Steigenberger Hotel Group

InterCity Hotels

By: Sadie Ogan, Heather Songer, and Abdullah Rauf

International Marketing

Fall 2008
 Table of Contents

Executive Summary………………………………………………3
Company Profile………………………………………………….4
Country Analysis: Germany……………………………………...4-5
Country Analysis: United Arab Emirates………………………...5-10
Market Analysis…………………………………………………..11-14
Mode of Entry…………………………………………………….14-15
Strategic Marketing Plan…………………………………………15-21
Marketing Objectives
Product
Price
Promotion
Place
Presentation
People
Processes
Financial Expectations……………………………………………21-22
Timeline…………………………………………………………..22
References………………………………………………………...23

2
 Executive Summary
In anticipation of exponential growth in the United Arab Emirates’ hotel industry,
we propose to open an InterCity Hotel, a division of Steigenberger Hotel Group, in
Dubai’s business district. This four-star hotel will be targeted to small business travelers
throughout the world who are looking for “affordable luxury” in this wealthy city. A
competitive market analysis indicates the need for an inexpensive hotel in the business
district.
Upon comparing the cultures of the home country, Germany, and the host
country, UAE, there is a need for cultural understanding and compromise. The two
cultures have different approaches to business and daily life which should be taken into
organizational consideration.
The mode of entry to gain access into Dubai’s hotel industry will be through a
management services contract. Using this method, we will search for a local investor to
build a hotel to our specifications. The investor will own the hotel and in return for
his/her capital investment, the owner will be provided with support services. We will
negotiate payment terms via the RevPAR rate for the area. This option will attribute us
with the least amount of risk because we are not financially responsible for the building
or the land.
The hotel will have all of the amenities deemed to be important to business
travelers and the rates will provide a competitive advantage against the competition. The
marketing objectives include: (1) expose the hotel to small business travelers around the
world, (2) create brand awareness, (3) draw new customers, (4) build brand loyalty
through relationships and (5) position the hotel as “affordable luxury.” We will promote
the hotel through various mediums including electronic and print communications. We
will use our prime location to attract guests and then use our superb customer service to
ensure customer retention.
Within the first five years, the hotel will evaluate its market share and its financial
status. This evaluation will assist in confirming the viability of the contract and will also
aid in the consideration of opening a second hotel.

3
 Company Profile
The Steigenberger name has stood for top-class European hotels, incomparable

hospitality and exquisite service for over 75 years. The Steigenberger Hotel Group was

established in Germany on April 1, 1930 by Albert Steigenberger. All hotels of the

Steigenberger Group, both traditional and modern, fulfill the high expectations of their

guests. The Steigenberger Group consists of two hotel brands: (1) Steigenberger Hotels

and Resorts and (2) InterCity Hotels. While Steigenberger Hotels and Resorts are

targeted toward upscale guests looking for a luxury vacation, InterCity Hotels are

targeted towards travelers looking for an urban setting. While it has been many years

since the hotel group was established, the Steigenberger family members are still the

largest shareholders of the company. Our business proposal is to build a four-star hotel

for small business travelers in the United Arab Emirates under the “Steigenberger Hotel

Group” chain, “InterCity Hotels.”

Country Analysis: Germany

In order to analyze how our company will be accepted in the United Arab

Emirates, we need to take a look at the German culture. The first cultural measurements

to use are Hofstede’s indices. The Germans have a high-cultural context, which means

that there are many dimensions to their communications. For example, it’s not just what

one says that is important, but it is also how one says it that is important. Therefore, when

communicating with Germans, it is important to focus on the message and tone, as well

as non-verbal cues. The Germans are also highly individualistic, with a rating of 67. This

means that the people are motivated by individual needs and goals rather than working

4
towards group goals. Germany’s political system is a Federal Republic and the official

language is German. The population is 82.4 million with a Gross Domestic Product of

$3.32 trillion annually. Germany is part of the European Union and therefore uses the

Euro for its currency. As a country within the European Union, Germany must follow any

trade restrictions imposed by the EU.

