(MENAFN- Khaleej Times) Company aims to triple inventory of rooms in UAE by 2020
Dubai — Hospitality Management Holdings or HMH will continue its expansion in the Mena region and open five new hotels in 2015 chief executive officer Laurent A. Voivenel told Khaleej Times in an interview at the recently concluded Arabian Travel Market 2015.
Dubai-based HMH is a fully-integrated hotel management company that prides itself on being the first hotel chain in the Middle East to offer a safe halal-friendly alcohol-free environment.
Its portfolio features properties located in some of the most desirable destinations across the Mena region as well as a healthy pipeline of hotels under development. The company is opening a four-star hotel in Muscat a five-star hotel in Madina its third property in Beirut and two hotels in Sudan this year Voivenel said. Excerpts from the interview:
What is HMH’s strategy in terms of expansion in the UAE?
Capitalising on the UAE’s powerful growth momentum we at Hospitality Management Holdings have set in motion an aggressive expansion strategy in the Emirates. Our goal is to triple our inventory of rooms in the UAE by 2020. And we are proud to use the Arabian Travel Market platform to make this announcement. We are in the process of negotiating several exciting projects in the UAE that will boost our existing inventory of keys by three times in the next five years.
Why is the UAE so significant for your group?
The UAE is at the moment the most promising and attractive ground for hotel development in the Middle East and Africa. It currently has the largest inventory waiting to come on stream with 40102 rooms in the confirmed pipeline. The fact that Dubai overtook London Heathrow as the world’s busiest airport proves it and the rest of the UAE’s strong tourism potential. Hotel investors as well as operators realise it and are eyeing opportunities for long and medium-term returns. HMH is the most credible and leading chain of halal-friendly hotels operating across the Mena region that places us in a very strong position.
What is the outlook for the tourism sector in Dubai?
The hotel sector is certainly benefitting from the resurgent economy as Dubai counts down to 2020 and the city’s skyline continues to evolve with a plethora of new hotels. Dubai is targeting to welcome 20 million visitors a year by 2020 while at the same time aiming to triple the revenues tourism contributes to the country’s GDP. It expects to generate Dh300 billion in tourism revenues by that year.
What is pushing the demand for budget hotels in Dubai?
If Dubai is to reach its target of 20 million annual visitors by 2020 it will need to diversify its accommodation options with the development of more mid-market hotels to attract budget travellers. At HMH we are keen to roll out our budget brand Ecos Hotels. Looking at the market conditions there is a near saturation when it comes to luxury hotels. The market does not need any more luxury hotels at this point. Therefore every single operator is looking at how they can attract the future market meaning the market of tomorrow i.e. the middle class.
How do you foresee demand for destination Dubai beyond 2020?
Dubai has developed very well over the last two decades and has multiple demand drivers that has positioned it as a leading leisure and business destination globally. Looking ahead it is only getting better with the city adding more new attractions such as branded theme parks and shopping malls etc. Massive expansion of airlines including extraordinary growth of low cost carriers has opened new routes and markets thus bringing in more mid-market travellers. Therefore Dubai will continue to hold strong beyond 2020.
What message did you convey to visitors at this year’s ATM?
Few regional hotel management companies can claim to have the local know-how technological expertise and global network at par with HMH. We offer far better value and returns to hotel owners and investors with the right blend of expertise strategy technology and market reach. Having the strongest management infrastructure in place we are able to respond swiftly to any market dynamics and challenges. We have put in place strategic partnerships and alliances with banks corporate companies travel trade consortias and airlines such as the Emirates Skywards that allow us to offer our customers added value.
How significant is 2015 for HMH? What’s lined up in terms of development?
We have some superb openings in 2015. The first one will be Coral Muscat Hotel & Apartments that will be our flagship property in Muscat. The deluxe four-star property is part of a shopping arcade and multiplex and features 88 beautifully furnished apartments including 56 two-bedroom and 32 one-bedroom units. The second spectacular opening will be Coral Al Madina Hotel in Saudi Arabia. The luxurious five-star hotel features 400-plus rooms and suites. In addition we have got two fabulous EWA properties coming up in Sudan. We will also be opening our third property in Lebanon Coral Beirut Concorde Hotel.
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