Dubai: Hotel rates are increasing as demand is coming back, according to Tony Potter, Chief Executive Officer and Managing Director of CHI Hotels & Resorts (CHI Ltd.) the operator of the luxury Corinthia Hotels brand across the world.
The global tourism industry is on the road to recovery, he says. His company is planning to expand its footprint in the UAE and the region.
His company is also the exclusive operating firm for the Wyndham Hotel Group (WHG) managed hotels in Europe, Africa and the Middle East (EMEA), trading under the Wyndham and Ramada Plaza brands.
In an exclusive interview, he shared his views on the tourism industry. Excerpts:
Gulf News: What is your outlook for the global tourism/hotel industry?
Tony Potter: There's lots of good news out there. Statistics show that the global tourism industry is definitely on the road to recovery and we're seeing good signs when it comes to booking patterns, especially when it comes to MICE business and corporate travel.
However, at this juncture it is important to note that recovery may not be as quick as people expect.
For example, London is currently buoyant along with other locations in Europe such as Prague and Russia. Hungary is well on the road to recovery, but slower in comparison.
So really it is a matter of location, region and current market demands.
But it's all moving in the right direction.
How do you see the Middle East's/UAE's hotel and tourism industry — current status and short-term outlook?
Again there is good news. We are seeing an upswing across the region and recovery in both volume and rates. We are delighted to see the growth in tourism figures in Sharjah, as this is one of the gateways that we are most interested in.
Expected growth in 2011 is between 5-10 per cent compared to 2010.
Our plan to expand in this emirate with the Ramada brand remains on track and the tremendous development we're seeing in this upcoming market is heartening.
This is what has prompted us to come into this market with the Ramada hotels and suites, offering the highest standards of service for both leisure and corporate travellers and incredible value for money.
Do you think this part of the world is going to suffer from oversupply? How do you see the UAE's hotel industry cope with falling yields?
Again it varies.
In any downturn, and we've just been through an incredible one, the sort of rapid growth and development we've seen in a place like Dubai is likely to lead to oversupply.
But Dubai is lucky in that it has great infrastructure, be it the retail or sports facilities, and this supports the kind of supply that exists and will eventually warrant the immense growth in hospitality.
As the former CEO of Millennium Hotels, I have seen Sharjah move forward in a much more controlled manner and that bodes well for us as we open the Ramada Sharjah — the first Ramada branded hotel and suites property in the emirate of Sharjah.
And it's safe to say that in addition to this, what also stands us in good stead here in Sharjah and perhaps in the UAE is the fact that there may be oversupply when it comes to five-star properties but the hotel apartments and suites sector is still yet to be explored fully and the potential in this sector is huge.
Value for money and exemplary level of service are what we bring to the table.
What is your game plan for the region and the UAE? How many hotels do you want to operate in the UAE and the GCC?
We want to get into the main gateway destinations with our high-end offering, Corinthia luxury hotels, a traditional five-star deluxe brand.
Apart from the Corinthia Hotels that already form part of the exclusive Wyndham Grand Collection, CHI will also be operating a number of Wyndham and Ramada branded hotels that are currently under development.
As a management company, we're looking to expand with the Ramada opening and are delighted to announce the Ramada Sharjah opening this week, followed by the Ramada Dubai soon.
We're also keen to have at least two or three additional properties in these emirates as well as in Abu Dhabi.
Egypt and North Africa are also in our pipeline. This is such a dynamic region and we're planning to become an integral part of the hospitality industry here with our distinctive offering.
What is your company's USP? How are your hotels different from others?
We are a collection of individually-designed, distinctive five star hotels.
We launched our first property — the Corinthia Palace Hotel & Spa in Malta — as a family business over 40 years ago and our passion for perfecting craftsmanship both in authentic design and in intuitive, warm service remains today.
We have grown through the acquisition, development and management of landmark hotels in cities as diverse as St Petersburg, Budapest, Malta, Tripoli, Prague, Lisbon, Khartoum, and soon, London.
Ever since our joint venture with Wyndham Hotel Group — which names us as the hotel management company for Wyndham Hotel Group managed hotels in Europe, Middle East and Africa region operating under the Corinthia, Ramada Plaza and Wyndham brands — we have moved swiftly to pioneer all three brands in new destinations across Europe, the Middle East and North Africa.
