Refurb for Sheraton Oman
by ArabianBusiness.com staff writer on Monday, 01 January 2007
The Sheraton Oman Hotel is set to face a challenging nine months following its decision to close down the property in order to carry out essential renovation work.
One of the biggest hurdles will be managing the HR process while the US $25 million refurbishment takes place, according to Sean Cullen, the hotel’s director of sales and marketing.
“The concern we have for the people that won’t be working is that we need to protect the owners financially and protect ourselves by ensuring people come back. As part of the deal of having seven or eight months off, they can’t work for anyone else, but then there are visa issues for some of the expats,” he explained.
“We are trying to ensure that, wherever possible, people are kept active, whether they are here or outside Oman, to ensure their skills don’t get rusty.”
Cullen said some employees would be re-deployed to other Starwood properties in the region and that 40 staff members would be retained to work at the Sheraton Qurum Beach property that will remain operational.
The hotel upgrade will take 227 rooms out of a market already struggling to meet winter demand, particularly as the Al Bustan Palace has also shut-up-shop while extensive refurbishments are carried out.
However, the Sheraton Oman’s owners and operators have unanimously agreed that the corporate-focused property is in desperate need for an upgrade and that in the long-term, it will attract new markets.
“From Starwood’s point of view, the property needs to be brand compliant. More than 40% of our business is loyal guests that travel from one [Starwood Group] property to another. For them, to go from, say, the Sheraton Creek Dubai to this property is disappointing, because the standards are not consistent,” said Cullen.
“For us, [after the refurb] we will be changing our [target] market segments rather than getting back lost business,” he said.
Cullen also stressed that despite the property’s tired appearance, 2006 was its “most successful year” in terms of revenue.
Strong demand and a focus on high-yield corporate business had helped to achieve this, he explained.
A monthly diary charting the Sheraton Oman Hotel’s progress and the challenges it faces during its refurbishment period will be published in Hotelier Middle East from February.
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