Premier Inn focuses on GCC expansion

23 October 2014

More than 100 hotels projected over 20 years, seven announced, four in negotiations

UK-based mid-price hotel chain Premier Inn is planning an expansion across the GCC, with seven hotels scheduled to open before 2017, providing a total of 2,687 rooms in the region.

There are four more in negotiations, in addition to the five already open in UAE that it operates in joint venture with Emirates Group. In the long term, the company envisages about 100 hotels across the GCC.

The hotels already under construction include 168-room Premier Inn Sharjah King Faisal Street due to open in late 2014, 100-room Premier Inn Jeddah Industrial City, opening early 2016, 119-room Premier Inn in Bahrain’s Diplomatic area, opening early 2016, and a 245 bedroom Premier Inn Dubai Healthcare City, opening 2016, all managed in partnership with Kuwaiti owner and developer Action Hotels. Both are also keen to enter the Kuwaiti market.

The company also expects to open Premier Inn Dubai Ibn Battuta Mall in late 2016, as part of local developer Nakheel’s expansion of the retail centre.

In Qatar, the 102-room Premier Inn Doha Airport, owned by Almajed Group, and Premier Inn Doha Education City, a joint venture with Msheireb Properties and designed by Dewan Architects and engineers, will open in late 2015.

In Saudi Arabia, the 200-room Premier Inn Jubail Downtown, developed with local partners Majdouie Properties, is set to open in mid-2016.

Although all these projects aim for LEED certification, Premier Inn Muscat al-Qurum in Oman, developed by local partners Sabco Group, has an unusual transparent design for low environmental impact, thanks to German architects Kling Consult.

Premier Inn, owned by UK firm Whitbread, bases its business model on convenience and density in selected locations, meaning it will continue developing hotels in the GCC. David Vely, senior vice-president for development in the region, estimated that Premier Inn could open more than 100 hotels in GCC countries over the next 20 years, including 30-50 in Saudi Arabia and more than 50 in the UAE, with 20 just in Dubai, depending on the success of current projects. This would include smaller cities and industrial areas as well as multiple locations in large cities such as Riyadh, as well as Mecca and Medina, at a rate of 4-5 openings a year.

Premier Inn is planning similar programmes in India and South East Asia.

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