22 29 cover story

COVER STORY

22 � HOSPITALITY BUSINESS MIDDLE EAST JANUARY 2013 cpidubai.com

COVER STORY

INTOTHE
UKO N
NN W For global giant Carlson Rezidor, 2012 marked the start of a new era. From the departure of Rezidor’s
long standing and much admired CEO to the group’s first steps into Qatar, Hospitality Business Middle
East catches up with AVP Mark Willis, Qatar GM Gordon MacKenzie and the outgoing boss himself,
Kurt Ritter, to ask what will be next for the group that aspires to be nothing less than number one

A
s the parent company of global a new market and a new president and The Doha property will be the first
brands Radisson, Radisson Blu, CEO, and things become a little trickier. new Regent hotel under the Carlson
Park Plaza, Park Inn, Country 2012 was a year of milestones Rezidor leadership and is currently
Inns and Suites and Hotel for Carlson Rezidor. In July it was under construction adjacent to the
Missoni, Carlson Rezidor is one of the announced Doha’s Ramada Plaza had Radisson Blu. It will boast water theme
largest hotel operator and developer been snapped up by the group and unique to the local market at this
groups in the world. would, within months, be transformed time and will be followed by further
The result of exponential and into a 5-star Radisson Blu, thanks to openings in Russia, CIS countries, the
relentless growth under the leadership the ongoing $24m refurbishment of its Baltics, Middle East and Africa.
of award winning CEO and president, West Wing. but most significantly, 2012 will
Kurt Ritter, today the group has The property officially re-launched be remembered as the year that the
1319 hotels in operation and with a lavish party attended by man behind this phenomenal growth
under development. To cement the Carlson Rezidor’s senior management stepped down from Rezidor.
philosophy that drove such growth last month. The news was officially announced
over previous decades, the group is The acquisition took Radisson into in September and quickly followed
now working towards Route 2015; the its 12th Middle East country and was with the naming of Ritter’s successor,
formalisation of its ambition to be the quickly followed by announcements Wolfgang M Neumann, who began his
world’s number one hotel group to of the development of two more new position at the start of this month.
work for and invest with, underpinned properties in the city: One under With a conscientious eye on
by a 50% growth target to 2015. Italian lifestyle brand Hotel Missoni opportunity, Ritter’s attitude towards
Given the track record of a group and another under Regent Hotels and growth is not dissimilar to that of the
that makes even the most demanding Resorts; for which Carlson Rezidor average monopoly player. Referring
business decisions look effortless, it now holds the rights to operate and to the intelligence behind Qatar’s
should be (another) walk in the park. develop the chain’s properties across positioning as a brand and the
But add to the equation a new brand, Europe, the Middle East and Africa. ongoing development of its sporting,

