May 2010
Shari'ah-compliant hotels are not new but many operators are increasingly looking at Halal values as a USP to attract Muslim guests.

Without enforceable regulations or ratings, there is still debate about what constitutes a truly Shari'ah compliant hotel ... alcohol is out, Halal food is in, but beyond that it's largely open to interpretation.

According to hotel consultants HVS however, essentials also include dedicated female and family floors served by female staff, with male floors attended solely by male staff; conservative satellite TV channels; Quran and prayer mats in every room; separate wellness facilities; large function rooms to cater to separate male and female events, beds and toilets positioned away from Mecca, and Islamic art (no human forms) - while financially, a property should be funded through Islamic channels and pay regular zakat.

While there are several groups both operating and developing hotels that fully conform with these principles, other developers have pulled back from full compliance to evolve a type of "Shari'ah-lite" hospitality - one that would perhaps appeal across all markets and where Arabic hospitality and healthy living are emphasised to compensate for the no alcohol.

Until a few years' ago, there was no branded hotel chain that catered specifically to local sensibilities - the Gulf hospitality world was divided in to western-style luxury hotels and 'dry' two, and three-star properties, a limitation that potentially drove the demand for apartment living as the accommodation -of-choice for regional visitors.

However, with the numbers of Muslim travellers on the rise, and the availability of Islamic finance looking for significant investments, the touch-paper was lit for the rise of the Islamic-themed hotel - rooted not just in the minutiae of food and drink, but invested with a spirit of Arabic hospitality which could appeal across the culture divide.

Figures abound to support the growth of the sector - Gulf travellers spent more than $12bn annually on leisure travel according to figures from the World Tourism Organisation, while Muslim travellers make up at least 10 per cent of the world tourism market - but canny operators are set to target not only a Muslim audience but also those seeking an 'authentic' Arabic experience as well as a 'healthy lifestyle' in their accommodation option.

Safety is another element cited by Hospitality Management Holdings, operator of Coral, ECOS, Corp Executive and EWA Hotel Apartments, according to ceo Michel Noblet: "We were the first hotel management company in the Middle East to have offered an alcohol-free environment in all our hotels, ensuring guests safe and healthy surroundings," he said.

"As we continue to break new ground, we stay committed to our core values of respect for local culture and people, ensuring the highest standards of Arabic hospitality and services - this makes our brand the first choice for families too."

With plans for 100 hotels by 2012, HMH is a leader in the no-alcohol segment, but offering up a holistic approach to Islamic hospitality fundamentals, it was Shaza Hotels that broke new ground with its launch in 2006 as a five-star joint venture between Guidance Financial Group and Kempinski Hotels.

The aim was the produce 'a world-class hotel brand that expressed the riches of Arabic heritage in a contemporary setting' according to executive chairman Mohammed Hammour, and 20 hotels were planned throughout the Middle East from Dubai to Marrakech, as well as popular destinations such as London, Switzerland and Malaysia.

Design was cited as key, enabling the group to target overseas travellers seeking a different experience, with hammam spas, screens, divans and hamman-influenced bathrooms, fountain lounges, Oriental architecture and art, and local cuisine.

The first result will be unveiled later this year in Madinah, said CEO Michel Novatin, but in the interim, several other local developers have jumped on the bandwagon, offering up a portfolio of brands to accommodate demand for both standard and premium hotels.

Almulla Hospitality revealed plans in 2008 for up to 90 hotels in the region, Europe and SE Asia under the brand Cliftonwood, Adham and Wings, with the first - an 875-room Adham - opening in Makkah in 2012.

Abdullah Mohammed Almulla, chairman said the group would conform to Shari'ah law with a concept of 'conscious living' appealing to family groups and those seeking 'healthy lifestyles and values' too: "The Islamic hotel chain is the new wave coming through," he added.

"The market for Islamic hotels is currently fragmented ... and we recognise the growing need for a professionally-operated international hotel chain which operates on Islamic principles."

Abraaj Capital (investors in Mediaquest, publishers of GMR) and Ithmaar Bank funded Seraii Hospitality are following a similar course, with three-star Caravan Seraii, five-star Grand Seraii and deluxe Royal Seraii and boutique Tijan by Royal Seraii hotels under development through the GCC, Pakistan, Lebanon, Libya and Egypt.

While claiming Shari'ah compliance, the group promises a blend of Arabic tradition with contemporary style, incorporating features such as majlis, hammam, dedicated prayer rooms and Middle East cafe culture in to all properties.

CEO Sami Zoghbi said the hotels would provide a genuine sense of Middle Eastern and Islamic style living in tandem with the full amenities expected from a world-class hotel operator.

Meanwhile, Landmark has announced it will launch 10 Shariah-compliant hotels in the UAE and Saudi Arabia by the end of this year; S S Lootah is to expand its Islamic Jawahara brand, and Rotana will debut its alcohol-free Rayhaan Hotels & Resorts brand this year in Makkah and Abu Dhabi - the latter a 443-room and serviced apartments city resort.

According to executive VP and COO Imad Elias, the marque is set for 'incredible growth', with a master agreement signed with SHUAA Capital Saudi Arabia setting the scene for 17 four-and five-star properties across the Kingdom.

"Our new product respects the beliefs and culture of our guests while fostering the image of a new Arabia in today's world," he said. 

"We must clarify we are not just targeting Muslim travellers - alcohol is not served but we provide an environment and service where anyone will feel at ease - not just Arabs or Muslims."

This reality, that in many destinations, the clientele of any alcohol-free or Shari'ah compliant hotel will cross all sectors, is one to which Tamani Hotels & Resorts can testify, with its initial Dubai Marina property recording a healthy geographical mix of guests, outside of regional holiday periods.

"Our strength is within the GCC, but we are becoming stronger in global markets thanks to the partnerships we have in travel distribution and evolving technology  - with 26 countries having generated in excess of 200 room nights annually," said VP sales & marketing, Roddy Gordon.

"GCC families are comfortable with our brand and what we offer, particularly the privacy of the ladies' floors, but demand levels (regionally) are not stable and tend to be highly seasonal - investors have tended to look at Tamani as a niche operator but our customers overall are more interested in Arabic hospitality than compliance issues."

Gordon admits too that the business model is impacted by the lack of alcohol, fuelling cross-selling to make up revenues: "The implications of our (alcohol-free) operations are openly discussed with the owners, and it does tend to make us hungry to drive revenue in other ways."

And, while Islamic lifestyle hotels seem to be here to stay, Gordon is confident that the marketing message is one of Arabic hospitality rather than Shari'ah compliance: "This was a concept that evolved in the media as a popular new niche," he concluded.

© Gulf Marketing Review 2010