Country Analysis: United Arab Emirates

Dubai is a fastest growing profitable city on the northeastern part of United Arab

Emirates (UAE) (MSN Encarta: Dubai). This growing success was merely due to the

government establishing goals to become a city of gold and achieving the unthinkable by

engineering man made islands, luxury towering hotels, and an indoor ski in the middle of

the desert. Dubai has become a major port and a wealthy commercial town that has

attracted many foreign investors (MSN Encarta: Dubai). Oil was one of the main

contributing factors for the rapid growth and transformation of this golden city. This city

has established a name for themselves for a place for not only doing business, but also a

place to come to for leisure time.

Government and Politics

In order to be successful in terms of international business, organizations must

create a positive attitude in understanding international government and politics. In

particular, Dubai is transforming into a city of opportunities. Therefore, investors should

take the initiative to understand the political and governmental environment of the United

Arab Emirates. To begin this, United Arab Emirates constitution consists of federal

legislative, executive, and judicial institution (Mattar pg. 2271). The political system is a

mix of presidential and parliament features (Mattar pg. 2271). However, this has not

5
prevented cities such as Dubai from acting alone. For example, Dubai has pursued its

own oil policy with other foreign countries. Even though Dubai is in control of it own

political and governmental affairs, United Arab Emirates still oversees it. In addition,

United Arab Emirates is part of many international organizations, such as, the United

Nation, World Trade Organization, and Organization of the Petroleum Exporting

Countries (Turner pg. 1259). Dubai’s growing success was primarily due to having a

political and governmental relationship with foreign countries and organizations.

Foreign Relations

United Arab Emirates has its reputation of dealing and maintaining a friendly

relationship with foreign countries. The government of Dubai has recognized that the

only way this city can grow and become prosperous is by understanding and maintaining

affiliation with foreign states. To bring this into clear perspective, United Arab Emirates

has created a positive relationship with the United States despite of all the conflicts in the

Middle East. In addition, Dubai has established a free trade zone within its state, allowing

many foreign countries to set up subsidiary businesses. One of the many things that

attract foreign investors to Dubai is a list of many, which includes its culture.

Society (Culture)

United Arab Emirate’s culture is deeply rooted in Islam. Therefore, in order to

understand UAE and the people living in it, one must comprehend the religion of Islam.

This religion has strengthened and inspired the social structure of UAE. Dubai is an

Islamic City that legally practices the Sharia Law. Individuals living in this city have

cultural attires that have it connection to Islam. For example, men and women wear

6
outfits that cover their head and body, because in Islamic teaching, covering ones body

not only prevents others from viewing the bodily parts but it is also gives self-respect for

the body. Among the many teaching and cultural traditions, the people of the United Arab

Emirate are known for their elegant clothing, jewelry, simplicity, and elegance. In this

society quality is highly valued. As seen through Dubai’s businesses and it people.

Throughout history, Arabs have maintained a great love for horses (Government of

Dubai). Therefore, this explains the rapid growth of horse racing in the city. The United

Arab Emirate has it shares of elegance, but foreign investors cannot forget the culture and

traditions that are deeply rooted in the heart of the people of UAE. In order for foreign

investors to get a good understanding of UAE’s culture, they must understand the history

that makes up the culture of the United Arab Emirate’s.

History

History has shown that the United Arab Emirate has been doing business going

back four thousand years ago (Government of Dubai). Such business included fishing,

trading of goods and services, and maintaining foreign relations with other tribes. History

tells us that the city was not made up of individuals; instead it consisted mostly of tribes.

If a tribe wanted to do business with other tribes, then individuals of that tribe must show

the notion of trust and respect. UAE’s history has shown us the advancement in the

economy; however, the present state of the economy has rapidly grown ever since.

Stage of Economic Development

The UAE is an open economy with a high per capita income and a sizable annual

trade surplus (“World Fact Book”, 2007). The discovery of the oil thirty years ago in the

7
UAE transformed the Emirates from an impoverished region into a modern state with a

high standard of living. In 2007, 40% of the GDP was based on oil and gas output. The

Emirates are highly dependent on oil. The oil production is around 2.8 billion barrels per

day and they have 98.1 barrels on reserves (“Emirates”, 2005). Natural gas is also a huge

part of the economy for the UAE. Natural gas production was at 65 billion cubic meters

in 2005 with 6 trillion cubic meters on reserve (“Emirates”, 2005).

