Australian hospitality group expands to UAE

Australia’s StayWell Hospitality Group is in talks with UAE and Saudi groups for management contracts and hopes to have around 15 properties in its portfolio in the region by 2015, said a senior official.

Simon Wan, StayWell CEO and Managing Director, said: “We are currently negotiating a number of opportunities in Dubai. We are negotiating with a group based in UAE to join us a partner; they have 7 hotels in this region including Abu Dhabi, Turkey, Lebanon, Saudi Arabia and Iraq.

After successfully forming a partnership with this UAE group, we’re also looking to signing up two or three more contracts in Dubai because hotel construction just started again here. I hope to have at least 5-6 properties in UAE over the next two years and 12-15 by 2015 in the Middle East region.”

The Aussie hospitality group currently operates just one property – Park Regis – in Dubai. Tie-up with the UAE group would bring seven properties, range from 110 to 280 rooms, into its fold, Wan said, adding that five properties are already operational while two are in the development stage.

STR Global said over 70 hotels are in the planning or construction phase in Dubai which will add more than 22,000 rooms. The emirate has 69,948 rooms from 351 hotels.

Hiring for upcoming Dubai properties

For the upcoming Dubai properties, StayWell will hire 300 staff next year because one property will be operational in late 2015 and the second in early 2016.

“Dubai has been focusing on high-end hotels and has positioned itself as a luxury destination. With the rise of budget airlines and growing younger generations, Dubai would certainly need next sector of accommodation – economy sector, mid-scale sector and budget hotels. In the next 12 months, we would see opportunity to bring in our Leisure Inn brand into the UAE and the Middle East,” he added.

Wan said the group is also attracted towards Saudi Arabia due to its strong domestic market.

“We are also negotiating with a Saudi Arabia partner to bring in Leisure Inn brand to Saudi Arabia because we believe that they have got a strong domestic market and it is ready for international midscale hotel brand.”

Speaking to Emirates 24l7, Wan hoped that group will conclude agreement with the group based in UAE in 2 months while talks with Saudi partner would probably take a few more months to conclude.

Globally, StayWell has 34 hotels under its umbrella. Wan expects group to have 100 hotels by 2017 globally, having 200,000 rooms in its portfolio.

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