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5/24/2018 Aranca MENA Tourism and Hospitality Report April 2014

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MENA Tourism and

Hospitality Report

Theme: Wellness/Medical Tourism

April 2014

aranca.com


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Table Table of Contents

01. MENA Tourism Synopsis .............................................................................................. 102. Hospitality Market Update ........................................................................................ 203. UAE Tourism Industry................................................................................................... 404.Theme: Wellness/Medical Tourism ........................................................................... 605. Hotel Pipeline and Expansions ................................................................................. 806.Trends in Hospitality and Tourism in GCC.............................................................. 10


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MENA Tourism and Hospitality Report April 2014 1

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01MENA Tourism SynopsisTourism in MENA is on a growth path, driven by the governments active efforts to

develop the sector and several events scheduled for the year

MENA TOURISM & HOSPITALITYAccording to the United Nations World Tourism Organization (UNWTO), the Middle East

witnessed mixed growth, receiving 52 million visitors in 2013. The World Travel & Tourism Council

(WTCC) anticipates travel and tourisms direct contribution to GDP in the MENA region to grow

5.5% in 2014. Furthermore, the council forecasts Oman to register one of the strongest growth

rates in the travel and tourism sector globally and support the sectors growth in MENA. In

February 2014, tourist arrivals in Egypt declined 27% y-o-y; the c ountry received the most tourists

from Eastern Europe, Western Europe, and the Middle East.

In February 2014, key hospitality sec tor indicators in the MENA region improved: occupancy

rates rose 1.3 percentage points (pps) y-o-y to 67.4%, the average daily rate (ADR) increased

2.7% y-o-y to $177.4, and revenue per available room (RevPAR) expanded 4.0% y-o-y to $119.6.

Oc cupancy rates in Manama (Bahrain), Doha (Qatar), and Amman (Jordan) grew 10%, eac h,in the same month. ADR increased the most in Dubai (the UAE), rising 9.7% to $286.9 as several

events were held during the month, allowing hotels to demand higher prices. Conversely, Abu

Dhabi (the UAE) rec orded the largest decline in ADR, which fell 22.9% to $148.7, largely due to

the higher base in February 2013. Manama (Bahrain) and Amman (J ordan) reported the

highest growth in RevPAR in February 2014 owing to increased occupancy rates. RevPAR

decreased the most in Beirut (Lebanon), declining 31.4% to $55.6, primarily due to lower

occupancy rate.

Egypt and J ordan increased visa fees despite low tourist arrivals due to political unrest in the

region. J ordan raised its visa fee from J OD20 to J OD40 effective from April 2014, whereas Egypt

plans to hike the visa fee from $15 to $20, with effect from May 2014. This is expected to impact

smaller groups of tourists and independent travelers, thereby hampering the overall tourism

sector.

In 2014, Qatar launched Qatar National Tourism Sec tor Strategy 2030 with the a im of

promoting itself as a world class hub with deep cultural roots. The country targets increasing

tourisms contribution to G DP to 5.1% by 2030 from 2.6% currently. The government and the

private sec tor plan to invest about $4045 billion in total in the tourism sec tor by 2030.

Oman plans to conduct several road shows ac ross GCC in 2014. These events would entail

meetings and presentations to create awareness about Omans travel offerings and promote

Oman as a short-break tourism destination.
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02Hospitality Market Update12The hotel industry in the Middle East & Africa (MEA) region performed well in

February 2014. Occupancy rates increased 0.9 pps y-o-y to 67.4% and ADR grew 2.7%

y-o-y to $177.42, resulting in a 4% y-o-y rise in RevPAR to $119.55

OCCUPANCY RATE

Manama (Bahrain) reported the highest increase in occupancy levels at 17.7 pps y-o-y to

63.2% in February 2014, whereas oc cupancy rose in Amman (J ordan) as well (5.5 pps y-o-y to

59.3%) in February 2014.

