hospitality business me | 2013 july

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In association with... Publication licensed by IMPZ Issue 15 • July 2013 • www.hospitalitybusinessme.com News and analysis for the Middle East’s hospitality professionals GLOBAL HOTEL INDEX: Asia Pacific 66.4% - Americas 59.4% - Europe 60.40% - Middle East and Africa 64.6% (Global Hotel Index, occupancy, April 2013) gM profIlE Kempinski GM, Alejandro Bernabe talks renovation plans before his departure for the Far East vp spotlIght Ritz-Carlton on linking guest knowledge and satisfaction spEcIal fEaturE Switching to new lighting technologies rouNdtablE Debating what will change the workplace in 2014, in part one of our HR special focus also INsIdE Tenders, jobs and data In 21 years Rotana has established itself as a leading Middle East brand, with 47 properties currently operating across the region. But, says executive vice president and COO Omer Kaddouri, the best is yet to come GOING GLOBAL

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In-depth news and analysis for the Middle East’s hospitality professionals, wrapped up a in an intelligent, well designed monthly magazine.

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Page 1: Hospitality Business ME | 2013 July

In association with...

Publication licensed by IMPZ

Issue 15 • July 2013 • www.hospitalitybusinessme.com

News and analysis for the Middle East’s hospitality professionals

GLOB

AL H

OTEL

INDE

X: A

sia Pa

cific

66.4

% -

Am

erica

s 59.

4% -

Eur

ope 6

0.40

% -

Mid

dle E

ast a

nd A

frica

64.6

% (G

loba

l Hot

el In

dex,

occu

panc

y, Ap

ril 20

13) gM profIlE

Kempinski GM, Alejandro Bernabe talks renovation

plans before his departure for the Far East

vp spotlIght Ritz-Carlton on linking guest

knowledge and satisfaction

spEcIal fEaturESwitching to new lighting

technologies

rouNdtablE Debating what will change

the workplace in 2014, in part one of our HR

special focus

also INsIdETenders, jobs and data

In 21 years Rotana has established itself as a leading Middle East brand, with 47 properties currently operating across the region. But, says executive vice president and COO Omer Kaddouri, the best is yet to come

goingglobal

00 Cover July 2013.indd 1 7/2/13 1:00 PM

Page 2: Hospitality Business ME | 2013 July
Page 3: Hospitality Business ME | 2013 July

CONTENTS

cpimediagroup.com JULY 2013 HOSPITALITY BUSINESS MIDDLE EAST / 1

32 VP SPOTLIGHTRITZ-CARLTON

GLOBAL OFFICER

OF WORLDWIDE

OPERATIONS, BOB

KHARAZMI EXPLAINS

WHY YOU CAN’T

ACHIEVE LUXURY

UNTIL YOU KNOW

YOUR GUESTS

16 GM PROFILEBEFORE HIS

DEPARTURE FOR

THE FAR EAST,

KEMPINSKI MALL

OF THE EMIRATES

GM ALEJANDRO

BERNABE REVEALS

RENOVATION AND

F&B PLANS

18 COVER STORYROTANA COO AND

EXECUTIVE VP, OMER

KADDOURI ON THE

GROUP’S PLANS

TO BRANCH OUT

BEYOND THE MIDDLE

EAST, WHILE STILL

DRIVING GROWTH IN

THE UAE.

24 ROUNDTABLEPEOPLE

MANAGEMENT IS KEY

TO A SUCCESSFUL

BUSINESS AND

GROWTH. BUT HOW

IS IT CHANGING AND

WHAT WILL BE THE

KEY DEMANDS TO

EMERGE IN 2014?

44 IN ROOM TECHEVERYBODY CLAIMS

TO BE ABLE TO

PREDICT THE NEXT

BIG THING. HERE

THE EXPERT VIEW

PROVIDES INSIGHT

ON THE TRENDS THAT

WILL CHANGE GUEST

INTERACTION

36 SPECIAL FEATURELIGHTING DEMANDS

22% OF ALL THE

ELECTRICITY

GENERATED IN THE

MIDDLE EAST. HOW

CAN HOTELS WORK

TO REDUCE THIS AND

WHAT WILL LIGHT

THE FUTURE?

REGULARS 02 EDITOR’S

COMMENT

04 NEWS 09 DATA 12 DTCM

NEWS

42 PRODUCT

WATCH

51 APPOINTMENT

NEWS 52 JOBS

56 COLUMN

36

16

24

32

Page 4: Hospitality Business ME | 2013 July

COMMENT / EDITOR’S LETTER

PUBLISHER: Dominic De SousaGROUP COO: Nadeem Hood

ASSOCIATE PUBLISHERSAlex BendiouisDave Reeder

EDITORIALEditorial Director: Dave Reeder [email protected] +971 55 105 3773

Editor: Melanie [email protected] +971 56 758 7834

Photography: Anas Cherur

ADVERTISINGAlex [email protected] +971 50 458 9204

Ankit ShuklaSales [email protected] +971 55 2572807

Vass MafilasSales [email protected] +971 55 8870720

DESIGN AND PRODUCTIONArt Editor: Christopher [email protected]

Production Manager: Devaprakash [email protected]

MARKETING & DISTRIBUTIONRochelle Almeida [email protected]

SUBSCRIPTIONSwww.cpievents.net/mag/magazine.php

PRINTED BYPrintwell Printing Press LLC, Dubai, UAE

PUBLISHED BY

Head Office, PO Box 13700, Dubai, UAE

Tel: +971 4 440 9100

Fax: +971 4 447 2409

Group Office, Dubai Media City

Building 4, Office G08, Dubai, UAE

A publication licensed by IMPZ

© Copyright 2012 CPI. All rights reserved. While the

publishers have made every effort to ensure the accuracy

of all information in this magazine, they will not be held

responsible for any errors therein.

2 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

Around the corner

Is it too early to begin talking

about 2014? It seems that would

depend on who you ask.

Speaking to GMs, the key

trends will be linked to pipelines

and demand drivers. Speaking to the

area executives, it’s all eyes abroad.

But speaking to the HR specialists

garners quite a different response.

Their key market changers won’t

be the competition or the economy.

Salaries could become problematic

as the economy recovers, but that’s

another issue in itself.

No, next year is already set to be

far more intricate than any of these

factors would suggest.

The word is already in people’s

minds, but not necessarily on their

lips, and therein lies the problem.

It has recently been publically

discussed by UAE President Sheikh

Khalifa and has already been covered

in the pages of this magazine. The

key game changer next year, will be

nationalisation.

Re-drawing the boundaries and

dynamics of business, the experts

say this isn’t about tempting young

Emiratis into the private sector.

Instead it’s about readying the private

sector for their arrival.

It turns on its head every previous

concern about integration, training

and salary structures and it puts the

proverbial ball firmly back in the

court of the employer.

What does it mean to prepare a

business to integrate the youth of

its host country? How can this be

measured? And what will be the

price if these theories – as intangible

as they are – are not achieved?

For the (suggested) answers, turn

to page 24. But do be warned, they

are not black and white. Instilling

a change in culture within existing

businesses – and the concept of

‘existing’ in the hospitality industry

often means decades old and

multinational in structure – is no

mean feat. This is an issue that,

as much as revenue, headcounts,

and market demands do, will

dictate growth and will have to be

considered in expansion plans.

The final echoes of the

conversation were ones of “act

now to make tomorrow easier”. If

you don’t believe it, consider the

current situation, deadlines hanging

overhead, that businesses in Saudi

Arabia currently face.

Next month the people

management theme continues with

an in-depth discussion on Gen Y;

how they are changing the work

place, and where, as a result, the

power now lies.

It’s food for thought for us all.

MELANIE MINGAS

EDITOR

Hospitality Business Middle East official media partner

28 - 30 September 2013

Page 5: Hospitality Business ME | 2013 July

Glion Institute of Higher Education

Ranked number 2* among all international hos-pitality management schools in the world for an international career, Glion’s 100% online pro-grams are dedicated to developing executive talent for the global hospitality and wider ser-vices industry. As a market leader in hospitality management education and with close ties to the industry, Glion delivers tailor-made online programs for corporate partners and individu-als. Contact us for more information.

Glion’s Suite of Online Programs:

* Statistically, three institutes occupy this ranking position (TNS Global Survey, September 2010).

EDUCATING THE LOCAL HOSPITALITY SECTOR

For more information visit:www.gliononline.comEmail: [email protected]

GLION 100% ONLINE HOSPITALITY MBACONTACT NOW TEL: +31 20 7192500 EMAIL: [email protected]

Page 6: Hospitality Business ME | 2013 July

NEWS WATCH

4 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

86% OF GLION STUDENTS OFFERED

JOBS BY INTERNATIONAL BRANDS

MENA NEWS

Renaissance Hotel’s Cairo launch

The independent unbranded hotel

market needs to increase its pro-

activity online in order to maximise

profits, according to leading online

and digital experts.

Discussing the impact of online

marketing and OTAs (online travel

agents) as business leads at a forum

organised by HSMAI, representatives

from Google, Facebook, Jumeirah

Group, GTA and Sabre Hospitality

urged independent hoteliers to

realise the reach and potential of

social media and web bookings in

order to increase direct bookings,

Renaissance Hotels has announced the

opening of its new Renaissance Cairo

Mirage City Hotel, the first Renaissance

Hotel in the Egyptian capital. Minutes

away from Cairo Airport, the 333-

room hotel and suites offers seven

meeting rooms, a 1100sqm events

space, including ballroom and a range

of F&B offerings.

“We are thrilled to introduce

the Renaissance Hotels brand to

Cairo,” said Magdy Naguib, general

manager of the hotel. “With its sleek

design and signature Renaissance

Hotels programming including

NAVIGATOR and RLife LIVE, we are

confident the hotel will be a popular

destination for guests and locals alike.”

The 333 room Renaissance Cairo Mirage City Hotel is located close to Cairo Airport.

“Use online to boost profits” especially from repeat business.

“OTAs are buying the key words

of the hotels in order to attract the

business without any proactivity

from the hotels to take charge of their

own sales and invest in the people to

direct that area of the business,” said

Alexander Barder, regional director

of business development, MEA, Sabre

Hospitality. He added: “Another key

area is the user experience of a hotel’s

website. You have to give site users the

same experience on your hotel website

as they would get on Expedia, etc. The

websites of independent hotels need to

be quality, responsive platforms that

allow users to actually make a booking

on various tablet and mobile devices.”

Added Walid Driss, Facebook

MENA: “The OTA brings you new

customers and its then up to the hotel

to maintain communication with

those customers. If an OTA is taking

repeat bookings from the same guest,

something has gone wrong.

“If businesses want to go direct

Facebook gives almost instant success.

If you do it right, you can reach your

guests directly, communicate with

them after check out and before check

in and provide them a direct link

to book, without going through the

OTA,” Driss continued to advise.

Page 7: Hospitality Business ME | 2013 July

NEWS WATCH

250,000 REGISTERED USERS OF

HOZPITALITY.COM

cpimediagroup.com HOSPITALITY BUSINESS MIDDLE EAST / 5JULY 2013

Rotana executive VP and COO, Omer

Kaddouri, has announced details of

the group’s extensive expansion plans

to Hospitality Business Middle East.

Explaining how the company

will steer a 100% portfolio increase,

Kaddouri said: “We are building

that as we grow. As we develop the

company, we are also developing and

enhancing our corporate platform

to make sure we can reach out and

accomplish everything we need to do

well, as if we only had 10 or 15 hotels.”

The plans will see 10 new

properties added to the Rotana

Hospitality employment and

networking portal, Hozpitality.com, has

launched its own dedicated hospitality

TV channel.

Already confirmed to feature are

Jumeirah Creekside Hotel, Premiere

Inn Hotels, Ramada Ajman and Beach

Hotel, Citymax and Jebel Ali, the

channel will also be present to capture

all the action at The Hotel Show,

September 28 – 30.

Hozpitality founder and director,

Raj Bhatt, has called the new platform

an essential extension of the existing

website, which currently reports

250,000 registered users.

From its headquarters in Dubai,

in addition to listing hospitality

and hotel jobs in Middle East to

the Americas, the website also

provides an effective platform for

hospitality community networking

and brand advertising for top

hospitality companies and suppliers.

Hozpitality.com is a subsidiary of

VR Online Portal.

Hoteliers wishing to contact the channel for more information can email: [email protected]

Accor is to launch its new Aparthotel

brand to the Middle East with a

scheduled Q3 2013 opening in Abu

Dhabi, the first of 10 properties.

The 279 apartment Adagio Abu

Dhabi Al Bustan will be closely

followed by two more properties over

the coming 18 months, with a total

planned inventory of 10 properties

“Building as we grow”

Aparthotel to launch in MEacross the region’s key cities within

three years.

Currently, five of these properties

will be under construction or fully

operational by 2013 end, says Accor

and plans to bring Aparthotel to

Riyadh, Jeddah, Doha, Makkah,

Dammam and Al Khobar are already

in the “advanced discussions” stage.

portfolio by mid-2014, with another

10 added the following year, until the

portfolio has been doubled within

five years. There are also plans to

open representative offices on new

continents and Europe has not been

ruled out for hotel projects.

Speaking of his plans for the

company next decade, Kaddouri

added: “By that point we will have

reached a whole new dynamic that

will keep us very busy.”

Turn to page 18 for the full story and

interview.

Adagio Abu Dhabi Al Bustan will open in Q3, 2013.

Hozpitality hits the silver screen

Page 8: Hospitality Business ME | 2013 July

NEWS WATCH

6 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

$196.06 TRIPINDEX COST EVENING OUT AND AN OVERNIGHT STAY IN

SOFIA, BULGARIA, THE LEAST EXPENSIVE DESTINATION

MENANEWS

NEWS IN BRIEF

86% OF GRADUATES OFFERED JOBSGlion Institute of Higher Education has

revealed that 86% of its graduating class

this year received one or more job offers

before their diplomas were granted, and

100% of its job seeking students were

offered positions.

According to other data released by

the school, 13.6% of graduates in the

management programme – selected as

a line of study by 48% of Glion’s total

student body – hold positions in sales or

marketing, while 11.4% choose the rooms

division.  Other graduates are currently

working in the restaurant business or in

the areas of human resources, finance, or

events management.

Mandarin Oriental, Starwood,

InterContinental, Four Seasons, Hilton,

Marriott and Hyatt were among the

hiring chains.

OBEROI OPENS IN DOWNTOWNHotel operators and airport catering

firm The Oberoi Group, have announced

the opening of their first UAE property,

Oberoi Dubai, adding to a portfolio of

30, 5-star hotels.

The Oberoi, Dubai, is located at The

Oberoi Centre, overlooking Burj Khalifa

– a view maximised by floor to ceiling

windows in each of the 252 rooms and

suites. The hotel has four restaurants.

TITANIC CLOSE CONFIRMED Meliá Dubai has closed its signature

Marco Pierre White restaurant Titanic and

will reveal plans for its replacement over

the summer.

Calling the close a “mutual decision”,

a statement from Enrique Ortiz, VP of

operations EMEA, hotel division, Meliá

Hotels International read:

“We were pleased to launch our

first hotel in the GCC with a signature

restaurant from such a recognised name

in the industry and Marco Pierre White

brought a great depth of knowledge

with him. However, one year on... It is

time to take a different path. We wish

Marco all the best.”

