The definitive guide to successful hotel management g g
July 2010
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The definitive guide to successful hotel management
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DLE EAST HOTELIER MIDVE 10 R SALARY SU Y 20
July 2010
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EDITION TOP MARRIOTT EXECUTIVES DISCUSS BRANDS
BLACK IS BACK BATHROOM SUPPLIERS SET THE TRENDS CapeX Factor STUDENTS GO HEAD TO HEAD AT THE EMIRATES ACADEMY
IN THE
DRIVING SEAT
Hotel GMs reveal how they steer their staff to success
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July 2010 Volume 9, Issue 7 05 NEWS
30 AND THE SURVEY SAYS...
Moroccan vision; Resta expansion; Emirates wins WTTC award; The Great GM Debate launches.
Findings from the Hotelier Middle East Salary Survey 2010.
54 BLACK IS BACK: BATHROOM PRODUCT GUIDE Ten bathroom companies show off their latest creations.
38 THE CAPEX FACTOR 12 COLUMNIST Guy Wilkinson reports on the Muriya Tourism Company’s sustainable tourism development.
14 COMMENT Turab Saleem advocates restaurant revenue management.
Students from The Emirates Academy of Hospitality Management take on the ultimate F&B challenge.
Jones Lang LaSalle has brought the hotel industry in Makkah and Madinah to the forefront with its Holy Cities report. Hotelier investigates.
Abu Dhabi National Hotels chief executive discusses the company’s growth plans, its major projects and plans for the future of Abu Dhabi.
61 NEW PRODUCTS The latest launches this month.
63 TECH TALK 43 COUNTRY FOCUS: SAUDI ARABIA
74 INTERVIEW: RICHARD RILEY
Seminar identifies IPTV as future technology trend; GCC to invest US $290 million in hotel technology.
77 LEISURE MANAGER NEWS Lifeguards reach international standards in Bahrain; Yas Island waterpark underway; Dead Sea spa benchmarks; EMEA golf survey.
64 TECH EXPERT
80 FITTED OUT: YAS LINKS GOLF CLUB
IT guru Roger MacFarlaine weighs up the benefits of internal versus external ‘clouds’.
The new golf club shows off the fixtures, fittings and feel of its Andalucian-inspired club house.
66 TECH UPDATE
84 MOVERS AND SHAKERS
The five new developments in technology that you can’t afford to miss
New recruit and appointments from inside the industry.
Hicham Lalmi of Airstar Middle East talks business.
71 INVESTOR NEWS
86 HOTELIERS AFTER HOURS
Transaction trends and a new event.
21 COVER STORY: GMS IN THE DRIVING SEAT
The best of the month’s parties, events and awards.
51 TABLEWARE
72 INVESTOR COMMENT
General managers explain what makes a good leader and what it takes to be in control.
The experts explain the trends and must-have items for all your tabletop needs.
Bench Events chairman Jonathan Worsley reports from the Global Travel and Tourism Summit.
16 INTERVIEW: MICHEL NOBLET HMH chief executive officer discusses company development during the downturn.
18 TALKING HEADS Donald Semmler and Mitzi Gaskins of Marriott International discuss new brands, luxury and loyalty.
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47 SUPPLIER NEWS Hip Hotels launches music service; pop-up hotel wins prize; Pacific Direct adds new partners.
49 SUPPLIER PROFILE
Insights from the news desk and the monthly Hotelier competition.
54 74
www.hoteliermiddleeast.com
88 HOTELIER CONFIDENTIAL
84 Hotelier Middle East • July 2010
ONLINE
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10 DIRTIEST HOTELS IN AMERICA TripA TripAdvisor.com has revealed its list of the 10 Dirtiest Hotels in America. TTh The company gathered the information by sending people out to review the pproperties and linked it with comments from customers.
1 1. HERITAGE MARINA HOTEL, S SAN FRANCISCO, CALIFORNIA Heritage ““I beg you from the depths of Marina Hotel. m my humble soul, stay as far aaway from this place as you can. Don’t even drive by it, for fear that you’ll catch something penicillin won’t kill.” 2. DAYS INN EUREKA/SIX FLAGS, EUREKA, MISSOURI “The bed had dog faeces under it, the toilet had not even been flushed let alone cleaned, and the room was filthy. DO NOT STAY HERE!!” Fontainebleau Miami Beach. 3. TROPICANA RESORT HOTEL, VIRGINIA BEACH, VIRGINIA “My husband and I stayed at this hotel and we now refer to it as ‘The cat pee hotel’. It smelled so badly of cat urine my husband had to take the mattress off the couch and lay it on the floor next to the glass slider with his head out to sleep. We were moved the next day to a different room — no better. 4. SUPER 8 VIRGINIA BEACH/AT THE OCEAN, VIRGINIA BEACH, VIRGINIA “This Super 8 was dirty, the halls smelt real bad. Nothing has been upgraded in what looked like years! It was all very run down! Even if it was free, I would never stay there again or ever recommend it to anyone!” 5. QUALITY INN, STROUDSBURG, PENNSYLVANIA “Dirty, ‘buggy’, smelly, rude, damp, dank, depressing...you list a negative, and this hotel delivers. Avoid at any cost. How they’ve not been closed byy the board of health is just beyond me.”
New York Inn.
6. NEW YORK INN, NEW YORK, “The place is filthy, the shower had mould and the
ceiling was falling down; this place should be closed down.” 7. PARISIAN HOTEL & SUITES, MIAMI BEACH, FLORIDA “I could not even stay there! Checked in, went to the room after riding in the smallest, nastiest elevator ever, looked at the room and bathroom and ran out! All you can hear is banging on the walls and people screaming at each other!” 8. CAPISTRANO SEASIDE INN, CAPISTRANO BEACH, Capistrano CALIFORNIA Seaside Inn. “Do not lift the mattress unless you like seeing bedbugs.” 9. DESERT LODGE, PALM SPRINGS, CALIFORNIA “My dog could have cleaned the room better. He would have given better service as well.”
Desert Lodge.
10. CONTINENTAL OCEANFRONT HOTEL SOUTH BEACH, MIAMI BEACH, FLORIDA When we first arrived at the hotel we looked at the sheets and they had hair, dirt, and big yellow stains on them. I called the front desk to report it and get clean sheets. They told me that they were ‘clean, just stained’.
Most-read stories on hoteliermiddleeast.com 1. Top Dubai venues to watch the World Cup 2. PHOTOS: Habanos the Cuban cigar night 3. Family says UK hotelier was killed in Dubai 4. World Cup teams robbed in their hotels 5. Boy survives 80ft hotel plunge thanks to palm 6. Supermodel stays in rubbish hotel in Rome 7. Top 10 dirtiest hotels in America 8. Hilton to launch own brand F&B concepts 9. Plans for huge water park on Yas Island 10. Photo tour of Hakkasan restaurant
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Hotelier Middle East Consumer future trends in Dubai Barasti World Cup Dubai Staff Accommodation Awards
For a list of upcoming properties, see www.hoteliermiddleeast.com.To update your company’s list, contact louise.oakley@itp.com July 2010 • Hotelier Middle East
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THE REGION • Signings • Openings • Best practices • Strategy • Branding • Legislation • Events
Raft of brands enter Middle East hotel market for the first time Sol Meliá, Frasers Hospitality and Elisabetta Gucci are among new entrants to the region STORY OF THE MONTH A number of hotel brands from Spain to Singapore have recently announced plans to launch operations in the Middle East. Spanish hotel group Sol Meliá is planning to enter the market with the opening of the 167-room, fivestar Meliá Dubai in Bur Dubai at the start of 2011. According to Sol Meliá CEO Gabriel Escarrer, the Middle East is “an emerging destination which confirms the company growth aspirations in high potential markets”. The announcement of the addition of the Meliá Dubai reflects the growth and geographical diversification strategy of the company, which involves new openings in destinations such as China, Colombia, Cabo Verde and Crete, and the renovation, improvement and rejuvenation of the hotel portfolio. Already present in the Middle East is Singapore-based Frasers Hospitality, a specialist serviced residence operator focused on the extended-stay market.
Meliá Sharm in Egypt.The company is planning to open the five-star Dubai Meliá hotel at the start of 2011.
Frasers Hospitality COO Europe and Middle East Guus Bakker said: “After the first two openings of Fraser Suites Bahrain and Fraser Suites Dubai, and the imminent opening of Fraser Suites Doha, the group is in advanced stages of negotiations for various properties in the region, in particular in the KSA and Oman. The group’s target is to have between 12 and 15 properties in the region by 2014”. David Brown, GM of Fraser Suites Dubai, currently in soft opening, added: “We see a wonder-
ful opportunity to attract guests who covet the services of a hotel yet appreciate the space and convenience of a private residence”. Also focused on the Middle East is EG Hotels by Elisabetta Gucci, which is planning 40 hotels over the next 15 years in the region. The company is headed by Elisabetta Gucci, who is the daughter of the late fashion mogul Paolo Gucci and the great-granddaughter of the founder of the famous fashion house, although her website clearly states that she “has no involvement
with fashion herself or the main designer brand”. The first EG Hotel by Elisabetta Gucci, planned for Dubai Media City, was due to open at the end of 2009 but has been delayed by a year, said EG Hotels by Elisabetta Gucci partner Lorens Ziller. The property will comprise 87 suites, with exclusive interiors, furniture and art designed by Elisabetta Gucci in partnership with Italy’s Formitalia Luxury Group. Ziller said he believed there was great potential for the boutique hotel brand, which “applys interior living concepts to hospitality”. As Hotelier went to press, Gucci Group filed a lawsuit against Elisabetta Gucci and her partners “seeking injunctive relief in order to protect its rights”. (Bloomberg). “Gucci wants to make clear that it has no relationship to Elisabetta Gucci Hotels and that it is not involved in any project whatsoever with Elisabetta Gucci Hotels,” the company said in an e-mail to Bloomberg. “If necessary, Gucci will take any needful step to protect its rights.”
Hotelier launches inaugural industry conference: The Great GM Debate Hotelier Middle East has announced that it will hold its inaugural conference on Wednesday 29 September, 2010. Entitled The Great GM Debate, the event is the first one of its kind designed specifically for hotel general managers and senior executives. The event will feature keynote speeches given by regional governwww.hoteliermiddleeast.com
ment officials and will comprise a number of hands-on workshops which will be led by hospitality industry experts, who will present back key findings to the assembled general managers. The prestigious speaker line-up for the Great GM Debate includes Abu Dhabi Tourism Authority director of tourism standards
Nasser Saif Mubarak Al Reyami, Dubai Department of Tourism and Commence Marketing director of hotel classifications Majid Sager Al Marri, Rotana SVP UAE Operations Omer Kaddouri, Atlantis The Palm vice president of finance Wendy Potter and Jumeirah Centre for Emiratisation director of Emiratisation projects John Mowatt.
In total, 150 general managers are expected to attend the event. Details: www.hoteliermiddleeast. com/conferences To find out about attending please contact Michael McGill at michael. mcgill@itp.com or +971 4 210 8616. For sponsorship enquiries, please contact Diarmuid O’Malley on dom@itp.com or +971 4 210 8568. Hotelier Middle East • July 2010
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ANNOUNCEMENTS Arabic website for The Address The Address Hotels and Resorts, owned and managed by Emaar Hospitality Group, has expanded its digital portfolio with an Arabic website at www.theaddress.com/ar. Emaar Hospitality Group and Emaar Hotels and Resorts CEO Marc Dardenne said: “This is the digital era and an increasing number of Arabic speakers prefer to make their reservations on-line. “As a path-breaking hotel brand from the Arab world, it is only imperative that we explore the digital sphere through a site that makes online information exchange with our Arabic clientele easier.” The site provides details of the hotels within The Address portfolio in both English and Arabic, to cater for the increasing number of bookings from within the Middle East. MGM Mirage rebrands MGM Mirage will be rebranded MGM Resorts International following shareholder approval in June. “We believe this evolution better represents the growing global presence our company has today and positions us to move forward under a unified brand strategy,” said Jim Murren, chairman and CEO of MGM Resorts International. The company has also announced the relaunch of its current Players Club under the new umbrella brand — M life. The M life Players Club is a unifying loyalty programme designed to increase customer intimacy and experience. MEA pipeline totals 468 hotels The Middle East/Africa hotel development pipeline comprises 468 hotels totalling 127,938 rooms, according to the May 2010 STR Global Construction Pipeline Report released in June. Among the countries in the region, the UAE ended the month with the most rooms in the total active pipeline with 55,629 rooms. The UAE also reported the most rooms in the In Construction phase with 29,323 rooms, whilst neighbouring Saudi Arabia reported 15,770 rooms in the total active pipeline.
July 2010 • Hotelier Middle East
Resta Hotels signs contract in Yemen New contract is part of target to operate 15 hotels and resorts by 2013 CONTRACT Resta Hotels & Resorts has signed a contract to manage the 239-room Al Qasr Hotel & Resort in the city of Aden, Yemen. Resta chairman of the board Mohamed Abdul Jawad said: “We are proud to manage this luxurious hotel. This contract is in line with the company’s growth strategy that is aimed at operating15 hotels and resorts by 2013”. Resta was launched in June 2008 with the aim of being a pioneer among “the very few hotel management companies which were founded in the Middle East and North Africa by Arabian investments with international experience”, said Jawad. “Our strategy is based on operating a hotel in every major city and global tourism destination in the MENA region,” said Jawad. “Furthermore, building up Resta’s portfolio by managing diversified categories of hotels and resorts to meet international market demands,” he added.
Al Qasr Hotel & Resort in the city of Aden,Yemen will be managed by expanding firm Resta Hotels & Resorts.
Abdel Karim El Dhabee, chairman of Arabyl Holding and ASAS Real Estate Companies, which owns the hotel, said he believed that the management contract would introduce opportunities for further cooperation between both companies, as well as investment in the field of tourism. He said: “Al Qasr Hotel and Resort is distinguished by its architectural style, which is inspired by the cultural heritage in Aden. The hotel and resort serve as the first project of its kind in Yemen. It is also a highly prestigious and deluxe hotel, one which has very large
green spaces and wonderful panoramic views”. “ASAS Co. strives to develop and establish diverse projects to consolidate its investment in Yemen, especially in light of favorable circumstances and current laws that facilitate investment in the country,” added El Dhabee. Al Qasr Hotel is scheduled for opening in November this year to host the 20th Gulf Cup Football Championship 2010. It will be Resta Hotels & Resorts seventh managed hotel and its second outside Egypt, after Le Patio Beirut, which is due to open in July.
Judges gear up for Hotelier Middle East Awards 2010 Expert panel to decide fate of industry heroes AWARDS This year’s panel of judges for the Hotelier Middle East Awards has been selected ahead of the nomination deadline on August 15, 2010. The group of five industry experts comprises: The Emirates Academy of Hospitality Management managing director Ron Hilvert, p consulCharterhouse Partnership
SAVE E
THE DAT
EAST AWARDS HOTELIER MIDDLE TOBER 2010, 7PM THURSDAY 14 OC , DUBAI MADINAT JUMEIRAH
tant — Hospitality Larisa Marland, Viability director Guy Wilkinson, HotelierMiddleEast.com editor Jamie Knights and Hotelier Middle East editor Louise Oakley. Two further judges from within the industry will be revealed next month. Larisa Marland said: “I will be looking for stand-out nominations, people with exciting stories and exceptional achievements. There were some wonderful winners last year, so the competition is tough.” HotelierMiddleEast.com editor Jamie Knights said he was thrilled to be joining the judging panel for the first time this year. “The calibre of entrants to the Hotelier Middle East Awards is always top-class and this year will
be no exception. The launch of the Hotel Team of the Year Award has added a new element for 2010 and will no doubt be hotly contended. “I think it will be those nominees that have proved they can perform their role at the highest level, while also contributing in other areas to the success of their hotel, that will be the most interesting,” said Knights. Nominations are open now and will close on August 15. To see a list of all the categories and to nominate your colleagues, visit hoteliermiddleeast.com/awards. www.hoteliermiddleeast.com
7 NEWS
Atlas Hospitality focused on franchising The target is to open 20 outlets in the next three years, reveals MD F&B Atlas Hospitality has announced that it is planning to open 20 restaurant outlets in the next 36 months, some of which will be owned while others will be opened through a franchise model. The company already owns Italian restaurant Certo, which launched at the Atlas Hospitalityowned Radisson Blu Dubai Media City and has since been rolled out to Souk Qaryat Al Beri in Abu Dhabi. Atlas Hospitality managing director Siegfried Nierhaus said: “First we would like to develop our existing brand Certo. We want to roll it out in the GCC countries and certainly in some major cities Certo has its place.” The company also owns Tangiers at Dubai Festival City, but Nierhaus said that while an Italian brand “can work almost anywhere”, the franchising of Tangiers would really “depend on the success” of the original venue.
Atlas Hospitality managing director Siegfried Nierhaus: Will be ‘as authentic as possible’ with new offerings.
“If you look at Dubai you have huge potential here with 35,000 Moroccans here to capture, but I cannot generalise and say we will roll out,” said Nierhaus. He said he was also looking at developing an Indian concept, having had some conversations with restaurants in India and the US. Other options could range from a French bakery to a Lebanese restaurant, he said.
Morocco sets vision for 2020 DEVELOPMENTS The Moroccan Agency for Tourism Development is focused on developing its Vision 2020, which will be announced at the end of this year. According to Moroccan Agency for Tourism Development CEO Omar Bennani, the ambitious plan will be “focused on sustainable development and keeping Morocco’s positioning as an upscale destination”. “We don’t want to be mass market and just bring people with cheap prices — we want to compete also on quality,” said Bennani. Brands set to launch in Morocco include Baglioni, Mandarin Oriental, Four Seasons, Raffles and Six Senses, while Sofitel already operates six properties in the country. Tourism development has been a focus in Morocco for the past 10 www.hoteliermiddleeast.com
Morocco Agency for Tourism Development CEO Omar Bennani: 2010 visitor forecast is 9.4 million.
years, said Bennani, with Vision 2010 targeting 10 million visitors from a base of four million in 2000. “Last year we had 8.3 million visitors and since the beginning of this year we have seen that it is growing by 12%. At the end of this year we forecast to have 9.4 million visitors,” said Bennani.
“We want to focus on five brands we could develop. Whatever we do I am trying to be as authentic as possible,” said Nierhaus. Atlas Hospitality is also developing the 377-room Regent Emirates Pearl in Abu Dhabi, a joint venture with Abu Dhabi’s Tourism Development & Investment Company. The company aimed “to sign three new hotels” within a three year period, Nierhaus added.
Hilton loses bid to dismiss lawsuit Hilton Worldwide has failed in its bid to dismiss a lawsuit by rival hotel operator Starwood Hotels & Resorts Worldwide that accused it and two former Starwood executives of stealing trade secrets, according to a report by Reuters. US district judge Stephen Robinson ruled on June 16 that Starwood had “presented sufficient evidence” to allow the case to go forward. Starwood claimed the executives, Ross Klein and Amar Lalvani, stole confidential documents. “Today’s decision by the Court is a procedural ruling that has no impact on the ultimate outcome of the case or what the plaintiff must prove if the case goes to trial,” Hilton said in a statement. Starwood sued Hilton in 2009, accusing Klein and Lalvani of working on a new Hilton brand, Denizen, using its confidential information. Hotelier Middle East • July 2010
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ANNOUNCEMENTS
Emirates bags global conservation award
BACS Hospitality practice launches in the UAE British Arabian Chartered Surveyors (BACS) has launched a new hospitality consultancy in partnership with hospitality and leisure consultant Charles Bott. The strategic association with BACS, an independent real estate consultancy practice based in the UAE and regulated by the Royal Institute of Chartered Surveyors (RICS), is designed to offer hotel owners, investors and developers support to help them “reach critical milestones and maximise their asset value”, said Bott. Services which will be offered include bankable feasibility studies, operator search and selection, asset management, RICS hotel valuations and procurement.
World Travel & Tourism Council recognises firm’s pioneering work
New name for Park Inn The Rezidor Hotel Group has renamed its mid-market Park Inn brand. Now known as Park Inn by Radisson, the name change is in line with Rezidor’s decision to focus on its two core brands. Rezidor president and CEO Kurt Ritter said: “The link with Radisson and its great strength and reputation will allow Park Inn to grow even faster and to be even more efficient. We are also confident that this brand endorsement will further increase the brand awareness for both Park Inn and Radisson”. The re-naming process be a gradual one which will start in the UK and evolve across Europe, the Middle East and Africa, Ritter said. Cristal expands to China Cristal Hotels and Resorts has announced plans to open eight new hotels in China as part of an Asian expansion programme which will explore market opportunities in Singapore, Malaysia, Indonesia, Hong Kong, and mainland China. The midscale business hotel brand has already confirmed plans to expand in Qatar and in the Kingdom of Saudi Arabia, particularly into Riyadh, Jeddah, Khobar and Mecca, following the opening of its first hotel in Abu Dhabi last year.
July 2010 • Hotelier Middle East
AWARDS Dubai-based Emirates Hotels & Resorts (EH&R) has received the Conservation Award at the 2010 World Travel and Tourism Council’s (WTTC) Global Summit in recognition of its dedication to environmentally sustainable development. President and CEO of WTTC Jean-Claude Baumgarten said: “The Conservation Award is given to hotels and tourism organisations which have demonstrated that their tourism developments have directly contributed to conservation of natural habitats and wildlife protection. EH&R is a pioneer in this space”. The Tourism for Tomorrow Awards are the WTTC’s highestprofile global accolade, and EH&R was selected from three finalists out of 800-plus entries at the summit in Beijing on May 27, according to Emirates Hotels & Resorts SVP Tony Williams. The firm’s philosophy centres on two critical global environmental issues — bio-diversity extinction rates and carbon emissions reduction — and the award recognises the decade of achievements at Al Maha Desert Resort & Spa in Dubai and the developments at Wolgan Valley Resort & Spa in Australia, which after opening last year became the first hotel in the world to be certified carbon neutral. Williams said that a third of his time spent on establishing Wolgan
Al Maha Desert Resort & Spa: Recognised by WTTC for a decade of dedication to protecting the environment.
Wolgan Valley Resort & Spa: Williams worked with the World Heritage Committee on the carbon neutral hotel.
spent working with partners including the World Heritage Committee, National Park Authorities and endangered species authorities. “It is destination stuff, it’s working on a much bigger scale, and a more important scale quite frankly,” said Williams. Commenting on some other much publicised environmental initiatives underway in the Middle East, Williams added: “I don’t run a
zoo, we run natural environmental areas, we run ecosystems. We have free roaming breeding programmes at Al Maha, we do not deliberately breed animals. “I am pleased that guys in this region pay attention now to their natural environment…and realise that they have species that need protecting — the only way you can protect them is by maintaining a desert,” said Williams.
Port Ghalib seeks 23 hotels Kuwait’s M.A. Kharafi Group has announced that its US $2 billion Port Ghalib project in Egypt will have 23 internationally branded hotels when complete. Currently, the development comprises four operating hotels; The Palace by InterContinental, The Oasis and The Sands by Crowne Plaza, and Marina Lodge. Kharafi Group — Egypt VP Eng. Ibrahim Saleh said that the expansion was based upon the steady
InterContinental Palace Hotel at Port Ghalib: There will be 23 hotels when the development is complete.
growth of tourism in Egypt. “We are expecting a large turnout from across the globe over the next two years,” said Saleh.
Tourism accounts for around 6.6% of Egypt’s GDP, with the majority of tourists from Europe and the Middle East. www.hoteliermiddleeast.com
9 NEWS
NEW
The Address focuses on expansion plans Wishlist includes The Palm resort says CEO EXPANSION
Avantgarde Steam Ironing Centre
Dardenne: a beach resort in Dubai would add value.
