UAE’s Rotana Hotels Bets on Saudi Arabia and Africa for Future Growth Amid Global Uncertainty

Rotana’s Focus on Saudi Arabia

Rotana’s CEO, Philip Barnes, highlighted Saudi Arabia as a key growth market, noting the abundant opportunities and the company’s deep roots in the Middle East. “Saudi Arabia is probably the biggest development market for us at this point in time, with the most number of opportunities,” Barnes said. Rotana aims to increase its presence in the Kingdom, where it already operates 11 hotels, with 11 more in development.

Barnes also noted that the company recently opened the Nova M Hotel Olaya Riyadh under the Edge by Rotana brand in September 2024, and they are optimistic about further expansion.

Regional Growth in MENA and Africa

Beyond Saudi Arabia, Rotana is focused on expanding in the wider Middle East and Africa (MENA) region. The company is actively exploring opportunities in North Africa and Sub-Saharan Africa, with projects in Egypt, Ghana, and a newly signed project in Somalia. In addition to the MENA region, Rotana is looking to broaden its presence in Europe, with new resorts planned for Sharm El Sheikh and potential developments in Georgia, Turkey, Romania, and Bulgaria.

A “Focused” Expansion Strategy

While Rotana is eyeing global growth, its strategy is highly focused. Barnes explained, “We’re in the hotel business, and they’re in the business of hotels,” referring to larger competitors who may be more globally expansive. He emphasized that Rotana’s strategy revolves around developing key flagship properties in regions where the company has deep market knowledge and operational experience.

UAE Market Outlook

Although the UAE remains a core market for Rotana, the company is shifting its focus toward regional expansion. Barnes acknowledged the UAE’s strength, with high occupancy levels in the 80-90% range, even during quieter periods like Ramadan. “We do have other properties under development here in the UAE... But our major focus is to look at where we need flagships and where it is that we need to develop the most,” he said.

Barnes also highlighted that while the UAE remains an affordable luxury destination compared to global cities like London, Paris, and New York, the country’s safety and stable environment continue to make it a popular destination for both business and leisure travelers.

Recruitment and Workforce Growth

As Rotana continues to expand, its workforce is also expected to grow significantly. The company currently employs just under 10,000 people and expects to exceed 11,000 within the next 18 months. Rotana is one of the largest employers in the hospitality sector in the broader Middle East.

Resilience Amid Regional Challenges

Rotana has also demonstrated resilience in challenging markets, such as Lebanon, where political instability has severely affected the tourism sector. Barnes noted, “We continue to operate the hotels on very low occupancy levels to try and keep the colleagues employed... we weathered the worst of the storm.” With Emirates resuming flights to Lebanon, Barnes is cautiously optimistic that the market will recover in time for the summer season.

Conclusion

Rotana Hotels is confident about its future growth prospects, particularly in Saudi Arabia, North Africa, and Sub-Saharan Africa. While global economic uncertainty remains a concern, Rotana’s strong regional focus, combined with its extensive market knowledge, positions it well to capitalize on new opportunities in the coming years.