Anantara has announced the opening of

its 23rd property worldwide, Anantara Al

Yamm Villa Resort, Sir Bani Yas Island,

Abu Dhabi. It is the island’s second

resort after the opening of Desert

Islands. The luxury beach villa complex

comprises 30 luxury, beachfront villas;

21, 1-bedroom villas overlooking the

Arabian Sea; and seven, 1-bedroom

villas and two 2-bedroom villas

Second Sir Bani Yas resort opensoverlooking the salt water lagoon.

The resort has been designed to

offer an alternative stay experience

complementing the existing Desert

Islands Resort & Spa by Anantara.

This opening is the first of two new

developments to be planned for the

expansion of the island, with Anantara

Al Sahel Villa Resort slated to open

2013 end.

Anantara Al Yamm Villa Resort is the group’s second resort on Sir Baniyas Island.

Hoteliers have demanded a list of

approved suppliers to help them

source truly sustainable materials and

appliances to meet green targets and

certifications.

Speaking at the launch of Emirates

Green Building Council (EGBC)

Green Key initiative, a hospitality

sector focussed programme with

the purpose of diversifying EGBC’s

capacity, a panel discussion chaired

by Hospitality Business magazine

editor, Melanie Mingas, concluded

that approved suppliers would make

the sourcing of genuinely sustainable

products easier.

Speaking with reference to the

Masdar Future Build programme,

which has an approved supplier list

for building supplies in the Emirate of

Abu Dhabi, Sebastian Weyer, director

of engineering, Westin Abu Dhabi,

commented: “The Masdar Future

Build list of approved suppliers has

helped us a lot and what we ask is

to see the Future Build certificate in

order to use that as the benchmark to

help us source sustainable goods.”

Starwood’s Westin brand was

one of the first to introduce energy

monitoring to its properties in 2002

and has been accredited for 11 years.

Weyer was joined on the panel

by Fathuma Hamziya, HR manager

and regional ‘responsible business’

coordinator for Radisson; and Vinesh

Hurrychurn, director of engineering,

MENA, for Hilton.

Adding that the will of owners to

invest in sustainable building systems

is also key to greening the UAE’s hotel

stock, the panel reported that many

discussions currently are based on price,

rather than a sense of responsibility.

Hoteliers demand approved green suppliers

Page 9: Hospitality Business ME | 2013 July
Page 10: Hospitality Business ME | 2013 July

NEWS WATCH

8 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

200thHOTEL OF IHG HAS JUST

OPENED IN CHINA

GLOBAL NEWS

A Hyatt affiliate has entered into a

management agreement with State

Unitary Enterprise (Poytaht Qurilish

va Xizmat) for a Hyatt Regency hotel

in Tashkent, Uzbekistan

The new property will join other

Hyatt outlets at Yekaterinburg,

Kiev, Baku, Bishkek, and Dushanbe,

making it the 6th CIS property for

the chain.

Globally, it makes Hyatt’s pipeline

the largest it has ever been.

“We are delighted by the plans

for the first Hyatt-branded hotel in

Uzbekistan,” said Peter Norman,

senior vice president, real estate

and development, EAME for Hyatt

Hotels and Resorts.

“The CIS is establishing itself as

both an international business hub

and an attractive tourist destination,

and we believe the Hyatt Regency

brand and the enviable cosmopolitan

Wyndham Hotel Group, the world’s

largest hotel group, is to launch its

fourth brand in Turkey since 2007,

with the opening of 20 Super 8

hotels, taking the total number of

Wyndham brands in Turkey to four.

Meeting mid-range market needs

the launch comes only six months

since the introduction of Wyndham’s

upscale brands Wyndham Hotels

and Resorts and TRYP by Wyndham.

No retraction of the plans have been

stated in light of the ongoing political

unrest in the country.

“To now launch our Super 8

brand is extremely exciting as it

truly enables us to offer a solution

to each and every guest in the

market, regardless of budget or

travel purpose,” said Eric Danziger,

Wyndham Hotel Group president

and chief executive officer.

InterContinental Shanghai Ruijin

has opened in China, marking IHG’s

200th property in the country.

The first international hospitality

company to enter the now lucrative

market, IHG is now the largest

international operator in China, with

170 hotels in the pipeline.

According to the forecasts by the

World Tourism Organisation, the

Chinese hotel room market will

overtake that of the US, which is

currently the largest in the world, by

2025. By 2039 China’s will be twice

the size of the US’s. In light of the

rapidly growing market, IHG will

continue its commitment to China.

Over the next 20 years, IHG plans

to increase by almost eightfold,

the number of hotel rooms it has

in Greater China, which equates

to about 360,000 rooms and an

additional 300,000 new jobs.

IHG opens 200th China hotel

A premier room at the InterContinental Shanghai Ruijin.

Hyatt Regency for Uzbekistanlocation will attract international

travellers visiting Tashkent. This

announcement demonstrates our

commitment to growing our brand

presence in new markets.”

Prominently located next to the

National Library on the city’s main

street, Hyatt Regency Tashkent will

offer 300 guest rooms, including

44 suites, two restaurants, a bar

and lounge, more than 1,200

square meters of meeting facilities

including a ballroom, and a spa and

fitness club.

The hotel will be designed to

become the preferred venue for

the international conferences and

festivals for which Tashkent has long

become a popular destination.

The property is so far scheduled to

open in January 2015, and no further

hotels are in the pipeline for Hyatt in

Uzbekistan.

Wyndham Super 8 in

Turkey expansion

Page 11: Hospitality Business ME | 2013 July

DATA WATCH

HOSPITALITY BUSINESS MIDDLE EAST / 9JULY 2013cpimediagroup.com

Special focus: Asia Pacific hotel results for May 2013Data by STR Global shows the Asia Pacific region experienced three decreases in performance in May

Hotels in the Asia/Pacific region

experienced decreases in the

three key performance metrics

in May 2013 when reported

in U.S. dollars, according to data

compiled by STR Global.

In May, the Asia/Pacific region’s

occupancy ended the month with a

1.3-% decrease to 65.9 %, its average

daily rate dropped 2.5 % to US$119.69

and its revenue per available room

was down 3.8 % to US$78.82.

“In U.S. dollars, Asia/Pacific was

the only global region to report

negative RevPAR growth year-to-date

2013, falling 3.1 %”, said Elizabeth

Winkle, managing director of STR

Global. “The RevPAR decrease was

mainly driven by Central/South Asia,

where countries such as India are

suffering from oversupply, and in

Northeastern Asia, where countries

such as China are reigning in

spending. However, Southeast Asia

is reporting strong growth, where

markets such as Jakarta are posting an

18.2 % growth in ADR year-to-date

2013; ADR growth is driving RevPAR

performance in this region”

Highlights from key market performers for May in local currency (year-over-year comparisons):

KEY FIGURES -1.3%OCCUPANCY

-2.5%ADR

-3.8%REVPAR

experienced double-

digit ADR increases:

Taipei (+14.9 %

to US$207.96);

Zealand (+12.3 %

to US$112.49); and

US$107.43).

reporting the largest

decrease in that

metric.

-

rienced the only

double-digit RevPAR

% to US$82.23.

% in RevPAR

reporting the largest

decrease in that

to US$92.36) and

US$133.22

HIGHLIGHTS FROM

KEY MARKET

PERFORMERS FOR

MAY IN U.S. DOLLARS

(YEAR-OVER-YEAR

COMPARISONS):

PERFORMANCES OF KEY COUNTRIES IN MAY 2013 (ALL MONETARY UNITS IN LOCAL CURRENCY):

Country Occupancy % change ADR % change RevPAR % change

Australia 69.8% -2.0% AUD171.79 +0.1% AUD119.86 -1.9%

China 63.0% -3.2% -3.9% CNY376.34 -7.0%

India +2.0% -3.3% -1.4%

Singapore 81.6% -0.3% +0.4% SGD238.30 0.0%

occupancy to 85.4 %, reporting the

largest increase in that metric.

TWD6,248.09), and Jakarta,

IDR1,056,378.88), achieved the

largest ADR increases in May.

double-digit RevPAR increases:

largest decrease in all three key

performance metrics. The market’s

occupancy fell 12.9 % to 74.0

%, its ADR was down 9.2 % to

Page 12: Hospitality Business ME | 2013 July

DATA WATCH

10 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

Data watchGlobal hotel data review for May 2013 from STR Global

MAY 2013 VS MAY 2012

ASIA PACIFIC

OCC% ADR PERCENTAGE CHANGE

2013 2012 2013 2012 OCC ADR REVPAR

66.7 119.69 122.77 -1.3 -3.8

REVPAR

AMERICAS

OCC% ADR PERCENTAGE CHANGE

2013 2012 2013 2012 OCC ADR REVPAR

64.0 63.3 111.69 107.94 1.2 4.7

REVPAR

EUROPE

OCC% ADR PERCENTAGE CHANGE

2013 2012 2013 2012 OCC ADR REVPAR

72.0 70.2 136.49 133.34 2.6 2.4

REVPAR

MIDDLE EAST/AFRICA

OCC% ADR PERCENTAGE CHANGE

2013 2012 2013 2012 OCC ADR REVPAR

62.7 60.2 144.41 4.1 9.8

REVPAR

2013 2012

78.82 81.90

2013 2012

2013 2012

2013 2012

KEY FIGURES

1.2% YOY AVERAGE OCC

FLUCTUATION

-2.5% YOY AVERAGE ADR

FLUCTUATION

5% YOY AVERAGE REVPAR

FLUCTUATION

$152.29 CURRENT AVERAGE

ADR

78.822013 YTD AVDERAGE

71.482013 YTD AVDERAGE

98.302013 YTD AVDERAGE

95.502013 YTD AVDERAGE

71.48 68.28

98.30 93.62

95.50 86.97

Page 13: Hospitality Business ME | 2013 July

DATA WATCH

HOSPITALITY BUSINESS MIDDLE EAST / 11JULY 2013cpimediagroup.com

0

20

40

60

80

100

120

YTD May 2013 Rev PAR

-3-2-1012345678

YTD May 2013 % Change

ASIA PACIFIC AMERICAS EUROPE MENA

ASIA PACIFIC

AMERICASEUROPE

MENA

OCCADRREVPAR

KEY FIGURES

64.8% AVERAGE

ARABIA MAY 2013

53% AVERAGE

MAY 2013

58.1% AVERAGE

AFRICA MAY 2013

75.1% AVERAGE

2013

31.1%RevPAR % CHANGE TO

3.2%RevPAR % CHANGE TO

8.5%RevPAR % CHANGE TO

16.9%RevPAR % CHANGE TO

The region reported a 4.1%

increase in occupancy to 62.7%,

a 5.5% increase in average daily

rate to US$152.29 and a 9.8%

increase in revenue per available room

to US$95.50 for May 2013.

“With the exception of Southern

Africa, the Middle East/Africa region

is posting the highest RevPAR growth

in U.S. dollar terms among the four

Middle East/Africa May resultsThe Middle East/Africa region reported positive performance results during May 2013

for May 2013 include (year-over-year

(+12.4 % to 64.7 %).

experienced the largest ADR increases.

Dubai (+18.8 % to US$173.09); Jeddah

(+17.2 % to US$206.62); and Abu Dhabi

Highlights

Country Occupancy % change ADR % change RevPAR % change

Egypt EGP480.19 24.9% 31.1%

Saudi Arabia 64.8% -4.8% +8.3% SAR431.33 +3.2%

South Africa +0.8% ZAR918.18 +7.6%

United Arab Emirates +7.4% AED693.30 +8.9% +16.9%

major global regions”, said Elizabeth

Winkle, managing director of STR

Global. “Morocco, one of the few

countries to avoid the Arab Spring,

is currently reporting the highest

demand growth year-to-date 2013 of

shows a notable increase in occupancy

Page 14: Hospitality Business ME | 2013 July

12 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

DTCM NEWS

German Travel Agents learn why ‘Summer is Dubai’DTCM and a range of partners from

across the city’s tourism industry

played tour guide to 100 German

travel agents, demonstrating why

Dubai is the perfect summer

destination, during a four day ‘mega’

familarisation trip, June 7 – 10.

Organised to promote Dubai’s

destination credentials to key travel

agents and tour operators from

the most important source market

in Central Europe for Dubai, the

itinerary highlighted Dubai as a

perfect destination for a multitude

of travellers including families, thrill

seekers, couples, shopaholics, food

IN FIGURES

315,000 GERMAN VISITORS

ARRIVED IN DUBAI

IN 2012

14% INCREASE YOY IN

GERMAN VISITORS

FROM 2011

68,000 GERMAN CRUISE

VISITORS DOCKED

IN DUBAI IN 2012

‘Summer is Dubai’, is a three month campaign promoting the festivals and celebrations that are central to Dubai‘s summer season.

lovers, and culture enthusiasts. The

guests had the opportunity to see

Dubai from Burj Khalifa’s ‘At the

Top’; to shop at ‘Dubai Mall’; to enjoy

winter at ‘Ski Dubai’; and to explore

the water world of ‘Aquaventure’ at

Atlantis, The Palm.

During a workshop - held at

Atlantis, The Palm - representatives

from DTCM and key partners from

Dubai’s hotel and tourism industry

provided detailed information and

updates on Dubai through a number

of talks and presentations. This

included a briefing on ‘Summer is

Dubai’, the three month campaign

which is currently attracting visitors

to the Emirate through a series

of festivals, special occasions and

celebrations that are central to Dubai’s

summer season.

Saleh Mohamed Al Geziry, director

of overseas promotions and inward

missions for DTCM commented:

“Throughout the year, through our

network of 19 overseas offices DTCM

organises familiarisation trips with

major tour operators from various

global markets in order to further

understanding of Dubai’s wide and

substantial tourism offering. The fam-

trips are an effective way of building

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DTCM NEWS

HOSPITALITY BUSINESS MIDDLE EAST / 13JULY 2013cpimediagroup.com

What the participants said

Conrad Dubai granted 5-starsDTCM has granted a 5-star rating to

Conrad Hotel Dubai. The rating field

tour was attended by Majid Al Marri,

director of classification, and Atef

Najib, director general and private

property manager, DTCM, staff from

the Classification sector, and hotel

management.

Majid Al Marri, director of

classification at DTCM commented:

“Conrad Hotel Dubai is a new

addition to the hotel industry in

Dubai. We have conducted a number

of field visits earlier to ensure the

hotel complies with all the listing and

classification procedures”.

Al Marri added that the hotel offers

variety of facilities and remarkable

restaurants for its distinguished guest

with worldwide inspired cuisine and

sophisticated surroundings.

The hotel enjoys great location

relationships with key influencers

in the industry and increasing their

knowledge of and affection for the

Emirate. Germany is one of our key

source markets and this fam-trip

focused on educating German travel

agents on Dubai’s new attractions and,

in particular, its appeal as a summer

destination.”

The agents were chosen from the

readership of the leading German

travel trade publication TRAVEL

ONE, following a competition

organised by DTCM’s Germany office,

in the magazine. Saleh Mohamed Al

Geziry continued: “The demand from

travel agents across Germany to be

part of this familiarisation trip was

very high, indicating the continuing

interest in Dubai from the country.

Their feedback during the trip was

very positive, with many commenting

that it had transformed their view

of Dubai as a summer destination.

Feedback from our partners who

helped us to stage the event and took

part in the presentations was also very

positive, with them forecasting many

upcoming deals with the agents.”

With The Address Hotels and

Resorts and JA Resorts and Hotels

supporting the famtrip, agents

enjoyed their stay at world class

luxury hotels including Ocean View

Hotel and Oasis Beach Tower by JA

Resorts and Hotels and The Address

Downtown Residence, The Address

Dubai Mall Residence, Armani Hotel

and Al Manzil Hotel by The Address

Hotels and Resorts.

