When asked about the possibility of missing out on capturing guests due to this low profile, Grub seems unfazed, stating: “In order to do this, we would have had to have the hotel open in July. But we did not feel it was ready to open in July; the product and the service weren’t ready. I think we did the right thing by opening in the middle of Q4, when you still capture the first quarter [2015] market — you still have an upward trend until the beginning of May.”
“This project has been around for a while. Construction started four-and-a-half years ago, so to then delay the opening even longer for the sake of it being a better time to start in February or in September doesn’t make any sense,” he explains.
Saying this, Schukkmann admits it would have been easier for his team if the hotel had opened at a different time.
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“I would have preferred to open the hotel in August or September because a lot of the RFP of corporate contracts are done in September or October and a lot of the corporate accounts don’t accept any offers if you’re not open yet.
“So you lose a year of being on the hotel programme list of Barclay’s for instance, if they have 5000 room nights to give, but that’s the way it is.”
Schukkmann remains optimistic, however, pointing to the New Year and upcoming trade shows, namely Gulfood and Arabian Travel Market, both of which run for a week and are among the biggest shows DWTC hosts.
“So yes, we do add 33% to the inventory, but let’s not forget there is an influx of visitors coming into Dubai as well. The Trade Centre is showing a double-digit increase year-on-year, so having another luxury or five-star hotel on this strip, I think, is a plus for the city.”
To ensure a successful launch, the team has mapped out an aggressive sales strategy. Tactical offers have been launched, with discounts on rooms based on advanced purchase. Offers tag on free Wi-Fi, welcome cocktails, and upgrades, in addition to rates promotions.
“We are going literally from having 20 occupied rooms today, which is a very low percentage, to in a year’s time what our comp set is doing on average. Our concept and target market is similar to others on this strip and we are adding 33% more rooms to that comp set. So there will be a shockwave, and this will again stabilise,” Schukkmann says.
While he does not reveal the hotel’s introductory offer, a quick scan of rates shows how it will compete with its neighbours initially.
Rooms at Sheraton Grand currently start at AED 738 (US $200) per night for the week beginning January 4, compared to Conrad Dubai’s AED 1200 ($326), Shangri-La’s AED 1145 ($311) and Fairmont Dubai’s AED 1199 ($326).
Sheraton Grand is also turning to digital marketing and social media to promote the hotel. “Today, from a Starwood perspective, we place a tremendous emphasis on digital marketing. What we do at Starwood is ‘owning’ the guests. We have developed apps and other digital media campaigns and activities to ‘own’ the customer and drive that customer into our hotels,” Grub says.
Equally important is Starwood’s loyalty programme, Starwood Preferred Guest, which continues to evolve.
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