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Page 1: middle east - HMI Online...middle east The Middle East is the fastest-growing market in the global hotel industry. By 2017, almost 500 major new projects will be launched that will

middle east

www.hmi-online.com

Event partner

Page 2: middle east - HMI Online...middle east The Middle East is the fastest-growing market in the global hotel industry. By 2017, almost 500 major new projects will be launched that will

middle east

The Middle East is the fastest-growing market in the global hotel industry. By 2017, almost 500 major new projects will be launched that will create more than 120,000 new rooms in the region. This explosive growth, driven by a surge in trade and tourism, is further boosted by $65 billion of development and investment in Qatar ahead of the FIFA World Cup. This extraordinary level of investment represents a golden opportunity for suppliers keen to seize their share of the market. Hotel Management International will be presenting a special report highlighting key developments and analysing the opportunities that exist in this burgeoning region.

The strength of Hotel Management International is its reader base, which has been growing since its foundation in 1995. We are now in possession of one of the most powerful and effective global databases from which the circulation is drawn. This unique and powerful audience includes key decision-makers and specifiers at the forefront of the industry’s development and expansion.

Quality content is at the heart of Hotel Management International. Case studies, expert insight and analysis, together with articles from leading industry figures combine to make essential reading.

Overview

49% had been motivated to take action in response

to an advertisement

Page 3: middle east - HMI Online...middle east The Middle East is the fastest-growing market in the global hotel industry. By 2017, almost 500 major new projects will be launched that will

Hotel ManageMent Middle east reacHes decision-Makers at leading organisations in tHe region

Reach and influence key decision makers.

The operational and strategic readers of Hotel Management Middle East have the authority to recommend, specify and approve the majority of all spend in the region. Published in print and digital formats, more than 15,000 copies will be distributed to the budget holders at:

n international hotel chainsn leading hotel management companiesn major international hotel developers, architects and interior designers.

n business development managern CEOn CFOn CIOn commercial directorn construction director n COOn corporate owner

n corporate architectn development directorn directorn F&B directorn general managern head of hospitalityn interior design directorn managing director

n marketing directorn operations directorn operations managern presidentn purchasing directorn regional directorn senior franchisingn VP purchasing

Readership and circulation

Job titles include:

Geographical breakdown:

Abu Dhabi 11.3%

Ajman 1.4%

Bahrain 7.0%

Dubai 31.8%

Egypt 11.4%

Fujairah 1.5%

Kuwait 3.8%

Oman 5.7%

Qatar 8.2%

Ras al-Khaimah 0.8%

Saudi Arabia 14.7%

Sharjah 1.8%Umm al-Quwain 0.4%

www.hmi-online.com

99% believed HMI to be a reliable source of

information

Page 4: middle east - HMI Online...middle east The Middle East is the fastest-growing market in the global hotel industry. By 2017, almost 500 major new projects will be launched that will

www.hmi-online.com

Reach and influence key decision makers.

FOREWORd

BIG INTERVIEWn Hilton Worldwide has the largest pipeline within the Gulf Cooperation Council (GCC). Andrew Clough, the group’s SVP for development in the Middle East & Asia Pacific, discusses growing the company’s regional footprint on an unprecedented scale.

BuSINESS MANAGEMENT & dEVElOPMENTn Where are the biggest real estate opportunities in the market right now, how are they being financed and what makes for the right operating partner? Emaar’s deepak Jain, Ziad El Chaar of damac and Kerzner’s Ian Connolly join the debate.

n INHOCO CEO Rupprecht Queitsch outlines how hoteliers can unlock the region’s rich potential.

SPECIAl REPORTn The next stage of GCC developments will involve a more concerted focus on the economy and midmarket

segments. laurent Voivenel of Hospitality Management Holdings, david Vely of Whitbread and Accor’s Olivier Granet discuss challenges and opportunities.

REGIONAl FOCuSn Saudi Arabia is enjoying exponential growth. Elie Younes of Rezidor, Sami bin Abdulmohsen Al-Hokair of the Al Hokair Group, and Stuart Birkwood of FAS Hotels discuss entering this fast-emerging market.

OPERATIONSn How is the post of general manager evolving and what specific challenges are there for GMs in the Middle East? Rami Sayess of the Four Seasons doha, Stefan Fuchs of Jumeirah at Etihad Towers and Michael Martin of the InterContinental dubai Marina discuss.

