The definitive guide to successful hotel management
April 2010
LEBANON AND ON A guide to entering the country’s high performing hotel sector
TABLE TALK F&B directors debate recruitment, competition and new hot spots
MONEY MAKERS
Where and why you should invest in hotels ASSET MANAGEMENT GUEST IDENTIFICATION CAMPBEL CAMPBELL GRAY HOTELS CHIVA SOM
Licensed by Dubai Media City
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April 2010 Volu Volume 9, Issue 4 05 NEWS
30 TALKING HEADS
59 SUPPLIER FOCUS
78 TECH ANALYSIS
Holiday Inn Express and Premier Inn head to head; Roya and Deloitte launch business; Mandarin Oriental aims to top design of Royal Mirage.
Hotelier talks to Mövenpick’s annual conference organisers about the hotel chain’s digital strategy.
News from Meat &Livestock Australia, Arte Vivo and MGK.
Joe Mortimer discusses the pros and cons of identification technology.
62 SUPPLIER PROFILE
84 INVESTOR COMMENT
Carpets Inter MD Parkpoom Jarnyaharn explains why ecocarpets are the way forward in 2010, and how business is looking up.
Bench Events chairman Jonathan Worsley reports from the International Hotel Investment Form.
35 ROUNDTABLE: F&B 16 COLUMNIST Guy Wilkinson on why Block 338 in Manama is a must for diners.
Dubai’s directors of food and beverage discuss the impacts of the downturn and what hotel will be best: Meydan or Armani?
20 LOBBYIST VE Solutions president Arkady Siterman explains why value engineers are good for business.
22 TOUGH TALK Owner Mike Scully asks entrepreneurs to step up and take control.
25 EXCLUSIVE: AN INTERVIEW WITH GORDON CAMPBELL GRAY The Campbell Gray Hotels chairman reveals why he always follows his instincts in business.
87 LEISURE MANAGER NEWS 64 FITTED OUT
41 COVER STORY: AHIC PREVIEW Ahead of the Arabian Hotel Investment Conference, Hotelier discovers from the speakers where, why and how to invest in the hotel industry.
49 AHIC PREVIEW: THE ROLE OF ASSET MANAGEMENT One of the eagerly awaited sessions at AHIC is focused around asset managers: are they necessary or superfluous? Hotelier finds out.
The Spa at Radisson Blu Hotel, Abu Dhabi Yas Island.
67 PRODUCT ANALYSIS Oven suppliers discuss new products, best sellers and kitchen trends.
Janet Fitzner has joined the team at Radisson Blu Hotel, Dubai Deira Creek, with plans to be number one.
Joe Mortimer explains why Lebanon is fast becoming an attractive option for both investors and hotel operators alike.
71 PRODUCTS A round-up of mini bars and Hotelier’s pick of the month.
92 MOVERS AND SHAKERS New recruit and appointments.
75 TECH TALK NEWS From Travelport and Blankom.
94 HOTELIERS AFTER HOURS
76 TECH EXPERT
The best of the month’s parties, events and awards.
Roger MacFarlaine, Hotelier’s resident IT doctor, explains the potential of digital profiling.
25 5 www.hoteliermiddleeast.com
90 LEISURE MANAGER INTERVIEW: PAUL LINDER Chiva Som’s general manager Paul Linder on why he has the best job in the industry.
54 COUNTRY FOCUS: LEBANON 28 GM INTERVIEW
Precor and Thermarium at Global Spa Summit; golf businesses suffer; and fish spa from Jumeirah Group.
96 HOTELIER CONFIDENTIAL Insights from the news desk.
90 28 Hotelier Middle East • April 2010
ONLINE
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TOP
stories on 10 HOTELS THAT WERE NEVER BUILT Most-read hoteliermiddleeast.com
1. GLOB GLOBE TOWER, NEW YORK People wer were invited to invest in the 700ft high tower in the Coney Island development in 1906, but the entire project was never meant to be built — it turned out to be a financial scam.
2. FULL MOON HOTEL, BAKU, AZERBAIJAN This hotel was meant to be built in Baku, Azerbaijan, and was quickly dubbed the death star. A 521-foot-tall hotel with 382 rooms on 35 floors, it may be going ahead still, but if it is, it is doing it quietly. 3. DUBAI CITY TOWER, UAE A Dubai developer The Dubai City Tower. was considering building a tower three times the height of the Burj Dubai, consisting of six separate buildings twisting into a single structure, creating what was to be called a ‘vertical city’. A vertical bullet train would ferry people from one neighbourhood to another. 4. THE INDIAN HOTEL, ANAHEIM, CALIFORNIA Disney’s Indian Hotel, modelled after India’s Taj Mahal, would have been located in WestCOT theme ppark’s Asia area.
pended in a blimp-like structure over a bridge that connected the main island to Lulu Island.
6. FIRST HOTEL JESSHEIM, NORWAY The Danish architect firm Bjarke Ingels Group (BIG) with First Hotels proposed this interesting hotel in the small town of Jessheim, just north of Oslo, Norway. However, a fierce planning battle ensued and the hotel never met its expected completion date of 2009. Some say it may still go ahead, but we shall wait and see. 7. THE HOTEL COMMONWEALTH, NEW YORK This hotel was going to dominate an entire block, cost US $15 million and provide 2500 rooms. The hotel was to be built and operated on a profit share basis — stock was valued at $100 each with no individual allowed more than 10 shares. The hotel never got off the ground. 8. THE FOURTH GRACE, ENGLAND Architect Will Alsop got the winning design for this project in Liverpool and called it ‘La Nube’ (the cloud). The project was named The Fourth Grace because the development would have been adjacent to the three historic buildings at Pier Head and known as The Three Graces. 9. HOTEL ATTRACTION Designed in 1908 for New York City, Hotel Attraction was goingg to be the tallest building in New York. Conjured up by architect Antoni Gaudi, the total height was intended to be 360 meters.
Hydropolis.
Sky Bridge Hotel.
5: SKY BRIDGE, ABU DHABI Architect Eytan Kaufman’s Sky Bridge Hotel in Abu Dhabi was to be a 264-room hotel sus-
S DUBAI 10. HYDROPOLIS, Hydropolis was meant to be the world’s first underwater luxury resort, situated 66 feet below the surface of the Persian Gulf. It was scheduled to open in 2009, but unfortunately the bubble burst. The website for the project is still under construction, which is still a little more than can be said for the hotel.
1. Top 10 hotels that were never built 2. Missing mum’s body found stuffed in hotel bed 3. Giorgio Armani worried Burj designs may look old 4. Industry mourns death of Hard Rock president 5. Cirque du Soleil employee found dead in hotel room 6. Death of Hard Rock Hotel president was suicide 7. Five Middle East Kempinski hotels cancelled 8. Starwood ordered to pay US $3 million for spying on employee
WEBSITE VIEWER STATS SOURCE: Google Analytics.
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Hotelier Middle East Randy Kwasniewski Dubai Ferrari World Bab al Shams GM
For a list of upcoming properties, see www.hoteliermiddleeast.com.To update your company’s list, contact louise.oakley@itp.com April 2010 • Hotelier Middle East
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5 NEWS
THE REGION • Signings • Openings • Best practices • Strategy • Branding • Legislation • Events
Banyan Tree boss slams Bahrain resort owners Banyan Tree chairman Ho Kwon Ping rejects Al Areen claims of property mismanagement OPERATORS The chairman of Banyan Tree Holdings (BTH) has lashed out at Al Areen Holding Company, the owner of Banyan Tree Al Areen desert resort in Bahrain, accusing the state-backed firm of “baseless and untrue” statements. Ho Kwon Ping, executive chairman of BTH, said the luxury operator unequivocally rejected Al Areen’s claim that it was responsible for a drop in profits at the Bahrain resort, due to its mismanagement and “poor maintenance of the facility”. The comment is the latest in a round of mudslinging between the two firms, which are embroiled in a legal dispute over the Bahrainbased resort, managed by Banyan Tree Holdings. The firm announced on March 10 it had filed a petition in the kingdom to wind up Al Areen Desert Spa and Resorts — the owner of Banyan Tree Bahrain — to recover US $1.12m allegedly owed to it under a hotel management agreement. Al Areen responded by blaming Banyan Tree Holdings for the resort’s operating losses, warning it had “spent more than $200 million” on the facility and would “neither tolerate nor accept anything that could compromise its high quality and level of service”. Tariq Al Jowder, chief executive officer and owners’ representative, said in a statement: “Numerous international renowned operators have approached us in the past www.hoteliermiddleeast.com
Banyan Tree Holdings chairman Ho Kwon Ping.
Saffron restaurant at Banyan Tree Al Areen in Bahrain, one of several outlets at the luxury five-star desert resort.
and are still interested to take over management of the facility. “We are committed to ensuring the highest international standards and will not hesitate to do so through any means we deem necessary,” he continued. “The Banyan Tree Hotels and Resorts did not deliver as agreed in our Hotel Management Agreement and we reserve the right to take the appropriate and necessary action required accordingly.” In a statement issued on March 15, BTH’s Kwon Ping hit back: “Contrary to allegations of poor management, Banyan Tree Al Areen has consistently ranked number one out of all 73 hotels in Bahrain by TripAdvisor. “Having arrived at a settlement agreement over a portion of the disputed debt due from Al Areen to us, we expect that at least the settle-
ment agreement would be acted on in good faith by Al Areen. “We regret that the continuing non-compliance of Al Areen to fulfill its contractual obligations under the settlement agreement leaves us no choice but to seek redress under the laws of Bahrain.” Banyan Tree had previously said the winding-up proceedings against Al Areen “may be completed this year or next”. The group confirmed that if it was successful in the proceedings, the hotel management agreement would be terminated. Last month, Hotelier reported that BTH is also taking legal action against Meydan LLC “for various breaches” of the management contracts for two Dubai hotels the company was expected to operate. In a statement the company said: “It is common knowledge that the
financial crisis has impacted several entities in the Middle East; to a certain degree, it has affected some of our hotels. “We endeavour to operate with the highest standards, and if we are unable to settle issues amicably, we need to defend our own credibility and as a matter of principle, take a firm position with regards to any breaches and outstanding debts “While we remain committed to the GCC region and will continue to explore opportunities, it is very important that we find likeminded partners who sincerely share our vision and demonstrate a commitment to the Banyan Tree brand experience.” In January, BTH opened Banyan Tree Al Wadi in UAE emirate Ras Al Khaimah, and it has five other projects under development in Abu Dhabi, Egypt and Oman. Hotelier Middle East • April 2010
NEWS
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Mandarin Oriental aims to top Royal Mirage design Regional director says the company will prioritise architecture at upcoming hotel on Saadiyat Island DESIGN Mandarin Oriental is confident of differentiating its planned hotel on Saadiyat Island in Abu Dhabi through superior interior design and architecture, according to the company’s new regional chief. Speaking on the sidelines of the company’s first press event in Dubai, Mandarin Oriental Hotel Group director of operations Europe, Middle East & Africa, Christoph Mares, said that what he really hoped to beat was the design of the One&Only Royal Mirage in Dubai. “Where I see the most opportunity is to provide a hotel that is unique in terms of design and interior. “For me the most important one in Dubai at the time was the One&Only Royal Mirage; if we can top that then
we will have achieved something,” commented Mares. He said that the architectural designs, layout, space available and size of rooms, along with the food and beverage offer and the technology available, would also ensure Mandarin Oriental, Abu Dhabi stood out against the other luxury brands signed for Saadiyat Island. “I think these features will differentiate ourselves from the Park Hyatt or any other brand for that matter, be it Jumeirah or Four Seasons, which I know is coming to this location as well,” said Mares. He said the location and ‘sense of place’ was a vital consideration for all Mandarin Oriental properties. “We are very selective in the projects that we sign off on because we want to have a unique product, so the interior and architectural specifica-
Mandarin Oriental Hotel Group’s Christoph Mares.
tions have to be close to the environment you are operating in. “Sense of location is paramount. We have turned down hundreds of projects where we have felt that neither the place, location or interior
was unique enough to support our brand,” said Mares. “The vision of Saadiyat Island as a whole is unique in the world,” he continued. “It’s fantastic, the location so close to the Guggenheim and obviously not far from the Louvre was sensational and we wanted to be there. The proximity of the golf courses, especially the Gary Player golf course was very important to us. “The possibility for us to choose our architect together with TDIC [developer of the hotel] meant we felt could add the most value and provide the understanding to transform the sense of place,” said Mares. The architect for Mandarin Oriental, Abu Dhabi “is about to be finalised and will be announced within the next few weeks”, added Mares. For a full interview with Mares, see the May issue of Hotelier.
Sharjah hotels “remarkably resilient” to downturn OCCUPANCY Sharjah’s hotel industry proved “remarkably resilient” during the global financial crisis, asserted Sharjah Commerce and Tourism Development Authority director general HE Mohammed A. Al Noman in an exclusive interview with Hotelier Middle East. “Despite the global financial crisis and its impact on the world’s tourism sector in 2009, Sharjah’s hotel industry has been remarkably resilient,
Sharjah Commerce and Tourism Development Authority director general HE Mohammed A.Al Noman.
April 2010 • Hotelier Middle East
with the occupancy rate suffering a mere 11% decline from 80% in 2008 to 69% in 2009,” said Al Noman. “Taking into account the dramatic 14% increase in the number of additional rooms made available throughout 2009, this really is an excellent performance,” he added. Figures for the total number of occupied room nights in Sharjah’s hotel establishments demonstrate the resilience of the emirate, with hotel apartments faring particularly well during this time. There were almost 50,000 additional hotel apartment room nights in Sharjah in 2009 compared to the figures for 2008. Al Noman said: “Looking at other figures as well, it becomes clear that Sharjah’s hotel industry did very well last year in a very challenging economic climate. “Figures show that the total number of occupied room nights in Sharjah’s hotel establishments dropped by only 3% in 2009 to 1,462,165 — down from 1,504,859 nights in 2008.
“Hotel room nights accounted for 790,900 of the total for 2009 (down from 882,599 in 2008) and hotel apartment room nights accounting for the remaining 671,265 room nights (up from 622,260 in 2008),” said Al Noman. The hotel occupancy rate in Sharjah was 74% in 2009 compared to 86% in 2008, while the occupancy in hotel apartments went down to 64% in 2009 from 72% in 2008. In total, there were close to 1.5 million tourists visiting Sharjah during 2009, said Al Noman. The breakdown of visitors to Sharjah was as follows: 42% were from Europe, 23% were from the GCC, 11% were from other Arab countries, 15% were from Asian countries, 6% were from Africa, 2% were from the US, and 1% was from the Pacific region. There are currently 110 hotel establishments in Sharjah — 41 hotels and 69 hotel apartments, with more in the pipeline. The total number of rooms available through these
Close to 1.5 million tourists visited Sharjah in 2009.
establishments is 8,727 — 4,275 in hotels and 4,452 in hotel apartments. Commenting on the pipeline, Al Noman added: “There are a number of hotels that are currently in the planning, design or construction phases and that we expect to see finished over the next few years. One of the projects currently in the planning stages is that of the Marriott International hotel group, which is planning to open two new hotels in Sharjah — a hotel and resort, and apartments for businessmen — which will add value to the hotel industry in the emirate, as well as another 375 hotel rooms.” www.hoteliermiddleeast.com
NEWS
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Holiday Inn Express and Premier Inn head to head Hotels located at Dubai Airport seek to attract growing base of value-conscious customers LIMITED SERVICE The Holiday Inn Express at Dubai International Airport opened in March, just months after rival brand Premier Inn opened its own Dubai Airport hotel. InterContinental Hotels Group (IHG) Middle East and Africa chief operating officer John Bamsey said: “We believe we understand customer needs better. Compare the hotels and we’re confident we’ll come out where we need to come out.” The most recent addition to the Holiday Inn Express brand is situated right next door to the Premier Inn, which opened its doors at the end of last year. Premier Inn Middle East managing director Darroch Crawford said: “We are very fortunate in that a lot of our rooms are at the top end of the limited service sector. For a lot of people, our rooms have the edge and we’re glad about that”. The Holiday Inn Express at Dubai International Airport is the largest Holiday Inn Express in Europe, the Middle East and Africa
InterContinental Hotels Group’s chief operating officer John Bamsey: We understand customer needs better.
and is the fourth of its kind to open in Dubai, while the Premier Inn was the third of the brand’s hotels to open in the Gulf. Both companies have ambitions to increase the strength of these limited service brands in the region. Premier Inn has hotels planned for Abu Dhabi and Doha. Crawford said: “Our aim is to be
represented in all the major cities in the GCC as quickly as we can.” Holiday Inn Express, developed exclusively in the GCC (except Saudi Arabia) with Ishraq Gulf Real Estate Holding Co, has announced its first hotel outside of the UAE. Ishraq Gulf Real Estate Holding Co chief executive officer Sami Al Ansari said: “We are looking to
expand the brand in other locations within the Gulf, the first of which will be the Holiday Inn Express Manama, Bahrain, which is currently under construction and due to open Q4 2011”. Bamsey added that eventually there could also be opportunities for Holiday Inn Express in emerging markets in the region, where IHG has already announced plans for its five-star InterContinental brand. “We have construction at the moment taking place in Libya and Syria so if you look at those as emerging markets then we’re there. You would expect us to be because we’re the world’s biggest hotel company so we’re going to be where the demand is and where the future demand is — that’s our business,” said Bamsey. “What you will see in all markets is that new markets will open with upscale properties first — as those markets mature there will be other opportunities. At this point in time we’re seeing InterContinentals in Libya and Syria and we have a Holiday Inn signed in Damascus — we’re around the whole patch.”
Hotel Management Oversight business launched by Ròya and Deloitte CONSULTANCY Ròya International and Deloitte have today signed an agreement to provide ‘Hotel Management Oversight’ (HMO) services to hotels in the Middle East. Targeted at investors, hotel owners and operators, and government entities, the HMO service will provide a channel between owners and operators to support the achievement of targets and improve shareholders value. Ròya International chief executive officer Ahmed Ramdan said: “By joining forces, the Ròya and Deloitte teams will have the ability to offer unparalleled HMO services. April 2010 • Hotelier Middle East
“As with all of our asset-management clients, our goal will be to work closely with hotel owners and hotel operators to ensure the property’s financial performance, as well as sales and marketing efforts, service quality, maintenance, and capital expenditure, are all aligned with the hotel owner’s strategic objectives and the hotel operator’s management agreement,” he explained. Ramdan signed the agreement with Firas Eid, Deloitte Middle East consulting partner. Eid said: “The Ròya and Deloitte collaboration is all about developing tailored, personalised consultation along with building trust-based relationships, creating innovative solutions and ensuring that all this array
of services is delivered by people with the skills and passion to help”. Hotels in the Middle East achieved the highest occupancy, average room rates and revPAR globally in 2009, confirmed Eid.
Data prepared by STR Global, shows that occupancy reached 61.3% for the year, while average room rates and revenue per available room (revPAR), stood at US $202 and US $124 respectively.
Ròya International chief executive officer Ahmed Ramdan with Deloitte Middle East partner Firas Eid.
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NEWS
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Summer rates strategy brings business down Arabian Adventures boss Frédéric Bardin says late offers and deals turn tour operators off TRAVEL TRADE Hotels have been warned against introducing last-minute summer offers because tour operators “can’t cope” with the ever-changing rates. Arabian Adventures senior vice president Frédéric Bardin said that rather than having to adapt new rates closer to summer, tour operators would end up choosing to deal with other destinations. Bardin explained: “The problem with the hotels is that a lot still believe that the summer of the next year is going to be better than the summers before. So ahead of time
Bardin: Tour operators ‘can’t cope’ with multiple deals.
in the second half of the year, they give us summer rates which are still outrageous, then they drop them five weeks before because they see the occupancies are not picking up.
“It’s bad because a lot of people look at what is brochured by the tour operators, they won’t come back to check the late offers. The tour operators can’t actually cope physically with updating all this, so they will deal with other destinations. We had two say that to us last year, fairly major ones,” said Bardin. “There are other destinations that give us their pricing in advance; they know it’s going to be low occupancy and the prices are going to be low,” he continued. “It’s not 20, 30 different special offers each week, which is what we get here with our 400 hotels — the tour operators don’t have time, they have to look at it,
absorb what the content is, how they are going to present it, re-price it with their mark-up, put it on their website — it’s a lot of work. “Some hotels are a bit better but we still have a lot that haven’t understood, it’s amazing. It gives more work to everyone,” commented Bardin. “June and July are never going to be hot months in terms of occupancy, June is a low season all over the world because people have finished their business trips, they’re prepared for the summer mentally. People don’t go on a break before the summer holidays with the kids. It’s human nature,” he concluded.
Celebrity chefs win top food awards Mövenpick opens second hotel in Dubai NEWING N OPE
AWARDS Celebrity chef outlets Rhodes Mezzanine, Reflets par Pierre Gagnaire, Nobu and Carluccios were recognised for their quality and service at the Time Out Restaurant Awards 2010, held on March 23 at The Address Dubai Marina. Grosvenor House Dubai’s Rhodes Mezzanine, chef Gary Rhodes’ first venture in the UAE, won both Restaurant of the Year and the Best Contemporary European title. Rhodes Mezzanine head chef Paul Lupton said the team was delighted with the achievement. “After three years of hard work and dedication, it’s great that our passion, ideals, consistency and sense of value have been recognised, with both of these awards,” he said. “There have been instances in the past where we’ve been highly commended in the category and had to walk away disappointed — but that has always encouraged us to up our game, and it’s a wonderful feeling to have got there at last!” Reflets par Pierre Gagnaire at InterContinental Dubai Festival City was named Best French Restaurant. April 2010 • Hotelier Middle East
Sunil Kumar, Gary Rhodes and Paul Lupton picked up two awards for Rhodes Mezzanine at Grosvenor House.
Reflets restaurant manager Etienne Haro said: “We are delighted to have won the French Restaurant of the year. “The celebration is certainly different than after the amazing three awards we won last year, but remaining at the top of our category shows how hard the team has worked over the last 12 months, improving on many levels and constantly giving its best throughout a hard trading period for the industry. “We are very happy as well to be Highly Commended for our business lunch, which is a great opportunity to sample what we do in a simpler format, and we will celebrate these achievements when chef Gagnaire visits Dubai from April 15-19.” Meanwhile, Nobu at Atlantis, The Palm won Best Japanese and The Dubai Mall’s Carluccios picked up the gong for Best Family Restaurant.
Mövenpick Hotel Jumeirah Beach features an infinity pool, gym, ballroom, business centre and three outlets.
NEW LAUNCH Mövenpick Hotel Jumeirah Beach in Dubai opened on March 8, 2010 at The Walk, JBR in Dubai. General manager Peter O’Connor said he believes the property will add a new dimension to the market through its innovative yet qualitative approach to business. “The Mövenpick Hotels & Resorts brand is all about reliability, consistency and attention to detail and this
will be evident in everything we do. We are confident that this new hotel will do very well here and will attract guests from the local communities as well as from our main feeder markets,” said O’Connor. The five-star hotel offers 294 rooms and suites over 19 floors, three outlets, an infinity pool, gym, ballroom, business centre and conference rooms. The outlets include three-pronged dining concept The Talk, which offers international cuisine, a sushi bar and a poolside lounge. www.hoteliermiddleeast.com
11 NEWS
Staffing tough in F&B Marketplace reduced due to economic issues RECRUITMENT There is a limited recruitment market for the food and beverage sector, according to Dubai’s F&B directors, who claim that not only is it hard to find staff but that there are very few career opportunities for senior professionals in the region. Speaking at a Hotelier Middle East roundtable held at Sofitel Dubai Jumeirah Beach, Towers Rotana Dubai director of food & beverage Leo Holli said he believed “rank and file” staff would still move jobs for a small increase in salary. “Abu Dhabi will be an issue because its hotels are looking for trained staff and trained staff is available in Dubai. For them it is cheaper to offer AED 100 or 200 more (US $27-$54) [than to train],” said Holli. The Address Dubai Mall director — F&B Domenico Iannone disagreed that money was a major motivator in 2010. “I think now people have learned their lessons, you don’t have people moving for AED 50-100 ($14-$27) dirhams more a month. Now people are looking for stability, training and career progression,” said Iannone. He predicted there would be another “migration of staff from one hotel to another” after Ramadan, but said that while there were jobs available for line staff, there was nothing on the market for senior food and beverage managers. “Anything above outlet manager forget it,” said Iannone.
Kempinski Hotel Mall of the Emirates food & beverage manager Gerrit Thiebes said: “For upper management positions it’s quite hard to find a job at the moment still, for juniors and outlet managers it’s ok, but everything above it’s still hard”. Iannone added that recruitment was challenging because of the changing economies. “Take India for example,” he said. “Three or four years ago most of the people here were Indians or Filipinos, but they can get the same job now and get paid the same in India, so why should they be here when they could be at home.” As a result, when recruiting for The Address Dubai Mall, Iannone said they went to South Africa, Kenya and Eastern Europe rather than India or the Philippines. Thiebes said it was important to recruit from China because of the increase in Asian tourists coming to Dubai and the region. Sofitel Dubai Jumeirah Beach director of food and beverage Laurent Boisdron agreed and said: “Recruitment was fascinating as we went to China and Ethiopia to recruit some of our associates”. He said the hotel offered competitive salaries of AED 1500 ($408) for a waiter but that providing good staff accommodation was more important in drawing potential staff to your hotel. “They love the compound that we have; it’s in Al Quoz and is brand new with activities all the time,” revealed Boisdron.
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Hotelier Middle East • April 2010
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Lying in the lap of luxury
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he industry is waiting in eager anticipation for the opening of The Armani Hotel at Burj Khalifa in Dubai. Set to officially launch on April 21, it will welcome its first guests two days later. The property’s iconic status as Giorgio Armani’s first hotel, located in the world’s tallest building, automatically ranks it at the topend of Dubai’s luxury hotel sector. That its design will be unique is not in question — whether it is to your personal tastes or not is a different issue — and the hotel has already been billed as a hot spot for dining by Dubai’s F&B directors (see page 35).But, will these factors alone automatically make it more luxurious that Dubai’s other five-star deluxe hotels? This brings us to the issue of ‘what is luxury’; a question that is often banded around the industry but to which I have received, for the first time, a new perspective on. Describing the hotel industry as “land-locked” and “time-warped”, Campbell Gray Hotels chairman Gordon Campbell Gray says “there is an obsession with old fashioned concepts of luxury”.
