Rotana to Open 13 New Hotels to Accelerate Growth

Rotana to Open 13 New Hotels to Accelerate Growth

by Zaara 04, May 2020

Rotana is a well-known reputed hotel management company established in the Middle East, Africa and Turkey. It has got more than hundreds of properties spread over twenty-six cities, and they manage five sub-brands which include Rotana Hotels and Resorts, Centro Hotels by Rotana, Rayhaan Hotels and Resorts by Rotana, Arjaan Hotel Apartments Rotana and The Residences by Rotana.The headquarter of Rotana is located in Abu Dhabi, United Arab Emirates. To escalate the growth, Rotana decides to open new 13 hotels in various markets around the world as chief executive officer Guy Hutchinson said it.The new hotels will be established in the region of the Middle East and North Africa (Mena Area) Africa, in Bosnia and Herzegovina.

Rotana on Progression

Rotana currently runs more than hundreds of properties in the Middle East, North Africa, Turkey and Western Europe too. According to Guy Hutchinson, Saudi Arabia's whole market is underserved with sixty-five thousand rooms across the county and with thirty-five thousand in Makkah alone. It's a massive opportunity for him as a lot of activity is to be done in Saudi Arabia and a high focus market for him. Saudi Arabia is organizing special visas for within twenty-four hours to escalate the visitor's numbers who would be attracted by tourism. Currently, Rotana is having three hotels in Riyadh and two hotels in Jeddah. A third hotel is planned to open in Jeddah soon while is intended to establish in Al Khobar and Dammam.

The group of Abu Dhabi hotels are also planning to establish new hotels in Syria and Iraq according to the company’s regional plan.

Rotana opened their property in Abril last year in Iraq.  In January-February period, Rotana hotels in Abu Dhabi has distributed a stronger growth rate if compared to any other emirates. Recording 3.5 per cent rise per occupancy and also 2.3 per cent escalation in average daily rates and 5.9 per cent growth in revenue per room.

The properties posted year on year increases of total seventeen per cent and fifteen per cent in occupancy, twenty-nine per cent and forty-eight per cent in RevPAR in Beirut and Riyadh. The UAE, The United Kingdom, Germany, Saudi Arabia and India ranked in the list of the leading feeder markets in 2018.

On the challenges faced by the hospitality sector, Hutchinson stated that GCC region is anticipated to see an additional fifty-eight thousand rooms entering the market in 2019 including destinations such as Dubai, Makkah and Riyadh accounting for the highest upliftment in supply. The rooms will be boosting competition in future pressuring room rates.

Guy Hutchinson’s View

The CEO of Rotana, Guy Hutchinson’s words upon this matter was,

“This year, we opened one hotel in Babylon in Baghdad. In the next 18 to 20 months, we will open another 13 hotels across the region including the UAE, Saudi Arabia and in Dar es Salaam in Africa,

Saudi Arabia and the whole market area , with 65,000 rooms across the whole country [and] with 35,000 of those in Makkah single. There a fair amount of activity in Saudi Arabia, and it is a high focus market for us,"

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