GuEST AMENITIESn Pop-up concepts provide a platform to showcase the biggest artists, designers, restaurants and chefs from around the world. We profile pop-up culture in the region with Pop! founder Aziz Mulay-Shah, desert Palm GM James Reeves and dubai Food Festival director debra Greenwood.

SECuRITYn Integrating one’s security and safety department into hotel operations can be arduous task. Jumeirah’s Craig Cunningham and Mohamed Suliman of Hilton Worldwide, discuss getting the strategy right.

dESIGNn Morgan Hotel Group’s long-awaited Middle Eastern debut, the Mondrian doha, promises to recreate the vibe and high energy of the Sunset Strip. World-renowned designer Marcel Wanders guides us through his vision for the project.

n We talk to designers behind some of the Middle East’s most ambitious refurbishment projects and ask how one maximises impact without losing business.

FOOd & BEVERAGEn The power of the superstar chef may be on the wane, with hotels demonstrating a growing willingness to keep restaurant operations in house. We talk to the region’s leading F&B directors.

Editorial content is subject to change.

Editorial May 2015

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Quality content is at the heart of Hotel Management Middle East. Our expert editorial team selects the best opinion and trend analysis from the individuals and organisations driving the industry enabling readers to gain a complete picture of the current market trends, key players and analyse the competitive landscape, make informed decisions identify market opportunities.

The key issues covered include: interiors IT systems guest amenities facilities management F&B equipment staff training and recruitment asset management and investment.

Securing the best contributors: Gerald lawless, president and group CEO, Jumeirah Group Selim El Zyr, founder, Rotana Hotels Guido de Wilde, SVP and regional director, Middle East,

Starwood Hotels & Resorts Samir Baidas, chief development officer, Middle East and Africa,

Marriott International Peter Norman, SVP for acquisitions and development EMEA,

Hyatt Hotels Corporation Olivier Granet, VP development Middle East, Accor Elie Younes, SVP and head of group development, Rezidor

Hotel Group Taras Ettl, vice-president development, Middle East and Africa,

Intercontinental Hotels Group.

Insight > Business management & development

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While investment levels in the Middle East are recovering, the pattern of spending and development clearly bears the marks of the global fi nancial crisis that has sculpted it. Investment managers explain to Hotel Management Middle East how the emerging individuality of local markets and the emphasis of the contrasts between them are encouraging sustainable, tailored growth in the region.

A world of

difference

“T here is a lot of interest in the Middle East at the moment, and the

countries in the region can be broken down into three categories,” says Hala Matar Choufany, regional managing director of HVS Global Hospitality Services. “In established markets, there is a lot of infrastructure in place, but there are still growth opportunities. There are also stagnant markets that

suffer from political instability and, finally, there are developing markets.

“Among the established markets are places such as Dubai, Riyadh, Abu Dhabi, Medina and perhaps Qatar, which have the right level of commitment from governments and a lot of investment appetite.”

In the years directly preceding the global financial crisis, huge amounts of money were spent on hotel infrastructure

across the region, although such investment could look somewhat unfocused. While the amount of cash moving through the development pipeline has returned to impressive levels, what has emerged alongside is a more disciplined and informed investor profile, with specific characteristics applicable to specific countries within the Middle East.

“In general, there is a positive trend in the region, though we have moved away

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Insight > Business management & development

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The BRIC narrative has dominated the hotel sector over the past decade, but now, a new group of countries – Mexico, Indonesia, Nigeria and Turkey (MINT) – has been picked out as the future stars. Iain Lynch-Moxon asks whether MINT is a useful acronym for looking at growth in the industry and what it means for international investors looking to get a foothold in potentially lucrative markets.

MINTing it?

I n 2001, Jim O’Neill, then chief economist at investment bank Goldman Sachs, spotted what

everyone else around him seemed to be missing, or ignoring: four giants from outside the accepted sphere of economic power were emerging.

His predictions were bold. Brazil, Russia, India and China, known collectively as the BRIC nations, would, he argued, outstrip the six largest Western economies by 2050, permanently changing the balance of global power.

People were sceptical at first; these were countries, they said, with radically different contexts lumped into an acronym with no further purpose than generating media excitement. Over the years, however, the idea began to gain

acceptance, and before long, some of the biggest international banks and hedge funds were marketing funds under the BRIC banner.

