Increased competition, demand to spur hospitality growth in UAE and region during 2016: Expert

With increasing number of hotels opening and due to open over the next couple of years, the hospitality industry across the UAE and region is set for a new phase of growth as hotels and related sector players jostle for increased market share amidst rising demand, an industry expert has said.

 

With over 90,000 rooms across 350 hotels under construction, including more than 50,000 hotel rooms currently in the pipeline across the UAE and Saudi Arabia, the demand for niche industries such as food &beverage is expected to skyrocket in the coming years.

 

In the wake of this trend, the need of the hour is to be innovative even as F&B companies are on the threshold of an exponential growth in spite of economic slowdown in other sectors, said Abdul Kader Saadi, Managing Director at Glee Hospitality, which has introduced a number of new F&B concepts such as Rice Creamery across the Middle East.

 

“The F&B market is very competitive and we are spoilt with choice. As we predicted five years ago, the way forward is for home grown brands. These local and regional brands will emerge stronger in the current market and on the pedestal of a strong growth trajectory,” said Mr Saadi.

 

He added: “Our books are already full for the coming 18 months. There is still room for well thought concept with strong foundation such as good food, good service and price point. Overall, our emphasis is on fascinating menus, fresh components, and modern elements of design, both well prepared and worthy personnel across key markets in the Gulf.”

 

Talking about competition, Mr Saadi added: “The market for hotel restaurants is saturated – there are on an average about five or six in each hotel. However, there is a clear lack of good high street restaurants in the UAE and this is where we are trying to make a difference.A lot of existing concepts are currently suffering due to lack of proper business planning and strategies.”

 

As a result, Glee is being approached to provide its expertise in managing these concepts and get involved in auditing, strategy planning and operational support to turn around the dwindling businesses which in turn is also creating a good business opportunity for the company.

 

Glee Hospitality has a clear vision in place and plans to unveil new concepts in the coming years, primarily targeting the UAE, Saudi Arabia, Kuwait and Bahrain markets.

 

“Expansion is definitely on the cards. We plan to offer some of the most delectable taste treats in the UAE and region – be it our menu, innovative concepts, unmatched ambience or personalized service,” he summed up.