Invest in Food and Beverage Outlets, says GM of Le Meridien Mina Seyahi Beach Resort & Marina

Investment in food and beverage facilities at a resort is critical, even if the short-term benefits are not immediately apparent, claims Michael Scully, general manager of Le Meridien Mina Seyahi Beach Resort & Marina in Dubai.

According to Scully, the F&B and banqueting facilities are the fastest-growing source of revenues and profits within a hotel. Le Meridien Mina Seyahi registered a 25 per cent year-on-year growth in this area in 2003.

He said: “Effective yield management – especially in light of the external challenges of SARS and the Iraq conflict in 2003 – has had a huge dollar impact on hotel profits. However, our highest increases in profit margin and revenue growth can be traced in the F&B department.”

The upscale lifestyle resort in Dubai has recently extended its facilities across the resort, including the extension of its flagship restaurant Retro, its beachside dining at Barasti, and the addition of the Chef on Demand service for Club guests. A new 400-seater restaurant is scheduled to open in the autumn.

According to figures released last year, restaurant spend increased by 7 per cent in the region, and Scully believes that increased upscale facilities should continue to drive this figure up further.

“Twenty years ago, most hotels saw F&B outlets as necessary to try and help sell rooms; but nowadays, the most successful properties have positioned their restaurants as key to the guest experience.

“Instead, hotels should look to maximise the appeal of their restaurants, and constantly look to innovate and build on their facilities where appropriate.

“Hotels need to be aggressive in the operation of the F&B and banqueting departments to complement the positioning of the hotel – and make money. It is key to capitalise on the use of their space, but hotels should think ‘outside the box’ and don’t be afraid to use non-traditional areas for banqueting.”

According to Scully, room nights will continue to have the greatest impact on revenue – Le Meridien Mina Seyahi registered a 10.6 per cent rise in revenue in 2003 – but that there is room for growth from non-room areas.

“Given the right focus, drive and investment, the F&B department can be a valued source of profit.”

The Chef on Demand service, termed “couture cuisine” by the management, is available for all Club guests, who can choose their menus, as well as their place of dining.

This move is the latest in a series of market-leading ventures at the upscale resort, which saw its revenue outperform every year in its history for 2003.

The property, which underwent significant landscape extensions in 2003, registered a 16 per cent increase in average room rate for the year.

The programme of substantial renovations is now almost complete, with the principal phase, the increase of conference and banqueting and facilities, and the extension of the beach and marina to reach 1,200 metres, already paying dividends.