Middle East momentum Spotlight on hotel trends Dr' Costas Verginis Senior Manager Real Estate

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Middle East momentumSpotlight on hotel
trendsDr. Costas Verginis Senior
ManagerReal Estate Hospitality
ConsultingMarch 2007
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Agenda

• A word about us
• Review of global trends
• Review of Middle East trends
• Outlook

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HotelBenchmark by Deloitte
The market leaders in global hotel performance
data

• Tracking over 7,200 hotels
• Reporting on 420 markets
• With over 10 years of historic data
• Measuring occupancy, ARR, revPAR
• Daily and monthly solution
• More than just data
• Range of thought leadership literature
• Visit us at www.HotelBenchmark.com

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Agenda

• A word about us
• Review of global trends
• Review of Middle East trends
• Outlook

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A global perspective on growth
RevPAR - change
Source HotelBenchmark by Deloitte
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Europe still the revPAR king
Seasonally adjusted revPAR
104
94
91
Source HotelBenchmark by Deloitte
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Agenda

• A word about us
• Global trends
• Middle East Trends
• Outlook Hospitality 2010

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HotelBenchmark coverage
Tracking 30 markets across the Middle East
North Africa
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Middle East 3 years of positive growth
Seasonally adjusted revPAR
Source HotelBenchmark by Deloitte
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Middle East cities whos driving growth?
Seasonally adjusted revPAR
Source HotelBenchmark by Deloitte
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Middle East cities Dubai still leads the pack
Seasonally adjusted revPAR
197
129
128
79
44
Source HotelBenchmark by Deloitte
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Looking back on 2006 another good year
RevPAR - change 06/05
Source HotelBenchmark by Deloitte
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Rate growth driving performance
change 06/05
Source HotelBenchmark by Deloitte
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But some markets struggling
change 06/05
Source HotelBenchmark by Deloitte
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Final score absolute values
Source HotelBenchmark by Deloitte
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Agenda

• A word about us
• Global trends
• Middle East Trends
• Outlook Hospitality 2010

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What are the key trends?

• Brand
• Human assets
• Technology
• Emerging markets

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Brand equity BusinessWeek/Interbrand Top 20
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Brand What are the customers saying?
Experimental
Insperiance
Talk 2 me!
My wellbeing is key!
Whats in my room?
Who am I?
Basics
Aspirational
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More experienced customers?

• Silver consumers active, cash-and-time-rich
• Multi-generational needs, wants and desires
• Looking for experience
• Are you prepared to welcome physically challenged
  and/or obese travellers?

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The talent agenda

• Sourcing future talent will require a new
  approach to HR
• Multi-national
• Multi-cultural
• Multi-lingual
• Multi-religious
• Cross generational
• Flexible and lifestyle orientated employment
• No maximum retirement age
• Are your hotels ready for the first Chinese
  visitors?

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Enhancing technology?
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Emerging markets 2010
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Emerging markets 2010 An update

• China
• The existing 150 airports will expand to 240 by
  2010!
• Beijing Airport is being renovated at investment
  of 2bn target is 35m PAX by 2007, rising to
  45m by 2008
• For 2008 Olympics, hotel room count will rise
  from around 90,000 rooms today to 130,000
• Between 10,000 and 25,000 new hotels will be
  required, the majority in mid/economy sectors
  targeted at the domestic markets

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Emerging markets 2010 An update

• The UAE
• WTO predicts region will benefit from fastest
  growth in arrivals world-wide at 7 p.a. to 36m
  visitors
• Dubai investing 45bn in infrastructure and
  tourism
• Visitor numbers projected to increase from 6m, to
  10m by 2010 and to 25m by 2029
• Appetite for branded mid-market and budget hotels
  increasing dramatically

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Emerging markets 2010 An update

• India
• MOF raised allocation for tourism by 60 for 2006
• Focusing on Buddhism, cruises, rural, adventure,
  spiritual and medical tourism
• Open air agreement now in place - issue is
  airport infrastructure
• Between 5,000 and 10,000 new hotels will be
  required, the majority in mid/economy sectors
  targeted at the domestic markets

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To find out more please contact.
HotelBenchmark Visit us _at_ www.HotelBenchmark.com
Call 44 (0) 20 7007 3974 Email
HotelBenchmark_at_deloitte.co.uk