“He was a perfect partner for us and they bring that local knowledge to the table, local contacts, as well as that investment arm, which is extremely positive.”
Rezidor currently has 10 projects with Al Hokair group “on the table” as well as others in the pipeline. Two of these opened at the end of February; the new-build 150-room Radisson Blu Resort Jizan and the 90-room Park Inn by Radisson Hotel Dammam, which is a conversion project. Another two are to open in Jeddah this month; the 120 room Radisson Blu Plaza Residence, and the Radisson Blu Red Sea Palace Hotel, which will add another 261 rooms.
“That’s a hotel which was close to completion but we’re working with Al Hokair to finish it,” explains Willis, referring to the Red Sea property. He adds that a huge amount of unbranded inventory in Saudi Arabia makes acquisitions an interesting route for growth for the company.
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“Throughout the Kingdom, as well as other places in the GCC, there’s a lot of unbranded inventory, and if an owner has got the desire to take the property forward with a group and brand then that’s an opportunity.”
While organic signings continue to be the main avenue for expansion of Rezidor in the Middle East, Willis hints that the company may be almost ready to go into franchising in this part of the world.
“I think franchise has always been one of the elements of Rezidor’s focus and I think we wanted to increase and improve on that,” he remarks.
“We see opportunities throughout the various areas within the organisation and while franchise is not something that’s actively prominent in the Middle East, I think that will change in the years to come as owners become more astute and more knowledgeable about the industry. That will grow as they want to self-manage but under the umbrella of a branded group.”
While Rezidor’s pedal is to the metal when it comes to Saudi Arabia, Willis is careful to add that the UAE is still key to the portfolio, and presents opportunities for all of the company’s brands.
Demonstrating this point, the first midscale Park Inn opened in Dubai last month, and three more are in the pipeline for Dubai. The 90-key Park Inn by Radisson Hotel Apartments Al Barsha marks Rezidor's 34th property in the region.
“I think [UAE] is very similar to Saudi Arabia. I know people consider them very differently, but if you look at the amount of investment into infrastructure, whether it be the airports, roads or facilities — both locations have diversified. In the UAE it’s not just shopping malls and beaches, the various theme parks and attractions are mega, mega projects.”
The group had a successful 2014 across the entire GCC — even in markets that have been volatile in recent years. Leading this was Egypt (32.3%) and Bahrain (16.1%); both experiencing double-digit growth.
“If you look at Bahrain, it has rebounded very positively I believe. The Diplomat Radisson Blu Hotel, Residence & Spa in Bahrain has a fantastic new ballroom, and when you’re talking about millions of dollars of investment into a market that only two or three years ago looked slightly unstable, hats off to the owners there, who have worked with us fantastically well.”
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