competition winner
Hotel General Manager Position in Dubai By Fezvi Okumus
Introduction This case study presents a scenario about a US born and educated
HGM currently managing a hotel in England but receives a similar job
ofer for a larger property in Dubai within the same hotel group. The
case study provides background information to the HGM, First Quality
Hotels group, the hotel property in Dubai and the hospitality industry
in Dubai. It ends by raising several questions about the HGM’s options
in response to the job ofer.
Background to Mr. David Miller After completing his undergraduate degree in Hospitality Man-
agement at a reputable university in the United States (US), Mr. David
Miller joined First Quality Hotels group as a management trainee
in 1995. He worked for this company at properties in New York, Las
Vegas, Chicago, Miami and Houston. He held various managerial po-
sitions in food and beverage along with sales and marketing in the
company’s hotels in Chicago, Miami and Houston. As a result of his
outstanding performance, he was promoted to Food and Beverage
Manager at the Chicago property in 2000; Hotel Manager in Miami in
2002 and became Hotel General Manager at the 400-room property in
Houston in 2004.
David completed his MBA in 2005 and was subsequently sent to
Athens, Greece, where he worked as the HGM at the chain’s 450-room
hotel for three years. In 2008, he was promoted to a larger five star
property (600 rooms) in London, England as the HGM. He has been
responsible for implementing a turnaround strategy for the hotel, with
impressive results in guest service metrics and overall profit margin.
He is often described by those who have worked with him or for him
as being a hard-working, analytical, approachable, team builder, team
player, fair, motivator, good communicator, good listener and inspir-
ing.
David is married to Jennifer and they have two daughters who
are six and nine. Jennifer has not been particularly pleased with their
moves from one location to another one every three/four years. She is
also concerned with their daughters’ education since it takes time for
them to settle down and get used to their new schools and the educa-
tion system in each location. David is less concerned with this since he
knows that there are generally first class private schools in every loca-
tion they go and the company pays for their daughters’ educational
Fezvi Okumus is Chair and Associate Professor at Rosen College of Hospitality of Central Florida at University of Central Florida.
expenses. He also thinks that it is a great exposure for their daughters
to live in diferent countries and cultures, which can give them a com-
petitive edge in the long term. On the other hand, Jennifer hopes that
one day they can go back to the US and she can perhaps start build-
ing a career for herself as well. Jenifer also believes that David works
for long hours and does not spend enough time with her and their
daughters. In other words, due to his demanding position, David has
not been very successful in managing work-life balance. In addition,
because of their moves from one location to another one, they do not
have many close family friends to socialize with.
First Quality Hotels Group As of May 2011, First Quality Hotels group manages 164 hotels
worldwide. The company has over 80,000 rooms and employs over
52,000 people globally. The properties are four and five star hotels tar-
geting business travellers and upper class leisure travellers. Of the 164
properties, 12 of them are owned by the hotel chain, 91 have manage-
ment contracts, and 61 operate as franchises. In terms of geographical
locations, 122 hotels are located in the USA, 16 in Europe, 12 in the
Middle East, 10 in Asia and four in Africa. The company plans to open
at least another 20 hotels in the Middle East and Asia within the next
10 years believing that compared to other regions, there will be major
growth opportunities in the Middle East and Asia.
Under First Quality Hotels Group, management practices devel-
oped and practiced in US properties are followed and implemented in
all other properties in globally. In other words, First Quality Hotels has
more an ethnocentric orientation (Roper, Brookes and Hampton, 1997)
in its management practices. This home country orientation has creat-
ed some conficts and challenges particularly in marketing and human
resources management practices at properties outside US but the
senior executives of the hotel group claim that their regional directors
and HGMs are empowered to resolve any problems and challenges in
such cases by thinking global and acting local. However, they further
acknowledge that the company needs to work on this area to develop
strategies and policies to make the company’s management practices
more international.
Hotel General Manager Position in Dubai During the company’s annual convention in Houston early 2011,
Mr. John Wise, the Regional Vice President of Operations for Europe,
the Middle East and Africa informed David that if he is willing, the
company is considering him for a move to Dubai to become the HGM
of the company’s five star hotel there. This can be a great career move
Journal of Hospitality & Tourism Cases 7
for David as two previous general managers of this property including
Mr. Wise were promoted to senior corporate positions.
The hotel property in Dubai is owned by a local corporation, but
First Quality Hotels group has been managing it since it was opened in
2004. It has 650 rooms, five restaurants and a convention center. The
hotel is located at Jumeirah Beach with its own private beach. Its direct
competitors are Hilton Dubai Jumeirah, The Westin Dubai Mina Seyahi
Beach Resort and Marina, Sofitel Budai Jumeirah Beach and Le Merid-
ian Mina Seyahi Beach Resort and Marina. David was a guest at this
property in 2007 during the annual regional hotel managers’ meeting
for the company. Overall, he was very impressed with the property
at that time. However, in recent years the property has started show-
ing some signs of aging, therefore it needs to be renovated within a
few years. In addition, several new luxury hotels have been opened in
Dubai which has put much pressure on the property.
