hotel news me - april 2016

THE profEssional pErspEcTivE for THE HospiTaliTy indusTryapril 2016 | WWW.HoTElnEWsME.coM

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April 2016 HOTEl NEWS ME 3

Contents

hot topics

08 | NEWSA summAry of regionAl And globAl news

18 | MEEt thE judgESHeAr wHAt tHe judges of leAders in HospitAlity AwArds HAve to sAy

24 | thE PaNElA group of gen-Z teens tell tHe industry wHAt tHey reAlly wAnt

54 | MEEt thE ExPErtSHospitAlity speciAlist views

FEAtUREs

30 | ChaiN FoCuSintercontinentAl Hotel group: profiling tHe group’s AcHievements And future goAls

34 | CovEr StorytHe tAlent pool crisis

42 | takE 10dubAi As A mice destinAtion

46 | atM 2016wHAt to expect from tHe lArgest trAvel trAde sHow

56

2016

24

HOTEL NEWS ME ApriL 20164

Contents

58 | SuPPliEr FoCuStHe lAundry services And products you sHould know About

INTERVIEWS 20 | FaCE to FaCEpAscAl gAuvin discusses tHe key to membersHip communities

42 | iNtErviEWbAni HAddAd unveils tHe middle eAst’s first tHird pArty Hotel mAnAgement compAny

50 | iNtErviEWjAnnAH Hotels neHme imAd dArwicHe on core business strAtegies And tHe importAnce of culturAl HospitAlity

42

46

66

30

S U B S C R I B E

C o n t R I B U t o R S

[email protected]

Managing Director

Walid [email protected]

Director Rabih Najm

[email protected]

Director Wissam Younane

[email protected]

Group Publishing DirectorDiarmuid O'Malley

[email protected]

Group Editor Melanie Mingas

[email protected]

Editor Sophia Soltani

[email protected]

Art Director Aaron Sutton

[email protected]

Marketing Executive Mark Anthony Monzon

PO Box 502511 Dubai, United Arab EmiratesP +971 4 4200 506 | F +971 4 4200 196

For all commercial enquiries related to Hotel News ME contact

[email protected] T +971 50 55 97339

All rights reserved © 2014. Opinions expressed are solely those of the

contributors.Hotel News ME and all subsidiary

publications in the MENA region are officially licensed exclusively to BNC Publishing in the

MENA region by Hotel News ME.No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Printed by Raidy Emirates Printing Group LLC www.raidy.com

Gemma Greenwood

Photography byAbhishek Shroff

Leaders in Turnkey Solutions for Commercial Kitchen and Laundry EquipmentPO Box 69 Dubai, UAE Tel: +971 4 3431100 Mob: +971 56 5774390 Fax: +971 4 3438226 Email: [email protected]


Over the last four years Egypt has suffered a massive slump in investment, tourism numbers and new developments. Back in its peak performance year of 2010, the Land of the Kings enticed 14.7 million tourists a year with some $12.5 billion in revenue from the hospitality sector.

So how does a market rife with political uncertainty and the threat of terrorism rebound?

It’s not hard to understand why the masses flock to Egypt, with rich archeological heritage, pristine resorts and the Great Pyramid of Giza all standing testament to the country’s history withstanding the test of time proves true when the statistics speak for themselves. Colliers International reported tourism in the country grew by 16% from last year and RevPar is on the up with 31.2% increase between 2014 and 2015.

Those who’ve worked in Egyptian hospitality for a while can take the benefit of a long-term view. Hilton, for example, opened its first property in the country, the Nile Hilton in Cairo in 1958, just two years after the Suez Canal crisis threatened to destabilise the entire region. 56 years later, the property still stands, albeit thanks to a renovation or two.

Additionally, the news that Starwood will be launching its W Hotels brand in Egypt, with the opening of W Sharm El Sheikh and The Residences at W Sharm El Sheikh in 2020 is just the tip of the iceberg. Hilton is placing big bets on the country, with two hotel deals signed this year based around the Ain Al Sokhna resort city on the Red Sea, one a Doubletree and the other Hilton Al Sokha.

With that said, there appears to be promising opportunities for the country as it becomes a hotbed for investors in both city and resort locations, meaning that hotels can once again target leisure customers and families during public holidays with the new opening for business travellers during the week in prime city locations.

So, before the economic downturn, Egypt massively relied on foreigners to bolster the tourism sector, whereas now, the domestic market is becoming increasingly essential for growth as the economy proves that the middle-classes have more to spend, but with regional security issues still at the forefront of many peoples’ mind Egyptians themselves are increasingly travelling internally.

To conclude, there’s no doubt that the government is increasingly proactive in working to bring in foreign investment as the dust from revolution settles. President Abdel Fatah al-Sisi has taken great pains to encourage Western investment and project an image of stability and, while he’s far from a model democrat, stakeholders seem confident that he is willing to put his money where his mouth is.

Sophia Soltani Editor

EyEing up Egypt

Follow us on oursocial media pages

@hotelnewsme /hotelnewsme

hotelnewsme

Is Egypt’s hotel market about to bounce back?

1765 GEMINI LLCP.O.Box 125434

T +971 4388 4773www.1765gemini.com


Regional news

sAUdi toURism to bEgin sUpERvising Room RAtEs

WHO SAID THAT?

“The TIMe hoTels phIlosophy Is cenTered on

delIverIng qualITy and

addIng value. The launch of TIMe

rewards exTra Is The laTesT weapon

In our loyalTy conversIon

arsenal as we grow our

porTfolIo and exTend our

global presence by welcoMIng new

guesTs Through our doors as parT

of The InTerna-TIonal voIlÀ hoTel

rewards neTwork,”

MohaMed awadalla, Ceo, TIMe hoTels

For the month oF February, beirut

reported a

1.9%decrease in occupancy

to

48.4% an 8.9% drop in adr

to

LBP 203,858.09and a

10.6%decline in revpar

to

LBP 98,605.75(source: str)

GO FIGUREThe Saudi Commission for Tourism and National Heritage (SCTNH), has constituted a ministerial team to supervise the prices of all accommo-dation facilities.

The team includes representatives from the ministries of municipal and rural affairs, commerce and in-dustry and Haj, and an SCTNH official. Omar bin Abdul Aziz Al-Mubarak, director-general of the licensing depart-ment at the SCTNH, said the team held its first meeting recently and discussed the mechanism of prepar-ing the database. In the first phase, it covers 4-and-5 star hotels as they are an important category and usu-ally offer significant indication on the hotel performance.

He said the next phases of the

project would cover the rest of the categories of hotels and other accommodation facilities. Al-Mubarak said the price list can also be viewed on the SCTNH website in the hotels statistics segment. The upgrade in phases will provide bet-

ter knowledge and boost confidence among guests and tourists in mak-ing a proper choice.

“It will help to create more trans-parency and credibility, as well as fair competitiveness for marketing hotel units,” he said.

Moreover, it will point investors in the right direction, highlight

price trends and movements in the domestic hotel market, which will further help in determining the ap-propriate and reasonable prices that match market conditions and iden-tify investment operation return in each province.

The hospitality sector in the Kingdom is wit-nessing a phenomenal growth with tourist ac-commodations benefit-ing remarkably in terms of number of facilities, size of investment, pri-

vate sector regulatory development and increased job opportunities for Saudi youths.

The quality control and licensing department team of the SCTNH also makes surprise visits of tourism facilities, including accommodations, across the Kingdom to ensure quality services and fair prices to visitors.

NEWS

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Regional news

WHO SAID THAT?

-

“The growTh froM

russIa Is parTIcularly

posITIve, noT only dId

The nuMber of vIsITors

To rak Increase buT

rooM nIghTs were also

up by 33.96% and

average daIly raTe

Increased by 56.72%.”

-

haIThaM MaTTar, Ceo, ras

al KhaIMah TourIsM

developMenT auThorITy

tourism revenues in

ajman For 2015 reached

AED 359man increase oF

19% compared to 2014

With guests From the

uae

the strongest

contributor With

132,455guests in 2015

GO FIGURE“people who come to dubai have often travelled the world, experienced the best of everything, and have extremely high expectations – at four seasons, our role is that of facilitator, to anticipate and exceed, to personalise and to delight in ways that mean the most to our guests.” Carlo Stragiotto, general manager, Four Seasons Hotel DIFC

“GlObAlly WE HAvE

HOTElS In

DESTInATIOnS WHIcH

HAvE ExpERIEncED

pOlITIcAl UnEASE OR

UnREST In THE lAST

FEW yEARS, InclUDInG

SOmE In THE mEnA

REGIOn, bUT AS

lEADERS In bOTH

DOmESTIc AnD

InTERnATIOnAl

TOURISm WE ARE AblE

TO REAcT AnD ADApT

AccORDInGly TO

REmAIn WEll

InSUlATED.”

Daniel Ruff, WynDham

hotel GRoup’s pResiDent

anD manaGinG DiRectoR,

emea

This year’s HORECA exhibition is set to take place from 5- 8 April at Beirut International Exhibition and Leisure Center (BIEL) and will serve as a platform for Leba-nese entrepreneurs looking to ex-plore franchising opportunities in the Dubai market.

Charles Arbid, president of the Lebanese Franchise Asso-ciation said: “Dubai is a positive façade for Lebanese franchises, given that the emirate enjoys per-petual activity, lively tourism and continuous growth, making it a gateway for these institutions to expand toward other countries.” Demonstrating the popularity of Dubai among Lebanese fran-

chisors, Arbid highlighted that more than 50 restaurant brands have already successfully entered the UAE, including Abd El Wa-hab, Leila, Classic Burger Joint, Kababji, Casper and Gambini’s, Zaatar and Mayrig restaurant.

Commenting on the experi-ence of operating a Lebanese franchise in the UAE market, owner of Mayrig restaurant, Aline Kamakian, who invested $2.2 million in the first Dubai location called it “a challenging and very

beautiful experience.” A meeting place for hospitality and food-service industries, the four-day HORECA exhibition is expected to attract more than 350 local and international exhibitors and over 15,000 visitors.

Over 20 international grape connoisseurs, culinary profes-sionals, service specialists, olive oil consultants and bartenders will be sharing their know-how during live cooking sessions and masterclasses at the show, while a number of competitions will take place. These include the Hospi-tality Salon Culinaire, the Art of Service, Lebanese Bartenders, Best Barista and Bed Making.

hoREcA 2016 to FocUs on FRAnchising oppoRtUnitiEs

— Ask us how!


Regional news

marriot and starwood megadeal back on track

Starwood Hotels and Resorts World-wide has accepted a revised offer to merge with Marriott International af-ter Chinese giant, Anbang threatened to shake-up the existing merger deal.

Marriott raised its bid for Star-wood from $65.33 a share to $79.53 a share, greater than Anbang’s offer of $78 a share. Starwood sharehold-ers will receive $21 cash and 0.8 shares of Marriott Class A common stock for each share of Starwood common stock.

Marriott International, and Star-wood Hotels and Resorts World-wide, have now signed an amend-ment to their definitive merger agreement that creates the world’s largest hotel company.

Arne Sorenson, president and chief executive officer of Marri-ott International, said: “After five months of extensive due diligence and joint integration planning with Starwood, including a careful analysis of the brand architecture and future development prospects, we are even more excited about the

power of the combined companies and the upside growth opportuni-ties. We are also more confident of achieving our updated target of $250 million of cost synergies. With a higher cash component in the purchase price, we have im-proved the transaction’s financial structure as well.

“We expect to accelerate the growth of Starwood’s brands, lev-eraging Marriott’s worldwide hotel development organisation and own-er and franchisee relationships. On the top line, combined sales exper-tise and increased account coverage should drive additional customer loyalty and increase revenue. Ho-tel level cost savings should benefit owners and franchisees, including better efficiencies in reservations, procurement and shared services. The company will have a broader global footprint and the most pow-erful frequent traveler programs in the industry, strengthening Marri-ott’s ability to serve guests wherever they travel.

“We are also bringing together two of the most talented and experienced teams in the industry. Together, they will combine their innovative ideas and service commitment to deliver unforgettable guest experiences.”

Bruce Duncan, chairman of the board of directors of Starwood Hotels and Resorts Worldwide, said, “We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consid-eration being paid to Starwood share-holders. We continue to be excited about the combination of Starwood and Marriott, which will create the world’s largest hotel company with an unparalleled platform for global growth in the upscale segment. We are also pleased with the progress the two companies have made toward closing. Marriott’s revised offer pro-vides the highest value to our share-holders through long-term upside potential from shared synergies and ownership in one of the world’s most respected companies, as well as signifi-cant upfront cash consideration.”

WHO SAID THAT?

“we fIrMly belIeve

In Iran’s TourIsM

poTenTIal and I aM

very proud To

have earned The

TrusT of our parT-

ners In The

ManageMenT of

ThIs hoTel, a

furTher

deMonsTraTIon

ThaT we are a

sIgnIfIcanT

InTernaTIonal

player for The

MosT presTIgIous

hoTel projecTs

anywhere In The

world.”

GabrIel esCarrer,

vICe ChaIrMan and

Ceo of MelIá hoTels

InTernaTIonal

February data For abu

dhabi reported a

4%increase in supply

but a

1.7%drop in demand

occupancy rates Fell by

5.5% amounting to

76.3%compared to the same

month in 2015

(source: str)

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Regional news

sUn siyAm iRU FUshi to host inAUgURAl intERnAtionAl toURism Film FEstivAl mAldivEs

dUbAi spA bEnchmARk sURvEy soUth AFRicA sEEs incREAsE in dEmAnd

The Sun Siyam Iru Fushi resort in the Mal-dives is set to host the first International Tour-ism Film Festival Maldives, titled: 'Following the Equator' and will take place from 10 – 12 July 2016.

Set in the 52-acre property, the festival marks a significant milestone for the world of cinema, as it is anticipated to attract different age groups, interests and backgrounds all in the one place. Entries at the festival will in-clude movies about interesting places on the planet, the culture and history of countries and their events, lasting from one to 13 minutes. The festival involves professional, amateur and student films, programs and video - films about tourism, science, nature, sports and tourist, cultural and historical sites in different

countries. During the three-day run, ITFFM will feature an array of nightly special events, including orange carpet premieres, gala cel-ebrations, filmmaker receptions, compelling filmmaker Q&As, international spotlights, industry seminars and musical performances. The Festival will host numerous opportunities to connect with enthusiastic new audiences, fellow filmmakers, film industry professionals and the media.

The resort is located in Noonu Atoll and is a 45-minute seaplane ride from Malé Interna-tional Airport and is designed around beach villas with private terraces. Each room has an en-suite bathroom that comes with a spa bath-tub and an outdoor rain-shower. Other fea-tures include free Wi-Fi and 14 F&B outlets.