Doha (Qatar)s oc cupancy rates improved 9.4 pps y-o-y to reach 76.9% in February 2014. The

government aims to attract seven million visitors to Qatar by 2030 and is working toward this in

collaboration with the private sector. The government plans to invest $4045 billion in

developing Qatars tourism sec tor. Furthermore, the country has about 60 new tourism

development initiatives in the pipeline.

Occupancy rates in Abu Dhabi (the UAE) increased 3.1 pps y-o-y to 81.0% in February 2014 asthe number of guests rose 33% to 262,193 during the month. Growth in guest arrivals can be

ascribed to gourmet, cultural, B2B, entertainment, and sporting events held during the month in

Abu Dhabi.

In February 2014, occupancy rates for four- and five-star hotels in Dubai (the UAE) improved to

87.6%, primarily driven by the several events, including the Dubai Polo G old Cup Series 2014,

Emirates Airline Dubai J azz Festival 2014, and the Dubai Food Festival 2014 held during the

month. Occupancy rates in Dubai have remained high despite new supply entering the

market.

Oc cupancy rates in J eddah (KSA) expanded for the fourth consecutive month, gaining 1.2 pps

to 79.3% in February 2014. This was led by c orporate activities that resumed after the December

and J anuary holidays. In Riyadh (KSA), oc cupancy rates increased 2.2 pps y-o-y to 58.1% in

February 2014.

Kuwaits occupancy rate fell 48.4% in February 2014, a 5.5 pps decrease, largely as outbound

travel rose during the 10-day national holiday.

Due to the continued political instability and civil unrest in Egypt, the countrys occupancy

rates declined 1.3 pps to 45.1% in February 2014. Furthermore, several European c ountries

issued warnings against travelling to Sinai, Egypt, after a tourist bus was bombed in the country,

killing three South Koreans. In an attempt to revive the countrys tourism sec tor, the

1STR Global Data, Middle East/Africa Hotel Sec tor Performanc e for February 20142HotStats MENA Chain Hotels Review


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government has been inviting security delegations from foreign countries to visit Egypt, assess

safety measures at tourist areas across the country, and lift travel bans.

AVERAGE DAILY RATE (ADR)ADR increased the most in Dubai (the UAE), rising 9.7% to $287.0 as several important eventsheld during the month allowed hotel owners to hike rates.

Abu Dhabi (the UAE) reported the largest dec rease in ADR, which declined 22.9% to $148.7 in

February 2014. This was largely ascribed to an exceptional month in the previous year (February

2013), when Abu Dhabi hosted the International Defence Exhibition and Conference (IDEX)

2013, a biennial mega-event, which allowed hotel operators to charge higher rates.

REVENUE PER AVAILABLE ROOM (REVPAR)

In February 2014, Manama (Bahrain)s RevPAR grew the most, increasing 37.7% to $120.1,

followed by that of Amman (J ordan), rising 15.2% to $97.2. Growth in both these markets was

primarily due to increased occupancy rates.

Despite the increase in the number of visitors that boosted occupancy rates, Abu Dhabis

RevPAR dec lined 14.6% to $130.4 in February 2014, impacted by the 22.9% decline in ADR. In

contrast, Dubais RevPAR rose 7.3% to $321.6 in February 2014, primarily as ADR improved 9.7%

during the month.

In Saudi Arabia, Jeddahs RevPAR increased 7.2% to $200.0, driven by 1.2 pps growth in

occupancy rates.

Kuwaits RevPAR dec lined 16.4% to $135.9 as the 1.2% increase in average room rates was not

sufficient to offset the impact of 5.5 pps fall in oc cupancy rates.

The RevPAR for Sharm El Sheikh (Egypt) fell 12.4% to $22.2 due to a 10.9% decline in average

room rates. This was ascribed to further rate reductions, as suggested by the countrys tourism

minister, in an attempt to develop affordable travel packages to attract tourist inflows and

revive the countrys tourism sec tor.

Beirut (Lebanon)s RevPAR decreased 31.4% to $55.6, the largest decline in the region. This can

be ascribed to the 7.9 pps fall in occupancy rate during the month.

