Hotel franchise model will be the future

Veteran hotelier and current general manager of the First Central Hotel Apartments, Wael El Behi feels that more owners will adopt the franchise model of managing their hotels.

He told Hotelier Middle East: “Owners are more hands-on with their business and want to know what the contribution to the brand is. If you bring in a hotel and call it XY by Marriott or Starwood, definitely the asset value will increase.”

He added: “At the end of the day the owners are into the business of making money. So this business model is in the process of getting bigger and bigger.”

The company currently has one operating property - the 524-key First Central Hotel Apartments located in Tecom, Dubai.

El Behi gave details of the other four properties the group is undertaking. “The upcoming properties are two boutique hotels on The Palm Jumeirah, both four-star. We also have two new properties in Business Bay, 283 keys and 439 keys, by the canal not far from The Oberoi Dubai.”

“We are mulling over appointing a reputed hotel brand, either Marriott, Accor, Hilton etc. but on a franchise model because we can manage with their help. I think this business model is becoming well-developed in Dubai."

Shedding more light on the boutique hotels on The Palm Jumeirah El Behi said: “The properties will be 208 keys and 206 keys each. They will be full-fledged hotels with licenced F&B outlets, gym and spa which will be ready by the beginning of 2018.”