Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
MEA year-end, December performance results
The end-year key performance indicators were down for hotels in the Middle East in 2015, while they were positive for African hoteliers, according to data from HNN’s parent company, STR.
Compared to 2014, occupancy dropped 2% in the Middle East to 67.4% while average daily rate fell 2.6% to $192.82 and revenue per available room fell 4.6% to $129.98.
In Africa, occupancy increased 0.2% to 57.3%, while ADR climbed 7.1% to $111.34 and RevPAR gained 7.3% to finish at $63.74.
Those regions followed the same patterns in December. In year-over-year comparisons for that month, occupancy fell 3.4% in the Middle East to 66.8%, while ADR fell 4.1% to $204.27 and RevPAR dropped 7.3% to $136.52.
African occupancy decreased by 1.2% for December to finish at 51.8%, ADR jumped 11.3% to $129.46, and RevPAR increased an even 10% to $67.13.
Gulf Cooperation Council hoteliers look to diversify
Developers in the Gulf Cooperation Council countries are considering investing in new markets, driven by instability with commodities, according to HNN’s Terence Baker’s coverage from the February Gulf and Indian Ocean Hotel Investors’ Summit in Abu Dhabi, United Arab Emirates.
“We need to spread our risk across different geographies,” said Salim Bitar, CEO of hospitality and real estate at Dubai-based Aujan Group Holding. “Yes, GCC economies are different, but mostly they are led by one commodity, which currently is going through a difficult time.”
Panelists said many companies face shareholder pressure to look for safer destinations for investment capital, but many believe opportunities remain in countries like the United Arab Emirates and Saudi Arabia.
Steigenberger puts a vote of confidence in Egypt
While Egypt might not seem like the safest place for investment at the moment, Steigenberger Hotel Group has decided to double down on its plans to expand in the country, announcing the new Steigenberger Alcazar Resort in the Red Sea resort town of Sharm el-Sheikh.
The 610-room property will follow another recent Egyptian development project for Steigenberger, as the 295-key Steigenberger Hotel Tahrir Square is set to open in Cairo in July.
A new day for tourism in Iran
Officials in Tehran, Iran, are looking to make the country more of a booming tourism destination as long-standing sanctions lift, and they might be doing so with an eye toward China, writes the Huffington Post.
Iranian officials say they hope to attract as much as 5% of China’s overseas tourists in an effort to boost Iran’s visitors from 4.5 million in 2013 to 10 million in 2019 and as many as 20 million by 2025, which would generate as much as $30 billion for the country.
Deals and development
- Al Habtoor Group purchased the 138-room Hotel Imperial, a Luxury Collection Hotel from Starwood Hotels & Resorts Worldwide for $78.8 million.
- The first Middle Eastern RIU Hotels & Resorts property will open in Dubai, United Arab Emirates in 2019 through a joint venture with RIU and Nakheel.
- Swiss-Belhotel International announced plans for the 100-room Swiss-Belhotel Al Khobar. It is slated to open in the fourth quarter of 2016 and is owned by Mohamed Al Malki.
- The 450-room Four Points by Sheraton Addis Ababa, Meskel Square is slated to open in the Ethiopian capital in early 2019. It will be Starwood’s second hotel in the country.
- Rotana plans to open the 200-room Centro by Rotana in Kuwait in 2018.
- The 179-room Radisson Blu Hotel, Sohar has opened in Sohar, Oman.
Compiled by Sean McCracken.