Ras Al Khaimah, April 27, 2016 – RAK Hospitality Asset Management, the hotel asset management and advisory arm of RAK Hospitality Holding (“RAKHH”), an owner of a diverse portfolio of government owned hotels, hospitality and leisure assets in Ras Al Khaimah, today announced that its hotels under management, posted a record growth of 16.4% in RevPAR in Q1 2016.
Rashad Saab, Head of Asset Management at RAK Hospitality Asset Management, attributes the growth to three main reasons. “Firstly, the tireless effort of the hotel operating teams in consistently delivering superior customer service has had a favourable impact on the top line of our hotels. Secondly, RAK Tourism Development Authority is driving considerable demand for our hotels from international feeder markets through targeted marketing campaigns and investment in enhancing the tourist proposition in Ras Al Khaimah. Thirdly, RAK Hospitality Asset Management, using its multi-disciplinary team, has implemented proactive asset management practices with the hotel operators, which are focused around improving financial and operating performance as well as executing value-adding capital projects.”
Strong Momentum amidst Positive Outlook for 2016
RAK Hospitality Asset Management has more than AED 2 billion in assets under management comprising four luxury, upper-upscale and upscale hotels in Ras Al Khaimah that together make up approximately 28% of the emirate’s room inventory (1,453 rooms). The hotels are: Banyan Tree Al Wadi, Hilton Ras Al Khaimah Resort & Spa, Rixos Bab Al Bahr on Al Marjan Island, and Hilton Ras Al Khaimah which is currently under renovation and is expected to open in late 2016.
Saab added: “Our portfolio of hotels demonstrated solid performance in Q1 2016 under the guidance of RAK Hospitality Asset Management. By applying our extensive knowledge of the hospitality sector and putting our proven investment philosophy into practice, we are laying the groundwork for what will be longer-term success.”
Saab continued: “The strategic plan for our portfolio is backed by healthy market dynamics in Ras Al Khaimah, and falls in line with the direction of regional governments to boost tourism through hotels, leisure and entertainment activities. For example, Ras Al Khaimah is seeking to attract 1m visitors by 2018, a target that RAK Tourism Development Authority, in close cooperation with its tourism stakeholders, is closing in on fast.”
RAK Hospitality Asset Management has a strong pipeline for 2016 with strategic objectives that include strengthening its existing hotel assets, overseeing multi-million dirham renovation projects at Hilton Ras Al Khaimah and Hilton Ras Al Khaimah Resort & Spa and extending its services to hotels and resort owners and developers across the UAE and wider GCC.
Above Average Performance
Commenting on these results, Yannis Anagnostakis, Chief Executive Officer at RAKHH said: “As we enter 2016, we are confident that we are on the right track to lasting success. Following the consolidation and refinancing of our four hotels in May 2015, our focus switched to ensuring operator engagement and alignment, a process that was led by RAK Hospitality Asset Management. I am proud of the results we have achieved so far, and 16.4% RevPAR growth for Q1 2016 is testament to the benefits of proactive asset management with a long term view. Additionally, when considering the year-to-date RevPAR growth of the overall RAK market, credit must be given to the RAK Tourism Development Authority which continues to support our hotels and the tourism sector in a very positive way.”
Despite market headwinds on the tourism sector in the UAE generally, Ras Al Khaimah proved resilient by demonstrating RevPAR growth of 9.2% for Q1 2016.