Al Tayyar to explore Gulf mid-market segment
Al Tayyar Group will bring the world’s second largest hotel chain Choice Hotels International to Gulf region to explore mid-market segment in the region.
At the Arabian Travel Market (ATM), Choice Hotels International and Dubai-based Enquinox Ventures signed a master development agreement to bring the former’s three prominent brands — Clarion, Comfort and Quality — across the UAE and Saudi Arabia.
The agreement is anticipated to deliver more than 25 hotels and 8,000 hotel rooms for Choice’s portfolio in the UAE and Saudi Arabia by 2021, top officials of both the companies informed reporters at a news conference at ATM.
Equinox Ventures is a joint venture between Equinox Group and Al Tayyar Travel Group. With more than 6,500 hotels franchised in more than 35 countries and territories, Choice Hotels International represents more than 500,000 rooms around the globe.
“A couple of properties will be launched by the end of 2016 and a big inventory will enter in both the markets next year,” Equinox Group president Shuja Zaidi told Khaleej Times.
The Middle Eastern hospitality sector is expected to grow exponentially in the coming years. According to Phocuswright, the Middle East travel industry is forecast to rise to $98 billion by 2017, from $71.8 billion in 2014.
Historically, hotel development in the region has been led by upscale brands, but with an emerging middle class looking to travel both within the region and internationally, and an increase in inbound business, leisure travel and tourism, there is growing demand for mid-market and budget accommodations.
“We believe that the next wave of growth and expansion in our region belongs to the mid-market segment,” Zaidi said.
With key regional markets such as Dubai, Riyadh, Jeddah and Makkah currently undersupplied in mid-market hotel accommodations, and many existing hotel properties operating independently and without brand affiliation.
Abdullah Aldawood, chief executive officer and managing director of Al Tayyar Travel Group said: “This cooperation with a global player will help us close the gap in our efforts to integrate all parts of our travel business. We had started with acquisition and development of hospitality assets, moving on to asset management and now rolling out globally recognized brands in the region with our partners who have the expertise and the regional knowledge.”
“This agreement with Equinox Group and Al Tayyar Travel Group that will help Choice establish a presence in the UAE and Saudi Arabia, and also offer a platform for rapid expansion.”
This agreement is the fifth EMEA market portfolio expansion Choice has announced in the last six months having signed agreements related to the cobranding of 19 properties in Germany, Austria and Hungary under the Comfort and Quality brands, and another deal to establish multiple hotels in Belgium. Choice is further growing its presence in Germany with two new Comfort brand hotels in Frankfurt and Düsseldorf, and recently launched its upscale Ascend Hotel Collection in the UK and France.
A couple of properties will be launched by the end of 2016 and a big inventory will enter in both the markets next year
Shuja Zaidi, Group president of Equinox