HMH CEO: A hotel in every GCC country by 2020
Laurent Voivenel, CEO, HMH, made the announcement at this year's ATM
Hospitality Management Holdings (HMH) announced today at the Arabian Travel Market that it aims to have a hotel in every GCC country by 2020.
HMH, which has 20 hotels already operating in the region, is developing five new properties at Muscat, Dubai, Beirut and Khartoum, all of which are expected to welcome their first guests by either the last quarter of 2014 or early 2015.
Commenting on HMH’s expansion strategy, Laurent A. Voivenel, CEO, HMH, said: “By 2020, our aim is to have a hotel in every GCC country while doubling our portfolio in Dubai, and we certainly believe it is achievable.”
“Dubai's successful bid for World Expo 2020 is a massive stimulant for the entire (GCC) region's hospitality and meetings industry accelerating economic growth and development,” Voivenel explained. “Therefore, being based in Dubai, it presents an unprecedented opportunity for our group and our various brands that we are eager to capitalise on.”
According to Voivinel, the GCC's hospitality market is expected to grow at an annual rate of 8.1% to $28.3bn by 2016, compared to $19.2bn in 2011.
The five hotels that HMH plans to open later this year include Coral Muscat Hotel & Apartments, Coral Dubai Sports City Hotel & Apartments, Coral Beirut Concorde Hotel, EWA Khartoum Hotel & Apartments and EWA Port Sudan Hotel & Apartments.
“Besides the above five hotels, we plan to add another two properties to our portfolio in 2015 and two in 2016,” Voivenel added. “With a value-oriented and disciplined approach, our objective is to unlock HMH's full potential while maximising operating performance of each asset we put our name to.”
The new hotels will boost HMH’s existing portfolio by 25%. In addition, HMH has a development pipeline in place as well, with the group scouting opportunities to roll out its budget brand to cater to the growing segment of low-cost travellers.
The Middle East/Africa hotel development pipeline currently comprises of 498 hotels, totalling 120,119 rooms. Dubai has the largest number of rooms under construction (10,970 rooms).
Five other markets reported more than 2,000 rooms under construction: Makkah, Saudi Arabia (6,927 rooms); Riyadh, Saudi Arabia (5,804 rooms); Doha, Qatar (4,944 rooms); Abu Dhabi, United Arab Emirates (3,036 rooms); and Jeddah, Saudi Arabia (2,569 rooms).