Each week, Hotel News Now provides a news roundup from a different global region. Today’s compilation focuses on the Middle East/Africa region.
Preliminary September data for Dubai
Preliminary September data indicates growth in all three performance measures for Dubai, according to STR Global, sister company of HNN.
Based on STR Global daily data from September, preliminary data for the emirate includes:
- increases in supply (6.8%) and demand (16.3%);
- an 8.8% jump in occupancy to 75.3%;
- a 6.1% increase in average daily rate to 733.36 Emirati dirham ($199.67); and
- a 15.5% rise in revenue per available room to 552.50 Emirati dirham ($150.43).
Supply ramping up again in Dubai
As performance escalates in Dubai, so does supply. A number of hotels are due to open in the short run, but the sector is expected to maintain its positive performance, according to a Reuters UK report.
Dubai developer Nakheel will restart work on part of one of the three palm-shaped islands that came to symbolize the excesses of the emirate's boom years, the report reads.
Seller’s market emerges in Dubai
Yields for real estate in Dubai have compressed and investors are now open to acquiring assets at yields closer to emerging Europe and higher than established markets such as Moscow, according to Jones Lang LaSalle’s “2013 Middle East and North Africa real estate investor sentiment survey.”
The survey indicated strong demand among regional investors for Dubai real estate, leading to the creation of a seller’s market. While some interest for land has returned in this year’s survey, most investors continue to prefer income-producing assets to development.
Africa rewards patience
All signs point toward Africa as an emergent hotel hot spot, but investors and operators need to be equipped with a good dose of local know-how and patience, hospitality experts at The Hotel Show in Dubai said, according to a report from HNN correspondent Nicole Water.
During the first eight months of the year, occupancy for Africa was up 1.6% to 55.3%; ADR was down 2.6% to $110.96; and RevPAR was down 1.1% to $61.35, according to STR Global. Occupancy growth is being driven by continued recovery years after the Arab Spring, while rate has been slowed by recent episodes of volatility throughout the continent as well as economic uncertainty in South Africa, according to Naureen Ahmed, manager of marketing and analysis for STR Global.
Mangalis invests in Africa
Mangalis Management Group plans to invest $507-million investment in building new hotels in 15 sub-Saharan countries in Africa, according to a Ventures Africa report.
The company is constructing 2,200 rooms across 15 properties. Founded in 2011 by successful West African conglomerate Teyliom International, MMG is the hospitality management arm of Inaugure Hospitality Group.
New Africa JV formed
Warwick International Hotels Group and its African affiliation partner Recreation Africa Group have formed a joint venture company called Warwick International Hotels Africa Limited, which will be based in South Africa.
Deals and development
- Hilton Worldwide and Transnational Corporation are planning the 350-room Hilton Lagos in Nigeria. No opening date was announced.
- Wyndham Hotel Group has signed an agreement with R Hotels for the 188-room Hawthorn Suites by Wyndham Dubai, which will be part of the waterfront Jumeirah Beach Residence development.
- Oásis Atlântico Hotels & Resorts has opened the 338-room Atlântico Salinas Sea Resort, at the resort of Santa Maria on Sal Island.
- Shaza Hotels has announced new hotels in the Middle East: the 140-room Shaza Jeddah in Saudi Arabia that is expected to open in 2017 and the 203-room Shaza Amman in Jordan that is expected to open during the second quarter of 2014.
- Meliá Hotels International has announced the 100-room ME by Meliá Dubai, opening in 2016.
- The 72-room Park Hyatt Zanzibar in Tanzania is expected to open in January 2014, and the 144-room Hyatt Regency Arusha in Tanzania is expected to open in 2016.
Compiled by Shawn A. Turner.