Hotelier Middle East - March 2010 by ITP Business Publishing

The definitive guide to successful hotel management

March 2010

KEEPING UP APPEARANCES The function versus form debate rages on between hotel interior designers

HOW TO SAVE $50 MILLION Kurt Ritter reveals how Rezidor survived the downturn in 2009

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THE CATERING CONUNDRUM Why hotels are increasingly under pressure to provide end-to-end event management services

UAE UPDATE IBIS EXPANSION INVESTMENT OPPORTUNITIES BEDDING TECH TALK Licensed by Licensed by Dubai Media City

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March 2010 Vo Volume 9, Issue 3 05 NEWS Banyan Tree takes legal action against Meydan; Kempinski and HMH hotel cancellations; growth potential for UAE conference sector; hotels prioritise MICE business ahead of GIBTM.

10 NEWS: CLASSIFICATIONS Jordan Minister of Tourism and Antiquities HE Maha Khatib outlines the new hotel classification being rolled out across 331 hotels.

14 NEWS ANALYSIS: THE ECONOMY SEGMENT General managers from Ibis debate the challenges and opportunities facing the limited service brand.

26 EXCLUSIVE: AN INTERVIEW WITH KURT RITTER The Rezidor Hotel Group president and CEO Kurt Ritter reveals how the company tackled the challenges of the economic downturn.

30 ROUNDTABLE: THE CATERING CONUNDRUM

57 SUPPLIER FOCUS

76 TECH ANALYSIS

News from MezzeAssociates, Depa and Philips.

Carol Prince discusses the pros and cons of POS systems.

60 SUPPLIER PROFILE

79 HOTELIER INVESTOR

The Parker Company’s Titus van der Werf discusses the evolving procurement marketplace.

Industry heavyweights outline future investment opportunities and Jonathan Worsley reviews hotel industry predictions.

Hotel conference professionals face an increased demand for events management services.

62 FITTED OUT

37 COVER STORY: HOTELIER MIDDLE EAST SUPPLIER SURVEY

65 PRODUCT ANALYSIS

The Global Spa Summit; Anne Sémonin introduced at Senso Spa; and analysis from Anni Hood.

Beds and bedding experts discuss their products and new trends.

90 TRAINING INTERVIEW

68 PRODUCTS

Asma Al Fahim introduces the elearning debate.

A round-up of soft furnishings and Hotelier’s pick of the month.

92 MOVERS AND SHAKERS

Industry suppliers reveal the ins and outs of their financial performance, where they see the next boom, and which hotel chains they would least like to work with.

The leisure deck at Bonnington Jumeirah Lakes Towers.

22 COMMENT Guy Wilkinson urges hotels to plan spas in advance to put an end to loss-making facilities.

New recruit and appointments.

44 BEST PRACTICE: DESIGN

73 TECH TALK

Interior designers analyse the issues associated with hotel design, from sustainability to quality concerns.

News from Acentic, Langham Hotels and Schneider Electric.

24 TOUGH TALK Owner Mike Scully puts forward the owners’ perspective on the need for investment in technology.

74 TECH EXPERT 52 COUNTRY UPDATE: UAE Hotelier explores the opportunities beyond Dubai and Abu Dhabi.

Introducing Mövenpick Hotels & Resorts’ Roger McFarlaine, Hotelier’s resident IT doctor.

37 14 www.hoteliermiddleeast.com

85 LEISURE MANAGER

94 HOTELIERS AFTER HOURS In this new section, we present the best of the month’s parties, networking events and charity challenges.

96 HOTELIER CONFIDENTIAL Insights from the news desk.

82 44 Hotelier Middle East • March 2010

ONLINE

THE WEIRD AND THEUL WONDERF

Most-read stories on hoteliermiddleeast.com

Spiderman in action at Mövenpick Hotel Jumeirah Beach.

Spiderman spotted at new Dubai hotel The Walk at Jumeirah Beach Residence in Dubai became the web of choice for Spiderman to practise his skills. Entertaining residents and visitors alike, Spiderman and his entourage were actually performing the final cleaning duties on the facade of the new Mövenpick Hotel Jumeirah Beach, which is due to open in the coming weeks. General manager Peter O Connor commented: “We believe in finding the passion

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and fun in everything we do. If we can have Spiderman clean our exterior then why not, it puts a smile on people’s faces.” Spider Style is the company which supplies the superhero to businesses across the city and offers large scale cleaning solutions specialising in building facades. The hotel is putting the finishing touches to the building gearing up to the opening of the 294-room property expected this month.

HMH CEO Michel Noblet declined to comment on the reasons for the cancellations (see page 7).

1. Banyan Tree takes legal action against Meydan 2. Spiderman spotted at Dubai hotel 3. Plane from Abu Dhabi skids off runway 4. HMH cancels three Dubai hotels 5. Burj Khalifa observation deck temporarily closed

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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 March 2010 • Hotelier Middle East

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5 NEWS

THE REGION • Signings • Openings • Best practices • Strategy • Branding • Legislation • Events

Banyan Tree takes legal action against Meydan Operator cites “various breaches” of management contracts as Jumeirah Group supports hotel launch STORY OF THE MONTH Banyan Tree Hotels and Resorts has initiated arbitration proceedings against Dubai company Meydan LLC “for various breaches” of the management contracts for two Dubai hotels the company was expected to operate, Hotelier Middle East exclusively revealed. A statement released by Banyan Tree last month said: “Further to the announcement made on 14 November 2009, the Board of Directors of Banyan Tree Holdings Limited (“BTH” or “Company”) has announced that its wholly-owned subsidiary, Banyan Tree Hotels & Resorts Pte. Ltd. (“BTHR”) has initiated arbitration proceedings against Meydan LLC, Meydan Group LLC and Meydan City Corporation for various breaches of the Hotel Management Agreement for The Meydan and the Villa Management Agreement for Banyan Tree Meydan”.

Abdin Nasralla has been appointed VP for Hotels and Hospitality for Meydan, overseeing The Meydan Hotel.

The statement continued: “The Meydan is a proposed 230-room hotel located at the Meydan Racecourse in Dubai. Banyan Tree Meydan is a proposed 77 villa resort in the same development. “Both The Meydan and Banyan Tree Meydan have not commenced

operations yet,” the statement added. Hotelier Middle East can also confirm that Dubai’s Jumeirah Group will be assisting in the initial operation of The Meydan — which opened on March 4 during the Dubai International Racing Carnival ahead of the Dubai World Cup meeting on March 27. A spokesperson for Jumeirah said: “I can confirm that Jumeirah Group has been asked to support the set-up and initial operation of The Meydan, a hotel which forms part of the Meydan Racecourse City project in Nad Al Sheba. This involves sharing our expertise to assist the hotel with its pre-opening plans in advance of the official launch”. Meydan said it could not comment on the arbitration proceedings, but revealed that Abdin Nasralla, the former general manager of Jumeirah Bab Al Shams Desert Resort and Spa in Dubai, had been appointed VP for Hotels and Hospitality for Meydan.

Kempinski Hotels cancels five Middle East pipeline properties OPERATORS Kempinski Hotels has cancelled five of the hotels in its Middle East upcoming property pipeline. Three properties in Damascus and hotels in Marrakech and Sharm El Sheikh have been canned. Speaking exclusively to Hotelier Middle East, Kempinski Hotels president for Middle East www.hoteliermiddleeast.com

and Africa Ulrich Eckhardt said: “The hotels in Damascus were under one owner and the whole cluster agreement is being cancelled by mutual agreement between Kempinski and the owners, who wish to take a different route with their investment”. He said the hotels in Sharm El Sheikh and Marrakech belonged to the same owner and were cancelled in one cluster agreement.

A further project in Windhoek, Namibia has also been delayed indefinitely with a decision being awaited from the owners. With regard to future plans, Eckhardt said: “Kempinski is continuing to look for good hotels in Damascus that match Kempinski standards and add value to the portfolio. Syria remains an important market for Kempinski, as does the Levant in general.

Meydan Hotel now open

Suites at The Meydan Hotel overlook the track.

The Meydan Hotel started receiving guests on March 4, which coincided with the Dubai International Racing Carnival’s (DIRC) Super Thursday race meeting. Meydan vice president of hotels and hospitality Abdin Nasralla said it marked “a pivotal moment as we launch our first hospitality brand offering to the world”. The property features 285 rooms and suites, 95% of which have views of the race tracks and concert stage. Facilities comprise seven restaurants and bars, spa, gym, and business centre facilities. Room rates include a buffet breakfast,complimentaryminibarwithsoftdrinks and free WiFi internet access.

STOP THE PRESS! As Hotelier was going to press, the owners’ representative for the hotels that Eckhardt said were cancelled said this was “premature and far from the truth”. Contracts manager Jinmayam Nesco said: “There is not any such cancellation of the hotel projects in Syria, Morocco and Egypt. The fact is all these contractsarestillvalidandverywellinplace.” In response, Kempinski Hotels Middle East and Africa regional director of PR Doaa Amin said: “I would like to confirm that the information provided by Kempinski to Hotelier regarding the cancellation offiveKempinskihotelsisfactualandaccurate.”

Hotelier Middle East • March 2010

NEWS

ANNOUNCEMENTS TDIC signs region’s first Mandarin Oriental for Saadiyat Island in UAE Mandarin Oriental Hotel Group has partnered with Abu Dhabi-based Tourism Development & Investment Company (TDIC) to launch its first property in the Middle East. Located on Saadiyat Island, the 160room hotel — which also features 35 serviced apartments and 50 branded Residences at Mandarin Oriental — is scheduled to open in 2013. Facilities will include an all-encompassing Spa at Mandarin Oriental, six restaurants and bars, meeting and banqueting rooms, a private beach club, a comprehensive fitness centre and a large outdoor swimming pool. Oetker Hotel Collection to enter Middle East with Le Bristol Abu Dhabi The Oetker Hotel Collection (OHC) has announced that it will be entering the Middle East with the opening of Le Bristol Abu Dhabi in 2012. Le Bristol Abu Dhabi will feature 250 luxury guestrooms with a minimum size of 40m² and suites with private fitness and amenities. A highlight will be a spa inspired by the Brenner’s Park-Hotel & Spa in Baden-Baden — also a member of the Oetker Hotel Collection — a private beach and a private marina. During a roadshow to launch the brand in the region last month, OHC also announced that regional hospitality veteran Samir Daqqaq, who was previously vice president of global sales for Middle East & Africa for Marriott International, has been appointed senior vicepresident (development) for Middle East and Africa. Belle Vue Hotels opens $68 million shariah-compliant Dubai property Belle Vue Hotels has opened its first hotel in Dubai, an AED 250 million (US $68 million) shariah-compliant property in the Tecom area on Sheikh Zayed Road. The Grand Belle Vue Hotel Apartments has been developed by Jordanbased Amlak Hotels and Tourism Investment Company, which launched its hotel management company in Amman, Jordan in 2000. The Dubai hotel is the company’s second in the Middle East, with a third property planned for Dammam, Saudi Arabia.

March 2010 • Hotelier Middle East

Hoteliers prioritise MICE business InterContinental, Rotana and Jumeirah gear up to target major buyers at GIBTM MICE Hotels in the region are ramping up their MICE focus with increased event space, dedicated meetings and events teams and creative packages designed to win over buyers and help develop the Middle East as a meetings destination. Rotana has set ambitious growth targets for its MICE business, said the company’s president and CEO Selim El Zyr, who was speaking ahead of this month’s Gulf Incentive, Business Travel & Meetings exhibition (GIBTM) in Abu Dhabi. “The MICE business is an increasing segment throughout Rotana properties and destinations in the Middle East. The approximate current percentage of MICE business is 8% in Abu Dhabi, 8% in Dubai, 9% in Lebanon and 11% in Egypt,” revealed El Zyr. “MICE business relies not only on the property’s offering but also on the destination itself. In Egypt, we are forecasting or in fact working on increasing the MICE business within the coming two years to 18%. Sharm El Sheikh is emerging as a conference paradise and our five-star luxurious resort the Grand Rotana Resort & Spa boasts some of the most hi-tech modern facilities combined with the resort’s exclusive services, making it the perfect place to host meetings providing both business acumen with rest and relaxation,” he continued. “In Abu Dhabi, the increase will be very significant; up to 14% which is a growth of more than 60% and this is due to the initiatives taken by the Abu Dhabi Tourism Authority (ADTA) to promote the destination for MICE. “Hosting important exhibitions such as GIBTM assists hugely in the overall tourism development taking place and plays a major role in nurturing further growth in this sector,” said El Zyr. InterContinental Hotels Group Dubai Festival City (IHG DFC)

and Jumeirah Group will also be exhibiting at GIBTM. IHG DFC director of sales & marketing Christian Pertl said the aim would be to connect and liaise with key buyers and promote DFC as “a fantastic MICE destination”. He said 25% of business at the hotels was MICE, with growth driven through the key feeder markets of Europe and the US and emerging markets such as India. To enable an increased focus on MICE, Pertl said that Al Badia Golf Club, taken over by IHG in July 2009, had added four meeting rooms, outdoor pre-function areas and a large outdoor venue for events on The Lawn to the hotels’ already extensive Event Centre. He added: “We have re-organised the sales and marketing structure to allow a heavier focus on MICE. The Middle East is a major contributing key market for our hotels. This is why we have a GCC team mobilised to look after and travel to these key feeder markets”. Jumeirah has also initiated several internal changes to grow its groups segment. Carl Palmlund, Jumeirah director of sales — groups, said: “We have increased our group ceilings

(i.e. the number of rooms that can be booked) across all of our Dubai properties and realigned our room rates to be more competitive on the local and international arena. In doing so, our conversion rate of large business being secured is increasing and the level of demand (i.e. the number of enquiries) is steadily improving. “To increase effectiveness in this area of the business further, Madinat Jumeirah, Jumeirah Beach Hotel, Jumeirah Emirates Towers and Jumeirah Bab Al Shams Desert Resort & Spa are now providing combined a groups offering,” Palmlund continued. “By combining the Group’s facilities in our properties we are now able to offer an extensive range of hotel experiences and more than 6000m² of event venues at once,” said Palmlund Groups business constitutes almost 25% for Madinat Jumeirah and this segment has grown by approximately 10% over the past five years across Madinat Jumeirah, Jumeirah Beach Hotel, Emirates Towers and Bab Al Shams. GIBTM will take place from March 29-31 at ADNEC in Abu Dhabi. Visit: www.gibtm.com.

The acquisition of Al Badia Golf Club has boosted the events offering at InterContinental Hotels Group DFC.

www.hoteliermiddleeast.com

7 NEWS

HMH cancels three Dubai hotels The firm’s Dubailand and Fujairah Ecos-branded hotels are also on hold OPERATORS Hospitality Management Holdings (HMH) has cancelled three of its Dubai hotels, Hotelier Middle East exclusively revealed. Corp Business Bay, Coral International Deira and Coral Boutique Bur Dubai are no longer going ahead, HMH disclosed. The company also confirmed that two other hotels in its upcoming property pipeline were on hold; Ecos Dubailand and Ecos Fujairah. There are also delays at two other UAE hotels; Coral International Abu Dhabi and Coral Al Mjaz Tower Sharjah. HMH confirmed the cancellations and delays but declined to comment on the reasons why.

Jumeirah to manage fivestar property in Thailand Jumeirah Group has been appointed by Country Group (Thailand) to manage a luxury hotel in Thailand. Jumeirah Bangkok, a 305-room, fivestar hotel will be located on the banks of the Chao Phraya River close to the capital’s Central Business District. The hotel will feature a 200-metre water frontage and will be accessible by boat via in-house docking stations. The concept for Jumeirah Bangkok was developed by Singapore-based architectural firm Hamiltons International in conjunction with UK-based interior design firm United Designs. Scheduled to open in 2014, the property will feature a signature Talise spa, retail units and an art gallery.

Jumeirah Bangkok has been designed by Hamiltons International and United Designs.

www.hoteliermiddleeast.com

The company is scheduled to open Corp Al Barsha and Corp Doha in April, and it recently opened a property in Cape Town under the Coral Hotel & Resorts brand.

For further information on HMH’s upcoming property portfolio, visit Hotelier’s upcoming properties database online at HotelierMiddleEast.com.

HMH CEO Michel Noblet declined to comment on the reasons for the cancellations of three hotels in Dubai.

Hotel rates may not improve until 2012 RATES Dubai hotels may not experience rate improvement until the end of 2011 and beginning of 2012, according to analysis from CBRE Hotels EMEA. The Dubai hotel sector will be slow in following the global trend for recovery, generally expected in 2011, because of the reliance upon leisure visitors, said CBRE Hotels EMEA associate director Julian Kemp. “The general consensus is that room rates will not start to improve until 2011,” said Kemp. “Rate improvement generally follows a recovery in demand levels. With positive outlooks in respect of economic performance, it is expected that corporate demand will improve towards the latter part of 2010. As demand increases it allows hotels to start increasing negotiated rates. Leisure travel may take longer to improve and therefore leisure sector rates may remain depressed. “Dubai and UAE hotels are likely to follow a similar trend and as such hotels may experience an improve-

ment in rate in 2011. However, with a large proportion of demand for Dubai hotel rooms generated from the leisure sector, rate improvement may take longer toward the end of 2011 and beginning of 2012,” asserted Kemp. In addition, he said it would be “unlikely” that Dubai hotels would be able to charge room rates at levels achieved before the economic downturn that started in 2008.

CBRE Hotels EMEA associate director Julian Kemp .

Hotelier Middle East • March 2010

NEWS

Emirates’ conference market holds great potential Dubai and Abu Dhabi have capacity and competitive rates says Deloitte &Touche’s Rob O’Hanlon TRENDS Dubai and Abu Dhabi not only have the capacity to increase their conference business but are also achieving competitive rates, Deloitte & Touche partner Rob O’Hanlon has asserted. In particular, he said that there was capacity available in Q4 2009 — the time of year when it would be easier to attract people to the region with events. Speaking at the Gulfood Conference last month, O’Hanlon analysed data from The Conference and Productivity Bench, which compared conference capacity in Dubai, Abu Dhabi, Frankfurt and London (see graphs). He said: “Relevant to our capacity we’ve had a big utilisation compared to some of those other centres. And even though we’ve had a better utilisation, the affordability of the facilities relative to other destinations has been quite comparable if you take it compared to Frankfurt and relative to London, which is extremely reasonable. “The immediate message for me there is Dubai and Abu Dhabi have capacity and the way they have positioned themselves in terms of what they are achieving on a rates basis is quite competitive,” said O’Hanlon. “So we’ve got capacity and we’ve

Deloitte & Touche partner Rob O’Hanlon at Gulfood.

got a reasonable rate — that’s always a recipe for big conferences, so why aren’t they here yet? Why are people not here spending and generating income?” he asked. He continued: “When conference planning is taking place they are looking at accessibility, quality of the infrastructure, quality and availability of hotels, which has clearly been an issue in Dubai and Abu Dhabi [until now]”. The diversification of the market, completion of some infrastructure and world-class airports, specifically in Dubai, means that “that there is a real possibility for Dubai to actually enter

this market in a much more meaningful way than it ever has before,” asserted O’Hanlon. “This we think has got real potential and is really going to be an exciting part of Dubai’s future. Sometimes falls in prices create opportunities and this is one of them,” he said. O’Hanlon cited Oman as an example of the dramatic impact big events (with capacity of 8000 people or more) could have on the hotel sector. “In 2008, we started the year with the GCC conference, which brought in a lot of strong spending guests, then the GCC football tournament, then a number of events linked in around the oil industry that had not previously

been there — suddenly you see the impact and you see the numbers blossom and that is linked in also with some restrictions on supply,” he said. Deloitte senior manager for tourism, hospitality and leisure Tracy Baron continued: “Muscat had a really very good 2008 year and that was because big events that happened in 2008 did not reoccur in 2009. “When you don’t have a constant tourism market, it’s your big corporate events that will really drive your performance in your city and that’s really the key message we wanted to bring up with Muscat; it’s definitely a player on the market but it’s quite heavily affected with events.”

Hotel Conference Performance - Global World Cities – Occupancy YTD December 2009 %

World Cities – RevPAS December 2009 USD 25

60% 50%

40% 15 30% 10 20% 5

10%

0% Abu Dhabi

Dubai

London

Frankfurt

Abu Dhabi

Dubai

London

Frankfurt

Source: The Conference and Productivity Bench Note: Market data converted from Euro to US dollar using a rate of 1 EUR = 1.4 USD

AHIC on hunt for best staff housing RevPAR declines slow down in 2010 The Arabian Hotel Investment Conference (AHIC) has opened nominations for the Best Staff Accommodation Awards, which seek to recognise the Middle Eastern hotel that best houses its employees. Bench Events sponsorship manager Gillian Powell said: “Judges will take into consideration comfort, design, convenience and extent of facilities”. The winner of last year’s Best Staff Accommodation Award was Hyatt for Sahari Village in Ras Al Khor, Dubai. Hyatt was commended for its “resort-style” accommodation, on-site social, sporting and entertainment activities, energy-saving action plans and “city within a city” philosophy. March 2010 • Hotelier Middle East

The independent panel of judges for the 2010 Awards comprises Spectrum Consultants COO Wahid Attalla, Joanne Bowen & Associates Ltd MD Joanne Bowen, Horwath HTL’s Philippe Doizelet, Management Search Executive MD Nina JohnsonBennett, Madison Mayfair MD Peter Malone, Portfolio’s Corinne WinterRousset, Perform Global Pty Ltd executive chairman Keith Yates and Hotelier Middle East editor Louise Oakley. The deadline for nominations is March 18, 2010, with the winners to be announced during AHIC 2010, which is being held at Madinat Jumeirah from May 1-3. To nominate your hotel, visit www.arabianconference.com.

RevPAR across Middle East and Africa hotels decreased 4.1% to US $93.23 in January 2010, but the decline is getting smaller, said STR Global managing director Elizabeth Randell. “Overall, the Middle East/Africa region continues to be one of two regions that still reports declines in RevPAR” said Randell. “It is good to see the decline is getting smaller, from -7% in December to -4% for January compared to the prior year. Therefore, we still expect the region to follow on the recovery path that we set up last month.” There were also declines in the other key performance indicators,

with the region’s occupancy falling 2.3% to 54.8% and ADR decreasing 1.9% to $170.20. The most badly hit markets in the Middle East were Abu Dhabi and Muscat. Occupancy decreased in Abu Dhabi by 27.1% to 56.5% and in Muscat by 21.6% to 53.1%. Muscat led the ADR decreases, falling 25% to $256.73, followed by Abu Dhabi with a 18.3% decrease to $286.80. RevPAR decreased by -41.2% in Muscat to US$136.27 and by -40.5% in Abu Dhabi to US$162.02. Meanwhile, Dubai reported a 6.1% increase in occupancy to 72.1% for January 2010. www.hoteliermiddleeast.com

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NEWS

Jordan hotels under scrutiny A new hotel classification system has been introduced in Jordan which finally recognises quality and service over structural elements. The country’s 331 hotels will be assessed under the new system during 2010 with the aim being to upgrade service standards, according to Minister of Tourism and Antiquities HE Maha Khatib, who disclosed the rationale behind the plan to Hotelier accommodated, such as rooms for disabled guests, secretarial services on request, and guests can enjoy a more luxurious experience, for example by having several dining options and an extensive room service menu with food available 24 hours. Grand Hyatt Amman has five stars.

CLASSIFICATIONS When and why was it deemed necessary to develop a new hotel classification system for Jordan? HE Maha Khatib: The need for a new system was identified as part of the Quality Assurance component of Jordan’s National Tourism Strategy 2004-2010. Tourism has become one of the main income generators for Jordan and therefore, quality assurance was given greater importance. It was necessary to update the previous system in order to upgrade hotel standards to include items demanded by 21st century tourists and meet their dramatically increased expectations. The old hotel classification system was developed in 1993 by the Ministry of Tourism and Antiquities (MoTA) and it focused mainly on the structural element of a hotel and very little on quality and services provided. It also included standards related to fire, health, safety and building codes, which are not the specialty of hotel assessors When the system was revised, it put the customer as the central focus of the hotel operation, and therefore an item or an area would not be considered a standard for classification if it is not seen as beneficial by the guest. What hotel classification systems around the world did you draw inspiration from and why? HE MK: The European system because it is mainly regulated by the government and this is the approach that the steering committee decided to adopt, whereas in the US it is regulated by private companies such as the AAA and Michelin. The system is based on services not facilities; how does it work exactly? HE MK: The hotel classification is March 2010 • Hotelier Middle East

Grand Hyatt Amman has been classified as a five-star hotel under Jordan’s new hotel classification system.

THE BACKEND STRUCTURE OF THE HOTEL IS NOT TAKEN INTO CONSIDERATION, AS LONG AS THE EXPECTED STANDARD OF SERVICE IS PROVIDED designed from the point of view of the guest. It is not the input in terms of investment or effort, but the output in terms of guest satisfaction that is the deciding factor in the choice of standards and the relevancy attributed to them. In this regard, the only physical element determined by the new system is the size of the rooms. The previous system considered many others, such as the size of hallways, swimming pools, and the kitchen. The new system, for example, is not concerned about the size of the kitchen, but instead looks at whether the food service is good and delivered in a timely manner, and the food is of high quality. The backend structure of the hotel is not taken into consideration, as long as the expected standard of service is provided.

What are the main differences between each category? HE MK: In terms of expectations: • One-star is a simple hotel that offers basic minimum standards, for example Bonita Inn. • Two-star is a simple mid-range hotel that offers a few extra services, such as a basic range of toiletries, for example Cameo Hotel. • Three-star is a mid-range hotel where guests can enjoy the convenience of extra services, such as baby cots or ironing equipment. Al Thuraya Hotel has three-stars. • Four-star is a first class hotel that offers a more superior experience for greater comfort, such as hair dryers available in all rooms and service lifts are separate from guest lifts. Geneva Hotel is a four-star property. • Five-star is a luxury hotel where specific requirements of guests are

Existing hotels are currently being assessed; do you think the new system will see more or less hotels rated in higher categories? HE MK: The aim of the classification system is to upgrade services within hotel establishments, and this can be done without significant investments, but rather by improving or adding services. Therefore it is anticipated that hotels will upgrade their services to reach the minimum required to remain in their current categories. How is the roll-out of new classifications being facilitated? HE MK: A customised Information and Communication Technology (ICT) system is being developed for Jordan, which will facilitate quick and easy inspection of hotels, as well as providing hotel owners, investors, and guests with valuable information and a reference tool. The user-end of this system is made up of a website with separate sections for hotels, guests, travel agents and MoTA. The ICT system will offer several advantages to the hotel classification process. Guests will be able to obtain detailed information about the current standards of each hotel in Jordan, up-to-date overviews of all hotels and their classification and communicate directly with MoTA if they have complaints or feedback about a particular establishment. For MoTA, all information will be centralised and easy to access and update. The system will also facilitate communication with hotel owners www.hoteliermiddleeast.com

11 NEWS

Minister of Tourism and Antiquities HE Maha Khatib said an ICT system would facilitate use of the system.

and investors regarding classifications and updates. Classification inspectors will use state-of-the-art handheld devices, which organise inspection schedules and advise on the best and most efficient route. These are also equipped with maps and a GPS system to provide locations of establishments, and hotel mangers can monitor the exact location of the inspector when

they are waiting for a scheduled inspection. During the onsite inspection, inspectors can generate instant reports on the star category of the establishment they are inspecting through the handheld inspection device and instantly synchronize data with the MoTA database to upgrade information and create new inspection schedules. The website also enables hotel managers and owners to conduct an automated self-assessment, which shows the star category they belong to and what is needed to reach the next level. Password protected sections of the database allow hoteliers to verify and report changes in the data on their hotel and order additional hotel signs. Notifications of changes in standards and the formal steps in the classification process are distributed by email or by letter, depending on the preference of the individual hotel. With password access according to their respective authorities, MoTA officials can enter and consult (management) information in the classification database whereever and whenever they want. HME

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CLASSIFICATION STEERING GROUP In 2006 the MoTA formed a steering committee chaired by the MoTA secretary general with the aim of studying, developing and testing a new hotel classification system. The steering committee was made up of the following members. Mohammed Oweisat Director of professions Ministry of Tourism and Antiquities

Rami Sayess Hotel manager Four Seasons Hotel

Previously Hisham Saudi / currently Yassar Al Majali General manager Jordan Hotel Association

Issam Fakher Elddin General manager, Al Qaser Hotel

Abeer Mubaideen Head of hotel, quality control, and monitoring Ministry of Tourism and Antiquities Osama Masoud General manager, Crowne Plaza Amman Zeid Baggili Consultant USAID/ Hotel Classification Specialist (Local) Thamer Al Momani Head of Information Department Ministry of Tourism and Antiquities

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Vatche Yergetian General manager Marriott Amman Previously Ghassan Naser / currently Jaml Dabbas Acting Tourism Division Head ASEZA Dr. Joseph Ruddy Component Leader & Tourism Development Specialist USAID / Jordan Tourism Development Project A representative from the MoTA Hotel Department

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Hotelier Middle East • March 2010

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NEWS

Ibis Al Rigga Dubai opens in March.