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“There is enormous waste in the five-star sector,” he says. “We have to change, it’s not even a desire, everybody has to change.” Campbell Gray believes the industry needs to reassess guest expectations, warning of “the arrival of the intelligent guest” who is “going to look very harshly on waste”. He raises several interesting points: does laundry need to be delivered in guests wrapped in tissues and ribbons, or can it be presented neatly folded in a basket? Why should cartons of “something that tastes like milk” be provided, when a little jug of fresh milk could be kept in the mini bar? And who wants 20 cookies when two perfect cookies would be just fine? For Campbell Gray, luxury “is everything you need and no more — no excess. It is about being exquisite”. Campbell Gray’s rationale is the need to keep in step with people. “If hoteliers are not smart enough to be the leaders, they need to listen to the guests,” he says. Wyndham Hotels Group president and CEO Eric Danziger adds it’s about getting “back to basics”. “We don’t need a vegetable garden in a Bloody Mary — a celery
Louise Oakley, editor
louise.oakley@itp.com stick will do. It’s the same with hotels. It’s important that we give guests only what they want and not do something just because someone else is doing it,” he says. These are fair points, and while it may take a while for guests to get used to cleaning their own sunglasses or turning their televisions on, perhaps it is better to start a move in this ‘anti-waste’ direction sooner rather than later. There are still a few weeks to go until we discover Armani’s take on luxury, but in the meantime, turn to pages 25 and 41 to hear more from Campbell Gray and Danziger. HME
DIARY DATES: A ROUND-UP OF INDUSTRY EVENTS HERE AND ABROAD IN THE COMING MONTHS April 18-21 Cityscape Abu Dhabi Abu Dhabi, UAE www.cityscapeabudhabi.com April 20-23 FHA2010 Singapore, Asia www.foodnhotelasia.com April 20-21 The Rikan Show Grosvenor House, Dubai www.rikandubai.com
The first Middle East Spa Awards will take place at The Hotel Show.
May 4-7 Arabian Travel Market (ATM) Dubai, UAE www.arabiantravelmarket.com Tumbona loungers by Gandía-Blasco, exhibiting at The Hotel Show.
April 25-27 Dubai Entertainment, Amusement and Leisure Show (DEAL) Dubai, UAE www.themeparksdubai.com May 1-3 Arabian Hotel Investment Conference (AHIC) 2010 Dubai, UAE www.arabianconference.com
May 7-10 HOTEC Muscat, Oman www.mcleaneventsinternational.com/ events/HotecMiddleEast2010 May 16-19 Global Spa Summit Istanbul, Turkey www.globalspasummit.org May 18-20 The Hotel Show Dubai, UAE www.thehotelshow.com
Hotelier Middle East • April 2010
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Bahrain’s ‘restaurant road’ Viability director Guy Wilkinson explains why Block 338, or ‘Restaurant Road’, in Manama is a one-off dining destination in the GCC that would turn Dubai’s restaurateurs green with envy
COLUMNIST lock 338 in Adliya, Manama, also known as ‘Restaurant Road’, is the only place in the Gulf where a ‘destination’ for high quality licensed restaurants has grown up naturally, independently from any luxury hotels. Now the district is the subject of an urban regeneration project by the Urban Affairs department of the Bahrain Ministry of Municipalities and Agriculture. Work on ‘The 338’, as it has been dubbed, started last year and will see more parking spaces, better traffic circulation and a new pedestrian road and square akin to Bahrain’s own ‘Covent Garden.’ Phase one is complete and phase two is planned to be ready for the 2011 Bahrain Grand Prix. Even now, Block 338’s restaurants, cafés and bars are considered the apex of Manama’s F&B sector. Mezzaluna, for example, is located in a traditional Bahraini courtyard house, and features cosy but contemporary interiors and a continental menu from a French chef. The ultra-trendy outlet is one of four from Bahrain’s Alghalia WLL, also including Zoe, a hip lounge bar with a DJ and a bistro menu, and Café Lilou, which has branches in both Adliya and Al Aali Mall, boasting interiors reminiscent of a turn of the century Parisian brasserie. The cool, minimalist Oliveto is one
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April 2010 • Hotelier Middle East
One of Adliya’s famous steakhouses is The Meat Company, which has a rooftop bar with views of the city lights.
IT IS THE ONLY PLACE IN THE GULF WITH SUCH A PERMISSIVE AMBIENCE of numerous trendy Italian and Mediterranean restaurants in the district, also including Cico’s, Mino’s and La Pergola at the multi-outlet Gulf Hotel. Camelot is a castle-themed French restaurant with a modern interior, created by club owner Karim Miknas. Another French option is the Jolie Maison Brasserie de Luxe, which serves classic Gallic fare in sequinned interiors. The elegant Ken Lo’s Memories of China is a ‘westernised Chinese’ restaurant franchise from London. A close competitor is the equally renowned BamBu (Chinese and Thai), while Mirai is a ‘new wave’ Japanese restaurant with a bar and a costly menu by Australian chef Dave Allen. The Brazil Rodizio is one of several Brazilian eateries in Bahrain to offer meat on skewers.
Adliya’s other famous steakhouse is The Meat Company, which also has a rooftop bar. Indeed, many of the restaurants in Adliya have adjunct bars, lounges or terraces, a situation that would have many of the outlet owners in Dubai’s equivalent Jumeirah district in agonies of envy. Although there are of course western F&B brands in Adliya, the prominent outlets in and around ‘Restaurant Road’ are for the most part either proudly Bahraini, or contributions by westerners wanting to creating a truly sophisticated district in their adopted country of Bahrain. Sheikh Hamad Mohamed Al Khalifa, director general of Urban Planning Affairs at the Ministry of Municipalities and Agriculture, said of The 338: “I think the thing that makes this project, and the area
itself, special, is that it has not been built with the Disneyland approach where you build something from scratch with everything new.” In what is surely a gentle dig at Dubai, Sheikh Hamad is stressing that in order to reflect the true Bahraini identity, there is no need to build fake wind towers to offset the dominance of international brands like Planet Hollywood. Just take a nice old neighbourhood and enhance it with the islanders’ creativity and a bit of help from the government. The latter comes not only in the form of urban landscaping, but also in the liberal licensing laws that have allowed Adliya’s quiet residential streets to be filled with ‘resto-bars.’ It is quite literally the only place in the Gulf where there is such a permissive ambience. The 338 is in some sense the government’s model neighbourhood as regards how the question of alcohol should be dealt with. The implication is that it is safe, urbane and civilised, much like the country itself, and that drinking is not an issue. This stands in stark contrast to the reality experienced in other parts of Manama, most notoriously, Exhibition Avenue, where drinking and prostitution are synonymous with the worst kind of intra-regional tourism, which many Bahrainis abhor. It is for this reason that the alcohol licenses of the one- and two-star hotels were recently revoked and why there are some elements of the parliament lobbying for much more far-reaching restrictions on alcohol in the country. As so often in its history, Bahrain stands at a cross-roads, but the country can be relied on to make a civilised compromise. 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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Putting the value into engineering
VE Solutions president Arkady Siterman explains how to save money and energy by streamlining your hotel’s MEP systems © dbox
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LOBBYIST very once in a while, an architect is known to lament about design changes made at a hotel under construction, complaining perhaps about the way the gorgeous marble entryway he envisioned has been ‘value-engineered into linoleum’. Sentiments like that make real value engineers cringe — because such design changes are not in the nature of our craft. Value engineers do not specify inferior materials or scale down architectural ambitions. Those aesthetic decisions are the prerogatives of developers, operators, and their architects, and not the domain of value engineers. What we do is recommend more-efficient ways to design, construct, and operate buildings. We don’t take out coveted elements; we put in value. In general, when value engineers work for luxury hotels, either in the documentation stage for new hotels or in the renovation stage, they know that maintaining the design intent, comfort of guests, and reputation of the hotel brand are paramount. Value engineers assess both the capital and operating costs of the project. Developers enjoy savings in construction, while operators benefit from long-term efficiency.
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April 2010 • Hotelier Middle East
Silverstein Properties chose VE Solutions Group to work on the Four Seasons Hotel, New York — above, centre.
EXPERIENCED VALUE ENGINEERS KNOW THAT EACH LUXURY BRAND — WHETHER FOUR SEASONS, MGM, OR RITZ-CARLTON — HAS ITS OWN STYLE AND OPERATING REGULATIONS THE EARLY GAME Every experienced value engineer has a war story of a tense phone call received from a developer who has suddenly felt a chill, seen a banker’s shadow, and who quickly wants to pare down expenses. The project is
under construction and tempers are already tested. For value engineers, these ‘late in the game’ engagements are the ones of shortest duration, sometimes completed in just a month. Ironically, all parties might concur that they seem
like longer assignments, often consisting of late nights, ego-wrenching design fixes, and cool handshakes. Such scenarios are best avoided. The time for skilled value engineers to arrive on the scene is early in the documentation stage. Dedicated value engineers focus on their work continuously, and thus know the best technical and innovative solutions to mechanical, electrical, and plumbing (MEP) challenges, as well as structural needs — before shortcomings become permanent. They are knowledgeable about applicable codes, standards, regulations and operator guidelines. Additionally, LEED criteria also evolve, and often can be met in moreefficient, less-costly ways with the insights of a dedicated value engineer who will maintain or increase the sustainability goals. Most important for the hotel market, experienced value engineers know that each luxury brand — whether Four Seasons, MGM, or Ritz-Carlton — has its own style and operating regulations. Such institutions require specific, appropriate plans, not “cookie-cutter” solutions.
FRESH EYES Though dedicated, design engineers on large projects are often “under the gun” to deliver extensive plans on schedule, and so sometimes return to known methods — especially in a building boom, when deadlines loom yet the next lucrative project beckons. Moreover, some designers prefer to specify oversized equipment or systems, in the erroneous belief that bigger is better or to allow for a margin of error. We have seen such strategies actually inflict harm, such as when oversized air-conditioning equipment led to too-rapid cycling, and thus excess humidity. Bigger is not www.hoteliermiddleeast.com
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always better — although it is usually more expensive. There is never a good time to waste money and reduce ROI, even if cups runneth over with gold. If equalquality construction and systems can be built for less and use less energy and if systems can be ‘optimised’, then they should—boom times or not. Still, human nature is what it is. And so in today’s slowing market, we see increased demand for the services of value engineers. Developers have the time and inclination to make improvements to minimise operating costs or deliver better product for the same or smaller budget.
COMMON IMPROVEMENTS A luxury hotel is expensive to build. Roughly one-third of the construction cost is in the mechanical, electrical, and plumbing (MEP) systems. As a rule, the more luxurious a hotel, the higher the energy bills. The highend lifestyle is energy intensive. The biggest energy user is a luxury hotel’s heating, ventilation, and air con-
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UNLIKE THE DESIGN ARCHITECT, WHOSE WORK IS HIGHLY VISIBLE, THE WORK OF THE VALUE-ENGINEERS IS CLOAKED ditioning (HVAC) systems. Therefore, MEP value engineers generally examine HVAC systems first. At VE Solutions Group, we not only look to make HVAC systems more efficient or appropriate — that is, optimise the systems — we also consider whether the layout of such systems can be streamlined or condensed. In large enough buildings, this strategy has been very rewarding. In one case, due to optimised equipment and its layout, two floors of mechanical equipment were condensed into one, freeing up valuable square footage for additional revenue-producing areas — think ROI.
Additionally, by resizing and rerouting ductwork, piping, and cables, value engineers can bring about higher ceilings for many guest quarters or meeting rooms. While this may have a less-measurable effect on ROI, architects and developers say it enhances the aesthetic value of their designs, and thus, the experience of the hotel guests. Experienced value engineers make a “top view” assessment that includes all ramifications of the MEP systems. Many upmarket developers now combine hotels, permanent for-sale residential, and retail into mixed-use complexes, with different standards for each use. A value engineer with experience in all building types provides elegant, contextual solutions rather than “one size fits all” recommendations.
UNSEEN, YET VALUABLE Unlike design architects, whose work is highly visible, the work of value engineers is cloaked. Optimised MEP systems and better con-
struction methods are not what guests write home about. The hotel experience of fresh air, high ceilings, and copious hot water is taken for granted by guests — though woe betide the premier hotel operator who fails on these basics. In the end, value engineers do not mind our anonymity. We are respected by those who treasure good construction and buildings — and respect the bottom line. There is satisfaction in knowing that behind the most glamorous, compelling or renowned of façades was a value engineer ensuring the building performed efficiently, for consumer, operator, and owner. HME As founder and principal of VE Solutions Group, Arkady Siterman brings more than 35 years of value engineering experience to high-profile international and domestic projects. A true proponent, he believes value engineering is essential to maximise ROI on all projects. Siterman is a member of ASHRAE and SAVE International (The Value Society). He holds a Masters Degree of Science in Mechanical Engineering.
Hotelier Middle East • April 2010
TOUGH TALK K
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The perfect hotel manager Se Seven Tides Hospitality managing director Mike Scully says the brand ma reign is over and ask the entrepreneurs to step up and take control, man’s as he reveals exactly what hotel owners are seeking from their managers Chris Jackson/Getty Images
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THE OWNER’S VIEW he business world is changing and management needs to change with it. Over the last 30 years, we have all noticed that management evolves in cycles — from the entrepreneur running our companies, to the brand marketing specialist taking over, through to the accountant taking the reins to either squeeze additional profits or start the cull as the economy gets overheated. We have now witnessed the cull and I believe are heading for the new regime to take office. It is time for the entrepreneur to strike once again and repair the damage done by our overzealous marketing men, who merrily tried to make our hotels look and feel like a can of soup with no individuality. With the brand man’s belief that all good things came from the ‘factory’, very little in the form of flair, imagination or individuality was allowed at property level. Zealous accountants have now made their cuts, which in many cases became necessary due to management not being able to fill hotels or restaurants — part of the problem being that management had not been taught at ground level to initiate and create business as it was always being supplied by the ‘factory’. Now that the cupboard is bare and the ‘factory’ is not producing, it is time for the entrepreneurial “operators” to once again fly to the rescue. I believe that we should all get inspiration from fellow industrialists
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April 2010 • Hotelier Middle East
Sol Kerzner is one of the entrepreneurs highlighted by Mike Scully as someone who has created the benchmark for new graduates, pictured here smiling as Nelson Mandela arrives at the new One&Only Cape Town.
IT IS TIME FOR THE ENTREPRENEUR TO STRIKE ONCE AGAIN AND REPAIR THE DAMAGE DONE BY OUR OVER-ZEALOUS MARKETING MEN
today’s market. I believe that this is short-sighted and leads to bubbles, which ultimately lead to crashes. More importantly, 1D operators do not create long-term value and I believe that governments will legislate against the practice of bubble creation, as we are now seeing with banks. As importantly, owners are looking for managers with passion for their product and industry. We live and work in a capitalist society; however, it is important that we maintain socialist virtues. Is it acceptable that families, lives and aspirations can be destroyed and children’s education and homes can be taken away, all by the whims of the 1D operator who desires to appease shareholders after having created a bubble. Managers in our industry do not work nine to five, but equally are not expected to aimlessly walk around their properties — instead they should be mixing with their guests, analysing their competitors, and actively taking business from them through knowing their competitors’ weak points, strengths and customers through firsthand experience. Too many times in recent years I have heard the comment “why do we not see other managers around”. How are they able to understand their market if they do not mix within it? And I am not talking about the token monthly meal in a competitor restaurant on expense accounts.
STARTING WITH GRADUATES and we only have to look at the most successful of these to understand that the best of them have all three of the above qualities. I look at Richard Branson as one of these. First and foremost, he is an operator having created innovative businesses; secondly he is a master of the brand in creating Virgin; and thirdly, he is obviously very financially aware.
The same could be said for Steve Jobs of Apple or Donald Trump. I call this three-dimensional (3D) management as it encompasses three pillars of successful management. Why then do modern corporations insist on hiring one-dimensional (1D) CEOs, presidents and managers? We know the main reason and that is the drive for shareholder value in
Our graduates have to understand that education at college is only one aspect of their learning and that theory merely prepares them for the industry. Enthusiasm, involvement and participation on the ground is what will make them into successful managers. We are only as good as our most recent successes, which means we can never rest on our laurels; graduates who have not created www.hoteliermiddleeast.com
TOUGH TALK success have to learn how to and that will be one of their most important lessons. Equally, many managers who have operated for years in the industry have not created success themselves; they have only been in some cases part of it due to a very favourable economic climate. Following the likes of Richard Branson or Sol Kerzner in our industry will give graduates benchmarks to go by, as these are two professionals who have created success through their own ingenuity and have most of the 3D qualities that I am talking about. I also believe that ownership is key to motivation and job satisfaction and that as owners and operators we must never lose sight of this. Similarly, managers must take the challenge upon themselves to succeed through good management practices. We want to see our managers at charity events, sports events, product launches, concerts, promotions and at events that the competitor is running successfully and profitably — they need to be pillars of society. Corporations must never make the same mistake and downgrade the quality of their management in the belief that the brand and system is bigger than the individual. With the choice now available to the customer, it will be the properties where the management is experienced, motivated and good that the real difference will be made and owners will see the best return on their investment. We only have to look around town to see the properties where the management “know their stuff” by looking at their marketing and promotions. Generally those managers who are not driving events and food and beverage to their hotels are not driving business to their hotels, and this very often can be seen in the month-end competitive results — one thing even the best manager cannot hide from his owner! 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.
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WHAT THE OPERATORS SAID DARROCH CRAWFORD MANAGING DIRECTOR PREMIER INN HOTELS LLC For me, hotel general managers need first to be great leaders, with the ability to pick great talent. The best and most successful hotels are operated by a team of good and motivated people who work together to first secure business, maximise its potential, service it brilliantly, measure its impact, lock it in for the future and understand its value. Hotel GMs don’t need to be great marketers, accountants or chefs, but they
NAIM MAADAD MANAGING DIRECTOR MINOR SPAS GLOBAL & HOTELS MIDDLE EAST Without any iota of doubt hotels should be run by entrepreneurs. It is a lifestyle business which should be driven by entrepreneurs who have a passion for excellence. Success will come from aggressive and creative marketing strategies and a balance of real “hospitality”. The best managers are those who can manage business and lead people. Where failure lies is when there is a crossed wire and the focus is on just “managing” people. True leaders are those who focus on creative marketing and driving business — not cost cutting and staff layoffs. We need
CHRISTOPHE LANDAIS MANAGING DIRECTOR ACCOR HOSPITALITY ME Hotels should be run by entrepreneurs because they are business people with a marketing flair. They are able to anticipate and adapt to trends and business needs, as well as have the courage and vision to spearhead growth and move the company forward. The financial crisis has highlighted the fact that we need innovative managers with a very good grasp of economics. We need entrepreneurs who are prepared to take risks and think about the mid-term and long-term growth instead of looking at immediate returns. The growth and variety of new brands
must know how to manage them. It is important to build good relationships with key customers, although many of the same skills of communication serve both the colleague and the guest equally well. Integrity is important too. Do what you say you will do and be honest. I was fortunate enough as a young manager to learn from some great GMs, but I always felt I learned as much from the bad ones as the good, because I could see the damage that they did, from which I learned what not to do. So in summary, when the chips are down, look for great leaders with honesty, integrity and commitment and you won’t go far wrong.
to give guests a reason to return despite the challenges we face. Those who think out of the box and drive their intuition with a passion to succeed are the only ones who have ensured long-lasting success in this global industry of hospitality — those who believe in creating their own path where none lies, and not copying what already is. Ambition and determination to succeed are the key words for young graduates to be successful in the hospitality industry. They need to learn management skills in each discipline by climbing the ladder and thereby gaining vital exposure and critical experience — there are no short cuts. Those who believe in taking the lead and following their intuition would con-
tinue to be successful at all times; there is no restriction at all for entrepreneurs in this industry, only opportunities.
and hotel/ restaurants concepts being introduced into the hospitality market shows that entrepreneurs are not restricted. In fact, their creative and innovative ideas are making the industry more interesting, robust and vibrant. The main traits we look for in a manager are: the capacity to unite people on their projects to make them happen; capacity to think on their feet and fast and yet to be able to step back and take a broader view for a strategic outlook. Hotel managers today more than ever, need to have a high business acumen and be well versed in commercial interactions and strategies. In terms of role models, Paul Dubrule and Gerard Pelisson who founded the Accor Group more than 40 years ago were definitely visionary. Both of them have driven
the development of the economy to midscale hotel segments as standardised hospitality outside of the United States.
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Sixth sense
Campbell Gray Hotels chairman Gordon Campbell Gray explains why he follows his instincts when it comes to hotel projects, with the success of boutique hotel Le Gray, Beirut testament to his intuition
CHAIRMAN INTERVIEW here is very little that Gordon Campbell Gray doesn’t see in black and white. A self-confessed control freak, he is dedicated to the hotel industry and a firm follower of his heart when it comes to business decisions. “I can have an instant reaction for or against a situation,” says Campbell Gray during our exclusive interview at One&Only Royal Mirage in Dubai. “You’ll never see a tumbler or a wine glass that wasn’t approved by my office, so I’m like a madman.” But how does a failed architect and loyal charity volunteer (Campbell Gray is now vice president of Save the Children, which he started working with at the age of 22), go about setting up his own hotel — Feathers in Woodstock, UK — and then expanding with namesake hotels from London to Antigua? Campbell Gray explains he was swayed from his “frugal Scottish upbringing” by his “glamorous aunt”, who regularly took him for dinner at Claridges in London. “I suddenly got the taste of being in the glamorous industry of hotels. My parents totally disapproved of me being a hotelier; they thought it was terrible,” he says. But has he proved them wrong now? “Yes, I really have. It was what I was meant to do,” asserts Campbell Gray. After a 10-month stint at hotel school, which was “a complete waste of time”, he started working in hotels in London, doing everything from working in the kitchens to housekeeping.
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Pictured here at One&Only Royal Mirage in Dubai, Gordon Campbell Gray revealed his plans for the development of the Le Gray brand following its success in Beirut.
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Hotelier Middle East • April 2010
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in partnership with designer Mary Fox Linton, capturing the interest of hoteliers worldwide. “I didn’t know how it would be received, I didn’t know how the Middle Eastern guest would like the design because it’s not flashy but it’s not minimal,” says Campbell Gray. “I would say 70% of the guests are intra-Middle Eastern and they love it — they are really very sophisticated, they travel all over the world, so they love the fact that is a modern hotel but it’s not silly modern — it’s kind of modern classic.”
BRAND EXTENSIONS
I’VE NEVER BEEN STRATEGIC, I’VE ALWAYS BEEN OPPORTUNITY DRIVEN “I knew I had to do that but I had the vision always to do my own thing really. I always wanted to paddle my own canoe and have my own hotel,” he says, realising that he “wasn’t born for the corporate world”. Through continuing to follow his instincts, Campbell Gray has slowly begun to build up a portfolio of four Campbell-Gray branded hotels — One Aldwych, London, Dukes London, Carlisle Bay, Antigua and Le Gray, Beirut. The hotels are a hybrid of ownership and management, says Campbell Gray, except for Dukes which is owned by Seven Tides in Dubai and so a pure management contract for Campbell Gray. “We literally get offered I would say two new projects every week,” reveals Campbell Gray. “But for me the criteria is very firm — I’ve got to want to be in that place, I’ve got to believe that commercially it would work, but also I have to really like the people I’d be working with. We were offered a fantastic project recently in an Eastern European capital; I think it would have been a fantastic project, but I didn’t like the people. “We are successful, we’re small, we love what we do; I’m not greedy to personally make lots of money for April 2010 • Hotelier Middle East
me, I want successful ventures.” But while Campbell Gray may not strive after the upcoming property pipeline of the internationally branded hotel chains, he does have his private wishlist of locations. A destination that Campbell Gray has always wanted to have a flag, despite the multiple of warnings of analysts, was Beirut in Lebanon and his dream finally came to fruition last year with the opening of Le Gray, Beirut to much acclaim. “I have never been strategic, I have always been opportunity driven. With Beirut we were asked if we would like to do it by people who loved One Aldwych and I went to look at the site and loved it — it totally won my heart. “All the analysts who I spoke to said ‘you’re crazy, don’t go to Beirut, go to Dubai if you want to go to the Middle East’. That was four and a half years ago. I said ‘I don’t want to go to the Middle East, I want to go to Beirut, which just happens to be in the Middle East’. I think that’s the difference,” says Campbell Gray. The opening has certainly brought Campbell Gray Hotels to the forefront, not only in the Middle East but across the globe, with the unique interiors created by Campbell Gray
This recent notoriety has caused Campbell Gray to take a closer look at his Campbell Gray Hotels brand, which until now has been unified by a shared philosophy rather than hard and fast brand standards. “Each one is its own creation. And I would say that in the end they feel like cousins but not brothers and sisters,” says Campbell Gray. As to whether guests and consumers understand that One Aldwych is run by the same people as Dukes for example, he adds: “I think it’s gen-
tly known. We’ve never made the brand a big deal, but as we add to the portfolio and particularly with the dazzling opening of Le Gray, which has had so much attention, it’s really put the brand in the spotlight and we’ve suddenly realised that maybe we should do it more. “Everyone in Beirut has been talking about ‘the Campbell Gray brand coming’ and we never really thought of it as a brand. Suddenly it is a brand and everybody wants a Campbell Gray. So we’re just trying to be very careful and have just a few — I don’t want too many,” says Campbell Gray. He reveals that there could be one or two more Le Gray hotels, however, and says there are plans to roll out Le Gray’s Pure Gray spa brand into all the hotels. There will also be a Gallery Gray — Campbell Gray is an avid art collector and has personally sourced hundred of pieces of art for Le Gray — and a Pure Gray chocolate shop at Le Gray, Beirut and maybe in London. “We’re really flogging my name over here at the moment but everybody just seems to love it,” laughs Campbell Gray. HME
FUTURE PROPERTIES Following on from the success of Le Gray, Beirut, Campbell Gray is looking at two more projects in Lebanon — “one will be by the seaside and one in the mountains”. In total, he says there are six hotels at the design stage, including one in Montpellier, France and an environmentally-considerate hotel in Grenada in the Caribbean. In addition, there is the potential to takeover the management of seven hotels, reveals Campbell Gray. “Somebody wants actually to slot their company into mine and it comes with seven hotels ready made. I don’t know if that’s something I want to do, I want to be really careful. I have no vast expansion plans but I’m very open to taking on two or three, because it take so much time to create a hotel,” he says. “I think good design takes time, the art collections take time, recruiting takes time, and I just think ‘let’s all slow down and do it beautifully and
make it work’ rather than roll it out. I don’t have some plan to roll out x number of hotels and sell them — everything is built to last.” Indeed, what really infuriates Campbell Gray is the concept of the area vice president “who comes in to whip up the profits” but ultimately leaves destruction in his wake. “I find it terrible the idea that everybody on their watch wants to make more money but you do see brands and companies very damaged through short term goals — everybody working for me is about long-term, it’s not about making money this year, it’s about making sure we’re in great shape through the recession, through everything and we’ve ridden through that very well. “When it’s your own money you take it more seriously and if you have three of us investing in a project we want to be sure we know what we’re doing — I think that makes the big difference,” concludes Campbell Gray.
