Pioneers still holding their own
The pioneer stands proud even today. More than two decades ago Metropolitan Hotel Dubai stood alone as the first five-star hotel along Sheikh Zayed Road. Visitors in Dubai would have wondered what a five-star hotel was doing in the middle of nowhere. Now, like a lodestone it has drawn the world of hospitality around itself. Metropolitan Hotel Dubai is in the middle of everything in a location much coveted because of its easy access to and from many of the city's attractions.
Established over 25 years ago, Habtoor Hotels the company behind the Metropolitan Hotel Dubai, is a pioneer in the hospitality industry in the UAE. A subsidiary of the Al Habtoor Group, Habtoor Hotels is also the name behind Habtoor Grand Resort & Spa, Dubai; Metropolitan Palace Hotel, Dubai; Metropolitan Deira Hotel; Metropolitan Palace Hotel, Beirut; Habtoor Grand Hotel & Convention Centre & Spa, Beirut; and the Monkey Island Hotel, United Kingdom. In Lebanon, the company established the country's first full-fledged theme park Habtoorland.
A home-grown brand of hotel chain, Habtoor Hotels is looking forward to establishing more firsts as the hospitality boom in the region continues. H speaks to Rahim Abu Omar, Chief Executive, Habtoor Hotels. He tells us of his company's vision, values and plans and gives a glimpse of what it takes to succeed in this business of people. More importantly, this pioneer that once stood alone, wants to do just that go it alone. No partnerships for Habtoor. This is a stand-alone company.
How would you describe Habtoor Hotels' growth in the last 25 years? As a pioneer, can you cite some of the 'firsts' that you introduced in this industry?
Habtoor Hotels' corporate structure is really unique because it's the only hotel chain, which solely manages and owns its hotels. We don't manage hotels other than our own. The Habtoor Group owns the properties and they are managed by its subsidiary Habtoor Hotels. There are more advantages than disadvantages in this case particularly in the decision-making process as communication is only internal.
As far as firsts go, we built a hotel right in the middle of nowhere on Sheikh Zayed Road. Now, we're in the middle of everything. This hotel Habtoor Grand Resort & Spa started as a club in 1989. At that time, there was only Jumeirah Beach and Jebel Ali Hotel.
We were the first company in the Middle East to start a management company. If you see the unique marketing, the unique ideas that we started for the hotels for example, we started show jumping in Dubai. We had the first Middle East show jumping competition and we invited international participants.
Then we started the Motor Show. We have the Met Club with its own bar and conference spaces in Jebel Ali where there are thousands of companies. We were the first to think of catering to that area.
At present six hotels carry the Habtoor brand. Do you plan to increase this number through franchising your brand?
Our chairman, Khalaf Ahmed Al Habtoor, is very involved in Habtoor Hotels. The hotel division is very close to his heart and he provides us with guidance and vision. Our chairman's message is clear, 'Let's manage our own properties.'
We're not against franchising. But it's a clear strategy, a clear vision that we will manage our own hotels. However, investment is not an easy decision to make. There are many factors to be considered. Investment in hotels is a multi-million dollar investment. It is so different from a real estate investment where it only involves buying buildings. The business of hotels is ongoing. It's a business dealing with people. It's a 24-hour business with a lot of transactions.
Of course, if you ask me as the one who looks after the hotel division, my wish is to have Habtoor Hotels in every major city in the Middle East, and in the world.
How large is your workforce? How and from where do you source them?
We have a multi-national work force. All together we have over 2,500 employees, between here and Beirut. We have more than 30 nationalities in the hotels.
How do you retain your people?
We ensure that we provide a work environment to support each employee. We look after them. We treat them equally. For some of them, the motive is money. But people need to be recognised; not treated as numbers. We recognize our staff and are aware of their capabilities. We have development tools to enhance those capabilities.
A good percentage of our staff has been with us for a long time. We have many examples of people we've promoted from within and I'm one of the best examples. I started in 1982 as a sales executive and was promoted from the ranks. People grow within our company. All the GMs in all the properties none of them were recruited as a GM. They all grew in the company.
The Al Habtoor Group has schools. Do you have plans of putting up your own hospitality school?
That's part of the vision of our chairman. In 1991, we wanted to start a proper school for hospitality. We made our first attempt in the early 90s when we had two trainers from one of the good hotel schools in Asia. At that time, the laws were not as flexible as they are now, when you can get recognition from higher education authorities. It didn't work out. Later on, we found that it's better to out-source. Recently we took on a director of training for the entire Habtoor Group, not only for hospitality.
How would you differentiate Habtoor Hotels from so many other brands? What is your USP?