Day one: July 10• Grand opening with a cocktail

reception and concert • History and legends of cultural music

and dance • Film competition • Secrets of Maldives: Trade fairs and

exhibition

Day two: July 11• Master Class of filming and photo-

making• Master Classes Pilates and Yoga

(Beach and Gym) • Master Class: Mystery of Ayurveda

(Spa) • Master Class: Health by Traditional

Chinese Medicine (Spa)• Wine and Food Academy (Wine

Cellar) • Film competition

Day three: July 12• Film competition • Awards Party• Lottery and prizes• Spiritual live music of Maldives

Program

12%

12%

56%

20%Decline

No Growth

Grow by 1% - 9%

Grow by 10% orm ore

12%

20%

36%

60%

64%

68%Recruitm ent – Finding the right talent

Price sensitive clients

Com petition from new entrants

Staying up to date with spa trends

Staff Training

Staff Turnover

The m ajor challenge faced by spa operators in Dubai continues to be

recruitm ent of spa therapists, followed by an increasingly price sensitive

custom er base

TOP CHALLENGES FACED IN 2015

OUTLOOK FOR 2016 SPA REVENUE GROW TH EXPECTATIONS

TOP 3 GUEST NATIONALITIES PAYROLL COST

Payroll costs vary greatly across spas, with 48% of

respondents registering payroll costs between 21% -30%

Payroll Cost (% of revenue)

% of Respondents

Below 20%

21%-25%

26% -30%

31%-35%

36% -40%

Above 40%

8%

28%

20%

4%

12%

28%

City hotel spas receive a higher share of walk-in guests that are UAE residents, while Resort spas

tend to cater to tourists

Beach & Desert Resort Spas

British

UAE / GCC

Russian

1

2

3

City Hotel Spas

UAE / GCC

British

Indian

1

2

3

#2

#3

#1

#4

#5

#6

76% of respondents believe that spa revenues will grow in 2016 com pared to 2015

johannesburg, south Africa, posted increases across three key performance metrics for february 2016: occupancy was up +5.1% to 63.1%, Adr increased +7.9% to ZAr914.28 and revpAr rose by +13.4% to ZAr576.58. johannesburg has seen positive annual revpAr performance since 2012, and with 2016 year-to-date demand growth at +8.6% significantly outpacing supply at -0.9%, february numbers followed the trend. str analysts point to an increase in international tourist arrivals as a main driver of demand.Source: Colliers International


event pReview

gm lEAdERs conFEREncE 2016

Hotel News ME is gearing up to host its GM Leaders Conference for the second year run-ning and presenting sponsor, Rikan General Trading has confirmed its support of the event by coming on board two years in a row.

Commenting on the upcoming event, Riaz Khimani, managing director, Rikan General Trading said: “This conference of-fers the right platform for us to be in touch with the leading hoteliers in the industry. We as a company are always very keen to learn from our clients and study the ever changing trends in the market. This confer-ence works as a way for us to understand current trends in the industry, thus enabling us to offer new creations. We solely spon-sored the same event in 2015 at the Four Seasons Jumeirah and would love to be as-sociated with this event this year and every year hereafter.”

This year, the conference will take place on 16 May, 2016, at the newly opened St. Regis Dubai and is set to bring together over 100 general managers and senior leaders in the hospitality industry for a day of lively panel discussions, expert sessions, key-note presentations and workshops.

The event will be moderated by broad-caster, presenter and journalist Stephen Marney and will involve prime networking opportunities and open Q&A sessions for delegates in attendance.

The conference will also mark the launch of the annual Hotel News GM suvey, the re-sults of which will be used as a springboard for debate.

Commenting on the second edition of the GM Leaders Conference, Diarmuid O’Malley, group publishing director for

BNC Publishing said: “Following on from the huge success of last year’s conference, I am confident that the second edition will bring even more value to the industry, with great partners and speakers we aim to bring valu-able information to the hoteliers. It is vital as an industry we work together and collaborate on new ideas and ways to overcome existing challenges. I have no doubt that we will ex-ceed last year’s delegate number of 150.”

For all sponsorship enquiries please con-tact: [email protected] and for all speaking opportunities please contact: [email protected]

the second edition of Hotel News ME’s gm leaders’ conference will take place on 16 may 2016 at st. regis dubai

8.00am Registration and networking

8.50am Welcome Address from Hotel News ME + GM Leaders Survey headline results

9.00am Video link welcome from presenting sponsor, Rikan General Trading

9.10am KEYNOTE Marc BennettSVP International Operations, DCTCM

9.30am EXPERT SESSIONIntroducing the Guest Experience Index

9.50am PANEL The Guest Experience IndexThis year Colliers International in association with Dutch startup Olery, developed a software that combines data sets to create the ultimate performance rating tool. This panel will explore its use for the industry and what it could mean for the future of hotel performance ratings.

10.35 BREAK

11.00am EXPERT SESSION Dubai’s pipeline A round up of the most significant new openings due in 2017 and what this means for existing hotels

11.20am PANEL The Rate WarWith numerous micro-markets emerging across the individual emirates, this panel session will debate the impact on rates in prime and secondary locations and also asses how and when hoteliers should revise their set rates.

12.05 BREAK

12.30pm EXPERT SESSION Cyber Crime Following on from the highly popular cover story “Under Attack: Why hotels are a cybercrime target”, this session will highlight the dangers and vulnerabilities of hotel systems and advise on how to handle a cybercrime emergency.

12.50pm PANEL Female Leaders There are plenty of women going through hospitality school, yet far fewer women than men in the upper echelons of hospitality management. This session explores the potential reasons and debates what else the industry can do to support its workforce.

1.30pm WORKSHOP Emirates Academy of Hospitality Management Learn key leadership skills direct from the Academy

2pm Lunch and close of conference

Schedule

45cm

25cm

SponSored by

Knowledge partner

+971 4 340 4795 / 055 SPARROWUmm Suqeim St. 179 / Dubai [email protected]


event pReview

mEEt thE jUdgEs: lEAdERs in hospitAlity AwARds 2016Hotel News ME gears up to host its first leaders in Hospitality Awards 2016 at the newly opened st. regis dubai on 19 April, a stellar line-up of judges have confirmed their support for the event.

RuppRecht Queitsch, ceO and fOundeR, inhOcO GROupHospitality veteran, Rupprecht Queitsch boasts more than 40 years of hospitality experience, covering three continents, spanning several GM roles alongside overseeing the successful launch of the world’s tallest hotel, JW Marriott Marquis Dubai, in 2012. Having now branched off to set up the International Hospitality Consulting Group (INHOCO) he has be-come a hospitality entrepreneur in his own right.As one of the named judges, Queitsch explains the qualities he is looking for in an award winner, saying: “Pas-sion, vision, positive, pro-active leadership qualities, as being of service to different stakeholders within the busi-ness is a balancing act between owners, operators and brands, staff and guest priorities; I look at how a candidate champions “the juggling act” of the above at the best possible level.”

ali ManzOOR, assOciate paRtneR, KniGht fRanKManzoor has been in the Middle East since 2011 and has been primarily working on hospitality development projects throughout the MENA region. In this time he has worked with developers, investors and govern-mental institutions on market entry strategies, concept definition, operator selection, feasibility studies and optimum site use for both large-scale multi-use projects and stand-alone assets. Prior to moving into hospitality development advisory, Manzoor worked in the luxury hospitality industry in London. Discussing why awards such as these are important in upholding morale in the industry, Manzoor said: “Awards like these are instrumental in promoting best in class ideas and practices. Through such events, we can learn from our industry peers while giving recognition to those who are able to innovate.”

Rabih feGhali, diRectOR at Ròya inteRnatiOnal hOspitality and leisuRe cOnsultantsFeghali spent the early part of his career working in New York City at iconic properties such as The New York Palace, The Plaza and the Westin before moving back to Abu Dhabi to run a boutique hotel. Prior to joining Ròya, he held the position of director of hospitality development at FFA Real Estate in Beirut where he oversaw several hospitality development projects. A graduate of Les Roches Hotel School in Switzerland and the Uni-versity of Nevada in Las Vegas, he has also received graduate certification from Cornell University, New York. When asked about his favorite category he said: “I am really excited about the Young Nationals Award – because its high time we started recognising the region’s young hoteliers. Historically, our industry had failed to attract nationals since we haven’t offered the most lucrative career choices. This is changing as we see more and more nationals looking at hospitality as a legitimate professional career.”

GauRav sinha, fOundeR and ceO Of insiGnia WORldWideFounder and CEO of INSIGNIA Worldwide, Sinha also boasts experience in the hospitality industry. When asked about the qualities a leader in hospitality needs to possess, he said: “The winning qualities for a Leaders in Hospitality Award include innovation and exemplary results in their relevant segments. The winning can-didate will be testament to resilience and creativity in their approach to business and driving success for their organisation.”

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event pReview

MaRianne saulWicK, diRectOR Of industRy liaisOn at the eMiRates acadeMy Of hOspitality ManaGeMentSaulwick, boasts an extensive background in hospitality having owned restaurants and an events company in Australia and is currently the director of industry liaison for the Emirates Academy of Hospitality Manage-ment. She represents the Academy at local and international levels. A restaurant reviewer in Australia and the UAE and a lecturer in Leadership in the GCC region, Saulwick shares her thoughts on what it takes to be a leader. “I am particularly interested in the Best Interior and Best Refurb categories having had a long standing interest in design. The new generation of guest is often design conscious and hotels have to respond to this. I’m also keen on the Young Nationals award as we have many fine young men and women making their mark on the industry.”

filippO sOna, diRectOR, head Of hOtels, Mena ReGiOn, cOllieRs inteRnatiOnal Sona has worked in the hospitality industry all his life, and has spent the past 21 years at an international level. The early part of his career included experience in hotel operations, sales and marketing, and business development. As an experienced hotel consultant Sona has worked for leading hotel consultancies, and be-fore Colliers International he founded Bottom Line Hotel Consultancy Ltd, a boutique practice, and carried our consultancy in UK, Russia, Croatia ,Caribbean and continental Europe. Commenting on the qualities he will be looking out for in a winner, Sona said: “An individual or establishment that has shown creativity and pro-activeness in its contribution to the industry. Small pragmatic action that made a big difference.”

daniel duRinG, pRincipal and ManaGinG diRectOR, thOMas Klein inteRna-tiOnal (tKi)During was born in Argentina and moved to Europe as a teenager, he then went on to obtain his Hotel Bachelors degree in France in 1986. During has spent most of his life living and working across the globe and spent 10 years with Hyatt International Hotels in executive positions in luxury, urban and resort properties in the Middle East, Serbia, Spain and Kazakhstan.

Discussing the Awards, During said: “It is a breath of fresh air to see best CSR as one of the categories. It will be interesting to see what hotels come up with and whether there is real ‘juice’ in what they do. I per-sonally think that a key aspect of any award is not only to recognise the best, but to encourage the industry in general towards action on those specific areas/categories. As CSR and the environment gain stage in the awards, I hope to see hoteliers and restaurateurs investing extra efforts in giving back to the society and to the environment. What is also extremely exciting on this awards is that any hotel can be nominated by anybody, and judged accordingly. Unlike many other industry awards there is no fee attached to the nomination, so there is no deterrent for anyone to participate.”

industRy cateGORies:• Leading new HoteL• Best new Mid-Market HoteL• Leading HoteL F&B outLet• Best spa• Best Fitness & HeaLtH FaciL it ies• Best For tecHnoLogy• Best interior• Best rooM reFurB• Best csr init iative• Marketing caMpaign

peOple cateGORies:• Best new gM• young nationaLs award• toMorrow’s Leader• L iFetiMe acHieveMent award• gastronoMic superstar• Best procureMent init iative• Housekeeper oF tHe year• gM Leader award

cAtEgoRiEs - lEAdERs in hospitAlity AwARds 2016


First look

Behind the wheel of success

With no plans of slowing down, Pascal Gauvin, COO, India, Middle East and Africa, InterContinental Hotels Group tells Sophia Soltani why it’s best to strike whilst the iron is hot and how building membership communities within an organisation is vital to creating loyal followings on the outside


FaCe to FaCe

when thinking of hospitality veterans, Pascal Gauvin definitely makes the cut having spent over 15 years with InterContinental Hotel Group and working his way up to COO.

Having first joined the hotel group in 1993 as F&B manager at InterContinental Hotel Paris, it is clear to see Gauvin’s rapid succession of roles spanning from general manager, vice president of opera-tions to COO in just over a decade.

As he continues to drive the growth of one of the biggest international chains in the region with 25 hotels, amounting to 9,658 rooms in the pipe-line for the region, IHG has a firm focus on two markets: the UAE taking the number one spot with 11 hotels, closely followed by Saudi Arabia.

Explaining the significance of Saudi Arabia, Gauvin says: “We have a long history and experience operating in the Kingdom of Saudi Arabia, having opened our first hotel, InterContinental Riyadh, in 1975. 41 years later, we remain confident of our long term growth. In the next three to five years, we’re looking at increasing our system size by nearly 130%, from over 6,000 to around 13,900 rooms.”

And with such extensive plans for Saudi, Gauvin adds: “Currently, there are seven hotels in our pipeline for Saudi Arabia, the second largest in the Middle East. In 2012, we signed our first Hotel Indigo in the region with Hotel Indigo Riyadh King Abdullah Financial District. Last year, we opened the 100 room Holiday Inn Tabuk, the first hotel to be signed and opened under our MDA with DUR Hospitality Group, as well as Holiday Inn Jeddah Gateway, with 200 rooms, our second in Jeddah.”

With so many hotels opening, when asked about the recruitment process and talent pool for the hospitality industry in Saudi, Gauvin con-fidently explains: “In Saudi Arabia, more than a quarter of our employees are Saudi nationals, and we are looking to fill another 4,000 roles with the opening of the hotels in our pipeline.”

standinG Out Given the huge proliferation of luxury hotel brands in the Middle East the industry is rife with competition, so when asked what IHG bring to the mix that is different, Gauvin emphasises the need for personalision to stay competitive in a saturated market.

“The definition of luxury varies from person to person. InterContinen-tal Hotels and Resorts is our luxury hotel brand that creates personalised authentic local experiences for world travellers. Our hotels are located in most of the world’s key cities and many resort destinations across 65 countries worldwide, allowing guests to discover the real city from a locals’ point of view.”

