Marriott to double UAE hotel room inventory in 3 years

Dubai: The UAE will replace Egypt as Marriott International’s largest market in the region in terms of number of rooms in three years time, according to the global hotel chain’s top executive.

“The region is really growing, and from and a business perspective, it’s bouncing back very strongly. It will, however, be interesting to see how markets dynamics would shift. Today Egypt is Marriott’s largest market in terms of number of rooms, according to Kyriakidis. But within the next three years, the UAE will rise to be our largest market with over 5,000 rooms up from the current 2,494 rooms in the country,” Alex Kyriakidis, President and Managing Director of Marriott International, Middle East and Africa, told Gulf News in an interview on Sunday.

“And that will also add rooms in Abu Dhabi. Five of our eight new hotels coming up in the UAE over the next four years, will be in Abu Dhabi.”

Marriott International’s regional development plans include doubling its footprint in the Middle East and Africa by 2017. Marriott’s pipeline in the region shows that the company is going to go from 43 operating hotels to 88 operating hotels over the next five years, according to Kyriakidis. “But that doesn’t take into account the deals that will happen between now and then,” he pointed out.

Marriott International’s portfolio in the Middle East and Africa currently comprises 43 properties in 12 countries, offering 12,919 rooms across seven lodging brands. It is set to expand by 45 properties and 10,875 rooms by 2018.

Marriott last week announced the company’s 11th signing in 12 months, in the region.

FIRST QUARTER

Marriott International said on Sunday it posted a 31 per cent increase in its global net income in the first quarter of 2013 over the same period a year ago. While the company did not divulge the net income numbers for the Middle East and Africa, it said that the region recorded 11.2 per cent jump in RevPAR (revenue per available room — an industry benchmark) in the first quarter over the corresponding period in 2012, driven mainly by a 4.1 per cent increase in occupancy in the region’s hotels.

“It is essentially twice the growth rate that has been put out by STR Global for the industry as a whole,” said Kyriakidis. “So the backdrop to doing business is strong. And that in turn is prompting owners to look at investing more in this industry.”

He added: “With our focus on the company’s flagship brand, Marriott Hotels and Resorts, as well as the extended stay sector and mobile technology, there is a lot more to come in 2013.”

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FOCUS AREAS:

Marriott International’s focus for the coming months will be its expansion in the Extended Stay segment, with its Residence Inn and Marriott Executive Apartments (MEA) brands, said Kyriakidis. “We view Extended Stay as a key trend developing in the region due to the increasing number of mid-term visitors to the region, be it for business or for pleasure. A substantial spike in demand for these products will play a major role in driving the company’s development in the region.”

He added that Residence Inn and Marriott Executive Apartments will be opening 10 extended stay hotels, consisting of 1,062 rooms by 2017, with Residence Inn Jazan, Saudi Arabia and Marriott Executive Apartments Zabeel Dubai slated to open later this year.