OMER Kaddouri, Rotana’s executive vice president and chief operating officer talks to TTN about the home-grown group’s budget option.
When was the Centro brand launched and what was the reasoning behind it?
Business travel and accommodation for the budget-conscious executive is an increasingly important market in the Middle East but remains grossly under-serviced. This is why Rotana launched Centro Hotels by Rotana back in 2006, which is an ‘essential service’ hotel brand.
We first pinpointed the essential requirements of today’s young business and leisure travellers, who seek both style and finesse, yet at affordable rates - subsequently we improved upon the services and the physical product (the design) catering to these requirements against an international set of benchmarks.
One of the key areas of differentiation for our brand is that our product has been designed to cater to a clearly identified niche within the economy segment in the region, this backed by Rotana’s knowledge and understanding of the regional markets will be a force to reckon with. Centro Hotels by Rotana is a unique out-of-the-box solution for the mid-tier market.
Centro came at a time that ideally positioned it for continuous long-term development, strong operating performance and sustainable growth well in to the future. We are redefining the conventional concept of economical comfort and offering affordable superior class accommodation and hospitality.
How many properties are there now and how are the locations chosen?
Rotana launched its first Centro property in Abu Dhabi, Centro Yas Island. Last year witnessed the opening of the first Centro property in Dubai, Centro Barsha (pictured), and recently we opened Centro Sharjah. Before the end of 2011, Rotana will open the fourth Centro in the capital, Centro Al Manhal Abu Dhabi. Back in October 2010, Rotana announced signing a management agreement for the first two Centro business traveller hotels in Riyadh and Al Khobar in Saudi Arabia. Centro in Riyadh is located in a prime location between King Fahd Road and Olaya Street in the growing business district of Al-Olaya and will offer 160 rooms and suites. As for Centro Al Khobar, the hotel is also located on a prime piece of land on the corniche with unobstructed views of the sea, offering 235 rooms and suites. Both hotels will be targeting domestic tourism which constitutes 75 per cent of Saudi total passenger traffic.
There is a shortage of modern hotels in the kingdom. Demand for available hotel rooms significantly outstrips supply to the background of a booming travel and tourism industry. Our objective is to develop and manage hotel properties to the best international standards which will cater to the needs of the local and regional market, the international traveller and niche markets.
Working towards the opening of 25 Centro properties across the Middle East by 2014, the organisation hopes to meet the demands of a new generation of traveller, seeking finesse and functionality at reasonable rates. Young and fresh, Centro is a contemporary concept that is original in its presentation and dynamic in its offerings.
One of the key areas of differentiation for our brand is that our product has been designed to cater to a clearly identified niche within the economy segment in the region, this backed by Rotana’s knowledge and understanding of the regional markets will be a force to reckon with. Centro Hotels by Rotana is a unique out-of-the-box solution for the mid-tier market.
What is the primary market, is it mainly business travellers or do the properties also attract leisure guests?
As the name indicates, the Centro properties will be located at the heart of business and commercial districts in the major cities across the region. Providing unique living spaces in a contemporary environment, they offer amenities specifically geared to the needs of the travelling executive.
A typical Centro property comprises approximately 250 rooms and suites in combination with a three-meal restaurant, bar, deli take-away, well appointed executive centre, meeting rooms, gymnasium and a swimming pool. At each hotel, the emphasis is on providing guests with essential comforts, together with a wide range of conveniences aimed at helping them conduct their business efficiently.
What are the plans for the future, I know there is expansion on the cards, where will the next properties be?
In addition to what I have mentioned previously, Rotana and SHUAA Capital Saudi Arabia, one of the kingdom’s leading financial services institutions, recently announced completing the acquisition of a prime plot of land in Jeddah through the SHUAA Saudi Hospitality Fund. The land will be developed into 254-room budget business hotel which will be managed by Rotana. It will be branded under Centro Hotels by Rotana and will have a total built-up area of approximately 12,000 sq m. The total cost of the project is estimated at SR160 million ($42 million).