Stephen Banks

'Fairmont is expanding aggressively outside North America,' says Stephen Banks, Executive Director with responsibility for Europe, Middle East and Africa. 'The move into the residential market is something hoteliers are doing very successfully around the world.

'We were delighted to be able to announce our 558 luxury apartments at The Fairmont Palm Residence at the Arabian Travel Market. This is a $250 million joint venture between IFA Hotels & Resorts and Kingdom Hotel Investments, and will bring the very highest hospitality standards to the freehold property sector.'

Prices for these apartments range from $500,000 for one-bedroom to $1.2 million for four-bedrooms; and there are also town houses and penthouses as well. Naturally an exclusive health club and swimming pool complex is part of the development.

'It's a lifestyle thing. People like the idea of living and working in an environment that includes a five-star hotel standard of service,' says Mr. Banks.

In countries like the UAE expansion generally means new-build, but in Europe acquisition of existing property is more normal. Fairmont has not been standing still with a major deal in Monte Carlo last December and this year's sensational coup, the acquisition of The Savoy, one of the top London hotels.

'The Savoy fits in well with Fairmont North America as around half its guests each year are from the United States, but we hope to attract more clients from the Middle East. This is an exceptionally well situated hotel in the heart of London and relatively small with 263 rooms and 73 suites.

'It is also a great mix of old and new Britannia, with Gordon Ramsey running the Savoy Grill, London's top chef, and afternoon teas in the lounge. Some guests would never stay anywhere else in London.'

Fairmont bought The Savoy for $2.5 billion in a joint venture with Kingdom Holdings and the Bank of Scotland. 'This partnership has the potential to do several more deals,' hints Mr. Banks.

'In Dubai we are No1 in our set and are working on a lot of projects for the next five to 10 years. Many upscale clients in the Middle East now spend their summers in the region, and we have seen occupancy rates of 80% instead of 40% in the summer months recently.

'This market reminds me of Hong Kong 10 years ago. Then Hong Kong was the place to be for hospitality, now it is Dubai. Standards are exceptionally high, with service levels similar to the Far East, and all the innovation is seen in this market.'