However, The Address has not ruled out further properties in Dubai, added Dardenne. “In Dubai, ideally it would be great for us to have a resort because we don’t have a pure beach resort, so if there would be an opportunity to manage a hotel on The Palm for example we would be very happy to do that, especially because we have five hotels in the city, having a beach resort would add value to the hotels in the city as well.” Expansion in the GCC was also important, he said, because the brand has established itself in those markets very quickly, with the Downtown properties especially being favourites of GCC travellers. Between now and the opening of the new hotels, Dardenne said he was looking at conversion opportunities, which would require a “contemporary hotel in a great location”.
DTCM approves rental system LICENSING The Dubai Department of Tourism and Commerce Marketing (DTCM) has recently developed a new rental system for self catering hotel units, which will be put into service later this year. The new system involves the leasing of furnished residential units in specific areas and locations according to certain conditions and criteria which will be issued by DTCM. These residential units will be manwww.hoteliermiddleeast.com
Elegance Dry Ironing Centre
aged by certified companies that will operate in compliance with specific terms and conditions. The new system offers several advantages which include providing a new type of residential unit that can add value to the local hotel sector, in accordance with specific standards, guidelines, and safety and security procedures. This system will play a vital role in organising the framework for residential units in the rental market, to ensure regulated and legal operations, reported the DTCM.
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The Address Hotels & Resorts has its “pipeline for global expansion clearly in its sights”, according to CEO Marc Dardenne. With five projects now operational in Dubai since the launch of the brand in 2008, Dardenne said the focus was now on expanding the brand in the Middle East, Europe and Asia. “The first two hotels that will open in 2012 will be the France project in the Languedoc and Marrakech,” he said. “We are also just about to sign a location in Budapest and are finalising another deal in Istanbul. “We have about another 10 potential opportunities in the Middle East region and in north Africa,” added Dardenne. “Our next move is to look at more European based hotels and I’m also going to see opportunities in Asia.” The plan has always been to take the brand global, he said, using both strategic and opportunistic approaches to do it. “We’re looking at potentially London as a strategic location, where we would probably partner up with the developer and invest equity, otherwise it’s fairly opportunistic in terms of our development, since we want to have an asset light strategy of management contracts,” explained Dardenne.
Hotelier Middle East • July 2010
11
A class in concept creation
COMMENT
Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: +971 (0)4 210 8000 Fax: +971 (0)4 210 8080 Offices in Dubai & London ITP Business Publishing CEO Walid Akawi Managing Director Neil Davies Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham Editorial Editor Louise Oakley Tel:+ 971 4 210 8475 email: louise.oakley@itp.com Staff Writer Harriet Sinclair Tel:+ 971 4 210 8394 email: harriet.sinclair@itp.com Advertising Publishing Director Diarmuid O’Malley Tel: +971 4 210 8568 email: dom@itp.com Commercial Director Sarah Worth Tel: +971 4 210 8595 email: sarah.worth@itp.com European Sales Manager Stephané de Rémusat Tel:+33 53 427 0130 email: sremusat@itp.com Studio Group Art Editor Dan Prescott Art Editor Nadia Puma Photography Director of Photography Sevag Davidian Senior Photographers Efraim Evidor, Jovana Obradovic Staff Photographers Isidora Bojovic, George Dipin, Murrindie Frew, Lyubov Galushko, Shruti Jagdesh, Mosh Lafuente, Ruel Pableo, Rajesh Raghav Production & Distribution Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant Production Coordinator Nelly Pereira Managing Picture Editor Patrick Littlejohn Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation and Database Gaurav Gulati Marketing Head of Marketing Daniel Fewtrell Marketing Manager Annie Chinoy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K M Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin
according to Stefan Breg, founder and chief worrier at Tribe, creating the concept for a successful restaurant is a science. It is not a natural-born gift or a mystical art, but a series of processes that can be learned. It is these steps and skills that Breg and business partner Andrew Shipley endeavoured to impart to students at The Emirates Academy of Hospitality Management when they signed on as visiting professors for the Design and Architecture module last month. The challenge the pair created for the students was fun and interactive — see The Capex Factor on page 38 — but the message behind it was serious. According to Breg, there are likely to be hospitality professionals working in hotels that are ill-equipped to either launch new outlets or refurbish existing — yet failing — ones. He admits that at one point in his career, he was one of these people. This raises two issues. Firstly, the results of an ill-planned outlet could be damaging to both the operator’s reputation and the owner’s pocket. The potential for things to go wrong is huge — if the cuisine
A
doesn’t match the concept, the pricing doesn’t fit the market, or the marketing doesn’t reach the right audience, then the hotel is in trouble. A launch campaign might be good enough to get people to visit the outlet once, but if the experience is not up to scratch, it’s unlikely they will be going back. Secondly, do some training courses neglect the hands-on, practical challenges needed to prepare graduates for working in the hotel business? The Emirates Academy’s decision to inject a strong commercial edge to the Design and Architecture course and bring the Tribe team on board is positive for the industry as a whole, signalling a move away from more theory-based architecture modules. The components necessary for restaurant creation are complex, and the challenges of bringing them together even more so. Market knowledge and branding, culinary expertise and design know-how, plus operational management and financial awareness are all key. How many times have you seen a beautifully-designed restaurant sat empty because the operators
Louise Oakley, editor
louise.oakley@itp.com thought the look alone would sell it? Or tasted wonderful food but felt confused because it wasn’t what had been advertised? According to Breg, the key to success is not to over-promise, but to clearly define what you are delivering and deliver exactly that. Of course, this does not take into account creativity and the ability to produce something original, but designers are hardly going to give away those secrets are they?. The graduates are a bit too smart for that, as their presentations at The Capex Factor revealed. HME
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DIARY DATES: A ROUND-UP OF INDUSTRY EVENTS HERE AND ABROAD IN THE COMING MONTHS August 31-September 2 CIBTM 2010 Beijing, China www.cibtm.com
October 4-7 Cityscape Dubai Dubai, UAE www.cityscape.ae
September 27 Caterer Middle East Awards Park Hyatt Dubai, UAE www.hoteliermiddleeast.com/ catererawards
October 6-9 HOTEC Europe Albufeira Portugal www.mcleaneventsinternational.com
September 29 The Great GM Debate Jumeirah Beach Hotel, Dubai, UAE www.hoteliermiddleeast. com/ conferences
Published by and © 2010 ITP Business Publishing, a division of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Number 1402846.
October 14 Hotelier Middle East Awards Dubai, UAE www.hoteliermiddleeast.com/awards
November 8-11 World Travel Market London, UK www.wtmlondon.com November 23-24 DTCM director of hotel clasBC Hospitality sifications MajidAl Marri will be speaking atThe Great GM Debate Expo organised by Hotelier Middle East. Vancouver, Canada www.hospitality-trade.com/ tradeshow_overview.htm
October 25-26 Business Travel Show Middle East Dubai UAE www.businesstravelshowdubai.com
Hotelier GM of the Year 2009 Abdin Nasralla.
www.hoteliermiddleeast.com
Hotelier Middle East • July 2010
COMMENT
12
Jebel Sifah forges ahead Viability director Guy Wilkinson reports from Oman, where the Muriya Tourism Company’s sustainable tourism development is set to put rural village Jebel Sifah firmly on the map Image: Guy Wilkinson.
COLUMNIST uscat’s hotel sector seems to have largely avoided the ‘boom and bust’ syndrome that has afflicted cities in places such as the UAE. Certainly, a lot of new hotels have opened over the past few years, but the pace of development has been relatively sedate and in the context of the recession, this has been an advantage. The only ‘mega’ tourism real estate project to have really got going there has been The Wave, on the beachfront near the airport in Seeb, where the seventh tranche of several hundred houses has recently been well-received by the market, and Fairmont and Kempinski hotels are planned to open by 2012 and 2013 respectively. Other large projects, however, have fallen by the wayside. Work on Salam Yiti, the huge 4.2km² tourism and residential development planned by Sama Dubai with Oman’s state tourism developer Omran, over the craggy hill from the Shangri-La Resort, has been stopped pending discussions between the governments of Dubai and Oman, although some impressive progress has been made in terms of road-building and marine earthworks. The nearby Yenkit Tourism Development, a planned 950hectare hill-top project part-owned by Majid Al Futtaim offering four five-star hotels and an 18-hole Gary
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July 2010 • Hotelier Middle East
Muriya is trying to create a sensitive, low-density development wherin only 25% of the land is used for building.
MURIYA HAS ALSO SIGNED AN MOU WITH THE OMANI MINISTRIES OF TOURISM, MANPOWER AND EDUCATION TO CREATE A HOTEL SCHOOL ON THE SITE Player golf course, still has a web site, but construction seems unlikely to start in the near future. Part of the challenge in these mountain sites to the immediate east of Muscat is surely to flatten out the jaggedly rocky terrain enough to build on. Local developer the Alargan Towell Investment Co has responded by creating an impressive double rock terrace along two sides of a small bay at Kheiran, just beneath Yenkit Heights, where they are planning what will eventually become a most dramatic 82-room Oberoi boutique hotel. I have seen this project and can vouch for its slow but apparently inexorable progress. The website promises operations will commence in 2011.
MURIYA’S MARINA TOWN Most impressive of all the ongoing projects, however, is the Muriya Tourism Company’s Jebel Sifah development. Located 45 kilometres from Muscat at the end of what is currently a dangerously wind-
ing rural road, the 6.2km² residential resort project is to be spread along 5.6km of previously pristine beachline, next to a quaint, goatfrequented fishing village occupied by Omanis of Zanzibari descent. Despite being largely unknown in the other Gulf countries, the elegantly curving, often deserted As Sifah beach with its dramatic mountain backdrop has been voted one of the top 10 beaches in the world by the UK’s Guardian and Telegraph newspapers, as well as by many other travel writers. All that is about to change thanks to Muriya, a joint venture between Egypt’s Orascom (of El Gouna fame) and Omran, who are building a ‘marina town’ there; with shops, restaurants and cafes, hundreds of houses and apartments for freehold sale with 100% foreign ownership — the first phase will be delivered next year — as well as four five-star hotels and two boutique hotels. Planned as a self-contained resort town, Jebel Sifah has amassed a
particularly impressive collection of hotel brands. Oman’s first Four Seasons will offer 200 rooms and 70 real estate units. There will be a 133room Banyan Tree Hotel and a 150room Angsana Hotel, opening in 2011 and 2012 respectively, which will have 77 related real estate units. Rezidor’s Hotel Missoni will offer 250 keys and open in 2014. The hotel is being designed by top American architect Michael Graves, who also created the Nubian-style Sheraton in El Gouna, while Rosita Missoni is the interior designer. Muriya has also signed an MoU with the Omani Ministries of Tourism, Manpower and Education to create a hotel school on the site. For those who decry the filling of this lovely beach with concrete, it must be said that Muriya is taking particular pains to create a sensitive low-density development, wherein only 25% of the land is used for building. According to the developer, the architecture takes its design cues from the local culture and environment, involving local building techniques, materials and the employment of local craftsmen and artisans. All Muriya’s projects — which include others in Salalah, Sodah Island and Muscat — are being developed in a ‘socially responsible’ manner. For example, vegetation clearing is being minimised to reduce habitat loss. There will be an on-site recycling plant, while a supermarket will be operated by the local people. As part of the project, a mosque in As Sifah village has been rebuilt and Muriya will work with the Ministry of Heritage and Culture to renovate the historic citadel of Sifah. HME
Guy Wilkinson is a Partner of Viability, a specialist hotel and real estate consulting firm in Dubai. Email him at guy@viability.ae
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Hit the Top
COMMENT
14
RevPASH: a true barometer for measuring outlet productivity Ròya International hospitality consultant Turab Saleem advocates restaurant revenue management
LOBBYIST he present sluggish economy, high labour costs and competition from new, indirect and untraditional competitors, has forced the restaurant industry to look into creative solutions to face today’s challenges and monitor productivity. Historically, revenue management is one of the techniques that has been successfully employed in the airline industry; and now other industries have embraced and enjoyed its benefits. Revenue management must be adapted to each of these specific sectors, however. ‘Restaurant Revenue Management’ is selling the ‘right’ customer at the ‘right’ price for the ‘right’ duration. Here, ‘right’ means achieving both the most possible revenue for the restaurant by delivering the greatest value to the customer. This concept is based on a study that was done by Sheryl Kamis at Cornell University, and all revenue management requires a focus on revenue per available inventory unit. For example, hotels measure revenue per available room night (RevPAR) and airlines measure revenue per available seat miles (RPSM), so in restaurants, it can be revenue per available seat per hour (RevPASH). At present, the restaurant industry is using ‘average cheque’ as a
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July 2010 • Hotelier Middle East
Do your restaurant interiors enable outlet managers to manage meal duration and ensure table turnover?
MANAGERS CAN INFLUENCE MEAL DURATION BY CHANGING RESERVATION POLICIES, REDESIGNING MENUS, PACING SERVICE PROCEDURES, ALTERING STAFFING LEVELS AND HAVING PROPER SPACE DESIGNED FOR SPEEDY SERVICE yard stick to measure the profitability, which is equivalent to a hotel focusing solely on a higher average room rate without looking at occupancy. RevPASH combines information from the average cheque and utilisation of the seats to provide a measure of the flow of revenue through the system and to indicate how effectively a restaurant is using its productive capacity. The number of turns and the length of the meal or service cycle are closely related to RevPASH. As the number of turns increases and meal length decreases it leads to an increase in RevPASH. As most of the revenue is made on weekends, the need for restaurants to implement a RevPASH strategy effectively to increase turnover and maximise revenue is obvious.
occupancy. Certain ways by which managers can influence meal duration include changing reservation policies, redesigning menus, changing and pacing service procedures, altering staffing levels and having proper space designed for smooth and speedy service. Reducing the first few minutes is not that difficult or expensive to achieve — for example, by having smooth flow of service, picking up the pace of greeting, seating and cheque settlement. Deep reductions may require substantial investment in certain cases i.e. by adding new portable POS (Point of Sale) systems, efficient kitchen equipmentsor redesigning the service area. Managers should understand the use of RevPASH during high and low demand. During low RevPASH periods, managers can try to attract more customers or increase the average cheque. During those periods with high RevPASH, operators should consider raising menu prices or try to reduce meal duration so the restaurant can increase its turn rate.
IMPLEMENTING REVENUE MANAGEMENT
REVPASH AND ROTAS
There are some easy steps to take that can have an immediate impact on the bottom line, such as minimising the waiting time, increasing the service speed and suggesting items that take less time to prepare and have a better margin. Two major factors that managers in the restaurant industry need to look into when implementing revenue management are “price” and “meal duration”. Price manipulation includes price-related promotions to shift peak-period demand, day of week pricing, price premiums or discounts for different type of party size, tables and customers. On the other hand it is a little more difficult to manage meal duration or
RevPASH can play an important role in labour management as well. It can help evaluate the efficiency and effectiveness of service, and it can assist staffing and rotas by understanding the high and low RevPASH period. Labour is the biggest controllable element in the restaurant P&L and restaurants have to control labour in order to succeed. It can also provide a way to monitor the performance of different sites, and unit by unit comparison of RevPASH would give a good indication of the relative performance of different restaurants in a region. It’s time hotels evaluated the implication of RevPASH in their outlets, as its true essence is essential to maximise the benefits. HME www.hoteliermiddleeast.com
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Five minutes with Michel Noblet HMH chief executive officer Michel Noblet talks exclusively to Hotelier Middle East about company development, the economic downturn and why it’s good to show-off your hotel However, the executive who is on the corporate account today will have to pay from his pocket tomorrow so he may want to take himself and his family to somewhere more affordable. The mid-market properties are definitely very promising and when you know that Dubai wants to welcome 15 million tourists within the next few years, out of the 15 million you will definitely have people who want budget hotels. Dubai is a special destination, people dream about Dubai, and the dreamers are everybody — it could be people with high purchasing power, or mid market people. There is some kind of attachment to this place, people think ‘maybe one day I will be able to go to Dubai’, but this person might not be able to spend money on a luxury hotel so the mid market offerings would suit them.
CEO INTERVIEW What are your plans for Hospitality Management Holdings this year? During this year the company will be quite busy. HMH is committed to opening 17 hotels by the end of the year, which is a big task as it can take up to four years to reach the operation stage. For example, the hotels we are opening this year have been in the pipeline for the last two or three years at least. Of the hotels we will open this year, 10 will open in Saudi Arabia, and then we have one in Dubai, one in Abu Dhabi and one each in Syria, Jordan and Lebanon. Beyond that, we have set a business plan several times but what we would like is to reach 100 hotels by 2012. Considering that we already have 75% of that signed, that is what we want to do. Looking to 2015, I don’t have any particular plans so I just want us to be perceived as a modern and progressive company. How has the downturn affected hotel developments in the region? You have two schools — you have developers who pull out and put the project on hold because they maybe didn’t have enough liquidity. Other developers, they are bullish and they find a way to make things happen. The developer is the decision maker in everything. For some developers it was an issue [the financial crisis] and as you know the banking system is quite shy; so unless you have a top guarantee, top collateral and security, it was not easy and it is still not easy. So for some developers it is not an easy task to finalise the financing. Has business improved this year? It is common knowledge that the volume is still there but unfortunately the pricing has decreased due to the financial crisis. But it depends which area you are talkJuly 2010 • Hotelier Middle East
Michel Noblet: Dubai is a special destination that attracts people with varying levels of purchasing power.
I WANT US TO BE PERCEIVED AS A MODERN AND PROGRESSIVE COMPANY
ing about. In the UAE, definitely in terms of pricing, we are facing much less than what we used to know, but in some areas like Saudi Arabia it is quite good. Saudi Arabia is the biggest market in the Gulf so they rely on the domestic market and that is very powerful. Here in the UAE we depend very much on the inbound business.
What are the current trends in the Middle Eastern hospitality market? Yes, for 2010 there is definitely a very strong push with budget hotels, which is good as with any market and any destination, they do need to diversify in terms of segmentation. They need to please everybody, but of course Dubai is perceived as a deluxe destination.
With the increase in mid-scale brands on the market, is there still a demand for luxury hotels? Funnily enough, despite the international financial crisis, you still have people who can afford this kind of product. If you go to Europe, for example, you will realise that five-star hotels are running a high occupancy and the more we grow, the more we will see both rich people and poor people. The amount of people who can afford luxury is increasing so definitely there is a demand for the luxury product. Here the GCC citizens – they are looking for luxury accommodation. Some companies, in order to be representative, also need to be a show-off. If you have a multi-million dollar company and you are going to entertain or accommodate your partners from Europe or Asia, you show off your hotel. This is related to the Arabic hospitality as well – they want to be very generous and they want to show the wonderful assets that their countries have. HME www.hoteliermiddleeast.com
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Donald J. Semmler. Mitzi Gaskins.
Leading the way with luxury Marriott International Global Full Service Brands executive vice-president Donald J. Semmler and JW Marriott Brand and Marriott Hotels and Resorts Brand senior director Mitzi Gaskins discuss new brands, the continuing demand for luxury and why hotels should reward loyalty TALKING HEADS ecognised by Fortune as one of the best companies to work for, and reporting sales from continuing operations of nearly US $11 billion last year, Marriott International has expanded in 2010 with the launch of two new luxury brands. Hotelier Middle East met with two of the company’s brand leaders, Marriott International Global Full Service Brands executive vice-president Donald J. Semmler and JW Marriott Brand and Marriott Hotels and Resorts Brand senior director Mitzi Gaskins, on their recent visit to Dubai to find out why Marriott remains optimistic that luxury will lead the way out of the crisis.
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NEW LAUNCHES Adding to its already sizable portfolio of brands including Ritz-Carlton, JW Marriott Hotels and Resorts and Renaissance Hotels, Marriott International recently announced the July 2010 • Hotelier Middle East
arrival of two more concepts: Edition and The Autograph Collection. Edition, which will officially launch with the opening of the first hotel in Waikiki in September 2010, is set to grow slowly, with a second hotel planned to open this year in Istanbul and five signed. It is a highend experiential lifestyle brand, the concept of which was evolved by employing the highest talent in every experiential element of the hotel, from landscape architects to lighting specialists, to create a hotel where guests feel the difference. “It is the only hotel that is conceived with that kind of resource. And it is all built around how is it going to make you feel, how will it affect you; it will be unlike anything else in the
market place,” Semmler asserts. The Autograph Collection, which launched earlier in the year, will grow more quickly. Eight hotels are open already, 14 hotels are committed and signed in the US, and Marriott is aiming to have 25 by the end of the year. A different concept to the existing brands operated by the company, The Autograph Collection comprises independent hotels which retain their own brand name and personality but are operated by Marriott International. “We have always invested in sales, revenue management, e-commerce, the loyalty programmes that we have, and we realised that globally the platform that we have to generate sales is the largest in the world,
LUXURY WILL NEVER GO OUT OF STYLE BECAUSE PEOPLE REALLY RESPECT GREAT SERVICE www.hoteliermiddleeast.com
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the only one that comes close is Hilton and they are smaller,” Semmler says. “On a global basis, if you want system power – Marriott is the largest. We are a growth company so we always look for ways to grow.” And the concept seems to be popular, with plans to expand the brand already being considered. “We’ll be moving The Autograph Collection globally over 2011 so we are excited to have some play in Europe because the European hoteliers never sell — they want to run it their way and here is an opportunity for them to do that and make more money,” adds Semmler.
ELITE MEMBERS ARE TREATED LIKE OUR MOST VALUABLE GUESTS BECAUSE THEY ARE TO US
LUXURY The new brands, both of which are luxury offerings, speak volumes about the continuing demand for luxury in the hospitality industry, despite the global financial crisis. “When we went down in the downturn, the luxury brands Ritz-Carlton and Four Seasons were affected disproportionately, they went down even further. But now we are pleased to say that the luxury tiers are leading the way out,” maintains Semmler. “We know that luxury will never go out of style because RevPAR is moving up faster in luxury offerings than the other brands, and the luxury survey we ran recently shows that people really respect great service and fantastic products and will pay for that. People now may spend more time researching their stay and exactly what will happen, but it looks to us like luxury is a fantastic tier moving forward. “It is being led by the Middle East and Asia — so in terms of luxury today, when you talk about growth, you immediately go to Asia and the Middle East,” he adds. Of the company’s luxury offerings, JW Marriott is growing more quickly than the others. “It is the fastest growing luxury brand for a couple of reasons; one is that it’s the perfect blend of builder cost from an investor perspective. It has a higher build cost than Marriott and lower than Ritz-Carlton, but the rate it can get is disproportionately high because the service level is great, food and beverage levels are great, craftsmanship is great. It is a different kind of luxury customer – someone who wants everything right
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but doesn’t need a lot of opulence on top of it,’ reveals Semmler. Although the demand for luxury hotels remains, Gaskins observes that guests’ perceptions of what luxury hotels should offer has changed. She points to the power of knowing the guest as being a real sign of a luxury hotel. “We have done a lot of research into understanding the passion points of our guests, and we really know them to be very interested in culinary culture and wellness,” she says. “So everything that we are doing is designed to enhance the guests’ experience by playing up those passion points. Whether you are on a business trip or leisure, there are offerings for you in the hotel. So everything is taken care of, it’s seamless, it is distraction free, but in the end what we want to do is to give you the time and freedom to concentrate on whatever is most important to you. “I think JW is perfectly positioned for this because we are known for being approachable with this casual elegance so as you go away from formality and tradition with this new luxury, we are in a great position,” adds Gaskins.
