Island fever

With a clutch of hotels opening within the next six months, Abu Dhabi will see the emergence of Saadiyat Island as a new destination, says TDIC acting CEO James Pringle

In its latest project update, Abu Dhabi’s TDIC (Tourism Development and Investment Company) identifies 2011 as the ‘year of delivery’, and for the hospitality element, the proof lies in the hotel roll-out starting in the fourth quarter of the year.

“The first hotel to open on Saadiyat will be the Park Hyatt Abu Dhabi, developed by ADNH, and this will be closely followed by the St. Regis Saadiyat which has been developed by TDIC and will also include a residential component,” says James Pringle, TDIC’s acting CEO, whose experience at Port Ghalib and other Kharafi developments, as well as Bechtel, underscores the commitment to delivery.

Only five years since the establishment of TDIC as ‘master developer of major tourism destinations in Abu Dhabi’, the launch of so much hotel inventory is testament to the emirate’s focus in developing a tourism infrastructure, and despite the influx of rooms, authorities are optimistic that demand will keep pace with supply.

Statistics from the Abu Dhabi Tourism Authority bear out this confidence with guest numbers up 11% in the first half of 2011, guest nights up 26% and hotel occupancy rising 10% to 70%.

In addition, the extra competition is expected to put more pressure on room rates in the emirate, boosting affordability, while the packed events calendar including both the F1 and the Volvo Ocean Race will provide a launch pad for those properties newly opened.

Certainly, the influx of beachfront rooms will enhance Abu Dhabi’s reputation as a ‘sun’n’sand’ destination, with the Monte Carlo Beach Club opening at Saadiyat in September, where SBM will be recreating its south of France enclave in its first Gulf foray — four restaurants and lounges, 650m² pool and a spa are among the attractions.

“There will also be exciting launches on Abu Dhabi island and in the Western region, with two new lodges for visitors on Sir Bani Yas opening this year — operated by Anantara, Al Yamm with its 30 coastal villas will offer an intimate feet-in-the-sand experience while Al Sahel in the wildlife park offers a savannah experience,” says Pringle.

“On Abu Dhabi island, later this year we will be welcoming the Westin Abu Dhabi Golf Resort & Spa, overlooking the greens of the Abu Dhabi Golf Club, while the Eastern Mangroves Resort & Spa by Anantara opens early in 2012.”

In room terms, Park Hyatt will feature 306 rooms, suites and villas — making it the largest Park Hyatt in the world — plus four restaurants, spa and The Residence multi-functional facility for business meetings; St. Regis has 380 rooms (plus 291 residential units), eight restaurants and 3000 m² of banquet space; the new Anantara hotel will have 224 rooms (plus 220 apartments), Thai restaurant and spa, Westin features 172 rooms, indoor and outdoor dining, ballroom space and a lap pool, and the Rocco Forte offers 281 rooms, six restaurants, spa, conference centre and underground parking.

The TDIC projects will join other upcoming hotels in Abu Dhabi, including Hyatt Capital Gate at ADNEC (189 rooms, outdoor spa and infinity pool), Jumeirah At Etihad Towers (382 rooms/199 apartments with 12 F&B outlets, Talise Spa, private beach, 74th floor observation deck) and the ADNH-owned Ritz-Carlton Grand Canal (447 rooms/85 villas, waterfront location with beach, eight restaurants, 1500m² ballroom and ESPA spa).

Other notable additions to inventory to come in 2012 include the Regent Emirates Pearl with 377 rooms and 80 apartments; the Rotana at Saadiyat (400 rooms), both of which are being developed by TDIC, plus a three-brand hotel complex from Rotana at Capital Centre (800+ rooms), under development by ADNEC.

New beginnings
Given the fact that TDIC has announced it will explore alternative funding options after postponing a bond sale, plus a widening net loss and reduced budget, the launch of so many of its projects will be concrete proof of its commitment, and one that sets the scene for Abu Dhabi to achieve greater prominence as an upscale destination.

“While all of TDIC’s hotel projects that are scheduled for opening in 2011 and during early 2012 will be going ahead as planned, as a commercial developer, we are regularly reviewing our portfolio to ensure the economic sustainability of our projects … and will be sequencing the roll out of future projects in line with market conditions,” confirms Pringle.

What is certain is that Saadiyat will become a name to play with in tourism terms as the island builds destination awareness ahead of the opening of its flagship attractions such as the Louvre and the Guggenheim museums.

“There is a certain buzz as this year will be a significant milestone in the emergence of Saadiyat as a tourism destination,” confirms Pringle. “It is the biggest year of delivery to date as many of the island’s projects become operations — as well as the two hotels and beach club, we will see the arrival of a new exhibition space in the Cultural District which will be the new home of the Abu Dhabi Art Exhibition from this year.

“The pavilion has an iconic dune shaped structure designed by Foster + Partners — who are also designing the Zayed National Museum — and it is currently being re-constructed on Saadiyat following display at World Expo 2012 in China last summer.”

Meanwhile, Pringle acknowledges that marketing both the Abu Dhabi and Saadiyat Island names is vital to the success of development in the emirate, and points to the ongoing success of the government’s integrated strategy.

“Being wholly owned by ADTA, TDIC is able to align with that organisation’s broader marketing and promotion of Abu Dhabi around the world,” he explains. “Abu Dhabi’s Tourism Development and Investment Company has, and will continue to have, a presence at the international travel trade shows, as well as working with tourism partners such as Troon Golf and Shangri-La, to market our projects worldwide.”

Pringle also stresses that the ‘name game’ was an essential element of painting the Abu Dhabi picture around the world.

“Some of our hotel projects are wholly owned by TDIC while others are joint venture partnerships — overall, working with global hospitality brands and families, with their known names and existing marketing, is an important part of the government’s strategy to accelerated the development of hotel rooms,” he concludes.