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Le Royal Meridien Bahrain hits new revenue heights

20 June 2002

Le Royal Meridien Bahrain has bucked the downturn in the tourism economy in the Middle East and has posted its impressive latest revenue figures - up 30 per cent to nearly BD 2 million to the end of April. 

Clearly, that the resort is not only weathering the economic slump that is affecting many five-star properties in the region, but has occupancy levels pegged at 84 per cent for the first quarter, up 10 per cent from the corresponding period in 2001 before September 11.

An aggressive marketing strategy coupled with a firm belief in his product have had near-instant results for Francesco Borrello, general manager of Le Royal Meridien, Bahrain. During his first six months at the helm, the hotel has seen an increase in occupancy, revenue and REVPAR, which was BD63 ($168) per room for the first quarter, up on BD48 ($128) for Q1 2001.

Brought in to revamp the product and services at the resort, Borrello has joined the growing band of hospitality executives in the Kingdom who are calling for a rethink of Bahrain tourism and its ambitions.

"I think Bahrain is one of the tourism world's best kept secrets - there is a definite need for image building and a greater commitment to attract both regional and overseas visitors," he said.

"Even with a superior product such as Le Royal Meridien, a gap in targeted marketing means we still have untapped potential to attract a wider audience."

Recent announcements regarding beach resort projects are a step in the right direction, according to Borrello, who said it demonstrated a commitment to the hospitality sector in Bahrain on the part of local, Saudi and overseas investors.

"New resorts and even attractions such as a planned Formula One racing track will help build a destination, and I think within five years, we will see a new Bahrain," he claimed. "At Le Royal Meridien, we are looking forward to the boost that competition from new hotels will create - but, certainly, our product will lead from the front."

The message at Arabian Travel Market was that the Middle East can expect growing traffic from the region, as well as the Far East and Australia, to counter the gaps left by inbound traffic from America and Europe.

"We already do well in attracting weekend traffic from Saudi Arabia, but in the MICE sector, for instance, our aim is to establish ourselves with overseas organisers given our excellent credentials for hosting this business sector," said Borrello.

"New destinations are always in demand, and Bahrain is taking huge steps to develop the right infrastructure to cater to a steady flow of incentives."

Borrello paid tribute to his team at Le Royal Meridien Bahrain following the hotel's triumph in scooping two prominent industry awards within the past six weeks.

The award for 'Best Business Hotel in Bahrain' at the inaugural Business Traveller Middle East ceremony during Arabian Travel Market follows a nomination for outstanding hotel design project, won by the Royal Spa at the Bahrain resort last month at the DEPA Middle East Hotels Awards in Cairo. 

In the meantime, Borrello said service was being enhanced in all areas of the hotel and resort, with a butler concept now on offer in all rooms, and a full-scale training and marketing strategy being implemented.

Concierge training as been carried out to the tune of more than BD15,000 ($40,000) and the investment at ground-level has been ongoing with the trials of Metrics and Measures, Le Meridien's measurement programme that piloted in Le Royal Meridien Bahrain and is now being rolled out around the world.

"We are looking at every aspect of our operations, from the concierge to the restaurants, and regular visitors have already commented on the new staff attitude," said Borrello.

On the expansion side, 23 luxury villas are under construction adjacent to the lagoon, with completion scheduled in time for the GCC Summit in 2003.

"These will add to our attraction for the top-end market where we are seeing an increase in regional visitors from Kuwait, Qatar - which will increase even more when the causeway is complete - and even the UAE, as well as our regular Saudi guests," said Borrello.

With occupancy and revenue above last year for the first quarter 2002, the boost in intra-regional traffic following September 11 is seen as one contributor to the revived appeal of Le Royal Meridien Bahrain.

However, Borrello also attributes this to the new strategy to incentivise sales staff, as well as work with travel partners to put attractive packages in the market.

"By offering bonus commission to our team for rack rate sales, we have improved average room rate and yield, while our new suite, spa and summer packages will also enable us to reach a wider audience and introduce Le Royal Meridien Bahrain as a 'full solution' hotel that can cater to both leisure and business visitors."

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