France's AccorHotels, the largest operator of hotels in Europe, completed the acquisition of Movenpick Hotels and Resorts, as the operator positions itself for further growth.
“This is an important deal for us as it complements our strategy to focus on asset-light businesses - Movenpick is a management company,” Chris Cahill, deputy chief executive of AccorHotels global, and head of luxury brands, told reporters in Dubai. “It also fits within a fast-growing category of our brand portfolio (above our upscale and below our upper-upscale brands) and gives us additional presence, primarily in the Middle East and Africa.”
In April, Riyadh-listed Kingdom Holding, which is controlled by Prince Alwaleed bin Talal, and its partners said they were selling their 5.7 per cent stake to AccorHotels. Mr Cahill said the French lodging group, which operates several brands in 100 countries, paid €482 million ($558 million) for complete the deal.
Accor adds Movenpick’s 84 hotels to its portfolio under the deal, including 51 across the Middle East and Africa and a further 18 in the pipeline. Prior to the deal, Accor had 222 hotels across MEA, and 125 in the pipeline. Globally, the group operated 4,500 hotels prior to the deal.
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Read more:
Revenue declines in May for Mena region's upmarket hotels, says EY
Abu Dhabi hotel occupancy climbs to 87.9 per cent in April
AccorHotels takes over Fairmont, Raffles owner FRHI
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There is a trend for consolidation in the hospitality industry, Mr Cahill added, and Accor “will continue to look at other acquisition opportunities to build our portfolio”.
He declined to say how much the group has set aside for investment, but noted that an agreement in February to sell 55 per cent of its AccorInvest property business to a group of sovereign and institutional investors for $5.3 billion is intended to help accelerate the group’s planned growth.
The company acquired FRHI Holdings, owner of the Fairmont, Raffles and Swissôtel chains, in 2015 in a deal valued at $2.9bn, swelling a portfolio that already included the Sofitel, Novotel, Pullman, Rixos, Grand Mercure and Banyan Tree brands, among others.
Hotel revenues across the Middle East and North Africa have eased in recent years because of low oil prices denting consumer spending power, and rising supply of hotel keys as the market matures. However, in many markets including the UAE, hotel occupancy rates have held up indicating continued demand, according to advisory firm EY’s latest Mena hotel report, published in August.
While average hotel revenues across Mena have declined about 11 per cent, according to EY, Mr Cahill told reporters the market is “pretty close to the bottom”, with growth opportunities in the region, particularly in the UAE, Saudi Arabia and Africa.
“There is a supply and demand imbalance at the moment, but demand is rising so I think it will correct itself," he said. "I wouldn’t be too concerned about there being a continued decline [in revenues] beyond 2018.”
Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Aspects of the school model will be extended to international private schools, the education minister has previously suggested.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
Recipe
Garlicky shrimp in olive oil
Gambas Al Ajillo
Preparation time: 5 to 10 minutes
Cooking time: 5 minutes
Serves 4
Ingredients
180ml extra virgin olive oil; 4 to 5 large cloves of garlic, minced or pureed (or 3 to 4 garlic scapes, roughly chopped); 1 or 2 small hot red chillies, dried (or ¼ teaspoon dried red chilli flakes); 400g raw prawns, deveined, heads removed and tails left intact; a generous splash of sweet chilli vinegar; sea salt flakes for seasoning; a small handful of fresh flat-leaf parsley, roughly chopped
Method
▶ Heat the oil in a terracotta dish or frying pan. Once the oil is sizzling hot, add the garlic and chilli, stirring continuously for about 10 seconds until golden and aromatic.
▶ Add a splash of sweet chilli vinegar and as it vigorously simmers, releasing perfumed aromas, add the prawns and cook, stirring a few times.
▶ Once the prawns turn pink, after 1 or 2 minutes of cooking, remove from the heat and season with sea salt flakes.
▶ Once the prawns are cool enough to eat, scatter with parsley and serve with small forks or toothpicks as the perfect sharing starter. Finish off with crusty bread to soak up all that flavour-infused olive oil.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
