At the second day of the Arabian Hotel Investment Conference 2011 (AHIC 2011), international and regional industry leaders debated and discussed the current performance of the hotel sector and highlighted likely future trends.

Opening the day, Dr Henry Azzam, Chairman of the Middle East & North Africa (MENA) region for Deutsche Bank, provided the wider economic context and told the audience that the Arab uprisings since the start of 2011 are similar in significance to the collapse of Communism in Eastern Europe and the radical political changes in Latin America in the 1980s, but are having an uneven impact on the economies of the Middle East.

“Every US$1 dollar a barrel increase in the oil price delivers more than US$3.25 billion to the Saudi Arabian Finance Ministry,” Dr. Azzam said. “That is why Saudi Arabia is going to enjoy a high rate of growth in 2011 compared with most other countries in the region.” Dubai’s economy is also buoyant, Azzam said, highlighting that “Dubai benefits when the region does well and it benefits when the region does badly.”

Focusing on the hotel sector, STR Global Managing Director Elizabeth Randall said that, with the exception of Middle East markets directly affected by political turbulence, the region’s hotel industry has performed well in the first quarter of 2011. She said that demand in most markets was up, though this has not been translated into higher room rates due to continuing supply growth across the region. She said that Abu Dhabi has seen an increase in occupancy in the first quarter of 2011, and other Middle East hotel markets that grew in the first quarter of 2011 were Al-Khobar, Doha, Dubai, Kuwait City, Medina, Muscat and Jeddah. Randall said that the occupancy rate in the Dubai, at about 80 per cent, was the highest in the Middle East in the first quarter of 2011.

“For most markets, with the exception of Dubai and Abu Dhabi, supply is going to be quite constrained,” Randall said. “Dubai is projected to have a 7 per cent rise in Revenue Per Available Room (RevPar) in 2011 and 2 per cent in 2012. This is because of people changing their travel plans away from unstable markets.”

Another highlight of the day was the presentation of The AHIC 2011 ‘Lifetime Achievement Award’ to Nasser Al Nowais, Chairman of Rotana. Mr. Al Nowais founded Rotana in 1992, in partnership with Selim El Zyr, and has developed it into the leading regional hotel management company within the Middle East and Africa. It has rapidly expanded from just two properties in 1993 to an expected total of 70 properties by 2012.

At a reception and awards ceremony at Dubai’s newly opened Jumeirah Zabeel Saray Hotel last night, Saturday 30 April 2011, the Aloft Abu Dhabi Hotel was announced as the recipient of the Best New Hotel Award for its innovation in design and the range of amenities offered.

Collecting the award for Best City Centre Business Hotel, was the Phoenica InterContinental, Beirut, collected by John Bamsey, Chief Operating Officer, Middle East and Africa, IHG. With Dubai’s Grosvenor House and Al Manzil hotels named as runners up. Ramada Encore Doha claims the accolade of Best Economy Mid Market Hotel, collected by Bani Haddad, VP Development - Middle East and Africa, Wyndham Hotel Group Middle East and Martin Armitstead, Senior Vice President - Development EMEA, Wyndham Hotel Group, ahead of Ibis Muscat and Ibis Salmiya. For Best Luxury Resort, Oman’s Al Bustan Palace InterContinental Muscat proved to be the winner, collected by Kurt Kinsell, President, Europe, Middle East and Africa (EMEA), IHG while The Address Montgomerie in Dubai, and Egypt’s Steigenberger Al Dau Beach Resort were named as runners up.

The Best New Hotel Was also announced last night, with the award going to Aloft Abu Dhabi, collected by Stephan Vanden Auweele, General Manager, Aloft Abu Dhabi.