Hotel operators have outlined plans to enter Iran following July’s historic nuclear agreement, which will see international sanctions lifted in exchange for Iran reducing its uranium enrichment capacity. The deal — between Iran and the US, Britain, France, Russia, China and Germany — follows nine years of discussions, and according to Iran president Hassan Rouhani, has “opened a new chapter” in Iran’s relations with the world.
Prior to the Islamic Revolution in 1979, there were a number of international operators, such as InterContinental Hotels Group (IHG), Hyatt Hotels, Hilton Worldwide and Starwood Hotels & Resorts operating in Iran. However, in recent years they have been prohibited from signing deals due to sanctions, a lifting of which could pave the way for the opening up of business and tourism.
The world has been watching Iran since the signing of the initial deal in November 2013, during which the country accepted strict constraints on its nuclear programme for the first time in a decade in exchange for partial relief from sanctions. Since then, there have been several trade missions from key European countries, providing a valuable insight into a destination, which has long been closed off.
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Following a recent visit to the country, Christopher Hewett, associate director of TRI Consulting, reports: “The signing of the initial agreement in November 2013 resulted in a surge in hotel occupancy levels, which increased from 58% in 2013 to 79% in 2014.
“However, the industry’s isolation from the global hospitality and tourism market over the past 30 years has left most of Tehran’s hotels old, outdated and in desperate need of improvement. Not only in terms of refurbishments and renovations, but also for the knowledge and expertise of international hotel developers and operators.
“With Tehran’s hotel market offering a minimal 96 hotels (compared to Dubai’s 657 hotels), of which only 16 are classified as four- and five-star, the opening of Iran’s economy presents enormous opportunities.”
As the first hotel management company to announce its expansion into Iran, Rotana Hotel Management Corporation’s president & CEO, Omer Kaddouri, already has four properties under development.
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