SPECIAL FEATURE
five new hotels opening in quick succession that will boost the existing HMH portfolio by 25 per cent. We also have a strong interest in the booming Asian markets, such as India, Indonesia, Malaysia and China. How do you plan on differentiating the guest experience? Respect for local culture is integral to our business ethics. HMH is a pioneer in the alcohol-free segment and in 2003 was the first hotel chain in the Middle East to launch the concept. This places us in a very unique position, as over the years we have gathered an amazing experience both in terms of operations and market intelligence in the dry, as well as midmarket segment. So as far as market positioning goes, the strategic focus for our group remains on building investor and consumer perception to view HMH and its various brands as ‘safe’ indigenous entities, offering great value in every aspect and segment. We now offer five distinctive brands - The Ajman Palace Hotel, Coral Hotels & Resorts, Corp Hotels, EWA Hotel Apartments and ECOS Hotels serving a broad mix of clientele, from budget to luxury and operate superb properties in 14 major cities across
the MENA region. Each is a carefullycrafted brand in its own right. Over the years our name has become synonymous with quality, reliability, consistency, efficiency, value for money, along with warm and gracious hospitality, in a safe environment. Now as we grow and reach new and exciting destinations, we remain committed to serving our guests with the same passion that ignited our ambitions. From your standpoint, what is the current scene in the regional hospitality industry? The scale of opportunity in the region for mid-market/budget hotels is unprecedented. The number of visitors travelling to the region is projected to double, reaching 136 million by 2020, compared to 54 million in 2008. However, at the moment, upscale and luxury hotels dominate the region’s hotel inventory. This leaves a huge gap and opportunity for budget hotels that we are keen to penetrate with ECOS Hotels. Expanding airline networks, including rise of low-cost carriers, increased airport capacity, the growing middle class, new emerging source markets, addition of tourism and
family attractions and enhancement of infrastructure are all fuelling the demand for mid-market hotels. Dubai is once again leading the way in the region, having given a tax reprieve to investors developing mid-market hotels. Eligible hotels are exempted from the 10 per cent municipality fee levied on the daily room rate for a period of four years, if the construction permit is granted between October 1, 2013 and December 31, 2017. Another key trigger has been Dubai Expo 2020. That has proved to be a massive stimulant for the entire GCC region’s hospitality and meetings industry, accelerating economic growth and development, pushing the demand for budget hotels. At HMH, we are ideally placed to tap this segment with ECOS Hotels, which is a no-frills B&B brand. ECOS Hotels is a smart choice for investors too, offering strong investment opportunity because of lower construction and operating costs, as well as quick and high return on investment. Tell us your personal strategy to get results, with an agenda as full as yours. One has to make time on one’s agenda based on priorities. During my first year at HMH, I had to spend 75 per cent of my time on evaluating and consolidating the business. Visiting all hotels was of high significance, creating a bond with the owners, building a strong team, investing in the latest technology, ensuring strong brand positioning and market visibility, setting the right goals and activating a development pipeline in keeping with those business objectives. We are present in 14 cities across the MENA region and I took the time to visit each of those properties four or five times during this one year, because I believed it was essential to do so in order to understand their needs. Now that I have achieved those objectives and have put in place a strong structure at every level, I have shifted my focus - allocating 75 per cent of my time to development and owners relations. At the end, it is all about getting one’s priorities right, for time is one thing one can never have enough of. As Albert Einstein had famously said: “Not everything that counts can be counted and not everything that can be counted counts.” NOVEMBER/DECEMBER 2014 17