Accor Targets Over 30000 Rooms In Middle East By 2020

Accor HotelServices Middle East, one of the world's leading hospitality groups, announced its intention to double the size of its operations in the Middle East to over 30,000 rooms by 2020.

Sébastien Bazin, The Group's Chairman and Chief Executive Officer revealed the ambitious new target as the company celebrated reaching the major milestone of 100 hotels in operation (16,000 rooms) and approximately 9,000 rooms under development in the Middle East.

Mr. Bazin said, that "Our presence in the Middle East, which stretches back 35 years, has expanded significantly in response to the dynamic growth taking place in the region and reaching 100 hotels is a significant achievement.”

“Our commitment to double in size by 2020 is a bold statement of our confidence in the future of the region, the support of our partners who work closely with our experienced and localized teams here in our three offices in Dubai, Jeddah and Cairo, and the strength of our portfolio of brands that continue to deliver operational excellence and compelling returns."

He also explained the growth potential in the region by pointing out that there are on average only two rooms per 1000 inhabitants in the Middle East, compared to 10 and above in more matured markets.

Accor is seeing a rising demand for development of hotels across all segments, from luxury to economy, and that is why they have launched three new brands in the region, including Adagio serviced apartments, Majlis Grand Mercure and ibis Styles. Bazin also mentioned that they expect the growth to increase with improvement in infrastructure and delivery of key events in the region, Dubai’s Vision 2020 and 2022 FIFA World Cup in Qatar and Saudi Arabia’s target to attract 20 million visitors to holy cities of Makkah and Madinah. 

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MEA Hotel Occupancy Up By 13.1% in September

The Middle East/Africa region reported positive performance during September with a 13.1 per cent increase in occupancy to 65.5 per cent, a 1.3% increase in ADR (Average Daily Rate) to $145.12 and a 14.5% increase in RevPAR to $94.99, according to STR Global Data.

Elizabeth Winkle, managing director of STR Global said that “It is positive to see consistency in performance in spite of instability leading to uncertainty in certain countries.”

“Amongst the high performers, Saudi Arabia is one of the region's strongest in September as the country was gearing up for Hajj, which took place the first week in October”, said Winkle. “Cairo, whilst still in recovery mode, achieved occupancy levels of 51.8 percent with significant year-over-year growth of 107.5 percent”.

Some of the key trends from the regional key markets for September 2014 include:

• Egypt recorded 138.3% increase in occupancy to 60.8 %, and a 15.6% increase in ADR to EGP 523.76 and a whopping 175.4% increase in RevPAR to EGP 318.49.

• Saudi Arabia reported an increase of 26.7 % in Occupancy to 66.3%, a 28.1 per cent increase in ADR to SAR 858.62, and a notable increase of 62.3% in RevPAR to SAR569.12

• In UAE, Occupancy decrease by 0.1% to 72.9 %, ADR was down by 3.3% to AED 575.83, and RevPAR decreased by 3.4% to AED 419.85.

Four markets achieved double-digit or more RevPAR growth: Cairo (+133.9% to $55.82); Beirut (+68% to $82.99); Jeddah (+21.9% to $216.34); and Doha, Qatar (+12.2% to $127.50). 

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