The outlook for Qatar is more positive than in recent years, with demand finally on the up, but hoteliers need to address service issues and broaden their target markets to sustain performance and justify an increase in rate
More than 142 general managers and hotel department heads gathered at Grand Hyatt Doha on April 15 for the annual Hotelier Middle East Qatar Hospitality Summit.
The event, which comprised a series of panel discussions and workshops led by close to 20 of Qatar’s top hoteliers, addressed a range of industry issues, from delivering world-class customer service and attracting new markets through to driving revenue through F&B and acquiring talent in a new market.
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An opening address from Chris Hewett, senior consultant, TRI Hospitality Consulting, examined the hotel pipeline and current performance and looked at the numbers that will shape Qatar’s hospitality sector through to 2015 — revealing a more positive outlook than in recent years.
Hewett revealed an increase in demand for Qatar hotels, reflected in improved figures and in line with a boost in visitor numbers to the country.
He said Qatar hotels recorded 1.3 million visitors in 2013, up 8.3% from 1.2 million in 2012, and a 13% increase in overall hotel revenues. Hotel earnings at four- and five-star hotels reached QAR 3.58billion (US $983million) in 2013.
At the same time, Doha International Airport welcomed 23.2 million passengers in 2013, up 9.9% on 2012.
Occupancy in 2013 stood at 59.8%, an increase on 2012, but ARR dropped 6.3 percentage points to QAR 847.1 (US $233). Hotels maintained RevPar though, said Hewett, reporting an increase of 7.7%.
However, with another 7000 rooms planned for Doha by 2017, Hewett warned occupancy would be impacted, particularly if the market did not diversify.
Currently, Qatar has 127 hotels comprising 14,000 rooms. Of these, 86% of total keys are four- and five-star.
The mid-market represented just 4%, revealed Hewett.
“The midscale is severely under served, and this will impact the market going forward,” he commented.
In addition to the need for diversification, in order to maintain current performance, hoteliers would need to both improve service and widen their target reach, said hoteliers at the event.
Speaking on the opening panel, ‘Positioning Your Hotel for the Future’, Ray Mc Shane, general manager at Mondrian Doha, set to open next year, said: “There are major service issues in Qatar. Not many of us have had wow experiences in terms of service, in terms of what’s being delivered at the moment — we collectively in this room are responsible”.
The subject was discussed later in a session entitled ‘Delivering World-class Customer Service’
Julian Crane, director of marketing at Four Seasons Doha said: “Having been here two and a half years, I think there’s a foundation of good service, but there’s a want and a need to extend this good service further.”
At St. Regis Doha, an integral luxury amenity is the butler service to assist guests with unpacking, room service and transport and provide one point of contact. Tareq Derbas, general manager at St. Regis commented: “We have a butler service; one butler per nine rooms and we’re the only hotel in Doha doing that — I think that adds a lot of value to the guest experience.”
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