Nikki Beach Resort & Spa Set To Open In Dubai In 2015

US luxury Beach club brand Nikki Beach will open a new property in Dubai in partnership with Meraas holding in autumn 2015.

The Operator was meant to originally launch The Pearl, Nikki Beach Resort & Spa in Qatar in Feb 2012. This announcement comes weeks after the brand had confirmed that it had cancelled plans to open its first property in Middle East on Doha’s The Pearl Qatar.

This will be the brand’s first property to open in the Middle East. The $100-million (Dh367 million) 5-star resort will be located on Palm Jumeirah.

The Nikki Beach Resort & Spa Dubai will include 400 metres of white sandy beachfront, 61 branded residences, 132 units including 117 rooms and suites, 14 beach villas, one 1,350 sqm 3-bedroom ultimate beach villa, three restaurants, a VIP lounge, Nikki Spa by ESPA, Tone Fitness Centre and the brand's famous Beach Club.

The villas will feature private gardens and pools while all hotel rooms & suites will offer stunning views of the Persian Gulf and Dubai cityscape. The resort will also include 61 exclusive branded residences with a mix of 1, 2, 3 and 4 bedroom residences and townhouses and a breathtaking 850 square meters penthouse.

Nikki Beach Worldwide founder & owner Jack Penrod said “We have been waiting for the right time, location and partners to expand our brand in Dubai and after 10 years of waiting, I am happy to announce that we have finally found the perfect location and the perfect partners to open Nikki Beach in Dubai,”

Meeras Holding chief hospitality Officer Cherif Hosny commented: “In line with Dubai’s Tourism Vision 2020, Dubai needs to have close to 160,000 hotel rooms to host the targeted numbers of visitors anticipated by the year 2020. With this as a key driver, Meraas is expanding its portfolio in the hospitality industry, developing projects that will not only add to the number of rooms in Dubai but also bring in a new dimension of luxury and experience to the hospitality industry in the country.

Katara Plans Extravagant $1.6 Billion Hotel in Qatar

A New York based architectural firm has unveiled plans for a 1000 room stunning hotel rising out of sea and ready for the 2022 FIFA World Cup.

The Silver Pearl Hotel will be developed by Katara Hospitality and will have more than 1000 rooms. It will be located 1.5 km off the coast of Doha and the project is set to cost $1.6 Billion.

The Hotel has been designed by the Architectural firm M Castedo architects and the unique look of the hotel is meant to showcase the culture of seafaring and pearl diving history.

The design, still pending approval, will envision a building consisting of two 30-story semicircle towers connected by a vaulted climate controlled atrium over the gardens with an ocean view. All rooms will face outwards onto the ocean with the common areas furnished and decorated in the spirit of Arabian Tradition. A conference and exhibition center will be contained adjacent to the main building, while a recreational roof deck will be located above a multi-storey parking facility.

The Silver Pearl Hotel will be one of several “icons” constructed in the country for the upcoming international football tournament. The visitors to the hotel would access the hotel through a four lane elevated causeway, by private yacht or helicopter.

The number of hotels planned and under construction in Qatar is growing rapidly as hospitality operators prepare for the spike in demand driven by the World Cup.

Official figures show the volume of visitors to the Gulf country is also quickly increasing. The country attracted a record 1.5 million guests in the first half of the year, a 7-percent jump.

Qatar’s hospitality industry is currently dominated by high-end, luxury offerings. The country’s hotel room inventory has grown by an average of 13.4 percent annually and reached approximately 13,600 rooms by the middle of the year, according to professional services Deloitte.

Middle East/Africa Hotel Pipeline Grows in October

The Middle East/Africa region has reported 646 Hotels under contract totaling 151579 rooms, according to the October 2014 STR Global Construction Pipeline Report.

The report indicates an increase of nine hotels from the September Global Construction Pipeline Report, which reported that 637 hotels were under contract totaling 151,205 rooms.

The under contract data includes projects in construction, final planning and planning stages but it doesn’t include projects in the unconfirmed stage.

Among the chain scale segments, the upper upper scale segment accounted for the largest portion of rooms under contract (36.4 per cent) with 55,172 rooms.

