Hotel apartments currently make up a significant segment of Dubai’s budget and mid-market offerings, and according to London Crown One general manager Praveen Nanda, their future growth rate is set to overtake hotels in the region. “I think the trend for hotel apartments will continue to grow over the coming years – in my opinion it will far outpace the growth in the budget and mid-market hotel segment.”
With the influx of new family attractions arriving into the emirate, including those by Dubai Parks and Resorts, an opportunity for hotel apartments to accommodate a new type of tourist has been created. “We see many tourists arriving with families, often young children; many hotels will only offer families one extra bed, or a fold out sofa bed, here at London Crown One you have your own apartment.” Nanda continues: “In a hotel apartment your children are with you, they are safe, the layout is open and you have your living areas and your bedrooms all together; this concept will appeal to new visitors and the sector is sure to grow.”
Located in Bur Dubai, on the western side of the Dubai Creek, London Crown One is near BurJuman shopping mall, the Gold Souk, Meena Bazaar, the Dubai Museum and is only 15 minutes from the Dubai International Airport. The hotel has a target market of larger families arriving predominantly from India, African nations and the GCCs. Each apartment offers spacious, self-catering apartments with a private balcony, and features a large living room, dining hall and fully equipped kitchen. “Originally there was mostly hotels here in Bur Dubai, but the owners felt there was a gap in the market for hotel apartments, this led to the opening of London Crown One, and this decision has surely paid dividends,” says Nanda. London Crown One has 140 fully furnished apartments; of which 72 are one bedroom, 56 are two bedroom and 12 are three bedroom apartments. “Like many hotel apartments in Bur Dubai, this was actually an residential building originally, then the owners converted it to meet the new and growing demand for hotel apartments.” London Crown One bedrooms are furnished either with a King size bed or twin beds. Most of the apartments open to large balconies, and all rooms have a daily housekeeping service. Situated at the lobby level, the hotel restaurant serves a buffet and a la carte menu for breakfast, lunch and dinner, in addition to room service offered daily from 6am to midnight providing a selection of Arabic, Indian, Chinese and international cuisines.
“In this segment we get a lot of repeat bookings, so much so that in 2015 we achieved 82% occupancy,” says Nanda. “I think repeat bookings are the key to success for London Crown One – it is very difficult to go out and get new guests here in the UAE. However if guests like what you are providing and you look after their needs, they should come back.” Nanda continues to highlight a simple, long running and effective incentive programme at the hotel to encourage repeat bookings; returning guests receive free breakfast at the hotel restaurant throughout their following stay. “You must deliver on what you promise,” he adds, speaking on the tough competition in Dubai. “I offer you a clean room and a clean bathroom – which I will promise you, because I’m a budget hotel I do not promise luxuries. But there are many other hotel apartments here offing very similar products, the market is tough.”
Nanda acknowledges the impact that future mid-sector growth is likely to have on London Crown One: “Dubai is commercial – it is hard fought business. I would say that here, the only way you win in business is by delivering your promises. If the guest knows they will be serviced well – and that their vacation will not be ruined by something going wrong with their accommodation, you will increase your chances of success.”
Nanda offers an example: “We recently had a group arrive from Singapore for a New Year’s Eve vacation. We had huge occupancy at this time, with a lot of arrivals and departures daily. We pulled in two additional bell boys to help out. But one gentleman in particular became irritated at having to wait for the bell boy to return for his luggage, so he carried it himself. He later complained. He said no one was available to carry his luggage after a long and tiring journey. I didn’t want to remind him that we are a three-star property, so I told him that we made a mistake, I offered to correct the situation by providing free airport transport at the end of his vacation. Needless to say he was more than satisfied.” Nanda emphasises, where it is not expensive to correct a complaint or issue, it is essential do something that makes both parties happy – in his opinion this feeds directly into retaining guests and securing future bookings in an increasingly competitive market. “So yes there are challenges but mid-market hotels must look for ways to resolve them quickly – remember people talk to each other, and social media is huge today; one guest with a complaint can easily cost you multiple bookings. Sort it out, nip it right there and make the guest happy – let them get on with their holiday.”
Attracting new guests, on the other hand, is a challenge, says Nanda. He points out that his target market is large, but with new properties continuing to open, there is a strong supply of competitors fighting for business. “People in this market are looking for good deals, so attracting new guests will become a real challenge” he begins. “As far as I see it, 2016 and 2017 will not be very good years for hotel apartments. Fresh properties will be looking to grab our business, they’ll be watching our prices and monitoring our services, trying to shift loyalty from us to them.”
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