Each week, Hotel News Now publishes a hotel news roundup from a different global region. Today’s recap focuses on Middle East/Africa.
April prelim data for Dubai
STR Global’s preliminary April data for Dubai indicate positive growth in all key performance indicators. STR Global is a sister company of HNN.
Based on daily data from April, Dubai reported:
- increases in supply (8.1%) and demand (10.5%);
- a 2.2% increase in occupancy to 84.8%;
- a 11.4% increase in average daily rate to 1,065.92 United Arab Emirates dirham ($290.20); and
- a 13.9% rise in revenue per available room to AED903.87 ($246.08).
Hotels key to GCC diversification
Travel and tourism stands to play a major role in the diversification of the Gulf Cooperation Council’s economies as they reduce their dependency on hydrocarbons, according to speakers during the Arabian Hotel Investment Conference 2014.
“Oil has been one of the main drivers of the GCC over the past five years,” accounting for one-third of gross domestic product and 80% to 90% of budget revenues, said Khatija Haque, head of Middle East and North Africa research for the Emirates NBD, in a presentation on the panel titled “The next 10 years and the regional economic outlook.”
The various governments in the GCC have recognized this trend cannot continue forever, she said. “Oil is a finite resource. … At some point it is going to run out.”
Starwood Hotels planning 35 MEA properties
Starwood Hotels & Resorts Worldwide said it plans to open 35 hotels in the Middle East during the next three years. The company has 46 properties comprising more than 13,000 rooms in the region. Starwood made the announcement during the Arabian Hotel Investment Conference in Dubai, United Arab Emirates.
This year, Starwood will open seven hotels in the UAE, Iraq and Bahrain. Earlier this year, the company opened its first hotel in the Emirate of Ajman, the Ajman Saray, a Luxury Collection Resort. Starwood has 10 hotels in Saudi Arabia, with another eight properties in the pipeline, including the first Aloft, which opens next year in Riyadh.
50% of UAE travelers will spend more on travel
Half of affluent United Arab Emirates families said they intend to spend more on family travel during the next 12 months than they did during the past, according to a Visa study.
Further, 89% of respondents indicated they took an overseas holiday during 2013, with India, the United States, Turkey, Maldives and France being the most popular destinations.
Rotana to open 11 additional MEA properties
Rotana has announced it will open 11 properties in the region by 2020, according to a report in Arabian Business.
Five of the hotels will open in Dubai, four in Iran and the remaining properties will be in Dar es Salaam, Tanzania, and Khartoum, Sudan. The Iranian hotels will be flagged under the Rayhaan Hotels & Resorts by Rotana brand.
"Dubai continues to be a focus market for us, and with Expo 2020 expected to further boost an already strong hospitality market, we plan on widening our footprint in the emirate. The new hotels will enable us to strengthen our market share in high demand areas," said Omer Kaddouri, president and CEO of Rotana.
Deals and development
- Kempinski Hotels will this summer assume management of the 112-room Hotel des Mille Collines in Kigali, Rwanda, according to a report in eturbonews.com. The hotel will be rebranded as a Kempinski and undergo an 18-month renovation.
- The 226-room Waldorf Astoria Jerusalem opened in April.
- Starwood Hotels has signed an agreement with Majid Al Futtaim Properties to launch its Westin and Le Méridien brands in Bahrain. The Westin Bahrain City Centre and Le Méridien Bahrain City are scheduled to open in July.
- Wyndham Worldwide has opened the 57-room Super 8 Riyadh in Saudi Arabia. The company also signed a management agreement for the 153-room Wyndham Garden Doha in Qatar, which is scheduled to open in 2017.
- Hilton Worldwide Holdings has signed a management agreement with Bin Otaiba Investment Group for the 366-room Hilton Abu Dhabi Saadiyat Island Resort. Hilton also signed a management agreement with Majid Al Futtaim Properties for the 370-room Hilton Garden Inn Mall of the Emirates in Dubai. And finally, Hilton signed an agreement with Mohamad Ruqait Real Estate for the 205-room DoubleTree by Hilton Marjan Island Village in Ras Al Khaimah.
- Hyatt Hotels Corporation and management company Wasl Hospitality opened the Hyatt Place Dubai/Al Rigga. The 210-room hotel is the first Hyatt Place in the Middle East.
- Starwood Hotels has signed a management agreement with Century Park and Hotel Residences Limited for the 136-room Sheraton Kigali in Rwanda.
- The former 124-room Le Méridien Barbarons Beach Hotel will reopen as the Avani Seychelles Barbarons Resort & Spa in the fourth quarter of 2014.
Compiled by Shawn A. Turner.