cpidubai.com JANUARY 2013 HOSPITALITY BUSINESS MIDDLE EAST � 23

COVER STORY

1319
HOTELS IN
OPERATION AND
educational and cultural prowess,
Ritter says the country has become
“too important on the world stage” for
Carlson Rezidor not to have presence.
places, just to sleep, and this has not
been so well done in the Middle East,”
he observes. Even when the mid-
market has been attempted it hasn’t
in 12 Middle East countries and we
are at a size that we cannot say we’re
not in Doha. It was a little nostalgic
to come back but I said if that hotel is
UNDER Newly appointed area vice president been pulled off with under-served, available it should be us operating it,”
DEVELOPMENT Mark Willis echoes: “We see the future not to mention under-cleaned, he recalls.
GLOBALLY
here as very bright and it’s definitely properties giving the market a bad For Rezidor, Radisson Blu is
something that we want to be part of, name, he adds. the ideal brand for the growing
but we don’t want to come here with “I’m not trying to be the Wiseman, Doha market at this time; offering
the wrong product or property. This is but this is where the growth is. something that nods at luxury but
a special hotel with a lot of history and “In the beginning it was more on a large enough scale to serve the
foundation and as soon as we had the prestigious for a high worth transient – and lucrative – business
opportunity to jump into this market, individual to say they wanted to build market. Run under the leadership of
it was taken.” a luxurious 5-star hotel. We would GM Gordon MacKenzie for the last
suggest a 3-star and they would say 33 years, the property is currently
Which brand? no. Then I would ask: do you want to undergoing massive renovations at
A founding principle of Ritter’s make money or do you just want to an ever increasing cost of $24m.
expansions has been to know the build a palace for yourself?” “Radisson Blu in the Middle East
brands and, more specifically, which “We don’t have many, but we have is 5-star but we don’t want to be in
markets they are best suited to. a few Park Inns and they do very very the same market as the Shangri-Las
For example, while Saudi Arabia well. So we want more of those.” and Ritz Carltons of this world; we
will benefit from four new mid- At the opposite end of the spectrum can’t do that with 583 rooms. Within
market signings, underpinned it was recently suggested a new Doha we were known with Ramada
by demand driven by the tier, ‘deluxe’, would be introduced, as a 3-star name, 4-star property and
millions of religious tourists yet confirmation and details on 5-star service. With Radisson we have
who descend on the kingdom this are still not forthcoming and a 5-star name with a 4-star property
annually, other markets Willis comments: “There are always and a 5-star service,” MacKenzie
require something more. discussions of whether we look to shares, adding: “I’m not after star
“I definitely see a big demand grow in one segment or another. ratings, I’m after heads in beds. With
and not enough supply in the We have a strategic alliance with the 583 rooms that’s what you need.”
mid-market sector in Saudi Regent product for Qatar and Abu In the refurbishment, bathroom
Arabia. If you look at the events Dhabi, but let’s see where that takes us sizes will increase, a wet room will
in research and sport, in the future.” be added, bedrooms updated and
these do not a state of the art shower (described
demand Project Qatar by MacKenzie as “a selling point in
5-star As with all the group’s major decisions, itself ”) will be installed in every room
properties. the move into Doha was steered in the hotel’s West Wing.
People by Ritter. Admitting it took “some The eighth re-opening of his career,
need time” to finalise the Ramada Doha it’s a process MacKenzie appears to
good, acquisition, he pursued the deal due have taken in his stride and when
clean, to the sentimental value he personally asked to name the challenges of the
two or placed on the property, having first process he breezily responds: “It is
3-star visited in 1981 during a themed very simple.”
‘Scandinavian Week’. The design and project appointment
“Why Doha? Because it has become process took on a pick and mix
a must on the list. We are now active approach, with MacKenzie describing

Gordon MacKenzie
Starting his career with the UK’s British Transport Hotels, Scottish born Gordon MacKenzie arrived in the Middle
East in 1976. “I began working in hotels because when you have a house on the monopoly board you get a little
rent, when you have a hotel room you get a huge rent and I thought that was a good idea. I was either going to be a
Veterinary surgeon, or a lawyer or a hotel manager and it just so happened that hotel management won over. I came
to the Middle East in 1976 and really haven’t looked back.”