FINANCE
BRAND LOYALTY
Reassessing business in the downturn can only be beneficial for guests, says Semmler. “Looking at the business means that we will end up with talented staff members and the ability to customise guests’ experiences,” he says. “The downturn has been beneficial in terms of improving customer service. Innovation is born out of necessity, and economic downturns force you to sharpen your saw and look again at everything you do and how you do it and how you take care of your customers. “For us, coming out of a downturn is exciting because we have been looking at how we might continue to grow in different ways. So the analogy that one of the economic think tanks in the US came out with is that it’s like an oval race track, so when times are good everyone is flying down really fast, when the economic downturn comes you’ve got to go into the corner, and at the corner there is all kinds of bad stuff happening, elbows are flying and everybody’s trying to get an advantage but it’s what you do in the turn
And with customer loyalty remaining incredibly important to the hospitality industry, particularly so during the financial crisis, it is no surprise that the company is looking for innovative ways to retain its existing customers. “The frequency programme we have — we were the first ones to do that in this industry,” says Semmler. “We have 32 million members in the loyalty scheme and every night 50% of the room nights occupied across the globe come from that membership so those people have been extraordinarily consistent, even through the downturn.” The rewards scheme allows customers to collect ‘points’ with every visit to a Marriott International property. Customers can then choose to spend their points across the brand offerings, use them as gifts or even spend them on products from the golf shop. It is a way, says Gaskins, of thanking customers for their repeated business. “They [customers] have become more loyal in times like this than even in good times,” she says.
ON A GLOBAL BASIS, IF YOU WANT SYSTEM POWER – MARRIOTT IS THE LARGEST [that’s important]. If you don’t invest in your brands and in new ways to grow, when you come out there are more leadership changes than at any other time. So it’s the courage you have when you’re in the downturn to continue to look for optimism that catapults you out of the turn. We came out with Autograph and Edition and JW and we’ve got new programming for Ritz-Carlton so we feel pretty good about it,” says Semmler.
“It’s also a way for us to look after our most loyal guests — so we have our elite members who get certain benefits from their hotel stay,” continues Gaskins. “Each time they stay they get access to the executive lounge in the JW Marriott brand; they also get amenities when they arrive, so they really are treated like our most valuable guests because that’s exactly what they are to us.” HME Hotelier Middle East • July 2010
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21 PEOPLE
IN THE
DRIVING SEAT
Hotel GMs reveal how they steer their staff to success GM ROUNDTABLE What experiences and people have shaped the way you manage your hotel? Cora Stuart: I definitely have some very strong mentors in my life, some that I always look to and I still contact to be able to understand their take on something. I’m a relatively young general manager but I had good role models, so I look to what they’ve done for me and how they’ve treated me and the people that I’ve worked with as examples of how I should proceed as well. Aside from my mentors, I work a lot with Stephen Covey’s Seven Habits [of Highly Effective Leaders] and that’s a lot of what I do as well — I preach that to a lot of the people that I work with because I believe in balance in life and a lot of the mentors that I’ve worked with have managed to achieve balance in life, although I’m still aspiring to be as good as them. Simeon Olle: I think as far as shaping
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our careers we all have mentors and there’s always something positive to take out of every individual. There can be positives and things that are not so positive; what works for some leaders and managers, those skill sets can’t necessarily apply to other personalities. So it’s a matter of looking in the right places for that. It does depend on each hotel. For example, The Address Downtown Dubai is quite time demanding because we have bars and restaurants and they are busy late into the night. Just by the nature of the make up of this hotel, or of any hotel if you have that strong food and beverage component, usually you find it goes a little bit later into the night. Several of you are in fairly new roles; what are your priorities as a GM going into a different hotel? Henning Fries: Of course, getting to know the key players and getting to know the employees is most important. That’s what makes the product overall. Secondly, I think it is to
get a grasp of what the key drivers of the business are. This is my first two weeks to get my head around what it’s all about at Fairmont. Of course, understanding the brand is very important, companies have their own way of working and you need to find your way around that as well. Peter Blackburn: Brand recognition is important and at Cristal Hotels we’ve managed to do that very successfully in such a short time. Paul Bridger: I think clients here have high expectations because they are in Dubai, particularly holidaymakers, they come to Dubai and expect everything to be bigger, better, shinier, so we have upped the service. Premier Inn is very branded, we have 600 hotels, so you’ve got the same product here that you have in the UK — the difference I make is the service, so I really try and push the service Have any of you wanted to take a different approach with setting up your team? CS: I have been able to do that twice actually, once at The Address, start-
ing with a white piece of paper in my office with nothing and being able to flesh it out for the Address was an amazing experience, something you can never forget. Then doing it with Media One as well, a brand that nobody knew and then positioning it as a very hip, trendy hotel — to me that’s what I enjoy. That really gets me on a high, when you can develop something and see it come to fruition and then come back and look at it and see how wonderful it looks and how successful it’s become. To me, the best part of my life is being able to do that. HF: [As GM] you are really setting the tone for the overall approach. I think that really it comes down to leadership style and the way things are being done — the culture that is created within the team has direct impact on how service is delivered. How people are made to feel when they are joining the team [impacts how] guests feel when they are eventually coming through the door and what they say about your brand and Hotelier Middle East • July 2010
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THERE’S A LOT MORE DEMAND FOR INTEGRITY IN WHAT YOU SAY AND WHAT YOU DO Cora Stuart, Media One Hotel
the experience that they have at the hotel when they are there. Stephan Vandan Auweele: I think one thing we need to realise is that the environment in which we are working is not what it was 10 or 20 years ago. People have changed, customers have changed, the environment in which we operate has taken a dramatic shift. Since I joined the Aloft, my eyes have opened dramatically, we as hoteliers — at least I was — we pretty much focus on a kind of customer or a kind of environment which doesn’t exist anymore. The kinds of customers which [we will experience] in the next generation of travellers are not the ones from 20 years ago. They have other expectations; the world was very different 20 years ago. When you went on a plane you were wearing a suit if you were in business class, everything was a lot more formal, whereas today when you take a business class plane people will go in their jeans and some will even go in their pyjamas! If you look at what a hotel traditionally was, it was for the rich and famous and heads of state, today it’s more for travelling managers, and I
think from being an exclusive and very utilitarian place, now hotels have to be a warm place, where you are away from home and you do business. It’s from the staff that this change has to come, you don’t have to speak anymore like the customers are from another planet — they are human beings as we are. How has the role of the GM changed? Paul Bridger: Even as a budget hotell we have everyone from the travel-ling salesman to the chief executivee of the company, so we have to kind off change our service style. Peter Blackburn: You have to bee focused on new technology, as welll as environmental issues. CS: I believe that what Stephan said d is true, the customer has changed. o Today’s customer requires you to entertain them, it’s not about justt providing them a safe, comfortable, luxurious environment to stay in, but more ‘what can you do to enter-tain me now’ and I think our role has changed in that we have to come up with something that makes a differon. ence and attracts their attention. nd You have got to really stand out and
GETTING TO KNOW YOU: HOTELIER’S TEAM OF EXPERTS Cora Stuart General manager Media One Hotel, Dubai Having started her career in food and beverage as a supervisor at the Westin in Singapore, Cora Stuart moved to Shangri-La briefly and then to Ritz-Carlton where she worked for 13 years in sales and marketing. Prior to moving to Dubai to take up the role of hotel manager at The Address Downtown Dubai, Stuart was working at the Bulgari Hotel in Bali. After the successful Address launch, she moved to Media One Hotel to open it as general manager last year. Paul Bridger General Manager Premier Inn Dubai International Airport Starting in the airport, retail and catering sectors, Paul Bridger began his career in food and beverage. He has run restaurants, bars, fast food outlets and duty free shops in airports up and down the UK. Bridger then moved to Whitbread five years ago and ran a large Beefeater restaurant and
July 2010 • Hotelier Middle East
Premier Inn hotel. He moved to Dubai in September 2009 to open Premier Inn Dubai International Airport. Janet Fitzner General manager Radisson Blu Hotel, Dubai Deira Creek Another new face in Dubai is Janet Fitzner, who has been in her role at Radisson Blu Hotel, Dubai Deira Creek for six months. Fitzner has spent the last six years in Poland as area general manager for Radisson and previously worked for the company at various locations in her home country of Germany. Fitzner started her career with InterContinental in Germany. Stephan Vanden Auweele Complex general manager Aloft Abu Dhabi / Element Abu Dhabi Belgian-born Stephan Vanden Auweele left his home country after 22 years to work in the hotel industry in Luxembourg and then in Copenhagen, where he worked for Radisson. He then moved to Far East, working in food and beverage for periods in Bangkok, Hong Kong,
Seoul and Vietnam for companies including Sofitel, Hilton and Regal Hotels. In 2001, Vanden Auweele joined Starwood in Portugal for The Luxury Collection before opening two Sheratons in the Canary Islands. He moved to the Middle East to start up the Aloft brand in Abu Dhabi. Located at ADNEC, Vanden Auweele will also be responsible for the opening of Element Abu Dhabi next year. Simeon Olle General manager The Address Downtown Dubai Simeon Olle has been GM of The Address Downtown Dubai for nine months. Previously, he worked with Hyatt International for 23 years, located most recently in Beijing, China, Seoul, Korea, Bangkok, Thailand, and South America. Olle began his career with Hyatt in Australia. Henning Fries General manager Fairmont Bab Al Bahr, Abu Dhabi New to the Abu Dhabi hotel scene is Henning Fries, previously opening general manager of
The Monarch in Dubai where he worked for three and a half years. He joined Fairmont Bab Al Bahr at the start of June. Previously, Fries worked for nine years with InterContinental in London, Berlin and Munich, and prior to that spent five years in Hong Kong and Jakarta with Mandarin Oriental. Fries also worked with Fairmont in Canada for five years, and started his career in food and beverage with Mövenpick in Germany. Peter Blackburn General manager Cristal Hotel, Abu Dhabi With a background as a mechanical engineer, Peter Blackburn joined the hotel industry in the mid-1980s with InterContinental in London and Egypt. He moved to the Peninsula Group based in Beijing in the 1990s and returned to the Middle East with Rotana Hotels in 1998. Over a period of nine years, Blackburn opened 23 Rotanas. In 2007, he founded the Cristal Hotel brand and opened the first Cristal in Abu Dhabi in July 2009.
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YOUR GUESTS AND YOUR TEAM WILL GIVE YOU ALL THE ANSWERS YOU NEED ABOUT YOUR BUSINESS Paul Bridger, Premier Inn Dubai International Airport
be different and I think that’s what our role is — looking for innovations in technology, service etc.
The other thing is I believe that people want us to be less formal, I totally agree that it’s not about the formalities, but it’s about the reality of what I want as a customer and how you understand that at my level. It’s about logical service now. HF: I think it’s also strong determination of what the brand is all about. The key themes are brands — they differ not only across this table but across the entire industry — and the clearer we are as to what kind of market we are attracting and what it is that we
need to do in order to take a top spot in that market, that is going to determine what that product is all about. I agree with you that the uniqueness, the experience, needs to be tailored towards this customer that you are trying to approach. Paul Bridger: Guests are also more socially responsible now so they care how you treat your staff, where you buy your light bulb from, how you wash your laundry, they want to know that as a business you are operating in a transparent way. SO: If you ask me how has the role changed from when I was growing up, I think now it’s definitely a more hands-on role. Gone are the days when you have a figurehead who is really there as a PR value, you need to really be hands-on, on the floor, getting involved in the operation and I think you really
The GM roundtable was held in the semi-private dining room at Chinese restaurant Hukama at The Address Downtown Dubai.
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Hotelier Middle East • July 2010
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A LOT OF HOTELS WANT TO BE EVERYTHING FOR EVERYONE AND WE DON’T WANT TO DO THAT Stephan Vanden Auweele, Aloft Abu Dhabi
transparent on both sides, for internal and external customers, it has become so much more transparent and fast paced as well. I think particularly in this part of the world as a general manager you are taking on such additional responsibility for your employees. You’re basically taking responsibility for every aspect [of staff wellbeing], from their transportation to their living accommodation, every aspect that touches their lives, and this is quite unique compared to other parts of the world where you have employees that work eight / nine hours and then it’s not really your concern; here it is. It has a heavy impact on how well your employees are feeling about you as an employer, how it translates into the service that is delivered, so [the role of the GM] has greater scope here. need to have the ability to be able to zoom in and zoom out from a business perspective. So look at details and then step back and have the ability to look at the big picture at the same time. SVA: I think the basics have not changed, it’s still about people, the thing is the people have changed. It’s still about empathy towards your customers, your staff, your owners but the environment in which you operate has changed. A talent or a staff that you hired 20 yeas ago had different needs to somebody now. They are more international, they surf the web, they can find new jobs, so it’s a lot more complex than 20 years ago when you hired somebody, he was a number and that’s it. Now it’s a constant engagement. Also with customers, the world is a lot more open, people communicate —
GMS AND THEIR TEAMS Media One Hotel, Dubai: 200 Premier Inn Dubai International Airport: 95 Aloft Abu Dhabi: 250 The Address Downtown Dubai: 600 Radisson Blu Hotel, Dubai Deira Creek: 630 Fairmont Bab Al Bahr, Abu Dhabi: 600 Cristal Hotel, Abu Dhabi: 175
That is a very good point. What responsibility do you take in terms of maintaining staff wellbeing? CS: I’ve had the opportunity in this hotel to do things a little differently from the traditional hotels in Dubai. We managed at the time when we were opening to get some really good housing, not your usual
if tomorrow there is a bad service in your hotel everybody knows. You’re a lot more exposed, so the human interaction and the world in which we operate is a lot more demanding, things go faster, one bad service and the guy is tweeting you. It’s a new challenge and you have to manage these and whether you like it or you do not like it, you just have to work with it. SO: There’s nowhere for you to hide these days. CS: That’s why there is a lot more demand for integrity in what you say and what you do. Janet Fitzner: With people development, there are also changes I think. Your employees are also more demanding, they want to have faster growth paths, and of course ,they can also be more selective. HF: The entire industry is much more
I THINK YOU REALLY NEED TO HAVE THE ABILITY TO BE ABLE TO ZOOM IN AND ZOOM OUT FROM A BUSINESS PERSPECTIVE Simeon Olle, The Address Downtown Dubai
July 2010 • Hotelier Middle East
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compound housing, but independent housing outside for our staff and I fought for that to make sure that we got them housing like any other part of the world where staff would live in a beautiful apartment. They love it, I don’t visit the apartments as much but I know for sure that they love it because I see them every single week. I have a group meeting with 10 staff every week…they love the fact they have the independence to live as they would in Singapore or Malaysia. So I think this is something that hopefully Dubai will change because I think we’ve set that [benchmark], we’ve set it up in Dubai. I’m starting with one hotel so it’s been a lot easier for me to start that independence. Paul Bridger: Staff accommodation
is very important to the team and it reflects on how they behave day to day with your guests as well. I take a slightly different approach in that when I do go to visit the staff accommodation it’s in a social way, in jeans and t-shirt, I’ll watch the cricket team, rather than walk around with a clip board. JF: For me of course I was coming to the Middle East for the first time, so this culture was all new, but one of my first actions of course was to understand my team of employees with 57 nationalities, which I never had before. It was very important for me to individually meet my employee groups and to hear the feedback and that was the fastest way I could get any information as to what they feel
YOUR EMPLOYEES ARE ALSO MORE DEMANDING — THEY WANT TO HAVE FASTER GROWTH PATHS Janet Fitzner, Radisson Blu Hotel, Dubai Deira Creek
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and what I can improve. I think that it is very important that they also see your efforts, that you take them seriously and that you try whatever you can do. Of course I would love to do much more but financial resources have to fit as well. SVA: I think it’s being honest and fair and keeping the discussion alive, like you say you cannot do everything, but if you explain it, rather than saying that’s ‘how it is and shut up’, I think these days are finished. But if you tell them, we cannot do this because it costs so much money, or we cannot do this because of the law or the owner or whatever; in reality I think if you explain it to people and they perceive it to be fair then it is easier to have them accept things. In Abu Dhabi, housing is problematic, so I have to say we can try to make it better, but if you want to house 300/400 people in Abu Dhabi you don’t have 25,000 options – you have one, Mussafah! CS: One of the biggest skills we need now is more collaboration rather than direction. I feel with my staff exactly as Stephan says, you have to get the buy-in. Let’s stick together and figure it out together.
HF: From the management side, it’s much more transparent. You are sharing much more with your employees, your constituency, because they are such a vital part in achieving some of those objectives you have. The more you are transparent about the pressures on your business, the more chance you have that everyone is putting in the same role. I think that’s a big change from going back a few years when there was a real disconnect between the people who have to achieve all those objectives and how it actually translated into real business. What are your current priorities as GM? Peter Blackburn: Our main priority is the brand recognition, service is another priority; we are highly focused on service, and also F&B. We are a dry hotel, so we go that extra mile on the quality of the food and are a little bit higher on the food costs. We have regular team briefings every fortnight but it’s more of a relaxation, it’s done casually and we address these issues and service quality and lots of training too. HF: We are about six months on the market, we are full on busi-
GETTING TO KNOW THE KEY PLAYERS AND GETTING TO KNOW THE EMPLOYEES IS MOST IMPORTANT Henning Fries, Fairmont Bab Al Bahr
ness, but there are still some things to be done around the building. The brand name Fairmont is known but it’s not necessarily known for the Abu Dhabi market so introducing this and making sure that all the market segments start understanding what our product is all about, and of course, that relates into the business. That’s really the key priority for me at the moment. JF: As a well established hotel, but with increasing competition around me, the main target is to keep our customer satisfaction and service so that we don’t lose the service standards we have set and which we are well known for, and we have loyal client bases that we have to focus on keeping. Of course, we have to look more at what is challenging right now — the food and beverage situation — so we can adapt a little bit to the changed market trends and the price sensitivities and we are looking now at changing some menu concepts in some of the restaurants. We
are also grabbing new sales opportunities and we are [working] to keep the profitability. SO: The hotel was well opened, I think the positioning of this hotel and the brand is good, the company has done very well in getting brand recognition to people in Dubai. Commercially I think the hotel is in good shape and is doing well and I think that we’re relatively successful commercially, so for us it’s really about the customer engagement. My focus is customer engagement and service delivery and that’s really the main priority currently. SVA: We started one and half years ago and meanwhile there are 41 Alofts open, we’re opening another 15 this year, plus there’s another 16/17 in construction, so we are definitely getting this lifestyle message out, trying to differentiate ourselves from the traditional brands and get the message out to the next generation of travellers. This is something a little more funky and hip than my
YOU HAVE TO FOCUS ON NEW TECHNOLOGY, AS WELL AS ENVIRONMENTAL ISSUES Peter Blackburn, Cristal Hotel, Abu Dhabi
July 2010 • Hotelier Middle East
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grandfather’s hotel. I don’t say that everybody is going to shift tomorrow but there is going to be change and we see change already in the last few years.. A lot of hotels want to be everything for everyone and we don’t want to do that, that’s what our customers say, ‘don’t try to be everything for everyone, just give us a product that we want’. You really have to target your customers more. A lot of hotels are trying to attract the sheikh, budget travellers, the old, the young. It’s very difficult; it’s like trying to sell the same shoe to the mother, the grandmother and the daughter. Paul Bridger: Priorities for me are about demonstrating to people that they no longer have to spend AED 1000-1500 to get a clean, comfortable room and great service, and the way we’re doing that is through making sure our team really deliver for our guest, so we are training the team, developing the team, motivating the team. CS: The hotel has been open six months. Being an independent brand that does not have any other hotels around, my priority right now is to cement the recognition of the hotel within Dubai and we’re starting to look at how we can reach the international market through our personality [to communicate] that Dubai has something really different to offer right now in this hotel and we’re looking at creating some really fun experiences for after the summer. We’re sitting down now to figure out how we can take it to the next level in terms of this concept of entertaining our customers. How would you sum up your attitude as a leader? SO: I think for me it’s walking the walk and being hands on, being on the front line with the team and acting really as a team leader should act. We talked earlier about the demands of this industry, particularly when you have extensive food and beverage offerings and the hours involved, at the end of the day you just can’t do it as an individual, you have to surround yourself with as competent a team as you can find, and that’s the only way really that you will get success. I don’t think that it’s really driven through any one individual
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but through everybody in the team performing and contributing. HF: We are a people business so you have to have passion for people as well as a passion for the business, and I really would sum it up in that if you bring that passion to the team, and to the operation and to the hotel, then that really is going to translate in results. JF: You have to be passionate in the hotel industry anyway and then it depends on your team being behind you and doing it together with the team. I cannot do it alone. You have to get the team with you and all go in one direction and then of course you try to keep the motivation up to get the fighting spirit. Paul Bridger: I think it’s leading from
the front, talking to your guests because your guests and your team will give you all the answers you need about your business; you don’t need to look at your P&Ls. They are the ones who will tell you how your business is doing. SVA: I think our industry is a very particular business because it is the only industry where you have to start from the bottom or very low and you can work your way up. I think there are very little industries that have kind of similar career paths. It is a very tough school actually and I think that really shapes you. The school is natural elimination so the people that are not working hard enough or performing enough get kicked out by the system over the years, because they don’t have the
passion, they don’t have the character, they don’t have the charisma. The system is basically shaping itself and leaving only the people with the right passion and the right attitude because it takes you five, 10, 20 years to get through the system. You very seldom see someone dropped in from another industry and told you are going to be general manager of this hotel because you have an MBA from Oxford. JF: It’s dependent on the people, you have to be the mother, you have to be the psychologist, you have to be whatever is required — I think that makes the difference. HME What are your views on the issues raised? Send them to: louise.oakley@itp.com Hotelier Middle East • July 2010
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And the survey says‌ The Hotelier Middle East Salary Survey 2010 provides a fascinating insight into the earning potential and job satisfaction of hospitality professionals in the region. Jamie Knights reports
July 2010 • Hotelier Middle East
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O
co. Pool villa design for Six Senses Essaouira in Moroc
THE RESPONDENTS
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46.2% Of respondents said they believed their salary was below the global average
Once again, there was a large mixture of respondents to the survey, with the majority holding management and sales and marketing roles. F&B was represented in various roles with the sector providing 38 of total responses. Of the 249 respondents that took part in the survey on HotelierMiddleEast.com, the breakdown of the roles was as follows (n=249): Chef: 22 Food Service: 10 Bar staff: 1 Kitchen porter: 1
SALARY SURVEY
pen to hospitality professionals across the region, 249 people took part in the Hotelier Middle East Salary Survey 2010 during the month of June. Despite all the doom and gloom of the last year and a half, it was great to see that there were still that many people left in the industry. All jokes aside, when compared to the inaugural salary survey in 2009 — which took place just as the global economic downturn engulfed the Middle East — the results provide a fascinating and clear depiction of how the tumultuous year has changed sentiment.
Conference & banqueting: 4 Receptionist: 6 Reservations: 4 Housekeeper: 9 Maintenance: 2 Management: 87 Sales and marketing: 24 PR & communications: 14 HR: 17 IT: 5 Finances: 12 Procurement : 7 Head/regional office: 8 Other front of house: 7 Other back of house: 8 The breakdown of level of role is as follows (n=249): Director: 41 Senior manager: 17 Executive manager: 24 Regional manager: 6 General manager: 40 Manager: 52 Assistant manager: 29 Full-time employee: 38 Part-time employee: 1 Trainee/apprentice: 1 The breakdown of the age of respondents was as follows (n=249): 21-30 years: 21.3% 31-40 years: 41.8% 41-50 years: 27.3% 51-60 years: 8% 60+ years: 1.6%
WHAT IS THE TYPICAL MONTHLY REMUNERATION FOR THOSE WHO WORK IN THE UAE, BUT ORIGINATE FROM WESTERN EUROPE? (N=40)
Less than US $1500: 2.9% US$ 1500 - 3000: 5.9% US$ 3000 - 4500: 5.9% US$ 4500 - 6000: 5.9% US$ 6000 - 7500: 14.7% US$ 7500 - 10,500: 29.4% US$ 10,500 - 13,500: 17.6% US$ 13,500 - 15,000: 2.9% US$ 15,00 - 30,000: 14.7% HME
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Hotelier Middle East • July 2010
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MONTHLY REMUNERATION The impact of the downturn on salaries can be seen when compared to the 2009 survey. Those earning less than US $1500 rose from 9.5% of respondents to 12.7%. Furthermore, those earning $1500 to $2000 increased from 21.8% to 22.4%, while those earning $3000 to $4500 dropped from 18.7% to 16.6%. However, while it could be argued that many middle-range earners witnessed salary decreases, there were significant gains in the high-earner categories. The number of respondents earning $7500 to $10,500 increased from 6.7% to 13.7%. Some possible causes of the apparent drop in mid-range salaries could be explained by midmanagement redundancies and a pushing of salaries both up and down with job title repositioning. When looking at the competitiveness of their salaries, 66.5% of respondents thought their pay was average for the region, however, much like the 2009 survey revealed, 46.2% believed when compared to their global counterparts, their pay was below average.
