Work on Air Arabia budget hotel starts

Air Arabia has announced the commencement of construction on its 300-room budget hotel at Sharjah Airport. The company said yesterday it had appointed Gustav Pegel & Sohn as general contractor for the Centro Hotel, which is due for completion in January 2010. Air Arabia is the first and the largest low-cost carrier in Mena.

"This is part of Air Arabia's strategy to grow ancillary revenues," said Adel Ali, CEO of Air Arabia adding that once complete, the hotel "will provide passengers with a complete travel experience, offering the best value for money." He said Gustav Pegel had "an outstanding track record in the Middle East, and with their expertise, I am confident we will create a hotel with high-quality standards in construction and amenities."

Gustav Pegel, headquartered in Berlin, has been in operation for more than 135 years. The firm is renowned in civil engineering, multi-technical and maintenance services in sectors including in education and healthcare.

The project follows a management agreement signed last year between Air Arabia and Rotana Hotels under their Centro by Rotana brand.