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GLOBAL HOTEL INDEX: Asia Pacific 68.3%/ $122.36 - Americas 63.4%/ $112.67 - Europe 68.4%/ $137.25 - MEA 61.1% / $164.63 (Occupancy %/ADR $ November 2013)

INSIDE 2014 TRENDS

*!+,           9;

PHILIPPE PELLAUD       

<=  >? *  @ 'CF     

ROUNDTABLE

  #Q       Q    

DATA

J  !   K  

  

THAT DEAL

          !  " "    # "  "    MEA president and MD, Alex Kyriakidis,&  ' 


CONTENTS

24

07. Data

18. DTCM

New interactive pullout section of essential data, tenders and jobs

The latest news from Dubaiâ&#x20AC;&#x2122;s Department of Tourism Commerce and Marketing

20. Breaking barriers

24. Inspirational Hotels

Could technology replace the check in desk? Hoteliers and vendors explain

       unique boutique properties

28. Supplies & Services

30. Forecast â&#x20AC;&#x2DC;14

Product and service supply news from across the region

Hoteliers and analysts share their top 2014 trend predictions

38. Ship Shape

42. Roundtable

Radisson Blu Kuwait GM Philippe Pellaud on the hotelâ&#x20AC;&#x2122;s reopening

GMs gather to discuss the opportunities and threats in African hotel investment

50. This is Africa

54. Insight

Marriott Internationalâ&#x20AC;&#x2122;s MEA MD and president on the deal shaping 2014

DLA Piperâ&#x20AC;&#x2122;s Keri Watkins gives a roundup of laws in Africaâ&#x20AC;&#x2122;s investment hotspots

30

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54

JANUARY 2014

1


2

PUBLISHING PANEL

PUBLISHER

ADVERTISING

DOMINIC DE SOUSA

GROUP SALES DIRECTOR

GROUP COO

CAROL OWEN carol.owen@cpimediagroup.com +971 55 8803817

NADEEM HOOD

EDITORIAL GROUP DIRECTOR OF EDITORIAL

SALES MANAGER, HOSPITALITY DIVISION

PAUL GODFREY paul.godfrey@cpimediagroup.com +971 04 440 9105

MILOS KOVACEVIC milos.kovacevic@cpimediagroup.com M: +971 (0) 56 235 6921

ASSOCIATE PUBLISHER, HOSPITALITY DIVISION

PRODUCTION MANAGER, HOSPITALITY DIVISION

DAVE REEDER dave.reeder@cpimediagroup.com M: +971 55 105 3773

VA DEVAPRAKASH

GROUP MANAGING EDITORS

LOUIE ALMA

MELANIE MINGAS melanie.mingas@cpimediagroup.com +971 4 4409152

DISTRIBUTION MANAGER

     georgina.powell@cpimediagroup.com +971 4 3755685

WEB DEVELOPER, HOSPITALITY DIVISION

ROCHELLE ALMEIDA

PRINTED BY Printwell Printing Press LLC, Dubai, UAE PUBLISHED BY

ASSISTANT EDITOR SOPHIE MCCARRICK sophie.mccarrick@cpimediagroup.com +971 4 4409150

SENIOR GRAPHIC DESIGNER, HOSPITALITY DIVISION CHRIS HOWLETT

PHOTOGRAPHER, HOSPITALITY DIVISION

     ! " Tel: +971 4 440 9100 #$  ! %! &!'* !-!/; <  = ! " A publication licensed by IMPZ

ANAS CHERUR © Copyright 2014 CPI. All rights reserved.

In association with...

JANUARY 2014

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EDITORâ&#x20AC;&#x2122;S LETTER

NEW HORIZONS

I

tâ&#x20AC;&#x2122;s 2014. Happy New Year. As the world snacks on carrot sticks between its yoga and sauna sessions, following half a month of         

industry keeps on ticking, as it always does, every day. If you have a spare hand give yourself a pat on the back! What does 2014 bring? Well, following           



much of the previous quarter, letâ&#x20AC;&#x2122;s sum it up as growth. More guests arriving via more airlines, more hotels, more nationals working in themâ&#x20AC;Ś. And huge investment in Africa. Although two thirds of the industryâ&#x20AC;&#x2122;s         

created in Asia, this continent is set to         

and as a result is the beneficiary of almost every hotel groupâ&#x20AC;&#x2122;s investment plans. In some African countries, travel and tourism can contribute up to 30% towards GDP, in others visa restrictions and corruption are so prevalent that          " 

hospitalitybusinessme.com

thing every African country seems to have in abundance is intrigue. In a literal top down effect, the Arabic speaking North African countries have paved the way for development and investment across the continentâ&#x20AC;&#x2122;s other nations and a growing number of people canâ&#x20AC;&#x2122;t wait     

Unfortunately hotel data can be thin on the ground in these new territories making it difficult to quantify the           

a golden age is heralded. In South Africa, arrivals were up 5.1% in H1, topping a 9.4% four year compound annual growth and e-tourism in the country is a major economic driver. But with business and infrastructure development securing the hospitality industry in less visited countries, the 

 #    

destinations will be to tap the repeat visitor market. And for that, only time will tell. MELANIE MINGAS GROUP MANAGING EDITOR

JANUARY 2014

3


NEWS QUOTES

PERSPECTIVES As Montreal did with Expo67 and the â&#x20AC;&#x2DC;76 Olympics, this Expo award could be a warm up for something much bigger Mark Willis, Rezidor Hotel Group

It would have been easier to demolish the whole thing and build a new hotel Philippe Pellaud, Radisson Blu

O`g]n]jĂ&#x2022;f\kl`] afl]jk][lagfZ]lo]]f l][`fgdg_qYf\k]jna[] oaddoafl`]eYjc]l Bg`fNYf\]jkda[]$ ;gfjY\Yf\OYd\gj^ 9klgjaY

At the rate of technological change, hotels in the pipeline need to include AV systems immediately in their designs     

hospitalitybusinessme.com

JANUARY 2014

5


6

NEWS

1 / $32m MICE sector boost for DWTC Dubai World Trade Centre will host an additional 11 international congresses in 2014, with a combined economic value of $32m for the Emirate, based on an additional 12,000 visitors. Spanning healthcare, transportation, law and technology                     !  "#  %%&'  &      & management profession, the annual meeting is expected to attract more than 1,200 top-level delegates from across   (     " '"    

 &   ) # *+*+   &/     international trade visitors to the emirate expected to swell from 900,000 in 2012 up to between 1.3 and 1.9 million by the end of the decade.

1

2 / Seatrade 2013 cruise â&#x20AC;&#x153;sector milestoneâ&#x20AC;? ! ) #     5"  "" (   Forum will be a regional industry milestone if the public and & 6       7  #   &&  / "   " ! ) /  " &  " / ! ) 8  "  !  8! ! )  Revealing details of a dedicated industry development committee specifically for the cruise industry, he said the      &   ! ) 8 /   / ( " !    "  )& of Transport, which he plans to expand to private sector players in future. 8 (        : / ) "   "6&        !  !  approach. ; 6 *+<=    '  >             /      &  needed for more lucrative routes. Many other brands, have yet      "" (    "    

3/

2

         

5'   &  ; " ?   5' ?  KurfĂźrstendamm from February 1, marking an expansion in the  &      &  <=  8 " "   &&    % "    "    & /  5' :   ! @&/   *+<A 5'     B+    (&/    "  6 / "  5'   ! " 8 &  5"   " 5' 5 " / 5'  )#!  8  G & " 5' H Victoria.

JANUARY 2014

3

hospitalitybusinessme.com


NEWS

7

4 /                 open its much delayed resort on a private Seychelles island. The opening of the Enchanted Island Resort has been pushed back on several occasions due to red tape with local authorities. It opened on December 20. The ultra-luxury destination features 10 exclusive villas surrounded by five acres of natural greenery as part of              has its own private infinity pool, direct walkway to the beach, outdoor deck and rain shower.

4

5 /     !"    #   !

    $  $%&  a 140-room airport property on the south east coast The conversion property encompassed local environmental initiatives, for example the use of basalt rock from existing shacks and out-houses in its construction. In addition, the building features rainwater harvesting for irrigation and uses local timber in all public areas, to help reduce carbon footprint.   " $ %!"'(  ) % !  %  *     

 +/3'   &   bringing Holiday Inn to Mauritius and today we welcome guests

 $  '    '$      holidaymakers and business travellers continues to increase,

 !

&    5 %6$       $  $' $     7 $

 && " $ &    8 $

6 /   5

6

hospitalitybusinessme.com

      9   

' 6$          %/  

   7  :$      

%   % 

*  

8 Kyriakidis has told   ;$ . :     ' &   

 

% Kyriakidis said its changing circumstances were a result of the    :$   &   '   $6$

  <           $ = =&   

'        6$  

 >    $ $    $  > 

 +/9   9*  $     $   %&   $   

  holding a machine gun. Today the lead article is about   & &   $   ?  $     @   ' /9&  %      &&$  

$       &$    ABCC :$    F;$       

    %   

    7

JANUARY 2014


IN FIGURES

IN FIGURES           

Of global travel and tourism sales in 2012 were generated online, Expert Insight, page 30

New airport project due for construction in Kuwait, boosting both business and      page 38

Under development by Rezidor Hotel group in Sub-Sahara Africa, with 15 hotels already in operation, Roundtable, page 42

Growth in regional Revenue Passenger Kilometres, YTD August 2013

Of GDP contributions came from travel and tourism, Africa 2012, VP Spotlight, page 50 Occupancy, Q3, 2013, Qatar. Data, page 11

Amount raised by Hyatt Hotels Corporation in 2009 in the largest hotel IPO to date

hospitalitybusinessme.com

Average occupancy at French â&#x20AC;&#x2DC;bubbleâ&#x20AC;&#x2122; hotel, Attrapâ&#x20AC;&#x2122;RĂŞves, Inspirational Hotels, page 24

JANUARY 2014

9


10

MEA DATA

HOME IS WHERE THE   HEART IS When it comes to sourcing and spending capital, EMEA investors prefer to stay on home soil. Colliers International provides the data in its 2014 survey results

W

hile encompassing a huge area that also takes in part of one of the worldâ&#x20AC;&#x2122;s most economically troubled regions, the outlook for EMEA investors in 2014 is strong with most of the capital raised in the region staying there, and a growing appetite for real estate transactions in both safe haven markets and emerging locations. Investments over Q1 â&#x20AC;&#x201C; Q3, 2013 surged 53% on the previous year, according to data from Jones Lang LaSalle analysing the hotel industry alone. In comparison to other regions (see graphic) EMEA investors are considered the most active. The trend is nothing new. In 2012, hotel investors were the most active real estate investors and today there are more than 450 hotels in the Middle East pipeline, with many more tipped for announcement in the UAE further to the positive Expo2020 announcement. Taking this into account, on a global scale UK investors are the largest group looking into the region

over the coming 12 months. At the time of going to press the total transaction volume for 2013 looked set to tip $13.54bn.

investment and development destination, but it was the strongest performer in the region according to STR Global, with occupancy up 69.5% and a leap in ADR of 30.4%. In March Manama alone posted a growth I ADR of 14.6% to US$217.34, the biggest growth in the region and supported by RevPar gains the following month of +121.1% $103.10.