WHAT IS YOUR TYPICAL MONTHLY REMUNERATION (INCLUDING ALL EXTRAS)? (N=205)
Less than US$ 1500: 12.7% US$ 1500 - 3000: 22.4% US$ 3000 - 4500: 16.6% US$ 4500 - 6000: 12.7% US$ 6000 - 7500: 5.9% US$ 7500 - 10,500: 13.7% US$ 10,500 - 13,500: 8.3% US$ 13,500 - 15,000: 1.5% US$ 15,000 - 30,000: 5.4% US$ 30,000+: 1.0%
DESPITE MANY PEOPLE HAVING A YEAR THEY WOULD LIKE TO FORGET, A LUCKY 49.3% RECEIVED A PAY RISE IN THE LAST 12 MONTHS
WHEN DID YOU LAST RECEIVE A PAY RISE? (N=197)
Less than 6 months ago: 32% Between 6 months and 1 year ago: 17.3% Between 1 year and 2 years ago: 26.9% Between 2 years and 3 years ago: 17.3% More than 3 years ago: 6.6%
PAY RISES AND PROMOTIONS Despite many people having a year they would like to forget, a lucky 49.3% received a pay rise in the last 12 months. Just over a quarter of respondents (26.9%) were also promoted in the same period. July 2010 • Hotelier Middle East
However, for more than half of those who took the survey (52.3%) it has been more than two years since they were last promoted. A further 40.6% are assuming they will be getting a promotion within the next year, with 36%
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23.3% of respondents think it will be more than two years before they are next promoted
thinking they will be promoted between one and two years. A rather pessimistic/realistic/ lazy 8.1% concluded it will be more than three years before they expect a promotion. However, this figure includes those at the top of the pile! www.hoteliermiddleeast.com
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THE GOOD NEWS IS THAT THOSE LOOKING TO THE FUTURE WITH COMPLETE CONFIDENCE HAS RISEN FROM 45.3% TO 51.6%
WORKING CONDITIONS It is very rare that a hospitality job is ‘nine to five’ and 65% of respondents work more than 50 hours a week, with 29.9% working 40 to 50 hours. However, these figures represent a drop from 67.5% and 28% respectively last year.
Furthermore, those working less than 30 hours a week rose from 0.6% to 1%. Although these are certainly long hours, 71.9% of respondents received more than 25 days’ holiday a year, a further 17.9% claiming 21 to 25 days’ holiday.
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40.6%
ONCE YOU HAVE THE MONEY, YOU GO ON THE SEARCH FOR PRESTIGE
The more you earn, the more prestige becomes important rather than remuneration.
EMPLOYEE SENTIMENT Employee sentiment has produced a mixed bag of results when compared to last year’s survey. The good news is that those looking to the future with complete confidence has risen from 45.3% to 51.6%. Almost 40% of respondents in 2009 said they felt less secure than they did six months before, but the 2010 survey has revealed that 15.2% feel more secure than they did 12 months ago. Interestingly, the number of people who are anxious over keeping their jobs has increased from 8.8% in 2009 to 12.5%. However, this was
The percentage of people earning $10,500 or more who would move for a more prestigious position
OCCUPATIONAL SENTIMENT (N=197)
I look forward to the future with complete confidence: 51.6% I feel more secure than I felt 12 months ago: 15.2% I feel less secure than I felt 12 months ago: 17.9% I am anxious about keeping my job: 12.5% I believe I will be made redundant within the next 6 months: 1.6%
A PALTRY 6.3% SAID THEY WERE COMPLETELY HAPPY July 2010 • Hotelier Middle East
I have already been told I will be made redundant: 1.1%
offset by a reduction in those who believe they will be made redundant in the next six months from 3.7% to 1.6% and a drop in those who have
already been told they will be made redundant from 2.7% to 1.1%. While 34.2% said they would leave their current job for a higher
salary, unsurprisingly this figure rose to 55.8% if you only look at those who thought their salary was below average for the region. www.hoteliermiddleeast.com
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Last year we put a spotlight on the GMs, but in 2010, sales and marketing gets deeper analysis. More than 80% of the sales and marketing respondents were below 40 years old and 50.1% came from either Lebanon, the UAE or Western Europe. Although 22.4% of all respondents registered an average monthly salary of $1500 to $3000, the figure was far higher for sales and marketing (43.8%). However, 31.3% of respondents said 0—5% of this remuneration was made up of commission and bonuses. Interestingly, while 19.6% of all respondents said they were completely happy in their current job, only 7.7% of sales and marketing respondents could say the same. Furthermore, while 33.2% of total respondents said they would leave their current job for a more prestigious position, a whopping 61.5% of sales and marketing respondents
SALARY SURVEY
SALES AND MARKETING IN FOCUS
said they would jump ship for the same reason. While 29.1% of all respondents expect a pay rise of more than 10% within the next year, 50% of sales and marketing respondents are looking forward to a significant rise in their remuneration. One thing is clear, those in sales and marketing roles are more optimistic than the group as a whole.
NUMBER CRUNCH
62.5% Of sales and marketing respondents who felt their monthly remuneration was below the global average
HME
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Hotelier Middle East • July 2010
37
When you look at the difference financial rewards make in sentiment, the findings would suggestion a fairly strong link between amount of pay and job satisfaction. No real surprise, but something employers should take note of, especially when you consider 19.6% of total respondents said they were totally happy in their current job and only 34.2% would leave their current job for a higher salary. However, when you focus on the respondents who earned less than $1500, a paltry 6.3% said they were completely happy, with 62.5% stating they would leave their current job for the higher salary. While 46.9% of those who were in the lowest pay category actually felt they were totally loyal (posting a five out of five rating), 68.8% felt their company only showed a rating of three out of five or less for loyalty to them. This negative view was 10.4% higher than the total respondents figure. For 70.2% of those earning $3000 or less, better training schemes were rated as extremely important or a
deal breaker when considering a move to another company. High on the agenda was pay, with 86.4% claiming the wage was extremely important or a deal breaker.
deal breaker. Only 68.8% put wages in the same categories of priority. Considering the cost of training, a balance between pay and happiness is key when tackling remuneration.
These figures are in direct contrast when compared with those who earn $10,500 or above a month – only 22.6% rating training schemes as extremely important or a
WHAT WOULD BE THE MAJOR DRIVING FACTORS IN ACCEPTING A NEW JOB WITH A DIFFERENT COMPANY? 2.13
Financial incentives (salary/cost of living)
1.85 3.03
Better training schemes
2.18 2.06 2.07
The reputation of the company
2.61
More professional respect
People earning more than US $10,500
2.09 2.48
Promotion prospects
2.11 2.48 2.32
More loyalty from employer
0.0
People earning less than US $3000
0.5
1.0
1.5
2.0
2.5
3.0
3.5
RATING AVERAGE (OUT OF 5)
OPTIMISM IS OFFSET BY A CONCERN OVER JOB SECURITY WHAT HAVE WE LEARNED? While raw data is not an answer in itself, trends can be observed. The hospitality industry is more optimistic about the future than it was a year ago, when people were uncertain as to how the economic crisis would develop. Yet this optimism is offset by a concern over job security. It is little wonder that people are more anxious, many having seen colleagues either made redundant or relocated. However, normal sentiment appears to be returning. Roughly the same percentage of people expect promotions and pay rises as they did in 2009. Whether or not they get them remains to be seen. Those who earn the least are looking for ways of improving their situation and have therefore placed a greater amount of importance on training, respect and remuneration. www.hoteliermiddleeast.com
Those who already earn a healthy monthly wage are not so concerned with training, although money still plays a part, but they are looking at the reputation of the company they would work for. It will be interesting to see if 2010 proves to be the year many believe it will be. But, for now, we will leave you with our favourite comparison. While 57.6% of respondents earning under $3000 would leave a job for a higher salary, only 12.5% of those earning more than $10,500 would do the same. However, 40.6% of people earning $10,500 would leave for a more prestigious position, while only 22% of respondents earning under $3,000 would move for the same reason. It would appear that once you have the money, you go on the search for prestige – happy hunting whichever you are chasing. HME Hotelier Middle East • July 2010
SALARY SURVEY
HOW THE MONEY MAKES A DIFFERENCE
F&B CONCEPTS
38
The CapeX Factor Students at The Emirates Academy of Hospitality Management went head to head last month in an F&B concept creation competition as part of their Design and Architecture module. Hotelier Middle East editor Louise Oakley joined the panel of judges to put the students through their paces – and realised there is a lot the industry can learn from this new generation of hoteliers REPORT t’s not only the singing, dancing and acting stars of the future that have to perform in front of their industry idols in order to see who has the ‘X Factor’. Sixty students from The Emirates Academy of Hospitality Management in Dubai went head to head last month as they competed in 14 teams to win ‘The CapeX Factor’, a competition which was designed to examine their prowess at understanding the process of creating a restaurant concept. The competition was part of the hospitality students’ Design and Architecture module, led for the first time this year by visiting professors Stefan Breg and Andrew
I
July 2010 • Hotelier Middle East
Shipley from Tribe restaurant creators. Tribe chief worrier Breg, previously a director of Hilton Hotel Group, has developed a wide range of concepts from coffee shops to fine dining. He has also held senior positions with Pepsi, InterContinental, Ernst & Young and Burger King. Meanwhile, Tribe chief medicine man Shipley has more than 20 years’ experience designing bars and restaurants, with his achievements including Havana, Salsa and Nico Central. Each team of students received the same brief from the Tribe leaders – to create a capital application and live presentation for a restaurant concept that would replace Seasons, a failing hotel-based outlet located in the fictional city of Doobi Darbi. The relevant market infor-
mation was provided to the students, who then had just two working days to create their concept and prepare their ‘Dragon’s Den’ style pitch for funding from a board of investors – the judging panel. In the world-famous singing competitions shown on our TV screens every year, the shortlisted ‘students’ or wannabe popstars have a natural gift. Those caterwaulers we are subjected to in the early auditions are never going to become the next big thing. This is where The CapeX Factor differs, however, and it is why Breg and Shipley wanted to add the challenge to the module. Too often at hospitality management schools, students are given the impression that concept creation is “some kind of mysterious art or craft that only some people have, some-
thing you’re born with,” says Breg. “No you’re not,” he asserts. “You can learn the process. I can remember in my early days as an F&B director in one of the hotel chains going to project meetings and being completely mystified by some of the terminology and the process. So I was completely unprepared and I believe there are a number of professionals in the same situation. “So what I hope we’ve done is create a group of 60 people that understand at least the fundamentals of it and the key learning points — it is a science. Some elements are gut feel, but when you make it only gut feel you are in trouble,” says Breg.
KEY LEARNINGS The students were required to submit an eight-page capital paper to www.hoteliermiddleeast.com
39
The judges included (clockwise from back left): Jihad Hazzan, general manager, Faran LLC, representing hotel owners Klaus Assmann, general manager, Venu Hotels, Stefan Breg, chief worrier, Tribe H.Peter Drescher, vice president of food and beverage – Middle East and Asia, MÜvenpick Hotels & Resorts Fahed Srour, chief operations manager (retail), Al Khaja Group Andrew Shipley, medicine man, Tribe
their professors ahead of the 15 minute presentations, which were followed by Q&As from all the judges. In this time the students had to cover the market competition, gaps in the market, guest profile, the name and the theme of their restaurant, the cuisine and menu, the design and feel, how they would market it, risks
Visiting professor Stefan Breg scored each participant separately for their coursework in addition to the judges’ scores for the teams. The winning team bagged a meal at Frankie’s in Dubai courtesy of RMAL Hospitality.
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for saying they would use adverts, facebook and radio for example. One of the judges, Fahed Srour, chief operations manager (retail) at the Al Khaja Group — which operates brands such as Hatem and Glorai Jean’s Coffees — estimated that 15-20% of the cost of creating and opening the restaurant should be dedicated to marketing, but the teams allocations varied from a few thousand dirhams to four million. The other key talking point among the judges was the use of technology in several concepts. A third of the teams focused on technology quite heavily and some were quite successful (see Vostro and Tah Chi below). Disappointingly though, says Breg, while many opted for the use of iPads and touch screens “because young people like that�, they were not able to prove or establish an acceptance of technology front of house. One example given was Inamo in London, which has
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www.hoteliermiddleeast.com
Hotelier Middle East • July 2010
F&B CONCEPTS
THE CAPEX FACTOR JUDGES
and contingencies and financials, from refurbishment costs to when they would make a return on investment. “What they invariably got right was the understanding of the target market, the importance of relating a concept to the people in a market and the potential market that was there,� says Breg. “They got the operational viability fairly right as well.� What was lacking generally, was an understanding of the risks and contingencies. “They listed risks, from terrorism to plague, but they didn’t really say what the likelihood of those risks occurring was or what the necessary actions you could take to resolve those particular issues were,� comments Breg. Another weakness noted by the judges was the attention to marketing. Some marketing budgets were small, other huge, but none really specified what would be done except
Most original: Team Ivory Coast for Tah Chi.
F&B CONCEPTS
40
The judges – or capital committee – pile on the
MLA Black Box Culinary Challenge Aspiring chefs at the Emirates Academy were also busy last month as they competed in the Meat & Livestock Australia Black Box Culinary Challenge 2010 against 15 of Dubai’s top hotels and resorts. Yet again, the students didn’t disappoint, scooping the Best Main Course Award and first runner up, beaten only by The Address Downtown Dubai. In total, 60 chefs took part in the challenge, which involves a cook-off using a ‘black box’ of mystery ingredients, including Australian beef and lamb, provided to them a day in advance. In the live competition, the teams then have one hour to produce four courses: appetizer, soup, main course and dessert. Every entry was judged by a panel of nine, with the team obtaining the highest total mark announced the overall winner.
interactive table tops designed for ordering food and playing games with other diners, but this has received mixed reviews. “For them to say it works in one place out of 20,000 restaurants in London and that people love technology isn’t enough – we need them to tell us how to make technology appealing in a more universal way, how you get from gimmick and gizmo to experience, because that’s quite a leap,” says Breg.
pressure.
judge, who had to mark the teams out of 10 in 10 different categories, were added up. Overall, the winner was Team Portugal, which had created Vostro Ristorante Italiano. The team consisted of Olga Sadikova, Immanuela Kalangie, Ibrahim Bashir and Arturo Maturan Jr. Their aim was to create a fun, casual setting and provide “global comfort food” with an average cheque of AED 150 (US $41). Highlights included their own herb garden, a loyalty programme and the introduction of modern technology — the team’s plan was for their guests to use ipads to order their food. Popular with all the judges, Breg said the concept won because “they had the most achievable return and the most achievable profit”. “They had the most modest payback, they had five-year pay back — most people here would say get lost — but they won simply because it was achievable and it was relatively low risk and it may well be that this market that we described, Doobi Darbi, needed a low risk concept,” he observes. “The other teams had higher risk concepts, higher capex, and more ambitious plans but none of them were able to match the concept to the user groups — or tribes as we call them — and prove to us that those user groups or tribes would be interested in it. So the safe bet won,” says Breg.
MOST ORIGINAL WINNER A SAFE BET After all 14 teams had presented their concepts, the scores of each July 2010 • Hotelier Middle East
While the core aim of the challenge was to teach the students the processes involved in creating an
so F&B outlet, Breg and Shipley also wanted to recognise the most original concept. This went to Tah Chi, created by the Ivory Coast team comprising Krishna KC, Chimo Chomoche, Dennis Jorgansen, Roshan Liyanage and Suzanne Lee. Technology was at the core of their restaurant design, which featured interactive tables. “They won on originality because they were boldest, about four or five of the 14 groups had technology as one of their strong features,” says Breg. “They won it because they were bold enough to push it and there were elements of it that were interesting. I liked the loyalty programme, I liked the fact the system was not only a service enabler or service facilitator, but it also collected data about people and remembered what meals you had, and upsold to you automatically; it was more proactive than a facility. That’s why they won.”
INDUSTRY IMPLICATIONS So, what can the industry learn from these bold, bright students? The judges were all impressed beyond expectation with the passion, dedication and creativity of the students. Most of all, they were conscious of the need for hoteliers to sit up and take notice of the younger generation, in particular when it came to the use of technology. The consensus was that as this is what we are being told is popular with those in their 20s and 30s, considering the young population of many countries in the Middle East, this is something that should at least be trialled. Hotels are cur-
rently experimenting with the use of more technology in the front office, equipping concierges with iPads for example, but has it been tried in restaurants and bars? Obviously not all outlets would be vehicles for this — in many, guests expect the
TOP 5 TIPS FOR MENU CREATION Chef H. Peter Drescher challenges the students.
Renowned chef and Mövenpick Hotels & Resorts vice president of food and beverage – Middle East and Asia H.Peter Drescher, one of the judges, says the five factors that have worked best for him when creating a menu are: Consider the location. Stay away from very elaborate descriptions.
Don’t add dishes to the menu that only you know how to cook.
Know who you are cooking for.
Display cultural sensitivity.
www.hoteliermiddleeast.com
human touch of the waiter — but in some more casual outlets in trendy locations perhaps a self-ordering system achieved through top of the range, attractive technology would be viable. The investment in technology could well be offset by the reduced head count needed to operate the outlet.
And moving from the fictional market of Doobi Darbi to its real life inspir a t i o n s , Abu Dhabi and Dubai, what gaps in the market did the judges see in the emirates? MÜvenpick Hotels & Resorts vice president of food and beverage — Middle East and Asia H.Peter Drescher said he sought more area-specific restaurants offering authentic foods and beverages from specific regions,
where the ambiance and dĂŠcor was all authentic too. “I think we experience a lot of compromises in restaurants, they are trying to please everyone. The key is authenticity and hiring the people who have their hearts and souls in it,â€? says Drescher. Breg agrees, but warns of the limits in this region of claiming a cuisine is authentic when the staff are not. “You can’t have authentic Italian
when it’s delivered by people from a different continent altogether. “I think the days of fusion have had it,� he adds. “As far as I know there is not a country called fusion you can recruit from.� The biggest danger, however, is the risk of over promising. “If you’re going to name something, deliver it,� concludes Breg. And if students can do it, let’s hope professionals follow suit! HME
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Hotelier Middle East • July 2010
41 F&B CONCEPTS
eva, interior designer at DWP UAE Judges Klaus Assmann of Venu Hotels, Elena Dikar le East, score the submissions. Midd ier Interiors, and Louise Oakley, editor of Hotel
Makkah Clock Royal Tower — A Fairmont Hotel.
SAUDI ARABIA
Holy hosts Why Saudi Arabia needs to put Makkah and Madinah firmly on the map
COUNTRY UPDATE audi Arabia’s holy cities of Makkah and Madinah are unique in the hospitality real estate market, benefitting from unlimited visitor demand from the world’s 1.8 billion Muslims. Saudi Arabia itself, which relies heavily on domestic tourism, has a population of 27 million. For this reason, Jones Lang LaSalle (JLL) recently conducted an in-depth report into the two markets — entitled Holy Cities: Saudi’s Unique Real Estate Markets — in an attempt to forecast their future potential and redress the imbalance that has arisen as a result of the focus to date on property and tourism in Riyadh and Jeddah. Although the latter cities are far larger, the religious significance of Makkah and Madinah as custodians of the Holy Mosques in Islam, far outweighs their size, assert the authors. According to JLL senior vice president Chiheb Ben-Mahmoud, the Saudi authorities have ramped up efforts to develop the cities in order to better manage the demand for accommodation, which has in turn seen interest from hoteliers grow.