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his roll as hands-on throughout. have seen a fine dining vegetarian The focus now is clearly fixed on
Firstly, four contractors and designers restaurant replaced with tapas bar 2022, but that hasn’t made McKenzie
were appointed to mock up show Picasso’s, and the introduction of complacent in his role leading to that
One thing we rooms. Paid $50,000 each for
their trouble the best elements, as
French, Chinese and Japanese outlets;
many of which have won awards.
point; there’s a strategy for everything.
In terms of dealing with the inevitable
don’t do is decided by Radisson and Rezidor There are also tentative plans to periods of low occupancy between
cut our rates. management, were then taken from open more outlets beyond the hotel now and then, he asserts: “One thing
each mock and amalgamated to create from April 2013. we don’t do is cut our rates. We will
We will never the finalised design. Heading up all the hotel’s F&B, never reduce our rates even in the
reduce our The renovation will be integral to executive chef Jurgen Lepping reveals height of summer. The market does
retaining the hotel’s position in the the USP is rooted in choice. not dictate that you are going to get
rates even in local market, but Qatar is currently the “People always want something another 100 people or 1000 people
the height of only hotel market in the GCC where new – if a new restaurant opens they coming just because you have swiped
F&B revenues are higher than room go there. But for those who live here 50 riyals off your offered rate. It just
summer. This revenues, meaning the challenge is far it’s about variety, so we always have doesn’t happen.
is not Dubai from over. something going on “This is not Dubai where you
where you “We recognised years ago that if you
don’t innovate you die. So we decided
For example, people know that
every Wednesday we fly fresh fish in
include all the extras and throw in
a hire car. That works there, but this
include all the to innovate and saw the growth factor from Holland and they can go to Pier is Qatar and it’s an entirely different
extras and certainly was in F&B. From then we
began adding new venues and ended
12 for a fresh fish dinner – lobster,
langoustine, etc,” Lepping shares. He
market,” he adds.
If his predictions are to be believed,
throw in a hire up with the 22 we have today.” will also be responsible for helping to from 2014 such periods will no
car. That works It’s an area of operation that has launch the outlets at the new Regent longer occur, as the long awaited
buoyed the hotel during occupancy Hotel, including the first authentic boom finally hits.
there, but this fluctuations, as the new properties Thai restaurant in Doha.
is Qatar and take their “fair share” of the market. MacKenzie adds: “We are Route 2015
That’s not the say there won’t be established within the community, Group-wide, the broader focus is on
it’s an en- further developments. The constant we serve the community and the the plan Route 2015. Launched in
tirely different evolution of the hotel’s F&B offerings community supports us.” December 2011 it benchmarks target
margin increases for every element
market of the business at 6 – 8%. Willis says
A foot in the door year one was “positively on track”,
and that 2013 looks even stronger, but
innovation, as always, will drive the
plan’s success.
“I think Rezidor has always been
a company that has tried to reinvent
itself within its markets and the
Middle East is a very dynamic market.
We have brought new products such
as Missoni and Park Inn and have
achieved active growth in such a
variety of areas. We haven’t focussed
on demand as many others have, but
we have looked at different locations,
such as Tripoli, Jeddah, the growth in
religious tourism,” Willis explains.
“We have taken opportunity when
it has come to us very quickly. We
are quite visionary in looking at
“To get this asset into the portfolio is just won- stability and growth in the hotel sector, all locations and we have such a great
derful. For us it’s important for us to be in Qatar, the big brands are here and it’s positive for infrastructure of owners throughout
we have a Missoni hotel here by 2015 and Doha Rezidor to come into this location,” the region,” he adds.
is one of those locations that has always had Mark Willis, area vice president. The driving force behind the
quick negotiations and rapid rise to


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6-8%
INCREASE IN
international dominance has no doubt
come from Ritter. A hands-on leader,
he recalls how owners have been
(positively) shocked by his willingness
“But a waiter breaks a glass, a
cashier sometimes won’t balance their
till, accidents happen. As long as they
are not too fatal; you know you cannot
have no bed.”
As Carlson Rezidor continues on
its growth trajectory to 2015, and
no doubt beyond, and Ritter moves
MARGINS ANNUALLY
UNDER ROUTE 2015 to be available to their needs and make them every day,” he adds. into his new role as advisor to the
reveals that this accesibility has been a CEO of Carlson, he will have many a
key element of his ability to negotiate Looking back successor. His legacy to them?
“very quick decisions” and, hence, Communication has not only been a “I think 22 years as CEO is enough.
snap up properties at the rate Carlson cornerstone of Ritter’s success in his I have put my stamp everywhere and
Rezidor has. role, but a vital highlight of his whole it is definitely time that somebody
“My strength was to talk to people. career. new comes in and sees it with different
From starting with 16 hotels and Starting out at the Ritter family eyes.
growing to 450, I still was a very hotel in Interlaken, Switzerland, he “I think I was a grower. A little bit
personable CEO and every hotel stepped into a hands-on management of a dare devil. You have to have the
owner has my mobile number.” role as a teenager, following the death guts to take on properties at speed
“When others say they have to of his father. Recalling the hotel had while other companies are engaging
go back to a board, by the time they only one phone – itself requiring only their analytical departments to analyse
have stumbled ten times over their a two digit number and connected via from here to the moon. By the time
boards we have signed the deal. And a central operator – he says the most they have made the decision, we have
it was so nice of our board to give us surprising trend to emerge over his signed the deal. That is why we have
that freedom, but we had to earn it. career has been the development of become the fastest growing company.
Once they saw how well we did and communication. It’s not that we haven’t made a mistake
how little the quota of failure was... of “If you look at the days of a single – we do look back and wonder if it was
course nobody likes to make mistakes, phone in the hotel then to having fax a good or necessary idea to take that
but sometimes they do,” he muses. and internet, it has been a fantastic and sometimes you have to say no.
While he admits there have development. Again in that, I am very But if you weight that with the speed
been leased properties, happy that we were the first company, I think that we didn’t break too many
predominantly in Europe at least in Europe, to start giving free eggs along the way.”
and the UK, that wifi in-room. Now everybody is doing
haven’t performed it.”
as projected, Ritter Describing the backlash he received
recalls the words of a from making such a move, he
former mentor from compares the concept of pay-per-hour
Scandinavian Airways, internet as ludicrous as charging for
who told his employees bathroom facilities.
that he wanted each of “At first the media said it was
them to make two bad destroying the industry because wifi
decisions a day... and 98 was a lucrative add on, but that little
good ones. hotel in Switzerland also only had two
bathrooms so guests would have to
pay to use the bath. If you go to a hotel
today and are charged €15 for taking a
bath, you would argue the bath is part
of the room. Well, today internet is
part of the room. You cannot imagine
it not being there, it would be easier to

