The Middle East is entering a new era of stability with increased connectivity and expansion of existing infrastructure.
The scale of opportunity in the region for hotels especially in the budget segment is unprecedented. The region is seeing strong economic and tourism growth. Current estimates suggest that over the next 20 years, upwards of $3 trillion will go directly into leisure and tourism and indirectly into the supporting infrastructure. Through projects announced to date, by 2020 the region will add airport capacity for 300 million extra passengers, build over 200 new hotels, add 100,000 additional rooms, grow visitor numbers to 150 million, and increase the size of its aircraft fleet by over 150% by 2025. With the leisure and business travel sectors both set to double in size, the region’s forecasts suggest annual travel and tourism revenues could increase 89% over the next 10 years.
At HMH we are eager to capitalize on this buoyant scenario.
Our carefully segmented brands offer excellent investment opportunities. With a value-oriented and disciplined approach our objective is to unlock HMH's full potential while maximizing operating performance of each and every asset we put our name to. Existing hotel stock in the region is predominantly geared towards luxury and up-market accommodation leaving a huge gap and opportunity for budget hotels that we are keen to penetrate. Therefore, we recently re-launched ECOS Hotels that is a 'no frills' B & B brand bringing together a unique ‘economic and ecological’ concept. It is a smart choice for investors too offering strong investment opportunity with lower construction and operating costs in addition to quick and high return on investment.