HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s compilation covers the Middle East/Africa region.
MEA region reports increases in key metrics
The region’s occupancy ended the month virtually flat with a 0.8-percent increase to 62.2 percent, average daily rate increased 1.3 percent to US$144.35, and revenue per available room grew 2.1 percent to US$89.75.
• Read “STR Global: Middle East/Africa results for May 2010.”
STR Global: Middle East/Africa pipeline for May 2010
The Middle East/Africa hotel development pipeline comprises 468 hotels totalling 127,938 rooms, according to the May 2010 STR Global Construction Pipeline Report released this week.
Among the countries in the region, the United Arab Emirates ended the month with the most rooms in the total active pipeline with 55,629 rooms. UAE also reported the most rooms in the In Construction phase with 29,323 rooms. Saudi Arabia reported 15,770 rooms in the total active pipeline.
• Read “STR Global: MEA pipeline for May 2010.”
Rotana chairman increases stake in company
Nasser Al Nowais, chairman of Abu Dhabi-based Rotana Hotel Management, has agreed to buy a 22-percent stake in the company from a private equity fund of Dubai’s Shuaa Capital SHUA DU, according to Reuters.
Details of the deal were not immediately made public. The company operates 37 properties in the UAE, Egypt, Saudi Arabia, Sudan, Syria and Lebanon. The company plans to open 33 more properties before the end of 2014 in UAE, Qatar, Kurdistan, Jordan, Oman, Syria, Iraq, Bahrain, Morocco and Libya.
World Cup should boost South African hoteliers’ fortunes
Hosting the 2010 World Cup should provide a lift to hoteliers in South Africa, according to STR Global.
Data from STR Global shows that prior to the start of the tournament and in-line with many other parts of the world, the country’s revenue per available room has begun to trend upward during 2010. Nationwide RevPAR registered a small increase of 1.3 percent between April 2010 and April 2009. Furthermore, while the supply of available rooms has been increasing steadily compared with the previous year as hoteliers geared up to host fans from all over the world, the change in demand, measured as occupied rooms, has also begun to trend upwards in 2010. The peaks for RevPAR and demand during June 2009 coincided with the hosting of the Confederation Cup, the prelude to this year’s competition.
• Read “World Cup boost expected for South African hoteliers.”
Louvre Hotels looking to expand in Middle East
Starwood Capital-owned Louvre Hotels is planning to add to its presence in the Middle East, according to HospitalityBizIndia.com.
Growth possibly could occur through acquisitions, president Pierre-Frederic Roulot said. The company also is considering expansion in Brazil and India. It’s unclear how many hotels Louvre is looking to add.
Asian hotels attracted to UAE
The United Arab Emirates is garnering its fair share of interest from Asian and Far East hotel companies, according to Gulf News.
The region’s growing economy and status as an air travel hub have contributed to the interest.
"The UAE is recovering fast from the global economic downturn and the country has a lot to offer,” said Pascal Eppink, GM of Banyan Tree Al Wadi. “Being strategically placed just six hours away from most European destinations, this makes it extremely accessible. With travellers spoilt for choice with the numerous hotel and entertainment offerings, and with more developments in the pipeline, I see the tourism industry growing even more."
Luxury brands find a home in the Mideast
Luxury brands are a good fit for the Mideast market, according to Emirates Business 24/7. http://www.business24-7.
"I think full-service brands will be very powerful in the Middle East in future. Looking at our own luxury brands, future growth in the JW Marriott and The Ritz-Carlton would be concentrated in this region and Asia,” said Don Semmier, executive VP, global full-service brands for Marriott International.
Still, the market is saturated with large luxury hotels, which makes it essential for a luxury property to differentiate itself from the competition, while staying true to the brand.
"We will be introducing the Marquis Hotels brand for the first time here, and like every new classification that is launched, it is imperative to get the brand message across but differentiate it by market. Appropriate the essence with the right amount of local," he
said.
Rotana adding to portfolio
Rotana Hotels is planning to add four additional properties in Doha, Jordan, Bahrain, and Oman, according to the Khaleej Times.
We are expanding our foothold into the region and I think there are many areas which are under supplied," said COO Omer Z. Kaddouri. North Africa and Saudi Arabia are under-supplied, he added.
African Sun leaving Zambia
African Sun is pulling out of its partnership project in Zambia, according to NewsDay.
The company is pulling out of the Royal Chundu Zambezi River Lodge in Livingstone, Zambia, because of disagreements over terms with its unnamed technical partner.
African Sun is still planning to go ahead with its other pipeline projects. The company is planning to add a half dozen hotels this year in Botswana, Ghana, and Nigeria.
Libya urged to open itself to tourism
Muammar Gaddafi’s son is calling on Libya to open itself up to tourism, according to a report in The Australian.
It will happen," said Saif al-Islam Gaddafi. "We will create the right environment for tourism in Libya. If you have no drink, no visa, no hotels, nobody will come to Libya."
Gadaffi, whose father ruled Libya for decades, has been vocal about getting Libya to adopt western ideals.
"I would like to make Libya the Vienna of North Africa," he said, referring to his favorite European city. Luxury hotels were already being built, he added.
African sun to focus on city hotels
African Sun Limited will focus its business more heavily on city hotels instead of resorts, according to The Standard.
The company is looking to hedge itself against the instability of resort properties.
“The bulk of our rooms were in resorts and this would not be sustainable going forward because that is a market that is very sensitive to the vagaries of political and market conditions,” CEO Shingi Munyeza said. “City hotels can subsist much better and they are more resilient—they are consistent in terms of their cash flows—that’s why we are trying to shift the whole balance.”
Openings
• Mandarin Oriental is planning a 160-room property in Doha, Qatar, in 2014.
• Marriott will open a 170-room hotel in Dubai Lifestyle City in 2014.
• African Sun this year will open the 153-room Holiday Inn Gaborone in Botswana.
• Signature Life Hotels opened a 14-room boutique property in Morningside, South Africa.