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Creek ambitions
Radisson Blu Hotel, Dubai Deira Creek’s new general manager, Janet Fitzner, explains why she has already set a target of establishing the creekside property as Dubai’s preferred city hotel speaks such good English. We have to look after the employees because without the employees I am nothing. I am only a little one among 650 people. This is the basis of what we have, that is what we have to see.
GM INTERVIEW Following your first two months in the city, what are your views on Dubai’s hotel industry? I think the Dubai hotel market is very, very competitive of course — we have all the chains here, beautiful hotels, newest trends and fashion, and in terms of the F&B concepts, it’s amazing what we offer to the guest. What I like very much is the service orientation here in Dubai, I think this is just amazing here. This is especially so here in my hotel —I don’t have this level of friendliness when I go to another — but I think the service quality is of a good standard here in Dubai. How would you like to see Radisson Blu Hotel, Dubai Deira Creek positioned in this market? I want to be the preferred city hotel here, that’s of course our ambition. We are long established, although this doesn’t mean anything, but I think we have proven that we still deliver an excellent service, the product is very special with lots of facilities we offer to our guests — we have 16 outlets so the guest has lots of choice. And I know that I am not the only hotel here in Deira but I am always fascinated by the location. I love the beach but when I come to Deira I am overwhelmed. You have the history behind you and in front of you, as well as views of Burj Khalifa, so I think our location is a very big advantage as well. You have made an active effort to be a very visible GM in your hotel; why is that important to you? I think that is one of the roles of a hotelier that I like. That’s why I like to be in operations — the possibility to meet the guests and talk April 2010 • Hotelier Middle East
The hotel is at full occupancy [March 16]; why is this and how do you plan to continue it? Well it is high season now in Dubai I think. I came in December for a handover then I started in January. I think Dubai has such high occupancy levels, which is amazing, so the demand is here and the city is attractive for people. I was at ITB and it was interesting for me to see I think a very professional promotion — Kids go Free from DTCM and Emirates — for the summer to help all the hotels to fill up the rooms and get people in to the city. It’s very nice as a family approach for hotels who are family oriented or who can host that — there are lots of GCC people here for the summer for shopping and spending times with kids. We have a lot of flights out of Europe, so it’s of course helping us, so I think this is a very nice promotion.
I WANT TO BE THE PREFERRED CITY HOTEL HERE, THAT’S OF COURSE OUR AMBITION to them — that is how you get new ideas. The guests give comments about what they like and don’t like — they give good recommendations and that’s how you improve either your service or your product Plus, they know Dubai well. I am a communicative person but the problem is you have to keep your time for this. If you are new somewhere you can’t be lost
behind your desk; with so many employees, I have to focus on them. What I enjoy here is that everybody understands you because everybody speaks English — it used to be that in Poland I would have to take somebody with me to translate because I didn’t speak fluent Polish so not everybody could understand me. But here, with 53 nationalities I am impressed that everybody
What are your priorities for business going forward? First of all, I am just getting an overview of the hotel, so I only have two and a half months, which is not that much of a solid background to get into the details. I think this is a time for me to sit with my team and consolidate things, just review what strategies we have, how to develop this year and then we are thinking ahead to next year for the business planning process and we need to adapt to the market. We have just done a survey again for conference and banqueting for example. So if you see that occupancy in conferences and banquet-
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ing has gone down, then of course we have to see why this is. So one of my focuses now is meetings and events, and a lot of our business is catering so you also need to look to this area. Rooms is running very well, we have the comparison figures from the benches and we also carefully watch this. I have reviewed the marketing plan, we just revised it according to the budgets. You have to also look at your forecasts into the next three months and so as each month ends we review everything again. You have joined the ranks of a handful of female GMs operating in Dubai; how does that feel? You have to make a decision at a certain stage if you are a female because in order to be a GM in the hotel industry you have to be flexible and moveable and sometimes this doesn’t fit into your life. But I think there are also visible changes so that maybe in the future this will change and moving will not
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be requested as much anymore. Maybe in the future we will see this because of course the younger generation has different demands to my generation, and the hotel indus-
try also adapts to the new demands of the younger generations. But whether a man or a woman, we have to see that the hotel is delivering our results and we achieve
this with good employee satisfaction and each woman or man has to work on how to achieve this — I think in the end whether a GM is a man or woman doesn’t matter. HME
ABOUT JANET FITZNER German-born Janet Fitzner took a fairly bumpy path into the hotel industry, despite it always being her dream to work in hospitality. After persuading her disapproving parents that she should go to hotel school, Fitzner undertook a threeyear apprenticeship, but following an experience in a private hotel in Germany, she decided after two years that it was not for her. Instead, she signed up to study economics specialised in the tourism and travel industry, writing her final diploma about marketing and hotels. Her aim was to work for a tour operator in hotel purchasing, but with tour operators keener to give her a job in accounting because of her economics
qualification, Fitzner found herself back in hotels, starting her career in the marketing department for InterContinental Cologne in 1988. She joined Rezidor in 1992 as director of sales and marketing at the Radisson SAS Hotel in Düsseldorf and since then took on roles as revenue manager and executive assistant manager. Fitzner’s first GM role was at Radisson SAS Hotel in Hannover in 2000. In 2003, Fitzner moved to Poland as GM of the Radisson SAS Hotel in Szczecin and was then appointed GM at the Radisson Blu Centrum Hotel, Warsaw in 2006. In mid-2007, she was promoted to district director of Poland, overseeing six hotels — her most recent position.
Hotelier Middle East • April 2010
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Digital evolution At its annual in-house conference, Mövenpick Hotels & Resorts demonstrated that a hotel chain’s digital strategy should be a combined effort drawing on the resources of all departments to ensure its success
TALKING HEADS he buzz surrounding online marketing, social media and electronic distribution has continued into 2010, with many hotel chains ramping up their efforts in the digital arena. To harness the interest of its staff in this field and address the issues that are bringing working practices of different departments much closer, Mövenpick Hotels and Resorts themed its annual conference appropriately and hosted its first Digital Evolution Conference in February. The event brought together the sales and marketing, revenue management, e-distribution and communications teams from corporate office, with some full group sessions and other targeted seminars over a two-day period. Hotelier was there to get the inside scoop and meet with the programme organisers — e-distribution manager Middle East Artour Severinov, vice president revenue management Middle East & Asia Anita Markiewicz, vice president sales & marketing Middle East Toufic Tamim and director of communications Middle East Elaine Nettleton. Here, they outline the rationale behind the conference and the feedback from Mövenpick’s employees across the region.
T
April 2009 • Hotelier Middle East
Why did the four departments team up to organise the Digital Evolution Conference for 2010? Anita Markiewicz: We all need to work together better for a common “distribution” goal. It is a sad fact that in this part of the world we seem to always be playing catch up with other areas such as the US or Europe who are more advanced and have more adult digital natives than in the Middle East. But we are surely getting there. This is summarised in the Tom Wilson quote: “Many of us are more capable than some of us . . . but none of us is as capable as all of us!” Artour Severinov: The reason behind our decision to do this conference as a combined one for all four departments is because digital media has
become a driving force in the distribution progress and we have to stay ahead of the industry trends. There has been an incredible development within the digital environment in terms of new technology, processes and e-marketing techniques and we wanted to address those with our hotel teams in order to enhance their knowledge and capabilities so they can utilise it to its full potential.
[L-R] Anita Markiewicz, vice president revenue management Middle East & Asia; Artour Severinov, e-distribution manager Middle East; Toufic Tamim, vice president sales & marketing Middle East; and Elaine Nettleton, director of communications Middle East, all at Mövenpick Hotels & Resorts
become less defined and there is more overlap. This naturally translates into the hotel operation so we wanted to bring everyone together to consolidate skill sets.
Toufic Tamim: The digital era is here to stay and we need to embrace it and set future strategies. In the past 12 months the four departments in the area office — sales and marketing, revenue management, e-distribution and communications — have worked closely together as the boundaries between our roles have
THE CONFERENCE DEFINITELY PROVIDED AN INSIGHT AS TO HOW MORE BUSINESS IN ALL SEGMENTS IS DONE ONLINE AND IF YOU ARE NOT VISIBLE WITH THE RIGHT INFORMATION, FORGET IT! www.hoteliermiddleeast.com
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THE DIGITAL EVOLUTION HAS CHANGED OUR CUSTOMERS’ PREBOOKING RESEARCH PATTERNS AND ACTUAL BOOKING BEHAVIOUR
Elaine Nettleton: At the heart of all marketing campaigns is a good communications platform and so it is imperative for the communications department to be actively involved with the other departments. This conference was the perfect springboard to bring everyone together for a common goal.
as writing and distributing news releases are still necessary, the focus has shifted to a more active engagement with people in the online arena. No longer can we just talk at our customer, now we have to listen and we have to connect with them in order to get our message across.
Why is it important for your division to be part of the Mövenpick digital evolution conference? AM: Revenue management is an integral part of the distribution process, for rates and availabilities, just as each of the other disciplines are equally important, one without the other does not work, so it is imperative for each one of the team to appreciate, understand and support the whole process. One cannot stand alone for long.
TT: Last year 103,000 room nights were generated through our proprietary website www.moevenpick-hotels.com, making it the largest single distribution source. It is therefore important that the sales team continue this momentum by focusing on online content
EN: The role of the communications manager in hotels is changing. While the basic PR skills such
and competitive offers — without losing sight of the other distribution and business channels. What were the highlights of the conference for your respective teams? AM: The conference provided an insight as to how more business is done online and if you are not visible with the right information, forget it! The other message was that there is a greater need than ever before to invest in on-line and reduce printed material, invest in qualified people and to work together to complete the whole efficient and successful cycle.
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WITHOUT A SOUND DIGITAL STRATEGY HOTELS WILL NOT BE ABLE TO SURVIVE IN THE LONG-TERM vations, it also allows the rates and availabilities to be controlled by the hotel revenue team empowering them to yield more. What ideas did delegates raise and how you are going to pursue these? AM: Some delegates highlighted the need for technical training; this will be covered in follow-up face to face and on-line sessions. AS: I absolutely loved the e-ideas submitted by the hotels for our e-idea competition. The winning idea to feature local events, conferences and functions prominently on the brand website to provide useful local information and drive relevant reservations online was simple really but hugely effective. AS: It was great to introduce the “E-Distribution Matrix” to the team, a comprehensive tool that enables them to find more information and learn about the interrelation between the departments. Another interesting session was the “Seamless Connectivity”, which certainly sparked many debates. EN: What a lot of PR professionals tend to forget is that online editors are focused on news stories and on the articles that generate traffic to their site and stimulate feedback from readers, and so the workshop on online PR highlighted for the team, the need to grab the editor’s attention through snappy headlines and unusual angles in order to get articles published. TT: The highlight for the sales and marketing team was definitely the seamless connectivity session. Seamless connectivity is a term used in the industry to refer to emerging technologies, where the connection and flow of information between systems is never broken. Not only does it allow a direct link between hotels and travel agents for rates, availabilities and reserApril 2009 • Hotelier Middle East
Can you explain how the growth of digital solutions for hotels means you now integrate more with your fellow departments than before? AM: We use e-learning tools for regular training sessions, remote support and conference calls. We also have hi-tech video conferencing facilities that allow us to connect with the other area offices around the world and we have an intranet system where common data can be uploaded and downloaded and be shared easily. TT: It is important to remember that the digital strategy is not in the hands of just one person. It is a combined effort between revenue management, sales and marketing, e-distribution and commu-
nications. Between us, we are, if you like, a digital committee who meet on a regular basis to plan and implement digital strategies and this is how I see our hotels functioning more and more as we move deeper into the world of online. Are there some departments in the hotel you find it hard to convince of the importance of going digital? AM: We still have to keep the digital tech talk to a minimum and ensure we explain in simple language as, if you lose your audience due to lack of understanding, you are sure to then lose their interest too. This was step one for a wide audience — to keep them in the loop and know where we are heading. Specific, technical training is given to those who are ready now and we will continue to grow the knowledge base.
In terms of maximising your department’s digital performance, what is your wish list of technology solutions you would like to invest in? AM: There are so many things to buy — technology, marketing, advertising, positioning, connectivity tools etc. You can buy any of these because it’s new or your neighbours have it, but you have to consider is it always a wise purchase which will give a return on investment and will not be outdated soon after you have bought it? We have all the tools, technology and networks in place to maximise our performance — our teams are what will make the difference — and money to spend on advertising, search engine optimisation (SEO) and search engine marketing (SEM) will of course be a bonus. TT: I believe that more money should be spent on SEM and SEO and the optimisation of our website. Also on my list, although this is soon to be a reality, is the redistribution of our advertising spend into online media and electronic direct marketing (EDM) campaigns.
TT: Change is always difficult and so any new initiatives must be cascaded down through the hotel so that the whole operations team can grasp the concepts and embrace and understand the changes we are making. The same is true for digital marketing. I would say that the financial department is generally happy with online marketing because it cuts down on things like print costs, which are associated with more traditional types of marketing. However, the most important thing for any department is the fact that online campaigns reach a wider audience and are measurable, so we can see what works and what doesn’t.
I AGREE THAT MORE MONEY SHOULD BE SPENT ON SEO AND SEM BUT I ALSO BELIEVE IN THE POWER OF SOCIAL MEDIA AND THIS IS WHERE I WOULD INVEST www.hoteliermiddleeast.com
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FIVE TOP TIPS TO STAY AHEAD IN THE DIGITAL EVOLUTION 1. Focus on total hotel revenue management and increase revenues from existing customers.
2. Maintain a strategy of controlled rate flexibility by segment based on demand to optimise revenue opportunities.
3. Back to basics. Improve market coverage through increased face to
face sales — if you want to double your business double up your sales calls.
4. Redistribution of advertising bud-
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www.schaerer.com EN: I agree that more money should be spent on SEO and SEM but I also believe in the power of social media and this is where I would invest. This is probably more of a resource issue though as the whole social media arena is one that requires dedicated expertise — it is not just a ‘nice to have’ add-on to the communications department. What environmental considerations have come into your desire to further the digital evolution and how will these save energy? TT: E-marketing will replace traditional printing to a large extent in the coming years cutting down on print costs. We have phased out our newsletter, global directory and meeting planners and are now doing this online. Similarly, how will some of your strategies save revenue? TT: I forecast that an efficient digital strategy may increase revenues through the various digital channels by at least 25% year on year. This is a bold statement I know but this has been the trend for the past four years and I believe it will continue. According to PhoCusWright, 2010 will be the first year in which online bookings will supersede the offline bookings in the USA. It will not be long before the same thing happens in our area. I believe that without a sound digital strategy, hotels will not be able to survive at all in the long term. Can you summarise what you would like to achieve in terms of digital evolution in 2010? AM: We are expecting to double the online revenues, not only due to www.hoteliermiddleeast.com
cohesive and strategic distribution planning, fair pricing (best rate guarantee), relevant and accurate on-line content but also due to the natural on-line penetration of the Middle Eastern and Asian source markets as awareness of the Mövenpick Hotels & Resorts brand extends its digital reach. AS: The digital evolution has changed our customers’ pre-booking research patterns and their actual booking behaviour. Adhering to their needs, we are aiming to increase our e-channels production by being more pro-active and efficient in utilising the current and emerging technologies. We will continue to build a solid knowledge base and expertise within our teams, so that they have got the tools to remain on the cutting edge of the industry. EN: The immediate future is all about creating opportunities for people to engage with our brand and the company will use technology to do this. We will achieve this through social media, interactive email campaigns and through thought provoking online articles. We have already made significant inroads by monitoring our online media and consumer generated reviews and I see us expanding on this in the year to come. TT: This year the company will be piloting seamless connectivity and we will also be launching a major SEO project. In addition to this, we are planning to improve our online request for proposal (RFP) process – an area that I believe definitely has room for improvement. HME
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Table talk Dubai F&B directors met at the new Sofitel Dubai Jumeirah Beach to consider why fine dining outlets and bars are performing well in the current climate and to assess the latest dining hotspots ROUNDTABLE F&B teams generally have less staff than in previous years, as a result of the downturn; how has this affected operations? Gerrit Thiebes: When I started we had 190 service-only but last year we stopped recruiting to bring this down; we now have 160. We reduced it drastically with restructuring and to boost staff motivation, we give different responsibilities and move staff more often between the outlets so they get a feeling of what is going on in other restaurants and can tell the guests. Domenico Iannone: I think with the credit crunch there has been a draswww.hoteliermiddleeast.com
tic switch from numbers to quality. You don’t want anymore to have three or four waiters looking after one table, you want one guy you can rely on, who can take ownership and look after the guests, and who genuinely cares about what he is doing and has a passion for food and beverage. GT: Last year’s recession was quite helpful to wash out those who were weak or not motivated. Now you have only the top performers. It was quite a good exercise to keep the people that you trust. How has the downturn impacted your fine dining outlets? Leo Holli: There was a decrease in
demand but not a big one. The good thing is you can see it stabilising now; it’s not going down, it’s actually the same or a little bit up compared to last year. GT: I think fine dining restaurants are not so much affected. People still spend money as long as they get a good service and good food and they are not over charged. Before everybody went out for dinner two or three times a week; now they go once or twice a week. So what I see is that coffee shops or bistros are suffering more than fine dining restaurants. DI: People don’t mind spending the money if you’re giving them some-
thing which is worth the money they are spending. There’s been a drastic drop in sales of champagne for sure but people are still spending money. People had to make a choice — keep crying over the credit crunch or move forward because the people that are here still have a job. GT: The bars are still quite busy. Beer sales went up dramatically. The companies that let people go last year are looking now to hire bachelors because they are cheaper — you don’t have to pay the schooling allowance and so on — so the entire crowd in Dubai has changed slightly. With more bachelors, clubs and bars are impacted. Hotelier Middle East • April 2010
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for the original product we were putting together perhaps wasn’t even there any more. We realised there was a request in town for Asian fusion restaurants but we wanted to make something that was not a copycat. Definitely there was a big focus when writing the menu on trying to attract a female clientele because that’s what you have in the mall; 70% of the people there are female. The same thing went on for the bar Amatista when we were doing the cocktails — the big focus there was cocktails that appeal to ladies. Whenever you have the ladies in the outlet you have the men as well. Also, with regards to the pricing strategy, two years back you would do a price comparison perhaps twice a year — now we are doing that every three or four months. If there is a need to adjust something to what the market is doing at the moment that’s definitely something that we are doing already and which we will do in the future to be competitive.
WE HAD TO REVIEW OUR PRICING STRATEGY BECAUSE OF OUR LOCATION Laurent Boisdron Sofitel Dubai Jumeirah Beach
With The Address Dubai Mall and Sofitel Dubai Jumeirah Beach being new properties, did you have to shift the positioning of any of the outlets during pre-opening? Laurent Boisdron: We did actually; our Italian restaurant was more like a gourmet restaurant, it still is, but we had to review our pricing strategy because of our location at The Walk, Jumeirah Beach Residence. There is not only all the stand-alone restaurants on The Walk and other hotels but also surrounding areas like the Burj Al Arab and Dubai Marina, so we have a lot of competition. We were perceived as pricey so we had to reduce the cheque for the Italian restaurant to make it more affordable. DI: We did have to relook into pricing and into the offering of our signature restaurant Ember, even the menu structure changed quite drastically because the demand April 2010 • Hotelier Middle East
Talking of competition, how do you drive mall customers to your outlets at The Address Dubai Mall and Kempinski Hotel Mall of the Emirates? GT: At the moment everyone is checking out the Dubai Mall, but I think when the extension to Mall of the Emirates opens there will be a balance one day. It’s hard to bring people into the hotels when you are in the mall — they have everything. As people are looking more at their money, you really have to be spot on with the nice service and with a good package.
HAPPY HOUR DOESN’T WORK ANY MORE Domenico Iannone The Address Dubai Mall
DI: They still are competition; we have 160-168 restaurants at Dubai Mall. So you really need to think strategically about what you are doing and how you do it. Happy hour doesn’t work any more, everyone does it, you really need to think of something which will attract people. I tell my outlet mangers in our weekly promotion meeting ‘don’t think as a restaurant manager, think as a guest — will whatever you are planning to do really bring you from your sofa in your house to come to us?. If it
GETTING TO KNOW YOU: HOTELIER’S EXPERT PANEL Laurent Boisdron Director of food and beverage Sofitel Dubai Jumeirah Beach Previously with Sofitel in the US for nine years, Laurent Boisdron has been involved with the pre- and post-opening of Sofitel Dubai Jumeirah Beach, his first hotel in the region. It offers a French restaurant, signature Italian restaurant, Plantation, Infini and Irish bars, room service, executive lounge and banquet operations. Boisdron has also worked on cruise liners and with Le Meridien in Europe. Domenico Iannone Director — Food & Beverage The Address Dubai Mall Prior to opening The Address Dubai Mall,
Domenico Iannone worked with Shangri-La in Muscat, Oman for three years. He has now been with The Address for a year and eight months, first working on the company’s flagship hotel. The Address Dubai Mall offers a signature grill restaurant Ember, all-day dining Arabic restaurant, a pool lounge Cabana and a bar called Amatista as well as a club lounge and lobby lounge. Iannone has previous experience in London, working mainly in Michelin star standalone restaurants. Leo Holli Director of Food & Beverage Towers Rotana Dubai Leo Holli has worked at Towers Rotana for two years, following a lengthy career with Hilton in locations including Vienna,
Sydney and Barbados working his way up through all of the F&B departments. Towers Rotana has five outlets — Aquarius pool bar, Longs bar, Teatro, Flavours on Two and Wraps — plus seven meeting rooms, room service and Club Rotana. Gerrit Thiebes Food & beverage manager Kempinski Hotel Mall of the Emirates Gerrit Thiebes joined Kempinski 11 years ago as a waiter and worked in various locations in Germany before moving to Zanzibar and Ajman. He has been in his current role for two and a half years, responsible for the 935-seat Sezzam, Evory lounge, Aspen, 1987 bar, K Grill, Mosaic Bar and room service.
www.hoteliermiddleeast.com
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TOP 10 FOOD & BEVERAGE TRENDS Sofitel Dubai Jumeirah Beach director of food and beverage Laurent Boisdron highlights his top to trends to watch out for:
The celebrity chef concept is a fad — I believe more on what we are offering in terms of product, traceability and food safety and of course the right pricing in an elegant setting with the right ambiance. Some branded outlets in other hotels could definitely be an asset, with a well-known name and chefs which would guarantee instant success. Good examples are Buddha bar at Grosvenor House, BICE at Hilton and Locatelli at Atlantis.
Tastings and an emphasis on samplers — specialty beer flights, wine flights for example. Sharing is important; people like to experience and taste different things from tapas to dim sum, such as our Irish finger bites and Parisian mini pastries.
One bite reception for the guest to create his own cocktail party from a selection of spoons, sticks, leaves, mini canapés, mini balls, skewers, cups, shooters and a range of live cooking stations — people want choice.
A reinvented lunch option with our lunch sampler — more on the healthy side served all at once.
Presentation — people eat first with their eyes so present their food in a fresh and visually appealing way using open kitchens and ‘on display’ cooking, where customers can choose from an array of fresh ingredients before their dish is prepared in front of them.
Fusion: blending cuisines is still a hot culinary trend — examples are Thai and French, Americas like Peruvian and Brazilian cuisines, and Indian / Southeast Asian.
Anything fresh, locally grown / sourced products and authentic food.
Global comfort food especially in room service and home-made everything.
Reassurance, intimacy and friendship — we need to feed guests’ knowledge and emotion.
Restaurant theatre is not new but I think this is a great idea if a hotel has multiple outlets.
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
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good quality food that’s fairly priced. It’s either very cheap or it’s very expensive. I’m talking in the range AED 150 to AED 200 but that doesn’t necessarily have to be a buffet restaurant — you have plenty that are that sort of range — but none of those seem to be à la carte. GT: Alcohol is too expensive and by the end of the day 80/90% of the food items you have to import, so if you want quality then of course you have to pay a little bit more. LB: I think the ambience has a lot to do with it. Often the concept or the offer, one or the other, is missing. It’s rare to get the full package.
I THINK THE STABILISATION IS HERE NOW Leo Holli Towers Rotana Dubai
doesn’t, I don’t even want to know because it’s not going to work out. We don’t want to have a sorbet promotion or a fresh strawberry promotion — these times are over, it has to be effective, it has to bring business, or it has to increase your market awareness; if it is none of those three then it’s not worth doing. If happy hours and typical promotions don’t work, what is going to get people into your restaurants? GT: You have to give them something for free! As we said with fine dining, it’s still ok. It depends on the location. This one here [Sofitel] is a perfect location for bars because you have a lot of residents. LB: We are just waiting here for our shisha licence. During the day we have leisure people at the pool and at night we will change it with the Arabic theme in this area. DI: What we don’t have is budget, www.hoteliermiddleeast.com
and dates sampler, to UK and Irish bites in the Irish Bar. The local community will be informed by an aggressive radio campaign, local media and other offers, as we did with the JBR doorknob promotion, which was very successful. We will have sunset promotions at the Infini pool lounge, shishas to attract locals and tourists, and a great selection of dates from the UAE available. We are also launching our à la carte restaurant in AOC French Brasserie, our Italian menu in Rococo with new recipes and a 24-hour menu at Plantation.
to change the concept of Amatista for those two days, it’s not going to be a lounge anymore but will have a DJ; we’re looking to bring in big names and hopefully this will also help with cross exposure of the other outlets. We are also looking into the menu offering of beverage and food, we’re looking at big numbers of 250-300 people per day, so you need to have something that caters to those numbers. We are very confident, they are very professional.
GT: Sezzam is launching a new menu hopefully in May.
What is the outlook for 2010? LH: I think stabilisation is here now.
DI: When it comes to The Address Dubai Mall, we are doing a partnership with Atelier, the same company that ran The RoofTop at Madinat, on Thursday and Friday nights at Amatista. So we are trying
DI: It is stable right now, but I think it will go up. If you look at the room rate over the past couple of months, it definitely went up, not what it used to be but honestly I was surprised at the average room rates, the they are still very high.
Where do you think will be the new dining hot spots in Dubai? GT: The Armani Hotel will be quite interesting. I don’t think [The Meydan] will be, but Armani will be a hot spot.
GT GT: There are still some hotels th that pushed the rate down, which m makes it very difficult on corporate bu business, but for leisure and groups its still going.