Lunches and dinners at The

Address Hotels & Resorts, Jebel Ali

Beach Hotel, Atlantis, The Palm and

Rixos The Palm helped to showcase

the Emirate’s diverse culinary scene

and as the destination management

company for the event, Gulf Ventures,

provided logistical support.

This mega familiarisation trip came

soon after last month’s famil-trip

when DTCM and Emirates hosted

280 travel agents from Australia, New

Zealand and Spain.

Doris Schmitzberger, owner of

Reisen-Schmitzberger

“I have visited Dubai four times, most recently

two years ago. Despite the short period of

time, I have witnessed a huge change in the

city’s infrastructure and monuments, and it

is a miracle to see so many new hotels and

attractions added during these two years.”

Frank Bokenkroger, owner of

Aster Reise Service

“This was my second visit to Dubai, my

first being 15 years ago and I have been

astonished to witness such a huge difference

with amazing attractions such as Burj Khalifa,

Dubai Mall and Atlantis - a difference you

can’t find in any other city in the world.”

Steffi Breternitz, senior project manager

at BCD Travel Groups in Frankfurt

“I was truly amazed at the changes in

infrastructure and new landmarks Dubai has

added in the past five years. Dubai is one of

the most sought-after and fastest growing

destinations worldwide, attracting a large

segment of vistors over the past few years

and MICE tourism has gained momentum

worldwide and more. People in Dubai always

have smiles on their faces no matter which

nation, culture or religion they are from

and this is something unusual, not found

elsewhere in the world.

Marco Greiner from Novo Tours

“This is my first visit to the city and when

it comes to shopping malls, Dubai is a

leading shopping and lifestyle destination.

The collection of luxury hotels, the Dubai

Metro, The Palm, and Burj Khalifa are

unbelievable. This visit was the best trip I

have been on and I will certainly promote

Dubai once I am back in Germany and

persuade German tourists to visit Dubai

during summer.”

in the heart of Dubai’s commercial,

business and entertainment district in

Sheikh Zayed Road adding a further

555 rooms that will make a thriving

addition to the community.

At the end of the visit, Mr. Atef

Najib, director general and private

property manager, and management of

the enterprise thanked the Department

of Tourism for their efforts in

supporting tourism in the Emirate.

The teams from DTCM and Conrad at the property.

Page 16: Hospitality Business ME | 2013 July

cpimediagroup.com

Has the demand for technology from Jumeirah customers grown in recent years? If so, how?We are certainly seeing our

guests come in with more of their

own technology and more connected

devices than ever before. Whether

it’s a guest’s own laptop, tablet or

smartphone, each device requires

connectivity to the Internet, and

this places significant pressures

on network infrastructure and

bandwidth. Therefore, adequate

wireless Internet capability is an

absolute bare minimum. Guests

are also keen to try out many of

the new technologies that we have

implemented, such as iPads in our

hotel rooms, the latest Interactive

TV systems, or innovative ways to

interact with and control the room.

Are there any minimum standards or basic requirements for technology for hotels across the UAE and GCC?I would certainly say so. At Jumeirah,

we maintain a set of IT Brand

Standards that are regularly updated

to incorporate advancements in

technology. Our Brand Standards

specify minimum requirements for

different types of technology within

our product set all across the globe.

If an exception to the standard is

required due to a region or hotel-

based requirement or restriction, this

is handled on a case-by-case basis.

Providing mobility is the key, as

nearly all guests will have at least one

or multiple mobile devices, which

of course require connectivity. So

from a guest-facing perspective,

fast, reliable and comprehensive

WiFi internet service is an absolute

must. Internally from an operations

side, a robust Property Management

System and Point of Sale system is

Providing mobilityShafayat Miah, director of digital development at Jumeirah Emirates Towers, shares his tech tips

an absolute necessity as a core basic

requirement.

Have you found that new technological demands have affected room rates?Our room rates reflect the quality

of our entire product, and are based

on a number of factors including the

configuration of a room or suite, the

in-room experience, the facilities

available at the property, the location

of the property and general market

conditions. Technology is just one

part of this.

Do you think the UAE is as up to date with technology as the rest of the world?We are fortunate in that the hotels in

the UAE are relatively young, and as

such have been able to implement not

only the latest, but also best in class

technology. We also have a population

that is quite tech-savvy and

comfortable in being early-adopters.

And of course, industry-based trade

shows such as The Hotel Show also

play a part in bringing the latest and

greatest technology to our shores.

Why is technology so important in Jumeirah Hotels?Technology plays a part in every

single aspect of a guest’s journey.

From dreaming about staying

with us, to researching one of our

properties online, to booking their

stay through Jumeirah.com, to

experiencing our in-room and on-

property technology, and finally to

sharing their experiences through

social media; there isn’t a component

that technology doesn’t touch. But

more than anything, technology

helps deliver the service levels that

Jumeirah is renowned for, especially

in all of the infrastructure and

enterprise solutions that the guest

does not necessarily see.

In essence, technology is yet

another way for us to achieve our

‘Stay Different’ brand promise. One

way we aim to go the extra mile is by

providing extra services such as free

WiFi in all of our vehicles and our

‘virtual concierge’ app which is even

available on 24 karat gold iPads in

every suite at Burj Al Arab.

How do you feel the technology sector will benefit from The Hotel Show in 2013?The Hotel Show is fantastic in that

it allows us to solidify relationships

with our existing partners, but

also to see advancements in

technology from other exhibitors

with whom we may not already

have a relationship with. More

than anything, it helps us keep our

fingers on the pulse of the industry.

From an exhibitor perspective,

where better to present your latest

technology than here in Dubai,

where you have some of the biggest

players in hospitality on your

doorstep.

Shafayat Miah, Director of Digital

Development, Jumeirah Group.

14 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

Industry-based trade shows such as The Hotel Show also play a part in bringing the latest and greatest technology to our shores.

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Reporting a 20% rise in GOP and 15% increase in RevPar this year, despite being in the midst of an extensive, multi-million dollar refurbishment project, Kempinski Mall of The Emirates is going from strength to strength, says outgoing GM Alejandro Bernabe

It would be fair to assume that

of Kempinski’s entire Middle

East portfolio, its seven-year-old

Mall of The Emirates property

wouldn’t be the focus of attention this

month. But in spite of the imminent

opening of Kempinski The Palm,

and a select number of new projects

in the pipeline, the 48,000sqm hotel

adjoined to one of Dubai’s premier

shopping destinations, is going from

strength to strength.

Building on the success of a

spectacular lobby re-design, by 2013

end the hotel will have doubled its

fine dining offerings from two to

four outlets, with the introduction

of an authentic tapas lounge and the

extension of a family restaurant with

shisha lounge on the rooftop terrace.

A new concept for the all-day dining

outlet is still to be finalised. In January

2014, the 18 month room renovation

project will commence to update

the three key elements of bathroom,

technology and ambience.

“In terms of results, 2012 was

fantastic and we thought 2013 would

be difficult because of the ongoing

work to the hotel, but so far we have

seen a 20% increase in GOP and 16%

increase in RevPar in the first quarter.

The rest of the year is looking strong,”

says GM Alejandro Bernabe, who last

month announced he is to relocate to

Siam Kempinski Hotel, Bangkok.

The overhaul won’t just be aesthetic,

in 2012 Kempinski made a company-

wide decision not to outsource its

F&B, instead presenting owners

with a full service, speciality hotel

management package. The model

will be implemented across all four

of Kempinski Mall of The Emirates’

outlets, bringing a fine dining option

to the Barsha clientele, currently only

served by casual dining throughout the

neighbourhood and mall.

“We want to establish our own

restaurants and this fits very much

with the vision of our owners and the

niche we believe there is to be filled

here,” Bernabe explains.

“Imagine you are an owner and

you hire a management company

to operate for you but they say they

can manage the hotel, but the outlets

are then managed by subcontracted

parties. It’s not the right approach.

We want to tell our owners that we

are experts in hospitality, we have

the F&B knowhow, and we believe

F&B can make money to elevate the

value of the property,” he reasons,

continuing to reveal details of the

tapas lounge, which, with a 90 person

capacity will aim for 150 – 200

covers nightly, while targeting the

local business market for an express,

speciality lunch option.

“The designers are from Barcelona,

the chef, manager and music will all be

GM PROFILE

Probably, we are the most fortunate hoteliers right now, in the world

Page 19: Hospitality Business ME | 2013 July

GM PROFILE

HOSPITALITY BUSINESS MIDDLE EAST / 17JULY 2013cpimediagroup.com

KONSTANTIN ZEUKE, NEWLY APPOINTED GM, KEMPINSKI MALL OF THE EMIRATES

Konstantin Zeuke takes over from Alejandro Bernabe who is joining the Siam Kempinski Hotel in Bangkok as GM. Zeuke joined Kempinski in 1998 as Assistant Front Office Manager at the Kempinski Vier Jahrezeiten in Munich, Germany.

Prior to moving to Slovakia in November 2007, Konstantin held his first position as GM and successfully opened the Kempinski Hotel Grand Arena Bansko, which became the first Leading Hotel of the World in Bulgaria.

In 2009 he was in charge of opening the first luxury five star hotel in Slovakia, and in June 2010 he successfully opened yet another Kempinski hotel in the capital of the Slovak republic, the Kempinski Hotel River Park Bratislava.

Spanish, but it will not be kitsch, with

bullfighters and flags. It’s something

aligned to current fine dining options

in Barcelona and Madrid.”

With the project ongoing, the budget

falls between $68m to $81m, an amount

testament to the importance owners

Majid Al Futtaim place on the property.

Trend watchAt World Travel Market 2012, mall

hotels were hotly tipped for success

and it would be easy to match that

prediction with Kempinski’s success,

concluding the two are linked –

especially when considering that

this mall records an annual footfall

of 36million and has only two hotels

adjoined. But as Bernabe explains

things aren’t so simple.

“Hotels attached to malls are

not automatically a recipe for

success, you have to look at more

components. You have some mall

hotels where both the mall and the

hotel are not doing well. To be really

successful you have to look at which

brands are best to pair up, along with

the location, and if you get those

things together you can be very

successful.

“Moving forward, I think Dubai

will begin to see some boutique hotels,

possibly with an Arabic theme because

so far this is non-existent, and there

will be more big complexes, like the

new Habtoor complex on Sheikh

Zayed Road. We will go in both

extremes I think,” he continues, hinting

that the opening of specific luxury,

Kempinski residences on The Palm

Jumeirah – the third such property in

the region after Doha and Jeddah –

could be another growth area.

“You don’t see many residences

managed by luxury companies, so

there is potential there, for branded,

upscale residences.”

For now the focus is clear,

introduce new GM Konstantin

Zeuke to the property, launch the

new F&B concepts and begin work

on 393 guest rooms. For Kempinski,

Bernabe insists the plan is not about

rapid growth.

The group plans to expand its

world-wide portfolio from 73

properties to 120 by 2015, but Barnabe

insists growth will be measured in

order to prevent a dilution of the

brand with an influx of B-location

properties and rapidly-hired staff. He

also admits that while options have

been presented by various owners,

overall growth is a global strategy, not

local, and something to be carefully

considered when there is an upper

limit on the number of total properties

Kempinski wishes to manage.

“The Kempinski philosophy is to

continue growing, but with limited

numbers. We don’t want to be bigger

than our age, and in the same way

we wouldn’t put 10 hotels in Dubai

because that would compromise our

growth in other areas.”

“Every single hotelier in this market

is very fortunate. Emirates Airlines

is bringing many new clients to

Dubai and DTCM is doing a great

job marketing and helping with

regulations; keeping the city clean and

organised and safe; and we need to

continue growing, but with quality.”

The approach is refreshing for a

brand established in a city that is

tangibly gearing up to double visitor

numbers in seven short years, and in

response is building dozens of hotels.

But beyond thinking purely about

Dubai and its Expo2020 ambitions

Kempinski is thinking about its own

growth and brand preservation. Over

the seven years the hotel has been in

Dubai it has already experienced one

incredibly steep peak and trough and

a measured approach to creating a

future built on quality is something

many other chains could learn from.

520STORES IN MALL OF

THE EMRIATES 393ROOMS

15YEARS IN THE MIDDLE EAST

48,000SQM PROPERTY

2006OPENED

4F&B OUTLETS TO

BE OPERATING BY 2013 END

Designs have progressed substantially from the initial concepts, pictured above.

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COVER STORY

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COVER STORY

HOSPITALITY BUSINESS MIDDLE EAST / 19JULY 2013cpimediagroup.com

Most hotel operators reach an

age greater than 21 before

ambitiously and publically

announcing plans to execute a

100% expansion programme,

entering regions others barely speak of,

let alone open hotels in.

But for a brand with the heavyweight

presence of Rotana, the likes of Iraq,

Yemen, Turkey and Africa are firmly

on the cards, as are Oman, Bahrain,

India, Turkey and Jordan.

By this time next year, Rotana

will have taken its total inventory

from 47 operating properties to 57,

projections for the following year will

see that number rise again to 67, and

the growth will continue – across all

four of the operator’s existing brands

and one new brand, The Residences

(see box overleaf) – until the current

inventory has been doubled.

It is estimated this will be achieved

within five years.

One of the few chains currently

operating in the region that caters

to more than one market segment,

Rotana is not only covering a

vaster area, but taking on ever

bigger properties, with the average

number of rooms rising in each of

its new hotels.

Despite being a UAE brand, with

imminent plans to have a hotel

in each of the seven Emirates and

a luxurious new resort recently

announced for Saadiyat Island, Abu

Dhabi, executive vice president and

COO Omer Kaddouri reveals that

the main growth is coming from

non-UAE markets, such as Bahrain,

which will see more properties

open after the successful launch of

Majestic Arjaan by Rotana in March

of this year.

Jordan is also earmarked for more

hotels, with the first Arjaan branded

apartments opening this year.

“Iraq is a big destination for us

and our second property will open

in Karbala by September, making

us the first international brand

there. It’s a difficult location and

has its challenges, obviously, but

nevertheless we are ready for it.

“Oman is a new destination for

us. Our first property will be a

beautiful 444 key resort in Salalah,

so it’s definitely going to be the jewel

in the crown of all the hotels when

we open in December this year,”

Kaddouri reveals.

In 21 years, Rotana has established itself as one of the Middle East’s leading operators, with 47 properties open across the region today. But with a 100%

expansion plan for the coming decade, executive vice president and COO Omer Kaddouri, says the best is yet to come.

We like to focus on the basics and concentrate on what our owners want.

Beach Rotana Hotel and Towers, as it is known today, was both Kaddouri’s, and the group’s, first property.

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COVER STORY

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Moving beyond 2013, Rotana is also

eyeing the increasingly lucrative and

popular Turkish market.

The plan for two hotels in

Istanbul, Tango Arjaan by Rotana

and Burgu Arjaan by Rotana, is

as yet unaffected by recent social

and political turbulence, due to the

project’s lead time.

Additionally, MOU signings

recently took place in India and

Mauritania, West Africa, and this

month construction will begin

on two new properties in Muscat,

Oman: Sundus Arjaan by Rotana

and Sundus Rotana Muscat have a

scheduled completion of 2015.

Two new properties are on the

drawing board for Qatar, where the

group’s fifth brand, The Residences,

will debut, although full details of

how it will differ from the Arjaan

apartments brand are still closely

guarded. And in Saudi Arabia,

demand for a specific offering from

both guests and investors mean that

“four or five” Rayhaan hotels will

open by 2020.