SURPRISING STATISTIC Despite all the talk about Dubai and Doha, the most surprising statistics to come from 2013 was the rise of Bahrain as an

EMEA INVESTOR FOCUS

5%

7%

OTHER

US

4%

6%

UK

ASIA

1% LATAM

77%

72%

EMEA

of EMEA investors believe a disproportionate amount of capital      MEA HOTEL DATA: NOVEMBER 2013 (US$)  







  

2013

2012

2013

2012

2013

2012

OCC

ADR

REV PAR

Middle East/Africa

64.6

65.7

180.88

169.34

116.78

111.27

-1.7

6.8

4.9

Middle East

70.7

67.2

231.28

221.95

163.57

149.19

5.2

4.2

9.6

Northern Africa

43.9

60.7

76.63

85.85

33.60

52.08

-27.7

-10.7

-35.5

Southern Africa

67.5

66.8

127.22

129.87

85.85

86.76

1.0

-2.0

-1.0

JANUARY 2014

hospitalitybusinessme.com


11

MEA DATA

   QATAR

                           HOTELS !" #$$%&

$,%-,!.," Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

Luxury

3

5

6

6

8

Upper Upscale

3

3

4

7

10

Upscale

3

5

5

7

Upper Midscale

3

2

2

2

1

1

Midscale

In Constr.

Final Planning

8

5

4

1

2

10

3

1

1

9

9

6

1

1

1

2

3

3

Economy

Planning

Pre Planning

1 1

1 1

Independent

28

27

28

31

35

37

4

2

3

'%

(

(

()

**

))

)+

/

)

3

*

Planning

Pre Planning

ROOMS !" #$$%&

$,%-,!.," Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

Luxury

851

1,648

2,018

2,014

2,875

Upper Upscale

959

959

1,359

1,863

3,012

Upscale

679

922

921

1,281

Upper Midscale

920

784

783

783

180

180

Midscale

In Constr.

Final Planning

2,875

1,337

1,098

158

263

3,012

1,136

63

215

1,773

1,880

1,315

232

200

200

291

399

399

Economy

130 347

220 219

Independent

5,988

5,848

6,066

6,280

7,002

7,239

937

737

500

'%

/5/3

5(

53

12,512

15,261

*5)*

(5/((

5+*

53

/**

CURRENT ROOM SUPPLY AND PIPELINE

/ + 3 )

!,$%'---9

-'%%'---9

%'---9

--!#"-

*

:-9

(     Luxury

hospitalitybusinessme.com

Upper Upscale

Upscale

Upper Midscale

JANUARY 2014

Midscale

Independent


Material supplied by

12

JOBS

JOB WATCH Looking for a new challenge? Let us help. All jobs can be applied for through www.Hozpitality.com

DIRECTOR OF SALES AND

AsianaHotel Dubai is an ideal

MARKETING

choice for both business and

INDUSTRY: Hotels Clubs and Spas

leisure travelers. We are currently

DEPARTMENT: Sales and

looking for an HR Manager who

Marketing/PR

is a good English speaker with

LOCATION: United Arab Emirates

 

   

(UAE)

experience in hotels in UAE/Gulf,

GENERAL MANAGER

CHIEF ENGINEER

SALARY DESCRIPTION: Basic Net

good computer skills, extremely

INDUSTRY: Facilities

INDUSTRY: Hotels Clubs and Spas

Salary 18.000 â&#x20AC;&#x201C; 22.000 Dirhams

active and prompt, able to sustain

Management, Hotels Clubs and

DEPARTMENT: Engineering and

(subject to experience)

pressure and has good delegation

Spas

projects

START DATE: ASAP

skills.

DEPARTMENT: General

LOCATION: United Arab Emirates

RECRUITER: Hozpitality

Management/ GM

(UAE)

Consulting

SENIOR GENERAL MANAGER

LOCATION:

SALARY DESCRIPTION: Attractive

ADDITIONAL DETAILS: We

INDUSTRY: Hotels Clubs and Spas

Worldwide, Africa, ME/GCC

     

are looking for a DOSM for a

DEPARTMENT: General

(Except UAE), United Arab

START DATE: ASAP

renowned 5-star international

Management/ GM

Emirates (UAE)

Recruiter: Hozpitality Consulting

hotel in Abu Dhabi, who will

LOCATION: United Arab Emirates

SALARY DESCRIPTION:

ADDITIONAL DETAILS: We are

be overlooking a team of

(UAE)

Competitive salary offered

looking for a chief engineer for

approximately 15 employees.

SALARY DESCRIPTION: Attractive

START DATE: ASAP

our client for one of their hotels

         

START DATE: ASAP

RECRUITER: African Management

in Dubai. An attractive salary will

bedroom apartment depending on

RECRUITER: Hozpitality Consulting

Services Company (AMSCO)

be offered in addition to medical

dependent children, transportation

ADDITIONAL DETAILS: We are

ADDITIONAL DETAILS: A hotel

Insurance, life insurance, annual

allowance, telephone allowance,

looking for a Sr. GM for hotel

looking for a general manager to

vacation 30 days, return ticket

schooling assistance, duty meals

group to be based in UAE. The

oversee all aspects of property

annually, laundry and meals

and laundry.

candidate should have over

management with focus on

provided. Company mobile with

 

 

SIM card and business plan

ASSISTANT DIRECTOR OF SALES

and preferably with similar

performance, guest satisfaction,

provided.

AND MARKETING

experience in UAE. Candidates

INDUSTRY: Hotels Clubs and Spas

with international hotel brands

SENIOR MANAGER HR

DEPARTMENT: Sales and

experience preferred. Age 45-60

CUSTOMER SERVICES

Marketing/PR

years.

CHEF DE CUISINE

INDUSTRY: Airlines, Travel

LOCATION: ME/GCC, United Arab

INDUSTRY: Hotels Clubs and Spas

Industry

Emirates (UAE)

MARKETING MANAGER

DEPARTMENT: Food Production/

DEPARTMENT: Human Resources

SALARY DESCRIPTION: Attractive

INDUSTRY: Hotels Clubs and Spas

Kitchen

(HR)

START DATE: ASAP

DEPARTMENT: Sales and

LOCATION:

LOCATION: United Arab Emirates

RECRUITER: Hozpitality Consulting

Marketing/PR

Worldwide, Africa, Asia, ME/

(UAE)

ADDITIONAL DETAILS: We are

LOCATION: United Arab Emirates

GCC, United Arab Emirates (UAE)

SALARY DESCRIPTION: Attractive

looking for an assistant director

(UAE)

Salary description: Attractive

     

of sales and marketing for a

SALARY DESCRIPTION:

     

START DATE: ASAP

renowned international hotel

COMPETITIVE SALARY OFFERED

START DATE: ASAP

RECRUITER: Etihad Airways

in Doha. Mainly looking after

START DATE: ASAP

RECRUITER: Le Meridien

Additional details: Responsible

corporate accounts, salary

RECRUITER: Taj Palace Dubai

Fishermanâ&#x20AC;&#x2122;s Cove

for leading the development of

in range of 10,000 to 11,000

ADDITIONAL DETAILS: We

ADDITIONAL DETAILS:

strategic plans and operational

plus fully furnished family

are looking for a marketing

Responsible for managing

delivery for all employee customer

accommodation, transport

manager, the right candidate

all aspects of the kitchen

services spanning accommodation

allowance, mobile and schooling

should have similar experience

department, conforming to the

services, education services and

for one child.

in international hotels, preferably

operating standard of the hotel

administration services for Etihad

attaining objectives based on

and wholly owned subsidiaries.

HR MANAGER

have strong leadership skills

productivity cost of products all

Key service delivery channels

INDUSTRY: Hotels Clubs and Spas

and ability to create, maintain &

in reaching excellence that will

include HR Connect, Ask HR and

DEPARTMENT: Human Resources

motivate a team. Good English

satisfy our discerning clientele.

Employee Service Centre with a

(HR)

communication skills are required

To coordinate all dining operations

global scope for delivery. Establish

LOCATION: United Arab Emirates

and excellent guest relation skills.

of a hotel, such as managing the

and maintain service standards

(UAE)

kitchen associates overseeing

for all service areas including

SALARY DESCRIPTION: Attractive

ASSISTANT FINANCIAL

meal preparation, planning menus,

those with direct and indirect line

START DATE: ASAP

CONTROLLER

and ordering supplies.

management responsibility.

RECRUITER: Asiana Hotel Dubai

INDUSTRY: Hotels Clubs and Spas

ADDITIONAL DETAILS:

DEPARTMENT: Finance and

and staff development within established quality standards.

JANUARY 2014

15 yearsâ&#x20AC;&#x2122; experience as a GM

in the UAE/Gulf. They should

hospitalitybusinessme.com


13

JOBS

Accounts

    

START DATE: ASAP

Marketing/PR

LOCATION: United Arab Emirates

hotels.

RECRUITER: Hozpitality Consulting

LOCATION: United Arab Emirates

ADDITIONAL DETAILS: We are

(UAE)

(UAE) SALARY DESCRIPTION: Attractive

    

looking for someone who is

SALARY DESCRIPTION: AED



 

MANAGER

able to manage and direct the

10,000 to 12,000 plus executive

START DATE: ASAP

INDUSTRY: Hotels Clubs and Spas

facilities of particular buildings,



RECRUITER: Liwa Hotel

DEPARTMENT: Human Resources

departments and facilities within

START DATE: ASAP

ADDITIONAL DETAILS: Liwa Hotel

(HR)

the hotel resort. Job duties

RECRUITER: Apt Resources, Dubai

is looking for a dynamic individual

LOCATION: United Arab Emirates

include building maintenance,

Additional details: We are looking

       

(UAE)

environmental and safety

for a candidate that is male or

Ideal candidate should possess

SALARY DESCRIPTION: Attractive

regulation compliance, grounds

female with a minimum two

strong academic credentials in

    

maintenance, restaurant support,

yearsâ&#x20AC;&#x2122; experience in the similar

accounts and audit. Not less

START DATE: ASAP

organisation of events, space

position. Knowledge of the Middle

   

RECRUITER: Hozpitality Consulting

assignments and more. Individual

East market, excellent leadership

hospitality. Special consideration

ADDITIONAL DETAILS: We

has supervisory and budgetary

and interpersonal Skills, strong

will be given to those who can

are looking for a HR manager/

responsibility.

networking skills and has to be

join immediately.

