Ritz Carlton to earn 20% of its revenue from Middle East

Dubai The Middle East will account for approximately 20 per cent of Ritz Carlton's global revenue by 2015, according to a senior executive.

The region currently represents 12.5 per cent of the revenue of the luxury hotel company, part of US-based Marriott International.

"Because of the inventory that we have today we are opening larger hotels, the Middle East will represent around 20 per cent [of Ritz Carlton's revenue] worldwide by 2015," Pascal Duchauffour, Ritz Carlton's area vice-president for Europe, the Middle East and Africa, told Gulf News.

Revenue split

Further explaining the company's revenue structure, he said that Ritz Carlton's revenue today was split equally between the US and other international markets.

"And of that international share, the Middle East and Europe account for around 25 per cent each, while Asia makes up for the remaining 50 per cent," said Duchauffour.

The revenue increase will fall in line with Ritz Carlton's expansion strategy.

The company plans to have at least 15 hotels in its fold in the Middle East by early 2015, up from the present ten (including the Cairo establishment due to open in mid-2013), according to Duchauffour.

These ten form part of Ritz Carlton's current global portfolio of 78 hotels, which is expected to pass the 100 mark by 2015.

Asked which Middle Eastern markets the company was looking to enter, Duchauffour said: "We would like to be in Jeddah in Saudi Arabia, Jordan and Lebanon. We have started the process of exploring opportunities in these markets. But there is nothing we can announce anytime soon."

He added that Abu Dhabi, where the company will open its first hotel next August — the Grand Canal Ritz Carlton — could host another "small boutique hotel of Ritz Carlton".

"We could also look at Kuwait. Besides, we will not close the possibility to grow in Egypt. It could offer great opportunities," said Duchauffour.

He was quick to add that the company, however, didn't feel the need to expand further.

Main footprint

"In this region we have established a main footprint that we want. And after that we will have to be very opportunistic if we see an option that we think will fit within the portfolio," he said.

The company's presence in the region now comprises two hotels each in Dubai and Doha, one in Bahrain, Muscat, Sharm Al Shaikh and Riyadh in Saudi Arabia.