Hotel projects worth $140 billion ongoing in Gulf

Hotel projects worth $140 billion ongoing in Gulf

Region’s most extensive and up-to-date study of hospitality projects identifies 306 hotels with108,600 rooms currently under construction in GCC countries

Under current plans, Arabian Gulf countries are currently constructing 306 new hotels, with 108,600 rooms worth in excess of $140 billion, according to a new study revealed today (24 May 2009) at The Hotel Show the region’s leading hospitality services trade show in Dubai.

As the tourism and leisure sector feels the pinch of the global economic downturn, the study raises the question – will supply exceed demand as new hotel properties come on stream?

The study by the Proleads research house is the most extensive and up-to-date examination yet of hotel and leisure projects across the six countries of the Gulf Co-operation Council (GCC). The study – Status of Developments in the Middle East Leisure Industry – was presented by Emil Rademeyer, Director of Proleads, at The Seven Star Conference which is part of The Hotel Show.

The report finds that hotel occupancy levels have remained relatively stable throughout the GCC since 2003 but it illustrates that the economic slowdown has impacted negatively on the region. However whilst acknowledging that 2009 will be a challenging year, it reveals that occupancy levels will pick up to 2008 levels by the end of 2010 and then accelerate with real growth by 2013.

“Given projected increases in demand from 2013 onwards, more hotels will be required if relatively high occupancy levels are to be maintained. Currently there are 306 hotel projects under construction budgeted at $140 billion. With an average completion period of two to three years 108,600 rooms should come online by 2011, said Rademeyer.

“However to satisfy the growing demand, the region will have to start constructing more hotels in 2010 to ensure they are ready in time to meet the growing demand. Therefore all things being equal, the study indicates that construction of hospitality projects will continue unabated.”

Proleads’ research also addressed the critical cash flow issues. “The economic slowdown has resulted in much more cash flowing out of the hotel construction sector than into it,” said Rademeyer. “This year, active cash flow is estimated to drop to below $20 billion. However the industry is then projected to restore its ability to replace cash flow by late 2010 with more flowing into the industry than out of it by 2011.”

Welcoming the study, Maggie Moore, Exhibition Director of The Hotel Show, said: “While the regional hotel industry has undoubtedly been affected by the current global downturn, the good news is that the Middle East continues to invest heavily in the steady expansion of its hospitality industry. There are few regions in the world that can match this potential.”

As a result, major industry players have been quick to capitalise on these impending prospects for growth.

“For example, Marriott, which manages the Ritz Carlton and Renaissance brands, plans to open 130 hotels in the next four years. Half will be in China, India and the United Arab Emirates. Accor, Europe's largest hotelier, also plans to more than triple the number of its hotels in the Middle East as well as Best Western with plans to add 25 hotels to it’s regional portfolio within the next few years,” added Moore.

Based in Dubai, United Arab Emirates, Proleads focuses on construction markets across 20 countries in the Middle East, North Africa and Asia. The Proleads online database contains over 8,000 active projects with a total value of more than $6 trillion.

The Hotel Show is at the Dubai World Trade Centre 24-26 May 2009 and hosts the latest products, services and technologies from all aspects of the hospitality and leisure sectors with exhibitors from 48 countries.

There are four major product and services sectors within The Hotel Show - Interiors and Design; Operating Equipment and Supplies; Security and Technology; and The Resort Experience. The Hotel Show 2009 also sees the launch of the first Middle East Spa Summit, addressing issues and trends in spa treatments as well as design, environmental impact. The Seven Star Conference will also focus on design trends, sustainability, future technologies and marketing for profitability.

For more information, please visit: www.thehotelshow.com

HE Sultan bin Sulayem Opens The Hotel Show 2009 and FM Expo

HE Sultan bin Sulayem Opens The Hotel Show 2009 and FM Expo


Photo 1: His Excellency Sultan bin Sulayem, Chairman of DP World, today (Sunday 24th May) officially opened both The Hotel Show 2009 and FM Expo at Dubai World Trade Centre. Both shows run until Tuesday 26th May.

Photo 2: Seen here, HE Sultan bin Suleyam with Mr. Philippe Jolly, Director of Sales, Dipline, France. Maggie Moore, Exhibition Director, The Hotel Show, looks on.

The Hotel Show checks hospitality pulse

The Hotel Show checks hospitality pulse

Focus on maximising revenue streams and greater efficiency at lower costs, say organisers of the region's premier hospitality services trade event

With the Middle East hospitality sector seeking strategies to overcome the challenges of the global slowdown, attention turns this week to the The Hotel Show, the region’s premier trade show for the industry, which opens today (24 May 2009).

“There is little doubt the regional hospitality industry has moved into unchartered territory. But being no strangers to periodic downturns, hospitality professionals will be looking for the opportunities that challenging times present,” said Maggie Moore, Exhibition Director of The Hotel Show. “This is reinforced by the fact that pre-registrations for the show this year are 40 per cent up on year, at nearly 6,000,” she added.

