The Burj Al Aram has often been described as a 'seven star' hotel, even though no such classification exists.
The Burj Al Aram has often been described as a 'seven star' hotel, even though no such classification exists.
The Burj Al Aram has often been described as a 'seven star' hotel, even though no such classification exists.
The Burj Al Aram has often been described as a 'seven star' hotel, even though no such classification exists.

Hotel star ratings standards long overdue


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In hotel reviews and industry pamphlets, Dubai's Burj al Arab is lauded with "seven star" descriptions. The reality is, of course, that no hotel has such a rating. Even the Burj al Arab's management company describes the hotel as simply a "five-star deluxe" property. "There's not a lot we can do to stop it," says a spokeswoman from the Jumeirah Group. "We're not encouraging the use of the term. We've never used it in our advertising." According to the group, the seven-star rating emerged when a British journalist who visited the hotel on a pre-opening press trip described the Burj al Arab in her article as above and beyond anything she had ever seen and called it a seven-star hotel. Hotel rating systems across the world seem to be the cause of much bemusement and debate. How can a five-star hotel in one city be so different in its services, quality and facilities from a hotel in another part of the world? "One of the most important elements of the guest hotel experience is service standards, which do not generally form part of a hotel rating system," says Max Cooper, the executive vice president at Jones Lang LaSalle Hotels. "Most rating classifications consider the quality of the infrastructure, which is more easily quantifiable, but overlook the quality of service that is more subjective to measure but critical to the quality of hotels." There is no universal classification system so the criteria that need to be met to achieve certain star ratings can vary greatly from one destination to another. Until recently, France's hotel classification system went up to "four-star luxury", dating from the 1960s. Herve Novelli, the French secretary of state for tourism, last month introduced the fifth star. In 2005, Britain introduced an updated system which uses the five-star system for a hotel's facilities, room size, cleanliness and so on, but also has gold and silver awards that are allocated to hotels of exceptional quality. "The system has always been open to interpretation by different groups, different countries, and as such has always been a little haphazard," says James Young, the general manager of the Crowne Plaza hotel in Abu Dhabi. Often, it seems that hotels awarding themselves an excessive numbers of stars is simply a marketing gimmick. One such property was the Hydropolis, the underwater hotel in Dubai that has yet to materialise. "I'm always interested as to how they arrive at those star ratings because I don't know what constitutes a 10-star hotel," Mr Young says. The Hydropolis, according to plans, was to have 220 suites 60 feet (18.2 metres) under water, complete with its own cosmetic surgery clinic, so perhaps the conventional rating system does somehow fall short of evaluating such a property. The ratings that hotels carry can become highly questionable if the system is not regularly updated, or if governments or watchdogs do not keep track of the ratings that hotels are advertising. Abu Dhabi is in the process of launching a new system to standardise classification of the capital's hotels and force them to upgrade their offerings. Dubai has also said it is about to launch new classifications to replace its system, which is more than 10 years old. The Abu Dhabi Tourism Authority (ADTA) has spent nearly two years developing the emirate's first government-regulated system, which is particularly strict. Hotels in the capital will soon have to display a plaque showing its official rating, determined by a long list of stringent criteria such as whether the rooms have plasma TVs, and how well the flooring matches the rest of the room's decor. Service standards also play an important role. According to the ADTA, some hotels fell short and lost their five-star ratings, but some managed to redeem their status in a six-month grace period, during which they had the opportunity to make changes and improvements. "Some hotels have been downgraded," said Nasser al Reyami, the director of tourism standards at the ADTA. "We are aiming to have the highest standards in the world." Many hoteliers in the capital seem to welcome the move. "One of the key things for any destination is to have a set of regulatory standards so people know what they are getting and that's why I think classification here is very important," Mr Young says. As part of InterContinental Hotels, he says the Crowne Plaza's five-star rating was based on the company's own classification system, but adds the hotel is undergoing renovations and upgrades to meet its and the ADTA's standards. "I think the new Abu Dhabi system is very strict and I think that's a good thing," Mr Young says. "They are setting up a standard for everyone to follow and it certainly has raised the game for both owners and operators in Abu Dhabi." The ADTA plans to inspect hotels three times a year to make sure standards are maintained, and the system will provide even stricter guidelines for new hotels. "We strongly believe that this will provide much-needed consistency to tour operators selling the destination and successfully manage the expectations of our visitors, and ultimately ensure a level of quality performance," says Selim el Zyr, the president and chief executive of Rotana Hotels, based in Abu Dhabi. Given that the capital plans to double its supply of hotel rooms over the next three years, the need for regulation has become even more pressing, Mr el Zyr says. Abu Dhabi's revenue per available room, the hotel industry's best measure of health, is among the highest in the world because of the small number of rooms in the emirate. The Dubai Department of Tourism and Commerce Marketing (DTCM) has been saying since last year the introduction of a new system is imminent. "Certainly in the Middle East there has to be a drastic transformation of the star system," says Michael Scully, the managing director of the independent holding company Seven Tides' hospitality division. "By nature of the products that Dubai is offering, too many hotels are classified as five-star. This stems from the days of very strong demand and not enough supply, where four-star products could get away with branding themselves as five-star products and getting the price as well." Mr Scully says Dubai also needs more four-star hotels to cater for people from different economic backgrounds. Mr Cooper says: "In our view there would ideally be a standard hotel rating system of classification throughout the UAE." rbundhun@thenational.ae

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

UAE currency: the story behind the money in your pockets
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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.”

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

Company%20profile%20
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The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Stage 5 results

1 Tadej Pogacar (SLO) UAE Team Emirates 3:48:53

2 Alexey Lutsenko (KAZ) Astana Pro Team -

Adam Yates (GBR) Mitchelton-Scott - 

4 David Gaudu (FRA) Groupama-FDJ  0:00:04

5 Ilnur Zakarin (RUS) CCC Team 0:00:07

General Classification:

1 Adam Yates (GBR) Mitchelton-Scott 20:35:04

2 Tadej Pogacar (SlO) UAE Team Emirates 0:01:01

3 Alexey Lutsenko (KAZ) Astana Pro Team 0:01:33

4 David Gaudu (FRA) Groupama-FDJ 0:01:48

5 Rafał Majka (POL) Bora-Hansgrohe 0:02:11

Abu Dhabi GP Saturday schedule

12.30pm GP3 race (18 laps)

2pm Formula One final practice 

5pm Formula One qualifying

6.40pm Formula 2 race (31 laps)

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Superpower%20
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Profile Periscope Media

Founder: Smeetha Ghosh, one co-founder (anonymous)

Launch year: 2020

Employees: four – plans to add another 10 by July 2021

Financing stage: $250,000 bootstrap funding, approaching VC firms this year

Investors: Co-founders

Sri Lanka squad for tri-nation series

Angelo Mathews (c), Upul Tharanga, Danushka Gunathilaka, Kusal Mendis, Dinesh Chandimal, Kusal Janith Perera, Thisara Perera, Asela Gunaratne, Niroshan Dickwella, Suranga Lakmal, Nuwan Pradeep, Dushmantha Chameera, Shehan Madushanka, Akila Dananjaya, Lakshan Sandakan and Wanidu Hasaranga