CORNELL HOTEL SOCIETY - ARABIAN GULF CHAPTER Q NEWSLETTER VOL 1

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1 Dear fellow CHS alumni, Sana sa'eedah! Happy New Year! We sincerely hope that you had a successful start into 2011, which most of us view as the year of economic recovery after the global financial crisis. However, there are still signs lingering out there that we have not yet reached the valley. Look no further than the UAE the housing and financial markets are still struggling and face many difficult tasks ahead before fully recovering. Positive signs and high interest (tied with controversy) have also come into the region with Qatar s successful bid to host the 2022 FIFA World Cup. Nonetheless, the GCC region is one of the most interesting regions and hotbeds of the world in terms of economic growth and political stability. And to start off the year on the right foot, we are pleased to send out this CHS Arabian Gulf Chapter Newsletter for Q1 2011, which we hope is just the first of a long series to follow. The Newsletter will feature news from CHS worldwide and our Chapter, Regional Industry News, present a different company in each issue (you may be approached by the CHS team to contribute), post a list of Job Openings in the region and upcoming events organized by the Chapter. We look forward to welcoming you to our future events (March 25, 2011; see below) and keeping you posted on all activities by the chapter and its fellow alumni in the region. Best regards, Paul Leimbacher - President Christian Krollig - Vice President CHS News from the Hill - Birtha Assumes Leadership of the Cornell Hotel Society i Ithaca, NY, January 18, 2011 The Cornell School of Hotel Administration (SHA) is pleased to announce that Mark Birtha will serve as president of the Cornell Hotel Society (CHS) for During his 12-month appointment, Birtha will lead the executive board of CHS, the 82-year-old alumni association that represents 12,750 SHA graduates in 56 active chapters worldwide. "I am very proud to have the honor of serving as president of the Cornell Hotel Society," said Birtha. "We have done great things throughout our history to support the SHA and each of our constituents. My focus is to continue to bring value to each of our members." Birtha, who has more than 18 years of experience as a renowned gaming and hospitality executive, is currently president and chief development officer of SOL Casinos and AVA Amphitheater, an enterprise of the Pascua Yaqui Tribe. In this role, he focuses on the strategic vision for the company and has general operations management responsibilities for Casino Del Sol, Casino of the Sun, and the AVA Amphitheater in Southern Arizona. He also oversees the design, construction, and operations of Casino Del Sol's $130M resort development. Prior to this, Birtha was vice president of development with Marriott International. He has also held executive positions with W Las Vegas, Las Vegas Sands Corp., and Mirage Resorts. Since graduating from Cornell in 1994, Birtha has maintained strong ties with the university. He has been a regular lecturer at SHA and is a trustee of the Cornell Hotel Society Foundation. He was also president of the Cornell Alumni Association and Cornell Hotel Society of Nevada for ten years. i Page 1 of 7

