Hilton, the New York-listed hotel operator, plans to double its portfolio of 169 hotels in Middle East, Africa and Turkey in the next five years with a sharp focus on expansion in the Arab world’s two biggest economies – Saudi Arabia and the UAE.
"Last year, was a bit slow … in terms of the number of openings. [However] the good news is that we signed quite a few new hotels during the pandemic, showing the strength of our brand," Jochem-Jan Sleiffer, Middle East, Africa and Turkey president for Hilton told The National on the sidelines of Arabian Travel Market on Tuesday.
“When I look at the entire region … the opportunity is still there to double the number of hotels within the next three to five years.”
The operator has boosted its pipeline of new properties to 173 hotels and the majority of them are under construction, Mr Sleiffer said.
“Some of the openings, which were planned for this year will slip into next year. [But] we will see a big hike in 2022 and 2023,” he said.
In the Middle East, Hilton currently operates 60 hotels and has 86 hotels in the development process. Its regional portfolio will more than double when the pipeline matures.
In the UAE, the company has 30 hotels and 17 in the pipeline, while in Saudi Arabia, it has a portfolio of 14 hotels and a pipeline of new properties that is three times bigger.
“We saw the demand before the pandemic and we see the demand now. The demand is huge,” Mr Sleiffer said. “We have 115 million Hilton Honours members and these people want to travel, they are actually desperate to travel.”
Hilton has ambitious plans to expand in Saudi Arabia, a market that offers opportunities in both leisure and religious tourism. The kingdom is home to Islam's holiest sites, which before the pandemic annually attracted millions of pilgrims – a group that Hilton expects will continue to fuel demand for hotels.
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Arabian Travel Market - in pictures
A raft of measures to support the hospitality sector were set out at Dubai's Arabian Travel Market 2021, including a one-month trial to ease Covid-19 rules for bars, restaurants and live venues. Antonie Robertson / The National
The 2021 Arabian Travel Market exhibition opened at the World Trade Centre in Dubai on May 16. Antonie Robertson / The National
Top industry leaders, ministers, airline executives and hoteliers will meet during the four-day event. Antonie Robertson / The National
Organisers say it is the first in-person travel and tourism event in the world since the onset of the pandemic. Antonie Robertson / The National
This year's event comes at a crucial time as the global aviation and tourism industry battles the Covid-19 pandemic. Antonie Robertson / The National
A man makes handicrafts at the Saudi Arabia stand at Arabian Travel Market exhibition. Antonie Robertson / The National
Coffee is served at the Saudi Arabia stand at Arabian Travel Market. Antonie Robertson / The National
The Emirates Airlines stand at Arabian Travel Market. Antonie Robertson / The National
The Saudi Arabia stand at Arabian Travel Market. Antonie Robertson / The National
This year's exhibition is being held under the theme "A new dawn for travel and tourism". Antonie Robertson / The National
The Morocco stand at Arabian Travel Market. Pawan Singh / The National
Visitors at the Expo 2020 Dubai stand at Arabian Travel Market. Pawan Singh / The National
Visitors tour some of the exhibition stands at Arabian Travel Market. Pawan Singh / The National
This year's event will focus on the current state of the industry, progress on vaccines and future trends. Pawan Singh / The National
Visitors at the Abu Dhabi stand look at a model of Sheikh Zayed Grand Mosque at Arabian Travel Market. Pawan Singh / The National
Visitors tour the Dubai exhibit at Arabian Travel Market. Pawan Singh / The National
An artisan makes handicrafts at the Saudi Arabia stand at Arabian Travel Market. Pawan Singh / The National
Visitors at the Saudi Arabia stand. Pawan Singh / The National
The Egypt stand at Arabian Travel Market. Pawan Singh / The National.
The Dubai stand, with a model of Burj Khalifa in the foreground, at Arabian Travel Market. Pawan Singh / The National.
The Expo 2020 Dubai stand at the Arabian Travel Market. Delayed from last year due to the Covid-19 pandemic, Expo 2020 Dubai opens on October 1. Pawan Singh / The National.
Visitors explore the Expo 2020 Dubai stand at Arabian Travel Market. Pawan Singh / The National.
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“The religious travel will always be a big base for the business that goes into that country", he said, adding that the kingdom has the potential to be “much bigger” than any other market in the region.
The opening up of Saudi Arabia’s market after 14 months is also a “big deal” for Hilton, not just for its Middle East operations but also for its European properties that count the kingdom as an important source market.
Hilton, like other hotel operators, has benefited from a rise in staycation business in the UAE, Mr Sleiffer said.
“There’s very little [corporate] business … it’s purely leisure. People have discovered how many things you can do here actually,” he said, adding that Hilton adapted to the trend very quickly and some of its beach properties have performed very well despite pandemic headwinds.
The government’s vaccination drive in the UAE has also helped in boosting Hilton’s business. The operator now counts local residents as its biggest source market, followed by Russia and some other Central Asian states.
Mr Sleiffer expects corporate sector business to take about one-and-a-half to two years to fully recover. There was very little demand for MICE (meetings, incentives conference and exhibitions) business in 2021, but there are indications of a pick-up in the second half of the next year, as people are “anxious to get back together".
A hospitality veteran who has spent more than three decades with Hilton, Mr Sleiffer took up the leadership role in the region in January last year.
With the hospitality industry still dealing with uncertainties, he is calling for a vaccine passport or a similar centralised inter-governmental system that can help ease travel restrictions.
“The quicker governments can get together in deciding on vaccination passport, a digital passport” the better it will be for the hospitality industry, as it will allow people to travel safely, he added.
How much do leading UAE’s UK curriculum schools charge for Year 6?
Nord Anglia International School (Dubai) – Dh85,032
Kings School Al Barsha (Dubai) – Dh71,905
Brighton College Abu Dhabi - Dh68,560
Jumeirah English Speaking School (Dubai) – Dh59,728
Gems Wellington International School – Dubai Branch – Dh58,488
The British School Al Khubairat (Abu Dhabi) - Dh54,170
Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
June 3: NZ Provincial Barbarians 7 Lions 13
June 7: Blues 22 Lions 16
June 10: Crusaders 3 Lions 12
June 13: Highlanders 23 Lions 22
June 17: Maori All Blacks 10 Lions 32
June 20: Chiefs 6 Lions 34
June 24: New Zealand 30 Lions 15 (First Test)
June 27: Hurricanes 31 Lions 31
July 1: New Zealand 21 Lions 24 (Second Test)
July 8: New Zealand v Lions (Third Test) - kick-off 11.30am (UAE)
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
Favourite book: Men are from Mars Women are from Venus
Favourite travel destination: Ooty, a hill station in South India
Hobbies: Cooking. Biryani, pepper crab are her signature dishes
Favourite place in UAE: Marjan Island
Tips for used car buyers
Choose cars with GCC specifications
Get a service history for cars less than five years old
Don’t go cheap on the inspection
Check for oil leaks
Do a Google search on the standard problems for your car model
Do your due diligence. Get a transfer of ownership done at an official RTA centre
Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
