Rotana, the Abu Dhabi-based hotel chain, is to invest $800m in 2011 with the launch of seven new properties, the company said on Monday.
The firm, which operates 70 hotels across the MENA region, is slated to open six new properties in the UAE over the next eleven months, making it the emirates’ largest single hotel player with 33 hotels under management.
“The last few months have seen the hospitality industry in the Middle East and Africa registering positive growth. We see that momentum being sustained as general business conditions improve across the board,” said Selim El Zyr, president and CEO, Rotana, in an emailed statement.
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Privately-held Rotana is also scheduled to open one new hotel in Qatar, part of an ambitious expansion plan that will see the group operate 12,515 rooms worldwide by the close of 2011.
Its expansion plan will generate 3,500 new jobs, the company said.
Rotana is forecasting an average occupancy rate increase of nine percent across its properties in 2011, it said in the statement.
The chain recorded an average occupancy rate of 74 percent in 2010, backed by investments in feeder markets such as Eastern Europe, China, Malaysia and Hong Kong.
“All our properties across all destinations performed well, with some meeting their targets and others surpassing theirs,” said El Zyr.
Lebanon was the chain’s best performing destination in 2010, he added.
Rotana’s self-stated goal is to have a hotel in each key Middle East and African city, though it has not specified a timeframe for this expansion.
El Zyr said the chain was mulling investment opportunities in Iraq, and further properties in Lebanon, with a specific focus on the underserved mid-market sector.
“Location is our main focus when it comes to deciding on managing a property. We see a lot of potential in Iraq,” he said. “Lebanon is also in our radar, because of a booming tourism sector spawned by reforms. Plus, Qatar’s triumphant World Cup 2022 bid offers plenty of opportunities that we are keen on taking advantage of.”
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