Assistant HR manager for our

deadline and budget oriented.

client; a 4-star renowned hotel in

DIRECTOR OF SALES AND

MANAGER TRAINING

Dubai. The right candidate should

MARKETING

FLEET MANAGER

EQUIPMENT QUALITY

have similar experience in the

INDUSTRY: Hotels Clubs and Spas

INDUSTRY: Hotels Clubs and

INDUSTRY: Airlines, Travel

hotel industry in UAE. Attractive

DEPARTMENT: Sales and

Spas, Travel Industry

Industry

    

  

Marketing/PR

DEPARTMENT: Security and

LOCATION: United Arab Emirates

Transport, Travel Management

DEPARTMENT: Engineering and projects

FRENCH CHEF DE CUISINE

(UAE)

LOCATION: ME/GCC, United Arab

LOCATION: United Arab Emirates

INDUSTRY: Hotels Clubs and Spas

SALARY DESCRIPTION: Attractive

Emirates (UAE)

(UAE)

DEPARTMENT: Food Production/

Start date: ASAP

SALARY DESCRIPTION:

SALARY DESCRIPTION: Attractive

Kitchen

RECRUITER: Hozpitality Consulting

Competitive salary

    

LOCATION: United Arab Emirates

Additional details: We are looking

START DATE: ASAP

START DATE: ASAP

(UAE)

for DOSM for a renowned

RECRUITER: Qasswa for Haj and

RECRUITER: Etihad Airways

SALARY DESCRIPTION: Attractive

international hotel opening in Abu

Umra

ADDITIONAL DETAILS: This

    

Dhabi. Candidates should have

ADDITIONAL DETAILS: A high

person will be responsible for the

START DATE: ASAP

similar experience in star hotels

    

implementation and oversight of

RECRUITER: Hozpitality

and have knowledge of Abu Dhabi

transport manager is required

quality control measures which

Consulting

market. Attractive salary offered.

for our transport department.

ensure that the equipment in all

ADDITIONAL DETAILS: An

Etihad Safety and Service Training

international 5-star hotel in Dubai

FOOD AND BEVERAGE

Facilities is being safely and

is looking for a chef de cuisine for

MANAGER

effectively maintained and meets

their French Restaurant. We are

INDUSTRY: Hotels Clubs and Spas

FINANCIAL CONTROLLER

regulatory requirements.

looking for a young talent, French,

DEPARTMENT: Food and

INDUSTRY: Hotels Clubs and Spas

male or female, good looking,

Beverage Service

DEPARTMENT: Finance and

FRONT OFFICE MANAGER

with excellent presentation and

LOCATION: United Arab Emirates

Accounts

INDUSTRY: Hotels Clubs and Spas

professional skills (1* Michelin

(UAE)

LOCATION: United Arab Emirates

DEPARTMENT:  

level), willing to create a name

SALARY DESCRIPTION: Attractive

(UAE)

Rooms Division

for himself in Dubai. He/she will

    

SALARY DESCRIPTION: Attractive

LOCATION: United Arab Emirates

conduct cooking demos and

START DATE: ASAP

salary

(UAE)

classes in the Restaurant. The

RECRUITER: Hozpitality Consulting

START DATE: ASAP

SALARY DESCRIPTION: Attractive

       

Additional details: We are looking

RECRUITER: One to One Hotels -

START DATE: ASAP

participant would receive an

for an F&B manager for our client,

the Village

RECRUITER: One to One Hotels-

engraved personalized DVD at the

a 4-star renowned hotel in Dubai.

ADDITIONAL DETAILS: We are

the Village

end of the session.

The right candidate should have

      

similar experience in the hotel

controller in Abu Dhabi. The

ADDITIONAL DETAILS: We

The Candidate must have Saudi/ Middle East/GCC experience.

currently have an opportunity

ENGINEERING MANAGER

industry in UAE. Attractive salary

      

     

INDUSTRY: Hotels Clubs and Spas

 

  

years of similar experience in the

manager holding a solid career

DEPARTMENT: Engineering and

background preferably in UAE.

projects

HOTEL BUSINESS DEVELOPMENT

be extremely active and able to

The FOM will join a team of

LOCATION: United Arab Emirates

MANAGER

sustain pressure. Competitive

dynamic executives and will

(UAE)

INDUSTRY: Hotels Clubs and Spas

salary, as per international hotel

be required to have previous

SALARY DESCRIPTION: Attractive

DEPARTMENT: Sales and

chain standards.

hospitalitybusinessme.com

UAE/Gulf. Good computer skills,

JANUARY 2014


14

TENDERS

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

NATURE OF WORK: Provision of catering services. COST OF TENDERS: ($) 55 Last date of submission: January 14, 2014

TENDERS

NAME : Ministry of Electricity &

All the latest tenders information you need to know about

Diplomatic Area

Water (Bahrain) ADDRESS : King Faisal Street, CITY : Manama Postal/Zip Code : 2 COUNTRY : Bahrain PHONE : (+973) 1754 6666 / 1799 Cost of tenders: ($) 6888 FAX : (+973) 1753 3035 WEBSITE: http://www.mew.gov. bh NATURE OF WORK: Provision of Canteen services. COST OF TENDERS: ($) 40 LAST DATE OF SUBMISSION: January 29, 2014 NAME : Oman Air (S.A.O.C) ADDRESS : Oman Aviation Services Bldg. CITY : Seeb PC 111 Postal/Zip Code : 58 COUNTRY : Oman PHONE : (+968) 2451 9953 / 2451 9327 / 2451 9883 FAX : (+968) 2451 0805 EMAIL : ksami@omanair.aero WEBSITE: http://www.omanair. aero NATURE OF WORK: Provision of Catering Consumables. COST OF TENDERS: ($) 65

NEW TENDERS

COUNTRY : Saudi Arabia

FAX : (+966-1) 487 939

NAME: Council of Ministers

PHONE : (+966) 2545 7774

WEBSITE: http://www.riyadh.

General Secretariat (Kuwait)

FAX : (+966) 2542 2696

usembassy.gov

NAME : Oman India Fertilizer

ADDRESS: Seif Palace Bldg.,

WEBSITE: http://www.moh.gov.

NATURE OF WORK: Provision

Company (OMIFCO)

Gate No. 4

sa

of catering and decoration

ADDRESS : Oman India Fertilizer

CITY: Kuwait

Nature of Work: Provision of

services.

Complex, Sur Industrial Area

COUNTRY: Kuwait

catering services.

LAST DATE OF SUBMISSION:

CITY : Sur 411

PHONE: (+965) 180 0008 Ext.

COST OF TENDERS: ($) 800

February 2, 2014

     67

2501 / 2803 / 2348

LAST DATE OF SUBMISSION:

Fax: (+965) 2222 1417

February 3, 2014

NATURE OF WORK: Provision of

January 9, 2014

COUNTRY : Oman NAME : Kuwait University

PHONE : (+968) 2553 2000

ADDRESS : Building 119, 1st

FAX : (+968) 2556 2849

cleaning and hospitality services.

NAME : Embassy of USA (Saudi

Floor, Khalidiyah

EMAIL : omifco@omifco.com

Cost of tenders: ($) 2145

Arabia)

CITY : Safat

WEBSITE: http://www.omifco.

Last date of submission: January

ADDRESS : Abdullah Ibn

     5969

com

12, 2014

Hudhafah As Sahmi, Safarat,

COUNTRY : Kuwait

NATURE OF WORK: Provision of

CITY : Riyadh 11693

PHONE : (+965) 2498 4271

Catering Services.

NAME : Makkah Health Affairs

Postal/Zip Code : 94309

FAX : (+965) 2484 8648

COST OF TENDERS: ($) 260

(Saudi Arabia)

COUNTRY : Saudi Arabia

EMAIL : info@kuniv.edu

LAST DATE OF SUBMISSION:

CITY : Makkah

PHONE : (+966-1) 488 3800

WEBSITE: http://www.kuniv.edu

January 20, 2014

JANUARY 2014

hospitalitybusinessme.com


15

TENDERS

NEW & CURRENT PROJECTS

includes (240 Nos.) residential

COUNTRY: UAE

STATUS: New Project

NAME: W Hotel & Residences

towers, (1,200 Nos.) villas,

CONSULTANT: Arif & Bintoak

NAME: Wafra Seef Development

Development Project - Palm

     

Consulting Architects & Engineers

Project

Jumeirah

clinics, mosques, commercial

(Dubai)

DESCRIPTION: Construction of

district, schools and municipal

CONTRACTOR:

Development

a hotel comprising (360) rooms,

buildings.

United Engineering

CLIENT: Rayadah Investment

Construction -

buildings with (75) luxury

Company (Saudi Arabia)

UNEC (Dubai)

275m

of Wafra

including two other apartment units.

COUNTRY: Saudi Arabia

 

  

new food and

CLIENT: Al Sharq Investments

CONSULTANT: KEO International

273,000,000

Project â&#x20AC;&#x201C; Dubailand,

entertainment

(Dubai)

Consultants (Saudi Arabia)

STATUS: Current

COUNTRY: UAE

STATUS: New Project

Project

NAME: Madinat Jumeirah Resort

NAME: Ayla Grand Hotel

where they can dine, meet

DESCRIPTION:

Dubai, UAE

CONSULTANT: RMJM (Dubai)

Seef scheme comprising a

destination offering patrons a gathering place

STATUS: New Project

Development Project - Phase 4

Construction Project

and mingle, while enjoying the

NAME: Mixed-use Towers Project

DESCRIPTION: Development of

DESCRIPTION: Construction of

breathtaking views of the Arabian

- Lusail District

a resort hotel comprising (435)

a 5-star hotel comprising 225

coastline.

DESCRIPTION: Construction of

rooms with (400) parking bays,

rooms.

CLIENT: Wafra Real Estate

two mixed-use towers comprising

three specialty restaurants,

Nael & Bin Harmal Group (Al

(Kuwait)

a 35-storey building, including a

lounges, bars, business centre,

Ain)

COUNTRY: Kuwait

      

swimming pools and a turtle

COUNTRY: UAE

CONSULTANT: Gensler

and apartments; and a 27-storey

lagoon.

Shankland Cox Ltd. (Al Ain)

Associates International (USA)

   

 

CLIENT: Jumeirah International

CONTRACTOR: Nael &

STATUS: New Project

and other commercial uses.

(Dubai)

Bin Harmal Hydroexport

CLIENT: Real Estate Services

COUNTRY: UAE

Establishment (Al Ain)

NAME: Al Habtoor City Project

Group (Qatar)

CONSULTANT: Mirage Mille

 41,000,000

DESCRIPTION: Construction of

COUNTRY: Qatar

Leisure & Development

STATUS: Current Project

Al Habtoor City comprising three

CONSULTANT: Hill International

(Dubai)

Middle East Ltd. (Qatar)

STATUS: New Project

luxury residential towers, including NAME:      

multi-level penthouses, in addition

Dubailand

to three hotels, a 1,400-seat Las

NAME: Kempinski Hotel Project -

DESCRIPTION: Development of a

       

The Wave Development

residential village comprising (65)

large basement levels, ground and

NAME: JW Marriott Hotel

DESCRIPTION: Design and

villas, (102 Nos.) four-bedroom

mezzanine levels and a large car

Construction Project - Bahrain

   

 

townhouses and a number of two-

park.

 275,000,000 STATUS: New Project

Bay Waterfront

Kempinski Hotel

Development DESCRIPTION: Construction of 50-storey JW

300m

bedroom apartments, including a

CLIENT: Al Habtoor Group L.L.C.

comprising

community center, open spaces

(Dubai)

(309) rooms

along with additional amenities

COUNTRY: UAE

and (77) hotel

such as a gymnasium, swimming

CONSULTANT: Khatib & Alami

apartments.

pool and a few retail outlets.

Consolidated Engineering

Marriott Hotel on

Kempinski Hotel

CLIENT: The Wave

CLIENT:   

Company (Dubai)

 

  

Project - Oman,

Muscat S.A.O.C

(Dubai)

CONTRACTOR: Al Habtoor

(Oman)

COUNTRY: UAE

Leighton L.L.C (Dubai)

COUNTRY:

CONSULTANT: HAO Architects

 3,000,000,000

storey podium,    



Muscat

Oman

of underground

(Dubai)

parking.

