LIVE FROM THE HOTELIER QATAR GM DEBATE 2012

08:30: More than 100 general managers and other hoteliers are gathering in the Grand Hyatt Doha pre-function area ready for the start of the second annual Hotelier Middle East Qatar GM Debate.

09:00: ITP Publishing group editor – hospitality Louise Oakley welcomes the audience, thanking the sponsors and acknowledging the support of Qatar Tourism Authority.

09:05: Qatar Tourism Authority director of tourism Abdulla Malalla Al-Bader addresses the audience.

The potential of Qatar’s tourism industry is huge, says Al Bader.

“Like in other parts of our booming economy, there has been growth in the hotel and hospitality sector over the years. You only have to look at high-profile openings in March and April,” he continues.

“Qatar is a leader in business travel and MICE, and as a tourist destination. The new Doha airport will open this year, as well as the expansion of the roads and other infrastructure developments.”

Al Bader mentions QTA’s latest effort to work with the hotel industry in the establishment of the Qatar Hotels Committee.

“The committee will bring nearly 60 general managers of five- and four-star hotels together with a mandate to ensure cooperation between hotels at the highest level,” he says.

09: 15: KEYNOTE PRESENTATION: Qatar’s hotel industry landscape – spotlight on the future.

THE FACTS - PERFORMANCE: TRI Hospitality Consulting MD Peter Goddard and consultant Christopher Hewett run through some interesting hotel statistics:

Doha hotel performance came second to Dubai in February in 2012 in terms of GOP-PAR according to TRI’s Hotstats data.

GOP-PAR was $192.62 across Doha hotels compared to $229.96 in Dubai hotels.

Average occupancy at Doha hotels was 67.1% compared to 85.2% in Dubai hotels

Average RevPAR at Doha hotels was US $163.35 compared to $266.16 at Dubai hotels.

THE FACTS – DOHA HOTEL MARKET:

- As of August 2011, there were 72 hotels in Qatar comprising 10,000 keys.

- Of these hotels, four- and five-star properties contribute 47% of the hotel mix and 81% of the rooms.

THE FACTS – FUTURE SUPPLY:

- Doha will get the largest influx of supply in the market in 2012 – a 20% increase in supply, just over 2100 rooms entering the market.

- A total of 77 hotels with 17,091 rooms are currently planned or under construction, according to Qatar Tourism Authority.

- Out of future supply – the majority (80-85%) will be rated four- and five-star. New brands include Missoni, Mandarin Oriental, Shangri La and Park Hyatt.

HOW WILL THE MARKET COPE…
TRI predicts:

- Market wide occupancies projected to fall throughout 2012 and into 2013 as new hotels enter the market.

- Demand is to absorb the new supply in 2014 with slight increases in occupancies in 2015.

- Competition for corporate, government, and MICE demand will intensify especially in West Bay.

- Average Daily Rates (ADR) are projected to fall as hotels try to maintain occupancy levels.

- “ADR will be the first casualty as more hotels come online,” says TRI’s Hewlett.

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09:30: THE PANEL: SPOTLIGHT ON THE FUTURE
MODERATOR: Peter Goddard, MD, TRI Hospitality Consulting

PANNELISTS:
Simon Casson, regional VP and GM, Four Seasons Hotel Doha
Hafidh Al Busaify, GM, InterContinental Doha
Andreas Searty, GM, Hilton Doha
Safak Guvenc, area manager Qatar and GM, W Doha Hotel & Residences
Giorgio Lanfranchi, GM, Millennium Hotel Doha

QUESTION: How will increased supply and competition effect Doha's existing hotels? 

Four Seasons - Simon Casson: There is going to be an imperative for older properties to already have plans for refreshment.

There will be an impact, some challenges over the years as demand struggles to keep up with supply. The strong hotels will be those in good locations who have invested heavily in their properties, but it’s going to be a fight.

Hilton’s Andreas Searty: Our Hilton Doha hotel is opening in a few days time and we will enter the market in a very optimistic way, it’s very well located and has excellent products.

W Doha’s Safak Guvenc: Competition is healthy and will force us to look at operations in a tighter way and manage our costs better.

Different products coming into the market brings diversity - it’s a healthy diversification which will bring more demand.

Yes, we will have some tough years but after two to three years the future is bright for Doha. Doha will be put on the map. It will make us all better operators.

InterContinental’s Hafidh Al Busaify: The diversification is going to make a big difference. Certain hotels positioned well and understanding their customers will do better. But competition is excellent for upping your game.

There are going to be difficult times but Doha is not solely based on the World Cup. It’s got a thriving economy it’s not going to slow down.

DROPPING RATES IS NOT THE ANSWER, SAY HOTELIERS

QUESTION: TRI research shows rates will be the first victim of increased competition, what impact will this have? 

Four Seasons’ Simon Casson: We need to believe in premium level rates in Qatar, no reason rates should be too far behind Dubai.

We have to be somewhat bold as we look ahead and it’s a nervous time. But we have to hold on. Over the past five to seven years Qatar has done a good job of bringing rates from up from $150 to $300 a night, it’s important not to take too many short-term decisions that will hurt the market.

Hilton’s Andreas Searty: Doha has grown occupancies steadily up to 60-65% the growth in development is supporting all our hotels and this means more hotels coming up is supporting the economy.

So we need to focus on what we do well [rather than dropping rates]. By doing that we can attract new segments and business. We could focus on length of stay in Doha to improve occupancy. Currently guests stay for one or two days only, by attracting [business people and their] spouses, more business generated by conventions, the stay increases.

W Doha’s Safak Guvenc: If we start dropping our rates and it becomes a rate war the only one that wins is the consumer. Doha still has room to grow on the rates, but Qatar Airways and QTA are doing the right things to increase demand.

Dropping the rate is the last thing you should focus on; you should focus on personalised service.