Rove Hotels, the mid-range hotel brand headquartered in the UAE, intends to employ over 1,500 staff in the GCC region to align with its ambitious expansion plans throughout the Mena region.
Presently, the brand employs approximately 800 direct staff, with plans to add 1,600 to 1,700 additional employees over the next five years, in line with regional expansion initiatives. This will elevate the total staff count to around 2,500, as explained by Paul Bridger, the Chief Operating Officer of Rove Hotels, during the Future Hospitality Summit in Abu Dhabi.
The primary focus for Rove Hotels is expanding beyond the UAE, especially into Saudi Arabia and Egypt.
Following successful years, particularly in Dubai, Rove Hotels aspires to extend its brand beyond the UAE into the GCC region, with a primary focus on the key markets of the UAE, Saudi Arabia, and Egypt, while remaining open to opportunities in other GCC nations and possibly beyond, stated Mr. Bridger. This expansion is based on the significant tourism project investments in these countries, highlighting the Middle East's robust hotel market, which has outperformed other global markets in terms of occupancy, revenue per available room (RevPar), and average room rates, as per STR, a hospitality data analytics firm.
Last year was a record-breaking year for Rove Hotels, and this year is also set to perform strongly, with forecasts indicating they will achieve a 20 percent increase over the full-year profit targets, supported by major city events in the fourth quarter, including Cop28.
The top three source markets for Rove Hotels' guests are the UAE, Saudi Arabia, and Russia. Following closely are tourists from the UK and India. Residents within the UAE represent the majority of visitors, often seeking staycations or having recently relocated to the UAE.
Rove Hotels presently operates with approximately 3,500 rooms and is aiming for 10,000 rooms in operation or under development within the next five years. The brand is also exploring opportunities in the residential property market, especially after the success of its initial two branded residence projects.
Rove Hotels is looking into mixed-use projects that include a hotel component, a branded residence component, and other elements such as an extensive food and beverage or entertainment offering under the Rove brand.
The brand's expansion strategy focuses on management opportunities rather than owning all its hotel assets. With strong brand recognition, Rove Hotels believes it's an ideal time to expand across the GCC.
According to HSBC, the Middle East's tourism sector has witnessed the strongest post-pandemic rebound in the world, achieving a "total recovery" in terms of tourist arrivals in the first quarter of 2023. The number of tourist arrivals in the Middle East during this period increased by 15 percent compared to 2019 levels.
