RAK Hospitality Holding (RAKHH) - a hotel, F&B and logistics operator in Ras Al Khaimah, are going to adopt a cautious approach to growing its offering in the country.
The group recently announced that it would bring the Kona Grill concept from the US – it’s first venture outside Ras Al Khaimah.
RAKHH CEO Yannis Anagnostakis told Hotelier Middle East exclusively: “At this stage we find great value within Ras Al Khaimah and our mandate is to continue growing as the emirate grows. We believe we will be called on the filling of certain gaps with the product offering of Ras Al Khaimah.
He added: “We are taking a cautious approach, and deploying capital within the borders of the emirate."
With the launch of the Kona Grill concept RAKHH will expand outside Ras Al Khaimah for the very first time and Anagnostakis divulged the company expansion strategy. “We have considered the GCC and we have opted, as part of our business plan, to first focus on the UAE.”
“Ours is a very cautious approach and we believe to have found the right partner to take our offering outside Ras Al Khaimah. There is a competitive environment in F&B [in UAE], and so, it will take us some time to stabilise the concept. So, GCC remains something distant, but within our radar screens", Anagnostakis told Hotelier.
On the hotel side of the business, Anagnostakis said that refurbishments were part of the strategy till the end of this year. “2015 and 2016 were earmarked as years where we would work on our existing assets. We have deployed a significant amount of capital into our existing hotels, beginning with Hilton Ras Al Khaimah (undergoing a major refurbishment and will open at the end of 2016).
“We are ready to embark on targeted refurbishment plans on our Hilton Resort, and we have continued to expand our existing facilities of the Rixos Bab Al Bahr. In the Banyan Tree as well, we are deploying capital in targeted manner,” he said.
“From 2017 and beyond, we will give development opportunities to properties within the borders of our emirate,” he added.
RAKHH’s hotels have performed significantly well during 2015. “We are extremely satisfied to note the performance of our hotels through 2015, we posted a RevPAR growth of 16% and this has continued through to 2016. The first quarter was strong where we posted a growth of 16.4% [RevPAR]."
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