Budget brands’ thousand and one projects in the Middle East and Africa

Dubai is no longer just a luxury oasis in the middle of the dessert. Ibis already has three hotels in the Emirates and they will soon be four with the opening in June of the Ibis Mall of the Emirates. Express by Holiday Inn is also present with three properties. Economy hotels are beginning to find their position as they accompany the Emirate’s strategy that is directed towards mass tourism and global economic expansion. “The formula is a winner on all markets, particularly where the only quality hotels are expensive. Our first hotel in the Middle East is open in Dubai and we will open three more in 2009,” rejoices Steve Conway of Premier Inn. “The region is still far from reaching maturity on the budget segment. There are opportunities for a low-cost operator such as ourselves in order to capitalize on the potentially enormous growth in demand in the next years,” explains Calum Russell, marketing director of easyHotel. Backed by the local investor Istithmar, the brand owned by Stelios Haji Ioannou should have a hotel in Dubai by the end of the year.Due to the low volume of national demand, the rest of Africa is not so favorable for the development of economy hotels. International brands are rare except for Ibis in Abidjan, Douala, Lomé and Cotonou. With Nigeria – in theory, because in practice it is difficult to establish business there – only one other country offers potential for a real network: South Africa, a territory that already has a good supply of 0-2* hotels. 24 Formule 1 hotels have been established as the result of a JV with the local group Southern Sun. This partner is gradually developing its own supply. Also closely tied to InterContinental for its midscale and upscale brands, Southern Sun has regained management...