2 Birtha has been a featured speaker at multiple gaming, hotel, and real estate development conferences. He is on the board of directors of Internet Marketing, Inc., and serves on the advisory boards of the Global Gaming Expo (G2E) and Global Gaming Business and Casino Connection magazines. He is also managing editor of the Retail, Dining and Entertainment publication, and has written editorial pieces for various publications. In 2006, he was recognized as one of the "Top 40 Under 40" business executives in Las Vegas by In Business Las Vegas Magazine. He is a member of the UNLV Golf Foundation and the Nevada Tourism Alliance, as well as the AHLA, ARA, and MPI in Arizona. He was also the founder and chairman of the Millennium Hospitality Summit. With the CHS executive board, Birtha has outlined a strategic plan that focuses on strengthening the value proposition for the key CHS stakeholders alumni, students, faculty, and administrators. The plan focuses on chapter programming and financial assistance, job placement, internships and mentoring, industry and faculty partnerships, leadership accountability and training, and scholarship fundraising. According to Birtha, "The CHS has donated over $1M during its history to support scholarship funds and the Beck Center at the SHA. It has produced books including Hospitality Leadership and Hospitality Goes Global, and our chapters and alumni host over 125 events annually around the world." - Center for Hospitality Research (CHR) Issues 2010 Annual Report ii CHR has issued its 2010 Annual Report, which chronicles the CHR's multi-faceted efforts to promote and share toplevel research-based knowledge with the hospitality industry. The report, available from CHR at lists the Center's many roundtables, webcasts, and publications, as well as its participation in numerous industry conferences. Regional Industry News - Abu Dhabi's snaked-shape Rocco hotel to open in June iii The Dh600 million (US$163.3m) Rocco Forte hotel in Abu Dhabi, the first under the brand in the Middle East, is expected to finally open in June, after a year-long delay, its management said yesterday. The announcement comes at a time when development of some properties has slowed in the capital. The unusual curved structure of the building and some changes to the original plans meant the property took far longer than anticipated, said Hagop Doghramadjian, the hotel's general manager. "A lot of changes came," he said. "We realised that we could do better in some areas and we added a couple of restaurants and another bar." The 281-room, five-star hotel will now boast seven restaurants and bars, including a South American bar, and a Chinese and Japanese restaurant. "From what I understood, if this building was a very straightforward rectangular tower we could have finished a long time ago," said Mr Doghramadjian. "But when you go into a snaked shape, then there is not a single pipe which goes straight in this building, so you have to do all these extraordinary variations and changes." Launching during the slow summer months would be difficult, he said. "It's not done on purpose. On the trading side it's very slow, but on the internal preparations side it's definitely an advantage to have a slower start." Numerous other hotel openings in Abu Dhabi have been delayed this year. Among properties that should have already opened, or should be close to opening, are the Ritz-Carlton under construction across the water from the Shangri-La, and the Hyatt hotel in the leaning Capital Gate tower. Herve Humler, the president of Ritz-Carlton, said this month that ii Cornell Hotel School; 12 January 2011 iii Jan 26, 2011, Rebecca Bundhun Page 2 of 7

3 the waterfront property, with more than 600 rooms, would take an additional 20 months to complete. The Hyatt is not likely to open until towards the end of the year. Analysts say there may be an effort to slow the developments to allow the market to absorb existing supply. Profitability in the hotel sector in the capital has declined as supply increased last year. While the wider Middle East hotel sector experienced a slight improvement last year, occupancy in Abu Dhabi hotels dropped 13.9 per cent to 58.8 per cent, while average rates were down 31.2 per cent to $198.11, resulting in revenue per available room decreasing 40.7 per cent to $116.52, the market forecast company STR Global said yesterday. But Mr Doghramadjian said rates had previously been too high. "There will be some difficult times where there will be an adjustment to be made because the supply never comes at the same time as the demand," he said. The hotel is being developed by Al Farida Investments, based in Abu Dhabi, and the Tourism Development and Investment Company. "Abu Dhabi is growing in appeal in various ways, whether it's in the conventions market, events, sports, the cultural market," said Magdi Samman, an adviser at Al Farida Investments. "You are going to have fluctuations between supply and demand until it stabilises. It's not going to happen overnight. These hotels are here to stay." The prices at the Rocco Forte property would be in line with Abu Dhabi's top five-star hotels, Mr Doghramadjian said. The hotel is to start recruiting about 400 staff in March. Rocco Forte is expected to be primarily a business hotel, aimed at conferences, meetings and events, he said, adding that 90 per cent of its business was likely to be from the business travel segment. "We're not on the beach, we're not by Ferrari World, and therefore the leisure side will not be our priority." - Significant rise in number of tourists in Middle East iv Arrivals in the Middle East last year increased 14 percent to 60 million, with "almost all" destinations in the region growing by 10 percent or more compared with 2009, figures from the UN World Tourism Organization (UNWTO) indicated. According to the UNWTO, increases were driven by emerging economies. In Asia, international tourist arrivals grew 13 per cent last year compared with 2009 to reach 204 million, a record for the region. In Africa, arrivals grew 6 per cent to 49 million; Europe was up 3 per cent to 471 million and the Americas were up 8 per cent to 151 million, all compared with The UNWTO remained cautious about growth for 2011 stating that a combination of persistent high unemployment and a gradual recovery in employment in 2011 are still too weak to compensate for the jobs lost during the economic crisis. - Starwood adds to Middle East pipeline v Starwood Hotels & Resorts Worldwide, Inc. is strengthening its long established position in the Middle East as one of the leading luxury hotel operators in the region with a portfolio of nearly 50 existing hotels and a pipeline of 25 new hotels. This growth, primarily in the luxury and upper-upscale segments, represents an increase of nearly 50%. By 2015, the Middle East will become the second region, after North America, to operate all nine of Starwood s worldclass brands, further reinforcing the company s commitment to the region. As a key emerging market, the Middle East continues to evolve as an international business and leisure travel destination. According to the UN World Tourism Organization, the number of tourists travelling to the Middle East is expected to reach 136 million by 2020 compared with 54 million two years ago. - New Hotels for Rotana and Shuaa vi Abu Dhabi-based Rotana has announced six new hotels for the UAE in This will bring its portfolio to 33 properties in the country. Selim El Zyr, president and chief executive officer of Rotana, commented, The last few months have seen the hospitality industry in the Middle East and Africa registering positive growth. We see that momentum being sustained as general business conditions improve across the board. Elsewhere in the Middle East, SHUAA Capital Saudi Arabia has signed an agreement (on behalf of SHUAA Saudi Hospitality Fund I) with iv The National, 18 January 2011 v HNN Newswire; 13 January 2011 vi HVS EMEA Hospitality Newsletter Week Ending 21 January 2011 Page 3 of 7

