CITYMAX Hotels, the hospitality arm of the Landmark Group, reaffirmed its commitment to the region with plans to set up 10 new hotels in the Middle East and Asia in the next five years.
Russell Sharpe, chief operating officer of Citymax Hotels, who is responsible for operating and ensuring the occupancy of over 1,200 rooms throughout the UAE, said: “Citymax is a home grown brand and the brainchild of our the chairman Mickey Jagtiani, who saw a gap in the market for a mid- market brand.
Landmark currently operates three hotels in the UAE, in Al Barsha, Bur Dubai and Sharjah, each conveniently located to malls.
“While we had the international mid-market brands in the market, we did not have something that was more adaptive to the local market. By that I mean by offering room service, breakfast, catering to parking demands etc. factors that are very important in this part of the world and might not come with the European brand standards.”
Since its launch the three Citymax Hotels in Dubai, UAE witnessed strong round-the-year occupancies of 85 per cent and an annual RevPar growth of eight to ten per cent in the short-term. A large sector of this demand comes from the Sub-continent followed by the CIS and GCC markets which make up for its top three source markets.
“For us RevPar is important but we don’t want to price ourselves outside the three-star category of hotels. This commitment to price ensures that we offer our guests good value for money. This is feasible for us by ensuring occupancies over 70 per cent, by ensuring strong cost controls and that we achieve return of investment,” added Sharpe.
Looking ahead the brand looks to contribute to meeting the UAE’s demand of adding 3,000 additional rooms in the price bracket of Dh150 ($40) - Dh250 ($68) per room night over the next three years.
“The prospect of expanding our footprint in the region with an additional 10 new hotels will allow us to come closer to our growing clientele in the Middle East and Asia. Our plans will complement the 15 - 20 per cent growth projected for the mid-segment hotel industry in 2012-13,” he added.
“As a privately-held company, we also adopt a high degree of flexibility in determining our growth trajectory in the region. Acquisitions, leased properties, or the management-only model are the three business strategies that Citymax adopts while enhancing our presence in the region.
“We are also committed to providing the utmost comfort to our price-conscious traveller. Today we are a three-star brand with strong F&B offerings – a feature which you don’t really find in the other mid-market brands. We want to try and get away from stigma that comes with most three-star hotels. With our three hotels in Dubai, we have managed to remove that stigma and get families, couples and even single women to stay with us and feel secure,” added Sharpe.