Riyadh hotels report higher occupancy, revenues in November

Riyadh hotels report higher occupancy, revenues in November
Above, the Ritz Carlton hotel in Riyadh. Hotels in the Saudi Arabian capital recorded an 82.8 percent occupancy level in November. (AFP)
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Updated 23 December 2019

Riyadh hotels report higher occupancy, revenues in November

Riyadh hotels report higher occupancy, revenues in November

DUBAI: Saudi Arabia’s ambitious Vision 2030 plan, which aims to wean its economy from oil dependence, is gradually reaping dividends for the Kingdom’s tourism industry – one of the economic program’s pillars – latest hospitality data show.

“Saudi Arabia has seen a positive shift in hotel performance due to Saudi Vision 2030, a plan focused on diversifying the economy from being highly oil-reliant and focusing on public sectors, such as tourism growth,” global hospitality analyst STR said in its research note.

STR’s comment was hinged in particular on the 82.8 percent occupancy level in Riyadh hotels last month, the highest for a November since 2007, boosted by a 55.0 percent increase in demand. It earlier reported that Riyadh hotels recorded a 76.2 percent occupancy rate in October, thanks to the influx of visitors who attended the three-day Future Investment Initiative.

The average daily rate (ADR), or the average revenue earned from the number of rooms sold, rose 11.1 percent to 685.91 riyals ($182.68) while Revenue Per Available Room (RevPAR), derived by multiplying a hotel’s ADR by its occupancy rate, rose by almost 50 percent to 568.19 riyals.

Saudi Arabia has set a goal of 100 million visitor arrivals yearly by 2030, with the tourism sector accounting for 10 percent of the country’s gross domestic product from its 3 percent share. The Saudi Commission for Tourism and National Heritage recently opened the Kingdom for the first time to visitors from 49 countries particularly those from Europe, US, Canada, Australia and New Zealand.

Hospitality metrics for the wider Middle East region, meanwhile, were mixed, with occupancy rates going up 3.4 percent to 72.1 percent against ADR falling 5.9 percent to $146.47 and RevPAR shedding 2.6 percent to $105.56.

Indicators for the hotel industry in Africa meanwhile hardly moved as occupancy nudged 0.4 percent higher to 68.1 percent while ADR hardly grew to $110.95 and RevPAR almost steady at $75.60.

Real estate advisor JLL earlier reported that aggregate supply of hotel keys in Riyadh was unchanged at 14,800 during the third quarter sans new property completions during the period, although 550 keys were expected to enter the market before the year ended.

“Upcoming hotels include branded hotels such as Hilton Riyadh King Saud University; Nobu Hotel in the heart of downtown Riyadh and the first property for the brand in the Middle East; Le Meridien Riyadh on King Abdullah Road, and the new Movenpick Riyadh opposite King Abdullah Financial District,” JLL said in its report.


Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
Updated 22 min 17 sec ago

Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
  • It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods

DUBAI: Indian customs have foiled an attempt to post gold from Dubai disguised in containers of the popular Tang drink.

After sieving the contents of the drink mix, Chennai customs officials discovered it had been mixed with gold granules, according to a statement from the Commissioner of Customs at Chennai International Airport.
Officials probing the racket found that the address of the receiver had been misused.
It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods.
Earlier this year officials at Chennai airport also nabbed two men trying to smuggle gold through the airport underneath their wigs.
The hapless pair were nabbed after their unusual hairstyles caught the attention of officials.

They were found to be carrying two gold paste packets weighing almost 700 g


UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
Updated 11 May 2021

UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
  • The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider

DUBAI: British telecommunications company Helios Towers has signed a deal with Omantel to acquire 2,890 sites for $575 million from the sultanate’s largest mobile network operator.
The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider.
The deal is expected to bring in a $59 million bump in revenues in the first full year of operations.
It also involves a $35 million plan to add 300 new build-to-suit sites over the next seven years.
“We view Oman as a very attractive and supportive market for foreign investments, with strong growth and exciting future prospects,” the UK-based company’s chief Kash Pandya said in a statement.
He said the acquisition strengthens its business through “further hard-currency revenues and diversification” in what the CEO described as the fastest growing markets in the region.
“We look forward to working with Omantel and the other MNOs over the coming years to further develop next generation mobile infrastructure solutions and services in Oman,” he added.
The partnership reflects Oman’s FDI aspirations, Omantel CEO Tala Said Al-Mamari said, adding it will create jobs and opportunities in the country.
“This move also allows the monetization of our towers at attractive valuation levels, de-lever our balance sheet, and will accelerate network development in next generation advanced technologies,” he noted.
He said it would allow Omantel’s management to focus on innovation and product development while outsourcing infrastructure management to an independent firm.
The transaction will close by the end of 2021, and the long-term partnership will last for an initial period of 15 years.


