Laurent A. Voivenel, CEO of HMH – Hospitality Management Holdings opened the second day of 7th annual Infrastructure & Property Development MEA Summit in Dubai with a special presentation on the rapidly evolving regional hospitality landscape. Speaking at the premium forum that was attended by leading project consultants and regional property developers and infrastructure authorities, Laurent highlighted the key demand drivers for budget hotels in the region.
Laurent stressed, “Low cost carriers (LCC) have had a dramatic impact on tourism industry with Middle East LCCs recording the third highest rise in seats globally. Apart from boosting overall numbers, budget airlines have also opened lesser-known destinations, bringing in more independent and leisure travellers as well as families. However, growth in low-cost carriers has been much faster than those of budget hotels. Therefore,budget hotels need to catch up fast, as low-cost airlines are yet to reach their potential in the region.
Talking about the potential for the low-cost, high-quality accommodation, Laurent commented, “Travellers today are looking for value for money.The region needs more quality mid-market hotels, basically the right product at the right price, in order to widen its appeal to growing middle class worldwide. Given the staggering demand we see massive potential for ECOS Hotels that is a ‘no frills’ B & B brand tying together a unique economical and ecological concept. Setting a new benchmark for budget hotels, it is a smart choice for investors offering strong investment opportunity because of lower construction and operating costs and quick and high return on investment.