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Rotana Hotels signs nine new pacts worth Dh3 billion

ABU DHABI — Rotana Hotels has signed nine new management agreements in the UAE, Jordan and Bahrain worth in excess of Dh3 billion, on top of the ten properties under construction.

This is addition to the 21 properties already in operation, bringing Rotana Hotel's portfolio to 40 properties by 2008, managing properties with 10,000 rooms from present capacity of 4718 rooms.

"Rotana Hotel's vision is to be the leading and preferred hospitality management company operating hotels, suites and resorts within the middle east. Its growth at 30 per cent in terms of revenues has been exceptional, which rose to Dh750 million during the year 2005 against Dh560 million in the preceding year", said Selim El Zyr CEO, while addressing a Press conference along with Imad Elias COO.

The cost of development of nine properties values Dh1.5 billion, while the total cost of development of all properties the company is managing and operating exceeds Dh5.5 billion.

The Rotana Hotel Group has 15 per cent share in the hotel business in Abu Dhabi and 4-5 per cent in Dubai. The group has plans to increase its stakes in Middle East's tourism industry whose share in international tourism business does not exceed four per cent against a total market of 11 per cent in the world tourism traffic."This means lot of potential to invest in tourism and hotel industry, as Middle East is peaceful and offers tremendous opportunity for growth, Selim El Zyr said. He further said that hotel industry in Abu Dhabi will see a rise in room rent due to severe shortage of rooms which is a must for the development and growth of hotel industry, as investors want a good return on their investments.

"Abu Dhabi need 10,000 rooms in next 5-7 years, while Dubai has already announced ambitious plans of creating 100,000 room capacity within next 5-7 years from present 45,000 room capacity . It means lot of investment will go into the hospitality sector, he viewed.

Rise in room rate will be an incentive for the developers to invest in the industry, which offers 30 per cent less rates to tourists than Dubai.

About the new properties, Selim El Zyr said that Burjuman Rotana Suites would be the first of the new properties to open in August 2006. It will house fully serviced trendy one-bedroom suites, duplex town houses and penthouse.

Next year, a 467 room and suites, Media City Rotana Hotel will open its doors to guests, in Dubai.

In Abu Dhabi, Rotana Hotels have signed a management agreement with a project Park Rotana Hotel & Suites, a joint venture between between Abu Dhabi Tourism Authority (ADTA) and Al Mada Tourism Investment Company. It will have 250 hotel rooms and 300 hotel apartments, besides office and residential spaces and conference facilities.

In Fujairah, 252 rooms Fujairah Rotana Suites is expected to open in mid 2008. The group has also taken over properties in Bahrain and Amman with 300 room and 450 rooms respectively, he added.

On the budget hotels, concept introduced by the company, he said Centro by Rotana in Satwa with 360 rooms and Centro by Rotana Al Barsha in Dubai with 264 rooms will be opened in mid 2008. In Abu Dhabi, Centro By Rotana Abu Dhabi with 350 rooms will open in mid 2008.

Asked about company's plans to go public, he said: "We are weighing all options. We can also offer private placement of our shares in the first phase, if we go for it."

Immad Elias COO said that company has widened its marketing network overseas, by setting-up regional marketing offices in Egypt, Kuwait, Pakistan, India, Oman, Saudi Arabia and Iran, while plans are to open an office in Moscow.