need something like the whole roof to be covered with the solar panels. There is a big investment, but there is a very big saving. MK: It brings down your operating costs too. TC: We have already put solar heaters in the staff accommodation. AQS: If a law can be implemented for the CCTV, why can law not be implemented for a building with solar technology?
MK: Some countries have started making this mandatory. In parts of Europe they have made it mandatory to use only CFL energy saving bulbs and stopped producing domestic demand on high energy consumption incandescent bulbs. In our building, almost 75% of the public area is LED and cold cathodes — if you take 40w of normal bulbs versus 4w of LED, it has the same effect for the desired public areas and has a life span of 50,000 (LED) hours versus 1000 (incandescent) hours. So not only do we we save 36w per spot, we achieve the cooling effect in the building and the longevity of the bulbs is 50 times more. WF: The short answer for your question of why is this not implemented now is because it is optional now. It is not mandatory. HME What are your views on this issue? Send them to: louise.oakley@itp.com www.hoteliermiddleeast.com
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Bringing F&B to life With the F&B market becoming increasingly cut throat as customers expect more bang for their buck, creating theatre in your restaurants could help ensure you stay ahead of the game s F&B professionals get pumped up for the event of the month — Gulfood 2010 (February 21-24) — where sourcing new products and services, meeting suppliers and hunting down new trends is the mission, they have one overall objective — making money for their outlet/s. This means staying ahead of the game by ensuring their F&B concepts are innovative and tempting to both hotel guests and general consumers alike. In order to stay competitive, F&B directors are being forced to be increasingly creative. No longer is it enough to serve good food and provide good service — interactive concepts and experiential dining are expected. It’s what has become known as restaurant theatre and according to many F&B professionals, outlets across this region have become adept at putting on a show due to challenging market conditions. According to Grand Millennium Dubai director of F&B Nils Fromm, the region is actually fairly advanced in this respect: “The Middle East, and especially Dubai, is in many ways more advanced in creating new concepts
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as the competition is fierce. The investors also look for new and exciting ways of creating a theatre in order to push revenues and ROI.” But even though the Middle East F&B industry is “one of the fastest growing in the world”, it has a “long way to go” before it catches up with the likes of London and New York, which according to Hilton Dubai Creek director of restaurants Luca Gagliardi, have mastered the art of interactive dining and creating theatre. Beat Enderli, executive chef at Shangri-La Barr Al Jissah Resort and Spa, Oman, concurred but drew attention to Asian examples of theatre such as hawker stalls in Singapore, food courts in Thailand and food streets in Beijing. “In comparison, interactive cooking and dining is still not that common in the Middle East,” he added. But Craig Cook, director of F&B at four upcoming Mövenpick properties in Dubai, said he believed the Middle East had “a great opportunity to innovate” and to “become a ‘blueprint’ for others”. So, Hotelier set to work finding out the best way to liven up your outlets. Hotelier Middle East • February 2010
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WHY THEATRE? Cook’s colleague Peter Drescher, VP culinary Middle East at Mövenpick Hotels & Resorts, said theatre was important because these days, “diners don’t go to restaurants simply to eat — they want to be stimulated in some way and come away remembering the experience”. Cook added: “I think first and foremost it is not about regurgitating what has been done before. Entertainment in this day and age must be fresh and lively and should breathe new life into outlets. “Interesting demonstrations, performers, technology or media walls from inside the kitchen and most importantly, music, are all key in providing the overall experience and showmanship.” Guests are also eager to see and be part of the action according to Fairmont Bab Al Bahr executive chef John Cordeaux. “Guests want to engage and be engaged more than ever,” he said. “It is important to offer theatre-style dining as guests have a better understanding of the work behind preparation and cooking processes.” He said it was important to “break down barriers and create open spaces so that the energy and activ-
INVESTORS ALSO LOOK FOR NEW AND EXCITING WAYS OF CREATING A THEATRE IN ORDER TO PUSH REVENUES AND ROI Nils Fromm Director of F&B, Grand Millennium Dubai Al Khiran Restaurant & Terrace at Al Bustan Palace InterContinental Muscat in Oman.
ity from the kitchen can merge with the guests in the dining room”. Beach Rotana Abu Dhabi F&B director Dirk Bansemer agreed and said diners should be allowed to create parts of their meals themselves, while Al Bustan Palace’s director of F&B Rocco Bova said he would like to see a chef’s table inside the kitchen as well as singing waiters.
GET IN THE EXPERTS Creating theatre in restaurants is all well and good, but is it fair to dump the responsibility of generating drama on the F&B team? “Food and beverage professionals have always tried to capture entertainment facets related to their businesses, but let’s be honest, a food and beverage director is not an entertainment director,” said Mövenpick’s Cook. He noted that global hospitality entertainment leaders employed
DINING HAS LONG LOST ITS FUNCTIONAL FOCUS ON EATING AND TRANSFORMED TO THE EXPECTATION OF ENTERTAINMENT, DISTRACTION AND EXPERIENCE, WHICH LEAVE THE GUEST WITH A LASTING MEMORY Thorsten Strauss Corporate development, Duni AB
February 2010 • Hotelier Middle East
entertainment directors to drive this component of their business. Mövenpick’s Drescher stressed that hotel operators and owners should not be afraid to seek and invest in the services and knowledge of specialist consultants. “We must offer more than just food and that is why we bring in the creative talents of food and beverage consultants, interior design consultants, graphic artists, kitchen consultants and even celebrity chefs, all of whom should be involved in the creation of restaurants,” he said.
BACK TO BASICS Hilton’s Gagliardi reminded F&B directors to keep it real and ensure outlets offered concepts that were
compatible with the “existing positioning of the restaurant”. “For example, Verre by Gordon Ramsay would never look into performance-style concepts; it would never work with the understated mood of the restaurant where our focus is on innovative food and personalised service,” he explained. David Bedinghaus, executive chef at Mövenpick’s four new Dubai properties warned that in the race to find new concepts to bring in the bucks, it was easy to overlook the obvious. “I ask the question; if you were to have an absolutely perfect dining experience without theatre, would you be satisfied? How many establishments can say they genu-
KEY POINTS FROM THE EXPERTS The Middle East has an opportunity to lead innovations in the F&B ‘entertainment’ field. Hotels should look to employ entertainment directors. Hotels are looking to source custom-made equipment to kit out their outlets in order to stand out from the crowd. Diners don’t just go to restaurants to eat — they go for emotional stimulation too.
It’s important to get the ‘basics’ right before working on theatrics. Operators and owners should not be afraid to invest in specialist industry design consultants. Authenticity is integral to theatrical experiences for guests. Restaurants must offer theatre that is compatible with the existing dining experience in that outlet. To execute theatre concepts, good staff must be employed.
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F&B TRENDS FOR 2010
Grand Millennium Dubai, where F&B director Nils Fromm says it is good staff that bring an outlet to life.
inely deliver all the basics correctly? The industry can sometimes get so wrapped up in differentiation that one might say the new USP would be delivering the basics correctly.â€? Rafes Dubai general manager John Pelling, who boasts an F&B background, said he was not convinced that adding more interactive options to restaurants was what the market needed. “I think the region has over-killed the special chef
appearance act, live cooking stations and cooking classes,â€? he said. “It is not rocket science: based on the feedback received from the various focus groups conducted at Rafes Dubai prior to the realignment of Fire & Ice, doing the basics to perfection and offering consistency is more important,â€? said Pelling, referring to the hotel’s signature restaurant’s relaunch as a steakhouse at the end of last year.
Restaurant guests will demand a greater transparency and responsibility of product and pricing from food and beverage professionals. A resurgence in organic food is expected as concern over unhealthy processed foods grows. Casual ďŹ ne dining — sophisticated diners demand an unpretentious environment in hotels. Aesthetic designs of restaurants will become as important as the quality of the food and service. New highs in customer dining expectations on two dimensions: authenticity and congruence. Each F&B outlet must be holistic and offer truthful experiences — very important in today’s world of trickery and uncertainty. F&B businesses will be under pressure to reduce their carbon footprint and look for green solutions.
Celebrity chef Gary Rhodes.
More celebrity restaurants will pop up across the region. Live cooking concepts and show cooking will become more popular. Outlets will be demanding hightech energy saving equipment. Increased demand for a personalised service and private and niche dining experiences. Eating less, nibbling more plus food-sharing concepts. Home-made food and artisangrown produce. The emergence of more bar concepts with the skilled barman becoming the ‘celebrity chef’.
Source: Thirty of the region’s top F&B directors and chefs
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Hotelier Middle East • February 2010
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TOP TOOLS In terms of whether or not the equipment, tools and services required to help create theatrical concepts were widely available, many agreed they were, although outlets at the top-end said they sought customised rather than mass-market offerings. Some also noted that cooking equipment was often designed for back of house and was therefore “ugly” when used front of house, while others said many suppliers lacked stock and that waiting times of up to three months were common. Grand Millennium’s Fromm stressed that although the hardware was important, the software — the staff — should not be overlooked. Radisson Blu Hotel Dubai Media City operations manager Marco Aveta agreed: “What is really needed is more professional staff to run these multi-million projects the way they were intended. Many times we see outlets opening with very high standards that are soon left to drop by unqualified personnel and cost cutting in the wrong areas.” Al Murooj Rotana F&B director Dominique Jossi said it was for this reason that he focused on the interaction of his team with the guests. “Providing a personalised service is the most economical and effective way to keep the customer’s interest,” he added. Madinat Jumeirah Resort executive assistant F&B manager Marianne Zaiser Fitzgerald said the prop-
GUESTS WANT TO ENGAGE AND BE ENGAGED MORE THAN EVER John Cordeaux Executive chef, Fairmont Bab Al Bahr
February 2010 • Hotelier Middle East
erty looked to the talent of its employees to create theatre. “Some of our waiters are good at painting — all of our backdrops at the brunches are created by team members — and some are great singers,” she said. “This creates a personalised service and is received well internally.”
I THINK THE REGION HAS OVER-KILLED THE SPECIAL CHEF APPEARANCE ACT, LIVE COOKING STATIONS AND COOKING CLASSES John Pelling GM, Raffles Dubai
WHAT THE SUPPLIERS SAID According to Thorsten Strauss, who heads up corporate development for European table-setting firm, Duni, theatre is “the key to success” in the F&B arena given that the consumer of the 21st century demands an experience. “Dining has long lost its functional focus on eating and transformed to the expectation of entertainment, distraction and experience, which leave the guest with a lasting memory,” he said. The challenge is to “touch the customer on an emotional level” and stimulate their senses. Products such as table covers and napkins that look and feel good helped set the scene, he continued. Strauss advised restaurants to avoid “overbearing gestures or actions like a noisy presentation or wild open kitchen”, and instead, “use many smaller details that constantly reinforce the total experience”. Tableware specialist Villeroy & Boch AG said “emotional porcelain shapes“ added a third dimension to the dining experience. “Creating special patterns and plates brings interior design to the table,” said Georges Schaaf of the firm’s hotel and restaurant division. “Examples are at The Monarch Dubai or at Spectrum on One at the Fairmont, Dubai.” Gasso Middle East CEO Payam Kashani held a similar view, explaining that the company’s range of Special Order products could be tailormade for outlets in various shapes and sizes to attract guests’ attention. “For example, in Al Ain at the Union Palace Restaurant we provided a Seafood Boat Buffet in the shape and design of the traditional Middle Eastern ‘dhow boat’. It is the main attraction of the restaurant and all guests who visit take a picture of it as memorabilia,” said Payam. German combi-steamer specialist Convotherm said it had installed the-
THE VALUE OF GULFOOD Most F&B professionals with whom Hotelier Middle East spoke said they were keen to attend Gulfood for a multitude of reasons. David Bedinghaus, executive chef at Mövenpick’s four new Dubai properties, said he was on a trend-spotting mission plus he liked to “observe the social behavior of those who attend — what do they do, how do they do things, why do they do these things — as observation is knowledge”, while his colleague, director of food and beverage, Craig Cook, said he looked forward to interacting with vendors, partners and industry professionals at a show that “serves as a great catalyst for new ideas”. Al Bustan Rotana Dubai F&B director Franck Royer and Fairmont Bab Al Bahr F&B director Bastian Breuer both said they wanted to source new products at this year’s Gulfood. Hilton Dubai Creek director of restaurants Luca Gagliardi summed up reasons to attend Gulfood nicely: “It’s
W Doha’s Antoine Pravin is on the hunt for a “buffet-size lollipop-making machine”.
a great way of networking with a host of new suppliers, and brushing up on industry knowledge,” he said. Desert Palm executive chef Lionel Boyce added: “Pretty much every chef in Dubai will be at Gulfood looking for better ingredients to work with to give their venue the edge”. Lastly, W Doha director of B&F Antoine Pravin said he was looking for something “completely new” at Gulfood, “like a buffet-size lollipop-making machine where you choose your favourite flavour and not the same old deep-fryer or chocolate fountain”.
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F&B BOX OFFICE HITS Al Bustan Palace InterContinental, Muscat: features a tea lady who not only serves tea, but performs acrobatic stunts in Chinese Restaurant China Mood. Beach Rotana, Abu Dhabi: interactive cooking shows and the use of Teppanyaki and rotisserie grills, pizza and Tandoori overs, plus an authentic Chinese Oven that has been used in Asia for more than 2400 years. Verre by Gordon Ramsay: the restaurant is currently being remodelled to create “a new dimension of interactive dining”.
The Mina Seyahi complex in Dubai will soon host a brunch involving three outlets including Blu Orange.
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Shangri-La Barr Al Jissah Resort & Spa, Oman: a combination of live entertainment, restaurant hostesses from the guest country, skilled showmanship chefs such as a noo-
dle maker from Xian and original and tasteful decorations and table setups are employed at the hotel’s Chinese outlet. Raffles Dubai: a live band plays jazz in Fire & Ice to fit the New York steakhouse style atmosphere. The Mina Seyahi complex, Dubai: has ambitious plans that include introducing a ‘Bubblicious’ brunch in February involving three restaurants — Blu Orange, Hunters and Spice — with free-flow ‘bubbly’; a theatrical afternoon tea in the hotel lobby involving acrobats from China; and Spanish-themed evenings with a flamenco concert. Fairmont Bab Al Bahr, Abu Dhabi: plans to offer cooking classes this summer located in its custom chocolate atelier — The Chocolate Gallery.
A lively display from table-setting specialist Duni.
atre kitchen concepts at several hotels across the region including The Chedi Muscat, Rotana Hotel Yas Island and Jumeirah Beach Hotel. The company offers workshops to show chefs how to use the equipment optimally in their day-to-day business, “thus they are more confident to present their work openly to the guests”, explained marketing manager Claudia Bußmann. “Dinner is becoming an event and the guests wish to see the chef preparing their meals,” she added.” So while the jury is still out on exactly how far hotels should go in bringing their F&B outlets to life, as long as consultants, designers, operators and suppliers continue to work together to devise innovative ideas, there are many options for a theatrical dining experience. There’s no excuse for dull dining anymore. HME
Hotelier Middle East • February 2010
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Gulfood gives the big picture The key message for Gulfood 2010 is bigger, better business, says Gulfood project manager Goli Vossough, who spoke to Hotelier Middle East about the exhibition’s exciting expansion SHOW MANAGER Q&A By how much will Gulfood grow in 2010 compared to 2009 and previous years in terms of floor space, anticipated exhibitor numbers and anticipated visitor numbers? Gulfood is the fastest growing trade exhibition in the Middle East with year-on-year growth anticipated for every aspect of the show — exhibitor participation, footfall and product and service offerings. With an increase in floor space of more than 20%, this year’s exhibition will take up one million square feet of space to showcase the latest products, trends and industry innovations from more than 3300 participating companies. We anticipate more than 45,000 visitors from over 152 countries worldwide. From where is that growth derived? With the Middle East and neighbouring regions targeted by the global food and beverage industry as key growth markets for the forthcoming decade, the importance and influence of Gulfood has reached new levels. Dubai is increasingly exporting food products around the world with around AED 3.5 billion (US $950 million) traded in 2008 according to recent figures from Dubai Export Development Corporation. The emirate also re-exported AED 4.1 billion (US $1.1 billion) worth of food products in 2008. Gulfood is without doubt, one of the most important trading platforms for the global food and beverage industry in the region, which is reflected in our growing number of exhibitors and the number of countries participating. There will be 76 countries represented at Gulfood 2010 with country pavilions such as Argentina, Greece, Italy, Jordan, Lebanon, Spain, Turkey and the US www.hoteliermiddleeast.com
Vossough: the Gulfood Majlis Club will provide a commercial networking platform for professionals.
GULFOOD IS WITHOUT DOUBT, ONE OF THE MOST IMPORTANT TRADING PLATFORMS FOR THE GLOBAL FOOD AND BEVERAGE INDUSTRY IN THE REGION
ABOUT GULFOOD 2010 WHEN: February 21-24 WHERE: Dubai International Convention Centre (DICEC) BACKGROUND: Organised since 1987, Gulfood is a strategic platform for buyers and sellers within the F&B and hospitality trade to conduct direct business face to face. WHAT’S NEW? The inaugural Gulfood Conference; the Gulfood Majlis Club; inaugural Gulfood Awards.
THE STATS: The trade-only show reported record visitor numbers in 2009 with 45,735 trade professionals from 148 countries in attendance. PRICE: AED 60 for a day pass or AED 120 for a four-day pass. OPENING TIMES: 11am-7pm from Sunday February 21 to Tuesday February 23 and 11am-5pm on Wednesday February 24. INFORMATION: www.gulfood.com
all reporting unprecedented growth at Gulfood. This year we also welcome new companies from Kuwait, Libya, Peru, Portugal, Sudan, Ukraine and Uruguay. What areas in particular are you expanding or introducing for the 2010 edition and why? With 20% increase in floor space we are now able to triple the size of Ingredients Middle East and locate it alongside Gulfood in the new Sheikh Saeed Halls, creating an all-encompassing environment for the food industry. The Processing and Packing sector will now also have its own dedicated area, reflecting the impressive growth in this area of the food industry in the past 12 months. Hotelier Middle East • February 2010
51 GULFOOD What else is new for 2010 and why? This year we launch the annual Gulfood Awards, which will recognise the passion of individuals and companies behind the region’s exceptional food and drink industry. With 21 categories designed to reward innovation and excellence, the search is on for the best food and drink brands, services and suppliers. We will also launch the Gulfood Majlis Club — a commercial networking platform for senior industry professionals to develop new business opportunities.
Vossough: the first Gulfood Conference will enable delegates to interact with business leaders.
