By Rahul Odedra
Construction of the 160-room property expected to be competed in 2017
Accor is to operate a 160-room hotel planned for Kuwait City under its Novotel brand, the property’s owner and developer has confirmed.
Action Hotels said the hotel, which as previously reported will be in the business district of Sharq, will be a four-star property.
Construction of the hotel is scheduled to commence in H1 2015 with completion expected in 2017. It will cost approximately US $29 million to develop, on top of the US $12.3 million already paid for the plot of land.
"The new Novotel in Kuwait confirms Accor's commitment to bringing world-class mid-market hotels to the region,” said Accor Middle East Christophe Landais COO.
“Our partnership with Action Hotels is highly significant as we bring the first Novotel hotel development in the State of Kuwait.”
Accor already operates two Action Hotels properties in Kuwait, with both performing solidly so far in 2014; occupancy figures for ibis Sharq and ibis Salmiya were 84.4% and 88.4% respectively in the first half of the year.
The addition of the new Novotel will increase Action's room count to 2660, with the company still targeting 5000 hotel rooms by 2020.
Action Hotels chairman Sheikh Mubarak A.M. Al-Sabah said: "We strongly believe that the Novotel brand, which is at the forefront of the mid-market hotel segment, will drive superior returns. We look forward to working with Accor again on the development of this new hotel."
The developer said its board is considering various funding options, which it added are likely to include locally sourced long term bank debt secured on the hotel and other debt-free freeholds.
Operator Accor has been rapidly expanding its Middle East pipeline in recent months; it will open the 834-room Zamzam Pullman Madinah in September and the 588-room ibis Dubai World Trade Centre District hotel next year.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.