BAHRAIN’S five-star hotel pioneer is pressing ahead with expansion plans, which will also see the group make its debut in the UAE with a luxury property in Dubai. Gulf Hotels Group’s chief executive and board member Aqeel Raees talks to TTN about its ambitions, business prospects and more…

You hinted at the possibility of expansion at last year’s World Travel Market. Do you have any updates for us?

We’ve purchased a plot of land in the Business Bay area of Dubai. We are now in the initial stage of selecting a suitable design consultant. As we have an ideal location in Bahrain, we spent a lot of time in getting the location right for Dubai as well. The new hotel will be located directly on the waterfront – we’re quite keen on the setting.

What kind of a hotel will this be?

We expect the Dubai hotel to be a five-star property with some 220 to 240 rooms, three outlets, banquet and meeting facilities. It should hopefully be ready by early 2017.

Why Dubai? Is it because of Expo 2020?

Our plans to come to Dubai were mainly driven by the fact that it is the closest to our headquarters in Bahrain and this was, therefore, more of a natural progression for the group rather than anything else. The decision to expand into Dubai was taken much before Expo 2020 was even announced. Having said that, the fact that Dubai is moving in the right direction and has won its bid to hold the 2020 Expo is a huge plus. I would like to take this opportunity and congratulate Dubai on its bid. It is certainly a great thing for Dubai and I’m certain this will not only benefit the emirate but also bring wealth to the region at large.

Can you look back into the past and share how you’re coping with the competition?

The Gulf Hotel Bahrain was established in the heart of the kingdom in 1969. When we opened, there was no other five-star hotel in sight and even hotel chains had not stepped into the Bahraini market. We will be celebrating our 45th anniversary this year.

Over time, Hilton, Holiday Inn, InterContinental, Sheraton, Diplomat, Ritz-Carlton, Sofitel, Kempinski and others came in. Despite a rise in the number of new properties around us, we have maintained a leading position in the kingdom.

Our property has constantly grown and updated itself over the years. We kept on adding to it, bit-by-bit, including, for example, the largest convention centre in a hotel in the country. We now have hotel apartments, an office block, and a great big car park. We enjoy a fair share of the market and sometimes exceed that.

When I joined the hotel back in 1974, the Gulf Hotel Bahrain already enjoyed a great reputation for its food. No other hotel on the island could match our number of restaurants. We are now in the process of launching Rasoi, a Michelin-star Indian restaurant by Vineet Bhatia, scheduled to open after Ramadan this year. We are also renovating our south wing, the public area, the hotel apartments – a lot of improvements are on the way.

We are here to stay. Competition is natural and you always want competition because it helps you strive to improve and develop your product. 

Gulf Hotels Group has appointed Rahim Abu Omar as the new general manager of The Gulf Hotel and Gulf Convention Centre. What does he bring to the table?

Omar has a wealth of experience in the region and as we are planning to enter Dubai, his knowledge of the market will help us do better. He works hard to grow business for the Gulf Hotel, compete with newcomers in the market and build on our business.

Gulf Hotels Group has signed an agreement for the construction of a $8-million spa complex at the hotel. Tell us more.

The new two-storey 3,100 sq m spa will have separate floors for males and females and feature hydro pools, a hammam, sauna, a steam room, experience showers, treatment rooms and relaxation areas on both floors. The spa is under construction and should be ready in early 2015.

The hotel has been heavily catering to meetings, incentives, conferences and exhibitions (Mice) at its Gulf Convention Centre. Any plans of expansion there?

We are adding more meeting rooms that are small, intimate and comfortable. At this stage, we have no plans of extending. There’s definitely something in our five or ten year strategic plans, but that’s too early to discuss now.

We’re also working on developing serviced apartments outside the area of the hotel which should take about two years to be ready. We plan to launch, in the third quarter of this year, the Gulf Amwaj, fully-serviced apartment buildings in Amwaj Island. The Gulf Hotel now caters to corporate customers who are local, regional and international.

Have the political problems in Bahrain cast a shadow over business?

Every country has its share of ups and downs. In spite of political problems, Bahrain’s hotels are always full – nothing has stopped people from coming here. The way things are exaggerated in the media, people will think Bahrain is a war zone, which it is not. Bad publicity, of course, can deter people from travelling but I was in Beirut recently and it was business as usual!

2013 has been a great year for us in Bahrain and in 2014, we expect more growth. The future of Bahrain looks good as several brands are opening properties and placing their faith in the kingdom with large investments.

When there is more supply than demand, the market gets saturated and the average room rate comes under tremendous pressure. This is a risk we have to take – if you want to attract tourists you must first have the infrastructure in place. You cannot wait for tourists to come and then start opening hotels. You have to make the destination attractive to entice people so that they will want to come.

Dubai is a great example of a place where development has not stopped. This is what is happening in Bahrain now. We suffered a setback due to the political crisis but there is enough fish in the sea for everyone. Bahrain has a lot to offer.

By Rashi Sen