We have also introduced new country pavilions including Columbia, Peru, Portugal and Uruguay. What key trends have you noted in 2009 that you are responding to with the 2010 edition of the show? Many visit Gulfood knowing they can hear about the latest industry trends as Gulfood is used as a yard stick for the industry. There are many different trends that will impact the show, from the latest flavours to more sleek designs in restaurants and cafés. The fundamental trends we have recognised in the industry are increasing pressure to deliver more cost effectively without compromis-
THE FUNDAMENTAL TREND WE HAVE RECOGNISED IS INCREASING PRESSURE TO DELIVER MORE COST EFFECTIVELY WITHOUT COMPROMISING QUALITY ing quality and the need for more creative marketing of culinary offers to continue to excite and interest end users and grow the bottom line. As Gulfood attracts 3300 exhibitors and 45,000 trade visitors and provides a strong trading platform for them to share knowledge and inspiration, we are launching the first Gulfood Conference under the title ‘Global Trends in Food, Beverage & Processing’. One of the highlights of
GULFOOD’S TOP TRENDS Some of the trends being highlighted by exhibitors at Gulfood, Ingredients Middle East and in the processing and packaging sectors of the show include: QUICK FIX: Convenience is becoming increasingly important, with time-saving products such as ready-to-eat ingredients reporting universal growth. We expect to see more ultraquick foods, bagged salads and side dishes that are still healthy. FANCY: People are choosing premium, gourmet foods. Fish in particular is undergoing a gourmet makeover globally, with a number of
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new exhibitors at Gulfood this year introducing new breeds and products. LAYERING OF FLAVOURS: Flavoured oils and vinegars, pairings of fruity and tangy flavours and Asian, Central American and Latin American flavours are in vogue. LOW, NO AND LESS: Low fat trumps low carb in what people seek in labels. Trans-fats are on their way out. Demand for low calorie and light products will continue to grow. Watch for allergen-free claims on food labels. Source: Gulfood 2010 organiser Dubai World Trade Centre.
the first day is a debate entitled ‘Top Ten Trends: The Industry Debates’. Why did you decide to introduce the Gulfood Conference and what will the event discuss? In an industry that is as fast-paced and competitive as the food and beverage industry, knowledge exchange and keeping abreast of market trends is critical. Keynote speaker Saed Al Awadi, CEO of Dubai Export Development Corporation, will highlight Dubai’s credentials as an international trading hub while Alex Andarakis, CEO of Al Islami Foods, a pioneer in the GCC’s processed halal food market, will provide a detailed overview of the global halal landscape and the responsibilities and opportunities for companies operating in this domain. The conference will allow delegates to meet the business leaders driving growth in one of the most important global markets, glean information and market analysis, and identify new methods, efficiencies and opportunities to win new customers and grow business.
Restaurants in the Middle East are increasingly looking to the ‘wow’ factor to compete by introducing live cooking and interactive concepts — how does Gulfood respond to that trend? Gulfood provides an excellent platform for the global industry to showcase the very latest innovations, product offerings and techniques from around the world. The importance of the region’s F&B industry is reflected in the considerable investment many exhibitors make in the production of their stands and in the high-profile chefs and industry personalities that are invited by companies to demonstrate their products during the exhibition. We will also welcome many new companies this year bringing innovative products to the Middle East. They include global brands such as Hershey, Kraft and Symrise. Of course, the much anticipated Emirates International Salon Culinaire provides an excellent opportunity for chefs to showcase their expertise and challenge existing boundaries in the world of food. This year more than 1300 chefs will compete for top honours in a number of internationally-recognised categories. They will be evaluated by a panel of 25 renowned experts, mandated by the World Association of Chefs’ Societies (WACS) to judge culinary events across the globe. What will be the key message from Gulfood 2010? The key message for Gulfood 2010 is bigger, better business. As the largest and most influential trade exhibition in the region for the F&B industry, it has never been more important for businesses and professionals to see and be seen at Gulfood. HME Hotelier Middle East • February 2010
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Food for thought The 2010 installment of Gulfood in Dubai is set to be the biggest in its history, with 45,000 industry professionals expected to attend and the launch of the exhibition’s first conference SHOW PREVIEW t’s that time of year again when clued-up hospitality and F&B professionals flock to Dubai International Convention Centre (DICEC) to meet with suppliers, debate industry issues and unearth new trends. They are, of course, heading to Gulfood, an exhibition which in 2010, looks set to be bigger and better than ever before. Organiser Dubai World Trade Centre (DWTC) claims this year’s installment of the show — the Middle East’s largest food, drink, food service and hospitality exhibition — which will take place from February 21-24 — is set to attract more than 45,000 industry professionals with an “unprecedented” 3300 companies exhibiting this year. DWTC has underlined the importance of Gulfood by highlighting the GCC’s rise to fame in the global food and drink arena. Considered a key emerging market alongside the likes of China, Russia and Latin America, countries in the GCC, North Africa and India have been earmarked as “windows of opportunity” for the industry according to the 2009 A.T.Kearney Global Retail Development Index. “With almost 90% of Middle East countries dependent on food imports, tremendous opportunity
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February 2010 • Hotelier Middle East
exists for food importers, packagers and manufacturers of food processing machinery to generate bigger, better, business at Gulfood,” said DWTC CEO Helal Saeed Almarri. “Gulfood provides an ideal platform for businesses involved in every segment of the food and beverage industry to both source and showcase their products and services.We are working closely with our most valued trade clients to provide a package of measures to increase the value-offering at the show,” he said. Gulfood 2010 will be the biggest event in the show’s 15-year history, taking up one million square feet of dedicated space while extra components such as Restaurant & Café Middle East and Ingredients Middle East run concurrently with the show. This year also marks the introduction of a number of value-added initiatives such as the inaugural Gulfood Conference, which complements the Dubai International Food Safety Conference — organised by the Dubai Municipality to address food safety systems, regulations and best practices. Also new this year is the launch of the Gulfood Majlis Club — a platform for senior industry professionals to network and develop new business opportunities. Additional features include Emirates International Salon Culinaire in association with the Emir-
The Salon Culinaire at Gulfood will present exciting and intricate work from some of the region’s aspiring young chefs.
TREND PREDICTION:PRICE Tolga Sezer Lacin Complex executive assistant manager food & beverage, Mina Seyahi Complex, Dubai “I believe there will be a rationalisation of pricing in 2010. Restaurants will serve smaller portions at the same quality and reduce prices. Instead of working with a 50% profit and an empty restaurant, restaurants will work with a 30% profit and a full restaurant.”
TREND PREDICTION:QUALITY Kieron Hunt Director of F&B, IHG Dubai Festival City “The trend in F&B for 2010 for the Middle East will be to continue delivering high quality but with reduced prices and costs. As a result, sourcing great produce that is local to the region will also be a key trend. There will also be more effort made to retain business through loyalty programmes and benefit cards compared to previous years.”
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Restaurant and Café Middle East is an exhibition showcasing products and services dedicated to the business of restaurants and cafés. Participating exhibitors range from interior and design
specialists to hardware and technology providers. The idea behind this show-withina-show is to provide restaurant and café buyers with a one-stop shop for hunting down trends, products and innovations.
INGREDIENTS MIDDLE EAST
Ingredients Middle East is the only event in the region that covers every aspect of this complex sector. Leading companies from around the world, who cultivate, extract, process or supply raw materials and ingredients used in the manufacturing of finished food, beverage and health food products, will be on hand, to discuss and share their knowledge.
Gulfood promises plenty of drama with the Salon Culinaire, the inaugural Gulfood Awards and the first conference. .
GULFOOD PROVIDES AN IDEAL PLATFORM FOR BUSINESSES INVOLVED IN EVERY SEGMENT OF THE FOOD AND BEVERAGE INDUSTRY TO BOTH SOURCE AND SHOWCASE THEIR PRODUCTS ates Culinary Guild, where more than 1300 chefs compete in front of a panel of 25 international judges, and the inaugural Gulfood Awards, which will reward the achievements and innovations of the region’s food and drink industry. Almarri says the line up of events at Gulfood 2010 proved the show continued to “support industry needs, promote knowledge exchange and recognise excellence in the industry”.
WHO’S ATTENDING? Many of the region’s F&B directors with whom Hotelier spoke said they intended to visit Gulfood. IHG Dubai Festival City director of F&B Kieron Hunt said his entire team would be attending in order to source “new and innovative ideas” and “smarter and more efficient tools and products” to enhance the complex’s dining experiences. www.hoteliermiddleeast.com
“By attending this year, we hope to strengthen our key account supplier relationships, identify new ideas that will cross over to guest experiences and aim to demonstrate the importance of supplier/ customer relationships by sharing information and feedback,” he said. However, some F&B professionals such as Tolga Sezer Lacin, complex executive assistant manager food & beverage, Mina Seyahi Complex, Dubai, said he had stopped attending all such exhibitions. “I don’t know Gulfood and to be honest, all these exhibitions are the same — too commercial and too boring for me,” he told Hotelier. “I have done four hotel openings and when choosing your equipment, you have to be creative and go out and find artists to work with — something you don’t find in a factory. Where the budget allows, I always go for tailormade options.” HME
THE INAUGURAL GULFOOD CONFERENCE The inaugural Gulfood Conference will take place during the four-day exhibition and bring together international experts to discuss future trends, critical issues and operational best practice in the food and beverage industry under the title: ‘Global trends in food, beverage and processing’. The structure combines keynote speakers, seminars and networking sessions giving delegates the chance to debate and exchange views. Key topics include global market trends in food; practical pricing strategies, how firms can insulate themselves from future volatility; product certification; training and innovation in the bakery sector; innovations for small businesses and market trends in the beverage and dairy industries, while specialist sessions span topics such as IT; food and drink processing; ingredients; packaging trends; food and drink consumer
trends; business management; import/ export; Halal; and marketing. THE SPEAKER LINE-UP: Elizabeth Martins, head of MENA, Business Monitor International Jan N Bergman, president EMEA, The NutraSweet Company Virginie De Beco, regional marketing director, Del Monte Richard Hall, chairman, Zenith Sudhakar Tomar, chair person, CICILSIPTIC (World Pulses Organisation) Shonil Chande, food and drink analyst, Business Monitor International Frans Kampers, research co-ordinator Bionanotechnologies, Dubai Municipality/ Wageningen UR For more information visit www.gulfood.com/conference
Hotelier Middle East • February 2010
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Gulfood galore With thousands of products on show at Gulfood 2010, Hotelier guides you through some of the latest, greatest and most innovative products destined to be a hit at this year’s exhibition
Alfocan SA Tel: +34 95 421 67 00 Fax: +34 95 421 59 37 Email: alfocan@terra.es Web: www.alfocan.com CATCH OF THE DAY Spanish crayfish processing company Alfocan will be at this year’s Gulfood presenting its array of catches. The firm supplies freshwater crayfish and promises to provide buyers with a 100% natural product, without chemical substances or food-additives. Alfocan, from Seville in southern Spain, only sell crayfish caught in the wild.
Coppini Tel: +39 744 813 778 Fax: +39 744 814 375 Email: info@coppini.com Web: www.coppini.com
A SNIPPET OF ITALIAN FLAVOUR Italian cuisine wouldn’t be the same without a spoonful of olive oil and this extra virgin olive oil from Coppini is designed to meet that purpose. A box of Drago Chef extra virgin olive oil consists of easy grab 10ml packets, handy for busy restaurants and take-away outlets. The product is available to purchase in the form of either six small cases each containing 100 packets or 600 loose unit packets.
Simply Tomatoes Tel: +61 3 5455 4237 Fax: +61 3 5455 4305 Email: sales@simplytomatoes.com.au Web: www.simplytomatoes.com.au
SIMPLY TOMATOES Australian company Simply Tomatoes will be showcasing its green tomato products at this year’s show, as well as launching its Marinated Saltbush range. Selected exclusively for the food service sector, Simply Tomatoes has teamed up with Native Oz Cuisine to provide saltbush products such as Marinated Saltbush Skewers and Marinated Leaves. These products offer a healthy, versatile Australian product, high in vitamin E and with a natural range of mineral salts, anti oxidants, calcium and crude protein.
Back-tech Tel: +43 3178 3244 0 Fax: +43 3178 3244 90 Email: office@back-tech.com Web: www.back-tech.com
AUSTRIAN BAKING TECHNOLOGY Back-tech, from Austria, will be displaying its Compact Roll Plant and MegaStar machines at this year’s Gulfood. Back-tech’s Compact Roll Plant is suitable for different types of dough such as wheat, rye, multi-cereal and sweet yeast raised dough; the machine’s components make it an ideal system for bakers. The gentle dough processor Back-tech Mega-Star is designed to meet the demands of quality-conscious bakers who require a fully automatic, speedadjustable modern dough dividing and moulding machine.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
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Hotelier Middle East • February 2010
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Schwob AG Tel: +41 79 400 37 14 Fax: +41 34 422 50 94 Email: weingarth@schwob.ch Web: www.schwob.ch COVER UP Schwob will be showcasing its full range of fair-trade products from certified organic sources to visitors at Gulfood 2010. The firm will present its newest collection of ecologically and socially compatible table and bed linen.
Bettcher Foodservice Gmbh Tel: +31 653 171 387 Web: www.bettcher.com YOLK BE MAD TO MISS IT Pollux, from Swiss-firm Bettcher Foodservice, is an egg pasteuriser that includes a variety of boiling functions and can store up to 60 cooked eggs at perfect consumption temperature for five hours without further coagulation. Castor, also from Bettcher, is a holding unit, which can be used in breakfast buffer presentation. It stores up to 30 cooked eggs in safe conditions for immediate consumption for three to five hours.
Sealed Air Tel: +39 02 933 2415 Fax: +39 02 933 2382 Email: roberta.ghezzi@sealedair.com Web: www.sealedair-emea.com
UP ALL NIGHT X35 Energy will be at this year’s Gulfood exhibition showcasing the latest addition to its range. Insomniya is a concentrated energy hit, which claims to have no carbs, no sugar and no calories. The drink promises to provide up to five hours of energy, is available in a 60ml bottle and offers a blend of amino acids and B vitamins. X35 Energy Middle East FZCO Tel: +971 4 228 7654 Fax: +971 4 228 7659 Email: uae@x35energy.com Web: www.x35energy.com
SEAL THE DEAL Sealed Air will be at this year’s Gulfood presenting its Cryovac Food Packaging products and services. It will bring a range of products — MAP concept Cryovac BDF, Cryovac LID, Mirabella, Darfresh 3-webs and special shrink bags, which are designed for the covering of whole fresh poultry products.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
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Scandic Food A/S Tel: +45 75 71 18 00 Email: ksh@scandic-food.dk Web: www.scandic-food.dk EASY BLEND Streamline Smoothie Base from Scandic Food is designed to help the creation of easy-to-make creamy and cool smoothies. The base product makes it easy to prepare smoothies in a short amount of time and appeals to the current popular smoothie trend across the Gulf region. It is ready to use from the pack — all an outlet’s staff member needs to do is blend it with fruit, berries and other ingredients.
FLORIDA FRESH Froze Fresh orange and grapefruit juices from United Juice Companies of America are available freshly squeezed or gently pasteurised. Made from fresh sweet Florida oranges, and grapefruits that are picked, squeezed and bottled, the juices are then quickly frozen using the firm’s proprietary freezing technology. The company uses what it calls “the finest sweetest fruit” and added nothing more to its juices. Each variety is available in a one litre bottle and can come branded or with a private label.
United Juice Companies of America Tel: +1 772 562 5442 Fax: +1 772 562 9229 Web: www.unitedjuice.com
Spiroflow Tel: +44 1200 422 525 Fax: +44 1200 429 165 Web: www.spiroflow.com
BULK BAG DISCHARGER The Bulk Bag Discharger from Spiroflow comes with an integral flexible screw conveyor that is ideal for transferring bulk materials or ingredients to processing or packaging batches. Nine models are available, ranging from simple frames for non-dusty products to machines designed specifically for the dairy industry.
Chef Middle East Tel: +971 4 347 3455 Fax: +971 4 347 4844 Email: chefdxb@chefmiddleeast.com Web: www.chefmiddleeast.com
PURE PURÉES Les vergers Boiron’s, available from Gulfood exhibitors Chef Middle East, is a range of fruit purées designed to enable mixologists to shake top-quality fruits into cocktails. The company says that the fruit puree works in the same manner as fresh fruit that comes straight out of a blender.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
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Signature MENA in collaboration with The Human Resource Department of Dubai Department of Tourism and Commerce Marketing (DTCM)
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ture created a customised pilot program whereby potential job applicants and other DTCM employees contact the head offices and be professionally directed through the proper service channels. For this to happen, Signature, in collaboration with Human Resources of DTCM, created a “Magic Formula” whereby through it’s implementation, applicants and “internal customers” receive clear directions delivered with exceptional customer service that mirrors the levels of excellence the Department strives for. The monitoring of the training is being done through the use of mystery shoppers that test the customer service level offered. In order for this program to be successful Signature made sure to establish “Buy In” from the participants. “Buy In” is an important element in Signature’s approach because in order to implement change, participants must first understand the reasoning behind signature’s service methodology. In addition to the Mystery Shopping services Signature provides, the HR Department enjoys the benefits of reinforcement trainings as well as onsite mystery shopping visits. Signature’s philosophy is that “through a constant process of training, coaching and the use of performance measurement tools, a lasting change in your employees’ customer approach can be achieved” To find out more about Signature’s programs and services, please contact us at:
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SWISS MADE
Hotelier Middle East • February 2010
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MOBILE REFRIGERATION The ShowMaster is a mobile refrigerated display case designed with sleek, smooth edges, which provides a hygienic presentation of food. The temperature range is kept between 4°C and 10°C, maintaining a key HACCP rule. The food can be arranged clearly and the display case can be used as a salad bar, breakfast buffet or dessert display case.
ShowMaster Vertriebs GmbH Tel: +49 431 6 48 06 21 Fax: +49 431 6 48 06 50 Web: www.show-master.de
Fawaz Refrigeration Tel: +971 4 228 2733 Email: fawazsls@emirates.net.ae COPELAND BY EMERSON The Copeland Scroll Outdoor Condensing Unit (Z )Xis the latest addition to Emerson’s product line for food service applications. It features real-time monitoring of compressor operating conditions and initiates actions to keep the compressor within a safe oz ne, thereby boosting the reliability and reducing the service time. Other Emerson products, available from FawazRefrigeration, include the Scroll water cooled unit with co axial coil and iVlter Screw Compressors.
Saba International Company Tel: +971 4 8814135 Fax: +971 4 8814138 Email: sabaco@eim.ae Web: www.saba-inter.com ENERGY BOOST Saba International is introducing its new product called Recharge at this year’s Gulfood event. Recharge has 1000mg iVtamin C per can, has no caffeine and the energy benefits come from electrolytes and sugar. The beverage adheres to Malaysian Halal standards and is suitable for consumption by children, elderly people and pregnant women, with no side effects reported.
Al Diyafa Dubai Tel: +971 4 343 4727 Email: diyafa99@emirates.net.ae GOURMET DISPLAY Gourmet Display, whose products are available in the UAE through Al Diyafa, is launching its Cold Concept collection at Gulfood. The Cold Concept display features a square plate, with either porcelain or high-grade melamine underneath. The porcelain set-up chills food presentations for up to two hours, while the melamine set up chills presentations for up to one hour.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
www.hoteliermiddleeast.com
21 - 24 February 2010 www.gulfood.com
French Pavilions at Gulfood 2010 FOOD, HOTEL & EQUIPMENT EXHIBITION
21-24 FEBRUARY 2010 DUBAÏ - WORLD TRADE CENTER
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21 century marketing The industry has entered a watershed year for the region’s hotel marketers. Lee Jamieson explores the technological trends that are set to change the face of hotel marketing further still MARKETING he information age is in full swing and it has given rise to new concepts like web 2.0, social networking, augmented reality and microblogging. At a fundamental level, these new developments all share a common characteristic: they are reinventing the ways in which people communicate in their daily lives. This has presented marketing managers with a whole new set of distribution channels with which to connect with their customers, build loyalty and promote their brand’s values. The astute marketers that have embraced these new developments are changing the way the industry approaches marketing, forever altering the hotel marketing manager’s role.