Personalisation is just one factor on Gauvin’s list of many differentiators with technology, cuisine and the element of exclusivity equally important, as he explains: “We provide luxury services through our Club InterConti-nental Lounge, combining the exclusivity of a private lounge with personal service through The InterContinental Concierge Programme. We are the first hotel brand to launch a global iPad app to help guests tap into con-cierge’s local knowledge using Google Maps technology, and finally though internationally renowned chefs at our hotels who amplify the culinary experience as we work with Michelin-starred and celebrity chefs across our hotels and resorts.”

tRend talK IHG recently released its 2015 results, detailing the highest room openings since 2009, and as Gauvin unveils the driving factors behind the aggressive

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FaCe to FaCe

expansion plans, he attributes the success of the group’s 11% global profit growth seen in 2015 to high-quality standards.

He explains: “Travel and Tourism is the fifth largest global industry. While the accommodation landscape is diverse, the branded hotels seg-ment is still the fastest growing. This business environment demands solid growth plans.

“Globally, our high quality, fee-based business continues to generate significant operating cash flows following the completion of our major asset disposal programme.”

With the added value of the acquisition of Kimpton Hotels and Restaurants to the IHG family, he states that “by adding Kimpton Hotels and Restaurants to the IHG range, we have accelerated signings across our mainstream and extended stay brands, and been able to strengthen our brand portfolio. We were also able to grow our direct digital revenue by applying effective online distribution management.”

Sourcing BusinessWith an existing portfolio of 78 hotels, totaling 23,300 rooms in the

Middle East, and occupancy rates fluctuating on a regular basis, Gauvin reveals the main source markets for business in the UAE are home-grown travellers, as he explains: “Slightly more than 46% of international travel nights in the Middle East originate from the region itself, with 11% com-ing from North America and Europe.

“Corporate source markets remain strong with the Americas, Europe and increasingly India. Saudi Arabia, the UK and Germany are consistent leisure-based source markets.”

And in order to retain the masses, the key facets of IHG’s 2016-2017 sales and marketing strategy shows the group’s commitment to expansion with no plans of slowing down anytime soon.

As Gauvin says: “Our strategy focusses on three main pillars includ-ing strengthening our preferred brands, growing through targeted hotel distribution, and driving revenue delivery through technology and loyalty. For example, globally, we had a record year for openings and signings for Kimpton Hotels and Restaurants. We have also signed 78,000rooms into the pipeline, including those mentioned for the Middle East region.”

He adds: “In addition, we have enhanced the IHG Rewards Club with the launch of Spire Elite, a new top tier of membership, and enhanced personalised member marketing campaigns, driving registrations up 35% year-on-year.”

upcOMinG OppORtunitiesWith ambitious plans to open 25 hotels amounting to 9,658 rooms over the course of the next three to five years in the Middle East, Gauvin sees the region as “rife with opportunity” for the IHG brands to further expand their Middle East presence.

He predicts: “According to the UNWTO forecast issued at the begin-ning of 2016, 2015 marks the sixth consecutive year of above-average growth, with international arrivals increasing by 4% or more every year. Even with the levels of uncertainty and volatility, the projections for the Middle East remain positive for 2016 between +2% and +5%.”

He continues: “Furthermore, while RevPAR in Saudi Arabiaremained nearly flat, STR Global analysts note significant year-over-year RevPAR increases in the Medina (+34.0%) and Makkah (+14.1%) markets. In ad-dition to such projections, government initiatives such as the Dubai Expo 2020 and the UAE’s Vision 2021 add to the opportunities available to the hospitality industry in the Middle East.”

With clear goals in sight, the avid hotelier explains: “We will continue to

build on our strengths across the Middle East, particularly in the UAE and Saudi Arabia. Our key goal is to ensure that we are the number one choice for our guests, employees and hotel owners in the region, which we deliver by investing in our people, our service and our brands.”

“The objective behind Planet Trekkers is for children to learn

about and explore their travel destination, before, during and

after their holiday through four categories: Natural Discoveries,

Active Pursuits, Local Culture, and New Flavours.

“An example of how this allows them to embrace their

physical location is the InterContinental Planet Trekkers

Children's Menu, which has been specially designed by award-

winning celebrity chef, Theo Randall, and world-renowned

children’s food expert and leading authority on children’s

nutrition, Annabel Karmel MBE. The menu takes children

on aneducational journey by creating food experiences that

help them explore diverse flavours and tastes. A variety of

interesting food options are available, from nutritious classic

favourites to truly international delights that will excite

the junior palate, while reflecting the breadth of countries

InterContinental Hotels and Resorts is located in.”

Yes, the report highlights that brands must know exactly what

resonates with individual members of the community, their

likes and dislikes, what they need and when they need it. This

makes membership meaningful for consumers, by creating

Membership Communities.

To build a successful membership community outside, it is

necessary to build meaningful membership inside. A corporate

culture which builds a meaningful membership mind-set

generates trust in the organisation’s brands. In our case, this

is achieved through a strong focus on training and building a

service culture, which will in turn benefit our guests.

IHG’S PLANEt tREkkERS APP

IN tHE IHG tRENDS REPORt, tHERE IS AN EMPHASIS ON BRANDS BUILDING MEMBERSHIP COMMUNItIES. HOW HAS IHG CAPtURED tHIS AUDIENCE AND WHAt CAN OtHER HOtEL GROUPS DO tO CREAtE tHESE COMMUNItIES?

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the panel

Jacob Lonning, 16

Sergio raya aireS, 15

chadi awadaLLa, 16

Saquib MabadiwaLa, 15

Joan bangera, 18

hari Kava, 20

It has long been understood that teenagers can make or break a family holiday. But what do they want and what can hotels do to meet their demands? In the first of four discussions, Hotel News ME asks a group of Gen Z teenagers to share their tips on how the local family holiday industry can re−focus on the most overlooked VIP

The family holiday is an event that both excites and terrifies in equal measures. But, behind the week of petty fall outs, delayed flights and sunburn, is an industry that is worth $140bn globally and today, more and more hotels are tailoring their facilities to capture an ever greater share of that market.

Tourism is a central pillar to Dubai’s growth and family tourism is a central pillar within that, with DTCM fully focused on family tourism as a core part of Dubai’s 2020 tourism strategy. Detailed in this plan are the holiday homes, theme parks and safaris the organisa-tion believes will best support its ambitions.

Dubai is already popular on the family front, not least among the growing Indian upper middle-class family segment and the thousands of families who visit residents in the emirate every year.

Tourism-related infrastructure and invest-ment in capacity enhancement is gaining momentum in 2016, with the scheduled completion of the Dubai Park and Resorts mega-project in Jebel Ali and a raft of other similar family attractions, from IMG World to new family resorts in prime locations.

According to DTCM: “Dubai will be steadily implementing projects to develop, en-hance and promote the core pillars of Dubai’s destination offering that in turn feed into the agenda to not just attract more volumes but to further the sector’s growing contribution to the emirate’s GDP, and be a source of sustainable competitiveness for future growth.”

Yet there is a disparity between the ambi-tion of the authorities and the current focus of the hotel industry. Most of the hotel industry’s innovation over recent years have been based on the habits and preferences of the millennial traveller, rather than the next youngest age group, Gen Z. This age group travels alone or with friends, is not tradition-ally focused on seeing the great outdoors, but does demand the world’s fastest Internet connection and a mastering of the concept of “non-intrusive hospitality”.

However, when it does come to Gen Z, these rules don’t stick, and while the cruise industry’s Kids’ Club model has been greatly borrowed from, that appears to be where the innovation ends.

That is why Hotel News ME, in part-

nership with Ti’me Hotels, has begun a four-part research exercise into the habits, preferences and behaviours of family travel-lers, through the eyes of the most crucial family member: the teenagers.

Over the coming pages are the results of the first discussion, and they serve as a lesson for everybody in hospitality. While many hotels are looking at their facilities – everything from the dedicated Kids’ Club to the quality of WiFi connections – it seems that families are actually far less wrapped up in modern trap-pings of the hotel offering.

As has always been the case – perhaps more so now as parents see themselves stretched to work longer hours – families want warm hospitality, excellent food, comfortable beds and spacious rooms. They want the things that will help them create quality time.

Contrary to the hypothesis set out by the millennial generation, WiFi connections aren’t at the top of the priority list; iPad controlled curtains are a cool add-on, but not a must-have; and facilities such as water slides or attractions based on local culture, are far more engrossing than BYOD content.


the panel

What is the best family holiday you have ever been on? chadi: As an extended family of about 15, we went to Egypt and there was a huge water slide that you didn’t have to pay extra for and it was within the hotel complex. We could just go on the water slide all the time and because all my cousins were there, as well as my grandmother, it was a really good holiday. Sergio: We went to Oman and they had a water park inside the hotel. Unfortunately we haven’t been back there since but I would like to. Joan: One of the best trips was Sydney because there is lots to do outdoors and lots of nature, which you don’t get here in the UAE. Jacob: In my favourite holiday we stayed in a huge and very clean hotel and the food was great, especially the breakfast. The facilities were really good and there was a great pool and good WiFi, but the thing I liked most was that there were lots of trees and it was very beautiful. And the bed was really comfy! Saquib: The first was in India we stayed in

Photographs by Abhi Shek Photography


the panel

some villas which connect to each other and all have their own pool. It’s in nature so it’s really nice and the beds and food were great. The second was in Times Square, which was a completely different experience, because we were right in the city. But it was a really great holiday because it was so different. Oh and the hotel had great WiFi.

What is the worst family holiday you have ever been on? Sergio: London. The room was really, really, really small. Extremely small. And we were all too close so it was really uncomfortable. There weren’t really any other facilities in the hotel either. chadi: We went to this hotel where the food was awful. Really low quality, and unhygienic. One time I went to get a drink and there was something in it, so I told the staff and they said I had put something in it, which I hadn’t. Then they poured it out and re-filled it in the same glass. Saquib: Ours was Paris. The hotel room was so small we had to get another room so there was space for us all. The service was ok, sometimes they were nice but sometimes they weren’t. We weren’t sure what their problem was! And the breakfast was really limited, only a few choices. hari: The Himalayas. The room was really small and it was so cold because there was no heating and they had no extra blankets to give us. It was really cold!Joan: It was the first hotel we stayed at after we landed in Jordan. We reached the hotel the middle of the night, ready to go to bed. The service however was terrible as we had to wait for an hour before they gave us our rooms. Though the room was spacious, it was pretty grungy. The carpets looked worn-out and the sheets looked old as well. The second would have to be in Sydney, it had been raining all day long and we drove two hours to see the Blue Mountains. Unfortunately because of the rain, there was a thick fog that filled the sky and completely covered mountains. All we saw was white mist.

When your parents are choosing where to go on a family holiday, how much say do you have in the discussion? chadi: Every summer we go to visit family then we will go to a second place just for a short visit. Usually I don’t have much of a say in that, I’m just told around a month before but it’s ok be-

cause I’m happy so long as I have fun.Joan: we usually decide as a family hari: It’s always a family decision. Saquib: Usually I choose because my mother and sisters don’t have a preference and my dad is too busy. So I do some research then show it to my family and ask them where they prefer. Based on the research we then decide, but when I’m doing that I look for good food, fun things to do and comfort and safety. Sergio: We have a discussion about it so it isn’t an individual who decides but we decide as a group. If my mum wants to go somewhere but my dad says no they’ll have a disagreement so then I get to have the final choice out of their preferences. If it doesn’t happen that way we

all decide on a destination – what is the most appropriate, what has the best weather. That’s how we choose. Jacob: We visit our family every year and occasionally we do travel, too. When we go somewhere new my parents choose somewhere they think me and my siblings will enjoy.

Many hotels are now placing a lot of em-phasis on putting new facilities and entertain-ment options in their Kid’s Clubs. Imagine you’re five years younger than you are today, what would you like to see at the Kids’ Club? chadi: Maybe a games console and it has to be free to use because otherwise you have to keep going to your parents for money and eventu-


the panel

ally they’re going to say no to you. Or football facilities. In the last hotel we went to there as a game that took coupons and it’s fine the first time, but after a while your parents are going to stop saying yes. Sergio: A console would be good. One thing I don’t like about those places is that it always smells like feet because you have to take your shoes off when you walk in. Jacob: Maybe a foosball table and I think younger kids should also be separated because little kids are annoying. Saquib: Those areas need to be well supervised because kids can get out of control. I would like to see more surveillance and better first aid to take care of any injuries. Entertainment-wise, perhaps a movie room or computers games. To be frank, I don’t think parents would be opposed to paying for something like this. Atlantis has all these things at its kid’s club and I think they’re doing a good job. Joan: An age limit for entry, a different section for teenagers and younger children as well as multiple similar kinds of gaming stalls so that everyone would have a turn to play.

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the panel

Many hotels are changing how they interact with their guests, so for example now you can check in via mobile from the airport and use your mobile as a key when you ar-rive at the hotel. You can order room service and close the curtains with an iPad. Most of these innovations are based on research on people who are aged 20 – 30 and the hotel room has changed a lot over recent years in response to the perceived demand of this age group. As the age group below that, so how do you want hotels to adapt to your needs and preferences? chadi: Once we were on holiday and we had a room where basically everything was movable with wheels under it so you could move it to how you want it to be. There was a room divider too, so for example of you’re watching the match and the other people in the room want to sleep, you can just pull that across the room and it’s sound proof so they don’t get dis-turbed. And I also like the idea of a microwave in the room, with food downstairs that you can buy to microwave because sometimes you don’t want to have to get changed to open the door to room service or you want to eat it now and not later. Sergio: We stayed in one place and you could open and close a cover on the pool and you could control it from the iPad. That was really cool.Joan: I think it’s important that they don’t forget the traditional hospitality. People some-times want to talk to another human being. It depends on the time of day, if I arrive at 3am and I’m tired and it’s been a long journey, I just want to sleep, but if you’re new to a place you may want to have a conversation with somebody from that country. Jacob: I would like it if there was a system where you could rent films on the in-room TV. If they allow you to rent movies it’ll be a lot more flexible. Or if they worked liked airlines. Also not everybody wakes up when breakfast is being served so maybe you could order all day breakfast to be delivered to you at any time you want, in your room, and it is fresh and there is no time limit. You just have to order the day before.

What is your opinion of Dubai as a family holiday destination? What is good for fami-lies and what needs to be improved?Sergio: It’s really expensive chadi: I think it’s fine but in Europe you can just go out and hang out and have something to eat for €5. Even in Mall of the Emirates

they don’t have benches so you have to go to a café and eat or drink something. There is nowhere to just hang out. hari: There is nowhere to go after 10pm. You have to do something, you can’t just go to a nice place and chill out there with your friends. Joan: The thing is that here everything is about malls and you can’t do anything if you don’t want to go to a mall. In other cities they have places to walk about outside in the fresh air and maybe graffiti streets and then art ex-hibitions. In Dubai, the 3D Street Art thing in JBR is cool but everything else is about malls. Sergio: The shipping containers in Box Park are cool Saquib: A lot of areas are quite remote and difficult for us to get to. Dubai is really nice as a destination but it’s difficult to get around. Dubai is quite small and it would be good to maybe link all the emirates together so people can visit all of them. I think it would attract more people to explore the rest of the country.

