Capital View

Alcohol-free hotels: What next?

Rabindra Seth

Hospitality historians (unfortunately, very few in our country) would tell you that segmentation of hotels globally began with the introduction of the star system. Since then, much water has flowed down the Thames and the Ganga. The traveller now has a choice of metro and city hotels, motels, beach resorts, mountain chalets, wildlife lodges, business hotels, spas, ayurvedic specialities and heritage experiences.

But who would have thought of non-alcohol hotels? Yet, it is happening and the concept is off the drawing board. A prestigious chain line Kempinski is the designated executor backed by investors who wish to put their money into what is called `sharia compliant' (Islam-financed) projects. The story has been reported by Imtiaz Muqbil, an Indian travel journalist and executive editor of Travel Impact Newswire, while reporting on the recent Arab Travel Mart held in Dubai.

According to Muqbil, Kempinski is to provide the management know-how for a new brand of Middle East hotels in the next few years except that they will all be alcohol-free. The new brand has been named Shaza (fragrance in Arabic) a unique lifestyle brand that is well suited to the cultural requirement of millions of well-heeled travellers, especially families, in the Gulf region as well as the global ongoing health fad.

Expressing confidence that the move will succeed, Kempinski executives say that the shift away from alcohol will be parallel to the global support to ban smoking in hotels. The CEO of Shaza Hotels, Christopher Hartley (a former Kempinski senior VP, marketing) is quoted as saying, "I don't think that one could ever imagine a day when a pub in Dublin would be smoke-free. The need to light up in a hotel lobby is gone. The same thing could well happen for a beer in a mini-bar."

Kempinski, it turns out, was chosen by the Paris-based Guidance Financial Group as a partner to develop 20 city-centre hotels. Starting with gateway Arab cities like Dubai, Cairo or Beirut, it sees potential to expand across the Islamic world including Malaysia, Brunei and Indonesia. Guidance Financial has launched an investment vehicle that will support the US $500 million development of Shaza chain. Its chief says most of the funds have already been pledged. Shaza CEO says, "The concept, timing and positioning of the new chain are ideally suited global emerging travel patterns." In fact, 18 months of research proved that now was an opportunity too good to be missed. Muqbil points out that the Islamic and Arab angle is being downplayed in the marketing pitch; the promotional literature that expresses, in a contemporary design-led environment, the aesthetic art of living and values of the Middle East and North Africa. Each property will contain unique concepts such as 'hammam influenced spas and bathrooms and restaurants inspired by an array of regional cuisine'.

The pioneers of non-alcohol hotels were a few small properties in Dubai long before the pressures of Islamic financing began to be felt. And even before Global Financial put the concept on the world hospitality map, a leading Indian chain with a property in Dubai had adopted it and taken it to a `higher level', as Muqbil reveals. Taj Palace in Dubai, he says, claims to be the first five-star hotel to have gone alcohol-free. He quotes an executive of the hotel as saying that being alcohol-free, clearly listed on the hotel's fact-sheet and the website, was an `asset'. It has helped bring in business from well-off families of Saudi Arabia and even Muslims of Indian-origin living in South Africa. So should some entrepreneur decide to introduce the concept in India, Indian expertise of the Taj group variety will already be available.

Muqbil also explains why Kempinski agreed to accept the challenge. Kempinski, he says, has a tradition of breaking new ground in the Middle East. It was the first to announce a new hotel project on Palm Island and also managed the first ski-slope in the desert. What about those who `have' to stay at a Shaza and also need a drink. "A bar next door or even in this same premise under a separate company would be the answer," quipped a hotel consultant. Remember, the good old days in Delhi when South Indian vegetarians would stay at the Oberoi and walk over to Lodi Hotel for a meal at Woodlands?