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.”

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.

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). 

Photo credit: www.evolo.us

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.