The Mercure City Centre Hotel uses recycling, LED lighting and water-efficient devices to conserve water and electricity. Delores Johnson / The National
The Mercure City Centre Hotel uses recycling, LED lighting and water-efficient devices to conserve water and electricity. Delores Johnson / The National

Abu Dhabi hotels reap benefits of going green



Sustainability and efficiency have become key concerns when planning infrastructure and major building developments but now attention has turned to the role such considerations play in the country’s hospitality sector.

One of the oldest hotels in Abu Dhabi reflects the changing landscape. The three-star property in the capital’s business district has been replacing outdated lighting and putting in water-saving systems ever since the city’s green guidelines were implemented four years ago.

Built in 1979, and renovated in 1997, Mercure Abu Dhabi Center Hotel on Hamdan Street, a 215-room hotel spread over 20 floors with nine restaurants, recycles 30 per cent of the approximately 1.9 tonnes of waste it generates per month, which amounts to 570 kilograms. Staff are incentivised to collect recyclables such as paper, plastic, cans and cooking oil by sharing proceeds from the sale of the waste.

Since it put in more resource-efficient systems, it has reduced water bills by 25 per cent and electricity bills by about 10 per cent a month, says Peter D’Veiga, the chief engineer at the hotel who has been with the property since its first day.

But guests are harder to please.

“Some of them want more water pressure and brighter lights but you can’t help it, we are still providing them the best of the things,” he says. “But today, many are aware of [sustainability issues].”

The Mercure, being an older property, will not be affected by new hotel rating policies due to be implemented by Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) from the end of the year – but sustainability is a key plank of the system.

TCA Abu Dhabi says the sliding scale of one star to five stars will affect new projects and will take into consideration how water and energy efficient the properties are and their contribution to waste reduction.

Implementation of the policies for hotels will be checked via a one-off assessment carried out by the Urban Planning Council at the design stage.

"The [new] Pearl Building Rating System [PBRS] for hotel design is intended to be applied at concept and design stage of the development," says Nasser Al Reyami, the director of standards regulations and licensing department at TCA.

“[But] TCA Abu Dhabi collects data on hotel water, energy and waste performance during operations for all hotels, not only those that will be designed according to Estidama PBRS design requirements,” he adds.

While the original Estidama (which means sustainability in Arabic) Pearl Rating System was launched in 2010 and encompasses all facilities, including hotels, there had not been one exclusively for the hospitality sector until now.

The new classification system will take into consideration some additional parameters. Among these will be the social media reputation of a hotel, its rating provided by Olery.com, says Mr Al Reyami.

“The new classification will marry the important aspects of services and customers’ feedback in addition to just the infrastructure of the hotel.

“This allows TCA to have a more accurate measurement of the hotel performance as rated by TCA’s inspectors and social media ratings,” he says.

The Amsterdam-based Olery.com tracks online reviews on sites such as Tripadvisor, and social media feedback on Facebook, Twitter and Four Square among others, on issues such as cleanliness, location and service. It will track the online reputation of all TCA-licensed hotels.

“We analyse and see whether a hotel is good enough to deserve the number of stars it has got,” says Kim van den Wijngaard, the chief executive and co-founder of Olery.com. “But it is not only a punishment tool as a hotel, which has a good reputation online, can earn an extra star [from the authority].”

Among new hotels, Rotana’s Saadiyat Island property will be compliant with both the old and the new system. The company has not given an opening date for the property.

“There is a marginal increase in capital costs but this should recoup over several years, due to the significant savings in operating costs,” says Greg Allan, the area vice president of Rotana for Abu Dhabi, Al Ain and Salalah.

Towards the end of last year, Abu Dhabi was on target to receive 3.1 million tourists and it aims to attract 3.5 million this year. There were 157 hotels and hotel apartment properties in the emirate during the first 11 months of last year, with numerous others in the pipeline.

“For new projects there is still time to fit the development within the new regulations, however, from experience this tends to increase the total costs of the project by 8 to 10 per cent or more,” according to Filippo Sona, the director of consultancy at Colliers International. “In turn it gives the hotels better life, cycling costs and the ability to drive more profitability by saving utilities costs.”

In addition, good green credentials provide a marketing tool that can help to make a destination more attractive – especially for the growing number of travellers for whom a hotel’s carbon footprint is important, say consultants and hoteliers.

