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How to Mitigate Pitfalls in the Hotel Pre-Opening Phase

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Stirling Hospitality Advisors

By Nayla Chowdhury, Senior Director – Asset Management, Stirling Hospitality Advisors

Whether you’re a seasoned hotel manager or a first-time hotel operator, the hotel pre-opening phase presents significant challenges that, if not managed carefully, can lead to delays, budget overruns, and operational inefficiencies. Each step, from planning and construction to staffing and financial management, requires precise coordination. Therefore, establishing a clear, time-bound critical path is crucial for effective pre-opening management. Below are the key risks and recommendations for mitigating them.

Planning and Construction Delays

Construction delays are among the most critical risks during the pre-opening phase. Multiple stakeholders— Owner, Operator, and Contractors— must agree on layouts, facilities, and entertainment plans. Delays in finalising approvals, such as design or snagging templates, can push back opening dates and increase costs. To avoid this, it’s essential to define clear timelines and accountability from the start, ensuring all parties agree on a final opening date. Regular, structured meetings, such as weekly updates, should be held to address any emerging issues promptly.

Staffing Challenges

Recruiting key personnel, particularly the General Manager (GM) and senior leadership, is another area prone to difficulty. Early discussions about recruitment timing, salary structures, and housing arrangements are crucial to preventing potential problems. Misalignment between stakeholders on staffing needs or housing can lead to tension, especially if temporary labour is required during pre-opening. Ownership and the Operator must collaborate effectively to streamline the recruitment and onboarding process for key personnel, ensuring that all leadership roles are filled in a timely and efficient manner.

Financial Planning and Budget Control

Pre-opening budgets often face discrepancies between forecasted and actual expenses, which can lead to budget overruns if left unchecked. To prevent this, operators should reconcile the budget every month, comparing actual spending to forecasts and making necessary adjustments based on variances. This proactive approach helps ensure that the funds allocated for the entire pre-opening period are managed efficiently, preventing any financial strain during the later stages.

Operational Readiness

A crucial step before opening is the 4-week dry-run period, designed to identify and address operational issues that could impact the guest experience and damage the hotel’s reputation. This trial phase should be used to stress-test all systems, from front-office operations to back-of-house logistics. Ensuring that key systems such as Property Management System (PMS), Guest Room Management System (GRMS), and Building Management System (BMS) are set up on time is vital to the hotel’s smooth operation. Any problems that arise during this phase should be immediately rectified. Additionally, securing all required licenses, such as those for liquor and insurance, and finalising utility accounts before opening will prevent operational disruptions.

Procurement and Supply Chain Management

Timely procurement of operating supplies and equipment (OS&E) is crucial for smooth pre-opening operations. Delays, whether due to long lead times or supply chain disruptions, can affect the readiness of hotel spaces and overall operational efficiency. Early and strategic procurement planning, with clear timelines for each delivery, is essential. Regular collaboration between procurement teams, operators, and stakeholders helps identify potential delays with critical items, ensuring alternative suppliers are engaged if necessary.

Legal and Compliance Issues

The pre-opening phase involves navigating complex legal obligations, such as obtaining building completion certificates and ensuring compliance with safety and fire regulations. Delays in these areas can result in costly postponements of the opening date. Moreover, the Delegation of Authority, which includes the Power of Attorney and Bank Payment Authority Matrix, is crucial to empowering the GM and the pre-opening team. Early engagement with legal teams helps secure all necessary licenses and certificates on time, while regular communication with regulatory authorities ensures inspections and approvals are obtained when needed.

Marketing, Sales, And Public Relations

A solid Marketing, Sales, and PR strategy is essential for a successful hotel launch. These activities, often governed by the Hotel Management Agreement (HMA), require joint approval from both the Owner and Operator. A well-coordinated approach during the ramp-up period— whether for a soft or grand opening— can determine the property’s success. Early planning of promotional activities, media engagement, and sales strategies enhances the property’s market presence and ensures high occupancy during the critical early stages of operation.

Asset Management

Asset management, which involves advising ownership and supervising the project management team, plays a critical role in the hotel’s long-term success. Early involvement of the asset manager helps identify potential issues and ensures that the hotel meets both operational and financial goals. This hands-on approach allows the asset manager to gain a deep understanding of the asset and ensures that all decisions made during the pre-opening phase align with the ownership’s long-term interests.

