Serviced apartments foster high returns in UAE, KSA, Qatar

A new report from Colliers International Hotels suggests one of the key strengths of the serviced apartment business model in the UAE, the Kingdom of Saudi Arabia and Qatar is its versatility to change the target market profile between long and short stay to suit market conditions and maximize revenue.

Brand strength is a strong driver of serviced apartment demand with GDS, direct bookings, and hotel website bookings accounting for 40% of total bookings. A strong brand with a regional presence and strong online capabilities is essential to help and drive sales in all three markets, according to Colliers.

Here is Colliers summary of market conditions for the serviced apartment segment in the UAE, KSA and Qatar:

UAE
The first six months of 2013 has seen positive growth for serviced apartment occupancy levels in the UAE. During this period, occupancy levels have increased by 8.2% in Dubai, 5.5% in Abu Dhabi, and 20.3% in Sharjah. This sharp increase in Sharjah is indicative of an improving market after years of stagnation, although this has come at the cost of the average rate. Market potential: 2,836 units over and above the forthcoming supply across Dubai and Abu Dhabi between 2013 and 2017.

KSA
There is a considerable gap between the locally branded furnished apartment supply and internationally branded serviced apartments such as inconsistent service standards, poor construction standards and a lack of ancillary facilities. As such only ‘first class’ furnished apartments can be considered to be competitive with internationally branded serviced apartments. Market Potential: 6,495 units over and above the forthcoming supply between 2013 and 2017. The primary scope for development of these units are in the Province of Makkah, which contains the two key cities of Makkah and Jeddah.

Qatar
The vast majority of serviced apartments are located in Doha, of which 79% of the total unit stock is currently classified in the ‘deluxe’ category and 21% is classified in the ‘standard’ category. Whereas serviced apartments in the UAE mainly target short stay guests as a means to maximize revenue, this is not the case in Doha, in which the long stay segment represents 74% of total demand. Market potential: 525 serviced apartment units over and above the forthcoming supply between 2013 and 2017.

Source: http://www.hotelsmag.com

Ascott has opened its first premier serviced residence in Qatar

The Ascott Limited (Ascott), has opened its first premier serviced residence in Qatar, Ascott Doha. With the 229-unit Ascott Doha, Ascott has a network of over 1,000 apartment units across six properties in four countries in the Gulf region.

At Ascott Doha, discerning travellers can experience an exclusive and luxurious stay within the elegantly designed apartments, complemented by personalised services and comprehensive recreation and business facilities. The serviced residence is located in the diplomatic centre of the city and at the north end of the Corniche waterfront promenade, fronting Doha Bay, offering stunning vistas of the Arabian coast and easy access to City Centre Mall, Qatar’s best known retail and entertainment spot. Business travellers staying at the property will find themselves a stone’s throw away from the Doha Exhibition Centre and a 10-minute drive from the city’s business and financial district.

Mr Vincent Wee, Ascott’s Managing Director for India and Gulf Co-operation Council (GCC), said: “We see strong demand for serviced residences in Qatar. Qatar, one of the fastest growing economies in the world, continues to attract significant foreign direct investments. It is also a host to major international events such as the 2022 FIFA World Cup. Our first serviced residence in Qatar, Somerset West Bay Doha, has been achieving occupancy of over 80%. Ascott Doha heralds a new benchmark for luxury serviced residences and it is well-positioned to attract the growing number of expatriates and travellers arriving in the city.”

“Ascott is a Singapore brand which has gained international repute for its quality properties worldwide and we welcome travellers to experience our new premier Ascott Doha. We will also open our properties in Oman, Somerset Panorama Muscat and Sohar Garden Residences, over the next 24 months. To expand our presence in the GCC, we will continue to establish new partnerships with property owners in Qatar, Bahrain, UAE, Oman and Saudi Arabia,” added Mr Wee.

Ideal for guests on relocation, a business or leisure trip, Ascott Doha offers guests a range of spacious studio, one, two and three-bedroom apartments to suit their lifestyle needs. Each apartment comes with a fully-equipped kitchen, en-suite bathrooms, separate dining and living areas as well as modern amenities such as a home entertainment system, complimentary wireless Internet access and iPod docking station.