S
www.hoteliermiddleeast.com
“The Saudi authorities are backing an unprecedented effort to improve the conditions of safety and comfort for Hajj and Umrah visitors, while increasing the capacity in the Holy Cities of Makkah and Madinah to allow more visitors. This has created opportunities for investors attracted by the corresponding risk-return proposition,” says Ben-Mahmoud. Currently, 7.8 million Muslims per year visit Makkah and Madinah for either Hajj or Umrah, according to JLL, which forecasts that this could almost double to 13.75 million by 2019. While the Saudi Committee for Tourism and Antiquities (SCTA) is encouraging pilgrims to stay for longer breaks through its ‘Umrahplus’ strategy, it is important to bear in mind that these forecasts are conservative, taking into account the current restrictions set upon visas for Hajj and Umrah by the authorities. Deloitte’s analysis of the hospitality market in Saudi Arabia also high-
43
lights the holy cities and the predicted growth of pilgrim visitors. Dr Costas Verginis, a director in consulting at Deloitte Middle East, says: “Religious tourism is expected to grow with Umrah visitors being the fastest growing segment. There are many hotel developments in all the major cities, the most exciting market, however, is Makkah, where several large projects, such as the Jabal Omar Development, are underway”. Another exciting development in Makkah is the Abraj Al Beit project, expected to be thrown into the limelight this year with the launch of Fairmont’s Makkah Clock Royal Tower, which will be followed by sister properties Raffles and Swissötel — bringing in 2600 rooms in total — as well as the Mövenpick brand. According to JLL, the total hotel stock in Makkah, which currently stands at 50,000 rooms, could double over the next 10 years, while in Madinah, 3000 rooms are expected to be
THE MOST EXCITING MARKET AT THE MOMENT IS MAKKAH, WHERE SEVERAL LARGE PROJECTS, SUCH AS THE JABAL OMAR DEVELOPMENT, ARE UNDERWAY
added to the existing stock of 20,000 rooms in the next three years. In total, Makkah and Madinah are currently home to nearly 59% of Saudi Arabia’s entire hotel room inventory. However, the issue is not the number of rooms necessarily, but the quality. JLL estimates roughly only 5% of existing rooms to be of international standard quality, hence the support for projects such as those by Fairmont Raffles Hotels International. Further hotels are set to follow (see upcoming properties chart), but there is little clarity yet on what is most needed – luxury hotels, budget hotels
Dr Costas Verginis, director in consulting at Deloitte Middle East: religious travel to grow. Hotelier Middle East • July 2010
SAUDI ARABIA
44
SAUDI ARABIA’S UPCOMING PROPERTY PIPELINE Property
Rating
Rooms
Swiss-Belhotel Sharma Resort & Spa
****
54
Movenpick Hotel Riyadh
*****
445
Movenpick Hotel Al Waha
*****
Makkah Clock Royal Tower, a Fairmont hotel
*****
Raffles Makkah Palace
*****
Swissotel Makkah
*****
Premier Inn Riyadh North
***
Four Points By Sheraton Mall of Arabia
****
Aloft Riyadh Four Points by Sheraton Dhahran Hilton Al Khobar Hotel and Residence
S
A
R
V/C
100 36
850 217 1574
* Approximate number of rooms
Company
Brand
Swiss-Belhotel International
Swiss-Belhotel
Opening 2012
Movenpick Hotels & Resorts
Movenpick
2011
Movenpick Hotels & Resorts
Movenpick
2011
Fairmont Raffles Hotels International
Fairmont
2010
Fairmont Raffles Hotels International
Raffles
2010
Fairmont Raffles Hotels International
Swissotel
2011
Premier Inn Hotels Middle East
Premier Inn
2012
300
Starwood Hotels and Resorts Worldwide
Four Points
2012
****
225
Starwood Hotels and Resorts Worldwide
Aloft
2013
****
236
Starwood Hotels and Resorts Worldwide
Four Points
2013
TBA
250
Hilton Worldwide
Hilton Hotels
2013
Wyndham Hotel Group
Wyndham Hotels & Resorts
2011
Wyndham Hotel Group
Wyndham Hotels & Resorts
2011
Rezidor
Radisson Blu
2012
142
150
Wyndham Riyadh
*****
194
16
Ramada Makkah
*****
458
296
Al Madinah Paradise Radisson Blu Resort
*****
212
15
Al Diyafa Park Inn Makkah
***
221
13
Rezidor
Park Inn
2012
Al Diyafa Radisson Blu Hotel Makkah
*****
256
21
Rezidor
Radisson Blu
2014
Park Inn Riyadh
****
240
7
Novotel Dammam Business Park
****
158
21
Mercure Al Khobar
****
Golden Tulip Al Madina Golden Tulip Dar Al Khalil Makkah Golden Tulip Suites Breida, Al Qasim
****
Golden Tulip Sand Rose
****
Kempinski Hotel Burj Rafal, Riyadh
*****
Kempinski Hotel, Jeddah
*****
250
Corp Jeddah
***
Corp Al Khobar
***
Corp El Hasa
38 10
Rezidor
Park Inn
2013
Accor
Novotel
2010
160
Accor
Mercure
2010
****
190
Golden Tulip Hospitality Group
Golden Tulip
2010
****
576
Golden Tulip Hospitality Group
Golden Tulip
2010
Golden Tulip Hospitality Group
Golden Tulip Suites
2010
48
Golden Tulip Hospitality Group
Golden Tulip Suites
2010
300
Kempinski
Kempinski
2012
Kempinski
Kempinski
2012
600
Hospitality Management Holdings
Corp
2011
265
Hospitality Management Holdings
Corp
2011
***
50
Hospitality Management Holdings
Corp
2011
Corp Dammam
***
40
Hospitality Management Holdings
Corp
2011
Corp Riyadh Mansour
***
110
Hospitality Management Holdings
Corp
2011
Coral Dhahran
*****
153
Hospitality Management Holdings
Corp
2010
71
71
Coral Jubail
****
108
Hospitality Management Holdings
Corp
2010
Corp Jubail
***
70
Hospitality Management Holdings
Corp
2011
Coral Al Hamra
****
70
Hospitality Management Holdings
Corp
2010
Corp Al Batha
****
123
Hospitality Management Holdings
Corp
2010
Coral Jeddah
****
70
Hospitality Management Holdings
Corp
2010
Crowne Plaza Riyadh ITCC
TBA
326
InterContinental Hotels Group
Crowne Plaza
2012
Crowne Plaza Madinah
TBA
502
InterContinental Hotels Group
Crowne Plaza
2011
Crowne Plaza Olaya
TBA
308
InterContinental Hotels Group
Crowne Plaza
2012
Holiday Inn Jeddah, Airport District
TBA
148
InterContinental Hotels Group
Holiday Inn
2011
Holiday Inn Jeddah Red Sea Palace
TBA
277
InterContinental Hotels Group
Holiday Inn
2011
Holiday Inn Express Jeddah Medinah Road
TBA
252
InterContinental Hotels Group
Holiday Inn Express
2011
Holiday Inn Express Jeddah King Abdullah Economic City
TBA
183
InterContinental Hotels Group
Holiday Inn Express
2011
Holiday Inn Express Madinah Knowledge Economic City
TBA
140
InterContinental Hotels Group
Holiday Inn Express
2011
Staybridge Suites Riyadh Olaya
TBA
107
InterContinental Hotels Group
Staybridge Suites
2011
Key: S = Suites | A = Apartments | R = Residences|V/C = Villas/Chalets
For a full list of upcoming properties planned for the Middle East, visit www.hoteliermiddleeast.com
July 2010 • Hotelier Middle East
www.hoteliermiddleeast.com
45
WIDENING THE SCOPE
Fairmont Makkah Clock Tower: to open 2010. and furnished hotels are all on the cards for the cities. Ben-Mahmoud observes: “Summarily, in the holy cities of Makkah and Madinah, leading international operators are competing to deploy their most prestigious upscale brands on the future hospitality projects. The extent to which the brands are in line with the current and future demand profile remains an open and highly interesting question. “On the other hand, the conventional budget hospitality concept does not provide a straightforward or relevant alternative. The optimal hospitality model in the Holy Cities is yet to be reached in a context where inves-
While the development of hotel stock in the holy cities is positive, experts are keen to point out that the growth of religious tourism in Saudi Arabia should not be done at the detriment of other sectors. One of the biggest challenges in attracting visitors to Saudi Arabia, according to Ben-Mahmoud, is image. “Saudi Arabia, as a destination, is somehow victim of its “Holiness”. Hajj and Umrah themselves have always been associated with trade and cultural interchange. Therefore, nothing prevents the serious and sophisticated traveller from enjoying the Saudi culture and sites, the cultural diversity of the country outside obviously Makkah and Madinah, which are restricted only to Muslims. “Makkah and Madinah are of paramount importance for Muslims. This does not mean that the Kingdom
of Saudi Arabia is limited to Makkah and Madinah,” says Ben-Mahmoud. Indeed, an offshoot of religious tourism is heritage tourism, he adds. “The sites are numerous: Madain Salah, a UNESCO heritage site, long overshadowed by Petra but also all the sites in relation with the birth of Islam, before the Islam heritage became associated with Damascus, Cairo, Kairouan, Granda etc. The SCTA is here again in the process of re-identifying these sites and putting them back in the public domain as well as promoting the concept of ‘heritage hotels’,” reveals Ben-Mahmoud. Existing operators have also noticed a shift in visitor trends, as Peter Finamore, managing director of Rosewood’s Al Faisaliah Hotel and Al Khozama Hotel explains. “We are fortunate as time moves on, to see the loosening up of the availability of visas. We are hoping that, with the STCA taking significant forward initiatives now, to see more of the traditional tourism beginning to occur in KSA,” says Finamore.
Verginis adds: “It is anticipated that visitors will increase as the economy becomes more diversified. “The Saudi Commission for Tourism and Antiquities is working hard to further develop tourism in the Kingdom through initiatives such as new visa regulations.” It is the sum of these factors that will be necessary to ensure continued investment into Saudi Arabia’s hotel industry. As Ben-Mahmoud concludes: “There is a combination of factors related to both Hajj and Umrah travel as well as to business and leisure travel [which impact investment]. All factors come down to a simple fact: The Kingdom of Saudi Arabia is up for business and is moving forward big time”. HME
To find out more about the holy cities of Makkah and Madinah in Saudi Arabia, visit www. joneslanglasalle-mena.com and go to the Research tab to download the report entitled Holy Cities: Saudi’s Unique Real Estate Markets.
Dubai Office: Tel. +9714 3493017 E-MAIL: gloster@eim.ae
www.hoteliermiddleeast.com
Hotelier Middle East • July 2010
SAUDI ARABIA
tors and the Saudi authorities are challenging, each in their own way, the conventional ideas and visions.”
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Hip hotels launches music service ANNOUNCEMENTS Collection comprises 10,000 licensed tracks to suit “every mood for every hour” AMBIENCE Founder of the ‘Hip Hotels’ brand, Herbert Ypma, has launched a bespoke music service so hotels can “sound as good as they look”. The Hip Hotels Music service uses a collection of 10,000 licensed tracks – each picked by specialist music consultants and then assigned into one of nine music categories – in a bid to ensure that “every mood, during every hour, in every corner of the hotel is provided for”. Herbert Ypma said: “With Hip Hotels Music, what you hear is as exclusive and interesting as what you see. The music is chosen to reflect the design elements that have gone into a hotel. It’s not about pop music, compilation CDs or favourite tracks staff decide to play – it’s about the music guests would want to listen to and would expect to hear from a ‘hip’ hotel”. With Hip Hotels Music, hoteliers can custom-create a music policy to “reflect and reinforce the unique
Hip Hotels Music has been created to reflect and reinforce a hotel’s unique character and design elements.
character behind their venue”, which according to Ypma is important for a hotel’s sensory branding. “Hip Hotels Music is the antidote to the ‘one music fits all’ policy. It has been designed to reject the notion of standardisation, acknowledging that your hotel is an original in its own right – and this should be reflected with a bespoke music strategy. It echoes the same philosophy of individualism that first inspired
the creation of the Hip Hotels book series 11 years ago,” he added. From a multi-zone music player, hoteliers can simultaneously play different tracks across the designated areas where they want music to be heard. Hip Hotels Music is the latest extension in the Hip Hotels series, which produces travel books, magazines, a photo library and website in its travel portfolio.
First place prize for pop-up hotel Design firm WATG wins radical innovation award Destination design firm WATG has won first place in the Radical Innovation in Hospitality competition for its entry Mosaic. The award, which was founded by the John Hardy Group and cosponsored by Hospitality Design, recognises ingenuity in built or unbuilt hospitality concepts. The John Hardy Group chief executive officer John Hardy commented: “It was a unique submission that not only offered a new approach to hospitality develop-
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ment, but also provided a useful solution for housing needs for special events and disaster situations”. The Mosaic Portable Adaptable Temporary Hotel With Alternative You-ses (PATHWAY) allows governments, hoteliers, private organisations and charities the opportunity to create pop-up shelter and support structures which have a range of uses from emergency shelter to vacation housing. WATG invented Mosaic to be entirely flexible, comprised of
Mosaic PATHWAY: the ‘unique submission’ won this year’s Radical Innovation in Hospitality competition.
individually configured, modular prisms, outfitted as needed as spas, salons, guestrooms, mini-homes or tented villas. This is the fourth year in a row that WATG has been a finalist in the competition. The design team this year comprised Jerod Costner, Karen Mitri and Krystal Solorzano.
Pacific Direct adds new partners Pacific Direct, a provider of luxury amenities to upscale hotels and cruise liners, has announced the appointment of two third party manufacturing partnerships with Hunter Amenities and Kato Aromatic. Pacific Direct chief executive officer George Allan said: “These additions fit perfectly with our objective of expanding our global reach and bringing the production of products closer to our in-market needs.” Pacific Direct will now widen its existing manufacturing portfolio of two fully owned factories in China and Czech Republic that currently support the global business in successfully delivering to 110 countries. “As we look to broaden our business in these two key regions, our new third party manufacturing partners will improve our speed to market and help us to build our long term relationships with regional and global customers,” Allan added. Singapore furniture fair expands Plans for the International Furniture Fair Singapore 2011/28thASEAN Furniture show (IFFS/AFS 2011) are underway, with new show Hospitality Asia 2011 making its debut colocated within IFFS/AFS 2011. IFFS Pte Ltd chairman and Singapore Furniture Industries Council president Andrew Ng said: “We are confident Hospitality Asia 2011 will be able to satisfy the needs of the sector and help bolster Singapore’s efforts to become a premier MICE destination hub in Asia.” The show, which will be held on March 9-12 2011, aims to showcase the latest product lines and developments in hospitality and contract furniture, furnishings, fittings, and more. One hundred and fifty exhibitors are expected to take part in Hospitality Asia 2011, bringing the total number of expected participants at next year’s IFFS/AFS 2011 to more than 700.
Hotelier Middle East • July 2010
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Airstar Middle East owner Hicham Lalmi discusses the power of perfect lighting, the challenges of selling in the region and Jackie Chan’s involvement in the lighting balloon business COMPANY PROFILE riginally founded in France, Airstar was brought to the region by Hicham Lalmi, owner of the Middle Eastern branch of the company. A manufacturer and distributor of lighting balloons for events, safety lighting and signage, Airstar Middle East was launched in 2001, although Lalmi says that the regional market was not initially receptive to the Airstar concept. “I have been here for seven years now, and it was very hard for the first four years. It is picking up now; for example we are doing a lot of business with the Atlantis and they have been very professional and very keen on the products. We did the lighting for ‘summer nights’ last year at the aqua park and we are doing it again this year,” Lalmi says. While business is picking up now, Lalmi feels that there is a lack of understanding about the power of lighting products. “I have some customers who are very receptive to what I tell them and some who are not,” he says. “It is very hard for them to imagine what a lighting balloon can do for them and the added value it can bring. Most of them are frightened by the prices from the begin-
O
COMPANY INFO NAME: Airstar ESTABLISHED: In 1994 BACKGROUND: Founded in France with only two employees; Airstar began with the launch of the lighting balloon ‘Lunix’, which won an award for technological innovation and is now represented in more than 40 countries around the world.
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BEST SELLERS Hicham Lalmi says the Airstar lighting balloons create a pleasant and aesthetically pleasing lighting solution.
ning, but this is because they do not understand the positive effect the product can have. With an outdoor function, most people will light with spots that are very aggressive, and we have a very elegant solution with a powerful output that can be dimmed. It is very pleasant and aesthetically pleasing.” In addition to the challenge of marketing the product, Lalmi says that business in the region can be dictated by the climate. “Most of our work is very seasonal — it goes from October to May or June, and then in July and August I am out of the country because there is not much happening here. “During these months, I prepare the season and I receive enquiries from people who are also preparing themselves for the coming season.” The lighting solutions have proved popular with a range of busi-
nesses from hotels and events teams to security companies. “Around 40% of our business is hotels and 60% is made of event companies and other markets including security, corporate events, and military applications,” says Lalmi. The products have also proved popular with the entertainments industry following James Cameron’s use of the lighting balloons in award winning film Titanic. “We were propelled in to the limelight when James Cameron saw our product. In the motion picture industry we are very well recognised by all the major production companies,” Lalmi adds. “We are now planning a manufacturing plant in China in partnership with Jackie Chan. He saw the product, liked it, and approached us, so we worked together and then
One of the best-sellers in the Middle East is The Crystal balloon. It is easy to set up and very efficient. The product is an air filled balloon mounted on a telescopic stand that can light up an area of 1000m². It is a very powerful balloon and can also be dimmed. It requires one power point and takes about 15 minutes to set up, which makes it very popular with hotels for their outdoor functions.
we came up with the office where he is now a shareholder.” And looking to the future, Lalmi insists that the company’s creative nature is what will keep customers coming back. ”We release new products every year and we always innovate. We also take orders from customers to design to their specification so we are launching new products annually and doing custom-made products too,” Lalmi adds. HME Hotelier Middle East • July 2010
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Top Table
From practicality to lasting beauty, tableware suppliers share their visions of the perfect table-top
RENARTE Renarte chief executive Ranjan Salis says that the trend in tableware is leaning towards traditional and elegant pieces, which have a modern twist. “Trends in tableware are still based on plain whites with eclectic shapes, although in some cases the design of chinaware and flatware hinges on the outlet concept,” Salis says. With tableware clearly an essential element in any hotel’s and food and beverage outlets, Salis says that basic items such as chinaware,
SALIS TALKS NEW PRODUCTS We have just launched a new wine Aerator called Vinturi, our banqueting product manufacturer SKS has just launched its new range of plastic tables called Evolite and in chinaware, Schonwald has just launched a very elegant design called Grace.
glassware, flatware and hollow-ware remain the most important items as they are used by all guests. “You cannot operate a restaurant without them,” he states. But the tableware items which fall under the category of accessory rather than necessity are still popular, Salis maintains. “Our best seller is the Chilewich tablemats; their periodic innovative designs, ease of use, and longevity make this product a must-have for all hotels and restaurants, new and old,” he asserts. However, with the financial crisis having had a profound effect upon the hospitality industry, Salis says that the tableware segment was not immune to this and was directly impacted by cuts made in the hotel industry.
“Durability, simplicity and cost efficiency in initial purchase as well as repeat orders are the main drivers behind most tableware decisions. Chain hotels that used to have corporate agreements or preferred vendor status for many Euro-based tableware brands have opened up their doors to Dollar-based products gradually,” Salis says. “Business has definitely been affected. Having said that, it is not so bad that anyone needs to panic. As far as we are concerned, we still get our market share given the fact that we have supplied many pre-openings in the past few years. As regards the crisis, I would call it a correction; it would have been impossible to sustain the growth UAE experienced if this construction frenzy continued,” he adds.
TRENDS IN TABLEWARE ARE STILL BASED ON PLAIN WHITES An innovative Guy Degrenne product from Renarte.
A.RONAI A.Ronai was established in 1947, supplying the Middle East with British-manufactured products. Today, it is a well-known specialist hospitality supplier with offices in the UK, UAE and Bahrain. A.Ronai managing director Gavin Dodd says that hotels are beginning to move away
DODD’S BEST SELLERS Our best seller is Spyro. It is a new twist on an industry standard – a white relief or embossed shape – its unique spiral embossment creates an optical illusion of varying depth of relief that catches the light beautifully to enhance food presentation. It has been our fastest selling product of its type, with success in all corners of the world.
from the traditional perception of tableware. “Since this market is so driven by new and exciting concepts, hotels are constantly looking for the next new thing,” Dodd says. “Hotels no longer want traditional crockery and cutlery for their speciality outlets. White products remain the first choice of many chefs, although colour is definitely making a comeback in more casual dining where sharing dishes feature strongly — such as with mezze and tapas.” Dodd believes that the trend towards modern tableware has made some of the more traditional elements of dining less important. “Tradition has stated that all tableware items are essential but you can see from some of the new contemporary restaurants that side plates are becoming less essential. Diners are even eating their main courses from slate and glass, so it would be fair to say that no tableware item
Hotels guests interact with cutlery.
COLOUR IS MAKING A COMEBACK is essential anymore,” he states. What is essential, he adds, is for hotels to
be able to be creative and innovative in their choice of tableware. “Along with glassware and cutlery, chinaware is the product that a hotel guest interacts with most, it offers the most opportunity for individuality of all tabletop items and showcases chefs’ creative flair to generate a wow factor for the guest and added value for the operator,” Dodd asserts.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 421 8475.
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Hotelier Middle East • July 2010
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CHURCHILL CHINA PLC Churchill China is based in the UK, with a heritage stretching back over 200 years to 1975, and is listed on the London Stock Exchange. The company has been accredited ISO 4001 for its continual environmental policy and supplies many hotels and restaurants across the Middle East. Export business development manager Glenn Ewart believes that being able to offer customised tableware products is important. “Trends are being lead by the Middle East with personality and an outlet’s own stamp being important, so offering a bespoke service for individuality is key,” he says. As a result, the use of colours and small bowls for tapas, Asian and sharing cuisine is growing. “This is reflected in our new launches, which pull in other mediums such as wood,” says Ewart. Although Ewart cites individuality as an emerging trend in the tableware market, he
feels that it is important to keep things simple and not overdo the detail. “The most requested ranges currently are stylish elegant white items that let the chef create beautiful cuisine without the plate detracting from the dish— the plate really adds to the experience of cuisine as we all eat with our eyes first, and a plate needs to be the perfect canvas to let the chef express their creativeness,” Ewart adds. But though it is important to be creative, Ewart believes in the importance of business; the secret to which, he says, is making your presence known. “The challenges of the region are that you need good partners to represent your brand and you have to be here regularly. Many export companies believe they can visit once then sit back and expect orders to come in,” Ewart says. “We have continually supported the region with sponsorship of chef competitions, the Emirates Culinary Guild, awards and spend a
THE MOST REQUESTED RANGES CURRENTLY ARE STYLISH ELEGANT WHITE ITEMS THAT LET THE CHEF CREATE BEAUTIFUL CUISINE WITHOUT THE PLATE DETRACTING FROM THE DISH
Churchill China: keeping things simple.
huge amount of time working directly with the end user to understand their needs. We have great partner companies across the region that
WHAT THE FUTURE HOLDS Over the next six months Churchill will be at the forefront of the tableware industry with new product launches — there will be an authentic Asian range, a beautiful bone china range, exciting shapes, and great designs across the entire brand. Over the next two years, the company is planning to launch more than 200 new lines so is concentrating on future developments.
brands. The difference now is that they may compromise on the quantity of the product but not on the quality. So we have seen a cut down in the re-order or replenishment of business from existing hotels,” Muhammed states. “So far business has been good this year; we had achieved better than expected results in first half of 2010, but looking at the second half of 2010 is challenging, we hope that business will accelerate by the last quarter.”
ABRAO Abrao Trading LLC is the Hospitality supplies division of Abrao Group of Companies. Established in 2007, the Hospitality Supplies division is based in Dubai and offers products which range from crockery and glasses to buffet display equipment. Abrao general manager Zia Muhammed believes that variety is very important when it comes to tableware, as it is an area where hotels and restaurants can set themselves apart from the crowd. “Unlike in the past, where customers used to select chinaware from catalogues of specific brand names based on the decor of the restaurant, today’s customer is clearer on what
are vastly experienced and understand the needs to the customer — this is key to any success,” he adds.
they need as they work more closely with the designer who may have certain key factors such as the shape and colour or storage of a product in mind,” says Muhammed. “Moreover, in this market, with so many hotels opening each year, it has become imperative that each hotel has its own style or concept which is different from the rest. We see a lot of custom-made requests for table tops.” And Muhammed is keen to point out that the tableware business has a certain level of resilience to the global financial crisis. “The tableware business has not really been affected by the crisis. We still have new hotel openings and operators are buying the reputed
COMING UP Krosno SA created a collection of 11 handmade mini-glasses, seven lines of mechanically-formed glasses, 19 carafes and decanters, and three lines of stemless glasses. These offerings reflect the full range of Abrao products from the top-class “super premium” through to the medium-class and the massproduced glassware.
IT HAS BECOME IMPERATIVE THAT EACH HOTEL HAS ITS OWN STYLE OR CONCEPT WHICH IS DIFFERENT FROM THE REST The Vinoteca glass from Abrao is stylish and elegant.
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July 2010 • Hotelier Middle East
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ARC INTERNATIONAL Arc International, the producer of Arcoroc and Chef and Sommelier, began manufacturing in 1825. In 2004, the family-owned business enhanced its presence in the Middle East by establishing a factory in the UAE. Arc International food service manager Alisdair Wilcox feels that practicality is key when considering the type of tableware to use in hotels and restaurants.
WILCOX’S PICK Our best performing drink ware line is our Cabernet Stem glass range. Not only is it a classic design but being in our advance material Kwarx it has all the associated benefits such as enhanced chemical and mechanical resistance, while retaining its transparency and brilliance to give an all round quality product.
“By nature of our location we take the influences both from the West and East,” Wilcox says. “What we are seeing is clearly a move from the bigger, better mentality to a more practical approach. Customers are now looking at products that offer a multi-usage solution; glasses that can be used for drinking, food or decoration, dinnerware that can be adapted for any cuisine and any meal period.” “Apart from being essential as the means to serve food and beverages, tableware can change the whole meal experience. As can be seen over the years, tableware is being used as an extension for the chefs and sommeliers to present the culinary experience,” he adds. With tableware becoming a means of expression, Wilcox believes it is important to provide a range of new products to give hotels and restaurants more choice in their tableware. “We launch our new products at the beginning of the year, and innovation is
Arc international is influenced by the East and West.
TABLEWARE CAN CHANGE THE WHOLE MEAL EXPERIENCE something we are proud of throughout our brands,” he says. “Launches this year included our brand new material Zenix where we have come up with an elegant and functional dinnerware that shows why Arcoroc is synonymous with quality.”
VILLEROY & BOCH Founded in 1784, Villeroy & Boch is a European brand which operates in 125 countries. The company’s international business is focused on the growing commercial-business sector, equipping hotels and holiday apartments. Burkhard Schmidt, head of sales, Villeroy & Boch Hotel and Restaurant Division says: “In the tableware sector we offer complete, harmonious solutions in a variety of different styles, as well as compatibility with style and standard of the hotels.” “We use diversified materials — from fine bone china to extremely hard-wearing and robust ceramics. Moreover we regard individual requirements and wishes of
PRESENCE IN THE MIDDLE EAST Today Villeroy & Boch identifies the Middle East as one of its strategic growth markets and has invested heavily in new shops, facelifts of existing shops and additional points of sale at retail partners. With a two-digit growth rate in 2007 and 2008, the company achieved a leading position in the Middle East.
