INTERVIEW Rotana’s ambitious expansion plans

One of the leading hotel management companies within the region, Rotana's aggressive expansion plans are seeing the company grow from 2 properties in 1993 to a total of 100 by 2020, with several further properties planned for opening and new projects in the pipeline. Aviamost’s Managing Director Fady Boustany met with CEO Omer Kaddouri, President and Chief Executive of Rotana Hotels at ATM 2016 to know more about its plans for the future

How was the 2015 for Rotana? We know that there was a slowdown in 2015.

Our plans went as normal as most of our hotels were nearly finished. And it has not upset our plans for the future as we opened 5 hotels in four months this year, so this is an indication that things are still strong and we have 5 more to do this year and we are signing more hotels.

So in terms of development for Rotana or any other chain in the region, things are still very strong.  In terms of business in 2015, because of the increase of room inventory, because of geo-political issues, because of the price of oil and other very important key reasons the whole of Dubai has experienced a reduction in average room rates.

How about occupancy?

The occupancy has dropped by at least one point year on year which is very good for us as it means more and more people are still coming to Dubai, to the emirates and to the region.

Last year the Chinese figures were up. How important is the market for you?

China is very important market for us and for years we have had an office in Beijing as it’s very important to have someone talking about our hotels in China. It is a sales tool to bring business from China into the region and we have had success as we have seen increased room nights. But need to make more efforts to bring them as China is a very big market but we are slowly getting there and I’m very happy with the progress.

Russia is a very important market and obviously due to the political issues, we are seeing a reduction of business from Russia, but we are hopeful that it is coming back. The leisure business in Sharm Al Sheikh was strongly affected.  But we are hearing that things are going to be better soon for the normal trend of Russian business coming into our region.

I’m closely following up with tour operators who say there will be an improvement soon. It’s affecting us in our resorts in the UAE. Our leisure business is not seeing an increase in Russian business yet, but on the contrary we are seeing an increase in guests from Germany, UK, Slovenia, the Czech Republic, Poland and Hungary.

What are your expansion plans for the future? Any resort in Dubai?

Last year we have signed 1,000 hotel rooms in Dubai we will have the most beautiful luxury hotel in Dubai by 2019 right next to Fairmont on Sheikh Zayed Road launched with an Abu Dhabi family they have signed with Rotana Hotel, to build 400 hotel rooms, 200 hotel apartments and 400 branded residences which we will be managing with some nice F & B outlets.

We have signed more hotels in Ras Al Khaimah, Abu Dhabi, across the GCC, Africa, India, and we are moving into Jakarta, Malaysia and Bangkok. So you will see Rotana growing globally. And I’m working very hard to open in London, Paris, Munich, Hamburg and we would very much like to be in Moscow.