R Hotels, the hotel management subsidiary of R Holdings, will invest Dhs1.5 billion in its acquisition and development plans, said a senior official.
According to Samir Tariq, managing director of R Hotels, the group is on track to double its hotel portfolio to six hotels by the end of 2015. Currently the group owns, manages and operates three hotels in Dubai and Ajman under the Ramada brand – Ramada Downtown Dubai, Ramada Hotel & Suites Ajman and Ramada Beach Hotel Ajman.
R Group will open three more hotel properties in the UAE in next two years, said Tariq.
“Our focus has been on trophy assets and building a strong team. We are on track in terms of our acquisition and development and will be opening our second property this year in JBR, the Walk,” said Tariq.
“We plan to invest Dhs1.5 billion towards our acquisitions and development over the next three to four years, and have already committed Dhs500 million in 2013.”
Tariq said that the company hopes to double its portfolio of assets over the next two years.
“We have created a niche market being a dry hotel, focusing on the product and guest services and by building strong operations,” he said.
R Hotels’ investment plan is to bring new hospitality brands to the UAE in order to cater to the growing tourism industry. Tariq said that the opening of the new properties is expected to create jobs for the local workforce.
“During the first and second quarter of this year, our properties recorded significant growth in their occupancy rates, even during the summer season when business is generally slow,” said Tariq.
“Both the Ajman and Dubai properties recorded rise in their revenues above the general market trend, so we are continuing to see a steady demand for our properties.”