Each week, HotelNewsNow.com provides a news roundup from a different global region. Today’s roundup focuses on Middle East/Africa.
MEA October results
The Middle East/Africa region reported positive hotel performance results in October 2012 when reported in U.S. dollars, according to data compiled by STR Global, sister company of HotelNewsNow.com.
The region’s occupancy increased 4.6% to 65.5% during the month, its average daily rate rose 9.4% to $183.97 and its revenue per available room grew 14.4% to $120.56.
“ADR across the Middle East saw a double-digit uplift in October for the first time this year, growing 13.3% to $246 after benefiting from the Eid celebrations that took place in October this year,” Elizabeth Randall Winkle, managing director of STR Global, said in a news release. “Across Saudi Arabia, RevPAR grew 38.8% in U.S. dollar terms against October 2011.The biggest RevPAR increases were reported in Makah (88.2%) and Medina (36.9%) followed by Al Khobar (25.1%) and Jeddah (23.4%). RevPAR in Riyadh, the country’s business hub, declined 38.4% in the same month.”
MEA pipeline for October
The Middle East/Africa hotel development pipeline comprises 488 hotels totaling 121,026 rooms, according to the October 2012 STR Global Construction Pipeline Report.
Among the chain-scale segments, the upper-upscale segment accounted for the largest portion of rooms in the total active pipeline with 32.3% and 39,048 rooms. Three other segments each accounted for more than 15% of rooms in the total active pipeline: upscale segment (19.6% with 23,743 rooms); the luxury segment (19.1% with 23,091 rooms); and the unaffiliated segment (18.8% with 22,705 rooms).
Up to $7.3b to be spent on GCC hotel projects
Hotel developers have plans to spend up to $7.3 billion on hotel projects in the Gulf Coast Countries, according to a report on ConstructionWeekOnline.com that cites Ventures Middle East.
Of that amount, $1.65 billion could be spent on interior design and fit outs, according to the report. Most of that work will be done in Saudi Arabia and the United Arab Emirates.
Also, hotels in Saudi Arabia are likely to see a lot of renovation work done as the properties try to build occupancies in the wake of rising supply.
Dubai GDP increasing rapidly
Dubai’s gross domestic product is growing at its quickest pace since early 2008, according to a report from Jones Lang LaSalle, which cited the Dubai Statistics Centre.
Over the first half of 2012, GDP growth in Dubai was 4.1%, thanks in large part to trade, transport and tourism.
“Encouragingly, there are also indications that some of the lessons of the last real estate crisis have been learned. The most important of these is the need to adopt a long term and coordinated approach, rather than developing too much real estate too quickly. Providing this proves to be the case, then the recent announcements can be seen as a positive for the market in the long term,” JLL said in its report.
Gaza conflict impacts cancellations
Cancellations were on the increase in Jerusalem last month as attacks between Hamas and Israel boiled over.
The American Colony Inn, located in Jerusalem, experienced cancellations, “but some short-term cancellations got replaced by journalists,” said Katerina Brokhes, sales and marketing manager for the hotel, via email. “Our worries are for the coming months’ cancellations until the area is back to normality, so to speak.”
Elias al Arja, head of the Arab Association for hotels in the city, told Reuters that “the percentage of cancellations has reached 40(%) to 50% until the end of November and for the next month.” Tourism represents 12% of gross domestic product for the Palestinian Authority, whereas tourism accounts for 2% to 3% of Israel’s gross domestic product, Israel’s Tourism Ministry told Reuters.
Ras Al-Khaimah breaks into spotlight
Once overshadowed by fellow emirates Dubai and Abu Dhabi, Ras Al-Khaimah is being vaulted into the spotlight thanks to a massive marketing push and a flurry of new hotel investment.
The up-and-coming emirate is the most northern state of the United Arab Emirates and features a landscape of mountains, desert and sea—but little glitz or glamour, until now.
Long seen by local residents as a place to escape for short breaks and staycations, Ras Al-Khaimah is being rebranded as a premium yet affordable luxury destination for leisure and adventure, said Victor Louis, COO of the emirate’s Tourism Development Authority.
And international visitors are taking the bait. Arrivals have increased from 87,000 in 2002 to 835,200 in 2011, according to the TDA. The number of hotel rooms has swelled similarly from 744 in 2002 to 2,651 in 2012.
Deals and development
- Hilton Worldwide has signed a management agreement with Delta Tourism & Hotels Company for the 158-room Hilton Alexandria Corniche in Alexandria, Egypt, which is expected to open in 2013.
- The Four Seasons Safari Lodge in Serengeti, Tanzania, officially opened its doors on 3 December.
- Accor will open two Sofitel-branded hotels, comprising more than 700 rooms, in Dubai next year, according to Hotelier Middle East.
- Rotana has opened the Centro Capital Centre in Abu Dhabi, and also is planning to open in Abu Dhabi the 300-room Capital Centre Rotana in 2014 and the 200-room Capital Centre Arjaan by Rotana next year, according to Breaking Travel News.
- Best Western International has opened the Best Western Plus The Olive in Manama, Bahrain.
- Wyndham Hotel Group has signed an agreement with Riyada International Hotels and Resorts to open 10 Days Inn-branded hotels in Saudi Arabia.
Compiled by Shawn A. Turner