Jumeirah Group, operator of Dubai’s iconic Burj Al Arab hotel, is understood to be in talks to manage Turkey’s oldest hotel as the company moves to double its properties under management.
The hotelier is said to be close to signing a deal to take over the Pera Palace Hotel, an Istanbul landmark, with a view to begin operations this year.
The company declined to confirm the reports ahead of a signed management deal but said it was keen to expand its portfolio in the popular travel spot.
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“Jumeirah is very interested in the Turkish market and is considering a number of opportunities,” a hotel spokesperson said.
The Pera Palace Hotel is one of Turkey’s best-known tourist spots. The property was built in 1892 as the last stop on the luxury Orient Express, boasting Turkey’s first electric elevator.
The hotel played host to famed names such as Mata Hari, the actress Greta Garbo and legendary writer Ernest Hemingway. Agatha Christie is said to have written ‘Murder on the Orient Express’ in room 411.
The hotel reopened in 2010 following a two-year, $30m refurbishment, seeking to recapture its popularity as a tourist attraction. Room prices at launch started at around $240 for a basic room.
Jumeirah Group, owned by Dubai’s ruler, is looking to double its properties under management by early next year.
The firm opened Jumeirah Frankfurt and properties in Abu Dhabi and Rome last year and has plans to open new hotels in Mallorca, Dubai, Kuwait, the Maldives and Baku.
With the addition of Jumeirah Grand Hotel Via Veneto in Rome, the hotelier has five luxury properties under management in Europe, with another planned in Spain in early 2012.
“By the end of 2012 we should have about 22 hotels in operation. But, we will have another 38 signed up,” Lawless said in Dubai in May 2011.
The luxury hotelier’s rapid overseas expansion is reflective of the increasing competition in its domestic market, Dubai, which boasts a string of branded newly-opened brand hotels. But analysts warned the homegrown brand may face challenges as it moves outside the GCC.
“Now that Jumeirah is managing hotels built by other people, as well as in markets in which its name is arguably less well–known than those of its competitors, will really test the mettle of the Gulf operator,” said Guy Wilkinson, managing partner of hotel consultancy Viability.
“Not to mention that it is currently entering certain markets that are severely depressed by the global recession – unlike Dubai."
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