Dubai-based Action Hotels has selected Novotel as the brand partner for its new hotel project at the Melbourne Convention and Exhibition Centre, according to a release.
The Novotel Melbourne South Wharf property will mark Action Hotel’s fourth hotel in Australia and the third in Melbourne, the company said in a statement.
It is scheduled to open in the first quarter of 2018 with 347 rooms, 30 more rooms than originally announced, making it the second largest hotel in Action’s portfolio.
Action Hotels recently presented highlights of its audited financial results for 2016, indicating a 22% year on year growth in revenue and 16% increase in profitability. The group also reported that the opening and operation of three new hotels in three countries, namely, in the UAE, Oman and Australia, grew the number of total operational rooms by 40% year on year to 2,181.
"We remain focused on driving performance at our operating hotels and our full year results reflect the solid performance of our mature hotel portfolio, as well as the encouraging success of our newest hotels as they gain traction in their respective markets," Action Hotels CEO Alain Debare declared in a statement.
He continued: "We have a solid pipeline of hotels in development with the company’s current expectation of 17 operating hotels by 2019.”
Action said its total operating rooms and development pipeline now stands as 3,214 rooms.
Action has built a long-term strategic relationship with AccorHotels and the Novotel Melbourne South Wharf is the 13th hotel together, with nine operating. Novotel is one of AccorHotels’ midscale brands, comprising 480 hotels and resorts across 59 countries.
Sheikh Mubarak AM Al Sabah, founder and chairman of Action Hotels said: “We are very excited about this addition to our Australian portfolio and the potential of this hotel which will offer premium midscale accommodation with best-in-class customer service and quality in a highly sought-after business and leisure destination.”
From a total operational room count of 1,561 in 2015, Action Hotels ended 2016 having grown the rooms portfolio by 40% to 2,181, with last year's openings of Tulip Inn Ras Al Khaimah in the UAE, Mercure Sohar in Oman and ibis Styles Melbourne in Australia. This constituted a 117% increase since the company's IPO. Revenue and profitability indicators were also up, with total reported revenue up by 22% from US$ 43.5 million in 2015 to $53.1 million and adjusted EBITDA up by 16% from $16 million in 2015 to $18.5 million in 2016.
According to Action Hotels, the outlook for 2017 is likewise positive, with total revenue in Q1 up 14% over the same period last year and average occupancy at its mature operating hotels at 77%, up slightly from last year's 76%.
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