CEO interview: Rotana's Omer Kaddouri
We last spoke to Rotana CEO and president Omer Kaddouri in July 2014 when he was six months into his new role at the helm of the home-grown hotel management company, after co-founder Selim El Zyr stepped down.
At the time, the company had set itself a target of operating 100 hotels by 2020. And from what Kaddouri is saying, Rotana is well on its way.
Turkey saw the most recent openings, with Burgu Arjaan by Rotana and Tango Arjaan by Rotana marking the brand’s entry into Istanbul. It has also signed further agreements for two properties with Turkish construction company Dap-Yapi — the Dalga Residences and Vazo Residences, both located in Cevizli.
Kaddouri tells Hotelier Middle East: “We announced the opening of Turkey on the first of July, which was a really great milestone for us to be opening up hotels outside our immediate region.”
He candidly calls the GCC and the Middle East Rotana’s comfort region, and says getting used to procedures in different countries has been a valuable learning exercise — especially if Rotana wants to expand worldwide.
Kaddouri is optimistic that the hotels inTurkey will hit their targets at least by next year. He says: “Turkey is going to be a very big market for us. We have another five hotels to open in Turkey over the next three to four years. This is the first one [where we are] getting to know the market, and so far we’re very pleased.
“We have more than 300 keys and we’re running at occupancies of around 30% after two months and we’re hoping to hit the 60%-65% mark by the end of the year and for next year.”
The growth of Rotana outside its birth place has been organic. Kaddouri reveals that investors from abroad have viewed Rotana’s success in its home market, and approached the team for global agreements. “The majority of our hotels are actually being signed that way,” Kaddouri reveals.
He insists that Rotana’s comparatively smaller size in relation to the bigger global hotel brands is a plus point. “It’s my job and that of the development team to let investors know what we can do and how we’re not that different from the big boys. The only difference is that we’re a smaller company, so I can devote more time to the owner and the hotel, and give the same results.”
Kaddouri confirms what he said back in July 2014 — the group is looking at Europe, and is working “very hard to secure something in London”. This dream is why Rotana can be found at events like World Travel Market, pushing its USPs.
The busy CEO has also been to and fro’ Western Australia and Perth to look at potential opportunities. He teases: “It’s still cooking. It’s just simmering on the stove there.”
The Middle East will not be neglected. Dubai will see more openings, as well Abu Dhabi, Doha, Manama and Saudi Arabia. Africa is also a cash cow to be milked.
Iran is a market that Rotana was considering even before the sanctions were lifted. Now it has four hotels signed in Iran — two in Tehran and two in Mashhad — and the company is well set to take advantage of what will definitely be a new lucrative market.
“People are talking to us more and more about more hotels [in Iran]. We’re talking to some owners about Esfahan now. The opportunities are going to be tremendous, not just for our company but for every hotel chain on the planet.
Before the revolution, the chains were there, and I’m sure in the years to come, they will return.
“Is there opportunity? Yes. Are we going to take advantage of that opportunity? Yes we are already there. Can we also contribute to the hospitality platform in Iran? I’m sure we can too. There is going to be a lot of young Iranians who don’t know anything about the hospitality industry, and who need to learn. We can help, we can develop training at a basic level,” says Kaddouri.
The business has done well, by all accounts, in the two years since Kaddouri took over the reins. He spent much of the initial period meeting with the owners and explaining that the vision of the company stayed the same as it was under his predecessor El Zyr.
“If it wasn’t for these guys giving us opportunities 15-20 years ago to manage their properties, we wouldn’t be where we are today. I knew a lot of them already, because don’t forget I’m starting my 18th year with Rotana,” he says with pride.
“A successful hotel chain has to not only interact with its colleagues and customers but, more importantly, with its owners because the owners are giving us the opportunities.”
Those opportunities have been gratefully taken by Rotana, which now has five brands. But in a market where demarcation and catering to different segments of hte population seems to be the latest trend, will Rotana add more to its portfolio?
Kaddouri is candid: “We’ve got our five brands that are pretty well embedded now. The latest brand was Residences by Rotana. Are we going to introduce another brand to the portfolio over the next couple of years? I’d say ‘watch that space’.
“Because we do feel the need for something to happen to the company. It’s because we’re being asked; it’s because there is a space somewhere. And it should be pretty soon if we do.”
The continual growth Rotana is achieving is keeping Kaddouri busy, with 52 operational properties and 54 in development, largely outside Abu Dhabi and Dubai.
To ensure the company is ready to tackle the challenges in new markets, Rotana has invested in its team and is growing the organisation. “Today we have 13,000 colleagues. By 2020, when we’re going to have 100 hotels operating, we’re going to have double that number of colleagues.
“And we’re working on a lot of these things in parallel to that growth.”
Duroob is one such initiative. It aims to increase the number of local employees within the company. “When we started Duroob we didn’t really know where it was going to take us. Today we have about 2.6% of 13,000 [as locals].
Because Duroob is not just about the UAE locals being embraced into the hospitality industry. In Bahrain you have Bahrainis working, in Saudi you have Saudis working, in Oman, you have Omanis working, and so on and so forth.”
