International budget chains, such as the Premier Inn and aloft of the UK, are on the look out to enter the UAE hotel market, said Adrian Jonklaas, Senior Consultant at PKF The Consulting House.

Average daily expenditure of budget travelers is about $100, he pointed out, adding that the sector’s growth indicates that the tourism sector of the emirate is maturing.

Another advantage of a branded budget hotel is that they keep a tab over the rise in prices of four and five star hotels, and compel the operators of these hotels to deliver an exemplary service to compromise for the value proposition that budget hotels offer their guests, which is a desirable and sustainable outcome, he pointed out.

At present about 40 percent of Dubai hotels and 30 percent of Abu Dhabi hotels are three stars or less, majority of which are unbranded.

Meanwhile, the Dubai-based firm Layia Hospitality, recently announced that it has been setting up a new budget hotel called ‘Day & Night’ Hotels, which plans for 15 properties across the Middle East.

The UK’s largest budget hotel chain, the Premier Inn, also plans to expand into the region. The company opened its first hotel in Dubai 18 months ago, and now already operates three hotels in Dubai. The hotel chain has also further announced plans to open two more Dubai hotels soon, while more developments have been planned in Abu Dhabi, Muscat, Doha, and Riyadh.

Posted on 3/2/2010

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