In one five-year period, the number of portfolio equity funds flowing intothe BRIC group saw a staggering 12-fold increase. By this stage, it had become a central construct for investors and policymakers all over the world. “The predictions turned conventional Western wisdom on its head,” said Gillian Tett in the Financial Times.

Reputable marketsLike everywhere else, the hotel industry had a BRIC obsession. On the covers of trade magazines, in conferences and in the sector’s investment decisions, the

emerging-markets narrative was top of the agenda.

However, after years of positivity, a new story seems to be taking over. In a recent series for the BBC, O’Neill, no longer with Goldman Sachs, travelled to four different countries on the hunt for the next big thing. Perhaps it’s no surprise, then, that his latest label is a synonym for freshness: MINT – Mexico, Indonesia, Nigeria and Turkey.

Whether this grouping provides a useful means by which the hotel industry might think about future growth remains to be seen, however. Various areas in Africa and Asia-Pacific that look promising aren’t included, and those that have been don’t seem to have anything in common beyond ‘strong’ demographics.

T time: Turkey’s hospitality sector is going from strength to strength – more than 11,000 rooms are currently in the pipeline to meet the growing demand.

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Insight > Operations

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As a growing number of operators introduce increasingly ambitious philanthropic efforts, Chris Godfrey speaks with leaders at Hyatt, Meliá, Firmdale and the Fellah Hotel to discuss the motivations driving these initiatives, implementing programmes on a local and global scale, and what problems the industry is best placed to address.

Cause for effect

T he Kawo Kakira primary school in Uganda, the Khánh Bình Tây village preschool in Vietnam

and the Dar al-Ma’mûn art centre on the outskirts of Marrakech: three buildings built with the goal of improving access to education and culture in underdeveloped areas. Education is not the only link; all were made possible by the philanthropic efforts of hotel operators. Despite the common aim, the execution was as different as the settings and pupils they serve.

Three very different hotel groups were responsible for funding these projects. Employees of Firmdale Hotels sponsored the Kawo Kakira School’s construction, Hyatt provided a $10,000 grant to make the Khánh Bình Tây Village’s preschool possible, and the Dar al-Ma’mûn art centre was built in tandem with the Fellah Hotel and is essential to the

experience. All are now invaluable to their local community.

Over the past decade, the hospitality sector has been fêted for its efforts to address environmental concerns, but good intentions are easier to deliver when a lucrative business case exists. Social

philanthropy lacks such statistical measurability; for the most

part, its value lies beyond a company’s balance sheet. But, just as operational practices have been reformed to increase environmental

efficiency, a growing number of operators are

introducing integrated philanthropic programmes at the

heart of their business models.

A tough pick In an age of globalisation, determining where to focus philanthropic efforts can be as difficult as deciding what problems

to tackle. With so many benefactors operating at ground level, hotel philanthropy is not confined by locality. Following the example set by high-profile organisations such as the Bill and Melinda Gates Foundation, where corporate management practices are fused with nuanced local expertise, large umbrella programmes have been introduced by global operators to ensure aid is provided where it can make the biggest possible impact.

Hyatt Thrive is one such overarching platform. “It’s focused on enabling the communities we operate in to thrive,” says vice-president for corporate social responsibility (CSR) Brigitta Witt. “We take a calculated view, as there are so many different social problems around the world. We look at what’s needed at a micro level in the areas we operate in, as well as the ongoing crises we are best placed to address at a macro level.”

The Ready to Thrive subsidiary programme houses Hyatt’s worldwide mission for improving educational and

The Fellah Hotel, on the outskirts of Marrakech.

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The big interview > Omer Kaddouri

When Selim El Zyr stood down from his role as president and CEO of Rotana after 22 years, one could be forgiven for wondering if it might rock the boat; however, Omer Kaddouri has proven to be the perfect heir. To mark his fi rst year in the job, he sits down with Phin Foster to discuss the opportunities for growth in the Middle East, pushing into new markets and the benefi ts of coming up through the business.

Nothing succeedslike success

I t is a universally accepted corporate truism that longevity and personality go some way towards

defining strong leadership. However, from Microsoft to Manchester United, evidence suggests that iconic leaders often make for fragile successions.

When Selim El Zyr founded the Rotana Hotel Management Corporation in 1992,

Sir Alex Ferguson was still chasing his first league title, and Bill Gates was almost a decade away from taking his company to its market peak.

