Value Travel
Adding to the value chain
With mega infrastructure projects cropping up across the region and a hospitality pipeline higher than last year, high-quality, extended-stay brands are upping their game
There were 693 hotels totalling 176,612 rooms under contract in the Middle East/Africa region, according to the July 2015 STR Global Construction Pipeline Report. This represents a 19.5 per cent increase in rooms under contract compared with July 2014 and a 45.4 per cent year-over-year increase in rooms under construction.
However, in line with the government’s strategy, Dubai has been seeing a significant shift to mid-range properties away from luxury hotels, it was revealed in a recent study published by Jones Lang LaSalle (JLL).
The report said that 44 per cent of the 3,600 new hotel rooms to enter the Dubai market in fourth quarter of this year are mid-market, having a three-star or lower rating. Dubai’s luxury market, bursting at its seams, will be challenged by a flurry of mid-segment properties with more competitive room rates, as a whopping 69 per cent of the hotels are four-star or less.ADDING STOCK
“Ascott will launch the Citadines brand in the GCC this year with Citadines Al Salamah Jeddah and in the next two years in Dubai and Muscat,” informs Vincent Miccolis, Ascott’s area general manager for the Gulf Cooperation Council. “This complements the diversification to increase the mid-range hotel apartment sector, especially in the UAE where there is a concentration of luxury hotels and hotel apartments. This mid-range hotel apartment market caters to a growing and varied global market.”
Ascott is a global leader in serviced apartments and serves the extended-stay market, which is underserved in the GCC.
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Miccolis, Hall and Seçgin |
The group has also broken ground in Ascott Olaya Riyadh and Somerset Corniche Jeddah in Saudi Arabia, Ascott Culture Village Dubai in the UAE, and Somerset Maslak Istanbul in Turkey, all of which are due to open in 2016. Citadines Culture Village and Citadines Al Ghubrah Muscat are slated to open in 2017.
In total, these extensive developments with add 1,550 apartments to its portfolio, more than tripling its portfolio in the next two years, a growth of more than 40 per cent per year.
“The population growth driven by diversification strategies, in particular infrastructure projects, are strengthening the demand for longer-term accommodation,” explains Miccolis. “The hotel apartment sector is benefiting from an increased influx of expatriates working on longer term assignments, requiring accommodation of up to a year. Security and international quality of accommodation and service standards are key drivers to the increased demand of hotel apartments across the region.”ASCOTT’S STRATEGY
Ascott’s growth strategy is supported by a diverse mix of motives such as space, in-room facilities, personalised service and security. The continued focus for product and service innovation has seen the announcement this year introducing Internet of Things technology, to design a next-generation serviced residence that will offer guests a seamless smart living experience.
The technology will enable guests to control and manage devices within the serviced residence through a single application which connects personal and home devices – from refrigerators and washing machines to smart TVs, smartphones and even wearable devices – through an integrated platform and server.
To bring its vision of a next-generation serviced residence to life, Ascott has entered into an exclusive partnership with Samsung Asia, a unit of Samsung Electronics. Ascott aims to test the new technologies at selected Ascott serviced residences by the first half of 2016, with plans to roll out to its properties across over 20 countries globally in phases.
Equally, promotions also play an important role in maintaining a steady flow of business. “As we are about to launch three properties in Jeddah, Saudi Arabia, we have excellent opening specials in September for transient holidaymakers and longer-staying guests looking for a hotel apartment that is yet to be experienced by way of quality of product and international service standards,” says Miccolis. “From October, we are offering up to 25 per cent off the best available rates when you book in advance across the three properties. Advance promotions are also available at our properties In Dubai, Bahrain and Qatar.”AL BUSTAN OFFERS
Dubai’s long-time extended-stay brand Al Bustan Centre & Residence also believes in timely promotions and offers to keep the inventory going. This year, it offers early bird discounts for stays during certain exhibitions, if bookings are made 15 days in advance. High capacity exhibitions such as City Scape (September 8 to 10); Gitex (October 18 to 22); and The Big 5 (November 23 to 26) are all included in the promotion.
Moussa El Hayek, chief operating officer of Al Bustan Centre and Residence explains, “Dubai is well -known for its meetings, incentives, conferences and exhibitions (Mice) market, which plays a significant part for the hospitality sector. Over the years, these exhibitions have undoubtedly become the most important exhibitions in the Middle East with ever-increasing participations from various countries.” GUESTS FIRST AT GLORIA
Gloria Hotel, another extended-stay product located on Sheikh Zayed Road in Dubai, will be renovating its three executive floors – a total of 100 rooms and suites as well as its executive lounge. The executive suites will be equipped with new fixtures and fittings as well as custom-made soft furnishings matching each of the four interior design styles – Classic, Modern, Californian and Mediterranean.
Stephen Hall, the cluster director of business development, reminds us that the basics of hospitality remain a “strong dedication to guest satisfaction”, and this is the main direction the industry is moving towards. “Our location and convenience to all major tourist attraction coupled with a quality product has carefully positioned us a major and very popular four-star venue located directly outside Internet City metro station.”
By Rashi Sen*******************************************************************************************************************The halal perspective
The Muslim religion is the second-largest and fastest growing religion in the world, with Muslim consumers expected to reach 26 percent of the global population by 2030.
Muslim consumers seek products that cater to their religious needs and comply with Islamic requirements: from halal production process to halal labelling and packaging. The lack of permissible offerings has led to a surge in demand, as Muslims grow hungry for trendy products and services adapted to their lifestyle.
Halal travel, therefore, cannot be ignored as a market.
We speak to halal travel bookings expert Ufuk Seçgin, marketing manager of London-based HalalBooking.com for further insight into the value travel side of things. Any budget hotel that wants to capture the halal market has some basic, easy guidelines to follow.
Depending on the extent of importance a property aims to give to the halal market, “either switch completely to the dry hotel concept or where possible, reduce alcohol offer to a minimum,” advises Seçgin. “This translates to reduced alcohol advertising on the hotel premises, on the restaurant menu or restaurant bar, and remove any alcohol and non-halal foods from the minibar for halal travellers as a minimum.”
Seçgin advises, “Where possible, provide a prayer mat, direction to qibla and local prayer times in the room. Where possible, offer toilet showers in all toilets in the hotel.”
Again, depending on the property’s inclination, Seçgin advises to either switch to a complete halal food menu, meaning no pork, all meat from a halal meat supplier, no alcohol, gelatine and animal fats in the food preparation process. If this is “not possible, offer some halal food options on the menu as a minimum.”
“Where possible provide two segregated gyms, or offer ladies-only hours a few hours a day as a minimum, same applies to a spa,” he adds.
The list of considerations may include introducing modest dress codes for staff, turning off any inappropriate music or TV programmes in the communal areas and removing any inappropriate TV channels in the rooms.