The COVID-19 pandemic was very heavy on the hospitality industry. Most hotels around the world ceased welcoming guests for months, and once they resumed their operations, business had remarkably changed as well as preferences and needs. In this overview, HN tries to highlight the experience of long stay hotels in the region and how did they mitigate the impact of the crisis. We tried to see if they had more advantages over their short stay peers, and whether they managed to overcome the crisis with less damage.
David Todd
Head of Operations – Middle East and Africa
IHG
Long stay hotels remain an important part of our portfolio, especially as travel restrictions begin to ease across the region. Our brands, Staybridge Suites and InterContinental Residences provide ‘a home away from home.’ Guests benefit from a comfortable living experience with the option of one or two-bedroom suites and studios, a fully equipped kitchenette as well as a workspace and living area. These brands appeal to a wide range of guests including long stay business travelers as well as expatriate residents exploring short term and flexible living requirements. Following Dubai Tourisms’ initiative to provide remote working visas to international travelers, this new guest segment has also opened up for our hotels. Staybridge Suites is IHG’s upscale extended stay hotel brand that offers an elevated, residential-style hotel designed for multi-night business and leisure travelers looking to break from the travel norm while on the road, be it for days or even months at a time. We currently have six Staybridge Suites hotels in the MEA region and have just opened a seventh hotel, Staybridge Suites in Dubai South Maktoum Airport, marking the brands’ debut in the city of Dubai. We also have Staybridge Suites Dubai Internet City and Staybridge Suites Dubai Financial Centre opening in Q1 2021. It has clearly been a challenging year for the industry, however, history tells us that travel will return. We are seeing that domestic business is returning first, largely across our mainstream segment, but also across luxury and upscale resorts and long stay. We believe that business travel will return again as social interaction and the cultural context remains important, however, large groups will be slow to return based on locations where the virus is under control. We believe that the industry will look more similar in the future than different. Consumers still have a huge appetite to travel and connect with new cultures and destinations, however, they will continue to focus on cleanliness and safety as we slowly return to normal travel habits.
As part of the IHG family, all our long stay properties comply with IHG’s Way of Clean industry- leading standards, including the new IHG Clean Promise. IHG’s global Clean Promise was announced in May as part of an overhaul of IHG Way of Clean to introduce heightened cleanliness standards to protect guests in the wake of COVID. Using new, science-led protocols and service measures, partnering with industry leading experts Cleveland Clinic, Ecolab and Diversey, and launching a global IHG Clean Promise, these strengthened measures will give guests greater confidence and hotel teams the protection needed.
Paul Bridger
Rove Hotels Management
Rove Hotels
Same as in any other industry, success or failure depends on many factors. However, in times like these is all about adaptability to the new market conditions. For hotels this about adjusting to new markets, new clients and a new business model. At Rove, we have developed an agile lean management team and agile business culture that allowed us to quickly change our business strategy when the first disruptions in travel took place. We changed our approach to focus our efforts on the local market with initiatives such as monthly stays and staycation offers. Additionally, we transformed some of our facilities to better cater to the new needs, launching a new Podcast Studio or converting some of our rooms into offices for those looking a safe and quiet space to work. While Rove Hotels are not traditionally long stay hotels, our monthly rates were already very popular prior to the start of the pandemic. Our long stay Rovers value the flexibility associated with monthly bookings plus the Rove facilities including a shop, launderette, 24 hour gym are ideal for these types of guests. With all utility bills and fees included the rate is cost effective and easy to budget for. Despite the slow down in corporate travel, the offering is equally appealing to other customer segments, so it’s a matter of targeting the right audience and adapting to the market requirements. In the short term, we believe the local market will continue to be our main source of business as residents avail of staycations and short-stays. We also expect to see strong demand for long-term hotel stays post COVID-19, as people continue to look for flexibility, and more people will be working remotely. New initiatives such as the recently announced Remote Work Program launched by Dubai Government will also be an important factor.
Nevertheless, we see that more visitors have started to come in from other countries, as things get back to normality, the numbers of international tourists will also steadily rise over the coming months. We are also optimistic because Dubai is in a very good position to bounce back, being one of the top tourist destinations in the world. The city is recognized as a safe destination by the World Travel and Tourism Council, plus we are in a great strategic position for business and stopovers. The industry as a whole is going through a transformation period that will shape the future of hospitality. For example, the importance of digital elements has massively increased in the past few months. You can tell a ‘good’ hospitality brand by its digital presence, which directly impacts their performance and perception—for instance, user experience and ease of booking matter on digital platforms. With the trends evolving, hotels also need to tap into different segments and target niche audiences by offering new services and offerings, transforming existing spaces into different types of facilities and more. In addition to the above, brands will need to differentiate themselves as travelers will pay more attention to hotels’ choice; companies and business travelers will emphasize more on service, cleanliness, and emergency planning. Business travelers will want to be assured that the hotel has the right protocols in place as contingencies, should any emergencies occur. Leisure travelers will show similar trends, especially with the further blending of business and leisure travel. We have announced expansion plans across the MENA region and these remain on track. Within the next 12 months we have several exciting openings planned. These will include: Rove La Mer Beach, which will open shortly and re-invent traditional resort hotels. Rove Expo 2020, the only on-site hotel at Expo 2020 Dubai. Rove City Walk, opposite the Coca-Cola arena and a first of its kind investment model. Additionally, we have announced and explored further hotels across the MENA region.