David has learned that one of the competitor hotels in Dubai
has recently head hunted the hotel general manager of this property
and the human resources manager and the marketing manager have
followed him. Due to the economic recession in recent years, the ho-
tel has implemented some cost cutting exercises and as a result let
go about 150 employees. The property currently employs over 510
employees. Due to the labor shortage in the region, the hotel has
recruited employees from 14 different countries: 18 from the USA,
14 from England, 12 from Germany, 12 from France, 37 from Egypt,
32 from Jordan, 26 from Russia, 70 from Pakistan, 105 from India, 88
from Philippines, 25 from China, 47 from United Arab Emirates and 24
from other countries. The property’s executive team has people from
several diferent countries, including the USA, France, Greece, Spain,
England, Egypt, Jordan, and United Arab Emirates.
The Hospitality Industry in Dubai Dubai is the second-largest emirate in the United Arab Emirates
(UAE). It is located in the north-eastern part of the UAE with an area
of 3,885 km2 and is the only emirate without substantial oil and gas
revenues (Leemann and Younes, 2005). Over 900,000 people live in
Dubai and over 80% of this population is expatriates. As summarized
in several recent publications, Dubai has a very strong infrastructure
and it has become a major tourism and economic hub due to major in-
vestments (Balakrishnan, 2008; Henderson, 2006; Leaman and Younes,
2005; Sharpley, 2008). The ruling Al Maktoum family and investors
from the region and other countries sponsored major projects which
include Dubai Maritime City, Dubai International Financial Centre,
Dubai Festival City, Dubai Marina, Palm Project, Mall of Emirates, Dubai
Mall, Dubailand, Dubai Health Care City and Dubai Waterfront. Due to
regional and economic recession in recent years, completion of some
of these projects has been delayed.
The Dubai hotel market is divided into two major sub-markets:
Jumeirah Beach and the City. Europe, Russia, Arabic countries have
been the main feeder markets for upper scale hotel demand in Dubai.
The Dubai hotel market has often outperformed other hotel markets
in the Middle East in terms of occupancy and Revenue per Available
Room (RevPAR) (Leeman and Younes, 2005). However, starting from
2009 the hotel industry in Dubai faced major declines in occupancy
and revenues. For example, in 2009 RevPAR declined 31% to $163
(Anon, 2010) which was about $236 in 2008 (Walid, 2009). However,
starting from 2010, there have been signs of recovery in the hotel
industry in terms of the number of visitors, occupancy and RevPAR
(Department of Tourism and Commerce Marketing, 2011). In a recent
online article (Freed, 2011), it is stated that despite recent turmoil in
the region, Dubai, neighboring Emirates and surrounding countries
have a bright future with the economic potential and resources. In this
article it is further noted that “Political turmoil is the wildcard, but to
most it is a speed bump, even a catapult to an even greater future in
the region” (Freed, 2011).
Supporting this, there have been signs that the hospitality indus-
try in Dubai is on the way to recovery. For example, Gerald Lawless, the
Executive Chairman of Jumeirah Group, the hotel management com-
pany that operates Dubai’s sail-shaped Burj Al Arab stated that “There
is a lot more depth in the market than there has been in the past in
terms of the length of booking and amount of booking we are receiv-
ing… We are seeing an improvement in the conference market as the
economy improves globally” (Bloomberg, 2011). Similar to this, in a
recent interview, Starwood CEO Frits Van Paasschen was also optimis-
tic about the hotel industry in Dubai after occupancies remained high
in 2010. He noted that the market in Dubai is not saturated and there
is a room to have more hotels in Dubai and the region (Reilly, 2011).
Should David Accept this Offer? Although this could be an excellent opportunity, David has some
concerns regarding the potential offer. First, Dubai faced some finan-
cial difculties and the hospitality industry in the region has been
facing challenges due to low demand and reduced room rates. Based
on the company reports and other external industry sources, David
has found that since mid-2009 the property has been performing well
in key performance areas, although it was not one of the company’s
top performing hotels in the region. He also learned that the hotel
unit’s direct competitors have achieved better results than this prop-
erty.
David’s second concern relates to the global political and eco-
nomic effects on the hotel. This is a critical “time-milestone” in his
career with First Quality Hotels, since the next step for him would be
to a senior corporate position and this new ofer could be an excellent
stepping stone. However, David also knows that, even when a General
Manager is sharp and makes good decisions, his performance is often
dictated by fuctuations and changes in the economy and political en-
vironment. Global uncertainty has escalated, civil and political unrest
in several countries in the Middle East has increased (demonstrations,
street disturbances in several countries in the region), and global cur-
Volume 1, Number 1 8
rency stability continues to decline.
