Roundtable: Rotana's UAE GMs debate hot topics
In Hotelier Middle East’s exclusive roundtable with Rotana Hotels, area vice president Dubai and Northern Emirates Thomas Tapken and a panel of general managers from UAE properties reveal the opportunities and challenges of operating in the region and how they are working on various corporate strategies at their properties
Meet the experts
Thomas Tapken
Area vice president – Dubai and Northern Emirates, Rotana Hotel Management Corporation
Thomas Tapken has gained considerable international experience in hotel management from his 26 years in the industry, which include eight years as general manager with Mövenpick Hotels & Resorts. Following his various positions as general manager of hotels in UAE, Qatar, Kuwait, Egypt, Spain, Thailand and Kenya, Tapken’s last position was managing director at City Seasons Group in the UAE.
Jorg A Hauri
General manager, Beach Rotana Abu Dhabi
Jörg A. Hauri began his career in hospitality with formal education at a Swiss hotel school. He then went on to gain international experience, spanning much of Asia for almost 20 years. On joining Mövenpick in 2002, he then called Egypt, Tunisia and Lebanon his home. Moving to Greece, he became the group general manager for Maris Hotels. Hauri has been with Beach Rotana since 2011.
Mark Deere
General manager, Yas Island Rotana and Centro Yas Island
Mark Deere was recently appointed general manager of Yas Island Rotana and Centro Yas Island. Using the competencies he acquired from the University of Surrey in England and 26 years of experience with some of the most prestigious hotel brands in the UK, Asia and the Middle East, Deere now drives growth for Rotana’s two-hotel complex on Abu Dhabi’s Yas Island, which attracts guests from around the world.
Chantel Moore
General manager, BurJuman Arjaan by Rotana
Chantel Moore has a wealth of expertise gained during more than 20 years of experience in the hospitality sector within Australia, UK, and the Middle East. Moore has been with the Rotana family since 2012 and is responsible for managing the four-star deluxe hotel apartments that is directly connected to the BurJuman mall and business towers.
Sherif Madkour
General manager, Al Maha Arjaan by Rotana, Abu Dhabi
Sherif Madkour began his career in the hospitality industry in Germany where he worked his way up as a front office shift leader to assistant room division manager in reputable hotels in Frankfurt. He joined Rotana Hotels in 2005 and in 2009, he was given the opportunity to lead the pre-opening team as general manager of Centro Barsha by Rotana, Dubai. He was then assigned general manager of Al Maha Arjaan by Rotana, Abu Dhabi in January 2013 where he is currently drawing on his expertise to lead the hotel’s upcoming multimillion renovation project planned for 2014.
Francisco Giles
General manager, Park Rotana Complex, Abu Dhabi
British national Francisco Giles holds hospitality degrees from hotel school Les Roches in Switzerland and Cornell University in the United States. He has more than 23 years of experience in the hotel industry spanning five continents in various roles with international chains such as Radisson Hotels and Marriott International and now oversees a multi-brand Rotana complex in Abu Dhabi.
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With an average of eight new openings a year and a target to grow its portfolio to 100 hotels by 2020, regional chain Rotana Hotels is one of the most dynamic operators in the Middle East.
In just 21 years, the company has come a long way and with each new achievement, its ambition grows higher still.
To find out an update on expansion, renovation and company strategy, Hotelier Middle East gathered a group of Rotana general managers at Media Rotana Dubai and hosted an exclusive roundtable, sponsored by sustainability specialists, Diversey.
What are Rotana Hotels’ priorities for 2013?
Thomas Tapken: As a hotel operator, until the end of 2013, our prime goal is to satisfy all our customers, to meet their needs and to give them a global service in a local environment. Also, our hotels are getting broader, we are upgrading.
By 2020 we want to have 100 hotels; today we have 47 operating hotels. We have nearly 12,000 employees in the region. So it’s quite a tremendous growth rate. We are going into Jordan, we are going into Turkey and hopefully opening at the end of the year in Salalah, Oman with 400 rooms. Amman is coming up hopefully this year as well.
You have emphasised the need to give guests what they want. How do you approach that?
Thomas: We believe that the guest is not a room number, the guest has a name. We have approximately 40 different training courses for our colleagues.
