The Al Maha Arjaan by Rotana in Abu Dhabi has established itself in the corporate and long-stay segment, with reported occupancy figures of 85%, but an impending overhaul was on the cards after 15 years of operations.
Under the stewardship of GM Sherif Madkour, who has been with the property for little over four years now, work began almost a year ago. “We had to make sure our guests would not be disturbed,” Madkour tells Hotelier.
“We devised a strategy with our contractors from the outset that we would work on two floors at a time, leaving a buffer of one floor, and taking on the next two. We also made it clear that work would only go on from about 10 am to 6 pm,” Madkour adds.
RATIONALE AND OBJECTIVE
Madkour says: “The Arjaan is a long-staying brand, so most of our guests stay with us for long periods of time. Out of the 288 rooms, half of them are suites between one bedroom apartments to penthouse suites,” he says.
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He adds: “The hotel is very well established in the market with a substantial share [of business]. We are constantly above our comp sets. Our business mainly comes from the oil and gas companies, lots of corporate accounts stay with us. We also have a share of the normal FIT segments. Another segment of our business that does well is the online side of things — from where we have got 15% of our bookings.
“We have three meeting rooms and the MICE bit of the business has been doing well. The ballroom takes about 100 pax, along with two small board meeting rooms.”
CONCEPT, INVESTMENT AND RENOVATION
Madkour, a Rotana veteran having served across different properties for a decade, was cautious about the renovation strategy. He was, however, clear about, “leaving no area of the hotel untouched”.
“We did not renovate just because business was going well and this property runs at about 85% occupancy for most of the year. We have to keep up with what’s new and the trend in the market now is to look fresh and young, and that’s why we looked at doing a complete renovation,” Madkour says.
“The hotel was in a good condition and well maintained, albeit a little outdated. We needed to come up with a modern concept, and something which is trendy that matches the guests and is able to compete in the market for the next 10 years. When people stay at the hotel, they like slightly upgraded rooms and higher technology.”
The budget set aside for the entire project was AED 50 million (US$ 13.6 million) and Madkour breaks down the changes that were implemented.
He says: “Everything was changed in the rooms, and in the bathroom we changed the ceilings, the marble bits around the sink and added a few design elements. The bedrooms had all its fit-out changed — everything from the curtains to the carpets are new. The beds are brand new as well. On the entertainment front the rooms now feature a smart TV along with an IPT phone. We added a few lamps and changed the desks, along with LED lights as well.”
Renovation work is still underway; Madkour says the property is 80% done and it is anticipated that “everything will be complete by April or May”.
Another area that was tackled was the public areas, lobby and recreation facilities. “Our spa, for example, has been doubled in size. It’s a massive upgrade from what we had before, from the relaxation areas to the treatment rooms,” he says.
A major part of the refurb, Madkour says, was transforming the F&B: “If you saw the outlet before, it was a regular F&B offering that is part of a hotel, with a normal buffet and a regular setup. And because it’s the only outlet at the property it was important we thoroughly transformed it.”
The resulting Café 302 came about and Madkour gives an insight in the concept. “The idea behind Café 302 was to give it a standalone feel and our location and positioning in the Hamdan Street added to it. It is also a concept that Rotana thought would be a good fit with the Arjaan brand, and we are the first hotel to roll out this concept.”
RESULTS TO DATE
The renovation, according to Madkour, has led to positive comments. “The feedback has been positive, they appreciate what we have done. Café 302 has been well received by our long-stay guests and even by those who work or reside in the community. There is a retail element to it, which allows guests to purchase cooking items or grab food on the go.”
Madkour is confident about the property’s future. He comments: “The property is now in a very strong position and will be able to compete in the market for the next 10 years. The supply increase will always be there. But, more importantly, there is a strong demand as well.
“It’s only the ADRs that are a bit affected because prices are going down now. Regardless, this property is going to continue to be a huge success in the Abu Dhabi market.”