Creativity and distinction in the hotel business is essential to success. Hotel designers around the world have discovered the growing need for individuality in hotel spaces. Every day, hotel owners are ...
The place: The Middle East.
The pulse: New developments are springing up everywhere. Lots of brands are cropping up in
the region, including some that are harnessing star power to generate buzz. Zabeel Properties is hooking up with Brad Pitt to develop an eco-friendly, 800-room, five-star hotel in Dubai. Other projects on the boards include The Rezidor Hotel Group's dual hotel with a 150-room Radisson Hotel and a second, 300-room, yet-unbranded hotel, both to open in 2011. InterContinental Hotels & Resorts is looking to open a $70 million luxury resort in 2012 on the shores of the Jordanian Dead Sea. Over on the banks of the Persian Gulf, construction is under way for a St. Regis in Doha in Qatar, set to debut in 2010. And a Fairmont Hotel opens this fall in the holy city of Makkah, Saudi Arabia.
The numbers: Regional occupancy rates average around 70 percent and are projected to climb 16 percent this year. Hospitality insiders like Gerald Lawless, executive chairman of the Jumeirah Group, reported at the Arabian Hotel Investment Conference that the Middle East will see $3.63 trillion invested in travel and tourism by 2020. Roughly 850 new hotels could be added over that period.
The rules: Timing is everything, according to Glenn Wilson, vice president of international interior design for Marriott Hotels. "The one constant I see on every Middle East project is a very aggressive schedule," she says. "A design firm should keep this in mind and be prepared. In fact, a firm with a team that is very productive and can keep up an aggressive pace could use that as a selling point. Clients also are looking for innovation, the latest and greatest in all areas of design."
The hurdles: An Ernst & Young Hospitality Investment Survey points out that the highest perceived risks of international investment are political and economic instability. Terrorism also ranks high on the list. Currency fluctuations and the possibility of inflation pose concerns. Kuwait has hit record-high inflation rates despite an economic surplus, which Kuwait Central Bank officials are urging the government to distribute to citizens.
The payout: Foreign investment's upside is a healthy growth potential. A survey by HotelBenchmark showed the region's RevPAR grew about 17 percent through 2007. Also, consider the benefits of opening an office in the area. Wilson says it can give your firm a competitive edge. "Almost every owner Marriott has worked with has expressed a desire to use firms located in the region," she says.
REGIONAL STATS
The World Wildlife Fund and Masdar, the Abu Dhabi energy company, launched a “Sustainability Action Plan” to deliver Masdar City—the world’s first zero-carbon, zero-waste, car-free city—slated for completion in 2015.
There are plans to build 150 more hotels in
Deloitte’s annual Hotel Benchmark Survey predicts the number of visitors to the