Table 1: Statistics in key MENA countries3

Occupancy ADR Occupancy ADR

Country Feb 2014 Feb 2013 Feb 2014 Feb 2013DecFeb2014

DecFeb2013

DecFeb2014

DecFeb2013

Egypt 45.1% 48.0% EGP421.2 EGP442.9 42.3% 47.6% EGP432.1 EGP443.2

Saudi Arabia 75.4% 73.5% SAR707.5 SAR658.6 69.1% 63.1% SAR742.0 SAR741.4

UAE 84.1% 83.7% AED882.9 AED857.2 80.9% 79.6% AED897.1 AED849.4

3STR Global Data, Middle East/Africa Hotel Sec tor Performance for February 2014, Aranca Analysis

Denotes increase in parameter Denotes decrease in parameter


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03UAE Tourism Industry4The UAEs tourism sector has been expanding over the years, with international

tourist arrivals expected to reach 39.9 million by 2024. Growth is driven by the

governments active participation in developing the sector, supported by public and

private investments

International tourist arrivals to reach 39,937,000 by 2024:In 2013, the UAEs travel andtourism sec tor ranked 32nd worldwide, in terms of absolute contribution to GDP. The

UAE generated revenue of United Arab Emirates Dirham (AED) 80.9 billion from

international tourists in 2013. The number of international tourists visiting UAE is

estimated to reac h 39,937,000, with revenues expanding at a C AGR of 2.4% to

AED105.4 billion during 201424. This can be ascribed to increased demand for hotels

and other tourism-related industries, including travel agents, airlines, restaurants, and

leisure industries.

Direct contribution to GDP to touch AED80.1 billion by 2024:The travel and tourismsec tors direct contribution to GDP is estimated to increase a t a C AGR of 3.1% to

AED80.1 billion (4.0% of GDP) in 2024 from AED56.5 billion (4.0% of GDP) in 2013.

Leisure tourism accounts for major share:Spending of inbound and domestic touristson travel totaled AED109.3 billion in 2013. Leisure tourism accounts for the majority

(78.6% or AED85.9 billion) of travel spending, whereas business travel spending

constitutes the remainder (21.4% or AED23.4 billion).

Leisure spending to grow faster during 201424:Leisure travel spending is anticipatedto increase 3.6% y-o-y to AED89.0 billion in 2014 and expand at a C AGR of 2.5% to

AED113.5 billion until 2024. Spending on business travel is estimated to grow 4.2% y-o-yto AED24.4 billion in 2014 and rise, thereafter, at a slower pace, registering a C AGR of

1.6%, to AED28.7 billion by 2024.

Investments in travel & tourism sector to grow 5.1% during 201424:Capital investmentsin the travel & tourism sec tor are estimated to grow 9.7% y-o-y to AED23.0 billion in

2014. During 201424, investments are expected to increase a t a C AGR of 5.1% to

AED37.8 billion.

Introduction of Dubai Vision 2020: In 2013, the Dubai Department of Tourism andCommerce Marketing (DTCM) introduced Dubai Vision 2020, with an objective to

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develop the tourism sec tor and transform Dubai from a regional events hub to a global

destination for events and entertainment.

o The DTCM targets doubling the number of tourists visiting the emirate from 10million in 2012 to 20 million by 2020 and tripling the tourism sectors annual

contribution to the emirates economy.

o The DTCM is supported by public and private bodies, to ac hieve theobjectives of Dubai Vision 2020, in preparing the required infrastructure. Dubai

is expected to add about 29,000 new hotel rooms by 2016 which would

increase the total count to 113,000 rooms from an estimated 84,000 rooms

currently.

o Dubai Expo 2020, on the other hand, is expected to receive more than 25million visitors, 70% of which would be from outside the UAE. About 45,000 new

hotel rooms would be required for the event, reflecting 6.4% growth every yearuntil 2020. The Government of Dubai has announced plans to invest about

AED26 billion on infrastructure projects in the coming years to support the

Dubai Expo.

