Fairmont relocates headquarters from Paris to Dubai amid region’s hospitality boom
Luxury hospitality group Fairmont Hotels and Resorts has moved its global headquarters to Dubai – the Middle East’s tourism and business hub – from Paris, as it seeks to tap into the region’s booming hospitality industry.
The shift is a reflection of the key role the region plays in Fairmont’s global strategy, as nearly 40 per cent of its current projects are being developed in the Middle East, Africa, India and Turkey, Mark Willis, chief executive of Fairmont Hotels, told The National on Tuesday.
Dubai, “where the majority of the global leadership team will sit”, beat other cities, including London and New York, as the group’s preferred location for its global headquarters, Mr Willis said.
“Dubai was ultimately chosen for its strong position as a global hub, strategic proximity to Europe, Asia and Africa, allowing for easy access to a large portion of the world, and the city’s ability to attract top talent, brands, companies and investors,” he said.
“The relocation positions Fairmont to take advantage of the tremendous opportunities in the region.”
The move, which was officially announced this week, was made in parallel to a major restructuring of the company’s dynamics in 2022 and the appointment of a new global management team in January.
Last year, Accor chairman and chief executive Sebastien Bazin introduced a new structure for the group, dividing the company into two divisions – premium, midscale and economy; and luxury and lifestyle.
Fairmont falls under the luxury and lifestyle category, headed by Mr Bazin, along with Accor’s Raffles, Orient Express, Sofitel, MGallery, Emblems and Ennismore brands.
In January, Mr Willis was named Fairmont’s global chief executive, after he stepped down from his role as Accor’s chief executive for the Middle East, Africa, India and Turkey.
Fairmont plans to boost its network in the UAE and in Saudi Arabia, at the Red Sea port city of Jeddah, as it “continues to expand, with an eye on the many beautiful and attractive destinations around the world”, Mr Willis said.
Dubai’s hospitality industry performed strongly in 2022, benefiting from an influx of tourists eager to travel after two years of pandemic-related lockdowns and attend mega events such as Expo 2020 Dubai and the Fifa World Cup in Qatar.
The emirate was ranked second last year in a list of the top 100 most attractive city destinations compiled by Euromonitor International. Dubai ranked behind Paris and ahead of Amsterdam, Madrid and Rome in the top five cities in the global index for 2022.
The emirate hosted 14.36 million international visitors last year – almost double the 2021 total of 7.28 million – and only 14 per cent below the pre-pandemic level of 16.73 million recorded in 2019, according to data from Dubai’s Department of Economy and Tourism.
In the first nine months of 2022, Dubai’s economy expanded by 4.6 per cent on an annual basis, data from the emirate’s statistics centre showed.
Emirates NBD estimates Dubai’s full-year 2022 growth at 5 per cent and expects the emirate’s GDP to grow by 3.5 per cent this year.
Fairmont’s headquarters was originally in Toronto, but moved to Paris after Accor acquired its parent, FRHI Hotels and Resorts, in 2015 for $840 million.