Opportunities, challenges, trends
Highlighting key opportunities in the market, Hutchinson said that with the growing public spending in tourism sectors, driven by the ambitious economic diversification roadmaps for the regional economies, including the UAE Vision 2021 and the Saudi Vision 2030, the region’s hospitality sector is on the tip of a tremendous transformation.
Hutchinson cited major upcoming events, such as Expo 2020 Dubai, and tourism initiatives, including the $500 billion Red Sea coastline project, NEOM mega-city project, Al Qiddiya Entertainment City, Farasan Islands, and the 3,000-square-kilometre Amaala luxury destination project in Saudi Arabia, will further strengthen the region’s reputation as an attractive destination for tourists and investors alike.
Speaking about challenges facing the hospitality sector, Hutchinson said that the GCC region is expected to see an additional 58,000 keys entering the market in 2019, with destinations such as Dubai, Makkah, and Riyadh accounting for the highest increases in supply.
“These new stocks will intensify competition leaving further pressure on room rates. As a result, maintaining profit margins will be a key challenge for hoteliers this year,” he said.
On trends, Hutchinson said hotel operators will continue to explore new markets for expansion and they will place a significant emphasis on the development of green and mid-scale offerings.
In addition, improving guest experiences will remain a top priority for industry players and disruptive technologies will unleash new possibilities in product and service offerings.
Hutchinson also said: “Profits management is becoming increasingly important for hotel operators. As a result, they are expected to continue adopting tighter cost control measures through clustering and outsourcing part of their services.”
Continued expansion
Between 2019 and 2020, Rotana will open nine new properties to bring its strong inventory of operational keys to 21,135.
Properties opening in Q2 2019 include Johari Rotana, Dar Es Salaam (256 keys), Bosmal Arjaan, Sarajevo (130 keys), and Dana Rayhaan, Dammam (285 keys).
Hotels to be launched in Q4 2019 include Imam Reza Rotana, Mashhad (272 keys), Al Jaddaf Rotana, Dubai (338 keys) and Slemani Rotana, Iraq (240 keys). In Q2 2020, Rotana will open Centro Amman, Amman (197 keys) and Cayan Cantara Arjaan (329 keys) and Cayan Cantara Residences (489 keys) in Dubai.
Advertisement