Business | Tourism
Best Western plans expansion
Officials said Best Western has been drawn to the region because of rapid tourism growth, with Dubai alone looking to receive 15 million visitors by 2015.
- By Shakir Husain, Staff Reporter
- Published: 00:20 February 13, 2008
- Mohammad Mohebi with Glenn de Souza after signing the agreement in Dubai on Tuesday.
- Image Credit: Ahmed Ramzan/Gulf News
Dubai: US-based hotel chain Best Western International said it plans to have 20 properties in the Gulf by 2015 as part of its expansion across Asia.
Best Western yesterday signed an agreement with Dubai-based Zainal Mohebi Group's investment arm to develop mid-priced hotels in the Gulf Cooperation Council (GCC) countries.
Mohammad Mohebi, chief executive officer of Mohebi Investments, said projected investment in 20 hotels will be about Dh2 billion and his company will work with other investors to develop these properties.
Investors
"We are looking for four to five key investors who have knowledge of the hospitality sector," he told Gulf News.
He said the company will launch a Dh1 billion fund for the purpose.
The Mohebi Group will fully own some properties in the UAE. The first hotel is now under construction in Bur Dubai. The 220-room Best Western Residences is expected to open in February 2009.
Officials said Best Western has been drawn to the region because of rapid tourism growth, with Dubai alone looking to receive 15 million visitors by 2015.
"There is a particular need for three- and four-star hotels in the Gulf region. This is a major segment of the market that has not been properly catered to by international hotel chains," Mohebi said, adding that the development strategy will involve setting up multiple properties in key cities.
Glenn de Souza, Best Western vice-president for operations in Asia, said the company will remain focused on launching new properties in the Middle East for at least 10 years.
"Targeted countries initially are the UAE, Kuwait, Saudi Arabia, Bahrain, Oman and Qatar," he said.
Agreement
The Mohebi Group has also signed an agreement to handle sales and marketing in the GCC for all Best Western properties through its travel services division, Mohebi Aviation.
Apart from the Middle East, the company is boosting its network in China, India, Thailand, South Korea, Japan, Indonesia and Vietnam.
Best Western has 90 operating hotels in Asia and 30 are under development, a company spokeswoman said. The target is to have 200 hotels in Asia by 2010.
Best Western, which is headquartered in Arizona, operates about 4,200 hotels in 80 countries, but its portfolio is heavily dominated by operations in the United States.
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