The opening of Premier Inn at Dubai Silicon Oasis brings the British budget hotel operator's tally to two in the UAE but an aggressive strategy will see another open opposite Dubai International Airport's Terminal 3 before the end of the year, with other locations planned in Al Jadaf and Al Maktoum International Airport. One site has being confirmed in Abu Dhabi with others planned to open in the Northern Emirates. A joint venture has been signed to open at least three outlets in Oman next year signaling a rapid growth in its first market outside the United Kingdom.
Darroch Crawford speaks to Emirates Business about the growing budget hotel sector.
Is there a gap in the market for budget hotels in the UAE?
Dubai is known for five-star luxury but there is always a market for value and that's something Dubai has lacked. When I came here [in 2006] people told me their friends couldn't afford to visit and many chose not to get married here because family couldn't afford a hotel but if Dubai is going to achieve its hopes in terms of visitor numbers it needs to provide more options.
Has the recession helped you?
More people are looking for value for money and that's what we're all about. We have had a lot of enquiries but the problem is that the recession shrinks the market overall. There is a smaller cake to take a slice out of but we have become steadily busier over the past 12 months.
Given the number of five-star hotels what makes you confident people will go budget?
The Ibis was the only budget hotel in Dubai until the recession. In the US, 30 per cent of hotels are in the budget sector and in Europe it's 15 to 20 per cent but here it's just one per cent so there is a huge opportunity for good quality budget brands and we want to be at the forefront of that.
Your main competition, Holiday Inn, has residences in the city so what is the reason behind your decision to be located out of town?
If we are going to offer fantastic business rates we have to buy affordable land and that can't be found along Sheikh Zayed Road. The other key point is that we have a maximum room price we never go above, which last year was Dh650. But the key difference between Premier Inn and our competition is a commitment to first class quality of rooms, great service and value for money and no one else does that. I have worked for a number of brands and this is more robust than most. We have people stay who want to be in town because they trust the brand.
How key will the Dubai International Airport branch be to the business?
It will be important for brand awareness. It's immediately opposite Terminal 3 and with 36 million visitors passing through every year, many of them will learn about us.
Who stays in your properties given their location?
We're aiming at all markets. The Dubai Investments Park hotel serves the local community and is very convenient for Jebel Ali. It'll also be the closest hotel to Al Maktoum Airport, while the Dubai Silicon Oasis property will be the nearest to Universal Studios. We've built it for its future potential. We already have tourists but we're more geared towards business people and those on short breaks.
Prices started at Dh450 rising to Dh650 over the winter so why have they come down so soon?
We always planned to charge Dh350 a night during the summer because you can achieve good occupancy levels if the price is right.
Is your growth plan for the Middle East on track?
We plan to be in every major city in the GCC in the next five years. Our site in Abu Dhabi is at the Capital Centre, which is just 100m from Adnec, so will be very convenient for all the exhibitions there. We're hugely well known in the UK where we have 600 hotels but it takes time for the reputation to be established.
PROFILE: Darroch Crawford Managing Director
Darroch Crawford, 56, became Managing Director of Premier Inn Middle East three years ago when he moved to Dubai to set up the company's first international hotels outside the United Kingdom.
He joined parent company Whitbread in 2000 following 35 years in the hotel industry. Early in his career, Crawford who is from Glasgow, became Thistle Hotels' youngest ever general manager at the age of 24, before going on to work for Forte Hotels and Hilton International. He is also a Member of the Hotel & Catering International Management Association.
Crawford was Director of Operations and Brand Excellence in the UK prior to his current role.
He lives in The Springs with his wife and the youngest two of his four daughters.
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