14
HOTEL PRE-OPENING STRATEGIES
A knowledgeable consulting firm or individual with local experience will
ensure cost-effective and efficient management of all items, while also
meeting the owner’s expectations and respecting the operator’s brand
standards.
When asked about the required attributes of an SOE consultant, Kuuskler
emphasised two main qualities. Firstly, a professional consultant must be
willing to learn. They will make the effort to engage with the brand concept
and acquire strong product knowledge. Secondly, they must be able to
resolve conflicting interests among the various parties: the owner, operator
and suppliers. A wise consultant will always listen to each party’s opinion and
win them over during discussions with valid and persuasive arguments. He or
she must have the ability to offer a bespoke service to suit the specific needs
of the owner while upholding the hotel operator’s brand standards. During
a heated argument between the hotel owner and operator, for example,
disagreeing on the quantity and relative expense of a particular product, it is
the SOE consultant’s job to specify the requirement and convince the hotel
owner to gain their approval.
Kuuskler shared her experience in selecting the appropriate suppliers based
on specifications and quotations. There are two mandatory factors she
emphasised: value for money and service reliability. In order to ensure these
two criteria are met, it is imperative to check the company reference, profile,
position in the marketplace, the accuracy of the documents and quotations
submitted, and small details such as the consultant’s presentation during
the meeting. A credible supplier will more likely avoid problems associated
with delivery delays or missing purchase orders. It is also the consultant’s
job responsibility to undertake tracking and expediting processes to ensure
on-time delivery. A capable consultant will arrange delivery schedules
according to the hotel’s handover phase and resolve any vendor disputes.
Problems that may arise from stage six and seven are then easily avoided
(see page 8 “Poor management of SOE”).
Building Block 2: Licensing Requirements
According to Puri, the main challenge faced when securing licenses to operate
a new hotel in Dubai is the requirements that vary from one zone to another.
All hotel establishments must register and submit the required documents
to Dubai’s Department of Tourism and Commerce Marketing (DTCM) (see
appendix 2, page 24 for DTCM’s detailed checklist of legal documents to
open a new hotel). In Dubai Media City zone specifically, a Trade Licence
must be registered and issued by the Dubai Technology and Media Zone
Authority (DTMFZA), to allow specific approvals in DTMFZA’s business free
zone in compliance with the Dubai Technology and Media Free Zone Licensing
Regulations (DTMFZA, 2015) (see appendix 3, page 25 – 26 for DTMFZA’s
detailed checklist of legal documents for FZ-LLC- For opening a new hotel).
Failure to obtain compulsory licences on time will delay the hotel's opening.
The two most well-known hotel business models are lease structure and
HMC. According to Puri, under the lease agreement it is the hotel operator’s
responsibility to obtain all licences whereas under HMC, the owner will be
accountable for licences, including all public spaces, F&B outlets, etc.
In Dubai specifically, the DTCM and DTMFZA are very cooperative in approving
a newly registered entity. The approval takes 30 to 45 days. However, as
mentioned, the main challenge is to understand the different requirements
“A capable
consultant will
arrange delivery
schedules ... and
resolve any vendor
disputes”