The pre-opening phase involves various interconnected challenges. However, with meticulous planning, strong communication, and proactive risk management, these obstacles can be effectively mitigated. By focusing on key areas such as construction, staffing, budget control, and compliance, hotel teams can ensure a smooth transition into full operations, laying the groundwork for long-term success.

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Tailoring Strategies for the Modern Client Through Collaborative Wealth Management

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Continental Group

By Akshay Sardana, VP of Strategy & International Development, Continental Group

Wealth management has undergone a transformative shift. It is no longer confined to the realms of mere asset accumulation and now embraces a holistic approach that addresses the diverse and evolving needs of clients at every financial stage. With the growing recognition that each client’s financial journey is unique – shaped by their life goals, aspirations, and challenges – wealth management isn’t just about managing money anymore; it’s about creating a tailored financial blueprint that adapts to the client’s changing needs over time. Today’s wealth management landscape offers a compelling opportunity for financial institutions to reimagine their role.

Meeting clients where they are

At the heart of modern wealth management lies the principle of personalization. Clients today expect more than cookie-cutter solutions. They are looking for strategies that truly align with their personal goals and circumstances. Whether they’re focused on growing their wealth, preparing for retirement, or managing complex tax situations, the emphasis is now on creating financial plans that are as unique as the individuals themselves.

This tailored approach begins with a deep understanding of the client’s financial situation. It’s not just about crunching numbers – it’s about having meaningful conversations to uncover what matters most to them. This depth of insight allows wealth managers to create financial plans that are both solid and adaptable, ready to evolve as life changes.

Take, for instance, a client whose primary objective is ensuring their family’s financial safety. For them, insurance becomes more than a product – it’s a cornerstone of their financial strategy. It offers peace of mind, acting as a safety net against unforeseen events. Integrating such protection isn’t always straightforward, but with the right expertise, it can seamlessly complement their broader wealth plan, reinforcing their sense of security.

Insurance often gets sidelined in wealth management discussions, yet it’s a quiet powerhouse in protecting and preserving wealth. Beyond offering peace of mind, it acts as a crucial safety net against life’s unexpected turns. Navigating its intricacies, however, isn’t always straightforward. This is where having the right expertise – especially through well-aligned partnerships – can transform a complex task into a seamless part of a client’s financial strategy.

Navigating complexity with trust and expertise

Incorporating these varied financial elements isn’t just about ticking boxes – it’s about delivering a seamless experience where every aspect of a client’s wealth is interconnected. Whether it’s guiding a client through turbulent markets or helping them plan a legacy that spans generations, the goal remains the same: creating strategies that are both resilient and deeply personal.

Take multi-generational wealth transfer as an example. It’s not just about passing down wealth; it’s about doing so in a way that respects family dynamics, minimizes tax burdens, and ensures long-term sustainability. Such intricate planning requires more than just surface-level expertise. It calls for a collaborative approach where wealth managers, legal experts, and tax specialists work in harmony, each bringing their unique insights to the table. This kind of collaboration ensures that clients receive well-rounded, informed advice tailored to their specific needs.

But expertise alone isn’t enough. Today’s clients are savvy. They want transparency. They need to know that every decision made on their behalf is clear, ethical, and in their best interest. This is why trust is everything. It’s built through open, honest conversations where clients feel fully informed about their options. When clients trust that their advisors are not only skilled but also acting with integrity, that’s when true long-term partnerships are forged. In wealth management, this trust is what sets apart good service from exceptional, ensuring clients feel secure and confident in every step of their financial journey.

The role of education and adaptability

A critical part of building this trust is education. Clients today are more informed than ever, and they expect clarity in every aspect of their financial journey. When we demystify complex concepts – be it investment strategies, tax implications, or insurance options – we empower clients to make decisions with confidence. Transparency in this process isn’t just about ticking regulatory boxes; it’s about fostering a genuine, lasting partnership where clients feel truly understood.

But trust doesn’t stop at education – it extends to how we handle change. The financial world moves quickly, and so do our clients’ lives. Whether it’s a shift in market conditions, change in government regime, or a personal life event, being able to adapt is crucial. Flexibility is what allows us to keep our clients’ plans on track, ensuring their financial goals remain within reach despite the uncertainties. This adaptability isn’t about reacting; it’s about anticipating, staying one step ahead, and guiding clients through both calm and turbulent times with confidence.

