Who's Expanding in the Mid-Market?
Rotana Hotels executive vice president & chief operating officer Omer Kaddouri acknowledged the lack of supply of mid-range hotels in Dubai and said Rotana was hoping to expand its own presence in this segment.
“In mature hotel markets, mid-scale and budget accommodation comprises more than half of the market’s rooms inventory, however, in Dubai, the five-star hotels dominate; they have a market share exceeding 60% and about a 50% of pipeline supply as mentioned in previous studies and reports,” said Kaddouri.
“Dubai as a destination needs now to focus more on mid-scale and budget accommodation in order to support the tourism vision. As an operator, we strongly believe that waiving the tax will make Dubai even more popular and will attract new markets. The budget conscious traveller is an increasingly important market in the Middle East but remains grossly under-serviced. Currently, Rotana operates one hotel under the Centro brand and has more in the pipeline, to be announced soon,” he revealed.
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At Premier Inn ME&A, managing director Darroch Crawford revealed a potential six further sites in Dubai.
“Premier Inn has ambitious plans for further expansion in Dubai, with four new sites fairly advanced in our thinking and another two under consideration,” said Crawford.
“I therefore welcome the DTCM proposal to waive the 10% municipality fees on new properties as this will make projects more viable in the early years and help to combat the issue of high and rising land prices.”
Rezidor Hotel Group’s director of business development MEA Elie Milky said now was the time to take advantage of a “phenomenal opportunity” in an under-supplied segment, with a 300-room Park Inn by Radisson under development in Dubai already.
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