Rotana anticipating major brand developments in 2019

Rotana

Rotana reported positive results across the three key performance metrics in the first two months of 2019.

“Most of our markets in the region posted firm growth in occupancy, ADR and RevPAR, and this is mainly due to our relentless focus on improving the product offering, expanding our portfolio and enhancing our commercial efforts,” acting CEO, Rotana, Guy Hutchinson elucidated. “Given the upward trend in the performance of global markets, we remain optimistic about positive growth prospects for the region.”

During the January-February period, Rotana hotels in Abu Dhabi delivered stronger growth as compared to properties in other emirates, and recorded a 3.5 per cent growth in occupancy, 2.3 per cent increase in ADR and 5.9 per cent rise in RevPAR, while its properties in Beirut and Riyadh posted a 17 per cent and 15 per cent rise in occupancy, as well as 29 per cent and 48 per cent surge in RevPAR respectively, as compared to the same period in 2018. Similarly, ADR and RevPAR soared by 24.8 per cent and 9.8 per cent at the company’s resort in Sharm El Sheikh, while Manama saw a five per cent increase in occupancy rates.

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Moving on, room nights coming from Saudi Arabia, which is one of the key feeder markets, have increased by 15 per cent in the first two months of this year.

Highlighting key opportunities in the market, Hutchinson said that with the growing public spending in tourism sectors, driven by the ambitious economic diversification roadmaps for the regional economies, including the UAE Vision 2021 and the Saudi Vision 2030, the region’s hospitality sector is on the tip of a tremendous transformation.

Major upcoming events, such as Expo 2020 Dubai, and tourism initiatives, including the $500 billion Red Sea coastline project, NEOM mega-city project, Al Qiddiya Entertainment City, Farasan Islands, and the 3,000-square-kilometre Amaala luxury destination project in Saudi Arabia, will further strengthen the region’s reputation as an attractive destination for tourists and investors alike.

In addition, international events set to take place in the region with the support of regional governments – such as the Special Olympics World Games Abu Dhabi 2019 – will not only help drive occupancy, but also promote the destinations worldwide.

Against the backdrop of these developments, the region is poised to witness a rise in the coming years, offering an opportunity for hotel operators to further improve their performance in the market.

Hutchinson stressed that the GCC region is expected to see an additional 58,000 keys entering the market in 2019, with destinations such as Dubai, Makkah and Riyadh accounting for the highest increases in supply. These new stocks will intensify competition leaving further pressure on room rates. As a result, maintaining profit margins will be a key challenge for hoteliers this year.

Hutchinson also shed light on Rotana’s ongoing expansion efforts in line with its long-term strategy. Between this year and 2020, Rotana will open nine new properties to bring its strong inventory of operational keys to 21,135. Properties opening in Q2 2019 include Johari Rotana, Dar Es Salaam (256 keys), Bosmal Arjaan, Sarajevo (130 keys) and Dana Rayhaan, Dammam (285 keys). Hotels set to launch in Q4 2019 include Imam Reza Rotana, Mashhad (272 keys), Al Jaddaf Rotana, Dubai (338 keys) and Slemani Rotana, Iraq (240 keys). In Q2 2020, Rotana will open Centro Amman, Amman (197 keys) and Cayan Cantara Arjaan (329 keys) and Cayan Cantara Residences (489 keys) in Dubai.