The main entrance of the Pera Palace Hotel in Istanbul. Courtesy Pera Palace Hotel
The main entrance of the Pera Palace Hotel in Istanbul. Courtesy Pera Palace Hotel
The main entrance of the Pera Palace Hotel in Istanbul. Courtesy Pera Palace Hotel
The main entrance of the Pera Palace Hotel in Istanbul. Courtesy Pera Palace Hotel

The glamour of travel from a bygone era at Pera Palace Hotel, Istanbul


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The welcome

Despite its name, illustrious history and a two-year, €23 million (Dh124m) renovation, there is nothing remotely grand or intimidating about the Pera Palace Hotel. I'm greeted by a smiling doorman who immediately makes me feel like I've just returned to a sumptuous private members club after a long absence. The atmosphere is calm and genteel, my fellow members include Atatürk, Hemingway and Agatha Christie, and I'm happy to collude in this delusion for the rest of my stay.

The neighbourhood

In the 19th century, Pera was Istanbul's most contemporary quarter. Today the area, now known as Beyoglu, is one of the city's most vibrant, being just as popular with fashionable Istanbullus as it is with tourists. Both promenade the nearby Istiklal Caddesi, Beyoglu's main pedestrianised shopping street, and flock to its many chic bars, restaurants, boutiques and cafes. In comparison given the hotel's refined interior, some streets are still decidedly down at heel, but with nearby neighbours such as the excellent Pera Museum (http://en.peramuzesi.org.tr/) and the Istanbul Culinary Institute (www.istanbulculinary.com/eng/), the area attracts a smart, sophisticated crowd looking for the best of Turkish culture and cuisine.

The service

Intelligent, articulate staff act as ambassadors for the hotel and for the city as a whole, and I feel genuinely welcome in both. When I ask for directions to a particularly obscure museum but insist on walking, the receptionist provides me with a map and written instructions before calling ahead to check that it will still be open by the time I arrive.

The room

On the top floor with a Golden Horn view, my deluxe room would have housed servants in the hotel's heyday. The 145 original rooms were reconstructed to create 115 modern ones, but these still feel small and the lack of space means bathrooms, except those in suites, come with baths or showers but not both. Despite sumptuous marble finishes, a heated floor that's perfect for winter and a hammam-style hot seat in the shower, my bathroom felt cramped. Each room also includes original hotel furniture but the modern interiors disappoint, being more suited to a smart business hotel than to the glorious public spaces outside. There is complimentary Wi-Fi access in each room and a spa with a hammam and indoor pool in the basement.

The food

The hotel's main restaurant Agatha pays tribute to the three major stops made by guests as they originally travelled to the hotel on the Orient Express: Paris, Venice and Istanbul. It serves a combination of French, Italian and Turkish dishes that are available à la carte or from the chef's six-course degustation menu (125 Turkish lira; Dh300) and it's the Turkish dishes that really stand out. For à la carte offerings try the saffron-infused artichoke soup cooked in olive oil (18 lira; Dh43) or marinated saddle of lamb stuffed with dried aubergine and green beans wrapped with pastrami and mint sauce (46 lira; Dh110).

The scene

Judging by the designer glasses, high-concept luggage and artfully unkempt hairstyles, the Pera Palace seems to be a favourite with slightly older writers, journalists, academics and architecture junkies out of season, as well as alternative business people looking for a suitable venue for their breakfast meetings. During high season, the hotel attracts larger, organised tour groups of foreign tourists for one or two nights who come to see the hotel's in-house Atatürk museum as well as room 411 - Agatha Christie's favourite and reputedly the suite where she was inspired to write her novel Murder on the Orient Express.

Loved

Afternoon tea (55 lira; Dh130) served in the Ottoman splendour of the courtyard-like Kubbeli Saloon and Tea Lounge is a culinary and architectural pleasure that should feature on every tourist's itinerary. However, coffee and cake in the fondant intimacy of the Patisserie de Pera is enjoyed by Istanbullus and visitors alike and provides an even better spot for a mid-morning rendezvous or people watching.

Hated

For visitors unused to Istanbul's mottled beauty, the immediate vicinity of the hotel is likely to disappoint, flanked as it is by a busy road and a football stadium on one side and an ugly municipal car park on the other. However, the hotel's beauty, views across the Golden Horn and proximity to excellent restaurants, shops and nightlife more than make up for this.

The verdict

Istanbul rightly claims to be one of Europe's hippest and most exciting cities, and the renovation of the Pera Palace has put the hotel right back where it belongs, at the heart of the city's cultural and urban renaissance. Part museum, part monument, part myth, the rejuvenated Pera Palace is a hotel where visitors can experience the glamour of travel from a bygone age in surroundings that are as romantic as they are authentic.

The bottom line

A double room costs from €250 (Dh1,347) per night, including taxes and breakfast. Pera Palace Hotel, Mesrutiyet Caddesi No: 52, Tepebasi - Beyoglu, Istanbul (www.perapalace.com; 00 90 212 377 4000).

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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.”

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