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Destination Bahrain: Catering to Generations X & Y | Hotels | Colliers International2
FY 2013 FY 2014 FY 2015 ForecastFY 2016
SUPPLY
A total of 691 keys opened in 2015, with the newest hotels being
Four Seasons Bahrain Bay and Ibis Seef Manama. Looking forward,
five-star hotel openings will dominate with notable openings such as
the Downtown Rotana (249 keys) and the One & Only (150 keys).
Supply is expected to grow at a compound annual rate of 11%, with
Al Seef and Amwaj Island expecting an entry of more than 1,100
keys in the next three to five years.
MARKET PERFORMANCE
Bahrain is predominantly a weekend leisure destination, with the
leisure demand from Saudi Arabia and other neighbouring source
markets, representing approximately 60% of overall hospitality
demand. The market saw subdued corporate demand in 2015 due to
declining oil prices and slowing economic activity. However, leisure
demand growth in Bahrain is expected to remain healthy as the
market continues to benefit from its proximity to Saudi Arabia, its
retail and entertainment offering, combined with the planned
delivery of large tourism developments.
OUTLOOK
As the market becomes saturated with traditional five-star
hotels, opportunities arise in the development of lifestyle hotels,
targeting the younger generations X & Y.
These generations are less focused on luxury amenities and
large spaces, but tend to be more price-sensitive and would
rather stay in a uniquely designed hotel with smart functionality
and trendy food and beverage offerings.
KPIs | YOY % CHANGE
OCC%
ADR
+1% +17% -9%-3%
Occ 50%
+2%USD $ 214
+1% -1% +6%
PROJECTED QUALITY HOSPITALITY
SUPPLY │NO. OF KEYS
Source: STR Global, Colliers International
OPPORTUNITIES
RevPAR
Source: Colliers International
Note: Accounts for adjustments in opening delays
Lifestyle Hotels
Efficient design, but trendy
Opportunity to attract younger
generation and create a
destination hotel.
With competition due to
increase, investors should
consider simple efficient design
with unique draw factors.
Focus on trendy food and
beverage concepts becoming
a draw factor for the hotel.
5,4156,106
7,2947,814
9,045
2014 2015 2016(f) 2017(f) 2018(f)
Trendy F&B Offers
Destination Bahrain: Catering to Generations X & Y | Hotels | Colliers International3
Generations X & YLIFESTYLE HOTELS - CONCEPT
The lifestyle concept has gained popularity over the past few years,
especially in more mature markets such as Europe and USA.
International operators have in past years launched a myriad of new
brands in the lifestyle category, such as W Hotels, Aloft, Indigo,
Andaz by Hyatt, Venu, Mama Shelter and ME by Melia.
These hotels tend to include a lobby with an open floor layout,
Play
atmosphere, while the interiors of guest rooms are equipped with the
latest technology and modern design elements. Lifestyle hotels are
typically located in city centers, and are known to be social hotspots
for both in-house guests and local residents.
LIFESTYLE HOTELS FOR GENERATION Y
Considering that the tourists stem from the
GCC region, opportunity lies in developing lifestyle hotel product
capable of catering to the needs of families, and young travelers.
MIDSCALE HOTELS FOR GENERATION X
Currently there are over 500 keys of hospitality supply which are
attached to major retail centres, most of which are high-end, large
internationally branded hotels or serviced apartments. Nonetheless,
these properties tend to perform better than the overall market,
maintaining average occupancies of 80 85%. This is attributed to
their connectivity to a retail component, a draw factor for GCC
families, as well as business guests seeking proximity to restaurants.
This highlights an opportunity to develop midscale hotel properties
connected to retail developments, which are able to sustain rates
under-cutting the five-star hotel rates.
Source: Colliers International
HOTEL COMPARISON
BAHRAIN GUEST SEGMENTATION (2014)
Source: Colliers International
GENERATION X & Y PROFILE
57%
6%
9%
28% KSA
GCC Excl. KSA
Other Arab
Others
Source: Bahrain Economic Development Board; Central Informatics Organization
Generation XGeneration Y
Ages: 35 - 54
31
Needs & Preferences:
atmospheres
for families
catered to their
children
& Entertainment
operations.