LH: I think Meydan may become one, because it’s very easy to access. DI: Meydan? At the weekends definitely, in the week I don’t see people driving there. I think it’s perception of distance more than anything else. LH: It’s five minutes from Towers Rotana, I think it could well be quite a hot spot. What is upcoming at your hotel? LB: Our product is being introduced in stages — from our Friday brunch to our Thé a la Francaise, to mezze
LH: We have a new menu starting in Longs bar in April.
LB LB: The main challenge is to gain m more outside guests and retain our h hotel guests to experience our outle lets — we have a wonderful produ uct with great quality and service aat a competitive price. We need to be more creative in tterms of F&B — new concepts, ttrends and new products — and b be more sensitive to demands and p pricing without compromising ggood quality product and great sservice in our outlets. Once the economy bounces aagain and business begun to turn positive, I believe the main challenge is how to provide the need of the new sets of demanding clientele like young professionals and businessmen and women — the young entrepreneurs which will be our new prospective guests. HME What are your views on the issues raised? Send them to: louise.oakley@itp.com
COFFEE SHOPS OR BISTROS ARE SUFFERING MORE THAN FINE DINING RESTAURANTS Gerrit Thiebes Kempinski Hotel Mall of the Emirates
Hotelier Middle East • April 2010
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41 AHIC PREVIEW
Money makers Ahead of the Arabian Hotel Investment Conference, Louise Oakley asks key speakers and industry heavyweights where, why and how to invest in hotels in the Middle East MARKET ANALYSIS s the industry gears up for the Arabian Hotel Investment Conference (AHIC) — being held at Madinat Jumeirah in Dubai from May 1-3 — the same questions are on everyone’s lips; where is there still potential for hotel investment, how do I secure funding, how do I develop my project, and ultimately, how do I ensure my hotel is a market leader and a money maker? Aptly then, this year’s AHIC is focused on ‘Unlocking Investment Opportunities in the Middle East and North Africa’, with more than 500 top industry analysts, investors, owners and operators from across the Middle East, North Africa, Europe, Asia and the US expected to
A
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come together to debate the changing investment and hotel sector landscape in the region. The basic premise behind the theme is simple; despite the economic downturn and current tourism environment, hotel supply in the Middle East and North Africa (MENA) will not be sufficient to meet demand in the longer term, as concluded by the Jones Lang LaSalle Hotel Investment Outlook 2010. The report forecasts that once conditions improve, extensive growth in tourism demand could allow for a quick absorption of current and future hotel supply. Mark Wynne-Smith, CEO of Jones Lang LaSalle Hotels, EMEA and moderator of the Leaders Panel AHIC session — which will see the bosses of Wyndham Hotel Group, Rezidor, Jumeirah Group, Golden
Tulip and Kingdom Hotel Investments take to the stage — said: “Development activity will likely remain subdued in some markets in the short-term but we expect pick up across the entire market in the medium and longer term”. This is supported by the United Nations World Tourism Organisation (UNWTO) report entitled 2009 International Tourism Results and Prospects for 2010’, which saw a 2% upswing in global international tourist arrivals for business, leisure and other purposes during the last quarter of 2009, with the Middle East, and Asia-Pacific leading the recovery through positive growth in both regions in the second half of 2009. The report has also forecast growth of 5-9% for the Middle East in 2010, compared with a 3-4% world growth forecast.
Furthermore, recent figures from the International Air Transport Association (IATA) showed that MENA regional airlines grew overall passenger traffic by 11.2% in 2009, and ended with growth of 19.2% in December 2009 compared with December 2008, with this largely attributable to expansion by Etihad Airways and Emirates Airline. Etihad Airways chief commercial officer Peter Baumgartner, who will be addressing the impact of airline growth on hotel industry demand at AHIC, commented: “Air travel plays a vital role in bringing visitors to the region, and the growth in passenger numbers in 2009, despite the difficult industry conditions, is a positive sign for everyone involved in the MENA region’s hotel and tourism sectors”. According to Bench Events chairman and AHIC organiser Jonathan Hotelier Middle East • April 2010
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43 AHIC PREVIEW
THE GROWING STOCK WILL DRIVE NOTABLE GROWTH IN THE HOTEL INVESTMENT VOLUME, WHICH IS FORECAST TO REACH €4.1 BILLION ($5.5 BILLION) IN EMEA IN 2010 Worsley, these statistics coupled with industry sentiment following the International Hotel Investment Forum in Berlin shows the consensus to be “that the worst of the global economic crisis is over”. “Intelligent and targeted investment is vital for the industry as the region recovers from the downturn, and the insight that will be offered by the group of speakers that will gather in Dubai in May will be invaluable for everyone involved in the industry,” said Worsley.
ROOM FOR MORE The upshot is that hotel investment is most definitely still needed in this region. But while the positive outlook is refreshing, it is not certain. The key to success will be identifying opportunities, unlocking potential, obtaining funding and securing projects. And to achieve this, there are several challenges to be overcome, explained IFA Hotel Investments president Joe Sita, who will be speaking on the panel ‘Attracting the attention of today’s hotel investor’ at the conference. “The objectives for investors in the Middle East are no different from other parts of the world: everyone is looking for good capital growth and good returns that are risk adjusted to
their local market,” said Sita. “A project needs to not only show promise over the long-term, but also produce a positive income return throughout the life of the investment.” Sita said the risk premium is higher in the region, in particular in Dubai, at present, but that he believes “it will see significant growth again and, as a result, the region will deliver good capital appreciation”. The biggest challenge is the “dearth of debt funding” in all markets, which reduces the liquidity available, he said. “As a result, investors need to put in more equity today than was required two years ago. For this to make financial sense, investors need higher returns,” said Sita. “Also in line with what is happening around the world, the market has seen a decline in RevPAR and so investors must be extremely selective about the projects they choose. To be successful in today’s market, projects need to have premium locations, strong partners and good sponsors. This is the case, for instance, with all of our projects on The Palm Jumeirah,” he added. Sharing the panel with Sita will be Roger Blackall, director of Hotels & Hospitality Division, Premier Group WLL, Kingdom of Bahrain. Blackall agreed that “cash is king” and said that “only those companies with adequate reserves to maintain debt payments for the next two years will survive”. He explained: “Property values have fallen significantly around the world and Middle Eastern investors have had to deleverage and/or restructure their assets, both domestically and abroad in an effort to hold on to assets, which have lost all or most of their equity. The task at hand
Mark Wynne-Smith, CEO of Jones Lang LaSalle Hotels, EMEA: Market will pick up in long term. now is to reduce overhead expenses and to slow down or stop construction activities for investments that are unlikely to have buyers, or that are in secondary locations.” He said the challenges to investment in this region are familiarity with regional business practices, security of land title, availability of debt and market knowledge. “Certain markets have become significantly oversupplied with hospitality and leisure properties and a deep understanding of local supply and demand characteristics is crucial to making strategic, successful investments in the region. Real estate markets are somewhat illiquid in the region due to a gap in the pricing sought by sellers and the prices that buyers are willing to offer,” added Blackall. However, according to Jones Lang LaSalle Hotels’ Wynne-Smith, this gap is set to close during 2010, with the company predicting the “birth of the hotel transaction market”. The company reported that for the second year in succession, hotel transaction volumes across EMEA experienced a downward trend falling 61% to €3.1 billion (US $4.1 billion) in 2009, representing less than a fifth of the peak volume achieved in 2007 (€21.4 billion / $ 28.7 billion).
THE BIGGEST CHALLENGE IS THE “DEARTH OF DEBT FUNDING” IN ALL MARKETS, WHICH REDUCES THE LIQUIDITY AVAILABLE Joe Sita, president, IFA Hotel Investments. www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
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Roger Blackall, director of Hotels & Hospitality Division, Premier Group WLL, Kingdom of Bahrain: Companies with reserves will survive. Wynne-Smith said: “The main reason for the stability achieved in pricing during 2009 was a lack of stock. Only a few assets became available while some markets still experienced healthy investor demand. Even in a smaller buyer pool, investors found themselves in a competitive position when attempt-
ing to acquire an asset and this positively impacted transaction prices. Moreover, vendors had continued to have relatively high price expectations. If buyers typically refused to meet these expectations, the asset was removed from the market, enabling the vendors to avoid an actual realisation of the drop in capital value.” So the transactions that did occur were generally the result of a few buyers willing to meet vendor expectations, creating a perception that hotel values had not fallen as significantly as had initially been expected. This year, Wynne-Smith predicts transacted prices to reflect market conditions more closely and realise the falls in value which were expected during 2009. “Although the actual drop in values across EMEA’s main capitals
could prove not to be as severe as was expected in 2009 due to improving investor confidence and starting recovery of the market, prices will more closely reflect actual market conditions,” he said. “On a positive note, the growing stock will drive a notable increase in the hotel investment volume, which is forecast to reach €4.1 billion (US $5.5 billion) in EMEA in 2010. In the first two months of 2010, EMEA hotel transaction volume reached almost €700 million (US $941 million), already reflecting a near 25% increase on the volume achieved in the full first quarter of 2009, while the UK has rebounded and currently holds a majority share of 29%,” added Wynne-Smith.
LENDING A HAND The pick-up in transactions is indeed positive, but it will depend, as Sita and Blackall observed, on the availability of finance and debt. Considering the bleak outlook concerning bank lending globally, AHIC has dedicated a session to ‘how to finance your project’, with representation from both Jones Lang LaSalle MENA director — Capital Markets Gaurav Shivpuri and H Partners Investment Fund chairman Fouad Chraibi. According to Chraibi there are three main factors which are influencing the market: • Less fad for luxury real estate and therefore less income to finance hotel projects; • Limited local financing and fundraising; • Toughness of debt-raising: higher debt costs and restrictive covenants. Shivpuri said that there are “no indications, as of now, that banks will begin lending to real estate in a big way”.
THERE ARE NO INDICATIONS, AS OF NOW, THAT BANKS WILL BEGIN LENDING TO REAL ESTATE IN A BIG WAY Gaurav Shivpuri, director — Capital Markets, Jones Lang LaSalle MENA
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Hotelier Middle East • April 2010
AHIC PREVIEW
REAL ESTATE MARKETS ARE SOMEWHAT ILLIQUID IN THE REGION DUE TO A GAP IN THE PRICING SOUGHT BY SELLERS AND THE PRICES BUYERS ARE WILLING TO OFFER
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MOROCCO STANDS OUT AS ONE OF THE MOST ATTRACTIVE DESTINATIONS IN AFRICA
Fouad Chraibi, chairman, H Partners Investment Fund, will speak on project financing. He explained that: “Real estate financing in Dubai and the wider region has declined over the past 18 months as banks have tried to reduce their exposure to the sector. The bankers are even more averse to lending to the hospitality sector as they have a higher vacancy risk when compared to other real estate asset classes,” said Shivpuri. Banks would consider lending to more developed assets, however, added Shivpuri. “Due to limited availability of senior debt, some non-banking institutions are stepping in to offer bridge financing for short term periods to development projects. While their preference is for residential assets (which can be sold on a strata basis by the borrower/developer who can then pay the institution back), they are also looking at some hotel assets where a large part of the construction is already over.” Generally, avoiding exposure to risk was the key priority for banks. “Almost all lending that will occur will still be limited to a select few based on existing banking relationships, the strength of the borrower and the strength of projects. Today, the bankers are much more prudent and are scrutinising every little detail in a project prior to financing it. If there are concerns with respect to the long term sustainability and financial performance of the asset, the bankers will not be keen to move ahead,” said Shivpuri. Chraibi said he thinks banks will continue lending, but only if certain April 2010 • Hotelier Middle East
conditions are met, and he pointed out that debt covenants might change “according to the quality of the investor”. “Banking-houses will continue financing hotel projects in 2010, providing the creditworthiness of the investor and the quality of the project and its warranties. A good portion of the investment in equity is required, e.g. 40% minimum,” said Chraibi. He suggested that new sources of debt and equity finance could come from financial companies, which open “the possibility to contract mezzanine debt involving strong warranties for higher debt costs” and government grants-in-aid to stimulate investment in the tourism area.
HOT LOCATIONS Reiterating the points of Sita and Blackall, Shivpuri and Chraibi are keen to drive home the point that the location and market conditions are the prime considerations for investors and operators. So which countries in MENA, and which hotel sectors, offer the most opportunity waiting to be unlocked? Top of the list for several panelists was Morocco, with one of the country forums at AHIC specifically focused on the country and another focused on North Africa. Kingdom of Morocco Minister of Tourism and Handicraft HE Yassir Zenagui and Moroccan Tourism Development Agency (SMIT) chief executive officer Omar Bennani will be representing the country, which has been highlighted by Jones Lang LaSalle Hotels as one of the ‘hottest markets’ for 2010. This was reiterated by North Africa session speaker Philippe Doizelet, director of Horwath HTL, who commented: “Since launching a new strategic plan in 2001, Morocco
has successfully pursued an ambitious partnership between private operators and the government, and focused on creating an investment environment with limited land cost, an open sky policy and no customs tax on equipment. This has attracted hotel operators such as Accor, InterContinental Hotels Group and Starwood Hotels and Resorts and going forward there is no doubt that Moroccan hotel investment remains an attractive prospect. I think one of the key emerging themes is developments mixing hotels and privately owned residences.” Total visitor numbers grew to 8.35 million in 2009, and Zenagui said that Morocco aimed to realise a growth of 10% on this in 2010. “We have a strong desire to focus on sustainable tourism, with environmental awareness and a high quality tourism product,” he added. Chraibi also pinpointed Morocco as “one of the most attractive destinations in Africa” but warned that investors need to “remain sharp”, with “an acute knowledge of the industry and the region”. Blackall predicted that “tourism growth in North Africa and Syria will be strong over the next decade”, but advised investing in “the largest economies in the region — Saudi Arabia and Egypt”. “Both countries have opportunities for lodging development in the three to four-star categories. Lebanon is in need of renovated top-end and midscale product,” he said. As well as the need for diversification in certain markets, there is also a need for a focus on mixed-use projects that offer a variety of asset classes to suit a variety of investors — a strategy adopted by IFA. Sita said: “Each of our hotel developments in Dubai, all but one of
WE’RE LOOKING AT MORE MATURE MARKETS, A LARGE PART OF WHICH ARE STRUGGLING INDEPENDENTS THAT NEED THE BENEFITS OF A FLAG, ESPECIALLY NOW
which is on the Palm Jumeirah, features the management of a five-star operator and offers hotel rooms, hotel condominiums, a private residence club and serviced residential units”. The company is also seeking to find appropriate sites and partners to build the Yotel brand, of which it is a majority owner, across the region. And despite speculation in overseas media that the Dubai hotel market has crashed, the experts remained positive in their outlook for the emirate. Blackall said: “Dubai has established itself as a regional business and tourism centre; conditions will gradually improve and the future is bright for Dubai”.
OPERATING PERSPECTIVE Finally, what was the opinion of the major hotel operators in the lead up to AHIC? Two members of the Leaders’ Panel — Wyndham Hotel Group president and CEO Eric Danziger and The Rezidor Hotel Group president and CEO Kurt Ritter — both said they were committed to growing their businesses. Danziger said that because of signs of over supply in the Middle East, Wyndham was being strategic in identifying the appropriate assets for its brands. “Our recent agreements for the Wyndham Riyadh and Ramada Encore Doha — both firsts for our company — are a testament to this,” said Danziger. He said that further opportunities in the Middle East would mainly
Eric Danziger, president and CEO, Wyndham Hotel Group: We are being very strategic. www.hoteliermiddleeast.com
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Kurt Ritter, president and CEO, The Rezidor Hotel Group: we target the emerging markets. come from a likely diversification “into a fewer number of key regional cities and a larger number of leisure resort destinations”. “In EMEA, we’re focused on emerging markets, primarily in those areas where there is an undersupply
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such as in some parts of the Middle East as well as in Poland, Ukraine and Romania,” added Danziger. “Also, we’re looking at more mature markets including Spain, France, the UK and Germany, where there is a strong supply of hotels, a large part of which are struggling independents that need the benefits of a flag, especially now”. Growth will be supported by regional leaders appointed last year for the first time: Michael Poynter to head the EMEA region and Ken Greene to head up the APAC region. “On the development side, we appointed Jim Alderman as executive vice president of development. He has a strong team of developers around the globe that aggressively
seek out opportunities for all of our brands,” said Danziger. Rezidor has an ambitious business development plan as it builds on the 36 new openings achieved in 2009. “We especially target two young and emerging markets: Russia/ CIS and Africa where we see a huge potential for profitable and fee-based growth supporting our asset-light business model,” said Ritter. “In Africa, we are called “the mover and shaker” of the continent; we have been present in the region since 1999 and today have 35 hotels with 7800 rooms in operation and under development. Our strategy targets capital and key cities with no or quite dated internationally branded hotels. Properties under
development include Radisson Blu and Park Inn hotels in Addis Ababa, Ethiopia; Maputo, Mozambique; Kigali, Rwanda; Lagos, Nigeria; and Nairobi in Kenya.” Of recovery of the hotel investment market in the Middle East, Ritter warned: “We are not out of the woods yet — the crisis is not over, and we should not celebrate too early. It is still crucial to carefully think through all decisions. “I think that the Middle East will recover relatively fast from the financial crisis, and we will have a more relaxed ambiance at AHIC 2010 than at AHIC 2009. I also think that the region will be more and more open towards mid-market brands (for example Park Inn) and will be searching for new and profitable business models.” It is these models, along with all of the issues discussed by the experts, that will be debated live at the Arabian Hotel Investment Conference. For more details: www.arabianconference.com HME
Hotelier Middle East • April 2010
AHIC PREVIEW
I THINK THE MIDDLE EAST WILL RECOVER RELATIVELY FAST FROM THE CRISIS, AND WE WILL HAVE A MORE RELAXED AMBIANCE AT AHIC 2010 THAN AT AHIC 2009
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49 AHIC PREVIEW
Know your assets The role and value of asset managers in the hotel industry will be one of the hot topics under discussion at the Arabian Hotel Investment Conference, so Hotelier spoke to the experts ahead of time to find out whether asset managers are an essential or excessive expense
BEST PRACTICE otel asset management has gradually been evolving in the Middle East, but it is still a service not fully understood by some owners and operators alike. To tackle this issue, next month’s Arabian Hotel Investment Conference (AHIC) will include a breakout session dedicated to the role of asset managers (May 2). A panel of specialists will gather together to debate the best types of asset management — inhouse or outsourced — and discuss which types of business could best benefit from their services. Hotelier Middle East has the sneak preview, as we find out whether asset managers are the industry’s new best friend, or a superfluous expense.
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WHO NEEDS AN ASSET MANAGER ANYWAY? Asset management was born out of a realisation by owners that “the operator’s interests are not always aligned with theirs,” says Wasl Hoswww.hoteliermiddleeast.com
pitality general manager St John Kelliher, one of the AHIC panelists. “I believe that all hotels should have a hotel asset manager, as they play an integral role within the investment scope of operations,” says Kelliher. “It is sometimes difficult for an operator to see the asset from all angles, and the focus gets limited to merely creating profit from the facility rather than increasing the value of the asset in the short and long term investment cycle. Asset management specialises in both; the returns on operation and the increasing value of the asset,” explains Kelliher. The asset managers Hotelier spoke with were generally in agreement on this note, with Frank Croston, partner at Hamilton Hotel Partners, adding that neither the type of owner nor their location was impor-
tant when considering using asset management — industry knowledge is what is important. “We see benefits across the spectrum of ownership by type in the Middle East region — from family businesses to Sovereign Wealth Funds, including businesses that are directly or indirectly government owned,” says Croston. “The reasoning behind appointing an asset manager remains the same whether the asset is in London, New York, Beirut or Riyadh. The role is to optimise returns to the owner over time, of both a capital and income capture, and to maintain a constructive and challenging dialogue with the operating partner. “If the owner has both the time and industry awareness to fulfil this role themselves, the asset management
ALMOST ALL OPERATORS MONITOR THEIR PERFORMANCE BY PUBLISHED REVPAR DATA. AN OWNER CANNOT TAKE REVPAR TO THE BANK
function may not be required, otherwise it will provide a level of comfort to the owner that all efforts are being made to safeguard and maximise their overall return on investment,” Croston adds. The economic downturn has highlighted a demand for the services of asset managers, as a result of more
Clive Hillier, CEO, Vision Hospitality Management says looking internally is ‘ a risk’. Hotelier Middle East • April 2010
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WHEN THE RIGHT TYPE OF RELATIONSHIP IS CONSTRUCTED THE OPERATOR SHOULD VIEW THE ASSET MANAGER AS AN ADDITIONAL SUPPORT TO THE GM
Frank Croston, partner, Hamilton Hotel Partners: Industry knowledge is critical. distressed properties on the market. AHIC panelist Siegfried Nierhaus, managing director at Atlas Hospitality LLC, says the company has seen an increase in demand as a result of the financial crisis. “Owners having distressed properties as a result of a lack of experienced operators would certainly look for experienced hoteliers, professional consultants or knowledgeable asset managers to help and advise them during these turbulent times,” says Nierhaus. Kuwait Real Estate Centre head of hotels Marco Nijhof, who is also speaking on the panel, said that while he had not seen an increase in demands, he believed that this was likely to come from financial institutions in the near future. “I think that more of the financial institutions are realising that they sit on real estate assets, which are possibly below market value now for some time,” says Nijhof. “These institutions cannot off-load at the current market conditions and they will now have to take an active interest in the distressed property so that at least the property (both physically and financially) starts to look better, in order to eventually get the best price.” “There are financial institutions that do not have the hotel knowledge and it is these companies that will ask for support from the asset management companies,” he predicts.
IN-HOUSE OR OUTSOURCED? It might seem prudent to have an asset manager in-house and accesApril 2010 • Hotelier Middle East
sible round the clock, but this is normally counter-productive, according to the experts. Of course, they all have a vested interest in promoting asset management as it is their business, but they also do make some valid points. Vision Hospitality Asset Management CEO Clive Hillier says: “Having asset management in-house would appear to give owners and operators a more hands on approach. However, this argument is severely flawed in that in-house asset managers only have access to comparable information for their own assets. “Appointing external asset managers means that the owner’s or operator’s assets are being compared with other like assets in the outside market. Looking internally is a short term measure fraught with longer term risks,” warns Hillier. Nijhof warns that in-house asset managers “can become costly, as the asset manager will need a support team in terms of finance, marketing and market analysis, operational analysts and even possibly operational representation”. He says: “ To establish this kind of a structure may be difficult. The asset management companies tend to have these skills in house at a fraction of the cost. In our own case the annual fee of the asset management company is not little, but divided over the hotel portfolio it is only a very small cost, which is very much worth your while”. Kelliher and Croston take a more balanced view of things, saying that the assessment really depends on the owner’s situation. Kelliher says the decision rests on a range of factors: the size of a hotel, the number of rooms, the number of hotels, the
hotel locations, the branding of the hotel, the style of operations, long or short term investments, and the available expertise. Croston point out that it depends on how many hotels the owner has. “If the owner has an extensive portfolio of hotel assets across the region it is probable that an insourced solution will be both more cost effective and may over time facilitate further expansion in the sector,” he says. “If the portfolio is small or even a single asset, the outsourced solution is likely to be more productive. One of the key issues is the ability to attract and retain the right calibre of staff to execute the function internally, which is likely to be more realistic as the portfolio grows and the owner can offer career progression”. He adds: “A hybrid solution whereby the function is outsourced but the owner retains the senior asset management role internally can also be a good solution for all parties”. Assuming an owner has taken the decision to appoint an asset manager, there are many considerations to follow in order to pick the most suitable company , continues Croston. “The owner should ideally already have a clear understanding of the role they want the asset manager to undertake. The term “asset management” can cover such a wide spectrum from relatively passive observation and reporting to active involvement and collaboration with the operating partner/brand. In order to select the right asset manager the owner first needs to decide if their desire is to monitor, or to actively drive, towards optimum return on investment,” he says. Once the decision to appoint an asset manager has been made, the
ASSET MANAGERS ARE NOT SUPERFLUOUS, RATHER THEY SHOULD BECOME AN INTEGRAL PART OF THE OWNER’S PLANS
owner should then assess candidate asset management entities against the following set of criteria, recommends Croston: • Demonstrated track record of successful asset management activities (preferably by speaking with existing/former clients). • The CVs and the track record of the personnel that will be assigned to the task. • The extent to which the asset manager is able to articulate a clear vision of the areas of opportunity for enhancing performance after an initial review of the situation. • The extent to which the remuneration of the asset manager is aligned with the defined “success” or objectives of the owner. Another thing that is also important, adds Nierhaus, are personality and relationships. “The owner needs a person that he can trust, who is hard working and who can translate his vision into reality and his business into a profit,” asserts Nierhaus.
WHO CONTROLS PRICING? There is some debate about the role of asset managers when it comes to pricing, with some experts believing it is an integral part of the function and others advocating that the asset manager remains distant from this . Nijhof says he thinks that asset managers should be “very much” involved in pricing, but only after very closely studying the market to gain competitor knowledge. Croston says that “an asset man-
Madhu Azad, Roya International: Asset managers should become a part of the owners’ plans. www.hoteliermiddleeast.com
AHIC PREVIEW
52
ager should never be making direct pricing decisions”. “Pricing per se is clearly a matter under the direct control of the operating partner and the asset manager should never be making direct pricing decisions. It is vital, however, that the asset manager closely monitors all pricing and distribution strategies being pursued by the operator and provides feedback where they believe that an alternative approach might be more productive. This is best achieved by demonstrating the success (ideally in the same market and at the same time) of alternative pricing and distribution strategies available and by reference to relative RevPAR performance over time,” says Croston. “Particular pricing approaches may reflect brand level instructions to the general manager and his team and it may be that the asset manager will have to escalate certain pricing and distribution issues to regional and/or global level within the brand in order to effect productive changes in policy. The ability to communicate at this level and bring about positive results is another factor the owner should consider in their initial selection of the right asset management partner,” he says. Ròya International director asset management Madhu Azad agrees that asset managers should be involved in pricing “more from a global point of view”. Meanwhile, RMAL Hospitality PJSC, chief operating officer Walter Hall, warns: “The asset manager
Walter Hall, chief operating officer, RMAL Hospitality PJSC: Communication is essential. April 2010 • Hotelier Middle East
should not get involved in the day to day pricing of the hotel as micro management in this respect helps neither party. However, they should be very aware of the hotel’s performance in relation to its competitive set and be in a position to discuss the pricing strategy with the management team in relation to the hotel performance and where that hotel should be in comparison to its competitors”.
