Dubai: Rotana Hotels expects to sign new management agreements for locations near Dubai World Central (DWC) within the short-term, according to a top official.
“We are in talks with several people already; we have been in talks with certain entities since the past 4-5 years for projects around DWC,” said Omer Kaddouri, president and CEO of the Abu Dhabi headquartered firm. “With the economic problems we’ve had towards the end of 2008-2010, some of these projects were put on hold; but we do believe a lot of these are coming back again.”
Rotana is among other hotel management companies in the UAE looking to be in DWC, part of the cluster that will host World Expo 2020.
“The effect of Expo 2020 in terms of commercial business will start assisting the UAE model by 2015-16, that’s when we start to feel there will be a lot more business,” Kaddouri said.
On the possibility of having a hotel at Al Maktoum International Airport, he said: “It would be something interesting for Rotana, however there’s nothing solid at this stage about any Rotana being at the airport.”
Rotana has 48 hotels in operation and expects to touch 50 this quarter and 100 by 2018-19. Its brands include Rotana Hotels and Resorts, Rayhaan, Arjaan, Centro and the Residences by Rotana.
Rotana is not planning on raising more financing through bonds, Kaddouri said. On whether there are plans for an IPO, he said: “It is on the agenda in the future, it’s something that we’re not thinking about now or the near future.”
In the pipeline
Kaddouri declined to comment on the revenue and profits for 2013, except to say that profitability increased “between 5 and 6 per cent” over 2012.
He said Rotana’s focus is opening hotels in the pipeline and maintaining current properties. The company has 50 hotels in the pipeline, with openings scheduled between 2014-16.
This quarter will see the opening of Hili Rayhaan by Rotana in Al Ain (mid-February) and Salalah Rotana Resort in Oman (March). February will also see the opening of a property under Residences by Rotana in Doha. More openings are due by year end in Jordan, Bahrain and Doha.
In Turkey, the operator has six properties signed, with the first one to open by the fourth quarter of 2014.
Rotana has not signed deals in South Asia despite previous talks that it would secure a project in India. “We hope to be able to have good news in 2014 with regards to a signing in India,” Kaddouri said.
There are no talks to open in Europe. However, Rotana “would be very interested in looking into these opportunities,” he said.
Rotana maintained a good level of occupancy in 2013, with its properties in Dubai posting 83 per cent and Abu Dhabi 79 per cent, according to Kaddouri. He expects occupancy to increase by 5 per cent in Dubai and remain flat in Abu Dhabi this year.
