IHG predicts budget hotel growth

InterContinental Hotels Group (IHG) has forecast a significant growth in demand for budget accommodation in the Middle East and is to promote the opening of its second budget hotel in Dubai at ATM.

The group opened its first Holiday Inn Express property in Dubai in July 2007 - Holiday Inn Express Dubai, Internet City - and will reveal plans to open its second in partnership with Ishraq Gulf at ATM, aiming to take advantage of growing consumer demand for budget accommodation.

"Since launching in the region in July 2007, Holiday Inn Express has been extremely well received, performing above expectations.

Limited service hotels are a burgeoning new segment in the region and the increased demand for this type of property has been proven," said Tom Rowntree, vice president commercial MEA, IHG.

The hotel group had noted the growth of the MENA region's mid-scale segment in recent years, as well as a boom in intra-regional tourism, added Rowntree.

"This development has made us realise that it is viable for us to introduce Holiday in Express to the Middle East. The beauty of this particular brand - which targets the largest sector in the travel industry - is that it provides quality service with value for money," Rowntree continued.

"The Middle East region has long been associated with high end luxury hotels, with the introduction of Holiday Inn Express however the hotel market has been significantly expanded, catering to those budget- conscious travellers seeking value for money accommodation and services."

The 167-room Express by Holiday Inn Dubai Safa Park is due to open in Q2, 2008. IHG recently signed a franchise contract to develop the Holiday Inn Express Brand in Saudi Arabia.

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