A GROWING number of dry hotels in the Middle East is putting pressure on the once untapped market.
However, the number of hotel chains carrying the alcohol-free flag still remain in single digits.Of these, HMH – Hospitality Management Holdings is among the few and the first hotel groups in the Middle East to have heralded the trend. Speaking on the sidelines of Cityscape Global 2014 in Dubai, Laurent A. Voivenel, CEO of HMH – Hospitality Management Holdings, comments, 'Dry hotels are no doubt the most challenging business proposition when it comes to expansion – more so in the five-star segment. However, it is a fast-growing sector that will continue to claim bigger market share and we were successful in penetrating it early.”Travel to the Middle East is expected to grow strongly over the next 10 years, with the region’s strategic location and investment in airports and infrastructure establishing it as an important global hub. Six cities in GCC - Dubai, Abu Dhabi, Doha, Jeddah, Muscat and Riyadh – represent over 124,000 hotel rooms and have seen supply soar in recent years. In Dubai a further 160,000 rooms are needed by the World Expo in 2020. Laurent stresses, 'A vital part of this growth is coming from the Muslim market as well as those looking for safe environment, and the importance of catering to this demographic is starting to be recognised by players across the board. Therefore, we are witnessing renewed confidence in the dry hotel segment with increasing demand from both owners and travellers. And Cityscape offers an excellent opportunity to explore such options.'The CEO adds, 'As far as market positioning goes, the strategic focus for our group remains on building investor and consumer perception to view HMH and its various brands as 'safe' indigenous brands offering great value in every aspect and segment. 'Global brands have been slow to recognise the opportunities in both alcohol-free and mid-market segment in this part of the world. We at HMH spotted the niche back in 2003 and had a head-start offering a complete choice of brands defined around a 'safe environment philosophy' from luxury to budget to both hotel owners and guests. What is critical to understand is entire portfolio of brands under HMH is alcohol-free irrespective of the destination we operate in, unlike most groups that may offer only one brand as alcohol free.'Over the years we gained outstanding experience and expertise in this segment that allows us to stay ahead of the competition by capitalising on our market insights and extensive customer network. At HMH, we have invested considerably in brand innovation and refreshment that has helped us to consolidate our presence in the market. Our digital strategy revolves around 'ease of use' and involving the consumer for better online conversion. One of our greatest achievements has been integration of latest technology with our booking and distribution channels that are at par with leading international brands giving us an enormous edge.'Cityscape has grown substantially – by 25 per cent this year – with organisers stating that it is the largest event since its peak in 2008. Over 35,000 visitors, including property investors, developers, investment promotion authorities, architects, designers and other real estate professionals are anticipated to attend the show. Developers across the UAE have already announced plans to launch and showcase major projects during the exhibition, which is now in its 13th year.