Action Hotels to spend $4.8m developing RAK hotel
Company to convert residential building into mid-market property
Kuwaiti hotel developer Action Hotels has announced that it is planning to build a 104-room hotel, mid-market hotel in Ras Al Khaimah.
The firm said it is in the final stages of negotiating a long-term management agreement with an operator for the property.
It has signed a 20-year lease agreement on an existing residential property which it will refurbish and convert into a hotel. The firm said its spend on the project equates to around $46,200 per room
The property has been leased for an annual rent of AED2.5mn ($666,000) from its sister firm Action Real Estate, with 10% increase every five years.
Action said that it is tapping into an opportunity to provide branded economy and midscale hotels in Ras Al Khaimah, whose market is currently dominated by luxury properties.
Action Hotels' chairman and founder Sheikh Mubarak AM Al Sabah said: "In addition to our pipeline of nine hotels we are actively pursuing new hotel developments and I am delighted to confirm the addition of this 104 bedroom hotel to our pipeline.
"Ras-al Khaimah is a region we know well and believe that its three and four star hotel sector is undersupplied.
"It is also exciting to be partnering with a well-known brand in the region and we believe this hotel will be suited to theirproduct offering, targeting intra-regional business and leisure travellers."