By Staff writer
Hospitality Management Holdings chief says weak Euro, MidEast instability, CIS crisis have resulted in tough summer for hotel operators
Dubai-based Hospitality Management Holdings (HMH) has said it is targeting emerging markets such as China and India as it looks to grow occupancy and revenues at its portfolio of hotels.
The hotel operator, the first in the Middle East to offer halal-friendly, alcohol-free properties, said it performed strongly during the first half of 2015 despite "various market challenges".
The group’s hotels were at par – and often out-performed the competition in terms of occupancy and RevPAR, HMH said in a statement.
Laurent A Voivenel, CEO of HMH, said: “The economic environment continues to vary dramatically from one region to another. However, our 2015 H1 results demonstrate our capacity to deliver on our objectives with determination and discipline despite very challenging market conditions and a slow summer.
"The CIS crisis, weakening of Euro, political turmoil and instability in different parts of the Middle East, oversupply of rooms in some key cities, competition from cheaper destinations - all put pressure on demand and rates."
He added: “We operate across 15 cities in the MENA region. Each destination is unique. This summer has been a rather tough one given the market conditions. Let’s not forget Ramadan fell right in the middle of summer, which traditionally sees a drop in travel in the region. However, we had a strong pick-up during Eid with some hotels closing at 95 percent."
Voivenel said in order to boost performance in markets under stress HMH has deployed a series of strategic measures.
“We have got multiple demand drivers in key source markets. In addition, we are aggressively promoting our properties in emerging markets such as China and India. To drive new markets a series of strategic road shows and sales initiatives are being combined with digital optimization, targeted marketing campaigns and brand partnerships."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.