Nobody has mentioned the new Dubai Theme Parks. Are you looking forward to those opening? hari: I don’t think the UAE can do theme parks that well. Saquib: Transport is a problem. It’s towards Abu Dhabi, like Expo, and there is no train or bus. The other is near Arabian Ranches and you can’t get there. Wild Wadi is easy to get to. Sergio: For me it depends on how they make it. In Abu Dhabi at Ferrari World there is one roller coaster that is really good but the rest of it is bad. So they need to make it big enough and not too expensive and instead of making it just one ride have more than one roller coaster.Joan: There isn’t much focus on local culture, so it would be good to see things for tourists which are more about the local heritage and history of the country. Perhaps more desert safaris and things like that. On April 27 at 12.30pm Hotel News ME will be hosting the panel discussion “Capturing the Family Market” at the ATM Showcase Theatre. To register to attend, please email [email protected]

Rank these in order of importance during your stay: good food, comfortable bed, Kids’ Club, Internet, pool

What is your family’s preferred type of accomodation?


grouP overviewInterContinental Hotels Group (IHG) is a global organisation with a broad portfolio of hotel brands, including IHG hotels and resorts, Kimpton Hotels and Restaurants, HUALUXE Hotels and Resorts, Crowne Plaza Hotels and Resorts, Hotel Indigo, EVEN Hotels, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge Suites and Candlewood Suites. IHG franchises, leases, manages or owns more than 5,000 hotels and 744,000 guest rooms in nearly 100 countries, with more than 1,300 hotels in its development pipeline.

Hotel Indigo, Business Bay, Dubai

InterContinental Hotels Group Hotel News Me profiles tHe Hotel group’s 2015 acHieveMeNts, future goals aNd its plaNNed Mea pipeliNe

Chain FoCus


Current properties in the region

IHG currently has 78 hotels, totaling 23,300 rooms, across nine

countries in the Middle East region, across five of the company’s brands:

• InterContinental Hotels & Resorts (25 hotels, 8,219 rooms)

• Crowne Plaza Hotels & Resorts (19 hotels, 5,526 rooms)

• Holiday Inn Hotels & Resorts (25 hotels, 5,273 rooms)

• Holiday Inn Express® (4 hotels, 989 rooms)

• Staybridge Suites (3 hotels, 425 rooms)

upComing properties in the region

IHG has 25 hotels (9,658 rooms) in the pipeline, this includes:

• 11 hotels in the UAE (2,990 rooms)

• 7 hotels in Saudi Arabia (4,965 rooms)

• 2 hotels in Kuwait (364 rooms)

• 2 hotels in Oman (550 rooms)

• 2 hotels in Qatar (549 rooms)

• 1 hotel in Bahrain (240 rooms)

7 hotels in Saudi Arabia (4,965 rooms)

11 hotels in the UAE (2,990 rooms)

2 hotels in Kuwait (364 rooms)

2 hotels in Oman (550 rooms)

2 hotels in Qatar (549 rooms)

1 hotel in Bahrain (240 rooms)

upComing properties in the middle east and afriCa

Chain FoCus


5 minutes with...

What were the hotel group’s key achievements and milestones in 2015?Globally, we maintained a strong momentum in 2015, driven by a clear strategy and disciplined execution. We delivered our highest room openings since 2009, our best signings since 2008, 11% underlying profit growth and 19% underlying EPS growth. We have strengthened our brand portfolio, adding Kimpton Hotels and Restaurants into the IHG family and accelerating signings across our mainstream and extended stay brands. In the Middle East, we were impacted by declining oil prices, ending the year up 0.2%, however we achieved significant milestones across the region opening four hotels in 2015:

The 100 key Holiday Inn Tabuk, will be the first hotel to be signed and opened under our MDA with DUR Hospitality Group.

• InterContinental Dubai Marina has150 rooms and is home to Marina Social restaurant – Michelin-starred chef, Jason Atherton’s first in the Middle East.

• Holiday Inn Jeddah Gateway, with 200 rooms, our second property in Jeddah.

• Crowne Plaza Kuwait Thuraya City has210 rooms

What have been the key challenges facing your hotel group and the hospitality sector in general and how have you met these challenges?The current oil prices do impose pressure on the Middle East’s trade and economy, however, the medium to long-term prospects for the hotel industry remain good. Moreover, the strength of our business model gives us the confidence to continue as planned on our Middle East pipeline.

What are the hotel group’s key goals for 2016 and why?We will continue to build on our strengths across the Middle East– particularly in the UAE and Saudi Arabia. Our key goal is to ensure that we are the number one choice for our guests, employees and hotel

owners in the region. We continue to invest in our people, our service and our brands to deliver on this goal.

How is technology dictating the way you run your business and liaise with customers, from bookings and social media to in-room technology?Technology and loyalty play an important part in driving our revenue delivery. Globally, our digital revenue of $4.2bn is up more than $0.4bn year-on-year, ahead of any other channel. 40% of our digital traffic comes from mobile devices, which is an area we continue to focus on. Our winning strategy is underpinned by investment in technology platforms.

TArAS ETTyLvice president of development, MENA region, IHG

Key elements of ihg’s teChnology roadmap inClude:• Digital Content – to connect and engage with guests throughout the guest journey and to broaden the role of the brand• Property Level Capabilities – robust and efficient in-hotel execution to deliver on the brand promise • Data, analytics and CRM – focused on driving personalisation and the latest programmatic marketing capabilities• Flexible and scalable infrastructure – to ensure solid foundations for flexible, agile and integrated technology ecosystems

Chain FoCus

Umm Ramoul, Next to Emirates NBDTel : +971 4 284 3322 / 04 284 3966Email: [email protected] www.gelatotek.com


tHe staff recruitMeNt cHalleNges aNd opportuNities faciNg Hoteliers as tHe iNdustry coNtiNues to grow aNd evolvegeMMa greeNwood iNvestigates

CoveR stoRy


CoveR stoRy

The growth of the Middle East’s ho-tel and hospitality sector over the past decade has been nothing short of phenomenal.

Its portfolio of world-class properties has attracted global admiration, while savvy inves-tors have ploughed funds into hotel assets that on the whole, have delivered strong returns.

The rapid pace of hotel industry develop-ment shows no sign of abating as local and global brands continue to forge ahead with ambitious expansion strategies and capitalise on demand for new types of properties, par-ticularly in the mid-scale and serviced apart-ment sector.

Around 151,454 rooms across 538 ho-tels are currently under contract in the Mid-dle East, according to STR’s February 2016 Pipeline Report, which includes projects in construction, final planning and planning, but not those at the unconfirmed stage.

This represents a 40.7% increase in rooms under contract, compared to the number in February 2014, and a 42.5% year-over-year increase in rooms in construction.

Saudi Arabia reported the most rooms in construction (34,753 rooms in 77 hotels), followed by the UAE (26,957 rooms in 92 hotels). Four other countries each reported more than 3,000 rooms in construction Qa-tar (5,980 rooms in 26 hotels), Egypt (4,538 rooms in 13 hotels) and Morocco (3,619 rooms in 19 hotels).

It goes without saying that this calls for hundreds of thousands of new staff to work at these properties, which is a challenge in itself. But given the Middle East has traditionally sourced talent from outside the region to make up the numbers required to staff its properties, there are new hurdles emerging.

Established source markets for talent include Asia, the Indian Sub-continent and more recently, Africa, but with the hotel industry and economies in each of these respective markets now undergoing a similar boom to the Middle East, hospitality professionals are more inclined to stay at home.

In Asia Pacific, 594,917 rooms across 2,571 hotels are under con-tract, according to STR’s February 2016 Pipeline Report for the region, while 260,546 rooms in 1,041 hotels were under construction for the month.

China reported the most rooms under construction (150,101 rooms in 484 hotels) and the two other countries with more than 20,000 rooms under construction were Indonesia (23,667 rooms in 120 hotels) and India (22,388 rooms in 137 hotels).

Meanwhile, Africa has 62,192 rooms in 321 hotels under contract, says STR.

MaRKets undeR thReat“Traditionally, the Philippines, India, Sri Lanka, Indonesia and Nepal

have been the major source markets for the majority of hotel positions,” confirms MD Warrier, the managing director of Bid Eid Executive Search, based in Sharjah.

“But these markets are gradually drying up due to opportunities aris-ing within these countries such as improved education, social changes and employee expectations and working conditions, while the savings potential from wages earned for jobs overseas has diminished.”

Piers Burton, owner and executive director of Eagles Spearing Con-sulting, Dubai, adds that in India in particular, “as the middle class ex-pands and incomes increase every year, junior staff are no longer seeing the potential to earn more in the GCC than they can at home”.

The days of paying staff the minimum possible wage are therefore over, he says.

“Hotels will need to align themselves with global realities and start paying fair wages,” he argues.

Meanwhile, in the Philippines, new government regulations in terms of the documentation and attestation required to work overseas is add-ing “strain on the market” and pushing up recruitment costs, notes Naim Maadad, CEO of Dubai-based Gates Hospitality.

However, not all industry recruiters believe traditional source markets for talent are drying up.

“But rather the requirements for the pool of talents are changing, as a result of the increasingly unsteady and fast-moving business environ-ment,” argues Marta Nobre, director of HR at Mövenpick Hotel Ibn

Accor Hotels - Saudi Management

Training Program

Ben Bengougam, Vice President of HR EMEA and Koray Genckul, Senior Director of HR Middle East, Africa & Turkey with graduates of Hilton Worldwide's Saudisation programmes


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Battuta Gate Dubai, who adds “flexibility, multi-cultural experience and a positive attitude are what recruiters are now looking for.”

Eddie Ignatius, corporate director of innovation and quality at UAE-based TIME Hotels, says the midmarket hospitality specialist is still “actively recruiting from countries such as India, Nepal, Pakistan, The Philippines, Egypt and Morocco as well as Eastern Europe, The Balkans and Central Asia”.

“In our experience, employees from these regions are well educated, extremely hardworking, totally reliable and have a very positive atti-tude,” he says.

neW OppORtunitiesThe African market has “really opened up” as a source of talent too, says Maadad.

“The hospitality industry in their home countries is still in its infancy and they come to the Middle East to gain experience,” he notes.

“However, they are so eager to get a job here that they exaggerate on their CVs and when quizzed on specifics, the answer usually is not honest.”

Burton says Kenya, Zimbabwe and Nigeria are a good source of “confident and eager-to-learn junior staff”, and Warrier throws Ethiopia into the mix, while new emerging Asian markets for staff include China, Myanmar and Vietnam, he reveals.

But the main drawback to recruiting from these markets is the lack of English communication skills, he says.

Harry Kumra, vice president, talent acquisition at Jumeirah Group, adds that “one of the biggest challenges facing hotels is the recruitment of skilled staff with multi-language skills” and on the flipside, stresses the need for more Chinese-speaking staff given the growth potential of the Republic’s outbound tourism market.

“Having focused on this in recent years, Jumeirah has more than 120 Chinese-language speaking colleagues within the company”, he says.

Meanwhile, Mövenpick is looking to China and Russian-speaking countries for new recruits, because they can “easily fulfil our guest ex-pectations”, says Nobre.

But what may surprise people the most, says Ignatius, is that the Dubai talent market is maturing.

“Our recruitment strategy is heavily concentrated on networking in the local and regional markets as this allows us to conduct a much tighter selection process within our local environment,” he says. “This means that we can move through the recruitment and selection cycle much more efficiently.”

GOinG lOcal?Government programmes designed to get more GCC nationals work-ing in the hospitality industry have had limited success to date, industry experts concur.

“Due to long working hours, compensation, cultural and social barri-ers, many GCC job seekers are not attracted to work in hotel segment,” argues Warrier.

“There is a visible and healthy development is this area, but the vol-ume of manning requirements is so huge that the local work force can-not address these challenges. “

Burton describes the ratio of national staff to expatriate staff as “piti-ful”, because “most nationals still enter government institutions or fam-ily businesses, not the hospitality sectors”.

In KSA where Hilton Worldwide has 38 hotels either trading or under development, the company is working hard to provide local Team Member representation in operational roles across the F&B, engineering and housekeeping departments. As a result, the company is attracting new KSA talent into management and technical roles. These efforts are driven by a series of HR initiatives, including: » Our collaboration with the Saudi Commission for Tourism

and National Heritage resulted in signing a memorandum of understanding with His Royal Highness Prince Sultan Bin Salman to select and recruit future graduates of the Hospitality scholarship programme (#YourJob_YourScholarship) for employment with Hilton Worldwide upon graduation. Throughout 2016 and beyond, we will be welcoming more than 50 male and female graduates of this programme to our Saudi operations.

» Our Mudeer Al Mustaqbal (manager of the future) program aims to develop Saudi Nationals in F&B, front office and housekeeping managerial roles in just two years’ time. In 2015, the programme was run at four hotels in three cities (Makkah, Riyadh and Dhahran) and we saw great results. The programme has admitted its first female candidate, as we aim to create opportunities for female employment in KSA.

» We also support Saudi Youth@Work – the result of a partnership between the King Khalid Foundation (KKF) and the International Youth Foundation (IYF). The programme has proved to be a great success with 275 team members in KSA completing our Passport to Success programme - as well as 23 Hilton Worldwide Team Members being trained as trainers themselves.

» In 2015, Hilton Worldwide participated in one of the largest career fairs in the Kingdom - “TAWTEEN” - in Jeddah. We are also active in attending Chamber of Commerce career days and collaborating with the government funded TAQAT recruitment centre initiative to ensure that we were able to identify and recruit many talented Saudi youths.

» With a series of localisation programmes in place in KSA, nationals are a core part of our workforce. The success of the programmes mean Hilton Worldwide is now exceeding Nitiqat Saudisation quotas, and the company expects to continue similar positive momentum in the coming years with the development of its 28 pipeline properties (as of December 31, 2015).

Case Study 1: Saudisation and Hilton

Koray geNcKul, seNior director, Hr, HiltoN worldwide Middle east aNd africa, turKey


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DUKES Dubai, which opens this year, is busy recruiting and training staff to deliver the ‘Great British’ service for which the brand is renowned. The hotel is looking to ‘traditional’ source markets such as South Asia where candidates are very eager, have good English language skills, are aware of ‘British’ service standards and show plenty of interest in pursuing an overseas career in hospitality. India, home to a number of hotel schools, 700 universities and more than 35,000 colleges” is a good source for talented graduates.

