The Emirates Palace has evolved under Hans Olbertz's direction with an array of additions such as sports facilities and restaurants. Lee Hoagland / The National
The Emirates Palace has evolved under Hans Olbertz's direction with an array of additions such as sports facilities and restaurants. Lee Hoagland / The National

Hans Olbertz's reign over the Emirates Palace coming to a close



Hans Olbertz was "speechless" and "overwhelmed" the first time he walked into the Emirates Palace in Abu Dhabi, three and a half years ago.

Video:GM of Emirates Palace bids adieu

Last Updated: June 21, 2011 UAE

Hans Olbertz reflects on his experience as general manager for Abu Dhabi's Emirates Palace hotel before he leaves for Vienna.

The general manager of the US$3 billion (Dh11.01bn) hotel is preparing to leave at the end of this month. But during his time at the landmark property, the hotel has evolved with an array of additions, including sports facilities and restaurants, while striving to raise the high-service standards that keep attracting the elite, from rock stars to heads of state.

Now this chapter in Mr Olbertz's career is over. After a continuous stream of high-profile events and celebrity encounters, he is heading back to Vienna to open a hotel there for Kempinksi, the operator of the Emirates Palace.

"When I entered the first time, it really takes you by a very positive surprise, from the luxury, the scale itself of the Emirates Palace is [tremendous]," Mr Olbertz said.

"It's a logistical challenge naturally, due to the size, with so many restaurants and almost 1,800 employees of 59 different nationalities."

A seasoned hotelier, Mr Olbertz was working for InterContinental Hotels Group as a general manager in South Korea when he was approached by Kempinski to take on the role in Abu Dhabi. He was familiar with the city, having been the resident manager of the InterContinental there between 1988 and 1990 - and it was an offer he could not refuse.

"It's hard to top the Emirates Palace," he said. "It's the biggest privilege in my career to be able to run this hotel, and having the trust from the owners and the Government to be able to run the best hotel in the world."

In his time in the position, Mr Olbertz has seen market conditions deteriorate as the economic downturn set in and new hotels sprang up in Abu Dhabi, creating competition for business and forcing all hotels in the UAE to cut their rates.

"We are still looking to get those figures in terms of occupancy and also revpar [revenue per available room] and rates back," Mr Olbertz said.

And that pressure on hotel performance is likely to continue as more luxury properties open this year.

"Personally, I see that it will still be an extremely challenging time, the next two to three years," Mr Olbertz said. "The cake at the moment doesn't get much bigger, so you have to fight for the slices of the cake.

Also, Abu Dhabi is competing with Dubai. The danger is it shouldn't become a price war between the two cities. I think Abu Dhabi is much more catered to the upmarket market, the culture market and also the sport. But I think what Abu Dhabi from a strategy and the Abu Dhabi Tourism Authority has done will help put Abu Dhabi on the map.

"Naturally any new hotel coming online in Abu Dhabi will have an effect. We're not so arrogant that we say that 'we're Emirates Palace, nobody can harm us'. People try out new things."

Still, he thinks the uniqueness of the property will continue attracting guests, while it has also become a hub for business meetings.

"It's still the venue. You can't bypass the Emirates Palace when you come to Abu Dhabi. It's a destination," he said.

One of the highlights of the job has been meeting an endless array of celebrities and politicians, including Nicolas Sarkozy, Paris Hilton, Bon Jovi, Guns'N'Roses, George W Bush, Tony Blair, Ben Kingsley and Elton John.

"For me of course it's quite nice to have been able to meet film stars, models, rock stars, tycoons in business. That's quite a rewarding aspect of our business," he said. "They're all humans, and if you approach them in a very normal way like you talk to anybody else, I think they appreciate it very much."

During his tenure, Mr Olbertz has watched both the city and the hotel evolve.

Emirates Palace has added cricket, football and rugby pitches. It has also added two restaurants, including Hakkasan, the popular London Chinese cuisine brand, along with a marina. There are plans to add restaurants and shops, as well as a marina club to open up the area to the public, he said.

Mr Olbertz was born in Cologne, Germany, but he fell in love with Vienna after spending some time working there and he now considers the city to be home.

"To open a hotel in your hometown is fantastic. One day you have to plan your retirement.

"If you travel so many years, you like to one day go back home."

He has been travelling since 1973. When he returns to the Emirates Palace, it will be on holiday.

"I can say now I've seen it all."

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
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His favourite book - 1984 by George Orwell

His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard

Favourite place to travel to - Peloponnese, Southern Greece

Favourite movie - The Last Emperor

Favourite personality from history - Alexander the Great

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  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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Children who witnessed blood bath want to help others

Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.

As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.

Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.

“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”

Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.

“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”

Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

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Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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