Hoteliers hungry for development

07 May 2005
In a bid to solve the increasing shortage of hotel room capacity throughout the region, a host of new hotel projects were announced on the first two days of the Arabian Travel Market exhibition, held in Dubai from 3-6 May. More than 1,500 international and regional companies representing the travel industry participated in the exhibition, which is the biggest of its kind in the region.

The largest expansion plans came from French hotel group Accor, which announced six new deals and that it would add a further 26 properties involving 7,000 rooms in the Middle East and Levant by 2009. The announced deals were: the 230-room Sofitel Afamia Beach in Latakia, Syria; the 450-room Sofitel Jumeirah Beach Residence in Dubai; the 300-room Sofitel West Bay in Doha; the 230-room Sofitel Al-Khobar; the 210-room Novotel Al-Anoud in Riyadh; and the Ibis Salmiya in Kuwait. The hotels are scheduled to open in 2006/07.

Accor has also entered into an agreement with Algeria's Mehri Groupto build 36 Ibis hotels in the country. The two companies will each hold a 40 per cent stake in a new company to develop the properties. Construction of the 204-room Ibis at Algiers airport is expected to begin by the end of the year.

Other projects and developments included:

The Crowne Plazawill operate a 318-room property at Dubai Festival City. The estimated $70 million luxury business hotel will open in 2007;

Kuwait-based IFA Hotels & Resortsannounced it will build an estimated $115 million hotel, apartment and timeshare property on the crescent of Palm Jumeirah. To be managed by Fairmont, the project will cover an area of 150,000 square metres;

Saudi Arabia's Kingdom Hotel Investments is planning to invest $1,000 million-2,000 million in new projects across the Middle East;

Geneva-based Kempinski Groupwill manage a 300-room property in Doha's diplomatic district, to be opened by the start of 2006. It is also set to double the size of its existing property in Ajman and open a new hotel next to Jumeirah Beach Residence in Dubai;

Kuwait-based operator Refadannounced the first hotel project on the World archipelago in Dubai. It will operate its luxury Monarch brand on the Oqyana project in the Australasia continent. Work is set to begin in 2008;

Oman's Safeer Tourism & Hotel Companywill develop five hotels in the sultanate at a total cost of $155 million. The company will appoint international operators to manage the hotels;

Brussels-based Reizidor SASis planning to have an additional 40 hotels across the Middle East by 2010. It will manage a new 148-room Park Inn in Al-Khobar and a Park Inn in Riyadh, both scheduled to open in 2007.

Reizidor has also signed for the 212-room Radisson SAS Al-Madina Paradise Resort and the 57-suite Radisson Royal Suites in Jeddah. The hotelier will also manage two properties on Palm Jumeirah; a 300-room luxury property on the crescent and a 400-room Radisson SAS on the trunk. Both are scheduled to open by 2008;

Germany's Bavaria Executive Suiteswill open a 2,100-room all-suite hotel at Dubai Technology, e-Commerce and Media Free Zone in the first quarter of 2006. The 40-storey twin towers will be linked by a bridge.

Bangkok-based Six Senses Resorts & Spaswill develop a $27 million, 60-villa resort at Zighy bay in Oman.

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