Recently, the government has been working on a project that will increase

spending on job creation. A strategic plan has been established in addition, in order to

diversify and create more opportunities through education and increased private sector

employment. The labor force is currently at 3.065 million, with 78% of that in the

services sector (“World Fact Book”, 2007). The UAE has also created Free Trade Zones

that ensures 100% foreign ownership and zero taxes (“World Fact Book”, 2007). The

main industries of the UAE consist of oil and gas, aluminum, petrochemicals,

construction materials, commercial ship repair, cement, fertilizers, pharmaceuticals, and

tourism.

The GDP purchasing power parity was at $164.4 billion in 2007 and the GDP

official exchange rate was $192.6 billion. The GDP per capita was at $37,000 with the

industry sector taking up roughly 60% (“World Fact Book”, 2007). Exports for the UAE

were around 424 billion in 2005 and imports were around 261 billion. Overall, it can be

seen that the economy in the UAE is emerging at a fast rate, especially with the discovery

of oil. The Emirates are growing and will only continue to grow as the years go on.

8
Technology

The UAE has a well-developed and technologically advanced telecommunications

infrastructure. There is a high mobile telephone and Internet penetration (“World Stats”,

2007). Only 21.3% of the population in the Middle East uses the Internet. There is a huge

opportunity to grow when it comes to technology use in the Middle East and the UAE.

The graph below shows the Middle East compared to the rest of the world concerning

Internet usage.

In 2007, the population in the UAE was 4,444,011. The Internet usage in 2000 was only

735,000, but by 2007, the Internet usage has increased to 1,708,500 users. The user

growth from 2000 to 2007 was at 132% (“World Stats”, 2007). At the beginning of 2008,

there were a little over 6,000 Internet hosts in the UAE and 2.3 million users. In addition

to the Internet, 1.4 million people were using telephone mainlines, while 7.6 million were

using mobile telephones (“World Fact Book”, 2008).

The technology in the Middle East and more specifically the UAE is growing.

There is still a big space for growth, but it seems that the culture is picking up on the

9
technology trend. The Internet and telephone usage is increasing at heavy rates and looks

only to continue to grow.

Education

The UAE provides a full-fledged education system for boys and girls. It goes

from primary school all the way to university level. The education is free through

government schools, colleges, and universities. In 2007, there was half a million in

school or college (“Education”, 2007). The government also offers higher education

abroad at their expense, providing the opportunity to study abroad while learning about

other cultures. The literacy in the UAE can be compared to the literacy in developed

countries. The total population, ages fifteen and older that can read and write is at 80% as

of 2003. That is an extremely high number of literate people. Broken down, males are

76% literate and females are at 81% (“World Fact Book”, 2007).

The government has recently created a program in order to eradicate literacy

among the older members of society. They have also created a focus on computer literacy

and the English language in their schools. To do this, the UAE government has

established a goal of have one computer for every ten students at the Kindergarten level,

one computer for ever five students at the primary level, one computer for ever two

students and the preparatory level, and one computer for every student at the secondary

level (“Education”, 2007). The goal of the UAE is to ensure that their graduates are

properly equipped to enter the workforce and assist in the country’s development. It can

be very well seen that the members of the UAE society are very well educated, with plans

to only increase the education in the future.

10
 Competitive Market Analysis

The Service

Dubai is a fastest growing profitable city on the northeastern part of United Arab

Emirates (UAE) (MSN Encarta: Dubai). Dubai has achieved the unthinkable by

engineering man made islands, luxury towering hotels, and an indoor ski in the middle of

the desert. Dubai has become a major port and a wealthy commercial town that has

attracted many foreign investors (MSN Encarta: Dubai). One of the foreign investors that

decided to break the market in Dubai is InterCity Hotels, in affiliation of Steigenberger

Hotels. The medium-range concept of InterCity Hotels, has led to greater transparency

and market orientation in Dubai. InterCity Hotels has chosen to do business in Dubai

because, of its growing prosperities and the demand for less luxury hotels has helped

InterCity Hotels identify this as an opportunity. Dubai’s population mostly consists of

immigrates and business travelers. Therefore, InterCity Hotels has identified individuals

need to stay in a less-expensive temporary place. InterCity Hotels’ current strategy

includes an exclusive orientation towards serving travelers with luxury rooms at an

affordable price.