T
Libra OnDemand CEO Gregory Hopkins.
February 2010 • Hotelier Middle East
“In the past few years, I’ve seen the role of marketing manager change a lot,” says Aloft Abu Dhabi online marketing manager Daniel Spijker. “Things like branding, events, online marketing and distribution have added to the traditional role of managing advertising channels and in some cases have seen the marketing role separate from sales. “Although I do think marketing and sales teams should be separate, I think both departments should ultimately report to a single person overseeing sales, marketing and business development. In the larger hotels or more marketing-focused brands like Starwood’s W Hotels, you will find a separate director of marketing, but in most hotels the teams are smaller and this is simply not feasible.” Marketing and sales have always worked closely together, but marketers are emerging in the information age as a more active, autonomous group with distinct goals. They have become more aggressive in how they position and differentiate their brand by actively engaging with their customers in new ways. Successful marketing today relies on a hotel’s ability to embrace new technology and use it to foster an open, two-way dialogue with customers. “According to Trendwatching.com, consumers today depend more on reviews than on adverts when making a booking decision,” explains The Brand Union Middle East executive director of strategy Michael Hughes. “Historically, people have always listened to the opinions of their
MARKETERS ARE EMERGING IN THE INFORMATION AGE AS A MORE ACTIVE, AUTONOMOUS GROUP WITH DISTINCT GOALS friends and family because they are more likely to be honest and share both positive and negative brand experiences. We are more likely to trust the input of fellow travellers than advertising promises from a brand. It’s not what they say, it’s what they do that really matters.” With the technological infrastructure now firmly in place, it is easy for customers to share experiences on websites like Tripadvisor.com, where users can rate, compare and comment on the quality of a hotel’s hospitality experience. Potential customers can also research with speed and efficiency through online social networks and gather realtime, authentic experiences from around the world. Therefore, social networking now plays a very important role in communicating the brand’s values and protecting its reputation. “Hotels must see the social media scene as a chance to engage their consumers with their brand,” continues Hughes. “If hotels are able to keep track of websites and blogs and listen to what their consumers
are complaining about, then they can easily address the issues, fix their flaws, know their strengths, explore their threats and pursue their opportunities,” he adds.
NEW TOOLS Hotels have recognised that a huge proportion of their guests are actively using social networking sites like Facebook and Twitter and want to exploit these channels of communication. A strong presence on these sites enables hotels to open a dialogue with their guests on the customer’s preferred communication channel. In this sense, social marketing is building upon traditional methods, not replacing them. The new technology simply allows hotels to operate in the same space as their customers, achieve deeper market penetration and develop more focused campaigns around distinct target markets. “The hotel industry has always utilised the trendiest tools to attract the right audience,” explains JAL Hotels public relations manager www.hoteliermiddleeast.com
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Aloft Abu Dhabi has utilised Facebook to interact with a potential target audience it would not normally be able to reach and create a “buzz” around the newly opened hotel. Campaign reach: 6500 (80% in the UAE) Daniel Spijker says: “We have been giving away many prizes including a trip to Beijing, and even organised a big party
i ll ffor our FFacebook b k ffans. Thi especially This event attracted 200 people and generated US $10,000 in revenue. More importantly, we’re already seeing evidence that awareness of our brand is spreading virally through the social networks of our Facebook fans”.
Haruya Kusakabe. “At the moment, social marketing and online tools have become a primary focus. “We’ve seen social marketing b become more integrated in hotel m marketing strategies because o its ability to attract a diverse of cl clientele, its ease of use and its af affordability. Many hotels in the re region are now actively using soc social marketing and are fully en engaged,” he says. N New tools require new res resources. Although these website sites are free to join and use, maintain taining large online communities can quickly swallow up resources. The Therefore, the greatest challenge for m marketing managers is to balance the time spent maintaining presence on social networks with the amount of business generated. While the importance of online presence is a difficult thing to factor into a ROI calculation, weak presence within the online community could damage the brand’s reputation in the long-term.
BEST PRACTICE
SOCIAL MARKETING IN ACTION: ALOFT HOTELS ON FACEBOOK
The Brand Union Middle East executive director of strategy Michael Hughes says reviews are crucial.
“I think that the effectiveness of social networking sites is debatable because the maintenance and monitoring of these sites tends to be labour-intensive,” explains Hilton Worldwide regional director of marketing Arabian Peninsula and Indian Ocean Oliver Schmaeing. “Currently, there is no glob-
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Hotelier Middle East • February 2010
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IMPROVE YOUR SOCIAL MARKETING: TOP TIPS If you are entering social marketing for the first time, invest your resources in one network at a time.
Talk in the same language used by your customers on social networking sites — but always remain ethical.
Tackle negative online content and be open about how you have addressed your flaws — don’t ignore this.
Put a dedicated team in place to manage your social marketing campaigns.
Align your marketing plan with emerging technologies and be the first to capitalise.
ally accepted method of measuring results or outreach and everyone is learning how to maximise the potential of these new tools,” he continues. “The best route to improve your social marketing strategy is to have a dedicated team to manage these sites. Unless the information posted is current and updated regularly, these sites can quickly lose their effectiveness,” adds Schmaeing.
NEW CONVERSATIONS Develop a strategy to convert fans and followers on social networking sites into sales.
Have a measuring system in place to ensure that your social marketing campaigns generate sufficient business.
Use a service like Omniture or Google Analytics to track and understand your hotel’s online performance.
Ensure that social marketing supplements, rather than replaces, traditional marketing campaigns.
If social media doesn’t fit with your brand, don’t do it!
February 2010 • Hotelier Middle East
The burning question for 21st century marketers is how to harness and exploit the phenomenal growth of social networking. Twitter has more than 33 million users sharing one million messages (or “tweets”) per hour. More than 300 million people are also using Facebook. The industry’s need for new tools to exploit these market developments has prompted a range of newto-market products. “These days there is good software for everything you do online,” says Spijker. “For social media, there is some great software available to manage your Twitter, Facebook and other social media accounts. Personally I only use Tweetdeck occasionally for Twitter because I manage most of my websites through one online CMS system. This allows me to make realtime changes to my websites and landing pages all in one go.” One company currently entering the Middle East offers a complete hospitality-specific CRM
THE MOST IMPORTANT TECHNOLOGICAL DEVELOPMENT PREDICTED FOR 2010 IS THE SHARP INCREASE IN SMARTPHONE USERS package designed to leverage sites like Facebook, Twitter and LinkedIn. Libra OnDemand enables hotels to monitor and engage with user profiles across a range of social networking sites as part of their marketing strategy. “In recent years social media has become a new social discipline,” explains Libra OnDemand CEO Gregory Hopkins. “Our system facilitates stronger, more personal customer relationships and gives hotels more control over their brand’s online reputation by identifying, tracking and responding to customer grievances (or praise) in real-time,” he says.
users. SmartPhones represent the Middle East’s fastest growing and most profitable segment of the mobile telecom market and according to research from Informa Telecoms and Media, sales are expected to grow by 41.7% year-on-year in 2010. From six million in 2009, SmartPhone sales are expected to top 8.5 million in 2010. SmartPhones make social networking more accessible by ensuring that users are permanently connected. Ultimately, this will increase the number of users and depth of market penetration — offering new unprecedented opportunities for astute 21st century hotel marketers.
NEW POTENTIAL There is little doubt that 2010 will be a watershed year for hotel marketers. The technology surrounding social media is set to grow, which, in turn, is likely to increase the importance of social networking for hotels. “Hospitality and technology thrive on innovation and efficiency,” explains Hilton’s Schmaeing, “and we will see the technological advances of the future aid our operational efficiencies through streamlined designs, easier access and quicker downloads.” The most important technological development predicted for 2010 is the sharp increase in SmartPhone
Hilton Worldwide regional director of marketing Arabian Peninsula and Indian Ocean Oliver Schmaeing.
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NEW REALITIES
Aloft Abu Dhabi online marketing manager Daniel Spijker believes marketing is separate from sales.
“Undoubtedly, a main development will be the growth in mobile marketing,” confirms Spijker. “With more and better devices coming to market, mobile internet speeds increasing, and the availability of better software, this will definitely grow into a profitable marketing
In 2010 it seems likely that hotel marketers will witness a convergence of sophisticated social networking applications and new levels of technological accessibility. Some pundits predict that this will completely alter the way in which customers view and evaluate individual hotels, hospitality concepts and bookings. SmartPhone enabled guests can instantly write reviews, make comments and upload photographs as they experience it. Similarly, potential customers no longer need to research in advance — they can read up about the best place to eat or stay en-route by reading as-it-happens reviews of local hotels and restaurants. Technology in the 21st century will create a mixed reality for customers. Their physical world view will be
mixed with and informed by the virtual networks to which they belong — an idea that has become known as an augmented reality. “Hotels can benefit greatly from augmented realities,” explains The Brand Union’s Hughes. “With this service, consumers will be able to use their cellular phone to locate, view, book, and review hotels. They can review local events taking place in different venues, attracting not only those staying at the hotel, but also those passing by and looking for something to do.” “We’ve already seen augmented reality starting to spread across the world with GPS applications on cellular phones. So, there is no doubt that augmented reality will kick off and become a norm for all travellers in the future,” he asserts. With technology shifting and maturing, it is difficult for marketing managers to fully capitalise upon these current developments. For some, questions still remain over the value of social marketing
because its wider potential has yet to be proved. In addition, the Middle East’s status as an international hub complicates matters further and makes it difficult for hotel marketers in the region to identify and target their customers. “Hoteliers in the Middle East are quite active and creative in using social networking tools to attract customers,” says JAL Hotels’ Kusakabe. “But hoteliers in the region must continue their market research in the social networking field in order to reach a larger portion, if not most, of their customers.” HME
USEFUL MARKETING CONTACTS: THE BRAND UNION Telephone: +971 2 443 7828 Web: www.thebrandunionme.com Email: info.abudhabi@thebrandunion.com FUSION MARKETING MANAGEMENT Telephone: +971 4 391 2149 Web: www.fusion-mgt.com Email: mktg@fusion-mgt.com
Commercial laundry equipment
for the hospitality sector A World Leader IPSO is one of the world’s leading brands of commercial laundry equipment. The IPSO laundry equip-ment is offered to various markets, from hospitality & health care institutions to coin-operated laundries and commercial laundries. IPSO’s extensive product range consists of washer extractors, tumble dryers, ironers and auxiliary equipment, all available from small to large capacities. IPSO focuses on durability, serviceability, quality and performance, but also recognizes the increasing demand for attractive design and ergonomics. For more info, please contact us or contact the IPSO ‘Certified Partner’ for UAE: PROFESSIONAL LAUNDRY EQUIPMENT TRADING PO Box 2246 | DUBAI-UNITED ARAB EMIRATES Tel. +971 42 82 11 24 | Fax + 971 42 82 19 22 E-mail: plet-sales@alhathboor.com ALLIANCE INTERNATIONAL BVBA | Nieuwstraat 146 | B-8560 WEVELGEM (BELGIUM) Tel. +32 56/41 20 54 | Fax +32 56/41 86 74 | info@ipso.be | www.ipso.be
www.hoteliermiddleeast.com
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Web: www.alhathboor.com/plet.htm
Hotelier Middle East • February 2010
BEST PRACTICE
channel. For example, just take a look at the number of iPhone applications already available for the hotel industry.”
69 COUNTRY UPDATE: OMAN
Lee Jamieson explores the emergence of Oman as a sophisticated tourist destination with strong brand values that set it apart in the Middle East COUNTRY FOCUS man is busy rebranding itself. Less than 25 years ago, it was a non-welcoming country with little interest in tourism. Today, Oman has proved itself to be a sophisticated tourist destination with strong visibility — and it is fast attracting the attention of big-name international hotel brands. Last year the Oman Brand Management Unit launched a new “tourist friendly” national logo for the country, dropping the traditional Omani dagger. Brand Oman was officially born in January 2009 and prides itself on promoting “the essence of Arabia” by focusing on the county’s rich cultural heritage. With resilience in the face of economic downturn, liberalisation of its foreign direct investment policies, and heavy investment into its tourism development, including a US $3 billion expansion of its airport infrastructure, Oman has never been so attractive to hotel developers, owners and operators.
O
A BRAND IS BORN With diminishing oil and gas resources, Oman has been diversify-
www.hoteliermiddleeast.com
ing its economy through the development of its tourism industry. This year marks the halfway point for His Majesty Sultan Qaboos’ Vision 2020, which outlines the strategic direction for Oman’s travel and tourism industry. A key development in this plan was the creation of a new Ministry of Tourism in 2004. Alongside developing Oman as a high quality desti-
Oman is both green and mountainous, with beach and desert too.
nation, the Ministry also deployed representatives into its European source markets with measurable success. For example, Euromonitor International reports that arrivals from the UK have experienced a compound annual growth rate of 45% since 2003. “According to the World Travel and Tourism Council, Oman’s tourism sector is one of the fastest
THE RESULT IS A SERIOUS COMMITMENT TO SUSTAINABLE TOURISM DEVELOPMENT QUITE UNLIKE ANY OTHER COUNTRY IN THE REGION
growing in the world,” says Rotana chief operating officer Imad Elias. “The growth rate is attributed to an increase in lodging capacity and efforts made to market the sultanate as a tourist destination, which presents lots of opportunities for a management company like Rotana.” Oman’s strategic and financial commitment to its tourism industry has created an attractive business environment for hotel developers, owners and operators. “There has been a definite increase in tourism in Oman over the last few years, which has had a positive impact on the hotel industry,” says InterContinental Hotels Group vice president for development Phil Kasselis. “This year the country is on course for an 11% increase in tourists, taking it past the two million mark as Gulf residents look for an alternative holiday destination in the region. “Against the backdrop of the country’s strong economic performance, travel and tourism has now emerged as one of the main pillars of the Omani economy. This creates a strong foundation for investors and the financial institutions backing those investors.” However, hoteliers should be mindful that Oman’s emergence as Hotelier Middle East • February 2010
COUNTRY UPDATE: OMAN
70
10 REASONS TO INVEST IN OMAN Maturation of the market is providing fresh investment opportunities in most sectors.
Arrivals into Oman are set to more than double by 2013.
An effective network of market-based representatives provide good reach into Oman’s key source markets.
The expansion of Muscat International Airport is set to increase capacity to 24 million passengers (from three million passengers in 2007).
Three new airports are planned for Oman’s key tourist areas.
A clear tourism strategy has been put in place by Oman’s Ministry of Tourism.
Recent liberalisation of Oman’s fiscal policies has attracted higher levels of FDI.
A Hotel Missoni is planned for Muscat in 2012.
a tourist destination is not yet complete and could be prone to growing pains. “While Oman is an attractive leisure destination it is not yet equipped to deal with large scale tourism and events,” explains Mövenpick Hotels and Resorts senior vice president in the Middle East, Andreas Mattmuller. “It is therefore important for developers and owners to ensure that their product fits the market.” The Omani government has also adopted a cautious approach towards mass tourism and has focused its efforts on fostering growth within specific sectors and niches. Arguably, this has enabled distinct brand identities to emerge across the industry.
LUXURY BRANDS Oman’s priority was to foster growth at the high end of the luxury rating, enabling it to reap the financial benefits of tourism while minimising its impact upon local resources. Its reputation for highend hospitality experiences continues to attract luxury and boutique brands. For example, Rotana has recently secured the new management contract for the five-star Salalah Rotana Resort, a 400-room property opening in early 2012.
Restrictions on foreigners owning freehold properties has been lifted in tourist areas.
Marriott’s Jeff Strachan will respect Oman’s focus on sustainable tourism at its Salalah property.
A Hotel Missoni, Rezidor’s latest boutique offering, is also planned for Oman. This designer brand has been developed in co-operation with the iconic Italian fashion house Missoni and will open as a 250-key property on a self-sufficient resort 30 kilometres from Muscat in 2012. As you would expect in the current economic climate, work has slowed on many high-end developments. Worst hit was the Blue City, Oman’s landmark tourism development project, which had its US $400 million bonds downgraded by Moody’s in Q4 of 2008. Despite its financial woes, the developer has confirmed that the first phase of the 34 square kilometre project is on schedule and will be delivered later this year. Phase one will deliver the first of its 16 hotels: a boutique property operated by Anantara.
cat because this market has been largely served by international brands aimed at the luxury traveller,” explains The Rezidor Hotel Group area vice president, Marko Hytönen. “Park Inn offers a fresh and innovative alternative to this by delivering a great, yet affordable hotel experience.” The market need for mid-range concepts has also caught the eye of Premier Inn Hotels’ managing director Darroch Crawford, who has recently signed a joint venture agreement to develop Premier Inn properties in the country. “I think that the country has a shortage of affordable hotels in several key locations and is therefore ideal for Premier Inn investment,” says Crawford. “Strategically speaking, we plan to establish Premier Inn as the leading brand in our sector of the market across the
MID-MARKET BRANDS
Competitive operational costs for businesses.
Tourism concepts can easily be built around Oman’s naturally rich cultural heritage. Rotana chief operating officer Imad Elias.
February 2010 • Hotelier Middle East
Rezidor’s Marko Hytonen: Radisson won an award for being the best employer for Omani nationals.
Maturation on the higher end of Oman’s luxury rating has created a need for mid-market brands and international operators are looking to expand their portfolios appropriately. For example, last year saw Rezidor launch Park Inn, its flagship mid-market brand, for the first time in Oman. “We recognised an opportunity for our Park Inn brand in Mus-
FORECASTING OMAN’S ARRIVALS: 2010-2013 Year
'000 people
2010
3,256.3
2011
4,280.5
2012
5,775.7
2013
7,461.7
Source: Euromonitor International
www.hoteliermiddleeast.com
71 COUNTRY UPDATE: OMAN
Rotana will open a 400-room hotel in Salalah in 2012.
Marriott Salalah, a 237-room property, will open this year.
Protecting the landscape is critical to Brand Oman.
OMAN HOTEL PERFORMANCE IN 2009
whale watching, diving and natural reserves for visitors to explore. It also has an unprecedented number of UNESCO-classified world heritage sites for its size.” The Environment Society of Oman was established in the same year as Oman’s Ministry of Tourism and is tasked with preserving Oman’s environment — both natural and cultural. The result is a serious commitment to sustainable tourism development quite unlike any other country in the region. “Oman is determined to promote itself as a high-quality destination aimed primarily at responsible tourists,” explains Mövenpick’s Mattmuller. “This is all part of Oman’s
GCC, so Oman is a key target for us. We are currently working on our first property in Muscat followed by projects in at least two other areas.”
