Rotana charts ambitious roadmap

Hotel management company Rotana started off the year on a positive note with sustained performance across key markets in the Middle East. Acting CEO Guy Hutchinson shares insights at a recent round-table conference.

TT Bureau

How have the first two months fared in terms of ADR and RevPAR?
Most of our markets in the region posted firm growth in occupancy, average daily room rate (ADR) and Revenue per available room (RevPAR), and this is chiefly due to our relentless focus on improving product offering, expanding portfolio and enhancing commercial efforts. During January and February, Rotana hotels in Abu Dhabi delivered stronger growth as compared to properties in other emirates and recorded a 3.5 per cent growth in occupancy, 2.3 per cent increase in ADR and 5.9 per cent rise in RevPAR, while its properties in Beirut and Riyadh posted 17 per cent and 15 per cent rise in occupancy and 29 per cent and 48 per cent surge in RevPAR respectively, as compared to the same period in 2018. Similarly, ADR and RevPAR soared 24.8 per cent and 9.8 per cent in the company’s resort in Sharm El Sheikh, while Manama saw a 5 per cent rise in occupancy rates.

Could you tell us about the key feeder markets?
Room nights coming from Saudi Arabia have increased by 15 per cent in the first two months of this year. In 2018, the UAE, the UK, Saudi Arabia, Germany and India topped the list of leading feeder markets. Major upcoming events such as Expo 2020 Dubai and tourism initiatives including the $500 billion Red Sea coastline project, NEOM mega-city project, Al Qiddiya Entertainment City, Farasan Islands and the 3,000 square kilometre Amaala luxury destination project in Saudi Arabia, will further strengthen the region’s reputation as an attractive destination for tourists and investors alike. In addition, international events in the region such as Special Olympics World Games Abu Dhabi 2019 not only help drive occupancy but also promote the destinations worldwide. Similarly, the ongoing reforms aimed at easing visa regulations will make way for new source markets.

What are the challenges faced by the hospitality sector today?
The GCC region is expected to see an additional 58,000 keys in 2019, with Dubai, Makkah and Riyadh accounting for the highest increases in supply. These new stocks will intensify competition leaving further pressure on room rates. As a result, maintaining profit margins will be a key challenge for hoteliers this year.

Could you share details about new openings expected over the next two years?
By 2020, Rotana will open nine new properties to bring its strong inventory of operational keys to 21,135. Properties opening in Q2 2019 include Johari Rotana, Dar Es Salaam (256 keys), Bosmal Arjaan, Sarajevo (130 keys) and Dana Rayhaan, Dammam (285 keys).