Government support drives international hotel investment in Turkey

Turkey is seeing some notable hotel investment thanks to an increase in visitors to the nation, which straddles the continents of Europe and Asia. According to TopHotelProjects.com, the country's pipeline include 53 new "top hotels" with a total of 9,400 rooms. 

The investments are supported by the government through the allocation of public land for private hotel projects. The directorate-general of investments and businesses in the Ministry of Culture and Tourism announced a list of 44 plots at 22 locations last year for a total capacity of 11,316 beds. 

Developments include a large-scale hotel in Yalova on the Marmara Sea, south of Istanbul, and two properties in Bursa, southeast of the capital city. The total investment is estimated at more than 500 million euros. Four Hilton hotel projects are set open this year. Other upcoming international brands poised to open in the city throughout the coming months include a Novotel from Accor, a Mandarin Oriental and a Fairmont. The German Steigenberger Hotel Group is also investing in Istanbul. In 2015, Starwood will open three more hotels in Turkey – a Four Points by Sheraton hotels in Batisehir and Dudullu districts in Istanbul and Sheraton Istanbul Atasehir on the Asian side of the city. This will bring the company’s footprint in Turkey to 14 hotels under seven of its brands by the end of this year.

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Upper-upscale and luxury development is also seeing a boom. JW Marriott Hotels & Resorts is set to open its second JW Marriott Hotel in Turkey on May 15. The 107-room property is located in the Yalikavak town on the Bodrum Peninsula, and is the brand’s seventh property in Europe. St. Regis Hotels & Resorts, meanwhile, is opening St. Regis Istanbul. Owned by Nisantasi Konaklama ve Otel Hizmetleri A.S. (Demsa Group), The St. Regis Istanbul marks the debut of the luxury brand in Turkey. And Hotelier Middle East reports that the Jumeirah Group recently signed a management agreement with Targets Investment Turizm Isletmeleri AS to operate a luxury hotel in Bodrum on Turkey’s Aegean coast. Following the signing of the agreement, the hotel formerly known as the Golden Savoy will be operated under the Jumeirah brand as Jumeirah Bodrum Palace Hotel, Turkey with an official opening scheduled for May 1. The hotel is situated approximately 10 minutes from Bodrum city center.

TopHotelProjects.com notes that regardless of state support, the interest in hotel projects remains high. Last year, the head of the conglomerate Altinbas Holding, Vakkas Altinbas, announced that his company wants to invest at least $100 million in a luxury hotel in northern Cyprus. The property will be close to Girne (Kyrenia), although a final site selection has not yet been taken. CVK Holding also reportedly intends to invest in luxury hotels, and is seeking to open nine properties by 2023, including one each in Istanbul/Tophane and in the Aegean vacation destination of Bodrum.

For midscale development, construction company Kavanlar Insaat recently built the Hampton by Hilton hotel in Kocaeli, set to open next month with more than 207 rooms.

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