CONTRACTOR: Carillion Alawi

 275,000,000

CLIENT: Remza Investment

L.L.C (Oman)

STATUS: New Project

Company (Bahrain)

 300,000,000

COUNTRY: Bahrain

STATUS: Current Project

CONSULTANT: Yousif Dawood Al

NAME: Current Project DESCRIPTION: Mall of Egypt Project

NAME: Galleria Mall Project

CLIENT: Construction of Mall of

- Msheireb Development -

Egypt comprising (380) stores

Sayegh Consultants (Bahrain)

NAME: Dragon Mart Expansion

Downtown Doha

along with associated retail and

STATUS: New Project

Project

DESCRIPTION: Construction of

entertainment facilities.

DESCRIPTION: Carrying out

a new Shopping Mall comprising

Majid Al Futtaim Group

NAME: Mixed-Use Development

expansion of Dragon Mart by

approximately (100) stores set

(Egypt)

Project - Obhur District

building 160,000 square metres of

across four levels of shopping

COUNTRY: Egypt

DESCRIPTION: Design and

retail space, including a three-

and entertainment space.

CONTRACTOR: Orascom

construction of a 2.4 million

star hotel and multi-storey car

CLIENT: Msheireb Properties

Construction Industries (Egypt)

square metre mixed-use

park.

(Qatar)

 800,000,000

development in Obhur, which

CLIENT: Nakheel PJSC (Dubai)

COUNTRY: Qatar

STATUS: Current Project

hospitalitybusinessme.com

JANUARY 2014


16

DATA

GLOBAL DATA: SNAPSHOT

Data provided by STR Global, November 2013 with YoY comparisons. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage US by region Region

% change: Room construction November 2012 vs 2013

Total Pipeline (rooms) November 2013



+123.6%

42,371

Mountain

+37.9%

37,066

West (other)

+95.2%

72,776

East (other)

+38.6%

46,990

Atlantic

+107.5%

140,399

MEA â&#x20AC;&#x201C; by country - under construction

UAE

18,057

Algeria

Saudi Arabia

Qatar

Egypt

Jordan

4,944

3,144

Morocco

16,666

2,931

2,287

2,071

rooms

rooms

rooms

rooms

rooms

rooms

rooms

Total stock: 118,820 rooms / 490 hotels Caribbean/ Mexico by country

Europe â&#x20AC;&#x201C; by segment

YoY % change

Pipeline rooms

Haiti

+60.3 %

644 rooms

Bahamas

+19.3 %

2,692 rooms

32,013

Turks and Caicos Islands

+18.3 %

545 rooms

N/A

28,635

Saint Kitts/Nevis

+15.5 %

245 rooms

136,032 rooms

813 hotels

Total stock

24,083 rooms

143 hotels

YoY % change

Pipeline rooms

Luxury

-18.9%

9,149 rooms

Midscale

-12.95

7,232

Upscale

+3.5%

Independent Total stock

     28,907 rooms

Central/South America â&#x20AC;&#x201C; by segment

Upper Upscale segment 91 hotels

26,048 rooms

Upscale segment

23 hotels

3,838 rooms

    

144 hotels

22,271 rooms

20 hotels

2,560 rooms

Luxury segment

70 hotels

20,115 rooms

Upper Midscale segment Total pipeline

13,120 rooms

82 hotels

Total pipeline

590 hotels

120,710 rooms

Upscale segment

134 hotels

JANUARY 2014

hospitalitybusinessme.com


18

DTCM

World Hospitality Championship winners revealed Event to return January 2015 The prestigious World Hospitality         of AED6 million as prize money to contestants and winners across all categories. The three-day DWHC, organised by Zaâ&#x20AC;&#x2122;abeel Palace Hospitality under the directive of His Highness Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai, was held at the Dubai World Trade Centre.           two new records and the breaking of an old one in the Guinness World Records. The worldâ&#x20AC;&#x2122;s largest serving of Aseeda         mosaic that displayed Dubaiâ&#x20AC;&#x2122;s logo for Expo 2020 were the new records created at the event. Dubai also broke Thailandâ&#x20AC;&#x2122;s record for the largest pickled vegetable selection. The inaugural DWHC awarded daily Gold, Silver and Bronze accolades to the top winners in the International and Emirati Competitions. The closing ceremony of the Dubai World Hospitality Championship saw Dubai winning the Gold Award in all four categories of the Emirati competition, while Sharjah picked up the Silver Award and Ajman the Bronze Award. In the International Competition, the team from Singapore took the top spot by winning the Gold Award, while the US team came second, and the Australian team walked away with the Bronze Award. The Hospitality Sector competition saw Jumeirah Emirates Towers take Gold prize for cake decoration, practical ice carving skills, fruit and vegetable carving, and traditional Emirati cookery. Zaâ&#x20AC;&#x2122;abeel Palace Hospitality was recognsed for its cake decoration, open

Winning Singapore team.

        dinner, Arabian wedding feast, practical ice carving, and Emirati cuisine. Other winners included: t    !   " !    wedding cake t Sea Palace, second prize, three-tier wedding cake t Nad Al Sheba Private Club, third place, three-tier wedding cake t Burj Al Arab, Abela & Co LLC and Taj t Palace Hotel, winners, pastry category t Al Murooj Rotana, Burj Al Arab and Fujairah Rotana Resort and Spa, Gold, chocolate carving t #   !  !      $ carving t Nad Al Sheba, Gold prize, open showpiece. t %  !       meal t Jumeirah Emirates Towers & Burj Al Arab,

Gold prize, practical ice carving t Westin Dubai Mina Seyahi, superior skills, practical fruit and vegetable carving t Coral Deira and The Cove Rotana Resort Ras Al Khaimah, traditional Arabic Mezzeh preparations Participating hospitality and government sector organisations that were honoured included Meydan Hotel, Ginox, Convotherm, Dubai Municipality, Dubai Department of Tourism and Commerce Marketing, Dubai Media Incorporated, #$ '  () ! #$ *'+!    

 

    Emirates, the Dubai Culture and Arts Authority, the Community Development Authority, Aswaaq, Union Cooperative Society, Zaabeel Palace Hospitality, and members of the UAE media that extended their support from the inception of the culinary championship.

â&#x20AC;&#x153;We are thrilled at the extensive national and international participation that the championship attracted. The event brought together more than 10,667 gourmets and visitors and the talent and teamwork we witnessed raised the benchmark for excellence in the culinary sectorâ&#x20AC;? His Excellency Ahmed bin Hareb Al Falahi JANUARY 2014

hospitalitybusinessme.com


19

DTCM

Expo2020: Behind the hype The buzz is back and the world is watching. Adding substance to the blanket predictions of market growth from Expo2020, His Excellency Helal Saeed Almarri comments on the remarkable story of a young city and nation Gathered in Paris, France, for the 154th Bureau International des Exhibitions (BIE) General Assembly, representatives of the 168 BIE member nations voted on bids from the final four contenders – Dubai, Brazil, Russia and Turkey – to host the 2020 edition of one of the world’s oldest, largest and most significant international mega-events. Dubai’s bid themed ‘Connecting Minds, Creating the Future’ - won with 116 votes, in the final round, with Russia gaining 47 votes Speaking from Paris, shortly after Dubai was announced as the winning host city for Expo 2020 at the final vote counting in Paris on November 27, His Excellency Helal Saeed Almarri said: “Hosting Expo 2020 is a once-in-alifetime opportunity and one that will be maximised to accelerate the growth of the tourism industry in Dubai, the UAE and the wider GCC region.” He added: “The legacy of holding such an event in Dubai is where the real value lies. A wide range of sectors will benefit further strengthening their already robust positions. The announcements made at the recent Dubai Airshow demonstrate the extraordinary strength of the aviation sector in Dubai and the UAE and Retail has been one of the leading drivers of the Emirate’s economic growth to date. With regards to hospitality, the expanded hotel portfolio will be vital to ensure the demands of the Expo visitors are met and DTCM will work with our partners in both government and the private sector to put in place the infrastructure and processes needed to meet the demand of the 25 million expected visitors over the Expo period.”

STATS

25m

visitors expected October 2020 – April 2021

hospitalitybusinessme.com

70%

of predicted Expo visitors will be from outside the UAE

80,000 $7.2bn hotel rooms required, according to data from MEED

JANUARY 2014

hotel development investment required


20

63(&,$/)($785(Ç&#x2013;,7

Technology is bridging gaps between people, places and

I

f there is one trend that has        age, it has been the breaking of                                                                    

     !             " #          $             $        %&!   '           (  )  * +  -& .%         & * / '                     passports scans,          enhance the check 0     #         %   

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A receptionist will interact much more naturally with a guest when carrying an iPad, rather than when they have the barrier of a front desk

Guest optimisation #        

JANUARY 2014

Kempinski MOE COI, Prasanna Rupasingh.

                    

 6-%4         $      

   ; )  1 $         processes, and an adoption of kiosk and            3                         10 82#        

hospitalitybusinessme.com


21

    

concepts, but could it ever replace the reception desk?

AICR Dubai chapter president, Fabien Schmittmann.

FoH manager, Marriott Marquis, Darin Davies.

F1Infotech business unit manager, Georges Linu.

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hospitalitybusinessme.com

JANUARY 2014


22

63(&,$/)($785(ǖ,7

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JANUARY 2014

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Service within Reach


24

63(&,$/)($785(Ç&#x2013;%287,48(+27(/6

Hotel name: QT Sydney Location: Market Street, Central Sydney Years in operation: Opened September 2012 Guest rooms: 200, in 12 styles Average occupancy: 90% Drawing its magic from the stage and screen, QT Sydneyâ&#x20AC;&#x2122;s days as a theatre may be over, but its ability to entertain is far from. The designer boutique hotel, a member of GHA and one of four properties across Australia, is unique from start to        

      custom mannequins lining hall ways. If that doesnâ&#x20AC;&#x2122;t impress you, check the minibar for your emergency bowtie.

Inspirational hotels Underwater hotels and fashion house collaborations arenâ&#x20AC;&#x2122;t the only things that can make a hotel stay memorable. Hospitality Business      

            



 All images provided by individual hotels

JANUARY 2014

hospitalitybusinessme.com


        

Hotel name: The Singular Location: Puerto Borie, Chilean Patagonia Years in operation: 2 Guest rooms: 57 Average occupancy: 50% This former cold storage and meat processing plant is located on a road that literally leads to the end of the world, towards the southern-most tip of Chile.

25

Still surrounded by its original farmland, the   

      lined to one side with the mountains that lead to the Torres del Paine National Park and to the other, Magellan Strait. Today a TripAdvisor favourite, guests             1911, as â&#x20AC;&#x153;magicalâ&#x20AC;?.