EMERGING MARKETSA number of new source markets have been on our radar for some time including Myanmar and Ukraine. The Burmese are similar to many other South East Asians in that they have a natural flair for service, which is in their culture.

Due to the political and economic uncertainty in their homeland, Ukrainians are very keen to come to Dubai. They make excellent employees, very structured and disciplined, ideal for a British hotel environment. The Balkans is also another area we regard as an upcoming destination with a supply of motivated, educated talent with an eagerness to travel and develop professionally and personally.

Considering that DUKES Dubai will deliver quintessentially British charm and traditional service in terms of supervisory and management trainees, naturally we liaise with the top hotel schools in the United Kingdom and Ireland.

LOcAL REcRuITSWe will be working very hard to attract young Emirati school and college leavers to come and join us. Tourism is one of the three pillars of the UAE economy and we are committed to being recognised as an employer of choice for Emiratis and other Gulf nationals, so that they can discover the industry and carve out a rewarding career in a luxury hotel environment.

TRAINING AND RETAININGWe take care to explain our British theme, personnel development plans and our continuous on-the-job training – we find that this is rewarding for both employee and hotel.

Although we are presently a pre-opening team, I feel that retaining the right people is not an issue if team members know they are valued by the hotel and the brand, and that they were recruited for their unique abilities and passion for the industry. Having great line managers in place is key to achieving this.

Case Study 2: Great British Service -

Dukes Dubai

ricHard Mazeau, director of HuMaN resources, duKes dubai

Your One Stop Shop Coffee Solution

Machines Training MaintenanceCoffee


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Ignatius describes recruiting Emiratis as “challenging”, particularly as a mid-market ho-tel group.

“Salary expectations, long hours and the per-ception that working in a hotel involves serving and cleaning are the main obstacles,” he says.

“Increased awareness about the realities of working in the hotel sector is required to interest Emiratis and other GCC nationals. We should educate and improve perceptions that the hotel sector has many different career paths.”

However, the hotel sector compares poorly to the public sector in terms of pay and holiday entitlement, Ignatius says.

“For example, a national oil company in the UAE rewards Emirati school leavers with start-ing packages of around AED 25,000 per month, while university graduates can expect starting salaries of about AED 45,000 per month.”

Amar Belgat, director of HR and learning and development, AccorHotels Egypt and Sau-di Arabia, agrees that Gulf talent favours public sector institutions or local companies over in-ternational groups, “and the hospitality field is simply not visible enough as an attractive career option for young Saudis or Emiratis”.

“The process of recruiting expat workers in the region can also be challenging, with house-keeping and culinary departments being par-ticularly difficult to fill,” he says.

“However, GCC governments are now draw-ing more awareness to these issues and actively working to increase the participation of citizens in the private hospitality sector. In order to help emphasise their prospects in the industry, Ac-corHotels Middle East has put in place solid learning and development programmes for em-ployees and management trainees.”

In addition to being the only international hotel group in the region with a permanent and dedicated training academy, known Tamheed, AccorHotels was also the first international ho-tel group to develop a special management pro-gramme tailor-made for Saudi nationals, called Saudi Management Training Program (SMTP), designed to encourage them to enter the hos-pitality industry and to nurture their careers within the group’s future management teams.

“The initiative, launched in November 2013, was Saudi Arabia’s first-ever hospitality manage-ment training programme and endorsed by the Saudi Commission for Tourism and Antiqui-ties,” says Belgat.

“The second edition of the 15-month pro-gramme, which opened in March 2016 to 24 students, was expanded to also include Saudi

women.”To date, the SMTP programme has retained

13 of 16 students in management positions within AccorHotels.

“Overall, about 30% of our employees in the country are now Saudis, with the number of Saudi women employees also steadily increas-ing,” Belgat reveals.

pOsitiOns vacantIn terms of the type of staff the industry finds it particularly difficult to source, experienced housekeeping, F&B and kitchen (including spe-ciality chefs) and front office employees top the list, say the experts.

“With the number of new hotels F&B out-lets, malls and FM facilities projected to open in the next four to six years, meeting human capital requirements [in these areas of operation] will pose a challenge,” says Warrier.

Burton adds that finding front office staff is tricky because source markets provide very little in the way of training colleges that specialise in this area.

Nobre says finding sales and marketing exec-utives is tough, because not enough candidates understand the local market, while Ignatius be-lieves the trickiest aspect of recruiting is finding “passionate staff

who are looking to progress their career with-in one hotel company”.

Maadad agrees and says too few employees perceive hospitality as a profession.

“For most in the field, it is a training ground to earn money and send their wages home to their home country, unlike in Europe and other countries where even at the age of 60, a waiter or butler regards his role as a true profession and displays a passion that is evident in his skill set and service levels,” he says.

“As long as the industry is perceived as an in-terim money earning source rather than a pro-fession, it would be a challenge to retain highly skilled talent for long, as they would keep seek-ing greener pastures.”

RetentiOn challenGesIn order to retain staff and reduce the high turn-over levels, the industry must improve training and career progression opportunities, encourag-ing employees to think long-term about their careers, continues Maadad.

Warrier adds: “healthy salaries and benefits, a longevity bonus, incentives, recreation facilities and scope for transfer within the organisation” to the list of measures that would help address

eddie ignatius

michael Kitts

marta nobre

harry Kumra


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retention challenges.Kumra says the Jumeirah Group prides itself on

the quality and effectiveness of the recruitment, induction, training and incentive schemes it has in place, which has led to retention rates much higher than the industry norm.

“One critical factor to retention is the clear provi-sion of career growth opportunities and the commit-ment a company shows to this,” he says. “Jumeirah colleagues are able – and encouraged – to apply for internal positions within months of joining the com-pany and we have a range of examples of colleagues who have started off in one part of the business and currently work in a completely different department. This also applies to providing the opportunity to move overseas with the organisation, with colleagues starting off in Dubai and Abu Dhabi properties, but moving to one of our hotels in London, Frankfurt, China, the Maldives, Kuwait and Turkey.”

the MacRO OutlOOKIn order to keep pace with industry growth and re-cruit and retain quality staff, hoteliers will not only need to step up in-house training, but look to “work more closely with hotel schools, training entities, hir-

ing partners and government bodies”, says Warrier.Chef Michael Kitts, director of culinary arts at

The Emirates Academy of Hospitality Manage-ment in Dubai, says hotel companies have a re-sponsibility to grow the pool of talent for the wider industry – “a belief Jumeirah management has had from the very start”.

“Just two years after the opening of Jumeirah Beach Hotel, plans were put in place to open our own education facility, and two years later, the Emirates Academy of Hospitality Management ac-cepted its first intake of students,” he notes.

“Today the Academy has more than 330 stu-dents comprising more than 64 nationalities, and a number have gone on to work in our hotels, but crucially, a large proportion have entered the hos-pitality industry in other companies – often com-petitors of Jumeirah. In fact, the membership of the academy’s Industry Advisory Board includes senior figures of a number of our closest competi-tors. The Emirates Academy of Hospitality Man-agement is not an education system for Jumeirah – it’s an education system for the entire hospitality and tourism industry.”

“as long as the industry is perceived as an interim money

earning source rather than a pro-

Fession, it Would be a challenge to

retain highly sKilled talent For long, as

they Would Keep seeKing greener

pastures.” - naim maadad


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Short-term solutionsWhile the growth of the Mid-

dle East hotel industry calls for a re-think in mid- and long-term staff recruitment

and retention strategies, in the short-term, weakened market conditions have given rise to different talent management challenges, says Piers Burton, owner and executive director, Eagles Spearing Consulting, Dubai.“I believe that the current staff crisis will de-cline as hotels are forced to lower their staff quotas due to declining occupancies and REVPARs,” he says. “With staff being made redundant there will be an increase of staff numbers in the markets, some of whom will be fully trained and ready to step into new properties as they come on-line. For new properties this will be a consider-able benefit.”He adds: “If a pool of outsourced staff could be called on to service the peaks in business, with wages only paid for those periods, that would significantly reduce the employment costs incurred through maintaining a full team of staff at all times.”Such outsourcing of staff to hotels in the GCC isn’t a new concept, he notes. “A number of companies already provide staff to several of the leading hotels in the region, though there is room for development in this facet of the industry.”But there are barriers to outsourcing staff that need to be overcome, he notes.“If part-time visas were to be introduced I be-lieve that a considerable number of expatriates would make themselves available for ’second job’ income as in other developed markets,” explains Burton. “Events and banqueting could have access to staff who only want to

work in the evenings after they have concluded their day jobs. These staff could readily join up with staffing agencies and be available as and when required.”MD Warrier agrees that contractors help re-duce costs “to a certain extent”, but notes the quality of staff is sometimes compromised when hotels outsource, unless they have re-ceived adequate training.“Identifying suitably-qualified and experienced hiring partners is essential because they under-stand how the industry operates, its require-ments, dynamics and complexity,” he adds.Mövenpick’s Nobre says she avoids relying on

third parties to source candidates.“We are mostly focused on direct recruitment through social media platforms, which helps us to screen the right individuals and is also cost effective,” she adds.Technology is also changing the way TIME Hotels recruits too“We can contact candidates directly, through social media platforms, which saves direct recruitment costs including agency commis-sion plus travel expenses, and of course, man-agement time away from the hotel,” says the firm’s corporate director of innovation and quality, Ignatius.

POSITIVES » Cost efficiencies for hotels; no recruitment costs and outsourced » staff already have an understanding of the roles they are assigned to through

foundation training received through their employer. » Staff are available on tap; no delays between their being recruited » and joining the hotel company. » Visa and gratuity costs are not incurred by the hotels » The disciplinary process is removed. If outsourced staff » members are deemed unsuitable by a hotel, they can simply be rejected and returned

to the staff agency.

NEGATIVES » Staff will not have an advanced knowledge of a hotel layout, » menu or procedures, which will lead to inconstancy in some aspects of customer

service » Outsourced staff are unlikely to understand a hotel's culture if » they are only used on an occasional basis, so unsettling full-time team members. » Good part-time staff are unlikely to be available unless they are » provided to a particular hotel on a permanent basis.

the pros and cons of outsourcing recruitmentby piers burtoN, owNer aNd executive director, eagles speariNg coNsultiNg, dubai


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thE mAn in thE middlE

As the franchise model looks set for growth in the middle east and Africa, Bani haddad introduces the region’s first third-party hotel management company, Aleph Hospitality. Crystal Chesters reports

While franchising is a prevalent business model in the Mid-dle East’s F&B scene, the ho-

tel industry has lagged behind, with just a handful of the region’s branded inven-tory operated under franchise agreements. Companies such as Abjar Hotels Inter-national and R Hotels operate their own franchised assets, however until now, the Middle East has lacked third-party man-agement companies such as US-based In-terstate Hotels and Resorts or UK-based Kew Green Hotels, which operate assets on behalf of hotel owners under franchise agreements. That said, Bani Haddad, man-aging director of Aleph Hospitality, the region’s first third-party management com-pany, believes this is about to change.

“We are seeing this shift from [the Mid-dle East] being purely a managed environ-ment, to more and more franchised. Pre-viously there was no company like Aleph

Hospitality set up to do this; nobody was giving the comfort either to the brand owners or the hotel owners, and the few that have [operated franchises] are specific to one brand,” he says.

Prior to launching Aleph Hospitality, Haddad was regional vice president Mid-

dle East and Africa for Wyndham Hotel Group, where he set up the company’s Middle East and Africa office and helped grow the regional portfolio from 12 fran-chised hotels to 49 operational properties, with another 20 in the pipeline. Since Wyndham franchises more than 90% of its global portfolio, Haddad spotted a gap in the market for a third-party management, or ‘white label’ company in the region, which could efficiently operate franchised brands.

“We were often looking for companies like Aleph Hospitality to manage either in the Middle East or Africa and we were call-ing on companies from Europe because we didn’t want to manage a 90-key property in a tertiary city in Saudi Arabia or Lagos or Addis Ababa; it’s not worth it financially for a company as big as Wyndham, but we still wanted to have our brand out there.”

Aleph Hospitality, which launched qui-

“We are seeing this shiFt From [the middle

east] being purely a managed environment,

to more and more Franchised. previously there Was no company liKe aleph hospitality

set up to do this” -bani haddad

Bani Haddad


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etly in September 2015, will operate assets on behalf of hotel owners under franchise agreements from 3- and 4-star international brands. Selecting the brand, Aleph Hospi-tality is completely impartial, and examines location, room number, and specifications of the property and then tries to match this up with the most suitable option. High-lighting Aleph Hospitality’s USPs, Haddad says: “It’s the strength of our network, the quality of the relationships we have with owners, our market knowledge. In every country we go to we have a really in-depth market knowledge, and we have the know-how to talk to owners in less developed markets – where building a hotel has not always been part of their DNA – to get them on to the same wavelength as brand owners.”

The company has already signed its first property in Addis Ababa, Ethiopia, a 116-key new-build Best Western owned

by Noah Real Estate PLC, which is sched-uled to open in June. Aleph Hospitality has what Haddad calls “a very good relation-ship” with Noah Real Estate, and says he is “looking at a variety of opportunities with this owner, not only in Addis Ababa, but in other parts of Ethiopia”.

Explaining the decision to start out in Ethiopia, Haddad says: “We didn’t look at the map and say ‘we need to be in this country’ – we came to the market with the concept and started talking to people. Ethi-opia is one of the fastest growing markets in Africa with one of the fastest growing economies. It’s the second largest country in Africa after Nigeria and has the largest airline in the continent, Ethiopian airlines. Politically it’s very stable and their GDP has been growing but there is a lack of ho-tel brands.”

Aleph Hospitality is already in discus-sions for another three to four signings and

Haddad would like to have these confirmed by September 2016, which will mark a year of operations for the company.

Outside of Ethiopia, Haddad has his sights set on more East African properties, with Kenya, Uganda and Nairobi being considered, and interest coming in from Nigeria and Liberia.

“We’re very close to signing new prop-erties, mostly in East Africa for the time being; it seems that the immediate op-portunities are from Africa rather than the Middle East,” he comments.

That said, the Middle East is of key inter-est to Aleph Hospitality, and already there are some discussions underway in Saudi Arabia, with the UAE cited as another big opportunity.

“The Gulf is a bit more mature in terms of hotel development, so most of the brand owners require a different approach to get their business, but we’re now in a position

Nadir Celiloglu - Vice President Technical Services, Aleph Hospitality

Roz Money - Vice President Marketing & PR, Aleph Hospitality

Steve Pratt - Vice President Operations Support & Training, Aleph Hospitality


inteRview

to start talking to a few owners in the Mid-dle East,” comments Haddad.

