With Michael Weyland, General Manager of Citymax Hotels
By definition, mid-market hotels (also commonly known as budget hotels), are establishments that fall between 2-4 star rankings and often offer premium services at rates considerably lower than 5-star hotels. These hotels tend to be more functional than 5-star hotels, with location and practicality more important than amenities more suited to a resort stay e.g. a water park or beach. However, that's not to say that these mid-market hotels will lack in comfort, style or facilities.
The reality of the hospitality situation in the current economic climate is that more and more people are becoming conscious about their spending. The financial crisis has left companies and individuals trying to get more value for their money, especially frequent business travelers, which explain why mid-market hotels are so successful in the region. Here is a quick overview of the U.A.E. mid-market hotels:
- Current number of mid-market hotels: 70
§ 8 (2-star)
§ 18 (3-star)
§ 44 ( 4-star)
- Current room Capacity: 15,109
- Total number of mid-market hotels by 2013: 107 (34% increase)
- Total room capacity of mid-market hotels by 2013: 26,782
The above numbers are a clear indication of the increasing demand of mid-market hotels. Our research has shown that current investments in this market are over $1.57 Billion in the U.A.E. alone, an astronomical amount compared to reports by 5-star hotels that announced big losses and a decline in investments over the past few years. The breakdown of investments is:
- $123.68 million by 2-star hotels
- $387 million by 3-star hotels
- $1.065 billion by 4-star hotels
On a broader scale, we anticipate a 44% increase in the number of mid-markets hotel in the G.C.C. as a whole, based on announced and ongoing projects. There are currently 134 mid-markets hotels in the G.C.C., which will be increased up to 234 hotels by 2013, shifting the room capacity from over 25,000 to over 50,000 rooms.
Amine Hamdani, Vice President CB Richard Ellis Hotels, the hospitality division of the global property consultancy said: "There is a saturation of 5-star hotels in the UAE market and there is a definite need for a supply of quality mid-market accommodation options. Fortunately a number of companies seem to be adopting this operating model and we are seeing more of these properties being announced. These properties will further develop the UAE as a premier holiday and business destination and will open up the region to a broader spectrum of travelers"
- Ends -
Issued on behalf of Citymax Hotels by Grayling Momentum
About Citymax
Established in 2009, Citymax Hotels, part of the Landmark Group, provide quality accommodation at affordable rates. Entering the market in April 2010 with their first property open in Al Barsha, Dubai, and following with a further two properties in Bur Dubai and Sharjah later in the year, Citymax Hotels address the substantial gap that exists for value driven and mid-market hotels in the region. With additional hotels planned Citymax Hotels offer contemporary hospitality at extraordinary value in prime city locations throughout the Middle East. The smart yet stylish hotels dispense non-essential, costly frills, the savings of which are passed on to the customers. Facilities at all of the properties include a fully equipped gym and swimming pool, an all day dining buffet restaurant serving a wide range of international dishes, a selection of additional F&B outlets and a 24 hour coffee shop with convenience store.
About Landmark Group
Founded in 1973 with a single store in Bahrain, the Landmark Group has successfully grown into one of the largest and most successful retail organizations in the Middle East and India. An international, diversified retail conglomerate that encourages entrepreneurship to consistently deliver exceptional value, the Group operates over 900 stores encompassing over thirteen million square feet across Middle East, India, Egypt, Turkey, Yemen and Pakistan. Landmark Group employs more than 31,000 employees and provides a value-driven product range for the family through its core retail concepts: Centrepoint, Babyshop, Shoe Mart, Splash, Lifestyle, Beautybay, Iconic, Home Centre, Q Home Décor, Max, Shoexpress, E-Max and Landmark International, which includes franchise international brands such as New Look, Reiss, Aftershock and Koton. Besides retail, the Group has also diversified in the leisure, food and hospitality segments with Fun City, Gourmet Station, Spaces, Citymax Hotels and Foodmark, the restaurant division which includes franchise brands like Mango Tree, The Meat Company, Carluccio's, La Gaufrette, Bazerkan and Ushna.
For Information contact:
Tom Watterson
Grayling Momentum
Tel: +971 4 390 1630
Email: tom@graylingmomentum.com
© Press Release 2010