Finally, he is mostly concerned with how well he can work with
employees and managers from diferent cultures and countries. He
knows that national culture of employees and managers afect man-
agement practices (Ayoun and Moreo, 2008; Hofstede, 1989). During
his career in the US, Greece and England, he has worked with employ-
ees and managers from diverse backgrounds and cultures, but none
as varied as this one. One thing is certain: working in Dubai as a Hotel
General Manager would be the most challenging task he has faced
yet. He knows that if he says no to this ofer, this may be a missed op-
portunity for him and he may not be approached again for such ofers
within the hotel group. On the other hand, if he accepts this ofer, he
will continue working far more hours than before which means that
his work-life balance (Blomme, Van Rheede and Tromp, 2010; Deery
and Jago, 2009) will be worse than before. He needs to make a deci-
sion within one week: Should he accept the ofer?
Assignment help – Discussion Questions • What would be the advantages and disadvantages for David to
accept this ofer?
• If David accepts the position, what should he do to prepare for
success in his new role?
• What should First Quality Hotels do to prepare David for suc-
cess in his new role?
• If you were to develop a cross-cultural training program, which
topics and activities would you include?
• How can David better manage work-life balance?
References Anon. (2010). Dubai Hotel Occupancy Sees Sharp Jump in February,
Yahoo!Business Industries. Http://en.news.maktoob.com/20090000451930/ Dubai_hotel_-occupancy_sees_sharp_jump_in_Feb/Article.htm. [Accessed the 22nd of April 2011].
Ayoun, B. and Moreo, P. (2008). Does national culture affect hotel manag- ers’ approach to business strategy? International Journal of Contemporary Hospitality Management, 20(1): 7-18.
Balakrishnan, M. (2008). Dubai – a star in the east: A case study in strategic destination branding. Journal of Place Management and Development, 1(1): 62-91.
Blomme, R., Van Rheede, A. and Tromp, D. (2010). Work-Family Conflict as a Couse for Turnover Intentions in the Hospitality Industry. Tourism and Hospitality Research, 10(4): 269-285.
Bloomberg. (2011). Jumeirah Group plans to open at least six hotels this year, Arabian Business.Com, January 13, 2011. Http://www.arabianbusiness. com/jumeirah-group-plans-open-at-least-six-hotels-this-year-373586.html. [Accessed the 22nd of April 2011].
Deery, M. and Jago, L. (2009). A Framework for Work-Life Balance Practices: Addressing the Needs of the Tourism Industry. Tourism and Hospitality Research, 9(2): 97-108.
Freed, J. (2011). Dubai’s Hospitality Provides Platform for Discovery, HotelNews. com, May 4, 2011. Http://www.hotelnewsnow.com/articles.aspx/5473/ Dubais-hospitality-provides-platform-for-discovery. [Accessed the 22nd of April 2011].
Henderson, J. (2006). Tourism in Dubai: Overcoming barriers to destination development, International Journal of Tourism Research, 8(2), pp.87-99;
Hofstede, G. (1989). Organizing for cultural diversity, European Management Journal, 7 (40: 390-397.
Leemann, S. and Younes, E. (2005). The Dubai Hotel Market – Hot or Soon to Overheat? London: HVS International.
Reilly, D. (2011). Dubai hotel industry set for growth in 2011 – Starwood CEO, Arabian Business.com, January 14, 2011. Http://www.arabianbusiness.com/ dubai-hotel-industry-set-for-growth-in-2011-starwood-ceo-373646.html. [Accessed the 22nd of April 2011].
Roper, A., Brookes, M. and Hampton, A. (1997). The Multi-cultural manage- ment of international hotel groups. International Journal of Hospitality Management, 16(2): 147-159.
Sharpley, R. (2008). Planning for Tourism: The Case of Dubai, Tourism and Hospitality Planning and Development, 5(1): 13-30.
The Department of Tourism and Commerce Marketing. (2011). Statistics. Http:// www.dubaitourism.ae/Resource%20Center/Statistics. [Accessed the 22nd of April 2011].
Walid, Tamara (2009). Dubai Hotel Industry in Crisis, Yahoo!Business. Http:// en.news.maktoob.com/20090000006266/Dubai_hotel_industry_in_crisis/ Article.htm. [Accessed the 22nd of April 2011].
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Journal of Hospitality & Tourism Cases 9
http://www.chrie.org/publica
https://en.news.maktoob.com/20090000006266/Dubai_hotel_industry_in_crisis
www.dubaitourism.ae/Resource%20Center/Statistics
https://Business.com
Http://www.hotelnewsnow.com/articles.aspx/5473
Http://www.arabianbusiness
https://Business.C
Http://en.news.maktoob.com/20090000451930
winner of the competition
Position for a Hotel General Manager in Dubai Fezvi Okumus wrote this.
Introduction This case study depicts a scenario involving a US-born and educated individual.
HGM currently managing a hotel in England but receives a similar job
ofer for a larger property in Dubai within the same hotel group. The
case study provides background information to the HGM, First Quality
Hotels group, the hotel property in Dubai and the hospitality industry
in Dubai. It ends by raising several questions about the HGM’s options
in response to the job ofer.
Background to Mr. David Miller After completing his undergraduate degree in Hospitality Man-
agement at a reputable university in the United States (US), Mr. David
Miller joined First Quality Hotels group as a management trainee
in 1995
