Ascott set to open second Middle East property

Speaking to BT in Dubai, Marc Tay, Ascott’s area general manager for the Gulf region, said: ‘We are finalising our plans to soft-launch the Bahrain property in April 2007, initially partly, with a full inauguration scheduled later. This could be by end-May or June when Somerset Juffair will be fully operational.’

Beginning to consolidate its operations in the Middle East, Ascott is gradually preparing the ground to increase its presence in the region, including Saudi Arabia and Egypt.

‘We are also looking at Saudi Arabia, a massive market in the region which Ascott cannot afford to leave out. Further, we have begun negotiations for our presence in Cairo,’ Mr Tay said. However, he ruled out for now an Ascott presence in the renowned Egyptian resort of Sharm El Sheikh.

Ascott, whose immediate focus is the GCC region, will not hesitate to expand to any country beyond the region if there is a right property and a suitable partner, Mr Tay said. Sources separately confirmed to BT that Ascott had already been approached by several businesses at a recently held two-day hospitality conference in Dubai.

The Singapore firm in partnership with Bahrain-based Nuzul Holding BSC (C) had secured two serviced residences in Bahrain and Qatar in November last year - the Somerset Juffair, Manama City, and the 200-unit Somerset West Bay Doha.

The Gulf Arab region promises rich pickings for Ascott. Dubai, which plans to attract around 15 million tourists by 2012, registered 86 per cent hotel occupancy rates in 2006, one of the highest in the world. The number of tourists who come to Egypt rose to nine million from 8.6 million in 2005.

A total of 900,000 people visited Qatar last year and this is set to increase to 1.4 million by 2010. The number of hotel rooms in Qatar is expected to grow from the present 3,000 to more than 11,000 by 2010 with around 40 new hotels being built.

For the Doha property, the company has scheduled a June soft launch. Only the interior of the already existing property needs to be done to meet the Ascott standards, said Mr Tay. The property was originally built for the Asian Games 2006.

‘With the launch scheduling of the two properties in Doha and Manama, we are on target for the 15 properties totally in the region by 2010 with Nuzul Holding,’ Mr Tay added.

‘The Somerset Jadaf in Dubai has steadily touched an average occupancy in the high 80s to 90s during all these months and we are confident we will be able to maintain this,’ he said.

Ascott is also looking to expand its presence in the UAE. The next property in the UAE could be any of the company’ three brands - Ascott, Somerset or Citadine, said Mr Tay. ‘A lot depends on the location, the partner and the clientele.’

‘We are quite active of late (in the UAE). We had three missions to Abu Dhabi in this year alone so far because we see the UAE capital as a very promising area. Our business development team will visit the GCC region, including Abu Dhabi soon,’ he added.

‘The Singapore brand name already enjoys a good reputation here in the Gulf region. With CapitaLand involved in a major project in Bahrain Bay, and we ourselves handling a few properties, the region is beginning to understand Singapore companies and they like the way we operate. I am sure this will throw up a few more fresh business possibilities.’

Source: The Business Times, 26 February 2007