Three other segments each account for more than 10 percent of rooms under contract: Luxury segment (18.9 with 28,628 rooms); the upscale segment (18.4% with 27,833 rooms); and the unaffiliated segment (14.1 % with 21,327 rooms)

The upper upper scale segment accounted for the largest portion of rooms in construction (37.4 percent) with 27,503 rooms, followed by the luxury segment (21.7 percent with 15,952 rooms) and the upscale segment (19.6 percent with 14,429 rooms)

Photo courtesy: wikimedia.org

Accor launches its ‘Leading Digital Hospitality’ Plan

Accor announced the launch of the ‘Leading Digital Hospitality’ plan which will see development of more robust information systems, distribution infrastructure and data gathering capabilities that will create a seamless journey for customers, a more transparent relationship with partners and a more digitally empowered Accor team.

The plan also sees the company build on the Arabic language website, with improved mobile applications, an extension of the tailored deal search engine and an expansion of Accor’s loyalty program.

Accor’s ‘Welcome project’, which allows guest to check in online, will be implemented throughout all Accor properties in the Middle East by 2015. Currently, this new service has been piloted at the Novotel Al Barsha and Ibis Al Barsha in Dubai since July 2014.

Digital technology is a challenge for all the industries, especially the hospitality industry. To overcome this challenge Accor is launching globally a transformational strategy to enhance the digital experience of all stakeholders. 

According to Vivek Badrinath, Deputy Chief Executive Officer of Accor, “Digital technology is massively important in the Middle East, where social media is a growing part of daily life and smartphone penetration levels are the highest in the world. In response, not only are we improving our online booking services, we will also increasingly welcome guests through their smartphone or tablet. In everything we do, we are creating a richer digital-enabled Accor experience.”

The integrated digital plan includes customer-focused programs that aim to improve the knowledge of the customers, and the services provided. They will enable Accor to increase its customer base and develop further loyalty.

• Mobile first: It takes into account the customers migration to mobile devices, such as smart phones, tablets by rolling out a single mobile application incorporating all of Accor’s services before during and after hotel stays.

• Customer centric:  will develop and make optimum use of the customer database to ensure personalized follow up and services on a single platform known as voice of the guest.  

•  Seamless Journey:  will ensure convenience for customers at every stage of their experience, with electronic payment solutions, one click booking, online check in and the Le Club Accor hotels virtual card.

• Mice & BtoB: will develop innovative digital solutions for businesses, such as online booking of seminar facilities, and will increasingly incorporate BtoB services in the global booking website, accorhotels.com.

 

Employee focused:

• Employee Friendly: Aims to simplify tasks using tablets and smart phones, develop online training solutions and encourage experience sharing via “AccorLive” – the in-house social network.

 

Partner focused:

• Owner and Franchise Centric: aims to make Accor the most efficient and transparent partner, notably by offering comprehensive dynamic pricing and revenue management solutions, a dedicated portal to access personalized information and services and an optimized billing process, starting in 2015.

 

System focused:

• Infrastructure transformation:  optimizing systems to speed up the roll-out of new and keep pace with rising transaction volumes.

 

Data focused:

• Business Intelligence and Analytics: ensure that decisions are increasingly made on analysis of large volumes of data collected in hotels.

Accor will dedicate additional resources to innovation, through open innovation platforms and tactical acquisitions that strengthen its expertise and technology.

The Group also announced its acquisition of French start-up Wipolo, a cutting-edge travel software company that offers mobile and web itinerary management services.

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. 

Photo credit:  www.wikimedia.org

Starwood Hotels Rolls Out New Smartphone Room Key

Starwood Hotels has announced the introduction of SPG Keyless, the hospitality industry’s first mobile keyless entry system allowing guests to use their Smartphone as a key.

SPG Keyless is part of the award winning loyalty program, Starwood Preferred Guest, from Starwood Hotels & Resorts Worldwide and is being rolled out to Aloft, Element and W Hotels around the globe. SPG Keyless will go live on November 5th in 10 markets. W Doha will be among the first ten hotels in the world to offer the service. Starwood expects SPG Keyless to be available at 150 hotels by early 2015. 

SPG Keyless is a groundbreaking turning point in the traditional hotel experience, redefining the age-old way guests arrive and check-in to their rooms. SPG Keyless – powered by the SPG app – enables guests to bypass the front desk (where available), go directly to their room and unlock their stay with a simple tap of their Smartphone.

SPG Keyless is available to SPG members who book a hotel room through one of Starwood’s channels SPG.com, the SPG app or customer contact centers.

