With current market trends, if you can keep overheads low and pricing competitive, you?ll surely see yourself through the recession.
Spyro Hotel Supplies managing partner Saad Liaquat reveals how low overheads and competitive pricing has guaranteed the company’s continued success throughout 2009.
In 1998 bowling alley marketing manager Saad Liaquat spotted an opportunity in a new hotel project under construction in Dubai. Having discovered that developers were looking for a reliable furnishings supplier, Liaquat wasted no time obtaining a list of required items and giving a quote; at which point Spyro Hotel Supplies was born.
More than a decade later and managing partner Liaquat has nurtured the Dubai-based venture to become a key hospitality supplier with sourcing and manufacturing offices worldwide offering some of the best global brands, including Cucina Latella, Archipel, Wasserstrom, Foundations, Daima Barcelona, Crossbow and Erwyn Group.
Diverse product range
The company’s core business is hotel furniture, but Spyro also offers a variety of hospitality products including staff-canteen furniture, lockers, back-of-house shelving and office furniture, guest-room products, customised products, decorative displays, and housekeeping and stewarding products.
Furthermore, the company specialises in turn-key staff housing furniture fit-outs and claims to be a pioneer for the concept in the Middle East. “Our target is to provide all furniture and operating supplies and products required by a hotel.
“We work with a select group of clients and exhaust all resources to satisfy our clients,” adds Liaquat.
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Challenges and chances
More than half of Spyro’s revenue is generated from the Middle East, with the majority coming from the UAE and the rest from the company’s recent exposure to North Africa and Europe. Liaquat also acknowledges “exciting” growth in Qatar and Oman.
“Considering the recent economic downturn, I think the Middle East by far has been more resilient compared to global markets. You have to realise that unlike the West or the Far East, the Middle East tourism market is still at an infant stage and growing rapidly. I mean, there are still so many hotel brands that have not even entered the market here,” says Liaquat.
In fact, Liaquat has used the youth of the Middle East market to Spyro’s advantage. “The majority of our work has been with pre-opening teams; this is always a challenge, but we’re old hands at it now”, he says.
“With current market trends, if you can keep overheads low and pricing competitive, you’ll surely see yourself through the recession.”
Tapping into new markets and spotting trends
Among other projects, Spyro has spotted opportunity in the growing number of budget hotels entering the region. “They want simple, practical solutions that are less extravagant and great value for money so they can pass the savings onto clients”, he says.
While increased market competition with more companies vying for the same projects has led some suppliers resorting to “edgy behaviour” to make a sale, Spyro has maintained its constant growth through diversifying and tapping into new markets, according to Liaquat.
Due to the “melting pot of cultures” in the region, Liaquat says it is difficult for suppliers to peg a trend; with some clients having an Arabic taste and others preferring European or American influences for example.
However, Spyro has witnessed its customised products such as hotel furniture, staff lockers and staff canteens being popular across the board, as well as its best sellers; turn-key staff-housing furniture and pre-opening engineering tools.
“Every hotel in the Middle East wants to be very unique, which is what makes it such an exciting and different market. You see a lot of customised products, high-end technical products and new ideas; and that is where Spyro’s expertise always comes in”, says Liaquat.
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