Elegant tableware from Villeroy & Boch.
customers, architects and planners to create very individual solutions for hotels.” Stressing the value of the right tableware to hotels and food and beverage outlets, Schmidt feels that using simple tableware products can create something beautiful. “Tableware is so important because it brings the food and the customer into contact. The chef needs a perfect support for his artwork and Villeroy & Boch can deliver this,” he says.
In terms of current trends in tableware, Schmidt believes that more hotels are looking for a durable tableware solution, which is also affordable, particularly during the financial crisis. “The global financial crisis has had a negative impact on our business in 2009 worldwide. Regarding the Asian market we saw a sales decrease in tableware of -13.0%,” says Schmidt.
TABLEWARE IS SO IMPORTANT BECAUSE IT BRINGS THE FOOD AND THE CUSTOMER INTO CONTACT
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Hotelier Middle East • July 2010
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Product Guide: bathrooms Hotelier Middle East presents a host of bathroom supplies and reveals that black is back Sophia by Bagno Design.
BAGNO DESIGN TEL: +971 4 330 7771 EMAIL: info@sanipexgroup.com WEB: www.sanipexgroup.com
Sculpture by Vado.
BAGNO DESIGN New from Bagno Design is a stylish showerhead by Vado. Called Sculpture, the distinctive showerhead comprises six flexible tentacles. Sculpture allows the consumer to bend, twist and shape the form into any position. Providing an innovative and fresh slant to bathroom design, Sculpture can be either ceiling or wall mounted. Bagno Design has also launched its exclusive Sophia range of bathroom products. With soft flowing lines this elegant range has the option of lever or cross handles, and a full range of accessories to match. Bagno Design luxury showrooms provide a tool kit to architects, interior designers, contractors and private customers to create bathroom solutions. Bagno Design is the retail arm of Sanipex Group.
KOHLER CO. Kohler Co. has introduced the Vas Ceramic Faucet, which promises to save up to 60,000 litres of water per year. The Vas® ceramic faucet line consumes 5.68 litres of water per minute (L/min) compared to traditional faucets that consume an average 8.32 L/min, saving approximately 45% of water consumption. This not only offers obvious environmental water saving benefits for users — in line with Kohler’s aim to help customers consume only what is necessary — but also reduces utility bill overheads. The Vas® provides ROI after just three years and nine months of average use, claims Kohler.
The base solid-colour model has a pitcher-like vitreous china spout that provides graceful water flow for a peaceful environment; a sculpted, curved handle that is designed to resemble a drooping flower stem; and washerless ceramic valving that ensures reliable performance. The Vas® is also available in three painted high design pieces: Cerana™, Imperial Blue™ and Silkweave™. KOHLER CO. TEL: +971 4 364 2650 EMAIL: Mohamed.Nada@kohler.com WEB: www.me.kohler.com
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July 2010 • Hotelier Middle East
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LABOR SAVERS
MONEY SAVERS
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 (0)4 210 8475.
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Hotelier Middle East • July 2010
PRODUCTS
SPACE SAVERS ROCA SAVERS TEL:FOOD +971 4 347 6400 FAX: +971 4 347 6408 WEB: www.roca.com
ROCA The Armani / Roca bathroom has been created by the Giorgio Armani Group in partnership with Spanish bathroom experts Roca. The collection is distinguished by technologically advanced solutions without compromising on luxury and sensuality. It achieves this fine balance through the selection of materials, choice of textures and some unexpected pairings. The Armani / Roca bathroom is a modular system in a range of sizes, offered in a dual palette of materials and shades: black with tap fittings in the same shade and ceramic wall tiling in a shagreen effect (a rare and precious material that epitomises the Armani style), and a greige option, with wall coverings in a reeded texture and fluid colours for the sanitary ware and flooring. Faucets, where functionality prevails, are reduced to the minimum; the bath, filled with water by an internal shutter, features a system unique to Armani / Casa, inspired by vanishing edge pools and never used in this context before. The false ceiling can be fitted with coloured lights for chromotherapy. As a result of the design, the surrounding walls can be left free from major fittings.
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DURAVIT Bathroom manufacturer Duravit has introduced its classic Vero range in sophisticated, high gloss black. The company is promoting the use of black and white in the bathroom, with the straight-lined, timeless Vero range ideal for such colour schemes. Black has long been a part of Duravit’s bathroom tradition, with two complete black ranges launched back in 1980 and various black and white combinations evolving ever since.
DURAVIT TEL: +971 4 701 7117 EMAIL: toni.elkadi@ae.duravit.com WEB: www.duravit.com
UNDER ONE ROOF TEL: +971 4 323 2722 EMAIL: info@underoneroof.ae WEB: www.underoneroof.ae
UNDER ONE ROOF Three new shower enclosures have been added to the Embrace range from Roman, the UK shower manufacturer and designer which is distributed by Under One Roof. The Embrace Quadrant (pictured) is now available in a single door and single door offset version – delivering a fusion of elegant styling and practical functionality. The gently curving glass maximises the internal area and it provides a solution for when space is at a premium and corner installation is more practical. Roman has also launched an Embrace version of its best-selling Collage Trapezium shower enclosure, featuring the Embrace 6mm thick Bi-fold door along with two frameless panels. For over the bath showering, the Embrace Bath Screen is now available in clear or frosted glass, with the option of the thermostatic integrated digital valve for a convenient all in one shower unit. The Embrace Bath Screen features 6mm thick toughened glass and a unique sealing system, which means complete compatibility with power showers.
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July 2010 • Hotelier Middle East
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KALDEWEI Kaldewei has added the Classic Duo Oval Wide freestanding bath to its Classic Duo family of products. The bath, with especially wide rim, is available with one piece paneling. This emphasises the high design standard, harmonises with the classic form of the bath, and provides complete freedom when choosing where to position the bath in the room. The spacious rim enables rim-mounted fittings to be positioned as desired and allows for a centre outlet and two identical back rests. The Classic Duo Oval Wide is manufactured in 3.5mm Kaldewei enamel and measures 180x80cm.
FRANZ KALDEWEI GMBH & CO. KG TEL: +49 2 382 7850 WEB: www.kaldewei.com EMAIL: info@kaldewei.com
LAUFEN TEL: +41 6 1765 7111 EMAIL: feedback@laufen.ch WEB: www.laufen.com
LAUFEN Swiss bathroom manufacturer Laufen is meeting the demand for trendy, innovative, black and white bathrooms with its IlBagnoAlessi dOt bathroom collection. A selection of high quality pieces in a matte black variation have been created by Dutch architect Wiel Arets. The TamTam washbasin, wall-hung WC, urinal and ceramic shelves are now available in matte black in addition to the original white range, enabling customers to create their own combos. The circle, square and angles of the IlBagnoAlessi dOt range are inspired by the classic IlBagnoAlessi One design by Stefano Giovannoni. The bathroom ensemble with the signature ‘dOt’ is the product of a close cooperation between the Italian design factory Alessi, Swiss bathroom specialist Laufen and the Finnish faucets manufacturer, Oras.
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VILLEROY & BOCH In 2010, Villeroy & Boch is giving its best selling Subway collection a facelift. The rectangular Subway washbasin has been redesigned with a finer, more delicate shape and there are 11 models to select from. The product will also be available in six round versions for the first time, making the Subway collection more versatile. In addition, there is a new method for installing wall-mounted washbasins. The 50 and 60cm wide washbasins in the new designs can also be placed directly onto a furniture countertop because they have a polished underside. This method of installation is particularly popular in hotels, according to Villeroy & Boch. The firm has also expanded another of its lines, the Loop & Friends washbasin. It is now available in the trendy new colours of Espresso and Cassis, and the round surface-mounted washbasins can also be mounted semi-recessed.
The Loop & Friends washbasin is now available in Espresso and Cassis.
VILLEROY & BOCH MIDDLE EAST TEL. +971 4 364 2613 FAX +971 4 368 8419 E-MAIL: info.me@villeroy-boch.com WEBSITE: www.villeroy-boch.com
There are 11 models of the Subway rectangular washbasin.
DORNBRACHT The Lulu fittings series from Dornbracht has been extended to include the new Lulu threehole basin mixer with a single rosette. It reflects the compact design of the series combining different basic geometric shapes such as cubes and cylinders. Also new is the Lulu wall-mounted four-hole bath mixer with a single rosette. Lulu will continue to be offered as single-lever taps for basins, walls, bathtubs, showers and bidets and will be available in chrome and platinum finishes. In addition, corresponding accessories will be offered for the fittings series. The product was designed by Sieger Design. Also new from Dornbracht, presented at Salone Internazionale del Mobile 2010, is the expanded range from Tara.Logic. It now includes a new free-standing shower system containing a rain sprinkler shower head and five new features for the basin. The three new Tara.Logic wall-mounted single-lever basin mixers also expand the potential for architects and planners to express themselves during the bathroom design . Dornbracht/Thomas Popinger
The new three-hole basin mixer from Lulu.
DORNBRACHT INTERNATIONAL HOLDING GMBH (REP OFFICE) TEL: +971 4 335 0731 EMAIL: dornbrachtme@dornbracht.com WEBSITE: www.dornbracht.com
Tara.Logic by Dornbracht.
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July 2010 • Hotelier Middle East
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An actuator plate that ďŹ ts perfectly with its surrounding.
Perfect, down to the smallest detail: design the Sigma50 actuator plate from Geberit exactly the way you want it. In wood, stone, with photographs or drawings: the possibilities are virtually endless. www.geberit.ae
Y&R GROUP
Good style means everything ďŹ ts harmoniously together.
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ODF TEL: +971 50 6952045 EMAIL: a.lefebvre@odf.fr WEB: www.odf-paris.com ODF French bathroom accessories manufacturer ODF has introduced the Safety range, created speciďŹ cally for disabled guests. The shower seats and rails are in the same design as the ODF bathroom accessories, with washbasins adapted to accommodate wheelchair-users.
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Hotelier Middle East brings you a selection of the latest products to hit the hotel marketplace SWIMMING POOL SHOWERS BY BOSSINI Bossini’s swimming pool collection has grown with the new Oki and Dynamic Swimming Pool Shower Column. The minimalist design of the pool columns is based on elegance and essential style, and the columns provide the luxury of cascade showers. It is available from Bagno Design, the retail arm of the Sanipex Group.
SUN & SHADES Sun & Shades is introducing a new concept of functional, cost-effective sun umbrellas to the UAE market. The high quality powder-coated aluminium frames are available in a variety of colours, while the washable covers are made of heavy polyester fabric with applied water and dirt repellence coatings. Sun & Shade umbrellas feature the ‘Push.the.button’ opening system for easy handling, and they can also be branded as desired using industrial screen printing.
Bagno Design Tel: +971 4 330 7771 Email: info@sanipexgroup.com Web: www.sanipexgroup.com
RECO RUBBER FLOORING Raymond Sport has extended its best selling Rephouse gym flooring range with the addition of Neoflex Reco Rubber Flooring. The environmentally-friendly product is a 100% EPDM rubber floor covering with a 75% postindustrial recycled rubber content. Reco is durable, resilient, sound absorbing and able to withstand the heavy use of high traffic areas such as building entrances, walkways and retail stores. Floors are offered in attractive colours using three distinct colour chip sizes and custom colours can be produced by special order.
Raymond Sport LLC Tel: +971 4 339 1331 Email: info@raymondsport.com Web: www.raymondsport.com
AVANTGARDE BEDROOM STEAM IRONING CENTRE The Avantgarde Bedroom Steam Ironing Centre from Northmace & Hendon is the luxury solution to inroom guest ironing. Its space-saving design comprises quality steel build, metalised cover, anti-theft iron facility and a hook for hanging. There are also special feet for enhanced stability and it comes complete with Hotel Safety Steam Iron with Auto-Off safety timer.
Sun and Shades Gulf L.L.C. Tel: +971 2 622 9991 Fax: +971 2 622 9398 Web: www.sunandshadesgulf.ae
Nora Lighting Email: quotes@noralighting.com Web: www.noralighting.com
Northmace & Hendon Email: sales@northmace.com Web: www.northmace.com
NORA RADIANT REDS Nora Lighting has introduced Radiant Reds, a series of red-hot art glass pendants. The lights are available in more than 20 different pendant styles, sizes and finishes, from fanciful beaded shades to contemporary cylindrical shapes and teardrop or trumpet stylings. Pictured here, from left to right, are: Waterfall, Sean, Beaded Oval, Open Pond, Spot, Snow and Pool.
For more information about Hotelier Middle East suppliers contact hotelier@itp.com or +971 4 210 8475
www.hoteliermiddleeast.com
Hotelier Middle East • July 2010
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• News • Analysis • Innovations • Trends
IPTV usage to increase GCC to invest US $290 million in Seminar identifies technology trend hotel technology over five years IPTV (internet protocol television), was identified as the technology trend ‘for the future’ at a recent seminar. Speaking to Hotelier Middle East after leading a panel session on technology trends at The Hotel Show, EH&A technical advisor Ted Horner said: “I do believe that IPTV is the future; delivering a range of services over internet protocol, whether it be entertainment, high speed internet, wireless, you can now run other applications posting mini-bar charges, and so on, so IPTV now is really defining everything we do”. In addition to the increasing use of IPTV, Horner says that other trends include the increase of media connectivity devices, pointing at the need for hotels to make things easier for customers as the driving force behind this type of technological development. “Nowadays, more of us are bringing our own content on the road — we don’t want to have to load it on to
Technology Middle East conference to address the current trends and developments in hotel technology
Horner:IPTV is defining everything we do.
something else. Being able to plug in it simply and easily is important and technology in that area has moved on pretty well. The other thing of course is that the cost of those units has come down; they are a lot less expensive than they used to be before that.” “At the end of the day I think technology can deliver a ‘wow’ factor, but it has to be done properly. You have to test this out with people — have a mock up room and have lots of different people come, from 15- to 30-yearolds to 90-year-olds, and see what they think.”
Facebooking frenzy Evolution, the reservation service provider from the Great Hotels Organisation, has launched a booking application allowing hotels to offer a direct booking functionality through social networking site facebook. Evolution chief executive officer Peter Gould said of the development: “With the www.hoteliermiddleeast.com
Over the next five years, the GCC plans to invest US $140 billion in the hotel industry, with more than $290 million to be invested in technology spending across new hotels, according to IQPC Middle East. The company’s second annual Hotel Technology Middle East conference, which will be held in Dubai from September 19-22 at Amwaj Rotana in Dubai, will address this and other technology developments in the hospitality industry. With more than 180,600 rooms expected to come online by 2011, the conference organisers say that recent research has suggested that owners and operators have a clear number of drivers in order to differentiate themselves in the ever-changing hospitality marketplace. IQPC divisional director and conference director
Barron: hoteliers can discuss key trends.
Fiona Barron said: “This event is a unique forum for the regional and international hotel owners and operators to discuss the key issues and latest developments in creating worldclass hotels through the integration of technology.”
IT experts from leading hotel chains said that their key objectives in developing hotel technology were: to enhance guest experience; to develop security strategies and technology to prevent data loss; to reduce costs through updating existing systems; to improve internal operations and efficiency; and to increase energy efficiency through technology. The technology conference will include the latest industry developments, strategies and technologies, case-studies and interactive panel discussions to keep hoteliers up to date on how to harness technology in order to attract more business to their hotels. There will also be opportunities to network, contribute in debates and have questions answered. Details: www.hoteltechnologyme.com
Hoteliers to engage with customers using social networking site
world of social media developing as quickly as it is, hotels need to keep up with the technology changes and extend their reach beyond their own website.” The application, which is powered by Evolution Booking Engine, allows hoteliers to add one-click access to their booking
engine via their facebook fan page, where customers are able to check rates and book at discounted prices. Using the booking tool, hotels are able to assign special rates and offers which are only available through the facebook channel, giving fans fast access to deals and promotions.
At the hotel Abbaye de Talloires in France, general director Dunja Kirchner said the tool was being used to great effect. “Our hotel has just started using the facebook application and I am very proud of the booking box as it’s a great tool positioned in the right place to provide more
direct bookings. I have seen the first results already and I am very confident about it,” Kirchner stated. “Developing a loyalty programme can be difficult for independent hotels so this is a way for them to build loyal followers by offering exclusive rates, offers and deals,” added Gould. Hotelier Middle East • July 2010
TECH TALK
64
Contemplating Cloud Computing Mövenpick i k Hotels l & Resorts regional i l IT guru Roger MacFarlaine weighs i h up the h b benefi fits off internal versus external ‘clouds’ as he explores where it is best to store your valuable data
TECH EXPERT ow I want to be serious for a minute and talk about ‘cloud computing’ – and no I am not off in the clouds or away with the fairies – your organisation does it, my organisation does it and even our kids are now involved with it. But what is cloud computing? It’s not new, but cloud computing is technology where data is outsourced, accessed and stored in a secure environment somewhere in cyber space and then provided as a service online, either by subscription or on a pay on demand basis to customers. Cloud computing generally tends to involve data being sent over the internet and stored in a third party system or environment. Service providers develop and create scalable IT services that facilitate ‘virtual IT’ where remote external and third party servers are extensions to a company’s local IT network. An example of this comes in the form of commercial software applications i.e. email services
N
like Google mail, Yahoo mail and so on. Another such example is network storage where data is backed up or archived across the internet without having a local physical location in your organisation for storage. The beauty is that these service providers install, manage and maintain all technologies within the cloud, making it easier and relieving an organisation’s own IT manageability burden. Generally when we think of cloud computing we think of external clouds; that is, IT services being provided by a third party. However, I want to remind all of you that we often forget our ‘internal’ cloud computing that sits within a company’s IT infrastructure in a central environment. One of the big advantages of internal clouds and services is that an organisation’s IT requirements and services are clearly identified by in-house expertise. In some cases internal clouds can be far more cost competitive — an intranet system is a prime example of internal cloud computing. I believe that a company’s strategy should leverage between internal and external cloud computing using a Virtual Private Network (VPN) to get the best of all worlds. A VPN cloud establishes robust network architecture (for example; network security, topology and encrypted/secure communication tunnels) for an organisation and acts as the platform to enable
the extension of IT, in a secured manner, to outside services and resources regardless of its or their application. An organisation’s development of cloud computing and VPN increases the flexibility and adaptability of its IT network to incorporate a wider IT services portfolio to cater for ever changing business needs. Isn’t this one of the ‘holy grails’ of an IT network?
WHAT ARE THE DRIVING REASONS? A key part of such a blended strategy is the need to rationalise the impact of costs for the services provided and actual time frames of implementation of that service. Third party clouds provide accessibility to a ready-made infrastructure that is cheap and quick to deploy. In addition, these services, resources and maintenance are managed by the provider, who can cater for scalable demand, making them ideal for startup companies that need quick access to a reliable and established infrastructure. This is in contrast to self hosted systems where potential issues of budgets and setups start to ‘hamper’ deployment. One might argue that the commercial cloud providers are likely to be more security capable, given their competitive advantage versus the internal IT of an organisation — in other words, they specialise in
IT infrastructure whereas in some cases internal IT teams aren’t truly experts in IT infrastructure and often are unable to obtain enough budget to implement security measures deemed necessary. I am not saying that internal clouds are no good — I am playing devil’s advocate — and CIOs in any business need to do the same in order to optimise and get a right balance with the cloud. Implementing a third party cloud computing model is not always going to be the ‘be all and end all’ for most organisations and it is not always the right direction to take. There are always going to be instances where there is a need for firms to run their own IT infrastructure, database server or a private data centre setup. I expect that ‘cloud computing’ will continue to evolve and gain momentum. With responsiveness and costs of cloud computing as a defining factor, a balance of internal and external clouds is likely to be the norm and common place for enterprise IT. I vigorously advocate a balanced approach. HME
This article is a brief introduction to ‘cloud’ computing — in future articles, Macfarlaine will be explaining how to build a multi-layered cloud that incorporates VPN, third party and internal IT services. Stay tuned!
THIRD PARTY CLOUDS PROVIDE ACCESSIBILITY TO A READY-MADE INFRASTRUCTURE THAT IS CHEAP AND QUICK TO DEPLOY
July 2010 • Hotelier Middle East
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TECH TALK
66
A cut
Five new developments in technology that you can’t afford to miss
above the rest EASY SIGN The Easy Sign from RWN Trading is a digital signage software solution which allows hotels to communicate and promote their products and brand. Although digital signage has been on the market for several years, what sets Easy Sign apart from other digital signage software is that it is a Windows product, which makes it easy for the end user. As most hotels already have screens in place, RWN Trading marketing director Carol Prince says it is just a matter of ensuring they are utilised effectively. “Easy Sign allows you to split your plasma or LCD screen into a number of separate sections, for example,” Prince explains. “Each section can be run independently. So you can divide a screen in to four and in one section have a video of your main restaurant, currency rates in the second section, CNN news in the third and the hotel bus schedule to Dubai Mall in the fourth. “Each section can have its own schedule. These tools are all advantageous to hotels to promote, communicate and advertise their particular brand,” Prince adds.
July 2010 • Hotelier Middle East
With fierce competition to attract guests to hotels, Prince believes that it is important to develop innovative technology which enhances the guests’ experience. “Guests are comfortable with reading and seeking out information on screens, so it is a natural progression to use the reception screen, lobby screen, or elevator screen to communicate information to your potential buyers,” she says. What makes the product so cutting edge, says Prince, is the freedom it gives to hotels. “The key feature is that the control of the scheduling is being given to the hotel rather The Easy Sign from RWN Trading allows hotels to promote their brand and communicate more with the guests.
THE FUTURE “This area will continue to grow and to develop,” says Prince. “The information will be available direct to your mobile phones and will become more interactive with each guests’ needs. Competition is a good thing and it keeps us all on our toes.”
IT IS A NATURAL PROGRESSION TO USE THE RECEPTION SCREEN TO COMMUNICATE WITH YOUR POTENTIAL BUYERS than the hotel relying on expensive contracts with technical companies when only minor changes need to occur,” she says.
“We promote the fact that the package is both easy to implement and to control as it is a Windows-based product,”adds Prince.
www.hoteliermiddleeast.com
67 TECH TALK
MEDIAHUB™ The MediaHub HD™ is a newlylaunched model of the MediaHub by TeleAdapt that also includes a Stereo Bluetooth® pairing point. The Bluetooth feature converts the in-room TV into a wireless speaker for iPods, iPads, laptops, iPhones and other MP3-playing smart phones equipped to use wireless speakers. Simply put, guests are able to listen to their iPod or MP3 player through the in-room entertainment centre while being able to check email, browse mobile apps and control a playlist from anywhere in the room. TeleAdapt partner marketing manager Cheryl McGinty feels that the emergence of digital entertainment has made it difficult for hotels to cater to the vast demands of guests. “MediaHub exponentially expands a hotel’s in-room entertainment offering while also giving guests more reasons to stay on their property,” says McGinty. “More on-site and in-room time means more room service, more perceived value and more potential revenue for the hotel.” With internet driving the portability of entertainment, McGinty maintains that demands for this sort of technology is increasing as hotel guests are likely to check into their room with an arsenal of portable electronics and expect hotels to be able to facilitate their use. “MediaHub HD has been very well received among hotels, having been installed in
thousands of rooms worldwide. It gives guests more choice in their in-room entertainment and that “wow-factor” from the wireless stereo amenity,” says McGinty. “The adoption of Stereo Bluetooth technology in MP3-players like iPods and iPads and MP3-playing smart phone brands like Apple, Blackberry, Samsung, Palm, and Nokia for wireless audio playback confirms that wireless is the next step in media connectivity. And the practical appeal of the product to hoteliers and guests alike has encouraged TeleAdapt to look at further means of developing it. “MediaHub HD employs the Stereo Bluetooth protocol so the wireless feature is limited to audio only. TeleAdapt is exploring options for incorporating wireless video in future MediaHub products as consumer technology progresses,” McGinty adds.
