Kuwait's Action Hotels eyes 5,000 rooms by 2020

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Action Hotels chief Alain Debare has heralded the emergence of mid-level hotels in the region as “the area to watch” as he revealed plans for the Kuwaiti company to grow the number of rooms in its portfolio five-fold to 5,000 by 2020.

The hotel developer and operator, a wholly owned subsidiary of private conglomerate Action Group Holding Company, this month posted a $4.4m operating profit for 2013, down 6.4 percent on the previous year, in its maiden public results posting after it listed on the London Stock Exchange in December.

Total revenue in 2013 increased by 5.4 percent to $29.8m, Dubai-based Action Hotels said, while occupancy rates increased by four percent to 78 percent and revenue per available room (RevPAR) grew by 8.9 percent to $81.

Debare said the results were in line with expectations and reflected a “huge gap in the market” for three-star hotels.

“It is the area to watch – the Dubai government identified development potential and recently announced the need for a lot of budget hotel rooms and we’re in contact here with several bodies in Dubai to look at accelerating our growth,” he told Arabian Business.

The company currently operates six hotels comprising a total 1,004 rooms in Kuwait, Oman, Jordan and Australia under the Ibis or Holiday Inn brands.

It has eight hotels in its current pipeline, including in new markets the UAE, Bahrain and Saudi, which when all completed by 2016 will take to 2,500 total  room numbers.

Debare said eventually Action’s ultimate goal was to deliver 5,000 rooms by 2020, fuelled by growth in Saudi, including Riyadh, Jeddah and the eastern province, and Dubai.

Article continued on next page...

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is Dubai ready for 20,000 more hotel rooms?

Is Dubai ready for 20,000 more hotel rooms?

Can the city cope with the additional supply predicted by Dubai...

Oman, the hidden treasure

Oman, the hidden treasure

Relatively few have experienced the wonders of Oman but multiple...

Review: Corinthia Hotel, London

Review: Corinthia Hotel, London

The legendary property off Trafalgar Square has launched a new...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 14
    Has Narendra Modi already lost the plot?

    Gaja - Anil is RIGHT this once! Modi stands for anarchy. Look at the way he is treating the minorities. Do you even for a second believe that he is innocent... more

    Sunday, 29 March 2015 1:42 PM - Ann
  • 14
    Dubai Int'l T1 is too congested, says Indian airline boss

    Question: All you people, criticizing my comment, do you work for Air India by any chance?

    Additionally, for all the whiners, I will provide you... more

    Tuesday, 31 March 2015 12:50 PM - Mosa