Hotel Rates
Continued investment and the marketing of Oman as a destination is also crucial to increase hotel rates in Muscat in 2011, says Al Lawati. At present rates are strong, with Muscat reporting the highest ADR for January 2011 out of six markets analysed by STR Global.
Average rate was US$283.93 in Muscat, compared to $270 in Riyadh and $232 in Dubai.
“Our regional hotels have experienced high demand this winter and early summer and are trading at rates that exceed four- and five-star hotels in other cities where discounting is prevalent,” comments Al Lawati.
| Advertisement |
New supply will have an impact on this, however, he concedes.
“We are seeing many hotel new builds in Muscat and the major cities and this competition across the range of two- to five-star properties will lead to greater price tensioning in the market.
For example, in Muscat the opening of the City Seasons Hotel, along with several smaller hotels and apartments, and the Sheraton’s reopening will see around 1200 additional rooms come on line this year,” says Al Lawati.
“Away from the major cities, 2011 will see resort hotels open at Muriya’s Jebel Sifah and Salalah Beach Resorts, adding to the Millennium Hotel developed by Omran and opened last December, as well as the Sahab Hotel which has just opened its doors at Jebel Akhdar,” he adds.
The added inventory is necessary because of the present supply shortfall, which has helped keep many projects on track despite the global financial crisis
“The industry’s goals are ambitious across all activity areas,” comments Al Lawati. “We want to see investment in regional infrastructure and services, as well as greater effort on industry skills and capacity development so that progresses on from its current hospitality focus to one that is more robust. This will require generational changes in the way we market, do business on line, and fulfill travel outcomes.
“Omran will make a substantial positive difference,” he concludes. “We have around 10 projects in progress and these will deliver next generation resorts and hotels. We also project manage the Oman Convention and Exhibition Centre which, with its hall, break out rooms, business centre and hotels, will enable Oman’s bid for global business and cultural events.”
About Omran
Omran is Oman’s leading tourism-related investment, development and management company, mandated by the government to deliver major tourism projects in line with its vision of positioning tourism as a major economic driver of the future.
Its growing project portfolio is worth US $10 billion, consisting of 10 projects under development or in operation. One of the most high profile of these is the Oman Convention & Exhibition Centre in Muscat, which will include 25,000m² of exhibition space and room to sit 10,000 people in the first phase.
The site will also feature a business park, four hotels comprising a total of 1000 rooms and a shopping mall. As Oman’s first international-standard convention centre, it is designed to establish Muscat as a regional destination serving the MICE business.
Omran is also working towards forming more than 20 different joint venture projects in the tourism development arena.
Asset management is a key business area for Omran, which owns hotel properties such as Al Bustan Palace and InterContinental Muscat — the site of which will be redeveloped to replace the hotel with three new brands — the W, Westin and Element in partnership with Starwood Hotels and Resorts.
Omran’s asset management portfolio currently contains nine properties — which represent a total of 700 plus hotel rooms.
Search our database of more than 2,700 industry companies
