A formula for success

While the global credit crunch is holding some developments back, Michel Noblet, Chief Executive of Hospitality Management Holdings, is confidently forging ahead, committed to building 100 hotels by 2012. So what’s his secret?

“Sustainability is high on our agenda and is absolutely non-negotiable”
-Michel Noblet

Hospitality Management Holdings (HMH) has quickly emerged as a key player in the hospitality sector in the Middle East, achieving rapid growth since the launch of Coral International Hotels, Resorts and Spas in 2003. Consisting of six independent firms, four of them hotel management companies, HMH has created four strong hospitality brands within five years, each designed with a specific clientele in mind, from top-end luxury hotels to select service hotels, budget hotels and serviced apartments. The HMH portfolio includes: Coral International Hotels, Resorts and Spas; Corp Executive Hotels; ECOS Hotels; and EWA Hotel Apartments.

Michel Noblet, Chief Executive of the thriving hospitality company believes that the success the firm has enjoyed so far is all down to a successful partnership structure and a highly motivated and experienced corporate team. “Outstanding vision and leadership of His Excellency Sheikh Mohammed bin Faisal Al Qassimi has been the key behind our rapid growth. Let’s put it this way – dedication and hard work form the core of our formula for success.”

Noblet goes on to explain that by specifically catering for a niche market the company is able to meet a full spectrum of choice in terms of hospitality. Each of the four brands that HMH has created is for a specific consumer group and each is designed to offer a client something different, providing for a whole range of business and leisure needs. “All four of our brands are innovative in their own way,” says Noblet. “Coral Hotels and Resorts offers boutique style luxury with personalised attention and service. Corp Executive Hotels is specially designed for business and corporate travellers and offers cutting-edge technology. ECOS Hotels is the Middle East’s first and only eco-friendly budget brand. EWA Hotel Apartments are lifestyle apartments catering to the needs of long and short staying executives and families.”

Economic difficulties
Coral International Hotels, Resorts and Spas was created in September 2003 at the height of the real estate boom in the Middle East, since then HMH has gone on to launch four brands and sign 40 management contracts. However, with the global recession in full force, there is no doubt that the hospitality trade has got tougher in recent months. “There is no denying the impact of the global recession on businesses around the world,” says Noblet. But while HMH has been hit by delays to some of the projects due to come online in the coming months, Noblet remains optimistic. “Owing to the nature of our development and the strategic diversification in terms of development we remain on course with our business objectives.”

In order to ensure that the effect of any slowdown is mitigated, Noblet is keen to continue expanding aggressively. Indeed, the company is looking at opening a hotel almost every three weeks in 2009. Noblet hopes that by continuing to go ahead with the openings, the projects will be in the right place when the market begins to pick up again.

The group has been aggressively expanding in the Middle East region with 40 projects across the region. The company is also looking at expansion into Asia, particularly China, India and Pakistan, as well as Africa, with projects lined up in both North and South Africa. Noblet believes that emerging markets will continue to drive growth and hopes to see this area grow as new properties are added to the HMH portfolio. “The move and expansion is aimed to maximise HMH's presence beyond the region as well as to open other strategic options for the group. We remain committed to develop 100 hotels by 2012 – a target not easy but it is achievable,” maintains Noblet.

By reorganising and redistributing resources, as well as implementing a number of basic cost-cutting measures, Noblet hopes to avoid any unnecessary financial burdens and release some of the financial pressure. With a 15 to 20 percent drop in the average room rates, it is clear that major steps are needed to alleviate the situation, and as such Noblet will also be looking to evaluate existing properties and focus on improving visibility by introducing promotions, as he believes that it is more important than ever to keep present customers happy and ensure they return.

“Despite the interim hurdles we are going ahead with our plans,” says Noblet. “We have full faith in the competitiveness of our team. It is a goal that is obtainable and we are already half way there having signed 50 hotels across our four brands in our first five years of operation. There is no secret path to success, but respect for quality, commitment, dedication and hard work are all key elements.”

Sustainability
With the business environment becoming more and more challenging it becomes increasingly important to operate in the most efficient and sustainable way, and that includes being socially responsible. Outlining HMH’s sustainable strategies Noblet says, “Sustainability is high on our agenda and is absolutely non-negotiable. ECOS Hotels is primarily focused on sustainable development and is the Middle East’s first eco-friendly budget brand. We are also leading the way at HMH in creating awareness about key issues and have been organising UAE’s largest children’s painting competition under the patronage of UAE Ministry of Education for environmental campaigns.”

Noblet goes on to explain that HMH environmental initiatives symbolise the efforts that the company is going to to reduce environmental burden. “At the same time our hotels are actively involved in a number of environmental initiatives to make the world a better place for future generations. In April, Coral Deira Dubai, won the Green Award for saving energy, for example.”

As for the future, Noblet seems set to prove that HMH will accomplish their goal of 100 hotels by 2012, defying the credit squeeze and pressing ahead with ambitious global expansion plans. It seems to be a winning formula for the young company, which looks set to continue in the coming years. Whether Noblet’s determination to see 100 hotels up and running by 2012 comes to fruition, and whether it pays off, remains to be seen, but without question is his commitment.