With this new opening, the Ramada Sharjah and further additions to our managed portfolio such as the Ramada in Dubai, our management capabilities are going to be amongst the strongest in the region.
We will draw on our vast management expertise to ensure that this new property in Sharjah will become yet another pearl in the string of international successes garnered by CHI over the years. It should also serve as a catalyst for the company's further expansion in the region.
Ramada is a well-known brand and we're trying to bring it into the ME as an upper-tier limited service brand… with this property we're bringing high quality suites and apartments into the mid-market position.
How many hotels do you have globally? How big is your pipeline?
In the past 50 years, the Spirit of Corinthia has spread from the Mediterranean island of Malta to Budapest, Prague, Lisbon, Tripoli, Khartoum and St Petersburg, establishing a dynamic group of luxury hotels in some of the most vibrant and colourful cities in Europe and Africa.
In early 2011, Corinthia London will open its doors; a fabulous new 21st century flagship for this fast-growing luxury hotel family in the heart of Whitehall, near Trafalgar Square and overlooking the River Thames.
CHI is the exclusive operator of the luxury Corinthia Hotels brand as well as the Wyndham and Ramada Plaza brands in Europe, Africa and The Middle East.
CHI draws on a heritage of over 48 years in delivering high quality services to hotel guests and an optimum rate of return to owners and investors in diverse business environments.
CHI's experience extends to management of luxury and upscale properties in city and resort locations and products ranging from boutique to conference and Spa hotels. CHI is owned by International Hotel Investments plc (70 per cent) and Wyndham Hotel Group (30 per cent).
Why do hotels charge outrageously — such as $300-$500 per night? Don't you feel it's too much?
The supplier will always try and maximise yield and value. The high prices reflect demand which has traditionally been high in this part of the world.
In fairness it highlights the high quality product on offer. With climate and stability and consistency, the Middle East offers great value and people pay these prices because in the Middle East the expectations are high and met.
Having said that this is another reason we've identified this strong niche for suites and apartments —we're offering the 5-star hotel quality for a fraction of the price.
We're also giving customers more choice — self catering or getting out and sampling local restaurants in Sharjah, ideal for long-stay guests.
How are your pricing per room per night?
Pricing is aimed at providing value. We are well below the price of a normal 5-star hotel.
We will aim to be at the top end of the mid-pricing range and offer great service, exemplary in-room facilities and very good value for money.
As far as pricing is concerned it usually depends on a lot of factors i.e.: length of stay, season etc., however we can say that prices vary from Dh550 up to Dh1,100.
However we are launching the Ramada Sharjah to the market with an attractive inauguration rate.
THROUGH THE YEARS
Tony Potter is Chief Executive Officer and Managing Director of CHI Hotels & Resorts (CHI Ltd.) He joined the company in September 2006.
Before joining CHI, Tony was group chief executive officer, Millennium & Copthorne Hotels, and an executive director of Millennium & Copthorne Hotels.
Prior to that, he held the post of chief executive officer at Choice Hotels International Europe and was an Executive Director of Choice Hotels Europe.
Previously, Potter spent 19 years with Hilton International, in which he was also a director. During this time he held the positions of senior vice-president Europe, senior vice-president North America and Canada and managing director of Hilton UK.
In the earlier part of his career he was general manager of various hotel properties including the London Hilton on Park Lane and managing director of the Langdale Hotel, Spa, Leisure and Timeshare Complex.
Before joining Hilton International he held various general management positions with Thistle Hotels, De Vere Hotels and Leisure and General.
He is a graduate of Birmingham College of Food, Tourism and Domestic Art and an Honorary Fellow of that college. He is also a Visiting Fellow and Lecturer at the University of Plymouth from where he holds an Honorary Master of Science degree and is a Fellow of the Institute of Hospitality.
In December 2006, Potter was honoured to receive the Guild of Travel and Tourism and Reed Travel Exhibitions Meridian Club's "Outstanding Services to Travel" Award for 2006.
Potter is also a member of the International Advisory Board of Hotels' magazine.