Date
Occupancy (%)
ADR (US $)
RevPar (US $)
Jan 09
68.3
297.61
203.29
Feb 09
67.6
262.78
177.52
Mar 09
63.0
252.91
159.36
ECO-BRANDS
Apr 09
60.9
269.52
164.01
The slow-but-steady trend for responsible tourism in Oman has followed the Omani government’s policy of fostering a quality tourism experience — attracting visitors to its cultural heritage rather than promoting its beaches. “Oman is becoming a popular ecodestination and is internationally known for its wildlife,” says IHG’s Kasselis. “There is bird watching,
May 09
49.4
206.19
101.84
Jun 09
41.1
172.81
71.04
Jul 09
40.3
169.41
68.34
Aug 09
38.6
167.44
64.56
Sept 09
36.6
182.38
66.70
Oct 09
63.7
244.66
155.78
Nov 09
67.6
236.62
160.02
YTD (Nov 09)
54.2
232.66
126.00
www.hoteliermiddleeast.com
Source: STR Global
Hotelier Middle East • February 2010
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73
OMANISATION
Darroch Crawford: Oman is a key target for Premier Inn.
long-term vision, which is based on sustainability, cultural heritage, quality and security. These attributes offer great opportunities to investors in the long term.” By fiercely protecting its Arabian culture and heritage, Oman has managed to foster a travel and tourism industry that rejects the cookie-cutter approach. Instead, Oman offers an authentic experience to visitors and hotels are encouraged to work alongside communities in a responsible manner. This has informed the approach of Marriott, which is entering Oman in 2010 for the first time via Salalah with its 237-key property. “This is a very authentic country and we do not want to turn up and impose ourselves upon the local community,” explains Marriott Hotels International area director
According to Euromonitor International, Omani nationals currently account for 37% of the tourist industry’s workforce. By the end of this year, the government wants to increase this to 85%. Having a high percentage of Omani nationals working in the industry will be successful on two fronts: not only will it create jobs for Omani locals, it will also strengthen the authenticity of Oman’s tourism experience and cultural heritage. However, achieving the government’s Omanisation targets is forcing hoteliers, already coping with an international talent squeeze within the hospitality industry, to reconsider their recruitment strategies. “The high Omanisation targets are challenging,” says Hytönen. “This is particularly true for the private sector and our recruitment strategy in Oman differs to that in
other Middle East countries. We are aggressively recruiting, training and promoting local staff within our hotels and we are very proud to confirm that we have managed to achieve a very high Omanisation percentage,” he continues. “In fact, Radisson won an award for being the best employer for Omani nationals.” For Omanisation to be successful in the long term, hoteliers need to work closely with local colleges to foster a strong Omani workforce capable of dealing with the demands of the hospitality industry. They also need to develop and progress Omani nationals into middle management roles, where the talent squeeze is most acute. This has become a primary concern for most of the major operators, including IHG, which claims that Al Bustan Palace InterContinental Muscat has the highest quota of Omani employees than any other hotel in the sultanate. “Not only do we ensure that 85% of our staff are Omani nationals,” explains Kasselis, “but we also ensure that Omani nationals work across all hierarchical levels by putting in place succession plans to grow our Omani staff into managerial roles.
OMANI NATIONALS CURRENTLY ACCOUNT FOR 37% OF THE TOURIST INDUSTRY’S WORKFORCE
COUNTRY UPDATE: OMAN
for sales and marketing in the Middle East, Jeff Strachan. “We prefer to grow into an integral member of the community, properly and responsibly. It is always wise to be understanding of the local customs and nuances and be sensitive to the opinions of the local community.”
Phil Kasselis says IHG ensures 85% of its staff at Al Bustan Palace InterContinental Muscat are Omani.
“At IHG, we have developed training and development programmes for our employees to help build and maintain a strong common culture, helping to minimise our attrition rate and entice great new employees from both the local and international communities.” It seems that Oman is in control of its own destiny. Its rapid expansion is being strategically channelled by the government’s strong, long-term vision and adherence to a clear set of brand values. Also, the Omani authorities are unafraid to put in place difficult policies to protect its greatest assets: its cultural heritage, natural beauty and its people. Having earned its much-deserved respect from hotel operators, Brand Oman is here to stay. HME
OMAN’S UPCOMING PROPERTY PIPELINE Company
City/Region
Brand
Property
Rating
Rooms
S
A
R
V/C
Opening
Marriott
Salalah
Marriott Resort
Salalah Marriott Resort
Five-star
237
0
0
0
0
2010
Golden Tulip
Al Qurm
Golden Tulip
Golden Tulip Al Qurm, Muscat
Four-star
180
0
0
0
0
2010
Rotana
Sohar
Centro
Centro - Sohar
Three-star
300
0
0
0
0
2011
Movenpick Hotels & Resorts
Salalah
Movenpick
Movenpick Resort Salalah
Five-star
400
0
0
0
0
2012
IHG
Duqm
Crowne Plaza
Crowne Plaza Duqum Resort
Five-star
228
0
0
0
0
2010
IHG
Muscat
InterContinental
InterContinental Al Madina A’Zarqa
Five-star
248
0
0
0
0
2012
IHG
Muscat
Holiday Inn
Holiday Inn Muscat
Midscale
220
0
0
0
0
2011
Banyan Tree Hotels and Resorts
Sifa
Banyan Tree
Banyan Tree Sifa
Five-star
133
0
0
0
0
2012
Banyan Tree Hotels and Resorts
Sifa
Angsana
Angsana Sifa
Five-star
150
0
0
0
0
2012
Premier Inn
Muscat
Premier Inn
Muscat
Three-star
180
0
0
0
0
2012
Fairmont Hotels & Resorts
Muscat
Fairmont
Fairmont The Wave, Muscat
Five-star
300
0
0
0
0
2012
The Rezidor Hotel Group
Sohar
Radisson
Radisson Sohar
Four-star
209
0
0
0
0
2012
The Rezidor Hotel Group
Sifah
Missoni
Missoni Sifah
Five-star
250
0
0
0
0
2012
Jumeirah Hotels and Resorts
Muscat
Jumeirah
Jumeirah Al Salam Yiti Resort
Five-star
350
0
0
0
0
2010
Key: S = Suites | A = Apartments | R = Residences | V/C = Villas/Chalets
www.hoteliermiddleeast.com
Hotelier Middle East • February 2010
Supplier Focus • News • Analysis • Innovations • Trends
Frette holds big bash for 150th anniversary at Burj Al Arab Celebrations include catwalk designs created from company’s luxury linen EVENTS Luxury linen supplier Frette has celebrated its 150th anniversary by holding a major event at the Burj Al Arab under the patronage of the Italian Embassy in Dubai. According to Malek Loeb, managing partner of EF Gulf which in 2009 was appointed the local partner for Frette in the UAE, “a high calibre gala event was vital to present the new era of Frette in the UAE along with the celebration of the 150-year anniversary of the brand”. She said: “Last year, EF Gulf became the official sole distributor for Frette Retail — along with the hospitality exclusive licence — with an ownership of a luxury shop, two other points of sale and three more to come within the next two months. “The idea was to host 150 guests for the Frette 150 years’ anniversary, but the response was overwhelming and we needed to accommodate much more than 150 guests,” said Loeb, adding that in total 280 people attended the celebrations.
Guests were entertained with a catwalk show commissioned and created by local fashion students from Preston University in Ajman, who used Frette’s linen to create their designs. Loeb explained: “For such an event we had to go out of the ordinary and come up with a unique, yet unusual and interesting idea. The idea is about how Frette linen is so fashionable with the touch of luxurious lifestyle that you want to wear it. “We are very pleased to have worked with local fashion students from Preston University, Ajman. They were very creative, dedicated and excited by the idea of working with the most prestigious brand of linen worldwide with the challenge of creating unique, haute couture pieces and outfits with draping only.” She added that EF Gulf was excited about Frette’s 2010 retail spring / summer collection, which “is influenced and inspired by different well-known artists like the American impressionist John Singer Sargent and his sojourn to his favourite city capturing the grace and mystery of
Students from Preston University in Ajman created catwalk-worthy outfits using Frette luxury bed linen.
Venice; the symbolist Gustav Klimt and his inspiration by the rich history and culture of the former frontier city of the Roman Empire Vienna; and the Fauvist Henri Matisse, who’s known for his inspiration by the vibrant flora of the provincial region including iris and flax patterns”.
SLEEPOTEL TO LAUNCH AT INTERIORS UAE SHOW Design-driven hotel rooms and bedrooms will be mocked up by experts at Interiors UAE in Abu Dhabi to present hoteliers with visual examples of future trend predictions. Sleepotel, first launched at event organiser UBM Live’s interiors exhibition in the UK last year, will comprise an area of the interior design event — which is being held at ADNEC from March 29-31 — entirely dedicated to hotel design concepts. Interiors UAE organiser Cathy Oates said: “Sleepotel was launched at our UK event dedicated to the creation of hotels and was an instant success, demonstrating how architects and designers can capitalise through clever design on those often under-utilised areas within a hotel”. The conceptual rooms and suites have been designed by a variety of European companies, including Finland’s Oy Vallila Interior Ab, Helsinki-based Studio Arcibella and the UK’s modern hospitality designer Shaun Clarkson. A hotel entrance designed by Lisbonbased atelier Nini Andrade Silva will also form part of Sleepotel.
Gasso Middle East expands Dubai office to meet demand
Kashani: Gasso Middle East’s extended premises in Dubai will enable increased availability of products .
www.hoteliermiddleeast.com
Gasso Middle East is set to open new premises in Dubai this month to cater for increased demand for its products and services, said CEO Payam Kashani. The company will retain its main office on Sheikh Zayed Road and add a new display and storage facility in front of the Financial Centre metro station. Kashani said: “Gasso Group provides A to Z solutions in the food service business, from pre-planning to providing the highest quality arrangement of products, themselves of the finest quality, to after sales service.
“We have opened this premises as an answer to the large demand from our customers for Gasso products and services. “Our locality has given us an incomparable competitive edge, we still wanted to have more and quicker availability for our customers, not only for the large-scale projects, but also for retail sales as well,” explained Kashani. After the introduction of Gasso Europe and Gasso Middle East by Gasso Group over the past decade, Gasso North America is planned to launch in summer 2010 in Canada, added Kashani.
Studio Arcibella from Helsinki is one of the companies presenting a hotel bedroom concept.
Hotelier Middle East • February 2010
75
SUPPLIERS
76
The latest in laundries Professional Laundry Equipment Trading division manager Sreejith Narendran reveals the breakthroughs in laundry technology, from energy-efficient products to handy space savers Q&A What are some of the new trends in the world of laundry? The focus of laundries has been consistently shifting from low capital costs towards more energy-efficient systems, as well as automated solutions to keep up with the highly demanding marketplace. As consultants for industrial laundries, we now have more enquiries on Continuous Batch Washing (CBW) systems, steamless laundry concepts and water recycling systems. We are installing for the first time in the region a water recycling system that recovers upto 95% of the total water used, with advanced systems like microceramic filtration combined with reverse osmosis. In such a recovery rate, only solid wastes with moisture content goes out of the system. Water is expensive in the region and more critical is the issue of effluent discharge. In most places, central sewer networks are not available and even if they are, very few permit discharge of laundry effluent. Successful water recycling has been a dream as reliable systems are expensive, but we have been successful in bringing the technology to this region. Gas head systems, on the other hand, are a major breakthrough in laundry facilities. With the advent of direct gas heating technology, steam boilers and their expensive pipe network are eliminated and gas connections are given directly to the machines. This saves millions of dirhams in capital investment and also provides highly efficient machines as there is no energy lost in transit like in steam-heated systems. Gas is the future as it is a cleaner fuel and moreover, this system eliminates the heat emission in laundries from the steam, making the laundry a better place to work — another environmental friendly development. February 2010 • Hotelier Middle East
Narendran: Gas head systems are the future for laundries, eliminating heat emissions caused by steam.
What new technologies help make the laundry process more efficient? Other new technological developments include automatic sorting and cloakroom systems for hotel uniforms, which reduce the manpower requirement by more than 90% in most cases and also provide management information systems (MIS) to the housekeeper. The uniform ordering process is also automated. This can be very advanced, with staff having to only drop off their soiled garments in a designated bin. Using RFID reader technology, the garments are entered into the system and it goes for the laundry process. On its return, the operator
only has to hang all garments onto a slowly moving conveyor. An RFID reader attached automatically sorts and transports the garment to a storage conveyor for collection. How has hotels asking guests if they want their linen and towels cleaned affected the trade? The expected reduction in linen is yet to be realised though it is happening at a slow rate. The best part of this exercise is that the general level of awareness among the customers has increased and we see less abused linen these days. Guests using the sheets to polish shoes and wipe cosmetics and food wastes has reduced.
WE ARE INSTALLING FOR THE FIRST TIME IN THE REGION A WATER RECYCLING SYSTEM THAT RECOVERS UPTO 95% OF THE TOTAL WATER USED BY THE LAUNDRY
Is there a difference in what a small, medium and large hotel should be looking for in their laundry equipment? Any laundry load is divided between bed, bath, F&B, uniform and valet loads. This mix varies between hotels depending upon their standards of linen change and type of speciality. For example, resort hotels have a very high proportion of towels compared to city hotels. In bed and bath, higher capacity machines are preferred owing to the economy in operations as the loads are of the same type every time. The design of the machines also changes with the increase in capacity. For example, up to a 100kg per cycle, open pocket design machines can be efficient but beyond that capacity, divided cylinder machines are recommended. This is because, in open pockets, linen tends to get entangled forming a ball making it difficult for the operator to separate after washing. With the constant twists and stretches inside the drum, linen and towels also get torn apart. In divided cylinder models, however, the same load is divided between different compartments in the same drum. What do you think the future has in store for laundry equipment? The future looks promising for laundry suppliers who invest time and resources in identifying energy saving and automated solutions and customising them for this region’s challenges. However, the time has gone when any trader could identify a brand and start selling laundry equipment to hotels and laundries. Offering consultancy services to new prospects and processing reengineering studies to existing plants has put us in a very comfortable position in the marketplace and we are enjoying a busy season with more to follow. This has become a very specialised and competitive industry and only the fittest shall survive. HME www.hoteliermiddleeast.com
SUPPLIERS
78
Dutch dynamism UAE-based L amb Weston sales manager Sajju Balan says that the Dutch firm’s close working relationship with its hospitality clients has played a key role in its success in the Middle East COMPANY PROFILE amb Weston has been supplying industry kitchens with prepared products and frozen potato items for more than 06 years. The company, which is currently focusing on the Middle East hospitality sector as one of its key markets for growth, reported a relatively successful 2009despite the global financial downturn, and is preparing for another year of continued growth in 2010. Describing the firm as t“he potato industry’s leader in innovation”, area sales manager for the UAE Sajju Balan claims the food manufacturer offers kitchens across the region “consistent quality throughout the year”. The Dutch company, which began trading in 1950, is now a global food industry player with a range of French fries, appetizers and prepared food products available to its food service customers. Balan notes: “We design products specifically for each of the various channels and segments within the food service industry.” One of the firm’s more recent innovations, Stealth Fries, comes
L
Stealth Fries by Lamb Weston.
with an extended hold time and another product, My Fries, has proved popular as it offers chefs a reduced-calorie food item. “These two products have performed well within the hotel environment,”comments Balan. Another of L amb Weston’s recent additions to its Middle East portfolio, Sweet Potato Fries, has long been “sought after” in the N orth American market, according to
ABOUT LAMB WESTON’S SALES MANAGER Sajju Balan has worked for a variety of F&B-related companies during his 15 years in Dubai. Starting his career in the emirate with an airlines catering company, four years later he moved on to the food service department of one of the region’s largest FMCG distribution companies. Nine years on and Balan took up the opportunity to join Lamb Weston as its area sales manager responsible for the UAE’s food service and retail markets.
February 2010 • Hotelier Middle East
Balan, explaining why it has now been launched in the region.
CLIENT RELATIONSHIPS Despite the difficulties presented by the global financial crisis, Balan says that due to the nature of the company’s products it has “not been as affected by the current financial crisis as others may have been”. He adds “L amb Weston is focusing on the international markets with the main focus on the Middle East. Currently we have surpassed all our expectations relative to market penetration and expect that trend to continue as our customer partners gain further experience with our products and service.” The importance of maintaining solid relationships with its clients has been pivotal to the success of the company in the UAE, continues Balan. “Obviously a good relationship with clients is the key to mutual success,”he refl ects. amb Weston prides itself on its “L close personal relationships with
all its clients;a good relationship is based on an understanding of our client’s business and operations. “Our goal is to assist in solving problems and presenting opportunities,”he adds. Balan points to the success of the sales teams at L amb Weston, who work closely with the relevant departments of hotels, as one of the company’s key business attributes. “We offer them the right solutions for their establishment full stop,” he asserts. “This involves extensive product testing together with the chefs in order to ensure that they use the right product throughout their operation,”adds Balan. HME
COMPANY INFO COMPANY: Lamb Weston/Meijer ESTABLISHED: 1950 TEL: +31 113 394 955 FAX: +31 113 394 257 EMAIL: infome@lambweston-nl.com WEB: www.lambweston.com
www.hoteliermiddleeast.com
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Seal the deal Hotelier Middle East finds out exactly what is on offer for AED 50,000 per night at “the world’s best suite”, located at number one Sheikh Zayed Road at The Monarch Dubai. It’s time we started saving... FITTED OUT ot only is The Monarch Suite at The Monarch Dubai the Middle East’s largest suite for sale at 1130m², it also holds the title of World’s Leading Suite for the second consecutive year as awarded by the World Travel Awards. Yet despite these accolades, the suite — which was designed and project managed by Ròya International — remains one of Dubai’s best kept secrets. Hotelier Middle East decided it was time we got an exclusive tour of the suite — and a taste for luxury. Located on the 32nd and 33rd floors of the hotel — and accessible only with a special key card — the suite is spread across two floors. This is a major asset, says The Monarch Dubai executive assistant manager Bertrand Margerie, because it means guests can keep one area private for their family and one area public for business and entertaining. The overall feeling upon entering the suite is one of immense space, calm, relaxation and luxury. Although there are vibrant fabrics and striking lighting, there is none of the gaudy opulence you might expect in the region’s biggest suite. Margerie explains why. “It was designed as a private apartment for the owner, however, he considered the potential of money from that positioning and unique setting at number one Sheikh Zayed Road [and decided] to change the destination of the suite and leave it for rent.” He says that while there are a lot of Arabian influences, it is a very peaceful and moderate design, in keeping with the ambience throughout the hotel. “Our typical guests are individuals with very high incomes, com-
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February 2010 • Hotelier Middle East
pany CEOs, directors, owners and royalty”, continues Margerie. “I would say we have two very regular customers and most people who come here come on business, and the people who tend to book it once tend to come back,” he says. Currently, the suite is booked “an average of five to six times a month” with the longest stay being a full week,” says Margerie. People return because of the space and the service, he adds. “It’s a mix between outside and inside. It is very vast. I have always associated volume and space with luxury. Its not out priced as well in my opinion – the net price is more or less AED 50,000 (US $13,613) a night, if you go back to places like Paris, Cannes, London, New York, there would be very expensive suites with much less volume and space inside.” Still, Margerie admits they are “charging big bucks” and as a result, the guests must be treated with the utmost respect. “You are not going to find so many people who are going to pay AED 50,000 ($13,613) for a one-night stay so you want to really make sure they are coming back and we seem to have the proper attitude with them because these people are doing so,” he says And of the fact the suite seems to keep a quiet profile? Well that is quite deliberate, says Margerie. The hotel has only used The Monarch Suite as a venue to hold three events itself and it has only recently been opened for very high profile product launches, the first of which was De Beers. “I think the secret that is going round the place — the less it has been seen the more it will be looked after and people want to discover it — well, if you want to discover it, you have to book it,” says Margerie. HME
CENTREPIECE The striking chandelier in the first majlis — a venue one suspects hosts the signing of many major multi-million deals — was designed by Preciosa.
