Hotelier Middle East – May 2019

MARKET UPDATE

HOTELIER MIDDLE EAST | May 2019 | Volume 18 Issue 05 21

OMAN’S

OPPORTUNITY

FOR LUXURY

Oman has been relatively undersupplied

across the hospitality sector, resulting in

‘higher prices and few very successful

hotels’. However, trends are reversing

and many new projects are beginning to

materialise. Hotelier Middle East explores

the opportunities and challenges ahead in

the Oman market

Fraser Suites has opened 120 luxury apartments in Muscat, Oman

D

espite Oman’s on-going economic struggles from

low oil prices and government spending, plans are

underway to boost the country’s hotel market.

Oman’s Ministry of Tourism (MoT) revealed that

31 hotels are expected to open in 2019, adding a total of 3,264

rooms. Data from the MoT also highlighted that more than

MARKET UPDATE

80% of the hotels to open in 2019 will be three stars and

below, in order to make it more affordable and to cater to a

wider market.

But as Oman’s mid-ranged hotel properties receive

a boost, where do the opportunities lie for its luxury

segment?

Oman Tourism Development Co’s (OMRAN) senior vice

president, Zoltan Kali, told Hotelier Middle East that the

sector needed to “weather” the next two years of supply be-

fore it could concentrate on Oman’s luxury sector.

“Apart from the well represented luxury segment, last

year we saw the appearance of more budget and economy

brands, as well as all-inclusive destination concepts,” said

Kali. “I believe there is room to grow in the latter, and also

in boutique specialised leisure focused properties with a

strong local cultural anchor, which is one of the unique at-

tractions of Oman.”

OPERATOR OPENINGS

Marriott and Fraser Suites were among the many hotel

chains tapping the opportunities for Oman’s luxury seg-

ment, with an array of openings being announced.

JW Marriott revealed this month (April 2019) that it

would be making its debut in the Oman market with a five-

star hotel in Madinat Al Irfan in Q3 this year at the Oman

Convention and Exhibition Centre, while Fraser Suites

conducted its official opening in early April of 120 luxury

apartments in Muscat.

Regarding the hotel opening in Q3, Marriott Internation-

al’s chief development officer for Middle East and Africa, Je-

rome Briet, said the markets of Oman are “still strong ” and

they have further hotel openings coming up in the Sultanate.

“We recently opened JW Marriott in Oman and we have

the St Regis coming up there,” he said. “We are genuinely

open to growing more while we are heavily skewed towards

the upper upscale and luxury [sector] right now. We’re also

looking at midscale and upscale opportunities in Oman.”

AccorHotels is also identifying opportunities and under-

taking extensive expansion plans across the region. Speak-

ing exclusively to Hotelier Middle East at the Arabian Ho-

tel Investment Conference in Ras Al Khaimah, the UAE,

By Ashley Williams