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"http://archive.gulfnews.com/business/Hotel_and_Tourism/10127823.html"Sharia
-compliant hotels gain popularity


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05/26/2007 02:25 PM | By Shakir Husain, Staff Reporter

Dubai: As tourism grows in the Middle East, a new breed of alcohol-free
hotels is trying to make its mark on the travel business.

Operators of those companies say the Sharia-compliant hospitality model is
good for both culture and commerce.

Such no-alcohol hotel chains are among a number of new hoteliers that have
come up in the Gulf amid a wave of hotel construction activity.

Alain Guernier, chief executive officer of recently-launched Tamani Hotels &
Resorts, said business potential is huge "as people from the region are
travelling more and more and would like to stay in hotels which respect
their values and culture."

Tamani, part of the UAE-based KM Holding, plans to open luxury properties
both in major Middle Eastern cities and other regions.

Shaza Hotels, an alcohol-free luxury hotel firm launched last year, is
opening seven hotels within the next three years.

Shaza, which means fragrance in Arabic, is an initiative of private equity
firm Guidance Financial Group and Kempinski Hotels.

"Sharia-compliant hotel chains are providing the right product and
environment for many people of the region and from outside. They are part of
a culture which needs to be respected and also provide great alternatives to
international hotel chains. We abide by Islamic principles and are providing
true Arabic hospitality, which is what a lot of people want to experience
when they travel to the Middle East," Guernier said.

Their expansion plans show the companies are aggressive about achieving
long-term growth.

Target

Tamani aims to manage about 16,000 rooms that KM Holding plans to create in
various categories, including furnished apartments, in three to five years.
Countries being targeted are the UAE, Saudi Arabia, India, Morocco, Turkey,
Indonesia and Malay-sia.

Similar plans have been unveiled by Shaza. It hopes to have a portfolio of
30 hotels in the next few years.

Naseem Javed, president of ABC Namebank International, a firm that advises
on corporate brand-building, believes the formula adopted by
Sharia-compliant hotels can be successful. "The international rules and laws
customised to Islamic issues and properly applied to projects will create
great name brands," he told Gulf News at a recent hotel conference in Dubai.

Dubai-based Coral International recently launched an "environment-friendly"
budget hotel brand.

Numbers

The sheer number of hotels being built in the Gulf has created room for new
Gulf-based players. Dozens of hotels are under construction in the UAE
alone.

However, not all hotel operators from the region belong to the alcohol-free
category.

Sometimes it is pointed out that alcohol-free hotels receive low food and
beverage revenues that can affect their profitability.

But Shaza chief executive Christopher Hartley describes the issue as
"irrelevant." "It is totally irrelevant. Our study showed that we will be
overcompensated in revenues by introducing specialist culinary concepts," he
said.

 

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