Success Story In the Midst Of Pandemic

1. May 2020 was expected to be one of the lowest performing months for the hospitality industry
worldwide, with most tourism markets remaining closed and the fear of contracting the virus still
very much in people’s minds.
The UAE market is no exception. The latest data released by STR shows a year-on-year drop in occupancy
of 52 points in April and the Ras Al Khaimah market followed a similar trend, recording a 55-point drop.
While data for May has not yet been released, we expect a similar decline, with a modest improvement
in the second half of the month during the Eid holidays.
TAKING ADVANTAGE OF THE NEW
OPERATIONAL REALITY OF HOTELS
IN THE MIDST OF THE COVID-19
PANDEMIC -
THE SUCCESS STORY OF THE RITZ
CARLTON AL WADI, RAS AL KHAIMAH

2. But against all odds, one hotel has defied this downward trend, not only beating its budget targets but
also recording an increase in performance on the same period last year. The Ritz Carlton Al Wadi, Ras
Al Khaimah capitalized on its positioning as a luxury desert sanctuary, making its promises of privacy
and seclusion synonymous with safety and isolation. The high performance of the hotel was further
supported by the hotel being a trend setter in implementing high standards of cleaning protocols and
social distancing procedures to ensure guests’ safety.
Key achievements:
May 2020 performance: occupancy was 58% above last year and 38% above budget. RevPAR is 67%
above 2019.
YTD March1
RGI grew by 34% versus hotel’s competitive set.
Asset valuation performed in April 2020 maintained their 2018 levels.
These achievements were a result of strategic initiatives devised by the Ritz Carlton team and the hotel’s
asset manager, Stirling Hospitality Advisors, including:
1
Latest data available
Occupancy ADR RevPAR
RITZ CARLTON AL WADI - MAY-20 Y-o-Y PERFORMANCE GROWTH
58%
9%
67%
0%
10%
20%
30%
40%
50%
60%
70%
LY
LEADER IN SETTING UP COVID-19 OPERATIONAL BEST
PRACTICES
The Ritz Carlton team, supported by Stirling, immediately implemented the strict
guidelines established by the Ras Al Khaimah Tourism Development Authority as
well as the cleaning, disinfection and operational protocols developed by Marriott.
The hotel is consistently working on improving its operational processes to ensure
its guests’ safety will be one of the first to achieve the “COVID-free” certification
from the Ras Al Khaimah government.

3. stirlinghospitality.com
The key operational changes are:
Room cleaning: all staff are obliged to wear face masks and gloves. After cleaning
a villa, the equipment is either changed or discarded before proceeding to the
next villa.
Restaurants: only a third of the tables are being utilized to ensure social distancing
(>2 meters) with a maximum of 4 guests per table. The hotel is only offering à
la carte service. All tables and chairs are sanitized before the next guests are
seated and all menus have been replaced with QR codes accessible through
the guests’ smart phones.
Sanitization: the operator and the owner are currently investigating the efficacy
of a pass-through sanitizing gate for employees and guests.
CREATIVE PACKAGES TO BOOST STAYCATION REVENUE
With no international visitors, the hotel had to rely entirely on domestic business.
Since the beginning of the COVID pandemic, the hotel has focused its messaging
on communicating that it is a safe and secure environment where guests are
able to continue to enjoy the experiences offered at the resort.
Example of successful packages include:
E-Learning: with high-speed reliable internet access, this package offers families
the guarantee that kids will be able to continue to participate in their home-
schooling journey while parents have privacy to attend online meetings, all in
the comfort of their villas.
Desert Bliss: the ultimate full-board package, with all meals and services delivered
in the safety of the villa.
VALUE-ENHANCING INVESTMENTS AND INITIATIVES
Early March 2020, when it became clear that the impact of COVID-19 on operations
would be significant, the operator and the owner decided to prioritize value-add
CAPEX projects.
Example of these initiatives include:
Renovation works within the public areas to improve guest experience.
Upgrade of the audio-visual equipment to support remote meetings.
Investment in digital solutions to improve efficiency throughout the resort.
ABOUT STIRLING HOSPITALITY ADVISORS
Stirling Hospitality Advisors is a specialist hotel consultant and asset manager based in the UAE. As well
as owning our own hotels, we work for multiple hotel and resort owning clients around the GCC and
welcome the opportunity to assist our partners to implement new strategies to optimize performance
in the midst of the COVID-19 pandemic.
Contact us:
Donald Bremner
Managing Director
E db@stirlinghospitality.com
Silvia Haggenmacher
Director Business Development
E sh@stirlinghospitality.com