There is an induction programme, where you get the basic training, the greeting, the complaint escalation systems, which will be implemented to make sure that every requirement of the guest is fulfilled within 30 minutes.
How is that being implemented at the individual properties?
Rabih Melham: At Media Rotana, we believe strongly in developing talent. So we focus a lot on training and attracting new individuals to our property. We are actually the first hotel that started with the escalation of guest complaints.
For example, if the guest has made any request for the room, and if this is not attended to within 10-15 minutes, then it will go to the higher level, then it will reach me as the general manager.
Is that usually the way it works – different strategies tested at different properties?
Thomas: That is the advantage of being a chain. You pick one hotel depending on which system you want to implement and here [at Media Rotana] we have high traffic, high occupancy, high turnover in guests so it’s an ideal scenario to test a system like this, contrary to a beach property where guests stay for seven days.
You mentioned upgrades; which hotels are being renovated?
Thomas: I would say presently, in my region, out of 20 hotels, 17 have a project ongoing. There is upgrading.
Rabih: At Media Rotana we currently have 460 keys and are in the process of converting our apartment tower to hotel rooms. We have two towers so therefore we are looking at an increase of another 80 keys.
So basically we will be at 540 keys by mid next year. We believe as a five-star hotel located in this area, there is high demand for hotel rooms vs. hotel apartments, especially with the area being surrounded with a lot of hotel apartments, it’s a bit of a challenge for us to compete. We believe going forward, especially in 2014, there will be higher demands for hotels from the corporate segment and MICE segment as well.
Francisco Giles: We have 200 unfurnished apartments. Those will be branded very soon as Park Residences by Rotana. There is one other in Doha with the same brand, which is a new brand for unfurnished apartments.
Looking at the different markets, what trends do you see in Abu Dhabi?
Mark Deere: On Yas Island we have the Rotana, which is a 308-room hotel and then the Centro, which is a 259-room hotel. And by having both together, you really appeal to all the different markets.
Sherif Madkour: Al Maha Arjaan in Abu Dhabi is one of the oldest hotels with 12 years in operation. It is very well established in the market and we are running at almost 90% occupancy so it is doing very well.
We have lots of yearly-contracted long stay guests, mostly from oil field companies as well as other segmentations, we have a bit of tour operator business and MICE business. We have a total renovation coming up. We are in the final stage of the design right now. It’s a very fresh, concept — a new look for the Arjaan brand.
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Is it a similar business mix at Arjaan in Dubai?
Chantel Moore: We’ve seen a shift from long-term business more into hotel business in the last year due to the high demand in Dubai and being very closely located to the World Trade Centre and exhibitions.
We do still have some long stay guests in house and we have the highest repeat guests in the company. Our hotel is running at 93% year to date, and as an apartment style hotel that’s quite interesting.
How are the other properties performing?
JÖrg A Hauri: Year to date, we are higher than last year, which means we are at 82% occupancy. Our mix is slightly different — we have the apartments for long stay but that as well has come down. We had about 80% annual contracts two years ago; today it’s only about 35% annual contracts and the rest is between three and six months, so that has changed.
In the main hotel, we have increased in the FIT market and expect by end of this year, 30% of our occupancy will be related to the leisure market, so quite a shift compared to the 8% it was earlier.
[This is attributed to a] different focus and new locations, new hotels have taken a certain percentage of the business as well. And the interesting part is, our 11 F&B outlets managed to increase revenues and increase customers in the last two years. Again, when you consider that we have 65-70 new restaurants in Abu Dhabi, it’s a pretty strong performance.
Francisco: From a hotel point of view, year to date, till the end of June, occupancy was 60% in the hotel, and 95.7% in the Arjaan, so the overall complex was 72%. In the Arjaan, we have 65-70% long stay guests, and one or two big contracts and obviously we want to get more and more long stay, because the yield on the rates is higher.
Rabih: At the Media Rotana, for the last two years we have witnessed positive growth of almost 22% in RevPAR. And so far this year we are sitting at 19% over last year, year to date RevPAR as well. The occupancy grew from 72% from 2012; we are touching the mid 80s so that’s an excellent thing for us.
chantel: The real estate sector has started to boom again which has helped the Arjaan properties; there’s a higher demand now for apartments, and you can see in the papers everyday that rents have increased dramatically. So that’s had a huge impact on people requesting long stay.
