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5-Star Luxury In 8-Sided Buildings

Hotel software developer tries second career with Octogone Hotels.

By Adam Kirby, Associate Editor -- Hotels, 9/1/2007

MARRAKECH—Christian Rivadalla thought he was done with the hotel industry several years ago. The American software developer sold his central reservations systems company, Global Technology Enterprise Solutions, to Pegasus Solutions on September 10, 2001, and headed off into retirement at age 34. But a visit to Morocco in the weeks following spurred a return to the business, this time as an hotelier.

The economy of Marrakech was reeling after 9/11 and Rivadalla, sensing an opportunity to make a difference for the city and some money, set forth on a mission to launch from the ground up a luxury hotel operation in Marrakech unlike any other. His Octogone Hotels in April opened its first property, Terre Resort & Spa. What makes Octogone unique is its village- style luxury villas, designed to mimic traditional Moroccan riad homes, but with an architectural twist—each building has eight sides. According to Rivadalla, there is no real reason for the octagonal theme: “Riads are square, and I cannot really see myself in a square place. Triangles are teepees and pentagons—I don’t really need to get myself bombed. So it was a fluke. It was something different. It is a very mystical shape.”

Octogone is wholly owned by Rivadalla, giving him the creative freedom he believes is crucial to making the company’s unusual concept successful. He spent US$12 million of his own money to construct Terre, but will secure investors and outside owners for future Octogone properties, while retaining management contracts. “It has been a personal challenge. I took it on as a business challenge, and I did not let the cultural lack of communication and the differences in how things were done here affect me,” he says. Terre is running at about a 33% occupancy rate in its first months, and Rivadalla projects that to grow to 50% by next year before settling in around 65%. Through six months, the property’s cost factor is at 28%.

Octogone has eight properties in the pipeline, including a ski resort in the Atlas Mountains of Morocco and a Terre look-alike property slated for Rivadalla’s hometown of Scottsdale, Arizona. The other six announced projects are all in Morocco, including Casablanca and Tangier. Octogone is poised to announce plans for additional properties soon, potentially in Italy, Spain, New York and Greece. Rivadalla has a goal of 16 properties by 2012, half of them in Morocco.

Terre Resort, upon which future Octogone properties will be modeled, has 52 suites among 25 buildings and four levels of luxury. The 400-sq.-m (4,300-sq.-ft.) Royal Villas, which rent for up to 24,650 dirham (US$3,000) per night, feature four bedrooms, four bathrooms, a full kitchen, living room, dining room and private pool, plus personal chef. The property also offers two restaurants, a spa, swimming pool, fitness center and guided excursions. All of the furniture on property is handmade by Moroccans, exclusively using local materials. “I wanted to prove that you didn’t have to import anything,” Rivadalla says. “I am sure we stole a lot of ideas from catalogs, but we have 720 different pieces of furniture, and all of them have been created by hand.”

Cultural diversity is a key component of the Octogone experience, with Moorish architecture, Cuban house musicians, Flamenco house dancers, Cuban and Japanese dining offerings and modern technology. Overall, though, Rivadalla wants guests to get an authentic Moroccan experience but with the luxury of 5-star accommodations and Moorish hospitality. Octogone staff are instructed to provide quality service but in a relaxed manner, cultivating a warm and inviting atmosphere. Guests at the hotel bar, for example, are invited to hop behind the counter and mix their own cocktails, if they choose. During Terre’s soft opening period, guests were asked to make product recommendations and to help pick out items for the property ranging from hair dryers to carpeting. “We do not have that stuffiness you find in a lot of luxury hotels,” Rivadalla says.

Since Terre is located in the desert, Rivadalla imported 8.8 million lbs. (4 million kg) of soil and vegetation to landscape the 12-acre (5-ha) property. Due to the region’s dearth of water, he created a self-merging garden with a mixture of plant species that help each other grow. “It is an oasis. Everything is green and completely livened up,” he says. “It is not something I would ever do again, but it was fun the first time out.”

The hotel group looks to appeal to adventure travelers seeking American-style luxury, along with event and group business. Thus far, the breakdown has been about 75% group business, with families accounting for much of the remaining vacation travelers. Octogone has a marketing agreement with the HotelRez distribution network.

Direct comments to: adam.kirby@reedbusiness.com

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