“We are already seeing a greater emphasis being placed on finding ways to improve margins and maximise revenue opportunity – particularly with an eye to eventual recovery. Hoteliers will no doubt also be on the look out for products and services which offer greater efficiency at lower cost.”

The Hotel Show takes place across halls one to seven and Sheikh Rashid Hall at the Dubai World Trade Centre until 26 May 2009 and hosts the latest products, services and technologies from all aspects of the hospitality and leisure sector.

With exhibitors from 48 countries, companies based in the United Arab Emirates head the top 20 list of exhibitors followed by those from France, Italy, Germany, Cyprus, Greece, Thailand, Portugal, the United Kingdom, Spain, the United States of America, China, Turkey, Belgium, Pakistan, India, Taiwan, Philippines, Australia and Brazil.

Important changes have been introduced for this year’s event, the most significant being the four major product and services sectors within the show. The sectors are: Interiors and Design; Operating Equipment and Supplies; Security and Technology; and The Resort Experience. The Hotel Show 2009 also sees the launch of the first Middle East Spa Summit, addressing issues and trends in spa treatments as well as design, environmental impact, human resources, management and operations topics. Spa equipment and supplies will therefore take a more prominent position in the Resort Experience.

The Seven Star Conference running alongside The Hotel Show will have an emphasis on design trends, sustainability, future technologies and marketing for profitability.

For more information, please visit: www.thehotelshow.com


Photo caption:

“The regional hospitality industry has moved into unchartered territory,” says Maggie Moore, Exhibition Director of The Hotel Show.

Treatments up - prices down at Mid East spas

Treatments up - prices down at Mid East spas

Price sensitive day visitors increase number of spa treatments by 7% but overall revenue grows 4% - as business mix shifts away from hotel residents, says survey to be revealed at The Hotel Show

The popularity of visiting spas has increased as people look for ways to manage stress in the economic downturn, according to a new survey. But spa consumers are becoming more cost-conscious, the survey adds.

Details of the first monthly regional benchmarking initiative for spas are to be outlined later this month at the Middle East Spa Summit, part of The Resort Experience at The Hotel Show taking place at the Dubai International Exhibition and Convention Centre on 24-26 May 2009.

The Ernst & Young Spa Benchmark Survey Report tracks and compiles the performance of Dubai's five-star hotel spas on a monthly and year-to-date basis and the report’s author Ms Nikita Sarkar, spa specialist within the Ernst & Young Middle East Hospitality and Leisure team, will be outlining how the survey tracks ten key metrics.

“It already appears, however, that the popularity of visiting spas has not diminished as consumers are increasingly looking for ways to manage stress,” said Maggie Moore, Exhibition Director for The Hotel Show. “The survey results indicate an increase in the number of spa treatments booked by 7% from January to March 2009. But it is also clear consumers are becoming more price-sensitive as treatment revenue increased only by 4% over the same period.”

The survey showed the business mix of spa guests appearing to shift towards day visitors. Within beach hotels, the year-to-date split of spa treatments booked by hotel guests versus non-hotel guests is 56% and 44%. In city hotels, the year-to-date split of spa treatments booked by hotel guests versus non-hotel guest is 47% and 53%. The percentages of treatments booked by hotel guests in both types of hotels were down from 60% and above, as estimated by spa operators last year.

“This trend could be a result of a decline in hotel occupancies along with hotel guests tightening their belts due to lower travel budgets,” say Ernst & Young. “It also indicates a greater interest for spa visits among Dubai's resident population in response to special packages offered by spas that target residents.”

Ernst & Young Middle East says that until now there has been an absence of consistent metrics to measure performance within the spa industry. The new initiative aims to give spa operators and hotels a chance to review their operations objectively and benchmark them against existing standards in Dubai.

Sarkar added: “An innovative, and as yet relatively unused metric covered in the Spa Benchmark Report is the RevPATH or revenue per available treatment hour. This is conceptually similar to the RevPAR (revenue per available room) metric currently used by hotels. The measure allows for true comparison of operational performance over different types of spas by presenting revenue generated over a time period of 60 minutes."
The Resort Experience at The Hotel Show will feature outdoor furniture, accessories, design, spa equipment and supplies and is one of four sectors of the show. The others are: Technology and Security; Interiors and Design; and Operating Equipment and Supplies.

Industry partner for The Hotel Show is Hepo; Corporate Catwalk sponsor is A Ronai; the hotel sponsor for the conference and summit is the Grand Millennium Hotel; audio-visual sponsor is Almoe and the conference producers are D’Events.

For more information about The Hotel Show, please visit: www.thehotelshow.com

The latest communications and infrastructure technology showcased at The Hotel Show, the region's premier hospitality services trade event

$290 million technology spending forecast for new GCC hotels

The latest communications and infrastructure technology showcased at The Hotel Show, the region's premier hospitality services trade event

Spending on communications and technology infrastructure for hotels in the Arabian Gulf in 2009 and 2010 is forecast to exceed $290 million, according to the latest industry research data.