Over the proceeding 22 years, the Lebanese hotelier would go on to develop the Middle East’s largest operator and one of the region’s few internationally recognisable brands. So,

when El Zyr announced that he’d be standing down from his role as president and CEO at the end of 2013, and that a new leader would be at the helm for the first time in the company’s history, there were some understandable murmurings about how the move might go.

The man anointed as crown prince by Rotana’s founder was Omer Kaddouri,

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Hotel Management Middle East | www.hmi-online.com16 Hotel Management Middle East | www.hmi-online.com16

Jean Gabriel Pérès celebrates 15 years in charge of Mövenpick this year, but he is far more excited about what the future might bring. The chief executive sits down with Phin Foster to discuss Swiss virtues, new markets and why he’d like to stay in the hot seat for a while yet.

Pick up the

pace

T o spend a decade and half at the helm of a multinational organisation is an achievement in any industry, but in the hotel game it means joining exalted company. When Kurt

Ritter stepped down from his role as president and CEO of Rezidor at the end of 2012, he had been in the role for just shy of 25 years.

His successor as longest-serving hotel chief was Reto Wittwer, Kempisnki’s president and chief executive since 1995 and,

like Ritter, a seriously big beast within the global hotel community; an individual whose reputation and

personality has become synonymous with the company under his stewardship.

But when Wittwer finally decides to hang up his keys, who will be left to laud for longevity? The industry has changed almost beyond recognition in a little over a decade, with increased emphasis on new markets, asset-light growth and branding creating a sector that can at times look as though it has moved away from its roots, and become just another business driven by process

optimisation and contract management.This shift has also influenced the

turnover of those at the very top. Among the world’s ten largest hotel groups, the

longest serving CEO is Best Western’s David Tang, who has spent a relatively

modest ten years in the role.Back when Tang was taking the reins in

2004, Jean Gabriel Pérès already had his feet firmly under the table at Mövenpick’s Zurich

headquarters. The Parisian celebrates 15 years at the helm of Switzerland’s primary hotel operator this year. Keen to downplay the

milestone’s significance, he nevertheless

Insight > Business management & development

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Insight > Business management & development

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from the frenzy of the boom between 2006 and 2008,” says Chiheb Ben-Mahmoud, head of hotels and hospitality for the Middle East and Africa at Jones Lang LaSalle. “We are now in a more sustainable development phase, with differences emerging between countries. All destinations are seeing development, and although each chooses its own course, they prioritise hotel development,”

Nevertheless, the familiar pattern of development is changing. In recent years, a useful rule of thumb was ‘30/20/10’ – for every 30 hotels developed in Dubai, one could expect 20 in the pipeline for Saudi Arabia and ten for Qatar.

“The rule no longer holds true; estimates differ depending on who’s counting,” says Catalin Cighi, managing partner at Cain Hospitality Innovation. “Those who rely primarily on data contributed by large international chains will tell you that Saudi Arabia already took the lead with 35,000 rooms in the pipeline, followed by the UAE with 25,000 rooms.

“Those that include the less reliable pipeline data of local brands and independent hotel developers will tell you that the UAE still leads with

45,000 rooms, of which around 30,000 are in Dubai, followed by Saudi Arabia with 40,000 rooms, of which around 15,000 are in Mecca.

“Most sources tend to reach consensus at Qatar’s pipeline being around 11,000 rooms, and as 70% of the pipeline is scheduled for delivery in the next three years, it is more likely to come through than the projects with longer delivery timelines.”

Developing needEach market has a unique set of drivers. Saudi Arabia, for example, needs more capacity to meet demand, particularly in cities with religious significance to the world’s Muslim population.

“It is a matter of scale and catching up with the need for product,” Cighi continues. “There are relatively few hotels per capita in Saudi Arabia, so we

will see a lot of mid-scale and economy brand development in secondary cities.

“Holy cities are burgeoning in terms of their need for hotels, and the impressive plans for the development of Mecca put it second only to Dubai in terms of the development pipeline, depending on who’s counting and which data you choose to look at.”

In Dubai, development slowed in the aftermath of the global financial crisis,

but now everyone wants to get a piece of the action again, with the prospect of Expo 2020 Dubai an important milestone for developers to aim for. Development in Qatar has also been boosted by the prospect of the 2022 FIFA World Cup. It is far from clear whether it will go ahead there, but even without the prestige of that event, the city has an ambitious strategic plan stretching out to 2030.