So aggressive are the plans, not even

Europe is off the cards for Kaddouri,

should the right opportunity arise.

As he reasons, Rotana competes with

international brands in its current

markets, so why not compete with

them in their native markets?

The final piece of the jigsaw is a

chain of representative offices in the

US and Australia, attracting in-bound

business and truly capitalising on the

exponential growth of the region’s

aviation networks and home-grown

aviation brands. The offices will add to

existing marketing networks that today

cover Shanghai, Moscow and Mumbai.

It’s not just new properties that

Rotana will bring to the industry,

but with a doubling of inventory, a

two-fold increase in staff numbers can

also be expected. By 2016, Kaddouri

says it is entirely plausible the group

will need to employ 24,000 staff just to

keep the doors open.

“Those are areas we want to grow

into faster in the two to three years

to come, which is a little putting the

stamp on the company. We are known

to be the local chain in the UAE and

regionally, we are in nearly every city.

The vision of the company founders

was for a hotel under one brand or

another in every major city in the

Middle East. We are very nearly there

and then we will have the platform to

move out a little more globally.”

The Residences by Rotana will be unfurnished

and non-serviced branded residential

buildings, architecturally designed using

Rotana specifications and standards. They

will have limited services such as concierge,

property maintenance, a gym and some with a

swimming pool. Housekeeping is normally not

provided or available in such models, unless

requested by guests.

The residences

To join a company with only six or seven hotels and still be there when you know there will soon be 100... that has been the pinnacle

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COVER STORY

Half way thereThe vision of founders Nasser Al

Nowais and Selim El Zyr began

with the opening of Beach Rotana

Hotel, a year after Rotana Group

was established. It quickly became

a market leader in Abu Dhabi, for

occupancy, F&B and guest traffic,

and global recognition followed.

It was the very property where

Kaddouri began his Rotana career

15 years ago. During his tenure

as GM, Kaddouri developed the

property from a single building that

today merely forms the ‘wing’ of a

sprawling inventory that enjoyed

a $68m expansion to take the total

room count to 558.

Climbing the ladder, Kaddouri

has since held the positions of

resident manager, general manager,

SVP of UAE operations and EVP.

Previously working for Hilton and

Shangri-La, Kaddouri is the first

to admit he has never stayed with

the same company for so long, and

attributes both his success, and

loyalty to Rotana, to the strength

of his colleagues who he credits as

“self-starters full of passion”.

To date, and considering the plans

for the coming decade and beyond,

the highlight of his career has been

his fingerprint on Rotana’s growth.

“To join a company with only six

or seven hotels and still be there

when you know there will soon be

100, knowing that, as an individual,

you have had something to do

with that growth, that has been the

pinnacle,” he asserts.

Rotana was founded by Nasser Al Nowais and

Selim El Zyr in 1992. Opening Beach Rotana

Hotel and Towers in 1993, which fast become

a leading hotel in Abu Dhabi, recognised

for its F&B and guest traffic. In 1995 Nael

Hashweh and Imad Elias joined the group

and today, with 47 operating properties Omer

Kaddouri is tasked with leading operations to

take the total portfolio to 100 hotels by 2020.

The Rotana story

Fujairah Rotana at Al Aqah Beach.

The 308 room Yas Island Rotana enjoys consistently high occupancy rates.

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REGIONAL 2013 OPENINGS

HILI RAYHAAN BY

ROTANA

Location: Al Ain, UAE

Brand: Rayhaan

200 ROOM INVENTORY

SIDRA RESIDENCES

BY ROTANA

Location: Doha, Qatar

Brand: The

Residences

500ROOM INVENTORY

BOULEVARD

ARJAAN BY ROTANA

Location: Amman,

Jordan

Brand: Arjaan

427ROOM INVENTORY

SALALAH ROTANA

RESORT

Location: Salalah,

Oman

Brand: Rotana

577 ROOM INVENTORY

KARBALA RAYHAAN

BY ROTANA

Location: Karbala,

Iraq

Brand: Rayhaan

200ROOM INVENTORY

But achieving that growth isn’t an

automatic right when faced with the

difficulty of striking a balance between

stakeholders. The secret he reveals is

to go back to basics.

“We like to focus on the basics

and concentrate on what our owners

want. I think that is what has made

us successful. We talk to our owners,

they talk to us.

“Some of the larger companies

aren’t as available as we are, but we

focus on the basics, and that’s how we

will continue to do our business going

forward.”

Stronger togetherThe growth planned for the rest of

this decade is not Rotana’s alone.

The coming years will see strong tie

ups with Etihad Airways, through its

partner programme that will create

marketing opportunities providing

both guests and employees with

benefits packages.

In Kaddouri’s plan, the attitude

towards overlaying Rotana

and Etihad’s respective global

footprints is one of “never say

never” and he identifies a number

of similarities between the two

companies as they both reach out

beyond their native market.

“Hotels and airlines have been

partnering for years with points and

frequent flyer programmes and we

are reaching out further afield to

reach some of the largest companies.

But two home-grown companies

growing together to reach out to the

millions of customers out there... We

are very excited about it.”

Despite the predictably measured

and formal business tone, that

excitement is still tangible in

Kaddouri’s voice and sitting

with him and his team in the

presidential suite of a property that

not just kick-started but propelled

what would become an illustrious

career with one of, if not the, fastest

growing brands in the region – and

the only Arabic brand to achieve

such substantial growth – gives the

feeling of coming full circle. But

that would insinuate that there is an

end in sight and nothing could be

more misleading.

With growth, partner tie ups and

new markets on the short term road

map, what could the future beyond

2020 bring for the Rotana Group?

“One day we will be a global

brand. There is no doubt it.

“If we continue to run our business

the way we do today, there is

absolutely no reason why we can’t.”

Cove Rotana Ras

al Khaimah.

Page 25: Hospitality Business ME | 2013 July

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Page 26: Hospitality Business ME | 2013 July

24 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

ROUNDTABLE

Do you think this signals a long-term perspective on recruitment, rather than the perception of a transient market? NK: There is that element, but also the

fact that the spotlight is on the UAE

more than it ever has been and people

are now actually looking to the UAE

and asking which best practices are

being adopted. The UAE is attracting

global business and global talent,

but there needs to be more than the

excitement and attraction of ‘Dubai’

to keep them here. Since we had the

market dip, companies want to make

sure that, if that ever happens again,

you have people locked into the

organisation.

From the AON Hewitt perspective, what are the key observations? Andy Heath: These days it’s all about

Nationalisation. It’s key. Out of

that you have the Oman/

Saudi scenario, where

there is a high number of

nationals, but it’s about

getting those high numbers

into employment; versus the

UAE/ Qatar scenario where

it’s about getting the employer value

perspective to attract them into the

private sector.

We are doing a lot on

nationalisation strategies and how

organisations can position themselves

to be more attractive as an employer.

And secondly, which is primary to

employee engagement, we also have

career pathing.

The people who remained post-

crisis are the high-performing

employees that present opportunities,

so involuntary turnover is decreasing

and it’s about retaining and

developing the key people.

AS: Responding to Andy’s first point,

Nationalisation from a regional

perspective is very interesting, and

we have more than 200 Emiratis

working for us full time. It’s different

in different countries, there are certain

categories where you need a 100%

national workforce. By 2015, we need

to double our nationalisation target, but

these are minimum numbers and based

59% OF EMPLOYEES IN THE

MIDDLE EAST ARE ENGAGED, DOWN 10%

What is your primary people management challenge? Cho The Oo: The change in

processing visas is slowing

down the recruitment of Thai and

Philippine associates.

Wissam Beiruty: Competition and

retention. It is becoming more

challenging to recruit in general and

the way we are retaining associates

is changing because of the changing

engagement trends brought about by

Gen Y. Engagement now is more than

just wearing a uniform and working.

Atul Sinha: While some countries have

new restrictions on labour forces,

we also face the same difficulties

with visas for people from Egypt and

Syria. Training is also an important

aspect; most of the staff are required

ASAP so the window for training is

very limited and it’s difficult to

balance the arrival of new

staff with their training

and deployment to

clients.

Nikki Ferguson: The

rewards and retention

challenge has been at the

forefront of UK-based HR practice

for 20 years, but today we’re seeing

evolution and awareness in our Middle

East client’s perspectives of total

rewards, compensation and benefits.

A clear infrastructure of reward,

retention and management of career

paths should be ingrained in company

culture, but sometimes achieving

that requires re-organisation of

the company. Unless you are able

to understand and embrace those

changes, you are on a highway to

nothing.

We now see groups in the UAE

embracing the whole employee

engagement concept…. Is it

something that I genuinely believe

will change and will happen across

industries? Yes, absolutely.

I have been here since 2005 and to

see these changes now – for example

flexible benefit schemes. If you had

said those words even two years ago,

people would have looked at you like

you were crazy.

on short term contracts they do increase.

AH: You’re going to see from that, there

are targets in various industries and

sooner or later you will see it enforced

here, like it is in Saudi Arabia.

Employers have been scrambling for

the last couple of years there, so the

more you can do now, the better shape

you will be in.

How will this transfer into hospitality? This isn’t finance or construction. WB: It’s more challenging in hotels

and the common reaction we get is

that Emiratis aren’t familiar with the

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HOSPITALITY BUSINESS MIDDLE EAST / 25JULY 2013cpimediagroup.com

ROUNDTABLEROUNDTABLEROUNDTABLE

Last month, UAE President Sheikh Khalifa declared that “human capital is the real wealth of this country, before and after oil.” Consultants, service suppliers and hoteliers debate implementing nationalisation, performance management and the concept of employee engagement

industry. They think it will be Haram

because of alcohol or the cultural

aspects of male and female interaction.

Although we have people in F&B and

recreation it is challenging. We have

internal targets, like most industries,

but because of what will happen very

soon, we are setting those higher. We

try to attract them with the packages

and career opportunities.

NK: I think you have hit the nail on the

head. Sheikh Khalifa said Emiratis are

our wealth, not oil, and while it’s very

good saying that, if the businesses are

not fit for purpose and do not have

the ability to embrace and actually

absorb Emiratis within the existing

business culture, it is set to fail. It can’t

just be about training the mindset

of the Emiratis to make them fit for

the workplace, it’s about making the

businesses fit for Emiratis, too.

AH: Most of the young employees

– Millennials, or Gen Y – have a

two year average length of service.

Engagement of those people is key to

the organisations now and it develops

onto the flexible benefits on offer.

What will be important is the meeting

of Gen Y and their aspirations in

the work place – they want to be

promoted almost instantly – and that

will be a big challenge.

How will the hospitality industry cope with that? WB: We have people who join

and three years later they want

promotion, so in the hiring process

we now explain that we are offering

a career and that promotion is

performance based. For me, aiming

to be a preferred employer, I want to

develop people for Rotana, on a long

term basis.

The more you can do now, the better shape you will be in.

FORWARD THINKING

Ferguson, director, Q&A People Matter; Cho The Oo, Assistant HR manager, Dusit Thani, Dubai; Atul Sinha, director, business development, QBG Facilities Management.

Page 28: Hospitality Business ME | 2013 July

ROUNDTABLE

It can’t just be about training the mindset of the Emiratis to make them fit for the workplace. it’s about making the businesses fit for Emiratis, too.

2% IMPROVE IN GLOBAL

ENGAGEMENT LEVELS, 2011 TO 2012

14% INCREASE ON AVERAGE

ENGAGEMENT WHEN LOOKING AT BEST

EMPLOYERS IN THE MIDDLE EAST

26 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

How are staff trained? CTO: We have a succession planning

for colleagues of all levels, starting

from service agent upwards and

individual development plans for

everybody. The challenge is that you

may find certain colleagues who are

happy where they are, so then we

develop them to perform their job

above and beyond. For those who

want to go further there is cross

training.

From the agency perspective, how much commitment goes into employee development?AS: For our existing 3000 people you

would be looking at around six hours

per month as a KPI. You also need

more planning in training and greater

consultancy with clients to ensure

training is relevant

In addition kitchen and

housekeeping, staff maybe

encouraged to move into another role

because the salary is higher and the

returns we get on various professions

differ. So cross training is an

important element for agencies, too.

AH: In the GCC I see

Performance Management

(PM) systems as being

primarily focused on

annual bonus. There is no

other dimension to that

conversation in terms of

development plans. To me it’s key

that out of that annual conversation

you would cover performance

correction, aspirations, etc.

WB: This is important for retention.

If there is a real genuine two-way

conversation of personal and business

goals the employee remains engaged.

CTO: And if you have the right PM

system in place, the training becomes

the culture of the organisation

and each and every employee

takes responsibility for their own

development.

Whenever we do PM we instil the

idea of a professional and development

opportunities. mployees know when

they attend training that it is for their

benefit and we benefit from that.

NK: How often do you revisit development plans? CTO: We have monthly one to one

with department heads and direct

supervisors and PM every six months,

so there is enough time to review.

WB: At Rotana it’s a yearly cycle. In

Q1 the person in charge of Annual

Performance Review (APR) sets goals

then there is a six month review, and

evaluation at year end.

This is the structured part but we

keep an eye on things over the shorter

term. We tell department heads are

instructed to meat with teams to discuss

their contribution to the big picture.

AH: This industry and region enjoy

the highest rate of engagement of any

sector in the region, according to our

data, sourced today. I have spoken

to a number of brands and they are

reporting 70%+ and 80%+ engagement.

The banking industry average in

the GCC is 52% and I have known

companies with 26%. To achieve those

levels in hospitality, it has to come

down to the movement strategies and

the customer service.

With respect to the workplace culture that supports this, how does Dusit juggle the challenges of being a Thai chain, facing nationalisation targets and restrictions in your primary source markets, with the needs of more than 30 employee nationalities, and still achieve Investors In People Silver Accreditation? CTO: It’s the creation of a sense of

security and the ability to take

our time to speak with

consulates and candidates to

clarify rules and who we are.

Then we have all levels of

engagement activities at work that also

reflect the diversity of our workforce.

We don’t outsource our staff canteen;

colleagues eat food cooked by our own

chefs. We have recreation events at the

colleague’s request; accommodation

has sports and leisure facilities; and we

have day trips outside of Dubai. Our

colleagues have a voice to suggest all

these things.

We began the IIP accreditation in

2011 and because of the established

standards in the hotel we were invited

to go for the higher certification band.

We are currently the only hotel in the

Middle East to have that.

AS: This proves that engagement has to

become more creative. We have done

surveys that showed at least 95% of

resources at entry level would spend

up to 20 years in Dubai but never

have their families visit, so we began a

programme to sponsor their family’s

trips at absolutely zero cost to them.

CTO: We have a similar initiative and

help with the family’s visit visas.

How are agency staff supplied by QBG and what are the client demands you are currently meeting? AS: We are working with several

hotels across the UAE and we

are involved in everything from

recruitment to development. We send

our recruitment teams out across the

world and then screen the people

personally. We ensure candidates

know the job description in

detail because if a contract is

for us to provide 50 people,

we have to provide them

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ROUNDTABLEROUNDTABLE

47% OF PEOPLE IN THE MIDDLE

EAST ARE THINKING OF LEAVING THEIR ORGANISATION

for the duration of the terms. We being

the out sourcing partners, also provide

consultancy to clients on the next

upcoming labour markets; you do find

some labour source markets dry up.

We are also involved with the day

to day issues with our clients from

replacements to enhanced training needs,

so you can focus on your core business.

