29 Nov 2006
Dubai: Qatar-based Regency Group is planning a regional expansion that will see it build 50 hotels in the next five years and float a partial initial public offering by the end of next year.
Ebrahim Al Asmakh, president of Regency Group, said the company has just established a hotel management company in Dubai named Oryx, which is a partnership with the Dubai government.
Regency plans on operating 12 to 14 hotels in the UAE, Al Asmakh said. The company will begin with a primary focus on three-star hotels priced around $70 to $80 per room, an overlooked segment as developers have focused on luxury four- and five-star hotels in the past.
"Anyone coming from Europe, from Asia, any business travellers who would like to save a little bit of money - this product is perfect for them," he said.
Regency is in discussions with several developers in the UAE including Tat-weer, Al Asmakh said.
"Without a doubt, with the lack of availability at peak times in Dubai in the four and five star hotels, there is a gap in the market for two and three star hotels." Going forward Lewis predicted developers will have a bias towards two and three star hotels as well as serviced apartments.
Outside the UAE, Al Asmakh said he hoped to expand into Asia, especially India, which he said is the future for the hotel and hospitality industry.
Regency is awaiting approval to become a holding company and plans to float a percentage of its shares late next year, he said.
After the process of becoming a holding company is complete, Al Asmakh said he would evaluate his company's valuation and set a timetable to float its shares. The company is currently valued at around 2.5 billion Qatari riyals, he said.
By Ivan Gale
Gulf News 2006. All rights reserved.
