Lebanon’s buoyant tourist boom means that more luxury hotels are springing up in Beirut. A Hilton and Four Seasons are currently works in progress and at least three boutique hotels are planned for the downtown area. The sudden vogue for boutique hotel activity might challenge the cozy niche enjoyed by the InterContinental Le Vendôme and the Albergo. Vendôme general manager, Joseph Coubat, who was part of the original team when the hotel opened nine years ago as its financial controller, and then spent four years as resident manager at the InterContinental Phoenicia before moving back to manage the Vendôme, explains to EXECUTIVE how he intends to consolidate the Vendôme’s position at the forefront of Lebanon’s luxury hotel bracket.
You are planning a marketing campaign. What are the objectives and how much will you be spending?
Communication-wise, we are being a bit more aggressive, to make sure our target knows what we are and what we have to offer. But unlike the Phoenicia we are not targeting a wide range of customers. We’re investing a lot on the positioning of the hotel. We want to communicate to our clients the fact that we are the top boutique hotel in Lebanon. Our main job is to combine the InterContinental positioning with the boutique hotel quality. There are very few boutique hotels within the InterContinental chain.
As for the cost, we can’t disclose figures for that. It’s company policy. But each of the 20 suites being renovated is costing a little above $400,000. We have invested something like $2 million renovating the rooms. We will be fully renovating the Sydney’s club bar at a cost of around a million dollars. We will be renovating the lobby again. And the Vendôme holding company has decided to purchase the land next to the Vendôme and work on an extension with additional 60 square meter rooms not exceeding 100 in total, all facing the sea. There will also be a Grand Royal Suite, a rooftop bar and pool, a gym, a small spa, and parking facilities, all of which will be ready by 2007.
How much will the extension project cost?
The land cost around $7 million. As far as construction is concerned, we are still in negotiations. The new building will form one structure with the old building. Overall, the Vendôme will undergo a face-lift, to make it more attractive from the exterior. For the moment we are relying a lot on the interior, on the decoration and the exterior is for the moment not really in line. From the exterior, most people don’t see us as a top hotel. From the road, it’s a building like any other.
Is the project in part a response to the fact that your leisure space is currently limited?
It is. For the moment we are compensating by providing complimentary access to top leisure facilities in Beirut with transportation through our limousine service. However, in preparation for the long run and coming competition we know we need to expand our facilities, which today are lacking.
At least three boutique hotels are slated for the downtown area. How will this affect business?
It depends on your definition of boutique. If it is a hotel with 30 rooms, a small property, nice, charming, then we will definitely have a lot of competition. If you define a boutique hotel as that plus excellent service, detail, refined food, 24-hour service, then we have a very good competitive edge. To be competitive on room size, charm and appearance is very easy. You invest the money and you get it. Anyone can invest in Louis XV furniture and artifacts. It’s more difficult to train your people to provide excellent, detailed, personalized service and anticipative attention. Having your initials on your pillowcase, your toothpaste ready and your baggage packed by a butler make the difference.
How would you assess the level of staff training and service industry standards in Lebanon?
We have a training academy. Training was our first priority nine years ago. It remains so today. The level of service provided in this sector in Lebanon is comparable – and sometimes superior – to the level of service in Europe. It is comparable as well to any other hub country in the Middle East, like Dubai. This is because of the level of graduates and the training we provide them. We have a Guest Satisfaction Tracking System overseen by the British company TNS. It monitors the level of service provided by hotels in Europe, the Middle East and Africa. For a year now, the Vendôme has occupied the top spot. Repeat business accounts for almost 60% of all clients, but employee retention is also a priority.
What were your average occupancy, room rates and revenues for 2004?
Occupancy was 80%. Our target for next year is 81%. We closed the year at a rate of $330. And our revenues were above $12 million.
The ministry of tourism has refused to give you five-star status? Why? Do you care?
The ministry should review the classification process. The old criteria are outdated. They won’t give us five stars because we don’t have a swimming pool. If you have a three square meter pool you get the five stars. You have five-star hotels whose room rates are four times lower than ours. The refusal to give us five-star status has never been a handicap. We have our reputation. My main concern is preparing the hotel to take on the coming competition. We have a lot of international chains opening hotels here. We want our hotel to be the hardest place to get a room in.
(OPTIONAL CUT) What are your main revenue streams? In particular, how do your F&B outlets perform?
About 60% of our revenue stream is generated by the rooms. The rest comes from food and beverage and other operating departments. That’s a big portion. F&B is very successful here, and that’s with only two outlets – Sydney’s and Au Premier. F&B is our window to the local market and to the promotion of our property – especially for the corporate market.
What is the profile of the Vendôme guest? Has it changed over the four years since September 11? How have you reacted to that evolution?
Since the events of September 11 and the SARS virus, the leisure section has increased tremendously. A number of factors have raised the profile of regional tourism and have led to an increase in demand for Beirut. During the leisure period, or high season period, around 70% of guests come from Gulf Cooperation Council [GCC] countries. During the business season, or low season, the origin is spread more between Gulf nationals and an increasing number of tourists from Europe.
There is a perception that one of the reasons many Gulf Arabs come to Lebanon is for the prostitutes. Some luxury hotels’ reputations have been affected. Has yours? Are prostitutes active in your hotel?
It’s a problem in Beirut. We have to face it. It’s not just a reputation. It’s a reality. However, the Vendôme policy is to stop all prostitutes from entering the hotel. However, during the summer, our guests from Arab countries are usually families and
often royalty. We do, though, of course suffer because of prostitution. And especially a place like Sydney’s, which is open 24 hours, can, if not controlled, become a hub for this type of activity. By now, though, we have a full profile of all the prostitutes in Beirut. We know who they are. That doesn’t mean we don’t sometimes have ‘incidents.’
Incidents?
Sometimes a guest brings a prostitute with him to his room. We cannot stop the client doing that. We cannot intimidate the client. But we make sure that when the lady leaves our staff escorts her. We have had incidents where we stopped certain ladies either entering or leaving the hotel and it emerged that they weren’t prostitutes. But the way they were dressed or ‘groomed’ made us think they were prostitutes. We had a big, big, big problem. A lot of people from outside were interfering, saying: ‘how could you do that to this lady. I know her.’ It’s a sensitive issue.
