RIYADH — In the midst of competitive market environment prevailing in the hospitality industry, there is always an avenue for growth as manifested by the Shada Hotel further expansion in Saudi Arabia.

Guided by its core mission of ensuing constant and continuous growth for all investors, stakeholders, partners and employees – both financially and socially – and create an unmatched work environment where the loyalty of the employees and their growth go together in order to create and operate its own brand of properties, and be the first tourists’ choice in every destination they go, Shada sustains its expansion.

In an interview, Ms. Reem Garrash, CEO at Shada Homes Co, said “we are taking on a multi-faceted approach such that we are now developing a unique guest loyalty program to maintain our relationship with guests. We collaborate with international sales agencies to open and display our rooms in a new sales channel to reach new guest segments. We also collaborate with a very strong and well-known digital marketing agency to also explore and reach new and existing guest segments.”

She added: “We strongly believe in the “First Mover or First Follower” saying, |therefore we incorporate several new tools to boost sales that other hotels in Saudi Arabia still don’t use.”

Excerpts from the interview follow:

• The hospitality industry in Saudi Arabia is very promising, with telltale signs showing that it is the industry that will lead the economic growth of the kingdom. What sustainable approach do you apply that makes the hotel that you manage a success story? And I am referring to Shada Hotel chain which is continuously expanding.

We developed two sustainable competitive advantages. First, the Building itself. 60% of any successful hospitality property relies on the building, one that is encloses Smart and efficient spaces with designs, interiors and facilities that complement the brand and its story. Since the very beginning of every project in Shada, we pay special focus to concept development of the building and engage marketing, operation, and control departments with architects and execution teams.

Second, the cost of development. Using efficient tools and methods, we were able to reach a very competitive edge with a low cost of development per key in the GCC market. Having lower initial investment means our rooms can be sold at competitive rates while still achieving a better ROI than the market on investment.

We also developed other competitive advantages, such as Experience, which needs to continuously keep up to pace and updated on a yearly basis, to reach the pinnacle of sustainability. We focus on delivering a unique local experience, which differentiates Shada from international hotel chains. We know our guests' background and their story, therefore we are committed to serving them in a way that makes them feel at home.

• Where is the next Shada Hotel? Why did you choose it? What are the parameters you consider in identifying the right location for your hotel expansion? What are the amenities in this new hotel? Is there any particular new service that this hotel will stand out from the rest?

Shada will focus in delivering executive hotels (3 stars) in major & non-seasonal cities where occupancy rates do not go below 60%. Executive rooms have so many advantages for both investor and guests such as:

1. Very competitive rates around $100.

2. Efficient use of the hotel area.

3. Many facilities such as home theater, Grab and Go Café, Common Area with entertainment and gym equipment

4. Unique artwork that tells Shada’s story and is developed through the collaboration with many talented artists to redesign some of the rooms’ essential pieces such as the Qibla direction, coffee tables, mugs etc.

Guests can also enjoy the atmosphere brought by the artists’ paintings while working in the corridors and common spaces of the building.

• What are your career goals in the hospitality industry?

I am satisfied in my current position since I can envision and implement the change I want to see, together with the support and dedication of a very creative and hard-working team. We maintain a positive culture and harmony among the team members, as we do not impose a complicated bureaucracy and we always try to remain slim and simple regardless the size of our operation. We are a team with a clear goal, and set objectives for the next five years, where we want Shada to be the preferred place of stay in every destination.

• What makes you an effective CEO? What are your biggest strengths? your biggest weaknesses? What motivates you as a leader?

As a CEO, I stay sharp and focused on the set goals, I pay close attention to our guests and their reviews, and I ensure to maintain a fluid communication system with my team. I would say that my strengths are my determination and a eagle eye for staying focused on the goals. While my weaknesses I would say is sometimes getting overwhelmed with the smallest of details due to my nature of being detail oriented. But this is a strength too, I would say.

• What areas would you like to improve in to give added value to your services?

There is always room for improvement in any area, even if it is your area of expertise. Currently, we are focusing on improving our Food and Beverage Service while working together with a consultancy service firm in Dubai.

• Will this new hotel see a full scale Saudization of workforce?

It is nearly impossible in Saudi Arabia to reach a 100% Saudization rate in hospitality industry since we cannot hire Saudis in Housekeeping job. However, we always maintain a platinum level of Saudization in Ministry in Labor where all other positions filled by Saudis.

• Have you dealt with an unhappy or difficult customer? If yes, how did you handle the situation?

Of course, a part of the way we improve and make ourselves better is to listen to our guests and their reviews, as our commitment is to cater to the needs of the guests. Therefore, with such guests, we just need to be good listeners, take real feedback, and try to solve the issue with the most efficient solutions.

• What challenges do you expect to face in the hospitality industry and how will you address them?

One of the major challenges we face is the continuous change of regulations. The good side is most of the government entities understand the pressure of such changes and therefore assist us in any difficulty. Another challenge is the lack of good talents - we are trying to overcome this challenge by recruiting young and fresh graduate and providing them with the necessary training and knowledge for the industry, while offering an internal recruiting program for senior positions.

• Where do you see the hotel and yourself in one, two or five years’ time?

As I mentioned, we have an aggressive growth plan for the increase in the number of keys across the Kingdom. With this growth plan, we will continue to develop our operations and meet our objective of being the preferred hotel stay in every destination. — SG