Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
Pipeline spikes in Middle East, Africa
The latest pipeline data from STR, HNN’s parent company, shows rooms under contract jumped 40.7% in in the Middle East in February in a year-over-year comparison for the month while Africa saw a 47.6% increase in the same comparison.
In total, there are 151,454 rooms in 538 hotels under contract in the Middle East and 62,192 rooms in 321 hotels under contract in Africa. The Middle East and Africa also saw sharp jumps in rooms under construction, up 42.5% and 42.8% respectively.
Performance metrics dip in Middle East, grow in Africa
While pipeline numbers are robust for the regions, the key performance indicators were negative in the Middle East and mixed in Africa for the month of February, according to STR data.
Revenue per available room dropped 15.2% to $128.12 year over year for Middle Eastern hoteliers in February, fueled by a 5.3% drop in occupancy to 70.2% and a 10.5% drop in average daily rate to $182.45.
While African hoteliers suffered a mild drop in occupancy (down 2.5% to 56.1%), a 8.1% jump in ADR to $105.16 drove RevPAR up 5.5% to $58.95.
Momentum building for Iranian hotels
After decades of isolation, Iran seems to be opening up to international hotel companies, writes HNN’s Terence Baker, and the fact that the country currently has no branded product means the potential for growth is that much more substantial.
A combination of high population and low supply might be tantalizing, but Baker writes that significant barriers remain, including challenges working with the Iranian government and finding the right partners in the country.
Rouzbeh Pirouz, chairman of Iranian investment firm Turquoise Partners, said it could be difficult for international hotels.
“Getting the right management and employees in place is not easy. Management can be unsophisticated and prone to change,” Pirouz said.
Training and issue in Kenya
A recent survey from Utalii College in Nairobi, Kenya, found that 70% of the 400,000 staff members in Kenya’s hospitality industry lack professional training, according to Standard Digital. The findings were more favorable for supervisory- and management-level staff.
But officials with the Kenya Association of Hotelkeepers and Caterers pushed back on the survey’s findings, saying the lack of formal training means less because employees have acquired on-the-job experience.
Deals and development
- Meliá Hotels International has announced plans to open the Gran Meliá Ghoo Hotel, the company’s first property in Iran. The property will be part of the Ghoo, Middle East Diamond development in Salman Shahr.
- Best Western Hotels & Resorts announced the signing of 13 new properties in southern Africa as part of an agreement with Orion Hotels. The first three will open by July 2016.
- Hilton Worldwide Holdings announced The Legend Hotel, located at the Lagos Murtala Muhammed International Airport in Nigeria, is joining the company’s Curio soft brand collection. It marks the first Curio hotel in Africa.
- Hilton officials also announced the first Embassy by Hilton property in the Middle East, the Embassy by Hilton Riyadh King Fahd Road in Saudi Arabia.
- The DoubleTree by Hilton Hotel Van opened in eastern Turkey, marking the brand’s fourth property in the country.
- Meliá announced plans for the 121-room Sol House Taghazout Bay, which will be the first Sol House property in Morocco in May 2016.
- The Anantara Al Jabal Al Akhdar is set to open in Oman in mid-2016.
- Hilton has signed its first hotel in Muscat, Oman, the Hilton Garden Inn Muscat – Al Khuwair.
- Hospitality Management Holdings signed a management agreement for the Corp Muscat Al Muzn.
Compiled by Sean McCracken.