What’s happening in the hotels?WB: Rotana does outsource and that

varies between hotels, from security

and valet parkers to accommodation

caretakers. We prefer not to

outsource because we have

better control over our

own colleagues, from their

training and development

to their welfare and we

prefer for their PM to be in

our hands.

CTO: our outsourcing is very stable at

the moment. We too prefer our own

employees because you still have to

take time on orientations and other

elements; they still require investment

of time for training, so why not have

our own colleagues where cost allows?

Nikki, you spoke earlier about rewards and retention best practice. What is your advice on this?NF: Firstly look at the organisation’s

structure: Where it is now and where

do you want to be? If you establish

benefits without looking at what

you need and how best to cultivate

engaged, loyal employees, progression

is not guaranteed. You then need to

begin on active communication and

if there are going to be changes allow

employees to know and understand

that they are actually part of those. If it’s

a new reward package or a new policy,

make them feel it’s part of the company

culture and not a quick fix. But don’t

peg a whole strategy on one thing.

AH: Going back to the engagement

part, people sitting in their seats does

not correspondent to engagement.

One organisation we worked with

had an average length of service of 15

years, but the engagement score was

very low because the employees had

such an easy job, they didn’t want to

move on.

Ideally, you need people who

say good things, want to stay

and want to strive and that

want and ability to go the

extra yard is a key element.

The balance is to get the

low performers out, develop the

high performers and bring in fresh

ideas.

How much of a threat does that pose to an organisation?AH: We did one study in the US on 500

FTSE companies, where we looked at

ROI and measured the shareholder

increase vs engagement over five

years. We saw a positive correlation

between engagement scores and

investment in shares.

In the hospitality industry the

equivalent would be comparing guest

satisfaction with employee satisfaction.

In terms of other correlations we see

employee engagement lacks economic

indicators, so at the moment we are

seeing it rise whereas the last couple of

years it was in decline. As GDP goes up,

engagement follows, but as GDP goes

down, engagement also goes up. It takes

time to implement downsizing policies.

Further to that, if business is driven by value and value is driven by people, how should hotels invest in their people and how can ROI be measured on the commitment to development? CTO: We need to provide the right

training for the job so planning and

development play a major role. We

have a strategy to check the ROI on

this, through satisfaction surveys,

analysis of how benefits meet needs,

HoD monitoring and mid-year check-

ups between surveys.

We also cross this with the customer

satisfaction for ROI indicators and we

also analyse the number of internal

promotions to quantify PM and career

development. If the results are up our

ROI is up; happy employees, happy

business.

WB: We have the Rotana Colleague

Satisfaction Survey in January and

July. Between the first and second

survey we have an action plan to target

the lowest scoring points, and the Gen

Y career pace issue is evident here.

If we are talking about ROI

compared to the guest satisfaction

survey, we can see there is a

relationship there. However, recently

we have been told this may change

because still our turnover figures can

be reduced. The satisfaction survey

doesn’t reflect the reality – they are

happy, but are you as a business

getting the most out of them? What

we currently use is a good tool but it

only reflects the reality to an extent,

we can dig deeper than that.

CTO: Dusit also conducs exit interviews

so we know why staff leave.

What do you do with that information?CTO: We have found it might not be

the right time for them to work with

us, others have waited for a specific

opportunity to arise elsewhere, but

when they see a chance to move

back to Dusit we invite them back,

providing they haven’t returned to

their native countries.

The satisfac-tion survey doesn’t reflect the real-ity – they are happy, but are you as a busi-ness getting the most out of them?

Page 31: Hospitality Business ME | 2013 July

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Page 32: Hospitality Business ME | 2013 July

30 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

ROUNDTABLEROUNDTABLE

“HUMAN CAPITAL IS THE REAL WEALTH

OF THIS COUNTRY, BEFORE AND AFTER

OIL.”

“SERVING THE INTERESTS OF CITIZENS

IS THE GOAL THAT WE STRIVE FOR EVERY

DAY. BUILDING HUMAN RESOURCES IS

CENTRAL TO COMPREHENSIVE SOCIAL

AND ECONOMIC DEVELOPMENT.

PRESIDENT SHEIKH KHALIFA ON

NATIONALISATION

Ideally, you need people who say good things, want to stay and want to strive and that want and ability to go the extra yard is they key element

68% ENGAGEMENT LEVEL

RECORDED IN THE MIDDLE EAST IN 2009

When we look at our turnover

ratios we can link it to the reasons

people are leaving and what is

happening in the market.

AS: If you take the whole cycle of

outsourcing for a couple of years and

you understand the benefits around

it, you see you have the luxury of not

having to take the financial risk of

permanent employees, especially in low

season. Take into account staff visas.

Outsourcing here is not like it is in

Europe, the UK or US. Here you have

the benefit of greater engagement

and control. Our employees know

their increments are controlled by the

clients, they understand their career

path is controlled by the client. You

give appraisals, we take feedback, and

we ensure our contractual obligations

are met. So you have the control just

like with your own staff.

Let’s talk about retention ratesWB: There are always people looking

for jobs because that is the nature of the

market today, but in terms of turnover,

which is directly related to retention,

this is higher from 2010 to 2012 and

this is dissected geographically. In 2010

it was, 24%; 2011, 32%; 2012, 29%; and

the forecast for 2013 is even higher than

that. In response, we are increasing

the focus on Rotana as a career not a

job, to reduce the likelihood of those

junior position employees going to

a competitor for a nominal salary

increase.

Much of the time you can’t control

it – some people are just ready to

move back home. The ones we focus

on are the ones who move to other

properties. It’s a challenge.

There has to be an agreement

between HR managers whereby if

somebody has not completed two

years in the property try not to take

them. If a HoD leaves for another

hotel you could have five resignations

in their former department. We can

only try to do what we can within

the immigration and labour law to

prevent that situation.

What do you predict will be the top trend in 2014 for people management?AS: Salaries. It happens every year,

but this time in response to the rising

cost of living.

AH: Two key things. Our GCC data

shows that only 39% of colleagues

believe they are paid fairly compared

to colleagues in similar roles in the

same organisation.

Is that gender or racial inequality? AH: It’s all perception. It’s based on

12,000 responses, which is not a small

sample, but that blows me away. It’s

not to do with the salary itself, but in

terms of perceived quality of the PM

system; people feel their grades do not

reflect their input in the organisation

and I think correlating that over the

coming year will be key. Transparency

and equitable PM systems. The second

will be nationalisation.

WB: Nationalisation and HR being

seen more as a business

partner. We don’t make

money, but we can save

it. We contribute to the

bottom line, revenue and guest

satisfaction.

CTO: Nationalisation, and we have

targets. With our expansions, this and

talent pools are a focus area.

AS: But there is a perception that there

is only so far you can engage with

UAE nationals in the work place.

What we believe is that if you only

have nationalisation as a number or

percentage to quote, you probably aren’t

engaging them enough. On several

projects, covering a number of levels

we saw that across 15 nationalities

on a single project nationals were

highly engaged, especially when facing

challenging tasks.

NF: Nationalisation, engagement and

total reward, are the buzz words, but

from a HR perspective the biggest

challenge in 2014 will be cultural

change within businesses and the

ability to change.

If you have an organisational

infrastructure but management is

not ready to embrace that and help

to execute changes, it’s not going to

happen. When that is done, you can

begin with engagement, benefits and

rewards, nationalisation.

But without that culture you can’t

move forward.

Hospitality Business would like to

thank Dusit Hotels for hosting the

discussion at their Dubai property.

Next month, HR and training

professionals will debate

the link between Gen Y,

career development and

professional education.

Page 33: Hospitality Business ME | 2013 July
Page 34: Hospitality Business ME | 2013 July

VP SPOTLIGHT

cpimediagroup.com

By this time in 2017, taking into

consideration the seven hotels

that opened in 2012 and the

current MENA pipeline, Ritz-

Carlton will have added 32 hotels to

its global collection, five of these will

open in 2013; two in China, and one

each in Bangalore, Kazakhstan and

Aruba (see box).

In the MENA region, the focus

is on North Africa, where five new

properties will open, including the

delayed Ritz-Carlton Tahir Square

Cairo. The primary focus is on

the currently politically stable, and

naturally stunning,

Morocco and

Tunisia.

Two

Moroccan

properties

are due for

completion

by 2014 end:

The under

construction

Ritz-Carlton,

Rabat, a 120-room

hotel within

Royal

Golf

Dar

Es

The Ritz-Carlton experience is built on knowing guests, but how will this develop as technology plays an ever more important role in attracting the next generation of travellers? Global officer of worldwide operations, Bob Kharazmi, talks next generation guests and the next generation of Ritz-Carlton hotels

Getting to know youSalam; and the 98 room and 35 pool-

villa suites at Ritz-Carlton Reserve, in

the exclusive Tamuda Bay, 60km east

of Tangiers. Ritz-Carlton Tunis resort,

with 129-suites, at the world heritage

site of Carthage and Tamouda Bay, is

due 2016.

But the flagship is Ritz-Carlton

Marrakech, to be developed around

the Jenan Amar Polo Fields, the

launch of which was announced

exclusively at ATM in May this

year at Dubai World Trade Centre.

Together, the new properties will

have established a solid and reputable

presence in the North Africa region

for the luxury brand that arrived in

the Middle East 15 years ago.

“This region has always been

important. I must say, truly, this

market has been growing almost daily

and we all compete to present our

new brands and products to the Gulf

market, and that shows this is one

of the most important and dynamic

markets for us.”

Playing to the marketing tag line

of “let us stay with you” the new

locations, says global officer of

worldwide operations Bob Kharazmi,

are essential to broadening the

horizons of the luxury traveller,

and broadening Ritz-Carlton’s own

horizons simultaneously.

“The Middle East, North Africa

and sub-Sahara Africa are all growing

markets. Today’s luxury travellers are

looking for places where they can

connect with the local culture and be

involved in order to experience local

culture. This is a trend in the luxury

travel market,” he observes.

“Paris, New York, London and

Rome are all still important, but there

has been so much travel there already

people are looking to experience

something truly different and so

these [new] markets, and their future

performance, is looking strong,” he

adds, while assuring that far from

emanating away from the Middle East,

the aim is keep the comforts of the

Gulf region with the Gulf traveller as

they explore new destinations.

“Ritz Carlton is armed to move

with other growth factors and open

properties for guests around the

world. Middle East travellers are

very important for us, in leisure and

business.

“The importance of this region is

that if you are looking to properties

outside the gulf we are catering our

amenities to their liking, with TV and

newspapers in Arabic, for example

and local F&B to cater to their tastes

and create a home away from home.”

‘Stamp’ of distinctionAccording to hotel construction

analysts, the global luxury hotel

pipeline currently tops 1200

properties; a significant number of

homes away from homes in anybody’s

book. So what will differentiate the

Ritz-Carlton offering?

While the growth plans are very

much tangible, the ability to execute

them is linked to something that

is very much intangible. However,

assures Kharazmi, therein lies the

differentiator.

Revisiting his explanation of the “let

us stay with you” principle, Kharazmi

32 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

Global officer

of worldwide

operations Bob

Kharazmi.

Previously luxury was material, it was about expensive products, but the majority of brands are now realising that the func-tional part of a guest’s stay will not keep you as the market leader”

Page 35: Hospitality Business ME | 2013 July

VP SPOTLIGHT

HOSPITALITY BUSINESS MIDDLE EAST / 33JULY 2013cpimediagroup.com

OPENINGS IN

PREVIOUS 12

MONTHS

HOTELS TO OPEN

WITHIN THREE

YEARS

HOTELS IN CURRENT

PORTFOLIO

PROPERTIES IN

THE COLLECTION BY

2015 END

IN FIGURES

explains that Ritz-Carlton works on

a principle of ‘golden stamps’, which

are “simple, but applicable to our

commitment to our guests”.

It begins with staff training– for all

38,000 worldwide – which does not

imbue the same workplace hierarchy

as other multi-national brands, but

instead puts the employee on the

same playing field as the guest: Both

employee and guest are all referred to

as ladies and gentlemen.

Training is the basis of all

employee’s careers with the operator

and is reoccurring across a number

of platforms on a monthly, and

sometime even a daily, basis.

“We strongly believe our best

asset is our employees and we invest

a lot in them. It’s all about selling

the experience, not marketing

amenities. You have to create lifetime

experiences to bring guests back. The

whole idea is to impact their heart

and soul,” he adds, reciting the cliché

“look after your employees and they

will look after your guests” with a

sincerity that hints in this case it may

actually be true.

Granted, room rates reflect the

investment that is made in training,

but to facilitate ‘painting the perfect

experience for guests’ – a core

business philosophy – to something

so imperceptible, still seems like a

gamble. Not for Kharazmi.

“It’s very simple. Guests have

expectations, from the basic

requirements to possible requests that

you may have during your stay and we

try to surpass all that to delight and

surprise our guests. We have a system

called ‘mystique’ so we’ll remember

things like your birthday, we try to

remember what you like and dislike,

based on your previous stays so if you

prefer still water, we will make sure

you have your favourite bottle of water

ready in the room.

“The personalisation and attention

is on the guest and based on what

we know about you, that creates the

memories.”

But Ritz-Carlton will have to toe a

fine – at some points, even invisible

Artist’s impression of the newly announced Marrakech property.

In addition to an impressive

pool area, Ritz-Carlton Mar-

rakech guests will also be located

by the Jenan Amar Polo Fields.

Page 36: Hospitality Business ME | 2013 July

VP SPOTLIGHT

34 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

2013 ROUNDUP

China - Ritz-Carlton Chengdu & Ritz-

Carlton Tianjin

Overlooking Tianfu Square, the heart of an

iconic Chinese city, Ritz-Carlton Chengdu

features 353 rooms, including 55 suites.

Ritz-Carlton Tianjin will be focused on

entertainment and leisure with a number of

luxurious entertainment and dining venues, for

both the leisure and business traveller.

Kazakhstan – Ritz-Carlton Almaty

This 145 room hotel, the first in Kazakhstan, is

located in the 37 storey Esentai Tower within

the mixed use Esentai Park development

project in Almaty which includes an

extensive shopping mall, fitness club and

residential complexes. The hotel, located in

the centre of the city, will offer club and suite

accommodation together with over 10,000sqf

of meeting facilities.

Bangalore

In the upscale commercial hub of Residency

Road in “Silicon Valley” India, this hotel offers

guests, 277 luxury rooms and suites, a spacious

Ritz-Carlton Club Lounge, international dining

options and The Ritz- Carlton Spa by ESPA.

While Kharazmi admits the property has been

“under construction for many years”, mostly

due to market difficulties, he does not shy from

estimating a September 2013 opening.

Aruba

Aruba is a 33-kilometer-long island of the

Lesser Antilles in the southern Caribbean Sea,

located 27km north of the coast of Venezuela. 

The Ritz-Carlton hotel here, will offer guests

320 rooms and suites; four dining outlets; a

15-treatment room Spa; two swimming pools

and a 24-hour casino.

– line in order to strike the balance

between personalised and intrusive,

particularly when targeting the next

big market demographic. But as

his explanation of the philosophy

continues, Kharazmi hints that luxury

will soon become ever more abstract.

Generation where? While talk of Gen X, Gen Y and their

impact on business models continues,

Ritz-Carlton believes not only to

have insight on their interpretation

of the world, but the ability to use

that knowledge to strike a balance

between tech and luxury, something

many other brands are still grappling

to understand.

