Hotels

HN MEETS DAVID TODD, HEAD OF OPERATIONS, MIDDLE EAST AND AFRICA, IHG

In a series of interviews highlighting hoteliers and their developments in the MENA, HN spoke with David Todd, to learn more about the highly acclaimed operator’s plans and preparations for the upcoming phase.

1. How would you describe the way the MENA hospitality industry dealt with COVID-19 pandemic? This is an incredibly difficult time for us all, with the outbreak of COVID-19 impacting the everyday lives of billions of people around the world. From a global hospitality perspective, our industry faces the biggest challenge in its history, with global travel restrictions and social distancing measures having severely reduced demand in many of our markets. The MENA region is not unique to this scenario. The hospitality industry is all about people. It is built on the foundation of human connection and care for each other. During this difficult time, at IHG, we have ensured we support our communities as much as possible and play our part in relief efforts around the world, including markets across MENA. We know our peers have done the same. The resilience the industry has shown and the community contributions made during this crisis have exemplified the strength of the sector.

2. On a global level, many hotel chains initiated funds and programs to help keep their operations sustainable. Tell us more about IHG's course of action. Faced with the most challenging environment we’ve ever seen, we have had to make some difficult choices to reduce costs and protect our business for the long term. These have been some of the hardest decisions we’ve ever had to make, such as changing working arrangements for many corporate colleagues through reduced hours or furloughing, reducing salaries and canceling our 2019 final dividend to shareholders for the first time in our history. We have also significantly reduced costs and re-prioritised resources to focus only on what is needed to prepare for and drive recovery. 3. How do you think the hospitality industry in the MENA region will pivot post COVID-19? The impact of this crisis on our travel and hospitality industry cannot be underestimated – but we passionately believe it will recover in time. People will always want to explore the world, relax or reconnect with friends and family; the wheels of business must turn, and events still need to be run. The hospitality industry across some markets in MENA has already started to see some early signs of recovery. As we expected, domestic leisure travel is returning first as restrictions are eased across many markets in the region. Business and international travel could take more time to recover as international borders are expected to open gradually. MENA is a dynamic region and has a lot to offer in terms of tourism and hospitality. Be it domestic travel, events, conferences, leisure stays or business trips – people travel to this part of the world for a lot of reasons and enjoy the warm hospitality that is a part of the culture here. 4. Do you believe we will witness new trends and if so, what can we expect to see? As has been the case in previous downturns, we expect domestic mainstream leisure travel to return first, with business and international travel taking more time. While globetrotting isn’t an option, many still dream of escaping their homes for less distant destinations. Road trips will be at the heart of an initial recovery, with people likely to choose their cars over flights for the time being and head to accessible resorts and comfortable, safe and affordable accommodation they can trust. 5. Will the concept of hospitality shift and be disrupted by new models? The biggest change guests will see in hotels is a very visible approach to safety, cleanliness and social distancing but, fundamentally, the hotel experience won’t change – it might look a little different, but it will feel just as special as it always did. 6. Which markets will be of greater interest to you in the near future and why? As before the crisis, the majority of our growth in the MENA region will continue to be driven predominantly by the UAE and KSA. We also see opportunities more broadly across the region, particularly in Oman and Egypt. We are also working on a number of projects in Africa, both new builds and conversion in South Africa, Zimbabwe, Ethiopia, Kenya, Cameroon and Morocco.

7. Where do you see the brand in the next five years? The pandemic has proven to be extremely challenging for the hospitality industry, however, we know that the MENA region is a prime business hub and consists of a vast number of popular tourist destinations. We are therefore committed to accelerating growth and expanding our presence across key markets in the long run. ihg.com

WILL ACCOR AND IHG MERGE TO FORM THE WORLD'S BIGGEST HOTEL CHAIN?