SPG Members must register their phone once through the SPG App and allow push notifications. After booking a reservation at a keyless hotel and approximately 24 hours before arrival, SPG members are invited to opt-in to SPG Keyless.

Guests will receive a push notification noting that they are checked in and the SPG App will update with the room number and Bluetooth key when the room is ready.

Upon arrival at the hotel, the guest can completely bypass the front desk (where available) and go directly to the room.  After ensuring the Bluetooth is enabled, the guest simply opens the SPG App, holds the Smartphone to the door lock, waits for the solid green light and enters the room.

SPG Keyless is an evolution of Starwood Smart check-in, another industry first that debuted at aloft hotels in 2011. Building on this technology, Starwood worked with the world’s largest lock manufacturer, Assa Abloy, to create an all-new, Bluetooth-enabled lock as well as key-less software, which are designed to securely recognize and connect with a guest’s mobile device.

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.

Photo credit: deluxblog.it

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.”

Accor Reaches 100 Hotels Milestone In Middle East

Accor Hotel Services Middle East has reached a major milestone of 100 Hotels in the Middle East with 66 operational Hotels and 34 more properties under development across 10 Middle Eastern countries ahead of its schedule of 2015. The Hotel group's regional network covers all segments of the hospitality market including luxury, upscale, mid-scale, economy with a total of approximately 24,500 keys. The Hotel group is one of the largest operators in the Middle East.

To mark the occasion, Accor has launched the ‘100 Unsung Heroes’ initiative to identify and recognize 100 employees from its regional operations who have made a significant contribution to the group’s success.

The 100 employees will each receive a cash prize, and the group will host a ceremony to donate 10,000 to the Red Crescent Society.

Sofitel, The Palm Jumeirah, Dubai

Christophe Landais, COO for Accor Hotel Services Middle East, said: “We are delighted to reach our target of 100 hotels in the Middle East. It is a great achievement made possible by the strength of our relationships with our regional partners and the fantastic commitment of our employees. I would like to thank them all for playing an important role in our shared success, and I’m especially proud of the fact that we achieved this major milestone ahead of our scheduled target date of 2015.”

As the regional market leader in economy and midscale segments, Accor is helping to meet the growing demand for 3 stars and 4 star Hotels in the Middle East region. Accor already has a number of properties under the Sofitel, Pullman and McGallery brands in the region and many more under development.

The COO, Christopher Landais, said that “the strategy of expanding aggressively through select development tailored to each market location, in partnership with leading regional investors has delivered outstanding results so far. He also added that “This success has been underpinned by the establishment of the Académie Accor Middle East in 2003, the first training academy of its kind in the region, which ensures the development of skills and advancement opportunities for our employees. Looking ahead, we see exciting opportunities to expand our portfolio of hotels across the region in the years to come."

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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Booking.com, Hilton, Emirates and Etihad - World’s Most In-demand Employers: LinkedIn

LinkedIn recently announced the 100 most attractive employers its members would like to work for, and a few renowned companies from the Hospitality business, online Travel & Tourism, and Aviation industry made it to this list.

LinkedIn, the world’s largest professional network on the Internet, announced the rankings at its 2014 Talent Connect conference held recently in San Francisco. Booking.com was ranked as the 68th most in-demand employer among other notable companies, including Google, Apple and Unilever.

The companies on the list represent 17 countries, 59 cities and 33 industries. While the top 3 represented industries on this list were Tech, Telecom and Media, Retail & Consumer Products, and Oil & Energy.

Among the Travel and Tourism industries that make the top 100 list are booking.com (68^th), Airbnb (60^th) and Expedia (65^th).

Booking.com was one of the top tech disruptors to enter the attractive employers list as they were not featured in the 2013 list. Booking.com is owned by Priceline and the parent company (Priceline) has acknowledged that retaining Booking.com’s motivated and capable management allowing the brand to operate independently and offering Booking.com’s breadth of hotel supply have contributed to its phenomenal growth. The tech developers at booking.com make decisions based on real time data by analyzing the behavioral patterns of consumers and by using these search results they tailor their offering to the consumers. Employees at booking.com work hard and play harder. The work environment at booking.com is friendly, supportive and casual. They have a dynamic task force that contributes towards their success which makes it a very popular employer in the online travel and tourism category. 