While traditionally luxury is all

about the palpable, the personal

service that is a concierge, a porter

and perhaps even a dedicated butler,

on hand to meet any need, Kharazmi

is boldly leading Ritz-Carlton into

new territory and re-defining luxury

in a way other hoteliers do not dare,

by stepping back.

“I would say evolution of

technology in order to personalise

the experience will be more dominant

in the luxury field than it used to be.

Previously luxury was material, it was

about expensive products, but the

majority of brands are now realising

that the functional part of a guest’s

stay will not keep you as the market

leader,” he shares.

Combining technology and choice,

the next generation of guests will

find luxury in optional seclusion

and mobile technology will form the

backbone of how that is facilitated,

with testing due by 2013 end.

Mobile and remote check in and

check out, room service ordering

from a guest’s mobile and the ability

to contact the hotel while leaving the

airport to arrange room numbers

and arrival refreshments are all on

the cards.

“Generations are changing and

the younger generation is becoming

our customer base. We have to

move with that,” Kharazmi states

reitering the part technology will

play moving forward. Gen Y and

Gen X are becoming a much larger

percentage of the customer base and

they are looking for authentic and

real experiences. They are looking

for technology to support them in

doing what they want to do and our

company is evolving in that fashion,”

he continues, assuring that the

decisions are based on extensive and

near-constant market research of the

existing client base.

“Our entire drive, focus and energy

is about knowing the guest. Knowing

what they will need from generation

to generation in terms of the evolution

of guest demand is key to staying

ahead,” he concludes.

Generations are chang-ing and the younger generation is becoming our customer base”

Page 37: Hospitality Business ME | 2013 July

Hospitality Business ME magazineThe choice of the professionals

Heinz Grub Area Manager of

Starwood properties in Dubai

Samer KhanfarGM, Jumeirah Living Dubai

World Trade Centre Residence

Gerald LawlessPresident and Group CEO,

Jumeirah Group

To advertise please contact:

Alex Bendiouis, [email protected] +971 50 458 9204

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Read every monthly issue free of charge via: www.hospitalitybusinessme.com

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DTCM

[email protected]+971 55 887 0720

Page 38: Hospitality Business ME | 2013 July

HOTEL

HOTEL

HOTEL

HOTEL

SPECIAL FEATURE / LIGHTING

36 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

TIME TO SWITCH?

In the Middle East, 22% of all the electricity generated is used for lighting – 3% above the global average. With ever more stringent sustainability requirements, how can this number be

reduced without compromising comfort and design?

Page 39: Hospitality Business ME | 2013 July

SPECIAL FEATURE / LIGHTING

HOSPITALITY BUSINESS MIDDLE EAST / 37JULY 2013cpimediagroup.com

Globally, the average amount

of electricity consumed for

lighting is estimated to be 19%.

In the Middle East, that figure

stands at 22%, despite a UN initiated

plan launched seven years ago to

reduce this overall by 20% by 2020.

The hunt is on for a solution and

multinationals are investing in the

development of new and improved

lighting technology, but the market

has been incredibly slow to react.

The ‘light of the future’ as it is

hailed by industry insiders is LED.

The fittings don’t use electric current

to glow – while also generating

phenomenal amounts of heat. Instead

they are actually emitting the light

– from a diode – meaning fractional

energy demands, which actually

produces more light over a longer

lifetime. And even when that lifetime

has been reached, LED lights to not

turn off the way their incandescent

ancestors do, they simply continue to

work with an average 30% reduction

in brightness.

A switch to LED lighting in the

Middle East would save 35million

tonnes of C02 emissions annually,

which is equivalent to 75million

barrels of oil and the output of more

than 25 power plants.

But, scarred by the experience

of buying substandard stock from

Eastern manufacturers, the LED

experience to date influences

purchasing decisions more than the

benefits of the technology, and as a

result, the market has been slow to

capitalise on these benefits.

Incandescent lighting is being

phased out globally, but to date no

legislation, or plans for legislation,

exist in the Middle East. Interestingly,

it was Cuba, when led by self-

proclaimed environmentalist and then

leader, Fidel Castro, that banned the

import and export of the old Edison

bulb first, in 2005, replacing them

with CFLs.

MARKET ADVICE“LED is the light of the future, no

doubt, but there is a lack of awareness

around its pricing. So that means

people buy based on price and when

that product fails it is the technology,

not the vendor, which is blamed,”

says Abdo Rouhana, head of Phillips

Lighting University Middle East.

Philips was the first company in

the world to introduce a bulb, using

LED technology, capable of achieving

an output of 100w, by consuming

only 20w, with its Philips MASTER

LEDbulb. Philips aims to hit a 75%

target, globally, for LED sales by 2020,

up from a mere 7% in 2008. But says

Rouhana, market conditions will

decide this.

He warns: “There are now

thousands of LED manufacturers and

this has created choice in the market,

but buyers have to be careful. Dealing

with LED requires a person who

understands the technology. Even

in hotels, LED can flicker and fail

because the transformer doesn’t match

the bulb requirement. There’s a large

education component to this.”

Up to 75% of the electricity

consumed by lighting can be reduced

by switching to LED, according to

figures from GE Lighting.

ELECTRICITY CONSUMPTION FOR LIGHTING (MEA)

SOURCE: PHILIPS UNIVERSITY

36% FLOURESCENT

32% INCANDESCENT

16% HID

13% HALOGEN

3% CFL

The study says that LED is an environmentally

and economically superior technology; LED

bulbs, the report says, can generate more

than 100 lumens per watt of electricity,

compared with 60 to 75 for CFLs, while lasting

three to five times longer. With no mercury in

it, their disposal is safer, and can contribute

up to 80 percent in energy savings. However,

the value share of LED, despite its advantages,

was only about 5% in the whole of Middle

East and Africa in 2011.

If Led retrofit achieves 37% penetration

by 2015, it will drive down costs, improve

marketing and significantly reduce the

amount of carbon in the atmosphere.

Boxout headline in this space

Page 40: Hospitality Business ME | 2013 July

cpimediagroup.com38 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

SPECIAL FEATURE / LIGHTING

1. LED UNIT COSTS ARE TOO HIGH

Our research shows that industry leaders agree unit costs are the biggest

roadblock for LED right now. At €20 to €40, LED is still four times the price

of an equivalent CFL in the 40-watt-equivalent product range, despite

the longevity savings.

2. PRODUCT POSITIONING AT RETAIL IS WEAK

Our store visits showed that LED lamp manufacturers are not making

sufficient investment in retail presentation. We encountered signage

that muddied the distinction between the energy efficiency of LED and

CFL bulbs.

3. PRINCIPAL-AGENT CONFLICTS ABOUND

Lighting decisions are generally based on initial cost rather than

long-term benefits. On the other side of the ledger, the tenants pay the

operating cost, meaning that they would likely prefer LED, if they were in

a position to make the decision.

4. DIRECT REGULATORY SUPPORT IS LACKING

Despite bans of incandescent bulbs in more and more countries, LED

adoption has little direct government support.

5. TECHNOLOGY TRANSITIONS CREATE SIGNIFICANT

UNCERTAINTY

Examples of earlier technological transitions reveal risks as well as

benefits for incumbent players. When cameras shifted from analog to

digital in less than 10 years, for example, companies like Leica nearly

vanished from the market in Germany, while others like Canon managed

to increase market share.

By overcoming these five barriers, the industry could drive a five-year LED

retrofit adoption rate above 50%. At that point, LED would become the

dominant technology in consumer and commercial lighting, providing

the industry with a crucial new source of profits for years to come.

If LED is the miracle solution it is presented to be, why are more people not adopting the technology and shouting about its benefits? McKinskey’s LED Competency Centre looks at the five barriers to adoption.

THE SILENT REVOLUTION

“A study by McKinsey states that

LED is an environmentally and

economically superior technology.

LED bulbs, the report says, can

generate more than 100 lumens per

watt of electricity, compared with 60

to 75 for CFLs, while lasting three

to five times longer, and about 25

to 35 times longer than a standard

incandescent bulb. With no mercury

in it, their disposal is safer, and

can contribute up to 80% in energy

savings,” explains Middle East,

Africa and Turkey lighting GM,

George Bou Mitri.

“The benefits of using LEDs

also include a long useful life of

up to 50,000 hours, minimised

maintenance and related costs

and excellent low temperature

performance,” he continues.

And the benefits are being seen,

albeit slowly. In the Middle East

VIP Bridge, in Dubai; Doha’s street

lighting; and The Intercontinental

hotel, Festival City, Dubai are all lit

by LED.

“In roadway lighting, LEDs also

deliver the added advantage of better

visual conditions with the colour

characteristics of LEDs creating

better object recognition and visual

results. This is also beneficial for

other applications such as for parking

lots, where the footage is clearer for

security cameras, thus promoting

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George Bou Mitri, General Manager, GE. Jane Aldersley, Global Light and Power, LLC.

Mr. Abdo Rouhana, Head of Philips Lighting University.

Page 41: Hospitality Business ME | 2013 July

L ighting Design, Estimation, Suppl y & I nstallation

Page 42: Hospitality Business ME | 2013 July

SPECIAL FEATURE / LIGHTING

40 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

safety,” advises Mitri, adding: “LED

lighting is also known to enhance

employee productivity by creating a

more conducive work environment,

and most importantly, they reduce

light pollution, which is pervasive

with traditional lighting.”

In Europe, where the technology

is less of a phenomenon in everyday

life, Amsterdam’s Rijksmuseum

utilises LED within the gallery,

proof of the versatility and cost

effectiveness of the solution.

“Many people still have the

perception that LED light is a

cold bright light, best suited to

commercial applications. However

LED chip manufacturers have

worked to produce a greater range of

colour temperatures, so that for some

time now LEDs have been available

in very warm whites, through to what

is considered ‘day light’, and then on

into the cool whites,” explains Jane

Aldersley sales manager for Global

Light and Power, LLC.

INSTANT ONThe key to changing market

behaviour, in the absence of mandated

change, will be due to education,

clearly outlined ROI, and the ability

for users to transfer their current

lifestyle to a more sustainable lifestyle.

In short, the replacement product,

whether that is LED or something yet

to be released into the market, must

be of quality.

“Let’s first consider how we define

the word quality. Can we define it

as an expectation of high standards,

applied to the production of

something that is well designed and

executed, that will prove to be durable

and stand up to years of use with only

minimal change to appearance and

functionality as the years pass?,” asks

Aldersley.

“If so, then many sustainable

lighting products are high quality by

definition. If we take LED lamps as an

example, over standard incandescent

or even halogen lamps – a well-made

LED fixture lasts years longer, stands

up to knocks and drops without

any parts breaking, and years after

installation has the same light colour

and brightness as the day it was

made,” she adds.

Globalight use Nichia LED

chips in their products; a top of the

range Japanese-manufactured chip

that maintains its correct colour

temperature after years of usage.

“If on the other hand we are talking

about quality in terms of the human

experience of lighting, then I believe

sustainable lighting has made very

significant improvements in recent

times and the pace of develop is

accelerating as the technologies

become widely accepted,” she adds.

Education of the market will be

key moving forward. The general

public – let alone the decision makers

lighting their public spaces – are

seldom aware that, unlike other

sustainable lighting solutions, like the

much criticised CFL bulbs that were

linked to headaches and even mood

swings, LED is different.

LED boasts colour variability,

instant on and dimming capabilities

and the versatility to accommodate

hundreds of design aesthetics. With

market adoption, economies of scale

could see the investment cost drop by

30% at common estimates.

“Lighting plays a crucial role in

our lives and the impact is all around

us from energy consumption to

well-being and the environment, and

we are always keen on highlighting

this information and creating

awareness,” said Rouhana. “Being at

the forefront of lighting innovation

in the region, Philips continues to

drive end-to-end solutions, from the

latest LED technology through to

intelligent management and control

systems, to help address some of these

challenges.”

“We must remember one thing.

If we ask for people to save energy

they should be able to do so without

compromising on comfort. I believe

LED achieves this,” he concludes.

2005THE YEAR CUBA BANNED

THE INCANDESCENT BULB

95% OF THE ENERGY CON-

SUMED BY INCANDESCENT BULBS IS WASTED

THROUGH HEAT

5000 HOURS MAXIMUM

LIFETIME FOR HALOGEN BULBS

75% OF PHILIPS GLOBAL LIGHT-ING SALES IN 2020 COULD

BE LED PRODUCTS

x15THE INCREASE IN LIFETIME BY SWITCHING FROM TRA-

DITIONAL TO LED BULBS

35m tnsOF C0

2 COULD BE SAVED

ANNUALLY IN THE MIDDLE EAST BY SWITCHING

TO LED

50,000POTENTIAL LIFETIME OF

LED BULBS (HOURS)

Page 43: Hospitality Business ME | 2013 July

HOSPITALITY BUSINESS MIDDLE EAST / 41JULY 2013cpimediagroup.com

SPECIAL FEATURE / LIGHTING

The essence of Preciosa’s

activities lies in design and

creation of a wide range of

decorative lighting fixtures.

This includes an all-inclusive design

service, manufacturing, complete

on-site installation and any necessary

follow-up maintenance.

The Preciosa Design Team, a group

of young art glass designers, is headed

up by experienced Chief Designer,

Mr. Jaroslav Bejvl Jr. “In my work I

focus on the interconnection between

art and the use of new technologies,”

explains Jaroslav Bejvl Jr., the Chief

Designer at Preciosa, and adds:

“This makes it possible to inspire

the imagination of those looking at

a lighting object.” Preciosa uses the

latest technologies such as printed

circuit boards, fiber optics, LED and

When design brightens up new technologiesPreciosa Lighting, an innovative and progressive company based in the heart of Europe, creates complete lighting design solutions for luxury interiors worldwide. Its chandeliers decorate such elegant hotels as the Ritz-Carlton in Hong Kong, luxury casinos like Pallazo Hotel and Casino in Las Vegas and fashionable interiors like the Shangri-La in Paris or Westin Xiamen in China

Prisms with cut and polished edges bring out

the perfect optical-aesthetic qualities that

only the best crystal can afford.

The open shape of the Alaris lighting object

brings to mind wings that are ready to soar –

in a symbol of freedom and liberty.

This awakens an untamed desire for life in

the observer.

ALARIS, design by Jaroslav Bejvl Jr. nanotechnologies, virtual prototyping

and much more.

Glass must be listened to and obeyedPreciosa has always manufactured its

own glass, because the glassworks are

at the very heart of the whole process.

It is here where the initial sparks of

artists’ and designers’ ideas are first

ignited, and where all the glass master

pieces take shape.

One of the greatest challenges a

designer faces is to satisfy project

requirements while at the same time

pushing the boundary of the material’s

limitations.

The tradition of Czech crystal and

glass, together with the cutting-edge

technologies of the 21st century wins

the hearts of design aficionados from

all generations.

Page 44: Hospitality Business ME | 2013 July

SERVICES AND SUPPLIES

42 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

Services and suppliesThe world’s most useful and innovative new designs

A carpet backing made from 100% recycled

materials – including water bottles – has been

introduced by Ege Carpets, specifically for its

range of carpet tiles, called Ecotrust.

SUSTAINABLY BACKED CARPET

Canon Emirates has signed two, four-year,

Managed Printing Services agreements with

Intercontinental Hotel and Beach Rotana Hotel,

both in Abu Dhabi. Intercontinental purchased

36 Canon products with output management

software and Beach Rotana was provided with 35

machines managed by the output management

software, which enables access to mobile

printing features.

