Karim Nahas
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Could you give us an overview of the business generated for the hotel?
The Rose Rayhaan is very well located near the financial area of Dubai. This has resulted in our business garnering nearly 60% of corporates. We also have a substantial amount of leisure business. This is normally from around the GCC countries. With strong traditional markets in place, we are now targeting more European, Russian and East European countries. Another key aspect is that a big chunk of our business comes from online travel agents like the Bookings.com and Expedia among others.
How was the last year in terms of performance and are you looking at tapping into new markets?
The last year closed on a positive note, our expectation was to touch 88% occupancy. This would result in a seven to eight percent increase over 2012. Statistics reviewed also showed that year to date revenue has shown a growth of 20% for 2013 over 2012. This is a good indication. We are still working with our traditional markets such as Saudi Arabia, USA, UK, India and Iran including the UAE. However, we are constantly looking at new markets. Indian is big market for us and we would like to have a bigger share from that market. We have a lot of Indian guests coming through corporate companies.
Do you think being a non-alcoholic property is a challenge?
The impact of the property being non-alcoholic is very minimal. However, it is not a negative point and on calculation, should be around one percent. Guests really spend a lot of time outside the hotel so it doesn’t make much sense. To add to this, we also have a lot of GCC families that stay with us. This aspect is more of an assurance to them.
Which new markets would be on the radar?
We are looking aggressively at India, Australia and Latin America. We did a road show in India late last year to better understand market needs. This was very fruitful and discussions are now on to have similar road show in Australia and Latin America. We are also doing well with the South African market which definitely has potential to grow further.
Do we see any refurbishment happening at the property?
The current fourth floor which is a recreation area did see some change. The floor of the pool underwent a change. However, the big project we are working on right now is the executive lounge on the 6th floor of the hotel. Initially, this used to be an office floor which was used by our owners. It is now being converted with a dining area, TV and library room. There would also be separate check-in and check-out facilities and would mainly focus on corporate customers and MICE guests. This should be ready by end of March 2014. We have taken on a Turkish company for the design. Further, my dream is to have a restaurant on the 68th floor of the hotel. This is still being discussed with the owners.
What are the benefits you see from direct online bookings?
Our direct bookings with online travel agents are around 19% and this also includes our website. Of course, it is more beneficial to increase this numbers. Of the total 19%, Booking.com comprises 15% while the rest is Expedia, Agoda, lastminute.com and Rotana.com. The business from travel agents is around 35-40% mainly from the local DMCs based in Dubai. With around half of the business coming from TAs and online agents, the rest is divided between corporate, MICE and long-term guests. We have one and two bedroom suites including normal hotel rooms. This is sold to long-terms guests as suites with facilities of the hotel.
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