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Local hotels look at bigger picture
UAE operators adopt international standards to compete with foreign players.
- By Nadia Saleem, Staff Reporter
- Published: 00:43 May 9, 2008
Dubai: As the UAE encounters tourist influx of colossal numbers, and Dubai's occupancy rates reach the high 90s, international as well as home-grown hotel brands are cashing in on the demand.
Currently, the pie is large enough for everyone to obtain a piece and market requirements are widespread to rely significantly on both, industry officials say.
"There's room in the market for everyone. As long as the UAE government keeps striving to improve infrastructure and bringing in investors, the growth will be able to feed everybody for many years to come," said Omer Z. Kaddouri, area vice-president, Dubai and Northern Emirates, of Rotana hotels.
Among the local leaders are brands like Jumeirah, which operates many of the major icons in the Dubai hospitality industry such as the Burj Al Arab, Jumeirah Beach Hotel, Jumeirah Emirates Towers and Madinat Jumeirah, a property that encompasses hotels of Mina Salam and Al Qasr as well as retail space.
Other local names include Abu Dhabi-based Rotana Hotels and Suites, Dubai-based Hospitality Management Holdings which operates four brands including Coral, Tamani Hotels and Resorts, Flora and Habtoor Hospitality with Metropolitan hotels among their leading brand.
Julius W. Robinson, vice-president, sales, Intermediaries, Marriott, said, "In a market like the Middle East, there's so much new demand that's able to keep up with the supply."
This leaves enough opportunity for local hospitality brands to establish themselves in the market and even spread their wings to cover international markets. South Africa, Malaysia and Indonesia are the present favourites.
"The demand is driving local brands to expand their horizons to international markets," said Khulood Abdulla Al Rostamani, chairman of Tamani Hotels and Resorts, co-founder and executive director of KM Holding.
However, she says the task will take time. "International brands have been around for years and their identity is something to be reckoned with."
However, the UAE brands have to continuously strive to compete with international hotel chains even though they might have an advantage on some aspects. "We match what international brands do and we bring the same calibre," Al Rostamani said.
The group recently launched the first Islamic-branded hotel in Dubai and has an investment worth $1.2 billion by its holding company KM and private investors.
Local knowledge
Sharing the secrets of local edge, Kaddouri said, "We are successful because we know the lay of the land."
With local owners and dealings with business people in UAE of all nationalities, the company officials say they know what the market is looking for. "We have seen the market develop from zero to today. The international experience brought together in the form of our company, is what gives us the edge over international brands," Kaddouri said.
Rotana hotels are seeing growth in the region with 25 operating hotels in six countries. By 2012, the chain will expand to more than 60 hotels.
Michael Noblet, managing director, Hospitality Management Holdings thinks their success is attributed to similar concepts but added to that is their transparency and efficiency.
"What is important compared to international chains is the speed of our decision-making. We don't have to go through heads in other countries. This is important as everything around us is moving fast in Dubai's competitive environment."
Nisha Khan, assistant sales manager, Flora, said, "Local brands have the added advantage of gaining people's confidence in terms of dependability as the hotel understand local culture. An international brand would lack that feel."
Dubai is one place where international brands are on good terms with local operators. "We all work closely together. There are benefits as we solve our problems together," said Kaddouri. Marriott has partnered with other regional brands. Robinson finds this to be unique to the region saying that, "Even though we are competitive here, there is a cooperative situation."
An international companies working alongside local names, Kaddouri said, "It's a very healthy environment for hotels at the moment. We never say that we are better. Instead, we're just different than others."
He adds saying the company has its own philosophies and drives. "We want to prove to the multinationals that in every city and in every area of Dubai today, you will have a locally branded hotel near a multinational icon," said Kaddouri. "The local brands are here to stay and the multinationals are welcomed."
Robinson said, "Local brands create a new playing field from a product and service perspective and it just raises the game for everyone."
How do you rate hotel brands in the UAE compared to international operators? Do you think they are living up to the expectations of their guests? Would you stay in one of these hotels given the option?
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