The Rezidor Hotel Group – one of the world’s fastest growing hotel companies – is set for a record year in the Middle East in terms of property openings.
In spite of the global economic downturn, the Brussels-based group has opened five new hotels (representing 1,224 rooms) in the region since January 1, 2009, with another three (1,208 rooms) planned by the year end.
One of the company’s 2009 highlights was the introduction of its mid-market brand – Park Inn – to the region, which saw properties opened in Muscat, Oman and Al Khobar, Kingdom of Saudi Arabia. A third Park Inn opening is scheduled in November on Abu Dhabi’s Yas Island, the home of the inaugural 2009 Formula One Etihad Airways Grand Prix.
According to Rezidor’s CEO and president, Kurt Ritter, the increased mid-market brand openings are indicative of growing regional demand for cost-effective travel solutions.
“Generally, the Middle East is an extremely tough and fast moving market. It has always been very luxury orientated but we are now seeing an escalating trend for mid-market brands such as our Park Inn. This was a natural progression and one which we identified early on as a key growth area,” said Ritter.
This year has also seen the group, which has a combined portfolio of more than 380 hotels in operation or under development in 59 countries, open properties in a host of new Middle East and North African markets including Alexandria and Cairo in Egypt, Al Khobar and Al Madinah in Saudi Arabia and Tripoli, Lybia.
And according to Ritter, Rezidor also plans to introduce two new brands to the region in the next few years, with the planned openings of the designer Hotel Missoni Kuwait due in 2010 and the luxury Regent brand in Abu Dhabi, UAE and Doha, Qatar.
‘The Middle East is an area with great potential. There are many development projects in the pipeline which offer solid investment opportunities for hotel growth. We are also seeing best-in-class business regulation and support networks being established on regional, federal and city levels,” said Ritter.
“In addition, the growing international network offered by regional and international carriers, both commercial and low-cost, means the Middle East is easily accessible from all corners of the globe. As such, our commitment to this region as a core, long-term growth market is well evidenced by our continued investment.”
Rezidor was one of the first hotel companies to put policies in place to deal with the global market downturn, when in August 2008 the company introduced its ‘Hedging for Turbulence’ cost saving initiative targeting a €30 million-a-year expenditure reduction.
But Ritter, on a regional fact finding mission, confirmed the company remains committed to its medium and long-term development strategies.
Rezidor currently operates 22 hotels and 5,649 rooms in the Middle East, with this figure expected to swell to 25 properties representing 6,677 rooms by the end of the year.