AccorHotels has signed a strategic management deal to develop 15 new Adagio aparthotels over the next five years in Saudi Arabia, strengthening its partnership with Saudi Arabian conglomerate Alesayi Group.
Five of the Adagio aparthotel projects have already been agreed upon and will be developed in Jeddah, Riyadh, Madinah and Jizan, with construction of the first hotel expected to start by the end of 2015.
Speaking at the signing ceremony in Jeddah, Jean-Jacques Dessors, chief operating officer of AccorHotels Mediterranean, Middle East & Africa, said: “We are delighted to be partnering once again with Alesayi Group, led by Sheikh Mohammed Omar Kassem Alesayi, who shares our vision and commitment to Saudi Arabia. We look forward to developing our Adagio brand with them and extending our long and fruitful relationship. Saudi Arabia is a key market for us in the Middle East, and we are extremely proud to have 50 hotels committed in the kingdom.”
Alesayi, CEO and President of Alesayi Group, said: “It was a natural next step for us to extend our relationship with AccorHotels, and to emphasise our commitment to bring branded hospitality facilities, offering quality we can rely on, to the hingdom. Accor’s Adagio is already number one in its class and well-known among Saudi travellers to Europe.”
This agreement follows the strategic alliance formed between the two companies for a minimum of 10 ibis hotels in Saudi Arabia, signed in October 2013. Eight ibis hotels have been already secured in key locations in cities such as Riyadh, Jeddah, Makkah, Jizan and Al Khobar, totalling over 2,000 rooms.
The Adagio aparthotel brand, which was successfully launched last year in the Middle East to complement AccorHotels’ extensive regional brand portfolio, is a European leader in the market for medium to long-term stays.
Adagio Aparthotels offer modern and spacious serviced apartments, providing the freedom of a home away from home, with the comfort of traditional midscale hotel services. This typically includes a 24/7 reception desk, lobby café and breakfast lounge, gym, dry cleaning services, space reserved for meetings, as well as a small shop carrying essentials and basic groceries.
So far, AccorHotels has opened four Adagio aparthotels in the UAE and Qatar and has 10 others under development in the region.
Dessors said: “Since it launched in the region last year, our Adagio brand is proving to be highly popular, and this announcement ensures we are keeping up with demand for more properties in Saudi Arabia.”
AccorHotels has a strong presence in Saudi Arabia with 15 properties in operation spanning a wide range of world-class hotel brands, from luxury Sofitel, upscale Pullman and Majlis Grand Mercure, to midscale Novotel, Mercure and the economy ibis.
In the pipeline, the group currently has 32 properties under development across Saudi Arabia, bringing an additional 9,000 rooms and raising AccorHotels’ portfolio closer in line with its target of 50 hotels in the kingdom. In the Middle East, AccorHotels has 125 properties in operation and under development with close to 32,000 rooms.
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