Suncrest rebrands to market all-inclusive packages

New signage went up at Malta's largest four-star hotel on Sunday - the finishing touches to a rebranding exercise that sees the Suncrest Hotel rebranded to the 'Seashells Resort at Suncrest'.

"This is part of the planned fresh approach we have adopted for the hotel as we market all-inclusive packages," AX Group director of hospitality Claire Zammit Xuereb told The Sunday Times. "The fresh approach starts with a cultural change which reflects a new concept from hotel to resort. We have retained the Suncrest name within the new brand because of the goodwill it has won over the years. It also allows us to market the hotel's new concept overseas."

The hotel, which began to be marketed in its new guise a few days ago, has already been well received by the markets it has been set to target, while it is being promoted heavily in Germany, UK as well as the Benelux and Russia by the major tour operators. Significant interest has also been registered on the Internet.

Ms Zammit Xuereb said union officials who voiced concern last week as the Suncrest sign came down had no reason to fear for employees' jobs. She explained how 10 days ago, she informed hotel managers that the first clients of the Seashells Resort would arrive a week ago and the sign had to be removed. Stakeholders, like transport companies and local agencies, were informed over the past week.

"The hotel is still owned and managed by Suncrest Hotels plc and the collective agreement is signed by representatives of the company," she pointed out. "This exercise is a reaction to the situation our industry finds itself in and is purely for marketing purposes. It sold quicker than I thought. My intention is to increase sales, not cut jobs."

There is a staff of 120 full-time equivalents at the hotel which reopened on March 17 after a 12-week winter shutdown. Extensive maintenance works were carried out in anticipation of the changes planned for the hotel during a particularly challenging season.

Occupancy at the hotel over the past eight weeks has averaged between 35 to 40 per cent. Ms Zammit Xuereb said she was cautiously optimistic about guest numbers improving at the height of the season. She is also very concerned about hotels not doing well this July and August, and killing all the profit certain seasonal hotels look forward to to balance off the year.

Such is the focus the business needs in this "difficult year", that her immediate target was to ensure the hotel works towards profitability. She aimed to work closely with the senior management on the relationships between sales and costs. Ultimately, the knowledge of the hotel's break even levels at any given room rate on a daily basis was crucial.

The most worrying factor this season was that disposable income in Malta's largest inbound market, the UK, had been eroded by the vicious recession.

She believes the five-night-plus all-inclusive model is the right niche market for the 458-room Seashells Resort to ensure that there is volume of guests. It was particularly appropriate given the current trend of people taking shorter holidays less frequently and spending less, Ms Zammit Xuereb said, adding that it was also a way to increase captive revenue. Attractive rates for entry-level all-inclusive packages have been marketed.

Once the volume is achieved, it will fill a good base to start to bring about yield in other segments.

"The logistics of the hotel allow it to be a resort," she said. "We have seven bars and restaurants, that include The Sun and Surf lido with its pools and water slide, as well as facilities of our beach club at Sunny Coast property just down the road. Between 7 a.m. and 11 p.m., the cost of a holiday is totally covered."

Ms Zammit Xuereb said the all-inclusive drive would continue well into 2010 and would be carried on depending on its success.

Late booking habits made it increasingly difficult to forecast hotel occupancy and figures were not even available for July and August.

Ms Zammit Xuereb now divides her time between the Qawra resort and the group's two hotels in Sliema, The Palace and The Victoria. She insisted that she was physically present at the Seashells Resort to help the general manager Joseph Vella strategise to achieve results. Mr Vella was aiming at directing his staff while motivating them to reach fluctuating targets as a balance constantly needs to be struck between price and cost, while maintaining high service standards.

A departmental restructuring programme is also underway at the resort to adapt the team to varied occupancy levels for better resilience and flexibility.

Ms Zammit Xuereb is also junior vice-president of the Malta Hotels and Restuarants Association which, she said, was lobbying government to implement an industry-wide strategy to give tourists added value during this crucial summer.