SUPPORTING OPERATORS Hall makes an important point, as he draws attention to the all-important relationship between the owner and the operator. He says “it is helpful if the asset manager is involved in the negotiation of the contract as the management agreement establishes the fundamental terms of the relationship between the parties involved”. “However this is just a starting point,” continues Hall. “Open communication is essential with a mutual understanding of how success will be defined and measured. Regular meetings with the management team ensure that both parties are aligned. There will be certain conflicts aside from the financial performance of the hotel. The open ended check book other wise known as brand standards is always a debatable point as the asset manager is purely interested in the financial performance of the hotel where the operator is interested in having a showcase for future investors. Through sensible collaborative dialogue these issues can be dealt with sensibly.” The experts were in general agreement that the asset manager should also support the operator in executing their contractual obligations. “This needs to be done in a manner which is supportive to the operator and does not seek to interfere with or denigrate the operator’s contractual right to manage,” says Croston. “When the right type of relationship is constructed the operator should view the asset manager as an additional support to the GM in identi-
fying ways and means of enhancing profitability, which the GM then executes against. It is very important that this is provided as advice and recommendations rather than instructions, so that the operator/ GM can “buy-in” to the advice and execute accordingly”. Nijhof adds: “One of their main priorities should be to create a good working and professional relationship with the management companies. Through the creation of this relationship they will have the ability to motivate the management company for better hotel performance and be able to push the envelope”.
SUPER GROWTH OR SUPERFLUOUS? The asset managers make a good argument for their services and all predict further demand for their business, though growth may be slow. Croston says that while he has seen some opportunities for asset management in Western Europe, the sector is still “embryonic” in the Middle East. “The tendency is to use an “owner’s representative” – often an ex-GM employed directly by the owner to fulfill the role of asset manager. Ironically the decision to appoint a third party asset manager is clearly more difficult when earnings have fallen and the desire is to preserve as much cash as possible. This reality is likely to act as an inhibitor to a rapid growth of third party asset management in the region. Once individual owners become aware of the potential for enhanced performance, through dialogue with other owners who have experienced the benefits of third party asset management, the situation is likely to evolve quite quickly,” he explains. Others are far more assertive on the important role of asset managers. “Asset managers are not superfluous, rather they should become an integral part of the owner’s plans,” says Azad. Hillier says that Vision Hospitality Asset Management gained 18 hotels
THE ASSET MANAGER SHOULD NOT GET INVOLVED IN THE DAY TO DAY PRICING OF THE HOTEL AS MICRO MANAGEMENT IN THIS RESPECT HELPS NEITHER PARTY
Siegfried Nierhaus, managing director, Atlas Hospitality LLC: Relationships are important.
THE OWNER NEEDS A PERSON HE CAN TRUST in 2010, taking it to a total of 183 hotels under asset management. “We strongly believe that the role of asset managers is growing on a month by month basis,” says Hillier. “If you study the relationship between hotel revenue, hotel profit, owners returns and operators fees you will see that an operator is not sufficiently motivated to drive the bottom line performance of an asset. Almost all operators monitor their performance by published RevPAR data. An owner cannot take RevPAR to the bank. Only profit and an experienced and knowledgeable asset manager will significantly add to the bottom line profit”. And linking back to the operators, Nijhof has the last word. “From a management company point of view, I only have one thing to say: The asset management companies are here to stay, so embrace them and do not become controversial. Give them access and interpret the management contract with a bit of flexibility. “At the end of the day both the management company and the asset manager would like to achieve the same objective, which is the highest possible profit levels/ amounts”. HME www.hoteliermiddleeast.com
COUNTRY UPDATE: LEBANON
54 Campbell Gray Hotels’ Le Gray opened in 2009 and was the first major injection of new luxury product in the Beirut market for several years.
Lebanon and on and on Government incentives, the recent political stability and a wealth of natural resources have made Lebanon an increasingly attractive option for hotel investors and operators, reports Joe Mortimer
he recent opening of two luxury hotels in downtown Beirut represents the beginning of a new era for Lebanon’s hospitality industry, which has already risen like a phoenix from the flames of its troubled past. After the staggering performance figures reported by Beirut’s existing properties in 2008/9, a line-up of new hotels providing some 2000 additional rooms are set to open their doors over the next four years and government incentives are poised to bring new investment pouring into the country. The signing of the Doha accord on May 21, 2008 marked a turning point for Lebanese stability and, in turn, the tourism industry. Since then, Lebanon’s hospitality industry has easily outperformed regional competitors and indeed every other country on the planet, in terms of year-on-year growth.
T
April 2010 • Hotelier Middle East
Lebanon’s Ministry of Tourism declared 2009 the best year ever for tourist arrivals, with visitor numbers approaching 1.9 million. Official figures show that almost 50% of visitors used hotels and serviced apartments during their stay, which equated to 770,000 hotel stays. The peace and stability of the country were undoubtedly the catalysts that allowed Lebanon to achieve a large year-on-year occupancy growth of 27.6% in 2009 and a RevPAR increase of 61.6% in the same period, but such substantial growth would never have been possible if it weren’t for the “pent-up demand” for Lebanon as a tourist destination, argues Deloitte and Touche tourism, hospitality and leisure partner Rob O’Hanlon.
“What we saw in 2008 is what we commonly describe as the ‘peace dividend’. As soon as there was tangible evidence of a settlement around the government of Lebanon and stability on the political front, the pent-up demand for visitors to Lebanon was able to commence,” he explains. “The second factor which is also really important is that from a general Middle East perspective and the Gulf countries in particular, Lebanon was traditionally a favourite destination. The return of peace and stability meant that those folk who would have liked to be able to spend more time in Lebanon were suddenly able to do so again.” For operators on the ground, the effects of Lebanon’s newfound peace and stability are tangible. According
AS CREDIT MARKETS START TO OPEN UP AND FUNDING BECOMES AVAILABLE, I THINK WE’LL SEE THAT NOTHING BREEDS SUCCESS LIKE SUCCESS
to Rotana president and CEO Selim El Zyr, Rotana’s two existing properties in Beirut — Gefinor Rotana and Hazmieh Rotana — had an average RevPAR growth of 82.9% in 2009. “The impact [of peace and stability] has had a direct effect on our occupancy and ADR, which © Dina Debbas
ANALYSIS
Rob O’Hanlon, partner at Deloitte and Touche.
www.hoteliermiddleeast.com
55
Rani Gharbie, director of development at IHG. increased significantly,” says El Zyr. “Bookings came in the form of weekend getaways, business meetings, investors seeking local opportunities (especially with the success of the Lebanese banking sector after the worldwide financial crisis), in addition to the boost of the local exhibitions attracting visitors from many countries, which were emerging markets for Lebanon.” The much anticipated opening of Campbell Gray Hotels’ Le Gray in late 2009, marked the first major injection of new luxury product into the Beirut market for several years and the subsequent opening of the Four Seasons Hotel Beirut in January this year marked the end of a decade-long construction process that was continuously disrupted by
a variety of political turmoil, civil unrest and the short but destructive war with Israel during 2006. “The overall positive atmosphere in Lebanon has given many investors the green light to go ahead with their projects and one of those was the Four Seasons Hotel Beirut,” says general manager Stefan Simkovics. “We are in the right city at the right time. There is high demand on the city from both the leisure and business travellers, which is great to see.” The momentum looks set to continue; other hotels under construction in the vicinity of the Four Seasons include the Grand Hyatt Beirut and the Hilton Beirut; Kempinski is set to open two new properties by 2013, one in Beirut and one on Mount Lebanon; Rotana is set to open the Soldiere Arjaan by Rotana in 2012; and InterContinental Hotels Group (IHG) recently signed an agreement to run a 121-room Staybridge Suites property in Beirut’s Verdun Street. A handful of, as yet, unbranded properties are also in the pipeline,
including the Grand Theatre Boutique Hotel, Boutique Hotel Mina el Hosn, Jiyeh Marina Resort, in the city of Jiyeh, a Royal Hotels & Resorts property, and a hotel in The
Landmark; a towering mixed-use development in the heart of Beirut. Meanwhile, IHG’s Le Vendome is poised for an expansion that will see 34 rooms added by 2012, while boutique hotel The Albergo will receive 22 more rooms by the same year. Rafik Hariri International Airport also has major expansion plans, increasing its annual capacity from six million passengers to 16 million, catering to growing demand from the Middle East and Europe.
LEBANON HOTEL PERFORMANCE IN 2009 Date
Occupancy (%)
ADR (US $)
RevPar (US $)
Jan 09
54.3
163.93
89.04
Feb 09
72.8
164.16
119.47
Mar 09
71.6
158.08
113.20
Apr 09
77.7
168.24
130.79
May 09
70.0
157.40
110.21
Jun 09
54.9
198.62
108.97
Jul 09
85.8
277.83
238.42
Aug 09
74.2
262.86
195.09
Sep 09
57.5
244.98
140.82
Oct 09
83.7
182.87
153.00
Nov 09
76.1
225.29
171.55
Dec 09
69.7
231.67
161.39
Total 2009
70.8
204.55
144.78
Jan 10
57.6
206.00
118.76
Source: STR Global
Visitors to Le Gray in Beirut can soak up the sun and enjoy views of the increasingly popular destination.
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
COUNTRY UPDATE: LEBANON
IT IS IMPORTANT THAT A HOTEL OPERATOR HAS THE INFRASTRUCTURE AND RESOURCES TO BE ABLE TO DRIVE DEMAND DURING OFF-PEAK PERIODS AND MAINTAIN BUSINESS THROUGHOUT THE YEAR
COUNTRY UPDATE: LEBANON
56
10 REASONS TO INVEST IN LEBANON Beirut posted the highest occupancy and RevPAR increases in the world in 2009.
Plans are underway to expand Rafik Hariri International Airport so it can handle up to 16 million passengers per year.
Real estate investments benefit from one of the lowest taxation levels in the world. Hotels that meet certain criteria are exempt from customs duties for imported hotel equipment. The Investment Development Authority of Lebanon (IDAL) offers further incentives for hotels that meet certain criteria (see box below). Lebanon’s tourism industry generated a record US $7 billion in 2009.
Lebanon still lacks branded supply across all segments. Lebanon has one of the best education systems in the Middle East, providing plentiful supply of young skilled professionals. Ski resorts, eco-tourism and wine-producing areas represent new opportunities for tourism projects. Low-cost carriers like flydubai are attracting a new visitor demographic to Lebanon.
April 2010 • Hotelier Middle East
The Four Seasons Hotel, Beirut opened in January of this year, following 10 years of construction.
LEBANON IS NOT AT A STAGE YET WHERE IT CAN ATTRACT MASS TOURISM OPPORTUNITY KNOCKS The redevelopment of Beirut’s downtown area has been led by Lebanese development and investment company Solidere. The company is the driving force behind the Beirut Central District, which contains its own designated hotel district and the Beirut Waterfront Development, which will transform the city’s waterfront into a vibrant boulevard lined with a variety of cafes, restaurants and night spots. Meanwhile, the Lebanese government is making investing in Lebanon an increasingly attractive option. The Investment Development Authority of Lebanon (IDAL) is taking huge steps to encourage foreign direct investment (FDI) in Beirut, with an incentives scheme aimed at various industries, including tourism. IDAL’s ‘Package Deal Contract’ allows investors to benefit from tax exemptions, reductions on permits for foreign labour and construction permits, and a number of other exemptions, provided they meet certain criteria (see box below).
“With these strong trends set to continue, Lebanon can look at providing more affordable accommodation for a diversified demand base.” Wyndham Hotel Group vice president development, Middle East and Africa, Bani Haddad, is confident in opportunities available for operators looking at different market sectors. “Upscale hotels dominate the current inventory, especially in Beirut, and the limited service hotels are all unbranded properties,” he states. “This creates a big opportunity for hotel chains to introduce their limited service and economy brands.” But developers with ambitions outside of Beirut still face challenges. The lack of tourism infrastructure outside the capital makes travelling around the country difficult and a lack of services means that visitors, Arab nationals in particular, are more likely to stay in Beirut, argues HVS Dubai managing director Hala Matar Choufany. “Predominantly inbound travel today comes from Arab countries and the Arabs don’t really travel out-
HVS Dubai’s Choufany identifies travel trends. side of Beirut and a few areas outside of Beirut,” she explains. The InterContinental Mzaar Resort is currently the only internationally-branded hotel in Lebanon’s ski resort area Faraya. According to IHG’s Gharbie, managing a property outside of Beirut has pros and cons: “The destination allows people to disconnect from the hustle and bustle of a busy city like Beirut and attracts weekenders, honeymooners, business meetings and leisure groups,” he explains. But operators eager to move into secondary locations outside of Beirut might be jumping the gun. According to the latest report from HVS’s Dubai office, Beirut and Beyond – An Unparalleled Insight, the number of branded hotel rooms in the greater Beirut area remains woefully inadequate for the huge demand increases that are anticipated. “As operators show keenness to develop hotels in Lebanon, investors and developers should be aware that there are an array of brands being considered for the market,” the report advises.
MIND THE GAP It’s easy to see why investors and hotel management companies have been eager to get a slice of the upmarket action, but there remains a huge opportunity in the mid-range and limited service sectors. ”As the country continues to stabilise and mature, government investment coupled with that of key Middle East based airlines and the emergence of regional low cost carriers, will make travel more accessible and affordable and will drive visitor numbers up,” says Rani Gharbie, director of development, Middle East and Africa, IHG.
IDAL - THE PACKAGE DEAL CONTRACT Incentives
Criteria
Income tax exemption for 10 years
Minimum investment of US $15 million
50% fee reduction on permits for foreign labour
Minimum creation of 200 jobs
Up to 50% fee reduction on construction permits
All employees to be registered with the National Social Security Fund (NSSF)
Work permits for all categories
Minimum employment of two Lebanese per foreign employee
Full fee exemption on land registration, annexation, sub-division, Mortgages and lease registration
Other criteria include factors such as economic and environmental impacts, preservation of natural resources, transfer of technology, and government priorities and development policies
Source: IDAL / HVS report: Beirut and Beyond – An Unparalleled Insight
www.hoteliermiddleeast.com
57
OUTLOOK Investment decisions in Lebanon are fundamentally dictated by political stability, or lack thereof, but taken in the context of the recent global recession, it is not surprising that many investors are more cautious about launching new projects.
But Deloitte’s O’Hanlon is bullish about Lebanon’s future prospects: “The shortage of credit availability globally will impact any investment decision and Lebanon is not immune to that, but as credit markets open up, we will see that nothing breeds success like success,” he argues.
“I think Lebanon has demonstrated that it has a combination of scenery, friendliness , quality of food and quality of service that are attractive to visitors. So long as those fundamentals remain in place it represents a good opportunity in the tourism sector.” HME
LEBANON’S UPCOMING PROPERTY PIPELINE
* Approximate number of rooms
Company
City/Region
Brand
Property
Rating
Hilton Worldwide
Beirut Central District
Hilton
Hilton Beirut
Five-star boutique
158
0
0
0
0
TBC
Hyatt Hotels & Resorts
Beirut Central District
Grand Hyatt
Grand Hyatt Beirut
Five-star
354
0
0
0
0
2011
Hyatt Hotels & Resorts
Jiyeh, South Lebanon
N/A
Jiyeh Marina Resort
165
0
0
0
0
2011
TBC
Rooms
S
A
R
V/C
Opening
Kempinski Hotels
Bhamdoun, Mount Lebanon
Kempinski
Kempinski Al Abadiyah Hills
75
0
0
0
0
2012
(Unbranded)
Beirut Central District
—
Grand Theatre Boutique Hotel
60*
0
0
0
0
2012
(Unbranded)
Beirut Central District
—
Boutique Hotel Mina el Hosn
60*
0
0
0
0
2012
(Unbranded)
Beirut Central District
—
Serviced Apartments (Solidere)
60*
0
0
0
0
2012
Royal Hotels & Resorts
Beirut Central District
Royal Hotels & Resorts
Royal Hotels & Resorts
100*
0
0
0
0
2012
InterContinental Hotels Group
Verdun, Beirut
Staybridge Suites
Staybridge Suites Lebanon
Extended-stay
121
121
0
0
0
2012
Kempinski Hotels
Jnah, Beirut
Kempinski
Kempinski Hotel Summerland Resort
Five-star
150
0
0
0
0
2013
Rotana
Beirut Central District
Rotana Suites
Solidere Rotana Suites
250
250
0
0
0
2013
The Landmark
Beirut Central District
The Landmark
The Landmark
Five-star
288
0
0
0
0
2013
Key: S = Suites | A = Apartments | R = Residences | V/C = Villas/Chalets
Source: HVS Market Intelligence
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Hotelier Middle East • April 2010
COUNTRY UPDATE: LEBANON
“Companies typically establish a base in the market with their core brand in Beirut, before considering their other brands and different locations around the country. Nevertheless, due to the appeal of the Lebanese market, operators are now being more flexible.”
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Supplier Focus • News • Analysis • Innovations • Trends
Hotels need to offer “story food” argues expert Justify a higher price with quality ingredients and detailed menu descriptions F&B There is a growing trend for hotels to invest more in quality produce in order to deliver “story food”, said Meat & Livestock Australia regional manager Middle East & Africa Lachlan Bowtell at February’s Gulfood exhibition. Despite the economic downturn, Bowtell said there had been a lot more interest from hotels and restaurants for products that give “an image of providence or greed”. “We’ve seen 2000 tonnes of grain fed beef coming to the Middle East and North Africa in the last 12 months off a load base of about 200 tonnes the previous year, so a dramatic increase,” he said. This was because hotels increasingly needed to differentiate their offering, said Bowtell, by creating a story around their food — just as they would with a wine list that highlights different regions.
“It’s only the start of a trend but you would think after what happened last year everyone would decide to buy chicken or cheap protein,” said Bowtell. “That was the immediate reaction in a lot of cases but what’s happened now is it’s all settled down and the focus is on quality — hotels are realising they need to bring in better quality product and give better quality meals and really just cop a bit of a break on margin. “It’s a global trend. In Australia we’ve seen a real move towards higher quality beef and lamb; it’s story food. In the Middle East where the vast majority of its protein for food service is imported, you need story food, you need something that’s going to be different. It’s not good enough to have a certified Angus beef from America,” said Bowtell. He explained that offering a choice of branded meat options on menus “takes away the reliance of selling by price, as it’s selling by experience”. “I don’t look at the prices because
The Arte Vivo showroom has opened in Dubai.
Meat & Livestock Australia’s Lachlan Bowtell.
I’m blown away by the description. It justifies a higher price. “If you put a story around food, you’re going to pay more for the product but you’re going to get a higher price for it and it makes it unique to you,” said Bowtell.
Sales up 75% in 2009 reveals MGK GM HACCP monitoring equipment provider Mobile Gastro Konzepte FZE (MGK), supplier of the HACCP wireless monitoring solution Temptrak, reported a 75% increase in sales in 2009. According to MGK managing director Mirco Beutler, the increase was attributed to the fact that following several years of education, UAE hotels are now aware of the need to invest in advanced systems that can eliminate the “human failure factor” when it comes to food safety. Commenting on Temptrak, Beutler said: “The system automatically records the temperature of food storage units and dishwashing rinse cycles, automatically informs a chain
www.hoteliermiddleeast.com
of people in cases of temperature fluctuations, records the corrective actions versus the critical event and makes that information available for the Municipality. “You will be automatically alerted to variations in temperatures outside the safe parameters in the early stages of a potential problem. This eliminates the risk of losing valuable produce, wasting energy and reduces the possibility of food poisoning cases. Beutler expects demand for the products to continue, particularly in markets such as Saudi Arabia and India. “We will start the education process again together with HACCP teams and our strategic partner
Hotel design firm opens first Middle East showroom
Diversey Gulf. International chain hotels such as Jumeirah or Hyatt are already aware of the technology and they expressed their desire to proactively adapt it as the municipalities in neighbouring regions further implement HACCP food safety standards.” Beutler said that MGK was expanding its business to Saudi Arabia, India and Morocco, with actively developing support structures in the respective regions. MGK currently works with 53 fivestar hotels in the GCC and Beutler said that the investment required for a Temptrak system ranges from US $5000 for a small package to $60,000 for a large scale operation.
Hospitality manufacturing and interior design firm Arte Vivo has launched its first showroom in the Middle East in Dubai. Arte Vivo managing director Michael Pass commented: “We chose Dubai as it is the hub of the Middle East, and it will be a gateway for our clients in the surrounding region — the Middle East, India, Russia and other emerging markets”. Pass said Arte Vivo would provide “a strong single source of solutions for hoteliers” in the region, from manufacturing services and quality assurance protocols to integrated interior designs and architectural services. As part of its aim to offer turnkey solutions, the company has partnered with Philippines-based furniture supplier Pacific Traders & Manufacturing Corporation. The company’s president and chairman of the board, Charles Streegan, said: “We believe that Pacific Traders and Arte Vivo together will add a new dimension to the hospitality industry in the UAE and the region”. Pacific Traders design director Bernice S Montenegro, who has worked with designers such as Antonio Citerrio, Patricia Urquiola and Ralph Lauren, is also part of the Arte Vivo design team. Hotelier Middle East • April 2010
59
SUPPLIER NEWS
60
HABC set to launch Middle East office Dubai base to provide food safety qualifications as well as training materials TRAINING Internationally recognised qualification provider Highfield Awarding Body for Compliance (HABC) has obtained an office at Knowledge Village in Dubai with a view to opening within the next two months. Speaking on the sidelines of the Dubai International Food Safety Conference held alongside Gulfood, HABC chief executive Jason Sprenger said the firm was already working with Dubai and Sharjah Municipalities and Abu Dhabi Food Control Authority and that it wanted to be closer to its customers. “Our company is customer-service oriented,” said Sprenger. “To provide excellent service and high quality products you need to be near your customers. It’s very expensive to send staff and prod-
FL AT WA R E & H O L LO WA R E
ucts to the region from the UK, so by being closer to our customers it will cut prices considerably and improve turnaround times on certification.” HABC (Middle East and Asia) will provide accredited food safety, HACCP, health and safety and security qualifications to all sectors of the food industry and training organisations, along with offering first aid in partnership with the Dubai Centre of Ambulance Service. They will also offer “train the trainer” qualifications to enable organisationS to provide more training qualifications. “There is no other company with the range and quality of products and qualifications we have for providing compliance services,” asserted Sprenger. HABC will also distribute training materials to customers in the Middle East and Asia, which will
From left: Highfield chairman Richard Sprenger and HABC chief executive Jason Sprenger.
include books, DVDs and e-learning on a variety of subjects including food safety, HACCP, health and safety, first aid, infection control, and nutrition and health. It offers the materials in 26 languages including Arabic, Urdu, Hindi and Malayalam, and intends to expand these in the near future.
Asia Tent targets event organisers in UAE
C O L L E C T I O N
g u y d e g re n n e - h o t e l . c o m
Renarte Hospitality Supplies (LLC)
Dubai - U.A.E.
Tel No : 00971 4 335 4408 Fax No : 00971 4 335 4478 Em a il : re n a r t e @ e im . a e Website : www.renartellc.com
April 2010 • Hotelier Middle East
Asia Tent International (ATI) has ramped up its focus on the UAE following its official launch in the region at the Dubai International Boat Show last month. The company’s general manager Ron Millward said: “This year’s show was housed in the latest modular designs of Aluminium Structures available today, which showcases the superior level of quality that ATI will provide to the UAE”. Established in 1992, ATI manufactures clear span structures that measure up to 60 metres wide. The company says it uses the highest grade of aluminium alloy and PVC for increased durability and custom designs. Accessories such as doors, glass panels, temporary tiered seating, lighting and air conditioning can be installed achieving an almost permanent building. “The assumption by many is that tents are a simple concept that always work, which is not necessarily the case,” said Millward.
Asia Tent International manufactures clear span tent structures spanning up to 60 metres wide.
“Today, structures are designed and built using engineers, architects, scientists and designers and are very much representative of the building and architectural advancements of the 21st century. “New developments in technology have enabled us to create innovative designed structures
that meet the required needs of the industry today,” he added. ATI has supplied major events such as the Olympic Games, Asia Games, Commonwealth Games and Formula 1. It has offices in 15 countries around the world and a rental division of inventory that includes 70,000m² of rental stock. www.hoteliermiddleeast.com
SUPPLIERS
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Floor show
Carpets Inter managing director Parkpoom Jarnyaharn says bookings are strong in 2010, with particular demand for eco-friendly carpet products
COMPANY PROFILE ublicly listed Thai company Carpets Inter has had a bright start to 2010, according to managing director Parkpoom Jarnyaharn. Inquiries, demand and bookings are high for the year so far, with Jarnyaharn expecting this to continue into quarters three and four. “Business will be wavy during the recovery period in most of the countries that we operate in, with Asia picking up faster than the Americas,” says Jarnyaharn. “Carpets Inter has a high level of order backlogs and promising inquiries from both Asia and the Middle East. Demands and actual bookings in all product ranges, including Hand Tuft, Axminster, Machine Tuft and Carpet Tile, are high in the first and second quarter and looking forward, they will be even higher in the third and fourth quarter as well.” This is good news, considering that in 2009, the recession resulted in the company seeing “approximately a 10-15% demand downturn” according to Jarnyaharn. “We reacted by holding on to shares in the markets that we participated,” he says.
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COMPANY INFO COMPANY: CARPETS INTER ESTABLISHED: 1974 STAFF: 150 office and 1400 factory USPS Flexibility and a ‘can do’ service mindset; leadership in sustainability and CSR; variety and capability in design; ‘one stop’ service from design concept to finish on the floor. PRODUCT LIFE-CYCLE: seven to 10 years with warranty; normally hotels reorder after four to five years. TEL: +662 318 3670 EMAIL: export@carpestinter.com WEB: www.carpetsinter.com
April 2010 • Hotelier Middle East
Thai company Carpets Inter provided the handtufted carpet at Le Meridien Chiang Mai, above.
