UAE’s Rotana bets big on Saudi Arabia, Africa for future growth amid global uncertainty

Dubai: Abu Dhabi-headquartered Rotana Hotels Group has ambitious expansion plans for the UAE, the GCC, and the wider Middle East and Africa (MENA) markets while remaining cautiously optimistic about the global economy.

The hotel group currently has around 30 hotels in its pipeline, with an additional 10 to 15 under discussion, aiming to reach a portfolio of 120 hotels within the next two to three years, said Philip Barnes, Rotana’s CEO told Gulf News ahead of the Arabian Travel Market (ATM).

While the UAE remains a significant part of Rotana’s operations, with approximately half of the group’s current inventory based here, the primary focus for growth is shifting towards regional and continental opportunities.

Barnes said Saudi Arabia is probably the biggest development market for the hotel group at this point in time, “with the most number of opportunities and where we anticipate seeing the most coming through in the next 12 to 18 months.”

“We already have 11 hotels there (in Saudi Arabia). We’ve got 11 more under development. I’d like to see us with greater penetration in Saudi Arabia because it’s a very good market for us. We are a Middle East brand; that’s where our roots come from,” said Barnes.

Rotana opened the Nova M Hotel Olaya Riyadh (under the Edge by Rotana brand) in September 2024.  

Prepared for all scenarios

Despite the overall positive outlook, the CEO cautioned regarding the potential economic fallout from international trade disputes impacting key European markets crucial to UAE’s tourism.

“I’m not so concerned about the US because it is not a major source of business for us, but places like Germany, France, Italy, Spain—these are all important source markets for us, as indeed is Russia,” he explained.

That said, Barnes says there are no signs of any significant change in Rotana’s business patterns as it stands right now.

“Looking forward, you know, business is strong this month. It looks like it will continue, certainly through the next quarter. Still, I’m going to keep a very close eye on it going forward because these things creep up on you unless you keep a good eye on them,” he explained.

Regional expansion

Beyond the GCC, Rotana is actively exploring opportunities in North Africa and Sub-Saharan Africa, with projects underway in Egypt (Sharm El Sheikh and Cairo), Ghana, and a recently signed project in Somalia. The company is also expanding its footprint in Europe, with a new resort in Sharm El Sheikh and potential projects in Georgia, Turkey, Romania, and Bulgaria.

 “When I talk about our development, I talk about us versus other competitors, some of which are very big competitors. I always say, “Well, you know, we’re in—we’re in the hotel business, and they’re in the business of hotels.” They’re putting pins on the map, as it were, around the world, whereas what we have is a very specific focus on the properties,” Barnes said while outlining the hotel group’s expansion strategy.

“Our major focus is to look at where we need flagships and where it is that we need to develop the most,” Barnes stated, emphasizing their strategy of focusing on their “backyard” and leveraging their deep understanding of the region. He noted that while they wouldn’t rule out opportunities further afield in Asia or North America, these would require very special circumstances due to logistical challenges.

Growth within the UAE

Regarding the UAE market, Rotana views itself as an “affordable luxury” brand. Barnes said the robust occupancy levels across the emirates range in the high 80s to low 90s, even after the quieter Ramadan period.

"We do have other properties under development here in the UAE. We've got two properties here in Abu Dhabi, both coming up in the next—one will come up this year," he added.

"The other one will probably be a couple of years behind it. But our major focus is to look at where we need flagships and where it is that we need to develop the most, which is not to say that that's not in the UAE, but certainly the UAE is not the focus that we might see elsewhere," Barnes said.

He also pointed out that while Abu Dhabi’s rate structure has seen significant growth, the UAE as a whole remains an affordable destination compared to global hubs like London, Paris, and New York, attributing this to the country’s safety.

Recruitment plans

Rotana is one of the largest hospitality employers in the broader Middle East, supporting thousands of direct and indirect jobs. As it expands its portfolio, its workforce will grow significantly. The company employs just under 10,000 colleagues across its properties and expects to surpass 11,000 within 18 months