Hospitality Management Holdings (HMH), a Dubai head-quartered hotel management company, has set its expansion plans in motion and will triple its inventory of rooms in UAE by 2020.
The group CEO Laurent A. Voivenel said: "We are in the process of negotiating several exciting projects in the UAE that will boost our existing inventory of keys by three times in the next five years.
"The fact that Dubai overtook London Heathrow as the world's busiest airport proves its -- and the rest of UAE's -- strong tourism potential. Hotel investors as well as operators realise this and are eyeing opportunities for long- and medium-term returns.
“To tap further into the Emirates' high growth potential, we have identified a number of projects in strategic locations that we expect to materialize soon".
Laurent further added that if Dubai is to reach its target of 20 million annual visitors, it will need to diversify its accommodation options with development of more mid-market hotels to attract budget travellers.
HMH is therefore scouting for opportunities for its budget brand ECOS Hotels. He said: "Looking at the market conditions there is a near saturation when it comes to luxury hotels. The market does not need any more luxury hotels at this point.
"Therefore, every single operator is looking at how they can attract the future market meaning the market of tomorrow i.e. the middle class.
“This is why at HMH we have three brands out of five targeting middle class because the middle class that today represents 2.5 billion will by 2025 represent 5 billion around the world. Given the staggering demand we see massive potential for ECOS Hotels that is a 'no frills' B & B brand tying together a unique economical and ecological concept.
It is a smart choice for investors offering strong investment opportunity because of lower construction and operating costs and quick and high return on investment."
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Laurent continued: "Dubai has developed very well over the last two decades and has multiple demand drivers that has positioned it as a leading leisure and business destination globally. Looking ahead it is only getting better with the city adding more new attractions such as branded theme parks and shopping malls, etc.
“Massive expansion of airlines including extraordinary growth of low cost carriers has opened new routes and markets thus bringing in more mid-market travellers. Therefore, Dubai will continue to hold strong beyond 2020."
The group currently features The Ajman Palace Hotel, Coral Beach Resort Sharjah, Coral Deira Dubai and EWA Dubai Deira Hotel in its hotel portfolio.
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