GREEN CONSIDERATIONS HAVE BECOME THE NORM IN THE DESIGN AND PURCHASE STAGES To overcome the challenges of 2009, Jarnyaharn says the priorities were: offering more flexibility and product choice; design and delivery commitment; excellent service; and pricing on a ‘case by case’ basis. In addition, all crises tend to open up opportunities and in the case of the worldwide carpet and flooring industry, the 2008/9 economic downturn highlighted the demand for using environmentally friendly materials, he continues. In 2009, Carpets Inter experienced high growth for its Cushionbacked EcoSoft Nylon Carpet Tiles, with demand for these products specifically from the hospitality, leisure and commercial markets. “Green considerations have become the norm in the design and purchase stages,” says Jarnyaharn. 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 as we can luxury brands. As a result, the company has also recently decided to extend its ecofriendly product development to include international product certifications and labels. The Hand Tuft, Axminster, Machine Tuft and Carpet Tile
brands are registered under the CRI Green Label Plus system and The Wool Broadloom and Wool Cushion-backed Axminster EcoSoft Tile are ANSI / NFS140 and Carbon Label certified. Carpets Inter has also started a carbon footprint programme for major products starting with the wool and nylon ranges. In addition to the focus on sustainability, Jarnyaharn says the emerging trends they saw in 2009 were the growth of a niche market in hospitality and gaming areas for the Axminster EcoSoft Tile, and new markets in the Africa hospitality industry and boutique airlines. HME
ABOUT PARKPOOM JARNYAHARN Parkpoom Jarnyaharn joined Carpets Inter in 2004 and was promoted to managing director in January 2009. He held previous management roles with various companies in the chemical industry, including most recently Troy Siam Company Limited and Union Carbide Thailand.
www.hoteliermiddleeast.com
OUR BUYERS WANT TO MEET YOU!
Q. Do you want to meet the leading Purchasing Directors from the Middle East’s largest and most influential hotel chains, procurement companies & consultancy firms? A. You can in a fast, efficient and cost effective way at HOTEC Middle East 2010. Join us at the Shangri-La Bar Al Jissah Resort, in Muscat,Oman from the 07th to 10th May 2010 • With 2 days of face-to-face focused business meetings • 3 evenings of networking and relationship building • An educational seminar program and interactive panel discussion • Limited competition in your specific product category • A Supplier Showcase session will expose your products to ALL buyers attending.
HOTEC 10 Middle East
7-10th May 2010 Please contact us for more information: David Zarb Jenkins Email: david@mcleaneventsinternational.com Tel: +356 2137 0207
www.hotecme.com
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Island spa Hotelier Middle East discovers how the Aukett Fitzroy Robinson design of The Spa at Radisson Blu Hotel, Abu Dhabi Yas Island is inspired by the surrounding water, waves and palms FITTED OUT ocated on the mezzanine floor, The Spa at Radisson Blu Hotel, Abu Dhabi Yas Island is a calming space in this modern, bright hotel. Like the rest of the property, the design of the spa is influenced by Yas Island’s unique setting, as the hotel’s designer, Aukett Fitzroy Robinson head of interior design Anne Kuzyk, explains. “The concept for the spa was based upon ‘life in the oasis’. This plays on the spa’s fantastic location, bringing elements of the island inside,” says Kuzyk. “This theme can be felt throughout the spa and is implemented in a very contemporary way. The pattern of the date palm can be seen in the plush inset carpet and on the feature wall panels in the reception area. The circular pebble like stone tiling used in the ladies grooming area and the driftwood inspired stone tiling used in the men’s grooming area adds to this outdoor feeling. “Our favourite space within the spa is the ladies wet area; here the guest is treated to perfect views over the dramatic desert landscape of the island,” continues Kuzyk. “The colour scheme takes its inspiration from the sand colours of the desert dunes and turquoise tones of the Arabian Sea; this palette is combined with cream and burgundy to create a warm and inviting space.” The spa features separate large changing areas, relaxation and wet areas for men and women, four female treatment rooms and two male treatment rooms. The changing area is also available for use by the hotel health club’s 130 members. Staff comprise six therapists, three spa attendants and two receptionists. Spa and recreation director at Radisson Blu Hotel Abu Dhabi Yas Island, Susan Yarbug, already has plans to extend the spa and convert unused space in the male area into treatment rooms. She is also adding luxury massage chairs from 5 Pisces at Oakworks to the relaxation areas to enable manicure and pedicure treatments to be performed outside of the valuable treatment room space. What Yarbug is most excited about, however, is the addition of organic range Neom Luxury Organics to the existing offering of popular lines Aromatherapy Associates and Anne Sémonin. A true advocate of organic products, Yarbug says: “Organic is a must, it works better, for example, think about100% pure cocoa butter. Some people’s skin is too sensitive even for products with natural ingredients, they need organic.” Plus, she adds that there is no need for the price of an organic facial to be more expensive than an ordinary facial. While still waiting for approval from the supplier, Yarbug is hopeful of adding the range in the summer. She is also looking into adding an affordable product line to the spa, believing that the key to success is to be able to offer guests choice. HME
WELCOME
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April 2010 • Hotelier Middle East
The island inspiration running through the spa begins at the reception, with a date palm design rug from EGE Carpets Middle East and a textured, curved wall by Stonell London.
RETAIL The Spa at Radisson Blu Hotel retails both the Anne Sémonin (pictured) and Aromatherapy Associates spa lines, both supplied by The Product House.
WET AREA Dale Sauna supplied the spa baths, saunas and steamrooms in the male and female changing areas. In the male room, pictured here, the whirlpool is surrounded by bright turquoise walls.
www.hoteliermiddleeast.com
65 SUPPLIERS
VANITY AREA The chairs from Sahco Hesslein at the Chelsea Harbour Design Centre in the UK add a touch of colour to the grooming area and also feature a wave-inspired pattern.
TREATMENT ROOM The female treatment rooms (pictured) are finished in red tones, while the male treatment rooms are blue. Treatment beds are by Oakworks. A highlight of the rooms is the lighting, says Yarbug, installed by main contractor Al Habtoor to provide colour therapy during treatments. Four different settings enable therapists to move quickly and easily between welcome light levels through to deep relaxation.
MOONSTONE The wall above the vanity dresser and mirror in the ladies’ changing area is created entirely from moonstone supplied by Porcelanosa in Watford, UK and in keeping with the Anne Kuzyk’s vision of bringing the outside into the spa.
PRODUCTS Guests are invited to try the Aromatherapy Associates oils at the reception.
RELAXATION The spacious, airy relaxation area in the female changing room features three loungers by Your Spa and cushions by Zoffany @ Feshwari. The side tables are supplied by PS Interiors.
SPA AMENITIES Anne Sémonin has created an exclusive range of in-spa and in-room amenities for Radisson Blu hotels, including shampoo, conditioner, body wash and body moisturiser.
www.hoteliermiddleeast.com
LADIES ONLY The female change wet area by Dale Sauna is decorated with neutral mosaic tiles and offers natural light and views of the Yas Island Links Golf Course on the west coast of the island just behind the Radisson hotel.
Hotelier Middle East • April 2010
Voted Best in Class by Consultants
Consultants make it their business to know what works best. After all, their business is only as good as their recommendations. In 2009, Alto-Shaam’s Combitherm earned the Best in Class award from Foodservice Equipment and Supplies magazine for combi ovens as recommended by consultants.
Mark Kreple 001-262-509-6410 www.alto-shaam.com
When asked what combi oven they considered the best, consultants chose the Alto-Shaam Combitherm more than any other combi oven. Product quality, value, and design came into play, as well as customer service, inventory delivery, sales rep quality and information availability. This was one thorough test!
EcoSmart™ products demonstrate our commitment to greener, more energy-efficient technology.
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An update on new products, best sellers and kitchen trends from some of the region’s top oven suppliers
CONVOTHERM
Convotherm area sales manager Middle East Gerhard Eichhorn says the focus is on ‘eco-cooking’.
Contact: Convotherm Web: www.convotherm.com
Following its recent accolade for Best Environmental Initiative at the GulfoodAwards, Convotherm will be continuing to focus its energies on“eco-cooking”. Convotherm received the award for itsAdvanced Closed System,which the company’s area sales manager Middle East,Gerhard Eichhorn,says is not only a“high-end energy saving system”but“gives your wallet a break”. “TheAdvanced Closed System reduces energy and water consumption up to 30%,”says Eichhorn. “The benefit is less weight loss and less energy consumption without any time loss.” He adds:“The new cooking mode ecoCooking saves another 25% of energy.The operation system is quite simple as it is both easy and brilliant; the integratedAdvanced Closed System keeps almost all the heat inside the chamber and does not allow it to escape while cooking.This new feature uses pre-programmed pulses of energy to maintain the required temperature,rather than keeping
the power going throughout cooking.The food itself continues to cook by using the residual heat to prolong cooking and achieve the perfect result,even in the shortest amount of time”. Another important issue for today’s kitchens is cleaning and hygiene,says Eichhorn. “The automatic cleaning system ConvoClean provides you with guaranteed standards of hygiene thanks to automatic steam disinfection and hot air sterilisation,”he continues.“The antibacterial door handle with embedded silver ions prevents bacteria or microbe transfer (e.g.salmonellae) from the door handle onto containers or plates. “The hygienic handle is a further addition to sparing the environment since you don’t need aggressive chemical for cleaning,”adds Eichhorn. Seventy per cent of Convotherm’s business
BEECH OVENS Beech Ovens specialises in cooking equipment used in theatre kitchens in luxury hotels,including baking ovens,stone hearth (pizza ovens),tandoor ovens,duck ovens,grills,parillas,churasscos and electric bread ovens. Beech Ovens sales director Brett Beech says: “Luxury hotels is a competitive market,they invest huge amounts of dollars in their restaurants and updating the décor — providing the customer with a sensational dining experience is the key”. The company has recently equipped some of the hotels atAbu DhabiYas Island with ovens, grills and tandoors. Beech explains:“One of these ovens was a spectacular stone hearth oven with window that was triangular in shape to fit into the corner of their island kitchen buffet.This was in Choices Restaurant in theYas Island Rotana Hotel. “In the same hotel in the Blue Grill restaurant,
The mini mobile range enables hotels to have mobile kitchens for new locations and for use by semi-skilled or short-term staff.
comes from hotels in the Middle East,with plans to increase this through its mini line at hotel theme restaurants,mini bars etc.One of its newest products is the OES 6.10 mini mobile,a combi steamer which has dimensions of 515 x 777 x 732, weighs 67kg and can fit six 40mm 1/1 deep gastro norm containers. Convotherm also plans to increase its activities in relationship with culinary guilds to be part of the education of young chefs.
HOW TO SELECT YOUR OVEN Brett Beech says hotels should consider the following factors when choosing ovens:
Beech Ovens supplied Choices and Blue Grill at Yas Island Rotana. we supplied a bespoke three-metre long,two-metre wide diamond shaped four station grill,which is on display in their theatre kitchen.” Beech has also recently suppliedTheYas Hotel and TheArmani Hotel. All the company’s Middle East clients are hotels and this represents 20% of overall sales.Future plans include enhancing its online presence to
enable designers,chefs,hoteliers,contractors and technicians to quickly and easily find documentation and multi media information about the company 24 hours a day.
Contact: Beech Ovens Web: www.beechovens.com
Quality of staff available Quality of training available Volume required Socio-economic level of clientele and the type of food appropriate for that area — it’s no use selling expensive gourmet pizza where customers can’t afford or are not attracted to gourmet product. Back of house, a conveyor or deck oven could be suitable for pizza, but if the hotel wants a point of difference and a spectacular centerpiece for their restaurant, a stone hearth oven is very popular choice.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 421 8475.
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
PRODUCTS
Turning up the heat
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MKN Patented technology generates steam inside the cooking chamber.
According to MKN Global Marine director sales Stephan Kammel, there are four main factors for hoteliers to keep in mind when choosing ovens. These are: energy efficiency; flexibility; capacity and easy cleaning. The HansDampf range can meet these requirements, says Kammel, in several ways. Patented PHIeco technology and integrated heat recovery ensures that steam is generated right where it is needed, inside the cooking chamber. “Through heat recovery from the condensate, the water is heated for steam generation through the heat exchanger and the condensate is cooled at the same time.This saves energy and costs,” says Kammel. HansDampf gold offers the most flexible oven option for hotels and its size means that it
maximises operational efficiency, he continues. “Enormous capacities can be achieved with HansDampf gold due to its innovative space concept. Depending on the diameter of the plates, and appliance size, between 24 (HD 6.1) and 40 (HD 10.1) prepared plates, can be placed on the special grids,” says Kammel. And for cleaning, Kammel recommends the WaveClean system, which means that the “Hansdampf can clean itself”. “Instead of conventional tablet and liquid detergents,WaveClean technology uses a patented two-in-one cartridge; rinsing agent and detergent in one sealed cartridge,” he explains. Approximately 80% of MKN’s business in the Middle East is with the hotel industry, with the best selling products including the HansDampf Compact, the HansDampf Junior and the HansDampf Connect.
The efficient, flexible, easy to clean oven with a sizeable capacity.
Contact: MKN Web: www.mkn.eu / www.hansdampf.eu
SOLARCO EQUIPMENTS New from Solarco Equipments in 2010 is the ElectroluxAir-O-Steam Touchline,described by managing partner Philippe Bacha as“an intuitive,green oven”. Bacha says:“The ElectroluxAir-OSteamTouchline simplifies cooking through intuitive colour touchscreen panels,saves money through streamlining the cooking process efficiency and reduces the climate impact through C02 emissions to 10 times lower than European standards require”. The product was developed by Electrolux Professional to meet the demands of“highly intuitive cooking”and reduce the impact of ovens on the climate,says Bacha,and will be very competitive because of its“highest quality and competitive pricing strategy”. As well as‘green’considerations, Bacha says hotels must always prioritise quality. “The most important factor to be taken into consideration is quality as it can have a substantial impact on the cooking results and its consistency, as well as on sustaining the proper temperature ratios that are essential to avoid health and hygiene risks,”he says. He also recommend the ElectroluxAir-O-Steam Combi Ovens for hassle-free cleaning and saving costs — it can usually replace several conventional
The Electrolux Air-O-Steam Touchline oven system is “easier and greener”.
cooking appliances in the kitchen through the versatility of its operation and cut costs through reducing the man-hour costs by using nonsupervised overnight cooking. Presently 50% of Solarco Equipments business in the Middle East comes from hotels. Bacha says:“Solarco Equipments strength has been shown to be the amount of repeat projects from our existing client base.This is usually quite unheard of in this complex and highly competitive
market.Usually when a client signs a contract with Solarco Equipments we see them coming back again and again regardless of whether the contract was for a small coffee shop or a major hotel. “We intend to maintain this hard earned proof of confidence and reach out for other exciting projects with new clients.We predict that we will see an improvement in the kitchen equipment contracting
market in 2010.We have already started seeing a substantial increase in projects requests for pricing and we feel that this is indicative enough to be cautiously optimistic,”says Bacha.
Contact: Solarco Equipments Email: info@solarcoequipments.com
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 210 8475.
April 2010 • Hotelier Middle East
www.hoteliermiddleeast.com
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RATIONAL One of the biggest challenges in any kitchen is achieving high quality and then keeping this high quality consistent at all times, says Rational International Middle East chief representative Hannes Braun. Rational has developed the SelfCooking Center® to manage this issue, he says. “With The SelfCooking Center® the demanding daily kitchen routine is under control: baking, roasting, grilling, steaming, braising, blanching, poaching and much more, all in a single unit,” says Braun. “All the conventional settings such as temperature, cooking time, air speed or cooking cabinet climate are not necessary any more, everything happens automatically. If the customer wants his fish brown on the outside and succulent on the inside — just one button needs to be pressed, that’s it.” SelfCooking Control sensitively monitors and controls the cooking process 3600 times an hour and also automatically records all the
required HACCP data. Other benefits are the ease of use by new staff, space-saving qualities — it relieves 40-50% of all conventional cooking appliances on a tiny footprint, according to Braun — and a reduction on the use of raw materials by an average of 22% due to less shrinkage. The product is also environmentally-friendly, says Braun. “The SelfCooking Center® saves up to 60% energy compared to conventional cooking appliances. The decisive factor for energy consumption is how efficiently the heat produced is transferred to food. The patented Rational cooking process control guarantees that the amount of energy supplied is exactly the amount needed,” says Braun. “The heat dissipated from a unit is another determining factor. The use of highly sophisticated insulating materials in the Rational SelfCooking Center® reduces heat losses to an absolute minimum. As a result,
there is much less heat emitted into the surrounding area, and investment in airconditioning systems can be significantly reduced,” he adds. Seventy per cent of Rational’s business is from hotels in the Middle East, and Braun plans to build on this through participation at events like Gulfood and actively visiting hotels and the people working in the region’s kitchens.
Rational International Middle East chief representative Hannes Braun.
Contact: Rational Web: www.rational-online.com
The Self Cooking Center from Rational.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 210 8475
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
Dometic Hotel Systems – for profitable in-room marketing
Technology & innovation leader More than 40 years of hotel industry experience Comfort products for every hotel room Environmental focus
Tailor-made comfort solutions
Dometic Hotel Systems
First class comfort for every hotel
By Dometic – The well-proven partner of hotels worldwide For all those wishing to offer their discerning guests more comfort and safety, Dometic Hotel Systems is the perfect choice. The comprehensive product range provides profitable solutions for all applications – from manual miniBars to fully automatic miniBars, from safes to extended stay hotel equipment. HiPro miniBars I (semi-) automatic miniBars I proSafes I wine cellars Dometic AB, Regional Office Middle East - P.O. Box 74775, Dubai, United Arab Emirates Phone: +971 4 321 2160, Fax: +971 4 321 2170, info@dometic.ae
www.dometic.com
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This month Hotelier presents the latest mini bar products now available to Middle Eastern hotels BAR CONTROL Bartech has recently launched new versions of its multi-functional remote controls, which are used to manage the main functionalities of Bartech’s Minibar Management System. The five existing models have been completely redesigned and are provided as standard within Bartech’s turnkey installation package. The remote controls can be used by hotel staff for locking and unlocking mini bars, refilling and maintenance testing. Bartech offers a wide range of automatic minibars with capacities from 40 to 75 litres, different types of dry section, and two different cooling units. The Winbart™ software posts all minibar charges automatically to the guest folio through an interface with the hotel’s property management system.
BARTECH Tel: + 33 (0)1 41 44 10 10/ + 971 50 244 28 44 Email: info@bartech.com/ dbastasin@bartech.com Web:www.bartech.com
ENERGY SAVER Indel B has introduced an advanced minibar which promises “absolute quietness and extremely low energy consumption”. Equipped with the efficient low noise Danfoss compressor cooling system, K Plus minibars (35, 40 and 60 litres) are the first in energy efficiency class A+ , equipped with ecological refrigerant gas R134a, says Indel B Spa. The K40 Plus has a daily consumption of 0,21 kWh/24h. The company claims K Plus mini-bars absorb 70% less energy than the best absorption mini-bars on the market. Also available from Indel B is DrinkPlus (20, 30, 40 and 60 litres), the new design absorption mini-bars.
INDEL B SPA Tel: +39 0541 848711 Fax: +39 0541 848000 Email: marketing@indelb.com Web: www.indelb.com
THERMOELECTRIC TECH The Advance Plus system of refrigeration from Spanish company Omnitech uses thermoelectric technology accompanied by an interior covered in aluminum. This enables the spread of the cold air in a more economic, efficient and silent way than the fan used in traditional thermoelectric mini bars. SMART LINK The Advance Plus mini Tel: +971 6 5348 556 bar, which is distributed by Mobile: +971 50 6787667 Smart Link Trading LLC, has optional left or right opening, lock, castors and glass and is available in various sizes: 28L, 35L, 40L, 42L and 45L.
MOBILE MINIBAR Hostar International, Inc. claims its ProHost Minibar Mobiles have revolutionised the guestroom bar restocking process. The large capacity Minibar Mobile Supplier makes it possible to cover an entire assignment without reloading throughout the day. Teamed with the Power-Assist option, ProHost Minibar Mobiles enable attendants to move a fully loaded Mobile from room to room with just the touch of a button. The Power-Assist option helps reduce work related injuries, and complaints of back strain and fatigue caused from pushing and pulling overloaded carts. All ProHost Minibar Mobiles feature a lockable tambour door that ensures inventories are secured at all times, reducing unaccountable losses.
HOSTAR INTERNATIONAL Tel: +1 440 564 7400
Launching at The Hotel Show
Renarte Hospitality Supplies Tel: +9714 3354408 Fax: +9714 3354478 Email: renarte@eim.ae
MEGA MINIBAR The new minibar concept from Dometic AB has been developed for hotels to offer guests traditional minibar items as well as full size wine bottles at serving temperatures, thanks to a dual temperature zone system. The combined wine cellar and minibar is larger than standard miniBars so needs to be incorDOMETIC AB porated in designs early, says Dometic Dubai, United Arab Emirates The product is intended for suites, villas Tel: +971 4 321 2160 and more lavishly designed rooms at top propFax: +971 4 321 2170 erties and the new model will be launched for Web: www.dometic.com the first time at The Hotel Show in May.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 210 8475.
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
PRODUCTS
Product guide: mini bars
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Products: pick of the month Hotelier Middle East brings you a selection of the latest products to hit the hospitality marketplace SEDONA EXTENSION Villeroy & Boch’s Hotel & Restaurant Division has extended its elegant Sedona range of tableware to include a further 36 pieces. The company has developed the Sedona plate concept into a complete series, with various cups, plates, dishes, bowls and platters from the Marchesi and Dune series being added to the 29-cm Marchesi plates. The items are linked by a reliefpattern design element which is produced using a high-quality white on white colour printing technique.
The Product House Tel: +971 4368 9874 Email: clare@theproducthouse.biz Web: www.theproducthouse.biz
Villeroy & Boch S.à.r.l. — Hotel & Restaurant Tel: + (352) 46 82 11 Fax: + (352) 46 90 22 Web: info.hr@villeroy-boch.com
COMPLETE CORRECTION The Kerstin Florian Correcting range is the latest launch from spa product supplier and aesthetician Kerstin Florian. The complete line comprises cosmeceutical-based skincare formulas which are designed to provide solution-focused, targeted results for all skin types. Key ingredients in the skincare formulas include aloe vera leaf extract and Vitamin C+ Complex — which is 50 times more active than standard Vitamin C. Products include At Home Professional Peel, Serum C+ Infusion and Intensive Renewal Glycolic 15.
HANSGROHE AG Tel: +357 22 441370 Email: lina.varytimidou@hansgrohe.com Web: www.axor-design.com CITTERIO’S CREATIONS Designer Antonio Citterio has further developed his bathroom creations for Axor, the designer brand of Hansgrohe AG. Citterio has added a new type of mixer aimed at optimising the comfort zone of the wash basin area. The new Axor Citterio single-lever wash basin mixer is 180mm high with an adjustable jet angle using the flush integrated jet shaping unit. Citterio has also designed a new overhead showerhead and a “room within a room” Axor Citterio bathroom concept, whereby an enclosed area in the centre of the room accommodates the toilet with the wash basin, shower and bathtub placed along the outside wall. The new designs will be presented at the Salone Internazionale del Mobile in Milan from April 14 to 19.
KOHLER CO. Tel: +971 4 364 2650 Email: contact.middleeast@kohler.com Web: www.me.kohler.com
ON THE FLIPSIDE The new Flipside handshower from Kohler Co. uses Flipstream technology to offer users four sprays in one. The sprayface rotates on its axis with each of its four sides being dedicated to a different spray — Koverage, Kotton, Komotion and Kurrent.
The Flipside handshower is available in three design options. Flipside 01 features elegant, flowing lines; Flipside 02 has contemporary geometric lines and Flipside 03 makes a statement with a black handle. Finish options include Polished Chrome for Flipside 01, 02 and 03, and Vibrant Brushed Nickel for Flipside 01 and 02.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 4 210 8475
April 2010 • Hotelier Middle East
www.hoteliermiddleeast.com
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COMPASS Tel: +97143390411 Fax: +97143390668 Email: sales@compass-me.com POOL PERFORMANCE The new Palintest Pooltest 6 promises to provide a quick, accurate and reliable system for testing swimming pool water. It tests for alkalinity, bromine, chlorine, pH and calcium, with an extended range of chlorine testing — from 0.01 to 10 mg/l. The easy to use, waterproof meter features a large backlit graphics display screen and a universal symbol set, so is language free.
AQUAVISION Tel: +44 (0) 1992 708333 Email: info@aquavision.co.uk Web: www.aquavision.co.uk
WATER VIEW Aquavision has launched a new range of bathroom televisions for the hotel and contract / new build markets. The Flamingo waterproof televisions feature 17” and 24” wide screens and the new models are both HD ready. Standard glass finishes are Polar White, black and MirrorVision — when the television is switched off, the glass takes the form of a mirror that is suitable for shaving, make-up etc and when it is turned on, the mirror gives way to the television screen. Also new are some additions to the Series 4 high-end range, which has been updated and expanded to include three full HD models – the 24”, 32” and 40”.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 4 210 8475
www.hoteliermiddleeast.com
Hotelier Middle East • April 2010
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• News • Analysis • Innovations • Trends
Travelport aims to boost GDS bookings New IPTV platform from Blankom GDS provider rolls out regional training initiatives
Multi.TV to launch at Hotel Show
Travelport has announced a range of new initiatives in order to increase its visibility as an efficient sales channel for hotel bookings. The variety of initiatives rolled out by Travelport — such as GDS training for hotels — are intended to boost bookings made through GDS in the Middle East, which are not as high in the region as in the US and Europe. Travelport vice-president Middle East Rabih Saab said: “Hotel bookings made through GDS are not as high in the Middle East as we would like them to be. But this is slowly changing as more hotel suppliers in the region are recognising the value of the GDS and agents better understand the ease of booking hotels through the GDS”. The hotel training session was held for representatives from hotel groups such as Hyatt, Rotana, Raffles and InterContinental and was used to explain how the GDS booking process can be effectively used to drive hotel sales. “Feedback from the training session was very positive, with hotel suppliers keen to improve their hotel sales on the GDS and leverage the tools available on the system to increase their marketability at the point of sale,” added Saab. Travelport, which is one of the world’s largest providers of global distribution systems (GDS) and operator of the Galileo and
German company Blankom, a provider of video processing and transmission systems, will be exhibiting a new interactive IPTV-Platform at The Hotel Show in Dubai on May 18-20, 2010. The IPTV-platform, marketed as the ‘multi.TV’, is designed for the hospitality industry — providing a range of digital and interactive media services from HDTV to internet access— and will be custom-made for each hotel’s specifications and needs. Blankom sales and marketing manger for the Middle East region, Oliver Vogel, said: “We at Blankom believe that our ‘multi.TV’ will create a high interest in the hotel industry in the Middle East and we are looking forward to supplying our multi. TV IPTV-Platform to the region’s hotel industry.” The ‘multi-TV’ gives hotel staff the opportunity to undertake the required management of the TV easily, remotely and individually for any room, allowing hotels to
www.hoteliermiddleeast.com
Travelport’s Rabih Saab: GDS bookings are not as high in the region as we would like.