No limits to budget brands As Accor opens its eighth Ibis hotel in the Middle East this month, Hotelier debates the growth potential of the economy segment with the experts behind this two-star, limited service brand ANALYSIS ccor Middle East has opened eight Ibis hotels since it launched in the region with the opening of Ibis World Trade Centre back in 2003. The rate of growth is not exceptional, until you consider that four of these eight hotels opened in 2009 in the midst of the economic crisis and that three more are opening during 2010, when most chains are still a long way from celebrating recovery. Accor Middle East managing director Christophe Landais said: “2009 was a turning point in Ibis’ presence in the Middle East, with the opening of four properties representing more than 1000 rooms. We saw the strengthening of Ibis’ presence in Dubai, with the opening of two hotels at Mall of the Emirates and in Al Barsha. In addition to that, Ibis entered

March 2010 • Hotelier Middle East

two new markets in the capital cities of the region — Muscat in Oman and Amman in Jordan”. This year, growth continues with the opening of the 280-room Ibis Al Rigga in Dubai in March followed by properties in Manama, Bahrain and Kuwait “bringing the regional Ibis network to10 hotels and 2500 rooms” said Landais.

it offers owners and investors, said Accor Middle East director of operations Olivier Hick. According to Hick, Ibis is a “crisisproof” brand. “Ibis, being an economic budget brand, structurally everything has to have a great return on the investment for the owners, it has to be an easy manageable hotel in terms of man-

FIRST WE FILL UP THE HOTELS AND THEN WE WORK ON PRICE, CONTRARY TO SOME HOTELS THAT WANT TO KEEP A CERTAIN PRICE RANGE While the demand for limited service hotels has certainly been highlighted by the recession and its impact on the budgets of corporate and leisure travellers alike, the successful rollout of the Ibis brand is attributable also to the securities

ning and staff, it’s a crisis-proof hotel — it proved that if you had a hit like last year it is easier to manage and we don’t need to take dramatic actions like other brands, because we are already operating on the minimum levels for everything,” said Hick.

Ibis Al Barsha, Dubai general manager Philippe Montaubin expanded: “The structure of the economy hotels that we have allows us to sustain much better a crisis because we don’t have the same number of employees, we don’t have the same demand from the guests, therefore not the same expenses — so [the three-, four- and five-star hotels] have to drop their rates but they still have the same overheads; they’re going to drop down but they can only reduce to a certain number”. On average, Ibis rooms rates in Dubai stand at AED 300-320 (US $82-$87) said Montaubin, with the rates displayed clearly at the entrance of each hotel. “There’s transparency, there’s no secrets and it’s tax and service included and what you see is what you pay,” he said. “Ibis DNA is we fill up the hotel first and then talk about the prices.

NEWS

So in terms of conquering markets, we go for corporate, we go for leisure, we go for families, depending on the size of the hotel that you have and the location. First we fill up the hotels and then we work on price, contrary to some hotels that want to keep a certain price range,” added Montaubin. Staffing is an important element in Ibis’s “lean” model, said Bruno Debray, Novotel & Ibis Deira City Centre hotels director. He said that Ibis hotels have approximately 40 staff for every 100 rooms. So while other brands cut back on manpower during 2009, which meant having to cancel additional services such as airport pick up, that was “not something we had to consider” said Debray, as the hotel was neither over-staffed nor had the promise of luxury service to fulfil. And as well as benefitting from a lower head count, added Montaubin, Ibis utilises the ‘Player Programme’, which ensures every staff member has a second skill. “You could be a receptionist and your second skill is as a waitress,” explained Montaubin. This goes further than cross training and enables the hotel to perform well whether it is under crisis conditions or operating at full occupancy, said Montaubin

THE IBIS OFFER WHAT YOU GET: Rooms: 17m² in the Middle East Separate bathroom located in the bedroom with bath and shower Flat screen TV F&b: a restaurant, bar and a 24-hour snack menu Reception/ security: 24 hours Meeting rooms WHAT YOU DON’T GET: Valet service Bell boy VARIES DEPENDING ON LOCATION, CLUSTER HOTELS ETC Swimming pool (e.g. all Ibis hotels in Morocco have pools) Fitness centre Free Wifi in Europe – there are plans to offer it in the Middle East Larger lobbies and public spaces in the Middle East than in Europe

March 2010 • Hotelier Middle East

Ibis Al Rigga Dubai hotel director Laszlo Jaszberenyi and Ibis Al Barsha Dubai general manager Philippe Montaubin met with Hotelier at the Accor headoffice in Dubai.

NO SURPRISES Also key to Ibis’ success is the element of “no surprise” said Hick. “People trust brands. They know Ibis and trust that the hotel will be clean, well managed, secure and they know exactly what they will get — they will get a flat screen in their room, they will get a shower, there is no surprise,” he said. “I think the phrase ‘no surprise’ is very important. I think that’s how we show people they will come with no risks taken and that’s very strong for the brand — it’s the same in Kuwait, Amman, Oman,” said Hick. Some facilities vary (see box out) but when leisure facilities are available — such as in the case of the clustered Novotel and Ibis World Trade Centre properties in Dubai — it is not treated as a value-add, said Hick. “I would say people would be pleased but its not a value add we are offering with the brand. It’s not a regular thing. “All our Ibis in Morocco have their own pool because of the weather but it’s not the case in the Middle East or Europe,” continued Hick. “As a brand in the region we are trying to give the same model and structure of hotels so that people do not find too many services in one and less in another as then we lose the consistency,” he said. Montaubin added: “In order for us to maintain this consistency we have a checklist that every Ibis hotel has

EVEN TODAY AFTER SEVEN YEARS OF BEING IN THE MARKET, WE STILL FACE THE SAME FIRST APPREHENSION OF THE CUSTOMER to comply with — it is audited internally and then audited externally, in addition to mystery guests who come and physically have our full checklist and go through every single point, of which there are close to 700”. The most recent rating for the mystery shopper reports sits at an impressive 93% and “we do not accept lower than 90%” said Hick. As a result, Ibis is classified a twostar brand in most markets, although

in some markets, depending on facilities, it could push to be classed as a three-star. But this is not the aim of the brand, said Hick. “We are talking about a product more than a star rating,” he said. Novotel & Ibis World Trade Centre general manager Thierry Brinte added: “We have got to be careful with the brand standard because a guest in Paris needs to get the same service in New York and Dubai”.

Like all Ibis hotels in the Middle East, the new Ibis Al Rigga, Dubai features a spacious lobby and public areas.

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17 NEWS

Accor director of operations Middle East Olivier Hick.

Ibis Deira City Centre hotels director Bruno Debray.

Ibis & Novotel World Trade Centre GM Thierry Brinte.

FUTURE GROWTH

got the Centro by Rotana, [brands from] Layia, Citymax from Landmark, so there is a growth from the economy sector within the projects under development and I think it’s good in terms of showing the world that the Middle East is maturing.” He added: “In the Middle East because now we have economy brands, Dubai tourism board is able to go and bid for international conferences of big volume (12,00015,000 people) — they can’t all afford to stay in five-star or luxury hotels, they need the range, they need the volume and that’s where economy hotels have a role in the overall economical market”. However, despite being in the region since 2003, there is still some way to go in terms of educating the local market as to the benefits of economy brands, he said. The majority of guests are from GCC countries, but they are pre-

dominately expatriates familiar with the brand elsewhere. Brinte explained: “It was a bit strange when we opened the first Ibis in 2003 because the Middle East did not know what benefits they could get from this hotel. So they learned step by step what they get for this price because the price is important in Ibis and that’s why we have always sought a fair price and to be transparent – there are not so many hotels where the price is written in big letters at the hotel entrance and I think that’s part of the core for Ibis”. For example, guests had to get used to the fact that Ibis only has one room type, although interconnecting room types are available for families. “It’s an interesting product to sell,” commented Montaubin. “Even today after seven years of being in the market, we still face the same first apprehension of the customer, when he comes out of his car he is looking for the bell boy even though we have the trolleys there ready for the guest to do it himself. It is more of a selfservice hotel to some extent. Limited service means that we have associates present 24 hours at the reception, we have food and beverage 24 hours, we have the 15-minute guarantee, the idea is that we have people there to assist the customer for whatever his needs are but practically, the customer helps himself,” he said. Significantly though Ibis Al Rigga hotel director Laszlo Jaszberenyi added: “Only the number of services is limited at Ibis, the quality of the service should be five-star”. HME

Economy brands such as Ibis have “a long life ahead of them”, according to Hick. “I think we are creating somehow a whole destination when people can now travel on the low cost airlines and manage to package the whole thing at a low cost or lower price, because I do not think it is a low cost hotel but affordable accommodation that allows people to come for a package which is very reasonable. This was not the case two or three years ago when you came to Dubai,” asserted Hick. “You see it in the US — you have the motels. It’s [normal] to go to a motel and drive, they don’t question whether to go to five- and four-star even at reasonable prices.” “Our competition in the economy sector is also coming in,” said Montaubin. “There is Holiday Inn, Premier Inn, on a local market you’ve

THE 15-MINUTE PROMISE One of Ibis’ brand standards is the 15-minute promise, said Ibis Al Rigga hotel director Laszlo Jaszberenyi. “The programme means there is a very important Ibis promise to the guest that if something doesn’t work properly in the room or the hotel services, which is the hotel’s responsibility, and we cannot give a solution to the guest to solve the problem within 15 minutes, we pay for his or her room,” he revealed. The solution could be a room-swap if there

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is a complicated engineering issue, for example, or it could be as simple as maids having access to maintenance supplies to enable them to change a lightbulb. Montaubin said: “It is a very serious commitment from every one from top to bottom because it costs money, giving free rooms is not something our management likes very much!” In 2009, Hick estimated that just 15-20 clients had been given a free room night as s result of the promise.

Hotelier Middle East • March 2010

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COMMENT

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Wipe away blurry brands T

he importance of brand purity is something that came to my attention during Hotelier’s interview with The Rezidor Hotel Group president and CEO Kurt Ritter (see page 26-28). Brand purification is an issue Ritter holds dear, following some valuable advice from “an old American”. He said “if you can’t describe it, you can’t sell it”, recalls Ritter. A very good thesis he believes — and as a hotelier known to test hotel exhibitors on the distinctions between their different brands, a theory he has found to be true. “If you have someone on a stand who cannot tell you the differences between their brands, then there is something wrong,” asserts Ritter. No doubt your company has a presence at one or more of the major hotel industry events looming on the horizon — The Gulf Incentive, Business Travel & Meetings Exhibition (GIBTM), Arabian Hotel Investment Conference (AHIC), Arabian Travel Market (ATM), HOTEC and The Hotel Show (see below for dates). With Ritter’s point in mind, how confident are you that everyone

representing your company knows the differences between each of your brands? And if they can’t define your brands, is this down to their lack of knowledge, which can be addressed, or worryingly, to compromises over time that have blurred the boundaries between your brands? What distinguishes an ‘upperupscale’ brand from a ‘deluxe four-star’? Or a “premium economy’ from a ‘mid-range’ hotel? The definitions are important for several audiences — investors, potential staff and consumers — and valuable when both differentiating your own brands and standing out in competitive sets. After all, if hotel brand standards are strictly adhered to, surely you can control the perceptions of these audiences? This is not easy to achieve, but with more brands being introduced — no doubt there will be some new names at the aforementioned shows — hoteliers must be certain each one is distinct and memorable. But as brand purist Ritter admits, “brands are never as pure as you think they are”.

Louise Oakley, editor

louise.oakley@itp.com

While convinced of the purity of Rezidor’s brands today, he continues, “when I say we don’t compromise that’s also a little lie because I’m sure down the line we have compromised somewhere”. “Little lies” aside, the brands — Radisson Blu and Park Inn — are now strong with properties “well worth the name,” says Ritter. This, along with the almost exclusive targeting of emerging markets, has surely played a major role in the growth of Rezidor’s hotels. Would your brands stand up to the “old American’s” tests? HME

DIARY DATES: A ROUND-UP OF INDUSTRY EVENTS HERE AND ABROAD IN THE COMING MONTHS March 29-31, 2010 GIBTM Abu Dhabi, UAE www.gibtm.com March 29-31 Interiors UAE Abu Dhabi, UAE www.interiorsuae.com April 18-21 Cityscape Abu Dhabi Abu Dhabi, UAE www.cityscapeabudhabi.com

May 4-7, 2010 Arabian Travel Market (ATM) Dubai, UAE www.arabiantravelmarket.com

Sheikh Sultan Bin Tahnoon Al Nayhan officially opened GIBTM Exhibition 2009.

April 20-23 FHA2010 Singapore, Asia www.foodnhotelasia.com May 1-3, 2010 Arabian Hotel Investment Conference (AHIC) 2010 Dubai, UAE www.arabianconference.com

May 7-10, 2010 HOTEC Muscat, Oman www.mcleaneventsinternational.com/ events/HotecMiddleEast2010 May 16-19 Global Spa Summit Istanbul, Turkey www.globalspasummit.org May 18-20, 2010 The Hotel Show Dubai, UAE www.thehotelshow.com

Cityscape Dubai 2009

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Hotelier Middle East • March 2010

COMMENT

The truth about spas Viability director Guy Wilkinson strips spas down to the basics with a little help from Spa Solutions director Jo Clare, who urges spa designers to work together with operators to enable profitability units, it is possible that up to 60% of the region’s spas are loss-making,” says Clare. “To get a five-star rating, many hotels just do the minimum — put a sauna, a steam room and a couple of massage rooms in a spare corner, call it a spa and justify it as a loss leader. “But it should never be seen as just an add-on. Anyone who invests in a spa should expect a return — and it costs so little to plan one properly.”

COLUMNIST pas have become an indispensable component of top hotels in recent years. This is true not only in terms of the perceived glamour and sophistication of spas, but more importantly, of compliance with classification authorities across our region, for whom this box must be ticked to merit a five-star badge. Despite this trend, less than half the spas in the Middle East are in fact profitable. That is the assertion of Jo Clare, director of Spa Solutions, a consulting firm founded in Dubai in 2001, whose project portfolio includes spa hotels from Armani to The Address and Marriott to Le Méridien. “Taken as stand-alone business

EXPERT DESIGN As an independent consulting firm, with no affiliations with any product house, equipment suppliers or operators, Spa Solutions has the expertise to advise developers, from feasibility and design right through to management.

TAKEN AS STAND-ALONE BUSINESS UNITS, IT IS POSSIBLE THAT UP TO 60% OF THE REGION’S SPAS ARE LOSS-MAKING According to Clare, creating a profitable spa begins by hiring a specialist. As she says, “you can’t design a spa unless you’ve operated one.” She, as a qualified spa therapist, has done both, but says that hotel owners, operators, architects and

The spa reception at Natural Elements Spa at Le Méridien Dubai is a dedicated and well-thought out space.

March 2010 • Hotelier Middle East

interior design firms alike have often been guilty of building spas without taking such expert advice. This has resulted in a litany of mistakes, which are only now beginning to come under scrutiny from hotel owners and managers, looking to boost revenues in the global recession. For example, many hotel owners do not get a market study done and so are unclear of their target clientele. In Dubai especially, hotel spas tend to concentrate on serving in-house guests, missing out on the valuable disposable income of local residents. Also, different nationalities may need to be accommodated in different ways, affecting how the guest ‘journey’ through the spa is designed. “While

westerners are used to sharing open changing rooms, local national ladies need a private room,” notes Clare. Other design faux pas include locating the treatment rooms, supposedly havens of peace, right next to the noisy locker rooms, or the spa reception

right next to a coffee shop — hardly an ideal private place in which to discuss personal ailments prior to a treatment.

A QUICK FIX? Spa Solutions is frequently called in to fix the problems of ill-conceived spas, even as soon as six months after they open. Interior design firms may have created a wonderful aesthetic space, but failed to take the practical advice of an experienced therapist when it comes to finishes and fabrics. For example, Clare had to replace the beautiful leather doors installed in one spa, after they rapidly deteriorated in the humid, oily conditions. Another designer specified marble floors in the spa’s high-turnover showers, creating dangerously slippery conditions. Above all, what is missing in most cases prior to the design stage is a properly though-out concept for the spa. “You need a clear storyline that specifies the USPs of your spa. From there you can build viable working concepts, guidelines and service solutions, prior to having operational teams in place,” says Clare. Where this approach has not been taken, it may be too expensive to completely redevelop a spa. Nevertheless, significant improvements in guest spa yields can often be achieved simply through the implementation of SOPs, KPIs and benchmarking, both for treatments and retail sales — guidelines which many hotel chains do have for other operating departments, but not spas, according to Clare. However, a far more preferable approach is to plan properly from the outset, to prevent unnecessary and costly design changes that can easily be avoided. HME

Guy Wilkinson is a director of Viability, a hospitality and property consulting firm in Dubai. For more information, e-mail: guy@viability.ae

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How to manage technology Sev Tides Hospitality managing director Mike Scully says technology Seven is iincreasingly perceived as an operational cost, meaning management con contracts must be designed to cover the expense and deliver the solutions compromise business relationships and in turn revenue. 2. In-room management system Simplicity needs to start in the bedroom. Too many times we have stayed in the most luxurious hotels where the stay has been destroyed by complexity of controls of lights, ‘do not disturbs’, curtains etc. Hotels should be encouraged to create a uniform system that can be understood by all; young and old. If this cannot be achieved, stay manual.

THE OWNER’S VIEW s owners we have to look at what we buy and what we lease. We believe that considering the modern technology trends, in many cases it will become prudent to lease our technology. We all know that the medium for transporting info is accelerating at such a pace that what we buy today is not necessarily what will work tomorrow. We only need to look at the HD TVs we have just purchased, shortly to be outdated by the advent of the 3D product, to see that. The ever-increasing trend when it comes to purchasing is that if it depreciates in value you make it an operational cost and lease it, and if it increases in value, then buy it. We have highlighted this point in previous articles where we envisage developers will only look for finance on the actual structure of the building while all other services from MEP to fit-out to full IT packages will be on lease and become operational expenses. This will obviously affect management contracts and it will be prudent for both owner and operator to start making provision for this in management contracts. We need to decide both where we will start with technology in hotels and what level of technology we envisage will be needed in the future. The secret to technology of the future will be its simplicity. For a number of years to come we will still be in the dilemma whereby 50% of the popu-

March 2010 • Hotelier Middle East

Modern telephony should enable guests to converse from any part of their hotel room with any department in the hotel using hands-free technology, with traditional telephones becoming obsolete, says Mike Scully.

WE ARE SEEING A TREND IN MODERN TECHNOLOGY OF VIRTUALISATION, WHICH INVOLVES THE REDISTRIBUTION OF SYSTEMS CAPACITIES DEPENDING ON TIME OF THE DAY AND REQUIREMENTS lation were not brought up with technology and are thus not comfortable with it. CEOs of today are not necessarily tech-savvy and young people are being brought into the technology world using simple, however highly effective systems, such as computer games. We therefore see hotel technology in the short to medium term taking the following path:

end demands such as downloading films could become an added revenue centre. Security over the system will not be an option but a must — systems will be required to both detect threats and then protect against them for both property and guest alike. Breaches in security through our systems will severely

3.Conference systems Video-conferencing will finally become a recognised form of communication, as green initiatives will encourage less flying and travel. We are finding with the likes of Cisco, whose tele-presence is revolutionary, that these systems are so much more effective — and with the increase in band width so much more reliable. Furthermore it could become a substantial revenue earner for hotels. 4.Telephony I envisage the telephone in its present form will not exist for very long and will be integrated into a hands-free touch phone where you can speak from any part of your room or bathroom with equal clarity and individual buttons or voice activation will connect us with whichever depart-

GUEST TECHNOLOGY 1. WiFi The internet must be accessible anywhere, any place, any time; band width has to allow future guests who want to use your system to access their information. Can they download content, watch videos and movies and pay accounts? They will need seamless connectivity at the push of one button and will not expect to pay for the basic forms of internet activity, however, higher

Dull meeting rooms like this will remain empty as hotels embrace video-conferencing in the future.

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TOUGH TALK K

TOUG

March 2010 • Hotelier Middle East

Dull meeting rooms like this will remain empty as hotels embrace video-conferencing in the future.

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TOUGH TALK ment will be required. They will also seamlessly integrate with the Bluetooth of our preferred mobile.

HOTEL SYSTEMS 1.Property Management Systems (PMS) PMS will need to integrate with individual’s handheld devices via the web. Guests will want to see the status of their account, availability of spa facilities, restaurant bookings and room make-up from their phone. Conference organisers will want to see availability of conference rooms on certain dates in order to cut down the amount of time researching availability. 2. Accounting I foresee that centralised accounting practices will become far more prevalent in the future. It is impractical to employ 15 people in the department for each of two or more hotels when 15 in total could run the accounts for all the hotels. This can be taken a step further to payroll, logistics and purchasing.

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Who would have thought this man was in a conference with 50 other people all around the world?

3.Building Management Systems (BMS) With green technology. BMSs are an integral part of hotel functioning and profitability. It is well accepted that together lighting and HVAC account for between 50-60% of the utilities bill. The system needs to integrate all aspects of control to take all of these areas into account

4.Point of Sale (POS) POS and PMS need to be studied in greater depth before an owner is forced to buy packages which supply vast amounts of information, which in many cases will not be used or will only be required at a later date when the property is running at optimum, particularly with new builds. We are seeing a trend in modern technology of virtualisation, which in basic terms involves the redistribution of systems capacities depending on time of the day and requirements. The accounts department uses its system generally at a different time to when the restaurants use theirs. Virtualisation allows for capacities to be distributed according to need and can be extended between systems to involve different properties within a management company. Both vendors and owners along with the operator need to study the best opportunities for virtualisation to substantially decrease the capital or leasing charges that an owner will be required to pay.

Technology is not a standalone silo — it needs people and a process. Systems within technology need to work and be managed; we see for example that employees can spend a large amount of time on social networking sites as opposed to being productive in their work environment. Management needs to respond by creating a process to regulate this. This example stretches right through IT and needs to become far more integrated in the management process and in their responsibilities. This creates the human network — bringing people, processes and technology together. 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 • March 2010

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How to save $50 million The Rezidor Hotel Groupâ&#x20AC;&#x2122;s president and CEO Kurt Ritter divulges his management secrets and tells Louise Oakley how he confronted the economic crisis head-on

March 2010 â&#x20AC;˘ Hotelier Middle East

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CEO INTERVIEW Raised in his parents’ hotel in Interlaken, Switzerland, Kurt Ritter began his career in the hotel industry when most of us were still reciting times tables and learning spellings. He recalls his childhood fondly: “It was marvellous to grow up the way I did. It’s not just the hard work but it’s having a kind of duty when you come home from school — you know what you have to do. I had to do my homework but before that I had my three small duties, like to refill the bar — of course a child can do that. If the mother says there needs to be 10 Coca Cola bottles and there is seven, then you need three; it doesn’t take an Einstein to do it, so I got very simple tasks but a task nonetheless and I think that’s very important for a child.”

levue Palace in Bern as assistant manager. By the age of 29, after several years working with Ramada, he became the youngest general manager in the entire Ramada chain. This was another learning curve, with Ritter admitting that he was probably not ready for that position. Forced to fire a senior chef more than twice his age during his first couple of weeks is something that stays with him even now. “I thought I was very bad initially because it was the first time I did it. When you are young and you come in and you have to tell a man of 60 to go, that was a hard thing for me.” Although Ritter says he never dreamed specifically of being general manager, let alone a CEO, his progression through the ranks was steady, with him being appointed

I DID WHAT I WAS BORN INTO AND THE REST CAME BY ITSELF; I NEVER HAD BIG AMBITIONS Referring to himself as “like an Italian boy” in his regular references to his mother, Ritter learned a lot from her hands-on hotel management approach, even if he did not realise it at the time, he jokes. First and foremost, she taught him a love of service. “My mother always said she brought that commercial service side to me in the way that she says if you wait and you sing to it — sing at the table — then you get a tip. And of course, if an eight year old boy comes to you with the soup shaking, probably dropping half of it, and sang a song — of course I got a tip! She said ‘don’t do it for free but do it nicely’. It sounds stupid now in hindsight but that was a good lesson,” says Ritter. It is this humble work ethic instilled in Ritter at a young age that largely informs his approach to the business today. By the age of 16, he says he knew he was a hotelier — looking for any other job wasn’t an option. “I knew how to cook, how to check in, how to clean toilets, I felt it was very natural for me that I did what I was born into and the rest came by itself. I never had big ambitions.” Modesty aside, Ritter went on to graduate from the prestigious Ecole hôtelière de Lausanne and his first position took him to the Hotel Belwww.hoteliermiddleeast.com

in 1989 CEO of SAS International Hotels (SIH) — which several evolutions later became The Rezidor Hotel Group we know today following the IPO lead by Ritter in 2006. That Rezidor’s growth has been driven directly by Ritter’s vision is clear — the company celebrates its 50th anniversary this year but really, its development as a hotel business, as opposed to an airline company with a few hotels, has only taken place over the last 15 years. “When I took the company over we were a handful of hotels, about 20, and now we have nearly 400. We have 396 hotels and since we open one a week more or less, we will be there rather soon,” says Ritter. Yet he is unphased by this growth, seeing it as something that has evolved out of great opportunities and the success of the company’s brands, rather than something he has strived to achieve for its own sake. Rezidor has five brands but only two, Radisson Blu and Park Inn, are active in the Middle East, with the third — the hotly anticipated Missoni brand in Kuwait — to launch this summer. Of the remaining brands — which are held on franchise from Carlson Hotels — there are plans for luxury

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Regent hotels in Abu Dhabi and Doha. Country Inns and Suites, meanwhile, “remains on the shelf” admits Ritter.

