destination reports: abu dhabi: The new space race
The new space race
With more than 65 hotel projects underway, and some 3,000 luxury rooms alone set to open within three months, Abu Dhabi is becoming a buyer’s market – not only for accommodation but also for event and meeting space. Kathi Everden reports
It’s been a tough social season in the UAE capital with relentless cocktails and canapйs as a roster of luxury hotels opened their doors for business in the fourth quarter of 2011, with more set to join the party in 2012.
The names are a roll-call of the good and the great in the hospitality sector, from The Ritz-Carlton to Rocco Forte and St Regis, with Hyatt, Sofitel, Jumeirah, Westin, Anantara all in the mix. Rosewood, Le Bristol, Fairmont, W, Mandarin Oriental, Marriott, Rotana, Staybridge, Shangri- La, Yotel, Adagio and Novotel are also adding further nameplates in the Abu Dhabi accommodation inventory.
The wholesale development is all part of the emirate’s strategic 2030 vision, which projects up to 80,000 hotel rooms in Abu Dhabi by that year, a quadrupling of the current total, with around 15,000 of those opening in the next three years.
All of which should be good news for event planners, who can expect state-of-the art meeting facilities, dream locations, competitive packaging and attentive sales and operations staff just waiting in the wings.
But, given top-of-the-range marques with a reputation to preserve, one thing that won’t be on offer is rock bottom rates, according to those concerned.
“Clients are demanding competitive rates and added extras, but there is also a market share that is willing to pay as they appreciate the difference – we are not entering into a price war,” stressed Klaus Niefer, general manager of the new Westin Abu Dhabi Golf Resort & Spa.
His view was echoed by Oliver Key, general manager of the St. Regis Abu Dhabi, scheduled for launch in the first quarter of this year: “All of us newcomers to Abu Dhabi should first of all find our positioning in the market and only then determine the rates,” he said. “We need to be strategic and look at where to be in the long term.”
What might be the key to success in the short term is a gift-wrapped package that offers more than just bed and boardroom, according to Stuart Deeson, general manager of the Park Hyatt Abu Dhabi: “As well as innovative meeting spaces at the hotel, what has been well received (among potential clients) is value-added offerings,” he said.
A similar strategy is in place at the Rocco Forte, where a TEN 4 TEN offer valid until March is offering planners a 10 percent reduction for groups of 10 delegates or more, as well as the choice of three additional perks, ranging from free welcome reception and in-room gift for all delegates through to complimentary accommodation or office for the meeting organiser, according to general manager, Hagop Doghramadjian.
For the new Jumeirah at Etihad Towers, bespoke meeting services will be the hallmark helping the hotel stand out from the crowd, according to general manager, Doris Greif: “As well as one of the largest conference centres in the capital, with ballroom, meeting rooms, pre-function, VIP suites, bridal suite and business centre all located on the same floor, we offer use of a Planners’ Office and dedicated event planner.”
She also cited the hotel’s Events Showroom of dining ware, linens, etc, to enable clients to personalise colour schemes and themes; its bespoke banqueting with the menu of food and beverage choices available on iPad; seven production kitchens; use of technology to create visual mockups of event space, and professional technical support with US-based experts, SWANK, which have a permanent presence at the property.
And despite the will to set a benchmark that denotes the quality available, what is evident is that average room rates are on the decline in the UAE capital as room numbers increase – with figures for October showing slippage of 11 percent in average room rate to US$133 – although more optimistically for the new kids in town, guest numbers were up 21 per cent, and the Abu Dhabi Tourism Authority has provisionally claimed that the two million guest target for 2011 had been achieved.
To a degree, this inexorable fall in average rate is a bonus for a city aiming to establish a reputation for business tourism, events and large-scale meetings – where not everyone is willing or able to pay top dollar for the privilege of attendance.
