While the Wyndham Hotel Group may be largely known in the region because of its Ramada brand, when it comes to expanding into the mid-market segment, the operator is only just beginning its journey. The group is, as its regional vice president Ignace Bauwens describes, a “giant that is about to wake up”.
Bauwens says that Wyndham’s core strength lies in the mid-scale and economy segments, and as Dubai and other destinations within the GCC continue to mature, the need for its portfolio of brands will become more relevant.
He tells Hotelier: “Mature markets such as Dubai, Doha, Abu Dhabi, Riyadh and Jeddah et cetera have tremendous opportunity to move into the mid-scale and mid-market brands.”
“You stlll see a big growth in the luxury brands. But owners in the region have evolved as well,” he says.
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“We have to play by what the consumer looks for today, and that is more affordable hotels, not only because they travel differently but also because they travel more than ever today,” he says.
He adds: “Today people travel more, short trips with short flight times. The three-four hour flight time radius is where the evolution has taken place.”
“Emirates, Fly Dubai, Qatar Airways or Air Arabia have connected this part of the world with more affordable airlines. Fly Dubai has been a big success; Asian low cost carriers have played a large role. So now, billions of people are connected to this part of the world within a four-hour flight time radius,” he says.
Travel patterns determine the sort of accommodation today’s travellers expect, according to Bauwens. He adds: “These are guests who look for a reliable brand and who look for a quality hotel product at the same time. Out of the 18 brands in our stable, our biggest strength is in the economy, mid-scale and upper mid-scale brands.
He gives a quick snapshot of the new brands that are set to make their Middle East and North Africa debut: “This summer, the 650-room Tryp by Wyndham in Dubai and the mid-scale 450-room Wyndham Garden in Manama are opening. Another Wyndham Garden will open in Dammam, and for early next year, the Wyndham Garden Inn Ajman will be going live.”
And it won’t be too long before Wyndham introduces its most popular hotel brand to the UAE – the Super 8 motels.
Bauwens declares: “The Super 8 and Days Inn brands, which play in the economy segment, will be announced very soon. The Super 8 brand has taken off successfully in China and it is the largest brand for the company in terms of operating hotels in the world – with 2,793 of our 8,000+ hotels being Super 8s. We have one [Super 8] in Saudi Arabia, and we will announce a Days Inn and Super 8 for the UAE very soon, and you will see more of them [Days Inn and Super 8 branded hotels] because the market is ready for these new brands.”
Bauwens’ early days in the region saw him open the Ibis and Novotel World Trade Centre Hotels in Dubai at the turn of the century. He said : “When I opened the first mid-scale in Dubai 15 years ago, the dialogue that we had with HE Helal AlMarri was that Dubai would need more mid-scale hotels.
“But owners also look for an ROI when they invest in a hotel. Add to that the increasing prices of land in key locations due to Dubai’s exponential growth, it meant it became quite expensive. This made it challenging for owners to build a mid-scale hotel, when you looked at the financial model of such properties,” he elaborates.
“To counter the trend, Dubai took a stand when HE Helal AlMarri took office together with HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai; and the two leaders brought owners and operators together to discuss the future of economy and mid-scale brands.”
“A Royal Decree was subsequently then passed which exempted them [mid-scale properties coming to the market] from the Dubai Municipality tax. This indicated to the owners ‘let us help you for the first two-three years after you open’, which was done to help owners make their returns and bring more affordable brands to the market. Now, more mid-scale and economy brands are coming to the market,” Bauwens reveals.
Bauwens does not disregard a future for the luxury segment, but indicates the golden years of its development may have taken a back seat for now, saying, “I believe in the future of defined brands with limited but good service because guests can choose where they want to stay. When guests travel with their family and want an extended stay, they select a Hawthorn by Wyndham, or when you have a quick overnighter, you book a Super 8.”
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