Hotel name: ICEHOTEL Location: Jukkasjärvi, 200km above the Arctic Circle Years in operation: 3 Guest rooms: 65 Average occupancy: 100% Not just a hotel, ICEHOTEL is listed as a work of art and its structure is protected under the Swedish Copyright Act. ICEHOTEL, also the founder of ICEBAR, is constructed annually and covers an area roughly 5500sqm, which requires 1000 tonnes of ice. More than 50 people are involved in each build and each winter season can see anything up to 50,000 people visiting on day trips or to stay in the hotel. Some even get married: With its own onsite ICE church, the hotel hosts around 100 wedding ceremonies annually.

hospitalitybusinessme.com

JANUARY 2014


26

63(&,$/)($785(Ç&#x2013;%287,48(+27(/6

Hotel name: Attrapâ&#x20AC;&#x2122;RĂŞves Location:     locations Years in operation: 3 Guest rooms: 15 bubbles Average occupancy: 81% Cashing in on a property bubble of a            poetic and sensory bubble experience through the installation of design and           ! "#  $ !&'  

 founded in 2010, bubbles are available in   !  !! their own telescope.

Hotel name: Karosta Prison Hotel, Latvia Location: Leipaja, Latvia Years in operation: 11 Average occupancy: 80% Now an independent cinema and hotel, the $ ! (   )   

 *  the chance to live as convicts, in hotel rooms so simple they would give the Easy Hotel a run for its money. The experience is so authentic, overnight guests are required to sign a release form before they are sent to their iron prison room and served food true to the Karostaâ&#x20AC;&#x2122;s original gruel. Not just a magnet for incarceration aficionados, the hotel also attracts its fair share of ghost hunters who visit to experience the morbid execution rooms.

JANUARY 2014

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28

SUPPLIES & SERVICES

SUPPLIES & SERVICES

The worldâ&#x20AC;&#x2122;s most useful and innovative new designs, delivered to you, every month

Duravit marks awards success

Solutions to make a noise about

In 2013, German bathroom furniture designers and manufacturers Duravit received no fewer than 14 design " $# "

  Design Council. In addition to the new ranges, DuraStyle and Happy D.2 (pictured), the SensoWashÂŽ showertoilet and Inipi B compact sauna, the St. Trop steam shower and the OpenSpace shower enclosure were all prize winners. OpenSpace, the innovative space-saving solution by EOOS, received the iF Award in Gold (2013) and the red dot ÂŤBest of the BestÂť (2012). The Kiora Z kitchen sink was also commended.

Permanent and temporary solutions have been added to Echo Barrierâ&#x20AC;&#x2122;s noise reduction range, capable of achieving noise reductions of 9dB. NoiStop, a fence that can be used to surround temporary or permanent sources of noise disturbances, has been designed with water resistant and UV sustainable stone wool. The noise absorbing and noise reducing properties make it ideal for use within a domestic setting, protecting the    

     from passers-by.

Rosewoodâ&#x20AC;&#x2122;s Atrio bathing Rosewood Abu Dhabi has enhanced its luxury guest touches with the installation of the GROHE Spa collection throughout each of the hotelâ&#x20AC;&#x2122;s 189 guest rooms and its health and beauty centre, Sense. Taken from the Atrio range, the modern designs were selected for their low maintenance requirements facilitated            !" # by memebers of the team during a visit to Groheâ&#x20AC;&#x2122;s headquarters in Dusseldorf, Germany.

JANUARY 2014

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SUPPLIES & SERVICES

Partnershipâ&#x20AC;&#x2122;s hospitality designs

Stepping up LED applications

Global architecture, design, planning and engineering * 526      //!7//!$  0 York and Shanghai to create a new hospitality design *( :     ;   

    the Rosewood Abu Dhabi Hotel and Residences in Abu Dhabi, UAE; the Doha City Centre Hotels in Doha, Qatar; Intercontinental Aqaba Beach Resort in Aqaba, Jordan and others. HOK alone has worked on 125,000 hotel rooms globally, incorporating creative space planning ideas, proven sustainability strategies and innovations in security and technology HOKâ&#x20AC;&#x2122;s hospitality group is now led by Julia Monk, AIA, IIDA, LEED AP, in Shanghai, Christina Hart, ASID, IIDA, LEED AP, in New York, and Randa Tukan, IDC, LEED AP, in Toronto.

Global lighting and carpet manufacturers Philips and Desso are to develop a light emitting carpet, by integrating LED technology into new surfaces. Promising to â&#x20AC;&#x153;transform the way people interact with information and environmentsâ&#x20AC;? the breakthrough is being hailed as a new dimension for interior design. The light transmissive carpet solution is designed to engage directly with peopleâ&#x20AC;&#x2122;s senses and the eyesâ&#x20AC;&#x2122; natural inclination to seek out light and takes  

       

 when moving through and interacting with space. The

           

29

Atlantis implements social media booking widget Flagship Dubai hotel, Atlantis, The Palm, is to implement Table4MEâ&#x20AC;&#x2122;s online and social media supported, 

#      + "-  ' / 0  "* 2  0 /  newly opened Yuan. )    -       book tables on its mobile site, Facebook, Twitter and the hotelâ&#x20AC;&#x2122;s own website, following a two year trial of the technology. The Table4ME Facebook widget enables Atlantisâ&#x20AC;&#x2122; restaurants to take bookings 24 hours      * promotions and marketing campaigns to its fans and followers instantly. This booking widget is fully embedded within the platform it is used in, adopting the branding and look and feel of the resort.

hospitalitybusinessme.com

JANUARY 2014


30

EXPERT INSIGHT

L

ate last year, in an exclusive interview with Hospitality Business     CEO, Robert Gaymer Jones                

 ! " #  $ #        !%     $  $$  &  $   &  $     '()*  ! +$ -..##   #$     /$!"             /         /  ! "    !0    "1-   1201     $   0# '!34 5  6!'4!78

1201 $  )(!*4!

$ 1  $        #  $ $ $ 9! :

 8$$$     $  7      statistics with an increase of less than '(4#$ $! ;<          ! =  )64$$$>* $     $  # #0        $   ! 1$  ?   -8  0 7 @   $ !=   $ $$$  # A(4 D(4 #    3(4      6(4!@    $F "    # $ $$'()I! 8      #   0         K$   $L)!A     $'())!" F0 #       #   $      !

What happens on the global stage has an impact on hotels and as the world economy recovers ADR is slowly inching back to 2006 levels. But what will be the primary     performance in 2014 ?

JANUARY 2014

hospitalitybusinessme.com


31

EXPERT INSIGHT

Illustration by Christopher Howlett

             

      !" # " #$%  &  '   &   

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STATS

hospitalitybusinessme.com

2.9%

25%

43%

55,000

travel and tourism contribution to global GDP in 2013

of global travel and tourism sales generated online in 2012

of a survey listed location as most important for MICE venue selection

jobs per month created by the US travel and tourism industry

JANUARY 2014


32

EXPERT INSIGHT

MARKET IMPACT

CARBON CALCULATORS Gerard Hotelier, VP operations ME, Mรถvenpick )    "   

      

     &$(" <       " Green Globe hotel chain with all our   ;     "  -$2 consumption similarly to

  = 

   



 the carbon footprint of their trip,  "        ,  ! :     

5>?        "   number of healthy menu options now

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ARAB SPRING LEGACY IN EGYPT AND SYRIA

     "" #$%&   %'(   )   "      " !     "   



           of a hopeful start to 2014 in " 

    +  the same level of popularity   )"

WORLD CUP 2022 BACKLASH

    , 

 

 !  !   - " in the balance on several occasions last year, as Human /"      3

     565     

 too hot to play football in July





AUSTRALIA ON TOUR John Paul Kavanagh, GM, Sheraton Mall of The Emirates       

        

      

   

 

            

  

 

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  "    

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   "    6#$%& -  ? A 

#$%B  

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  "    the new rules of business as     

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JANUARY 2014

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EXPERT INSIGHT

NEW WEALTH

John Vanderslice, global leader, Waldorf Astoria and Conrad                 ;   

  %  !1 >   #          0   %   +       +    ?)  %    + 0      +      %     0    @ %        

             0  %         & 0 4  1

     

           

EMOTIONAL LUXURY

EXPO2020 &  $0 .(.(         1             0 

2       &

 3    4    5 4  '6(             '()       %# 

          

2          

   DUBAI WORLD CENTRAL   .('*    &          1   2     !    477  8         $        .(.( DIGITAL CONCIERGE AND THE RISE OF   9                of luxury travellers are also more  ; &     has left the luxury hotel sector   <   

        +            8 7+   =               travellers to let hotels store their          

Andrew Abram, GM, Raffles Dubai .('*  1    

  >      

    8     $ '*(((( A   .(',                    0    

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          1 '.              C    ; &             &           4                    &      $   0   8B     

INCREASINGLY INTERNATIONAL

Timur Ilgaz, GM, Al Ghurair Rotana .(',               0                                           0    $  >         477      

  $       8  D        

        

    

JANUARY 2014

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36

EXPERT INSIGHT

2013â&#x20AC;&#x2122;S TOP STORIES

LOCAL TALENTS Andy Heath, AON Hewitt     :)4M 

          :    ';M,

 !              :       )    N       O  :   

 :     :    :      (     %                            )    J     J      opportunities, so involuntary turnover is    !      : 

MARRIOTTâ&#x20AC;&#x2122;S PROTEA ACQUISITION TO DOUBLE AFRICA PORTFOLIO *  6  $.$78   

  9 9  ! 

ROTANA GOING GLOBAL   : (      ;  HILTON HITS 1M â&#x20AC;&#x2DC;LIKESâ&#x20AC;&#x2122; #    :  milestone PARAMOUNT HOTEL GROUP INAUGURATED       9' + ME TRAVEL LEADS GLOBAL AVIATION GROWTH < 

 =  ><= ? $--@  -.$-   2013 $1.9BN ONLINE TRAVEL VALUE FOR KSA, 2014 4  E$$8      -.$$ GLOBAL ADR RETURNS TO 2006 LEVELS <  -@ 9$-.$F     -.$WYNDHAM EXPANDS ON ME FOOTPRINT  7  ) :   TRYP set for Dubai â&#x20AC;&#x2DC;BEST HOTELâ&#x20AC;&#x2122; SCOOP FOR BURJ AL ARAB ;H " )<  I0J !  KERZNER KSA DEAL INKED # 4K4 L>    ?

