Starwood has built ‘Loyalty Beyond Reason’ –  Ahdab

Hassan Ahdab is the Vice President/Regional Director, Africa & Indian Ocean, Starwood Hotels & Resorts Worldwide. Recently, he spoke with Obinna Emelike on the commitment of the global hotel chain at building strong presence and a robust pipeline in Nigeria and beyond. Excerpt:
 
Attachment-1How many properties do you have in Nigeria and what is your expansion plan?
We currently operate five hotels in Nigeria including; Sheraton Abuja Hotel, Sheraton Lagos, Four Points by Sheraton Lagos, Le Meridien Ibom Golf Resort & Spa and Le Meridien Ogeyi Place.
Nigeria continues to be a key market for us with many opportunities for further expansion. We have six hotels currently under construction. They include; Four Points by Sheraton Ikot Ekpene scheduled to open in 2016, Four Points by Sheraton Abuja, The Westin Abuja, Four Points by Sheraton Ikeja, Four Points by Sheraton Ibadan, and a Luxury Collection hotel in Lagos. We continue to actively pursue more opportunities.
How prepared is Starwood in the scramble for market share among international brands in the Nigerian hospitality industry?
Nigeria is one of Africa’s fastest growing economies and therefore naturally a hotspot for hotel development with more and more international operators wanting to enter or expand in the market.
Starwood was the first international hotel chain to debut in Nigeria. Our legacy dates back to 1985 when we first opened Sheraton Lagos Hotel. Today, we enjoy a strong presence and a robust pipeline. Our brands resonate well in the market and we have built “Loyalty Beyond Reason” with a regular and committed guests.
Our first mover advantage, our history and experience in the market, our long standing relationships, the strength of our distribution , the power of our compelling lifestyle brands and our loyalty program, we believe gives us a competitive edge in the market . The fact that we have strong local teams who understand the country and the nuances of doing business in Nigeria is a value that we recognize.
As an international brand, we bring in quality standards and our brands appeal to the aspiring fast growing and rapidly expanding middle class. More people than ever are entering the ranks of the very wealthy and developing a taste for luxury. The rapid pace of urbanization together with the rise of the middle class, we believe is an opportunity for us. Our brands are strongly positioned and differentiated from a lifestyle perspective and cities grow and micro markets develop, we will find ample opportunity to grow our footprint and operate multiple brands within the same city. Ikeja and Victoria Island are good examples of this.
How supportive have your Nigerian partners been in delivering hotels projects according to Starwood standard, specification, and deadline?
We have enjoyed long standing relationships with our partners and have nurtured these over a period of time. Our partners believe in the individual spirit of our brands and in the collective strength of Starwood. They also believe in our ability as a management company to manage their assets and realize the value of adhering to standards specially those relating to security, fire and life safety. They also know that in order to deliver a differentiated experience, it is important to adhere to brand guidelines and design standards. It is the result of mutual trust we have built over a period of time.
At the same time, we understand challenges they may have and work closely with them to find mutually agreeable solutions without compromising on the mandatory security and safety standards.
Do you think the current economic downturn in Nigeria will affect the delivery of some of your hotel projects in the country before the deadline?

We hope not. We are cautiously optimistic and do believe in the resilience of Nigeria as a country to be able to ride the downturn and bounce back.

Are there partners or hotel projects you are leaving out and why?

We follow a rather elaborate process of due diligence before we sign a deal and do believe that once we sign a deal, we stay committed to it.

What effort are you making to place your brands in Nigeria according to their global standard as some hotels here, especially Four Point, seems to be priced higher than Sheraton and Le Meridien?
Our development mantra is right location, right partner, right brand. We differentiate our brands from a lifestyle perspective and not a price point. The price is a matter of demand and supply and the dynamics of the micro market both from a demographic, as well as, a psychographic point of view. In some markets or at certain times of the year, you will find our Upscale brands being in higher demand than our Upper Upscale brands and therefore commanding a higher price.
On a separate note, as an international operator we believe we can play a significant role in training the local youth and providing a skill set, as well as, a career path which allows the youth of the country to lead a better life and seek employment globally.
 
A lot of your Nigerian guests still do not subscribe to SPG, are there plans to get them on board?
Our Starwood Preferred Guest (SPG) Member database in Nigeria is significant and our view is that as we grow our footprint and foray new brands into the market, people will become more familiar with our brands and look for them when they travel abroad. This will allow us enroll new members and build loyalty. Working with partners like Emirates Airlines and Uber also gives us the opportunity to expand our member base and connect with our members, before, during and after their stay. We also engage with our members through special member events like the SPG Golf Tournament Le Meridien Ibom Hotel and Golf Resort. SPG remains core to our strategy.

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