“Listening to the needs of companies and

analysing how best to meet these demands was

imperative. Building a trustworthy relationship

is one of our key competitive

advantages and

this was achieved

through

delivery of promises

made to the

customer,” said Canon

Emirates GM Shadi

Bakhour.

CANON MPS AGREEMENTS

One of the industry’s first environmentally

certified carpet suppliers, Ege previously

launched Ecoline, which is a series consisting

of 100% recycled fibre from industrial and

consumption waste.

“We have been working with environmental

and sustainability issues for several years and

we have made distinct improvements. This is a

process, however, and there is always scope for

us to improve even further. Ecotrust represents

another step in the right direction. A carpet

with a backing of 100% recycled fibres has a

lower environmental impact than products

made from virgin materials, since recycling gives

waste materials a new life. We need to do more

of this in the future,” says Jan Ladefoged, Ege

environment manager.

MARPO ME ARRIVESMarpo Kinetics has debuted a newly re-designed

Marpo Rope Trainer.

The machines, which have been featured on

weight loss reality TV show ‘The Biggest Loser’

are designed to provide an intense workout, with

minimal joint strain. As opposed to a friction

brake, the patented design optimises resistance

with each movement, allowing for real-time

user feedback and smooth, gradual resistance in

relation to the exertion applied.

“We are proud of the ingenuity behind the

design. The versatility of Marpo Rope Trainers

really sets them apart from most other fitness

equipment,” says CEO, Marius Popescu.

RS Fitness Dubai has been appointed the

official distributor for the local market.

Page 45: Hospitality Business ME | 2013 July

SERVICES AND SUPPLIES

HOSPITALITY BUSINESS MIDDLE EAST / 43JULY 2013cpimediagroup.com

FM firm Emrill has won a five year facilities

management contract for Etihad Airways,

which will incorporate the airline’s

headquarters, training academy, residential

buildings, terminal offices, sales shops and

kiosks in Abu Dhabi, Dubai and Al Ain.

Specialist services in the contract will

include the maintenance of generators,

signage, elevators, swimming pools and

landscaping, among other unique services.

EMRIL ETIHAD CONTRACT

xxxxxxx

Kempinski Hotels will immediately begin roll

out of Nor1’s signature eStandby Upgrade™ at its

properties as diverse as Hotel Adlon Kempinski

Berlin, Emirates Palace Abu Dhabi, The Stafford

London by Kempinski, or the Kempinski Grand

Hotel des Bains in St. Moritz.  Guests will receive

exclusive eStandby Upgrade offers when they

book directly with www.kempinski.com for

upgrade deals on suites, spa treatments, and

other hotel services. 

Bathroom fitting specialists Hansgrohe

Group recorded a 5.4% revenue growth YoY,

buoyed by strong sales in the Middle East.

“Our outlook for the remaining 2013 is

sound, and we are already receiving much

interest in the arrival of Axor Organic,

so we are very excited about the year

ahead,” commented ME sales director Dirk

Schilmoeller.

HANSGROHE REV LEAP

UAE-based FM firm Farnek Avireal has been

accredited by BICSc, The British Institute of

Cleaning Science.

Farnek’s core team are now official BICSc

Assessors and can train and assess all of the

cleaning staff at the company and certify

them together with BICSc.

Farnek works extensively with the

hospitality industry and is currently

supporting a research project to

establish a sustainability benchmark for

hotels in Dubai.

FARNEK ACCREDITATION

Kempinski Hotels has entered into a contract

with Nor1 Inc to to provide its data-driven upsell

platform to its entire 80 property portfolio.

“This agreement underscores Kempinski’s

commitment to our guests and to innovation,”

said Riko van Santen, VP of digital strategy

and distribution for Kempinski Hotels. “Nor1’s

dynamic, data-powered upsell offers are as

unique as every Kempinski hotel, and tailor-made

for each of our guests.”

NOR1 INC I.T. CONTRACT WITH KEMPINSKI HOTELS

Nespresso coffee experts hosted an evening

academy for chefs last month to educate on the

concept of harmonising coffee flavours from

around the world with different foods.

Covering food harmonisation, using coffee

as an ingredient and tips on how to be a coffee

connoisseur, it’s the first such event in the Middle

NESPRESSO CHEF ACADEMY East, following similar successful academies in

New York and Europe.

The Academy has been developed to offer chefs

in high end gastronomy an in-depth knowledge of

not only creating and preparing recipes with coffee,

but also a greater appreciation of the sommelier

side of coffee expertise.

SENSORY SKY SHOWERDornbracht has introduced a shower that creates

a feeling of “showering in the open air”, with

fields for head sprinkler, body sprinkler and rain

curtain, a cold-water fog nozzle and light and

fragrance functions. Fragrances are produced

using high-quality natural essential oils and

balms in co-operation with Kemitron, a specialist

for spa and wellness fragrances.

Page 46: Hospitality Business ME | 2013 July

A key differentiator in an increasingly competitive market, technology is now part of the 5-star service. But with so many conflicting trends, where can hotels put their money for the greatest ROI?

44 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

SPECIAL FEATURE

Page 47: Hospitality Business ME | 2013 July

SPECIAL FEATURE

HOSPITALITY BUSINESS MIDDLE EAST / 45JULY 2013

The concept of travelling with

your own device, content and/or

services, was last year likened to

being a ‘force of nature’, by global

tech authority, Wired magazine. It

was advised that businesses across

all industries and sectors would have

to tame this force in order to keep

their own systems, and therefore

data, safe. But from the consumer

point of view, little has been more

exciting over the last decade and

today, in direct response to demand,

hotels are finding themselves upping

tech infrastructure capabilities so

guests can continue to listen to

the same music, watch the same

shows and enjoy the same quality of

entertainment, as they do at home.

TECH TRUTHIf bring your own content and

devices takes off, would this reduce

the need for the hotelier to provide

TV and IT hardware? And could it

reduce the need for TV packages to

be available in guest rooms?

“We do see more and more hotels

providing docking stations for guest

TIPPED TO BE THE NEXT BIG THING: BYOD, BYOC AND BYOS

More guests are demanding the infrastructure that will allow them to bring their own entertainment when they travel.

devices, but we are not necessarily

seeing BYOC as competition for the

packages we provide,” says Maaz

Sheikh, from business development

at OSN, which retains a 95%

penetration of the 4- and 5-star

market in the MENA region.

“Guests still need live news and

sports and there is still a need for

documentary channels.

“BYOC works for movies for music

as an alternative for guests that

don’t want to spend on pay per view

TV, but we don’t see it replacing

traditional services,” he adds.

Page 48: Hospitality Business ME | 2013 July

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Page 49: Hospitality Business ME | 2013 July

SPECIAL FEATURE

It may seem as necessary as the hotel

bathroom in today’s tech-obsessed

age, but many hotels still charge

for in-room WiFi. It’s a situation

that currently puts many hoteliers,

specifically those in properties

aimed at the business traveller, in a

difficult position.

How necessary is it to the guest

experience to include free internet?

If guests do not have to pay for their

bandwidth, will they be more likely

to clog the network by downloading

large files? Will charging deter this

habit and prevent other users from

having to endure overloaded systems?

TECH TRUTHThe cost of providing in-room

WiFi to even a small hotel could

cripple the bottom line of many

operators, including the independent,

unbranded, mid-market, dependent

on upselling additional services,

which generally includes WiFi.

The ability to offer free guest internet

in this respect begins to put this

‘added extra’ into the realms of 5-star

service, but as one 5-star property

GM explains, the cost of providing

free internet in public areas is high

enough, without factoring in the cost

of in- room WiFi.

“This isn’t a business issue, rather

than a leisure issue. The number

of devices that even families travel

with means that hotels would

have to increase their broadband

offerings substantially to meet their

needs, while ensuring other guests

receive a decent level of service,

too,” says Mark McCarthy, GM of

Al Ghurair Rotana, Dubai. “We are

stuck between increasing an already

monstrous bandwidth – at a cost

to us and the guests – or allowing

everybody to use the service for free,

but compromising the quality of that

service overall,” he adds.

TIPPED TO BE THE NEXT BIG THING: ‘FREE’ WIFI

Free WiFi even in guest areas can place a great burden on hotel budgets

HOSPITALITY BUSINESS MIDDLE EAST / 47JULY 2013cpimediagroup.com

Page 50: Hospitality Business ME | 2013 July

48 � hospitality business mIddle eAst JUly 2013

lilia KolevaDoR, Westin Abu Dhabi Technology integration is a game changer in the industry. Today we are looking seriously at

more sophisticated systems and the ability to provide interactive solutions that allow guests access and control of in-room entertainment, environmental controls, and communication and security features.

In the hospitality industry, in-room technology plays an important part in the guest experience and we must learn to adapt to the ever evolving changes in these areas.

Soon smart phone applications will replace the traditional check in and check-out experience and the need for magnetic card to access to

For the consumer, the size and weight of TVs has been a major talking point of late as manufacturers bring out ever bigger, ever thinner products. But the really urgent infrastructure upgrade that should be taking the market’s attention is the HD capability of the content delivery systems. From IPTV – TV services delivered via internet, rather than cable, satellite or transmission signals – to internal cabling systems for high demand users, while the flash might be the display point, the mechanism is the part that requires the greatest investment.

tech truth “IPTV is where hotels can really add value for guests, by providing images and that are a higher quality, facilitating BYOC and delivering movies and other content ‘on

demand’,” comments Sheikh, while identifying the main barrier to this technology as being the high upfront costs required. “One other key consideration is the delivery of HD channels to guest rooms, and for that infrastructure has to be

up graded. Again, businesses don’t want to commit with a huge upfront payment, which is why we bundle the channels and infrastructure so that hotels have the choice to pay for both over three or four years,” he adds.

a guestroom. Use of tablet devices as menus in restaurants is providing visual enhancements to the items being offered, already.

A luxury hotel’s primary challenge is differentiating itself from competing properties. We are not content to simply meet guest’s needs, we aim to anticipate them, in order to deliver customised service at every opportunity.

The way that we will achieve our goals is through an information and technology infrastructure that enables us to deliver superior service.

salwan Finjregional sales and business development manager, Hospitality TV GCC,senior regional key account manager, hospitality TV, MEA

tipped to be the next big thing: Widescreen plasma tV

cpimediagroup.com

specIAl feAtURe

expert eyes

Hoteliers can invest in the Integrated STB solution, to reduce TCO (Total Cost of Ownership) since the Set Top Box is integrated in the TV and there is no additional power socket (civil works) or power consumption needed. In addition, LG Hotel TV sets have an LED clock to further reduce TCO since the hotel would not need to invest in a bed-side alarm clock. They can provide a wake up alarm service using the LG Hotel TV along with the Pro:Centric V solution. This is a low cost solution where-by the hotel can deliver basic one way interactive services such as Channel Guide (EPG), hotel information, weather updates, maps and alarm. LG develops hospitality solutions that are easy to manage and reduce TCOs, helping to deliver enhanced services to the guest to increase sales and marketing activity. These services can also add a prestigious element of service to the guest in a user friendly way.

36-40 In room special.indd 48 7/2/13 1:09 PM

Page 51: Hospitality Business ME | 2013 July

For all advertisment related enquires please contact the following:

Sales Director: Ankit [email protected]

+971 55 2572807

Associate Publisher: Alex [email protected]

+971 50 458 9204

The Pro Chef ME magazine - the magazine for professionals

Read every monthly issue free of charge via: www.cpidubai/com

If you work as a chef, restaurant manager, sommelier, banqueting manager or catering manager for a four or five star restaurant in the UAE, then apply for your free monthly

copy of The Pro Chef Middle East, the magazine for fine dining professionals.

SASCHA TRIEMER, EXECUTIVE CHEF,

ATLANTIS, THE PALM

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Page 52: Hospitality Business ME | 2013 July

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Page 53: Hospitality Business ME | 2013 July

APPOINMENT NEWS

HOSPITALITY BUSINESS MIDDLE EAST / 51JULY 2013cpimediagroup.com

Appointment newsThe latest appointment and promotion news from the region

DUSIT THANI DOSMGerman-born Julia Alvaro has joined Dusit

Thani from Radisson Blu, Media City as

director of sales and marketing.

With almost 20 years of international

experience, Alvaro worked on the opening of

Julia Alvaro.

FOUR SEASONS CAIRO After 11 years with Four Seasons, Mahmoud El

Keiy has been promoted to the position of hotel

manager, Four Seasons Cairo at Nile Plaza.

Looking after overall operations, Keiy was

formerly director of sales at the property. Keiy

began his career with Hilton Hotels Egypt,

moving from front office to sales before

landing a role with Four Seasons Hotels.

Mahmoud El Keiy

YAS ROTANA WELCOMES NEW EXECUTIVE CHEFChef Raghuprasad Pillai has been

commissioned as the new Executive Chef of

Rotana’s two properties on Yas Island, Centro

Yas Island and Yas Island Rotana.

Formerly working for Jumeirah,

Intercontinental and Le Meridien hotels, Chef

Raghu was named Chef of the Year at the

Salon Culinaire Middle East in 2003, and again

in 2006. He was also awarded Sous Chef of the

Year at the Caterer Awards in 2011.

The new Executive Chef wants to focus on

cooking classic favourites with contemporary

twists. He commented: “I want to revive that

almost childlike enthusiasm and curiosity

among my team, to make dishes that guests

will remember and come back for.”

Raghuprasad Pillai

The Palace Old Town and Le Meridien Mina

Seyahi, both in Dubai and has previously

worked in the UK.

“It is a pleasure to welcome Julia to

the team. She brings with her a wealth of

experience which will assist in the hotel’s

goal of being the leading hotel in the Middle

East,” Prateek Kumar, GM, said.

“Keiy did a tremendous job in leading

the operation in Alexandria and by rejoining

Nile Plaza, we are confident that El Kiey’s

passion and expertise will be instrumental

in the Hotel continuing to lead the way in

innovation and service.

“We look forward to welcoming Keiy back

to Cairo,” Olivier Masson, said regional VP and

GM of Four Seasons Hotel Cairo at Nile Plaza.

Page 54: Hospitality Business ME | 2013 July

cpimediagroup.com

JOB WATCH

52 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013

Job watchTime to move on? We can help. All jobs can be applied for throughthe Hozpitality websiteHR & TRAINING MANAGER - DUBAI

Industry: Hotels Clubs and Spas

Department: Human Resources (HR)

Level: Department Head, Middle

Management

Location: United Arab Emirates (UAE)

Salary: Competitive Start Date: asap

Recruiter: Ramada Downtown Dubai

Description

3-5 years of similar experience in star hotels

in UAE/Gulf

hotel chain standards

HOTEL DIRECTOR (GENERAL MANAGER)

Industry: Cruise lines/Ships, Hotels Clubs

and Spas

Department: General Management/ GM

Level: Top Management

Location: Worldwide, Americas North and

South, Carribean, Europe, ME/GCC (Except

UAE), United Arab Emirates (UAE)

Salary Description: attractive salary and

benefits

Recruiter: Celebrity Cruises

We are currently searching for Hotel Directors

to join our team. Potential candidates must

have at least five or more years in applicable

management experience in a four or five star

resort, hotel or cruise line. As an industry

leader in service and innovation, we provide

growth and development for our onboard

team members.

