MUSCAT -- Interior Hotels Co SAOG (IHC), which owns and operates the Golden Tulip Nizwa property, has signed an agreement to acquire the four-star Park Inn by Radisson Muscat in Al Khuwair. The outlines of a deal were announced in a disclosure notification to the Capital Market Authority (CMA) at the weekend. The company said it had inked a 'Sale & Purchase Agreement (SPA) with Al Ahlam Hotel Management LLC, the sole owner of the Park Inn by Radisson Muscat property.
Al Ahlam Hotel Management is a wholly owned subsidiary of leading property development and real estate management firm Al Habib and Co LLC. "IHC is in the process of completing the acquisition and hopes to finalise it in the near future," it said, adding that the move would enable IHC to expand its operations and cater to a wider customer base. The sale comes just over three years into the launch of the 175-guestroom midmarket property in March 2009.
Located alongside Sultan Qaboos Street, a short drive from Muscat International Airport and within easy reach of the capital's ministerial and diplomatic enclaves, the property has been targeted primarily at business travellers and tourists. A rooftop swimming pool offering panoramic views of the city has been one of its many attractions.
Recently, the Park Inn by Radisson Muscat was named the 'Leading Hotel in Responsible Business' in a ranking of over 1,300 properties that are part of the global Carlson Rezidor Group. The hotel was cited for its efforts in energy consumption and other related initiatives. For Interior Hotels, the deal effectively enlarges its presence beyond Dakhiliya Governorate, where the Golden Tulip Nizwa is located, to encompass -- for the first time the capital region as well.
IHC has been aiming to grow its portfolio on the back of the success of its flagship investment, the Golden Tulip Nizwa. Despite a challenging year for the domestic tourism sector linked to political upheavals in the wider Arab region as well as the euro zone debt crisis, Interior Hotels achieved a turnover of RO 2.211 million in 2011, which was up 14 per cent from the previous year's turnover of RO 1.944 million.
It was the highest revenue ever achieved by the hotel since inception, although most other properties saw a drastic drop in earnings. Net profit after tax soared 19 per cent to RO 631,460 for the year ended 2011 compared to RO 530,988 of the previous year. The company says it is confident of an upturn in the tourism sector underpinned by ongoing investments by the government and private sector in infrastructure and leisure schemes.
"The Government of Oman has continuously developed comprehensive development programmes that has helped to sustain the tourism industry and that is evident in the significant investments in tourism facilities and infrastructure thereby increasing numbers of hospitality business in the Sultanate," the company's Chairman stated in the annual Board of Directors' Report for 2011.
"The government's long-term economic plan to diversify income resources aims to make the tourism industry as one of the important revenue generating sectors in the coming years. The overall scenario of the tourism sector is generally positive and is expected to grow in terms of both leisure and business-related tourism demand," the Annual Report added.
© Oman Daily Observer 2012