LISTEN UP The Monarch Suite even features a ‘music room’ and the sound system throughout the suite was supplied by Bang & Olufsen.
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81 SUPPLIERS
BATH TIME The stunning bath tub and walk-in shower in the master bedroom were supplied by Villeroy & Boch.
EYE CATCHERS Various sculptures and pieces of artwork decorate The Monarch Suite. These vases and paintings caught Hotelier’s eye.
SQUARE EYES The private cinema features a 103inch TV screen from Panasonic — the largest one currently available on the market.
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Hotelier Middle East • February 2010
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DINE IN
COSY UP
Guests can order room service from any of The Monarch Dubai’s outlets and have a complete dining experience in the suite. Silverware was supplied by Christofle with china by Bernardaud.
There are two styles of robe to choose from, designed by Michele Nicoli.
TERRACE TIME The outdoor area with pool, BBQ and 270˚ views of Sheikh Zayed Road is one of The Monarch Dubai executive assistant manager Bertrand Margerie’ s favourite features of the vast suite.
BED HEAD The light, airy master bedroom features bed covers and duvets from Mühldorfer GmbH & Co. KG.
GET FRESH Men’s toiletries are supplied by Ermenegildo Zegna while ladies can use products from Salvatore Ferragarno.
SPA SUITE The relaxation area adjoins the terrace with views across Dubai. For the more athletic, fitness equipment can also be provided.
February 2010 • Hotelier Middle East
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Uniform appeal Uniform designers and suppliers explain why their main aim is to dress your teams to reflect your hotel’s image and highlight the common mistakes that could stop your staff from shining
EMILE RASSAM
TOP DESIGN TIPS 1.Keep it simple — try to work with one unique idea and then work it into all areas of the hotel; this builds the identity and most importantly puts guests at ease as they do not struggle to identify associates. 2. Try to always keep in mind the nationality of your associates — skin tone and height play a big part in the wardrobe’s success.
For Elie Rassam, managing director of Emile Rassam, uniform is a word that doesn’t even come into the equation when partnering with hotel companies — instead, the approach is to design wardrobes to reflect the hotel’s image. And with 60 years in the business, this focus is clearly a successful one. Rassam explains: “Our approach is simple, we design wardrobes. Uniform is a word we try not to use, the way hotels today avoid calling their associates ‘staff’. “The value of designing a wardrobe is that in essence it’s a reflection of the hotel’s image. I like to think of it as the way that an actor goes to wardrobe before going on stage to assume their part — an associate dresses the same way before their performance.”
Rassam says that themed wardrobes in hotels is a trend that has been dominant for five years and while he expects this to continue, Rassam observes: “Personally, I feel it is becoming more difficult to really identify the theme of certain projects, as they seem to be an accumulation of many others”. “If you want your wardrobe to be unique you need to challenge the designer and dare to be different,” says Rassam. As a result, he says “innovation is really the name of the game”. “We are now able to manufacture fabrics that are specific to the hotel as part of their objective to create a unique wardrobe,” says Rassam. However, he maintains that despite the fact every hotel now wants to design its own
wardrobe with a unique look to stand out from the rest, it is important to exercise some caution with creativity. “If it isn’t managed well, [it] can result in a complete disaster, no harmony in the hotel and a wardrobe that simply shouts at the interiors,” observes Rassam. He also points out that the most challenging uniforms to design are those for the door service staff — doormen, bell boys and valets. “These positions distinguish the hotel and set the stage for the other positions,” says Rassam. So what hotels have the best wardrobes? “This is a very difficult question to answer, there are so many to choose from, but my personal preference are the more classic wardrobes of Four Seasons and Le Gray,” says Rassam.
CONTACT Emile Rassam — Beirut Tel: +961 (0)5 451 732 Email: info@emilerassam.com Web: www.emilerassam.com Emile Rassam Trading — Dubai Tel: +971 (0)4 432 8563 Email: Dubai@emilerassam.com Web: www.emilerassam.com ESN — Kuwait Tel: +965 2471 0122 Email: info@esn-kwt.com Web: www.emilerassam.com
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
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85 PRODUCTS
DREAM UNIFORMS
FAVOURITE UNIFORMS Grosvenor House Dubai for elegant and modern uniforms. Raffles Dubai for fusion with great style. InterContinental Dubai Festival City for new and contemporary style.
Dream Uniforms head designer Feizel Virani.
CONTACT Dream Uniforms LLC Tel: +971 4 334 0494 Email: feizal@dreamuniforms.ae / feizal_virani@yahoo.com One issue hotel uniform designers are very clear upon is the vital need for garments to represent the vision of the hotel they are created for. Feizal Virani, head designer and head of Hotel Division Uniforms for Dream Uniforms, says that his approach is to give an “individual designer look and create branding for the hotel and give it its uniqueness”. He says that uniforms are becoming more individual and less formal, so it is hard to pinpoint specific trends, but that the biggest concern is when the hotel operator has no regard for the uniforms — especially when so much has been invested in interior design. “I feel back of the house to them is not important and a lot of times they forget the ethnicity of the staff when designing the
uniforms,” something also noted by Elie Rassam. Also like Rassam,Virani says that the major challenge for hotels is to “give the front office the wow factor”. “The uniforms should be unique in style but practical and represent the vision of the hotel. I feel the best way [to achieve this] is to work with the designers and general manager to get a total understanding of the look, then to feel free to express imagination.Working with a ‘football team’ of staff becomes very confusing and the directions are all varied,” continues Virani. Best sellers for Dream Uniforms are embroidered jackets with Arabic motifs “for a cultural feel” says Virani, while new products from the company comprise “fusion dressing, modern and contemporary” looks.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
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Hotelier Middle East • February 2010
EuroCave, enter a sophisticated world dedicated to wine... EuroCave is specialised in maturing and serving wine for over 30 years. We have developed advanced products, in order to offer ergonomic and reliable wine storage solutions, which provide high quality wine service at an ideal serving temperature, in line with the traditions of the greatest sommeliers.
Because serving wine should be a pleasure, EuroCave has created Sowine Professional - a winebar which can store 14 bottles (including 8 bottles which have been open for more than 10 days) at an ideal serving temperature. Making it easier for you to present and serve the bottle directly at your customer’s table.
Dual Zone is a 2-temperature wine cabinet, which allows you to store your red and white or rosé wines at an ideal serving temperature in two separate compartments, the temperatures of which are set independently. The most prestigious hotels choose EuroCave, what about you ?
UAE CONTACT: CLASSIC FINE FOODS Tel: +971 6 534 4554 maxime@classicfinefoods.ae
OUTSIDE UAE CONTACT: EUROCAVE Tel: +33 6 07 66 80 42 info@eurocave.com
Beans Filter Capsules Machines Free Barista Training February 2010 • Hotelier Middle East
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SIMON JERSEY
FAVOURITE UNIFORMS “We are very proud of the hotel uniforms that we have designed and supplied, in particular Media Rotana in Dubai and Radisson Blu and Park Inn on Yas Island. All three show how classic styles can be combined with more trend-led pieces to produce good-looking yet practical uniforms,” says Sprakes.
Simon Jersey has been supplying hotel uniforms for the past 39 years, with A.Ronai LLC exclusively distributing the range in the Middle East for 29 years. A.Ronai LLC design and production manager David Sprakes says that over the past 18 months, he has seen “a move to simpler styles and more neutral colour palettes”. “For the most part I think this will continue as the number of properties with a more minimal, contemporary interior design open in the region,” comments Sprakes. Working alongside A.Ronai managing director Gavin Dodd, Sprakes says the company focuses on providing uniforms that are practical as well as being aesthetically pleasing. “Every customer is different — some have a very clear image of what they would like, some have none at all.We like to give them options, which can then be distilled into the ‘final’ product,” says Sprakes. “There are very few ‘rights’ or ‘wrongs’ in design — it’s all down to taste, so by working closely with the customer, giving them the benefit of the knowledge and expertise that we have gained over the years, taking their ideas and ours and combining all that to produce a uniform that is not only practical, but aesthetically pleasing, is our approach,” he continues.
“We also consider the practicalities of future demand and supply.The balance of available Simon Jersey catalogue stock items with bespoke pieces helps us to ensure that when a customer needs to place a small re-order after roll-out, we can supply with ease.” A common mistake in the industry, says Sprakes, is when hotels try to “‘re-invent the wheel’ in the name of originality”. “The reason why classic garments work is that they are tried and tested. I’m not saying that you shouldn’t fine-tune a design to suit your venue, but you should look at what works and use that as your starting point.A lot of hotels also use too many colours in their uniforms, which just results in the uniform looking disjointed and visually messy,” he says. Sprakes adds that poor design is “a shame when so many properties here have exceptional architecture and interior design, yet the uniforms don’t embrace that cutting-edge spirit”. “I wouldn’t like to point the finger at any one particular hotel, but there is such a homogenised look to a lot of uniforms here — too many round neck waistcoats with embroidery! It’s been done so often it no longer looks special,” says Sprakes. The new Simon Jersey catalogue is available from this month, offering the company’s best sellers — such as the poly/wool/lycra suiting — and new styles and colourways in all of the ranges, such as suiting, bar and banqueting, kitchen, spa and accessories.
A.Ronai design & production manager David Sprakes.
A.Ronai managing director Gavin Dodd.
CONTACT A.RONAI LLC Tel: +971 4 341 4409 Email: mesales@ronai.co.uk Web: www.ronai.co.uk
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6272. For distributor details see page 100.
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Hotelier Middle East • February 2010
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Product guide: Laundry This month Hotelier rounds up the latest products to keep your laundry running efficiently
PROTEK FZE Tel: +971 4 8875200 Fax: +971 4 8875210 Email: sales@protekgulf.com Web: www.protekgulf.com
Electrolux Laundry Systems Tel: +971 4 351 4700 Email: elxdubai@emirates.net.ae Web: www.laundrysystems.electrolux.com
BRAND VARIETY Protek E Z F is a specialist laundry trading organisation based in Jebel Ali rFee oZne. The company deals mainly in laundry equipment, spare parts, hangers and consumables required for a laundry. It supplies a variety of brands including: Cissell, Unimac and Speed u Qeen washers and dryers manufactured by Alliance Laundry Systems; oFrenta laundry and dry cleaning finishing equipment; Thermopatch labelling machines and consumables, A.L. Wilson laundry chemicals;Ressilo pads and covers;and Protek wire hangers.
DANUBE INTERNATIONAL Web: www.danube-international.com NO BARRIERS Specialist laundry equipment manufacturer Danube International has introduced several new products. The company has expanded its range of barrier washers, introducing the barrier concept into 16 and 22kg machines with a compact footprint. The company’s latest Pullman barrier washers have an excellent mechani-
NEXT GENERATION Generation 4000 equipment from Electrolux Professional products is designed “to meet the needs of modern life with a clear eye to the environment”. The washer extractors, tumble dryers, ironers and barrier washers in the Generation 4000 range can be customized in three main areas – cost, time and performance. This is achieved through the Compass Control® and the Wash Triangle technologies. Among the newest products, the recently launched washer-dryer enables customers to have double functions in one machine, optimising the use of space and time. The innovative S F (feeding-folding-stacking) ironer is simple to operate and assures great performances while being very efficient. The “heat pump” dryer makes the best of the technology to reduce consumption and it can be installed everywhere as it does not require an exhaust.
cal action to produce a high quality result while both the drum and the basket are designed to minimise water use, which in turn saves energy as there is less water to heat. High extraction rates reduce the time needed in the dryers, thus saving energy, and the frequency-controlled motors also contribute to energy savings. Danube also manufacturers a range of dryer-ironers and tumble dryers.
Solarco Equipments Tel: +971 4 885 6626 Email: info@solarcoequipments.com
FULL SERVICE Solarco Equipments is a kitchen and laundry contractor based in the UAE that has distinguished itself in offering the highest levels of expertise and professionalism to its extensive list of local and regional clients. With clients ranging from hotels to catering companies and villas to palaces, Solarco Equipment supplies products including washer extractors, tumble dryers, dry-cleaning machines, finishing equipment, trolleys, sinks and uniform conveyors. The company’s best sellers include Braun, Electrolux Laundry Systems, oFrenta, Renzacci, Camptel, Danube and Meese. Solarco Equipments offers design, procurement, installation and maintenance services.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
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Discover the world of ... at we combine creativity with German workmanship, German safety standards and the most innovative designs.
Showroom Dubai: Innovative Kidz LLC Tel.: 04-340 5059 www.kidzincdubai.com www.haba.de
Germany’s leading designer and manufacturer of children’s products.
The Best Taste The Best Quality from
VISIT US 21 - 24 February 2010 Dubai International Convention and Exhibition Centre Hall 1, 2,3 Zabeel and Sheikh Saeed Halls TURKISH PAVILION ORGANISER: SELTEN LTD.
Supported by Undersecreteriat of Prime Ministry for Foreign Trade
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Hotelier Middle East • February 2010
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Products: pick of the month Each month Hotelier Middle East showcases a selection of the newest products to hit the market
MINDCo Middle East FZE Tel: +971 50 554 8958 Email: Adish.Chauhan@ mindco-me.com Web: www.feonic.com SURROUND SOUND Feonic F Series Drives is a new audio solution designed to convert surfaces such as glass and wood into audio speakers. These small devices, which can be hidden to make the source of the sound invisible, can be used to bring inanimate objects — wall paintings and mirrors for example — to life. It is a cost-effective solution, with one drive said to replace five to six speakers. The drives are produced by Feonic Technology in the UK and supplied in the Middle East by MindCo Middle East FZE. Targeting the hospitality industry specifically, MindCo Middle East will offer special modules for hotel rooms, bathrooms, gyms, bars and restaurants.
Teleadapt Tel: +971 4 3678283 Email: inam.haider@ teleadapt.com Web: www.teleadpat.com UNIVERSAL CHARGER Teleadapt has launched an affordable, universal mobile phone charger designed specifically for hotels. ChargeHub is a compact mobile device charging station equipped with 12 different connectors, making it compatible with most major mobile phone brands and more than 2000 products, according to the company. A USB port also enables guests to charge Bluetooth headsets, game consoles and other USB-powered devices if they have the cables. The ChargeHub can be installed anywhere in the hotel room or built into a desk drawer.
Dedon Tel: +34 93 208 0903 Email: contract.export@ dedon.es Web: www.dedon.de NEW COLLECTIONS Dedon has introduced four new line extensions for 2010 — Pontoon, Seashell, Planters and Parasol. An extendable, universal table has been added to the Pontoon collection, the Seashell range features new bar chairs and the Planter range is now available in white. The Parasol collection is the first range of sun shades created by Dedon.
Everstyle Trading LCC Tel: +971 6 5314106 Fax: +971 6 5314460 Email: estdxb@eim.ae Web: www.everstyleuae.com
STAINLESS SELF-SERVICE Buffetware specialist Frilich has introduced the Carafine Quintet providing breakfast buffet guests with dripless self-service. The elegant, spherical inspired set prevents ice water drips from carafes and bottles through the use of a centrical-crushed ice tube. The double-walled, insulated bowl is made from polished stainless steel and keeps beverages in carafes or bottles hygienically fresh over a long period of time. The stainless steel bowl contains five practical 1.2 litre glass carafes, each with a stainless steel lid — on which Frilich offers optional inscriptions on request.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
February 2010 • Hotelier Middle East
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91 PRODUCTS
Villeroy & Boch Middle East Tel: +971 4 3642613 Fax: +971 4 3688419 Email: info.me@villeroy-boch.com SHOWER POWER Villeroy & Boch has expanded its Squaro, Subway and Futurion shower solutions for 2010. The flat Squaro shower trays now come in eight different sizes, with the three new sizes rectangular trays of 140x90cm, 160x90cm and 180x90cm. Villeroy & Boch has also developed four new matt colours for the Squaro range — amthracite, grey, brown and crème. The company has also added three new sizes to the Subway showertray range and four new sizes to the Futurion Walk-In shower enclosures to fit with the corresponding Squaro and Subway trays.
Andy Martin Workshop Tel: +44 20 7 2292425 Web: www.andymartinassociates.com
TOO COOL The ‘Plug’ bucket, designed by the Andy Martin Workshop, is a stylish and modern champagne and wine cooler. Designed as a play on the form of a bottle, the base is hand spun in pewter and polished off to a mirror finish. The bucket is crafted from blown glass or can be produced in pewter to match the base. For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. For distributor details see page 100.
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Hotelier Middle East • February 2010
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• News • Analysis • Innovations • Trends
Shangri-La launches mobile website to target smartphone users Condensed information and simplified browsing capabilities make online bookings easier Shangri-La Hotels & Resorts has developed a mobile website to make online bookings easier for smartphone users. Available in English, simplified Chinese and Japanese, the website is designed especially for smartphones such as iPhone, Blackberry, HTC and Nokia Nseries. Shangri-La Hotels & Resorts director of corporate e-business Michael Leong said that the website had been launched to “take care of this fast-growing group of users”. “This phenomenon is illustrated in the recent Mobile Internet Report released by Morgan Stanley in December 2009, which stated that mobile internet today is growing at a much faster pace than desktop internet (PCs+notebooks+netbooks) and that smartphones will out-ship the global desktop internet market by 2012,” said Leong. He explained that the three main differences between the mobile website and Shangri-La’s original website were screen size, content and usability. “The Shangri-La mobile website is specially suited to the smaller screen sizes of smartphones, while
the original Shangri-La website is more suitable for the larger screen size of a PC or notebook computer,” said Leong. ”Since the typical smartphone screen size is much smaller than a regular computer, we have made sure that the content on our mobile website is more condensed and concise compared to the regular website. This is so that mobile users can quickly get the information that they need, without having to scroll through pages of text and pictures,” he continued. In terms of usability, Leong said that without a keyboard and mouse, browsing a website on a smartphone is usually more challenging to navigate than a computer. “This is especially so when you try to fill up an online form using a virtual keyboard like in an iPhone,” explained Leong. “That’s why we have designed our mobile website to address these challenges by having clearer navigation links and buttons and more
importantly, unlike other hotel companies’ mobile websites, we have eliminated the need for typing when searching for our hotels.” The website was developed entirely in-house and is designed to
Shangri-La’s new mobile website is designed to simplify the online booking process for users of smartphones.
help grow online bookings – which already stand at almost 14% of all business for the company. ”As we have only recently launched this mobile website, we do not have any figures on the number of bookings from this mobile website. However, it was encouraging to see some guests booking through this mobile website within the first few days of its launch,” said Leong. He added that offering the mobile
website in just three languages was “a question of balancing market need and ROI”. “We feel that these three languages are sufficient to cover most of our consumers’ needs today. We will, however, continue to evaluate this on a regular basis to see if more language options could be added as our customer base increases worldwide annually,” said Leong.