Dubai ranked 23rdin the Top 52 Places to Go in 2014:In 2014, Dubai ranked 23rdin theNew York Times list of Top 52 Places to Go in 2014. The emirates entry in the list was

supported by various developments in the tourism sec tor, such as Dubai winning the

bid to host Expo 2020, the launch of Dubai Vision 2020, and infrastructural

development projects, including Dubai World Central Al Maktoum International

Airport, several new hotels, and upcoming leisure & entertainment attractions.

Abu Dhabi to witness growth in business tourism:Growth in the UAEs tourism sec torcan be ascribed to its rising popularity as a regional hub for visiting friends and relatives

(VFR) as well as meetings, incentives, conventions, and exhibitions (MICE). Furthermore,

Abu Dhabi is expected to attract 3.2 million tourists in 2014 vis--vis 2.8 million in 2013,

up by 15%. Abu Dhabi has become one of the most attrac tive venues for business and

globa l events and more tourists are expected to visit the emirate for business and

conference purposes in 2014.

Introduction of Tourism Dirham fee: Hotels in Dubai started c harging a tourism fee,called Tourism Dirham, with effect from March 2014. The tourism dirham is a minimum

fee, in the range of AED720, charged by hotels, hotel apartments, guesthouses, and

holiday homes to help fund projects for Expo 2020. The funds raised would support the

promotion of Dubai and drive the emirates tourism and trade sec tors.

Dubai launches a medical tourism strategy:In 2014, the Dubai Health Authority (DHA)developed a four-theme medical tourism strategy of competitiveness, determining

priorities, competitive markets, and medical spec ializations to set up price benchmarks

to attract tourists and visitors by providing high-quality health services at reasonable

prices. This plan is aimed at creating a health system that provides exceptional services

from the medical tourism perspective. The initiative is expec ted to generate revenue

of AED 1.2 billion and make Dubai a leading medical tourism destination globally.


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04Theme: Wellness/Medical

Tourism5The revenue contribution of wellness/medical tourism in the Middle East is expected

to reach $2.0 billion by 2016; governments across the region, particularly Jordan, the

UAE, Saudi Arabia, and Turkey, are working toward the development of the sector

Global medical tourism sector to reach $100 billion in the next five years:According toa report by the World Bank, the global medical tourism sector is estimated to expand

to about $100 billion within the next five years from $60 billion currently. Growth would

be driven by the rising global aging population and increasing medical costs. Patients

are travelling c ross-border to save money or avoid the long wait for treatment in their

home c ountry.

Middle East to attract 753,500 medical tourists by 2016:The medical tourism industry inthe Middle East is estimated to witness an influx of 753,500 tourists and generate

revenue of about $2.0 billion by 2016. Jordan, which has about 106 hospitals, leads the

medical tourism industry in the Middle East, offering state-of-the-art medical treatment

facilities.

Turkeys revenue from medical tourism to reach $408.0 million by 2016:Turkey is thesec ond largest country in the Middle East in terms of inflow of medical tourists and

revenue from medical tourism. The c ountrys strategic loc ation makes it a well-known

medical tourism destination. Turkey is expected to garner medical tourism revenue of

$408.0 million by 2016, driven by growth in the number of medical tourists due to the

creation of health zones in the country by 2014.

Dubai targets attracting 500,000 medical tourists a year by 2020: In 2012, Dubaireceived an estimated 107,500 medical tourists, who ac counted for about 8.7% of total

healthcare revenue. According to the Dubai Health Authority (DHA), the number of

patients visiting Dubai is increasing at a CAGR of 15%. Moreover, Dubai has developed

a two-phased medical tourism strategy, with an a im to attract about 500,000 medical

tourists per year and generate revenue of AED2.6 billion by 2020. The strategy is divided

into two phases: phase one extends until 2016 and phase two until 2020. The city is

expec ted to add 18 private and four public hospitals as well as more than 3,800 staff

members to the private hea lthcare sector.