To relax, guests can choose from an indoor or a rooftop temperature-controlled pool, a fully-equipped gymnasium, jacuzzi, sauna and steam rooms. Ascott Doha also provides business travellers with business centre services, meeting rooms and WiFi access. Guests can purchase groceries at the property’s mini-mart and cook within the comfort of their apartment or simply visit the restaurant and cafe located at Ascott Doha for a satisfying meal.

Besides Ascott Doha and Somerset West Bay Doha, Ascott also manages Ascott Park Place in Dubai and Somerset Al Fateh in Bahrain.

To celebrate the opening of Ascott Doha, Ascott is offering special introductory rates from QAR 850 per night. Promotion ends on the 30th December 2012 and is subject to availability.

Qatar records strong growth among GCC visitors

Officials at the Qatar Tourism Authority (QTA) have released a report on the performance of the tourism sector in the country during the first quarter of 2012, revealing a 22 per cent increase in the number of GCC visitors to Doha.

According to the report, average hotel occupancy rates reached 64 per cent from January to the end of March, and revenues of four and five star establishments stood at QR734,349 million, an increase of QR32 million compared to the same period in 2011.

The report also revealed there are currently 112 hotels in the capital.

QTA chairman Ahmed Al Nuaimi said the report revealed the sector was growing to meet the demands placed on it.

“These statistics show that Qatar’s tourism and hospitality sector is going from strength to strength,” he explained.

“Qatar has established itself as a unique tourism destination as well as playing to our strengths as a business and sports tourism.

“The strong showing for our hotel sector shows how it is maturing ahead of the challenges we face in the next decade.”

According to the report, average hotel occupancy rates reached 64 per cent compared to 68 per cent during the first quarter of 2011.

But there has been a 12 per cent increase in the number of hotel facilities compared to last year, which consequently led to an increase in the number of hotel rooms and serviced apartments available on the local market.

There are currently 85 hotel facilities compared to 74 hotels in 2011 and their revenues are also stronger than for the same period last year.

Hotel sector statistics show that revenues of four and five star hotels from January to March 2012 were better than the 2011 results during the same period.

Four star hotel revenues increased by QR5 million reaching QR27 million, and five star hotels surged dramatically during the same period, reaching approximately QR32 million out of the total revenues during 2012.

In terms of GCC tourists visiting Qatar statistics reveal a 22 per cent growth rate in visitors during the first quarter of 2012.

Travellers from Saudi Arabia represented the majority of tourists from the GCC countries with 161,549 tourists for the first quarter of 2012, a 25.3 per cent increase.

Overseas visitor numbers also increased, especially from Asia. Asian tourists visiting Qatar registered the highest growth rate with a total of 36,385 visitors in the first quarter of 2012, followed by European tourists with a total of 10,456 tourists.

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The Rezidor Hotel Group and the Al Jassim Group have signed a deal to open Hotel Missoni Doha in 2015

The luxury lifestyle hotel will be designed exclusively by Rosita Missoni and feature around 200 rooms and 70 serviced apartments.

Kurt Ritter, president and CEO of Rezidor, said: “Qatar benefits from very healthy economic conditions. Its people are receptive towards a new kind of luxury and lifestyle – our Hotel Missoni flagship will be a perfect addition to Doha’s rising market.”

Sheikh Khalid Bin Jassin Al Thani, CEO of Al Jassim Group said: “Inspired by Qatar Nation Vision 2030, we actively seek out new partnerships and aim to raise the bar at every opportunity. Hotel Missoni Doha will add significant value to the existing urban aspect and contribute to the commitment and vision of Qatar by greatly supporting the transformation of Doha into one of the world’s leading business, sport and cultural cities.”

The hotel will be situated just 10 minutes from the International Airport and the West Bay area, along the C Ring Road. It will feature a signature Cucina restaurant as well as an 800 square metre spa and fitness area and around 1500 square metres of conferencing and banqueting facilities, including a ballroom nd business centre.