Holy cities are burgeoning in terms of their need for hotels, and the impressive plans for the development of Mecca put it second only to Dubai in terms of the development pipeline.

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Insight > Business management & development

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“From our perspective, we prefer to look at specific markets,” says Geoff Andrew, chief operating officer at WorldHotels. “We don’t have a MINT strategy; what we look at is a set of very specific factors, a combination of sustained economic growth and political structures that are pro-business.”

Taken on their own, however, these markets are certainly performing very well. An emerging middle class, and improved economic and political stability in Mexico have created an environment that is extremely conducive to hotel development.

Only last year, Marriott International announced plans to open 20 new hotels across the country with the Fibra Hotel real estate investment trust.

In Turkey, the hospitality sector remains incredibly robust, with 75 hotels and more than 11,000 rooms in the pipeline. Since 2012, the country has seen a lot of political unrest but not enough to dissuade people from visiting, or stop partnerships between local Turkish and Middle Eastern investors and hotel brands from forming.

“Our intention is to continue aggressive growth over the next few years and double the portfolio all over again,” said a bullish Patrick Fitzgibbon, senior vice-president for development in Europe and Africa for Hilton, when asked about Turkey last year.

The same is true in Nigeria, where Marriott, Starwood and Accor are just some of the groups leading the way in a country that has now entered the top ten for hotel development. According to pipeline data for 2013, hotel supply grew by over 60% in Lagos and 26% in Abuja.

Strong branding in Indonesia has also created a lively hotel market, with revpar up 9.5% by the end of 2013 and a pipeline of 32,000 rooms slated for the next three years. Accor alone has announced plans to open 17 hotels across the country this year – in Bali, Semarang, Jakarta, Surabaya, Makassar, Tangera and Bandung.

Tear it down BRIC by BRIC?That these locations are doing well is clearly a positive thing for the hotel industry, but does the hunt for new

markets imply the end of the BRIC construct? In his book on emerging markets, Breakout Nations: In Pursuit of the Next Economic Miracles, Ruchir Sharma, an economist at Morgan Stanley, argues that the golden age for these countries is already over.

After the 2008 credit crunch, investment into the BRIC countries slowed down dramatically. Growth in China last year was just 7.8%, which was well below its 10.0% long-term trend. In India, growth dropped from 10.0% to 5.8% in the same period, while in Russia and Brazil, things tailed off to around 3.0%.

Understanding why the BRIC construct may have lost its power requires looking back a bit further to the 1980s, when China shifted to a centrally planned market economy, India embraced economic liberalism and the ex-Soviet bloc suddenly became integrated into global markets.

These new geographies, developing and post-socialist, were a central plank of capitalism’s response to the crisis of the 1970s. Within a decade, they doubled the global labour market, dramatically altering the balance between workforce and capital, and restoring profitability.

China became the linchpin of this globalised world, absorbing a huge amount of the West’s industrial production and slashing labour costs as it did so. Now, however, it’s at the very centre of a new rupture. Since 2005, wages have grown fivefold as a result of militant strikes, with profitability hit and FDI slowing for the first time in decades.

The scale of economiesWhile labour inputs may have a large effect on the macroeconomy, the dynamics are different for the hotel industry. The latest BRIC forecasts suggest that even with slower growth rates, these markets are far from finished. Between 2009 and 2015, all four

countries will have experienced annual industry growth of at least 5%.

“Growth in the BRICs continues to outshine expectations, and we continue to see strong revpar index across all four markets,” said Aaron Glick, vice-president of global brand management at Starwood Hotels, earlier this year

While the BRIC block continues to display clear signs of health, the MINT nations’ successes for the hotel industry to date should not obscure the problems these countries face at a macroeconomic level. Projected population growth may be impressive, but good demographics won’t lead to development when serious exogenous factors are at stake.

Turkey, for example is currently going through an extremely serious political and economic crisis. The economy is flatlining, interest rates are high and the currency is tumbling after large flows of so-called ‘hot money’ began receding.

Even more problematic is Nigeria, a nation currently experiencing an increasingly serious civil war involving Islamic militants in the north, and a long-standing, brutal struggle with piracy in the Niger Delta.