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DHCC takes initiatives to support growth of medical tourism sector:Dubai HealthcareCity (DHCC ) is taking several initiatives to attract medical tourists to the c ity. The body

plans to create dedicated facilities for spa resorts, sports medicines, waterfront

residences, and nutrition centers. It has recently appointed dedicated facilitators, who

connect patients to doctors and help them arranging for their travel, accommodation,

and transportation from pre- to post-treatment.

UAE introduces new visa rules to attract foreign medical tourists: The UAE has thehighest number of J oint Commission International (JCI) certified hospitals in the region

and is expected to play an important role in the development of the medical tourism

sector in coming years. The UAE recently introduced a new three-month medical

tourist visa that is extendable twice up to nine consecutive months to attract foreign

tourists. In addition, the country has been granting short-stay visas to spec ialist doctors,

even for one-day trips.

Saudi Arabias medical tourist arrivals to reach 105,000 by 2016: The number ofmedical tourists in Saudi Arabia is expec ted to increase at a CAGR of 20% during 2012

16 to reach 105,000 by 2016. The Saudi Commission for Tourism and Antiquities (SCTA)

plans to launch marketing programs to promote KSA as a provider of high-quality

healthcare services at affordable c osts. Moreover, SCTA intends to open more private

healthcare facilities and deploy additional resources at these facilities to ensure

patients receive better attention and care.

Jeddah aims to become the medical tourism hub of Saudi Arabia: The Kingdom istaking significant efforts to improve its marketing program to promote J eddah as the

medical tourism hub of Saudi Arabia. The citys government is working in co-operation

with the national Ministry of Health to develop marketing programs. J eddah, throughits 40 hospitals and various specialized private c linics, has the facilities for a variety of

medical treatments and services.


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17,135

16,627

5,633

3,231

2,966

Saudi Arabia

United ArabEmirates

Qatar

J ordan

Egypt

Active hotel pipeline, by country(Number of rooms)

05Hotel Pipeline and

ExpansionsIn February 2014, the number of hotels and rooms in development expanded 2.6% y-

o-y to 504 and 123,631, respectively, in the Middle East & Africa (MEA)

HOTEL CONSTRUCTION PIPELINE6 As of February 2014,

MEAs active hotel

development pipeline

comprised 504 hotels

with 123,631 rooms vis--

vis 491 hotels with120,524 rooms in

February 2013.

Saudi Arabia ac countedfor the largest share of

the total active pipeline,

with 13.9% of rooms,

followed by the UAE

(13.4% share). Qatar,

J ordan, and Egypt

accounted for 4.6%,

2.6%, and 2.4% of the

total active pipeline,

respec tively.

6STR Global News Release

Active pipeline includes projects in the

'In-Construction', 'Final planning', and

'Planning' phases

Countries that have more than 2,500 rooms under

construction are reported about


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NEW HOTEL OPENINGS AND EXPANSIONS7 In April 2014, Ac tion Hotels announced its partnership with Whitbread Plc to develop

Premier Inn Hotels across the Middle East. Four new Premier Inn hotels are in the

pipeline to open during 201416. A 166-bedroom hotel is scheduled to be launched in

late 2014 in the UAE, a 100-bedroom hotel is expected to open at the start of 2015 in

Saudi Arabia, a 119-bedroom hotel is planned to open at the beginning of 2015 in

Bahrain, and another 245-bedroom hotel is scheduled to open at the start of 2016 in

Dubai.

In April 2014, Alfardan Hospitality entered into a partnership with Kempinski Hotels todevelop Marsa Malaz Kempinski The Pearl, a new hotel to be located in Doha, Qatar.

The hotel is planned as a five-star property spread over an area of 500,000 square feet

and is expec ted to open in the last quarter of 2014.

In April 2014, Centara Hotels & Resorts announced its intention to open a new hotel inMuscat, Oman. Centara Muscat Hotel, the new hotel, would be operated through a

management contrac t and is expected to open in June 2015. The hotel would have

about 154 rooms, two food and beverage outlets, a swimming pool, a spa & fitness

center, and meeting room facilities.

