Expansion in the Middle East

Expanding in the Middle East

Muscat, Oman [Credit: Giorgio Parravicini on Unsplash]

It’s great to see some new hotel openings in the pipeline – a promising start to 2022 given that building materials and construction costs have been increasing. The Middle East in particular seems to be a hotspot for upcoming properties, with 25hoursDorchester Collection, and General Hotel Management (GHM) all expanding into and across the market. Ennismore has even announced a potential $400m fund to explore development opportunities in Saudi Arabia.

For Germany-based brand 25hours, the latest opening in Dubai is a milestone for the group. It marks the first outpost outside of Europe and the largest hotel to date at 434 rooms. The hotel also houses a pottery studio, podcast studio, hair salon and games room – a clear sign of the direction in which lifestyle hotels are heading.

25hours is part of the newly-formed Ennismore entity and it’s therefore likely that additional locations will be announced across the Middle East when the $400 million fund starts deploying capital. With the formation of a powerhouse such as Ennismore under the Accor umbrella, there is potential for dilution of brand image, however the chain’s track record for scaling up acquired brands while retaining their identity is arguably unrivalled.

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