Budget and mid-market hotels offer superior returns

Flamingo Hotel’s president Amine Moukarzel, who is also managing director of Golden Tulip Hotels & Resorts in the Middle East, told the 7th annual Arabian Hotel Investment Conference (AHIC) that returns on investing in budget and mid-market hotels were consistently higher than in hotel assets in more highly-rated sectors. 

“It makes more sense from an ROI [return on investment] point of view to go for budget hotel projects,” Moukarzel said. “What is important is to know what the market needs. I will not a put two-three hotel in Saudi Arabia without meeting facilities. But we believe there is a great opportunity for growth. And definitely the return on investment is faster and better than for high-class budget investments.”