Luxury focus for Moroccan market
A multitude of luxury hotel properties are under development in Morocco, signalling the start of a new era for the hospitality industry in the country. But some experts believe the market will struggle to absorb the supply, as too many high-end properties become concentrated in one area
Morocco has emerged as one of major areas for hotel development in 2009, with international operators such as Anantara Hotels & Resorts and The Rezidor Hotel Group announcing plans for multiple properties in the country.
Anantara has announced plans for Anantara Marrakech Resort & Spa and Anantara Mogador Resort & Spa in conjunction with Moroccan-based hospitality company H Partners. Both will be luxury resorts designed around Anantara’s villa concept and are due to open in 2011.
Minor International senior vice president development Michel van der Hoeven said: “Three years ago we identified Morocco as one of the key markets to build Anantara resorts. The Anantara brand has a lot of focus on local culture and heritage and Morocco is a key destination where the brand would fit.
“H Partners was one of the partners we were keen to attract and we came together and saw we had the same vision on how to build a resort,” he explained.
“We are looking at additional opportunities with them; they are one of our key partners in Morocco and hopefully we can grow with them. Hopefully, the next opportunity might be in Fez.”
One of the reasons behind Morocco’s appeal to international hotel operators is its geographic location.
“Morocco has potential because of its proximity to Europe; it will be a short-haul, high-end resort destination that is quite well known in Europe ,” said van der Hoeven.
According to Euromonitor International, the majority of inbound tourists to Morocco do indeed come from Europe; in 2007, 60% of visitors came from France and Spain.
Van der Hoeven added: I think Marrakech as a destination is very sexy; it’s well established in Europe, it’s quite an aspiring destination and the accommodation currently is okay but nothing compared to what we’re used to in Dubai or South East Asia.
“So you have a destination that was aspiring but not really the accommodation to fit that destination profile, and that’s now changing,” he added.
Word of caution
However, The Rezidor Hotel Group senior director business development Romain Avril, who is responsible for the development of three Radisson Blu hotels in Morocco, warned that the recent boom in terms of luxury hotel supply could present future challenges for operators.
“Morocco has seen a tremendous boom in terms of hotel supply. The market will have a challenge in absorbing the supply and there will be a drop in occupancy and rates, because they have been launching too many hotel rooms in a short period, so they will need some time to absorb it,” said Avril, who has seven years’ experience in the marketplace following a previous role with tour operator Thomas Cook.
“Take a city like Marrakech and the hotel pipeline there; I think there are too many hotels coming into the luxury segment,” observed Avril
“The true, luxury five-star [brands] are all coming — Mandarin Oriental, Four Seasons, InterContinental, Park Hyatt, Banyan Tree, The Ritz-Carlton, Rocco Forte and so on — so there is very strong development and they need to be careful to maintain a certain consistency within the offer and potential demand,” he observed.
“We need to make sure that when we enter the market we are at the top of our segment,” added Avril.
Despite the risk of over-supply, Avril said Rezidor would look to Morocco for further development that would be more business-oriented than the resorts it had already signed in Marrakech, Tangier and Saïdia.
“Our main target is obviously Casablanca, we are looking at something there, but because the price of sites is quite expensive, to make it work financially, especially in these current times, is quite difficult,” said Avril, adding that eventually Fez and Agadir would be targeted too.
“We also intend to come to Morocco with our mid-market brand Park Inn, looking at Marrakech, Agadir and Casablanca and also secondary cites,” he said.
Avril added that he thought economy brands would perform well in the Moroccan market. “Accor is already present with Ibis, mainly in the big cities, and they’re doing pretty well, so there is a strong demand for budget and mid-market hotels.”
Van der Hoeven said that what would set Anantara apart amid the luxury competition in Marrakech would be its pool villas and location within the Atlas Golf Resort.
“There are a couple of pool villa properties under construction, there’s a Four Seasons, there’s a Banyan Tree, but I think when you look at the products I don’t think there is anything in Morocco at the moment that you could compare to the Indian Ocean or South East Asia, so I think it’s for us to bring our quality property to the market to bring that [standard] up. The market is definitely moving upwards,” he said.
“The Moroccan tourism [board] realised you had to offer more than normal five-star hotels,” added van der Hoeven.
UPCOMING MOROCCO HOTEL HIGHLIGHTS
Mazagan Beach Resort
This 250-hectare destination resort being developed by Kerzner International will be the first of a new, yet to-be-named brand from the company. Located 90km south of Casablanca in El Jadida, the 500-room resort will include an 18-hole golf course, 7km beach, eight restaurants, a casino, nightclub, spa and large conference centre.
Royal Mansour, Marrakech
Set to open at the end of 2009, Royal Mansour, Marrakech promises “exclusivity, luxury and privacy to a level not seen before”. It features 53 raids, connected by a labyrinth series of underground tunnels only accessible by staff.
Four Seasons Hotel Marrakech
Tentatively scheduled to open in 2010, this 140-room hotel is situated between the old city and the Menara Gardens in Marrakech. It will feature a large destination spa and two swimming pools.