WITH a conference theme ‘Connecting People, Creating Knowledge’, this year’s edition of Arabian Hotel Investment Conference will offer more opportunities for sharing knowledge and insights.
Taking place from May 5 to 6, 2013, at Madinat Jumeirah in Dubai, UAE, this year’s programme includes extensive participation from the top hotel investment industry professionals, who will be discussing the positive outlook of certain markets, as well as addressing the very real issue of country risk which pertains to doing business within some areas of the Middle East.
One of the main focuses for the conference this year will be highlighting Dubai’s hotel performance and outlook for 2013. According to Jones Lang LaSalle’s latest Hotel Investor Sentiment Survey, Dubai is the best performing hotel market in the Middle East and North Africa region and is the one to watch in 2013. Since 2009, Dubai hotels have reported a strong recovery in occupancy and average daily rate (ADR) levels with growth in demand outpacing the addition of new supply. Jones Lang LaSalle said in the report that Dubai’s total capacity will witness a big jump from the 54,300 rooms currently available with an additional 4,500 hotel rooms expected to be completed in 2013, and a total 11,000 units in the pipeline through until 2014.
Gabriel Matar, regional director of Middle East and Africa at Jones Lang LaSalle Hotels, will be speaking at a key panel discussion, titled ‘The Profitability of a New Build In Dubai’, looking at the key areas in Dubai where the potential for hotel investment lies, and what is the anticipated profitability. It will also highlight what, where and how should investors build today and what are the returns they can anticipate for the next five years.
On a broader view on the region, STR Global has also published their Global Performance Report for January 2013, highlighting that the region reported an 8.2 per cent increase in occupancy to 59.8 per cent, a 1.3 per cent increase in ADR to $182.81 and a 9.6 per cent increase in RevPAR to $109.29.
In line with that, a special panel discussion at AHIC has been dedicated to discuss ‘Country Risk in the Region’, helping investors know how to plan their investment strategy with the current political uncertainty in some countries of the region. The session will be presented by Rachel Ziemba, head of emerging markets at Roubini Global Economics, and panellists include: Salman Haider, executive managing director of Hotels at Majid Al Futtaim Properties, Christophe Landais, managing director of Middle East at Accor, Paul Pisani, senior vice president of Hotel Development at Corinthia Hotels and Hadi Nezir, chairman of UB Holding.
Another panel discussion will focus on how funding a hotel project is different to other real estate projects. Titled ‘What You Need To Know About Funding Hotels’, the session will include Lo’ai B. Bataineh, deputy general manager, Investment and Development at Oman Arab Bank, Gabriel Von Bonsdorff, assistant vice president of Investments at IFA Hotel Investments and Ivor McBurney, vice president finance – development projects, Kingdom Hotel Investments.