THE PRACTICAL SIDE MediaHub HD presents easy-to-use, guest-facing audio/video connections, so guests are not tempted to tamper with the connections on the back of the TV, and uses HDMI-scaler technology so all audio and video signals are sent to the TV through a single-HDMI connection. One cable connection to the TV means easier installation for hoteliers.
The MediaHub HD from TeleAdapt allows the hotel guests to use wireless technology products in their rooms.
MORE ON-SITE AND IN-ROOM TIME MEANS MORE ROOM SERVICE, MORE PERCEIVED VALUE AND MORE POTENTIAL REVENUE FOR THE HOTEL www.hoteliermiddleeast.com
Hotelier Middle East • July 2010
TECH TALK
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ALCATEL-LUCENT OMNITOUCH 8082 MY IC PHONE A HOTEL ROOM NEEDS TO BE A HOME AWAY FROM HOME, AND OFFER NEW SERVICES, EXPERIENCES AND CONVENIENCES
Guests arrive at hotels with a lot of expectations about what technology will be there.
The Alcatel-Lucent OmniTouch 8082 My IC Phone is a new smart desk phone which brings together multimedia communications capabilities and web applications to create personalised mashups and hospitality-tailored applications.
Alcatel-Lucent’s partner in the region, Al Futtaim Technologies’ general manager Venkat Raghavan, says of the IC Phone: “To give some examples, hotels will now be able to quickly and easily deploy popular applications like Facebook and Twitter over the in-room technologies to allow guests to stay connected to their social
NEVOTEK VIP CONNECT According to Duran, hoteliers need to be Nevotek VIP Connect from aware of the financial benefits that cuttingNevotek is an IP-based unified edge technology will have on their business. communications platform “The challenges are clear, but so are the built on a converged network infrastructure that offers flexible, opportunities. Hotel guests are primed to take advantage of new services that will offer a cost-effective voice and data customised environment and a more efficient services. VIP Connect combines voice, and personalised experience,” says Duran. data and video over a single network that can “New technologies be easily integrated with can transform hotels. existing hotel solutions Most importantly, to support the needs of they will give guests sophisticated guests. and hotel staff access Guests can access to services that will services, including generate new revenue, email, voicemail, and optimise every aspect fax, high-speed access, of the environment and up to date billing, VIP Connect allows guests to access have a positive impact entertainment services, services in their rooms. on the bottom line.” and room controls.These services can be delivered as a value-added option, or on a pay-per-use basis, to generate new revenues. We keep the record of the guest behaviour Nevotek regional manager Mustafa Duran while they use the interactive IP Phone and believes that hotels must provide modern IPTV services such as their preferred TV technology services to entice guests. channels, movies, songs, play list as well as “Today’s successful hotel ventures in-room temperature. Next time whenever incorporate a personalised environment with they visit hotel, we apply their pre-recorded cutting-edge services,” says Duran. profile on their phone as well as their TV “Forward-thinking operators have screen with their native language. differentiated their hotels to attract guests with these customisable services.”
DURAN’S WOW FACTOR
TODAY’S MOST SUCCESSFUL HOTEL VENTURES INCORPORATE A PERSONALISED ENVIRONMENT WITH CUTTING-EDGE SERVICES July 2010 • Hotelier Middle East
sphere while they are travelling; which definitely sets them apart from the competition. “Guests can be the masters of their universe, able to manipulate in-room climate controls to set their preferred temperature and lighting dependent on their mood,” he adds. Raghavan believes that guests’ demands are driving technological developments . “Today’s guests arrive at a hotel with a high level of expectations —a hotel room needs to be their home away from home,” Raghavan says. “But hotels also have to maintain the balance of achieving a healthy bottom line while enhancing the guest experience,” he adds.
IN THE REGION In the UAE and Qatar, along with premium partner,Al-Futtaim Technologies,AlcatelLucent has presented several existing and prospective hotels with the new offering. The enhanced user experience and lower overhead costs made possible by AlcatelLucent’s new OmniTouch 8082 My IC Phone and the Enhanced Multimedia Solution are designed to provide a strong foundation for the fast growing hospitality market in the Middle East.
BANG & OLUFSEN The BeoVision 7-55 by Bang & Olufsen integrates the Bang & Olufsen video engine.The product has double frame rate technology, also known as 100/120 Hz, with motion compensation and a scanning backlight. Bang & Olufsen Enterprise managing director Flemming Nielsen says: “These technologies significantly reduce the inherent blur of LCD technology that typically makes the facial expressions in fast moving pictures such as sports events almost invisible.With BeoVision 7-55, you get a sharp and clear picture even in fast moving scenes”. “The LCD screen in BeoVision 7-55 is based on new direct-type LED-backlight with local dimming for greater contrast.The TV contains state-of-the-art features ensuring a smooth picture performance, a sophisticated digital surround sound module, and is one of the very few flat screen TVs in the world to have an integrated Blu-ray player,” Nielsen adds. Nielsen believes that a television is one of the most important technologies for guests. “Flat screen TVs based on LCD and LED technologies provide different benefits for the hotel guest. LED-based TVs are usually much
BeoVision 7-55 provides a sharp, clear picture.
thinner than a standard LCD or plasma TV, which gives space back to the room that can be used for other guest benefits,” says Nielsen. “Furthermore the role of TV will play a more expanded role, for example the use of digital platforms enables hotels to integrate computer based services onto the TV,” he adds.
NIELSEN’S VIEW Every Bang & Olufsen television is built on our core competences: Vision, Sound, Quality, Possibilities and Integration. No matter the size of the screen, our TVs give performances so true to life that your guests find themselves absorbed in the sight and sound they are experiencing.And the sound performance is outstanding.
THE ROLE OF TV WITHIN THE GUEST ROOM WILL PLAY A MORE EXPANDED ROLE www.hoteliermiddleeast.com
HOTELIER MIDDLE EAST:
THE GREAT GM DEBATE WEDNESDAY 29 SEPTEMBER 2010 - JUMEIRAH BEACH HOTEL, DUBAI
H TEL GMS O A FOR FTRTEND EE R egister n hotelie ow at www. rmiddle east. com/c onfere nces
BENCHMARKING · WORKSHOPS BRAINSTORMING · NETWORKING FEATURING PRESENTATIONS AND WORKSHOPS FROM: • Dubai Department of Tourism Commerce and Marketing • Abu Dhabi Tourism Authority • Kerzner International • Rotana • Premier Inn Hotels • Armani Hotel
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IN PRINT Hotelier Middle East communicates industry-specific intelligence to a targeted audience of hoteliers Middle East-wide and provides updated information on products and services provided by key industry suppliers. Regular features include up-to-date regional and international news; interviews with hotel GMs; comment and analysis form industry professionals; market intelligence; roundtable sessions with every sector of the hotel community; destination reports and product updates.
ONLINE The digital home for hospitality professionals in the Middle East • Breaking News • Expert comment and analysis • Interviews of leading industry names • Latest industry events • Topical e-newsletters • Comprehensive directory of products, companies and services
INVOLVED For a chance to have your achievements recognized at this year’s awards or to book your place at the gala dinner, please visit: www.hoteliermiddleeast.com/a awa ardss
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• News • Trends • Analysis • Hotel listings
Number of transactions expected will be minimal in 2010 Active asset management anticipated to be hotel owners’ preferred choice over speedy sales to see more transactions in 2010 but still at a very much lower level than people might anticipate”. Wasl Hospitality general manager St John Kelliher said that he was aware of a limited amount of transactions occuring. “Although there are many opportunities for investors in the tourism and leisure sectors, we are yet to witness a great amount of transactions; this is also due to the unavailability of funding. My opinion is that this will continue well into 2011,” forecast Kelliher. Partner at Hamilton Hotel Partners Frank Croston added: “We would expect global transaction volumes to be slightly up on 2009 levels, but not significantly so. In the Middle East, we would expect to
TRENDS The number of transactions in the global hotel industry will increase in 2010, but at a much lower level than anticipated, according to asset management experts. Vision Hospitality Management CEO Clive Hillier said: “The number of transactions in the hotel industry will, in our opinion, still disappoint those that are sitting on the sidelines looking for great bargains. We believe that active asset management now allows investors and lenders to gain more confidence in dealing with situations on a two- to three-year time span rather than resorting to short term fixes. In essence, therefore, we do expect
Vision Hospitality Management CEO Clive Hillier.
see moderate transaction activity — either in cases of particular distress or in some of the markets that have not been negatively impacted (relatively) over the last 18 months”. According to Jones Lang LaSalle Hotels (JLLH), for the second year in succession, hotel transaction volumes across Europe, Middle East and Africa experienced a downward trend falling 61% to €3.1 billion in 2009 representing less than a fifth of the peak volume achieved in 2007 (€21.4 billion). Looking ahead to 2010, JLLH expects transacted prices to reflect market conditions more closely and realise the falls in value expected during 2009. In the first two months of 2010, the firm recorded hotel transcation value in EMEA of €700 million.
Central Asia & Turkey Hotel Investment Conference launched Bench Events and Questex have launched the first Central Asia & Turkey Hotel Investment Conference (CATHIC), which will be held at the InterContinental Istanbul from 7-9 February 2011.
It becomes the fifth in the portfolio of networking and educational events aimed at hotel owners, investors and operators, which include International Hotel Investment Forum Asia Pacific, Russia & CIS
Hotel Investment Conference, Arabian Hotel Investment Conference and the International Hotel Investment Forum, held in Berlin. The CATHIC 2011 conference programme will include 65 speak-
ers from Turkey and Central Asia, but be targeted at delegates from across the world. It will also feature networking receptions, sponsors exhibition and the CATHIC Lifetime Achievement Award.
STOCK WATCH — JUNE PRICE (US $)
CHANGE (%)
PRICE (US $)
CHANGE (%)
BX Blackstone Group (NYSE)
10.25
-2.4%
CHH Choice Hotels International (NYSE)
33.14
-3.0%
MAR Marriott International (NYSE)
32.71
1.4%
KHI Kingdom Hotels (LSE)
4.90
IHG InterContinental Hotels Group (NYSE)
17.15
10.6%
REZT Rezidor Hotel Group (SSE)
30.20
15.2%
HOT Starwood Hotels and Resorts Worldwide (NYSE)
45.64
2.4%
LHO LaSalle Hotel Properties (NYSE)
21.55
3.8%
WYN Wyndham Worldwide Corporation (NYSE)
22.16
-16.8%
AC Accor (PSE)
36.81
10.2%
-
0.0%
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 June 2010 are based on quotes from May 25, 2010, compared with June 28, 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 • July 2010
INVESTOR
72
A view from Beijing Bench Events chairman Jonathan Worsley reports from the 10th Global Travel and Tourism Summit and explains why China’s market has unrivalled potential for growth and profits • There will be two billion more customers for the Chinese travel and tourism industry. • The travel and tourism industry in China will employ 65 million. To put the last figure in perspective, that’s more than the population of France.
STAFF INVESTMENT
COLUMNIST f first impressions count, then few experiences match those offered by Beijing International Airport. Gateway to what will become the biggest global economy, it is the largest and most advanced airport building in the world. It claims to be technologically unique, and without peer in terms of passenger experience, operational efficiency and sustainability. Its aerodynamic roof and quintessential dragon-form symbolise the money now flooding into China and demonstrates the belief of the Chinese people: we are better than anyone else. This optimism was matched in almost perfect harmony by delegates at the recent 10th Global Travel and Tourism Summit, where the theme was ‘reaching new frontiers’. Listening to the speakers and talking to the attendees, it became clear that China is going to be a big player in travel and tourism. The Chinese Government understands that its economy cannot solely rely on manufacturing and exports and has recently placed travel and tourism as a strategic pillar of the economy. There were discussions covering the reordering of tourism, opportunities, technology, sustainability, people, experiences and innovation. The figures, charts and statistics were eye-watering and here I’m highlighting two areas in particular that perhaps best demonstrate why China will become so dominant.
I
July 2010 • Hotelier Middle East
Flight arriving at Beijing International Airport— the largest and most advanced airport building in the world.
IN 1990, THERE WERE 17 MILLION AIRLINE PASSENGERS IN CHINA. THIS YEAR, THE NUMBER WILL BE 260 MILLION BELIEF IN GROWTH Tony Tyler, CEO of Cathay Pacific and president of IATA, gave his perspective on the state of the industry, acknowledging that we are still in the middle of a “difficult time” and that the international economic climate remains “uncertain and spooked”. However, Tyler highlighted the fact that we have globalisation to thank for bringing people across the world closer, which has led to an insatiable appetite to travel. But in a thinlyveiled attack on governments and regulators (particularly those in Europe), Tyler warned that we must work closer together to bring about positive change to the way the travel industry, and aviation in particular, operates; for example, making travel easier, and more convenient, costeffective and pleasurable. “Too often, travel infuriates rather than inspires,” he protested. Citing a lack of continuity in global airport security, airport expansion rejections and poor air traffic control in Europe, Tyler called upon authorities to do more to make travel hassle-
free. Criticising Europe, he had nothing but praise for China: its eagerness to impress and belief in growth. “The outlook in Asia is very different to that in other parts of the world” he asserted. And it’s an argument that is difficult to disagree with. China, said Tyler, exemplifies the mantra that development is a catalyst for growth: • The number of civil aviation routes in the country has increased fourfold compared with 1990 to more than 1500 in 2008. • There are currently 190 airports in China, a figure that will increase to more than 270 by 2020. • In 1990, there were 17 million airline passengers in China. This year, the number will be 260 million; in 10 years’ time it will be 700 million; and by 2030, the figure will be a staggering 1.5 billion. Jerry Noonan of Spencer Stuart complemented these impressive figures: • Compared with figures today, in the near future we will see 10-15 million more hotel rooms in China.
Clearly, the Chinese market offers unrivalled potential for growth and profits. But both Noonan and Barry Diller, CEO and chairman of IAC/ InterActiveCorp, attached health warnings to those who think that successfully plundering China is a forgone conclusion. First, you need to have the right people working for you. They need to be motivated and engaged to come and work in such a complex industry, and they must be prepared for eventual leadership. “Businesses that fail in China are those with preconceived ideas of how to do things. Local people have more [know-how] than foreigners,” warned Diller. Second, invest in technology; improve web presence and embrace mobile technology. As Diller remarked: “Social networking is already changing this industry. People will make a decision on where to travel based on the opinions of thousands of people they’ve never met; not because of a piece of marketing.” And they want to access information at a time and location convenient to them, not you. Whilst the air of optimism was refreshing given the fragile global economy, you do wonder if everything you hear can be true. Certainly, one would never insult one’s Chinese host by saying so — not if you want to do business in the country. Only time will tell, but with airstrikes, ash crisis, European economic and political malaise and the meltdown of the banking sector, I would put my money on China and encourage my children to head east! HME www.hoteliermiddleeast.com
For sponsorship opportunities at the Caterer Middle East Awards 2010, please contact: Diarmuid OMalley Publishing Director Tel: +971 4 210 8568 Mob: +971 50 5597339 Email: diarmuid.omalley@itp.com
Amanda Stewart International Sales Manager Hospitality & Catering Tel: +44 7908 117 333 Email: amanda.stewart@itp.com
For nomination enquiries please contact: Lucy Taylor Editor, Caterer Middle East Tel: +971 4 210 8493 Email: lucy.taylor@itp.com
For table bookings and further information regarding the Awards, please contact: Annie Chinoy Deputy Marketing Manager Tel: +971 4 210 8353 Email: annie.chinoy@itp.com
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The life of Riley Abu Dhabi National Hotels chief executive Richard W. Riley discusses the company’s growth plans and its responsibility as a major player in delivering the vision of the UAE capital put in the airport and it’s still on the agenda, but it’s very slow to come. I think that is because of the redesign of the airport and the commencement of the new terminal etc. That was something we signed and we have every intention of going forward…if we can get that one launched then it leads to the next. A big Yotel is going to open in New York next year, which nobody ever expected — 21m² rooms and very high prices so it’s very interesting and a great concept.
CEO INTERVIEW Abu Dhabi National Hotels (ADNH) plans to double its assets in three years and open 1500 rooms in Abu Dhabi by 2012. How will you achieve this? We have purchased the land and we’ve done the designs and we have three properties under construction — the first one is called the Grand Canal. There was a management agreement with JW Marriott to run that hotel and because of the calibre of the hotel I didn’t feel so sure about the management agreement, so we are actually in negotiation right now and hoping that we will be in a position to make an announcement [imminently]. It is amazing, it’s a huge site…what’s nice is we’ve got a facility next to the hotel which we call the Venetian Village, which is a retail restaurant complex which we will operate. We have some great brands, different from Dubai. That project is one year away — the reason for that delay is not only constructional, it’s also management. We made a decision and that decision is the right one I’m sure. So that set us back a bit, but what’s interesting about that is we were the first into Saadiyat Island. I have lived here for five years and I’m a surfer from Hawaii, and trust me, Saadiyat is my favourite beach. We have a Park Hyatt going in there with us, it’s a world class set-up. It’s an amazing hotel, it’s topped off and we are really one year away, so the reason I bring it up is because what has happened because of the slight delays to Grand Canal is that we will have two major openings a year from now. We have another hotel that we are in the process of developing as well. When I say double the asset base, that includes our transportation company [and tours and catering]. July 2010 • Hotelier Middle East
Chief executive Richard W. Riley wants ADNH to be a major player in delivering the future vision of Abu Dhabi.
WE ARE STILL IN DISCUSSION WITH THE AIRPORT AND OUR GOAL IS TO GET A YOTEL PUT IN THE AIRPORT ADNH also operates hotels under the Al Diar brand. Are there any plans to expand this? Right now we have to consolidate the Al Diar brand. There’s a market for these hotels so we have to work on the brand equity and we have to consolidate — that will be one of the
things that I need to be successful with. We don’t want to give up the brand, we do want to grow it. Are you still working to develop the Yotel brand in the region? We are still in discussion with the airport and our goal is to get a Yotel
Does ADNH plan to continue with the strategy of working with management companies or would you like to launch another brand? I think Abu Dhabi always wanted a brand of its own and that’s a little of the Jumeirah effect and at the end of the day it has to be the right thing, it has to be followed through. I think you have to find the white space… everything’s getting so blended together so is there any white space left or are we just doing this? Are we doing this for the right reasons? It’s a huge investment so if you really want to do it right you’ve got marketing, reservations, you’ve got your presence on the line, you’ve got development, the look, the feel, the taste, the brand — it is massively expensive. Or you can just put money behind it and buy your hotels and put your name on it. I don’t want to get in to that, but you can look at that because that’s happened right in front of our eyes. What is ADNH’s role in contributing to Abu Dhabi’s tourism industry and the Vision 2030? For us, Abu Dhabi Tourism Authority (ADTA) chairman Sheikh Sultan’s Leadership Award [at the Arabian Hotel Investment Conference] was very important and we have spent time and effort at trade www.hoteliermiddleeast.com
75 INVESTOR
WE BELIEVE THAT THE MOST IMPORTANT THING RIGHT NOW IS TO GET THE RIGHT PRODUCTS DELIVERED, WHICH WILL DIFFERENTIATE ABU DHABI ADNH BY THE NUMBERS Five divisions: Hotels Division, ADNH-Compass, General Purchasing, Al Ghazal Transport, Sunshine Tours. Six owned hotels: Hilton Abu Dhabi, Hilton Al Ain, Sheraton Abu Dhabi, Le Meridien Abu Dhabi, Mercure Grand Hotel Jabel Hafeet, Sofitel Jumeirah Beach Dubai
and Villas Abu Dhabi on Saadiyat Island, Grand Canal Hotel and Villas (operator TBA following termination of JW Marriott management) and a third project TBA. 1500 units: planned to be opened in Abu Dhabi by 2012 in the form of three hotels.
13 operated hotels: under the Al Diar brand
AED 170 million: net profit for Q1, 2010, an increase of 13% over the same period in 2009.
Three ongoing developments in Abu Dhabi: Park Hyatt Hotel
80%: occupancy in Q1, 2010, a drop of 10%.
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shows in support of the ADTA and we believe in what they’re doing. We believe that the most important thing right now is to get the right products delivered, which will differentiate at the end of the road. Dubai has done an amazing job, it has great products, but what we have to do is make sure we’re not replicating and people have a reason to go to Abu Dhabi — it’s a different city but it’s very important. We feel that our most important goal is to be a major player in delivering Abu Dhabi and to make sure that we don’t make mistakes and so we looked at [our new] properties very carefully and we’ve been slow. Are you not worried that demand will over-meet supply? I think the hotels that will come to fruition will be slower than expected. When we first did this strategic study about a year and a half ago, we said 2013 would be a nudge year — in other words in 2013 hotels would be running 55% occu-
pancy for the first time ever in Abu Dhabi since 2005, but that is now a push back to 2015. You’ll also see that there is a slow down for buildings to reach the market and the whole thing will give us more time to deliver on the leisure side. In the future, where would ADNH like to expand outside of the UAE? Saudi Arabia has the infrastructure and is very attractive, especially the Riyadh side I believe. We were talking about Doha strategically a year ago and Doha has reached an in pass at this moment, it is challenging right now but it is good timing for us because by the time Doha turns the corner, that might be an option for us. I still think places like Algeria are exceptional for the future and even Libya and Syria. We are Abu Dhabi National Hotels so we will look at this region first, then the MENA region. Now is a good time to buy but our pipeline is such that we have a lot of money tied up right now. HME
Hotelier Middle East • July 2010
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Business insights for attractions, fitness, sports and spa professionals
Golf clubs urged to invest in staff training Golf Salary & Benefits Study 2010 shows development gaps and more outsourced employees GOLF The Golf Salary & Benefits Study 2010 has revealed that almost half of all golf clubs in Europe, Middle East and Africa do not invest enough in employee education and training. In addition, 90% of clubs perceived there was a need for further training. Most had budget for this, but 33% of the 350 respondents said money allocated was insufficient. The results of the study, compiled by IFM Sports Marketing Surveys, have been analysed by the Club Managers Association of Europe (CMAE) and recruitment specialist Colt Mackenzie McNair. CMAE chief executive officer Jerry Kilby commented: “There is a wealth of information contained in this study and we would encourage club managers, owners and committees across the EMEA region to use these reliable and up-to-the-minute results to help make sound business decisions going forwards. “What the study highlights is the need for many clubs to consider
More than 60% of golf clubs now outsource roles such as golf coach in order to create a more flexible cost base.
increasing their investment in education programmes for club management and general staff. With only 56% of clubs having a sufficient budget for education and training, a massive 44% of clubs do not invest enough in this area of business, which is more important now in challenging times, when clubs need their management teams to deliver innovative programmes to encourage more people into our clubs.” The study showed more than half of the facilities canvassed had retained the same staffing levels in 2009 as in 2008. More than 60% of respondents outsource jobs to create a flexible cost base, including food and beverage services and golf coaching roles.
GOLF SALARY & BENEFITS STUDY 2010 HIGHLIGHTS 40% of respondents earned in excess of €60,000 (US $74,000) per annum Nearly three-quarters of clubs surveyed had gross annual revenues of less than €2 million ($2.5 million) Neither degree-level education nor a professional
qualification were prerequisites of a senior role, and only 50% of respondents had either. 25% said they would consider working away from their country of birth with 12% already doing so Only 30-40% of employees qualified for a bonus scheme
Work starts on the Yas Island waterpark ATTRACTIONS Aldar Properties has announced that construction on the huge waterpark planned for Abu Dhabi’s Yas Island will start this month. The 16.4 hectare water park will feature more than 40 rides and attractions, including four one-of-akind rides that have never been seen before in a water park. Aldar said it has already received
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planning approval from the Abu Dhabi Urban Planning Council and has appointed UK-based Atkins as lead designer for the project. Aldar has also initiated the prequalification process for main contractors for the project and construction work will begin in July. The project is scheduled for delivery in 2012. Sami Asad, chief operating officer of Aldar Properties, said: “The water park will bring another dis-
tinct feature to Yas Island, further diversifying its impressive offering. “It will be a valuable addition to the other attractions that will set Yas Island apart as a major leisure destination and will reinforce Abu Dhabi’s position as a great place to live, work and visit.” The water park will join Ferrari World Abu Dhabi, the world’s first Ferrari theme park and largest attraction of its kind, which is due to on October 28.