For brand owners, working with a third-party management company allows them to grow their portfolios faster and with a wider geographical reach, including in sec-ondary and tertiary markets where they perhaps don’t want to make the full invest-ment of setting up a management opera-tion. However, hoteliers want to work with a capable hospitality company to ensure their brand is properly represented.

“They can take the royalty fee and rest assured that the property would be man-aged as per their standards,” says Haddad, adding that Aleph also provides a big op-portunity for companies looking to intro-duce a brand that is not yet in the region. He has already been approached by a major hotelier regarding this type of opportunity, he reveals. And because the team at Aleph is from a brand ownership background,

they understand the importance of the asset owner’s engagement with the brand owner, in terms of participating in pro-grammes and training, etcetera.”

Aleph Hospitality’s small team compris-es Turkish national Nadir Celiloglu, vice president technical services, who previous-ly held senior technical services roles with Hilton Worldwide, The Rezidor Group and InterContinental Hotels Group, to name a few. Roz Money, vice president marketing and PR most recently worked as director of marketing and loyalty EMEA for Wynd-ham Hotel group, where she won several awards, and Steve Pratt as vice president, operations support and training. Pratt was director of learning and development EMEA for Wyndham Hotel Group, re-sponsible for pre- and post-opening train-ing across a portfolio of over 400 hotels.

From an asset owner’s perspective, the benefit of working with Aleph Hospitality

is that they can be assured that they are still dealing with a professional hotel company, but one that is more agile and proactive, Haddad explains.

“We’re giving [asset owners] the op-portunity to sit with us and discuss more flexible terms, so we’re not coming to them with a 90-page management agreement. The commercial terms are much more flex-ible because we don’t have the overheads that a brand owner has.

“We also have a really in-depth knowl-edge of the local market and a willingness to go to certain places and operate prop-erties that a brand owner wouldn’t do, whether that’s a secondary or tertiary city or a relatively small property — we’re hap-py to operate properties of 80 keys or less.”

And so there are clear benefits for both parties; Aleph Hospitality acts as an in-terface between the brand owner and as-set owner, negotiating the right terms and

smoothing over any conflicts. “They see us as more flexible, more understanding, we translate the language of the asset owner to the brand owner and vice versa, so we understand both parties very well and we can avoid the clashes that usually happen.”

Of course, asset owners considering working with a third party have to take costs into account, and Haddad admits “it defeats the purpose” if they have to pay more for the service. “That’s where our flexibility comes in. We help the as-set owner negotiate the best franchise fees from the brand owner and based on this we adapt our free structure to make sure they wouldn’t pay more,” he says.

And for owners who have a multi-prop-erty inventory — even if they are franchis-ing under different brands — Aleph Hos-pitality can offer economies of scale.

“Even if one property is a Ramada, one a Sheraton and another a Best Western, we’d be able to cluster functions, whether that’s accounting, finance or revenue manage-ment. We would allow the owner to benefit

from these economies of scale, whereas if they had to go through different operators for these properties, they wouldn’t benefit.”

Given the amount of interest Aleph Hos-pitality has received, even before doing any promotional activity, Haddad is very opti-mistic about the future of his new venture, saying: “At the pace we’re growing I have

a good sense of how things will go. I have had a lot of discussions and with my expe-rience I know what’s real and what’s not.

“We only started in September 2015, and now we’re preparing to open our first property and are just about to close an-other few management agreements. I’m extremely surprised at the interest we’ve received; it’s just word-of-mouth, so I’m looking forward to the next level of pro-moting our services.”

And while Haddad is hesitant to talk numbers at such an early stage, he believes that if the interest he has received so far is anything to go by, the company could have up to 50 properties confirmed in the next five years.

“I think the future is bright for us. In the first year we could secure these first three or four management agreements, then prob-ably in the next three to five years we’d be looking at maybe 30 to 50 properties. We are well positioned to become the largest white label operator in the Middle East and Africa – I’m very excited!”

“that’s Where our Flexibility comes in. We help the asset oWner

negotiate the best Franchise Fees From

the brand oWner and based on this We adapt our Free structure to

maKe sure they Wouldn’t pay more,”

- bani haddad


pRe-show Roundup

ATM 2016

This year’s Arabian Travel Market (ATM) marks the 23rd edition of the B2B travel show.

Following on from last year’s successful focus on family travel, this year’s trade show will centre around the hot topic of the growth of the mid-market travel segment – a key area of opportunity for Middle East destinations looking to diversify their source markets and attract a larger volume of visitors, including families. The show is also set to welcome an additional exhibition hall and will host more than 2,800 exhibiting companies represent-ing over 86 countries with 113 new exhibi-tors and over 64 country pavilions.

Discussing the 2016 spot-light theme of mid-market travel, exhibition manager, Ara-bian Travel Market Nadege Noblet-Segers says: “As tourism infrastructure across the Gulf and beyond continues on its high pro-file development path, our spotlight theme for 2016 has turned to mid-market tourism.

This has been identified as both an under-developed and potential growth area for the region, driven by demand from the growing middle class markets such as China, India and Africa combined with budget genera-tion-Y travellers and young families.”

A key point of discussion at the show will be the number of new hotel rooms enter-ing the market, including the share that is planned to be in the 3-and-4-star bracket in line with January’s Pipeline Report from STR highlighting the 538 hotels under contract in the Middle East and 321 hotels totaling 62,194 rooms under contract in Africa. With Makkah, Saudi Arabia, report-ing the largest number of rooms under con-struction with 21,068 rooms in 13 hotels. Three other markets reported more than 5,000 rooms under construction: Dubai, United Arab Emirates with 19,846 rooms in 63 hotels; Riyadh, Saudi Arabia with 6,738 rooms in 30 hotels; and Doha, Qatar with 5,980 rooms in 26 hotels. Dubai, for in-

WHEN25-28 April 2016

WHEREDubai World Trade Centre

KEY fEATuRES » Speed Networking taking place in

Hall 8 on 25 April and 28 April » Wellness and Spa Lounge, new for

2016 giving international suppliers an exclusive platform to network, taking place in Hall 1, on 26 and 27 April

» Travel Tech Show will showcase the latest technologies from GDS to tour operator systems from consumer review sites to travel tech trends

the event

This year’s Arabian Travel Market is set to be the largest yet, with an extra hall added and a spotlight theme on mid-market travel, Hotel News ME hears from the hoteliers set to exhibit whilst taking a look at the show’s new features


pRe-show Roundup

Following the announcement of the Tourism Vision 2020 which aims to double the number of annual visitors to 20 million in 2020 and triple the economic contribution of the tourism sector by that time, there was a huge need to diversify the accommodation offering across the Emirate to lodge this increase in visitors. The Expo 2020 win will be a key factor driving visitor numbers up and in response the Government announced an incentive for developers and hotel companies to bring forward their construction

Mid-market milestones

timelines, creating more mid-range hotel rooms in Dubai more quickly. Dubai’s positioning in the global hospitality sector was founded upon its luxurious hotels and resorts and there was concern that and encouraging the mid-market sector would undo what the Emirate has achieved. However, many experts see the mid-scale hotel sector holding the greatest growth potential, which we have pioneered with our properties. Most notably JA Jebel Ali Beach Hotel, located in the JA Jebel Ali Golf Resort, followed by JA Oasis Beach Tower, serviced hotel apartments located on ‘The Walk’ promenade, in Dubai Marina and most recently the addition of JA Ocean View Hotel, a 4-star hotel located also located in the popular JBR area. Wholesome family accommodation, combined with the convenience of being located on a beachfront and a short distance from shopping malls and other family entertainment venues, will always drive demand. The rise of savvy travellers to the Emirate will ensure the growth and quality of the industry, mid-market and budget hotels are not going to challenge the five-star properties, the objective is not taking market share away simply offering an increased offering to inbound tourists.

David Thomson, COO JA Resorts Hotels gives his thoughts on this year’s spot-light theme

stance currently has a total hotel key count of approximately 94,000 and this figure is set to rise to between 140,000 and 160,000 keys by 2020 with around 20% set to target the mid-market hotel sector according to a recent Knight Frank report.

Midmarket focused seminars at the show will include the opening session: ‘Dubai of the Future’ taking place on 25 April from 13:00 - 14:30 on the new ATM Global Stage, and ‘The mid-market strategies’ session, tak-ing place on 26 April from 13:15 - 14:15, also on the ATM Global Stage, is designed specifically to identify who the midmarket traveller is, where they come from and what they want.

Other new features at this year’s ATM will include the Wellness and Spa Lounge, a dedicated space for 25 exhibitors designed to connect Middle East wellness and spa buyers with international suppliers in a series of exclusive pre-scheduled appoint-ments between 26 and 27 April. There will also be a series of seminars taking place in the Showcase Theatre with three sessions organised by BNC Publishing. These are: April 26, 10.30 Under pressure – boost-ing business in trying times by Rupprecht Queitsch; April 27 at 12 noon Capturing the Family Market panel featuring TIME Hotels, JA Resorts and Hotels and Elegant Resorts; and April 27 at 14.15 The Guest Experience Index panel featuring Trip Advi-sor, Colliers and Olery. And with more of a focus on networking, ATM 2016 is set to feature the ATM Bloggers' Speed Network-ing – a networking event for up to 40 travel bloggers to take part in mini-meetings with exhibitors to explore ways to work together.


pRe-show Roundup

What can we expect to see from Hilton Worldwide at ATM 2016? Arabian Travel Market gains global attention and provides an ex-cellent platform for us to share updates on our regional portfolio and hospitality offering. We have exciting news in the pipeline and we encourage travel enthusiasts to stay tuned during ATM 2016 for our latest updates.

The Travel Tech Theatre at ATM will be focusing on customer engagement opportunities with the online travel market set to double in value over the next two years. How are you planning on engaging new customers via the online travel market? Ensuring we remain a global trailblazer in our approach to pro-vide outstanding hospitality, in such an increasingly competi-tive market, is one of our most chief priorities. Today’s travellers expect increasingly convenient and modern experiences from hospitality providers - from searching and booking a hotel, to checking in and out. Technologically advanced hotel systems are essential in order to cater to this demand, which is only set to grow in today’s ‘always mobile’ world we live in.

Two recent initiatives, launched solely to make our guests’ lives easier, is our digital key and global ‘Stop Clicking Around’ campaign. Our Digital Key gives HHonors members the op-tion to use their phones in place of a room key to bypass the hotel check-in counter and access their guestroom by using the HHonors app. The ‘Stop Clicking Around’ campaign - the largest campaign we’ve ever launched in our 97-year history - educates travellers on the benefits they receive when booking directly with Hilton, and of being an HHonors member; one being the ability to check-in and choose your own room from a digital floor plan.

Rudi JageRsbacheRpresident, Middle east and africa at hilton Worldwide

Mid-market is the running theme at this year’s ATM, how do you cater to this market, and what potential do you see in the mid-market sector? Over the past two years, we have placed a significant focus on growing our mid-market offering in the region in response to the ever-changing demands of travellers; namely the increasing number of guests eager to experience the world-class destina-tions in this region at an affordable price. As such, we have con-tinued to define our indisputable commitment to catering to the market’s evolving needs.

In the last quarter of 2015, we opened three Hilton Garden Inn properties in Dubai, including Hilton Garden Inn Dubai Mall of the Emirates; the second largest Garden Inn in the world. These properties are joined by two Hilton Garden Inn properties in Saudi Arabia, and the recently announced Hilton Garden Inn Muscat - Al Khuwair, which is expected to open in early 2019.

With a positive response to our regional mid-market offering, in April 2015, we announced the arrival of Hampton by Hilton in the Middle East, with the largest property for the brand any-where in the world, Hampton by Hilton Dubai Al Qusais (420 guestrooms). The property is one of six mid-market hotel pro-jects agreed in 2014/15 with the wasl Asset Management Group, led by H.E. Hesham Al Qassim.

Further afield, our mid-market footprint is growing outside of the UAE with new agreements for Hilton Garden Inn hotels in Al Khobar, Yanbu and Al Jubail (KSA) – and Hampton by Hil-ton in Riyadh taking our mid-market pipeline in KSA to eight hotels. We are also in advanced negotiations for further Hilton Garden Inn properties in the UAE, which will join Hilton Gar-den Inn Tanger, which recently opened its doors.

Millennium and Copthorne’s mid-market offerings Francois Kassab, COO Millennium and Copthorne on ATM 2016

We have significant expansion plans for 2016, with a pipeline of new openings across the region, including the introduction of new brands and at ATM we will be showcasing our focus on Saudi Arabia with up to 20 high profile properties set to

open within the next five years. We will also be highlighting the opening of our 5-star Bab Al Qasr in Abu Dhabi in 2016 which will be part of the groups new luxury collection, Biltmore. On the spot-light theme of mid-market travel, the undersupply of budget and midscale brands

in the sector has led to the development of new innovative mid-market brands including our Studio M as well as our apartment concept and Millennium Executive Apartments, which all cater towards the next generation of traveller.


inteRview

It’s not often that you hear about a 31-year-old self-made CEO running the show, but Nehme Imad Darwiche is

a stark exception to the rule. Through vari-ous leadership roles within the hospitality industry he has earned his title with more than a decade worth of industry experience under his belt.

Having worked for some of the leading hospitality brands in the region including Starwood, Anantara and Rotana he now spearheads the team at Jannah Hotels and Resorts, aiding the steady paced expansion

Jannah: An interpretation of paradise

CEO of Jannah Hotels and Resorts, Nehme Imad Darwiche tells Hotel News ME why the core of his business strategy is formed around the traditions of Bedouin hospitality and the importance of cultural hospitality in an overcrowded market

of the brand in the region. With two existing properties in Dubai

and two in Abu Dhabi, Jannah hotels and Resorts recently unveiled plans to expand with an additional property in Dubai Creek scheduled to open in 2018.

You climbed the career from F&B manager to learning about real Bedouin hospitality at Qasar Al Sarab, how did these roles place you in good stead for your current position? I have held several leadership roles with

local and international management com-panies, and my best lessons in hospitality came from the noble Bedouins of the Liwa Desert. I am lucky enough to have had the pleasure of meeting the elders of a re-nowned tribe called Manasi. It was through them that I discovered a new approach to hospitality. They would put the food, which they hardly had enough of, in front of the guest and let them eat comfortably. Only after the guests are satisfied would they then begin to eat. When I saw this type of hospitality, which was essentially meeting


inteRview

the needs of your guests before your own, I decided to become an ambassador of the noble Bedouin culture, which is now at the soul of Jannah Hotels and Resorts.

What is the latest on Jannah’s regional footprint and pipeline?We have just recently broken ground on our seventh hotel, Jannah Creek Dubai where we on making the reception check-in queue a thing of the past. Essentially, travellers ar-riving at the hotel will be greeted by one of Jannah's renowned Karim – the guest's very own personal genie – who will carry out the check-in on a tablet device as he shows them to their room.

