HMH reiterates investment focus on KSA

HMH – Hospitality Management Holdings (HMH) says Saudi Arabia is central to its expansion strategy, with the group looking to double its existing portfolio of hotels in the country over the next five years.

HMH quoted industry reports that the tourism sector in Saudi Arabia relies heavily on religious tourism. Inbound tourism expenditure reached SAR58.5 billion (US$15.6 billion) in 2013, compared to SAR41.6 billion (US$11.1 billion) from domestic travel in the same year. Growing domestic and international tourist volumes are driving demand for quality accommodations in the country. 

Speaking at the Arabian Travel Market (ATM), Laurent Voivenel, CEO of HMH stated, “Saudi Arabia is a key growth market for us. Riyadh, Jeddah and Madina are the hubs of hotel investment in the country due to the high demand in the cities. Being a halal-friendly, alcohol-free international chain of hotels, HMH is the ideal choice for any hotel owner or investor with the same philosophy and principles. For us being halal-friendly is not simply a business decision but is part of our culture and DNA. This places us in a very advantageous position in the Kingdom. 

"We are therefore, eager to capitalise on our expertise and in-depth understanding of the market and will be soon expanding our network to other key cities in KSA including Makka and Jeddah."

Voivenel said that the opening of the Coral Al Madina Hotel will be HMH's biggest and most prestigious opening of the year. "ATM is the perfect platform to introduce it to key players in the industry. The luxurious 5-star enjoys an unrivalled location just across the road overlooking the Al Masjid Al Nabawi Al Sharief (the Prophet’s Holy Mosque). The hotel is being developed to be the first ‘Smart’ hotel in Madina offering the most advanced technology including high-tech smart rooms," he said.

The countdown to the opening has already begun with the hotel in final stages of development. Featuring 400-plus rooms and suites, spread over 10 floors and five basements, Coral Al Madina Hotel is owned by Mobarak Hotels Group that has appointed Designs Company, specialised in providing integrated hotel solutions, to oversee their growth and expansion. All rooms offer convenience and luxury, coupled with views of the Holy Mosque. 

Laurent stressed, “Each room at Coral Al Madina Hotel is thoughtfully equipped to meet the needs of Hajj and Umrah pilgrims and families."

The hotel also offers three restaurants and a lobby lounge, two meeting rooms with adaptable function spaces, a business centre, fully-equipped gym and spa, shopping arcade, private parking as well as helicopter landing site.

HMH began operations in KSA with Coral Al Khobar Hotel eight years ago followed by expansion in Riyadh, Jubail, Al Ahsa and most recently Madina. Laurent said, 

Need background? Read the Suroor Asia blog post about HMH's partnerships in Al Madina Al Munawarrah.

Hospitality Management Holdings lands operations contracts for hotels in Al Madina Al Munawarrah

Source: HMH - Hospitality Management Holdings. Laurent Voivenel, CEO, HMH – Hospitality Management Holdings and Al Sheikh Mohamed Ebrahim Abdulrahim, Owner, Mobarak Hotels Group.

HMH – Hospitality Management Holdings has entered into a management agreement with Mobarak Hotels Group for the operation of Coral Al Madina Hotel in Al Madina Al Munawarrah in Saudi Arabia.

Al Sheikh Mohamed Ebrahim Abdulrahim, Chairman of Mobarak Hotels Group said, “Our business vision is in line with the Saudi authorities’ plans for expanding the Holy Mosque of Prophet Mohammad and development of adjoining area. Therefore, Mobarak Hotels Group has appointed Designs Company that is specialised in providing integrated hotel solutions to oversee our growth and expansion. As part of this strategic agreement Designs Company will be responsible for developing world-class hospitality products and facilities around the Holy Mosque to meet the needs of growing Hajj and Umrah pilgrims. With an initial investment of SR1 billion, Designs Company and Mobarak Hotels Groups have entered into a management contract with HMH – Hospitality Management Holdings for operating Coral Al Madina Hotel. As part of this strategic understanding, we will hand over the management of four other 4-star hotels under development in the same area to HMH.”

Laurent Voivenel, CEO of HMH said, “Saudi Arabia is a key development market for HMH. We are very proud to debut in the Holy City of Madina and to enter into this very important partnership with Mobarak Hotels Group. We are truly grateful to them for having given us this opportunity. The hospitality industry in Madina is witnessing remarkable growth at the moment and we are very excited to be part of it. HMH is well-positioned in the Kingdom as one of the leading regional hotel groups equipped with the most advanced technology. We are confident Coral Al Madina Hotel will add tremendous value to our growing presence in Saudi Arabia and further strengthen our portfolio”.

Al Sheikh Mohamed stressed, “Coral Al Madina Hotel has been conceived to be a prestigious address for discerning travellers to Madina and is superbly located just across the road overlooking the Holy Mosque. It is a very significant project for us and we are pleased to appoint HMH as the operator who are well-equipped to meet the needs of the Saudi hotel sector in accordance with the best international standards.”

Featuring 400 plus rooms and suites, Coral Al Madina Hotel is spread over 10 floors and five basements. It has three restaurants, lobby lounge, luggage room, shopping arcade, gym and spa, two meeting rooms, business centre and parking space as well as helicopter landing site. The 5-star hotel is expected to welcome its first guests by Ramadhan 2015.

Hajj and umrah tourism are the mainstay of the Saudi economy. The number of pilgrims, which stood at 2 million in 2013, is expected to increase to 5.2 million by 2025. Aviation and hospitality infrastructure are, therefore, being rapidly developed to boost opportunities in Haj and Umrah.

The expansion of the airport in Jeddah is expected to accommodate 80 million people by 2035. At the same time Prince Muhammad bin Abdulaziz International Airport in Madina is undergoing expansion with 83% of the project already complete. Madinah Airport is considered the third-most important gateway to Saudi Arabia and the second-most important airport during the Hajj and umrah pilgrimage seasons.

Madina receives an estimated 11 million visitors per year. Aviation traffic is slated to increase by 27% with the new expansion. The first phase of the project will be ready by early January 2015. The airport will accommodate nearly 8 million travellers annually once it starts operating. Upcoming phases include increasing airport capacity to 14 million passengers a year, while the third phase will see the premises accommodate almost 27 million people.

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 an alcohol-free environment. It provides hotel owners and developers a broad spectrum of comprehensive management solutions with five distinct hotel brands, including The Ajman Palace Hotel, Coral Hotels & Resorts, Corp Hotels, EWA Hotel Apartments and ECOS Hotels.