MANAGING CRISIS Ritter’s intuitive work philosophy was not rocked too dramatically by the economic crisis, first felt in 2008. In fact, he took a very realistic approach — the company had to save money, no question about it. So even before the crisis really hit revPAR, he started a project called H4T — Hedging for Turbulence. “In October 2008, we said we wanted to

save EUR 20 million (US $27 million) on the operational costs. And then suddenly in November or December we had a negative revPAR growth of about 5%, so before that came we already had the EUR 20 million as a plan and then in January/February 2010, we added another EUR 10 million ($13.7 million). “We wanted on an annualised basis to reduce our costs by EUR 30 million ($41 million) and we have achieved actually EUR 36 million ($49.2 million), so after the Q4, 2009 announcement in February we had quite good feedback from analysts, banks and

RITTER ON THE FUTURE On Missoni Hotel “It’s not a brand we would give up, whether there are bad times or good times, we will push through because it’s really a very timely brand, people love it.”

and my horses. Of course I will remain in the industry somehow on a board or something. I couldn’t imagine just to go and sit somewhere in the woods and look after the horses.”

On the economy segment “I think if we had time I would like to be in the two-star business because that’s a very lucrative business, especially in areas like the Middle East. It’s coming. It’s not yet really implemented in the Middle East; its not as it is in Europe. They still add ballrooms and swimming pools because somehow people expect it here in a hotel but the time will come when really price will matter and guests will say I don’t want to pay for that.” On being the biggest hotel chain in Europe “I don’t know. We don’t really have the ambition. If it happens it happens but we don’t grow just for the sake of growing, it has to be quality growth.”

On running a public company “If you do a step to the left, rightly so they ask you why you went to the left. And I think it takes much more time to run a public listed company because you have all these compliance things and reports, so it is more difficult. But on the other hand it also gives you more opportunities. Now we are core business, we have investors so if I have a good idea, which I haven’t had yet, I can go to the investors and say look, I want to buy a company if I have a good story. We were listed in 2006 and since late 2007 we have had the credit crunch, so it’s not exactly the time to make big jumps but I’m sure if we need money in the future we can get it more easily today than we could before.”

On catching up with Hilton “We are the number two in Europe behind Hilton and have been for the last four years and the gap is closing. And then we have the biggest pipeline, now I sound as if I am bragging but they are facts. We have the biggest pipeline with Radisson and we have the biggest pipeline with Park Inn.”

On targeting emerging markets We shifted almost exclusively into the emerging markets two years ago. So where we really look at is Africa and CIS. We go into all the CIS countries and the main cities — in Russia alone there are 50 cities we have targeted with more than 400,000 inhabitants.

On introducing more brands “I don’t think so under my time, I want to consolidate what we have, I think we have enough on the plate. Out of the five, we really have two active brands that are Radisson and Park Inn. We have plenty.”

On the next 50 years I’m not worrying about that! It sounds good when you say we are 50 years old but we are really 15 years old, because it’s been 15 years since the growth has taken off. I do not have a single doubt that we are doing anything wrong by growing so fast, I think it’s the right thing to do. These superlatives, whether we are first or this or that; we will just try to keep this position.”

On retirement “Probably one day I would aspire to be a happy retired person looking after my wife

investors — they were very positively surprised with the result we came out with,” says Ritter. So how did they achieve it? “Just by working smarter, saving,” he says. “It’s good, I don’t want to sound like a

ever did and the result was almost one point higher — 85.8 out of 100. “I think that’s a remarkable result, after a year of downturn and I would say we rather successfully went through the year, did the right things

I DO NOT HAVE A SINGLE DOUBT THAT WE ARE DOING ANYTHING WRONG BY GROWING SO FAST; I THINK IT’S THE RIGHT THING TO DO masochist and say it is good to have a downturn, but I would go as far as to say that it is there, so you might as well do something with it and that is certainly a learning curve because when the times are good you don’t turn the pennies around. “We have saved at least 10% in the head office while we are growing. It seems a little bit in the wrong direction you might think but it works very well, nobody is over stretched.” This is reflected by Rezidor’s annual ‘climate analysis’ — a measure of the mood of the company’s 30,000 people. Ritter says 25,000 staff answered the last research and that they “had the best result in history”. “Of course, to save EUR 36 million, we had to let people go, people had to work harder, be more flexible, so we asked more from the staff than we

and everyone was happy,” says Ritter, again modestly, making the feat sound almost easy. Proving the analysts wrong was something he relished, however. “In the beginning the analysts said we were too ambitious, we would never get EUR 30 million — that’s too much for the size of the company but we did it and that means it’s here to stay — so if times get better you have more profits because we will not let go of that threshold we have established now,” asserts Ritter. “If we go on by growing between 30 and 50 hotels a year we will be very happy.” With the benchmark set, as well as more than 22,000 rooms in the pipeline — 90% of which are fee-based reducing the risk to the company — perhaps Ritter is a little more ambitious than he realises. HME

Ritter: aims to continue growing Rezidor by 30 to 50 hotels a year, while maintaining the cost savings so far.

March 2010 • Hotelier Middle East

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The catering conundrum Dubai’s hotel catering and conference specialists explain how their roles are evolving into full-service events management positions and debate the issues and opportunities this poses ROUNDTABLE Why should a client choose your hotel for their conference or event? Lama Semaan: We are a complex so we have Westin and Le Méridien. We have two products in one; you can access facilities in both hotels. We have greenery and a really large spread of beach – the largest private beach so far. We have a lot of space outside; we can have up to 3000 people or more depending on whether you want it as one section. What we do is a bit different from other hotels as we have an activities department. We do team building activities in house, it’s really good for incentive trips. We have a lot of facilities, from an Italian restaurant to Asian cuisine to international to a pizzeria, and we have the golf carts going around the beach with beverages — you have luxury coming to you. And it’s quite important whether on a business or leisure trip March 2010 • Hotelier Middle East

to have the possibility to relax and enjoy your time. Russell Nazareth: The property was the first five-star hotel in Dubai when it opened on March 15, 1975 — this March is the 25th anniversary. The building is almost a heritage site. Most of the meeting rooms have daylight and stunning views of the creek and now Burj Khalifa. We have two major ballrooms, eight more small meeting rooms and free internet in all meeting rooms and guest rooms. Our main USP in terms of banqueting is we have 13 restaurants, three bars and a dhow, which is all done by Radisson, plus Chef Uwe Micheel, president of Emirates Culinary Guild. In outdoor catering we are quite famous — we’ve done massive events, such as the Phil Collins concert with 18,000 people in attendance at the Dubai Autodrome. Being a very old property people know us and they come to us on recommendations. We deal with a lot of

event management companies — do one event and they swear by us. Then we are the official caterers for Tecom, which gives us almost AED 3.4 million to AED 4 million (US $ 0.9 to $1 million) a year in business from them. We do lots of corporates as well; it’s very diverse. Suresh Mathews: We renovated our banquet hall in 2008; we have got 11 banquet spaces which can accommodate from 15 to 600 people. We invested a lot of money in the audiovisual sector keeping in mind the meetings and the conferences. We have the LCD projector mounted on the ceiling itself and all the rooms are equipped with ceiling speakers so this means we can take our set up much nearer to the stage — we saved a lot of space and can accommodate more people. We also do outside catering, including a dhow cruise every day on the creek, and are the official caterers for Dubai Autodrome with Courtyard Marriott.

We have done events for1000 people during Dubai Shopping Festival and we do outdoor catering at individual villas — a lot currently at The Palm, Jumeirah. Corinna Erken: Raffles is one of the most beautiful properties I’ve worked in — that’s the advantage. We have one of the most beautiful ballrooms, it caters for maximum 500 people, and on the same floor we have nine meeting rooms, the majority with daylight. The ballroom is decorated in very neutral colours, which is rare in Dubai because most of them are very highly themed. We sit in the heart of the city but we have a hectare of outside space — the botanical garden. We are just expanding on that and trying to elaborate on it to make it a bit more attractive — we’d like to attract incentive groups as well. The city is slightly more lower priced than the beach so if customers are looking for outside activities we can cater for them as well. www.hoteliermiddleeast.com

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We do have a lot of repeat corporate business, we are very close to Dubai Healthcare City so we have a lot of clients from there. When we quote for groups our rooms are the largest in the city – we have got 70m² for our standard rooms — we also have wireless for the guests available and I think that’s very much appreciated because other properties charge AED 120 ($33); ours is free. On top of that we’ve got beautiful restaurants. On the 17th floor we have our Chinese restaurant the Noble House, which has won loads of awards and has a great outdoor terrace on the 17th floor. And then we are just redoing the 18th and 19th floors, which used to be China Moon Champagne Bar and New Asia bar — it’s been outsourced now to a club operator [Crystal group from Beirut] and it’s going to reopen with a bang and be really nice. We’ve got the 17th 18th and 19th floors in the tip of the pyramid, which is all glass. Noble House is so successful that we’re going to expand it and what was Asiana is going to become more of a lounge to blend in with the concept and to utilise the terraces more. We haven’t utilised them really. We’ve realised that everybody goes up there and says ‘wow’ because

IF A CLIENT REQUESTS ONLY FIVE DISHES FOR A BUFFET, I HAVE TO SAY NO — IT’S NOT MY STANDARD Russell Nazareth Conference & banquet manager Radisson Blu Hotel, Dubai Deira Creek

the views are just stunning. You can go and have your drink on the 17th floor, your dinner and then you can go up to the club. It’s going to be a great concept. We’ve got one event that will be a fashion show in the ballroom and then we’ve got the after party upstairs, so it’s the kind of business we want to attract as Raffles. We’ve got suites as well where we do smaller product launches for luxury brands and that’s the side of business we do.

You all have a vast catering offer, but price is currently the main concern for consumers. How has this trend affected your business? LS: Clients have become savvier, they are actually playing hotels against each other. And they are a lot more price sensitive. Customers that didn’t care before about the rate now have a certain budget and they want fivestar luxury hotels to go within that budget, which is quite challenging.

GETTING TO KNOW YOU: HOTELIER’S EXPERT PANEL Suresh Mathews Catering operations manager Renaissance Dubai Hotel Suresh Mathews began his career in India and has been with Marriott for 10 years. Prior to moving to Dubai he was on the pre-opening team at Renaissance Mumbai. He has recently been promoted to the role of catering operations manager from banquets manager.

Corinna Erken Director of conferences and events Raffles Dubai Corinna Erken joined Raffles in November 2009 having previously worked at Atlantis The Palm and Madinat Jumeirah, where she worked for four years after the pre-opening. Prior to entering the hotel sector, Erken started her career on the client side with a conference agency in Germany.

Lama Semaan Director of catering and sales events Mina Seyahi Complex, Dubai Lama Semaan says she started in the F&B industry as a kid, working her way up from “busboy position”. She started her career in the catering industry and then previous hotel roles include Al Murooj Rotana in Dubai and W Doha in Qatar, aan joined Mina Se ahi at where she was director of conventions. Semaan Seyahi the end of 2009 and says the Starwood events department is more of a convention /MICE department, dealing with groups as well as events.

Russell Nazareth Conference & banquet manager Radisson Blu Hotel, Dubai Deira Creek Describing himself as “hardcore banqueting”, Russell Nazareth started his career with the Hyatt Regency in Delhi, where one of his roles was as DJ. He has since worked for a catering company in Oman, Carnival Cruises in Miami and InterContinental in Abu Dhabi. From here, he moved to InterContinental in Duabi remaining with the property when it was taken over by Radisson.

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They make us compete against each other a lot and that’s forcing us to lower our rates slowly, slowly until it becomes impossible. CE: This is why I feel it’s important for us to understand what each other is doing, yes 2009 was very challenging because everybody was holding back and it all became last minute, but I feel there is definitely a pick up. People still come with the menus and say they only have a budget of AED 150 ($41) but ours start from AED 250 ($68) and they’ll say ‘but look this is what the Marriott is doing for us’

— they compare apples with pears. They compare city with beach, and Deira with Jebel Ali. SM: We have a starting range for our menu at AED 150 ($41), we’re not a luxury hotel. But now before we send an offer to a client we make sure we ask them what their budget is. Otherwise you send out your menu for AED 150 ($41) and then the guest rings back and says ‘can you give me this for AED 120 ($33)’, which is really very difficult for us. Food and beverage is a sector where there is a cost involvement, it’s not like the rooms division where you can decrease your price based on demand. Yes we can do a tailor-made menu for clients around their price range, [although we say no to business below AED 100 ($27)] so if they have a price range of AED 130135 ($35-37), we can work with it.

Suresh Mathews Catering operations manager Renaissance Dubai Hotel

RN: Being a five-star hotel you can’t serve a buffet with three dishes, it doesn’t work. There could be clients coming to that function who want to book functions with you — they don’t know that the client’s budget for that particular event was this much and we served it. If a client requests only five dishes for a buffet, I have to say no — it’s not my standard. CE: That’s a very important point because we don’t want to compromise on the standards. A client might say they can get the mutton for you directly [but it’s not an option]. It’s not only the food quality and preparation that’s different, it’s whether you cater in a mass chaffing dish or smaller portions — there’s a reason why a client will come to you.

So what steps have you taken to offer better value to clients while maintaining quality standards? LS: The enquire stage has changed a lot; in the past it was a compressed market — take it or leave it, end of the discussion. Now the enquiry stage is more attentive and tailor-made to that customer. You have to actually constantly search for added value and new things to offer the guests.

THE EVENTS TEAM IS ALWAYS A FLUID THING — YOU’RE THE ODD ONE OUT

CE: I think it is as you said — the attentive service. Even though the market is price-conscious it’s very servicesensitive as well and they do appreciate the time taken to actually pick up the phone to speak to them and meet them. Before you used to churn out proposals and now the clients do appreciate the service – if there is an AED 10/20 ($3/5) difference they will come to you. I had a client recently that was very impressed with our trials — he hadn’t had a menu tasting at other properties. It’s little things you can do to maintain the price. It’s easy to drop the price as you can get business but it just destroys everything you have worked for.

Corinna Erken Director of conferences and events Raffles Dubai

LS: At the moment your guests come to you as an events management com-

CE: I think you’re right, you have to find out what the client wants because there is a lot more flexibility even in the hotels perceived as being very expensive. There’s a lot you can do now for the client first — there’s no point haggling over a menu.

March 2010 • Hotelier Middle East

NOW BEFORE WE SEND AN OFFER TO A CLIENT WE MAKE SURE WE ASK THEM WHAT THEIR BUDGET IS

LS: You have to keep your image.

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pany as well; you are not just a hotel. You have to do a theme for them and outsource things for them. CE: Yes, you have to get entertainment for them, flowers for them etc. Would you agree the latest trend is for hotels to adopt an events management role? CE: Yes it cuts the margins for them because if you use an events company there is going to be a fee or they are going to mark up the prices. They do have the expertise and we do really like working with events management companies and we have very close relationships with wedding planers for example — this is something we could not possibly deliver because social events are very time intensive. There’s definitely a tendency for people to try to cut out as much as they can and try to source everything through the hotel. We are organising dhow cruises, buses and entertainment. It’s not what we used to do five years ago.

LS: Actually it’s the entire theme they want — they come to you and ask ‘what should we do, we want something different’. At the moment we have actually restructured our department to fit that because it is getting too time consuming that it is simply not working, so we have split the department into the selling part and the planning part. We sell in the beginning and we create the theme with the guests and move from there to the planner who executes all that and fine tunes the rest of the details. Where does your team fit into the hotel management structure? CE: The events team is always a fluid thing, you’re always the odd one out. You’re kind of F&B, you’re kind of sales, you’re kind of rooms. My department is under sales whereas the operation itself is done under F&B. It’s always a challenge because I’ve reported to everybody in previous roles, from EAM F&B to vice presidents of sales.

AT THE MOMENT YOUR GUESTS COME TO YOU AS AN EVENTS MANAGEMENT COMPANY AS WELL; YOU ARE NOT JUST A HOTEL Lama Semaan Director of catering and sales events Mina Seyahi Complex, Dubai

I have good experience with doing the sales and the events separately but you always have the danger of the cut-off at hand over, you cannot possibly hand it right over. Social functions you have to do from start to

The catering and conference directors discuss the need for regular communication between hotels in order to manage clients playing properties against each other.

BUSINESS BREAKDOWN: IN-HOUSE VS OUTSIDE CATERING Renaissance Dubai “Our breakdown for revenue is 30% outdoor catering and 70% is the indoor functions,” says Suresh Mathews. Raffles Dubai “We do outside catering on occasions but we don’t have the dedicated equipment so that makes us naturally more expensive because we have to hire sewer trucks, additional equipment. For us, because we are more a boutique hotel, we like to do it but we can only do it if it’s something worthwhile for us so we’re not equipped for it really,” says Corinna Erken.

March 2010 • Hotelier Middle East

Radisson Blu Hotel, Dubai Deira Creek “It’s actually the opposite to Renaissance, 70% is outdoor and 30% is indoor. We have a couple of challenges being in that part of town but we go out to the people,” says Russell Nazareth. Mina Seyahi Complex “At the moment the outdoor events are really the events that have a slightly lower outdoor budget than ours. We do 200-300 people, we can do more but it’s just actually the price is higher for being the five-star luxury. There is nothing that says that we can’t — it’s always a possibility,” says Lama Semaan.

finish. Groups and corporates have no problem with it, they are used to it — it’s a different sort of business. Ideally yes, you would have one person from start to finish but you wouldn’t have the time, you would have to have a massive team. If you are on the floor when the actual event is there you don’t have time to answer the emails the client has sent you for the next function. SM: We do have an event booking centre (EBC) — their job is to finalise the contract, the rates, everything and that file is handed over to a department called event management, they call up the client, meet with them, discuss the menu, discuss the set up, and up sell if possible. And then event management hands over the function sheet to the operation team. So it is a very good system that Marriott has. It is much easier for operations when the event management seals the deal with the client. How do you source casual staff to help run your events? LS That’s another problem actually that we have. The quality [of casual staff] is really bad. RN: It’s really bad and it’s really surprising because there is nothing much happening now. CE: It’s gone really downhill. There is a handful of agencies that you can really use, but there is a certain supply that they have. We try to get the www.hoteliermiddleeast.com

Customer Experience Edge Program™ As many as 80 percent of customers who leave one company for another say they were satisﬁed with the company they left,* proving satisfaction doesn’t always translate to loyalty. *(Reichheld, Frederick. Learning from Customer Defections. Harvard Business Review. March 1, 1996) Signature Worldwide newest solution, Customer Experience Edge™ (CEE), closes that critical gap between customer satisfaction and customer loyalty by implementing an organization-wide approach to customer experience. The ﬁrst program of its kind in the hospitality industry, Customer Experience Edge™ (CEE) uses a cross-functional training program, designed for the customer perspective

Russell Nazareth and Corinna Erken debate the challenge of sourcing casual staff for conferences and events.

regular casuals but they don’t come trained, they don’t know the standards — even the grooming standards and holding a plate straight can be a challenge LS: And when you’re doing fine dining, a set menu is sort of a choreography, you just go in at the same time. It’s sort of a design in the ballroom and that’s pretty difficult. Agencies are just getting people who have no experience in and people who are in desperate need of money and taking advantage of them. We pay AED 150 ($41) for a shift of eight hours plus one [for a break]. RN: We pay AED 10 ($3) per hour. I heard other hotels are paying AED 15 ($4) an hour. LS: We actually try to outsource for fine dining so it is more expensive.

which helps employees create legendary customer experiences at every encounter

RN: With a banquet operation team on a daily basis we require about five casuals who are trained to our standards, but on the day of an event you might require 45 and that is when they send you all the people that don’t have a clue what is happening in the hotel. So it’s very difficult when you need them, there is no ample time to train them on how to hold a tray so it is a challenge. No company right now is ready to supply you on an oncall basis. Everybody wants to sign a contract which is more challenging —they want a monthly contract for say AED 2600 ($708), which you can’t do because your business is not supporting that.

with guests or “moments of truth”.

CE: The lead times are so short that a month ahead if you’re lucky then you know what business you have. HME What are your views on this issue? Send them to: louise.oakley@itp.com

Middle East, the CEE Program is picking up momentum with interest from many hotels

It offers customised training for employees at every level, focused on speciﬁc experiences, from the moment the guest reserves a room until their departure; such as the Arrival Experience, the Dining Experiences, the Spa Experience and others. CEE demonstrates how even the smallest contribution to a service provided to a guest, affects their overall experience. For this reason, all training is multi-departmental and enhances interaction between the staff that contributes to each guest experience. Training is then reinforced with mystery shops over the phone and on-site, coaching and additional instruction over time. From assessment to implementation, the typical program takes at least one year to complete. “Customer experience is an industry buzz phrase, but no one has been providing a solution that offers a true tailored, organization-wide approach,” said Steve Wolever, Signature President and CEO. In the

and one hotel, La Cigale in Doha-Qatar are already completing one-year of the program. According to Mr. Harris Makriyiannis the General Manager of Signature MENA, “The CEE has helped and constantly coaches all employees on how to take

TEAM TALK Raffles Dubai has six people on the events management sales side and two proactive sales people, plus Corinna Erken and then operations. Mina Seyahi Complex operates slightly differently, with proactive people in the sales department. It’s a sub department of sales including seven people from the in-house selling and the in-house planning teams, excluding the banquet operation. At Radisson Blu Hotel, Dubai Deira Creek the department falls under F&B with four people in banquets and current recruitment for two more. The team works closely with sales especially when it comes to groups.

ownership of their actions and how their actions affect customer experiences. This was also put into test when another company mystery shopped various hotels in Doha and La Cigale was overall ﬁrst with a big difference.” The CEE is offered by Signature MENA who are the ofﬁcial licensee of Signature Worldwide for the Middle East, North Africa and Cyprus. 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, contact us at: Tel: Limassol - Cyprus Ofﬁces +357 25 814 210

At Renaissance Dubai the banqueting function comes under events management and there are four people in the Event Booking Centre who seal the deal and hand over the file to events management.

www.hoteliermiddleeast.com

Tel: Dubai -UAE Ofﬁce + 971 4 434 7275-6 E-mail:

info@signatureholdingscy.com

Website:

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Hotelier Middle East • March 2010

PEOPLE

Introduces Industry’s First Comprehensive

37 SUPPLIER SURVEY

Profit

s t c a r t n o c Unpaid M ounting

Turnover

c i m o n o c E tu rn down

s l e t o h t Bes

Job cuts

de bt Opportunities

s e s s o n e v L e g in Break Quality Chasing p ayments

Tedious t e n d e ri ng s e g n e Chall

s t e g d u b s t e k r a m Slashed g Emergin

s l e t o h t s Wor

SUPPLIERS

SPEAK OUT Find out what the region’s suppliers really think of your hotel in the first-ever Hotelier Middle East Supplier Survey www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

SUPPLIER SURVEY

RESEARCH he Hotelier Middle East Supplier Survey is the first-ever report into the region’s hotel industry from the hotel suppliers perspective. Carried out via HotelierMiddleEast.com and by email to a supplier database, the survey targeted companies supplying a vast range of hotel needs – from food and beverage (F&B) to design to technology. In total, 66 respondents completed the survey during the month of February, 2010. Just over half (51.4%) of respondents supplied products or services in the F&B, kitchen equipment and restaurant equipment sectors. Of the rest, 19.6% supplied the recreation, pools and spa sectors; 10% were involved in architecture, design and interior fit-out; and 9.1% supplied the housekeeping department. Each company was allowed to select up to three sectors and many

said they offered a range of products, such as soft furnishings and amenities, lighting and design, or even reservations and laundry. The majority of the respondents (63.6%) said their business was located in the UAE. There were also respondents with companies based in Germany (four), Lebanon (two), UK (four), US (three), Western Europe (two) and one each in Italy, Spain, France and Turkey, plus one ‘other’ location. All of the 66 suppliers said they did business with hotels in the Middle East and North Africa region. As expected, the vast majority (92.4%) did business in the UAE. The most popular countries for doing business after the UAE were Qatar, Oman, Kingdom of Saudi Arabia, Bahrain and Kuwait. Some suppliers said they had secured business in countries beyond the GCC, such as Jordan (45.5%), Egypt (43.9%) and Lebanon (39.4%). Emerging markets appeared to be Algeria, Iran, Iraq, Tunisia and

LESS THAN HALF OF THE SUPPLIERS SURVEYED THINK THAT HOTELS IN THE MIDDLE EAST ARE IMPROVING THEIR SERVICES Yemen, with between 15% and 22% of respondents saying that they did business in these countries. And almost two thirds of the sample (63.3%) said that more than 50% of their business came from hotels. For 12.1% of respondents, 100% of their business was in partnership with the hotel sector. With the sample analysed, read on to find out what the suppliers had to say about their financial performance, redundancies and recruitment, industry trends, business challenges — and your hotel company.

FINANCIAL PERFORMANCE In order to assess the impact of the

economic downturn on companies’ financial performance, Hotelier asked suppliers to reveal their business’ annual turnover and net profit for both 2008 and 2009 within selected brackets. More than half of the sample answered the questions regarding turnover (40 respondents) and half (33 respondents) answered the questions regarding profit. The results were positive; 84.4% of suppliers reported making a profit in 2008 and 87.8% of respondents made a profit in 2009. The median profit in both years was in the bracket US $1 million to $5 million.

WHAT IS THE BIGGEST CHALLENGE FACING YOUR BUSINESS AS A RESULT OF THE ECONOMIC DOWNTURN? (N=48) 50 Response Percent

Response Count

14.6%

2.1%

8.3%

22.9%

41.7%

10.4%

Answered Question

41.7% 40

22.9% 20

14.6% 10.4%

8.3%

2.1% 0% 0 Increased competition March 2010 • Hotelier Middle East

Reduced workforce

Cost of materials

Outstanding Outstanding Slowdown debts you payments you of hotel are owed need to make construction

Market saturation www.hoteliermiddleeast.com

INDUSTRY OPINIONS The Hotelier Middle East Supplier Survey gauged suppliers’ views of hotel operations in the region — and found that the responses were far from positive. The suppliers were asked to agree or disagree with a variety of statements on the state of the industry and 48 answered this question. Of these, 75% said they “strongly agreed” or “agreed” that “reduced budgets mean hotels are scrimping on quality”. Only 2.1% “strongly disagreed” with this statement.

THE NUMBERS

Abu Dhabi

Doha

75%

Of respondents said they “strongly agreed” or “agreed” that “reduced budgets mean hotels are scrimping on quality”. And less than half (45.8%) said they “strongly agreed” or “agreed” that “hotels in the Middle East are improving their services”. Even more challenging, however, is that not only do the suppliers face issues when dealing with hotels, but 90% said they “strongly agreed” or “agreed” with the statement that “suppliers are undercutting each other to get the deals”.

BOOM TIME Thirty-nine of the respondents to the Hotelier Middle East Supplier Survey answered the question ‘What city in the Middle East do you think we will see the next hotel boom in?’. The most popular responses were Abu Dhabi and Doha/Qatar. Only two respondents said Dubai and one said Beirut.

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Hotelier Middle East • March 2010

SUPPLIER SURVEY

Only one company reported a loss in 2008 and another company reported a loss in 2009. Three companies broke even in each of 2008 and 2009. In 2010, more than three quarters of (77.4% of 53) respondents expect annual turnover to exceed their 2009 turnover and the same number expect net profit to go up as well. However, 7.5% predict less net profit in 2010 than in 2009.

SUPPLIER SURVEY

THE NUMBERS

MONEY MATTERS Putting the pressure on the hotels even more, almost 80% of respondents “strongly agreed” or “agreed” that “it is taking longer than ever to receive payment from hotels for suppliers services”. For 22.9% of respondents, outstanding debts owed to their company was the biggest challenge facing their business as a result of the economic downturn. In total, 70.4% of respondents (out of a sample of 34) said they were owned money from hotel companies that have not yet paid for services rendered. The fees varied dramatically but for 8.8% of respondents, it exceeded US $1 million. For 35.2% of companies, they were owed in excess of $100,000. So, how confident are the suppliers of being paid this money? Fortunately, the majority do expect to receive payment.

