BELGIUM: Belgium-based Rezidor Hotel Group, looking to tap demand in main Arab cities, said on Thursday it was planning to expand its hotel network by managing 18 more hotels in the region over little more than three years.
Kurt Ritter, chief executive, said the company wants to add about five hotels a year under a plan to increase to 40 the number of hotels it manages from 22 hotels currently.
“We are opening five hotels a year more or less in the region. We will keep that pace if not accelerate it, said Ritter, adding that Rezidor was looking at opportunities in several Middle Eastern cities in addition to Egypt and Libya.
“The Middle East is doing very well compared to the rest of the world, said Ritter. “It has been fortunate in a way with the crunch coming late and with a much lesser impact than in Europe and the US.
Ritter said while the decline in Dubai was significant, it fell from high levels. Occupancies and RevPAR are still declining in Europe and the Middle East is fairing relatively better, said Ritter.
“We are looking everywhere . in all the cities where it makes sense for us to be present.
Rezidor, which manages luxury brands such as Regent, Missoni, and Radisson, is also looking to bring its mid-market Park Inn hotels to the region to tap the growing market segment.
“I am sure the Middle East will accept the trend of mid-market hotels in time, he said. “There are many five-star hotels and the little crummy local hotels but nothing in between and I think there is a big opportunity there. -Reuters
