State of Lebanon's hotel industry
The hotel industry is defying all odds in Lebanon. Despite the market shakiness, continuous crises and chronic downturn, over eight properties are expected to open their doors in the coming few years
Beirut: capital of luxury
High-end properties will always find their way into the country. Mandarin Oriental Hotel Group has announced that it will manage a new luxury hotel with 280 rooms and suites, and 103 branded residences, expected to open in Beirut in 2018. This will replace the famous ‘Egg Building’ in Downtown Beirut. The property has an investment that exceeds USD 200 million and it is owned by the Saudi Olayan Group. Other international chains, including Hilton and Ritz Carlton, are also eyeing developments in the local market. Local developer Achour Holding is implementing Eden Rock, a luxury resort in Ramlet Al Baida, including a large-scale hotel and other topnotch facilities.
More chains
The coming year will witness more international chains expanding their presence in the area. Golden Tulip will operate seven properties locally with the opening of Royal Tulip Achrafieh (77 rooms) and the Golden Tulip Jounieh, with 60. “We will become the largest hospitality group in Lebanon by the number of hotels,” said Amine Moukarzel, president of Golden Tulip MENA. “…and the list continues in Lebanon,” he added. Dubai-based Hospitality Management Holdings (HMH) is planning to launch the Coral Beirut Concorde Hotel. The company already runs two local properties: four-star Coral Beirut Al Hamra Hotel, and two-star EWA Beirut Raouche hotel apartments. Bossa Nova Beirut, a four-star boutique hotel will open in summer 2016 in Sin El Fil, Greater Beirut area. It encompasses 46 rooms and it is owned by Christine and Frederique Ozeir. Christine Ozeir said that they have signed an agreement with Samba and Bossa Nova, a Brazilian management company, which will run the hotel. “The hotel has a strategic location, which makes it attractive to business,” she said. According to Ozeir, the hotel will offer superior service, comparable to that found in a five-star property, while preserving a reasonable cost.
Alternative tourism
Besides classic tourism destinations, alternative ones are rising to cater to changing tourism needs. Tahseen Khayat Group is currently working on a new furnished apartment-dormitory concept, similar to the company’s newly opened Eighteensixtysix on Bliss Street, Hamra. Omar Mamlouk, managing partner for Phoenix Hospitality Management Limited, the management chain of both properties, and a subsidiary of Tahseen Khayat Group, said that tourism in the country has always been subject to seasonality and to security stability. “We need to find alternatives,” he said, and added that dormitory and health lodgings, a billion-dollar industry, will be a rising trend and will keep all stakeholders busy. According to Mamlouk, the Eighteensixtysix’s
performance went beyond their expectations, and this drove them to invest in another property. “Our strategic location near the American University of Beirut and several medical institutions has guaranteed us a 74 percent occupancy rate throughout the year. We did better than most hotels in town, and catering to this category of clientele seems to be a great business opportunity,” he said. Construction works are scheduled to start by Q2 2016 and are expected to be finalized within a fouryear span. Investment in the project is around USD 45 million, including land price. Mamlouk said that they also have plans to enter Kuwait and Iran.
Boutique and apart-hotels
Boutique hotels will become even more fashionable, with a number of smaller-sized properties spreading across the country. The Sophia Hotel in Gemmayzeh is currently in the pipeline, owned by Beirut Homes, the hospitality group that already has four properties: The Standard I, The Standard II, and The Living, which are furnished apartments in Beirut. It also has The Smallville hotel in Badaro. The Gemmayzeh hotel will have 55 rooms, and will preserve the historic aspect of the area in its design, with a USD 14 million investment. Zayzoom Hotel, a four-star property in Mina El Hosn, is under development and expected to be completed by the end of 2016. The project is owned by the Lebanese-saudi firm, Zayzoom Properties, whose local partner is Ramzi Halabi. Investment in the project is around USD 10 million.
The trend of apart-hotels that started infiltrating locally with the development of projects such as IHG’S Staybridge Suites Beirut, will be strengthened even more this year. The Key Aparthotel, a fourstar property with 87 rooms, is scheduled to open in early summer 2016. This type of lodging offers travelers a higher level of comfort than hotels, given the extra room space and wider range of room amenities, against a 30 percent lower price tag, said Walid Baroudi, co-owner of the concept. People nowadays are constantly on the move and travelers can do without F&B services that weigh heavily on the balance sheet. Besides, market studies have shown that serviced apartments tend to have higher occupancy rates than hotels, Baroudi said. The hotel is located in Beirut, Palais de Justice District, Pierre Gemayel Avenue. The project is owned by the Baroudi family and will be managed by JRW Hospitality, a company owned by the same family. Investment in the project is around USD 35 million. The project’s main consultants are Said Bitar’s 4B Architects and Galal Mahmoud’s GM Architects. “We are currently in joint venture talks with foreign investors to set up a similar project in Istanbul, Turkey,” Baroudi said. The project in Istanbul should materialize by early next summer.