Beach Rotana invests more than a million dirhams in wireless internet
Beach Rotana Abu Dhabi GM Moritz Klein.
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Beach Rotana Abu Dhabi has invested AED 1.2 million (US $326,752) in providing wireless connectivity in all its rooms, restaurants and public areas. Previously, it was only available in public areas and restaurants with guests having to rely on a wired connection in room. Beach Rotana Abu Dhabi general manager Moritz Klein said:
“Wireless internet is now common all over the world and our guests today expect seamless connectivity throughout the hotel. At the same time, the wireless infrastructure will allow us to implement new administration applications useful to the operation”. Over a two-month period, Beach Rotana worked with wireless systems provider Aruba to install the
system, which guests will have to pay to use. “Guests will be charged as the cost of internet operating is still very expensive and at Beach Rotana, it is not included in the room rate. Nevertheless, if you book a Club Rotana room or suite during your stay with us, you may use complimentary wireless internet all day long at the Club Rotana Lounge,” said Klein. Hotelier Middle East • February 2010
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ResNet World director of operations Shane Mansell offers some simple guidelines to help you select the right technology for your in-house booking engine and therefore maximise its usage
COLUMNIST oteliers today are exposed to new internet booking channels on a frequent basis and often find themselves spread thin in their efforts to effectively manage and properly yield these revenue streams. One of the most important booking channels for your property that is usually overlooked is your very own website booking engine. This channel represents your most profitable booking channel and is the fastest growing revenue stream in the industry today. Every hotel should pay attention to this valuable booking tool and spend the time necessary to ensure it is one of the top producers in revenue. This year begins a period of economic recovery for our industry as a whole. The climb will not be easy but there is indeed light at the end of this long tunnel. With this recovery it is very important that hoteliers practice proactive sales techniques now to ensure they maintain their fair share of their respective markets. Focusing on your most profitable booking channel is one step closer to ensuring success in the future. Identifying the need for a website booking engine is obviously the easy part. Choosing and utilising the right technology among the many options available can on the other hand be more daunting. Here are a few simple guidelines you can follow that will ensure you choose the right solution for your property.
H
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1. Understand first that it is your property that sells a room. Ensure that your website is rich with content and pictures that will allow you to showcase your property to potential customers. We live in a consumer world that is driven by visual stimulation that in more times than not can be the difference between securing a reservation or losing a potential customer. 2. Ensure that your website is properly marketed on the internet. Today more than ever it is vitally important that you utilise proper web marketing techniques to ensure that potential customers find your property — even when they are not necessarily looking for it. There are a multitude of options available to you to assist you with web optimisation techniques. These can range from complete website design services that include SEO services to pay per click web advertising that will enhance your current site’s placement in search engines. Is your booking engine easy to use?
3. Make your booking engine accessible on your website. Make sure your booking engine is visible on every page of your website. A clearly visible booking engine on every page of your website will increase your chances of receiving a booking at your property. 4. Don’t pay more than you should for your booking engine. There is always a ‘balancing act’ that takes place between quality and cost when it comes to your booking engine. As stated earlier, your property and the quality of your website are very important factors in this channel’s success. Once a guest clicks on the ‘book now’ button you want their mind already made. This translates to choosing a booking engine that visually compliments your website and is easy to navigate. If the potential customer’s mind is already made up and your booking
MAKE SURE YOUR BOOKING ENGINE IS VISIBLE ON EVERY PAGE OF YOUR WEBSITE engine is easy to use, then the reservation is much more likely to be made. This means that you don’t have to pay thousands of dollars to develop or purchase an overpriced technology. Look for options that will cost a low, fixed price per booking or similar and focus the majority of resources on getting customers to your site first. 5. Don’t be afraid to let the experts help you with web marketing. Not everybody is an expert in web marketing techniques. There are many options available to hoteliers, at many different price levels, to assist with the web marketing process. If you feel you are lacking
in this area then find a fair priced solution for your property that will ensure you maximise the revenue associated with this channel. 6. Be bookable at every step Once the potential customer is ready to book, it is crucial that they find the ‘book a room’ option with ease to complete the process, otherwise they could easily venture to another site which will cost you. HME Shane Mansell has 18 years’ experience in the hospitality field and currently holds the position of director of operations at ResNet World. Details: www.resnetworld.com or +971 (4) 448 7222.
Hotelier Middle East • February 2010
TECH TALK
How to choose your website booking engine
TECH TALK
96
Up Close and Personal Lee Jamieson explores the latest developments in customer relationship management technology CRM
IMPROVE YOUR CRM: TOP TIPS he concept behind customer relationship management (CRM) is nothing new for the hospitality industry. The idea of personalising the hospitality experience around the individual needs of your guests has long been the key to a successful operation, but advancements in CRM technology have enabled hoteliers to form much closer relationships with their guests than ever before. “CRM systems provide a holistic view of the customer relationship, including customer activities, history and preferences,” explains Chuck Schaeffer, CEO of Aplicor, a CRM provider. “Making this information available to all customer facing staff will permit each employee to speak with a consistent voice and can dramatically improve the response and relationship with individual guests.” By building up intimate customer profiles, it is possible to set guest room preferences in advance, offer them their favourite drink upon arrival, or even ensure that a customer’s allergy is catered for without the guest needing to ask. The opportunities are endless and creating such highly-personalised
T
Raffles Dubai uses several different CRM solutions.
February 2010 • Hotelier Middle East
Realise cost savings by moving older CRM systems to SaaS applications. In most cases, these pay-as-you-go services require no upfront investment.
Identify which channels of communication your customers use and engage with them on those channels. xxxxxxxxxxx
SaaS IS NOW THE STRONGEST CRM TREND IN THE GCC relationships with a customer base can increase levels of customer service, encourage customer loyalty in the long-term and enable the hotelier to create highly-targeted promotional campaigns.
TRACKING GUESTS Raffles Dubai uses CRM technology to build its reputation for guest recognition and for offering tailored guest experiences, as director of marketing and communications, Dima Ayad explains. “Naturally, most five-star hotels abide by these core standards, but we carefully log every guest’s experience and leverage that data when they return. “To track regular guests, we use a CRM system called Raffles Ambassadors. This dedicated programme entices our guests to visit us time and time again. We celebrated someone’s 50th stay at the end of 2009 — the property’s only been open for two years!” Evidently, a robust CRM system can monetise guest data, but the technology also has a part to
play in the organisation’s strategic direction. Now that CRM technology has reached a level of maturity, business leaders can use it to implement a customer-centric growth strategy. It allows them to closely monitor trends, understand customer behaviour in the long-term and more effectively measure how integral the brand’s core values are in the customer experience. In this respect, CRM can lead to stronger brand identity.
CHALLENGE OF INTEGRATION In order for CRM to achieve its strategic potential, suppliers and developers must find a way to integrate the many different CRM systems currently in use. “Hoteliers are demanding increased system integration between CRM systems and their legacy systems,” says Schaeffer. “Getting all customer information into a single system of record is paramount for achieving a 360 degree customer view.” But hospitality is a complex industry and finding a one-size-
Take a multi channel approach to your CRM communications and make every customer interaction count.
Don’t underestimate the power of social media. If your guests use it, so should you.
Ensure that your CRM strategy is aligned with your brand’s core values Conduct focus groups and assessments with loyalists to check the effectiveness of your CRM systems and strategy.
Be analytical. CRM can be part of your growth strategy if you take the time to closely monitor trends and understand customer behaviour in the long-term.
Don’t let technology become a barrier to personalised human service.
www.hoteliermiddleeast.com
97 TECH TALK
But according to GuestWare vice president Mike Benjamin, using different systems is confusing. “CRM technology has become confusing for hoteliers because so many aspects of hospitality technology involve CRM. Everything from email marketing and loyalty systems to concierge and problem resolution tools can be part of a brand’s CRM strategy. This is too much to take on all at once, so the key is to have a high-level overall CRM strategy before jumping into one specific technology,” says Benjamin. Raffles’ Dima Ayad takes a modern approach to CRM.
NEW DEVELOPMENTS
fits-all solution can be problematic. Therefore, Raffles Dubai, like many hotels, uses different CRM systems in different parts of its business: Opera is used for day-to-day CRM processing, Raffles Ambassadors is dedicated to selected repeat guests and another system called Famous Agents is used by travel agents supplying the business.
Over the past five years, CRM applications have undergone a period of rapid evolution to cater for the changing needs of modern business. A key technological development has been the emergence of software as a service (SaaS). This model is highly agile and portable because the vendor supplies the service through browser interfaces from their external data centres.
SaaS has revolutionised CRM by offloading all IT administration to the software supplier and replacing the upfront software licensing fee with a pay-as-you-go subscription structure. And according to Schaeffer, “SaaS is now the strongest CRM trend in the GCC”. “It has already become the highest CRM growth segment in the US and EU and now companies in the Middle East are looking to capitalise on the lower costs, faster implementations and simpler CRM systems delivered through the SaaS model.” CRM SaaS companies are implementing data centres across the Middle East to meet this demand with locally delivered solutions. Aplicor, for example, is delivered from a data centre in Doha and additional data centres are being implemented in Dubai and Riyadh.
A NEW ERA With new agile technology in place, the stage is set for a new era in CRM. A good CRM strategy is all about
Aplicor’s Schaeffer is an expert on CRM systems.
identifying the channels of communication that a guest uses and engaging with them through those means. Technology has opened new channels of communication and hoteliers are becoming increasingly aware that the quality of their hospitality product is being judged and shaped online. “Consumers look at websites like TripAdvisor and use
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Hotelier Middle East • February 2010
TECH TALK
98
WHAT’S ON THE MARKET? APLICOR
LIBRA ONDEMAND Aplicor is distributed by Optimus Technology and Telecommunications in the Middle East. Tel: +971 4 2023670 Email: partners@i-optimus.com Web: www.i-optimus.com
Aplicor’s CRM business software is highly flexible and can be configured to meet your unique business requirements. Users can define how they view data, new fields can easily be added as required, and new pages can be created for industry specific information.
Tel: +1 407 412 9296 Email: ghopkins@libraondemand.com Web: www.libraondemand.com Libra OnDemand is a SaaS application that leverages the power of Force.com, the world’s most popular on demand platform, to provide a comprehensive suite of hospitality specific CRM applications.The service allows hotels to communicate with guests through a number of popular social media networks including Twitter and Facebook.
OPERA
GUESTWARE OES is distributed by Key Information Technology in the Middle East. Tel: +971 4 3989999 Email: saleshsd@kit.ae Web: www.kit.ae
GuestWare is distributed by VisiGlobe Technology in the Middle East. Tel: +90 216 410 5787 Email: info@visiglobe.com Web: www.visiglobe.com
Micros’ Opera Enterprise Solution (OES) provides CRM technology for independent hotels and chains that can be deployed in local, regional, and global environments. OES is powered by Oracle, a scaleable and robust database engine, and offers one of the most comprehensive CRM solutions for the hospitality industry.
GuestWare is a leading hospitality industry CRM software solution focused on customer loyalty.The system has expanded from property based guest recognition and workflow management software to enterprise loyalty systems. GuestWare’s unique approach to CRM is based on having the same customer database for marketing, loyalty and service delivery.
it to make judgments on where they will stay,” explains Ayad. “People no longer make repeat bookings within a preferred hotel chain, but rather return to a specific website time after time. “The day will come when websites like Expedia will have a CRM strategy in place where customers can book any brand and get more value. That dynamic will change the CRM strategy of all hotel chains globally,” predicts Ayad. Hoteliers have been keenly monitoring the phenomenal rise in social media, which includes websites like Facebook, Twitter and LinkedIn. Currently, more than 300 million individuals and corporations are users of Facebook and more than 33 million people communicate on
consolidate all of the guest and customer information and then give hotels tools with which to engage and communicate with their customers,” explains Libra OnDemand CEO Gregory Hopkins. “We’ve seen that hotel guests are spending a lot of time on these social media sites, and so the hotels also need to be using these channels of communication to effectively market to them.” Libra OnDemand enables hotels to tap into online social networks and communicate with their guests in real time wherever they are. According to the company, Twitter is fast developing into a new kind of concierge system for hotels, allowing guests to use their smart phones to put out calls for informa-
February 2010 • Hotelier Middle East
Twitter. A recent Wall Street Journal ComScore report revealed that approximately one million “tweets” (short messages on Twitter) are made per hour. Hoteliers understand the market potential of these sites and know that huge percentages of their guests are actively using social media applications — but how do they extend their CRM strategy into that online space? This year, US-based Libra OnDemand is making its first moves into the Middle East. This exciting new SaaS company offers a hospitality specific CRM system that promises to be capable of exploiting the explosion in social media. “The premise behind Libra OnDemand is to centralise and
tion and receive “tweets” back from the hotel. While Twitter can be used for promotional and concierge purposes, Facebook is better suited to marketing and long-term branding because it’s a closed network. “Communication is always evolving,” observes Hopkins. “Letters moved onto fax, then onto email. I think we’re now seeing a very natural shift onto social networking platforms. So, we’re not building a CRM system based on social media, but rather creating new tools that are aware of these modern technological developments. “Hoteliers should remember that social media platforms are just one of the communication channels open to them,” adds Hopkins. HME www.hoteliermiddleeast.com
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February 2010 • Hotelier Middle East
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• News • Trends • Analysis • Hotel listings
Layia Hospitality launches budget brand and partners with CAPM Investment Joint venture to enable roll out of five hotels in Abu Dhabi with plans for 15 hotels within seven years BRANDS Layia Hospitality has introduced a budget brand with the aim of rolling out 15 new hotels in the next five to seven years. Called Day & Night Hotels, the brand is described as being “second to none” in terms of “facilities, services, comfort and security” and aimed at the “trendy, modern, young at heart and budget conscious travellers”. Layia Hospitality CEO Daniel Hajjar said: “The Middle East market is now mature enough to accept the concept of budget hotels. Thanks to the low cost carriers, the perception of budget airlines and budget hotels is slowly but surely spreading into the minds of the travellers. It is evolving from a curiosity factor to a serious alternative when deciding on a trip. Day & Night Hotels will be slick properties where extreme attention to details and cost efficiency at all levels will be the raison d’être of this new brand”. Technology will be crucial to the hotels and while Hajjar could not confirm the specific systems being adopted, he revealed: “We are looking
into opportunities in self check-in and self check-out, sophisticated vending machines to offer clients items that won’t be part of the standard offerings. We are talking, as well, to international consultants on energy savings to partner with us at these initial stages of the Day & Night concept”. Mohamed Al Sari, managing director of GGICO, majority partners of Layia Hospitality added: “The long term success of Day & Night Hotels relies on its offering. I mean by this; prime location, great distribution and spread, focus on online marketing and by providing the smallest details and facilities to the emerging trendy and sophisticated travellers. “Emphasis will be put on being environmentally friendly in all our approach. But above all and probably the most challenging issue is to offer a room rate that would not exceed US $ 100 to 150,” he asserted. “Since distribution would be one of one of our prime targets, we have started negotiations with several parties in the UAE, Saudi Arabia, Egypt and Iran with an objective to reach 15 Day & Night properties within the next five to seven years,” said Al Sari.
Hajjar: Day & Night hotels will offer rooms “far larger” than those at rival budget brands across the region.
Layia has already secured a partner in Abu Dhabi to facilitate the roll out of five Day & Night Hotels. CAPM Investment has concluded an MOU agreement with Layia Hospitality to form a JV hotel management company co-owned by the two parties. When asked about the challenge of operating five hotels of the new brand in one emirate, Hajjar said: “Abu Dhabi is very large. It constitutes about 86% of the size of the UAE. Several projects have been announced away from the city centre of Abu Dhabi. Therefore, the opportunities are concrete. Our partners at CAPM Investment are looking
at various opportunities not only in the fascinating city centre of Abu Dhabi but in other areas too”. With regard to competitor brands, such as Premier Inn and Holiday Inn Express, Hajjar added: “These two companies tend to offer the basics in a basic format too. At Day & Night, the rooms will be far larger and the customers will have the true feeling of staying in a very fine environment. “To use a term that I have said many times in the past, we are aiming at offering the Rolls Royce of the budget brands flirting very closely with the four-star brands”.
JAL Hotels “full steam ahead” on Dubai property, despite bankruptcy of JAL Airlines EVENTS JAL Hotels has professed confidence in the future of its properties in the UAE, despite its parent company JAL Airlines filing for bankruptcy protection. Speaking to Hotelier Middle East, JAL Hotels cluster public relations manager Bahia Kerrouche insisted that preparations for the Hotel JAL www.hoteliermiddleeast.com
Tower Dubai property were still “full steam ahead”. Kerrouche added that Hotel JAL Tower Dubai will “open in spring 2010 and we are currently in the second phase of our recruitment drive for the property”. JAL Hotels currently operates the Hotel JAL Fujairah Resort & Spa, while the Hotel JAL Tower Dubai, located on Sheikh Zayed Road, is due to open this year and JAL Bah-
rain Hotel & Spa is planned for a 2011 launch. In an official announcement, Japanese Airlines Corporation filed for bankruptcy citing debts of more than US $25 billion. The collapse came in response to excessive borrowing and risky investments exacerbated by reduced passenger numbers during the worldwide recession. Planned downsizing and restructuring programmes will affect hun-
dreds of thousands of employees and shareholders. JAL also stated the collapse may extend to its many subsidiaries worldwide, under which JAL Hotels Co is placed. Meanwhile, the future of JAL Airlines is unclear. While the Japanese government has pledged a cash injection of $10 billion to reduce its debts, negotiations have begun with various US air carriers including Delta Air Lines and American Airlines. Hotelier Middle East • February 2010
INVESTOR
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KHI reports 11% revPAR decline in 2009 Figures showed signs of improvements in the fourth quarter last year REAL ESTATE Kingdom Hotel Investments (KHI), the international hotel and resort company owned by His R oyal Highness Prince Alwaleed bin Talal Al Saud, reported an 11% decline in revPARin 2009 when compared to the previous year. Performance in Q4 2009 did show signs of improvement, increasing 3% globally in the three months to December 31, compared to the same
quarter 2010 and the hotel part of the project in late 2010. “We have presold 40 of the 43 units in Marrakech and expect to commence recognizing these sales in the first half of 2010,” said the statement. Also in the region, KHI recently opened The Four Seasons Hotel, Beirut on January 10, 2010. The company added that net debt at December 31 was US $173 million, with cash balances totaling $351 million.
period in 2008. However, in the Middle East region, KHI’s R evPAR slumped 7% in the quarter, the company said in a statement. KHI said that “the Mö venpick Beirut and El Quseir, together with the Four Seasons Damascus, all experienced R evPAR rises but were offset by continued significant falls at the Mö venpick Dubai”. This year, KHI is scheduled to complete the construction of the Four Seasons Private R esidences at Marrakech in Morocco in the first
KHI opened Four Seasons Beirut on Janaury 10 and will open a Four Seasons in Marrakech later this year.
