Marriott’s MENA region defies subdued trend by registering 20 per cent growth in sales for 2008
ACCORDING to Ed Fuller, president and managing director of International Lodging for Marriott International, “2008 was a spectacular year and a record breaker until the last couple of months. After seven successive growth years, it was only in the last three months of 2008 that we started to feel the pressure in certain pockets.”
“Obviously we are feeling the effects of the recession, but it is not consistent around the world. In Dubai we are still seeing extremely good occupancies although we have seen lower rates. Looking ahead at 2009, we are actually seeing a couple of markets that are ahead of 2008, like Saudi Arabia,” said Fuller.
“The other good news is that we are going to open 52 international hotels this year, with about 25 properties in Asia including India, China and Thailand. This year we have already opened one in Bahrain and by next year will have another five to seven properties opening in this region alone.”
The company announced its latest project in the UAE at the Arabian Travel Market in May - a 1,600 room hotel valued at Dh1.8 billion that Emirates Airline and Group is now building in downtown Dubai. Marriott will operate the Park Towers property under its JW Marriott Marquis luxury brand.
The first of the hotel’s twin towers is scheduled to open in 2011, and the second in 2013, executives for the two companies told a news conference. Marriott currently manages five hotels in Dubai and said it plans to add eight more in the emirate by the end of 2011.
“Marriott today has 19 brands, all not used internationally which gives us the capability to deal with different markets, different segments and different niches, but it takes a lot of time and relationships to plan the opportunities and the hotel we just announced with Emirates is based on relationships,” said Fuller.
“A downturn gives us an opportunity that we may normally not have, because during a downturn a lot of independent hotels look for brand, and that is what Marriott is all about, branded hotels positioned in the market.”
“The Middle East region might see two conversions, hotels that were not planned to be branded and that’s opportunity. So, we understand there are going to be cycles, and there will probably be another one somewhere down the line, but it doesn’t change our process. It can slow a project, but it won’t eliminate it,” he added.
In recognition of the expanding presence in the Middle East and its anticipated expansion in Africa, Marriott International has announced a new regional headquarters set to open in Dubai by 2010. The new regional office will be responsible for the operations, finance, sales, marketing and human resources for five of Marriott International’s hotel and resort brands in the Middle East and Africa, including its JW Marriott, Marriott, Renaissance, Courtyard by Marriott and Marriott Executive Apartments brands.
The company plans to continue development of its mid-scale brand, Courtyard by Marriott in the region. “We currently have two Courtyards in the region and a number of others under development. We have 60 Courtyards outside the United States and 800 in the United States and we really think that is one of the growth tiers for the company. We are not in the budget market and our most economic brand is the Fairfield Inn by Marriott and we are just beginning work with it in Mexico and not in this region at this moment.” he said.
The company also plans to launch its new boutique brand ‘Edition’ and will have three new hotels open by the end of 2009. “Boutiques are important for Marriott because they create a younger buzz than traditional business or leisure travel do.”
Ed Fuller was also at the WTTC Summit in Florianópolis, Brazil, to receive the Global Tourism Business Award given to Marriott International in the 2009 Tourism for Tomorrow Awards. The global award recognises the company’s achievements in demonstrating sustainable tourism practices, including the protection of natural and cultural heritage, social and economic benefits to local people and environmentally friendly operations.
“Now, more than ever, sustainability and environmental stewardship are good for the planet, good for business and are vital to the future of travel and tourism,” said Fuller on accepting the award.
By Shalu Chandran