ADNH to double assets in three years
Abu Dhabi, May 3, 2010
Abu Dhabi National Hotels (ADNH) is aiming at doubling its assets in the next three years, its chief executive said on Monday. This will include not only the hotels side of business, but also its catering, transport and tours units.
'Our agenda is to double assets of the company in three to five years and we see that happening in three years,' Richard Riley told reporters on the sidelines of a hotel investment conference.
The 35-year old company started expanding its operations two years ago as part of Abu Dhabi's 2030 plan, which includes transforming the emirate into a tourism hub.
ADNH will deliver 1,500 rooms to the Abu Dhabi market in the next two years, Riley said.
In February the company received a 1.5 billion dirham ($408.5 million) loan from four banks to finance projects in Abu Dhabi, the capital of the United Arab Emirates.
The company has three hotel properties under construction in the emirate, with one to be managed under the Park Hyatt brand and two yet to be signed up with operators.
ADNH has a total of around 16 hotels under its portfolio, including assets it owns and others it operates, ranging from luxury to budget brands.
The company is building a hotel at a cost of 1 billion dirhams ($272.3 million) on Saadiyat island, site of planned branches of the Louvre and Guggenheim museums.
Riley said the group saw a 10 percent drop in occupancies in the first quarter of the year, due to an increase in supply to the market, but still maintained levels of 80 percent. - Reuters