Saudi Arabia-based MENA Hotels and Resorts, part of Al Hokair Group, has embarked on an aggressive growth strategy that it hopes will position it head-to-head with the region’s leading homegrown operators, such as Rotana and Coral. Louise Birchall reports
MENA Hotels and Resorts, the hotel-management arm of KSA-based developer Al Hokair Group, plans to become the region’s leading homegrown operator through an aggressive expansion plan involving conversions and new builds.
Owner and developer Al Hokair Group has 28 existing hotels comprising 3500 rooms in the GCC managed by operators including Holiday Inn, Golden Tulip and Novotel as well as a minority currently run under the MENA Hotels and Resorts brand.
| Advertisement |
MENA Hotels and Resorts director Fadi Mazkour (below left) tells Hotelier that around 50% of these owned hotels will be reflagged.
“By around 2013 we should have completed the plan,” he adds, saying that most of the reflagged properties would be in Saudi Arabia.
“There is a renovation plan of more than SAR 150 million (US $40 million) which will be put into these hotels for rebranding,” he reveals.
In a statement the group added: “We will continue to work in partnership with hotel brands like Golden Tulip, Novotel and Hilton Garden Inn, but the focus for Al Hokair Group has moved to developing MENA Hotels & Resorts, our hotel management company which was established in 2008.”
Rapid growth
There are already three hotels operational under the MENA brand, all in Riyadh: the MENA Hotel Riyadh was the first to open under the brand in 2009, followed by the 400-key, five-star MENA Grand Khalidiya, Riyadh and the MENA Suites Olaya, Riyadh which opened last year.
By the end of 2012, the group hopes to have brought this number up to five with the launch of the MENA Suites Hotel Al Khobar and a boutique 90-room hotel in Riyadh.
“By 2013 we’ll have about 10 properties operating and by 2014 we’ll have brought this up to 15-16 properties operational,” declares Mazkour.
Out of these, Mazkour says several will fall into the five-star MENA Grand category, while the rest will be divided as 70% four-star MENA hotels, and 30% MENA Plaza serviced apartments targeted at families and longer-staying clientele.
Guest markets will be “at least” 60% international business travellers, with “internal short visits or breaks from Saudi Arabia and other neighbouring GCC countries” making up the rest, according to Mazkour.
In terms of locations: “The majority of our hotels will be in Saudi Arabia, Jeddah, Al Khobar, Dammam, Riyadh, Yanbu and Dubai.”
“KSA is definitely a growing market compared to other GCC markets. The indication is very clear that hotel expansion and investment is happening in Saudi Arabia,” he added.
Outside the Kingdom
However, the operator is also venturing outside the Kingdom, with signed properties under construction in Oman, Jordan and Lebanon.
“There is no indication towards the opening dates; there are some delays in construction so they will not be due in 2012 for definite, it will be more like 2013 or the beginning of 2014,” explains Mazkour.
In addition, there are plans to restart construction on two signed MENA-run hotels within Al Hokair Group’s Al Sahara Kingdom project in Dubailand next year.
The Al Sahara Kingdom has been master-planned over a 50 million ft² area in Dubailand, the stalled multibillion-dollar real estate development backed by Dubai Properties Group (DPG).The project includes two four-star hotels, an indoor theme park, restaurants, residences and a retail souk.
“We will try to [restart construction] of the hotels and theme park in 2013, combined with the apartments and villas.” says Al Hokair Group deputy CEO Sami Al Hokair.
Furthermore, Mazkour adds there will be a MENA hotel in Abu Dhabi – though it has not been signed yet. The chain is also eyeing Mecca and Qatar.
“We don’t have any firm contact [in Qatar] yet but we’re under negotiation with a couple of investors.”
Article continues on next page ...
Search our database of more than 2,700 industry companies
