HMH - Hospitality Management Holdings is
entering the budget hotel market with Ecos Hotels, a 'no frills'
Laurent A. Voivenel, CEO, HMH, said, "We
are eager to penetrate the largely untapped market for mid-scale
and economy hotels in the region with Ecos Hotels that ties
together a unique economical and ecological concept. To start with
we have three different projects under consideration in the UAE
and the first of these will be developed in Dubai. Ecos will serve
as the ideal address for savvy budget conscious business and
leisure travellers looking for quality in terms of basics such as
a good bed, shower and breakfast."
Dubai has given a tax reprieve to investors
developing mid-market hotels by exempting eligible hotels from 10%
municipality fee levied on the daily room rate for a period of
four years if the construction permit is granted between 1 October
2013 and 31 December 2017. The emirate is expected to have 2,443 economy
hotel rooms by 2017 in addition to those planned and under
"The region is seeing phenomenal growth in
stopover traffic, rapidly expanding low-cost carriers,
inter-regional travel, increased airport capacity and a growing
middle class that is fueling the demand for budget hotels. In
addition, a lot of local and international companies are cutting
down on their annual travelling budgets and seeking affordable
accommodation. However, existing hotel stock in the Middle East,
including the UAE, is predominantly geared towards luxury and
up-market accommodation leaving a huge gap and opportunity for
budget hotels that we are keen to develop," said Laurent.
The number of visitors travelling to the Middle
East is projected to double reaching 136 million by 2020 compared
to 54 million in 2008.
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