When you’re managing the intricate financial needs of any client, the stakes are high. And, so, it is becoming increasingly clear that the future of wealth management lies in collaboration between innovative institutions. It will be about blending expertise with transparency, ensuring every decision is informed and every plan resilient. Financial institutions have a unique role in this journey – not as isolated service providers, but as part of a collaborative ecosystem.

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Rethinking customer engagement: How banks can thrive in a digital-first world

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WebEngage

By Hetarth Patel, VP – Growth Markets (MEA, Americas, APAC), WebEngage

The banking sector in the MENA region finds itself at a critical crossroads. On one hand, the macroeconomic environment is conducive to growth – favorable policies, rising consumer spending post-COVID, and a surge in demand for housing and auto loans. On the other hand, foundational banking metrics like the growth of Current Account Saving Accounts (CASA) tell a sobering story. This is more than just a balance sheet concern; it signals a deeper issue of customer engagement and trust.

Customers are increasingly holding cash or turning to alternative investment vehicles like fintech products. This shift raises an important question for banking leaders: how can banks retain relevance in a landscape where digital-first competitors are capturing customer mindshare and, more importantly, their funds?

The challenge is not limited to deposits. Consumer banking, despite the growth in financing, remains sluggish with segment growth hovering around 5-6%. This is a stark contrast to the growing appetite for personal loans, driven by lifestyle demands and a recovering economy. What’s missing is a cohesive strategy that marries digital transformation with deep customer engagement.

Digital transformation demands more

For years, digital transformation in banking has been synonymous with offering online services – primarily web-based portals for transactions and utility bill payments. While this was revolutionary in its time, the digital age demands more. The shift from internet to mobile banking is underway, evidenced by a 13% annual growth in mobile transactions. However, this shift is not translating into increased app adoption. A mere 10% of a bank’s customer base engaging with its app is a missed opportunity, one that speaks volumes about the current digital experience banks are offering.

Banking apps often suffer from uninspired interfaces, a lack of engaging content, and generic offers that fail to resonate with individual customers. For instance, consider a customer who spends significantly on travel. Instead of offering generic dining discounts, targeted travel-related offers could create a more relevant and engaging user experience. Similarly, nudges like reminders to pay credit card bills before incurring late fees, or velocity-based insights to offer small loans when account balances are low, reflect the potential for meaningful, personalized interactions.

Retention and engagement technologies have the power to transform this narrative. These tools are not about superficial engagement but about building meaningful relationships with customers at every touchpoint. Personalized reminders for upcoming festivals paired with relevant financial products, like promoting lower interest rates on loans during Ramadan, demonstrate how nuanced customer insights can drive engagement and loyalty.

A well-executed retention strategy can boost app subscriptions to nearly 10% annually, expand the digital user base by 20-30%, and even reverse the negative trends in internet banking usage. More critically, it can revitalize CASA, driving upto 5-8% increase in current account deposits – a lifeline for banks aiming to enhance their lending capabilities.

Customer journey mapping is key

The transformation mustn’t stop there. The absence of robust customer journey mapping in many banks today represents another missed opportunity. Understanding how customers interact with banking services, identifying friction points, and proactively addressing them can redefine the customer experience.

For example, consider the journey of a customer opening a secondary account with a bank. The account setup might be efficient, but without ongoing engagement – such as personalized updates on spending trends or tailored financial advice – the relationship risks going dormant. Post-onboarding interaction and targeted engagement are weak – and in some case, missing – links today.

The insurance arm of banking is equally ripe for disruption. Persistency ratios, particularly in auto insurance, hinge on timely and relevant engagement. Connecting with customers well before their Mulkiya renewal ensures brand recall and increases the likelihood of policy renewal with the same provider. Also, real-time service enhancements, like reducing wait times at hospitals or pharmacies through proactive system responses, can significantly improve the customer experience.

This principle applies across other insurance verticals as well – health, life, and critical illness. For expatriates, trust often resides with brands from their home countries. Local insurers have a dual challenge: building trust and educating potential customers. Here too, retention technology plays a pivotal role – analyzing churn patterns and enhancing real-time service delivery can drastically improve renewal rates and customer satisfaction.

Competing with fintechs through agility

In this race towards digital excellence, the aspiration for many traditional banks is clear: to compete with, and even outperform, fintechs. Brands like Halan and ValU are showing encouraging signs in the MENA region and have become benchmarks or sorts because of their retention strategies. However, calling oneself a neobank or launching a fintech arm is not enough. True fintech agility requires organizational transformation – embracing data-driven decision-making, fostering a culture of rapid iteration, and prioritizing customer-centric innovations.