Among the hospitality business, Hilton Worldwide came in 55th place, while Four Seasons Hotels & Resorts came in close behind in 59th place.

The UAE’s two major airlines, Emirates (52) and Etihad (82), also made it to the Linkedin rankings.

The ranking is based on the analysis over 35 billion interactions between companies and members on LinkedIn. The way companies are ranked boils down to LinkedIn member awareness of a company (e.g. how many people have viewed an employees’ profiles within the past year) and engagement on LinkedIn (e.g., how many members have followed a company’s Company or Career Page within the past year). Higher talent brand awareness and engagement among members on LinkedIn equal a more effective talent brand and a higher InDemand ranking.

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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Theme Park Hotels: Key for MENA Regions Hospitality Market

Colliers International highlights potential to create micro-destinations and capture MICE market. As the region’s major cities compete to become leading global travel destinations, the theme parks and resorts are playing an important part in shaping the infrastructure and attracting family visitors. There are close to 45 attractions and water parks in the region according to a report by Colliers International, with plans for several more, including the world’s largest indoor theme park, which is coming up in the Mall of the World development in Dubai.

The report also found that, while the Middle East region doesn’t lack amusement and entertainment centers, the concept of having the hotels or lodging facilities close to the destination is still underdeveloped.

Traditionally, leisure attractions have been developed to support existing hotel resorts in the region, such as the Aquaventure water park in Atlantis and the Wild Wadi water park connected to the Jumeirah Beach Hotel. Such attractions enhance a guest’s experience at the resort and this in turn increases the length of stay in the specific resort.

There will be opportunity to have themed hotels in and near upcoming attractions in Dubai including IMG World of Adventure and Meraas Holding’s Dubai Parks and Resort’s project in Jebel Ali, which will include Motiongate Dubai, Bollywood Parks Dubai, and Legoland Dubai.  

However, with number of major theme parks in the region, the developers and investors should look to build hotels in and around these developments to support the destination and capitalize on the constant flow of tourists.

Filippo Sona, Head of Hotels at Colliers International MENA said that, “Having the visitors stay close to the vicinity can extend visitors stay and increase the tendency of repeat visits, which generates significantly larger returns than from the Theme parks alone.”  

According the Global Research, the theme park hotels located within the theme park trade at an average occupancy level of 2 to 10 percent higher than the city hotels. Although, the theme park hotels generally target the leisure and family guests, but these hotels also have the potential of attracting the MICE groups if they are segmented effectively.

The Report also recommended four guidelines for theme park hotel:

• Proximity and access: accessibility to the city centre will have a direct effect on the overall destination appeal.
• Avoid over-theming when unnecessary: Be flexible and use ‘hard’ and ‘soft’ theming to manage costs while creating destination’s signature experience.
• Don’t forget the MICE: Diversifying the segment mix broadens the destination’s appeal and can soften the impact of seasonality.
• Target regional tourists: Theme park demand is driven by regional and domestic tourists, and it is crucial to align the design, facilities and theme with the Middle Eastern preferences.

Filipo Sona added that “Globally theme Park demand is driven by leisure guests, especially families from the regional domestic markets. It is crucial to target them effectively. This means larger rooms and more of them, mid and upscale hotels rather than luxury, with the right, mix of F&B outlets and facilities that cater to the domestic tastes and preferences.”

The report stresses that creating a theme that has the maximum impact on guest experience and a minimal impact on the costs.

Filipo Sona concluded that “There is genuinely huge potential for theme park hotels in the region. By observing global theme park hotels and their success factors, we are confident that these developments can thrive in the region. However the real winners are that pick the right location and broaden their appeal just beyond the leisure guests and control costs by taking a flexible approach to theming. It’s only a matter of time before we truly see a world class destination in this segment in the Middle East.”

Luxury Designer Branded Hotels On The Rise In Dubai

The developers in the region have realized that there is nothing quite like the lure of luxury and are discovering that associating a prominent brand with a Hospitality and Real Estate project is a winning formula. While the region’s retail sector is closely associated with global luxury designer labels, the hospitality and Real Estate industry is catching up now.

According to Chibeb Ben Mahmoud, Executive Vice President and Head of Hotels and Hospitality Group Jones Lang La Salle, designer hotels have identified Dubai as an important market as the city strengthens its role as business and leisure hub.

