HMH bullish as first quarter RevPAR rises 10%

Hospitality Management Holdings (HMH) has reported a 10% increase in revenue per available room (RevPAR) in hotels it operates in the first quarter of the year.

The company also saw a 7.2% year-on-year rise in average room rates (ARR) compared to the same period last year.

CEO Laurent Voivenel said the company had witnessed a consistent increase in demand across all segments and highlighted a number of destinations that performed particularly well. Among them were Coral Beach Resort – Sharjah, Corp Dubai Al Wasl Al Khoory Hotel, Coral Dubai Al Barsha Al Khoory Hotel & Apartments, Coral Dubai Deira Hotel and Ewa Dubai Deira Hotel, all of them averaging at 90% occupancy and above.

He attributed the performance to an integrated sales and marketing approach that helped the brands to reach new markets. “Strategic planning, tapping traditional and online travel agent networks and successful development of new distribution channels are key to driving revenue,” he added.

“Our strategy has been to drive business across all vertical sectors that has given us a steady mix of corporate, long-stay, leisure, e-commerce and FIT segment which in turn kept our figures firm. It is important to recognise that different channels cater to different types of customers, and having an appropriately diversified and optimal mix enabled us to drive improved revenue and profit outcomes."

Looking ahead to the rest of the year, Voivenel added that he was “extremely bullish”. “To sustain our growth in a highly competitive environment, it is absolutely essential to have a stronger grip on our business,” he explained.

“Besides existing markets, inbound tourism to the Middle East from emerging markets is growing rapidly and consistently thanks to the vast global airline network, growth of low-cost carriers, outstanding communication services, et cetera.

“Aside from countries like Russia, China, Korea, India, Indonesia, Malaysia and Brazil, we are tapping into [the] Nordic market. It represents undeniable opportunities for our brands as we are seeing a sizeable increase in the number of guests from there. We anticipate the numbers to go up drastically in the coming years.”