The Market

Even though the above strategies are successful, InterCity faces some marketing

challenges. The United Arab Eremites has faced challenges that caused many to predict

that the new federation would fail. There were border disputes with Saudi Arabia and

Oman, rivalries among the emirates were strong, and Iran (UAE, MSN). These deputes

between the neighboring countries can pose a challenge and a threat for foreign investors

11
such as InterCity Hotels. In addition, InterCity Hotels in Dubai must keep in mind the

risk of terrorism occurring in the premises of the hotels. This unfortunate act has been

lately witnessed as Mumbai major hotels (Taj Mahal and Oberoi) were victims of

terrorism that took the lives of hundreds of innocent victims. Therefore, we have to keep

in mind that heavy security that must be stabled in the premises of the InterCity Hotels to

protect our customers from violent acts. In domestic affairs, the UAE became involved in

a major financial scandal in 1991, when international regulators closed down worldwide

operations of the Bank of Credit and Commerce International (BCCI) on fraud and

forgery charges (UAE, MSN). This can also pose a challenge, if this hotel group decides

to take out a loan to fulfill a financial need.

Consumer spending and economic behavior will also create a challenge for

InterCity Hotels. In today’s economy, it is very important for individuals to save as much

as they could. Therefore, such acts like leisure traveling are not considered important as

putting food on the table is. Individual attitude towards money has changed due to the

downturn. Thus resulting to people being very cautious on how and where they spend

their income. In such times it has caused many business owners to cut down in business

trips. The world wide economic crisis has influenced traveler’s behavior and feeling

whether they will purchase additional good or services.

Competitive Offering

To narrow down the market, we are focusing on the business district in Dubai,

also known as “Business Bay.” In this area there are several main hotels that

accommodate the average business person and others simply on vacation. Most of the

hotels in the area are hotels based in Dubai and only a couple come from foreign markets;

12
leaving the market wide open for foreign investment. All of the hotels in the area are

located very close to important landmarks for the business person. The focal point of the

Business Bay being the World Trade Center, most of the hotels in the district are in

walking distance of the building.

While a majority of the competing hotels are on the higher end of the price range,

there are a couple hotels with lower to middle price ranges present. We compared various

hotel prices for a three night trip in the middle of the week, assuming that this would be

an ideal business travel example. The more expensive hotels ranged from $1,000 to over

$2,000 for a three night stay, while the other hotels were around $750 - $900 for the same

amount of time. Compared with price along, the lower priced hotels will be the main

competition for an InterCity Hotels in Dubai, considering a price of $400 for the same

type of stay and accommodation.

Most of the hotels in the area have many amenities including a restaurant and bar,

with access to fitness facilities and spas. This is important to take into consideration when

thinking about the business people bringing along their families are significant others

along for the trip. A majority of the hotels also provide babysitters and child activities.

The hotels also provide meeting/banquet facilities and business centers. InterCity Hotels

will need to make certain that their hotel includes these services as well, in order to keep

up with the competition. Another consideration will be free Wi-Fi. In Germany, the

InterCity Hotels offers free wireless Internet. It will be essential to continue this in Dubai

as well, where most hotels charge for Internet access. Free Wi-Fi could be seen as a

competitive advantage, especially for the person on a business trip.

13
 The main competition for InterCity Hotels will be the Holiday Inn Express (U.S.),

Qamardeen Hotel (Dubai), and Al Manzil Hotel (Dubai). These three hotels offer close to

the same services and at around the same price range. They are all located in the heart of

the business district. InterCity Hotels has the capability of standing out by being the new

entrant into the area and as a foreign investor. It will be crucial to recognize the

differences and similarities and play of each in order to stand out to the hotel customers.