Worldspan platforms, has also teamed up with Marriott International to offer hotel training courses that are designed for the Middle East travel trade. The seminars, which are being held across the region, are giving Galileo-connected travel agents the opportunity to learn how to make hotel bookings through the system, as well as learning how to sell Marriott’s international properties more effectively to their customers. Marriott International director of e-commerce and intermediaries Greg D’Souza said: “Our training courses with Travelport provides agents with the knowledge and tools to book hotel rooms efficiently”.
In addition to the training courses, Travelport has announced a partnership with Net Trans, which will provide hotel commission recovery for its agency customers around the world. The agreement will provide Travelport agents with fully automated commission reporting and collection processing, increasing their commission income while lowering operating costs. According to Net Trans chief executive officer Martin F. Jørgensen: “Net Trans will help Travelport agencies boost their hotel income. For agents, an effective means of bringing in revenue that requires almost no work on their part is a total win”.
provide a customised service for each hotel guest. A new 398-room hotel in Doha is currently in the final stages of integrating the ‘multi-TV’ into all of its rooms and the company is also working on other projects in Europe, the Middle East and Africa, said Vogel. Blankom has been working in the Middle East market for more than 10 years and has been supplying CATV, SMATV Headends and IFDistribution systems to both the hospitality industry and to private operations. The company is hoping that the launch of ‘multi. TV’ will extend its reach to all hotels in the region. Vogel added: “We believe that with ‘multi.TV’, hotels have the opportunity to generate revenue by integrating services like Pay-TV, VoD, internet-access, e-mailing — functions the guest gets charged for. The investment is good value for hotels as they can achieve profit-generation status in a very short time”.
Blankom sales and marketing manger for the Middle East region Oliver Vogel.
Hotelier Middle East • April 2010
TECH TALK
76
G2 technology and digital profiling: reality or fantasy? Mövenpick IT guru Roger MacFarlaine says that if guest recognition programmes use digital profiling, hotels can physically change the room for each customer the moment they check in
IT EXPERT 2 might sound like an elite SWAT team, but I can assure you it is not quite that sinister. It stands for ‘Generation 2 technologies’ — a phrase I coined to address the introduction of new technologies, firmware and even greater levels of systems integration in a hotel. Hoteliers claim to know their guests and provide them with the personal touch. But in reality, does it happen? Or is it, as I believe, based on past experiences, merely rhetoric and a worn-out record that has been played many times over? When I started to think about G2, I was considering how to align various systems in the hotel to tune themselves to individual guest preferences, otherwise known as digital profiling. It’s all about personalisation as we move into the next decade. With G2, I wanted to change the physical attributes of a hotel and hotel room to suit the guest needs and preferences. How could this be done and what was involved?
G
In addition to our guest recognition programme and the preparing and customising of services and amenities for guests, I felt that there needed to be a more holistic approach to guest recognition. I wanted to try and take guest recognition to a higher level of personalisation where our hotel and hotel rooms can be physically changed to suit each guest. For me it is clear — digital profiling involves integrating the following three components: 1. A hotel’s guest recognition programme and capturing of what a guest’s preferences are. 2. The convergence of all systems using VLANs (voice, data), building management systems (BMS) and in-room management systems 3. ‘Middleware’ like Nevotek, which manages communications between the property management system (PMS), BMS, lighting and HVAC control solution for IP environments that link all afore mentioned facilities to our converged network.
ENHANCED GUEST RECOGNITION Firstly, it is extremely important for hotels to develop a culture of guest recognition and provide repeat guests and VIPs a proactive approach to guest preferences before, during and after their stay. However, they should achieve this using a discreet yet proactive system of recognition without the use of either card identification or cus-
THE GAME PLAN IS TO DEVELOP GUEST HISTORY DATA CAPTURE IN AN ACCURATE AND DISCIPLINED MANNER BY LISTENING PROACTIVELY TO OUR CUSTOMERS April 2010 • Hotelier Middle East
tomer expectation incentives. The plan is to capture guest history data by listening to our customers, learning their tastes and preferences, and recording this information in our guest history databases in the property management system. Secondly, our systems need to be cost effective, intuitive and think the way we do when providing personalisation and servicing of our guests. Using ‘middleware’ software and hardware we are looking at connecting lighting, curtain control, HVAC, voice, data, IPTV and digital content to the building management system.
With this level of integration hotels and hotel rooms can be adapted to individual guest needs. In this way, we are not only maximising the technology infrastructure but we are reducing a hotel’s energy costs by controlling the air conditioning, the lighting and the resources. Hotel designs of the future need to include such architecture and technology. As IT ambassadors, we need to advocate such technologies and we owe it to our internal and external customers to maximise costs of investment, help operational efficiencies and future-proof our hotels. HME
WELCOME BACK MR JONES! Let’s introduce digital profiling with our mystery guest, Mr Jones. We know that Mr Jones likes Australian red wine, fruit instead of chocolate, his room at 24ºC, curtains drawn with ambient lighting and music DVDs. Capturing his preferences and recording them into the hotel’s PMS database is the first important step. Upon check-in, Make sure Mr Jones is happy by providing a bowl of the PMS allocates a room number fruit, the right lighting and his favourite TV shows. simultaneously sending protocol to ‘middleware’ (Nevotek) which in turn sends a signal to the BMS, in-room management system and the interactive TV system to activate lighting, temperature and a customised TV menu with digital content that focuses on music. Minutes later, room service is at his door with a lovely bottle of red wine and a fruit assortment. So from the time it takes for Mr Jones to check in and go up to the room, an automated sequence of events has taken place to tune the room to his preferences. In summary, IP-based solutions, coupled with intuitive technologies all working with a building and IT system, provides flexibility and customisation for a platform that generates efficiencies of services, cost reductions and meets the needs of all stakeholders — most importantly our guests. Progressive and advanced, yes indeed, but all hotel groups need to start thinking about this or else we risk operating in a comfort zone with a ‘business as usual’ approach.
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R E C O G N I S I N G T H E S TA R S O F T H E M I D D L E E A S T ’ S T R AV E L T R A D E
Thursday
6th May 2O1O Dubai, UAE
Introducing the innaugural Arabian Travel News Awards. To be held on Travel Agents Day at ATM 2010, the Awards will honour the Middle East travel industry’s best individual achievements. To submit a nomination for your colleagues’ or your own achievements in the past 12 months visit w w w. h o t e l i e r m i d d l e e a s t . c o m / a t n a w a r d s and follow the simple nomination procedure.
For sponsorship opportunities at the ATN Awards 2010, please contact: Diarmuid O’Malley Publishing Director Tel: +971 4 210 8568 Email: diarmuid.omalley@itp.com Karoline Wend Sales Manager Tel: +971 4 210 8721 Email: karoline.wend@itp.com For for the ATN Awards 2010, please contact: Monika Grzesik Editor Tel: +971 4 210 8413 Email: monika.grzesik@itp.com For nomination enquiries, table bookings and further information regarding the ATN Awards 2010, please contact: Annie Chinoy Deputy Marketing Manager Tel: +971 4 210 8353 Email: annie.chinoy@itp.com
ITP BUSINESS PUBLISHING CO. LTD. Aamal House, IMPZ PO Box 500024, Dubai, United Arab Emirates Tel: +971 4 435 6000, Fax: +971 4 435 6080, Email: subscriptions@itp.com, www.itp.com/subscriptions
TECH TALK
78
Who’s there? As security breaches continue to plague the hotel industry, hoteliers must consider investing in advanced identification technology to make their guests, and their business, more secure says Joe Mortimer GUEST IDENTIFICATION dentifying hotel guests used to be a simple procedure; the receptionist had to match the name of the guest with the name on the reservation and then hand over the room key. But in today’s world of cyber crime, credit card fraud and identity theft, it is more important (and complicated) than ever to ensure that the person checking in to your hotel is really who they say they are. In GCC countries, industry standards require hotels to upload data from the passport of every guest who is staying in the hotel on to a central government portal. Two months ago, numerous individuals who were carrying false passports managed to enter the UAE, check into hotels using fake identities and fake credit cards, and then depart the country less than 24 hours later, after they allegedly assassinated Palestinian Hamas chief Mahmoud Al Mabhouh.
I
Mohamad Haj Hassan,Al Bustan Rotana Dubai. April 2010 • Hotelier Middle East
The events that took place at the Al Bustan Rotana Dubai in late January have still not been confirmed, but one thing is clear; a number of individuals managed to check into the hotel under assumed identities. According to Al Bustan general manager Mohamad Haj Hassan, hotel staff followed standard protocol when several of the suspects checked in; taking a scan of their passports and a credit card swipe before handing them their room keys and wishing them an enjoyable stay. “The check-in procedures and guest identification in the region is on a par with, if not better than international standards. Hotels follow guidelines in terms of identification documents that guests present upon checking in, along with the information on the registration card which is also required to be filled out by guests,” Hassan explains. “Other than the above-mentioned standards which we strictly follow, we fully respect the privacy of our guests, as our goal is their comfort and satisfaction.” There is a conflict of interests between guest safety and guest satisfaction, which plagues the industry. By nature, hotels — especially fivestar properties — are welcoming and discreet when a guest checks in.
THE EVENTS THAT TOOK PLACE AT AL BUSTAN ROTANA DUBAI COULD HAPPEN ANYWHERE
RECOGNITION TIPS • Fingerprint scanners at check-in will confirm the identity of guests with biometric passports (depending where they were issued).
• Implementing fingerprint access systems in guest rooms prevents loss or theft of room keys.
the guests can access the guest room floors.
• Identifying and keeping tabs on guests is a combined effort — engage everyone to look out for unfamiliar faces on guest room floors.
• Support your CCTV system with facial • Biometric passport scanners are only effective if the guest is carrying a biometric passport.
recognition software that will pinpoint unfamiliar faces in guest areas.
• Protect corporate meetings and • Consider protecting your elevators with smartcard readers, so that only
More rigorous identification procedures that require front-desk staff to demand additional personal information or physical proof of identity could jeopardise this. “The events that took place at Al Bustan Rotana Dubai could happen anywhere; therefore each hotelier should always be prepared for any unfortunate incident,” Hassan adds. “I must say that we have strictly and smartly followed the standards, which have paved the way for our full cooperation with the authorities
conferences with fingerprint access systems on meeting room doors.
during the course of their investigations in this matter.” But the fact that the individuals were able to slip through UAE immigration, check into a hotel and then exit the country freely begs the question: is visual identification sufficient confirmation of identity? Like most hotels in the UAE, Al Bustan Rotana uses a passport scanner upon check-in to record guests’ personal identification data, while CCTV cameras help to identify the guests as they check-in, as well as www.hoteliermiddleeast.com
79 TECH TALK
Scandinavian Airline Systems has introduced optional fingerprint self check-in procedures that allow passengers to check-in with the touch of a finger — hotels may soon follow suit.
PASSPORT SCANNER Opentec’s 3M AT9000 e-passport reader provides fully featured, automated checkin, making it ideal for hotels with a high volume of guests. The state-of-the-art scanner takes just two seconds to scan the passport. The graphical interface is simple to learn, easy to use and allows front office staff to focus on customer service. The 3M AT9000 is equipped with RFID technology, enabling it to capture biometric data from passports, and features an optical document analysis function that can detect if a passport has been tampered with or forged. The scanner is currently used in more than 250 hotels in the Middle East. CONTACT Opentec Systems LLV Tel: +971 4 282 2263 Email: sales@opentecme.com Web: www.opentecme.com
www.hoteliermiddleeast.com
Hans Kanold, CEO of the Safehotels Alliance.
FINGERPRINT TECHNOLOGY IS HOPEFULLY SOMETHING THE HOTEL INDUSTRY WILL LOOK INTO AND START TO IMPLEMENT SOONER RATHER THAN LATER Hotelier Middle East • April 2010
IT’S THE SOCIAL RESPONSIBILITY OF THE HOTEL TO ENSURE THAT THEY HAVE VERIFIED THE GUEST STATUS
Opentec managing director Mohamed Khan. everyone else who is entering and leaving the hotel. Most hotels use a standard flat-bed scanner to capture passport information, which is then input into the system manually later in the day. The system is hardly fool-proof and the margin for human error when inputting data by hand is considerable, says Mohamed Khan, managing director, Opentec Systems LLC. “As security issues become more and more important, I believe that guest identification systems are going to be a predominant factor in the hospitality industry,” says Khan. “It’s the social responsibility of the hotel to ensure that they have verified the guest status. I think identification is a key factor for hotel guest check-in and every hotel should make sure that the identification document is accurate and the data is correct.” Using 3M AT9000 passport scanners and Opentec’s software applications, the data that is stored on a passport can be transferred to the application software and can then be dragged and dropped into the central government portal The use of biometric passports, which contain the passport holder’s personal identification data on smartcard technology, can help to eliminate the error margin, but the uptake of software that allows hotels to capture this information has been slow to date, Khan adds. The most advanced software package available provides passport authentication, which enables the scanner to establish whether the passport has been tampered with April 2010 • Hotelier Middle East
or forged and can authenticate the identity of the passport holder within a matter of seconds. Although this is not a standard option on the scanner, users can upgrade their software package to include this at any time. “Our customers are basically future-proofing their investment; all the technology is there in the hardware – it’s up to the customer to determine what software they want to use,” Khan explains. “Authentication software is something that hotels have never wanted, to date. Maybe the recent incident has been an eye-opener for everybody,” says Khan.
CASE STUDY On the other side of the Atlantic, the Nine Zero Hotel in Boston flaunts some of the most advanced guest identification technology in the hospitality industry. The hotel’s Cloud Nine penthouse suite features LG IrisAccess®3000 iris recognition technology, making it one of the most secure rooms in the city. Guests who opt in for the technology have a digital picture taken of both eyes at check in, which is then fed into enrolment software and stored. A camera outside the suite can then identify guests and grant or deny them entry to the Cloud Nine suite after a quick scan of the eye, even if they are wearing glasses or contact lenses. Once the initial enrolment process is complete, it’s impossible for anyone to enter the suite unless they are granted access by the camera or the guest, eliminating the risk of stolen keycards. Cloud Nine has proved a popular choice for celebrities; Christina Aguilera, Gwen Stefani, Pamela Anderson
Dave Seeley
TECH TALK
80
Nine Zero Hotel in Boston, US.
and Kid Rock have all checked into the suite in the past. [N.B. an LG spokesperson said this technology is not yet available in the Middle East.]
THE MAGIC TOUCH The fundamental guest identification requirements at the front desk of a hotel are not entirely different to those at the check in and immigration desks of an airport. Both the airport and the hotel needs to ensure the well-being of their customers or guests above all other obligations. Since 9/11, airports have been at the forefront of the guest identification dilemma. Governments, airports and airlines have all debated the extent to which airports can, and should, intrude on personal privacy in the name of safety. In an industry driven by hospitality and maximising the guest experience, this intrusion of privacy is not an option that is popular among hotel companies, but the recent spate of attacks on and in hotels is forcing hoteliers to consider their options. Safehotels Alliance CEO Hans Kanold suggests that hotels should consider implementing some of the technology and procedures currently being implemented at the front line of the airline industry, particularly the current move towards fingerprint reading technology and biometrics. “With technology like this implemented in a hotel, all paperwork would become unnecessary and fake
IDs far more easily tracked. It would mean that the check-in procedures will also become faster and more efficient,” he explains. “For the hotel industry, it also implies other advantages; the finger can be used to unlock your bedroom, replacing the key card and it can be used for payment in the restaurant etc. The system will simplify, save time, and increase security.” Some international airlines have introduced fingerprint self check-in procedures that allow passengers to check-in with the touch of a finger. Scandinavian Airline Systems (SAS) introduced this as one of their three check-in options on all domestic flights in Sweden, Denmark and Norway in 2008. “Fingerprint technology is hopefully something that the hotel industry will look into and will start to implement sooner rather than later,” says Kanold. “It is an investment for the hotel, but it has clear advantages. Both for the hotel and the guest — it will save time and money and it will increase security. In fact, it will also be environmentally friendly since it consumes far less paper.”
However, Al Bustan Rotana GM Hassan stresses that many people have serious reservations about the use of biometric data and the sharing of unique personal information. “The RFID and biometric passports have been introduced and are already used by some countries. I think it will be helpful if it serves its correct purpose,” he says. “However, there are many concerns pertaining to the security of personal information so I am not sure if its implementation will help in guest identification procedures.” Governments and airports are investing in the latest biometric technology such as fingerprint readers and biometric face and iris scanners. Authorities know that the implementation of this technology will intrude on people’s privacy more than ever, and extend the time travellers spend in an airport, but they also believe it will improve the safety of passengers, either through the recognition or deterrent of criminals. Perhaps the hotel industry should take note; invest in the technology and let the guests decide which is more important to them; safety or personal privacy. HME www.hoteliermiddleeast.com
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83
• News • Trends • Analysis • Hotel listings
No financial crisis for timeshare industry says RCI boss Shared ownership accommodation has ‘strong potential’ in Dubai due to leisure demand TRENDS The success of timeshares during the economic downturn has caused investors and owners to look towards shared ownership and mixed-use developments in Dubai, according to RCI Middle East and North Africa managing director Jeff Tisdall. “This is because the fundamentals which analysts look for when predicting strong potential for timeshare are all present in Dubai. Most importantly perhaps, Dubai is really
RCI Middle East and North Africa MD Jeff Tisdall.
starting to mature as a leisure destination,” said Tisdall. “From a consumer perspective, the financial crisis helps to highlight some of the key advantages of timeshare. When times are tougher economically, we all tend to use what we already have.” The move towards timeshare in the region is highlighted by the continued success of the market in destinations such as Sharm El Sheikh and Hurghada in Egypt, where timeshare owners have continued to travel, despite the economic downturn, said Tisdall.
The increasing popularity of shared ownership, as well as the possibility of partnered solutions, will be discussed at the Shared Ownership Summit , which will be held on May 1, 2010 alongside the Arabian Hotel Investment Conference. Tisdall added: “If you looked back 12 to 18 months, the strength of the residential market made it very difficult for established vacation clubs to enter the Dubai market by acquiring a block of residential units and then offering them to their member base. Today, conditions are much more favourable.”
Dubai World to receive $9.5 billion in government funding MARKETS Dubai Government has confirmed it is to plough up to $9.5bn into troubled conglomerate Dubai World, as part of a restructuring plan which will see work continue on major Nakheel projects. Of this new cash, $8bn will be pumped into the real estate developer, and $1.5bn into parent company Dubai World.
According to a statement by HH Sheikh Ahmad bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee, the funding will be provided in part by $5.7bn remaining from a loan previously made available from the Government of Abu Dhabi, and the rest from internal Dubai Government resources. Sheikh Ahmad added that as part of Nakheel’s restructuring proposal,
the company’s bank creditors “will be asked to restructure their debt at commercial rates. Trade creditors will be offered a significant cash payment shortly and a tradable security. Assuming sufficient support for the proposal, the 2010 and 2011 Nakheel Sukuk will be paid as they fall due”. Describing Nakheel as an “important part” of the emirate’s economy, he said the business plan would allow
work “to continue as soon as possible and puts Nakheel on a sound footing. The Government, as shareholder, will work closely with Nakheel so that any future projects are carefully planned and evaluated.” He said the restructure is expected to take several months to implement, and that the tribunal process “remains available to protect the companies, their creditors and other stakeholders”.
STOCK WATCH — FEBRUARY PRICE (US $)
CHANGE (%)
PRICE (US $)
CHANGE (%)
BX Blackstone Group (NYSE)
14.29
1.5
CHH Choice Hotels International (NYSE)
35.46
7.4
MAR Marriott International (NYSE)
31.80
17.3
KHI Kingdom Hotels (LSE)
4.88
14.8
IHG InterContinental Hotels Group (NYSE)
15.71
12.2
REZT Rezidor Hotel Group (SSE)
33.00
37.5
HOT Starwood Hotels and Resorts Worldwide (NYSE)
47.43
25.1
LHO LaSalle Hotel Properties (NYSE)
23.21
17.3
WYN Wyndham Worldwide Corporation (NYSE)
25.94
14.4
AC Accor (PSE)
41.42
11.8
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 February 24, 2010 compared with March 31, 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 • April 2010
INVESTOR
84
A view from Berlin:IHIF Bench Events chairman Jonathan Worsley reports from the International Hotel Investment Forum and says that while the hotel industry is lacking confidence, it remains cautiously optimistic
COLUMNIST f there was one resounding theme from the recent International Hotel Investment Forum (IHIF 2010) in Berlin, it’s good riddance to 2009, manage through 2010 and plan for better times ahead. Anyone who thinks the hotel investment industry will exit quickly from the global recession is mistaken. As speaker Eric Danziger, CEO of Wyndham Hotel Group, said: “The market is still bad but less bad”. There was certainly a feeling that we have reached the bottom and prospects can only look up. The focus for many speakers and panel discussions was one of cautious and conservative optimism for long-term prospects, where growth will be harder and need to be more focused and intelligent than ever before. The theme “Charting the Course for Intelligent Growth” provided the impetus for attendees to share ideas and work together on helping the hotel industry bounce back in a measured and rational way. The days of greed and easily obtainable credit were placed firmly in the past — a view reflected in the 1600 delegates attending the event, including almost 500 who had not attended the conference the previous year. We all learned a lot in Berlin, and while it was acknowledged things are not going to be easy, there was also acceptance of the challenges that lie ahead. According to Simon Turner of Starwood Hotels & Resorts World-
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April 2010 • Hotelier Middle East
wide: “It’s a cyclical industry…you have to keep plugging away and I think that if you have a longer-term view…if you stick to your basics and keep plugging along, you’re going to continue to see growth”. Many of the attendees agreed that there was an underlying current of community spirit — a passion for the industry to dust itself down and square up to the realities of a new global economic market.
THERE WAS A CONSENSUS THAT GROWTH WILL COME FROM A SELECTION OF BRIC COUNTRIES WHO KNOWS WHEN? In the 2010 European Hospitality Outlook Survey, DLA Piper asked more than 400 European hotel executives for their views on the recovery buzzword, and more than half of the respondents agreed that it will be at least 2012 before industry room rates return to the levels witnessed before the recession kicked in. Interestingly, only 2% of respondents expect an upturn in fortunes this year. Last year, 37% predicted solid growth in 2010. Forecasts, as always, are all over the map and different surveys throw out different results, but there was general consensus from the conference that growth will come from a selection of BRIC (Brazil, Russia, India and China) and emerging countries rather than the traditional Western economies that have suffered from a massive banking crisis, out of control public spending and a debt burden that will put these countries in the slow growth lane for years to come. Other highlights of the Outlook Survey include: • 54% of respondents describe their
12-month outlook for the European hospitality industry as “bearish”, down from 84% in 2009. Bullishness is up from 5% to 27%. • 68% of respondents view the economy and mid-market sectors as the most attractive opportunities for investors in the next 12 months. The survey suggests that whilst we appreciate the predicament we find ourselves in, hotel investors are beginning to position their businesses for a recovery. Look at Starwood, where Turner pointed out that the business has cut US $1 billion off its debt, leaving a strong balance sheet. During a panel session, Turner asked: “What are we going to do with the cash? Buy each other out,
or hoard the money?” The panellists agreed that investment and growth should only be done if it makes a brand stronger (the long-term approach), and not just because it looks good on the balance sheet (the short-term approach). Roger Bootle of Capital Economics (who predicted the recent boom years would come to an abrupt halt) agreed with the panellists and has urged businesses to proceed with caution. He highlighted that the issues responsible for the global economic crash have yet to be resolved, and until they are, money will be in short supply. And if money isn’t available, deals and developments will suffer accordingly.
FORECAST – SELECT EUROPEAN CITIES 2010 OCCUPANCY FORECAST – % CHANGE -5% to 0%
0% to 5%
5% to 10%
0% to 5%
10% to 15%
Stockholm
Berlin
Brussels
Frankfurt
Budapest Zurich
Edinburgh
London
Warsaw
Vienna
Glasgow
Oslo
Dublin
Prague
Milan
Rome
Moscow
Madrid
Istanbul
Copenhagen Amsterdam
Source: Mark V. Lomanno, STR Global
2010 REVPAR FORECAST (V 2008) – % CHANGE -20% to -15%
-15% to -10%
-10% to -5%
Brussels
Amsterdam
Berlin
Budapest (€)
Copenhagen (€)
Glasgow
Dublin
Frankfurt
Istanbul
Frankfurt
Oslo
Madrid
Milan
Moscow
Prague
Warsaw (€)
Rome
Zurich
Stockholm
-5% to 0%
0% to 10%
Edinburgh
London
(local currency, except where noted) Source: Mark V. Lomanno, STR Global
www.hoteliermiddleeast.com
85 INVESTOR
HOTEL INVESTMENT Many other speakers at IHIF echoed Bootle’s comments and sentiments. The figures above, presented by Arthur de Haast of Jones Lang LaSalle Hotels, highlight just how much hotel investment has decreased in 2009 and reflects the reality of how great the impact of the financial crisis
GLOBAL HOTEL INVESTMENT VOLUME 140.0
100% 80%
120.0 60% 100.0
40% 20%
80.0
0% 60.0
-20%
% change YoY
Volume (US $billion)
Bootle’s presentation really hit home the reality of the situation we all face, not just in the hotel industry. The banking system is currently too busy licking its wounds and not interested in listening to external advice on how to transform itself from a sector based on greed, poor regulation and the pursuit of its own interests into something that would actually be able to cope with another financial disaster. “The assumption that the system will come up with something that is good for all of us is pie in the sky,” commented Bootle, adding: “a radical reform of banking can be expected with banks being pretty poor providers of lending for some time to come. Increasing the regulation of financial service will add to the cost of borrowing”. The lack of money means that corporate customers aren’t travelling as much, focusing on staying at home and safeguarding their jobs, whilst leisure travellers opt for shorter breaks, alternative holidays (such as camping) or not travelling at all in a bid to save money. This means that revenue per available room (RevPAR) has been badly hit and (despite some signs of occupancy level stabilisation), judging from the comments at IHIF, won’t reach previous highs for a few years. The figures opposite highlighting occupancy and RevPAR forecasts for 2010 were provided in a presentation by STR Global’s Mark Lomanno.
-40%
40.0
-60% 20.0 -80% 0.0
-100% 2000
2001
2002 Q1
2003 Q2
2004 Q3
2005
2006
2007
2008
2009
Q4 — % change YoY Source: Jones Lang LaSalle Hotels
has been. Investors and lenders are still holding tightly onto their assets, which means that, on the whole, prices remain somewhat unrealistic. According to Michael Fishbin from Ernst & Young: “Banks will rollover loans rather than call them in, or, to put it more succinctly, extend and pretend...a rolling loan gathers no loss”. Whilst deals are few and far between, there are signs of renewed activity and as the pressure to sell mounts, some decent stock is coming onto the market with CBRE Hotels listing Grosvenor House in London for a reported £550 million and Christies selling the Park Inn Hyde Park for £35 million. This is in no small part down to London outperforming the rest of Europe with RevPAR growth in 2009 and 2010. However, the investment market will continue to remain difficult until there is an economic upturn, hotel/
land owners find themselves in financial distress, or when the banks get to grips with their loan books and call in the administrators or undertake some form of financial restructuring.
