Marriott expands its hotel footprint in Middle East
Marriott International has announced plans to open five hotels across the Middle East & Africa and establish a regional headquarters in Dubai, signalling its continued confidence in the long-term growth prospects for the hospitality industry in the region. The US-based hotel chain said today it plans to open two properties in Algeria, and one each in Ghana, Morocco, and Egypt. The hotels are scheduled to open under long-term management contracts over the next 36 months and represent the company's Marriott Hotels and Resorts and Marriott Executive Apartments brands.
Middle East: 2009-11-11 16:00:50
The new properties will bring the total number of Marriott-owned hotels in the region to more than 70, offering nearly 20,000 rooms in 12 countries.
The size of Marriott's development pipeline illustrates the company's long-term confidence in the region, 'especially since this growth is occurring in the context of the difficult global economy and tight credit markets', said Ed Fuller, president and managing director of International Lodging for Marriott.
Hotel revenues have declined throughout most of the Middle East due to the global crisis, but the region still commands some of the highest room rates and occupancies in the world.
Fuller said he believes the Middle East 'appears to have weathered the global economic storm, and we're beginning to look forward to rising occupancies through the end of this year into the next.'
Business goes in cycles, he noted, and the impact of the current downturn will eventually fade. 'Hotels live for long-term contracts, and with our growth strategy we know that we are going to go through different up and down cycles. So we generally aren't looking at the short term when we open a hotel, and in each of these markets the long term potential is excellent,' he said.
The company believes it has been able to ride out the downturn because it has a brand that people recognize and it has opened properties in the right locations. Each of Marriott's existing hotels in the region ranks at or near the top of its competition in terms of customer preference, guest satisfaction, and operating results, he said.
Marriott, which operates more than 3,300 properties throughout the world, also revealed today that it has formed a new Middle East and Africa regional office based in Dubai, thus elevating its current 'area office' in the emirate to the same status as its other regional headquarters in London and Hong Kong.
'The opening of our regional headquarters in Dubai recognizes the dynamic nature of tourism in the Middle East and the emergence of Africa as a viable destination for business and leisure travel,' Fuller said.
Also this week, Marriott announced it would be launching a new brand called the Autograph Collection. The brand will enable existing high-end, independent hotels to become part of the Marriott system while allowing them to retain their identity.
The company said it so far has no plans to unveil the brand in the Middle East.