70.4% Of suppliers said they were owed money from hotel companies.

Three quarters (75.8%) said they believed they would “definitely” get the payment or that they were “very confident” of receiving payment. Of the remainder, 15.2% said they thought they “might receive payment”, 3% said they were “not very confident of receiving payment”, and 6.1% said they “do not expect to receive payment”.

If they do not receive outstanding payments, 13.9% of 36 respondents said that they faced the risk of having to close their company.

STAFF SIZE Despite the broad geographical stretch of the 66 supplier companies that responded to the survey, hotel suppliers tend to operate as small to mediumsized businesses, according to the sample. Almost two thirds (62.1%) of the respondents said there were less than 50 people in their company, with one fifth (19.7%) of businesses having five members of staff or less.

DID YOU MAKE REDUNDANCIES IN 2009? (N=48) 50

45.8%

Only six of the 66 respondents reported head counts of 1000-plus. The survey found that hotel suppliers, just like some hotel operators, had to make redundancies in 2009. In total, 41.7% of companies made some redundancies in 2009. A further 12.5% reported a recruitment freeze and 45.8% said they did not have to make any redundancies. Of the 48 suppliers that responded to the question ‘do you plan to recruit in 2010’ the results were positive, with 77.1% of companies saying they did intend to recruit.

THE NUMBERS

13.9% Of respondents face the risk of having to close their company if they do not receive payments owed to them by hotels.

20.8% 20

14.6% 12.5% 10

6.3%

0 Yes a significant percentage March 2010 • Hotelier Middle East

Yes, some

Yes, but minimal

None, but we had a recruitment freeze

None

Response Percent

Response Count

6.3%

14.6%

20.8%

12.5%

45.8%

Answered Question

www.hoteliermiddleeast.com

Dubai 225x300.indd 1

25-02-2010 11:17:31

SUPPLIER SURVEY

HOTEL PREFERENCES Just as Hotelier asks general managers which hotel companies they would most and least like to work with in the annual Hotelier Middle East GM Survey, it was only fair for suppliers to have their say on the same topic. Suppliers were asked to select up to three hotel companies they would least like to work with based on prior experience or reputation, and also asked which companies they would most like to work with. The full results are displayed on these pages. The companies that suppliers said they would least like to work with were very varied. The company with the highest number of votes was Nakheel Hotels, with 30.2% of respondents

saying they would not like to work with the firm. Companies also receiving nominations were Banyan Tree Hotels & Resorts, Dusit International, Habtoor Hotels, Jumeirah Group and Starwood Hotels and Resorts. Reasons cited for not wanting to work with hotel companies varied. For some, it was because they were seen as too difficult to access because of pre-existing supplier relationships. For others, the suppliers cited “low budgets”, “delayed payments”, “choices made for the wrong reasons or kickbacks to consultants”, “no scale”, “having to chase payments” and an “unprofessional” manner. On the other hand, the hotel firms that suppliers were the most keen to work with were Aldar Hotels and

Hospitality and Jumeirah Group. Also popular were Accor, Hyatt, Marriott, Mövenpick Hotels and Resorts, Rotana, Starwood and The Address Hotels and Resorts. This reflects a split between large multi-nationals, home-grown companies and very new brands. Suppliers were attracted to their preferred companies for a variety of reasons. For several, it was simply because these companies had “more projects”, that they had been working with them worldwide, or conversely, that they had not yet worked with them and wanted to! Others cited “good market standing and reputation”, “payment guarantee”, “no compromise on inferior products to save costs”, and the fact they were “strong new hotel chains

with capital that wish to grow” as their reasons for wanting to do business with these companies.

FUTURE OPPORTUNITIES Although the hotel market in the Middle East has showed signs of diversification recently, as a result in part due to the economic crisis, the majority of suppliers responding to the Hotelier Middle East Supplier Survey identified the luxury market as the hospitality sector which provided the most opportunity for their company to grow. More than a third of suppliers identified the luxury market; 12.5% identified standalone F&B outlets as a growth area; and 14.6% said the economy market was the sector in which they predicted most growth. HME

PLEASE SELECT UP TO THREE OF THE FOLLOWING HOTEL COMPANIES THAT YOU WOULD MOST LIKE TO WORK WITH? (N=43) Accor Aldar Hotels and Hospitality Anantara Bavaria Hotels International Banyan Tree Bonnington Campbell Gray Hotels Dusit International Four Seasons Habtoor Hotels Hilton Worldwide Hospitality Management Holdings Hyatt Golden Tulip Iberotel InterContinental Hotels Group JAL Hotels Jumeirah Group Kempinski Hotels Kerzner Landmark Hotels Layia Hospitality Marriott Millennium and Copthorne Movenpick Hotels and Resorts Nakheel Hotels Premier Inn Refad Hotels Rosewood Rotana Shaza Hotels Six Senses Shangri-La Hotels and Resorts Starwood Hotels and Resorts Swiss-belhotel International Tamani The Address Hotels and Resorts The Rezidor Group Vision Hotels

March 2010 • Hotelier Middle East

18.6% 27.9% 2.3% 0.0% 0.0% 4.7% 4.7% 2.3% 11.6% 4.7% 9.3% 0.0% 18.6% 4.7% 0.0% 7.0% 0.0% 27.9% 11.6% 9.3% 2.3% 0.0% 18.6% 2.3% 23.3% 0.0% 0.0% 0.0% 4.7% 23.3% 0.0% 2.3% 14.0% 25.6% 4.7% 0.0% 18.6% 7.0% 0.0%

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4.7% 4.7% 9.3% 9.3% 11.6% 7.0% 2.3% 14.0% 4.7% 20.9% 4.7% 0.0% 2.3% 11.6% 9.3% 9.3% 2.3% 11.6% 4.7% 0.0% 0.0% 7.0% 2.3% 4.7% 9.3% 30.2% 4.7% 2.3% 2.3% 9.3% 4.7% 0.0% 7.0% 11.6% 4.7% 2.3% 2.3% 2.3% 2.3%

PLEASE SELECT UP TO THREE HOTEL COMPANIES THAT YOU WOULD LEAST LIKE TO WORK WITH BASED ON PAST EXPERIENCE OR REPUTATION?(N=43)

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Hotelier Middle East â&#x20AC;˘ March 2010

SUPPLIER SURVEY

Accor Aldar Hotels and Hospitality Anantara Bavaria Hotels International Banyan Tree Bonnington Campbell Gray Hotels Dusit International Four Seasons Habtoor Hotels Hilton Worldwide Hospitality Management Holdings Hyatt Golden Tulip Iberotel InterContinental Hotels Group JAL Hotels Jumeirah Group Kempinski Hotels Kerzner Landmark Hotels Layia Hospitality Marriott Millennium and Copthorne Movenpick Hotels and Resorts Nakheel Hotels Premier Inn Refad Hotels Rosewood Rotana Shaza Hotels Six Senses Shangri-La Hotels and Resorts Starwood Hotels and Resorts Swiss-belhotel International Tamani The Address Hotels and Resorts The Rezidor Group Vision Hotels

BEST PRACTICE: HOTEL DESIGN

Bishop Design Associates has renovated rooms at Fairmont Dubai.

Keeping up appearances eauty is in the eye of the beholder. If only this was true in the case of hotel creation, where beauty is in the eye of the owner, the operator, the developer, the architect, the interior fitout contractor, the procurement company, the in-house purchasing team, the head housekeeper — the list goes on. The role of the interior designer, therefore, is surely to align the visions of all these different partners. And according to the designers Hotelier Middle East spoke with, this can be a lengthy and complicated process — for example, during the six years that Wilson Associates worked on Atlantis, The Palm, the firm worked with more than 30 different contributing consultants. Wilson Associates principal in charge and design director James Carry comments: “It is important to keep in mind that there needs to be clear communication 100% of the time between all consultants. If issues are not addressed from the start of the project, they will never go away. My advice to owners and operators is to pick their consultants based on team capability, not on a fee, and trust them to execute the vision.” The “team” factor is crucial when it comes to design, agrees WATG associate vice president Rory Hopkins.

The Maakanaa Maldives Villa Bathroom by Miaja Design Group.

Interior designers debate the key issues surrounding their work, from the function versus form debate to the challenges of working within compressed budgets, revealing how their goal is to balance the visions of the hotel owner and operator

March 2010 • Hotelier Middle East

The Maakanaa Maldives Chillout Deck by Miaja Design Group.

Banyan Tree Al Wadi, Ras Al Khaimah.

Miaja created Desert Palm Hotel & Resort Dubai’s Epicure outlet.

www.hoteliermiddleeast.com

45 BEST PRACTICE: HOTEL DESIGN

The lobby at the new Radisson Blu on Yas Island, designed by Aukett Fitzroy Robinson.

The relaxation spa at Jumeirah Beach Hotel in Dubai was created by Bishop Design Associates.

Martin Pfeiffer

Rockwell Group designed Adour Alain Ducasse at St Regis New York.

Hyatt Andaz Wall Street by Rockwell Group.

“The culmination of a successful project is bringing the right team members together who share a similar vision and equivalent level of expertise. Integration is done through diligent communication and a willingness to be open to new ideas,” he says. At Rockwell Group, this process involves the creation of a written narrative at the outset, says managing director of the group’s Middle East office, Chuck Wood. “Our job is to develop a design concept that functions well, that supports the vision and story of the brand, that works from an economic standpoint, which ultimately builds a strong emotional, memorable and pleasurable connection with the guest or the customer. It’s not always the case that when a project starts there is a clear understanding between an operator and an owner or a developer about collectively what they want to achieve and it’s an important part of the process to map that out in the beginning. “We do it through producing what we call a written narrative; that is, a story about what the project is, its place, the locale, how it responds and reaches out to the target guest segment and how guests are going to experience the project and brand as they move through it and inhabit it. We use that as a tool with visual exercises to bring everybody together,” says Wood. www.hoteliermiddleeast.com

However, bringing all the relevant partners together at the appropriate time is not as simple as it sounds, say the designers. “Good co-ordination is key to good design and unfortunately the interior design is always the one that suffers due to being the last in line when it comes to the fit out,” says Interior Motives MD Julia Dempster. Aukett Fitzroy Robinson head of interior design Anne Kuzyk admits to experiencing the same problem. “We are the last consultant to be appointed to the project. In many instances, it is long after the building has been designed by the architect and MEP consultants, and in some cases before a hotel operator has been appointed,” says Kuzyk. “Interior designers inherit spaces that may not work for a hotel operation, with guest bathrooms that are too small or awkward shaped spaces that cannot fit the requirements of a restaurant. The ideal solution is one practice that has architectural and interior design capabilities, so that the building and interiors may be designed together. This integration is about shared ownership among the entire team for the delivery of the end product,” says Kuzyk. “Our biggest challenge is to blur the line between the hotelier and the hotel owner’s expectations,” she adds — and the earlier this process begins, the better.

Banyan Tree Hotels & Resorts is one example of such shared ownership, as it benefits from its own in-house design firm. “Banyan Tree has a unique vertically integrated business model which includes hotel and spa management and operations, as well as architectural and interior design through its in-house Architrave Design and Planning. This is something that other hotel groups do not have. As part of this business model, we are able to exercise better control over the quality and consistency of the design standards of our projects, as we continue our global expansion,” says Ho Kwoncjan, senior vice president and managing director, design services of Banyan Tree Holdings Limited, and managing director, project development of Laguna Resorts & Hotels, PCL in Thailand. But, assuming the right team is in place at the right time and able to weave together the visions of both owner and operator, what issues must designers address when developing a hotel concept? How do they balance practicality with beauty, sustainability with luxury, and quality with cost? Over the next few pages, interior designers — all of whom have created projects in the Middle East — tackle these issues and reveal trends of the future and their nominations for the world’s best-designed hotels. Hotelier Middle East • March 2010

BEST PRACTICE: HOTEL DESIGN

THE FUNCTION VS FORM DEBATE The function versus form debate rages on when it comes to hotel design, with two of the designers Hotelier Middle East spoke with sitting on opposite sides of the fence on this subject. For Miaja Design Group’s principal Isabelle Miaja and director Martin van der Reijden, aesthetics must come first, but on this note they find themselves head to head with Martin Wojnowski, design principal at Design Work Portfolio, for whom practicality is paramount. Miaja says: “Design is first and foremost about aesthetics and only thereafter about practicality, durability and timelessness. “You have to dream up a design before you make it practical, the other way around of taking something practical and trying to make it beautiful normally does not work.” For example, she says they are currently “dreaming up a new Maldivian Resort, small and extremely highend, and are just discussing whether a two-curved wall is feasible”. “The answer is probably going to be yes but quite expensive, so why don’t we make the wall straight? Well, because it would not be as beautiful,” says Miaja, pointing to the idea that the Sydney Opera House “could have had flat roofs” to illustrate her point. But for Wojnowski, the commercial role of an interior designer to accelerate financial returns for a hotel owner demands that function is the primary consideration. “Practicality always comes first in a hotel or resort. Personally I always develop the circulation of the public spaces and required back-of-house areas first. I know how a hotel works because I actually worked in restaurants, housekeeping, concierge and front office,” says Wojnowski. “It was 20 years ago. I had to earn a living as a student. I never expected this expe-

Ho Kwoncjan, senior VP and managing director, design services of Banyan Tree Holdings. Julia Dempster, MD MD, Interior Motives Motives. Jul lia Dempster

rience would prove to be crucial in my future as a designer. Without the practical, hands-on knowledge of the operating, “living” hotel, I would have never even have thought about laying a groundwork for a hotel layout. “Interior design is an awfully practical exercise,” he continues. “It is a lot to do with money and lead times and deadlines. Unfortunately design schools do not prepare people for all that. Not enough emphasis is put on financial planning.” Aukett Fitzroy Robinson’s Kuzyk says the drivers for aesthetics and the drivers for functionality often contradict each other, but suggests looking to examples in history for the perfect fusion of both, “such as Yin and Yang”. “It is not so much a question of balance between achieving high design and functionality as it is a question of achieving total unity,” says Kuzyk.

QUALITY CONCERNS: ARE HOTELS SCRIMPING TO SAVE? Economic challenges have resulted in hotel budgets being compromised, but designers are adamant that this should not impact upon the quality of the project, either during structural construction or interior fit out. Aukett Fitzroy Robinson’s Kuzyk puts the onus on the interior designer

DESIGN IS FIRST AND FOREMOST ABOUT AESTHETICS AND ONLY THEREAFTER ABOUT PRACTICALITY, DURABILITY AND TIMELESSNESS Isabelle Miaja Principal, Miaja Design Group

March 2010 • Hotelier Middle East

Martin Wojnowski, Design Work Portfolio.

to ensure standards don’t slip. “The greatest concern for designers is the short-term approach regarding quality of finish and construction, putting occupancy levels and transaction activity at risk. We need to strike a balance between quality of design and quality of construction,” says Kuzyk. “There is no doubt that recession drives creativity in a very positive way. Designers need to think outside the box. Good quality products and fittings must be used throughout any hotel design and it is the manner in which they are used that maintains quality and saves money in the long term,” she says. Rockwell Group Middle East managing director Chuck Wood agrees that it is down to interior designers to re-address how they can deliver their services more efficiently, especially considering the competitiveness in fees. He says: “Design is coming up with the best possible solution given a certain set of goals and constraints and price is just one of those constraints. I don’t think there is any requirement that a low budget doesn’t mean a great design”. However, Interior Motives managing director Julia Dempster says that educating hotel owners determined to squeeze budgets as to the critical importance of quality goods is increasingly challenging. “This is happening more and more frequently and we are having real difficulty getting owners to see that paying more to start with is more cost-effective. Some of the worst offenders are some Chinese lighting manufacturers; lighting is arriving

on site rusty, not straight, with cheap dented shades and light fittings that burn when you touch them, which have both a massive impact on the look of the project and more importantly safety,” says Dempster. Martin Wojnowski at Design Work Portfolio says it is therefore important that “each item should be addressed individually and approved by designer”. “If it does not meet the set standards, the designer should assist the contractor with selection of a costeffective alternative. It is possible to replace nearly everything these days,” says Wojnowski. “However, care should be taken to retain the key finishes. For example there is a recently constructed, fivestar hotel in Dubai which features vinyl flooring in the key reception area. Obviously it was meant to be timber originally. They should have found a cheaper timber or even a laminate option. Otherwise they should have compromised on less significant details or areas. The same applies to furniture; one can never compromise on the quality of bed or mattress. Otherwise clever alternatives are considered,” he asserts. And at Miaja Design Group, Martin van der Reijden points out that “quality has a price…always had and always will”. “A lot of developers are very proud when they find an even cheaper tile but even at a really cheap level there are quality differences,” he says. Like Wojnowski, he advises owners to invest into the interior design hardware of the hotel — beds, mattresses, sanitary ware, HVAC systems, lighting, hinges, door closers, wood floorings and tiles, as they hopefully will last more than five to seven years. www.hoteliermiddleeast.com

47 BEST PRACTICE: HOTEL DESIGN

Renderings of Hilton Worldwide’s upcoming Conrad Hotel in Dubai by Design Work Portfolio.

WE ARE HAVING REAL DIFFICULTY GETTING OWNERS TO SEE THAT PAYING MORE TO START WITH IS MORE COST EFFECTIVE Julia Dempster Managing director, Interior Motives

“If you get an interior fit-out company from overseas (China, Malaysia, Bali and so on) make sure that the production is supervised and managed by international standards, which normally means, choose a company based in Hong Kong, Singapore or for that matter in the Middle East, as they will have production plants in these low-cost countries,” advises Van der Reijden.

Perhaps the most important factor to keep in mind when trying to save costs, however, comes back to team work and the need to ensure that the project runs according to schedule with no delays. As Miaja’s principal, Isabelle Miaja, rightly points out: “I guess that most of the cost overruns are ultimately not about design but about time overruns”.

HOW DO DESIGNERS DEFINE LUXURY? “Luxury is space, quality, simplicity, creativity and putting time and effort into something. You miss one of them, you will not really get the feeling of luxury. As much as you could argue about simplicity, I strongly feel that you have to put effort into making something simple and at the same time beautiful — ultimately luxury has to trigger desire.” Isabelle Miaja, principal, Miaja Design Group

With regard to hotels “luxury is held in the eye of the beholder. It isn’t about designing interiors; it’s about creating unique places.” James Carry, principal in charge/design director, Wilson Associates

www.hoteliermiddleeast.com

“Luxury can be presented in the form of space, privacy and intimacy, which is something our Banyan Tree individual pool villas encapsulates.” Ho Kwoncjan, senior vice president and managing director, design services of Banyan Tree Holdings Limited, and managing director, project development of Laguna Resorts & Hotels, PCL in Thailand

“The definition of luxury is based on demographics and individual taste in our opinion — we like to create a timeless elegance.” Ellen Bishop and Paul Bishop, managing partners, Bishop Design Associates

Hotelier Middle East • March 2010

BEST PRACTICE: HOTEL DESIGN

SUSTAINABLE DESIGN: DOES IT MATTER? The interior designers Hotelier Middle East spoke with held differing views on the subject of sustainable design, which were possibly influenced by the locations around the world in which they work. A very honest Isabelle Miaja admits: “I don’t think that we are yet in a time period where sustainability and environmental issues are leading future design trends. I can hear everyone being upset about this comment and lecturing me that there are actually quite a few exceptions”. It is true that for many hotel operators, sustainability is a relatively new concept yet to dramatically impact hotel creation. As Ellen Bishop, managing partner at Bishop Design Associates, says: “At this moment in time there is unfortunately not enough focus on environmental design — it’s ‘all talk and no action’. “The LEED compliant product selections are also still quite limited,” she adds. However, this does not mean that hotel designers are not serious about sustainability and nor does it mean that owners and operators haven’t proved that it can work — as Miaja said, there are exceptions. Wilson Associates principal in charge/design director James Carry asserts that the company is “committed to integrating the principles of sustainable design into all aspects of our practice”.

Laguna Tower renderings by Design Work Portfolio.

WATG was the exterior architect for the One&Only Royal Mirage in Dubai, while Wilson Associates was responsible for the interior architectural design of this iconic hotel, celebrated by many for its Arabic theme.

“We initiate a dialogue about environmental impact and sustainable alternatives with each client. “Across the board, I feel that the majority of hoteliers recognise the importance and seek to fulfill LEEDcertified standards in their projects,” says Carry. “Sustainable solutions that we are currently putting in place within our design schemes are bamboo woodwork and flooring instead of wood and the use of recycled glass and metal products,” he adds. Sustainable design is also a part of WATG’s projects. Rory Hopkins says: “Sustainability is a must. However, eco-fatigue is t new buzzword. How designers the i integrate sustainable measures into a hotel without impacting the guest

I DON’T THINK THAT WE ARE YET IN A TIME PERIOD WHERE SUSTAINABILITY AND ENVIRONMENTAL ISSUES ARE LEADING FUTURE DESIGN TRENDS Isabelle Miaja Principal, Miaja Design Group

March 2010 • Hotelier Middle East

experience in a negative fashion is the solution, which we have already highlighted with WATG winning the sustainability suite award from the USGBC this year.” WATG designed Bardessono, a 62-room boutique hotel in Napa Valley in the US which recently was awarded LEED Platinum certification, continues Hopkins. “The hotel uses solar and geothermal energy, sophisticated energy management systems, sustainable building materials, and organic landscape management practices, all while maintaining a five-star product,” Hopkins says. He believes that “as people become global navigators of the world”, they are seeking authentic experiences, cultural immersions and hotels where they know the “fabric, fittings and products are having a positive impact on the local community”. This approach to hospitality design has always been a focus for Banyan Tree, says the group’s senior vice president and managing director of design services, Ho Kwoncjan, also managing director, project development of Laguine Resorts and Hotels PCL in Thailand. “Sustainable design is something we always take into consideration at the design and construction stage,” says Kwoncjan.

“ The first Banyan Tree in Phuket was built over a piece of abandoned tin-mining land that was once declared by the UN to be toxic and useless, where we invested millions to rehabilitate the topsoil, re-introduce indigenous flora and fauna, to transform the landscape into the lush surroundings with teeming lagoons of today,” he reveals. The firm has also established environmental measures at its new Middle East resort, Banyan Tree Al Wadi in Ras Al Khaimah. Banyan Tree Hotels & Resorts assistant vice president — design for its design arm, Architrave Design and Planning, David Barclay explains: “Waste water collected from the resort will undergo a reverse osmosis process so that it can be pumped into the reserve’s waterhole, as well as used for landscape irrigation. Apart from establishing water flow control systems and utilising energy-saving light bulbs, a recycling centre will be set up on site, segregating all waste material.” Barclay adds that in the villas, sliding full length windows allow for natural ventilation instead of heavy reliance on air conditioning, while locally produced materials and suppliers were used. “For example, we used natural local stones from the quarry for areas such as the bar and water features, whilst flooring, cladding and wall tiles were made locally by RAK Ceramics,” says Barclay. www.hoteliermiddleeast.com

WATG Emirates Palace

The 275,000m² hotel was built in three years and was “an outstanding example of teamwork between all the parties associated with the project” says Rory Hopkins. One & Only Royal Mirage Dubai (exterior architecture) Mövenpick Dead Sea Resort, Jordan

DESIGN WORK PORTFOLIO

BISHOP DESIGN ASSOCIATES

Le Royal Méridien Abu Dhabi

The Fairmont Dubai: rooms, suites, penthouses and Cin Cin Jumeirah Beach Hotel: relaxation spa Wafi Hospitality LLC: Mahi Mahi Restaurant Emirates Golf Club: La Classique Restaurant

“For the last two years I have been working on the refurbishment of Le Royal Méridien Abu Dhabi — it will be the first Starwood property in the region to showcase their new design guidelines for the coming decade,” says Martin Wojnowski. Laguna Tower, Jumeirah Lakes Towers , Dubai Conrad Hilton Dubai Park Inn, Mecca

AUKETT FITZROY ROBINSON Radisson Blu Hotel Yas Island Park Inn Abu Dhabi, Yas Island

ROCKWELL GROUP WILSON ASSOCIATES One & Only Royal Mirage (interiors)

“Arabic details and integration of shadow, texture and light to reveal the surrounding environment help create a warm, hospitable and inviting location for both the local Arab community and international travellers alike,” says James Carry.

BANYAN TREE HOTELS & RESORTS Banyan Tree Ringha in Shangri-la

Sofitel Dubai Sheikh Zayed Road

“This would be one of our most innovative designs to date: we purchased unwanted Tibetan farmhouses from the nearby villages, disassembled the timber and reassembled it in the traditional method at the hotel site,” says Banyan Tree’s design expert Ho Kwoncjan.

Scheduled to open 2012, this hotel is a current project on Carry’s list.

INTERIOR MOTIVES

Atlantis, The Palm

A six-year project to “create a luxurious escape”.

Fairmont Bab Al Bahr, Abu Dhabi Rotana, Yas Island InterContinental, Al Khobar

Nobu at Atlantis The Palm and Nobu to open at Four Seasons Doha Aloft and W Hotels for Starwood Currently designing a Ritz-Carlton resort and golf club in Cairo Le Méridien designed and under construction in Algeria The first Nobu Hotel under design

MIAJA DESIGN GROUP Radisson Blu Dubai Media City Desert Palm Dubai Upcoming Rotana projects in Abu Dhabi and on Saadiyat The new Millennium Copthorne, Doha Traders Hotel in Doha

TheAtlantis The Atlantis Bridge Suite byWilsonAssociates by Wilson Associates.

www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

49 BEST PRACTICE: HOTEL DESIGN

WHO HAS DESIGNED WHAT?

51 BEST PRACTICE: HOTEL DESIGN

DESIGN TRENDS OF THE FUTURE With sustainability already highlighted as a priority for hotel design going forward, what other trends should hoteliers take note of? The designers were unanimous in their opinion that the most important trends revolved around the guest experience, rather than particular design styles or concepts. According to Aukett Fitzroy Robinson’s Anne Kuzyk: “The current major trend is the global lifestyle issue. Guests are not just concerned with the convenience of location, level of service and the size of guestrooms. What counts is the overall guest experience; a magical word that encompasses just about everything. It includes everything from the appearance and style to the attentiveness of the concierge; from the cachet of the chef and the atmosphere at the bar to the crowd that it attracts; from the spa treatments to the state-of-the-art gym.” Chuck Wood takes this a stage further, asserting that a vital consideration for Rockwell Group is to establish an “emotional connection” between hotel and guest. “I think that there is a growing focus by operators and owners on creating and developing a hotel product that is really focused on building a very strong emotional connection with their target guest segment and

DESIGNERS’ PICK OF THE WORLD’S BEST HOTELS

Wilson Associates’ James Carry.

WAT WATG TG associate vice president Rory Hopkins Hopkins.

that is very much at the heart of how we approach any of our projects — creating an environment that is immersive but builds strong connections with the guests and allows people to interact in very pleasurable and positive ways,” says Wood. This is partly achieved through creating a product that is “connective and emotive” of its physical, cultural and historical location,” he adds. “A great example of that is Six Senses Hideaway Zighi Bay, where it is a very unique experience that is very much tied to the community in which it is located. They’re working very hard to connect with the local population and not just supporting the community by building housing but also trying to support and foster local craft traditions and exposing all of this to the guests as part of the experience,” he explains. “I think that kind of focus on a particular kind of experience that is more unique is something that is going to become more and more of a trend as opposed to a certain level of consistency that you might expect between chains.

