In 2014, the onslaught of competition, balancing stakeholder requirements, and the decline in traditional markets such as CIS have been reported as major challenges for GMs. What will be the major challenges for GMs in 2015?
Of course, the role of a general manager will continue to be a high-pressured position and present macro-economic and regional challenges in the future. General manager’s working within Hilton Worldwide have the benefit of cross-functional experience; gained through years of professional development in the industry. This knowledge and expertise, equips them well to manage the business to its optimum – balancing stakeholders requirements and ensuring that each property performs well in its local market.
What new/existing markets will be most important to target next year?
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Across the Hilton Worldwide portfolio in KSA, we seek to target established and new source markets, both from a business and leisure traveller perspective.
Around 10 million pilgrims make their way to Makkah every year for Hajj and Umrah - and this figure is expected to grow further in the next few years. Hilton Worldwide currently operates three properties in Makkah and one in Madinah.
The Makkah Hilton & Towers boasts 1,409 guest rooms and suites, with magnificent views of the holy Kaabah; Hilton Suites Makkah has 480 rooms and has a private air conditioned prayer hall overlooking the Haram accommodating 2000 worshippers. The Waldorf Astoria - Jeddah, Qasr Al Sharq is the company’s most luxurious hotel in KSA and is visited often by VIPs. Jeddah Hilton has 388 rooms and is in prime location on the Corniche in Jeddah. It also offers world class restaurants and conference facilities.
DoubleTree by Hilton Dharhan serves the Eastern province of KSA and Hilton Garden Inn, Riyadh Olaya serves the capital. As well as the obvious religious tourism to Makkah, KSA is a business hub with cities such as Riyadh and Jeddah acting as major industrial and commercial centres. Also, there is the oil and gas presence in areas like Dhahran and Yanbu that keep a constant stream of travellers visiting the area from inside KSA and from further afield.
Diversification of the hotel landscape was a big topic in 2014. How will this trend develop in 2015 and beyond and how are you targeting price-conscious customers?
Hilton currently operates eight hotels in KSA, consisting of more than 3,000 guest rooms and across four of our Hilton Worldwide portfolio brands, ranging from the luxury of Waldorf Astoria, to our upscale Hilton Hotels & Resorts and DoubleTree by Hilton brands – as well as Hilton Garden Inn, our midscale brand.
KSA features Hilton Worldwide’s largest pipeline anywhere in the Middle East, with 23 hotels currently under development. Upcoming Hilton Worldwide openings in KSA include Hilton Riyadh Hotel & Residence; Hilton Riyadh Granada Business Park; DoubleTree by Hilton Hotel Riyadh - Al Muroj Business Gate; and Hilton Garden Inn Tabuk – all expected to open in the next 12 months.
Our most recent development announcement was the signing of a management agreement with Hamad & Ahmed Mohammed Al-Mozaini Real Estate Company to open a Hilton Garden Inn hotel in Yanbu – which joins five HGI’s already under development in cities across KSA. In terms of major city locations, we see potential for growth of our brands in all areas of Riyadh – where we believe there is opportunity to develop more hotels, especially in the mid-scale and upscale segments.
KSA’s great prosperity and vast construction projects are attracting an increasing number of international companies, looking for a share of the booming market, as well as companies who are keen to invest in establishing manufacturing facilities that contribute to the country’s strategic aim to diversify into non-oil sectors.
Interview continues on next page...
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