- 34
43
Needs & Preferences:
-tech in Rooms
consciousness
to online
platforms
locations
operations.
• Wide range of F&B outlets.
• Signature restaurants.
• Hotel size usually exceeds 150 rooms.
• Ample meeting and banqueting space.
• Design centric.
• Located in heart of the city.
• Social hotspot.
• Some meeting facilities.
• Guest rooms combine work and play environments.
• Typically with brand affiliation.
• Design centric.
• Less than 100 rooms.
• Intimate and private layout.
• Usually 1 unique restaurant.
• Typically no brand affiliation.
Typical
Hotels
Boutique
Hotels
Lifestyle
Hotels
Destination Bahrain: Catering to Generations X & Y | Hotels | Colliers International4
Upcoming Developments in Bahrain
King Hamad
Causeway
• A second causeway connecting the kingdoms of
Bahrain and Saudi Arabia featuring a rail link
spanning 87 km.
• The project cost is estimated at USD 3 billion and
is expected to be completed within the next 10
years.
Project Overview & Features
Dilmunia
Masterplan
• Developer: Ithmar Development Company,
• Location: Off the coast of the Galali district
• featuring a variety of lifestyle residential,
commercial, medical, and leisure components.
• Residential products range from studios to
waterside townhouse and high-end villas.
The Avenues
Bahrain
• Size: 265,000 sqm
• Developer: Private local investors, MH Alshaya
and Mabanee Corporation
• Expected Opening: to the public during 2016
• Featuring a variety of dining, shopping, fitness and
entertainment facilities.
Impacts
The proposed causeway is
expected to reduce the current
heavily congested King Fahad
bridge connecting the two
countries and be able to support
additional traffic, which in turn is
economy.
Source: Colliers International
Examples of Upcoming Future Projects Features & Impacts
Marassi Al Bahrain
(Part of Diyar Al
Muharraq Project)
• Developer: Joint venture between Eagle Hills and
Diyar Al Muharraq
• Phase 1 is expected to include: 178,000 sqm mall,
2 apartment towers, and more than 500
hospitality keys operated by Emaar Hospitality.
• Following phases will include: cruise liner
terminal, traditional souq, and an 80,000 sqm
business and technology center.
These developments are
expected to attract additional
demand to the country, while
reducing the congestion found in
Bahrain's current leisure and
retail destinations during
weekends and Eid holidays.
Appeal to regional tourists will
increase, especially families
from Saudi Arabia.
Further expansion of leisure and
retail product offerings such as
these are expected to attract
additional demand from existing
source markets, and cater to
demand from local residents.
The Kingdom of Bahrain holds a large number of development projects which are currently under way, and supported by
the GCC Development Fund, government holding companies, and the private sector. These projects vary in typology,
ranging from simple hotel developments to full-fledged master plans which include a variety of real estate components.
projects is currently USD 32 billion. The exhibit below highlights a selection of key upcoming developments.
Amlak
Durrat Al BahrainThe Avenues
Delmunia
Diyar
Wyndham
JW Marriott
The One & Only
VIDA Hotel & ResidencesThe Address Hotel & Residences
Fairmont Hotels & Resorts
Rotana
N
E
S
W
Upcoming Hotels
Upcoming Masterplans
Amwaj
Islands
Anantara Resort
Marina Club
Bilaj Al Jazayer
Destination Bahrain: Catering to Generations X & Y | Hotels | Colliers International
Data for January 2016
Source: Olery; Colliers International, 2016
5
GUEST EXPERIENCE INDEX (GEI) - SCORE MAPPING - BY GCC MARKETS
MANAMA RATING - BY TYPE OF GUEST GCC competitive landscape:
line with that of neighbouring markets.
Type of Property: -star hotels achieved the
highest GEI rating of 83. The lower score in the 3-star
segment shows a gap of quality midscale hotels.