Saudi group acquires 10% Six Senses stake Sheikh Sultan bags AHIC Leadership Award ACQUISITION Miami-based Saudi entrepreneur Laith Pharaon has acquired a 10% stake in Six Senses Mauritius, the management arm of Six Senses esorts & Spas. R Pharaon serves as principal for his group, which has previously served as a shareholder of Hyatt Hotels and owned several Four Seasons Hotels and R esorts properties. Six Senses chairman and CEO Sonu Shivdasani said:“I am personally excited to have an investor and partner such as Laith Pharaon and his father Dr. Ghaith Pharaon. “They have an impeccable background in the high-end hospitality business having been significant
shareholders of Hyatt and owners of several Four Season Hotels properties, and other luxury-branded properties in the past. “Their track record of great successes will contribute significantly to the future development of Six Senses, adding strength and vibrancy to the group”. There is the option for an additional 15 % stake to be acquired by Pharaon, based on the achievement of certain milestones. Pharaon said:“I am very excited to be part of Six Senses. By bringing hotel development experience to the management side of Six Senses, I believe this is a win-win situation for both of us”. Six Senses was founded in 1995 and currently operates 16 resorts.
PEOPLE HH Sheikh Sultan Bin Tahnoon Al Nahyan has been named winner of the 2010 Leadership Award ahead of the Arabian Hotel Investment Conference (AHIC) in May. He was nominated for the award, which was last year won by Dubai World chairman Sultan Ahmed Bin Sulayem, by the 05-strong panel of industry leaders on the AHIC Advisory Board. Al Nahyan, a member of the Abu Dhabi ruling family, holds several key roles in the fields of hospitality, tourism, arts and culture. Most notably, he was appointed chairman of the Abu Dhabi Tourism Authority (ADTA) on its establish-
HH Sheikh Sultan Bin Tahnoon Al Nahyan.
ment in September 2004 and has since steered its development. He is also chairman of Tourism Development & Investment Company, chairman of the Abu Dubai Authority for Culture & Heritage and chairman of Abu Dhabi National Exhibitions Company.
STOCK WATCH — JANUARY PRICE (US $)
CHANGE (%)
BX Blackstone Group (NYSE)
12.73
-4
MAR Marriott International (NYSE)
26.88
IHG InterContinental Hotels Group (NYSE)
PRICE (US $)
CHANGE (%)
CHH Choice Hotels International (NYSE)
32.15
-2.5
-4.6
KHI Kingdom Hotels (LSE)
3.30
-0.3
14.95
3.9
REZT Rezidor Hotel Group (SSE)
27.80
29.3
HOT Starwood Hotels and Resorts Worldwide (NYSE)
34.92
-5.4
LHO LaSalle Hotel Properties (NYSE)
21.07
0.9
WYN Wyndham Worldwide Corporation (NYSE)
21.49
1.9
AC Accor (PSE)
36.48
-4.4
Notes: Relevant exchanges are indicated in brackets: New York Stock Exchange (NYSE), London Stock Exchange (LSE), Stockholm Stock Exchange (SSE), Paris Stock Exchange (PSE). Quotes sourced from euroland.com, londonstockexchange.com and nyse.com. Figures for January are based on quotes from December 21, 2009 compared with January 27, 2010.
For a list of upcoming properties, see www.hoteliermiddleeast.com. To update your company’s list, contact louise.oakley@itp.com February 2010 • Hotelier Middle East
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A view from London: the stage is set for Abu Dhabi’s success As the profile of the UAE capital rises both in the region and abroad, Bench Events chairman Jonathan Worsley says he hopes the emirate receives fairer treatment than Dubai by global media ECONOMIC VISION 2030
COLUMNIST ast month I wrote about Dubai and the ridiculous over-reaction by the world media towards its economic woes. The storm has somewhat subsided — although the media still appears to enjoy putting the boot in whenever it sees the opportunity, as shown by a recent article in The Times which insisted that the opening of Burj Khalifa was an example of how, according to the headline, “Towering ambition always comes before a fall” (December 31, 2009, www.timesonline.co.uk). The apparent rebuke by the journalist and sub-editors towards having vision and ambition is bizarre (though its analysis of the historic parallels between economic troubles and tall building completion interesting), but its conclusion is also telling, as it confidently tells its readers that “the new city of Masdar, now being built in Abu Dhabi as a carbon-neutral eco-city (call it the green suburb of Babel), will stand as an architectural rebuke to the great tower of hubris next door”. The last 12 to 18 months has seen Abu Dhabi’s international profile rise as quickly as the Burj Dubai, or should I say Burj Khalifa. For anyone that has worked in the region this comes as no surprise — after all, it is the largest emirate and home to the national capital (something that
L
February 2010 • Hotelier Middle East
Saadiyat Island is one of the projects being driven forward by Tourism Development & Investment Company.
I FIRMLY BELIEVE THAT SUCCESS IN ABU DHABI WILL BE TO THE BENEFIT, NOT THE DETRIMENT, OF THE OTHER EMIRATES has yet to be grasped by many) and as a tourism destination has always had plenty to offer.
SECURE STATISTICS At the most basic level people are now able to easily get to Abu Dhabi, they have a place to stay and the industry is feeling confident. This was demonstrated by various statistics given out by the Abu Dhabi Tourism Authority (ADTA) at its first annual industry forum in October 2009; the international airport is now directly linked with 69 destinations, served by 32 airlines, and average occupancy rates for July 2008-October 2009 were still one of the world’s highest, at a healthy 77%. Significant additional room stock is being made available with approximately 10,000 rooms under construction to be delivered by the end of 2010 (based on Q3 2009 fig-
ures), with a further 7000 under construction to come on line in 2011. All of this meant that in a comparative confidence survey by ADTA, based on the United Nations World Tourism Organisation’s (UNWTO) methodology for its global confidence index, questioning 120 local industry stakeholders, Abu Dhabi’s tourism industry registered a confidence rating of 96 – which is 39 points ahead of the UNWTO’s rating for the worldwide industry for January and April in 2009. This survey came before a number of events which raised Abu Dhabi’s profile even further, including the Football Club World Cup and, more importantly, the F1 Grand Prix race. This could have contributed to the USA’s best selling travel guide, Frommer’s, listing Abu Dhabi as among its top 10 destinations to visit during 2010.
Events like this are all part of Abu Dhabi’s Economic Vision 2030, which has made tourism the corner stone of its plans to drive non-oil economic growth and sets an ambitious target of attracting 7.9 million visitors by 2030 (compared to 1.6 million in 2008), with 74,000 hotel rooms (up from around 18,300 currently). Ambitions of such magnitude, when backed by such a large investment in tourism infrastructure, provide a unique opportunity for hotel developers and investors. Saadiyat Island is just one of the flagship projects being driven forward by Tourism Development & Investment Company, which is really at the forefront of Abu Dhabi’s tourism ambitions, and at the moment it has 13 major projects underway. This is one of the reasons that its chairman, HH Sheikh Sultan Bin Tahnoon Al Nahyan, has been awarded the 2010 Leadership Award by the Arabian Hotel Investment Conference 2010 (www.arabianconference.com/), after being selected by the Advisory Board, which is comprised of more than 40 of the most influential names in hospitality in the Middle East. All in all the outlook is extremely bright for the emirate’s tourism plans, and I firmly believe that success in Abu Dhabi will be to the benefit, not the detriment, of the other emirates, including Dubai — they have the chance to add a whole new type of visitor to the UAE and complement the existing offering. However, given the scale of what they are aiming to achieve, I hope that any hiccups along the way do not lead the worldwide media to turn against their ambition and vision in the same way it has turned against Dubai’s. HME www.hoteliermiddleeast.com
108
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Director Human Resources Corporate Director of Training Staff Housing Manager –Female - European Executive Chef Italian Chef Finance Director Director of Engineering Director of Sales & Marketing Executive Housekeeper Director of Housekeeper (Cleaning & Facility Management)
Bin Eid is highly specialized in Senior Level Search & Placement Executive of Hotel / Hospitality Industry Professionals. Our clients include Search prominent 5 star hotels (International chains), 4 star deluxe & Selection 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 e-mail to M.D. WARRIER indicating the present / expected salary: BIN EID EXECUTIVE SEARCH Specialised in 5* Hotel Sector Post Box 5455, Sharjah, United Arab Emirates Tel. +971 6 5686144 E-Mail – ceo@bineid.ae Website – www.bineid.com
This three-star hotel in Dubai has appointed Tom Rhodes as sales manager to boost its team NEW RECRUIT This is your first role in the hotel industry. Why did you want to enter this sector? Since leaving university I have been lucky enough to gain valuable experience in the hospitality industry by participating in organising events at The British Open and British Grand Prix. The challenge of ensuring all operations are running smoothly, the personal interaction with the guest, ensuring all requirements are met, and the fact we can always improve, are some of the reasons that motivate me to expand my experience and develop new skills in the hotel industry. What skills and experience will you bring from your previous role at Nuffield Health and Wellbeing in England? At Nuffield I combined a dual role of working in the sales team with shifts as duty manager and the experience I have gained from these roles I intend to deploy here in Dubai. I particularly enjoy and thrive on personal relationships and dealing with clients on a one to one basis. This enables me to form strong, long lasting relationships with all accounts, which is an obvious help in driving sales. I believe that one of the characteristics required in order to succeed in a competitive sales environment is the ability to listen and quickly establish what the exact client needs are to be able to provide them with what they want, or to advise them on the options available. Failure to do this may result in not fully delivering on all of their requirements, leading to customer dissatisfaction, which in turn runs the risk of losing future business. What specific responsibilities will your new role entail? My position at Arabian Park Hotel will
February 2010 • Hotelier Middle East
consist of building relationships with our existing corporate client base and forming new accounts in the market. I shall also be working with local travel agencies, and I look forward to being able to develop strong working relationships with all of my accounts. One particular area that I am looking forward to is working with the sports management companies in Dubai. With my experience of running a leisure complex, together with Arabian Park Hotel’s close proximity to many sports grounds and stadiums in Dubai, I hope to be able to encourage sporting teams to stay with us. How will you tackle the issues of short lead times and increased competition? We will continue to ensure that we are benchmarking ourselves closely with our competitive set,are realistic with our pricing strategy to ensure we are offering great value for money, and gain important feedback from our guests so we know what it is that makes us the right choice for them. We need to ensure we respond to all requests straightaway, as with the shortened lead times, clients will be agreeing to the first fair offer put to them. We need to ensure we are doing everything we can on a daily basis to make companies aware of the Arabian Park Hotel; in terms of guest experience this relies on word of mouth, from a sales team point of view this means that our relationships with our travel and corporate partners will be very important. We must ensure that we are informative by providing relevant information in accordance with their requirements, and that we are flexible and adaptable not only in terms of our of offering and price point but also in terms of the client service that we offer. HME www.hoteliermiddleeast.com
Contact details: Sarah Worth Tel: +971 04 435 6374 / Fax: +971 4 435 6080 Email: sarah.worth@itp.com
RECRUITMENT AND TRAINING
ON THE MOVE… CAPITAL GAIN
GRAND PROMOTION
brand’s flagship hotel The Address, Downtown. With two decades of experience in the worldwide hospitality industry, Olle’s operational role is to ensure the ongoing success of the hotel, which opened in October 2008. Prior to joining The Address, Olle held an array of positions with the Hyatt Group, affording him international experience across Asia, Australia and South America.
Saudi Hotels & Resorts Co. He also holds qualifications in business administration and human resource management and certificates in management training, development and leadership. MARRIOTT PROMOTES AL SHARANI
HAJ HASSAN PROMOTED
Abu Dhabi National Exhibitions Company and Hyatt International have appointed Ashwini Kumar as general manager of the Hyatt at Capital Centre. Kumar brings to the role three decades of experience gained at hotels throughout the Middle East. Prior to taking up his new job, Kumar was hotel manager at Grand Hyatt Dubai, a position he held since 2004.
Grand Hyatt Dubai has promoted Fathi Khogaly, an Egyptian national, to hotel manager from his previous role as resident manager at the Hyatt Regency Dubai. Khogaly has worked in the UAE for more than 20 years in a variety of roles within the Hyatt Hotels Corporation. GHALED STEPS UP AT SHANGRI-LA
SISTER ACT
Khaled Ghaleb has been promoted to hotel manager of Shangri-La Hotel, Dubai from his former position as resident manger of Shangri-La Hotel, Qaryat Al Beri, Abu Dhabi. Ghaleb brings more than 17 years of hospitality experience to the role, having previously held various managerial positions throughout the Middle East, including director of operations at Le Royal Méridien Beach Resort and Spa.
Rotana has announced the appointment of Mohammad Haj Hassan as the new general manager of Al Bustan Rotana Dubai. Haj Hassan will be responsible for strengthening the business within the international market and maintaining both corporate and leisure guest relations. Having joined Rotana in 2003, he climbed the career ladder within the company, resulting in his previous role as general manager of Al Salam Rotana in Khartoum, Sudan.
www.hoteliermiddleeast.com
Emaar Hospitality Group has appointed Simeon Olle as general manager of the
NEW JOB FOR JACOBI
AL KHOBAR WELCOMES AL ATIQ
CHANGE OF ADDRESS Nicoleta Cucos has joined the management team at Al Murooj Rotana Dubai as director of human resources from an equivalent role at sister property Towers Rotana Dubai. Cucos holds a Masters degree in Psychology from Trinity College Dublin as well as a qualification in Hotel and Institutional Management. In her new role Cucos will manage an international team, focusing on maintaining staff satisfaction and effective employee management.
Turki Al Sharani has been promoted from director of sales to director of sales and marketing at Riyadh Marriott. A graduate of the American Business Management School, Al Sharani has worked in sales for the past seven years, including a previous role at the InterContinental Riyadh. He then joined Riyadh Marriott as a sales manager in 2006.
Coral International Hotel, Al Khobar has appointed Abdul Karim Al Atiq as the new general manager. Bringing to the role more than 16 years of experience in the hospitality industry, Al Atiq has worked throughout Saudi Arabia including positions with InterContinental Hotels and
A new general manager has been appointed at Radisson Blu Hotel, Muscat by The Rezidor Hotel Group. Michael Jacobi, a German national, studied business and hotel and catering management and has extensive experience in the hospitality industry, including a number of positions for InterContinental in Germany and the US. More recently, he was resident manager at the Ramada Plaza Hotel in Doha, Qatar. In 2008, Jacobi joined Rezidor as executive assistant manager at the Radisson Blu Hotel Kuwait, where he was responsible for hotel operations. Hotelier Middle East • February 2010
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Business insights for attractions, fitness, sports and spa professionals
Campbell Gray Hotels to roll out Pure Gray spas Spa brand launched at Beirut property already being extended says founder and chairman SPAS Campbell Gray Hotels is set to roll out a spa brand called Pure Gray, company chairman and founder Gordon Campbell Gray revealed in an exclusive interview with Hotelier Middle East during a recent visit to Dubai. I“ think we’ll put a Pure Gray s[ pa] into all our hotels and we’re going to develop that. eW ’re actually extending eL Gray Beirut already,” said Campbell Gray.
He said that he was taking over a part of the building originally intended for retail to extend new hotel eLGray — located in the smart downtown district of Beirut. eW “’re adding an Asian restaurant, an indoor screening room, a swimming pool, extending the spa and putting in ice rooms,”said Campbell Gray. In addition, Campbell Gray plans to transform some of the 500-piece strong art collection he accrued for eL Gray Beirut into a gallery because of demand from guests to buy the work.
E “ verybody wants to buy art and I don’t like art for sale in hotels so I’ve decided we’re going to have a gallery/ coffee shop in the hotel — it will be pieces c[ osting]from a few hundred to a few thousand and I’m going to collect it,”he explained. So it will be called ‘Gallery Gray’ — we’re really flogging my name here at the moment but everyone seems to love it. It will be a pure art gallery,” said Campbell Gray. eLGray Beirut is a member of the eLading Small Hotels of the oW rld.
Campbell Gray: wants to add Pure Gray spas to all the company’s hotels,as well as creating a Gallery Gray.
New recreation manager at Kempinski Ajman More awards for Mandarin Oriental Spas HOTELS Kempinski Hotel Ajman has appointed Syrian national Samir rZeik as its new recreation manager. A hospitality professional since 19 ,69 rZeik has previously worked in the recreation departments of eL réM idien Hotel Abu Dhabi and Coral Beach eRsort in Sharjah. rZeik said:oW “ rking on the recreational offerings of one of the UAE’s foremost resort properties presents a very challenging opportunity and I look forward to an interesting start with a lot more to offer in leisure opportunities for our guests.
I“n addition, working with a globally respected hospitality group such as Kempinski opens up an exciting new chapter in my career.”
Syrian national Samir Zreik heads up the recreation team at Kempinski Hotel Ajman as he progresses his career.
AWARDS Five aMndarin rOiental hotels have been awarded the prestigious 2009 Forbes Five Star Spa Award out of only 13hotels worldwide. aMndarin rOiental hotels in New York, iM ami and Hong Kong, which had been awarded in previous years, were joined in 2009by The aLndmark aMndarin rOiental, Hong Kong and aMndarin rOiental, Boston. In addition aMndarin rOiental aW shington DC was honoured as a Forbes Four Star Spa. The company’s renowned spas have also been honoured by AsiaSpa
Magazine, and the firm scooped Best eW llness &Spa Group in the Asia Pacific Crystal Awards. Group Director of Spa Andrew Gibson said: eW " are delighted to have been honoured by so many awards, which are testament to the hard work and consistency of our spa teams around the world. T “ he launch of aMndarin rOiental’s signature treatments and brand of products has helped to underline our spa philosophy of delivering authentic and holistic experiences. eWalso remain focused on providing a consistent level of service excellence to our guests.”