The Armani Hotel, Dubai, flagship property of Armani Hotels and Resorts is the prime example of luxury branded hospitality in the region. The Armani Hotel recently celebrated its fourth anniversary following their successful strategy. 

According to Harmen de Jong, Partner – Development Consultancy at Knight Frank, Before the launch of Armani Hotel in 2010, Dubai’s Hotels were primarily segmented into branded full service, select-service and unbranded independent hotels. The segmentation was driven by demographics, i.e. age, disposable income, and ethnicity. However, operators in Dubai realized that there was a potential gap in the market, as the segmentation and demand was driven by popularity of boutique and lifestyle hotels elsewhere. The designer hotels provide more options to the guests travelling to this region and eventually create a competitive market.

The market is expected to be more competitive as more luxury designed hotels are scheduled to open in Dubai in the next few years.

Another designer brand, Bulgari, will be venturing into the Hospitality industry as it has signed a deal with a Dubai based real estate developer Meraas Holding to build a Bulgari hotel on Jumeirah Bay Island off the Jumeirah Beach Road in Dubai. This Hotel will be the world’s 5^th Bulgari Hotel and Resort property,  comprising 100 rooms and suites, along with 20 hotel villas spread over 1.7 million sq ft. The property will be designed by Italian architectural firm Antonio Citterio Patricia Viel and partners, and it will feature a marina and will have a mix of traditional and modern themes. The property will be sculpted into the shape of a Titanic horse.

Lamborghini is another designer brand is eyeing the emirate for its next hospitality venture. A Lamborghini hotel in Dubai is in the discussion phase at the moment. Other brands like Cavalli and Baccarat have also been in the talk for hotel projects but no formal announcements have been made yet.

In the meantime, Versace is well underway with the Palazzo Versace Hotel in the Culture Village District, scheduled to open end of next year. The Hotel will be the world’s second Palazzo Versace Hotel, comprising 215 luxurious hotel rooms and 169 one to six bedroom condominiums. Around 95 per cent of the condominiums have been sold and those who have bought them can use the Hotels’s adjoining facilities. The project is being developed by Enshaa, a local Real Estate development in Dubai. The prices of the condominium started at 2.5 million when they were launched initially, with an option to select from a fully furnished residence and personalized by Versace.

Another well known luxury designer, Fendi has tied up with local Real Estate developer Damac Properties for a first Fendi styled residence apartment designed by Fendi Casa in Dubai. Damac Rezidence will feature interiors designed by Fendi Casa, situated in Dubai Marina, comprising of 200 apartments housed on 43^rd and 84^th floor of Damac Heights, a luxury property for the style-savvy investors. Work is underway for this project and is expected to be completed in 2016.

Experts believe that growing interest of luxury brands is good news for Dubai. However, while the high standard required by the luxury brands will be a mechanism for further improvement and there could be obstacles along the way.

According to Jason Lewis, Founder and Managing Director of Limah Design Consultants, these designer brands are so well ingrained into the public mind with defined values, positions and styles, that designing new components to brand takes new consideration. Although rewarding, it is only through careful research and design exploration to uncover the brand essence and then communicate that in new forms.

While Challenges are inevitable in such monumental developments, will the projects eventually pay off in the long run?

Designer-branded Hotels are aligned with the perceived attributes of Dubai. In the Middle East, in general, as well as Dubai, Hotels have been tightly linked with the rest of the social and business community. Therefore, the success of these hotels depends on the extent to which these Hotels can position themselves in the social context that they operate and also on the service infrastructure. While there are many new hotels opening, there is no need to worry about an oversupply of the branded property, as these hotels remain a very limited group within the hospitality industry, said Chibeb Ben Mahmoud. 

Dubai has one of the largest concentrations of 5 star hotels of any major city in the world and one of the highest occupancy rates for hotel rooms.

'The Hotel Show' - MENA region's Number One Hospitality Event Opens in Dubai

The 15^th edition of the Hotel Show, the premiere event for the trade and hospitality industry opens in Dubai on 28^th Sept 2014.

The three day event will attract over 600 participants suppliers of the latest products and leading global brands. The show brings together industry players from a range of services, including hospitality and leisure, design and restaurants, etc.

In 2013, 16,700 hotel and hospitality partners visited the show where deals worth almost $4 billion of business were sanctioned for the following 12 months.