Mode of Entry
InterCity Hotels will utilize a Management Services Contract (MSC) in order to

enter into the hospitality market in Dubai, UAE. In order to implement our MSC, we will

search for an investor who would be willing to build and operate a hotel in Dubai. This

local investor will use their own capital to construct the hotel according to our

specifications. We want to be sure to provide pertinent information so that the building is

consistent with our brand. By contributing capital and constructing the hotel, the owner

will be provided with brand equity, marketing services, and management personnel. The

most important part of our contract is to negotiate payment terms so that be can be

reimbursed for our investment. In the hotel industry, payment is typically determined by

the revenue per available room (RevPAR). To determine the appropriate RevPAR

amount, the room rate is multiplied by the average occupancy rate of the surrounding

area. According to a November 2008 article in Arabian Business, the average occupancy

rate for hotels in Dubai is 80-90%. Since our hotel is looking to build a strong

relationship with the owner, we have decided to offer a RevPAR rate of 80%. This means

that for a standard room stay ($245), we would receive $196 (80%). We chose to use an

14
MSC because there is less associated risk. If something happens to the building or the

land, we are not financially responsible.

Strategic Marketing Plan

The primary marketing objectives for the InterCity Hotels location in Dubai

consist of exposing ourselves to small business travelers around the world, create brand

awareness, attract new customers, build brand loyalty through relationships, and position

ourselves as “affordable luxury.”. Our target market is small businesses and their

employees, so we want to ensure that those are the people that are getting the message

and coming to World Hotels for accommodations. An important goal always is to grow

the brand and to create brand awareness. Creating brand awareness is essential when

developing a new product or service. Our goal is to get the name out quickly and

efficiently so that small businesses everywhere will be looking to our InterCity Hotels

location in Dubai for their accommodation needs.

Product

We hope to differentiate our product/service from the surrounding competition.

There are two parts to any service: (1) core service and (2) supplemental services. The

core service is the main business function of the company and what the company does

best. Our core service, as a hotel, is to offer hotel rooms. Our rooms will include tub-

showers, makeup vanities, safes, desks, TVs, and various bed sizes/combinations. We

feel that these are important items to have in hotel rooms that are targeted towards guests

who are on business trips. We will also offer an array of supplemental services in order to

enhance our hotel rooms and make the stay even more enjoyable. The services will

include: a pool, fitness center, continental breakfast, Wi-Fi, bar, restaurant, conference

15
rooms, concierge, security, and online/telephone customer service. All of these services

will add value to our proposition and will be attractive for our guests.

Price

It is important to offer a wide array of room options so that we meet the individual

needs of our guests. Below is a list of the rates InterCity Hotels, Dubai will offer:

 Superior Room: $245

 Deluxe Suite: $272
 Club Superior Room: $327
 Club Deluxe Suite: $354
 Executive Suite: $599
 Club Executive Suite: $654
 Executive Deluxe Suite: $681
 Club Executive Deluxe Suite: $735

In addition to the above rates, we will also offer a discount of ten percent for frequent

visitors and government guests. We believe it is important to develop business

relationships and this discounted rate should convey that to our guests. These rates are

competitive based on our local competition and will attract customers.

Promotion

To advertise, we are focusing on mainly on-line and print mediums. The Internet

is the fastest growing media for advertising and can be accessed by millions of people

around the world. Again, with our target audience being small businesses and their

employees, the use of Internet would be perfect. Most businesses will have access to the

Internet and require scheduling in short amounts of time. The Internet is the perfect way

to make hotel reservations quickly and in a timely manner. As part of the Internet

advertising strategy we will be partnering with sites such as Expedia.com and Hotels.com

in order to make our service easily accessible to everyone.

16
 The print media types we will be using include hotel and travel magazines and

logos on fleet vehicles. Hotel magazines reach out to a wide number of consumers all

around the world. As a hotel business, it is crucial to get ads into these magazines. Travel

magazines should be considered the same way as well. These magazines reach a great

amount of people and are looked to, to find reviews and ratings. The ads in the magazines

will reflect a professional and comforting image. We are targeting professional business

people and the ads should reflect this, while also implying comfort and home at the same

time. To be more specific, one ad would have a woman or man dressed in professional

attire, in one of the hotel rooms, using his/her laptop to video chat via Wi-Fi to their

children. In the ad, comforting things that would remind him/her of home could surround

the man or woman.