RECIPROCATED PR Mark Willis, AVP, Rezidor Hotel Group There has been a shift in approach over the last 12 months from Dubai as a PR 

    

                                           !          "  !    GCC on the map for reasons other than

       #  $#%  & '   (           "        

          )*'+         ,! -.-- % +   *  " /0 $30/4

"                 $5.        "

  & '   "      



    

JANUARY 2014

      inventory of over 700 rooms across two     ! 7.@ :  

   !      )              !    ;

hospitalitybusinessme.com


Gerald Lawless President and Group CEO Jumeirah Group

Hospitality Business ME magazine The choice of the professionals To advertise please contact: Milos Kovacevic 056 235 6921 milos.kovacevic@cpimediagroup.com Read every monthly issue free of charge via: www.cpidubai.com


38

GM PROFILE

SHIP SHAPE

Kuwait Cityâ&#x20AC;&#x2122;s iconic maritime themed marvel, Radisson Blu, is open again after a three year, $53m refurbishment. GM Philippe Pellaud invites Hospitality Business to              

JANUARY JA ANU AN NU NUA AR ARY RY Y 2014 201 01 014 14 4

hospitalitybusinessme.com ho hos h osspit spit pittal aliliityb ybusi ussin nes ne e ssm es m me e.co om


GM PROFILE

39

W

hen it comes to the sentimental value of certain properties in a portfolio, few can combine as many milestones as Radisson Blu Hotel, Kuwait. Reopened in 2013 after a three year refurbishment, the hotel was not only the       

  when it opened in 1980 but was at that time managed by Kurt Ritter, the man who would steer the group to multi-brandglobal-operator status with more than 1,300 hotels in operation today. Closed for structural and interior renovations to the tune of $53m, Radisson Blu Kuwait reopened with        than 1,000 people in November 2013, following a two month soft launch period. Back under the supervision of GM Philippe Pellaud, who returned to the property after 15 years, the Kuwait City skylineâ&#x20AC;&#x2122;s oldest icon has further capitalised on the maritime theme    

  back in 1980, with the construction of a     ! Complementing the worldâ&#x20AC;&#x2122;s largest wooden â&#x20AC;&#x201C; Guinness World Record   "  #  

 hotel and home to a ballroom for up to 800 seated guests, the spacious and  

   %   views alongside the mod-cons expected of any other such facility. Although the largest element, itâ&#x20AC;&#x2122;s not the only addition to the hotel following a project that saw almost all of the propertyâ&#x20AC;&#x2122;s operations closed to the public for a considerable period. F&B options have grown to include Eedam CafĂŠ and '         Kuwaitâ&#x20AC;&#x2122;s most popular Chinese restaurant Peacock; which despite its extended closure has re-opened to a remarkable response from Kuwaitâ&#x20AC;&#x2122;s Chinese food   #       restaurant to capacity for two months. The guest rooms are decorated to three % #() #*  Relax, and NY Mansion House. They are complemented by the addition of six junior suits, 16 executive suites, six deluxe suites, *     +     /      cater to Kuwaitâ&#x20AC;&#x2122;s government-generated 

!    

hospitalitybusinessme.com

Views of the Sky Lounge, all day dining and GM Philippe Pellaud.

additional space created by the installation of the buildingâ&#x20AC;&#x2122;s new façade, and all feature three piece bathrooms. â&#x20AC;&#x153;The basic structure [of the building] has remained but every single piece of #4 

   #   new. You could say it would have been

JANUARY 2014

easier to demolish the whole thing and build a new hotel. For the price you could build a high rise tower,â&#x20AC;? relays Pellaud,  

 7    have easily extended to four years in light of the extensive structural work required on the 30 year old building. He


40

continues: â&#x20AC;&#x153;The plan was to complete design and procurement then close and do the reconstruction in one year â&#x20AC;&#x201C; that was a very challenging time frame and in that process we also realised that due to the hotelâ&#x20AC;&#x2122;s age it was encountering some structural problems, which caused a six month delay immediately,â&#x20AC;? he continues. Adding to the challenges, parts of the hotelâ&#x20AC;&#x2122;s facilities, such as Al Hashemi II and its smaller sister vessel and restaurant Al Boom remained open, as did outside catering services.    While the hotel has opened to overall        Pellaud reports the 194 room stock is plentiful enough for Kuwaitâ&#x20AC;&#x2122;s largely business market. Ensuring buoyancy of the segment, MEED reports that construction and development contracts to the value of $24bn are STATS forecast to be announced in the country over Construction    projects forecast the local leisure for Kuwait, market â&#x20AC;&#x201C; primarily 

domestic leisure driving business

   demand nationals visiting Kuwaiti family â&#x20AC;&#x201C; these contracts also include New airport a new $3.2bn project due airport terminal. However, the competition is heating up, with Renovation the latest opening project â&#x20AC;&#x201C; a 410 unit Jumeirah property â&#x20AC;&#x201C; taking the 5-star stock to seven. In Guests seated response, Kuwaitâ&#x20AC;&#x2122;s 

 

owners have 

 taken matters into their own hands. The local Ownerâ&#x20AC;&#x2122;s Hotel Rooms Association, KOHA, established a mutual agreement Kuwait room following the   rate collapse

$24bn

$3.2bn $53m 800 194

2000

GM PROFILE

of 1982, that protects member hotels from being unsustainably out-priced by equivalent properties. Faced with increased competition and the threat of another rate war, the hotel owners are poised to protect their interests. However, KOHAâ&#x20AC;&#x2122;s strength is dependent         of new stock expected, that could soon be undermined. â&#x20AC;&#x153;There are another 2,000 rooms in the pipeline and those owners will not necessarily be part of KOHA. Thatâ&#x20AC;&#x2122;s a natural process. The market force is evolving and we have to adapt,â&#x20AC;? Pellaud says of the uncertainty of the changing landscape. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not predicting how it is going to go but everybody knows the potential reality. Itâ&#x20AC;&#x2122;s on the table for discussionâ&#x20AC;Ś. the interesting part is that even with low occupancy the association has ensured the rate has always been on top.â&#x20AC;? When fully open, Radisson enjoys a typical 50/50 split between room and F&B revenues, but due to the current popularity of Peacock, Al Hashemi II and Al !       "# Continuing to capitalise on its position as the business brand of choice, MICE revenue is strong and Radisson concepts such as Experience Meeting and ad hoc    %    '() * and free WiFi) have added strength to the hotelâ&#x20AC;&#x2122;s draw for corporate accounts.

!    6 %    seconding others for short term positions and facilitating retirements where necessary. â&#x20AC;&#x153;We have been able to avoid terminations as much as possible. The owners were very concerned about the issue and personally requested we take care of the employees, some of whom had been with us from the start,â&#x20AC;? Pellaud shares. Notching up 30 years in the local market, it is now a new generation of staff and guests who are welcomed through Radissonâ&#x20AC;&#x2122;s doors. He continues: â&#x20AC;&#x153;When we go to our key source markets we are now recruiting the children of previous employees and my childrenâ&#x20AC;&#x2122;s friends who have grown up here are now our new customers.â&#x20AC;? Pellaud began witnessing the generational shift first hand when he joined the hotel in 1992, serving as GM for three years, he left in 1995 to open a further 15 Rezidor hotels across Europe and the Middle East, returning to Kuwait in 2010 to oversee the capitalâ&#x20AC;&#x2122;s extensive renovation project. *(    ) Pellaud says the focus will be on retaining the key corporate accounts and tempting back the accounts forced to other hotels during the closure â&#x20AC;&#x201C; a prospect he finds far from daunting in light of the new look aesthetics and ever improving services. He concludes: â&#x20AC;&#x153;The hotel facilities are much the same, but the challenge was to reopen and be as good, if not better, than before.â&#x20AC;?

You could say it would have been easier demolish the whole thing and build a new hotel

!! " # During the renovation period, due to the continued operation of select F&B and club services, Radisson was able to

JANUARY 2014

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42

ROUNDTABLE

From left: Friedrich Schaefer, regional director, sub-Sahara Africa, Rezidor Hotel Group; Michael Rathgeb, GM Radisson Blu Waterfront, Cape Town; Stanislav Kondov, GM Radisson Blu Anchorage Hotel Lagos; Hans Peter Duerr, GM Radisson Blu Okoume Palace Hotel, Libreville.

JANUARY 2014

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43

ROUNDTABLE

LAND OF OPPORTUNITY? With wealth to drive business guests and unequalled natural beauty for the tourist Hospitality Business ME gathers Rezidor Hotelsâ&#x20AC;&#x2122; top GMs from across the continent to talk access, market mix and future plans

G

lobally, the Rezidor Hotel Group, a member of the Carlson Rezidor Group has a portfolio of 430 hotels in operation and under development, comprising more than 95,000 rooms across more than 70 countries. This yearâ&#x20AC;&#x2122;s openings and signings saw another country added to the portfolio,      

  in Algiers, Algeria. The 137 room property is due to open Q1 2015. In North Africa the group also recently opened the 274

room Radisson Blu Resort, Tunisia. Across Africa, Rezidor has 51 hotels, comprising more than 11,300 rooms in operation or under development. Rezidor also boasts the largest pipeline of hotels under development in Sub-Sahara Africa, currently operating 12 hotels (3,000 rooms) with a further 22 (4,000 additional rooms) to be added, both under the Radisson and Park Inn brands. South Africa, Nigeria, Kenya are key focuses. And theyâ&#x20AC;&#x2122;re not the only hotel group with such ambition. In terms of the

next big thing, all eyes are on Africaâ&#x20AC;&#x2122;s hospitality market as a majority youth population and increased trade combine to present unparalleled opportunity. However, vast swathes of the continent         



 hotels due to visa restrictions and          themselves face unique issues ranging from the sourcing of every-day items, to the impact of local and continent-wide politics. So, whatâ&#x20AC;&#x2122;s its really like on the ground?

Everybody is talking about Africa but how does that compare to the first hand experience of operating a hotel there? FS: We have 12 hotels in operation in the sub-Sahara division and for us it is a key focus market to develop. We see South Africa, Nigeria, Kenya, as potential markets for the future. We have currently six hotels in South Africa and we are opening two more Q1 2014, one Radisson and one Park Inn and we have others in the pipeline also. The second biggest markets for us is Nigeria, where we have Lagos in operation now and we are opening a Park Inn in Abeokuta, which is a conversion project. We have further projects in Port Harcourt, Abuja and we are looking at other secondary cities also. We have two projects in Nairobi, Kenya, with a Radisson opening 2014 and a Park Inn

opening 2015. We have a Park Inn project in Rwanda and are looking at Addis Ababa, Ethiopia. Why is this a focus area for us? Because over the last 10 to 15 years, these countries have stabilised politically and many are moving into democratic systems. There is huge wealth with oil, gas, timber and minerals and if you look at the demographics we have a very young workforce; the average age in Nairobi is 24, yet if you look at Europe, itâ&#x20AC;&#x2122;s around 60. There is a huge potential for us in operating hotels in these countries. SK: When you have a successful hotel      wealthy industries who want to invest in more. Rates are great, depending on the supply and demand, so far much higher than Europe, hospitality is now being

     

see that growth potential for themselves with brands like ours. Also, hotels are more than somewhere for visitors, they are very much part of the community and that is evident in the media coverage we receive from events at the hotel. But Africa is more challenging to operate in from an infrastructural standpoint. MR:     other markets in the region and since the World Cup has been much better established. We see great growth from South American countries, led by Brazil, and Asia, led by China, for example and these are now coming into South Africa. So there is much potential for South Africa in the future and it is seen as a very exotic destination. HPD: Gabon is more typical to the Sub Saharan Africa situation. It is dependent on oil, timber and other

hospitalitybusinessme.com

JANUARY 2014


44

ROUNDTABLE

mining industries, the visa process is complicated and administration         of tourism. The country is losing conferences for example because participants or speakers cannot get visas. The market is closed and businesses only                             There are only a couple of thousand leisure tourists in Gabon per year, the rest is business. The biggest driver for hotels is business, the government and     is not a free market and you see that in Angola and other such countries. SK: A strange situation in Africa is that      tourists. To apply for a Nigerian visa you                doesnâ&#x20AC;&#x2122;t make sense. Our leisure business is 0%. FS: What you do is focus on the

 !"#   

and then that evolves to open resorts in     $           at the moment it is corporate or business oriented. And the volume is there because you donâ&#x20AC;&#x2122;t have the huge supply of quality hotel products. We have a hotel in Tete, Mozambique, and the only reason          

  &        stay, but that has developed the market $     '(     In light of this, how do you drive volume? FS:$           )*'

Radisson Blu Waterfront, Cape Town, SA.

