Hilton to expand with 21 new properties in MEA by 2014

Hilton Worldwide plans to more than double its presence in this region in five years, said a top company executive. The group has already announced 21 new properties opening across the Middle East and North Africa (Mena) by 2014, four of which will be located in the UAE.

By Q4 2010, the group's contemporary upscale Doubletree by Hilton brand will make its debut in the region, with the first hotel opening doors in Ras Al Khaimah. Also making its way to the UAE in a few years could be a Waldorf Astoria – Hilton's five-star luxury brand – that the company is "actively prospecting" in the country, according to Andrew J Clough, Senior Vice-President Development, Middle East & Asia-Pacific.

"We are very confident about our Doubletree brand, which can easily fit in the four- and five-star segment here," Clough told Emirates Business. "We are looking at more opportunities in the UAE, but nothing has been signed yet."

Asked about bringing its über-luxury Waldorf Astoria Collection brand here, after its 2006 opening in Jeddah, Saudi Arabia, Clough added: "Hilton is actively prospecting a Waldorf Astoria for the UAE, but again, it is too soon to speculate."

Carlos Khneisser, Senior Director of Development, Middle East added: "Hilton is always pursuing strategic ownership growth in expanding markets and the UAE is no different. In Dubai alone, areas such as The Palm and Business Bay hold potential but no deals have been confirmed aside from the ones already announced."

Aside from the 126-room Doubletree by Hilton, its confirmed the UAE pipeline includes the 371-room Hilton Dubai Jumeirah Beach Residence (Q2 2011 opening), the 559-room Conrad Dubai (Q4 2011) and the 400-room Hilton Mina Al Arab Resort, Ras Al Khaimah (opening date to be confirmed). "In five years, we plan to more than double our presence here," said Clough, adding: "This means if we target 150 locations, then that is the number of hotels we can add."

Quizzed if the group is actively developing the luxury hotels market or bringing its budget brands to the UAE, Clough said: "There is space in the UAE market to grow and it will continue, albeit at a lower pace of activity than the last few years. However, if you ask whether the country needs more luxury or mid-market hotels, then I would say the latter."

With the onset of last year's economic downturn, the occupancy levels across the Mena averaged 61.3 per cent. Asked if Q1 2010 figures were indicative of an upward swing in this region, Clough said: "Last year may have been terrible for the hospitality industry at large but for us it was a record year. Africa even went on to show positive growth, and Mena as a whole was the best performer. Naturally, there were setbacks with the recession and the H1N1 pandemic that especially hit the religious tourism market. But if we don't have such setbacks in 2010, a pent-up demand will then drive this market forward."

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