What I can tell you is what our chairman tells me and which I convey to our GMs: Each guest, not just those who are staying in the hotel but anyone who enters the lobby, hotel staff should have eye contact with them. The guest should feel welcome. Our business is a business of people and we carry this message throughout.
What is your marketing strategy for Habtoor Hotels? Do you have any taglines?
For us, it's 'Middle East first.' We are 'Middle East first' in so many things, as I have cited to you the many 'firsts' that we introduced. There are so many other areas where we have implemented ideas and others have built on them. The show jumping we introduced for the first time in the Middle East for example. The idea was not to do something for ourselves. Of course, eventually, they proved advantageous for us, but during that time, Dubai was different. We wanted to help.
'Middle East First' is the tagline for the entire hotel division. But we have different taglines for each hotel. For example Habtoor Grand Resort & Spa has 'A Touch of Arabia'; the Metropolitan Palace has 'An Oasis of Opulence'; and the Metropolitan Hotel has 'Smile of Arabia.'
As a company owning and managing hotels, for us, marketing and sales go hand in hand. We have offices in GCC countries. We have three in Qatar, Kuwait and Saudi Arabia. Nationality-wise, if you talk about the nationality mix, the GCC is not the highest, but it is an important market. Sometimes, statistics could be misleading. The cost of delivering such business is also not that high because it's nearby. Marketing strategies do not cost us a lot of money.
We participate in trade shows to promote and market our hotels. In a couple of months, we will launch a marketing tool, which no other hotel in Dubai has. When it's done, we'll tell you.
As a company that manages its own hotels the relationship between finance and operations, and sales and marketing we play as a team.
Can you tell us more about your expansion plans?
The project that we can announce now is the one on The Palm. I am not in a position to announce the other projects as yet. But our chairman is always active in expanding, in starting hotels here or acquiring hotels worldwide. But as I have said, this is not an easy process.
Would your expansion plans mainly for the UAE or for the region? You have that hotel in the UK, any more hotels outside the UAE?
The hotel in the UK really very nice and exclusive, but it's not really what Habtoor Hotels is all about. Our chairman saw it and he loved the place. We're proud of it. It's a good investment. But from an operational marketing point of view, it doesn't fit. Yet it's our first outside the Middle East; surely, it won't be the last. You ask, how long it will take to have another one, it's a long process, especially since we manage and own our properties. The deal has to be very clear to all no partnership. So it's not easy.
Our focus is very clear manage Habtoor Hotels. The ultimate goal is to spread the name.
All we have done has the support of the owners. The goal is to have Habtoor hotels located in all major cities but we shall strive to stick to the basics, keeping in mind that it is a business of people. No matter what you do, the customer is number one. Of course you have to invest in technology and so on, but top priority is the people, whether they are your guests or your staff.
If you look it from the owner's point of view he owns Habtoor hotels, but they still have management contracts with Habtoor Group. As owner, I'm sure, he is much better off giving his hotels for management contracts to Habtoor Hotels, even if they are separate because we have built a culture of being straight to the point. We do what's needed to be done.
Some companies like Jumeirah are expanding very rapidly in other parts of the world, to the Western parts of the world you wouldn't want to do that?
Our chairman has the vision to expand worldwide, in all investments, including hotels. Nobody in the company disagrees with the importance of expansion. Who decides how, when and where - it's not just from the hotel division. We are very eager to go out.
As a member of Preferred Hotel, Utell and World Hotels does that help you in acquiring either reservations or recognition?
Being a member has given us the international scope that we needed. It gives us a lot of five-star deluxe branding internationally.
There are many developments in the region. Do you think it is developing too fast? Is it good for Dubai?
I've been in Dubai for 29 years. I've been in the hotel business in this group for 25 years.
Between 1995 and 2007, see the growth in the number of hotels. Compared to the number of hotels now and the growth they are announcing in the future - it will balance. Whatever the Dubai government promises, they deliver, and more. When you travel and participate in exhibitions or marketing or sales trips, people know Dubai. DTCM is doing a good job. Our problem is not how to market Dubai. Our problem is to find rooms. Just see the number of aircraft Emirates is buying, the routes they are announcing...
Do you think the industry and DTCM is moving on the right track?
Yes they are. But there are some challenges for the industry. Because of the rapid growth, finding the right people is a major challenge.
Do you think with the huge amount or number of rooms coming up in the next few years, the bubble might burst? Or will it carry on?
It will carry on. There were six million visitors last year. They want to make that 20 million by 2012. So you will enjoy the same occupancy keeping in mind that Dubai Government delivers on their promises. Even if you want to be a little bit pessimistic, that's fine. There will be 20 million visitors, but you know if it becomes too expensive, the length of stay will be reduced. That could be a challenge with more airlines, with cheaper airlines maybe there will be more choices, more destinations the length of stay could be reduced.
© Hospitality 2007
