Abu Dhabi-based Rotana Hotels and Resorts is on track to open 14 properties by the end of 2018, a move which will see the company entering new markets like Iran. HOTELS spoke with Rotana President and CEO Omer Kaddouri about the opportunities and challenges in that market and in the Middle East at large.
HOTELS: Rotana is on the verge of having its first property in Iran. Why now?
Omer Kaddouri: Our first hotel in the country, Imam Reza Rotana, is set open in the city of Mashhad in the third quarter of 2018. We have also planned properties in Tehran and Esfahan to capitalize on emerging opportunities in the country’s tourism and hospitality sector. Iran has been witnessing a tremendous growth in the number of tourists as well as business travelers. It welcomed more than 6 million visitors in the year ending March 2017, showcasing a staggering 50% growth from the previous year, and under its 2025 Tourism Vision plan, the country is expecting visitor arrivals to reach 20 million in 2025. With the limited supply of hotels and the lack of international hotel chains gearing up to Iran’s aim to attract 20 million International visitors by 2025, we hope to secure our position in one of the world’s largest untapped markets.
H: You’ve got 48 properties in the pipeline: are the majority of those in the UAE?
OK: Rotana’s portfolio is expanding year-on-year and our pipeline has grown multi-fold over the last five years. With its forward-thinking economy and solid growth prospects, the UAE is one of the fastest-growing markets. We have three hotel openings scheduled for 2018 and several properties in the pipeline for the country. Saudi Arabia is another key focus market for us, where three properties have been lined up for opening this year with a strong pipeline for the Kingdom. In addition, we have an incredible hotel pipeline for the untapped markets in Africa, and our expansion into the continent will set off with the opening of our first ever property in Dar Es Salaam later this year.
H: What’s surprised you in 2017? What are you forecasting for 2018?
OK: Despite the overall economic situation, regionally and globally, 2017 was a good year for Rotana as we launched several new properties and delivered an upright performance across our markets. We remain optimistic and confident that 2018 will be another good year for business expansion. New technological developments will continue to disrupt the hospitality sector over the next 12 months and discerning young travellers, who are looking for unique experiences, will be instrumental in shaping new trends in the industry. The hospitality brands will have to turn their focus on creating unique local experiences, by enhancing design and enriching offerings.
H: How are your target markets performing? What’s the expectation and challenges of each?
OK: Nearly all the economies in our region have identified tourism and hospitality sector as a key enabler of economic diversification and growth, and they have been launching various initiatives to promote the sector accordingly. As a result, we are able to see an uptick in tourist and corporate visitor footfalls, and this presents an excellent opportunity for hotel brands to deepen their presence in the region’s markets.
H: Saudi Arabia tops Rotana’s list of markets for expansion. Three properties are scheduled to open in different cities of the Kingdom by 2018 with an emphasis on its lifestyle hotels brand “Centro by Rotana.” Why KSA?
OK: Saudi Arabia has entered a new era with its visionary leadership charting an ambitious course for its future journey. With a number of recent social and economic reforms, the Kingdom has already driven the message home that it has set on a mission to transform the country into a global economic powerhouse and there is no going back. Along with the massive changes taking place in the Kingdom, the hospitality sector has witnessed significant shifts in demand and product mix. Even as high-end hotels continue to grow steadily, there is a huge market demand for mid-range properties to cater to the budget conscious travelers.