“In hindsight, 2010/11 was a bit of a tougher year for most hoteliers in Dubai. The room rate dropped, the demand wasn’t quite there; so it was a steep learning curve for us. I call it ‘paying school fees’ to learn about the market. [It’s about things like] finding the right people working for us and understanding the margins, people’s food and beverage habits.”
However, Wan acknowledges the silver lining of what was a tough period, pointing out that lessons have been learned across the industry by his fellow classmates.
“I certainly think the adjustment after the global financial crisis has been very good for Dubai because it has got rid of the speculators and it was a very speculative market,” he explains.
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“Those who can afford to stay, meaning they’ve got deeper pockets, are more understanding of the market and are more appreciative of the market.
“So hopefully the next phase of Dubai is a lot more sustainable, with people with a lot more experience, deeper pockets and staying here on a long-term basis.”
At present, Staywell’s global portfolio is built on two brands: Park Regis, predominantly targeting business travellers and typically located in the heart of major cities; and Leisure Inn, positioned as a midscale option.
Wan anticipates that the majority of the new hotels, at least initially, will be under the Park Regis brand, although the midscale option is likely to find a regional home in Saudi Arabia.
“In Saudi Arabia, we’re talking about major cities,” he says. “I think we’re going to have multiple launches there; all three brand new Leisure Inns. It’s got a big domestic market. It will also help us to build our brand awareness because a lot of Saudis come here to Dubai.
“The first one will probably [be open] within 12 months and within two years, we will have three.”
He expands on the importance of making sure the brand makes the right impact immediately.
“We have to be careful how we launch Leisure Inn in this market,” he says. “Each market has got its demand and expectations.
“Some of my colleagues just go blindly and launch a brand into a market. I remember a particular brand [launched] in India and [the hotel] had only a tiny little restaurant. Unbeknownst to them, F&B is huge in India.
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