The future of banking is one where customer relationships are not transactional but relational. Banks that invest in retention and engagement technologies will find themselves at the forefront of this evolution.

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The Role of Technology in Elevating Quality and Sustainability

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Gautam Rice

By: Gautam Aggarwal, Managing Director of Gautam Rice

In today’s fast-evolving food and beverage (F&B) sector, the role of technology has moved beyond convenience to become a cornerstone for quality assurance, sustainability and operational efficiency.

Gautam Rice, the UAE’s most-consumed brand of basmati rice and the country’s largest importer of basmati rice – as well as a leading rice distributor across key regional markets – exemplifies how leveraging advanced technologies can elevate traditional practices and meet the shifting demands of modern consumers.

At the heart of our commitment to premium quality is the integration of cutting-edge technology in our rice milling and quality control processes.

One of the pivotal innovations is the use of SORTEX machines. Considered the gold standard in rice milling, SORTEX machines are equipped with advanced cameras and AI-driven systems to meticulously sort and remove impurities, discoloured grains and other unwanted particles.

This is achieved by using precise “air bullets” – ensuring each batch meets stringent quality standards. Additional quality control equipment such as moisture metres, whiteness testers and length graders help guarantee the consistency and integrity of each and every grain.

Quality isn’t just a standard – it’s a promise made possible through the smart integration of technology. This precision-driven approach ensures consumers receive the finest quality rice in every bag, reinforcing our commitment to excellence.

Sustainability through technological integration

Sustainability in the F&B sector is not just about green initiatives; it’s about embracing innovative solutions to reduce environmental footprints.

We’ve embedded sustainability into our core by incorporating solar power in our production facilities in India, significantly cutting down on carbon emissions.

Beyond energy, we’ve reimagined packaging processes with a focus on recyclability. By using recyclable materials and implementing a circular recycling programme, we’re able to collect and repurpose used rice bags for multiple industries, minimising waste and promoting eco-friendly practices.

This commitment to sustainability is a strategic initiative where technology plays a crucial role. With growing global concerns about the environment, we aim to set an example of how technology-driven sustainability can align with operational goals.

For many F&B companies, the challenge lies in finding the right balance between traditional practices and technological advancements. At Gautam Rice, we strike this balance. A key traditional practice we uphold is ageing rice for two years, for example. This ageing process, entirely natural and technology-free, enhances the aroma, flavour and texture of the rice, resulting in a premium product, perfected through time-honoured techniques.

While the ageing process remains deeply rooted in tradition, we also leverage data analytics and advanced sorting technologies to maintain consistency, quality and efficiency in other areas. This dual focus on tradition and technology enables us to preserve our legacy while innovating for the future.

Data analytics drive efficiency

The modern supply chain is a complex network, and in the competitive landscape of the F&B industry, having a robust system for demand forecasting and procurement planning is crucial. We’ve embraced data analytics to gain valuable insights into market trends and consumer behaviour. This data-driven approach enables us to optimise our distribution network and plan procurement in advance, reducing waste and ensuring product availability across markets like the UAE, Oman and KSA.

In a region characterised by dynamic market demands, proactive use of analytics not only drives efficiency but also fosters agility in meeting consumer needs.

Packaging is a vital component in maintaining product integrity, especially during long-distance shipments. We’ve made significant strides in packaging by adopting multi-layer food-grade solutions that provide superior protection against moisture and contamination. All packaging materials are food-controlled and certified for safety.

As with many other business areas, the global F&B sector is clearly undergoing a digital transformation to keep pace with changing consumer expectations and supply chain complexities. Our approach to digital transformation is comprehensive. By using data analytics, remote work setups and digital tools, we maintain seamless communication and operational efficiency. In an industry where adaptability is key, our investment in digital solutions enables us to stay agile and responsive to market dynamics.

The importance of technology in the F&B sector cannot be overstated. For companies like ours, leveraging technology is not just about staying competitive; it’s about elevating quality, ensuring sustainability and meeting the evolving expectations of consumers. By combining traditional practices with advanced technology, Gautam Rice has set a high standard in the industry – highlighting how technology can be harnessed to create a better, more sustainable future for all.

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