He continues: “Across the company, we have really worked hard to increase the number of GCC nationals working in the hospitality environment — and we’re taking it very, very seriously. Our chairman is a big advocate of driving GCC colleague employment. We have programmes, we have incentives, and we have development for them to come in at entry level but also to grow.”
While the UAE government has not put a formal percentage requirement on the number of Emiratis employed by companies operating in the country, Kaddouri is proud that Rotana is being proactive and driving the initiative.
Another challenge for Kaddouri is to raise the level of sophistication of Rotana's IT and loyalty programmes. The company has recently introduced a new customer relationship management system to try and manage its database better.
It also has a dedicated website for its loyalty programme, Rotana Rewards, which is starting to see a lot more online renewals and purchases.
But what’s really new with this system is the “instant redemption” where guests can use the Rotana Rewards card to use points to buy meals, for example. “If you have enough points you can pay for your meal then and there, as opposed to redeeming them the traditional way. A lot of people like that because a lot of people have points but don’t necessarily use them, and were looking for an easier way to redeem points.
“We wanted the card to be something that was easy to use, and for people to say it’s great value for money, hence the redemption idea. We feel that redemption is going to take us to another level.”
Kaddouri estimates this system will be launched by the end of 2015 among Rotana Rewards’ near 100,000 members. “Compared to the multinationals who have millions it’s not a lot. But we’ve also got to compare ourselves to them as a company. “We’re happy with the growth of our Rotana Rewards loyalty base, but we’re working tirelessly to increase the membership across all three cards. That’s a very big focus for us.”
Africa Calling
The growth of Rotana in Africa has “catapulted” according to Kaddouri. The brand has signed management agreements in Marrakech, Rwanda, Angola, Tanzania, Nigeria, and Kinshasa in Congo — marking its first entry in sub-Saharan Africa.
Kaddouri says: “North Africa and Sub-Sahara is really big for us. I think we will be one of the largest players in Africa over the next 10 years.
“So far, Centro is the fastest moving brand in Africa. A lot of people are travelling to Africa on business and on fairly realistic budgets.
“Except in Dar Es Salaam where we’re opening up a five-star Rotana, and Kinshasa, which is a hotel apartment. the other properties are mainly Centros.”
When asked about the Africa boom, Kaddouri says: “It’s fairly fresh. It’s only the last couple of years there has been a discussion about lack of quality hotels. You don’t need to open five-star hotels across Africa, you need to have good quality, healthy, secure and reliable hospitality.”
Scheduled Openings
Capital Centre Rotana, Abu Dhabi, UAE
Opening Q4 2015
Facilities: 315 luxurious rooms, four dining outlets, swimming pool, Bodylines Fitness Centre, sauna, steam rooms and massage treatment rooms.
Dalga Residences by Rotana, Istanbul, Turkey
Opening Q4 2015
Facilities: This two-tower project offers 138 apartments which range from studios to 4-bedroom apartments over 19 floors
Downtown Rotana, Manama, Bahrain
Opening Q4 2015
Facilities: 248 rooms and suites, four restaurants, Bodylines fitness & wellness club, rooftop swimming pool, sauna, jacuzzi, steam room and relaxation area, in addition to seven fully equipped meeting rooms and a ballroom.
Centro Shaheen, Jeddah, KSA
Opening Q1 2016
Facilities: 252 rooms and studios in addition to Bodylines Fitness and Wellness Club, outdoor swimming pool, treatment rooms, sauna and steam rooms.
Vazo Residences by Rotana, Istanbul, Turkey
Opening Q1 2016
Facilities: This two-tower project offers 134 apartments, which range from studios to 4-bedroom apartments.
Kin Plaza Arjaan by Rotana, Kinshasa, The Democratic Republic of the Congo
Opening Q1 2016
Facilities: 101 fully furnished hotel apartments, four food and beverage venues, in room dining service, Bodylines Fitness and Wellness Club, steam and sauna rooms in addition to five fully equipped meeting rooms.
Centro Waha, Riyadh, KSA
Opening Q2 2016
Facilities: 290 rooms and studios in addition to Bodylines Fitness and Wellness Club, outdoor swimming pool, treatment rooms, sauna and steam rooms.
Erbil Arjaan by Rotana, Erbil, Iraq
Opening Q3 2016
Facilities: 154 fully-furnished and equipped hotel apartments with two restaurants, in-room dining service, Bodylines Fitness and Wellness Club, a boardroom and five fully equipped meeting rooms.
Centro Olaya, Riyadh, KSA
Opening Q3 2016
Facilities: 156 rooms and studios in addition to Bodylines Fitness and Wellness Club, outdoor swimming pool, treatment rooms, sauna and steam rooms.
Sulaymaniyah Rotana, Iraq
Opening Q3 2016
Facilities: 240 luxurious rooms and suites with six F&B outlets including a signature restaurant, along with a Bodylines Leisure and Fitness Club, outdoor swimming pool, steam, sauna, jacuzzi and massage rooms in addition to a ballroom and five fully equipped meeting rooms.
Centro Corniche, Al Khobar, KSA
Opening Q1 2017
Facilities: 247 rooms and studios with three dining outlets, swimming pool, fitness centre, treatment rooms, sauna and steam rooms and three fully equipped meeting rooms.