We are left with a paradox. On the macroeconomic level, things look bad; as spaces of accumulation, the MINT economies are facing problems that the snappy acronym, for all its marketing potential, is unlikely to be able to fix. Looking more narrowly at the hotel industry, at the data and investor sentiment, however, reveals some grounds for a lot more positivity.

If anything, the MINT classification seems overly restrictive. What about Malaysia, Japan and Vietnam, or other countries in West and sub-Saharan Africa? In the end, MINT exists because it forms a word that people are familiar with. The hotel sector, always growing and forever seeking out new grounds, will be casting its net far wider.

The MINT nations’ successes for the hotel industry to date should not obscure the problems these countries face at a macroeconomic level.

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Insight > Operations

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literacy standards. The ambitions are global, but the approach is tweaked towards each individual community; children’s homes have been built much closer to schools in Kinabalu, erasing the need for a three-hour daily walk; in Johannesburg, training programmes are undertaken to address the high levels of youth unemployment and, in Tajikistan, fundraising efforts accumulated more than $42,000 to develop facilities for vulnerable children.

This dexterous approach allows Hyatt to see the impact it has made on individual lives. One particular training programme in São Paolo gave people with little opportunity in the local favelas a chance to develop their career skills in Hyatt’s local hotel. Five years later, roughly 10% of the workforce was drawn from the nearby favela.

Tackling local issuesLike Hyatt, Meliá has a global framework in place to combat social issues near its hotels. Despite its presence in over 35 counties, it has not lost sight of its Spanish origins, and efforts have been geared towards the social issues caused by the economic crisis.

“Work is a big issue in Spain; we have a very high unemployment rate here,” says Lourdes Ripoll de Oleza, vice-president for CSR. “We are working with foundations that train young people in cooking by opening our kitchens to them, so they can develop valuable career skills and complete culinary programmes.”

Employees play a huge part in Meliá’s fundraising efforts and volunteerism; as a family-run business, senior figures are happy to lead by example.

“At most of our big events, like the Christmas party, we fundraise for various initiatives, and our chairman will usually double the pot for whatever we collect,” says de Oleza. “It is important to communicate our different proposals to our employees; it becomes really difficult to get them motivated with no information about the projects we are carrying out.”

With more than 1,000 employees and nine hotels, eight of which are in the same city, engendering a culture of participation is less of an issue for Firmdale, but efforts are made at home and in regions far outside its footprint.

“We believe in looking after something that is dear to our hearts,” says Carrie Wicks, operations director. “One of our members had previously looked after an orphanage in Cambodia before working here. It was a personal issue for them, so we got behind it and paid for their food for two years.”

With all but one of its hotels based in London, the social committee responsible for Firmdale’s philanthropy is committed to engaging with the surrounding area. Tea parties are held in the hotels as part of a ‘contact the elderly’ scheme, employees are encouraged to volunteer in soup kitchens and there is frequent coordination with local charities such as Streetlytes, which offers support to the poor and homeless.

The Fellah Hotel was founded with a drive to promote local cultural and educational development at its core, and the Dar al-Ma’mûn art centre (inset, opposite) has become key to the experience.

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Special report > Serviced apartments

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With demand growing globally for serviced apartments, hotel brands across the Middle East are scrabbling to invest in a fast-evolving market. Marc Descrozaille, regional director for UAE, Egypt and Jordan at Carlson Rezidor Hotel Group; Samer Khanfar, general manager for Jumeirah Living World Trade Centre Residences in Dubai; and Hala Choufany, regional managing director of HVS Dubai, discuss the growing signifi cance of the sector and its scope for further expansion in the region.

At yourservice

T he serviced apartment sector is on the rise. A hybrid between two more established concepts

– residential apartments and hotels – extended-stay options of this kind are becoming increasingly popular. And with future expansion estimated at $10–15 billion, it is clear they are more than just a halfway house.

The idea itself is not new, having first arisen in the 1980s in the US. In effect, serviced apartments appeal to travellers who want something more long term than a standard hotel room and less binding than rental accommodation. Typically, they’ll wish to cater for themselves and won’t necessarily require all the amenities associated with a hotel.

Equally, they don’t want to sign a lease or commit to a minimum length of stay.

While this model has long appealed to a certain subset of business traveller, the market has grown dramatically over the past ten years, particularly when it comes to internationally branded residences. As investors and travellers alike become better acquainted with the benefits, more

The Radisson Blu Residence, Dubai Marina.