Kurt Ritter
During his time at the top, Ritter has signed a number of brands into the group portfolio, including:
Radisson Hotels Worldwide in 1994, Carlson Hotels Worldwide in 2002, Missoni in 2005 and most
recently, in 2012, Regent. The first Regent in Doha is currently under construction, when completed
it will mark a hattrick of properties for the Carlson Rezidor Group in the, still contained, market of the
Qatari capital.


COVER STORY

THENEARFUTUREINTHEMIDDLEEAST
Under the leadership of area vice president Mark Willis, six signings were made in 2012 for new properties across the region. Saudi
Arabia has been placed firmly on the radar, with four of the new signings made for mid-market properties geared towards to the
millions of religious tourists that descend on the Kingdom annually

5

6 8
9
7 11
10

3
2
1
12
4

KSA PIPELINE, SIGNED 2012
1
Park Inn Hotel & Residence Jeddah* 4-star 350 rooms Q1 2015
2
Radisson Blu Riyadh Ring Road* 5-star 252 rooms Q1 2016
3
Park Inn Residence Riyadh Al Sahafa* 4-star 17 rooms Q1 2016
4
Radisson Blu Residence Riyadh’s Diplomatic Quarter* 5-star 110 rooms Q1 2016

EGYPT PIPELINE
5
Sharm el Sheikh Lagoon 5-star 913 rooms Q4 2013

QATAR PIPELINE
6
Hotel Missoni Doha* 5-star 300 rooms Q1 2015
7
Regent 5-star 365 rooms Q4 2013

UAE PIPELINE
8
Radisson Blu Al Qurm Ras Al Khaimah 5-star 250 rooms Q2 2014
9
Park Inn Dubai Airport Free Zone 4-star 310 rooms Q2 2014
10
Park Inn Dubai Al Jadaf* 4-star 300 rooms Q1 2016

OMAN PIPELINE
11
Radisson Blu Hotel & Resort Sohar 5-star 162 rooms Q4 2013
12
Missoni Sifah 5-star 250 rooms Q2 2014

*2012 signings

Mark Willis
“Saudi Arabia is a growth location for us. It has had another positive year in 2012 and that will continue
in 2013. Religious tourism continues to grow and the Radisson Blu brand is very well recognised, so it is
definitely a focus area for us,” says Willis. “What the future brings you never know and the region is one of
opportunity. Out of the very difficult 24 months that Egypt has seen, as we go into 2013 we will see where
that will take us. We would hope that the stability will promote some new growth and new infrastructure,”
he adds.


22 29 cover story

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