Site Visit: Rotana Centro Sharjah

Rotana Centro Sharjah general manager Michael Kasch openly admits the hospitality industry is in his genes, knowing from a very early age that his true calling in life lay in hotel management. “Both my grandparents owned small hotels, two near Aberdeen in Scotland and one in Belgium. My memories from that time definitely influenced my career path.”

Kasch claims he began planning his hospitality career before even graduating high school: “I was very comfortable with my decision to enter the hotel industry, even at 16 years old. I remember having to write an essay about what you want to be in life when you grow up; I said my dream was to go around the world and to open up five-star hotels.” While his professional life now centres on the UAE mid-market sector, Kasch enthusiastically states he is very happy in what he does for a living.

Having first arrived in the Middle East in 1999 for a position with JW Marriott Dubai as director of restaurants, his hospitality management career subsequently progressed through a variety of hotels including Amman Marriott Hotel Jordan, Taj Palace Hotel Dubai and Mövenpick Hotel & Residence Bur Dubai.

His career with Rotana now spans five years, though Kasch lost out twice previously when first trying to secure employment with the company. His big break came with Towers Rotana in Dubai on Sheikh Zayed Road in 2011, before being sent to Sharjah in 2013. “I remember the day I was transferred to Centro Sharjah very clearly, it was November 30 2013 when I received ‘the call’, then on the following day I came here [Sharjah] and I have stayed ever since.”

Rotana is very good at developing people within its company, says Kasch. “If there is an internal vacancy, anywhere, an existing employee that is eligible is welcome to apply for it. This is a fantastic catalyst to grow the company, you really have dedicated people with you.”

Since taking control of the three-star Sharjah property in 2013, Kasch has even been nominated and awarded the Rotana manager of the year award.

“It was very much unexpected, especially as I’m running a hotel in Sharjah, but the results here have been very impressive in the last two years – we continue to see growth, high occupancy and increasing rates. Both Rotana and our owners are happy. Our audits make sure we are doing the right thing in every department and every time we scored highly – in fact top five in the company; this put us in top spot for the award.”

OPERATIONAL PERSPECTIVE

From an operational perspective, Kasch claims the extent that brand recognition can impact occupancy of a new hotel cannot be underestimated. “Being a part of Rotana absolutely helped in the beginning,” he says. “For any hotel owner you should ways consider being part of a group, in my opinion. Think of your buying power and your reach into markets you haven’t considered yet. If a hotelier is only playing on a local market then okay, but what would you do if that market dries up? You will need to move to another market – ask yourself how long your reach is in that situation. Gone are the days of sending sales reps out around the world. There are so many branded properties now, if one hotel is branded and one is independent, assuming destination and locality are the same, the service guarantee in the branded property is 99% higher against the uncertainly of an independent standalone.”

He continues: “Look at Marriott, their reach is absolutely global; how will you, as a standalone complete with these names? I would never advise going alone, unless you have something so unique and so special that you yourself are a destination to visit; I wouldn’t do it.”

CHALLENGES IN SHARJAH

“We all know the financial situation that has hit the region in general. Sharjah was very popular with Commonwealth of Independent States (CIS) travellers. When I arrived at Rotana Centro Sharjah we would have 50 CIS guests staying here back to back – but then with the Ukraine crisis and the rouble devaluation they stopped travelling – this was a problem for us and Sharjah more generally, as this market represented a bulk of people occupying rooms in the emirate.”

He admits that this remains a big problem. “Centro was hit like everyone else. But we were able to diversify and attract new markets, which was great for last year, in fact it was our record year to date in terms of occupancy and rates.”

Kasch explains that this allowed the hotel freedom to upgrade and ‘embellish’ the property. “We have a few little projects here and there, and we support work for the community – things you may not be able to do if cash strapped.”

Kasch acknowledges that in 2016 Sharjah is still used by oil and gas corporate travellers and governments workers, so the falling revenue from oil has also ‘hit’ the hotel’s performance.

FUTURE MID-SECTOR GROWTH

Looking ahead, Kasch refers to the Sharjah Tourism Vision 2021, developed by the Sharjah Tourism Development Authority (STDA), and the emirate’s aim to attract more than 10 million tourists by 2021. “If those figures will be achieved remains to be seen, but the drive is certainly there. They [STDA] are pushing the quality of this destination and its hotels forward – and also inviting staff and general managers on training events, these are very helpful and the hoteliers don’t have to pay for them.”

He adds, “I work with Sharjah tourism board – in fact, all general managers in Sharjah are invited for meetings and conferences from time to time with STDA. I am part of the committee that will advise and give feedback upon what assistance we need in hotels here, they are supportive and receptive to our comments. For example, now they are bringing tour operators from other destinations globally, to promote Sharjah, which is very helpful.”

COMPETITION

Commenting on the growing competition between three- and four-star hotels in the region, Kasch admits that, “with the cut throat competition, we see prices coming down”. He adds: “The gap between star-ratings in becoming smaller all the time, this makes a big difference. Nowadays it is a buyers’ market, really, this is a customer’s market.”

Doing business in this competitive market, Kasch considers both the needs of the present and of future: “There is only so far and so deep you can cut, the deeper you cut the more damage in the long-term. If less revenue is coming in, there will be less investment capital to use, over time the property will suffer, especially in terms of up keep, like replacing old linen and updating uniforms. Training also declines in such circumstances, so service then deteriorates too. It’s a bad spiral that you need to get out of very quickly – it can damage your reputation very seriously.”

GREEN ISSUES

In keeping with the latest developments in hotel environmental sustainability, Centro Sharjah is involved in Rotana Earth – a comprehensive full annual report for the group as a whole. “This is a big focus for us, there is now so much more we can do, far beyond switching off lights and installing LED bulbs. For example we have ‘buy locally’ initiatives for our fresh produce, this benefits the local farmer; why buy from international suppliers when we can grow produce here? This is fair trade. I believe in this and the quality factor is the most important; you will notice this when you dine here. We also have a vegetable garden that we started two and a half years ago for our colleagues, both for food and social activity. We all work voluntarily in the garden and any produce grown is for the consumption of our staff – completely free of charge.”

Kasch highlights the more technologically advanced green developments at the hotel: “We also have a water treatment plant on our property. It takes waste water and makes it into grey water, suitable for irrigation. Remember we have nine acres of landscaping here, that would require tankers of water to maintain. Thanks to our water treatment plant, we recycle water mostly from the laundry systems and cooling system. This saves money and water, while protecting the environment.”

Despite taking ambitious environmental action, Kasch is also keen to focus his attention on smaller issues too.

“We have 100 date palm trees on our property now. We use the dates for consumption – both as free give-aways and in date jam in the hotel restaurant.” Last year alone Centro Rotana harvested 750kg of fresh dates, saving AED 12,000 (US $3,266) for the hotel.

COMMUNITY INVOLVEMENT

“Maintaining the status quo is easy, but what can we do as a company to benefit each other and the community? We send old uniforms to those in need, we hold blood donation drives among staff and guests, we recycle wherever possible and we visited a retirement home in Sharjah where during Ramadan, holding an Iftar for around 100 people.”

In closing, Kasch shares a few simple tips to other mid-market hotel managers in the region: “I believe it is important to stay humble and grounded, in this business you need respect and engagement to do the job well – and most importantly you need to do this job with all your heart.”