Rotana Hotels to Increase Its Presence In Middle East And Turkey

Rotana, the Middle East’s leading hotel brand said that it plans to add 3,360 rooms to its portfolio, creating more than 10,000 jobs over the next five years.

The Company has released details of it 12 new properties some of which are due to open before the end of 2014. Omer Kaddouri, president and CEO, highlighted that the company’s construction pipeline focuses on countries outside its traditional market, including countries like Jordan, Turkey and Bahrain.

Rotana, which has a vision of operating 100 hotels by 2020, said that the new properties will also create a significant amount of employment opportunities with plans to hire approx 10500 new staff in the next five years.

Omer Kaddouri mentioned that, openings in Jordan and Turkey represent a key milestone for Rotana Hotels and important achievement for the group. The development pipeline includes new properties in Amman, Jordan, Qatar, Bahrain, Istanbul, Turkey, Abu Dhabi and Saudi Arabia.

Properties opening in Q4, 2014:

• Boulevard Arjaan by Rotana, Amman, Jordan, will feature 391 suites.
• Sedra Residences by Rotana, Qatar, will offer 250 rooms and suites.
• ART Rotana, Bahrain, will boast 311 luxurious rooms and suites.

Properties opening in Q2 2015:

• Banader Rotana, Bahrain will offer 251 rooms.
• Burgu Arjaan by Rotana, Istanbul, Turkey will have a total 0f 222 hotel apartments.
• Tango Arjaan by Rotana, Istanbul, Turkey will offer 188 hotel apartments.
• City Centre Rotana, Doha, Qatar will include 287 rooms.
• Centro Doha, Qatar will be complete with 229 rooms.
• Capital Centre Arjaan by Rotana, Abu Dhabi will feature 259 studio rooms and suites.
• Rosh Reyhaan by Rotana, Saudi Arabia will be complete with 236 modern rooms.

Properties opening in Q3, 2015:

• Capital Centre Rotana, Abu Dhabi, with 315 luxurious rooms.
• Amman Rotana, Jordan will feature 412 contemporary rooms and suites.

Stellar Performance by Abu Dhabi Hotels In September

The Abu Dhabi hotel market continues to gain momentum with four to five star hotels reporting positive gains in performance levels for the month of September compared to last year, according to the latest HotStats report by TRI Consulting. Abu Dhabi has been having challenges over last couple of years because of the increase in new supply which had an impact on the average room rates.

However, in the last two to three months the average room rates have started to increase and bottom out. The September data from HotStats reports shows that YTD performance for Abu Dhabi hotels is actually increasing; the Average Room Rate (ARR) increased by 4.2% to US$128.96 while occupancy grew by 6.6 percent points to 76.6%, resulting in revenue per available room (RevPAR) rising 14% to US $98.76.

There is a marginal increase compared to 2013 which is great news for Abu Dhabi because the city is attracting a lot more visitors which in turn has resulted in very strong occupancy levels and it has helped the hoteliers to turn that corner and start yielding more effectively when it comes to room rates.

The hotel profitability is relatively strong in Abu Dhabi but the rates are still comparatively lower than the hotels in Dubai, Fujairah and Ras Al Khaimah. This difference in rate is because of huge influx of supply and a weak demand for a last couple of years. So, the hoteliers resorted to drop their rates to get people into their bedrooms but now that the demand has shifted and a lot of people have started coming through, the rates have started coming up. In fact it is projected that in the next couple of years the Abu Dhabi hotel rates will be on par with Dubai.

The biggest source market for Abu Dhabi is India. The Secondary market is with the UK and US but surprisingly Abu Dhabi doesn’t attract a large proportion of Saudi Arabian visitors. Saudi Arabia is the largest source market in Dubai yet it doesn’t register in the top 5 markets in Abu Dhabi.

A lot of new real estate, retail, leisure and entertainment projects are in the pipeline to cater to the growing needs of the visitors. In fact, Macy’s and Bloomingdales, two of the biggest departmental stores in the US, are planning to set up shop at the capitals Al Maryah Island and with Yas mall opening in November Abu Dhabi will attract more regional visitors because it has a greater retail offering. Retail drives the people and if you look at the Saudi visitors, their biggest motivation is leisure and shopping.

Abu Dhabi is also building up the level of demand to attract large groups of 90+ but they don’t have the infrastructure. ADNEC has the capability to cater to large groups but they don’t have the driving force. Abu Dhabi is trying to position itself as a destination to attract international visitors but Dubai is still leading the way.

Having said that, the hotel occupancy will continue to grow in Abu Dhabi as it gears up for world class events like Formula 1 Abu Dhabi Grand Prix and opening of retail space in the near future.

