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

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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.

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