“Promoting responsible and sustainable tourism provides a competitive advantage for the emirate as sustainability is becoming one of the key decision-making factors for some holidaymakers,” says Mr Sona.

“The new generation of travellers feels that the experience is complete if the choice of hotel is environmentally friendly.”

When considering sustainability for a new hotel, it is important to integrate the features at the design phase, according to Holley Chant, the executive director for corporate sustainability at KEO International Consultants in Abu Dhabi.

But, she points out, that is not the end of the story.“It is critical, post-occupancy to have proper facilities maintenance done with a trained team on an Estidama building and also to have recommissioning of the building periodically,” she adds.

For new hotels, implementing policies outlined in the new Estidama Pearl rating system are key.

Steps can include using solar power for heating water and using energy efficient LED light fixtures.

Other ways of boosting efficiency can be more prosaic. Rotana, for example, allows guests to opt not to have their bed sheets changed on a daily basis and has installed restrictors that cut the flow of water from taps in bathrooms and restrooms.

It has also introduced technology to regulate air conditioning systems as well as motion-sensors – meaning communal lighting such as in corridors is only used when triggered by a person.

Other sustainable initiatives centre on recycling. In the past two years Rotana properties in Abu Dhabi have recycled 810 tonnes of waste.

The Beach Rotana Abu Dhabi has installed a composting machine with capacity of 270kg of food and garden waste that produces about 2.7kg of compost per day for use on landscaping features. The result is a reduction of food waste, material that is thrown away, of 85 to 90 per cent, Mr Allan says.

Waste management can start with a hotel reducing the number of disposable items in each room, such as at many five-star establishments that provide printed welcome letters in envelopes bearing the guest’s name, or cutting down on the numerous bottles of shampoos, shower gels and conditioners most offer.

“For many guests throw-away excesses no longer define luxury but actually offend them,” Ms Chant says.

The global travel websites Tripadvisor and Booking.com highlight hotels that are energy efficient, while the Amsterdam-based BookDifferent.com, an affiliate of Booking.com, has been tracking the carbon footprint of hotels including those in this country since it launched in 2012. It has more than 585,000 hotels on its portal and of that 891 are in the UAE.

Back at Mercure Abu Dhabi, the hotel’s chief engineer wants to put in more energy-saving features.

“But it requires [a] big budget,” Mr D’Veiga says.

“Also, we have lots of used disposable batteries, bulbs and lights that we are storing because there is no supplier who can collect these.”

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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

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How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

Result
Qualifier: Islamabad United beat Karachi Kings by eight wickets

Fixtures
Tuesday, Lahore: Eliminator 1 - Peshawar Zalmi v Quetta Gladiators
Wednesday, Lahore: Eliminator 2 – Karachi Kings v Winner of Eliminator 1
Sunday, Karachi: Final – Islamabad United v Winner of Eliminator 2

Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.

  • It’s So Easy
  • Mr Brownstone
  • Chinese Democracy
  • Welcome to the Jungle
  • Double Talkin’ Jive
  • Better
  • Estranged
  • Live and Let Die (Wings cover)
  • Slither (Velvet Revolver cover)
  • Rocket Queen
  • You Could Be Mine
  • Shadow of Your Love
  • Attitude (Misfits cover)
  • Civil War
  • Coma
  • Love Theme from The Godfather (movie cover)
  • Sweet Child O’ Mine
  • Wichita Lineman (Jimmy Webb cover)
  • Wish You Were Here (instrumental Pink Floyd cover)
  • November Rain
  • Black Hole Sun (Soundgarden cover)
  • Knockin’ on Heaven’s Door (Bob Dylan cover)
  • Nightrain

Encore:

  • Patience
  • Don’t Cry
  • The Seeker (The Who cover)
  • Paradise City
Indika
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How to increase your savings
  • Have a plan for your savings.
  • Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
  • Decide on a financial goal that is important to you and put your savings to work for you.
  • It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings. 

- Carol Glynn, founder of Conscious Finance Coaching

 

 

Results

Stage 7:

1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29

2. Sam Bennett (IRL) Deceuninck-QuickStep - same time

3. Phil Bauhaus (GER) Bahrain Victorious

4. Michael Morkov (DEN) Deceuninck-QuickStep

5. Cees Bol (NED) Team DSM

General Classification:

1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28

2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35

3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02

4. Chris Harper (AUS) Jumbo-Visma - 0:01:42

5. Neilson Powless (USA) EF Education-Nippo - 0:01:45

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”