Another trend stemming from this, continues Wood, is the adaptation of entrepreneurial brands outside of the hotel business that already have very strong emotive connections with their customers. “We have developed a hospitality concept for Nobu, which everyone knows is a high-end chain of Japanese cuisine. Nobu himself has a very strong personality that’s very tightly bound to the restaurant brand and people look to him as a kind of concierge — every meal is a handcrafted, deep experience for people and we found that those attributes map very well to a hospitality offering. There is a first Nobu hotel being designed right now for a location in the US,” reveals Wood. “We have one or two specific locations in the US, I know they have had some conversations with developers here in the Middle East, I believe they are probably interested in coming here at some point,” he adds Significantly, Wood says: “It’s a different game altogether from taking a celebrity’s name and slapping it on a building.” HME

Design Work Portfolio

Bishop Design Associates

• The Hotel, Lucerne, Switzerland (designed by French Pritzker Prizewinning architect Jean Nouvel)

• Chedi Hotels • Sanderson Hotels • Conrad Hotels

Rockwell Group

Aukett Fitzroy Robinson

• The Chedi Muscat, Oman • Park Hyatt Jeddah • Belvedere in Mykonos Greece

Interior Motives

•Qualia, Hamilton Island, Australia • Huvafen Fushi, Maldives • Onguma Game Reserve, Namibia • Marques de Riscal, Elciego, Spain • The Royalton, New York

• Habita Montterrey, Mexico • Amman Hotels

Hotelier’s favourites

WATG • Emirates Palace Abu Dhabi • Hotel Fox, Copenhagen, Denmark • One & Only Le Saint Geran, Mauritius • Les Deux Tours, Marrakech, • Burj Al Arab, Dubai • Claridges, London

Wilson Associates • Four Seasons Hotel New York • The Venetian, Las Vegas, Nevada • Royal Livingstone, Zambia, • Hotel Le Bristol, Paris, France • Villa San Michele, Florence, Italy

www.hoteliermiddleeast.com

Miaja Design Group • Taj in Mumbai • The Conrad in Tokyo • Huvafen Fushi in Maldives

• The Chedi Muscat, Oman • Six Senses Hideaway Zighi Bay, Oman • Fairmont Bab Al Bahr, Abu Dhabi • The Address, Downtown Burj, Dubai • Banyan Tree Al Wadi, RAK

Hotelier Middle East • March 2010

COUNTRY UPDATE: UAE

The emirates’

evolution

The economic downturn offered an opportunity for hoteliers in Fujairah, RAK and Sharjah to ensure they were perceived as standalone destinations. How will they maintain this positioning?

REPORT long with the inevitable challenges, all crises bring with them new opportunities. While the UAE’s number one destination, Dubai, has been struggling to adjust to changing corporate-spend trends and consumer expectations, the other emirates — specifically Fujairah, Ras Al Khaimah (RAK) and Sharjah — have experienced the chance to position themselves as individual destinations in the UAE. Gradually, the travel trade and tourism market has realised that these emirates offer far more than the potential for an excursion during a Dubai-based holiday or a weekend break for UAE residents. And as well as coming into their own as leisure destinations, convention facilities under development in places like Ras

Hamra Hotels & Resorts’Adrian Hearn. March 2010 • Hotelier Middle East

Al Hamra Residences offer 218 apartments which will benefit from the facilities at the luxury Palace Hotel, Ras Al Khaimah, opening this year. Al Khaimah mean that corporate travellers — with their condensed budgets — have an alternative too. With consumers latched onto this idea, hotel owners and operators have spread their wings outside of the UAE, with both exciting topend projects — such as the recently opened Banyan Tree Al Wadi in Ras Al Khaimah — through to economy projects such as the planned Ibis Sharjah filtering through. But as the UAE hotel industry strives for recovery out of the downturn, what do these emirates need to do to ensure their new positioning is not yet again overshadowed by big brothers Dubai and Abu Dhabi? CBRE Hotels Middle East vice president Arnaud Andrieu says that firstly, the northern emirates need to

Radisson Blu Al Aqah Beach Resort, Fujairah. assert their unique offering to prevent confusion among consumers. “What we have noticed is there is some confusion among international tourists. Some operators in the UAE are selling emirates like Fujairah [as if it was] Dubai. For the tourist, the problem is that they are intending to travel to Dubai but [then find out] their hotel is located far away from their destination — at least one

IT IS THE RESPONSIBILITY OF HOTELIERS IN FUJAIRAH AND RAK TO STRUCTURE ATTRACTIVE PACKAGES FOR THEIR CLIENTS

hour from Dubai,” says Andrieu. He said he was not sure whether the blame for this sat with tour operators, travel agents or hoteliers, but urged the industry to target different groups for the particular locations. “They [Dubai and the northern emirates] are targeting different people, especially those who are not able to afford more than AED 800 (US $218) a night. For them the alternative of staying in Fujairah or Ras Al Khaimah, is perhaps easier for the tour operators to sell. “You can get cheap flights, even to Dubai airport, plus the transport.

www.hoteliermiddleeast.com

53 COUNTRY UPDATE: UAE

WE ARE DEFINITELY LOOKING TO DEVELOP MORE OF THE CORPORATE OFFERING IN SHARJAH

City Seasons Group’s Thomas Tapken.

Living area and bedroom (above) at the Al Hamra Residences in Ras Al Khaimah. They don’t necessarily need to be near the first point of interest, which is the city of Dubai. They can just be in the city of Fujairah for instance, and go [to Dubai] by bus or special transfer organised by the hotel. “I think it is also the responsibility of the hoteliers in Fujairah and RAK to structure attractive products and packages for their clients — to structure a different service and be flexible to the current environment to better compete with the hotels in Dubai,” says Andrieu. At the same time, he says this will ultimately benefit Dubai and improve its reputation as a long-stay destination for tourists. “I would say these emirates are taking a different direction and are offering something else that travellers don’t want in Dubai or offering something to those that cannot afford Dubai. I would say that at this time and for the full-term, or the midterm, it will be a plus for Dubai. Now people are able to get a one-week package and will be able to stay in a

www.hoteliermiddleeast.com

beach resort, possibly spend one or two days in Dubai, or do some shopping in Dubai,” says Andrieu.

PRICE POINT There are indeed substantial differences in pricing between Dubai and Fujairah for example, especially when to comes to beach resorts, something also observed by group general manager for City Seasons Group, Thomas Tapken. “For European travellers looking for sun and beaches, the northern emirates will be appealing with competitive rates — and will then attract longer average stays rather than stop-over traffic. With fewer external entertainment opportunities, these guests tend to stay in house for food and beverage, making them a good investment,” says Tapken. In addition, the hotels outside of Dubai and Abu Dhabi have been more flexible with their packages and Tapken expects summer packages to be in place in May this year rather than waiting until July. Hotelier Middle East • March 2010

COUNTRY UPDATE: UAE

The Palace Ras Al Khaimah is scheduled to be completed in 2010. For Christian Rainalter, general manager at Hotel JAL Fujairah Resort & Spa, all inclusive packages have attracted more guests. “We are offering different board options; whether someone prefers to stay on bed and breakfast, half board, full board or all-inclusive, we have designed a suitable package for most travellers. Being a resort catering for families, we have seen in the past that more and more guests would like to book their holidays on an all-inclusive basis. That gives them the flexibility of budgeting their holidays back home with regards to their spending,” says Rainalter. And in Ras Al Khaimah, The Palace, Ras Al Khaimah and Al Hamra Residences director of sales and marketing Adrian Hearn says that the pricing benefits appeal to both overseas visitors and residents looking for a weekend break — a market that should still be targeted. “Through RAK International Airport we have a number of charter operations coming in that have been able to supply volume to fill a number of hotels in the region, and with the emirate as it is, with its lower cost for accommodation and lower costs attributed to the hotel, it means that we can be a little bit sharper and a little bit more competitive in being able to streamline our costs, to hand on that saving to the customer. “Our pricing is less aggressive than Dubai, which means we can be a more attractive destination on paper or through an advertisement,” explains Hearn. “RAK is only 40 minutes from Dubai and we are a new emerging emirate and some people are seeking desperately to go into that new March 2010 • Hotelier Middle East

tourism. We are, from a cost point of view, not faced with some of the higher charges that are attributed to hotels and hotel suppliers with the Dubai remit,” he continues. “We have a lot of people who come across and holiday with us from within the GCC and key markets, including the German-speaking markets, the UK, the CIS markets, and even Italy itself; all are all very popular for us. “From a weekend standpoint we have a tremendous amount of people who come up from Dubai, Abu Dhabi and Al Ain, to spend the weekend with us as a getaway or a treat. “This happens weekend upon weekend,” asserts Hearn.

CORPORATE APPEAL In addition to the leisure business, there has been growing interest in the northern emirates as corporate destinations, a trend The Rezidor Hotel Group is keen to harness. “RAK has both a leisure and corporate profile. We have seen the development of new hotels in RAK and the plans to increase tourism to 2.5 million visitors by 2012; so RAK definitely will be a combination of both corporate and leisure,” says Rezidor area vice president Marko Hytönen. “We will be targeting the Gulf market, as well as the international markets for RAK.” Rezidor has two hotels in the pipeline for the northern emirates, Radisson Blu Qurm Hotel Ras Al Khaimah opening in Q3 2011 and

Radisson Blu Al Aqah Beach Resort, Fujairah opening at the end of 2012. “[Corporate] is more of a longterm plan,” says Hytönen. “If we look at the structural plan for 2015, it includes a lot of development in that region and we believe that this will generate further corporate business for our hotel in RAK. On the other hand, there is the RAK free-trade zone, and we believe that there are still opportunities in that area. But for leisure — we haven’t gone in the segmentation fully, but we believe we will have 70% leisure and 30% corporate for RAK,” he says. Hearn envisages a similar balance for Hamra Hotels & Resorts, which will open the luxury all-suite Palace hotel in Q4 2010, the Al Hamra Residences and a convention centre. “We have the Hamra Convention Centre, which is also at the resort — it would knock your socks off. The convention centre has a huge meeting room downstairs which can accommodate about 1700 people with smaller private meeting rooms, all full service, upstairs. As a MICE destination we can cater for any major event, be it for a trade show or a convention,” says Hearn. In terms of specifically competing with Dubai, he adds: “I think people are always seeking a price alternative, and with the recent recession people are becoming more price conscious and people are trying to create differences in the way they do business. I truly believe that yes, it will [be successful]”.

WE HAVE THE HAMRA CONVENTION CENTRE, WHICH IS ALSO AT THE RESORT — IT WOULD KNOCK YOUR SOCKS OFF

For Rezidor, Sharjah is the priority for developing corporate business. “We are definitely looking to develop more of the corporate offering in Sharjah,” says Hytönen. “During the peak years Sharjah somehow seemed to be the destination of the overflow for Dubai and it benefited a lot from being so close to Dubai and a lot of business came directly from Dubai. “I really believe that in the future we need to focus much more on the corporate segment. Leisure will still be very important, but the corporate segment will be increasingly important for Sharjah.” Rotana is also focused on Sharjah, with the opening of the 300-room Centro Sharjah Airport in August 2010 reflecting the gradual diversification of the market. “The property, which will include both rooms and suites, will provide comfort and convenience for travellers passing through one of the

CBRE Hotels Middle East VP Arnaud Andrieu.

www.hoteliermiddleeast.com

Hotel JAL Fujairah Resort & Spa GM Christian Rainalter recommends all-inclusive packages. region’s fastest-growing airports as well as for visitors to the emirate,” says Rotana CEO and president Selim El Zyr. Fujairah is also a focus for corporate business, hence the planned opening of Fujairah Arjaan in 2010.

Rotana Hotels director of sales travel trade UAE Ganesh Kamath says: “If we look at Fujairah as a destination you have the beach resorts which are 45km away from Fujairah city, they are all in Al Aqah. There is potential in the city for the corporate, for long stays, so that’s why we are also opening a hotel in the city. “And there are massive development plans on the board for Fujairah as well in the city, you have malls coming up in the next maybe two or three or four years. We need to be there before developments really happen,” adds Kamath.

WHERE NEXT? Currently, CBRE’s Andrieu says he thinks Sharjah is performing the best of the emirates outside of Dubai and Abu Dhabi because of its prox-

imity to the city and its leisure and business offer. “Then I would say Fujairah and RAK; they are in the same position, because of the product offering,” he says. “RAK is not yet an established market, but none of them are in terms of hotel offering. There are still gaps in the market – these will be filled, but this will take time.” Hytönen agrees that Fujairah and Ras Al Khaimah are the two “hot emirates” that Rezidor will focus on going forward. “I think this is the direction to go. We know that there are lots of developments in Abu Dhabi, but we can see, especially in Fujairah, that leisure developing will be very interesting. And when we look at these two emerging markets, with limited supply, yes it is an opportunity for international brands to be there,” he says.

Tapken adds: “The northern emirates still have room to grow in many areas, and have the opportunity to attract more charter tourism — this means fewer luxury hotels and more economical or value for money properties and a different type of guest”. There are also opportunities in Ajman and Umm Al Quwain, which “are lagging behind” right now, says Andrieu, “not because the destination is not interesting, but because the offering or the international notorious [well-known] players cover other places in the UAE.” “Currently, we don’t have any plans in Ajman or Umm Al Quwain, but if there’s anything coming up we will definitely take a look at it,” responds Hytönen. HME

HOTEL PIPELINE To view the upcoming properties pipeline in the UAE, which currently stands at more than 140 confirmed hotels, visit www.hoteliermiddleeast. com/hotelierprojects/

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Hotelier Middle East • March 2010

COUNTRY UPDATE: UAE

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Supplier Focus • News • Analysis • Innovations • Trends

HotelREZ expands into Middle East market Mezze Associates appointed regional partner for hotel distribution company Global representation company HotelREZ has signed a partnership deal with Mezze Associates to manage its “complete hotel development” across the Middle East. Mezze Associates managing partners Russel Sharpe said: “Mezze Associates has more than 30 years experience in the Middle East region and recognises that hoteliers need credible solutions for demand and revenue generation. “We are committed to offering hoteliers a solution that will maximise revenue through all channels and believe our partner hotels will benefit from HotelREZ’s strong

global presence and experience,” said Sharpe. HotelREZ, which already works with 680 hotels in 27 countries, offers tailored distribution, marketing and demand generation solutions to independent and small to medium-sized chains of hotels. The company works with brands such as Simply Connect, Simply Fabulous, the Elegant Hotel Collection, World Fashion Hotels and the Hotel 100. In the Middle East, HotelREZ and Mezze Associates have already partnered with Layia Hospitality and “many more independent hotels”.

Mezze Associates managing partner Russel Sharpe.

Depa braces itself for ‘extremely tough’ year ahead Depa, the Dubai-based outfitter for the Burj Khalifa, is bracing itself for an ‘extremely tough’ 2010 in order to cope with difficult market conditions, its chief executive officer said. Mohannad Sweid said: “Although we are seeing signs of recovery, we believe 2010 will be extremely tough and we are further streamlining our business to strengthen our ability to cope with difficult market conditions and further diversifying our

revenue base, as we have been doing over the last decade”. In 2009 the company traded in line with market expectations and guidance, and managed to achieve 36% revenue growth and 24% profit growth for the full year, after tax and prior to adjusting for a maximum of US $2.04 million in impairments. Its revenues stood at approximately $735.7 million, which compared favourably to 2008’s $536.8

million, while profits for the year reached $65.7 million compared to $53 million in 2008 — both taking into account adjustments for additional contingencies. As of December 31, 2009, Depa’s backlog included more than 100 projects worth $572 million, as compared to $736 million on the same date in 2008. Projects based in the UAE accounted for 55.2% of the backlog.

Philips acquires ‘iconic’ Italian design brand Luceplan

A lighting fixture designed by Luceplan.

www.hoteliermiddleeast.com

Royal Philips Electronics has acquired Italy-based Luceplan SpA, which will become part of the Consumer Luminaires business in the Philips Lighting sector. Philips Lighting Consumer Luminaires CEO Allard Bijlsma commented: “With the acquisition of Luceplan we are acquiring an iconic design brand in the premium design segment which enjoys higher growth rates and margins than the overall consumer lighting market.

“Design will be an important differentiating factor in the consumer luminaires segment, driven by increased use of LEDs, as designers are no longer restricted by the form factor of the legacy incandescent light bulb.” Luceplan’s luminaires portfolio includes table, suspension, wall and ceiling products for residential applications. The transaction is expected to close in the second quarter of 2010, although financial details of the agreement were not disclosed.

PROVING PERISHABLES ARE FAR FROM DEAD Planetfair Dubai LLC and Messe Essen GmbH have reported 30% growth at this year’s World of Perishables (WOP) and International Plant Expo Middle East trade shows, which will run alongside Dubai Airport Expo from March 8 to 10. The events are organised in co-operation with Dubai Municipality and Dubai Central Fruit and Vegetable Market, which last year received a total of 38,838 fruit and vegetable delivery trucks, an increase of 12% on 2008. The country representing most of Dubai’s imports and re-exports was India, while Saudi Arabia featured as the GCC country with the highest tonnage of exports to Dubai. Companies exhibiting at WOP include Fresh Fruits Co, Unifrutti, BARAKAT Group. Shokri Hassan, Jaleel, Mehtab, Nassar Rifai and Saadi.

DESIGN FIRM TO GROW REGIONAL BUSINESS Interior design practice Aukett Fitzroy Robinson (AFR) expects the greatest impetus for growth to come from its Abu Dhabi office, according to CEO Nicholas Thompson. The company has 11 offices worldwide and three major hubs in London, Moscow and Abu Dhabi. AFR has recently celebrated the completion of the 397-room Radisson Blu hotel and 204-room adjoining Park Inn hotel on Yas Island in Abu Dhabi, for which it was appointed lead consultant, architect and interior designer by project developer Aldar Properties. AFR is currently working on the interior design of two hotels in Abu Dhabi and is tendering for projects throughout the MENA region.

Hotelier Middle East • March 2010

SUPPLIERS

Food safety top F&B trend Government call to action with regard to food safety improvements supported by industry experts at Gulfood 2010, with traceability and product labelling highlighted as major issues ANALYSIS ramatic changes in global food consumption patterns, consumer trends and food manufacturing processes have had a significant impact on food safety which today’s industry professionals must address, a Dubai official has asserted. Speaking at the opening of the fifth Dubai International Food Safety Conference (DIFSC) running alongside Gulfood, the UAE Minister of Environment and Water Rashid Ahmed Bin Fahad called for concerted efforts from all quarters to fight the new challenges in food safety, especially food-borne illnesses. The three-day conference, hosted by Dubai Municipality at the Dubai Convention and Exhibition Centre (DICEC), focused on the topic ‘Food Safety: A Responsibility to Share’. “Recent problems associated with chemical contaminants, pesticides and veterinary drugs have definitely increased the pressure on regulators worldwide to enhance steps to ensure that the foods provided to their people are protected,” said Fahad. “Despite the development and advancement in food testing, disease surveillance and enhanced food safety standards, we still have food safety issues. “The World Health Organisation (WHO) indicated that there are more than 250 different food-borne diseases, more than 30% of the world population is suffering from these diseases and this proves fatal for 2.2 million people annually. “This requires diligent work by all concerned parties to face this problem along the food chain — primary producers, suppliers, manufacturers, consumers, scientists, the media, food control authorities and so on,” Fahad noted. “The federal government has been keen over the years to set laws, specifications, regulations and guidelines

March 2010 • Hotelier Middle East

UAE Minister of Environment and Water Rashid Ahmed Bin Fahad addressed food safety issues at DIFSC.

The panellists at The Gulfood Conference urged F&B suppliers and operators alike to prioritise food safety.

THE FIRST TASK OF THIS COMMITTEE WILL BE PREPARING A FEDERAL FOOD LAW AS PER THE MODERN SYSTEMS AND PRACTICES necessary to ensure food safety and educate the public about the importance of food safety. “This is in addition to providing the technical support to the national establishments which are working in the field of agriculture, animal production, and food manufacturing, in order to improve the quality of their products and to facilitate free trade in food commodities,” he said. Fahad also noted that the Ministry of Environment and Water had

recently established a department specialising in food safety, in order to upgrade safety levels across the country based on global best practices. “This department is concerned with drawing the policies and strategies and unifies the laws and guidelines and ensures their uniform application all over the Emirates,” Fahad said. As a first step, a food safety committee has been established at the ministry which includes representa-

tives from the Ministry and its strategic partners, the Minister revealed. “The first task of this committee will be preparing a federal food law as per the modern systems and practices,” Fahad continued. “This will be followed by unifying the food inspection and control procedures in the country. A food-borne diseases surveillance system will be established, and applied research and studies in the area of food safety will be conducted in collaboration with private sector, universities, and research centres.” Also at Gulfood, a panel of experts speaking at The Gulfood Conference on the subject of ‘The top 10 trends’ concluded that food safety was the key F&B trend to watch out for over the next decade, with issues such as traceability and product labelling being of increasing importance. The panel comprised: Del Monte Middle East marketing director Virginie De Beco; Crowne Plaza Dubai Sheikh Zayed Road F&B manager Alfred Abi Moussa; Convotherm director marine project business Paul Tucks; Halal Industry Development Corporation’s Y Bhg Seri Jamil Bin Bidin; and Zenith International chairman Richard Hall. De Beco said that past scares in the F&B industry meant that product suppliers had to focus now on gaining consumers’ trust. This was especially significant in the halal industry, said Bin Bidin, where traceability was very important. “If at any point along the chain the integrity is compromised, then the product is not halal,” he said. Convotherm’s Tucks agreed, adding that traceability would be necessary in proving food safety at all stages, from delivery to cooking. Abi Moussa concluded that food safety was the “number one trend” and most important aspect to focus on for the F&B industry, with the vast majority of the audience agreeing via a show of hands. HME www.hoteliermiddleeast.com

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• Service and support network across the Middle East

• Experienced hospitality account managers

Premier hotels and resorts in more than 90 countries have chosen Precor as their partner. To find out how we can deliver a superior fitness experience that builds loyalty to your brand, contact your local office:

ABU DHABI · Raymond Sport · Tel: +971 26411403 · E-Mail: office@raymondsport.com

LEBANON · Young Trading Co · Tel: +961 4860148 · E-Mail: young@dm.net.lb

BAHRAIN · Sport Village · Tel: +973 17811995 · E-Mail: info@kaasgroup.com

QATAR · Sports Village · Tel: +974 4501166 · E-Mail: info@kaasgroup.com

DUBAI · Raymond Sport · Tel: +971 43391331 · E-Mail: office@raymondsport.com

SAUDI ARABIA · Kaas Group Company · Tel: +966 14646320 · E-Mail: info@kaasgroup.com

JORDAN · Motion Fitness Equipment · Tel: +962 65866508 · E-Mail: motion@orange.jo

SYRIA · Young Trading Co · Tel: +961 4860148 · E-Mail: young@dm.net.lb

KUWAIT · Sports World · Tel: +965 25757702/25757422 · E-Mail: info@kaasgroup.com

TURKEY · Finspor · Tel: +90 2122597057 · E-Mail: commercial@finspor.com.tr

PRECOR MIDDLE EAST OFFICE · Tel: +971 505577140 · E-Mail: derek.burke@precor.com · www.precor.com

SUPPLIERS

Pioneering procurement The Parker Company is adapting to a hospitality market undergoing significant change, but it continues to attract projects both large and small , says managing director Titus van der Werf COMPANY PROFILE ounded 40 years ago in the US, procurement specialist The Parker Company first entered the Dubai market in 1996, during a time when the first landmark hotels began popping up across the emirate. Nearly a decade and a half later the firm continues to perform well, supplying a variety of hotels from luxury ‘seven-star’ resorts to budget hotels. Titus van der Werf, The Parker Company managing director and partner for Europe, Middle East and Africa, comments: “We came here to do procurement under a completely new philosophy. “At the time all procurement was done on a commission basis and The Parker Company works only on a flat fee basis; back then this was a new concept and was somewhat unique to the Middle East.” After completing its first four projects in Dubai, The Parker Company became an independent freezone company and began its expansion into other growing Gulf markets, including KSA, Kuwait and Qatar. “Somewhere around 2003 and 2004 the big boom started and we got involved in major projects, including Madinat Jumeirah and Atlantis The Palm,” remarks Van der Werf. “The company grew to 40 specialists, all working on between 10-15 projects; that’s what we continue to do today.”

The company is already working with budget hotel brands such as Ibis, Novotel and Pullman. As Van der Werf notes: “It’s beautiful to do the Armani Hotel in the Burj Khalifa, which took a lot of effort, but we should never forget that we can serve our four-star hotels at least as well and as efficiently”.

ABOUT TITUS VAN DER WERF Titus van der Werf has been working with The Parker Company for 15 years and last year featured in Hotelier Middle East’s Power 50. Before joining the firm he was a senior executive with Golden Tulip Hotels, Holiday Inns International and InterContinental Hotels. He has worked in the US, South America, Europe and the Middle East.

March 2010 • Hotelier Middle East

CLIENT RELATIONSHIPS

The Parker Company managing director and partner for Europe, Middle East and Africa Titus van der Werf.

The firm is divided into two segments: the furniture, fixtures and equipment (FF&E) division, and the operating, supplies and equipment (OS&E) division. There is a 60-40 split in favour of the FF&E division in regards to resources. “On average we work about 18 months per project from start to finish,” explain Van der Werf. “But we do more than just procurement; we source procurement, solve logistic issue, and organise warehouse management and installation for hotels.” As a global company Van der Werf says that the firm has a big reach supplemented by a state-of-the-art online data system that connects the Dubai office with the company’s other offices around the world. “I think this gives us an edge,” he asserts. “With 14 years of experience in this region and having worked with virtually all developers and operators, our clients understand us very

well and know what to expect from us. Whether we are delivering a project in Windhoek, Namibia, or Doha, Qatar, the logistics of delivering the product is not such a challenge as we work with very reputable shipping companies and experts to make sure it all gets there on time.”

MARKET DIVERSIFICATION Van der Werf says that the biggest challenge during the global financial crisis has been maintaining service levels while the market restructures. “We did everything to maintain our staff levels and the challenge now is to adjust the organisation and the operation to a new situation,” he observes. “I believe the market will shift to more affordable lodging, which means the scale of properties will go down; instead of five-star resorts, it might become four-star hotels, which means we have to adjust to that new market situation.”

