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Thailand's global hotel chain Dusit International will have signed three hotel management contracts in Saudi Arabia by 2020 and is looking for more opportunities as it expects Saudi Arabia to drive growth in the Middle East's hospitality market, a senior company executive told Argaam.
"Currently, we are looking at two properties in Saudi Arabia, which are very close to signing. There are several others which we are exploring," Prateek Kumar, regional vice president - EMEA region, Dusit International, said in an interview at the recently-held Arabian Travel Market.
The hotel operator will soon sign contracts for its Dusit Devarana, a bespoke, wellness brand, in Taif and Dusit Princess, a 4-star hotel brand, in Riyadh.
"These are both greenfields and we are looking at these coming online in probably next two to three years," he said.
When asked if falling room rates were a concern, Kumar said average daily rate (ADR) and revenue per available room (RevPAR) were market driven and they were not foreseeing the trend to continue.
"We don’t expect this trend to continue especially in greenfield projects. When they come online, the market cycle is going to turn eventually. ADR and RevPAR are the short term indicators and we are planning long term for next 15-20 years."
Kumar admitted that the Middle East and Africa have become a very high priority focused market for Dusit International.
“We have been focusing on growth in this part of the world for the last three to four years and it’s going to be fueled by Saudi Arabia being the largest country and the largest population in this region,” he said.
Dusit International operates 31 hotels and resorts across 10 countries and plans to open 10 to 12 hotels annually between now and 2022.
Write to Parag Deulgaonkar at parag.d@argaamplus.com
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