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Insight > Operations

Over the past decade, outbound tourism from China has grown dramatically, becoming the world leader in terms of expenditure on international travel. But despite Dubai’s growing popularity, the Middle East receives a relatively modest share of Chinese tourism. Ross Davies sits down with Xu Jing and Amr Abdel Ghaffar of the World Tourism Organisation to discuss how best to attract this lucrative market.

Yuan matters

I t is estimated that one in ten tourists worldwide is now from China. In 2013 alone, 97.3 million

outbound journeys originated from the country – up by 17% compared with 2012 figures. During the same year, Chinese travellers also spent $129 billion on international travel, according to the World Tourism Organisation (UNWTO); US tourists’ expenditure was $86 billion.

Such statistics don’t deceive. The Chinese outbound tourism market means big business and will continue to grow at a rapid rate. Most analysts predict that trips abroad from the region will have topped 100 million by the end of this calendar year – by 2020, that number could be closer to 200 million.

The Asia-Pacific region still accounts for the lion’s share of trips taken by Chinese tourists – roughly 90%, according

to UNWTO – but, in recent years, Europe has emerged as an increasingly popular destination for China’s new wanderlust generation, with more than three million trips made a year. The Americas make up just over two million.

Slightly further down the list sits the Middle East and North Africa (MENA), with travellers from China accounting for 1% of tourist traffic in the region. Yet, while undeniably a modest share, it also

Dubai has been incredibly successful in drawing tourists from China.

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Insight > Food & beverage

From Ramsay protégé to possessor of a rapidly expanding restaurant empire, Jason Atherton has travelled a long way in a short amount of time. He talks to Joe Warwick about his approach to dining, rising though the ranks and his love of Asia.

Easterninfl uence

C hefs look restless sitting in their own restaurants; Jason Atherton is no exception, glancing around the dining room at Pollen

Street Social and shifting in his seat. “Where’s the receptionist?” he asks a member of his front-of-house staff. “Can we have someone out here to greet the customers please?” He turns back to me and smiles. “They love it when I sit out here.”

Atherton understands the need to start spending more time out of his kitchen. He wants everyone to understand how it works now that he’s heading up his own rapidly expanding restaurant group.

Pho

to ©

D V

intin

er.

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Insight > Design

Hotel Management Middle East | www.hmi-online.com 49

Four Seasons’ fi rst ever Dubai property occupies an 11-acre plot of land along the north end of the city’s exclusive Jumeirah Beach Road, with access to 270m of beachfront and close to some of its most iconic attractions. Mark Yoshizaki and Mike Chun of lead architects Wimberly, Allison, Tong & Goo speak with Oliver Hotham about their role in bringing one of hospitality’s most prestigious luxury brands to the UAE.

Turn of the seasons

I t’s always been an industry anomaly that Four Seasons, one of the world’s premium luxury hotel

brands, does not have a single property to its name in the UAE. But competition in the country’s upscale segment is fierce, and the Canadian operator is famously discerning when it comes to green-lighting new opportunities for development.

It’s not as though efforts haven’t been made previously, however, and the global financial crisis is largely to blame for the fact that the move wasn’t made sooner. In 2009, Four Seasons was forced to exit its flagship project in Dubai’s Festival

City, a 400-room waterside hotel with residential apartments, but despite numerous rumoured offers and its rivals continuing to make further inroads into the market, the group spent three years exploring potential opportunities.

Patience proved a virtue, and when a chunk of real estate came under development in a neighbourhood often described as the Beverly Hills of Dubai, Four Seasons made sure it was in the box seat. Owned by Bright Start, and developed by H&H Investment and Development, Four Seasons Resort Dubai at Jumeirah Beach houses 237 rooms, with 49 suites, as well as ten restaurants

and lounges, a spa, and views of the sea and the city skyline. It claims to be the closest of any of the emirate’s beach hotels to the airport – just 25 minutes away – and sits ten minutes from the city’s main shopping district and the Dubai International Financial Centre.

A design for life in the Middle EastThe firm entrusted as lead architects was Wimberly, Allison, Tong & Goo (WATG), an award-winning California-based practice with decades of experience designing luxury hotels in the Gulf region. Working alongside

The resort’s design blends traditional Moorish in� uences with modern stylings to create a contemporary design that blends with the locale.

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