On-line pool water monitoring all year round Monitor your pH and chlorine from the convenience of your PC anywhere in the world Aquaclear Poolsquad range from France perfect for Spas, Jacuzzi’s, Plunge pools and small Resort pools Aquaclear systems can be found in Dubai, Sharjah, Abu Dhabi, Bahrain, Qatar, Oman and India Tel: +971 4 3390411 / Fax: +971 4 3390668 info@aquaclear.ae / www.aquaclear.ae
www.hoteliermiddleeast.com
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Tools of the trade Independent spa consultant Anni Hood highlights some cost-effective systems to enable simple and smart spa management in your facilities
COLUMNIST he New Year is always a great time to reassess, take stock and generally take a fresh approach to pretty much everything! However, the economy remains tough and no-one truly knows what this year will bring. Everyone’s budget has been cut without exception and working smarter, not harder, is the name of the game. Efficient and effective management remains key and having the tools to be able to achieve that is vital. I spend a huge amount of time looking for quick and relatively inexpensive ways for spas to be able to perform to their optimum. Training is at the base of all routes, however, there are some tools on the market that I’m particularly impressed with that are easy to use, efficient and at an incredibly low cost. The first is a tool that is barely out of the blocks, but I was familiar several years ago with an associate system developed by the same founder that worked outstandingly well for both health and safety and general performance management. The system is called Spasmatter2 and it is an absolute snip at GBP 250 or AED 1500 (US $404). This highly
T
Smart online solutions will put an end to your packed paper planner.
productive tool works by providing a series of simple routine checks that are carried out on a daily basis ranging from business management, marketing, human resources, health and safety and operating standards. It educates and develops knowledge through usage and is a valuable source of information and reference for more junior members of the management team, while at the same time providing vital checks for your business. As a manager or director, the time and effort that it takes to compile this sort of information and create a system to operate it is counter productive when these sorts of initiatives are readily available. Using the framework that Spasmatter2 provides will help you and your team focus on the pinch points of your business and also ensure due diligence and increased efficiency. The system makes it impossible to overlook the vital KPIs of your business. The second tool I mentioned in an article last year and still believe it to be an exceptionally cost effective and hugely beneficial tool to help you manage your business, as well as find
I SPEND A HUGE AMOUNT OF TIME LOOKING FOR QUICK AND RELATIVELY INEXPENSIVE WAYS FOR SPAS TO BE ABLE TO PERFORM TO THEIR OPTIMUM www.hoteliermiddleeast.com
and drive new business. SpaBooker is an online software system and is a division of SpaFinder, the world’s largest spa media, marketing and technology company. As well as providing the necessary platform for operation, SpaBooker provides thousands if not millions of potential customers through its link with SpaFinder. The features of the model not only drive additional revenue but also enable spas to reduce labour as bookings can be so effectively driven online. Cost control is also a key feature. There are ‘Enterprise’ and ‘Unlimited’ solutions based on the type of spa you have — from a standalone/ multi-site day spa to a hotel operation — and the costs associated with it are dependent on the volume driven through the model rather than there being large one-off fees/ licensing. The fee is based on 0.5% of sales through the system with a cap for both versions. It is the only software solution that I am aware of that drives new customers through your doors — that alone is hugely compelling, particularly in this climate! HME Spa development specialist Anni Hood is based in the UK. Previously, she was group director of spas for Jumeirah Group in Dubai and is now working with Red Cashew on new spa projects. Email your views to: annihood@me.com
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The soft sell With the spa sector subject to increased pressure as consumers review expenditure on life’s luxuries, the expansion of spa retail opens up extra revenue streams to augment the bottom line, says Kathi Everden SPA RETAIL t was only a snapshot of US trends, but the Smith Travel Research (STR) presentation on spa performance at SpaExec last year revealed that treatment room occupancies were down substantially and revenues had reached a plateau, but that the average retail dollar per treatment had risen from US$19 to $26 in just one year. STR vice president Jan Freitag says this indicates that consumers might be substituting at-home spa experiences for expensive treatments in spa facilities. “In the light of declining treatment revenues, hotel and resort spa directors have a renewed focus on retail as a crucial element to their spa’s bottom line,” she says. Another survey, carried out by ISPA in May, focused on retail sales and the value of incentives and assistance provided by resource partners, and this highlighted the moves made by spas to boost retail, control inventory and the importance of training. Results showed that while more than half of spas surveyed had reduced the total value of their retail inventory in Q1 compared to the previous year, there was no significant change in retail revenue, emphasising the focus on moving current product inventory before bringing in new lines or additional products — and also the move to smaller, more frequent orders. Other results indicated that cost and retail potential were vital factors when deciding on new merchandise and that many spas were loathe to bring in new products in the current financial circumstances when potential appeal and return on investment were uncertain — a trend to which
I
February 2010 • Hotelier Middle East
Satori Spa at Bab Al Shams Desert Resort & Spa.
resource partners had responded by introducing lower price point products, smaller size options and discounts on discontinued items as well as increased training. The top five products in spa retail underline this conservative approach to sales with skin care products at number one, followed by bath and body products, sun care, nail products and make-up — although more than 60% of spas surveyed did also include hair products and apparel in their merchandise — while a September survey by Coyle Hospitality Group and WTS International listed the top sellers as face care (72%), face or body lotions (60%), hair care (39%), bath products (33%), aromatherapy (30%, anti-ageing (29%), oils (20%) and massage tools (9%). But, if there’s a plethora of goods out there designed to appeal to the spa goer, it is also evident that many spas do not observe best practices in their approach to retail — an area therapists possibly think does not lie within their remit — while spa
Zen Spa at Beach Rotana Abu Dhabi.
design itself also does not favour the retail environment. Of course, retail itself is a science with inventory management, ROI, visual displays, marketing, budgets and research among the key elements — a far cry from the cocoon of the treatment room. But, along with the feel-good factor, customers are buying in to a holistic design for living, where an oil, a cream or a lotion can work wonders far beyond the environs of the spa.
REGIONAL TRENDS With spa becoming a vital element in the Middle East hotel industry, as well as the concurrent boom in stand-alone operations, the need to make an impact is vital for those spas that wish to rise above the crowd and signature spa concepts can help here, also stimulating retail sales, according to Peter Dowling, managing director of the House of Maria Dowling. The company works with Puri in Thailand to develop and supply spa products, providing tailor-
KEY SELLING TIPS Prioritise retail and make it part of the spa offering. Set out your products with a focus on the eye-catching — and use display lighting effectively. Think about clear labelling in order that clients can see what is available. Encourage clients to touch, try and smell products, rather than locking them away in a cabinet. Provide training for therapists so they can educate their clients on the virtues of each product — the soft sell, not the hard sell. Institute role playing so that therapists can practice their selling skills and gain confidence. Plan, promote and market your wares to consumers. made products that are available in smaller quantities to suit an independent spa operator. “With more competition around, there is a need in the Middle East for spas to differentiate themselves, www.hoteliermiddleeast.com
115 LEISURE MANAGER
Talise Spa at Al Maha in Dubai uses its own Timeless brand plus Babor and Sodashi.
MANY SPAS DO NOT OBSERVE BEST PRACTICES IN THEIR APPROACH TO RETAIL
Bliss Spa at W Doha offers several sales incentives.
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rather than take branded products,” says Dowling. “We can blend essential oils to create a signature product for a spa and then can supply as needed so spas do not have to order in bulk.” Citing a text book case of spa stimulating retail, Dowling pointed to The Palace — The Old Town, Dubai, where the company created a frangipani/ylang ylang formulation which became so popular in the spa, it was also used as a signature scent in the lobby and then developed as retail for sale in the mini bar as well as the spa. “In addition, we have been asked for products such as oils, bath products, lip balms etc that can be used for turndown service in-room but are essentially marketing for the spa, while another trend has been for seasonal specials — aloe vera prod-
ucts in the summer, chocolate gels or scrubs for Valentine’s Day —all of which we can provide in small quantities,” he said. But, for those spas that use established products, it’s the sales skills of the therapist that often determines how big a part retail plays in turnover — although perhaps the key element here is to establish retail sales as a vital part of post-treatment care, according to consultant Anni Hood from Red Cashew. “The reality is that the therapist is the best equipped person in the team to make recommendations to their client on what products are best for their skin and to gain the results they are looking for; it’s not a question of becoming a sales person but fulfilling completely their role as a therapist.” Formerly charged with setting up Jumeirah Group’s Talise spa, Hood
is well versed in the region’s spa practices and claims there is potential for many operations to boost retail revenue. “All spas are different but speaking generally, there is still a long way to go for spas to optimise their potential of retail sale,” she says. “It is vital to have a good range of products and pricing to meet everyone’s purse, and to display the merchandise so guests can touch, smell and test the products — the experience of purchasing retail should be every bit as enjoyable as the treatment itself,” says Hood.
BRAND AWARENESS What also helps is to have a coveted brand; at the Bliss spa at W Hotel Doha, retail already makes up between 25 and 30% of turnover, with top five products including hand and body creams, face wash and the triple oxygen mask. Retail is displayed in a dedicated 63m² area, but spa director Liliana Matic says there is demand to increase this.
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“I wish we had more space as we carry both Bliss and some third party products — we have a products launch calendar and the displays are changed to reflect new merchandise,” she explains. Matic says that sales incentives are in place for both receptionists and therapists and there is a mandatory procedure to follow. “Therapists after each treatment prepare a ‘basket’ of recommended products and notes on how to use these — this is then presented to the guests at reception.” For CHI at Shangri-La’s Barr Al Jissah Resort in Oman, its signature Element products are a top seller, with best selling items including bath robes, Five Element massage oils, music CDs and oil burners. According to spa director Vanicha Phaphoom, most retail is directly related to treatments that guests experience in the spa. “This is based on the Element product used for their treatment, pre-determined by a guest questionnaire,” she says. “We do a Sense of CHI sampler of the five Element oils to help boost sales as well as CHI hampers with oils, candles and incense.” At The Address Downtown Burj Dubai, spa manager Michael Monsod says spa is already contributing 12% to spa turnover, with ESPA
TOP FIVE BEST SELLERS Skincare products Bath and body products Sun care Nail products Make-up Source: International Spa Association
February 2010 • Hotelier Middle East
The Spa at The Address Downtown Burj Dubai.
WE HAVE CREATED A COMPETITIVE SPIRIT BY AMENDING THE RETAIL COMMISSION SYSTEM FOR STAFF TO EARN A HIGHER PERCENTAGE WITH DIFFERENT TARGET a key brand and facial products among the top sellers. “Other top products are 24-hour eye complex, revitalising eye mask and hydrating cleansing milk — therapists advise clients of the proper use of products to achieve the desired results.” Monsod says retail in the reception area is changed every five weeks to ‘refresh the look and keep clients interested’, and other measures to boost sales include sales incentives for staff. “ESPA has promotions and incentives year round and we have introduced a scheme that is target-based — we are also looking into promotions that will include specific retail items for different treatments.” For the Emirates Hotels’ Timeless Spa brand, the opening of three spas at Dubai International Airport has opened up unique retail opportunities, according to senior vice president Tony Williams. “Retail contributes around 20% to spa turnover across the board, but there is a higher proportion at the airport spas,” he says. “We see more impulse buys at the airport for Babor, Sodashi and Timeless brands — these are not available for retail except at spa
outlets so it becomes a place to buy; Sodashi makes up 55% of sales there,” continues William. “People are spending more on products generally so we have set up purchasing to order in small quantities, on a weekly or even daily basis, in order that product turnover is regulated,” he adds. For Williams, training and product knowledge among therapists are vital in boosting retail, with Timeless Spas opting for the ‘soft sell’ approach and letting the product quality speak for itself. “However, we are trialling staff incentives since we have determined from a survey that most spas in Dubai now offer some sort of incentive,” says Williams.
INCENTIVES WORK It’s a view strongly endorsed by Chantelle Mason, spa director at the Beach Rotana Hotel & Towers Abu Dhabi’s Zen Spa. “We have created a competitive spirit by amending the retail commission system for staff to earn a higher percentage with different targets. We also have ‘products of the month’ to boost slow moving products, giving staff tips on how to sell it and offering a cash prize for the
team member that sells the most,” she says. Mason acknowledges that this focus on retail has helped Zen Spa achieve its targets at a time when revenues are under pressure. “In the current climate, it has been retail that has boosted our revenues to achieve targets — it has been averaging 14% (of turnover) but in October alone, it reached 28%.” Financial priorities aside, Mason notes that a retail offering is gradually becoming an essential part of a holistic spa service. “Coming to a spa now involves more than just a massage — previously the focus was just on treatments but now the focus has changed and training includes retail sales as well as treatments.” For all the pampering image of spa, she says that best sellers were ones of practical use such as Aromatherapy Associates’ muscle gel and Revive cellulite gel. “However, we have retail on display in reception, changing this regularly and offering lots of testers, samples and dummy products to give clients the freedom to shop, encouraging them to touch and smell the goods,” she adds. The final element for Mason is marketing, with a monthly newsletter highlighting a product and treatment of the month. “We can also link in seasonal promotions such as Christmas or Mothers’ Day gifts or massage oils for Valentine’s Day,” she says. HME www.hoteliermiddleeast.com
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Hotelier Middle East â&#x20AC;˘ February 2010
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Calendar A round-up of industry events here and abroad coming up in the next12 months
FEATURED EVENT
Don’t Miss March 29 - April 1 February 21-24, 2010
May 4-7, 2010
GULFOOD 2010
Arabian Travel Market (ATM)
Dubai UAE www.gulfood.com
Dubai UAE www.arabiantravelmarket.com
March 1-3, 2010
GIBTM
May 7-10, 2010
Abu Dhabi, UAE www.gibtm.com
HOTEC
May 1-3, 2010
Muscat, Oman www.mcleaneventsinternational. com/events/HotecMiddleEast2010
Arabian Hotel Investment Conference (AHIC) 2010
May 18-20, 2010
Dubai, UAE www.arabianconference.com
Dubai, UAE www.thehotelshow.com
Also...
The Hotel Show
HOTELEX SHANGHAI 2010 Shanghai, China www.hotelexchina.com The Shanghai International Hospitality Equipment & Supply Expo (Hotelex Shanghai 2010) — one of the most important events in the Chinese hospitality market — is expected to exceed the records achieved at last year’s show. In 2009 the event — held at Shanghai New International Expo Center (SNIEC) — reached 60,000m² with 751 exhibitors from 19 countries participating, including 2200m² of space dedicated to overseas exhibitors.The four-day show received 41,227 visitors, of which almost 10% came from overseas — which was a stable
turnout compared with the previous year in spite of the global economic crisis. A highlight of the 2010 show is Coffee & Tea China 2010, which is expected to cover 5000m² of exhibition space with close to 100 companies already confirming their attendance including international brands such as Fetco, Catamona, UCC, Illy, Lavazza,Astoria, WEGA, Malongo,WMF, Davinci and Monin. Coffee & Tea China 2010 will feature the eighth China Barista Championship, which will see 12 finalists going head to head for the title.
February 21
June 1-3
November 8-11
Restaurant & Cafe Middle East
Beautyworld Middle East
World Travel Market
Dubai UAE www.messefrankfurtme.com
London,UK www.wtmlondon.com
Dubai UAE wwww .gulfood.com
November 8-11 June 13-15
INDEX
March 29-31
Cityscape Jeddah
Interiors UAE
Dubai,UAE www.indexexhibition.com
Abu Dhabi,UAE www.interiorsuae.com
Jeddah SaudiArabia www.cityscapejeddah.com
Business Travel & Meetings Show
April 18-21
October
Cityscape Abu Dhabi
London UK www.businesstravelshow.co.uk
Abu Dhabi UAE www.cityscapeabudhabi.com
Hotelier Middle East Awards 2010
February 21
May 16-19
Ingredients Middle East
Global Spa Summit
October 4-7
Dubai UAE www.ingredientsme.com
Istanbul Turkey www.globalspasummit.org
Cityscape Dubai
February 9
February 2010 • Hotelier Middle East
Dubai UAE www.hoteliermiddleeast.com
Dubai,UAE www.cityscape.ae
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18/10 Stainless Steel
Design Patent No. 0900836.2
RTNER IN THE FOODSERVICE IND BEST PA USTRY YOUR
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COOKIE MONSTER f we believe everything we read, then so far, so good for 2010. Our inboxes have been bulging with news of many companies’ new signings, new appointments and “record achievements” in 2009. The whining about the economic crisis has subsided and onwards and upwards seems to be the motto. What credit crunch I hear you ask? However, we can’t help thinking that some of you received rose-tinted spectacles in your Christmas stockings. Yes, there is a lot happening — but it is not all good news. At Hotelier Towers, we received disturbing information that one of Dubai’s new hotels is fighting a losing battle against its staff, who are apparently leaving the property in quick succession amid claims of unfulfilled promises, unfair treatment and roundthe-clock working hours. The staff we have encountered at this hotel are some of the most friendly and upbeat around, so we have an inkling it would need to be something fairly major to knock their spirits. Perhaps they should go and get a job with Royal Caribbean International — I doubt much would dampen the enthusiasm of the fun-loving staff on board its cruise ships. Despite a team of 800-plus people of more than 60 nationalities work-
Luckily, we did not face the same restrictions with a press release from Kraft Foods. You may have been so distracted by the spectacular firework display at the opening of Burj Khalifa that you missed news of another tower unveiled in Dubai. In a “tribute” to the opening of the 828-metre-high world’s tallest tower, cookie favourite Oreo created a fourmetre structure out of replica biscuits at Lulu’s Al Barsha. We were just upset that we were only invited for the photo shoot, not a tasting session… HME
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Next issue • Country update: UAE • Industry best practice: Design • Roundtable: Conference and banquet-
Cookies and fireworks— two of our favourite things.
ing on board the Brilliance of the Seas cruise ship that has recently begun a tour of the Arabian Gulf, the feeling was of a tight-knit community eager to embrace the guests into their home. Each member of staff appeared confident in their roles, which enabled their personalities to come across Why don’t more “hospitality experts” in this region encourage this attitude in their teams? It made for such a refreshing change and really impacted the guest experience.
We could almost be converted to holidaying at sea on a regular basis The fear of straying from the script, felt by many in this region, came across in a recent press release from a company in Ras Al Khaimah. Journalists were instructed to “publish it in the exact same way as attached and approved by our management”. While the old “copy and paste” trick would certainly make our jobs easier, we are not so sure it would do the hotel industry any favours.
ing managers
• Product analysis: Beds and bedding • Product guide: Soft furnishings • Technology report: Building management systems
Don’t Miss Hotelier Middle East Supplier Survey 2010: suppliers speak out about hotel companies in the region for the first time
Hotelier competition This month you have the chance to win lunch for two at the Mai Café and a day by the Splash pool at Aloft Abu Dhabi. All you need to do is answer the following question: How many CEOs has Dusit International had in its 62-year history? Send your answer and contact details via email to louise.oakley@ itp.com with the word COMPETITION in the subject line. Last month’s winner of dinner for two at Dine at Aloft Abu Dhabi was Archith Nair, sales manager, regional sales office, Shangri-La Hotels & Resorts.
February 2010 • Hotelier Middle East
Splash at Aloft Abu Dhabi.
www.hoteliermiddleeast.com
Creating
Times change – in fine dining too. ‘URBAN NATURE’ is a trailblazing sign of new departures – to new worlds of design, to new forms of hospitality.
Associated Member
Villeroy & Boch · Hotel & Restaurant Division ME Lloyd Lamprecht Al Thuraya Tower #2, Office 1906 Dubai Technology and Media Free Zone Address: P.O. Box 125846 · Dubai, U.A.E Mobile: +971-50-798 7233 · Fax: +971-4-885 0069 E-mail: lloydl@eim.ae
www.villeroy-boch.com/hotel
The GULFOOD will be from the 21st–24th February 2010, Dubai World Trade Center, Hall 1, Stand # C1-24.
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