Four out of 14 hotels delayed by Rezidor Group
Company will focus on growing markets
Dubai: The Rezidor Hotel Group has seen the delay of four out of 14 hotels in the pipeline for the Middle East, the group's president and chief executive told Gulf News.
A Park Inn property in Egypt, two hotels in Saudi Arabia and one in the UAE are delayed, said Kurt Ritter.
"Sometimes there are unrealistic targets that people set up in this part of the world," a company manager said.
In light of the Eurozone crisis, the company is shifting its focus to the growing Middle East where it hopes to achieve about 65 per cent occupancy across its properties, Ritter said.
Strategy
"Now there is oversupply and it's not wise to take any commitments there [in Europe], so we are looking at the Middle East, Africa and Russia, that is our strategy for the time being," Ritter said.
Last year, the group saw revenue per available room (revpar) decline by 30 per cent from the previous year in the Arab countries affected by the uprisings.
"The rest of the Middle East, mainly Dubai, has balanced this. The growth in Dubai for us has balanced out problems in the Arab Spring," he said.
The Middle East currently contributes 15 to 20 per cent of Rezidor's global revenue, a figure he hopes to increase this year, he said, but could not specify by how much.
It is signing five hotels this year, he added.
Rezidor is planning to grow in the middle-market hotel segment with its Park Inn brand, he said.
"There's a shift across the world to middle and budget hotels. Due to lifestyle changes and the financial crisis people are looking for cheaper accommodation," he said.