Van der Werf says he believes “very strongly” in personal relationships with his clients. “We make sure our procurement system is available to our clients,” he notes. “The clients can be completely involved or have access to our procurement process. We love to educate our clients and by making the system available to them we ensure they are actively involved. “On a monthly basis we issue management reports on a project to show the client what has been achieved and this also alerts our clients and ourselves to what might be a reason for concern. It is a pro-active report and informs the client on what actions to take and consequences that might result in a delay.” Van der Werf also says that the company likes to meet clients face to face. “We want to sit at the table with our clients, because only by sitting at the same table as our clients do you get to an efficiency level that avoids lose of time and energy,” he notes. “Communicating is the name of the game — we have to communicate and must be pro-actively prepared to keep our clients informed.” HME

COMPANY INFO COMPANY: The Parker Company ESTABLISHED: 1974 (worldwide), 1996 (Dubai) TEL: +971 4 360 2995 FAX: +971 4 366 4040 EMAIL: tvdwerf@parkerinternational.com WEB: www.parkerinternational.com

www.hoteliermiddleeast.com

SUPPLIERS

High-life leisure Located 11 storeys high at Bonnington Jumeirah Lakes Towers is a leisure deck with a difference, offering views most Dubai hotel pool areas will struggle to beat; Hotelier Middle East takes a closer look at the dizzy heights of recreation design FITTED OUT ituated in the heart of Jumeirah Lake Towers in Dubai, the recentlyopened Bonnington Jumeirah Lakes Towers is home to one of Dubai’s more unique pool areas. Stretching out across three open sides of the building, the property’s leisure deck is conveniently positioned on the 11th floor of the hotel and apartment complex. Offering a mixture of relaxation and fitness options, the deck can be used by both hotel guests and residents of the tower, and is sandwiched between the residential section of the tower above and the hotel below. “This area is one of our unique selling points,” claims Bonnington Jumeirah Lakes Towers director of operations Martin Kubler. “It provides guests who are arriving with an instantly recognisable feature. “I regularly speak to people who say they were looking for this building and claim they saw it because of the leisure deck; especially in the evening when the whole space is lit up blue,” he says. The deck splits into several sections that include a bar, pool, children’s play room and the indoor facilities, which comprises a gym, salon, saunas and steam rooms. But the real selling point is the pool, which offers dramatic views out across Jumeirah Islands to the south and the skyscrapers of Dubai Marina to the north. Bonnington executive housekeeper Annabelle Thiébaut notes: “The fact it is an infinity pool means it will be very enjoyable when all the buildings in Jumeirah Lake

March 2010 • Hotelier Middle East

Towers are finished; especially with the full opening of neighbouring Almas Tower. “During the week it’s quite a quiet area,” she adds. “But the deck gets busier between 5pm and 6pm as people return from work. “There’s a very nice atmosphere generated here and it’s great area to meet your friends and colleagues.” One of the biggest benefits of the deck is what it offers guests and residents during the summer months. Kubler explains: “In the summer, when normal hotel pool areas can get very hot, this isn’t the case here as you’ll always have a nice breeze blowing through the deck; therefore it’s far more acceptable to guests than other pool areas.” HME

PLANTLIFE Adding colour to the granite-clad pool area are these miniature palms supplied by Bonsai Tree Garden; Bonsai Trees also adorn the reception desk.

TAKE A SEAT The bar area is separated from the pool area, adding an extra dimension to the deck. The furniture was supplied by Dedon.

www.hoteliermiddleeast.com

These Dedon orange sunloungers add a touch of colour to the pool deck. MEP firm Bilt Middle East worked on the pool design.

LEISURE GALLERY These paintings in the deck’s lobby caught Hotelier’s eye by adding a touch of vibrancy to the marble walls. These prints were supplied by Four Seasons Ramesh Gallery.

KEY SUPPLIERS Four Seasons Ramesh Gallery www.fourseasonsgallery.com Dedon www.dedon.de

www.hoteliermiddleeast.com

KEEP FIT

Al Kamda Trading www.alkamda.com

All equipment in the compact, but fully-functional gym, was supplied by Al Kamda Trading.

Bonsai Tree Garden Landscaping www.bonsailandscapinguae.com Bilt Middle East www.bilt.ae

Hotelier Middle East • March 2010

SUPPLIERS

CATCH SOME RAYS

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 VLH_1491_Anz_UrbNat-225x300.indd

03.03.2010

15:49:18 Uhr

65 PRODUCTS

Get a good night’s sleep A quality bed can make all the difference when it comes to guaranteeing guest satisfaction. Experts discuss current trends affecting the bedding industry and offer some constructive advice on how to ensure your guests have a fantastic night’s sleep and a comfort-filled stay

FRETTE

DUBAI FURNITURE MANUFACTURING COMPANY Founded in 1993, Dubai Furniture Manufacturing Company (DFMC) supplies and manufactures two US bedding brands — King Koil and Serta. Manager marketing Tony Thomas says: “We have a large client base and have supplied mattresses to leading hotels and hospitality chains. “King Koil enjoys more than 60% of the market share and along with Serta enjoys top-of-the-mind recall in both the hospitality and retail segments.” In 2001 the company acquired the licence to market and manufacture products by US mattress company Serta in the Middle East. Thomas cites environment friendly initiatives as being one noticeable trend within the beds and bedding industry. “We maintain strict standards in this regard,” he asserts.“One such effort by us in this regard is the use of Mega Foam as a raw material in the manufacture of mattresses. “There are different types of foam available in the market today and during the manufacturing process of some types of foam, harmful agents

can be released into the atmosphere that affects the ozone layer,” he explains. “As a result, we use German technology and manufacture Mega Foam, thereby avoiding the use of methylene chloride — an ozone depleting substance.”

Contact: Dubai Furniture Manufacturing Company Web: www.mattress-leader.com

Dubai Furniture Manufacturing Company

PRODUCT HIGHLIGHTS Best sellers: King Koil and Serta are two of the leading brands within the industry,”says Thomas. Top tip: Check whether the supplier has a manufacturing facility locally — this will save a lot of time and energy as the buyer can expect faster service.

PACIFIC COAST FEATHER COMPANY Pacific Coast Feather Company (PCFC) vice president — Asia Pacific Joana Zhang says the latest craze in the hotel industry is to give guests the chance to select their favourite type of pillow. “Generally speaking, each hotel room is fitted with at least two pairs of pillows with either different density or filling types,” she explains. “Some hotel guests, however, would prefer to find a perfect pillow match during their stay to enhance bedtime comfort.” As a result the US-firm has developed its own pillow menu that includes options such as a body pillow, a reading pillow and a baby pillow. With 126 years of history, PCFC combines a heritage of craftsmanship with leading-edge innovations to create comfortable and beneficial bedding products. The firm is currently placing more emphasis on the European and Middle East hospitality markets and is working with a range of international hotel groups. Zhang notes: “We have worked very closely with top international hotels to help them strengthen their brand awareness and improve their guest satisfaction through special sleeping programmes, such as ‘The Brand

Bed’ programme for Hyatt,‘The Revive Bed’ programme for Marriott and ‘The Serenity Bedding’ programme for Hilton.”

Contact: Pacific Coast Feather Company, Asia Web: www.pacificcoast.com

For the hospitality sector EF Gulf,exclusive distributor of linen manufacturer Frette, has attempted to bridge the gap between supplier and client by developing its Hospitality Linen Solution. EF Gulf managing partner Malak Loeb comments:“This will constantly ensure the clients know that we offer only the highest quality and production standards within the industry. “It maintains an open communication system with the clients,giving both sides of the business transaction updated feedback for every inquiry. “In this process the clients also become a part of the manufacturing process,giving them more confidence and trust in the system,”she explains. EF Gulf was created by International Guest Supplies (IGS) in 2008 to distribute Frette’s high quality linen products across the GCC. “We are always looking for new ideas and creating new product ranges,”notes Loeb.“Personally I prefer to customise a different line for each hotel as it gives us the opportunity to be creative and not fall into the routine of supplying the same product with the same specifications in regards to thread counts. “The most obvious trend that we have noticed Malak recently was our client’s Loeb. requirement to get value-for-money for the product they are procuring,” she added.

Pacific Coast Feather Company vice president Asia Pacific Joana Zhang.

Contact: EF Gulf General Trading Web: www.efgulf.com

PRODUCT HIGHLIGHTS Bestsellers: Restful Nights basic bedding products have been designed, tested and engineered to withstand the long-term uses of the hospitality environment; PCFC claims the products already feature in one million hotel rooms worldwide. Top tip: Catering to the pillow preferences of hotel guests could generate more repeat visits.

PRODUCT HIGHLIGHTS Best-sellers: To commemorate its 150th anniversary, Frette unveiled a contemporary limited edition bed set, which is presented in two models: the Gala and Gioia Collections. These limited edition sets are presented in a special antique ivory coloured box. Top tip: The most important thing for a hotel procurement manager is to select and recommend a reliable supplier with a reputable name and a strong background.

For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274.

www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

PRODUCTS

66 Beds by Swedish furniture producer Duxiana.

DUXIANA Many people mistakenly believe that a hard or firm bed is best suited to the human body,claims Cyngbel president Panicos Panayiotou. Panayiotou,who runs the company behind Swedish furniture producer Duxiana’s presence in Dubai,says:“This myth appears to be difficult to dispel,which is regrettable,since it keeps many people with back and sleeping problems from experiencing a more comfortable and beneficial night’s sleep. “Backaches stem from bad posture and we sleep incorrectly if the spine is not levelled horizontally.” Panayiotou explains that the ideal bed does not have to be soft or hard as the human body is naturally curved. “It should be pliable, supportive and feel comfortable, while adapting to the natural contours of an individual’s body,” he asserts. Duxiana has been making beds since 1926 and has a separate product line designed specifically for hotels. Three basic models make up the line,each available with three different types of top pads that offer a variety of options and combinations.

Duxiana is a strategic partner with organisation The Leading Hotels of theWorld and stocks available through its Dubai Mall store ensures delivery can take place within 72 hours of ordering.

Contact: Duxiana — Dubai Web: www.duxiana.com

PRODUCT HIGHLIGHTS Best sellers: The most popular model from Duxiana is the DUX 8888, which comes with adjustable lumbar support, while the DUX Delight model is available in a ‘split-able’ version allowing the bed to be converted from one king-size bed to two single beds in 10 minutes. Top tip: The right bed should be comfortable and allow the muscles to relax to facilitate a deep sleep.

SIGNORIA HOSPITALITY Despite starting life as a retail product manufacturer for the luxury market, Signoria Hospitality moved into the hospitality segment and began producing products to meet differing demands within the market.

According to GCC sales manager MS Bipin, Signoria understands the diversity in customer tastes and says that the firm currently has a focus on business guests at hotels. “Business guests are larger in number compared

to tourists in the Middle East,and these busy people are more concerned about bedding than other luxury amenities in a hotel,”explains Bipin. “This situation led the Middle East hoteliers to adopt higher specification beddings; for example

many hotel chains upgraded to 300TC bed linen in their Middle East properties when compared to their American and European properties.” Bipin cites the example of Banyan Tree Al Wadi, which uses 600TC dobby design bed linen.

PRODUCT HIGHLIGHTS Best sellers: Signoria’s single-pick construction bed linen uses yarns manufactured from long-staple Egyptian cotton, which enables the company to provide a one-year replacement warranty for any manufacturing defects. Top tip: Selection of any linen or bedding item at a hotel needs proper coordination and consideration from the purchasing manager, the housekeeping manager and the laundry manager. Above: Signoria Hospitality GCC sales manager M S Bipin; left: Signoria provides bedding to a range of hotels.

Contact: Signoria Hospitality Web: www.tuscanylinen.com

For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274. .

March 2010 • Hotelier Middle East

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67 PRODUCTS

DELBANCO MEYER Restonic sales manager Sameer Ahmed.

RESTONIC Restonic has been supplying mattresses for more than 60 years and the company remains focused on offering quality bedding products, ranging from budget offerings to the latest luxurious creations. Restonic sales manager Sameer Ahmed says one of the major trends he has witnessed in the past few years is a rise in interest from hotels in investing in high-quality pocket spring beds. Ahmed says many hotels are opting for these models in order “to differentiate themselves from competitors and because they expect a good return on investment”. From its state-of-art factory in Jebel Ali, Restonic is able to cater to the growing demand from new hotel developments in the region as well for existing hotels. “We give our clients a personal touch and work on samples to help them understand the benefits of a good mattress; this generates a sense of confidence in the customer,” explains Ahmed. “Restonic has a longstanding tradition of research and innovation,” he notes. “Our emphasis is on delivering high-quality

sleep products in the region, engineered to the needs of the customers. “We have designed mattresses with pocket spring, plush top and non flip mattress, memory foam and latex combinations,” concludes Ahmed.

Contact: Restonic Web: www.restonic.ae

PRODUCT HIGHLIGHTS Best-sellers: Loveland Pillowtop non-flip mattress and Crystal, which both feature quality pocket spring units. Top tip: Hotels should ensure high-quality beds offer comfort, durability and an extended warranty of up to 10 years, for a reasonable return on investment and value for money.

Through the knowledge it has gained in its 70 years of supplying high-end linen and bedding,Britishbased Delbanco Meyer (DMC) is out to dispel a few bedding-related myths. Available to Middle East customers through RWN Trading,its duvets and pillows are 100% natural and allow the skin to breathe for added comfort. DMC has worked to dispel what RWNTrading marketing director Carol Prince describes as“a few myths regarding care and washability of feather quilts and duvets”. Prince notes:“It is a mistaken belief that,while synthetic quilts are washable,natural quills are not. “Ducks and geese spend most of their life on water and any natural quilt can be washed,but it has to be properly dried. “Because ducks and geese are designed to get wet on a regular basis washing is a process in which their feathers and down are ideally suited — if a natural quilt is dried properly it can be washed time and time again without ill effect,”advises Prince.

Bedding from Delbanco Meyer in the UK.

PRODUCT HIGHLIGHTS Best-sellers: Goose Down Surround pillows provide the luxury and softness of a goose down pillow, but with the added benefit of support from a core of feathers. Top tip: The most important part of caring for a natural quilt is regular and thorough airing.

Contact: RWN Trading Web: www.rwntrading.com

For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274.

www.danube-international.com

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Hotelier Middle East • March 2010

PRODUCTS

Product guide: soft furnishings This month Hotelier presents the products that provide the finishing touches to a hotel’s design

Perennials Fabrics Tel: +1 888 322 4773 Web: www.perennialsfabrics.com

Home Essentials Tel: +971 4 8830 111 Web: www.continentalsourcing.com ESSENTIAL ORIENTAL Presenting an innovative and economical way to refurbish hotel rooms, Home Essentials has hundreds of products and designs including this Oriental Table Lamp by Eureka. The firm also offers clients financing and custom-made items.

Pierre Frey Tel: +971 50 798 6704 Web: www.pierrefrey.com

MAJESTIC BEDSIDE Taillardat’s 200-strong collection of high-end furnishings now includes the Blandine bedside table, which is designed in the Louis XVI style and includes three drawers. The furniture is distributed by Pierre Frey.

MORE AMORÉ Perennials Fabrics has combined 15th century elegance with a modern approach in its More Amoré collection. With Florence-inspired colours and textures, the collection includes the jacquard-woven surface of ‘Tried & True’. BSH Walls and Floors Tel: +971 4 887 2664 Web: www.jj-invision.com BONUS ON PAYDAY Payday is the latest addition to J+J/Invision’s Lucky Break Collection of fabrics. It consists of an all-loop texture, and has a woven and grid-like quality. Created with several tonal and subtle multi-coloured space dyes, Payday also utilises Encore SD Ultima nylon. It is available in both broadloom and eKo PVC-free modular backing.

Arturo Álvarez Tel: +34 981 81 46 00 Web: www.arturo-alvarez.com GO WITH THE FLUO Designed by Arturo Álvarez, the Fluo lamp has been awarded a Good Design Award by The Chicago Athenaeum Museum of Architecture and Design. Made from steel, this suspension lamp is available in a white, black or RAL Classic finishing.

For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274.

March 2010 • Hotelier Middle East

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69 PRODUCTS

Celerie VII Tel: +1 866 794 7979 Web: www.valtekz.com FABRIC SELECTION Celerie VII, a selection of luxury composite fabrics by Valtekz, is a collection consisting of three patterns. Items from the range are available in 22 vibrant colours and the three different patterns to select from are Glassed Dragon, Glassed and Ages Gracefully.

RWN Trading Tel: +971 4 304 2391 Web: www.rwntrading.com FROM COTTON TO CASHMERE Nitin Goyalâ&#x20AC;&#x2122;s new collection of throws and cushions features a range of textured luxury designs in fine silk, cotton, linen, cashmere, wool and velvets in a colour palette of lavender, ivory, cream, beige, brown, buttermilk, red and mocha with a touch of gold. The range is supplied by RWN Trading.

For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 435 6274.

www.hoteliermiddleeast.com

Hotelier Middle East â&#x20AC;˘ March 2010

PRODUCTS

Products: pick of the month Hotelier Middle East brings you a selection of the latest products to hit the hospitality marketplace VILLEROY & BOCH MIDDLE EAST Tel: +971 4 3642613 Fax: +971 4 3688419 Web: info.me@villeroy-boch.com COFFEE CONVENIENCE The Schaerer Coffee Vito is the latest model from coffee machine manufacturers Schaerer. The new machine joins the company’s fully automatic range and replaces predecessor, the Schaerer Coffee Factory. Fresh or powdered milk versions offer up to 15 different beverages with a footprint of just 33cm and it comes with a variety of chocolate options.

TAKE THE SUBWAY The Subway sanitaryware collection, from Villeroy & Boch has been extended to include a new WC and a new bidet. Both wall-mounted items are part of the Subway 2.0 collection and incorporate a modern design under the motto “less is more”. The full range comprises 40 components, and offers architects the attractive option of integrating pure design into individual planning concepts.

SCHAERER (MIDDLE EAST) Tel: +41 32 681 6216 Email: jennifer.sims@schaerer.com Web: www.schaerer.com

ENTER THE VORTEX The design of Zodiac’s Vortex 3 pool cleaner has been awarded 15 patents. The angle of the motor acts as the determining factor in its effectiveness and by changing the pump motor and hydraulic flow positions, Zodiac’s engineers succeeded in creating the first pool cleaner based on vortex technology. The vortex effect creates a powerful whirlpool inside the filter and the debris remains in suspension to prevent clogging. The pool cleaner comes with a two year warranty.

MAK POOLS Tel: +971 4 3232 958 Email: pools@makpools.com Web: www.makpools.com

A.RONAI Tel: +971 4 341 4409 Fax: +971 4 341 4457 Web: gavindodd@ronai.co.uk FLEXIBLE ILLUMINATION The Flexilight range is the latest addition to A.Ronai’s extensive hospitality equipment portfolio. Suitable for a variety of locations within the property, Flexilight products are liquid candles available in a selection of attractive and practical holders.

For more information on Tech Talk, contact hotelier@itp.com or +971 (0)4 435 6274.

March 2010 • Hotelier Middle East

www.hoteliermiddleeast.com

KETTAL SA Tel: +34 93 272 36 95 Email: press@kettal.es Web: www.kettal.com

PRODUCTS

URQUIOLA’S LATEST DESIGNS Kettal has included two new fabrics designed by Patricia Urquiola in its 2010 catalogue. Kernel Brown and Paddock Brown, part of the Kernel and Paddock ranges, are made from an exclusive PVC-acrylic mix. These new fabrics designed combine the advantages of Porotex with the soft feel of chenille and are resistant to outdoor elements.

MAGICSHOWERHEAD Tel: +1 626 257 1188 Web: www.magicshowerhead.com CLEAN IN COLOUR MagicShowerhead’s patented technology uses LEDs to turn an ordinary shower into an illuminated waterfall and is available in seven different colours. This environmentally-friendly product doesn’t use batteries or electricity to function as water pressure drives the illuminating experience.

For more information on Tech Talk, contact hotelier@itp.com or +971 (0)4 435 6274.

www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

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• News • Analysis • Innovations • Trends

Acentic opens Middle East office in Dubai Langham Hotels launches Digital interactive TV company to launch Panorama

voice-enabled iPhone app

Germany-based digital TV supplier Acentic Group has launched Acentic Middle East with the opening of a new office in Dubai. The regional arm of the company, headed by directors Rene Mieritz and Prem Kumar, is designed to better serve Acentic’s existing hotel chain customers in the Middle East and expand its international accounts beyond Europe. It will also launch a “new Acentic Panorama IP inroom hotel entertainment platform dedicated to the Middle East by Q2, 2010”. The 17-strong Acentic Middle East team is being trained on the technology at the Cologne headquarters, although Acentic would not reveal in what ways the product would be “dedicated” to the Middle East. Acentic CEO Allistair Forbes said: “Panorama can offer hoteliers a complete solution with consistent look and feel with numerous possibilities to cater to all existing and new technologies in terms of hotel network

Langham Hotels International has launched Langham Touch, an iPhone application that offers voice-enabled travel phrases designed to ensure the guest will never get lost in a city where there’s a Langham property. Langham Hotels International vice president — sales & marketing Bob van den Oord said: “With Langham Touch, guests will find another innovative way to manage their stay with us from pre-arrival to departure. From the voice-enabled dialogue and city guides through to wake-up calls, we’ve created an app that’s easy to use and relevant to today’s business traveller.” Thevoice-enabledphrases, which include directions to the hotel from virtually anywhere in the city, form part of a suite of services that can be accessed at the touch of a screen — allowing users to see and hear the phrases in the city’s local language. It also features a hotline to the local Langham property. Langham Touch is an all-in-one application that

plans, existing hardware and further IT applications in line with the existing running networks. “Using Panorama’s wide offering spectrum such as HD and IP, hoteliers get a customised solution with the latest technology regarding content transmission from both sources, internet and satellite, as well as high speed internet connectivity,” he explained. Forbes said that the main benefits to hoteliers were: the use of industry standard

architecture, use of industry standard hardware and protocols, the fact Panaroma is in line with TV manufacturers’ road maps; and the IPTV headend, which enables free-to-air TV independent from Pay TV. Acentic Middle East is currently “developing a detailed distribution plan to serve the Middle East countries,” added Forbes The company expects to manage nine main affiliated distributors with 50 employees in total.

Acentic has already developed the ‘weather module’ for Starwood’s Westin Hotel brand.

Langham Touch is an all-in-one applications created especially for iPhones.

enables the guest to search and view all vital location information without going online, which will save heavy international roaming charges, the company said. Compatible with iPhone and iPod Touch, it includes a mini-city guide and insider tips for attractions, restaurants and bars. Members of the 1865 loyalty programme can also check their membership account details and update their personal information. The iPhone app also includes hotlines for room reservations via toll-free lines, essential hotel information, as well as the ability to order room service, ask for a wake up call and make restaurant reservations.

Schneider Electric opens virtual hotel test centre in Dubai Energy management specialist Schneider Electric has launched a new Hotel Competency Centre in Dubai to enable clients to test its hospitality sector solutions in a virtual hotel environment. Schneider Electric Middle East buildings solutions manager — hotels Rajeev Abra-

www.hoteliermiddleeast.com

ham said: “Our competency centre allows hotel operators to simulate various possibilities, well in advance, before they can be tested out at site. Our team of trained specialists can assist them in developing an optimal solution for their unique situations. With hospitality making up a large

part of the local economy, it is important that professionals within the industry have the best training to ensure complete safety and comfort for their customers”. The Competency Centre contains a virtual corridor, meeting room, guest room and a plant room, and has

various working systems that include integrated building controls, security, IT, power distribution, and energy management solutions that are used in hotels. Solutions that are demonstrated in this facility are designed to optimise capital and operating costs.

They include: building automation (HVAC); guest room automation; room connectivity solutions; LED lighting; energy efficiency solutions; lighting control; security; audio visual solutions; power distribution; power monitoring; and voice data solutions.

Hotelier Middle East • March 2010

TECH TALK

Don’t be confused by convergence In the first of a series of technology analyses from Mövenpick’s regional IT guru Roger McFarlaine, hoteliers come under fire for a lack of foresight. Future trends are just around the corner, not light years away — and there’s more to technology investment than dollars and cents, says McFarlaine

IT EXPERT remember being laughed out of a boardroom 10 or so years ago when I suggested investment in convergence technology. I realised then that the education process of future technology trends must start now — so fast-paced is this sector that the developments we think are 25 years away inevitably turn out to be just five years round the corner. Convergence technology is one such trend, and I am pleased to say that those that laughed at me soon returned with heads hung as they accepted it would be a huge asset for hotels. For those that might still ask what convergence technology is, I can only reply ‘where have you been during the noughties’? In brief, a converged network enables the deployment of many IT services on a single cabling architecture/network. For example, it is possible to run services such as data, voice, IP TV, CCTV, WiFi, BMS and multimedia on one cabling architecture regardless of their manufacturer. In my view, it is common sense and good business that such services be leveraged off the existing infrastructure and core technologies.

NEXT MONTH Next issue, McFarlaine will expand on the hot topic of digital profiling as he introduces ‘Roger’s G2’ to Hotelier Middle East readers.

March 2010 • Hotelier Middle East

Hotel chains and GMs should not be wary of such technologies and big buzz words, but rather embrace it as a product differentiator amongst those in their competitive set. Maximising internet use and service is one way of setting your hotel ahead of the competition. For me, it is clear — providing broadband connectivity anytime, anywhere across the property is a strategic imperative across the industry. Today’s business travellers aren’t willing to slow down because they are not in the office and leisure guests expect to be able to share their experiences with loved ones through technology. Wireless capabilities have become more widely deployed across devices and as a result, guests will increasingly expect to be able to access information and resources wherever they are. Broadband connectivity also provides an infrastructure for hotel employees — such as event coordinators, maintenance and security personnel — to stay connected and thus be better able to respond to day-to-day challenges or emergency situations. One such example of this process intuitive service is ‘one-stop-shop guest request tracking’, whereby a call received at a central service centre can be forwarded by a service representative to a ‘runner’ (equipped with a WiFi device anywhere in the hotel complex), who can service the request within minutes. This is the sort of service that sets a hotel apart from the competition. With such an example, ROI should not be viewed in terms of dollars and cents alone but from many intangible rewards e.g. word of mouth, product differentia-

tion and a competitive edge amongst those in our competitive set. Recent findings and word from the field is that programmes like this one have improved hotel operational efficiencies by 100%. Hotels can’t afford to ignore this; it’s time to look at the middle line. To date, hoteliers have been very oneeyed, lacking the foresight to see what

web-based multimedia information at the finger tips of their guests. For example, special promotions could be offered such as discounts to loyal guests on spa services during offpeak hours and accepted via a touch sensitive colour screen phone. These primary in-room communications vehicles become ‘virtual concierges’ that enable enriched func-

PROVIDING BROADBAND CONNECTIVITY ANYTIME, ANYWHERE ACROSS THE PROPERTY IS A STRATEGIC IMPERATIVE ACROSS THE INDUSTRY is going to happen down the track. Remembering that dollars and cents are just a small part of the picture will help the industry analyse the demand for technology more objectively.

