IHG sees drop in Middle East room revenue

IHG Hotels, which operates several brands including Holiday Inn, reported a drop in room revenues in its Middle East hotels over the third quarter. (Reuters)
Updated 20 October 2017
0

IHG sees drop in Middle East room revenue

LONDON: IHG’s strong global performance for the third quarter dipped in the Middle East.
The hotel operator said revenue per available room, a measure known in the industry as RevPAR, fell 6 percent in the region compared to a year earlier.
In its latest trading update, the company, whose holdings include the InterContinental, Crowne Plaza and Holiday Inn hotel brands, cited the ongoing impact of low oil prices, high supply growth and government austerity measures as well as the timing of Ramadan as reasons for the decline.
Globally, the group recorded a 2.3 percent rise in RevPAR over the period with a net rooms growth of 4.1 percent, its strongest since 2010.
This takes the group total to 786,000 rooms with a further 235,000 in the pipeline.
China and Europe recorded the strongest growth in room revenues.
In the Middle East, IHG said it maintained momentum this year with the opening of six new hotels by the end of 2017.
This includes a Holiday Inn in Doha and two new properties in Saudi Arabia – Staybridge Suites Jeddah Alandalus Mall and a Crowne Plaza in Riyadh.
Discussing the group’s expanding footprint across the region at Arabian Travel Market earlier this year, Rajit Sukumaran, the regional chief development officer at IHG said: “While we have great demand for our mid-scale offering in the current economic environment, we are also seeing interest in our extended-stay brand, Staybridge Suites, in response to the evolution of the region’s major cities into budding business hubs.”
IHG was the first international hotel company to enter the Middle East with the launch of the InterContinental Phoenicia Beirut in Lebanon in 1961.


Saudi Aramco Trading aims for 50% rise in oil trade volume in 2020

Updated 19 min 41 sec ago
0

Saudi Aramco Trading aims for 50% rise in oil trade volume in 2020

  • About 50 percent of the 2.5 million bpd of oil products it trades currently are hedged
  • The company is also looking at building its capacity in trading liquefied natural gas

SINGAPORE: Saudi's Aramco Trading Company (ATC) expects to increase its oil trading volume to 6 million barrels per day (bpd) in 2020, 50 percent higher than current levels, the company's top official said on Monday.

"Currently ... we're at 4 million barrels per day and with expansion I think our target is 6 million barrels per day," President and Chief Executive Ibrahim Al-Buainain said at the Asia Pacific Petroleum Conference (APPEC).

About 50 percent of the 2.5 million bpd of oil products it trades currently are hedged, he said.

The company is also looking at building its capacity in trading liquefied natural gas (LNG), using its Singapore office as a trading hub, Buainain said.

ATC plans to set up its European office in either Geneva or London and also aims to have an office in Fujairah to manage oil storage, he said.

In Singapore, Buainain said he expects the company's office to grow to 30 to 40 people within the next two years.

ATC also expected to benefit from a switch by ships to cleaner fuels in 2020 as mandated by the International Maritime Organization.

"The second-hand effect of the IMO is the oversupply of high-sulphur fuel oil (HSFO) which in our case is a positive because we are net short on fuel oil and that will help us in meeting our requirements (for HSFO) in power generation," Buainain said.

Buainain has headed the trading arm of Saudi Aramco since 2016.

ATC was set up in 2012 to market refined products, base oils and bulk petrochemicals. It started trading non-Saudi crude oil and refined products from its overseas refineries in the past years as the world's largest oil exporter seeks to optimise profits.