THE PIPELINE : ROTANA
Aloft , Dream and fashion-designer flags to battle it out for the lifestyle traveler and getting a jump on serving the underserved but expanding middle market that has no brand loyalty yet . “ There is a real demand in the region for a midscale hotel brand that caters specifically to families and older travelers ,” Mekouar says .
El Zyr doesn ’ t buy that argument . He argues that , like elsewhere in the world , the Middle East has a broadening pool of travelers looking for a stay that combines high style , an edgy , younger aesthetic and high technology with an attractive price point . “ We crafted Centro into a carefully specified flag tailored to large corporate entities , small and medium business owners , and individual budget-conscious travelers ,” El Zyr says . “ There ’ s a highly diverse market for lifestyle products . Our guests are just as likely to be in their 40s or older as in their 20s or 30s .” Owners apparently agree . By 2014 , the company expects to have 25 Centro properties across the region .
Rotana ’ s backbone Despite demand for lifestyle hotels , the company isn ’ t shifting its focus away from the luxury sector that has been its corporate backbone . Development will continue to be driven mainly by its 4- and 5-star core brand , Rotana Hotels & Resorts . “ It ’ s still about half the pipeline ,” Mekouar says .
As with Centro , Rotana is structuring both its design and standards to be competitive with international offerings . But it hasn ’ t lost sight of the importance of retaining aspects of Arab lifestyle and culture that make regional guests feel truly at home . That identity may have some rippling benefits , especially for owners and developers inside and outside the MENA region who are looking for something fresh on the menu . “ I would think that they are trying to create a product with a recognizable Middle Eastern flavor that still has broader appeal ,” Mekouar adds .
El Zyr will need a steady hand in directing this fast-track pace for the Rotana brand . Like any flag that grows quickly , there are always concerns about dilution and consistency . El Zyr contends that Rotana Hotels & Resorts “ has published standards ” and has a clear , consistent identity that ’ s about high-end hotels with a cosmopolitan feel and award-winning dining . To make sure that is equally clear to investors and guests , Rotana hired GSCS , now owned by Fitch , to design and develop “ a brand identity , visual language and brand communications .”
Filling out the stable Brand clarity is going to become more important as Rotana ’ s family of flags grows to serve a fragmented market . Even with both 5-star and midscale brands operating , El Zyr and his team still saw that Rotana needed a presence in the extended-stay market . Launched in 2008 , Arjaan Hotel Apartments by Rotana is a serviced apartment concept
A Centro suite that offers the luxuries of a hotel with a home-away-from-home feel . Like Centro , it is designed for the business traveler , albeit one with a larger budget . Also , like Centro , Arjaan can help its parent company stop any leakage to the international brands that provide services for or actual flagged options in the serviced-apartment / long-stay sector .
“ Our main markets for Arjaan are primarily business and corporate , although it also caters to leisure travel , especially from the GCC ,” El Zyr says . With high-powered corporate individuals frequently being moved , the concept has found traction . According to Mekouar , Arjaan will grow from 14 % of the current portfolio to 30 % of the pipeline .
El Zyr saw a gap some of his competitors might miss or ignore : a concept that combined a luxe standard with a culturally sensitive model that would cater to the region ’ s more conservative
www . hotelsmag . com January / February 2012 HOTELS 37