He is one of the region’s most dynamic hoteliers, a respected entrepreneur with a reputation for making shrewd, swift and ultimately profitable business decisions.
At a time when luxury hotels were busy slashing costs and letting go of staff, Monther Darwish challenged his team at Palazzo Versace to innovate faster, better and more effectively than ever before.
From being the first regional property to create marketing campaigns showcasing their COVID-19 safety measures, to redoubling efforts to grow occupancy at a time when industry forecasts were dire, his ability to see opportunity in the toughest market in living memory is evident in the enviable bottom line at Palazzo Versace.
One of the few hotels in the UAE to be privately owned and run, Darwish has literally built the property from the ground up, securing both the prime waterfront land and overseeing the highly complex build.
His portfolio is not limited to the prime five-star property that dominates the Jaddaf portion of the Dubai Creek however, and he presides over several enterprises including Enshaa Psc, a projects development and hospitality service provider, Palazzo Hospitality, as well as holding various stakes in interior design, real estate and general trading entities.
He has been recognised for his successes with numerous accolades, including ‘Young Business Leader of the Year’ in 2007, awarded by Sheikh Mohammed bin Rashid Al Maktoum.
“Market consumption might not be at the same level as last year, but we must prepare our businesses for life after COVID-19,” he told Hotelier Middle East recently, noting that he was one of the first to identify the untapped potential of the local market – i.e residents – and to attract them to the property in droves while global tourism was at a standstill.
“Palazzo Versace has been a market-maker throughout this period of time and a strong example of how it is possible to bring occupancy from 5 percent to 90 percent even during a pandemic.”
The Palazzo Versace Hotel in Dubai cost $626 million to build
In this exclusive interview, the Emirati, whose career spans over two decades, tells CEO Middle East what it is like to be a leader during one of the most challenging periods in modern times.
As Palazzo Versace celebrates its 4th year, it must be a poignant anniversary considering how badly the hospitality industry has been hit during 2020. What are your thoughts as we continue to adjust to a new reality?
Despite these difficult times, when most hospitality businesses were hit, at Palazzo Versace Dubai we were lucky to have had a more positive experience. Indeed, we could have had better numbers and higher revenues if the travel restrictions had not been there, but we have achieved a lot given the current situation.
This is the ‘new normal’ that everyone speaks of, and there was no other option but to adapt to the situation. Our strategy was to find ways to increase cash flow and we achieved this by creating a healthy local demand, refocusing on the staycation segment, small weddings, and food and beverage. As a brand, staying relevant in normal times is difficult enough. Staying relevant in a pandemic is a challenge!
Palazzo Versace Dubai is a signature property – what sets it apart and makes it so special?
Blending fashion and hospitality is at the core of everything we do at Palazzo Versace Dubai. The hotel represents the lifestyle of the fashion brand – it’s bold, luxurious, classy and makes a statement. I can continue with a lot of attributes — palatial, opulent, over-the-top…
As a leader, what is important in times of crisis?
During a crisis, everybody looks to a leader for the next step or for reassurance. If a leader projects fear and unease, that unease transmits to everyone else, like a contagious disease. Most of the times, a crisis is unpredictable, which means naturally that we have no time to prepare. On the books, the business looked great back in March.
We had a promising second quarter of the year, with the highest projections for occupancy and banquets. And then a virus went around the world and without warning, the world was in lockdown.
I felt that the most efficient thing to do was to stay positive and find solutions. Managing the team with honesty was crucially important. They all knew there were tough times ahead and prepared for them. ‘Push’ was the most frequently used word in our briefings. We did a lot of pushing!
Palazzo Versace Dubai is a Neoclassical masterpiece with subtle traces of Arabian architecture
We invested extensively in enhancing our sanitation protocols and developed contactless experiences such as QR code menus for the restaurants and keyless check-in process. We created demand by staying relevant, by talking more to our local clients. The team always had something to work on and our occupancy levels went up. We ‘shouted’ on all our channels that we are a safe hotel, and that we had so much to offer visitors. Engaging our guests made them feel confident to leave their homes and have a staycation or shorter visit to our property.
What qualities have you had to draw on in yourself and in your team?
We have become more creative in our approach, be it with the end consumer or our partners. Flexibility was another key point. This is how we launched the e-commerce arm of our business – our e-gift platform – which gives people the opportunity to purchase an experience at Palazzo Versace Dubai and use it at their convenience within a year. Being able to adapt and to innovate are the biggest qualities we drew on and they have quickly become the ‘new normal’ within our operations.
What’s been the most challenging thing to achieve?
The most challenging aspect was ensuring constant occupancy levels weekdays to weekends. Finding new revenue streams was challenging, as travel demand from partners abroad is still very weak.
Digital technology has had to respond swiftly to challenges – how have you harnessed it during this time?
We had to adapt and develop contactless experiences without losing our high-end, personalised service. Technology came in handy here. Starting from the sanitation gates, to the equipment our housekeeping use to deep-clean the guest rooms – everything was considered to reassure our gusts that our hotel is a safe place.
Remote working is one trend that was growing before Coronavirus and has now become prevalent. Along with this, are there other big changes in the business landscape that you have observed, and how have your entities been affected?
Hospitality is such a connecting industry, you cannot “work from home”. Service is at the base of our business, which means we have to be present. Present but with less interaction, that’s true.
The Premier Room of the Palazzo Versace Dubai exudes luxury in every detail
Within some of the most challenged industries, we have witnessed some of the swiftest innovations (for example the recently awarded UAE-start-up, Hotel Data Cloud). Have you harnessed any new technology such as this and how do you keep abreast of the newest changes in such a swiftly changing environment?
The online user experience is extremely important for us at Palazzo Versace Dubai and we always wanted to improve and enhance the e-commerce side of the business. This is how we launched the e-gift platform. With the higher interest in online shopping, no doubt that our guests love to gift something so personalised and yet so easy to purchase.
How do you speak to and find new customers?
What we have done in the last eight months or so really put us on the map. The marketing strategy was “be loud and be everywhere”. Beside any marketing activity, word of mouth worked well for us.
People know we maintain a consistent, excellent level of service, hence our returning guest rate is very high. Hosting a lot of celebrities in the past month helped us a lot too. Palazzo Versace is also something of a stage for Dubai. Those who want to be seen and make a statement come and stay here. At the same time, we are humble, but very aware of the product we have in our hands. It is one of the best hotels in Dubai.
The Spa at the Palazzo Versace Dubai has seven treatment rooms
How do you promote excellence?
I always tell the team that each of them is a brand ambassador of the property. If we maintain a united front, we all succeed and grow. Leading by example is important when it comes to any culture.
How do you encourage entrepreneurial mind-set in your organisation?
I do not believe in micromanagement, but in empowering people to take ownership of their role. Getting them motivated to go beyond their job is part of my job. Having a successful business means we have to take care of it at all levels. I encourage creativity in all areas and this “out of the box” mentality sets us apart.
What are you most passionate about in hospitality, and how do you grow and establish that within your company?
I love being challenged when it comes to business. The hospitality sector – especially in this country – is very competitive, with so many properties opening in a very short time. What I’m most passionate about is the work behind staying relevant as a product in this industry – reinventing yourself every day and staying first in the mind of the customer.