Type of Guest: Guests Visiting Friends and Relatives
(VFR) were most satisfied, with a rating of 76.9. This is
followed by Business guests likely due to the abundant
hotel options in the city centre near major commercial
hubs. The comparably lower satisfaction from families
highlights potential opportunities to develop products
with a greater focus on this segment, by providing more
leisure oriented facilities and food & beverage concepts.
MANAMA GEI - BY TYPE OF PROPERTY MANAMA GEI - TOP 10 BRANDS
Source: Olery; Colliers International, 2016Source: Olery; Colliers International, 2016
Source: Olery; Colliers International, 2016
The Guest Experience Index (GEI)
are based on online guest reviews and represent a weighted score on a scale from 1 to 100.
Score out of 100
75Manama
75Ras Al
Khaimah
78Dubai
75Muscat
82Abu Dhabi
78Doha74
Riyadh
74Kuwait
76Al Khobar
N
E
S
W
72.5
73.3
73.8
75.6
76.9
70.0 72.0 74.0 76.0 78.0
Families
Couples
Solo
Business
Friends
Rating out of 100
6773
83
76
40
50
60
70
80
90
Hotel - 3
stars
Hotel - 4
stars
Hotel - 5
stars
Hotel
Apartments
Score
out of
100
Rank Brand GEI
1 Four Seasons 92.4
2 Fraser Suites 89.6
3 InterContinental 87.6
4 Marriott Executive Apartments 85.3
5 Moevenpick 86.9
6 Residence Inn 87.4
7 Ritz-Carlton 87.9
8 Sofitel 88.4
9 Swiss-Belhotel 85.6
10 Westin 84.5
Destination Bahrain: Catering to Generations X & Y | Hotels | Colliers International6
Colliers International Hotels
Colliers International Hotels division is a global network of specialist consultants in hotel, resort,
marina, golf, leisure an spa sectors, dedicated to providing strategic advisory services to owners,
developers and government institutions to extract best values from projects and assets. The
foundation of our service is the hands-on experience of our team combined with the intelligence
and resources of global practice. Through effective management of the hospitality process,
Colliers delivers tangible financial benefits to clients. With offices in Dubai, Abu Dhabi, Jeddah,
Riyadh and Cairo, Colliers International Hotels combines global expertise with local market
knowledge.
SERVICES AT A GLANCE
The team can advise throughout the key phases and lifecycle of projects
• Destination / Tourism / Resort / Brand Strategy
• Market and Financial Feasibility Study
• Development Consultancy & Highest and Best Use Analysis
• Operator Search, Selection and Contract Negotiation
• Pre-Opening Budget Analysis and Operational Business Plan
• Owner Representative / Asset Management / Lenders Asset Monitoring
• Site and Asset Investment Sale and Acquisition/Due Diligence
• RICS Valuations for Finance Purposes and IPOs
Our hotels team in the MENA region:
$9 39,200 8,880billion keys Hotel keys
investment value of valued under asset management
projects advised
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 15,800 professionals operating out of more than 502 offices in 67 countries. Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. In MENA Colliers International has provided leading advisory services through its regional offices since 1996. Colliers International currently has four corporate offices in the region located in Dubai, Abu Dhabi, Riyadh and Jeddah.
colliers.com
Colliers International, 2015
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
$2.3billion in
annual revenue
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and staff
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Colliers International | MENA Region
Dubai | United Arab Emirates
+971 4 453 7400
For further information,
please contact:
Filippo Sona
Director | Head of Hotels | MENA Region
Main +971 4 453 7400
Mobile +971 55 899 6102
filippo.sona@colliers.com
Selim El Zein
Associate Director | Hotels | MENA Region
Main +971 4 453 7400
Mobile +971 55 899 6103
selim.elzein@colliers.com
Ian Albert
Regional Director | MENA Region
Main +971 4 453 7400
Mobile +971 55 899 6070
ian.albert@colliers.com
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