STATS

11,300

rooms operated by Rezidor a cross Africa

15

hotels operated in SubSahara Africa

JANUARY 2014

4000

rooms under development

480

hotels under development in MEA, Q3 2013 hospitalitybusinessme.com


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46

aspect is quite high in comparison to other markets, so from all levels from the GM to the DOS and customer relations, itâ&#x20AC;&#x2122;s about creating loyalty for people to use, and reuse, your product. Fortunately there are only two or three products so you do get the business because of the closed market situation. But good and consistent service is still incredibly important. You can go into hotels where elements are very poor or inconsistent in quality, but if people know they will be looked after and they can depend on this hotel, they will return. We also use a lot of marketing in our Club Carlson loyalty programme and they develop a marketing approach for each property and that is locally driven. HPD: As it is near on impossible to enter the country alone, all our focus is on that local market. You have to build relationships, maintain them and make a

ROUNDTABLE

          return to us and say the room was good but the food and service were not, so they will still book with us again. MR: The only time when we are looking for volume business is the winter months between June and September, so then we are looking at South America, Asia, India. The hotel is such an established property and we have a very strong standing.

consistent contribution to the market. We are a very local operator in this property. SK: Expatriates working in oil or mining for example, also need somewhere to go; they need somewhere for their visitors to stay and they need somewhere to entertain. Recently we had a hotel of double the size open next to us and when we are 100% full and have to decline,

JANUARY 2014

In terms of knowing where to operate, do you proactively look at where these industries are establishing, or perhaps look further back down the chain to preempt where the next business hub could be, or is your approach more reactive? FS: I would say itâ&#x20AC;&#x2122;s probably a mixture of both. In a lot of cases we are approached by owners who have land, or a building, or an idea and they approach us in order to know how to develop it. We then

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48

ROUNDTABLE

       the project, too, for example. SK: It makes it easier as well if you have a successful hotel as the owners will ask for another opportunity. Once youâ&#x20AC;&#x2122;re successful the appetite comes with the product itself. Itâ&#x20AC;&#x2122;s important to establish in a market, to show the commitment. How does under developed infrastructure â&#x20AC;&#x201C; in everything from communications to energy and transport â&#x20AC;&#x201C; affect your operations? HPD: Our leisure business is zero because although the government is trying to push tourism there is a distinct lack of infrastructure, so it doesnâ&#x20AC;&#x2122;t work. Weâ&#x20AC;&#x2122;re talking trains, air, hotels; nine beautiful national parks, no infrastructure. SK: And itâ&#x20AC;&#x2122;s not just the roads but the vehicles, too. In a hotel, you need to make sure you have generators, water   

  moment cause issues and when you have a hotel at 70 â&#x20AC;&#x201C; 80% average occupancy you cannot say you do not have chicken today, for example. There are certain things you cannot get anyway in Nigeria, but when standard goods donâ&#x20AC;&#x2122;t come

     them, outside of the normal means. If our competitor has proactively managed to source something from elsewhere, our business will go to them. FS: When it comes to the hard infrastructure, you have to look at the wider situation. Lagos has 22

   residents and the city grew so quickly the infrastructure did not grow with it. But how can you build that when you need to tear down buildings and close roads to make them bigger? There is an airport road project currently that has had to relocate thousands of people. It will come, but these things take time. MR: South Africa is quite well developed compared to the other countries on the continent. Where we do face issues is       no public transport.

RevPAR

YE11

YE12

Q1 13

North Africa RevPAR

-39.5%

6.4%

10.3%

Sub-Sahara Africa RevPAR

-7.7%

-1.8%

-0.2%

YE 2012

Occ %

ADR US$

RevPAR US$

Total

60

162

98

Middle East

64

204

132

N. Africa

52

85

44

S.S. Africa

60

132

78

YTD 2013

Occ %

ADR US$

RevPAR US$

Total

64

179

115

Middle East

72

224

162

N. Africa

48

85

41

S.S. Africa

62

136

84

Speaking in more detail now about staff, hotels from the Middle East regularly visit Africa in order to recruit your best young hoteliers â&#x20AC;&#x201C; how do you compete with what they offer? HPD: It is a problem. We employ some expatriate workers in management and the rest are local. They know they will        training and we do    been with the hotel for decades, even with its previous operator, so their ongoing training is vital. Competition    tight as there are only two international hotels in Gabon. There are 1.5m inhabitants, so itâ&#x20AC;&#x2122;s not a big market. FS:     Group they are employed for life. The important thing to do is to pay fairly and train well. We spend a lot of time,

  ! education and what you donâ&#x20AC;&#x2122;t want is for them to move to the next new hotel because they are paid a little bit more. There are travel opporutnities for them within Rezidor and there are

Our leisure business is zero because although the government is trying to push tourism there is a distinct lack of infrastructure

JANUARY 2014

secondments for good line managers in new properties. HPD: On the other side of that, the labour laws also very strict. Terminating the       ! issue, as there is so much documentation and legislation to consider itâ&#x20AC;&#x2122;s near impossible. Unfortunately I have come across instances in my career where the   " SK:#    which we have to check in advance. For example expatriate appointments for GM and other management positions are expensive, so we try to employ single expatriates, who donâ&#x20AC;&#x2122;t need family relocation, school fees, etc. You need $      helps to eliminate the local corruption, which is sadly unavoidable on many occasions. MR: I interview many candidates and the question is â&#x20AC;&#x2DC;how can I grow in this industryâ&#x20AC;&#x2122;. Many younger people see hospitality as an international career path, so we make sure that they grow within the Rezidor Group, but we canâ&#x20AC;&#x2122;t always retain them within South Africa. We are generally fortunate to have a supply of skilled labour and we are able to recruit directly out of the hospitality schools. We try to promote from within and weâ&#x20AC;&#x2122;re lucky that hospitality is seen as a career path and is the third largest industry after mining and agriculture.

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EVENTS

HOTEL & RESTAURANT BUSINESS CONFERENCE

Held at Habtoor Grand, Dubai Marina, CPI’s Hotel & Restaurant Business Conference set an industry agenda

C

PI, supported by the Dubai Government’s Department of Tourism, Commerce and Marketing proudly welcomed hundreds of delegates to last month’s Hotel & Restaurant Business Conference, at Habtoor Grand Hotel, Dubai Marina. The fourth edition of the conference provided an environment exclusively for leaders of the hospitality industry, to discuss trends and opportunities from the local to global market, while providing a platform for the industry’s experts to deliver knowledge, contacts and advice about challenges. Covering topics as diverse as spa management, revenue generating design and the impact of social media on social dining, the conference attracted GMs, operators, designers, chefs and F&B directors to the two day event.

hospitalitybusinessme.com

JANUARY 2014

49


50

VP SPOTLIGHT

THIS IS AFRICA

                   ! "      "#  "     $ %    $   &MEA president and MD Alex Kyriakidis  #   '("                 

   

G

lobal fast-food giant McDonaldâ&#x20AC;&#x2122;s is yet to open a restaurant in Yemen. In France, Coca-Cola is barely even a top 10 brand. In Italy, a country whose espresso inspired it, there is no Starbucks. In 50 African countries, Marriott International is unknown. While the publically traded US operator has more than 680,000 rooms globally, and a reputation for record-breaking hospitality in the GCC, large swathes of the continent remain untouched, despite       35 years ago. This year begins of a new era of growth as Marriott sets its sights on a land mass with a population of one billion that is set to double by 2050.          with Protea Hospitality Holdings, Africaâ&#x20AC;&#x2122;s largest hotel operator will be part of the Marriott family, instantly boosting the companyâ&#x20AC;&#x2122;s portfolio to the tune of 10,184 rooms â&#x20AC;&#x201C; and 16,000 people â&#x20AC;&#x201C; while addressing the ultimate catch 21: How to maximise presence in a continent that is home to seven out of ten of the worldâ&#x20AC;&#x2122;s fastest growing economies, without becoming a victim of its intensely complicated development cycle. â&#x20AC;&#x153;I would say that Protea acquisition comes at a pivotal point in Marriottâ&#x20AC;&#x2122;s history in the MEA region,â&#x20AC;? adds MEA president and MD Alex Kyriakidis, who explains the signing comes outside of the traditional growth trajectory of the      

Cairo Marriott, Marriottâ&#x20AC;&#x2122;s first African property.

Arabic-speaking North African countries such as Egypt, where there is already a     !" upcoming hotels across Morocco, Tunisia and Algeria that contribute to a 24 property construction pipeline and will see growth in nine new countries in subSahara and southern Africa. But these projects are not the ones that will put Marriott on the map. The deal, with Cape Town-based Protea will see Marriott acquire all three of Proteaâ&#x20AC;&#x2122;s brands â&#x20AC;&#x201C; African Pride, Protea Hotels and Fire and Ice â&#x20AC;&#x201C; in the transaction and Protea Hospitality Holdings will create a property ownership company to retain ownership of the hotels it currently owns, while entering into long-term management and lease agreements with #    $%

JANUARY 2014

At closing Marriott would manage approximately 46% of the rooms, franchise approximately 40% and lease approximately 14%. Simplifying the deal he masterminded so an outsider can comprehend its sheer scale, Kyriakidis summarises: â&#x20AC;&#x153;Last month if any of our 42 million Marriott Reward members went online and typed in Cape Town there wouldnâ&#x20AC;&#x2122;t be a single Marriott. If they do that now they will get 15 hotels where they can also enjoy all of the Marriott Loyalty rewards.â&#x20AC;? In addition to the business forte the deal will bring, Kyriakidis has also eyed the intellectual muscle of Protea,    '" (    â&#x20AC;&#x153;one of the most respected hoteliers in    ) )  able to support owners in a market where

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51

VP SPOTLIGHT

If the question is would I rule out another acquisition in the futureâ&#x20AC;Ś Absolutely not. But the immediate priority is to make this a success.

   

JANUARY 2014


52 2

VP SPOTLIGHT

the usual â&#x20AC;&#x201C; and necessary â&#x20AC;&#x201C; logistics are not always present. â&#x20AC;&#x153;If we did not do the Protea transaction we would have doubled in size in the next four years, so thatâ&#x20AC;&#x2122;s a growth of 20% per annum, which is pretty healthy and         because of India and China is also very exciting in its growth trajectory. â&#x20AC;&#x153;But with Protea it will achieve a      so we will have 24,000 operating rooms and between us close to 15,000 in the pipeline, and it will move us up the rankings in MEA: In Africa to number one and in MEA as a whole to number two.â&#x20AC;? Eyes on Alex Marking two years in the role this month, Kyriakidis was headhunted by Marriott International global president

/ 6     role with Deloitte LLP, to spearhead Marriottâ&#x20AC;&#x2122;s growth in the MENA region. 8 9  #    headhunted by Sorenson, is told with unexpected humility, and Kyriakidis recalls of the initial contact: â&#x20AC;&#x153;I honestly thought the conversation would        #; When Arne turned around and said they wanted me to do it, it didnâ&#x20AC;&#x2122;t take    & #   ;< 8  #    =    as a top global executive, he oversees all aspects of Marriott MEAâ&#x20AC;&#x2122;s business activities, including operations, sales

 &     development. Referring to his unusual entrance to one of the industryâ&#x20AC;&#x2122;s top posts, he comments: â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s interesting. I emigrated from Alexandria just before the Arab Israeli war at the age of 11 with my mother. We went to Plymouth, UK, where I was educated and I had an uncle who had a very successful restaurant, nightclub and hotel business. In order to support my mother with the housekeeping I started working there, totally illegally, from the age of 11!â&#x20AC;? What followed was a successful           that saw his initial industry exposure used to win and maintain hospitality accounts, moving up the ranks of Arthur Anderson and eventually to Deloitte. The rest, as they say, is history.