According to Reuters, shares in France’s Accor rallied after Le Figaro newspaper reported it had examined a potential merger with British rival InterContinental Hotels (IHG) that would create the world’s biggest hotel group. Avani Hotels & Resorts has confirmed that the brand is on track to open more than 10 new properties in the coming years, including debuting in four new countries. “We are pleased that our partners are reaffirming their commitment to long-term growth with Avani, as demonstrated in their decision to continue with the delivery of at least seven new properties by the end of 2021. With yet more projects expected to be completed in the following two years and additional pipeline announcements coming soon, Avani continues to be the fastestgrowing brand in the company,” said Dillip Rajakarier, CEO of Minor Hotels, the parent company of Avani Hotels & Resorts. Two properties are underway in the MENA region. The first is Avani Palm View Dubai

EAST, AFRICA AND INDIA

As part of Swiss-Belhotel International’s group development, the Europe, Middle East, Africa (EMEA) and India regions have been merged. The executive team based in Dubai will now also be responsible for the group’s operations in Europe while working closely with Gavin M. Faull, chairman and president of Swiss-Belhotel International to develop new opportunities across the continent. The brand’s flagship hotel SwissBelhotel du Parc, Baden Switzerland will be the operational base for Europe. Making the announcement, Faull, stated, “This latest development is aimed at increasing efficiency and flexibility through strategic consolidation of our management An Accor spokeswoman said the company did not comment on market rumors. IHG declined to comment.

A marriage between the two firms would propel them far ahead of US rival Marriott by number of hotel rooms, with over 1.6 million between the two.

It could also make geographical sense, with Accor and its brands more skewed towards Europe, while IHG has larger operations in the United States and is also growing fast in Greater China. ihg.com

Read the full article on hospitalitynewsmag.com

AVANI HOTELS & RESORTS CONTINUES ITS EXPANSION PLAN WITH TWO PROPERTIES IN THE REGION

accor.com Residences & Suites, UAE, opening in Q4 2020. In the final stages of development in a prestigious location overlooking the Palm Jumeirah, accommodation options at the new-build, 264-key Avani Palm View Residences & Suites range from studios to multi-bedroom residences.

The second property is Avani Muscat Hotel, Oman, opening in Q1 2021. Representing the brand’s Omani debut and its second country in the Middle East region, the Avani Muscat Hotel will be set in Seeb, the heart of Muscat’s westward growth, offering laidback days of rooftop lounging and shopping. The hotel will offer 161 keys, in addition to 45 studios and one, two and three-bedroom serviced apartments.

DUBAI TO BE SWISS-BELHOTEL INTERNATIONAL’S REGIONAL MANAGEMENT HUB FOR EUROPE, MIDDLE

avanihotels.com and operations across Europe, Middle East, Africa (EMEA) and India."

Read the full article on hospitalitynewsmag.com

IN BRIEF

JLL’s eye on Cairo’s hotel supply According to JLL’s ‘The Cairo Real Estate Market – Q1 2020’ report, the global COVID-19 pandemic has resulted in a new wave of transformation in e-commerce in Cairo and across Egypt. Due to the closure of malls, the logistics landscape in Egypt is transforming. Consumers have gained a taste for the efficiency associated with e-commerce, and therefore the sector is now striving to keep up with the exceptional increase in demand for online shopping. Cairo’s hotel supply, remained stable, at 23,000 keys with no additional completions in the first quarter of 2020.

Around 400 keys are expected to be delivered by the end of the year. Yet, some projects have been put on hold while others are expected to experience delays. As with other parts of the region, the hospitality sector has been the most severely impacted as a result of the pandemic. jll.com

Minor Hotels to manage the rebranded Ibn Battuta Gate Dubai Hotel UAE-headquartered upscale residential, hospitality and commercial property developer Seven Tides has confirmed Minor Hotels will be the new operator of its five-star, 396-key Ibn Battuta Gate property in Dubai.

The property will be rebranded to Oaks Ibn Battuta Gate Dubai Hotel, the newest addition to the Oaks Hotels, Resorts and Suites portfolio. It is the company’s second branded property in Dubai and its third in the United Arab Emirates. minorhotels.com