4 Abdulla Fouad Holding Company to develop a Rayhaan by Rotana hotel in Dammam, in the Kingdom of Saudi Arabia. The 240-room hotel is the third project announced by SHUAA Saudi Hospitality Fund I in Saudi Arabia to be managed by Rotana. The others are a five-star Rayhaan hotel and a four-star budget hotel, both in Jeddah. - Sharjah s first Ramada Hotel CHI Hotels & Resorts has recently opened the first Ramada-branded property in the emirate of Sharjah: the 250-suite Ramada Sharjah. Tony Potter, CHI Hotels & Resorts chief executive officer and managing director, commented, The opening of the Ramada Sharjah is a red-letter day for CHI as it not only marks our company s first hotel operation in the Emirate [sic], but also our introduction for the first time of the popular and highly-rated Ramada brand to the wonderful city of Sharjah. - A Renovation of the Radisson Blu in Koweit It was announced this week that the Radisson Blu Hotel, Kuwait has closed for a year-long renovation. The 200- room hotel, which opened in 1980 as Rezidor Hotel Group s first property outside of Scandinavia, is expected to reopen in 2012 with 194 rooms. Throughout the refurbishment, the hotel s restaurants, meeting facilities and health club will remain open. - Hotel construction in the Arabian Gulf continuously on course for growth. vii Dubai hosts despite all those financial troubles in the recent past the highest building on earth. The 828 meters tall Burj Khalifa is a symbol for sustained activities in the Middle East hotel investment and real estate sector. The region also accommodates one of the most exclusive hotels in the world the Armani Hotel with its 160 luxurious suites. The hotel project development activities in and around the Arabian Gulf remain on a high level and are most likely to continue with the 2022 FIFA Football World Cup in Qatar already in sight. There are currently 468 hotel projects under construction or development. In the past two years more than 110 hotel projects in the first class and luxurious category have opened their doors. A global hotel project survey carried out by tophotelprojects.com, the online database for worldwide first-class and luxury hotel development and construction projects, has revealed this continuous course for growth. The global crisis has hit the region less hard then initially expected. The momentum of hotel construction in the Middle East continues on a high level. As a consequence, it provides hotel suppliers and business partners with numerous appropriate business opportunities. In 2010 more than 120 new hotels with over 43,000 rooms will have been inaugurated. In hotel openings with a total of 84,100 rooms are scheduled to be opened. A total of 106 new hotel developments (29,600 rooms) are due in 2012 and 2013 currently has 61 projects (20,700 rooms) in the pipeline. One of the largest hotel construction projects in Middle East - Swissotel Makkah, Saudi Arabia - with over 1,500 guest rooms - Opening scheduled in early vii Source : tophotelprojects.com; Saturday, 22nd January 2011 Page 4 of 7

