KUWAIT-based Action Hotels has rapidly become a market leader in the field mid-scale hotel development with plans to have more than 1,600 rooms, across a range of budget brands, in operation by 2012. The company is a subsidiary of Kuwait’s Action Group Holdings and began the march of its budget lodging vision in the region after it developed the Ibis Glen Waverly, in Melbourne, Australia, in 2007. The group’s general manager, Alain Debare, explained: 'Our chairman, Sheikh Mubarak Al Sabah identified the potential and the real market niche that mid-market hotels in the region could serve. The proliferation of budget airlines, intra-regional travel and a burgeoning middle class have been key to the development of this market, and the introduction of budget hotels is a natural extension of this growing trend. 'Given the relative youth of the mid-market concept in the region, we have introduced some of the leading hotel economy brands to meet these new market needs and help educate consumers on both the quality and potential for mid-market hotels. 'Additionally, budget hotels are clearly the way to go, you can’t double (occupancy) numbers at a $250 room rate any more. The market has been dominated by a lot of 5 star hotel developments, and this is very much of an underserviced segment.' By the end of 2012, Action Hotels will have a portfolio of nine mid-scale hotels offering approximately 1,600 rooms under Accor Hospitality’s Ibis brand and InterContinental Hotel Group’s Holiday Inn and Staybridge Suites brands. Debare explained that a thorough understanding of the markets where the properties are located is crucial in enabling the group to acquire the best possible locations as is the right choice of operator. 'Our strength lies in developing mid-scale properties in strategic gateway locations. There are certainly a lot of considerations to respect, but the basic premise of the right product, in the right location, at the right time stands strong,' he said. 'The selection of the operator and of the brand is also very market specific. We have close ties with the best operators in the market and we develop the hotels in tandem with the operator requirements to ensure our hotels are successful in their markets'. With the proliferation of low-cost carriers and an ever-growing international business community, the regional market dynamics have shifted from a five-star dominated supply to travellers seeking a comfortable room and personable, proactive service at value rates which has created space in the market. And Debare says the group’s properties are popular with both corporate and leisure travellers, particularly family groups. 'We are all in a cycle of change and the mindset of the Arab national has also changed, with the GCC’s hotel demand fuelled more by inter-regional travellers, as well as business and family leisure travel,' he explained. 'The service model and quality build of our mid-scale hotels fit perfectly here. 'Our properties aim to service the corporate customer and tourist who ‘travel differently’. In our opinion, both leisure and business travellers in the region are placing greater emphasis on having the option for quality accommodation which services their needs at a reasonable cost.' With economy air travel to the Middle East up by around 13 per cent, Action Hotels is keen to explore joint commercial opportunities with carriers such as Kuwait’s Jazeera Airways. And looking to the future, Debare concluded: 'International tourism is steadily gaining momentum following an extremely challenging 2010. 'We have seen that mid-market hotels have proven to be more robust in times of (economic) downturn and we firmly believe in the potential to develop a strong network of affordable accommodation in the region.'
