Older Gulf hotels 'face renovations or closures'
Originally published on www.businesstravellerme.com 13/02/2012 - Filed under: News »
Older properties across the Gulf will see a number of major renovations and even closures as they aim to keep pace with the quality of new supply.
That's the warning from hospitality business property advisor, Christie + Co, in its International Business Outlook 2012.
"Hotels are becoming more cautious about their operating environment and long-term projections, making it a good time to consider renovations. Similarly, they will focus on overall performance improvement including reviewing operator agreements," said Gavin Samson, Director, Christie + Co, MENA.
"Independently run properties will assess alternative management options such as franchising or a move to international brand management."
Le Meridien Mina Seyahi Dubai closed its doors yesterday as it embarks on a wholescale renovation (click here).
Fellow Starwood property, Le Royal Méridien Abu Dhabi, is about to decide whether to go for a phased renovation over the next two years, or all remaining 15 floors this year (click here).
City Seasons Abu Dhabi and Mövenpick Doha have recently completed renovations, whilst the Crowne Plaza Deira, Pullman Deira City Centre and Radisson Blu Kuwait are currently undergoing refurbishment, with more expected to follow.
Concern with the future hotel supply-demand relationship has shifted from Dubai to Abu Dhabi during the year with hotels cautious about their operating environment and hesitant to make long-term projections, the report notes.
"Whilst Dubai took immediate advantage of the fallout of the leisure and MICE markets generated by the Arab Spring, much of Abu Dhabi’s hotel supply and related infrastructure is still under development," it states.
For more information visit christiecorporate.com
Report by Dominic Ellis
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