We will soon be launching a new budget brand called BedoInn, aimed at the millen-nial market. The name is a play on Bedouin hospitality, which I consider core to all of our hotels’ service values. The budget travel brand will provide a modern and accessible traveller experience.

There are also a few more projects in the pipeline across the UAE which we will an-nounce in due course.

Where are your main source markets for business and why? Jannah caters to individual guests, frequent business travellers, and small corporate and executive meetings spanning a wide range

of industries and organisations. In addition, we are the place to stay for local families as well as leisure travellers from the GCC visiting Abu Dhabi.

Our guests are mid- to upper-income level travellers who expect a full spectrum of personalised services tailored to individual needs and the convenience of staying in a lodging product designed to reflect the feel-ing of home.

What factors do you expect will drive revenue, demand and occupancies to the properties over the next 12 months? Halal tourism is beginning to gain traction and hoteliers are now only beginning to recognise this segment as a lucrative market. As one of the first hotel groups to intro-duce a halal tourism-friendly environment, we are confident that Jannah Hotels and Resorts will help put Abu Dhabi in the global spotlight as the leading halal travel destination in the region.

Also, an in-depth study of the Abu Dhabi market identified a continuing lack of apartments in the capital, putting upward pressure on rental prices and limiting op-tions for residents and visitors. Following this, we launched 110 serviced studio apart-ments onto Abu Dhabi’s undersupplied property market.

What are your top priorities in your role and for the year ahead? Stability. The defining factor of a successful business is its ability to withstand tempo-rary problems – whether it is in relation to fluctuation in occupancy, the company’s operational needs or even the number of employees.

Even when I look for properties for poten-tial future projects, I check if that location will offer a long-term return on investment. It is important to me that my business will provide a sustainable boost to the local economy and community through jobs, tourism and inward investment. I am equally committed to ensuring that all of our prop-erties and initiatives are as environmentally friendly as possible. Of course, it is only natural that I am also constantly looking at expanding Jannah Hotels and Resorts. But my focus is on developing this Abu Dhabi-based brand to such a level that it becomes known and preferred on a global scale.

Jannah Creek Dubai Hotel

Exterior


inteRview

Jannah Burj Al Sarab room

What are the key facets of your 2016-2017 sales and marketing strategy? Flexibility plays a major role in our sales and marketing strategy. Linked with the operations team, flexibility gives Jannah the ability to introduce new products, adjust capacity rapidly, and customise products. Being adaptable to situations helps our brand and properties efficiently deal with the turbulent environment that the hospi-tality industry is prone to.

Jannah talents are the greatest believers in social media and we engage on all our social media handles including Periscope on a daily basis. According to in-house protocol, the brand ambassador of each hotel needs to work on the social media handles once a day. Through this exercise, we echo the brand message to a bigger audience.

What opportunities are there for the Jannah brand to expand its Middle East presence going forward? When I first launched Jannah, I identified a market opportunity in luxury serviced apartments. There were a handful of busi-nesses that offered these services at the time. Instead of beating the competition,

we changed the rules of the game and went ahead by offering a whole new design of service. We created urban resorts embedded in an apartment hotel complex and comple-mented the suites inspired by luxurious hotels with the unique Karim services.

It has been three years since the launch of Jannah Eastern Mangroves Suites and we continue to be leaders in this sector. The secret is in updating yourself with the latest trends in the market, understanding your target sector and then catering to their needs.

Our vision is to tap into the international market, and to expand halal tourism around the globe. As a brand that was born and inspired in Abu Dhabi, the objectives of the

country and the Jannah brand complement each other’s growth. Abu Dhabi is already on track to deliver international marketing initiatives with leading halal travel partners and is poised to become the regional hub for this lucrative halal travel sector. We are proud to be one of the first to cater to this niche segment and to have halal-friendly services as an underlying principle of Jan-nah as a brand.

What is your long term growth plan for Jannah in the region? Having worked with great management companies, I’ve learnt that preparation is the first step before identifying your target market. So when I work on expanding Jannah Hotels and Resorts, I am not driven by greed - instead I am led by my love and passion for the industry.

As Jannah Hotels and Resorts is owned by corporate executives, our growth has been steady since the launch of Jannah Eastern Mangroves Suites in 2013, with milestones such as our 5-star Jannah Burj Al Sarab which opened in 2015, and our up-coming hotel in a premium area in Dubai for 2018.

“We Will soon be launch-ing a neW budget brand called bedoinn, aimed at

the millennial marKet. the name is a play on bedouin hospitality,

Which i consider core to all oF our hotels’

service values”


Meet the expeRt

How to be a hospitality entrepreneur

If there were a handbook on how be an entrepreneur, I would be first in line to collect my copy. More so, if there were a guide on how to be a hospitality entre-

preneur, well then you’d have the goose that laid the golden egg, but unfortunately no such hand-book, or golden goose exists, so it is down to us mere mortals to find our way and create our own guide into the lucrative business of hospitality.

It’s no secret that the hospitality industry is one with long hours, and so you’ll end up either loving it and lasting in it, or hating it and end up bailing out – there is no middle ground in this line of work.

A person doesn’t agree to work 16 to 17 hours a day, take on double shifts, suck up only 1% tips and suffer at the wrath of upset customers to then go home and feel just ‘OK’ about it. This industry knows how to rile you, upset you, excite you, but one thing it does not do is just make you feel OK.

So knowing all of these things, why do we persist on fulfilling careers in the hospitality industry? The answer is passion. This industry does not demand a formal education or certifica-tions. After all, it is the basic ability to look after and care for strangers. A formal education in hospitality certainly builds the foundation for understanding the industry, and I was fortunate to have taken full advantage of all the courses available to me.But most importantly in the endeavor of becoming a hospitality entrepreneur it is the direct immersion into the industry with internships, master classes and a lot of travel that you learn about the culture of this business.

Aditya Rajaram, managing director, Radar DWC LLC gives his insights on how to excel as a hospitality entrepreneur

My Key lessOns fOR beinG a hOspitality entRepReneuR aRe…1) BE A ruThlESS NETWorKErNever discount meeting or having a discussion with someone because of their title or relevance to your industry. You can learn lessons in the most unique ways.

2) AlWAYS BE PrEPArED To lEArNRead up on companies, success stories, case stud-ies. It has always given me a leg up on meeting my mentors or industry experts.

3) uNDEr ProMISE, ovEr DElIvErThis is obvious but is often forgotten. I have also worked hard to prepare for the worst-case scenario but made every effort to ensure the best-case scenario.

4) TruST BuT vErIFY Sometimes I am at fault for being over-control-ling. But with hospitality you need to set in place robust oversight while ensuring the people around you are empowered to make the right decisions.

5) MAINTAIN ThE STrICTEST lEvEl oF ProFESSIoNAlISM Always follow up on emails, calls and general correspondence in time and professionally. Most importantly never forget what it is like to work for someone else or look down on it. Being an entrepreneur is very risky and at any time it could all go pear shaped and leave you needing a steady job. You want to make sure that people you reach out too will still vouch for you and help you out.

“in the endeavor of becoming a hospitality entrepreneur it is the

direct immersion into the industry with intern-

ships, master classes and a lot of travel that you learn about the culture

of this business” - aditya rajaram

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Meet the expeRt

Pilgrim central

The two holy cities of Saudi Arabia, Mecca and Madinah, have drawn most tourism activities in the country with Islamic faith now

instilled among 1.6 billion of the world’s population. The holy pilgrimage, believed to be a necessary act of faith, has encouraged millions of believers to make their way to the holy desti-nation in most cases more than one time.

With the tourism and hospitality sector ruled by pious and consistent tourists, the industry has been predominantly part of the country’s GDP for quite a long time.

The Saudi Commission for Tourism and Antiquities (SCTA) projected tourism to contribute as high as 5.4% to the non-oil GDP in 2015 and this is expected to increase to 5.7% by 2020.

Another announcement by the Human Resources Development Fund (HRDF) has pre-dicted the Kingdom’s tourism sector to create 400,000 jobs in the next five years.

In my opinion, apart from oil (which has had its fair share of fluctuations in the last two years), tourism could be a great axis for the Saudi economy. Religious tourism of Saudi Arabia has a regularity that other destinations don’t posses. This creates the opportune climate for investors who don’t have to worry about the wavering interest of the tourist but could almost definitively see them grow organically.

With recent budget cuts made due to the oil slump, Saudi Arabia’s decisions to stick to major infrastructure projects acts as a major boon for the tourism sector. Apart from the right hotels, infrastructure seems to be key to creating a hospitable environment.

The Kingdom welcomes millions of pilgrims every year, and the number only seems to be increasing. Experts say that number of visitors to Mecca and Madinah are expected to reach 17 mil-lion by 2025. Mecca, alone, attracts over 90% of the total number of visitors visiting Saudi Arabia.

Lorraine Bangera, editor of Construction Business News ME, analyses why the holy cities in Saudi Arabia are the perfect investment for hospitality firms

According to a recent report by TopHotel-Projects, Mecca is leading hotel development in Saudi Arabia with over 24,133 rooms currently under construction. The report reveals that the number of rooms makes Mecca the second top city in the Middle East and North Africa re-gion, with the first being Dubai in UAE which has around 43,714 rooms in the pipeline.

Mecca poses as the heart of the Islamic world which has been welcoming pilgrims for hundreds of years. Tourists have the opportu-nity to visit not just the Holy Mosque but the Mountain of Noor, the Mountain of Thour, the Mountain of Mercy, traditional markets, the Museum of the Two Holy Mosques, and much more.

The Holy Mosque of Mecca in itself is the major attraction, and has undergone many renovations throughout history with one of major being the current King Abdulla bin Abdulaziz expansion project.

With these number increasing by the year, there has been a need for more hotels across the cities. Most experts admit that though recently furnished apartments have been becoming popular, hotels still remain the most preferred.

The hospitality sector of the Kingdom acts as a pillar and reflects the strength of the national economy, which is in line of the government’s continued efforts to diversify and reduce dependence on oil. It would surely be a good investment now and in the upcoming years.

A crowd of pilgrims circumabulate (tawaf) Kaaba on July 21, 2012 in

Mecca, Saudi Arabia. Pilgrims circumambulate the Kaaba seven

times in counterclockwise direction

Book your stand today at arabiantravelmarket.com

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25-28 April 2016 Dubai

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supplieR FoCus

The SuPPlieRS

Jorge Damasceno, Chief operating offiCer, bubble

laundry

John Bannister, international SaleS

direCtor, Middle eaSt, allianCe laundry

SySteMS

sreeJith narenDran, prinCipal ConSultant, Magnarab equipMent

trading

this month Hotel News Me hears about the latest tech-innovations shaping the ways

laundry is processed and why outsourcing is now a trend here to stay


supplieR FoCus

whAt ARE somE oF thE lAtEst tREnds bEing

sEEn within lAUndRy AcRoss thE hospitAlity

indUstRy?

Bannister: A recent trend is reducing energy and water consumption in laundry room opera-tion. We are focused on continuing to invent new ways to reduce our customer’s bottom line while also minimising our impact on the envi-ronment. Our newer washers have programma-ble controls that regulate washer cycle times and temperatures, which directly impact water and energy usage. Our state-of-the-art controls offer as many as 30 water levels to choose from, as well as smart features that control and monitor water consumption based on the type of linen. This wider selection can affect the annual water consumption by tens of thousands of gallons.

narenDran: Environmentally friendly dry-cleaning and more efficient wet-cleaning pro-cedures are seen as substitutes to conventional dry cleaning. Also many hotels are introducing RFID identification to their linen of late.

Damasceno: The latest trend in laundry operations, specific to this region is leasing linen to hotels, this is something already being practiced in Europe with about 90% of laundry operations coming from linen rentals.

how hAs lAUndRy EqUipmEnt chAngEd in REcEnt

yEARs? oR how hAs thE lAUndRy pRocEss

chAngEd in REcEnt yEARs?

narenDran: Laundry equipment has become more efficient in terms of flexibility and usage. There are now more parameters to play with to achieve optimum efficiency. Most equip-

ment now features fully programmable cycles designed to suit the ever changing needs of the specialist operators.

Damasceno: New technology benefits every aspect of the business operations, especially when it comes to reducing labour costs, overall energy costs, and improve the environmental status. Green certifications can increase the potential for new business and maintain current customer relations as the demand for ecologi-cally sound business practices steadily increase.

Bannister: There have been significant advancements in laundry equipment technol-ogy in recent years. Our brands are known worldwide for their innovative technology and our industry-leading control systems allow laundry room operators to monitor every aspect of a machine’s performance, simplify laundry management and ultimately minimise costs at every stage of laundry operation.

mAny hotEls ARE now oUtsoURcing thEiR

lAUndRy; why do yoU think this hAs now bEcomE

A tREnd?

Bannister: Many hotels are outsourcing heavi-er laundry items, such as towels, sheets, table cloths and uniforms, as it can be more cost-effective and timely than an in-house laundry operation. Com-panies that specialise in outsourcing laundry are equipped with large, efficient equipment that can handle a quick turnaround and they oftentimes have a 24-hour laundry operation. Hotels are still keeping guest personal laundry services in-house to ensure that they provide the best possible care and service for their customers

Bubble Dream Laundry systems

Learning about Laundry Steve Anderton, director, independent textile And lAundry expertiSe (ltc WorldWide) coverS dry cleAning trAining in hoSpitAlity

Whether a hotel has its own in-house laundry or sub-contracts to an external provider, laundry is often considered a necessary evil rather than a profit centre within the hospitality industry. But things are starting to change. Laundering within the Middle east has come of age with new “super laundries” and state of the art on-premise laundries being built at a pace in order to keep up with the rate of hotel development in the region. So everything in the garden is rosy right? Well not quite. In order to get the best quality, productivity and lowest operating cost in these new facilities, as well as the older less well designed and invested facilities, it’s critical that the staff and management have the right skills to be able to meet, or exceed, the expectations of guests and colleagues alike, as well as produce a visually and hygienically clean quality product.

So how can cleanliness and hygiene be determined? Many companies can provide various test equipment and materials to check that wash quality is acceptable, like the tp1 single wash test piece from LTC Worldwide. this test piece has swatches of fabric sewn on to a carrier cloth that are precisely impregnated with stains like protein, fats and oils. These are processed through one wash in either a washer extractor or tunnel washer, the swatch is returned to ltc Worldwide and the stains evaluated in the laboratory. Portable meters are also available to track the whiteness of linens. These give an early warning if quality and whiteness are starting to deteriorate.

