HMH CEO Laurent A. Voivenel Joins Top Panellists at Hotel Show: Vision Conference 2014

Laurent A. Voivenel, CEO, HMH – Hospitality Management Holdings was among top industry experts speaking on ‘Development and Growth of Mid-Range Hotels’ at Hotel Show: Vision Conference 2014. Dubai has announced plans to accelerate the development of mid-market hotelsin order to widen its appeal to expanding middle class worldwide and HMH isa key player in the region in the segment. The group is now looking to position ECOS Hotels, a’no frills’ B & B brand in view of the growing demand for budget hotels.

At the moment, 5-star hotels dominate Dubai’s hotel inventory with a market share exceeding 60 per cent. According to Dubai Department of Tourism & Commerce Marketing (DTCM) statistics, Dubai currently boasts 634 hotels and hotel apartments with 88,680 keys. This number is expected to almost double touching 160,000 rooms within the next 6 years by Dubai Expo 2020. However, out of the existing stock of hotels only 10 per cent of room supply is in the upper midscale and midscale segments. But this is set to change as nearly 30 per cent of hotels will be in the mid-market category in the upcoming pipeline.

Stressing on why mid-market hotels make more sense than ever today in Dubai, and must be seen as an opportunity beyond Dubai Expo 2020, Laurent stated, “Expanding middle class in key source markets and growing outbound travel from those countries is the primary reason behind this rising demand for economy hotels in Dubai. According to industry reports, by 2030, globally the middle class will more than double in size, from 2 billion today to 4.9 billion. European and American middle class will shrink from 50 per cent of the total to just 22 per cent. Rapid growth in China, India, Indonesia, Vietnam, Thailand, and Malaysia will cause Asia’s share of the new middle class to more than double from its current 30%. By 2030, Asia will host 64% of the global middle class. And these are emerging feeder markets for Dubai”.

Laurent continued, “Having said so, among the key factors driving demand for Dubai as a world-class destination is also the city’s strategic location and excellent airline network and connectivity. Over 2/3 of the world’s population lives within 8 hours flight from Dubai while 1/3 lives within 4 hours making it extremely accessible for this growing middle class through the rapidly expanding network of low-cost carriers and addition of new routes by existing airlines. And therefore the emirate needs to prepare its accommodation offering in order to cater to this massive market. Clearly the vision of Dubai is to get a bigger share of budget travellers than it currently has while retaining its appeal in the luxury segment. And we at HMH are ideally placed to penetrate this largely untapped segment.ECOS Hotels is a smart choice for investors offering strong investment opportunity because of lower construction and operating costs and quickand high return on investment”.

Along with Laurent A. Voivenel, CEO of HMH – Hospitality Management Holdings, The Hotel Show: Vision Conference 2014 panel included YousufLootah, Executive Director, Tourism Development & Investments, Dubai Department of Tourism & Commerce Marketing; Christopher Hewett, Senior Consultant, TRI Hospitality Consulting; Steven Miller, FAIA, RIBA and SumatiMurari, Vice President – Hotels & Hospitality Group, Middle East & Africa, Jones Lang LaSalle. The panel was chaired by Russel Sharpe, Chief Operating Officer, Citymax Hotels.

About HMH

Founded in 2003 in Dubai, HMH – Hospitality Management Holdings is a fully-integrated hotel management company that prides itself on being the first hotel chain in the Middle East to offer alcohol-free safe environment. It provides hotel owners and developers a broad spectrum of comprehensive management solutions with five distinct, yet complementary, hotel brands catering to varied market segments from budget to luxury. These include The Ajman Palace Hotel, Coral Hotels & Resorts, Corp Hotels, EWA Hotel Apartments and ECOS Hotels. Through its dynamic operation and strategic expansion in the Middle East and North Africa, HMH has been successful in unlocking a world of opportunities while creating value for its stakeholders, associates, staff members and customers. Its existing portfolio features 20 properties located in some of the most desirable destinations across the MENA region, as well as a healthy pipeline of hotels under development.

For more information about HMH please visit http://www.hmhhotelgroup.com