JÖrg: It’s different in Abu Dhabi. We have an oversupply of real estate and the prices came down over the last two years and that’s the reason our property has lost with the suites apartment, the long stay customer. So it’s a reverse here from Dubai.
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Rotana recently launched its sustainability programme Rotana Earth. Tell us about that?
Thomas: We are turning green. We are in the process of rolling out a corporate strategy and setting the guidelines. We are monitored by an outside company and we are rolling it out now to the properties.
Rabih: At all properties now, we have colour coded bins for recycling on every floor, which is something new for us. We have segregated the trash in every restaurant and in all public areas.
Thomas: Keep in mind it’s a lifestyle, it’s not what you can dictate. It depends on how much the general manager is involved and how it is presented in the hotels with the colleagues.
We are starting with garbage separation. Ten years ago, there was no garbage separation possible because you separated it and the same truck picked it up and put it in the same garbage dump.
Today, it’s a different world out there. Today you have companies who are separating it, who are able to recycle it, or send it out of the country and recycle it there.
Sherif: At each Rotana property, we have an EHS manager - environment health and safety manager. We have monthly meetings about all the actions to be taken and some initiatives to be taken within the hotel. The EHA managers work closely with the government agencies like TCA Abu Dhabi and the municipalities.
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Are there regulations imposed in Dubai and Abu Dhabi by the tourism boards?
Thomas: Absolutely, especially Abu Dhabi. Abu Dhabi is stronger than Dubai.
Sherif: We are required to reduce wastage by 20%. There is a point system in place right now to reduce our waste by 20% or else we will have some difficulty with issuing licences etc.
Daniel Mathew: During Ramadan, in Sharjah the municipality was walking around during late evenings checking for food wastage and asking hotels to cut down on the food that is being put on to the buffets to cut down on wastage. They also monitor your waste — you have to segregate it otherwise you get a big fine.
Thomas: All Rotana hotels are being fitted out step by step at the moment with LED lights, which has a major impact on electricity consumption.
Peter Kannath: When you look at the hospitality industry, there are three aspects where sustainability is growing. One is the regulatory authorities, the second is the self regulation of the industry and the third is the market. There are lots of travellers around the world who look for greener hotels. There are lots of websites where tourists can book sustainable hotels.
JÖrg: In our hotel, we have a monthly saving of AED 15,000 to AED 20,000 with laundry. We had a saving of over AED 800,000 on utilities and this year it is anticipated to be AED 1.5 million based on the changes and improvements we have made in the hotel. There is no sacrifice to the customer; we are only looking after waste.
We did not cut air conditioning for the customers; if the guest wants to change his towels, the towels are changed. Another example is a project we started last year — we entirely changed our way of using printers. We made stations, we combined departments.
Over the last six months on paper and cartridges alone we have a saving of AED 350,000. Of course, we had to invest AED 650,000 for new printers but in less than two years we have the return on investment.
Simon Roopchand: If you look at your utility bills, 70% of the utility bill is either the cooling or laundry. There are products now on the market that you can take the return from the chilled water at 12 degrees and instead of having an LPG boiler, which could be 15 to 20% of your utility bill, you can actually use the return and use things like high pressure heat pumps to take the water from 15 degrees up to 65 degrees.
So you get significant savings, and we are talking not 6% but 45% on a utility bill, which has no impact whatsoever on the people that you’re actually serving. So the comfort’s exactly the same, it’s just about the design of it.
There are engineering solutions out there now that can give you 40% savings, real solid engineering solutions that are being brought to this region that will have a massive saving on costs.
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What are the main challenges you see going forward for the hospitality industry?
Rabih: Over the last two to three years, the laws have been changing to be more flexible in terms of changing jobs between hotels. This is becoming a bit of a challenge where any new hotel opening here — instead of hiring from overseas, they are now hiring here in Dubai; it’s an open market.
Thomas: The city average for staff turnover is 34-36%.
Rabih: The second challenge we have is the number of hotels that are coming to the city. This puts pressure on the general managers managing the hotels because at the end of the day we all want to achieve the same piece of business.