In April 2014, Bin Haider Hospitality opened its five-star hotel Grand Excelsior HotelSharjah, in the UAE. The new hotel is a 12-storey property with 180 rooms that was

launched to exclusively cater to GCC and international tourists.

In April 2014, Warwick International Hotels, a European luxury hotel operator, indicatedit plans to open three hotels in Saudi Arabia: one each in Jeddah, Dammam, and

Riyadh. Furthermore, the company is expected to open one hotel each in Qatar,

Lebanon, and Iraq in the current year. With these additions, Warwick International

Hotels will own eight hotels, in total, in the Middle East by the end of 2015; in the long

term, the c ompany plans to have 15 hotels in the region.

In April 2014, Langham Hospitality Group entered into an agreement with DAS RealEstate to manage its The Langham Resort in Dubai. The new resort, scheduled to open

in 2015, would be located on the crescent of Palm J umeirah and have 323 rooms,

including 53 one- and two-bedroom suites.

7Zawya News and Desk Research


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06Trends in Hospitality and

Tourism in GCCSERVICED APARTMENTS

The serviced apartments industry in GCC has expanded, led by growth in the tourism

sector and the increasing presence of international brands. More than 9,856 serviced

apartment units would enter the industry during 201317 in KSA, UAE, and Qatar

alone due to increasing demand

Key Statistics/Trends8 Demand dynamics of GCC-branded serviced apartments market: The serviced

apartments market in GCC is segmented based on guests stay tenure. The average

length of stay in branded serviced apartments varies according to the regional

market. Long stay guests account for about 4274% of total demand in KSA and

Qatars branded serviced apartments market, whereas the UAE market focuses on

transient demand, where the long stay segment accounts for just 18% of total

demand.

UAE, the most developed serviced apartment market in GCC:The UAE is the mostdeveloped market as a leisure destination, with Dubai accounting for about 66% of the

total supply of serviced apartments in the c ountry, followed by Abu Dhabi and Sharjah.

The UAEs occupancy rates grew in the first six months of 2013 as occupancy levels for

Dubai rose 8.2%, Abu Dhabi 5.5%, and Sharjah 20.3%, leading RevPAR to inc rease

12.3%, 11.9%, and 0.8%, respectively. Ac cording to the Dubai Statistics Center, Dubaisserviced apartment sector expanded at a steady rate in the last five years, where the

number of guests and length of stay increased at a CAGR of 14% and 19%,

respectively.

UAEs serviced apartment market attracts customers from within GCC: Demandseasona lity is similar to that of hotels in the UAE, with strong demand during J anuary

March and OctoberDecember. In the UAE, serviced apartment customers are

primarily from within GC C, with KSA being the largest contributor. Guests prefer

serviced apartments over hotels as they are more cost effective, have kitchen

facilities, and do not provide alcohol.

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Local brands and ageing properties dominate KSAs serviced apartment market: InKSA, serviced apartments are classified as furnished apartments by SCTA. KSAs

serviced apartment market is characterized by the presence of aging, low-quality

properties with limited fac ilities. Most properties are either loc ally branded or

standalone and do not have any international brand tie-ups. In the first half of 2013,

occupancy levels declined 3.4% and 2.1% y-o-y in Riyadh and J eddah, respectively,whereas occupancy levels in Dammam-Khobar increased 4.6%. In contrast, Riyadhs

RevPAR dec lined 4.8%, while that for J eddah and Dammam-Khobar grew 8.7% and

7.5%, respectively.

Majority customers originate from local market in KSA: In KSA, domestic tourismcontributes about 89% of overall demand for serviced apartments. This trend can be

ascribed to the absence of international brands in KSAs serviced apartment segment.

International tourists prefer to stay in branded apartments and the lac k of such

apartments drives international visitors away from serviced apartments in KSA. Marriott

Exec utive Apartments, the first internationa lly branded serviced apartment in Riyadh,

Saudi Arabia, were launched in 2012. Consequently, the serviced apartments market is

expec ted to attract the attention of other major international players that would fill the

demand-supply gap in the countrys serviced apartments market in the coming years.

