Choice to expand range of mid-market hotels in Middle East

Choice Hotels is to expand into the Middle East after signing a master development agreement with Equinox Ventures, a joint venture between Equinox Group and Al-Tayyar Travel Group.

It plans to introduce and develop three of Choice’s most prominent brands – Clarion, Comfort and Quality – across the United Arab Emirates and Saudi Arabia.

According to Phocuswright, the Middle East travel industry is forecast to rise to $98 billion by 2017, from $71.8 billion in 2014.

"Historically, hotel development in the region has been led by upscale brands, but with an emerging middle class looking to travel both within the region and internationally, and an increase in inbound business, leisure travel and tourism, there is growing demand for mid-market and budget accommodations," said the hotel partners.

Shuja Zaidi, president of Equinox Group, said: "We believe that the next wave of growth and expansion in our region belongs to the mid-market segment.  

"To prepare for it, it was only natural that we partner-up with one of the largest and most globally recognized experts in the space." 

Al-Tayyar Travel, which bought upscale UK operator Elegant Resorts in 2014, is a travel service provider in the MENA region operating over 320 retail travel agency branches in Saudi Arabia, as well as being the largest corporate travel management service provider.

CEO Abdullah Aldawood said: "This cooperation with a global player will help us close the gap in our efforts to integrate all parts of our travel business.  

"We had started with acquisition and development of hospitality assets, moving on to asset management and now rolling out globally recognised brands in the region with our partners who have the expertise and the regional knowledge."

The master development agreement is anticipated to deliver approximately 25 hotels and 8,000 hotel rooms for Choice’s portfolio in the UAE and Saudi Arabia by 2021.

"We are delighted to sign this agreement with Equinox Group and Al Tayyar Travel Group that will help Choice establish a presence in the UAE and Saudi Arabia, and also offer a platform for rapid expansion," said Mark Pearce, senior vice president, international division, for Choice Hotels.

"Drawing on their regional expertise and infrastructure, we are perfectly placed to provide travellers with the quality mid-market hotel accommodations they need, all backed by Choice’s global hotel platform and brand reputation for value and service."

This agreement is the fifth EMEA market portfolio expansion Choice has announced in the last six months, having signed agreements related to the co-branding of 19 properties in Germany, Austria and Hungary under the Comfort and Quality brands, and another deal to establish multiple hotels in Belgium. 

Choice is further growing its presence in Germany with two new Comfort brand hotels in Frankfurt and Düsseldorf, and recently launched its upscale Ascend Hotel Collection in the UK and France. 

Turkey is another strategically important market for Choice where it currently has three hotels in Istanbul and one in Kahramanmaras, and developments in the pipeline.