Sherif: I moved from Dubai seven months ago and what I feel is that the calendar of events in Abu Dhabi is not really as strong as Dubai, we don’t have as many events and exhibitions, which is a bit of a challenge. If this were to happen in Abu Dhabi, it would definitely have more impact on the business and the occupancy.
Daniel: Unlike Abu Dhabi and Dubai, Sharjah is a totally different city. Sharjah has seen phenomenal growth in the last six to eight months with the growth in Dubai, and the challenge is the drive between Sharjah and Dubai. Until the roads get widened, it’s going to be a major block.
Chantel: One of my challenges is that the hotel has to live up to the Dubai factor and there is such a high expectation from guests. So continually creating new concepts, empowering your colleagues is key.
JÖrg: The challenge from my point of view is visa issues for clients as much as for colleagues. Another issue is the staff turnover — in our case it’s not quite severe but over the past three years, every year we have actually reduced turnover. We had 35% last year and this year we are expecting only a 25% reduction. However, when you look at the fact that we have 1200 staff members, it’s still a big number.
What about opportunities for your properties?
Sherif: What I feel is the positive part is that the government is requesting people to live in Abu Dhabi and work in Abu Dhabi. So there is a lot of demand, you can feel people and businesses are coming up, there are lots of projects, especially on Yas Island, which has made a great impact on the city as well.
I was in a meeting with TCA Abu Dhabi recently and they are launching a huge beach club in Abu Dhabi, which will be attracting a lot of leisure business near the corniche area.
Mark: I think the increased activity on Yas Island will lead to huge growth in the leisure market in the coming years. It’s really becoming a destination in its own right.
Yas is only a 45 minute drive from Dubai; it will never be a seven-day destination, but now there’s enough there that it can be a three-day destination. The other big thing that’s happening is that there’s a lot more concert weekends, and word is that in 2014 they will increase even more.
Chantel: I think the new airline routes like Quantas coming through Australia is huge. I think having the ability to see that other leading airlines can come through here and work in close partnership with Emirates Airline and bringing in new destinations like that will have a huge impact on businesses in the summer months.
Thomas: For Dubai and Abu Dhabi, as more hotels are coming online it’s better to have a destination. The more attractions that come up, the better it is for the city. With the opening of 5000 new rooms, will we feel it? No. The attractions are growing so automatically you open new destinations, new airlines, you have open skies; a new airport is coming up.
The growth of the city is guaranteed. I’m a total believer that this city cannot go backward. In the last quarter (Q1) we had over 94% occupancy. By the end of the year we will easily be at mid 80 again so where are the challenges? As long as we have an open skies policy in this country, and the DMCs and tour operators worldwide see the city as an attractive city with all the infrastructure built in this part of the Middle East, it will continue.
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Stat attack
- 47 Number of hotels in Rotana’s portfolio
- 100 Number of Rotana hotelS targeted for 2020
- 80-85% Occupancy June 2013 year-to-date in dubai
- 12,000 Number of employees in the region
- 17 Number of hotels out of 20 with ongoing projects and renovations
- 40 Number of training courses for employees
- AED 800,000 Savings on utilities at Beach Rotana as a result of changes and improvements
- 90%+ Occupancy at uae Rotana hotels in Q1 2013
Renovations at Rotana
- Centro Sharjah will be converting a number of queen sized rooms to twin beds to keep up with demand. Work is expected to be completed by November 2013.
- Media Rotana is converting its apartment tower to hotel rooms, which will result in an increase of 80 keys, bringing the total to 540 keys by mid 2014. The hotel is also adding a new sushi restaurant to its F&B offering.
- Al Maha Arjaan by Rotana will be undergoing a complete renovation from January 2014 onwards with a new look for the brand that could be incorporated at other Arjaan properties.
- BurJuman Arjaan by Rotana has renovated its swimming pool and leisure deck area and added a new gym. The hotel is also renovating its restaurant to increase its seating capacity.
- Beach Rotana Abu Dhabi will be undergoing extensive renovations, starting with its restaurants — Prego’s, Trader Vic’s and Benihana, Rodeo Grill and Finz. In 2014, the apartments will be refurbished and beach wing will be redesigned. Work on the public areas and construction of a new hotel with 300 additional rooms is expected to be completed by 2016.