Dubai : Premier Inn, a UK-based budget hotel chain, yesterday launched its third hotel in Dubai as it moves ahead with plans to open one hotel in every major city in the GCC by 2015.
Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates Airline and Group, opened the latest hotel located opposite Emirates Terminal 3 at Dubai International Airport. The group has an equal partnership with the hotel brand's holding company Whitbread for all projects in the GCC countries.
Darroch Crawford, managing director of Premium Inn Middle East, expects the 281-room hotel's business to do well due to its proximity to the airport and the growing demand for affordable rooms.
Supply
"The budget hotel supply in Dubai has gone from one hotel in the form of Ibis at the World Trade Centre to 12 hotels in a short span of time," Crawford told Gulf News at the launch of the hotel. However, that's a good thing for Dubai, he says.
"Dubai now has affordable accommodation. Previously, Dubai used to lose out on a lot of events, conferences and trade shows because it did not have affordable accommodation. We only had top end and some of these events just couldn't afford to come to Dubai," he said.
Crawford said another two hotels will go up in the UAE by the end of next year.
A property near Jaddaf is planned with 300 rooms and is waiting for infrastructure to be completed in the area.
By September 2011, Abu Dhabi will see the company's first hotel launch. The hotel with 242 rooms will be situated near the Abu Dhabi National Exhibition Centre. He said that each project costs approximately Dh100 million.
Outside the UAE, the hotel chain will also launch a 200 room property in Doha in the summer of next year.
Other expansion plans include Muscat, Riyadh and Jeddah.
"We are currently looking for sites. The plan is to be represented in all major cities in the region," Crawford said.
The next step would be secondary cities in the countries covered, where the affordable hotel model works well, he said.
The chain's existing hotels in Dubai include two properties, one in Dubai Investment Park (DIP) and another in Dubai Silicon Oasis (DSO).
Crawford said that the hotels, with a combined 538 rooms, have an average occupancy rate of 60 per cent.
During the global market downturn last year, the company reduced rates by almost 40 per cent to keep occupancy up.
Crawford said that demand had gradually returned and stronger numbers can be seen in all locations now.
While the location near the airport was chosen for its close proximity for transit or short-stay visitors, the locations of DIP and DSO were picked for future developments in the area.
"The development of Dubailand and surrounding projects was the main driving force for choosing the location. They were an investment in the future of Dubai and will be a very good investment in the longer term," Crawford said.
Taking advantage of the emerging market in India where budget hotels have a huge demand, Premier Inn plans to open 80 hotels in the next six years.
The properties will be under a joint venture with Emaar MGF, the Dubai-based developer's retail arm in India.
