“Nevertheless, in order to maintain the market share, where in fact we grew compared to the previous year, we had to drop our rates to stay competitive. This affected the overall RevPAR adversely, yet the increased occupancy ensured great performance throughout our 11 F&B outlets, which contributed more than 60% to total hotel revenue,” he adds.
And although Fujairah-based Le Méridien Al Aqah Beach Resort faced similar challenges, the resort managed to surpass its own targets by 2%. “Our occupancy levels have been healthy year-on-year despite the challenges in 2015. The RevPAR performance was slightly affected, however we have managed to retain the top spot on our destination competitor set,” reveals Patrick Antaki, complex general manager, Le Méridien Al Aqah Beach Resort, Fujairah and Al Maha, a Luxury Collection Desert Resort & Spa.
Look to the future
Hotel developer Resources for Leisure Assets (RLA) reports that the prospects for Northern Emirates are massive, and the firm is working on a few projects that exemplifies that belief. “Without doubt the Northern Emirates can be the unspoilt leisure destination without the hustle and bustle of Dubai and Abu Dhabi. Hotel developments are feeding off the notion of the ‘emirates being leisure orientated’ and therefore we are seeing a lot of focus on properties being designed as the perfect escape for families and the luxury escape from Dubai,” says Roger Allen, CEO of the development firm.
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“It’s fair to say that the Northern Emirates’ hospitality development has gained tremendously from government investment in tourism, whilst this has been supported by significant improvements in the localised infrastructure such as residential, entertainment, shopping malls and mixed-use development,” adds Allen.
The pipeline for the Northern Emirates is growing. RAK TDA’s Mattar adds: “Ras Al Khaimah has strategically planned the expansion of the hospitality sector in preparation for the increasing number of tourists. These plans include an extension to the Cove Rotana Resort by 147 rooms, and to the DoubleTree by Hilton Hotel Resort and Spa Marjan Island by 240 rooms. We also have plans to launch hotels such as the Santorini Hotel by Bin Majid with 410 rooms, Golden Tulip with 104 rooms and Citymax Hotel with 204 rooms.”
Sona shares further details: “2015 also saw the opening of 1,139 keys, with Sheraton Sharjah (349 keys) Fairmont Ajman (254 keys) and Millennium Fujairah (221 keys) as the biggest properties opened.
“The future supply of the Northern Emirates appears to be healthy with more than 5,509 keys in the pipeline to 2019 with Ras Al Khaimah and Sharjah leading the new pipeline with 43% and 25% respectively of the total new supply.”
He adds: “Ajman is expected to accommodate an extra 807 keys by end of 2017, early 2018, potentially diluting demand further, as new hotels will provide promotional rates to attract business and gain market share. The future for the Northern Emirates is likely to see higher occupancies as hotels will feel the pressure and will attempt to reduce rates to maintain a consistent level of demand.”
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