The mid-market hotels in Dubai were in the spotlight at the Hotel Show: Vision Conference 2014. Laurent A Voivenel, CEO, HMH – Hospitality Management Holdings was among the industry experts speaking on ‘development and growth of mid-range hotels’.
Dubai has announced plans to accelerate development of mid-market hotels in order to widen its appeal to expanding middle class worldwide. HMH is a key player in the region and is now looking to position ECOS Hotels, a’no frills’ B & B brand in view of the growing demand for budget hotels.
According to Dubai Department of Tourism & Commerce Marketing (DTCM) statistics, Dubai currently boasts 634 hotels and hotel apartments with 88,680 keys. This number is expected to almost double touching 160,000 rooms within the next six years by Dubai Expo 2020. However, out of the existing stock of hotels only 10% of room supply is in the upper midscale and midscale segments. But this is set to change as nearly 30% of hotels will be in the mid-market category in the upcoming pipeline.
Laurent expressed his views stating: “Expanding middle class in key source markets and growing outbound travel from those countries is the primary reason behind rising demand for economy hotels in Dubai. According to industry reports, by 2030, globally the middle class will more than double in size, from two billion today to 4.9 bn. European and American middle class will shrink from 50% of the total to just 22%. Rapid growth in China, India, Indonesia, Vietnam, Thailand, and Malaysia will cause Asia’s share of the new middle class to more than double from its current 30%. By 2030, Asia will host 64% of the global middle class. And these are emerging feeder markets for Dubai”.
Along with Voivenel, CEO of HMH – Hospitality Management Holdings, The Hotel Show: Vision Conference 2014 panel included Yousuf Lootah, executive director, Tourism Development & Investments, Dubai Department of Tourism & Commerce Marketing; Christopher Hewett, senior consultant, TRI Hospitality Consulting; Steven Miller, FAIA, RIBA and Sumati Murari, vice president – Hotels & Hospitality Group, Middle East & Africa, Jones Lang LaSalle.