Kuwait's Action Hotels plans hotel for Dubai Media City

IBIS Hotel
IBIS Hotel

Action Hotels has one other Dubai property: a four-star ­hotel under construction in Dubai Healthcare City on the other side of the emirate, close to Sharjah. It owns a Premier Inn property in Sharjah and is developing ­other UAE hotels, including a Tulip Inn at Ras Al Khaimah and a Staybridge Suites in Abu Dhabi.

Charles Bott, the head of hotels, hospitality and leisure at the property consultancy Cavendish Maxwell, told The National that branded, budget and mid-market hotels in the Middle East were a "relatively new phenomenon," but there has been a surge of investment in them, possibly due to the region's higher-than-average daily room rates and occupancy levels. He added:

“A second factor is the high number of Middle East business guests who have come to believe in the importance of brands.  Luxury hotels have educated the market to like brands.” 

Budget hotels also tend to be more profitable than five-star properties as they cost less to develop and have more resilient occupancy levels in times of a downturn, Bott added. “Worldwide trends show that a return on investment for a five-star hotel would take–on average–between seven and nine years, compared to the return on a budget hotel of five to six years.”

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Suggested Articles

Kansas-based management and ownership company True North Hotel Group is opening four new hotels within a month.

After launching in North Carolina, the brand will expand into Virginia, Tennessee, South Carolina and Texas.

Notable properties are slated to open over the next few months in California, Florida and Texas.