5 From the originally scheduled hotel development projects a small 5% has been abandoned. And only 6% were most probably due to obstacles in financial funding postponed. A small selection of top hotel projects in the Middle East is: Swissôtel Mekka, Saudi-Arabia Category: luxury / 1,571 rooms / projected opening: early 2011 Banyan Tree Al Sahab Resort, Ras Al Khaimah, U.A.E. luxury / 1,500 / November 2011 MGM Grand Hotel Abu Dhabi, U.A.E. luxury / / early 2012 Mövenpick Oceana Resort & Spa Dubai, U.A.E. first class / 986 / March 2011 Hilton Hotel & Residence Riad, Saudi-Arabia first class / 830 / October 2013 Please share your Regional Industry News with the chapter and us at chsarabiangulf@gmail.com. This Quarter s Company Feature OMRAN, Tourism Development Company, Oman viii WHO is Omran Omran is mandated by the Government of Oman to deliver major projects and manage tourism assets and Investments. This is in line with the Government s vision of positioning tourism as a major economic driver of the future and generator of employment. Omran s growing project portfolio, with a value of $10bln, includes some of the largest developments in Oman such as the Oman Convention & Exhibition Centre. Having delivered the 2 nd Asian Beach Games facilities in record time and with a impressive HSE record, it is now focusing on the delivery of its numerous projects spanning the country. Omran is also a prominent asset manager owner and of tourism assets in Oman including Al-Bustan Palace Hotel and Intercontinental Muscat. Regional & International investors have chosen Omran as their partner in developing mega mixed used projects and master planned communities in addition to real estate developments and niche projects with over 20 joint venture companies under various stages of development. In developing these projects, sustainable development is of paramount importance with the company management systems having been certified to ISO & Omran also believes firmly that local communities and its stakeholders have to be the ultimate beneficiaries of its developments and activities - WHAT does it do? Omran invests in, develops and manages tourism-related projects across the Sultanate. Those projects include hotels, resorts, destinations and venues. o Developments Omran is the master-planner and developer for a range of tourism-related projects, including the site for the Second Asian Beach Games Muscat 2010, the Oman Convention and Exhibition Centre, and hotel and resort developments throughout Oman. viii Page 5 of 7

6 o o Investments Omran seeks and initiates a wide range of joint venture projects, acting as the catalyst for investment in tourism developments by national and international partners. More than 20 different joint venture projects are at different stages of development throughout the Sultanate. Hospitality Management Omran is responsible for the management of a large portfolio of hotels. The company now has nine properties under various levels of supervision and management. Omran aims to bring consistent quality, service and management levels to all of the properties, as well as committing investments to ensure that the country s hotel stocks match up to international standards. - Projects in the pipeline o Omran breaks ground on Oman Convention & Exhibition Centre project and starts construction Click: o Omran Completes Handover of Asian Beach Games Site Click: Job Openings Please share your Job Openings with the chapter and us at chsarabiangulf@gmail.com. For Job Inquiries, contact: Paul Leimbacher OMRAN Tourism Development & Investment: paul.leimbacher@omran.om Christian Krollig Viceroy Hotel Group: christian.krollig@viceroyhotelgroup.com Page 6 of 7

7 Alumni Events CHS AG is organizing its first event of the year and we look forward to seeing as many of you there. This will be a great opportunity to meet for the first time or re-connect during a cheerful evening and in a relaxed venue. Look out for a separate with all the details for the event. Inaugural Alumni Cocktail & Dinner Reception Friday 25 th March 2011, from 06:00 PM onwards TBC To socialize and network with new and old contacts as well as introduce you to the new CHS GCC Chapter and its leadership team! AED - TBC Paul and Christian. CHS Arabian Gulf Chapter (chsarabiangulf@gmail.com) Meanwhile, please confirm by Friday 11 th March whether you will be attending so we can make the necessary arrangements with the hosting company. If you have any questions, comments, feedback, inquiries and/or would like to contribute to the Quarterly Newsletter, please do not hesitate to contact us at chsarabiangulf@gmail.com. Page 7 of 7