Large supply of deluxe serviced apartments in Doha:In terms of supply, Doha is thelargest city in Qatar and houses about 79% of total serviced apartment supply,

classified as deluxe, whereas the remaining 21% is classified as standard. Overall, just

28% of the total stock is internationally branded. In the deluxe category, 34% of the

total stock is internationally branded, whereas no international brands exist in standard

serviced apartment category in Doha.

About 30% of total properties in Bahrain are serviced apartments:In Bahrain, which has84 properties, serviced apartment represents about 30% of the total size of the

hospitality industry. The countrys serviced apartment segment, particularly

internationally branded players, performed better than other traditional hotel

segments. About 30% of total apartments are internationally branded in Bahrain.

Significant expansion plans in the pipeline:Between 2013 and 2017, KSA is expected toadd about 6,495 serviced apartment units, primarily in Riyadh and J eddah, whereas

the UAE is projected to add 2,836 units, largely in Dubai and Abu Dhabi. Qatar is also

anticipated to add 525 serviced apartment units during the same period.

Brand power and online presence drive growth:Demand for serviced apartments hasincreased in GC C, led by the growth in the number of business travelers and

expatriates who prefer longer stays at reasonable prices. Furthermore, family-group

customers appreciate the flexibility of serviced apartments for longer stay options.

However, the market is charac terized by non-standardized brands, with most

serviced apartments being converted from, or designed like, residential apartments.

Through global distribution systems (computerized reservation network), direc t

bookings and website bookings contribute about 40% to total bookings; the markets

growth depends upon the strength of brands and their online presence.


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Major Brands/Expansion Plans9 In April 2014, DAMAC Properties announced a new project which would be located in

Dubais J umeirah Village. The project, named Vantage, would be a 33-storey tower

with one-, two-, and three-bedroom fully furnished apartments. Vantage would be

operated by DAMAC Hotels, the hospitality arm of DAMAC Properties, and is

scheduled to be completed by the second quarter of 2017.

In March 2014, Hilton Worldwide signed a management agreement with First QatarReal Estate Development for a new 445-room hotel in Qatar, comprising a mix of

qua lity serviced apartments, penthouses, and townhouses. The project, named Hilton

Doha The Pearl Residences, is expec ted to be located in Doha and open in 2017.

In February 2014, Golden Tulip Hotels, Suites & Resorts MENA announced it intends toopen six hotels in the UAE, Saudi Arabia, and Tunisia. The group has begun constructing

a 355-key hotel and serviced apartment units in Saudi Arabia, expected to becompleted by 2017.

In December 2013, DAMAC Properties announced the first luxury serviced apartment inDubai World Central. The project, named TENORA, would be a 10-storey and 270-unit

tower offering a lively atmosphere in a prime location. TENORA is scheduled to be

launched in the second quarter of 2015.

In October 2013, Accor Middle East secured a management contract with API Hotelsand Resorts for a 201-unit upscale serviced apartment in Dubai. The project, named

Adagio Aparthotel Premium Dubai, is scheduled to open in 2014.

In May 2013, CapitaLands premiere serviced residence The Ascott Limited enteredinto a management contract with Rafal Real Estate Development for its 230-unit Ascott

Olaya Riyadh. The unit would be built close to the King Abdullah Financial District in

Riyadh and is expected to be launched in 2015. This unit would increase the Ascotts

GCC portfolio to about 1,300 serviced apartment units ac ross seven properties in GCC.

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Disclaimer:

This material is exclusive property of Aranca. The information, opinions, estimates,

and forecasts contained in this report have been determined or obtained from

public sources believed to be reliable and in good faith. Aranca has not

independently verified these data and makes no assertion as to its accuracy,

reliability, or completeness. Aranca will not be held liable under any circumstances

for any direc t or indirect loss or damage suffered as a result of the use of this

information. This newsletter is intended for the personal use of qualified users and

not for broader distribution. No part of this presentation may be used or shared,

modified or reproduced in any format without explicit written permission of Aranca.

2014, ARANCA. All rights reserved.

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