BUILDING BRICS AND FUTURE GROWTH PLANS Whilst some developers and investors may try to avoid Europe and the Americas in the short-term, many people see the BRIC economies as the ones which offer the greatest potential for returns on investments. According to the DLA survey, respondents identified India (24%) and China (28%) as representing the best opportunities. Karen Friebe of DLA said: “Some chains have focused on cutting their debt and are now reasonably wellpositioned to grow through new market opportunities in BRIC countries — particularly China and India”. James Goulding of Hong Kong’s
LimeTree Consulting said his company was investing in beach front and coastal land in the Asia-Pacific, especially in places like Thailand, Vietnam, Cambodia, Australia and increasingly in Sri Lanka. Goulding said that with Asia home to more than two billion people, the Asian tourism industry will be less about westerners and more on intraregional tourists — most of them within three hours flying time of the tourist destinations across the region and having greater spending power. So where do we go? 2009 was tough and sent shockwaves across the industry, but it will be the actions that we take in 2010 that will really shape the hotel investment industry in the years to come. Now, more than ever, we need to take intelligent decisions, make intelligent investments, plan more intelligently for the future and, perhaps most important of all, think more intelligently. HME
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Hotelier Middle East • April 2010
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Business insights for attractions, fitness, sports and spa professionals
Golf businesses teed off by the financial crisis Two thirds of the region’s golf courses impacted by downturn according to KPMG report GOLF A report published by KPMG’s Golf Advisory Practice has found that two thirds of golf businesses in Europe, the Middle East and Africa (EMA) have been negatively affected by the financial crisis. KPMG’s Golf Advisory Practice head in EMA, Andrea Sartori, said: “For some golf courses, the narrowing of profitability may come sooner than expected and it would not be a surprise if we saw some courses going out of business in 2010.”
Get ready to say “O” New day beach opens in Jordan
RECREATION A new day beach concept in Jordan has been announced by Amber Group in response to demand from beach lovers living in Amman. Amber International Hotels and Resorts chief executive officer Ralph Nader said: “O Beach is a day beach brand that will soon be equated with unique and excep-
KPMG predicts that some golf courses will go out of business in 2010 following lower revenues last year.
tional experiences and that will be spread internationally, making it a ‘likely to be imitated’ concept and a destination worldwide for day beach luxury lovers”. The opening of the day beach, which is a 35-minute drive from Amman, will allow Amber Group to provide a full range of entertainment and nightlife, which it said it was previously unable to do due to room disturbance issues in hotels. O Beach Dead Sea general manager Nabil Barakat said: “We intend to have a signature service that will make the project more
Half of the golf businesses surveyed — more than 300 courses in 32 countries — said they had made redundancies, while golf courses forming part of a tourist resort were worst hit, with 78% saying they had experienced a negative impact on operations since the beginning of the financial crisis. The report also revealed that 35% of all golf courses surveyed were experiencing lower or stagnant revenues without being able to reduce costs, raising the prospect of unsustainable business operations based on current trends.
The regions worst affected by the crisis, measured in terms of decreases in revenue, were golf courses in Western Europe (-8%), Great Britain and Ireland (-6%) ,and South Africa (-5%). The average drop in revenue recorded at golf businesses in the EMA region was -4%. Sartori said: “Golf courses — particularly those linked to tourist resorts — will have to work very hard on their relationship marketing, pricing strategies and service levels to attract new customers or lure back the old ones”.
O Beach has capacity for 1200 people.
than a common beach destination”. The beach —which features restaurants, a children’s area and spa along with views of the Dead Sea — will have its soft opening on April
15 and officially launch on April 29. Plans to roll out further O Beach concepts in other locations across the Middle East and North Africa are currently under discussion.
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
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Hotelier Middle East • April 2010
Fishy business underway at Jumeirah Group SPA Wild Wadi Waterpark opened Dubai’s first Fish Spa utilising the famed services of the Garra Rufa fish on April 1. Fisho Fish Spa uses the toothless Garra Rufa fish — otherwise known as ‘Doctor Fish’ — in an alternative health and beauty treatment. The fish safely and gently exfoliate skin by cleaning pores and removing dead skin cells At Fisho, they will only target the feet, serving as a micro massage and improving blood circulation. The experience costs AED 55 (US
China Photos/Getty Images
Wild Wadi Waterpark offers Dubai’s first ‘Doctor Fish’ spa therapy to treat various skin conditions $15) for an adult and AED 40 ($11) for children, with discounts if purchased upon entrance to the park. Traditionally used in Turkey, Garra Rufa fish have been used around the world for years to help relieve the symptoms of psoriasis, eczema and other skin conditions. Koichi Kamoshida/Getty Images
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Doctor Fish at work at Hakone Hotel Kowakien in Japan.
A spa at a hot spring resort in Chongqing Municipality, China also offers traditional Garra Rufa fish therapy.
Precor and Thermarium go platinum at Global Spa Summit SUPPLIERS Fitness equipment supplier Precor and spa solutions firm Thermarium have both signed up to be platinum sponsors of the 2010 Global Spa Summit (GSS). Thermarium will sponsor the event through to 2012 and Precor will be a platinum sponsor until 2011.
GSS chairman Pete Ellis said: “Precor and Thermarium each set the global benchmark of excellence in their respective sectors, and are known around the world for outstanding, innovative design and for top-quality facilities and products. “Both companies truly understand the evolving wellness, fitness and spa industries, and their multi-year sponsorship of the Summit demonstrates
a deep commitment to these industries and their continued growth.” Founded in 1997, Austrian company Thermarium has completed more than 500 projects over the last 10 years. Services it offers include: architecture and design; spa and wellness equipment; engineering, project and spa management; strategic planning; and financial consulting. It also offers the Delpera by
Thermarium range of spa products for use in all Thermarium spa and wellness areas. Precor has international offices in 10 European and Asian countries, and serves more than 100 countries through authorised distributors. The fourth annual Summit will be held at the historic Çıragan Palace Kempinski Hotel in Istanbul from May 16-19.
TREATMENT TIME: JEBEL ALI GOLF RESORT & SPA The Alpha Beta Deluxe Facial Treatment by MD Skincare provided long-lasting visible results and a relaxing spa experience under the supervision of Jebel Ali resort’s highly skilled therapist The venue: Palm Tree Court & Spa at Jebel Ali Golf Resort & Spa, UAE The treatment: The 50-minute Alpha Beta Deluxe Facial Treatment promises to gently exfoliate the skin and is billed as “Hollywood’s secret to diminishing fine lines and wrinkles”. The products: MD Skincare is created by New York-based dermatologist Dr Dennis Gross and supplied by SRI in Dubai.
April 2010 • Hotelier Middle East
The experience: The treatment began with a through consultation in a dedicated area with my therapist Joan, who assessed my lifestyle, studied my skin and explained the treatment process. The treatment itself is a multi-step facial, with the Alpha Beta Face Peel Prof System used after cleansing. The Alpha Beta Peel combines an application of Beta Hydroxy Acid (Salicylic Acid) followed with an application of Alpha Hydroxy Acid (Glycolic Acid). It does sting upon application and the sensation
gradually grew, but by ranking the sensation from one to five I was able to let Joan know if I was experiencing any discomfort. After a minute or so, the peel is neutralised and the relaxing part of the treatment begins. This comprises a relaxing hand and arm massage and the application of a self-heating mask which plumps lines and wrinkles and leaves skin visibly radiant. An MD Sunscreen SPF 30 (contains powerful antioxidant: Green Tea, Vitamin A, C and E) was applied after treatment to maintain maximum effect and to fight sun damage.
The cost: AED 650 (US $177) The verdict: The spa facilities were very impressive, with a separate spa attendant to guide you through the changing and relaxation processes and an intimate consultation. The treatment itself was a luxury facial and the promised results were not only visible, but lasted for about a week after the treatment. Having experienced a peel, however, I would have appreciated some aftercare recommendations aside from the product retail suggestions I was given.
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Signature MENA & IHG MEA Collabora on Signature Worldwide, the leading provider of training and business solu ons to the hotels and service oriented industries, focuses on increasing revenue through raising the standards of both customer service and sa sfac on. Since its establishment in 1986, Signature has helped thousands of clients, including many of the worlds’s leading hotel chains, to turn high-level vision and strategy into every day prac ce. Signature has managed to achieve this by focusing on the increase of its clients’ revenues, while raising their standards of service quality. As of August 2009, the interna onally renowned, InterCon nental Hotels Group (IHG) MEA regional office, in collabora on with Signature MENA (the official licensee for Signature Worldwide for the MENA region), began a Mystery Call Project for their managed hotel estate across the Middle East and Africa regions (MEA). Through the performance of random mystery shop calls to IHG MEA employees, Signature tests how the Reserva ons and Sales/Group Departments handle customer inquiries, by establishing special scoring guidelines and score sheets based on IHG MEA’s standard opera ng procedures. Providing these accurate employee assessment and performance monitoring reports, the
program enhances and improves the quality of each departments employee interac on with guests. This results in higher levels of customer sa sfac on which subsequently leads to increased revenue through conversion of more calls in to actual business. Harris Makriyiannis, General Manager of Signature Holdings Cyprus stated: “We have created a bespoke “Mystery Call Project” program based on IHG’s exact standards. This will enable IHG to further enhance customer interac on and provide them with insight and tools to consistently deliver op mum service levels.” IHG is an interna onal hotel company whose core purpose is crea ng Great Hotels Guests Love ™. The global picture is 7 interna onal hotel brands, 130 millions stays per year in over 4,400 hotels (more than 645,000 rooms) in 100 countries and territories around the world. People lie at the heart of IHG’s business and great focus goes into ensuring that they are well trained and prepared to deliver outstanding customer service and experience towards delivering the groups core purpose. Signature’s philosophy is “that through a constant process of training, coaching and the use of performance measurement tools, a las ng change in your employees’ customer approach can be achieved”.
To find out more about how Signature can help align your front-line employees to your brand promise, contact us at: Tel: (Cyprus Office) + 357 25 81 42 10 Tel: (Dubai Office) + 971 4434 7275-6 E-mail: info@signatureholdingscy.com Website: www.signatureholdingscy.com
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Haven of life In an exclusive interview with Hotelier Middle East, Chiva Som’s general manager Paul Linder reveals why he has the best job in the industry and discloses plans for a second destination spa, as well as up to 10 city retreats from the world-famous wellness company INTERVIEW hiva Som general manager Paul Linder has an enviable enthusiasm for his job and an infectious passion for life in general. And after a few hours in his company, it’s not difficult to understand why. As the man in charge of Thailand’s famed destination spa — which after nine years has kept Linder in one place for the longest period of time in a career largely focused on around F&B — he has access to more than a few perks of the job. “Chiva Som is located on the Gulf of Siam, so the location is fantastic, you live on the beach, you have beautiful surroundings, you have amazing staff — the Thai staff are probably the most amazing people to work with,” says Linder. “It’s a very easy thing I think, to live in a health resort. I’ve never been so fit in my life, I do a lot of exercise, I walk the talk. I really live the philosophy of Chiva Som; I do a lot of holistic treatments, I have two to three massages a week, I eat very healthily and I am a guinea pig because I try all the treatments — poor me! “And at the end of the month they give me a salary — there’s worse things in life,” he smiles. The perfect job it may well be, but one senses managing a resort that strives to transform the life of every single guest who stays there, is not as easy as Linder says. It has won numerous awards over its 15-year history and under Linder’s man-
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April 2010 • Hotelier Middle East
agement, is the only destination spa worldwide to be ranked between numbers one and five for the past nine years. With average occupancy at 78%, the average stay being seven to 10 nights and 55% of guests being repeat visitors, what is the secret to Chiva Som’s success? “I think it is really the software of Chiva Som, the staff,” says Linder. “It’s the quality of service we are offering – it’s like living in a cocoon,
— it’s not just that you have money, money is not enough. Whoever plan to invests into Chiva Som has to understand the philosophy of Chiva Som,” he says. “Then I would say you need a minimum of US $50 million before you can even start and you really need to have the right location as well. You really need to be close to the beach or even to mountains to have that peace and tranquillity. Accessibil-
WE ARE DEFINITELY GOING TO BUILD ANOTHER RESORT UP IN PETCHABOON. THAT’S PROBABLY GOING TO BE THE SECOND CHIVA SOM you can be an egoist as it’s really all about your rejeuvenation.” And considering the high occupancy and Chiva Som’s reputation as the daddy of destination spas, why has there never been a second property in the offering? “I started with Chiva Som nine years ago and a lot of people came to me and said ‘can I buy you, we would love to bring you to Dubai, we would love to bring you to Qatar, we would love to bring you to London, or to Greece’,” says Linder. But not only would such a project require massive investment, Chiva Som’s owners — a group of private Thai investors — are “very particular” says Linder. “It’s for people who understand the philosophy of Chiva Som and that it is about body, mind and soul
ity is definitely another key point as well,” says Linder. And going back to the crux of Chiva Som’s success to date, Linder says that staffing a second property would be a big investment in itself. Reinforcing its emphasis on wellness and lifestyle, Chiva Som has 77 treatment rooms and offers 150 treatments, but has only 58 bedrooms. And while there could be a possibility of adding more treatment rooms, Linder says he wouldn’t add any more bedrooms. “We have 388 staff; we have 6.2 staff per bedroom so it’s very staff intensive,” says Linder. That said, he does offer a glimmer of hope, revealing exclusively to Hotelier Middle East that there are plans for a second Chiva Som, which have kicked into motion.
Photographed at Ritz-Carlton Dubai, Chiva Som general manager Paul Linder reflects on his role heading up the internationally-respected destination spa.
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WE’RE GOING TO HAVE 10 DAY SPAS AROUND THE WORLD Chiva Som’s Thai owners also have a property in Petchaboon in northern Thailand, which is currently being transformed into a destination spa. “We are definitely going to build another resort up in Petchaboon. At the moment we are building a place, it’s not finished; we’re planning the entire thing. That would open up in 2014. That’s probably going to be the second Chiva Som, it’s not going to be exactly the same; [it will focus on] anti ageing for the baby boomers, so probably be more of a villa style development,” says Linder. In addition, Chiva Som is also going to branch into the city retreat or day spa business. Linder explains: “The thing is today, people have busy schedules, they come to Chiva Som as a resort, but then ask ‘what do I do next?’. So they want it continuously in a way. So we want to go into day spas; we’re probably going to have 10 day spas around the world, probably the biggest one is going to be the first in Europe. “For us the major market is still the UK and we are probably thinking about going in that direction and doing something in London — that’s where the major market is.” Asked whether Chiva Som could work in the Middle East, Linder comments: “You would need some Thai personality, or Filipino or Balinese. You need kindness, sweetness. “To export Chiva Som is not going to be an easy task.” As for exporting Paul Linder, that seems a pretty tall order too, as he admits he gets offered a lot of jobs but none which have really “picked me”. Eventually though, he says he will move on, perhaps into design, fashion or decorating, three of Linder’s other great loves besides his passion for Chiva Som. “I’ll remain in the lifestyle industry and I’m not going to a cool country,” he laughs. “There has to be quality of life and tranquillity. Life is to short so better enjoy it now!” HME www.hoteliermiddleeast.com
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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
Jumeirah Group: Piers Schreiber Jumeirah has appointed Piers Schreiber as vice-president of corporate communications and public affairs to help expand the brand globally NEW RECRUIT After 20 years in international corporate communications, why have you now decided to enter the hotel sector? Many of the clients I have served over the years have looked for support in managing change. In some cases that has involved post-acquisition integration; in others decentralisation; and in others still a move to greater efficiency. The reason I decided to enter the hotel sector was quite simply the exciting offer from Jumeirah: to help a well established brand expand into a global proposition, supported by world-class corporate communications. Your position is a new role for Jumeirah — why has it been created? The role was created to support the global expansion of the Jumeirah
brand and manage relations with a more complex range of stakeholders. The company has stated its intention of having 60 hotels under management, in development or under agreement in 2012. Today we have 11 hotels under management and 18 under construction, with a further 12 hotels signed up. How will you approach this role? One of the greatest benefits of coming in-house is to be able to develop, manage and execute a long-term strategy. On the one hand this may contrast with the variety of agency work; on the other hand, there comes a moment when you want to engage 100% in taking a challenge, marshal all the available talent and resources, and drive through a programme. That is the kind of challenge I am relishing today in Jumeirah group.
What are your main responsibilities? The role consists of three key responsibilities: external communications and internal communications for the core business, and public affairs, primarily for the executive chairman’s office. Ultimately, my team is responsible for promoting and protecting the reputation of the Jumeirah Group brand to a wide range of audiences, from media and analysts to colleagues, the investment community, owners and developers. We are supported in this work by an international network of PR agencies. Do you think hotels in the region invest enough in corporate communications and public affairs? It is really too early for me to say whether or not hotels are investing enough in these disciplines. To my mind it is really about investing in the right people and ensuring that
New VP corporate communications: Piers Schreiber
they are consistently motivated and encouraged to take on new challenges. If the ultimate goal of corporate communications and public affairs is to promote and protect the reputation of the brand — and we all know how hard that is to build and how easy it can be to lose — then the value of the role really is priceless. But of course I would say that, wouldn’t I...
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April 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… ISLAND LIVING FOR ROGERS Desert Islands Resort and Spa by Anantara has appointed John Rogers its new general manager. Rogers, who boasts 25 years experience in the hospitality industry, has worked around the world in a variety of senior food and beverage positions: for Shangri-La in Hong Kong, Vancouver and Shanghai, Le Royal Meridien in Bahrain and for the Lanka Oberoi in Colombo. LANDMARK APPOINTMENT FOR SHAIKH Shafique Shaik has joined the Landmark Hotel Group as group director for sales and marketing. Shaikh has more than 20 years’ experience and was previously the general manager of Zagy Arabian Suites Dubai. As group director for sales and marketing, Shaikh will be responsible for supporting individual hotels and building the Landmark brand both in the region and internationally. PATEL TRAINS UP KEMPINSKI AJMAN Farzeen Patel has been appointed by Kempinski Hotel Ajman as its new training manager. Patel has five years experience in hospitality and has worked for several hotels across three different continents, finally joining the Kempinski Hotel Mall of the Emirates in 2008. SUNIL SALES THE LAKES The Bonnington Hotel in Jumeirah Lakes Towers has appointed Purnima Sunil its new director of sales. Sunil brings more than 15 years’ experience in the hospitality industry to her new role and previously worked for Novotel & Ibis World Trade Centre as the director of sales.
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Sunil said she was looking forward to the challenge of directing the sales efforts of Bonnington Jumeirah Lakes Towers, Dubai. TAKI ENJOYS A RENAISSANCE The Renaissance Hotel, Courtyard by Marriott and Marriott Executive Apartments Doha City Centre has welcomed Rania Taki as its talent acquisition manager. Taki previously worked as the human resources officer at the Renaissance Dubai Hotel. During the pre-opening phase of the hotel, Taki will focus on recruitment and talent acquisition.
AGUS MANAGES MÖVENPICK F&B Mövenpick Hotel Bahrain has appointed Francesco Agus as its food and beverage manager. Agus, an Italian national, has more than 11 years’ experience in hospitality. Prior to his appointment, Agus worked as a regional sales manager in Mövenpick Hotels & Resorts in the UK.
HERMAN KLOKS IN FOR PULLMAN Also at Pullman Dubai Mall of the Emirates, Accor Hospitality ME has appointed Herman Klok as operations manager. Klok brings more than 20 years’ hospitality experience to the role and previously worked as hotel manager for Sofitel Chicago Water Tower.
CHAUDET APPOINTED NEW PULLMAN GM Accor Hospitality ME has welcomed Laurent Chaudet as the hotel’s general manager for Pullman Dubai Mall of the Emirates.
GUSCHING GOES ORGANIC Didier Gusching has joined Kempinski Hotel Ajman as executive chef. Gusching will be focused on introducing locally grown, organic food to the Beach Comber outlet.
ROSS GETS FASHIONABLE AT W W Hotels Worldwide has announced an industry first by appointing Amanda Ross as the brand’s global fashion director. Ross will provide fashion advice to the brand, which has recently launched a fashion collection exclusive to W. Prior to her appointment, Ross combined editorial work with style consulting. HELMETAG SERVES UP THE ROYAL TREATMENT Winfried Helmetag has joined Kempinski Hotel Mall of the Emirates as its executive chef. Helmetag joins the culinary team after five years at Kempinski Ajman’s nine dining destinations. Prior to his appointment with Kempinski, Helmetag served as executive chef at The Royal Hashemite Court, Jordan.
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DIARY
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the Time Out Dubai Restaurant to s my am Gr or en osv Gr the om Fr deserved gongs hd ing their much im cla sy bu en be ve ha s ier tel ho s, Award
Grosvenor Grammys reward staff for “outstanding contributions”
team for Best cream of Grosvenor House Dubai’s 700 associates. Winners included the Kitchen The fourth annual ‘Grosvenor Grammy Awards’, held on March 23, recognised the on Award. Appreciati Manager’s General the with away walked who His, Khalid tive representa Financials, Rhodes Mezzanine for the Quality and Training Award, and guest services
Khaleed His accepts his award from complex general manager of Grosvenor House Dubai and Le Royal Méridien Beach Resort and Spa Pam Wilby.
Hotels win big at 2010 Time Out Restaurant Awards
Graham Cook celebrated the Best Financials Award with the Kitchen team.
Jim Davidson presented Rhodes Mezzanine restaurant with the Quality + Training Award.
Media Rotana Terrace Launch
Roll with it at Mövenpick
BE BRUNST CH
Restaurant manager Othmane Lamine and chef de cuisine Franck Detrait picked up the Best Brunch award for Traiteur at Park Hyatt Dubai.
BEST BAR FOOD
April 2010 • Hotelier Middle East
Department heads at Media Rotana Dubai, including the directors of HR, materials, IT, finance, housekeeping, front office, F&B, laundry, hygiene, engineering and the executive chef, celebrated the opening of The Terrace bar by striking a pose.
LIAN T ITA NT BES TAURA RES Oliver Robinson took the gong for Best Bar Food on behalf of Trader Vics at Madinat Jumeirah.
Tolga Lacin, Monica Nettger and Stefano Viola collected the award for Best Italian Restaurant for Bussola at The Westin Dubai.
Most people keep their hobbies outside of work, but Mövenpick Resort Tala Bay Aqaba’s waiter Charles has found a nifty use for his roller skating talents at the poolside.
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 8475
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LETTER OF THE LAW ubai’s chefs and food and beverage directors had a h ride id last l h ffoll rough month, lowing the announcement from a top official at Dubai Municipality that there was to be a total ban on the use of alcohol in food on March 22. This followed a letter received by hotels on March 21 alerting them to the ban, which was to be the reinforcement of an existing law issued in 2003. According to Ahmed Abdul Rahman Al Ali, head of food inspection at the Food Control Department of Dubai Municipality, fines would range from AED 2000 to AED 20,000, rising to as much as AED 500,000 for serious offenders. With restaurateurs warned they had just a month to adhere to the ban, tongues started wagging as the industry prepared itself for a major shake-up, which could mean menus being totally revised. How would Verre by Gordon Ramsay offer its terrine of fois gras marinated in Sauternes or its Madeira veloute served with pith-
D
While this chocolate cake looks tempting, it’s not as appealing as a handcrafted Champagne gateaux is it?
ivier of quail, wondered Verre general manager Luca Gagliardi. And what about the Champagne gateaux planned for a new menu at Rhodes Mezzanine, which would need to be completely rethought, according to head chef Paul Lupton. Of course, the chefs were fairly restrained in their reactions to the news, respecting the situation and instead hoping for the total ban to
a they could prove be lifted, as long as re they followed regulations for the separate preparation of food with alcohol and food without. But we imagine there must have been more than hot pans in the kitchen as tempers flared over the potential impact of the ban. Lupton admitted it would be “quite frustrating for chefs to have half of your repertoire available”. Imagine you had created a stonking new menu that needed to change in a matter of weeks but still be top notch? After all, you would expect more than plain gateaux at Dubai’s Best Restaurant wouldn’t you? But, before Rhodes Mezzanine went back to good old chocolate cake, on March 23, another leading Dubai official said there was no ban on the use of alcohol in food and that it was “a misunderstanding”. Director of the food control department Khalid Mohammed Sharfi Al Awadhi said: “Alcohol should be segregated and it should be clear on the menu the food has been prepared with alcohol”.
According to the chefs Hotelier spoke with, this was what they had been practising and “everything was back to normal”. However, with the Municipality explaining that the initial circular was sent out because some establishments had not been following the code of practice, we just hope that those hotels flouting the rules pick up their game and adhere to the letter of the law. Otherwise the worry is that next time it won’t be confusion, but a complete ban, and we really want to try that Champagne gateaux. HME
Next issue • Show preview: The Hotel Show • Show preview: Arabian Travel Market • City update: Dubai • Industry best practice: Innovation • Roundtable: Front office managers • Product analysis: Ambience • Product guide: Kitchen equipment • Technology report: Meetings tools
Hotelier competition This month, you have a chance to win a designer feature wall for your office, thanks to Swedish brand Eco BoråsTapeter. Eco BoråsTapeter offers “avant-garde designs” that appeal to those with an eye for detail. As Sweden’s oldest wall coverings supplier, the company offers classic, contemporary wallpapers for inspiring décors. The bold wallpaper designs are a sure-fire way to make your office stand out from the rest. Available in the UAE as part of the Eco range are Line, Velvet, Feeling, Design 2 and Design 3, plus the Metallic collection. To enter, all you need to do is answer the following question and tell us in no more than 100 words why you deserve to win the feature wall: What country does Eco BoråsTapeter come from? Send your 100 words, answers and contact details via email to louise.oakley@itp. com with the word COMPETITION in the subject line. Last month’s winners, each bagging a pair of tickets to the Lost Paradise of Dilmun Waterpark in Bahrain, were Khalidiya Palace Rayhaan director of laundry Mahammad Salim and Marriott Hotels sales executive travel industry Husain Isa.
April 2010 • Hotelier Middle East
Win an Eco Borås Tapeter feature wall (terms and conditions apply).
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20th and 21st April 2010 at the Windsor Ballroom, Grosvenor House, Dubai Marina, Dubai. Do join us for cocktails and dinner with live entertainment and more..... from 7 pm until midnight and view our amazing new range of products
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