Events of the magnitude of the World Ophthalmology Conference in February 2012 with a projected 12,000 visitor total demands acrossthe- board accommodation to suit all budgets, something not achievable when Abu Dhabi ranked second most expensive city in the world for hotel rooms just two years ago (slipping to 24th place last year).
Location, location, location
The mantra of real estate, in the new world of Abu Dhabi properties, location has taken on a new significance.
Just 10 years ago, nearly every hotel of note was situated on or around the Abu Dhabi Corniche. From the grandfather properties, such as the Hilton and InterContinental along past the Royal Meridien, Sheraton and around to the Beach Rotana and Le Meridien.
But, with the wholesale development of new business districts, leisure destinations, conference venues and residential and office creep, the traditional CBD is just one of the potential venues for events and accommodation.
Adding in a new element of coastal leisure, the Park Hyatt Abu Dhabi and St. Regis Saadiyat Beach Resort boast a 9km beach to the front and a Gary Player-designed golf course to the rear, plus a 10-minute transit time to downtown Abu Dhabi, while the Westin has a more secluded golf course location, and the Anantara at Eastern Mangroves offers a different view of the water, midway between downtown and the airport. Convenient access to Abu Dhabi Exhibition Centre (ADNEC) with its conference and events calendar is the USP of Hyatt Capital Gate, as well as the Rocco Forte, the 414-room Centro and the 300-room Capital Centre Rotana launching mid-2012.
On the Corniche in the traditional commercial centre, it’s more a question of size with towering ambitions exhibited by Jumeirah, Sofitel and the second St. Regis adding 21st century style and sophistication to the downtown inventory, while The Ritz-Carlton is aspiring to create a whole new leisure destination on the Grand Canal.
According to geнeral manager, Pep Lozano, the location of the Fairmont and Shangri-La on the opposite side of the water gives an opportunity to promote a destination cluster, particularly noted for its stunning view of the Sheikh Zayed Grand Mosque.
“We will have a Venetian village with shops and restaurants, beach and gardens, and a quality product,” he said. “The aim is to position Abu Dhabi with a long-term return on investment rather than just immediate gain.”
At the Hyatt Capital Gate, while general manager Ashwini Kumar has the advantage of an iconic building, he emphasised that the spread of new properties is beneficial to all: “This will help to grow and stabilise the market – top-end hotels need to protect their names and reputation and rates will not be cut dramatically just to promote the destination,” he said, although noting that summer will be a challenge.
However, with the Abu Dhabi Tourism Authority firing on all fronts to position the emirate as a new global business venue and playground, estimating another 15 percent growth in visitor figures for 2012, there is general optimism in the air.
According to ADTA international promotions manager, Mubarak Al Nuaimi, Abu Dhabi is acquiring the facilities to cater to big-number events, with expansion by Etihad, at the airport and at ADNEC, as well as in hotel stock.
“We have the advantage of not just being a large city, but also offering desert, ocean, good weather and a cultural destination, as well as benefiting from the calendar of sports and entertainment events,” he said. “It is the nexus between west and east, developed and developing, present and future. All of which makes for great global conferences.”
This optimism is pervading the hotel sector with upbeat messages coming out from the new boys on the block: “As a one-stop leisure and business hub, Abu Dhabi has a distinct local identity with cross-cultural ambiance and offers luxury Arabian and worldclass hospitality,” said Sofitel Abu Dhabi Corniche general manager, Jean-Philippe Bittencourt.
In addition, Abu Dhabi does play the capital card in terms of meetings and events: “A significant market segment is diplomatic missions and government-sponsored events,” added Jumeirah’s Greif.
Underlining the emirate’s wide and growing appeal, Anantara has a triple whammy as the only hotel chain with three properties offering alternative desert, island and city locations, according to regional sales and marketing director, David Garner.
“Urban attractions combined with desert and island experiences will be complemented when we open a 300-pax conference centre on Sir Bani Yas Island this spring, supported by additional leisure components, to make a new meetings and incentive destination in the Abu Dhabi emirate,” he said.
Just one of many, and more to come.