Ras Al Khaimah Hotel Revenue Up By 47% In Q3

The Tourism chief at Ras Al Khaimah announced recently that the hotel room revenue grew by 47 % in the third quarter of 2014 as the emirate is a popular destination among the tourists.

Last year the 1 million barrier was not broken until November, demonstrating the rocketing tourism growth being experienced by the Emirate, which has 65 kilometers of prime beach coastline.

Steven Rice, the CEO of RAK TDA said that “Our percentage growth in guest nights for the third quarter of 2014 compared to the same period last year was 72%, so extremely impressive.” He also mentioned that “We are also seeing significant increases in the number of people searching for Ras Al Khaimah in Google, in visits to our website, and in the levels of engagement via our social media presence. In addition, hotel room revenue increased in the third quarter of 2014 by 47% compared to last year."

RAK is a very popular emirate among the residents for a getaway during Eid and public holidays. The emirate attracted over 63,870 guest nights during 5 days of Eid Al Adha, domestic UAE travelers accounted for 32%, UK 12%, Russia 12% and Germany 10%.

According to data gathered from Smith Travel Research report, Ras Al Khaimah’s average daily room rate (ADR) was 19% higher than Abu Dhabi, which was supported by new openings on Al Marjan Island and Waldorf Astoria, which was Hilton luxury brands’ first property in the UAE.

Rice also commented on future prospects “Forward bookings are looking strong, interest in the emirate across multiple business sectors is on the rise and overall we expect the positive growth patterns experienced in Ras Al Khaimah to continue."

Earlier this year Ras Al Khaimah said it was launching a new tourism branding, pitching the emirate as a “world class leisure destination” and retreat from the urban cities such as Dubai. RAK TDA is considering building a mountain village and establishing mountain climbing and zip lining to attract tourists and to add to the list of activities.

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Marriott To Operate New Dubai Theme Park Hotel

Marriott International is to operate the new family centric hotel, Lapita, at Dubai Parks as part of the major theme park project in Dubai.

The Polynesian themed, Lapital Hotel will operate 503 keys under Marriott’s Autograph Collection and is due to open in 2016, in line with other developments. This hotel is Marriott’s first independent hotel collection in the Middle East.

The hotel is a key component of the Dubai Parks and Resorts which is strategically located in Jebel Ali, between Dubai and Abu Dhabi and is set to open in 2016 as part of the first phase of the project, which also features Bollywood Parks Dubai, Legoland Dubai and Motiongate Dubai. Dubai Parks and Resorts LLC, a Meraas Holding company is developing the project and began construction on the Hotel in February.

The Lapita hotel is named after the pre-historic Pacific Ocean people who were considered nautical experts and ancestors of the Polynesian race. It will draw inspiration from the exotic Polynesian tropical landscapes, featuring Polynesian flowers, lagoon-style pools, themed activities and dining options. An in-house entertainment component will serve as another key attraction and Lapita will also feature relaxation zones.

Alex Kyriakidis, president and MD of Marriott International, Middle East and Africa, said: “We are delighted to bring the much-anticipated Autograph Collection brand to the Middle East. We are confident that given the ambition, drive and commitment of our partners, Dubai Parks and Resorts will emerge as the premier theme park destination in the Middle East, and provide a perfect fit for our debut Autograph Collection hotel in the region.”

Region’s first Hard Rock Hotel to Open in Dubai Marina

The first Hard Rock Hotel in the Middle East is expected to open in Dubai Marina in Mid 2015. The hotel will be located in Dubai’s 2^nd tallest tower, Marina 101 tower, will be the first Hard Rock branded Hotel in the Middle East, with a second hotel, scheduled to open in Abu Dhabi in 2017.

The 281 room Hard Rock hotel will occupy the first 33 floors of the Marina 101 tower, which is developed by Sheffield holdings. The club lounge and dining venue will be located on the 101^st floor of the second tallest tower in Dubai.

The Hard Rock hotel will include a Rock Spa, featuring the new body and rhythm, spa menu. The property will also feature pre-meeting and events space, including a outdoor terrace at lobby level and a lounge area on 101st floor with a rock shop for selling Hard Rocks’ merchandise and The Sound of your Stay – an exclusive music program for the Hotel guests.

Hard Rock has partnered with Abu Dhabi Financial Group to launch the Hotel in the region. Hamish Dodds, Chief Executive of Hard Rock Group said that they chose to open the hotel in Dubai Marina as it is centrally located in the New Dubai with an urban proximity of Dubai Media City, which is the hub of entertainment and business.