INCREASED INTEGRATION This brings me to IP Telephony, which enables new phone-based services. It is an emerging technology that will be here to stay in the luxury hotel segment. With screen-based IP phones, there is now a more friendly approach to putting hotel personnel, services and any

tionality like city maps and points of interest, internal and external advertising (as forms of direct and indirect revenue generating opportunities). These complement IP TV for video on demand, music on demand and online games, to name just a few, providing a holistic approach to enhancing guest experience. In my view the strategy for new hotels and hotel projects should be to look at greater

Multimedia information needs to be at a guest’s fingertips.

www.hoteliermiddleeast.com

75 TECH TALK

music on demand and online games, to name just a few, providing a more holistic approach to enhancing the guest experience. In my view the strategy for new hotels and hotel projects should be to look at greater levels of integration of applications and services with property management systems and the room environmental control system including temperature control, air circulation, lighting, and curtains. This not only personalises a guest’s room to their likings during their stay, but actually saves the hotel monies in operating costs by way of more efficient use of room lighting and air conditioning. And yes, this also means that this technology will make your hotel greener, but that is a subject for another column.

the physical attributes of the hotel room and its associated ‘physical’ environment. The above examples demonstrate just that. Delivering rich and easily accessible ‘just in time’ service to its guests will set a hotel apart from the competition, while tapping into new revenue opportunities If hotel general managers and IT professionals are only now starting to think about the aforementioned then they have missed the boat. It is imperative all are on board because network convergence is a reality in the hospitality industry and the strategy to leverage this technology is pivotal if a hotel chain is to delight its guests and stay ahead of the pack. HME

GUEST RELATIONS But why all the hoopla for network convergence and this new generation of technologies? For me, the answer is simple; it’s all about the experience we provide and guest recognition. The aforementioned can be encapsulated by my favorite buzz word at the moment; digital profiling. Digital Profiling not only addresses guest preferences such as pillows, preferred wines and newspapers but addresses

ABOUT ROGER MCFARLAINE Mövenpick Hotels & Resorts vice president technology Middle East and Asia Roger McFarlaine has been an IT professional for close to 30 years, with experience ranging from computer operations, development and systems management. As at one with the hotel industry as he is with technology, McFarlaine has worked across the world and also held regional positions with Marriott Hotels & Resorts and InterContinental Hotels & Resorts. In his current role, McFarlaine manages a team of 23 IT managers and develops Mövenpick’s regional IT strategy, implement MIS/IT area strategic plans for existing and upcoming hotels, lead the development and deployment of network convergence and cabling architecture and further develop the in-room technology concepts. A self-confessed hotel technology geek, McFarlaine aims to “lead the pack”, firmly believing that the technologies we think are 25 years away are actually going to be with us in under five years — meaning now is the time to invest for the future.

www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

TECH TALK

Sizing up point-of-sale software RWN Trading’s marketing director, Carol Prince, advises hoteliers to consider extending their POS systems across less traditional departments to get the most out of their investment, and reveals that while a good POS system can work wonders, an ill-suited version may harm business ANALYSIS What factors should be taken into account when choosing a Point of Sale (POS) system? Carol Prince: Deciding on which is the best-suited POS system for your business can have a huge impact on how your company continues to function. Purchase the correct one and the system will be enhanced, choose badly and the opposite may occur. A POS software solution is not a simple add-on to your existing accountancy or employment management systems — a good POS package will allow your business to run more efficiently and will be streamlined effectively in all aspects of company management including: employment management, record keeping, F&B management, ordering and receiving, accountancy, man-management, entertainment , leisure facilities and traffic flow management. For example, NFS Hospitality POS solutions offer in effect a turnkey POS solution from consultancy, wireless networks, hardware, cabling, a hosted ASP central data management and a 24/7 Help Desk offering support and extensive systems and integration expertise. What are the newest technological trends in POS systems? CP: As with all technology, across the board changes happen almost weekly — systems are being enhanced, they run faster or more efficiently, and offer upgrades bells, whistles and exciting new interfaces. It is of course important to keep up with the newest trends but equally it is important to decide to work with POS software or Property Management Systems (PMS) that have the ability to grow with your company needs and also one that offers customer support services. March 2010 • Hotelier Middle East

RWN Trading’s Carol Prince.

A POS SOFTWARE SOLUTION IS NOT A SIMPLE ADD-ON TO YOUR EXISTING ACCOUNTANCY OR EMPLOYMENT MANAGEMENT SYSTEMS What trends should hoteliers in the process of upgrading their POS software consider? CP: Hotels which are considering upgrading their systems should not only look at the obvious areas

for using POS but consider using it across all departments. Maybe the NFS scheduling software, which is based on browser technology, would be of benefit. It provides a complete toolkit of room booking software

and is a powerful scheduling tool for audio/visual, catering and visitor management. Other packages to be considered are spa software, loyalty card facilities, RM 2000 central reservation system (CRS) web bookings and internet reservation systems (IRS), plus our new Workspace solution which offers Outlook scheduling and advanced hotel functionality. Hotels should be always thinking ‘how can I get the best out of my POS system’ and ‘how is it going to help make us more proficient’. There may be some business owners or managers who will baulk at the costs of installing a POS solution but there is no getting away from the fact that by being able to run a more accurate outlet will mean less mistakes, less shrinkage and reducing these mistakes which are in reality losses. Why is it important for your POS system to integrate with other software systems in the hotel? CP: If you are running a hospitality operation then there are obviously

NFS HOSPITALITY NFS provides solutions for hotels (RoomMaster), conference venues (Rendevous) and restaurants (Aloha) plus golf and spa options. Customer care is a key element of the NFS philosophy, which has a client base of more than 1000 and offers 24/7 support. NFS is also a Microsoft Solution Provider and IBM Business Partner. RWN Trading is NFS’s agent in the UAE and Middle East. CONTACT RWN Trading LLC +971 (0) 4 304 2391 www.rwntrading.com www.nfs-hospitality.com

Denver’s POS system has been designed to be simple to view.

www.hoteliermiddleeast.com

77 TECH TALK

DENVER Denver Research has created a POS solution that is simple in view and also in application. The viewing panel of the POS screen is direct and very easy to use and understand with minimal training. The system allows you to adapt, add or remove features to have a screen to suit your particular needs — many hotels have multi F& B establishments within

Raffles’ Dima Ayad takes a modern approach to CRM. Hotels can add or remove features on Denver’s POS system.

multiple technology components to deal with, from an F&B operation serving the customer at the point of sale, to managing your cash in the back office, to taking inventory of stock, to organising large parties, and reviewing sales figures in detailed reports at head office. The

whole purpose of PMS and POS is to provide better management capabilities and facilities — to have better control of how departments are performing, where the up-sales are and of course where the pitfalls are. If you have a number of standalone solutions which do not have the

ability to integrate with other operating systems then the concept of good time management and reporting skills will be lost. It is important to look also at what a POS solution can offer in the longer term; for example with RoomMaster, the guest data is ideal for understanding your guests and establishing a positive relationship so that in the future they return to your hotel. It does not matter if your guest checked out last week or last year, all the information is readily available.

a single site so it can be adapted according to each operational outlet. The Denver POS system is distributed by RWN Trading. CONTACT RWN Trading LLC +971 (0) 4 304 2391 www.rwntrading.com www.denverresearch.com

With the RoomMaster guest history, you can securely modify past charges and reprint any folio with ease. As a marketing tool, the reports which we can reproduce from the right POS system are invaluable. No matter what hospitality department you are in, we are all having to work harder and smarter during these challenging times and if by integrating our lines or reporting communication and business flow, we must surely be in a stronger position than those that don’t. HME

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Hotelier Middle East • March 2010

• News • Trends • Analysis • Hotel listings

Oman needs more boutique hotels says expert Deloitte’s Rob O’Hanlon says country must focus on offering a “unique experience” for tourists DEVELOPMENT The prospects for Oman’s tourism industry are very positive, as long as the country remains focused on promoting its “unique geography, unique culture and unique experience for tourists”. That is the view of Deloitte and Touche Middle East partner for tourism, hospitality and leisure Rob O’Hanlon, who was speaking at last month’s Gulfood Global Trends conference in Dubai. O’Hanlon said: “I believe we are going to see a lot more boutique-type hotels expanding right through the country. That’s what people want – they’re looking for an Oman experience. They don’t want to be in Muscat seeing people like me walking about in a suit when they can do that anywhere in the world, they want to go out and see and engage with people. “The government is taking some really big steps, things like introducing high speed ferries so that people can actually see the coastline – we have 1700km of Indian ocean coastline and have to make that more easily accessible,” said O’Hanlon.

Al Haditha’s Mehdi M Jaffer and IHG’s Daniel Norman.

“We are looking at a clear clientele of the medium to high income range that will appreciate the beauty of the country and the history and culture that comes with it”. However, she said that “we do need more alternatives” where accommodation is concerned. Mehdi M Jaffer, deputy managing director of car rental and tour company Al Haditha, agreed. “We get a lot of visitors looking for

Hoteliers in Oman agreed that the country’s unique positioning was what attracted tourists. IHG area director sales and marketing — Oman, Daniel Norman, who is based at the Al Bustan Palace InterContinental in Muscat, said: “Oman has always positioned itself as an authentic and unique destination; it really likes to retain its own special character. “It doesn’t want to look the same as other destinations, naming none in particular, which have recently been upcoming; it wants to keep its character. That’s what attracts people here; the nature, culture, history, not something new and different that’s artificial.” The Chedi Muscat director of sales and marketing Lore Koenig added:

a cheap bed, although Oman is not a cheap place to visit. I have seen a little bit of growth in that too but in the car rental I haven’t seen much change,” he said. IHG’s Norman added: “Although I am based at Al Bustan which is high end, the IHG portfolio in Muscat goes from economy to upper midscale — the Holiday Inn is doing extremely well, occupancies are very solid, and so is the Crowne Plaza”.

TOP10REALESTATETRENDSREVEALEDBYJONESLANGLASALLE Jones Lang LaSalle has announced its latest real estate trends for the UAE in a new report entitled Top 10 for 2010: Defining the ‘New Normal’ for UAE Real Estate. In summary, the trends are: 1. Owners will focus on the active management of properties versus new development. 2. Landlords will provide greater incentives to attract and retain tenants. 3. Luxury developments will be repositioned for the middle end user market. 4. MENA investors and developers will be more active in local and regional investments.

5. The valuations industry will become more professionally structured and regulated. 6. Limited debt will require investors to consolidate and prioritise investment activities. 7. Investors will accept stable rental yields as opposed to development profits. 8. Increased government regulation and improved corporate reporting will rebuild trust in the market. 9. Government policies will focus on creating long-term economic growth. 10. Growth unlikely in 2010. Selective markets to remain stable at best.

STOCK WATCH — FEBRUARY PRICE (US $)

CHANGE (%)

PRICE (US $)

CHANGE (%)

BX Blackstone Group (NYSE)

14.08

10.6

CHH Choice Hotels International (NYSE)

33.02

2.7

MAR Marriott International (NYSE)

27.11

0.9

KHI Kingdom Hotels (LSE)

4.25

28.8

IHG InterContinental Hotels Group (NYSE)

14.00

-6.4

REZT Rezidor Hotel Group (SSE)

24.00

-13.7

HOT Starwood Hotels and Resorts Worldwide (NYSE)

37.90

8.5

LHO LaSalle Hotel Properties (NYSE)

19.78

-6.1

WYN Wyndham Worldwide Corporation (NYSE)

22.67

5.5

AC Accor (PSE)

37.05

1.6

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 February 2010 and based on quotes from January 27, 2010 compared with February 24, 2010.

For a list of upcoming properties, see www.hoteliermiddleeast.com. To update your company’s list, contact louise.oakley@itp.com www.hoteliermiddleeast.com

Hotelier Middle East • March 2010

INVESTOR

Region’s industry heavyweights identify Saudi Arabia as primary growth market Rotana’s Selim El Zyr, ADNH’s Saif Al Hajeri and Action Hotels’ HE Sheikh Mubarak Abdullah Al Mubarak Al Sabah assess regional investment opportunities ahead of the Arabian Hotel Investment Conference ANALYSIS he Kingdom of Saudi Arabia is the one GCC country that holds definite appeal and untapped potential for hotel investors, according to regional industry experts. When asked to identify the ‘hottest’ location for hotel investment in the Middle East, Rotana president and CEO Selim El Zyr, Abu Dhabi National Hotels (ADNH) chairman Saif Mohamed Al Hajeri and Action Hotels chairman HE Sheikh Mubarak Abdullah Al Mubarak Al Sabah all noted KSA. Al Hajeri said: “Despite the saturation in the hospitality market, specifically in the GCC states the one country that remains attractive is the Saudi market, and in particular the Holy places of Mecca and Medina. In these two cities opportunities for investment remain attractive in the short, medium and long term — especially in the three- and four-star segment as well as serviced apartment categories. “Given the investment in infrastructure in the Saudi kingdom in terms of airports and future railway lines linking Mecca and

Medina, I would forecast that the demand for hotel accommodation will remain very strong in years to come,” he added. El Zyr said that there was a “huge untapped potential for leisure tourism in Saudi Arabia”. “Besides the millions who come on Hajj and Umrah pilgrimages, to attract more leisure tourists, the Saudi government is undertaking significant reform and investment in large projects, such as publicly financed training programmes and public-private development partnerships to boost tourism,” said El Zyr. And to attract more tourists, diversification of hotels would be necessary, he added. “Mid-range and budget accommodation offers attractive options as Saudi Arabia looks to target mass tourism. The emergence of mid-range and low-cost hotels has become one of the hottest trends within travel accommodation, introducing an essential diversity into the hotel category,” said El Zyr. HE Mubarak Al Sabah said that the changing marketplace from five-star dominated demand to a wider market created scope for mid-range hotels.

ACTION HOTELS OPENINGS In the region, Action Hotels will launch nine new properties to join the three already open in Salmiya, Kuwait (2008), Muscat, Oman (2009) and Amman, Jordan (2009), by the year 2012, revealed HE Mubarak Al Sabah. “This year, Sharq, Kuwait and Manama, the capital of Bahrain, will see two Ibis flags join the mid-scale lodging offering with a 160-room hotel and 304room mixed-accommodation tower, respectively,” he said.

March 2010 • Hotelier Middle East

“Meanwhile in international markets, Action Hotels also developed the Ibis Glen Waverly in Melbourne, Australia (2007), and confirms the imminent signing of a 250-room Novotel in Brisbane (2011). We are ahead of the race,” said Al Sabah. Overall, by 2012, Action Hotels will deliver a portfolio of 14 mid-scale hotels, asserted Al Sabah, flying the Ibis, Novotel, Holiday Inn and Staybridge flags, in partnership with the global hotel operators Accor and IHG.

Action Hotels chairman HE Sheikh Mubarak Abdullah Al Mubarak Al Sabah.

MID-RANGE AND BUDGET ACCOMMODATION OFFERS ATTRACTIVE OPTIONS AS SAUDI ARABIA LOOKS TO TARGET MASS TOURISM “There are new hubs that have great potential and we have carefully identified those locations where we believe mid-market hotels will be successful. This potential is evident in the Saudi market, for example,” he asserted. El Zyr also identified Bahrain and Abu Dhabi as two other “hot spots” for investment. “Moving to Bahrain, the country provides a free, open and transparent environment for businesses and has a globally competitive, value-creation story which focuses on sustainability, skills and good governance,” commented El Zyr. “Bahrain is the most mature, well-established business hub with the largest financial institutions in the Gulf. With a track record of nearly 40 years, Bahrain is still the financial services leader in the

entire region. But from an operator point of view and as a management company, Rotana sees a lot of opportunities in Bahrain. “We will primarily be focusing on the corporate and MICE markets, however, the leisure market will not be neglected,” he added. Meanwhile, Abu Dhabi — where Rotana opened its flagship hotel Beach Rotana in 1993 — was “a strong contender for the “sun and sand” tourism sector”, said El Zyr. Al Hajeri pointed to other countries in the “Middle East at large” where the potential for investment in the hospitality sector remained particularly strong — namely Iraq, Algeria and Libya. This echoed the sentiments laid out by Meed content director Sean Brierley and Horwath HTL managing partner Philippe Doizelet, www.hoteliermiddleeast.com

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Abu Dhabi National Hotels chairman Saif Mohamed Al Hajeri.

ADNH PIPELINE Having opened three hotels last year, with regard to upcoming ADNHowned properties, Al Hajeri said: “Currently under construction are the 569-room Grand Canal Abu Dhabi, a Venetian-themed resort hotel with an accompanying retail and entertainment complex between the two bridges in Abu Dhabi scheduled for completion late this year, and the luxe class 314room Park Hyatt Abu Dhabi Hotel and Villas on Saadiyat Island Hotel due for completion in early 2011, making it the very first hotel to operate on this beautiful island soon to become the cultural hub of Abu Dhabi”. He added that more announcements would be made “soon”.

in lat year’s November issue of Hotelier Investor. Al Hajeri said: “Unfortunately for both Libya and Algeria the laws governing land ownership and the restrictions on foreign exchange transfer have made potential investors shy away but this will change with time. “Iraq on the other hand offers a huge potential for both religious tourism in the cities of Najaf and Karbala and for business in the capital Baghdad and in the northern city of Irbil.” He added that “one should not overlook the ‘old’ Middle East as a destination”. “Lebanon, Jordan and upcoming Syria represent historical tourism

destinations beyond religious tourism with a potential for investment due to population increases and recent developments in governing laws,” said Al Hajeri. With the above opportunities in mind, HE Mubarak Al Sabah said that “hotel real estate investment remains very strong in the region”. “The Middle East, while common in some characteristics is diverse and each country has its own strategies and priorities for investment and travel. “In general, I do not feel that markets in the region are saturated,” said HE Mubarak Al Sabah. “It is much rather about growth and market movement rather than saturation. There are many cases of untapped markets and the demand for quality accommodation at a reasonable cost remains strong.” However Al Hajeri urged caution in terms of future investment. “Generally speaking, I would consider that most if not all of the GCC states have an ample supply of hotel rooms in all the categories — whether for now or in the medium term,” he asserted. “Any investor considering a potential project in a GCC state would need to carefully weigh up all the options and ensure to deliver a cost effective project with first class facilities in order to attract customers.” The three gentlemen are speaking at one of the Arabian Hotel Investment Conference (AHIC) panel sessions on May 2, where they will be discussing this topic in more detail — specifically in terms of the opportunities to target the regional Arab travel market. Visit www.arabianconference. com to view the full programme for the event. HME

Rotana president and CEO Selim El Zyr.

UPCOMING ROTANAS For the next four years, Rotana will open 10 hotels per year. El Zyr said: “The plan is right. The strategy is there. The execution and know-how are there. The objective is clear. Rotana is positive that as long as the company is able to manage growth in an efficient way, then there is the scope to take up further properties”. The second quarter of 2010 will see the opening of Rotana’s first resort in Dubai Amwaj Rotana and Centro Barsha, Rotana’s first property to open in Dubai under the brand Centro Hotels by Rotana. Further openings in 2010 include: Fujairah Arjaan by Rotana; Centro Sharjah Airport; Khalidiya Palace Rayhaan by Rotana in Abu Dhabi; Oryx Rotana in Doha; City Centre Rotana in Doha; and Erbil Rotana in Iraq.

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Bench Events chairman Jonathan Worsley reviews the raft of hotel sector predictions that have sprung up this year and concludes that business is looking up in 2010 — right across the region

COLUMNIST s ever the start of the year has seen an extravaganza of statistics and analysis of just about every performance indicator out there. More interestingly, we’ve also seen all sorts of crystal ball gazing from a range of organisations trying to predict where we’ll end up at the end of what is likely to be another pretty unpredictable year. Let’s start with the stuff that makes tougher reading — as you’d expect, for much of the region the numbers paint a bleak picture at first glance. STR Global recently announced the final damage for the year, and overall occupancy in the Middle East / Africa region dropped 10.9% to 62%, ADR fell by 2.7% to US $153.91 and RevPAR decreased by 13.3% to $95.44. However, when you start to delve in you can see that the impact of specific markets has skewed the overall numbers — the most prominent example obviously being Dubai, which alongside Cairo was one of only a few cities in the region, tracked by STR Global, to actually see a drop in ADR, by 23.7% to $235.48, and a RevPAR fall of 31.4% to US$163.31. More importantly though, when the Middle East performance is compared to the rest of the world, it still claims the highest ADR by a decent margin — with occupancy

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Worsley predicts activity in countries such as Iraq in the Northern Gulf.

CURRENT HOTEL SUPPLY IN THE MENA REGION WILL NOT BE SUFFICIENT TO MEET DEMAND IN THE LONGER TERM higher than most of Europe and the Americas. It does not look set to change in 2010 with Europe and the Americas likely to see a flat or declining RevPAR performance. Indeed STR is forecasting a RevPAR decline in the US of 3.2% primarily driven by a drop in ADR. Positive signs for the Middle East tourism and hospitality industry emerged in the end of year report from the International Air Transport Association (IATA) which showed that MENA regional airlines grew overall passenger traffic by 11.2% in 2009, and ended with growth of 19.2% in December 2009 versus the previous year. Importantly, a significant portion of this was from some of the major players in the region making further inroads into the Asia to European market, which will help generate additional demand for accommodation in the region.

At the other end of the spectrum, 2009 also saw a number of regional low cost airlines start to build a foothold, as well as the launch of a couple of new players. It was interesting to see the BBC report on the growing impact of the budget airline industry elsewhere in the world (Budget airlines to influence plane design, February 4, 2010), but they could also help transform the domestic tourism and hotel market in the Middle East.

SEEKING SUPPLY Taking another look into the crystal ball, a recent Jones Lang LaSalle report on Hotel Investment Outlook 2010 makes it clear that current hotel supply in the MENA region will not be sufficient to meet demand in the longer term. Once conditions improve it is possible that extensive growth in tourism demand could allow for

a quick absorption of current and future hotel supply. This of course begs the question, where will we see this growth in demand? At the recent launch of the AHIC 2010 Programme, Mark Wynne-Smith, CEO of Jones Lang LaSalle Hotels, EMEA, said “The hottest markets in North Africa will be Morocco and Egypt, whilst the Middle East markets will see developers balance out their portfolios by expanding outside the UAE.” The beginning of the year has seen a couple of countries throw their hats into the ring to highlight the potential of their particular markets, the most interesting of which has probably been Iraq. A recent report in Emirates Business 24/7 (Iraq hospitality sector seeks $145bn investment, January 24, 2010) quoted Dr Aifar Fahd, manager of the Economic Department, who said the National Investment Council “plans to draw $500 billion into Iraq over the next five years, with 29% of that attributed to the hospitality industry alone”. The article highlights plans by Rotana, Marriott and Kempinski to venture into the market, and also plans by various hotel investors from Abu Dhabi, Lebanon and Turkey to target opportunities in the country. All in all, after a tough but not necessarily disastrous year in 2009, things are looking up in 2010, and whilst some of the usual suspects may have a relatively quiet year it will be interesting to see how what happens across the region as a whole, particularly in North Africa and the Northern Gulf region. HME Jonathan Worsley is chairman of Bench Events and organiser of the Arabian Hotel Investment Conference. For details: www.arabianconference.com

Hotelier Middle East • March 2010

INVESTOR

A view from London: taking a long hard look into the future

Business insights for attractions, fitness, sports and spa professionals

Dubai well placed to capture golf tourism Development manager says business plans have changed, but industry will overcome downturn GOLF Jumeirah Golf Estates senior development manager of golf courses Bob Knott told Leisure Manager that Dubai’s golf offering was well placed to capture international tourism, despite the downturn. Speaking after the launch of Jumeirah Golf Estate’s Fire course, Knott said that Jumeirah Golf Estates, Emirates Golf Club and Al Badia provided what international golfers were seeking.

Race to Dubai champ LeeWestwood played the Fire Course.

“The fact is that for seven months of the year we have almost the perfect climate for outdoor pursuits, whether it is golf, equestrian, sailing or motorsports — and the government of Dubai has set its stall out to attract visitors to the UAE,” Knott said. “The facilities are first class and people do anticipate that these facilities will be of a superior nature here; that is what we have done and that is where golf is going.” However, Knott acknowledged that the business plans for the Earth and Fire courses had diverted from the

original concepts due to the downturn. “I am sure operations will be expanding to include corporate golf as well as providing facilities for membership,” he said. “Golf courses are only holding a major tournament one week a year, so you have to have a design that is appealing and user-friendly to members and visitors. “This becomes part of your overall operating policy and in terms of the facility, real estate and hotels, you need an input of golf to ensure you generate the income from food and beverage and retail outlets.”

Turkish tourism board sponsors 2010 Global Spa Summit in Istanbul SPA The Turkish Ministry of Culture and Tourism will be the platinum sponsor of this year’s Global Spa Summit (GSS), being held at Çiragan Palace Kempinski Hotel in Istanbul from May 17-19. The partnership aims to promote the growth of the spa and wellness industries worldwide and also increase awareness of Turkey’s unique spa culture, from its 1300

natural thermal springs to the traditional Turkish hammam. GSS chairman Pete Ellis said: “Delegates from last year’s summit overwhelmingly indicated that Istanbul was their first choice for 2010, and while we were courted by numerous other countries, Turkey was simply the perfect fit.” The 2010 GSS event is based on the theme ‘Bridges Worth Building’, with the focus on establishing connections between spas, wellness, health, medicine, tourism, fitness and beauty.

The keynote speech ‘2025: What’s Next?” will be delivered by prominent analyser of macro consumer trends Philippe Bourguignon, who

Çiragan Palace Kempinski Hotel will host GSS 2010.

will bring his ‘future-focused’ vision to bear on the spa, travel, and wellness industries. Bourguignon said he was “looking forward to discussing topics that help our industry ‘free their minds’, while exploring our shared future together.” Delegates at the invitation-only event will be able to visit major resort spas Cagaloglu Hammam and Richmond Nua Wellness Spa, as well as an exclusive tour of the Çiragan Palace Kempinski Hotel’s royal, historic hammam, usually closed to the public.

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

Hotelier Middle East • March 2010

LEISURE MANAGER

Pitching product perfection Senso Spa manager Sunanda Marasinghe says Radisson Blu Dubai Media City’s introduction of the Anne Sémonin product range will give it a competitive edge in the crowded Dubai market products and followed a suggested regime at home, they are happy to buy the retail items. We expect lots of interest from our guests in the range of products. Approximately one third of our revenue may come from the retail of our exclusive products at the spa.

SPA Q&A Why did Senso decide to introduce Anne Sémonin products? Sunanda Marasinghe: Our goal for 2010 is to maintain Senso’s exclusivity and take it to higher levels, through excellence in service and products. We felt we must cater to the needs of our guests with a natural and fresh spa range. Our team did extensive market research before we took the decision to bring in Anne Sémonin [which replaces previous line Dermologica], as we feel the products represent the exclusivity we like to portray in Senso. We are always keen to provide the best for our clients through our service, but for me it is not only our efforts but also the quality of the products used, which result in loyal customers who appreciate Senso The exclusive line of Anne Sémonin aromatherapy products is based on essential oils and trace elements. The product philosophy is oriented towards guests and their needs. Everyone has a different skin type so products should be customised to each individual’s need. This person-

What spa trends are you seeing in Dubai this year? SM: The spa industry is growing very fast. It indicates people take great pride in looking after themselves and are more critical when choosing a spa. Professional therapists, the overall atmosphere, level of service, quality of the brands and treatments are all important aspects we need to maintain on the highest levels and seek to improve constantly. For me personally, the most important factor remains the wellbeing of my customer and I try to excel in every service aspect possible.

Spa manager Sunanda Marasinghe experiments with the Anne Sémonin products, new to Senso at Radisson.

alisation of products gives the aesthetician the ability and flexibility to address the requirements of the skin. Has Senso launched a new treatment menu as a result of taking this range? SM: Yes, we have designed a new menu with Anne Sémonin facials, body treatments and a vast selection of massages and spa packages. The services include special packages as well as separate services and exclusive packages for both gentlemen and ladies. For all of the above we use Anne Semonin products exclusively. In addition to this, manicure and pedicure as well as waxing services are also available.

Senso has five treatment rooms.