The logos on the fleet vehicles will be a good advertising tool because people will

see the logo everywhere that they are in Dubai. The fleet vehicles would include airport

shuttles, taxis, and vehicles specifically used by and for the hotel. A logo would be placed

on the sides of the vehicles and possibly even on the back window. After seeing the logo

on their taxis, customers would pass by our billboards on their way to their destinations in

Dubai. The logo would include the name, telephone number, and website. The shuttles

would also become part of the airport check in system that is to be created. A counter at

the airport in Dubai will be set up for customers to simply hop off the plane, come to the

counter, and then verify a reservation or make a reservation. There will then be a shuttle

that takes the customer from the airport to the hotel. And of course, on these shuttles will

have the hotel logo and information. This airport counter will make it easy and

convenient for customers by taking care of the transportation to and from the airport.

17
 Another advertising strategy will be to put commercial spots on in-flight videos.

The commercials on the planes will encourage customers to use the hotel for

accommodations if they haven't already booked their hotel stays. A catchy saying could

be used such as, "Don't have a place to stay? Don't worry, have the comfort of home right

here in Dubai at World Hotels." The commercials could also play interviews with past

customers and encourage people to stay with us the next time in Dubai. The spots will

also include pictures and contact information to persuade customers into using our hotel

the next time around.

The main message of the advertising efforts will be a great stay at a great price.

The hotel is to be designated in the business district. The competitive analysis showed

that most of the hotels in that particular area or highly prices. Our hotel will be an

affordable alternative with the same types of amenities. Other messages we want to

portray are the comforts of home, affordable luxuries, and last-minute accommodations.

A portion of our advertising effort is focused on getting the last-minute rooms filled. This

is done through the Internet and the in-flight commercials as well. We want to get

everyone and anyone to use our hotel.

There are many costs that go into the promotional efforts of the hotel. The decals

for the cars run around $60 - $70 a piece. If we were to put one on each side of the car,

that would be around $130 for each car. Starting out with around 15 cars would then have

a final cost of around $2000 for the vehicle decals. The promotions in the hotel and travel

magazines could be estimated to run around $50,000 per ad. There are effective magazine

advertisers that can put together a package of magazines to run the ads for us at a

discounted price. With promotional material, however, it is difficult to put a price on

18
anything. There is a risk of putting out money and getting no return, but when the return

does come in, it will generally outweigh the cost of the promotional activities. World

Hotels is willing to take the risk and get the name out there.

Sales promotions that we will use include discounts for booking online and at the

last minute. The ultimate goal of the hotel is to fill the rooms. By providing discounts at

the last minute, we can ensure that all the rooms are being filled and taken care of. We

also want to provide a discount for booking reservations online. This is because booking

online takes incurs less labor cost for the company and is more convenient to work with.

With all of the information already online, employees of the hotel will not need to enter

that data and can access the account automatically. We are providing the customer with a

reward for making the process easier for us.

To start out with, InterCity Hotels wants to offer customers 20% off for booking

online instead of calling in and making a reservation. We are willing to make this kind of

offer because making reservations online saves cuts labor costs. A discount should

provide incentive for customers to make reservations online instead of over the phone.

In addition to the already mentioned promotional methods, it would also be a

good idea to sponsor business conferences. Our target market does consist of business

professionals, so it would seem beneficial to market to that market regularly. We can do

this by hosting and/or sponsoring actual business conferences. The hotel will have a

conference/meeting room to accommodate businesses that have many employees coming

at one time and have a need for a meeting space. We will also sponsor events that happen

outside of the hotel, encouraging our hotel as a place to stay and accomplish their needs.

At business conferences around the world, we would create a display banner that could

19
be put up suggesting our hotel to stay at when visiting or doing business in the Dubai

area.

Place

As previously mentioned, the hotel will be located in Dubai’s business district.