Arab world renewables growth slows in 2020

Arab world renewables growth slows in 2020
Updated 11 May 2021

Arab world renewables growth slows in 2020

Arab world renewables growth slows in 2020
  • Total renewables capacity stood at 24,224 MW last year

DUBAI: The Middle East saw a 5 percent increase in its renewable energy capacity in 2020, as the region’s push to go greener stalled.
Total renewables capacity stood at 24,224 MW last year, according to a report by the Abu Dhabi-based International Renewable Energy Agency (IRENA).
Growth in the sector slowed from the 13 percent increase in renewables capacity achieved between 2018 and 2019, as the COVID-19 pandemic took a toll on projects in the pipeline.
Still, the targets set by countries in the region could translate into a combined 80 GW of renewable capacity by 2030, IRENA said.
The global agency said the regional renewables push goes hand-in-hand with the Middle East’s ambition to diversify its economy, with projects typically bringing other economic benefits.
“The region recognizes the socio-economic benefits of renewable energy deployment, which is perceived as an opportunity for industrial diversification, new value-chain activities and technology transfer,” IRENA said.
The UAE has grown its renewable energy capacity from just 13MW in 2011 to 2,540 MW capacity in 2020. Saudi Arabia’s capacity also grew significantly over nine years – starting at only 3MW and increasing to 413 MW last year.


Indian oil refiners cut output, imports as pandemic hits demand

Indian oil refiners cut output, imports as pandemic hits demand
Updated 11 May 2021

Indian oil refiners cut output, imports as pandemic hits demand

Indian oil refiners cut output, imports as pandemic hits demand
  • IOC’s refineries at 95 percent of their capacity in late April
  • Several Indian states remain under lockdown

NEW DELHI: India’s top oil refiners are reducing processing runs and crude imports as the surging COVID-19 pandemic has cut fuel consumption, leading to higher product stockpiles at the plants, company officials told Reuters on Tuesday.
Indian Oil Corp, the country’s biggest refiner, has reduced runs to an average of between 85 percent and 88 percent of processing capacity, a company official said, adding runs could be cut further as some plants are facing problems storing refined oil products.
IOC’s refineries were operating at about 95 percent of their capacity in late April.
“We do not anticipate that our crude processing would be reduced to last year’s level of 65 percent-70 percent as inter-state vehicle movement is still there ... (the) economy is functioning,” he said.
Several states across India are under lockdown as the coronavirus crisis showed scant sign of easing on Tuesday, with a seven-day average of new cases at a record high, although the government of India, the world’s third largest oil importer and consumer, has not implemented a full lockdown.
State-run Bharat Petroleum Corp. has cut its crude imports by 1 million barrels in May and will reduce purchases by 2 million barrels in June, a company official said.
M.K. Surana, chairman of Hindustan Petroleum Corp, expects India’s fuel consumption in May to fall by 5 percent from April as the impact on driving and industrial production is not as severe as last year.
“This time it is not a full lockdown like last time,” he said.
“Sales in April was about 90 percent of March and we expect May could be about 5 percent lower than April.”


Sea and space in demand as UAE property buyer mix changes says Aldar boss

Sea and space in demand as UAE property buyer mix changes says Aldar boss
Updated 11 May 2021

Sea and space in demand as UAE property buyer mix changes says Aldar boss

Sea and space in demand as UAE property buyer mix changes says Aldar boss
  • Aldar said on Monday it had achieved property sales of above 1 billion dirhams for the third consecutive quarter

DUBAI: UAE property buyers are seeking bigger villas and seafront locations as the post-pandemic real estate market puts a premium on space, according to the CEO of Abu Dhabi’s biggest developer.

Aldar Group CEO Talal Al-Dhiyebi also revealed a rapidly changing mix of investors acquiring the developer’s units with the number of Indian expatriate and female investors rising sharply.
Aldar on Monday reported an 80 percent jump in first quarter profit from a year earlier to 544 million dirhams ($148 million), beating analyst expectations.
“The story in Abu Dhabi and Dubai post-pandemic has been very similar where people are moving to prime sea-facing properties. After the lockdowns in Europe and the sub-continent we saw a strong push of people moving in,” said Al-Dhiyebi in an interview with Bloomberg TV on Tuesday. “Our Indian buyers are now our second strongest buyers for the first time in Abu Dhabi. What is also interesting is that it is the first time we have crossed 30 percent female investors in off-plan sales since our inception. So the dynamics have changed. People are looking for opportunities. That has resulted in price increases in those prime and horizontal developments and we expect that to continue until the end of 2021.”
His remarks and the company’s underlying performance are the latest indicator of a shift in sentiment toward some segments of the UAE property market, despite a large overhang of completed and soon-to-be-completed new homes.
Aldar said on Monday it had achieved property sales of above 1 billion dirhams for the third consecutive quarter with its development business reporting a 47 percent year-on-year increase in revenues.