All applicants must fulfill the following

requirements:

solve, transform both qualitative and

quantitative data into actionable reports,

plan and implement new initiatives that

drive revenue.

experience in an upscale hotel or cruise ship

English clearly and distinctly

management, business administration or

related field from an accredited college or

university is preferred

months on / 2 months off contract schedule

including the ability to participate in

emergency life-saving drills and training

ability to obtain a C1/D1 Visa

GROUP DIRECTOR OF HUMAN RESOURCES-

DUBAI

Industry: Hotels Clubs and Spas, Restaurant/

Bars and café

Department: Human Resources (HR)

Level: Corporate /Group, Department

Head, Top Management

Location: ME/GCC (Except UAE), United Arab

Emirates (UAE)

Recruiter: Hozpitality Consulting

national) for a hotel group to be based in Dubai.

The right candidate should have the

following:-

preferably in UAE/Gulf.

and grow

nationals preferred for this position.

the right candidate will be contacted.

CHIEF ACCOUNT

Industry: Hotels Clubs and Spas

Department:

Level: Supervisory level

Location: United Arab Emirates (UAE)

Salary Description: Attractive Salary and

Benefits

Recruiter: The Royal International Hotel

to manage staff accountants and A/P

departments as they relate to the service

of the financial reporting and transactional

MANAGER EMPLOYEE WELFARE

Industry: Airlines, Travel Industry

Department: Human Resources (HR)

Level: Middle Management

Location: United Arab Emirates (UAE)

Salary Description: attractive salary and

benefits

Recruiter: Etihad Airways

employee issues and well-being. Job purpose

includes and is not exhaustive of managing

high profile and confidential matters

relating to individual employees welfare and

leads the team who deal with minor level

counseling and well-being issues, arrest and/

or imprisonment, death of an employee and

bereavement support for family members.

Responsibilities

HSE OFFICER (OFFSHORE LOCATION)

Industry:

Management, Hotels Clubs and Spas

Department: Hygiene and Safety

Level: Middle Management, Supervisory level

Location: United Arab Emirates (UAE)

Recruiter: ADNH Compass Middle East

Complete responsibility for the highest

level of sanitation and hygiene standards

in the production facility. To ensure all

food served to guests and employees are

free from microbiological and physical

to minimum requirements set by the local

health authorities. Responsible for Daily and

periodic standards compliance monitoring

in all departments, services within the units

and ensuring that the agreed corrective,

preventative actions are implemented

GOVERNMENT RELATIONS OFFICER

Industry: Hotels Clubs and Spas

Department: Administration and

Secretary, Human Resources (HR)

Level: Supervisory level

Location: United Arab Emirates (UAE)

Recruiter: Rixos Palm Jumeirah

Must have at least 2 years experienced as a

Government Relations Officer and have a solid

laws. Must have experienced in a 5-star hotel.

YOU MISS 100% OF THE SHOTS YOU DON’T TAKE,” WAYNE GRETZKY

Jobs supplied by:

Page 55: Hospitality Business ME | 2013 July
Page 56: Hospitality Business ME | 2013 July

54 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

TENDERS

TendersAll the latest information about the tenders you need to know about

Tel: (+971) 2 634 8495www.EmiratesTenders.com

NEW TENDERS

$272mVICEROY THE PALM,

DUBAI

NEW AND CURRENT PROJECTS

Client name: Qatar Petrochemical Company Limited

(QAPCO)

Address: 5th Floor, Al-Abdul Ghani Building

City: Doha

Postal/Zip Code: 756

Country: Qatar

Phone: (+974) 444 4242

Fax: (+974) 432 4700/ 477 1346

eMail: [email protected]

Website: http://www.qapco.com

Nature of work: Contract for supply of refreshment

and towel roll items for a petrochemical company.

Cost of Tender Documents ($): 140

Last date of submission: July 11, 2013

Client name: Al Baha University (Saudi Arabia)

Country: Saudi Arabia

Website: http://www.bu.edu.sa

Nature of work: Supply of restaurant equipment

for a university.

Cost of Tender Documents ($): 135

Last date of submission: July 15, 2013

Client name: Ministry of Municipal Affairs &

Agriculture (Qatar)

Address: Intersection of B Ring Road & Najma Street

City: Doha

Postal/Zip Code: 820

Country: Qatar

Phone: (+974) 433 7777 / 433 7414 / 4434 8070 /

4434 8888

Fax: (+974) 443 4727 / 433 9104 / 4443 0234

eMail: [email protected]

Website: http://www.mmaa.gov.qa

Nature of work: Provision of

hospitality services for a municipality.

Cost of Tender Documents ($):

85

Last date of submission: July

14, 2013

Client name: Department of Economic

Development - DED (Abu Dhabi)

City: Abu Dhabi

Postal/Zip Code: 12

Country: United Arab Emirates

Phone: (+971-2) 403 1000 /403 1308

Fax: (+971-2) 672 7749

Website: http://www.adeconomy.ae

Nature of work: Price agreement for the supply of

hospitality materials for a government authority.

Cost of Tender Documents ($): 140

Last date of submission: July 3, 2013

Project Name: Saadiyat Rotana Resort

Description: Construction of 5-star Saadiyat Rotana

Resort comprising (354) rooms and (13) beach villas.

Client Name: Rotana Hotels, Suites & Resorts (Abu

Dhabi)

Country: UAE

Consultant: EC Harris International Limited (Abu Dhabi)

Status: New Project

Project Name: Red Sea Astrarium Theme

Entertainment Resort Project

Description: Development of Red Sea Astrarium

theme entertainment resort comprising four

world-class hotels, and expansive retail and

dining district, a theatre, a 4D cinema, waterpark

and an entertainment district that includes (16)

entertainment attractions.

Client Name: Aqaba Special Economic Zone

Authority - ASEZA (Jordan)

Country: Jordan

Consultant: Rubicon Group Holding

(Jordan)

Status: New Project

Project Name: Hotel Residences Tower Project -

Dubai Maritime City Development

Description: Construction of a new luxury tower

consisting of serviced hotel residences at Dubai

Maritime City Development.

Client Name: Damac Properties (Dubai)

Country: UAE

Status: New Project

Project Name: Crowne Plaza Oman Convention &

Exhibition Centre Project

Description: Construction of a hotel comprising

(296) rooms featuring extensive meeting and

event facilities with a separate function centre

that will include a glamorous ballroom with

terrace, a boardroom and three large meeting

rooms.

Client Name: Oman Tourism Development Company

S.A.O.C (Omran)

Country: Oman

Status: New Project

Project Name: Viceroy Resort Project - Palm Jumeirah

Description: Construction of Viceroy Resort

comprising (481) rooms and (221) residences,

Page 57: Hospitality Business ME | 2013 July

HOSPITALITY BUSINESS MIDDLE EAST / 55JULY 2013cpimediagroup.com

TENDERS

PARAMOUNT HOTEL DUBAI PROJECT VALUE

$1bn

including (10) restaurants, an 800-square-metre

spa, a 350-square-metre gymnasium, a 106-metre

swimming pool and a beach club.

Client Name: SKAI Holdings Ltd. (Dubai)

Country: UAE

Consultant: Palmer & Turner Architects & Engineers

Limited (Dubai)

Contractor: China State Construction Engineering

Corporation (Dubai)

Budget (USD): 272,000,000

Status: Current Project

Project Name: Jabal Omar Area Development

Description: Development of Jabal Omar area

involving construction of five-star hotels, residential

towers, retail concourse and a car park.

Client Name: Jabal Omar Development Company

(Saudi Arabia)

Country: Saudi Arabia

Consultant: Hill International Middle East Ltd.

(Saudi Arabia)

Contractor: Rio Trading & Contracting Company

(Saudi Arabia)

Budget (USD): 5,100,000,000

Status: Current Project

Project Name: Jabal Al Akhdar Resort

Description: Construction of Jabal Al Akhdar Resort

comprising (78) rooms, six suites and two royal villas

along with a cliff-side restaurant, pool, spa, fitness

centre and space for events.

Client Name: Oman Tourism Development Company

S.A.O.C (Omran)

Country: Oman

Dawood Contracting L.L.C (Oman)

Budget (USD): 35,000,000

Status: Current Project

Project Name: St. Regis Amman Hotel & Residences

Project

Description: Construction of St. Regis Amman Hotel

& Residences comprising (270) guestrooms, including

(91) suites, four restaurants, a cafe, destination bar,

pool and pool bar, fitness centre and signature spa

along with (80) residences.

Client Name: Al Maabar Abdoun Real Estate

Development Company (Jordan)

Country: Jordan

Consultant: KEO International Consultants (Jordan)

Contractor: Arabtec Construction L.L.C (Jordan)

Budget (USD): 300,000,000

Status: Current Project

Project Name: Mixed-use Development Project -

Meydan City

Description: Development of a mixed-use scheme

comprising a shopping mall, villas, apartments and

hotels.

Client Name: Sobha Group (Dubai)

Country: UAE

Budget (USD): 3,000,000,000

Status: New Project

Project Name: Damac Towers by Paramount Project

- Downtown Dubai

Description: Construction of Damac Towers by

Paramount comprising a five-star hotel and branded

serviced apartments.

Client Name: Damac Properties (Dubai)

Country: UAE

Budget (USD): 1,000,000,000

Status: New Project

Project Name: Al-Waha Mixed-use

Development Project

Description: Development of Al-

Waha mixed-use scheme comprising

residential, commercial and hospitality

towers, a hotel, serviced apartments,

a shopping mall, supermarkets, a cinema,

including a health club.

Client Name: Al Maabar International Investments

(Abu Dhabi)

Country: Libya

Consultant: RW Armstrong (Libya)

Budget (USD): 200,000,000

Status: New Project

Project Name: Marina Mall Project - Lusail

Description: Build-operate-transfer (BOT) contract

for the development of Marina Mall comprising two

floors and ground floor, surrounded with a hotel as

well as office and residential space.

Client Name: Mazaya Qatar Real Estate

Development Company (Qatar)

Country: Qatar

Consultant: HOK International (Qatar)

Budget (USD): 275,000,000

Status: New Project

Project Name: Msheireb Downtown Doha

Development Project

Description: Development of Msheireb Downtown

Doha (Formerly Heart of Doha City) mixed-use

scheme comprising several districts, including a

residential and mixed-use quarter, a retail quarter, a

heritage quarter and a commercial area.

Client Name: Msheireb Properties

(Qatar)

Country: Qatar

Consultant: Gensler Associates International (USA)

Contractor: Hyundai Engineering Corporation

(South Korea)

Budget (USD): 6,000,000,000

Status: Current Project

Project Name: Commercial Tower Project - Bahrain

Bay Development Description:

Construction of a commercial tower comprising

a ground floor and (47) upper floors, including a

five-star hotel occupying (14) floors offering (260)

guestrooms, over 500 square metres of meeting

space and a 900 square metre ballroom.

Client Name: Cooperation Investment House BSC

(Bahrain)

Country: Bahrain

Consultant: Arif Sadiq Design

Consultants (Bahrain)

Contractor: Ahmed Al Qaed Group

(Bahrain)

Budget (USD):

55,000,000

Status: Current Project

Project Name: Dragon Mart Expansion Project

Description: Carrying out expansion of Dragon Mart

by building 177,000 square metres of retail space,

including a three-star hotel and multi-storey car

park.

Client Name: Nakheel PJSC (Dubai)

Country: UAE

Contractor: Kele Contracting L.L.C (Dubai)

Budget (USD): 273,000,000

Status: Current Project

Project Name: Karbala Town Development

Project

Description: Development of a complete

town comprising 40,000 housing units, hotels,

schools, clinics and other facilities in the city of

Karbala.

Client Name: National Investment Commission

(Iraq)

Country: Iraq

Contractor: Bloom Properties (Abu Dhabi)

Budget (USD): 3,500,000,000

Status: Current Project

Project Name: Frontier Town Development Project -

Description: Development of Frontier Town, covering

29 hectares and comprising (446) homes, a shopping

mall, a wholesale centre and a school.

Client Name: Oman Tourism Development

Company.

Page 58: Hospitality Business ME | 2013 July

56 / HOSPITALITY BUSINESS MIDDLE EAST JULY 2013 cpimediagroup.com

COMMENT

How can social media be used outside of pre-arranged marketing budgets?Social Media is a platform that

allows a hotel to be spontaneous in its

marketing, something that cannot be

achieved via traditional channels.

When pushing an offer or

promotion via social media, it should

be relevant to the recipients receiving

it. For example, if the offer is targeted

towards a family, then the image, hash

tags and copy should be relevant to

that demographic.

What kind of promotions is social media marketing specifically good for?Most of your fans are fans because

they have either been a customer

before, plan to be a customer

or are just a fan of the brand

and so promotions that relate to

this can be very affective.

Some hospitality brands already

provide offers and promotions that are

specifically for fans of their Facebook

page, or followers of their Twitter

account. These types of promotions

are very well accepted by your social

media following, as it provides them

with something in return for being a

faithful brand follower or ambassador.

Five minutes with…As Ramadan arrives, flash sales and limited offer promotions using social media will be vital to driving business, but how should these be managed for maximum impact? Digital marketing consultant Paul Parsons, of Edition Hospitality, shares his tips

Hootsuite - a social media management tool

allowing you to schedule posts, track your

activity and ROI, and much more.  

Mention - an online listening tool that

allows you to see where your brand is being

mentioned, to what audience, the content

used and also provide you with a way to

respond.

Shortstack - an easy to use application

builder for Facebook pages, providing

you with a way to show more about your

brand within Facebook, run incentives and

competitions and provide a brand presence to

your page. All applications mobile optimised.

Social Media Toolbox

Which social media platforms are best suited to flash sales?Using the social media platforms you

have the strongest following on is

usually the best place to start.

Factors such as the demographic

you are trying to reach, also have a

huge impact. If you are trying to reach

a business audience, then perhaps

LinkedIn is a more relevant platform.

Some platforms provide a very

viral way to reach a wider audience,

but also an easy way for customers

to purchase such as Facebook offers.

Elaborate on this opportunity.

What are the benefits of using social media rather than daily deal sites?Cost is probably the most important

factor. Using your own network of

customers via social media will allow

you to provide a better rate as you are

driving bookings direct, also they are

your customers and fans, not bargain

hunters and will therefore not lower

the perception of your brand in the

way a daily deal can.

Social media also provides you

with an interactive and viral way

to promote your offer, utilising

core features of most social media

platforms such as the like button,

share button or retweet, all of which

spread your message further in a

single click.

Turn around time for offers via

social media is also a great benefit,

especially when it is related to an

F&B offer, as the promotion can be

approved and posted within an hour.

What are the common mistakes hospitality brands make when communicating on SM?Not listening to their customers is

one of the biggest mistakes. Social

media is not another way to just

push, push, push. It is a way to

build and maintain relationships and

communicate with your customers as

well as potential customers.

Hospitality brands need to adopt more

of a community manager approach to

social media, instead of the current

sales approach.

Content is possibly the most

important part of communicating

via social media; create content that

reflects your brand, your offering and

most importantly, content that your

audience wants!

Hospitality brands should also look

to user generated content as a part of

their strategy and empower customers

to share images, reviews and videos

of their experiences, which in turn is

then shared to your customers.

Page 59: Hospitality Business ME | 2013 July
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… W H E R E T H E S T Y L I S H , I N N O VAT I V E D E S I G N

I S B O R N O U T O F T H E C R A F T S M A N S H I P

O F W H O L E G E N E R A T I O N S O F G L A S S M A K E R S

The St. Regis Saadiyat Island Resort | Abu Dhabi, UAE

PRECIOSA GULF FZCO

JAFZA View LB 19, Offi ce 2407Jebel Ali Free Zone, P. O. Box 18185Dubai, United Arab Emirates

P + 971 4 884 8234F + 971 4 884 8235E [email protected]

www.preciosalighting.com