Saudi firms sign deal for ‘Studio M’ hotel in Riyadh
Riyadh, August 20, 2014
Saudi Arabia's Waseel Properties and Raseel Properties have signed a deal with Millennium & Copthorne Hotels Middle East and Africa (MEA) to develop a 145-key hotel in Riyadh.
Millennium & Copthorne Hotels will launch its first Studio M brand in the Middle East with the hotel, to be located on King Fahd Road, said a statement.
It is due to open in the second quarter of next year.
Ali Hamad Lakhraim Alzaabi, president and CEO of Millennium & Copthorne Hotels, said: “In Waseel, Millennium & Copthorne has found a like-minded partner that recognises the potential return of developing and operating a stylish and innovative budget brand such as Studio M.”
While the Studio M brand aims to address the growing and relatively untapped ‘Generation Y’ regional market segment, it will also appeal to consumers of all ages who are “young at heart” and appreciate hip and contemporary design, he said.
“Studio M is a very distinctive brand that addresses an under-represented segment of the regional market. In Riyadh, budget hotels account for just 10 per cent of existing supply and only 1,000 rooms in the pipeline, compared to 7,000 for the upscale to luxury segments. We see tremendous potential for a contemporary budget brand, given that this existing market segment is too often represented by independent properties of variable quality,” said Alzaabi.
The modern day concept, designed by world-renowned Italian architect and interior designer Piero Lissoni, has been created to appeal to smart and trendy corporate and leisure travellers, offering stylish and tech-driven functionality.
Studio M Hotel, Riyadh by Millennium” features contemporary signature design, dedicated meeting facilities and a new all-day dining concept called ‘At the M’. The development will also include a swimming pool, gym, pool deck as well as a number of retail outlets.
The hotels group has also identified a number of other prime locations in Abu Dhabi, Al Khobar and Jeddah for the innovative budget brand and is already in negotiations for further sites in Doha and Dubai, both of which are at an advanced stage, completing the line-up for up to six properties signed and or launched by 2017.
“Considering the current investor interest, we estimate that the brand will develop beyond these initial sites to as many as 20 locations within the next five years and we are looking forward to attracting young, upwardly mobile, tech-savvy travellers to this brand proposition,” added Alzaabi. - TradeArabia News Service