The demand for mid-scale hotel accommodation is increasing, a trend which is set to continue, confirmed experts in the hospitality industry.
The Rezidor Hotel Group vice president business development MEA Elie Milky told Hotelier Middle East: “I would say that over the last couple of years the demand for mid-scale accommodation is increasing, and more and more investors are seeing the attractiveness of the model, as well as that of serviced apartments, be it under mid-scale like Park Inn by Radisson or upper upscale like Radisson Blu Serviced Apartments.
“Lifestyle-select demand is picking up and that’s why we have signed our first two Radisson Reds in the region, in Dubai and in Jeddah. So the market is moving away from the luxury segments.”
The operator’s senior director business development MEA Ramsay Rankoussi added that Qatar will probably see the “highest acceleration in mid-scale development” as the country comes closer to 2022.
“What we have seen now in Doha is a correction of supply moving towards to mid-scale development and we believe that in the next 24 months we will actually witness much more development on Park Inn by Radisson for instance,” Rankoussi added.
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Furthermore, the company’s Park Inn by Radisson brand is the operator’s highest growth brand. Rankoussi continued: “If we look at the active pipeline, at least 50% is translated through Park Inn by Radisson, although the existing operation is probably 15%, so you really see a shift now.
“It has been justified from an investment perspective: it is financially more efficient, it’s more appealing to develop and there was a gap in the market where there was real demand for that kind of accommodation at that price offering," he added.
Read the full interview with Milky and Rankoussi in the April 2017 issue of the magazine.
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