But what happens if the quality, productivity cost or levels of hygiene are found not to be up to acceptable standards. Training for laundry supervisors is now available in the region delivered by LTC Worldwide at regular intervals. training courses include purchasing of textiles, laundry operation, dry cleaning, health and safety as well as bespoke courses designed to address a specific issue.


supplieR FoCus

Magnarab Ironer

narenDran: Technology has evolved the way machines are manufactured, and the manufacturers now have precise details on what tolerance each part is expected to have. In earlier days, ‘extra metal’ was required to make sure nothing went wrong. Now, with instru-mentation and electronic controls introduced, operators get a lot more information on the pos-sibilities, and if used in the right combination, can yield excellent results at low costs.

whAt thREE ElEmEnts shoUld lAUndRy EqUip-

mEnt FEAtURE?

narenDran: Ease to operate; Flexibility to handle multiple classifications; Historic data of the operations to help review trends of errors, operator efficiency and so forth.

Damasceno: Laundry equipment should only be considered once it helps improve energy costs, and operator costs, whilst also host envi-ronmentally friendly aspects.

Bannister: It is important for laundry equipment to feature advanced controls, green technologies and performance monitoring capabilities. Is there a demand for eco-friendlier products, such as machinery, detergents and processes?

Bannister: Yes, there is a high demand for developing eco-friendly products. There is also a demand for eco-friendly detergents. There has been a recent focus on improving detergents, both powder and liquid, and chemical compa-nies are now working very closely with laundry

Damasceno: Outsourcing is a trend that is here to stay as it reduces operating and capital investment costs helps save on the investment and maintenance of laundry equipment, which are substantially, and especially in developing markets where specialised talent can be hard to come by, outsourcing allows hoteliers to cir-cumvent the headache and expense of employee recruiting, training and retention.

narenDran: This is mainly because of the lack of control over par stocks and turnaround time from the big players in the market. Hotel laundry classifications are far too extensive and many large laundries are not configured to handle such variety loads, which lead to a time delay. Sorting multiple client laundries and mul-tiple classifications within each laundry requires several types of sorting logs within the facility and this leads to either increased cost of process directly to indirect increase in cost with delayed process time.

how hAs tEchnology chAngEd thE wAy lAUndRy

EqUipmEnt is UsEd, mAnUFActUREd And whAt

impAct hAs this hAd on thE End REsUlt?

Bannister: In addition to green technologies that help reduce utility costs, there have been many advancements in technology that allow operators to remotely monitor machine usage data in real time. High end cloud-based moni-toring and reporting management tools provide key laundry operation data and performance reports that can be used to make immediate ad-justments that improve efficiency and minimise labour, utilities and maintenance costs.

e-Laundry tracking soLutions

FcS computer Systems has introduced an

automated alternative to manual laundry and

linen tracking with its e-Laundry system. The

new e-laundry solution is designed to help

hotels eliminate paper trails, while gaining

perspective into real-time inventory, operational

needs by shift, and future consumption

forecasting. The hub of e-Laundry is the

Management dashboard, which provides

an overview of each day’s performance for

laundry and linen activities. Accessible from

the Management dashboard are four modules

designed to track all linen activities with

inventory management and consumption

forecasts, based on reservation and occupancy

data. The Laundry Module tracks all laundry

transactions and related activities in real

time, while the linen Module manages linen

activities, inventory and forecasting. e-Laundry’s

transaction Module integrates with each hotel’s

property Management Systems (pMS) to

post directly to the guests’ folios or separate

internal finance accounts for staff. Finally, the

report Builder and Scheduler Module creates

customised reports based on operational needs.

e-laundry also supports multiple languages,

other features include the ability to define

user access, digitalised laundry forms, slip/

bill printing, laundry allowance entitlement,

forecasting and even job status tracking via

e-Connect.


supplieR FoCus

manufacturers and laundry room operators to determine the best formula for a specific hotel’s laundry needs that delivers the cleanest possible linens, while reducing pollution.

narenDran: There has always been a demand for eco-friendlier products. However, there is also a trade-off with regards the skill level requirement to use machinery efficiently. The cost of such products fall down to the nature of the products and the availability in the eco-systems. If eco-friendliness comes without having to pay too much of a price on other building blocks of operations, that a clear winner.

how cAn hotEls kEEp thEiR lAUndRy costs to A

minimUm?

Bannister: Hotel operators can significantly save on costs if they replace outdated equip-ment. Old equipment can cost a significant amount in repairs, machine down time and lost efficiency. New, durable equipment with advanced technologies can help save thousands each year in utility, linen and labor costs.

Damasceno: By outsourcing the laundry, hotels can focus on core business whilst at same time, reduce costs, replace a fixed-cost operating structure with a variable cost model incurring in laundry cost only for occupied rooms and therefore, matching expenses to revenue.

Laundries are expensive to operate and most of them do not have the capacity to ho;d highly efficient equipment. Outsourcing laundry also

helps cut water, fuel or gas, electricity, labour costs in house.

Factors such fluctuating occupancies , low stock par and the inability to use modern day material handling systems, soil sort systems and inventory control systems add to OPL inef-ficiencies driving costs well above the perceived costs of operating the OPL.

narenDran: Laundry has flow of articles. Every flow has a start and an end. If all the operators in the floor knows where each process begins and ends, the bottleneck can be elimi-nated. Once the flow is achieved, the next build-ing block can be addressed and there becomes a platform for comparison. Cost reduction should be taken as a continuous improvement initiative.

whAt ARE somE oF thE hottEst pRodUcts on thE

mARkEt?

Bannister: Our most popular products on the market in the Middle East are U.S. made hardmount washer-extractors and European made softmount high spin washer-extractors, paired with the U.S. made dryers.

RX Primus from Alliance Laundry Solutions



Can you share some details about the company's history?Groupe GM is a family owned company that has been in the guest amenity industry for over 40 years. Founded by my father, Georges Marchand, in 1972, Groupe GM was built around a simple idea – partnering with renowned brands to offer quality cosmetic products to hospitality specialists. Ô de Lancôme was the first to come on board and, since then, Groupe GM has expanded to include a portfolio of 30 brands.

What is the most popular product that you supply to the hospitality industry?Soap is by far the most popular product supplied to the industry, followed by shower gel.

What growth do you anticipate to see over the course of the next 12 months?We have opened our own infrastructure in Dubai and GM Amenities Paris, which will enable us to substantially expand our business in this part of the world.

What new products and announcements should we know about?We have opened a Groupe GM branch in China, under the name Jiaomu Cosmetic. This new company, based in Changzhou, has been created to respond to the increasing demand for luxurious amenities in graded Hotels in China and, by extension, Asia. In terms of products, we have recently launched our first well-being and personal care line More&More, to complement the more traditional amenity products.

Can you name a few of your hospitality clients and list what you supply to them? We supply amenities to The Ritz in Paris, to the Mamounia in Marrakech, to Park Hyatt in Vienna and to several Mandarin Oriental properties throughout the world via our new amenity line, Atelier Cologne.

LaurentMarchandceO of Groupe GM, Global Guest amenities Brand

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The supplier and buyer roundup of news, products and services

VINCArD CLASSIC rFIDThis Classic RFID offers the latest Radio Frequency Identification (RFID) technology and the quickest path to go contactless if you currently have standard Classic VingCard electronic locks installed.

Features include:• Standalone electronic lock with RFID technology.• Supports mobile access• Fire-listed for use on fire doors. (UL, EN, BS)• High security mortise lockcase available in ANSI, JPN, AUS and

EURO versions.

assaabloyhospitality.com

HENDoN GuEST IroNING BoArDThe new Hendon Hotel Guest Ironing Board from Northmace and Hendon is ideal for hotel bedrooms where space is at a premium.

Measuring 110cm in length when closed, it fits neatly in almost all bedrooms and is made from an all metal construction for a long life. Features include and adjustable board height luxury foam-backed metalised cover for superior ironing experience. [email protected]


MaRketplaCe

AMErICAN uNIVErSITy AND GroHE TEAM uP WITH ALSErKAL CuLTurAL FouNDATIoN To FIND youNG DESIGNErS The American University in Dubai (AUD) and GROHE have launched the “Water and Sand” Design Atelier. During the unique design atelier AUD students will develop a wellness project located in a wind tower house in Al Bastakiya Dubai, embracing art and culture, while using the GROHE Spa range. The project will link local heritage, modern design solutions in line with the tradition and the historical location. The workshops will begin in Spring 2016.

Mozaik disposable range Panache International has launched the Mozaik disposable range that reflects the image of glass with the functionality of plastic disposables. Having recently been awarded the ISO 9001:2008 certification, Panache’s range includes aperitif glasses, amuse-bouche platters that have the look of glass with silver-like sheen, and plastic plates with the light-weight sturdiness of plastic.panacheintltd.com

ila Spa British spa and beauty brand ila has launched a new look Renewed Recovery Collection, a range created with a blend of ancient ingredients from the Amazon rainforest, designed to recover unbalanced, damaged and irritated skin. ila-spa.com


Showcasing the latest tech innovations available to the industry

Why is it important for hotels to have high-end network infrastructures? The benefits of a solid structured cabling backbone extend well beyond providing just fast and reliable internet access. It opens up the possibility to incorporate new bandwidth hungry technologies such as ip-based phones, digital entertainment and on-demand services and even backend facility management and building management systems. These applications require large amounts of bandwidth to be made available at all locations of the hotel over a very reliable connection.

Apart from high-speed data, what other benefits come from R&M cable connections? Although the structured cabling which is the physical infrastructure of the network represents only a small fraction of the total network expenditure (typically about 5%), about 80% of network issues relate back to shortcomings in this layer. So the importance of a reliable and expertly installed cabling network cannot be understated. One of the main benefits of R&M cabling is quality, this isn’t just a statement- we back this claim by offering a 25-year warranty on our systems that have been deployed by our certified installation partners.

Why should a hotel choose Power over ethernet (Poe) as its cabling solution?poe means a single cable provides both power and data to the network device, which can be a wireless access point, cctv, voip phones, poS terminals and other such equipment. The first benefit is that it simplifies installation and allows the system integrators to conveniently install the network device anywhere in the hotel.

There are also cost benefits. Not only are these solutions easier to deploy, meaning simpler design, and faster installation, but they require fewer cables to be pulled as it eliminates the need for separate power and data. For the hospitality sector in particular, where aesthetics is a pivotal factor to success, more compact cabling is a big plus point.

How can high-speed internet, voice-connectivity and iPtV increase a hotel’s revenue?the explosion of technology in the last decade has meant that today’s traveller is far more tech-savvy. High speed WiFi is no more a luxury at a hotel than running water. Failing to acknowledge the need for technology adoption can directly impact business. An annual survey by SpringHill Suites revealed that 57% of guests would not give up social media on vacation in exchange for a 25% hotel discount!

HILToN INTroDuCES FIrST CoNCIErGE roBoT

hilton Worldwide introduced "connie" - the first Watson-enabled robot concierge in the hospitality industry. Connie draws on domain knowledge from Watson and WayBlazer to inform guests on local tourist attractions, dining recommendations, hotel features and amenities. Connie currently lives near reception at the Hilton McLean in Virginia. the robot uses a combination of Watson Apis, including dialog, speech to text, text to speech and natural language classifier.

NEW FEATurES ADDED To THE VISIT ABu DHABI MoBILE APP

the visit Abu dhabi app has been upgraded to include new features such as up-to-date online and offline information on all there is to see and do in the emirate. the Augmented reality feature, allows the closest points of interest to be identified via a smartphone’s camera, an easy-to-navigate map, a full listings of hotels,

restaurants and spas with filters to find what’s best for each need and also an online booking feature for hotels, flights and car rental.

DXB LAuNCHES SMArTWATCH APP Dubai International Airport now offers tech savvy passengers flying through dxB the facility to receive travel information directly to their smartwatch

following the launch of a new service integrating the gadget with dubai Airports’ smartphone app.The smartwatch app is available on two main software platforms – ioS and Android.

TECH TALK

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who said that?

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“We are dedicated to ensuring we can provide the necessary support to hotels in order for them to perform at their best. This means ensuring sufficient training, rolling out of new tools, and importantly – people development. Without the right talent, you simply will not make it. At the same time, one of my key priorities is to challenge the status quo in the region and in the industry. I am looking forward to shaking things up a bit!”cHristiAn pertl, regionAl vice president sAles operAtions, HyAtt internAtionAl soutHwest AsiA

tHis montH’s room witH A view goes to tHe mystique bAnyAn tree, lAng co, centrAl vietnAm resort

Located in the tranquil southern coast of Vietnam near Lang Cô Bay, Banyan Tree Lang Co is steeped in deep-rooted history with dramatic vistas spread across a rug-ged landscape situated on unspoiled nature surrounded by three UNESCO World Heritage Sites. The resort is an all-pool villa resort, offering guests private pool facili-ties overlooking natural lagoons. The resort is situated near the magnificent stretch of the Truong Son Mountain Range, within touch of three UNESCO World Heritage Sites – the imperial city of Hue, charming old town of Hoi an and My Son's histori-cal ruins. For visitors who wish to enjoy physical activities the resort also offers a wide range of outdoor activities. Golfers can tee off in style at the Sir Nick Faldo-designed 18-hour championship golf course, meandering through rice paddies and trickling streams against the backdrop of a staggering mountain range.

We will be running a dedicated supplier focus on security, asking professionals to elaborate on the latest products available to the hospitality industry and the necessary precautions hotels should take in safeguarding their property. To get involved in this editorial, please contact [email protected]

Corporate Director of FinanceComplex Director of EngineeringDirector of Sales & MarketingComplex Executive Housekeeper

Laundry ManagerRevenue ManagerSales Manager

General ManagerDirector of OperationsHR Director

Training ManagerDirector of F&BBar ManagerExecutive Chef

Bin Eid is highly specialized in Senior Level Search & Placement of Hotel/Hospitality Industry Professionals. Our clients include prominent 5 star hotels (international chains), 4 star deluxe properties and other hospitality and leisure industry establishments

in UAE and other gulf countries. We are now in the process of filling in the above positions for our clients in the UAE, GCC and other countries

CV may be forwarded by email to M.D. Warrier indicating the present/expected salary

BIN EID EXECUTIVE SEARCH Specialised in 5* Hotel Sector PO Box 5455 Sharjah, United Arab Emirates Email: [email protected] Tel: +971 6 5686144 Website: www.bineid.com

BIN EID EXECUTIVE SEARCH & SELECTION(Specialised in 5* Hotel Sector)

last woRd

Room with a view

PO Box 700 Dubai UAETel: +971 4 8803444Fax: +971 4 8803434

[email protected]

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Exceptional sleep deserves an exceptional mattress.Step up to a new level of luxury that only a Restonic mattress can provide.

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hotel news me - april 2016

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