Stars are blind

Back on home turf

While many of the local up-and-comers are seen as small-time competition by the major brands, most agree that the new Centro by Rotana will prove itself a force to be reckoned with.

The Centro concept is pitched at the budget-conscious business market, targeting corporate companies, small to medium business owners and individual travellers.

As the name suggests, Centro properties will be situated in the central business districts of major cities throughout the Middle East.

The first two Centro by Rotana properties - Centro Yas Island in Abu Dhabi and Centro Barsha in Dubai - are expected to open in September 2009.

Rotana president Selim El Zyr says the company undertook thorough market research to set the Centro brand apart from its potential competition.

"In order to ensure such differentiation, we first pinpointed the essential requirements of today's young business and leisure travellers, who seek both style and finesse, yet at affordable rates," El Zyr explains.

"Subsequently, we improved upon the services and the physical product required to cater to these requirements against an international set of benchmarks.

"The result was a product design unlike any of the other brands which are expected to be available in the region."

Unlike some other budget brands, Centro hotels offer extra "frills" such as swimming pools, gymnasiums, meeting rooms and business services, including secretarial support.

El Zyr also points out that Centro will have access to Rotana's sales and marketing network, including global reservation systems and operations, a region-wide loyalty programme, plus centralised staff recruitment and training programmes.

Premier Inn's Darroch Crawford readily admits that: "Centro will clearly be a competitor that deserves our respect."

"Rotana has a heritage of opening hotels in this region; they have an understanding of the market that is better than most and I think that the Centro project will be one that we have to watch more carefully than most," says Crawford.

Rotana plans to roll out a total of 25 Centro properties across the Middle East by 2014.

Landmark Group is another local player gearing up to launch into the mid-market hospitality sector with its new Citymax Hotels brand.

Plans are underway to open three hotels in Dubai and Sharjah by December 2009, including a 693-room property in Bur Dubai; a 378-room in Al Barsha; and a 260-room in Sharjah.

Landmark Gulf Group general manager hotel division Michael Weyland says the Citymax hotel brand will cater to "discerning business travellers".

Weyland says the hotels will operate on a flat rate - under AED 500 (US $136) and possibly as low as AED 290 ($79).

"I believe that the core differentiator of the hotels is its transparent pricing," he says. "Room rates will be consistent throughout the year, enabling the traveller to plan his or her trip well in advance.

"This is especially relevant for corporates who want to budget and plan travel itineraries of their employees well in advance without any nasty surprises of increased tariffs."

As for competition, Weyland insists that "the cake is big enough in Dubai" and says Citymax will not be taking business away from its competitors, but instead from the upper scale segment.

READERS' COMMENTS

MORE FROM ARABIANBUSINESS.COM