The Dubai “business bay” is expected to experience exponential growth within the next

decade and we want to be a part of that growth. This prime location will lead to long-term

competitive advantage and success.

Presentation

In order to adapt to the culture of the area, our hotel will include traditional, yet

simple, Arabian décor. The rooms will be decorated in bold Arabian colors including red

and gold. These colors create the perfect chic, fresh, and luxurious look. Overall, we want

to maintain a fresh, clean look. Therefore, we don’t want the rooms to be over-decorated

or over-crowded. We want the guests to feel comfortable and relaxed during their stay.

People

The hotel employees are the most important part of the service because they are

the face of the company. As a result, we want the staff to reflect the culture of the region

and we will hire locals. However, we want to make sure that we protect our brand image

and do not want to immediately turn complete control over to the owner and the local

employees. We will initially have managers from the local headquarters in Germany.

These managers will be responsible for getting the hotel off to a good start and teaching

our organizational culture to the locals. Once InterCity Hotels feels the hotel is ready,

local management will take over. This unique human resource approach is aimed at

creating goodwill in the region towards InterCity Hotels.

20
Processes

All of our processes will be streamlined from the moment the guest pulls up in

front of the hotel until the guest leaves the hotel. When the guests arrive outside, they will

be greeted by an employee and their luggage will be handled for them. Check in will be a

simple process and guests will be guided to their rooms. Luggage will be delivered to the

guests’ rooms without the guests having to lift a finger. We will offer 24-hour room

service to meet all of the guests’ individual needs. The hotel will also offer a simple

express checkout process. We feel this is very important because business people are

often in a rush to make it to a meeting or to catch a flight. We want to make the departure

process as smooth as possible for our guests. These efficient processes will add value to

our guests’ stays.

Financial Expectations
Based on the company’s 2007 financial report, we have prepared the graph below

to show how the company should perform over the next two years.

Resource Required

Timeline

21
This graph shows that the 2007 net sales were $615.74 million. Therefore, we expect our

2008 net sales will be $715.24 million at a growth rate of 16%. In 2009, our net sales

should reach $830.76 million. The anticipated growth should allow us to attract investors

in Dubai.

Timeline
The following timeline reflects our plans for the InterCity Hotels Dubai location:

2009: Enter Dubai’s hotel market and find potential buyers/investors

2010: Begin hotel construction in Dubai and being to promote and market
the opening of the hotel
2011: Grand opening of the hotel
2012: Financially evaluate the performance of the hotel and weigh the
possibility of building another hotel in Dubai
2013: Possible find a buyer/investor for the new hotel and being building

22
 References
Cateora, P.R., & Graham, J.L. (2007). International Marketing. New York, NY.
McGraw-Hill/ Irwin

Turner, B. (2007). The Statesman’s Yearbook: The politics, cultures and economics of
the World. 143rd Ed. New York, NY. The Statesman’s Yearbook

Mattar, P. (2004). Encyclopedia of the Modern Middle East & North Africa. 2nd Ed.
Farmington Hills, MI. Thomson Gale. Vol. 4.

Government of Dubai, (2008-2009). Department of Tourism and Commerce Marketing.

Retrieved October 1, 2008, Web site: http://www.dubaitourism.ae/

“Education”, 2007. Retrieved October 3, 2008, from

uae.gov.ae/government/education.htm

“Emirates”, 2005. Retrieved October 3, 2008 from emirates.org/about.htm

“World Fact Book”, 2007. Retrieved October 3, 2008 from

cia.gov./library/publications/the-world-factbook/geos/ae.htm

“World Stats”, 2007. Retrieved October 3, 2008 from internetowrldstats.com/stats.htm

“World Fact Book,” 2007. Retrieved October 5, 2008 from

cia.gov/library/publications/the-world-factbook/geos/de.htm

http://www.booking.com/city/ae/dubai.

http://www.alemania-hotel.de/index_E.htm

http://www.expedia.com

http://www.hotels.com

Video: Marriott Hotels: Bill Marriott, CEO. Retrieved December 8, 2008 from
http://www.businessweek.com

23