Blueprint thinking For a brand that is only now entering          the MENA region, the Protea transaction marks a sea change in the US companyâ&#x20AC;&#x2122;s largely organic approach to growth. While !   "    

        a vast and intrinsically complicated   ##$#  &     the numbers. When he joined Marriott International in the newly created role of MEA president and MD, appointed to lead growth in a region that previously had no formal leadership structure, he says the  "  '(   we be focussing our development dollars and why?â&#x20AC;?

That was two years ago this month and he, as an analyst is inclined to do and along with supporting teams, has been researching all 70 countries within the MEA jurisdiction in order to prioritise their potential through stringent examination of the drivers that fuel business and leisure demand for tourism. These include the buoyant domestic and regional travel market, which unlike that of other continents far outstrips the strength of the international inbound market. Referring to the â&#x20AC;&#x153;mindblowing demographicsâ&#x20AC;?, he comments: â&#x20AC;&#x153;I felt it was time to leapfrog and as part of the strategic review I did with the team here  )*       potential MEA target.â&#x20AC;? Not only will the current one billion population have doubled by 2050, but 300m of those people will belong to a socially mobile middle class. In addition, ongoing infrastructure developments and economic strength have helped to stabilise often fragile political situations. â&#x20AC;&#x153;This is the blue print and it said to us that there is a pent up demand in most of the countries in sub-Sahara and southern   +             +  therefore this is a situation where we can  #      #   or leapfrog. But itâ&#x20AC;&#x2122;s much more than that. Itâ&#x20AC;&#x2122;ll be a catalyst to our own brand growth in Africa.â&#x20AC;?

Proteaâ&#x20AC;&#x2122;s smallest brand, Fire and Ice, South Africa.

TOP TOURIST ARRIVALS, AFRICA 2012

9,375

9,188

5,950



  

  

JANUARY 2014

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SRL

amenities around the world

PACKING90 S.r.l. - ITALY www.packing90.it ki 90 i - info@packing90.com i f @ ki 90


54

Previously, that growth was encapsulated in the extended stay segment, a drive which vice president and global brand manager for Marriottâ&#x20AC;&#x2122;s Residence Inn, Diane Meyer, promoted heavily during ATM 2013. Then, projections dedicated 60% of that brandâ&#x20AC;&#x2122;s MEA room inventory by 2020 over the luxury-focused Marriott Executive Apartments, and Residence Inn on the quality tier. For owners of such properties, the margin can be as high as 65%. Under the evolving plans, extended stay will increasingly be co-located with short stay brands, further maximising returns, and Kyriakidis promises announcements on new developments under the combination model this quarter, which form part of the MEA2020 strategy. Challenging times Despite the promise Africa holds the threats and challenges cannot be ignored and with the rationality one expects from a man of Kyriakidisâ&#x20AC;&#x2122;s education and       

admit the concerns. In the wake of the Westgate Mall siege less than six months ago, who could argue otherwise? From the prominence of dictatorships         

end, Africaâ&#x20AC;&#x2122;s promise is a double edge sword and for every area of opportunity at least one pitfall appears. From the provision of 24 hour power to the more complicated issue of sourcing even the most basic of equipment, services and foods. Every hotelier in the region is acutely aware of the ongoing turmoil from the Egyptian Arab Spring, the worsening situations in Somalia, national and personal security issues in

VP SPOTLIGHT

Kenya, the list continues. Ask Kyriakidis for a critical evaluation of the above and without hesitation he           

geopolitics. Add to it an emerging threat of terrorism, with Al Qaida spreading its wings from Yemen to Somalia and southern Nigeria and that is always a concern, for everybody in the industry the world over.â&#x20AC;? Yet the blue print thinking soon turns to blue sky thinking and just as he credits the ability to execute the Protea transaction, in part, to the legacy of Nelson Mandela, he also pays tribute to other political gains that have been made over the last decade and the promise made by mineral and oil wealth. â&#x20AC;&#x153;Yes, those are the risks that lie ahead of us but there will always be bumps on the road and the picture supported by this economic wealth is positive,   

   

 

you take the three biggest economies by GDP, they are South Africa followed by Nigeria, followed by Egypt,â&#x20AC;? he continues of the synergy between the continent and companyâ&#x20AC;&#x2122;s growth, while crediting the political transitions of many of Africaâ&#x20AC;&#x2122;s 54 nations over recent years and highlighting the potential of Africaâ&#x20AC;&#x2122;s predominantly Gen X and Gen Y population. On track to surpass, let alone match, the MEA2020 growth objectives laid down to him upon appointment for 70,000 operating and pipeline rooms by 2020, Kyriakidis now looks ahead to proving the transactionâ&#x20AC;&#x2122;s value to the Marriott board, and winning the            

Who is Arthur Gillis? Arthur Gillis, has been with Protea Hotels since 1988 moving from group MD to CEO. The South African graduated from Johannesburg University School of Tourism and Hospitality     Advanced Management Programme at Cornell University, US. Since 1988, Gillis carried the out the role of group MD for Africaâ&#x20AC;&#x2122;s largest hotel group, Protea Hotels, and he is currently its CEO. Gillis is also a member of the Cape Town Chapter of the Young Presidentâ&#x20AC;&#x2122;s Association (YPO), which consists of chief executives who have attained positions of top leadership before the age of 40. Protea has twice been voted Africaâ&#x20AC;&#x2122;s Best Hotel Group at the World Travel Awards. The company has also won three South Africaâ&#x20AC;&#x2122;s Top Hotel Brand awards in the South African Sunday Times/ Markinor Top Brands Survey and two Coolest Hotel Group awards in the Sunday times Generation Next Awards.

will take â&#x20AC;&#x153;immediate focusâ&#x20AC;? over the coming six to nine months. â&#x20AC;&#x153;Immediately after the project transaction, we are in the three biggest economies in Africa, we have brand awareness and our mission is to convert that across Protea and Marriott and we are very excited about the opportunity,â&#x20AC;? he reports with equal excitement for the Middle East, as he adds â&#x20AC;&#x153;the Gulf for us is going gangbusters in terms of developmentâ&#x20AC;? and promises more big news this quarter. Of the months ahead of that, he shares: â&#x20AC;&#x153;We will then take stock of where we are, our growth will continue organically and if the question is would I rule out another acquisition in the futureâ&#x20AC;Ś Absolutely not. But the immediate priority is to make this a success. â&#x20AC;&#x153;The world is watching, the analyst community is watching and 2014 will be all about successful integration of Protea and Marriott. This is Africa.â&#x20AC;?

African Pride, South Africa, one of Proteaâ&#x20AC;&#x2122;s three brands.

JANUARY 2014

hospitalitybusinessme.com


56

INSIGHT

A GUIDE TO AFRICAN HOTEL INVESTMENTS

T

he vast continental market of Africa comprises 54 sovereign nations with a combined population of 1 billion people.  

  double by 2050, making it the youngest and fastest growing population in the world with lots of consumer potential. With almost 300 new hotels in the pipeline, and tourism having contributed $173bn to GDP in 2012, the travel and tourism sector in Africa is expected to grow by 5% per annum over the next ten years. Despite the seemingly obvious commercial opportunities, investors can          premium is often considered high. Africa of course is a diverse market across its respective nations, each with their own unique political and legislative frameworks. ANGOLA         law based legal system. A foreign entity seeking to invest and/or carry out hotel activities or management in Angola must    

     Angolan National Private Investment Agency. Once the foreign entityâ&#x20AC;&#x2122;s application has been authorised, licenses may then be obtained. Whilst Hotel Management Agreements are common in this country, there is a trend emerging towards operators and owners entering into Franchise Agreements. ETHIOPIA Ethiopiaâ&#x20AC;&#x2122;s hybrid legal system consists of features from the Anglo-Saxon common law system and the Roman based civil law system. Investment into Ethiopia can be made by an individual, a business organisation

Keri Watkins, legal consultant, DLA Piper Middle East on the legal         which is to be incorporated into Ethiopia, a share company, a private limited company, by a branch of a foreign business organisation in Ethiopia or by a         foreign investors. Ethiopiaâ&#x20AC;&#x2122;s Ministry of Culture and Tourism is aspiring to make its country one of the top tourist destinations in Africa by 2020. This is extremely encouraging for hoteliers seeking to expand into this market. NIGERIA The legal system in Nigeria has been     law and legal tradition. Accordingly, foreign investors are able to own 100% of their business. Another advantage is that hotel activities are not limited to operation by nationals only. There is a restriction on obtaining permits (such as business and residence permits) whereby these are granted to local entities only. The hotel market in Nigeria is corporate driven and there is currently a 7 star hotel under construction in Lagos. A mixture of Hotel Management Agreements and Franchise Agreements are currently in use. RWANDA Rwandaâ&#x20AC;&#x2122;s legal system is based on German and Belgian civil law systems and customary law. It is worth noting that Rwanda boasts the fewest procedures combined with the fastest processes in East Africa to register and start a business. Foreign companies are required to establish a subsidiary or to register as a foreign company in order to be able to operate in Rwanda. There are no legal restrictions on international hotel operators acquiring licenses

JANUARY 2014

and/or permits to operate, and Hotel Management Agreements are commonly used. In Rwanda, tourism became the countryâ&#x20AC;&#x2122;s leading foreign exchange earner in 2011. A second, bigger airport is currently under construction at Nyamata in the Burgesera district with a planned capacity of 3 million passengers per annum. SOUTH AFRICA South Africa has the advantage of a welldeveloped and formally regulated legal system which is a mix of English common law and civilian Roman-Dutch principles. It is a developed and lucrative market, being one of four countries in Africa to be ranked as an upper-middle income economy by the World Bank. South Africa is one of the worldâ&#x20AC;&#x2122;s fastest growing tourist destinations and tourism continues to be earmarked as a priority growth area in South Africaâ&#x20AC;&#x2122;s economic growth policies. With its winning combination of favourable demographics, an expanding middle class, rapid urbanisation and a rapidly evolving real estate market, Africa looks set to remain an attractive opportunity for developers, operators and investors in the hotel and leisure sector as it goes from commercial strength to strength.

DLA Piper has strong and comprehensive experience throughout the African continent through entrenched

 !  !     "     know if you have any queries relating to Africa.For more information, please visit www.dlapiper.com/africa or contact keri.watkins@dlapiper.com

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Hospitality Business Middle East - Issue 21, Jan 2014