March 2010 • Hotelier Middle East

How do you plan to retail the products to guests? SM: I believe the best plan to sell our

products is to simply advise the customer about available spa treatments, products and the benefits which come along with them. My therapists are delighted to offer advice to our guests on suitable products and routines to treat skin problems, stress the importance of having regular treatments and home care options. Once the client has tested

Senso is in one of Dubai’s most densely populated spa areas in Media City/Dubai Marina. How does it plan to stay ahead and compete in 2010? SM: The first step has been taken by choosing the Anne Sémonin range of products. Following on from this, we will continue to provide our ‘Yes I can’ spirit towards every single guest, while our experienced therapists and an exclusive selection of unique combination of treatments will send him/her on an unforgettable journey of wellbeing. HME

SENSO MARCH SPA PACKAGE To introduce its Anne Sémonin products, Senso has developed a “top-to-toe” spa package for March. Priced at AED 600 (US $163) and including access to Radisson Blu’s swimming pools, the package comprises: Anne Sémonin Bubbling Back Therapy Anne Sémonin Eye Contour Treatment 30-minutes of reflexology Full-body polish

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LEISURE MANAGER

Back in heaven by 2011 Spa expert Anni Hood reports back from the Americas Lodging Investment Summit and reveals that spas must embrace new pricing strategies and social media to speed up the sector’s recovery SOCIAL UPSWING

COLUMNIST visited the US last month to attend the Americas Lodging Investment Summit (ALIS) and see what conclusions could be drawn from the discussions for the future of the spa sector. ‘Light at the end of the tunnel?’ was the title of the conference. The answer appears to be ‘yes’ — but there are a few caveats. There were 2000 people attending the conference; a veritable sea of dark suits all eager to know or to gain confirmation that 2010 signifies an end to the gloom of 2009. Well, not so fast. There were an array of conference sessions but networking (as always) was at the top of everyone’s agenda. It was of course very US-centric, but there was also discussion about global recovery. The consensus was that Asia is leading, predominantly China, with the UAE, Middle East and Africa heading the rest of the pack. The view of recovery was a mixed bag. Some speakers were saying that it is ‘some way off’ and others (more frequently) were touting the third and fourth quarter of this year to see more transactional movement and a lift to rate and occupancy. The CEO of Gatehouse Capital, Marty Collins, spoke at the “Boutique Lifestyle Segment” session and said that development will not dominate for another two to three years. There was a great deal of emphasis on reinventing existing assets. The tiers of

March 2010 • Hotelier Middle East

With room rates still cheaper, spas need to reconsider their treatment pricing.

YES, PROMOTIONS ARE HAPPENING ALONGSIDE VALUE OFFERS BUT AT THE VERY LEAST, THE RATIO OF MASSAGE RATE TO ROOM RATE NEEDS TO BE PALATABLE IN ORDER TO HARNESS THE BUSINESS reinvention were aptly described by Rhonda Rasmussen (VP – WATG) as the lipstick, nip and tuck and extreme makeover programmes. She spoke of reinvention ranging from new cushions, carpets and curtains (lipstick) to new furniture and repositioning areas (nip and tuck) and finishing with the complete redesign of an interior space (extreme makeover).

ROOM RATE VERSUS TREATMENT COST The real discussion for spa is in relation to rates and to a lesser degree occupancy. For the luxury properties demand for rooms is still there but at a much cheaper price – demand remains the same as 2007 but at a significantly lower rate. When the entire market sphere is considered, it is the lower level properties that are being affected by occupancy and the higher levels that are hit by rate. From a spa perspective, particularly at the higher end,

it highlights the issue of treatment costs relative to room rate. The gap between room rates and the cost of a massage in some cases is almost the same (other treatments are likely to be more). Yes, promotions are happening alongside value offers but at the very least, the ratio of massage rate to room rate needs to be palatable in order to harness the business. This isn’t good news for spa revenues and there is a question over whether the previously readily accepted high rates will be embraced again, or more importantly, when? One of the positives of this recession is increased industry efficiency. Human beings are incredibly adaptable and for many businesses the new ‘slimline’ approach will strengthen business growth for the future. Redundancies have been made and natural attrition built upon to gain a leaner team, a sharper reactive ability and a desire for intelligent caution versus the bullishness of 2006/7.

Another good news segment is the power, the advantages and the benefits of social media. ‘The hottest thing in your inbox’ session offered an inspiring insight into the changing and changed perception of the consumer to brands and their reputation. Having five stars, crowns, rosettes or anything else pertaining to merit is becoming irrelevant. What does matter is what your consumers are saying about you. TripAdvisor is the most sought after medium for establishing the ‘real’ reputation of hotels and hospitality businesses — 90% of people want to read a review (or a few reviews) before booking and it matters not the ‘supposed’ reputation of the glossy brochures. The exposure of your business through the social media vehicles is the cheapest way of marketing, rapidly becoming the most effective. Twitter was voiced as the more ‘business-focused’ option (between it and facebook) with a more mature audience and greater revenue opportunities for hotels and businesses. Facebook is said to provide a tool that ‘shows affinity with a brand’ while Twitter is a better vehicle for ‘what a brand has to say’. The message was clear: if you’re not on Twitter or Facebook, get on it; brands that people are talking about will be more successful than brands that are not. The immediacy of access that all of the social media vehicles offer means a need to respond in ‘real time’ and ensuring you have a system in place for checking all the social media sites — increasingly more and more people have access to your brand on a daily basis…excellent! 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

www.hoteliermiddleeast.com

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

EverStyle Trading LLC Strahl® products are equally at home indoors or out – at a barbecue, poolside, on a boat, or for everyday dining and are especially appropriate where there is a danger of broken glass. Strahl's ranges were created to overcome problems such as cracking and crazing, instability outdoors or on uneven surfaces which are commonly associated with acrylic tableware. Strahl® products have the clarity, weight and brilliance of fine crystal yet is made from Polycarbonate – a remarkable material so tough it can withstand being hit by a hammer. Strahl's exclusive post-moulding process has made it possible to incorporate this material's unique properties into refined tableware designs. All Strahl® products are hand finished to give each piece its signature radiance and are individually wrapped to reach you in perfect condition.

P.O. Box 103869, Dubai United Arab Emirates Tel. +971 6 531 4106 Fax. +971 6 531 4460 Showroom Tel. +971 4 338 2828 Email. estdxb@eim.ae Website. www.everstyleuae.com

RECRUITMENT AND TRAINING

Contact details: Sarah Worth Tel: +971 04 435 6374/ Fax: +971 4 435 6080 Email: sarah.worth@itp.com

The e-learning debate This month, the vice president of the European International College of Hotel Management and Tourism Abu Dhabi Asma Al Fahim takes a look at the pros and cons of getting an online education in hospitality

PAUL RAM PRAKASH, INDUSTRY PROFESSIONAL DEVELOPMENT MANAGER, ABU DHABI TOURISM

COLLEGE VP e always hear that the more things change the more they are really the same. I am talking about online education. Many people think that online education and traditional education are completely different from one another; I disagree. I believe if you choose the right online course, it can be as good or even better than the traditional way. I recently felt the conviction to assert this after my own personal experience As people who want to learn, we normally expect a teacher, books, notes, interaction with other classmates and so on. We still think that online education does not provide all of that — but on the contrary, it does. Initially, I had my personal doubts about the recognition you receive from employers concerning online classes; I guess I was a little ‘old school’ when it came to education! I also believed that I could learn more in traditional classes versus online education, until I tried it myself. There are many pros and cons, however, so you should adopt a different mindset if you do choose online classes. You must be very disciplined, focused and physically set aside time to study online with no distractions in order to absorb the maximum amount of educational material. This is my personal point of view. As always, I asked some of my colleagues in the field about what they thought of online education and what is available. Here is what they had to say:

March 2010 • Hotelier Middle East

“Online education is a wonderful tool for industry members to upgrade themselves. It is convenient, cost-effective, interesting and effective. As in other forms of education, no-one-size fits-all; it all depends on the segment e-learning is targeted to. In my experience, e-learning has a high incidence of failure when it is not pitched to the right target audience. The critical success factor is the “motivational level” of participants. E-learning requires a great deal of discipline, not to mention IT skills and good hardware. While the latter can be purchased or sponsored, the former is intrinsic to the learner. While many people would embark on e-learning earnestly, most lose steam after some time. Herein lies the paradox; while e-learning makes it more convenient

MICHAEL D. JOHNSON, DEAN, E.M. STATLER PROFESSOR, CORNELL UNIVERSITY, SCHOOL OF HOTEL ADMINISTRATION “Online education will have a very significant role to play in the future of hospitality education. Even schools like Cornell are not ultimately scalable unless we can leverage technology-based learning. We do this through eCornell. Using a combination of faculty on the ground, eCornell courses, and distance learning capabilities, we are currently running programmes in the Middle East, Europe and Asia both effectively and efficiently.”

for learners to study at their convenience and at their own pace, they may become bored or discouraged. The dynamics of real-life classroom room learning, from a face-toface relationship with the lecturer to the interaction among fellow students, play a huge role in the overall learning experience. This constant engagement keeps participants challenged and motivated. Although this could be pre-arranged with ‘real-time’ forums/lectures via video or web conferencing, the difference in time zones can make

THE DYNAMICS OF REALLIFE CLASSROOM ROOM LEARNING, PLAY A HUGE ROLE IN THE OVERALL LEARNING EXPERIENCE

it pretty daunting for all participants to be online at the same time. Sometimes it is even difficult to get people in one place to log-on at the same time without delays. Another area of concern is the quality of the exchange carried out online. Funnily enough, everyone online must be able to type faster than 40 words a minute to contribute effectively. It’s a challenge for some. In my opinion e-learning should be pitched to highly motivated individuals who are IT savvy and are driven to acquire a specialised or technical training. For example, e-learning is very effective for short technical programmes such as using new software, accounting. It is challenging if it is pitched for general education or ‘soft skill’ training. Also, most of the participants should be at mid-management levels.”

RICHARD G HADDAD, GENERAL MANAGER, VISION HOTEL APARTMENTS “As much as I personally am very “internet-user friendly”, I do not see [online study] as being possible for a lot of courses. I like human interaction, I like social interaction and I learn a lot better when I directly interact with professionals. But again, this is my personal opinion. Saying that, I could always try to take some courses that are more informative and theoretical online when I see the time suitable for that.”

Richard G Haddad.

MANY PEOPLE THINK THAT ONLINE EDUCATION AND TRADITIONAL EDUCATION ARE COMPLETELY DIFFERENT FROM ONE ANOTHER; I DISAGREE www.hoteliermiddleeast.com

RECRUITMENT AND TRAINING

Contact details: Sarah Worth Tel: +971 04 435 6374 / Fax: +971 4 435 6080 Email: sarah.worth@itp.com

MONA FARAJ, MANAGING PARTNER, INSIGHTS MANAGEMENT CONSULTANCY “I believe this is an excellent tool that is more and more in demand in today’s hectic life, as it allows executives to learn at their own pace and during work hours. I have personally learnt Microsoft Outlook via an online teaching tool that took me a month to complete. I am not in favour of e-learning for post-graduate degrees, unless it is enhanced with periodic classroom sessions that allow direct interaction between participants. Increasingly, written communication is used instead of face-toface discussion, so people are getting worse at public speaking. You find executives that are great in written communication but will not be able to conduct a full presentation verbally.”

MICHAEL KAILE, GENERAL MANAGER, FAIRMONT BAB AL BAHR, ABU DHABI

Michael Kaile.

“The only thing I can add is that at a senior level, given the length of the normal working day, such learning is a challenge in terms of finding quality time when one can concentrate fully, as opposed to a structured and more traditional learning session to which one travels, gets away from the workplace and can enjoy uninterrupted time.”

ONLINE RESOURCES Recommended online courses: www.ecornell.com How to find online information on hospitality degrees: www.elearners. com / www.hospitalityschools.com

Job Vacancy We are a Regional Hospitality Supplier based in Dubai having ofﬁces in Oman, Bahrain, Qatar, Saudi Arabia and Almaty.

Looking to ﬁll the following vacancy: Job details

Desired candidate’s profile

Position Procurement Manager (Hospitality Division) Industry Type Hospitality / Hotel Supplies Functional Area Purchasing / Procurement Location of Job Dubai - United Arab Emirates Monthly Salary Attractive Package - Depends on candidate experience and proﬁle Other Beneﬁts Medical+ Incentives + Mobile + Laptop Job Description Responsible for controlling purchasing budgets, identifying right source / channels for purchasing supplies and equipments, developing strategic business alliances with vendors / suppliers for effective business tems, prepare and submit RFQs and other analysis MIS reports for client and management. Sourcing right product at the right price from the right channel at the right time.

Proﬁle Young, highly energetic and aggressive purchasing professional. Excellent communication in English (written and spoken both) and presentation skills with UAE Driving License a must. Should have excellent contacts with local and international suppliers Experience 3 - 5 years in hotel industry with at least 3 years in supervisory level Education Degree/Diploma holder in Procurement/Purchasing Management or related discipline Nationality Any Nationality Gender Any

www.hoteliermiddleeast.com

Contact Details hr.procure@gmail.com Hotelier Middle East • March 2010

RECRUITMENT AND TRAINING

Contact details: Sarah Worth Tel: +971 04 435 6374/ Fax: +971 4 435 6080 Email: sarah.worth@itp.com

Beach Rotana Hotel Abu Dhabi: Patrick Bischoff French national Patrick Bischoff recently joined Beach Rotana Abu Dhabi as executive chef, bringing him back to the emirate for the first time in 10 years NEW RECRUIT Why inspired you to become a chef? I was inspired by my mother — she was cooking breakfast, lunch and dinner for a family of seven, and today some of her intensely-flavoured dishes still inspire my taste buds. Also the Alsace region in France where I grew up is a very rich region in terms of food with the River Rhine and the mountains full of wild mushrooms and game. Why did you take on the new role at the Abu Dhabi property? I wanted to join Beach Rotana because it was Rotana’s first property and its flagship hotel, with a large variety of well-established restaurants. I am very happy to be back in Abu Dhabi, having worked in the emirate 10 years ago; it is where I met my wife and also where we got married.

What do you hope to bring to your role at the hotel? I will be bringing 30 years of experience from kitchens and hotels in various countries, including France, Morocco, Mauritius, Greece, and South Africa, as well as previous experience in Dubai and Abu Dhabi. I want to use this opportunity to pass on my knowledge to the kitchen brigade, from the sous chefs to the commis chefs. As the executive chef in charge of all the outlets I will proudly represent Beach Rotana, both internally and externally, by putting a little French touch here and there. What do you think it would it take for Abu Dhabi to become the culinary hub of the Arab world? Hotels and restaurants must work harder to retain their employees for longer, by supplying them with ongoing training and development. It’s

not only on-the-job training, but they must also send chefs abroad for one or two months on chef exchanges to well-established hotels or restaurants in Europe. Investors also need to put more focus on back-of-house areas, with increased space, better equipment and a higher standard of equipment maintenance. Chefs need to be heavily involved in the planning of new kitchens before the actual construction as well. What has been the most bizarre request you have ever received from one of your customers? A guest once called me to the table after finding a wedding ring in a Caesar salad and asked me if I was proposing. This was after one of my chefs had just returned from vacation where he got married and had very unfortunately lost his over-sized wedding ring at work.

How do you like to unwind after a busy day in the kitchen? After a really long day working in a multiple outlet operation the best way for me to unwind is to spend time at home with my wife, catch up on the latest news on the television and hopefully get a foot massage.

Beach Rotana’s new executive chef Patrick Bischoff.

Bin Eid Executive Search (Specialised in 5 * Hotel Sector)

B I N E I D

General Manager Rooms Division Manager Director Human Resources Corporate Director of Training Director F & B Restaurant Manager Executive Chef Italian Chef Finance Director Director of Engineering Director of Sales & Marketing Executive Housekeeper Director of Housekeeper (Cleaning & Facility Management)

Executive Search Bin Eid is highly specialized in Senior Level Search & & Placement of Hotel / Hospitality Industry Professionals. Selection Our clients include prominent 5 star hotels (International chains), 4 star deluxe properties and other hospitality and leisure industry establishments in UAE and other Gulf Countries. We are now in the process of ﬁlling in the above positions for our clients in the UAE, GCC and Other Countries.________________________________________ CV may be forwarded by 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. +9716-5686144, E-Mail: ceo@bineid.ae Website – www.bineid.com

March 2010 • Hotelier Middle East

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RECRUITMENT AND TRAINING

Contact details: Sarah Worth Tel: +971 04 435 6374 / Fax: +971 4 435 6080 Email: sarah.worth@itp.com

ON THE MOVE… PREMIER APPOINTMENT FOR HOLLINSHEAD Premier Inn has appointed Amanda Hollinshead as its new head of sales. Hollinshead will oversee the sales operation at the hotel brand’s Dubai International Airport, Dubai Investment Park and Dubai Silicon Oasis properties. A former senior sales and account manager at Crowne Plaza Hotel Dubai, Hollinshead’s new role will be to deliver the Premier Inn Middle East sales and marketing plan to also encourage sales at all Premier Inn hotels in the Middle East. Hollinshead has also worked for Choice Hotels Europe as a key account director where she was awarded Sales Specialist of the Year in 2007. Prior to this she was hotel sales and account manager for Macdonald Hotels in the UK. HUNTER TO ALOFT Todd James Hunter has been appointed executive chef in charge of food and beverage at Aloft Hotel Abu Dhabi. Hunter, who began his culinary career at the age of 16 at his parent’s restaurant in Australia, has previously worked in London, the Caribbean, and central and southern America. In the first of two stints in London he worked at the famous Smith of Smithfield’s Restaurant, and later returned for a second stint in the UK capital at Zuma. Hunter was also part of the opening team at Grosvenor House, Dubai, starting out as sous chef at Buddha Bar, before moving up the ranks to chef de cuisine and finally executive sous chef at the Dubai property. NOW ROLE FOR A-MMAN Accor Hospitality Middle East recently appointed Thierry Szewc as general manager of Ibis Amman — the first internationally branded economy hotel in the Hashemite Kingdom of Jordan. Szewc has been with the Accor Group for 35 years and www.hoteliermiddleeast.com

joins the property in the Jordanian capital property following a spell in Sudan. The French national previously worked in Saudi Arabia as manager of Zam Zam Grand Suites Hotel, Mecca. ZOTOFF THE BLOCKS Keen marathon runner Sylvie Zotoff has joined Dusit Thani Dubai as its new director of rooms. The French national has worked for various international hotel chains including IHG, Starwood and Fairmont at properties in Europe, the United States and Egypt. Before taking on the new role in Dubai, her last posting was as director of rooms for the transition team at the Fairmont Heliopolis, Cairo. Zotoff has competed in various marathons including the Chicago Marathon and the San Jose Marathon, and recently participated in the 2010 Standard Chartered Dubai Marathon in January. TULIP RECRUITS BLOSSOM Dozens of employees are on the move at Golden Tulip Hotels in the MENA region, with a large number of new recruits and promotions takEdgar Krohn. ing place recently. One of the highlights includes Frank Mayland who joins Golden Tulip Al Barsha, Dubai, as operations manager. The German national brings with him experience working at properties in Asia and the Middle East. Other movers and shakers at the company include Paul Diab, director of operations for Golden Tulip Tunisia, who has taken on the added responsibility of

Frank Mayland.

Gilbert Jaber.

Michel Mandrea.

Paul Diab.

the general manager position at Golden Tulip El Mechtel. The same hotel has also appointed Edgar Krohn as director of F&B. At Golden Tulip Bahrain veteran hotelier Michel Mandrea has taken on the role of general manager, leaving his previous posting at the Golden Tulip Al Barsha, while in Lebanon Gilbert Jaber has been appointed general manager of the Golden Tulip Serenada, Beirut. RESPONSIBLE ROLE FOR CHONA The Rezidor Hotel Group has appointed Tapasya Chona as its new regional responsible business coordinator for the Middle East. Indian national Chona has more than 10 years experience in the hospitality industry and spent close to five years with the Jumeirah Group at the Burj Al Arab, Dubai. In 2007 Chona joined Rezidor as training and development manager at the Radisson Blu Hotel, Dubai Deira Creek, where she coordinated all responsible business training at the hotel. In her new role, Chona will drive and co-ordinate responsible business activities across Rezidor’s 25 Middle East properties and will oversee and initiate activities for the firm’s annual Responsible Business Action Month in September. ISSA MOVES TO CAPITAL EMIRATE Ahmed Issa has been appointed the new director of food and beverage at Abu Dhabi hotel Shangri-La Hotel, Qaryat Al Beri, also taking on the responsibility for food and beverage operations at Traders Hotel, Shangri-La Residences and The Villas by Shangri-La — all located within the vast Qaryat Al Beri complex.

Having worked in the region for 14 years, Issa has garnered experience of food and beverage operations at five-star hotels and already has seven years experience with Shangri-La Hotels in the UAE under his belt. Issa was previously a member of the pre-opening team for Shangri-La Hotel, Dubai and the pre-opening team of Shangri-La Hotel, Abu Dhabi. TEE-OFF TIME FOR GUNN Saadiyat Beach Golf Club, a development by Abu Dhabi’s Tourism Development and Investment Company, has appointed John Gunn to the position of director of food and beverage. A experienced Troon Golf employee, the management company for Saadiyat Beach Golf Club, Gunn has worked in the Middle East for two years at The Address Montgomerie Dubai. Gunn has worked in the F&B industry for the past 15 years and began his career at an alpine resort in New Zealand, before moving to Australia and Qatar. The New Zealand national arrived in the UAE in 2007, and brings to his new role experience of working at the awardwinning Observatory Hotel in Sydney and the Ritz-Carlton, Doha. MUSCAT MOVE FOR BHAGAT Girish Bhagat has joined Grand Hyatt Muscat as the hotel’s new director of rooms. Bhagat moves to Oman having worked at various Hyatt Hotels and Resorts properties. Starting his career in Australia at a five-star boutique hotel following the completion of his hospitality management studies, Girish moved onto a fivestar hotel in New Delhi, India. He then joined Grand Hyatt Dubai as part of the property’s pre-opening team. At the Dubai property he was promoted to the role of front office manager, where he managed a team of more than 150 people that comprised 25 nationalities. Hotelier Middle East • March 2010

DIARY

, the toughest marathons in the world to s on titi pe com ar kst roc al on ati From intern k out of the office heck hen you ch wh to up get u yo at wh s eal rev st Ea Hotelier Middle

Hot Hoteliers at The Rooftop, One &Only Royal Mirage Dubai

Judith Halkenhaeusser from Atlantis the Palm and Mövenpick’s Andrew Hughes joined the February Hot Hoteliers networking event.

Charity Stars ZOE DA SILVA, THE MONARCH DUBAI The Mad Silva Hawkes, a four-strong team headed by The Monarch Dubai health club manager Zoe da Silva, is running the Comrades Marathon on May 30 in South Africa. The gruelling challenge involves an 89km run from Pietermaritzburg to Durban. The team is raising money for the Starfish Greathearts Foundation. To find out more: www.justgiving. com/Madsilvahawkes

As part of their training, the team completed this year’s Dubai Marathon.

March 2010 • Hotelier Middle East

Leya Sunaz from Habtoor Grand Resort & Spa with Geraldine Salazar, Charmaine Carbonera and Wendy Kucina. Phil Bedford of The Referral Institute hosted a ‘Roof Full of Referrals’, with the Hot Hoteliers engaging in various networking exercises.

Hilton Rockstar Competition

Radisson Blu Yas Island party

Glenn Ybanez and Amilil Doton, waiter and linen attendant at the Makkah Hilton & Towers, were the Middle East & Africa winners of the first Hilton global video contest. Their prize included a recording of their winning song ‘Farewell to Friends’ at Creative Force Studios in Dubai.

Park Inn director of sales Rekha Jaywardana with guests Thales executive secretaries Seema Wesley and Sawson Hammami at a recent party for business associates hosted by The Radisson Blu Hotel and Park Inn on Yas Island.

KEITH BURNET, HILTON WORLDWIDE Hilton Worldwide vice president global spa and fitness Keith Burnet has just one month left before he tackles the 25th Marathon des Sables from April 4-10 in the Sahara Desert. The 151 mile / 243 km ultra marathon, known as the Toughest Footrace on Earth, is the equivalent of five and a half regular marathons. To find out more about his challenge, including how Burnet trains on spinning bikes in a sauna, visit: www.justgiving.com/thirstyinthesahara

Keith Burnet trains on a spinning bike in a sauna.

BE PART OF AFTER HOURS... What exciting stories do you have to share? If you would like to feature in Hoteliers After Hours, send details and photographs of your parties, events and charity challenges to: Email: louise.oakley@itp.com Tel: +971 4 910 6274

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CONFIDENTIAL

BEAT THE RED TAPE worried and slightly irate colleague dropped by the Hotelier d k llast month h Towers newsdesk with, you guessed it, a complaint about the hotel industry. At the helpdesk, sorry newsdesk, we get inundated with friends and colleagues whining about slow service or grumpy staff. Normally we tell them to grow up and go away, but this particular gripe really got our goat. When trying to make a dinner reservation for a group of 10-plus at a newlyrelaunched steak restaurant at one of Dubai’s luxury hotels, the would-be customer came up against a series of hurdles. First of all, as it was a large group, only the set-menu would be available. Not ideal for “girlish appetites” observed our source claiming “half the group would be ripped off already”. Secondly, the authorisation form demanded the customer’s credit card details and cardholder’s address to be filled in, plus a clear copy of both sides of the credit card to be attached. Thirdly — and this is what surprised us — the hotel also requested a copy of the customer’s passport . “They are trying to steal my identity!” he moaned.

And finally, the cancellation notice seemed rather drastic. It read: “In the event of a cancellation within 24 hours prior to the reservation date and in case of no show, a late cancellation charge of 50% and no show charge of 100% will be levied based on the total amount mentioned in the reservation details”. However, confusingly there was no amount mentioned in the document. Needless to say, the would-be customer decided to take his business — which at a conservative estimation would have been at least AED 5000 (US $1361) — elsewhere. But why the red tape? Yes it was a group of 11 people, but that is nothing

when you consider the size of groups hotels cater to every day. And why the passport request? Considering the recent news regarding the alleged use of fraudulent passports in the Dubai Hamas murder, it’s not something that would sit comfortably with many guests right now. Hotels do not always demand passport copies ahead of a room reservation, so why would they for dinner? Hotelier questioned the hotel, initially to be told that this was “not the norm”. To their credit, the hotel took our inquiry seriously and investigated it. Several confused conversations later, they said that the passport

was necessary to verify the credit card because the customer would not be present at the dinner. This was not true; “of course I was planning to attend”, complained our source, but we accepted defeat at that point, concluding he had made the right decision to make alternative plans. Are customers that untrustworthy that hotels need to take these details? Or is there a better way to guarantee bookings? No hotel wants to face a no-show when it has prepared a set menu (a rant for another day!) but equally, who can afford to alienate guests? The hotel said it would review its “scary” reservation policy — what’s your view? HME

Next issue • Show preview: Arabian Hotel Investment Conference • Country update: Lebanon • Industry best practice: Asset management • Roundtable: F&B managers • Product analysis: Ovens • Product guide: Mini bars • Technology report: Guest identification

Hotelier competition This month you have the chance to win a pair of tickets to the Lost Paradise of Dilmun waterpark, which reopened for the summer season on March 4. The Lost Paradise of Dilmun is Bahrain’s biggest outdoor waterpark and part of the first phase of the US $1.3 billion Al Areen development. It features 14 rides, from the family-friendly Kids Mesopomania to the adrenalin-fuelled Boomerago, and also offers an outdoor cinema screen and “Dive-in Movies”. There are two pairs of tickets up for grabs for two lucky winners. All you need to do is to answer the following question: What anniversary will The Rezidor Hotel Group celebrate in 2010? 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 lunch for two at the Mai Café and a day by the Splash Pool at Aloft Abu Dhabi was Vinoth Kumar, executive chef at The Country Club Hotel in Dubai. For further information about the opening weekend and the Lost Paradise of Dilmun call +973 1784 5100 or log onto www.LPODwaterpark.com.

March 2010 • Hotelier Middle East

The Lost Paradise of Dilmun in Bahrain features 14 rides and slides in total.