“This is a very large market relative to the rest of the world and is a reflection of the record number of hotel projects upcoming in the region in spite of the impact of the global downturn,” said Maggie Moore, Exhibition Director of The Hotel Show.

The Hotel Show, the region’s premier trade show for the industry, takes place at the Dubai World Trade Centre from 24-26 May 2009 and will host the latest products, services and technologies from all aspects of the hospitality and leisure sector.

The data on communication infrastructure budgets for upcoming Gulf hotels has been compiled by research company Proleads for The Hotel Show which will feature a special security and technology arena. The accompanying Seven Star Conference will also devote sessions to technology and design, technology for profit, future trends and technological requirements in hotels.

According to the Proleads data, spending on communications infrastructure from cabling, telephony, hotel management systems to hotel room TVs will peak this year in the United Arab Emirates at almost $81 million but decline in 2010 to just over $46 million. Qatar will also record a slight fall from $5.7 million this year to just over $3 million in 2010.

The rest of the Gulf Co-operation Council countries will record rises, led by Oman where spending is forecast to increase from $4 million this year to more than $29 million in 2010. Over the same period, the forecast for Saudi Arabia is a rise from $27 million to $32 million; Bahrain $14 million to $18.5 million; Kuwait $6 million to almost $10 million. Overall, the forecast for the GCC is for spending on communications infrastructure to reach in excess of $290 million over the two full years.

The latest technology solutions for the hospitality sector in areas such as guest and function rooms, public areas, business centres and back offices will be on display at The Hotel Show.

Samsung, which will be exhibiting at the show, with their new range of flat panel televisions, recently announced the launch of a new range of hospitality TVs. Designed to reflect contemporary style in hotel rooms, the new TVs are ready for high-definition digital broadcasts and are made with more environmentally friendly materials. Importantly, they are also energy efficient, saving up to 60% on standard power consumption.

Other sectors of the show will include Interiors & Design; Operating Equipment & Supplies; and The Resort Experience covering all things outdoor; including furniture, accessories and design, including spa equipment and supplies. The Hotel Show 2009 also sees the launch of the first Middle East Spa Summit, addressing issues and trends in spa treatments as well as design, environmental impact, human resources, management and operations topics.

Industry partner for The Hotel Show is Hepo; Corporate Catwalk sponsor is A Ronai; the hotel sponsor for the conference and summit is the Grand Millennium Hotel; audio-visual sponsor is Almoe and the conference producers are D’Events.

Photo caption:

Samsung, a market leader in flat panel televisions, will be displaying its latest range of high technology TVs designed for hotel rooms.

For more information about The Hotel Show, please visit: www.thehotelshow.com

Europeans head for The Hotel Show

Europeans head for The Hotel Show

Manufacturers and suppliers from Europe seek growth at Middle East’s biggest event for hospitality and leisure sector

European manufacturers and suppliers – hit at home by a recession – are seeking new markets in the Middle East where growth continues, say the organisers of the region’s biggest event for the hospitality and leisure sector.

The Hotel Show 2009, which takes place at the Dubai International Exhibition Centre from 24-26 May 2009, showcases the latest products, services and technologies for all aspects of the hospitality and leisure sector.

Companies from a total of 15 European countries will be taking part in The Hotel Show. The largest European participation is from France followed by Germany, Italy, Greece, Spain, Portugal, the United Kingdom, Switzerland and Belgium.

“The hospitality sector in Europe has been hit harder than the Middle East by the economic downturn,” said Maggie Moore, Exhibition Director for The Hotel Show organisers dmg world media. “There can be no doubt that 2009 is a challenging year for the sector worldwide. However, many continue to see growth, albeit at a slower pace than previously, in both budget and premium hotels in the Middle East, providing opportunity for manufacturers and suppliers to the industry.

“The regional investment being made in the hospitality sector – long-term, sustainable developments in particular - will see a quicker recovery from the current economic situation here in the Middle East than in many other regions.”

A visitor survey at last year’s The Hotel Show revealed 22% claiming they had placed an onsite order and 39% intended to place an order as a direct result of attending. A further 42% confirmed they would appoint a new supplier having seen the range of products on show.

This year sees the introduction of four major product and service sectors within the show: Interiors and Design for furniture, furnishings, accessories and design services; Operating Equipment and Supplies, with food and beverage, housekeeping and back of house products and equipment; Security and Technology; and The Resort Experience, including all things outdoor and Hotel Spa.

Industry partner for The Hotel Show is Hepo; Corporate Catwalk sponsor is A Ronai; the hotel sponsor for the conference and summit is the Grand Millennium Hotel; audio-visual sponsor is Almoe and the conference producers are D’Events.

For more information about The Hotel Show, please visit
www.thehotelshow.com