Airlines bed down hotel business
DUBAI: Airlines of the United Arab Emirates are getting into the hotel business.
Emirates has announced that it will develop a US$253 million resort property in the Seychelles, taking its total investment in hotel property to almost US$1 billion by 2010.
Called Emirates Cap Ternay Resort and Spa, the 22-acre development will be in Mahe, Seychelles.
Emirates Hotels, launched in 2006, has so far made investments in six hotels and resort projects across three countries.
In Australia work has started on the Wolgan Valley Resort and Spa in the Blue Mountains, New South Wales.
Emirates president Tim Clark said the hotels division was enriching the Emirates brand. “Hospitality businesses will bring value to what we do,” he said.
“The Emirates Hotels and Resorts will grow as we continue to carry passengers from point A to point B, like the development of SAS and Intercontinental hotels.
He said the Emirates hotel brand would become a major business for the airline.
Abu Dhabi-based Etihad is also getting into the hotel business. It plans to develop a business hotel and two transit hotels at Abu Dhabi international Airport.
“Initially we will look at developing hotels in our own backyard. If that works we will look at growing bigger,” said Etihad CEO, James Hogan.
Ian Jarrett
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