“We were fortunate enough to have the right team to advise us so that everything went smoothly, but I have other friends and colleagues who have opened hotels and I know what they faced,” he states, asserting that for new hoteliers to the region, the most important advice he would offer would be to “really study the costs”, while at the same time taking “calculated risks”.
“You don’t have to be emotionally attached to things at the hotel; if something isn’t working you have to have the flexibility to change it and adapt to generate further business,” he adds.
Having joined Seven Tides as CEO in 2011 in the midst of the global recession, Bin Sulayem faced uncertainties regarding the management of Royal Amwaj Resort, which was completed in 2010 and is now Anantara Dubai The Palm Resort & Spa.
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A management agreement with Mövenpick Hotels & Resorts came to an amicable end in 2012, and it wasn’t until early 2013 that Seven Tides signed a deal with Minor Hotel Group, the CEO of which is named as one of Bin Sulayem’s top five inspirations (see box).
The 293-room hotel was flagged Anantara Dubai The Palm Resort & Spa soon thereafter in September 2013, along with the 456-key Anantara Apartments. Having the resort open on time is something Bin Sulayem considers one of his key achievements to date. “During the crisis, we changed our strategy,” he explains.
“We focused on what was quicker to open and run, and we kept the rest on hold. My strategy was ‘let’s finish Anantara, then focus on starting with the Oceana property’.”
The Anantara Apartments were released just after the hotel in 2013, and marked the first operated serviced apartment property for Seven Tides.
In February of this year, the company achieved one of the highest rates so far for the apartments, selling one for AED 3980 (US $1083) per ft2. The serviced apartment element is now something Bin Sulayem vowes will be part of all Dukes properties.
“We’ve noticed it’s a very successful way of doing [serviced apartments]. You cater to a different market; people that want an investment rather than just a piece of real estate. It becomes a more attractive income-generating asset for the investor, and also being associated with a hotel and hotel brand offers additional facilities you wouldn’t get in normal residential apartments,” he says.
Dukes Oceana one- and two-bed apartments are targeted at the regional and international investment community, with Seven Tides guaranteeing a return on investment (ROI) of 10% per annum for the first five years. Sold as fully-furnished freehold residences, the 185 studios and 42 one-bedroom apartments range in size from 256-656 ft2 (studios) and 782-834 ft2 (one-bedroom apartments).
Prices start from AED 760,000 ($206,906.90) for a studio, with a one-bedroom apartment commanding up to AED 2.5 million ($680,614.80).
And while Bin Sulayem is very positive about Seven Tides’ relationship with Minor Hotel Group, he is confident that all future properties will be self-managed.
“We are running a very successful relationship that we’re extremely comfortable with,” he explains.
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