Speaking to Aleksandra Wood exclusively, CEO, Katara Hospitality, Hamad Abdulla Al-Mulla draws the curtain on the hospitality company’s latest news and projects, travel trends and clever tactics to stay ahead of the game.
TTG: What’s new with Katara Hospitality?
Katara Hospitality achieved an average of 95 per cent occupancy during the summer months and Eid period, and we have also recorded the highest revenues from each of our hotels’ operations in terms of F&B, recreation and spa facilities. This success has contributed to the country’s economy and it also demonstrates the extensive offerings and diverse hospitality landscape available to enjoy in Qatar.
TTG: What are Katara Hospitality’s latest projects?
Currently, Katara Hospitality has nine properties under development which are scheduled to open between 2017 and 2020 in Qatar and abroad. In Qatar, we are focused on the construction of our award-winning Katara Towers development in Lusail Marina District, which is set to be a major attraction for residents and visitors given its architectural significance and unrivalled mix of hotel, residential and leisure facilities.
TTG: What are some of the latest travel trends Qatar’s travel and tourism industry is witnessing? How do you predict the rest of 2017 will pan out for you?
The hospitality sector is one of the most dynamic and competitive industries as new concepts are continuously being developed to meet increasing guest demands. One of the greatest challenges in the industry is to determine how to gain a competitive edge in the market and differentiate from the competition.
We’ve seen growing trends in our customers’ requirements and tastes, particularly in the experiences they are expecting from their hotel and their focus on value for money.
Travellers looking for luxury accommodation are increasingly searching for hospitality experiences that go beyond recognition and personalised services – they are looking for unique moments, or ‘emotional luxury’. We are now witnessing various niche products being offered to guests within the luxury hotels segment that bring in a flavour of the local culture whilst being ultra-luxurious. Operators in the high-end hospitality segment have successfully developed the ability to merge local heritage with services and amenities that create money-can’t-buy experiences, creating lifetime memories for global travellers.
Additionally, the generational shift we are witnessing will have a major impact on the hospitality industry in general. The next decade will see Millennials – also referred to as Generation Y – become major spenders in travel and leisure. Millennials are highly influenced by rapid technological developments and are globally connected, and smart spenders. With a completely new mindset to their predecessors, Millennials’ needs and expectations will need to be addressed by visionary investors and operators.
We believe the future of Qatar’s hospitality industry in 2017 and beyond is full of opportunity. As Qatar’s flagship hospitality organisation, Katara Hospitality has played an integral role in shaping the hospitality landscape, having created a series of firsts in the country such as the first five-star hotel, first leisure resort and first internationally branded hotel. Currently, we are a significant part of the infrastructure that is fundamental to Qatar’s diversification and development. While Katara Hospitality, as well as our industry peers, have been impacted by economic and geopolitical issues in recent years, we believe there is huge potential for experienced hotel owners and operators.
TTG: What measures is Qatar’s tourism industry taking to broaden its horizons?
While there is no doubt that 2016 was a challenging year for hotel developers and operators alike, the region’s hospitality investment industry remains strong, offering exciting opportunities for proven investors. Qatar is a promising investment destination, with the Qatar Ministry of Economy and Commerce reporting income from tourists amounted to $4.96 billion in 2015, nine-times the $569.36 million recorded in 2010. In addition, the Qatar Tourism Authority projects the sector’s contribution to the country’s economy will reach 5.2 per cent by 2030, and make up almost 10 per cent of Qatar’s non-hydrocarbon economy. The Gulf region characterised by high rates of population growth, which, combined with its increasing popularity as a tourist destination and global transport hub, presents an attractive investment proposition. Katara Hospitality continues to see strong demand for its properties in Qatar and abroad and believes travellers will continue to look for quality, value and unsurpassed experiences, all of which it strives to achieve with the portfolio of hotels, ensuring generations of the future can enjoy them for decades to come.
As the organisation expands its footprint across the world, Katara Hospitality follows a healthy diversification strategy, aiming to create a network of five- and four-star business hotels and leisure resorts in key tourist destinations. This business-driven approach ensures that a balance is met across assets of short- and long-term profitability, and that the organisations’ cash flow projections adequately support its development. At the same time, when engaging into a project, the organisation always looks for something special, something that sets them apart. Each new property adds an exceptional dimension to the business, while considering the return the hotel is likely to yield.
Growing the business for any company is a key priority and the next natural step for Katara Hospitality is to step into key international locations.
Expanding internationally is no easy feat, but throughout the process of expansion the organisation has been sure to stick to stay true to its strategy of investing in true icons that represent heritage and pure luxury.
TTG: How to do you ensure that you stay ahead of your competitors in this fiercely competitive climate?
The hospitality industry both in Qatar and across the globe has become increasingly competitive. As Qatar’s economy continues to grow steadily, we are witnessing an unprecedented growth in high-profile hospitality projects and each hotel must decide how to be more innovative and different from its competitors. As new hotels open in the next few years, the challenge of maintaining competitive room rates while stimulating healthy market competition to maintain service standards will only grow. In today’s environment, guests’ requirements evolve quickly and hotel managers must keep their strategies flexible and plan for new changes in the industry.
While the region’s hospitality industry challenges are similar, hotels in Doha must determine how to keep their offerings innovative and different from competition, while maintaining competitive room rates so they don’t lose customers to the ever-increasing number of hotels all over the region.
Katara Hospitality continues to evolve by casting a close eye on current trends and consequently adapting our strategies to ultimately ensure alignment with our vision. Our approach for 2017 and beyond is to reinvest in our current portfolio and upcoming projects by incorporating the latest technology within our iconic properties for a more interactive and connected experience for our guests.
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