Qatar's hotels emphasise a renewed F&B focus

With Doha hotels generating more revenue from F&B than rooms, Caterer Middle East investigates what measures the Qatar capital’s properties are taking to distinguish themselves from the crowd

Hotel F&B in the region currently totals 37% of hotel revenue, with the potential for this to increase — it is growing by 5-10% each year, according to STR Global. It was also reported that Doha generates more revenue from F&B than room revenue.

TRI Hospitality senior consultant Chris Hewett revealed during the Hotelier Middle East Qatar Hospitality Summit that F&B RevPAR has increased by 8.5% in the last year.

Additionally, in separate interviews with hotel general managers and F&B directors based in Doha, it was revealed that many properties were working on “new and exciting” concepts, with a few claiming these were ideas that have not yet been executed in the capital city.

With Qatar 2022 fast approaching, the capital’s hoteliers are recognising the importance of tourism and standing out from the crowd based on their F&B offering, much like what the UAE’s hotels have done over the last couple of years.

For example, Crowne Plaza Doha — The Business Park general manager Savino Leone said the hotel will be opening “a new café/restaurant at The Business Park, which will have an innovative concept and design that has not been introduced yet in Qatar”.

Grand Hyatt Doha general manager Christoph Franzen said that this month, the hotel will start focusing on The Grill.

He said: “We are working on a completely new concept for our all-day dining restaurant, The Grill. We are currently discussing various concepts, and are in the design phase of the project. While we cannot reveal too much, it will be the most innovative concept in Doha in terms of a dining venue and lounge and the name will also change. We hope to kick-off the project towards the end of the year and be operational in the first half of 2015.”

Franzen said there is no doubt that there is a lot of competition between Qatar hotels in terms of F&B. He added: “I feel there is more competition in hotels here, than in other, larger cities in the GCC. This is proven by the fact that many operators use big international names to run their outlets who are not usually associated with hotels, but have fantastic free-standing concepts.”

The InterContinental Doha has already revealed its extensive F&B plans [see page 10] with a new beach restaurant and bar, renovation to its all-day dining, along with a Belgian café and an Asian seafood venue on the cards.

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InterContinental Doha director of F&B Georges Khalil agreed with Franzen, and said many international chains have opened in hotels. “Most of them have either franchise concepts or international brands. However, I always see competition as a healthy way of improving and getting creative with the offerings.”

Crowne Plaza Doha food & beverage manager Marko Golub said nightlife has also been added to the focus on restaurants: “There is an increase in new restaurants as well as several hotels focusing on nightlife events to increase their revenue throughout the weekend.”

While on the topic of revenues, these Qatar-based hoteliers confirmed the STR Global report of Doha’s revenues. Franzen said the F&B in his hotel accounts for “roughly 45% of revenues”.

He continued: “Events are a large chunk of our F&B revenues, and I know many hotels have a higher percentage of F&B revenues than room revenues. However we have a large villa component, which enables us to maximise on long stay room revenues.”

Khalil revealed: “We have a big F&B operation in the hotel — seven different restaurants with banquet and catering — so our F&B revenue makes around 55 to 60% of the total hotel revenue.”
While Golub declined to reveal the exact amount, he said F&B is one of the main revenue generating sources at the hotel “which is showcased by positive annual figures”.

Franzen pointed out that the food and beverage component of hotels is seen to be increasingly important for Qatar.

He said: “It is a tool to differentiate yourself from the competition, if executed well. Five star hotels, by and large, all offer a top rooms product coupled with fantastic service in this region. It is the F&B aspect of the hotels that is able to drive, especially the residential market of the city into the hotels.

People have disposable incomes and are looking for ways to spend the same; they want ‘value for money’ but at the same time the outlets they visit need to be able to give them an experience. Not just a bar, not just a restaurant.”

Khalil added: “The F&B in the hotel business is playing an important role nowadays, as most of the room guests make their decision on the hotel booking according to the offerings and amenities that the hotel has.”

Golub said the phenomenon of an increasing focus on food and beverage is not just seen in Qatar. He explained: “Food and beverage has become a very important focus within the region as hotels open more and more restaurants with new concepts.

“This attracts diverse guests to outlets that offer a wide variety of cuisines. I am looking forward to the new exciting restaurants opening later this year in Qatar.”

When asked how new hotels will make their mark in a growing competitive market, Franzen said: “I worked in Dubai 15 years ago for the first time; at that point we had a handful of 5-star hotels and everyone asked the same question you are asking now about Doha. If we are able to make Doha into a destination where leisure and business mix, along with conferences and attractive connections to Europe and Asia I see no reason why the city should not succeed.”

He concluded: “To give you an example, just putting a branded restaurant in a hotel does not guarantee success; the service delivery and quality need to be there, and the value-for-money needs to be present. Otherwise your guests will not return.”