HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers the Middle East/Africa region.
STR Global: MEA April results
The Middle East/Africa region reported mixed performance results during April 2011 when reported in U.S. dollars, according to data compiled by STR Global, a sister company of HotelNewsNow.com.
The region’s occupancy ended the month with a 9.7% decrease to 59%, its average daily rate rose 10.8% to US$176.82, and its revenue per available room ended the month virtually flat with a 0.1% increase to US$104.25.
• Read “STR Global: MEA results for April 2011.”
HVS: Mid East performance in doubt
Political unrest and increasing oil prices are casting a shadow over future Middle East hotel performance, according to HVS’ 2011 Middle East Hotel Survey.
Following is a summary of highlights from the survey:
• The number of international visitors was muted in 2010, but domestic and regional travel rose.
• Corporate and leisure travel increased during the second half of last year, thanks in part to lower rates.
• Investment in budget and 4-star hotels is gaining momentum.
• Markets such as Beirut, Yemen, Kuwait and Oman are undersupplied, and underdeveloped and could present good opportunities for investors.
Dubai sees 14% rise in Q1 hotel guests
Dubai saw an overall 14% increase in hotel guests during the first quarter despite a slowdown in the key United Kingdom market, according to a report in The National.
The number of vacationers traveling to Dubai from the United Kingdom fell by 2%. The drop is significant because a large portion of Dubai’s visitor traffic hails from the U.K.
"The U.K. economy is down," said Syed Zulfiqar Mehdi, the director of sales and marketing at the Samaya Hotel Deira in Dubai. "That is a major cause of the problem. The price might have been a little bit higher compared to last year because in this first quarter every hotel has done very well. People in the U.K. have a very different budget to travel."
Africa could be next hotel frontier
African nations hold a wealth of opportunity for hotel development, according to Breaking Travel News.
Jonathan Worsley, board director of STR Global, points to Africa’s strong growth in gross domestic product and consumer spending as signs that the region holds potential.
“Despite the uncertainty surrounding some of its northern countries, Africa is quickly becoming the land of promise because of its potential returns on investment,” he said.
‘Safer’ Middle East destinations favored amid unrest
Corporate and leisure travel is being redirected to those parts of the Middle East not affected by the “Arab Spring” turmoil, such as Dubai and Doha, according to The New York Times.
Starwood Hotels & Resorts Worldwide, for instance, saw 85% occupancy during the first quarter, the article reports.
“Business has been affected in Yemen, Syria, Bahrain and Jordan operationally, and on the development front, we have a few projects on hold in these countries,” said Guido DeWilde, regional director of Middle East operations for Starwood Hotels & Resorts Worldwide. “The downside in those countries has been offset by strong performance in the Gulf, and in particular, in Dubai.”
Tunisia seizes Hilton hotel
Tunisian officials last week seized the 283-room Hilton Tunis Carthage because it is owned by the brother-in-law of ousted president Zine el Abidine Ben Ali, according to The National.
The future of the hotel is uncertain, the article reads. Hilton Worldwide was in the midst of converting the hotel, formerly the Le Palace Hotel, to the Hilton brand.
"Hilton Worldwide confirms it remains fully committed to its management agreement for the Le Palace Hotel in Gammarth," said Christian Grage, the VP of operations, Hilton Worldwide, Egypt and Levant.
Saudi Arabia wants more nationals to stay home
Saudi Arabia is trying to entice nationals to stay home on their vacations, according to a report in Al Arabiya.
The government would like to see the money spent on international travel redirected back to within the country’s borders. Domestic tourism was down 28% a year ago to 23.9 million trips while outbound tourism increased by 17%, with 7.55 million Saudis travelling abroad.
To achieve its staycation goal, the country is looking to bolster its supply of hotels and resorts. Accor Middle East, for one, is planning three additional hotel development projects planned by the end of next year.
Atlantis expects near 90% occupancy in 2011
Atlantis, The Palm is expecting its occupancy to be around the 90% mark in 2011, according to Emirates 24¦7.
2010 occupancy was 83%. “We are ahead of our forecast and budget in general. Dubai is doing much better as a destination,” COO Serge Zaalof said. “Last year, we had 1.08 million guests staying at the hotel. This year we expect the number to cross 1.1 million.”
Development news
• Hyatt Hotels Corporation entered into an agreement with Jabal Omar Development Company to manage three Hyatt-branded hotels in Mecca: 628-room Hyatt Regency Mecca, which opens in 2013; the 200-room Hyatt Place Mecca, which opens in 2014; and the 200-room Hyatt Summerfield Suites Mecca, which also opens in 2014.
• Ritz-Carlton’s plan to bring its total international properties to more than 100 by 2016 includes several projects in the Middle East: Ritz-Carlton Riyadh; and Ritz-Carlton Abu Dhabi, Grand Canal will open by the end of the year; Ritz-Carlton plans to enter Cairo in 2013 and Rabat, Morocco in 2014; and a second location in Cairo will be added in 2015.
• Marriott International will add eight properties in the Middle East and North Africa by 2015, according to Arabian Business.
• Rezidor Hotel Group has opened its seventh United Arab Emirates property: the 220-room Radisson Blu Hotel, Dubai Downtown.
• Taj Hotels Resorts and Palaces is taking over management of the 161-room Taj Palace Marrakech in Morocco.
• Sarovar Hotels is looking to develop properties in East Africa, according to the Financial Chronicle.
• America’s Best Franchising is planning to open properties in Nigeria under the America’s Best Inns & Suites brand.