Hard Rock has 21 hotels, 145 cafes and 10 casino’s worldwide. Regionally, Hard Rock plans to open hotels in Egypt, Morocco and Doha in the next two years. In the UAE, it is considering opening a hotel in Ras Al Khaimah.

The hotel property was previously intended to be operated by Hampshire Hotels Management in association with Wyndham Hotel Group, but Sheffield Holdings confirmed in July 2014 that the companies were no longer involved with the project.

637 Hotels Under Contract in MENA

The Middle East and Africa has 637 hotels under contract, with 151,205 rooms, according to STR Global’s September construction pipeline report.

139 hotels opened year to date, with 33,232 rooms in the region, according to the global research firm. It expects 82 hotels, with 18,538 hotels to open in the remainder of 2014.

The most rooms are planned to be added in the upper scale segment (5419 in 18 hotels), followed by the unaffiliated segment (4626 rooms in 22 hotels), the upscale segment (3,531 rooms in 13 hotels) and the luxury segment (3480 rooms in 150 hotels).

By 2015, 145 hotels, with 32,271 rooms are due to open in the region. The upper upscale segment is expecting to add the largest addition of rooms. i.e. 38 hotels with 12,516 rooms, followed by the luxury segment (26 hotels with 5,318 hotels) and the upper segment (31 hotels, with 5,024 rooms)

A number of hotels have opened in the UAE, in 2014, such as the Double Tree by Hilton Hotel and Residences in Al Barsha-Dubai, Sofitel Downtown and Holiday Inn Abu Dhabi downtown.

According to the data provided by the Dubai’s Department of Tourism and Commerce Marketing, more than 7000 rooms were added in Dubai since June last year bringing the total to number to 88,680 rooms across 634 properties.

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Hilton Eyes Gulf Cities To Launch New Hotel Brand

Hilton Worldwide has identified major cities across the Middle East including Dubai, Abu Dhabi, Muscat and Bahrain as possible homes for its lifestyle brand – Canopy by Hilton.

The company launched the brand last week at an event for owners and developers in Orlando, Florida, specifying how it would take the emphasis off design and target the leisure and business travelers.

The company has announced just one location outside the US, i.e. in London, and is also eyeing other opportunities elsewhere, including the Middle East.

According to Hilton Worldwide luxury & lifestyle brands global head John Vanderslice, “Canopy by Hilton is something our owners have told us they want from a Hilton brand. It is an  energising new hotel offering simple, guest-directed service, thoughtful local choices, and comfortable spaces, so guests simply feel better going forward.” 

John Vanderslice, said that Hilton has identified a number of prospects across the region to expand including Dubai, Abu Dhabi, Muscat and Bahrain, where there is a wealth of local flavor and culture which is suited to the brands offering. He also mentioned that Canopy by Hilton is an accessible lifestyle brand and that they could build a bigger and a brand than the competitors have in this segment.

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Abu Dhabi to Attract More Indian tourists

Indian visitors lead the pack as the largest international hotel guests for Abu Dhabi over the past year. TCA Abu Dhabi, the capitals tourism authority, is embarking on a 5 day road show to India to promote Abu Dhabi as a leading destination among the country’s outbound travelers mindset.

The group includes 14 representatives from Abu Dhabi Tourism stake holders including Etihad Airways, Yas Island, Hotels, tour operators and attractions. The committee will travel across the Indian cities of Mumbai, Ahmedabad, Bangalore, Chennai and Capital City New Delhi from Aug 25 to Aug29.

According to the stats from TCA Abu Dhabi, in the first six months of 2014, 107,950 Indian  guests checked into Abu Dhabi hotels and resortS – up 35 % during the same period last year. The arrival of Indian tourists in the capital city delivered 408,862 guest nights, which was up 22% year on year with the average length of stay being 3.79 nights.

Mubarak Al Nuaimi, Director, TCA Abu Dhabi promotions and overseas offices director said "The destination is benefitting from excellent air uplift from India at the moment with our national airline, Etihad Airways, and its partner Jet Airways, providing convenient and quick travel options to Abu Dhabi from tier 1 and tier 2 cities all over the country,"

He also said that he expected increased interest among Indians in Abu Dhabi with the opening of Sanjeev Kapoor’s Signature at the Nation Towers on Abu Dhabi Corniche, as well as the release of the Bollywood movie Bang-Bang in October, starring the India superstar Hrithik Roshan and the Diva Katrina Kaif, parts of which were shot in the emirate.

Indian Weddings are also being pursued by the Abu Dhabi stakeholders. The Yas Viceory has successfully handled 3 large-scale Indian Weddings over the past few years.

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