IHG goes for a triple whammy

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Meyer: IHG’s DFC complex will cater to a wide range of corporate and leisure travellers.

The InterContinental Hotels Group is set to take Dubai's hotel market by storm this month as it unveils three new hotels and an events centre at Dubai Festival City.

The US $450 million development will flood the market with more than 1000 much needed rooms that between them are designed to cater to all elements of the inbound travel market - from short-stay top-end leisure guests to long-stay contractors requiring a home away from home.

The $220 million InterContinental Dubai Festival City will offer 498 rooms including 121 suites, three Presidential Suites and one Royal Suite catering to corporate and MICE guests as well as top-end leisure travellers; the $80 million Crowne Plaza Dubai Festival City will bring 316 rooms including 16 suites and two Presidential Suites to the market, targeting mainly corporate and MICE travellers; while the $150 million InterContinental Residence Suites Dubai Festival City offers 212 apartments comprising studios and one-, two- and three-bedroom suites, designed for long-stay guests.

In addition, with the burgeoning inbound MICE/Meetings Industry market in mind, the IHG complex will boast a two-story events centre featuring a ballroom and eight smaller meetings rooms.

"One of the unique selling points is that we can leverage up to 800 rooms at one time, which is particularly good for the MICE market," explained IHG area general manager for the three properties, Tom Meyer.

"A lot of hotels have great facilities and no rooms and others have no facilities but plenty of rooms; we have both."

Meyer also noted that the complex's location next to the DFC shopping mall and close to golf courses and a 100-berth marina, as well as its vast facilities - spanning seven F&B outlets, a spa, gyms and two swimming pools - meant it was not only suitable for the Meetings Industry market, but the new breed of traveller; those who mix business with leisure.

"No one goes on holiday without their laptop anymore, while corporate travellers increasingly want leisure and relaxation facilities," he explained.

"We therefore have a leisure aspect sitting nicely in a property that is also handling the corporate market. A lot of people will come to Dubai for work and extend their stay to shop or spend time with the family."

In terms of market mix, Meyer expected the InterContinental property to attract 70% corporate versus 30% leisure whereas the Crowne Plaza would be more corporate and MICE focused, contributing 80% of sales.

"The Crowne Plaza product is less complex and more geared towards the businessman," he said. "There are not as many suites but we do have very good 36-metre square rooms offering excellent working facilities in a five-star property."

Meyer said the residences would attract the extended stay market of between one and 12 months and offer something new to Dubai - the choice between full hotel facilities and self-catering.

"You can have room service or go to the 24-hour grocery; there is no mini bar, just a fridge that we can stock. This DIY approach has not been offered before," he said.

In terms of source markets, Meyer said Europe and the GCC would be stalwarts, but he believed there were opportunities to leverage business from the US, China, India, Pakistan, Iran and the CIS.

"We will also be looking to emerging markets such as Korea," he added.

Distribution wise, Meyer said the travel trade that traditionally supported the IHG brand would be essential and that the company was on the look out to work with luxury tour operators in key source markets.

Forward bookings, had been robust and Meyer aimed for 80% occupancy across all three properties within the first 12 months.

"If you said this in any other market people would think you were joking, but we are confident that in Dubai this can happen," he concluded.

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