Action Hotels Plc inked a hotel management agreement (HMA) with Accor Group for a third hotel in Kuwait. The agreement for the 160-room four-star Novotel property was signed by Action Hotel’s chairman, HE Sheikh Mubarak Abdulla Mubarak Al Sabah and Christophe Landais, chief operating officer Accor HotelServices Middle East.
Construction of the freehold hotel is currently expected to cost approximately US$29million, an average of US$181,000 per room, in addition to the US$12.3 m already paid to secure the plot of land, according to Action Hotel’s CEO Alain Debare.
“Construction is scheduled to commence by mid-2015 and we expect the Novotel Sharq to open its doors to Kuwait in 2017, joining the 175-room ibis Salmiya which opened in 2008, and the neighbouring 160-room ibis Sharq, now four years in operation.”
He also confirmed that the new Novotel hotel will complement the strong performance of existing two ibis hotels in Kuwait.
Landais further added: “This is the first Novotel in Kuwait and confirms Accor’s commitment to grow mid-market hotels in the region.”
Debare also confirmed that Action hotels will continue to pursue opportunistic leasing and acquisition targets across the GCC and the Group is on target of having 5,000 economy and midscale hotel rooms by 2020.