Work has begun on the Yas Island waterpark, which will be the first attraction of its kind in Abu Dhabi.
Hotelier Middle East • July 2010
IQL UK delivers pool safety training to Wahooo! Staff become first in the Middle East to complete the National Pool Management Qualification TRAINING Wahooo! Waterpark in Bahrain is the first waterpark in the Middle East to have staff who are trained in the National Pool Management Qualification (NPMQ) which is delivered by IQL UK. The NPMQ has been developed by IQL UK on behalf of the RLSS UK to fill in the gaps in management staff knowledge when it comes to industry guidance, relevant legislation, corporate manslaughter and new health and safety laws. General Manager at Wahooo! Waterpark Damian Latham said, “We chose to train our staff in the NPMQ because up until now there had been a large gap in terms of industry related courses for man-
The team members at Wahooo! Waterpark are trained in the National Pool Management Qualification (NPMQ).
agers and senior staff. Europe has some of the best standards anywhere in the world, hence why we wanted to bring these world class best practices to Bahrain. “The course far exceeds any existing qualifications in the market. The case studies relating back to site operations are invaluable and the depth of knowledge the law module provides is outstanding. It should be mandatory for pool operators.” Twenty-five RLSS-trained lifeguards are stationed across the waterpark, which is 70% indoor and 30% outdoor. Executive director of IQL UK Tara Dillon said: “It is encouraging to see the NPMQ being run in the Middle East. The qualification sets the standard and our aim is to protect staff that run leisure facilities”.
High hotel occupancy boots Dead Sea spa utilisation Demand from in-house guests dramatically increases therapists’ usage and treatment revenue
High hotel occupancy in Jordan’s Dead Sea in March and April has had a dramatic impact on the utilisation of the area’s spas, according to the latest edition of the bi-monthly Dead Sea Spa Benchmarking Survey from PricewaterhouseCoopers. In January and February 2010, the average daily treatment revenue generated per therapist was US $266.3 and $285.5 respectively. In March, this increased to $395.1 and in April it exceeded $500. Utilisation of therapists hours was 33% in January and February, 44% in March and 55% in April. The research covers the period January 2010 to April 2010, and PwC also analysed occupancy trends at Dead Sea hotels over the past three years, which showed figures historically peaking at 80% and above in March and April. PwC partner & Middle East leader — Real Estate, Hospitality & Construction Mohammad DahJuly 2010 • Hotelier Middle East
mash commented: “Utilisation of treatment room hours at a YTD average of 19% and therapists’ hours at a YTD average of 41% are a clear indication of how busy the months of March and April have been with hotels along the Dead Sea. Therapists’ utilisation in April increased by 66% in comparison to the first two months of the year. “The average treatment revenue per treatment sold for the first four months of 2010 was JOD 57 ($80), an increase of 5.5% over the first two months attributed to the high seasonality, particularly in April,” said Dahmash. He added: “April witnessed a 12.6%-14.9% increase in average treatment revenue per treatment sold in comparison to January and February respectively”. The impact of the high hotel occupancy on the spa figures is reflected in the fact that as of April 2010, in house guests accounted for approximately 90% of total treatment hours sold, with the remaining 10% contributed by walk-in guests.
AVERAGE DAILY THERAPIST REVENUE & UTILISATION OF THERAPIST HOURS 365 58.0% 345 54.0%
325 305
50.0%
285
46.0%
265
42.0%
Utilisation
SPA
Average Daily Revenue (JOD)
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245 38.0% 225 34.0%
205 185
Jan-10
Feb-10
Mar-10
Apr-10
Average daily treatment revenue generated per therapist
As with the January and February data, this means more could be done by spa operators to attract the local population, reiterated
YTD
30.0%
Utilisation of therapists’ hours
Dahmash. He highlighted retail as another area needing improvement, with only a YTD average of 8% of total revenue coming from retail. www.hoteliermiddleeast.com
FOR ALL YOUR LIFEGUARDING, POOL SAFETY AND FIRST AID NEEDS CHOOSE
SAFETY& LEISURE TRAINING MIDDLE EAST
NATIONAL POOL LIFEGUARD QUALIFICATION International professional qualification awarded under license to RLSS and the Institute for Qualified Lifeguards (IQL Ltd) Course 1: 8th, 10th, 15th, 17th, 22nd and 24th August 2010 Course 2: 20th, 22nd, 27th, 29th September, 5th and 6th October 2010 NATIONAL POOL MANAGEMENT QUALIFICATION A professional qualification developed by IQL UK Ltd (IQL) in direct response to the findings contained in an industry survey carried out by LeisureNet Solutions Ltd in 2008. The survey was commissioned by IQL UK Ltd as a ‘health check’ for its members due to changes in legislation and case study evidence where operators have found themselves in court, increasing insurance costs and claims. The survey results clearly identify some worrying knowledge gaps in both understanding, and complying with, law, regulations and guidance. IQL UK Ltd have developed the NPMQ to provide a solution to the difficulties the operators face. For further information contact us. We also offer training for beach lifeguards and rescue awards for teachers along with a range of first aid courses including AED, First Aid at Work and course specifically designed for children and infants. We have been delivering training in UAE and around the gulf for more than 4 years.
We can also offer the courses on a corporate basis delivered at your premises. Contact us for more information. For further information and registration please contact us at admin@sltme.com Safety & Leisure Training Middle East Office 329 Emarat Atrium Building Sheikh Zayed Road PO Box 213222 Tel: +971 4 321 8821 Fax: +971 4 321 1801 Email – admin@sltme.com Website: http://www.sltme.com
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A Link to the past Yas Links clubhouse brings a traditional Andalucian feel to golf FITTED OUT he Yas Links Golf Clubhouse officially opened on March 25, with the soft-opening of the first nine holes of the course held the following day. Located on Yas Island, just outside Abu Dhabi, the Yas Links clubhouse is designed to invoke a traditional feel — using the history of links golf as inspiration for the architecture and décor. Links, for those not in the know, refers to the oldest form of golf which was played on the wasteland that separated towns from the sea. The first golf courses in Scotland and Ireland were built on this land and Yas Links Golf Course general manager Chris White says the original Celtic golf courses have been an inspiration for Yas Links. “We had a very flat piece of land; we dredged the channel and used the material from the channel for the rough earthworks of the golf course. And our golf course architect Kyle Phillips, who is based in California, has specialised in designing links golf courses and we wanted to create a piece of Scottish or Irish coastline that replicated a links golf course, and that’s what we’ve done,” he says. This links-inspired design is by no means limited to the course itself; in every aspect of the clubhouse interior, references can be seen to links golf and golfing traditions. “It was very important that the clubhouse architecture aligned itself with the history of the golf course and links golf, so rather than having a really modern contemporary clubhouse, we went down the route of an Andalucian-style villa and of course, traditionally, that type of home had quite high ceilings and was very cooling using lots of stone and natural products,” White explains. “It is purposefully not a massive clubhouse — it is 6500m² which is quite small for a golf clubhouse but what that has created is an intimate and warm and almost homelike feeling where you can sit and relax. If you are on your own you feel comfortable and if you're in a group you feel comfortable.” Enigma Design interior designer Simon Black, who was sub-contracted to work on the project, says that the Andalucian-inspired design brief of the club was followed down to the ‘knick-knacks’ used for decoration. “We found some bits and pieces in Granada in Spain and Indigo Living supplied the furniture. We actually had most of the furniture custom made, so
T
July 2010 • Hotelier Middle East
COZY FEEL The traditional club house puts guests at ease.
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81 Where traditional design meets the age of technology: members can watch TV in the clubhouse. Chris White general manager Aldar Golf/ Yas Links.
CLASSIC A chess board manufactured by Laing Joinery, with pieces from a market in Antalya, Turkey, is an added extra at the club house.
HICKORY
VIEW FROM THE TOP
The all day dining restaurant.
Members and guests can enjoy a cocktail on the roof terrace.
QUACKING DETAIL Ducks from Indigo Living capture the rural essence of links golf.
RECEPTION AREA The reception area, with flooring manufactured by Laing Joinery, has a light and airy feel.
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Hotelier Middle East • July 2010
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TECHNOLOGY
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MEMBERSHIP
OUTDOOR FEATURES
The Yas Links golf club offers several different types of membership. There are individual and couple memberships; junior and family membership; several corporate memberships; and a social membership —though Chris White insists social members won’t stay that way for long. “What we do with social membership is we have benefits on the practice ground and the par three course so we are saying ‘OK you’re a social member this year but we are going to make you a golfer next year’,” White asserts.
The pool and patio area where serious golfers and social members alike can relax after a game.
LIGHTS Classic lights adorn the corridors, providing a homely feel.
WINNING STREAK Yas Links will hold golfing tournaments.
we described what we wanted to them, and they made it for us,” reveals Black. Built in just 12 months, the clubhouse manages to mix its traditional feel with modern offerings such as ‘Barrancas’, a fine dining restaurant; Hickory’s which features a sports bar, terrace and all day restaurant; and an events lawn which can cater for up to 300 people. But in the current economic climate, when budgets may be over-stretched, is a golf club membership still on people’s wish lists? White certainly feels that the demand is there. “Abu Dhabi has been crying out for golf, to be honest,” he says. “I don’t think there are many people both locally and globally who aren’t exercising discretion with their spending— do I really need this, can I live without it? But at the same time, July 2010 • Hotelier Middle East
WINDING STAIRCASES The staircase is in keeping with the traditional feel of the clubhouse.
golf is a nice pastime to do throughout the year and I think people work very hard in this part of the world and are saying I deserve that four hour break and I deserve to have a game of golf.” The demand for golf in the region is so high, says White, that there is the potential for a second golf course on Yas Island. “The key is to have alternative variation— what you don’t want to do is have a cut and paste of the same thing. The second golf course is on the North of the island; which is a phase three development that is being master planned at the moment and it is far more likely to be community driven, so more of a facility that services a residential community.”
If anything has fallen, he feels, it is the volume of people at corporate events. While companies may once have paid for a hundred people to spend the day at a golf course, providing them with a lavish meal afterwards, White says that corporate events are smaller now. “There are still some corporate events but it is more targeted — maybe 20 or 30 people and it is much more about building relationships than entertaining guests,” he says. “I think that is good for Yas Links. It is a golf course that is very keen to look after its membership — we don’t encourage corporate golf at weekends and we are very receptive to that. We really look forward to hosting groups of 20 or 30 and making them feel like a member of the club for one day, rather than being on a treadmill and doing the same event they do week after week – we want it to be a little bit more personal.” The personal touch is an important part of the www.hoteliermiddleeast.com
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DETAIL Attention to rustic charm was key.
DAY AND NIGHT Diners can enjoy a meal at Hickory’s at any time.
Yas Links experience. In addition to the cosy feel of the clubhouse, White says that making members feel that they are a part of a community is important. As a result, the club will run golf tournaments and has a winner’s board that is just waiting for the first names to be engraved on to it. “We are very pro families and juniors, we have a junior academy programme in place for the kids
and there are very few sports and activities where the family can go out and do something together. With golf you can all play together as a family and it is quite unique in that respect,” White says. And with such a strong sense of tradition at the Yas Links clubhouse, there is no doubt that the junior members will be continuing the links legacy for years to come. HME
INTRICATE PATTERNS A mirror with a traditional twist keeps the club’s history alive.
INDIGO LIVING
Indigo Living, the international interior solutions provider, was the exclusive provider of FF&E and OS&E for Yas Links. The scope of work comprised the manufacture, supply and install of all interior and outdoor furniture at the clubhouse, including artwork, accessories, rugs and all soft furnishings. In addition to this, as OS&E provider Indigo was responsible for the provision of everything from cutlery and crockery for the restaurants to staff uniforms.
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Hotelier Middle East • July 2010
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RECRUITMENT AND TRAINING
Contact details: Sarah Worth Tel: +971 04 210 8595/ Fax: +971 4 210 8080 Email: sarah.worth@itp.com
Martin H Kolb on the way things R R Hotels new vice president talks to Hotelier Middle East about trends, plans, and pressure NEW RECRUIT Had you always planned to work in the hospitality industry? I always wanted to work in the hospitality industry. When I was a child I used to enjoy helping my mother in the kitchen and arranging for visitors to come, which is not very usual for a child. I enjoyed cooking and wanted to become a cook, but I had to finish school and then university. After this, I started in a travel agency and then as a tour operator. It was only at the age of 30 that I met people that worked in the hotel business. Now I have opened hotels, I have done construction for hotels, so all these things I have done. What are your plans in your new role? My foremost task now is to stabilise the two hotels which we own. One is a 500 room Ramada hotel in Ajman which we own and are doing the management for. It is a franchised Ramada which is doing quite well, but it is tough to sell 500 rooms in Ajman. We are managing to reach more than 50% occupancy but it is at a depressed rate. We have some operational challenges but we are overcoming them. Then we have opened an apartment hotel in Downtown Dubai opposite the Burj Khalifa, so that is the baby that I am trying to nourish now. We have also signed a contract in Saudi Arabia for 12 hotels to be built within the next five years. We have a few other hotel management contracts where we
July 2010 • Hotelier Middle East
have been asked to take over existing hotels. I don’t want to go and buy or build hotels at the moment. We would like to grow by acquiring management contracts but we don’t want to really invest in assets for the time being. Are there any trends you will be capitalising on? In Saudi Arabia we will really be looking at the limited service sector. They have a lot of five star hotels and a lot of local hotels. And we want to do something for the intraGCC business and government traveller who is not allowed or not willing to spend the five star hotel prices. There is definitely a demand for budget hotels in Saudi Arabia. All of the hotels we are opening in Saudi Arabia will be budget hotels. Right now people may be staying in local hotels but there will be an interest in an international two-star hotel. We will also capitalise on the amount of Saudis who drive for work and may need somewhere to stay overnight. Is there a lot of pressure to deliver in your new role? There is always pressure because people want results in three weeks. It is an old story you know, they are not very patient and nobody is planning for the long journey. They want to see the cash inflow now. In 2008, probably in Dubai, you could make a return in two or three years on a hotel. Now it is going to take more than 10 years.
R Hotels new vice president Martin H Kolb says he always knew he wanted to work in the hospitality industry.
How do you forecast business will be in the future? We have big demand; we have July almost fully booked already which is just because of the location. How long will this happen, how long will Burj Khalifa be attractive? I do not
know. You had Mall of the Emirates which had the same effect over the last six or seven years and now they’re struggling because everybody wants to be near Dubai Mall, so let us see. I am lucky, I am lucky right now.
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Contact details: Sarah Worth Tel: +971 04 210 8595/ Fax: +971 4 210 8080 Email: sarah.worth@itp.com
RECRUITMENT AND TRAINING
ON THE MOVE… LE ROYAL MÉRIDIEN SEECKS OUT MAREIKE Le Royal Méridien Abu Dhabi has announced the appointment of Mareike Seeck as assistant manager of PR. Seeck, a German national, is now responsible for all PR and communication activities concerning the property. Having gained work experience with Travco London, a multinational tourism wholesale company, Seeck moved to Abu Dhabi in 2009 to begin working with the public relations team of the Sheraton Abu Dhabi Hotel & Resort prior to her recent move to Le Royal Méridien Abu Dhabi. ANOTHER SEASON FOR ANIFF The two City Seasons properties in Dubai will now be overseen by Dylan Aniff, a seasoned hotelier with more than 34 years’ experience. Aniff began his career in Sri Lanka, where he worked as a management trainee with the Oberoi Group, before moving on to work with Holiday Inn and Taj Hotels. ABU DHABI MOVE FOR NIZAM Issam Nizam has moved from his position as general manager of City Seasons Hotel Dubai to run the City Seasons Al Hamra Hotel in Abu Dhabi. Nizam’s immediate task will be to oversee the refurbishment of the City Seasons Al Hamra Hotel, which will be done in two phases and is expected to be completed by the end of the year. HUJAIR CLIMBS THE LADDER Al Areen Palace and Spa, Bahrain has promoted Hamed Hujair as director of sales and marketing. Hujair, who has more than 18 years of experience in
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the hospitality industry, began as a receptionist and worked his way up the corporate ladder to the position of director of sales — which he held prior to his new appointment. A Bahraini national, Hujair has worked in many of the Kingdom’s five-star residences including the Gulf Hotel, the Diplomat Radisson Blu Hotel and the Al Bander Hotel and Resort. NEW MILLENNIUM FOR SIMMONS The Millennium Hotel Abu Dhabi has welcomed Paul Simmons as the new director of sales. English–born Simmons has more than 22 years of experience in the hospitality industry and plans to enhance the hotel’s profile across the region and push even further into the rest of the world. KUMAR JOINS SHERATON DEIRA Pravin Kumar has joined the Sheraton Deira Hotel as its new food and beverage manager. Prior to joining the Sheraton Deira Hotel, Kumar was a member of the pre-opening task force at The Grand Mauritian, Mauritius, where he was responsible for setting up the entire food and beverage department. PARK ROTANA WELCOMES SELLARS The Park Rotana Abu Dhabi introduces Gavin Sellars as its new executive sous chef of signature restaurant Teatro. Originally from Melbourne, Australia, Sellars has worked in award-winning
fine dining restaurants, and cooked for many famous people such as former US President Bill Clinton and his wife Senator Hillary Clinton. He has also worked alongside celebrity chef Jamie Oliver. HADDAD JOINS MEDIA ROTANA Asaad Haddad has been appointed assistant director of food and beverage at Media Rotana Dubai. Haddad previously worked as assistant food and beverage manager at Yas Island Rotana and brings seven years of experience to his new role. He began his career in international chains in Dubai and Cyprus. KUHN MOVES TO MUSCAT The Radisson Blu Hotel, Muscat has welcomed Michael Kuhn as director of sales and marketing. Kuhn, a German
national, has extensive experience in the hospitality industry. During his career he has worked in Egypt, Switzerland, Germany. and Dubai. He joins the Muscat team from the Radisson Blu Hotel in Amsterdam where he held the same position. DOHA MARIOTT WELCOMES UDO The Doha Marriott Hotel has appointed Laurence Udo as public relations and marketing communications manager. Prior to her appointment at Doha Marriott, Udo was working in the UK as marketing manager for Marriott Vacation Club.
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Hotelier Middle East • July 2010
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DIARY
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i g fun outside havin t dh ve been spotte From Cairo to Dubai, hoteliers ha
New at The Nile
of the office
Hot Hoteliers powered by Technogym More than 50 hoteliers gathered at the recent Hot Hoteliers event held at Amatista at The Address Dubai Mall to network and relax. GMs were also put to the test in a competition organised by Technogym as they were asked to work online while working out. Technogym regional sales director Michele Moro with Emaar Hospitality Group CEO Marc Dardenne.
The team at Kempinski Nile Hotel in Cairo went over and above the call of duty to promote the new property for its opening in June. Eighty-seven members of staff took to the runway to showcase their uniforms, designed by Italian designer Sara Capritti.The team engaged in team building activities, one of which involved a group photograph surrounding one of the famous Egyptian pyramids.
Networking know-how
The GMs took part in a quiz while working out using Technogym Visio Web.
Hozpitality Group held an invite-only event at the Grand Hyatt Dubai to promote its new events service, Hozpitalityplus Events. More than 70 GMs and HR professionals were in attendance, with an address given by DTCM executive director Ibrahim Yaqoot.
Kempinski Nile Hotel GM Axel Ludwig with uniform designer Sara Capritta and models from the team.
Andreas Mueller, GM of Taj Palace Dubai, with Renate Raschendorfer, HR manager at Raffles Dubai.
Rotana’s Gemmy Dimitri-Rihan and JAL Fujairah GM Christian Rainalter.
DTCM executive director Ibrahim Yaqoot takes part in the networking activites.
July 2010 • Hotelier Middle East
Director of hozpitality. com Raj Bhatt.
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, awards and charity challenges to: louise.oakley@itp.com Tel: +971 4 910 8475
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CONFIDENTIAL
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I’D LIKE TO ORDER… recent trip to Lebanon reminded me of my most common hotel compliant — the room service menu. It’s the first thing I look for, but usually, the one item I never use. Either the food is reminiscent of college canteen menus or is so over-priced that I feel my money is more justified spent in a restaurant — where the service should match the dish. At a five-star hotel in Beirut I was faced with one of the worst room service menus I’ve ever seen. It was dull, expensive and dirty. Never fear, I’d seen lovely pizzas by the pool so I decided to request one of those. That wasn’t an option, nor was anything else from the poolside restaurant that offered salads, sushi, and fish and chips. The bar menu comfort foods of chilli and nachos were not available either. As a guest, I was not concerned with the operational issues behind my request or which kitchen offered which food — I was on holiday and when on holiday, you eat what you want, when you want, right? In the end I lumped for room service favourite spaghetti bolognaise, while my partner had soup. Both of us were very disappointed. I have
A
Bog standard spaghetti bolognaise remains a room service menu staple, as do sad-looking soups and sarnies.
had soup before from room service and been impressed — it has come in an insulated jug with serving after serving to help yourself to (thumbs up Shangri-La). This was a small bowl of minestrone that could have come out of a can. The bolognaise was no better; bland and dry. In another luxury hotel in Beirut, erring on the side of caution, I ordered a bowl of fries from room service. The chips themselves were fine, but the display by the room service attendant was completely over the top, hilarious momentarily, but ultimately embarrassing for both him and myself. A large table was wheeled in, cutlery for two and
Hotelier competition
plates were set up on another table, and the young lad was unsure about where to actually place the food. Australian TV chef Benjamin Christie shares my room service woes and has an interesting article about it on his website (www. benjamichristie.com). No doubt many chefs in this region agree with Christie and I’m sure as hoteliers who travel a lot, you have all felt the similar dismay when you open the room service menu to find nothing but burgers, club sandwiches, caeser salads and kebabs. Where’s the variety? I dread to think what it must be like for longstay business guests. What about
the TV snacks? (The Address gets a thumbs up for these). And why are there only a handful of options available after 11pm? What about guests arriving on night-flights? The questions go on, and they will continue to do so until hotels start making a change. Often, my hotel gripes have me labelled ‘fussy’ by my colleagues, but this time they agreed and summed up room service with one word “disgusting” — in both taste and price Rant over, but room service menus and operation is something we will be exploring in Hotelier. If your hotel is doing it right, email: louise.oakley@itp.com HME
Next issue • Country report: Morocco •Industry best practice: Revenue management
• Roundtable: Chefs • Product analysis: Gym equipment • Product guide: Beds and bedding • Technology report: Green technology • Research: Global Spa Summit • Awards: Dubai Green Tourism Awards
The lobby at The Bonnington Hotel, Jumeirah Lakes Towers.
This month one lucky reader has the opportunity to win a one night’s stay in a Deluxe Suite at the five-star Bonnington Hotel, Jumeirah Lakes Towers in Dubai. The prize is valid for two people and includes breakfast and brunch (basic package). The Bonnington Hotel features a variety of F&B outlets including Bokabento, Cavendish Restaurant, Author’s Lounge and Healey’s Bar, as well as the Leisure Deck on the 11th floor, which features a stunning pool open on three sides. To enter the competition, all you need to do is answer the following question: Where is the Bonnington Hotel located? Send your answer and contact details via email to louise.oakley@itp.com with the word COMPETITION in the subject line. Last month’s lucky winner of a Hot Stone Massage at the Flora Grand Hotel was Digna Mora, reservation supervisor at the Riviera Hotel in Dubai.
July 2010 • Hotelier Middle East
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