The Hotel Show will feature conferences, awards, and unique networking opportunities for industry professionals.

“The Middle East is recognized as having some of the fastest growing economies in the world - with forecasts of up to 3 per cent growth before 2016 — and we are delighted to be able to offer real business opportunities to all who participate”, stated Christine Davidson, Event Director at The Hotel Show.”

The key highlight of the show is the Vision conference, where Issam Kazim, The Chief Executive of Dubai Corporation for Tourism and Marketing (DCTCM) will deliver a key note speech. Other sessions of the conference will cover trends in the hospitality and leisure sector, the development and growth of mid market hotels, and interior designing trends.

Another feature of the show is International Village, where more than 300 international companies will be represented from more than 45 countries, including Austria, Belgium, China, Egypt, France, Germany, Greece, India, Italy, Philippines, Portugal, Spain, Turkey, Thailand, Vietnam and the UK.

GCC Hospitality Industry Set To Reach $35.9 Billion By 2018

The hospitality industry in GCC is forecast to grow from $22.8 billion (Dh83.7 billion) in 2013 to $35.9 billion by 2018 at an annual rater of 9.5 % according to a new report by investment bank, Alpen Capital.

The UAE’s Hospitality industry is expected to grow at a compound annual growth rate of 10 per cent between 2013 and 2018.

Average Hotel occupancy rates in GCC are expected to be between 68 percent and 74 per cent between 2013 and 2018, while the average daily rate (ADR) is likely to be between $225 and $263 during the same period.

The growth of the industry in the region will be fuelled by the shift in global activity from East to West, a rise in leisure travel, higher demand for serviced apartments, a shift towards budget travel and quicker construction pipeline, said Sanjay Bhatia, Managing director of Alpen Capital.

The sector’s growth is also expected to be driven by increase in international tourist arrivals, and a stronger MICE segment among others, said Sameena Ahmad, managing director of Alpen Capital in the Middle East.

According to the report, Saudi Arabia is expected to continue its dominance as the largest market in terms of revenue, followed by the UAE.    

The GCC has made major investments in the airport infrastructure, with Al Maktoum International at Dubai World is undergoing a Dh 117.5 billion which is expected to begin by end of the year. The airport will be able to serve 120 million passengers within six to eight year.

Airports across the region are expected to handle as many as 250 million passengers by 2020, according to Reed Exhibitions, quoting a study.

However, as the GCC countries are set to boost their hotel room capacity in the run up to major events, they also face the challenge of sustaining the demands after the events take place. The region has made major investments in infrastructure for events like World Expo 2020 in Dubai. The six month long Exhibition will be the main driver of the hospitality industry in UAE, which is valued at 23 billion dollars according to the report. However, in Dubai the hotel room supply and demand could be balanced after Expo 2020.

Other challenge faced by the GCC region is competing with newer projects and attracting skilled labor force.

Sanjay Bhatia, also said that, the growth of the sector will be driven by supportive policy initiatives undertaken by GCC governments to enhance infrastructure; there by positively impacting the continued investor appetite for the region and tourism.

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Jumeirah Group Third Most Influential Brand In The UAE

Jumeirah Group, Etihad Airways, Emirates Airline, Emaar and Damac are ranked among the top 10 most influential brands in the UAE according to the rankings released by professional networking platform LinkedIn.

The rankings are based on engagement among LinkedIn’s total 313 million user base and are calculated by evaluating the communication and activities of the brands on LinkedIn.

UAE’s airlines and Hospitality brands have dominated the top 10 list. Jumeirah was ranked third just behind Etihad Airways and Emirate Airlines, in the first and second place respectively.

Emaar, another major hospitality and leisure brand in the Middle East, was ranked fifth, while Damac came in ninth.

Jacob Thomas, Marketing Solutions Lead at LinkedIn said “While LinkedIn offers brands unmatched opportunities to reach out and engage with their target audiences, any marketing effort needs constant and consistent measurement to ensure success”

“The brands we have identified in the UAE are leading among their peers in using LinkedIn's Marketing Solutions most effectively, and the make-up of the ranking shows that social media is a significant focus for brands in the UAE."

The rankings were released post the announcement of earlier this year of LinkedIn’s Content Marketing Score, a data driven resource giving brands insight into the engagement with paid and organic content on the platform.

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