Accor downsizing in Oman

Accor is terminating its management contract for the Ruwi Novotel and the Mercure Al Falaj hotels after managing them for more than 15 years.

  • E-Mail
By  Shilpa Mathai Published  August 17, 2003

French hotel company Accor is terminating its management
contract for the Ruwi Novotel and the Mercure Al Falaj hotels in Muscat after managing them for more than 15 years. The two hotels will be re-flagged from the beginning of September when the owning company, Oman National Hotels Company, ONHC, takes over their management.

The firm blamed a “softer” market for its decision not to renew its management contract for the two hotels when it expires at the end of this month. “The market has changed considerably since we first went into Oman and we feel the products we had are not relevant to the current market mix. The market has been softening over the last three years and does not justify any refurbishment expenditure,” said Christophe Landais, Accor’s regional director for the Middle East. “The ONHC also feels it does not need an international brand to manage what has become a predominantly local guest mix,” he added.

From September, Accor will be left to manage a sole property in
Oman, the Seeb Novotel, down from the four it was managing in 2001. It gave up managing the Sur Mercure hotel last year.

“Changes in the market also necessitate re-branding properties,” said
Landais. “The Sofitel in Doha will be re-branded as a Mercure before the end of the year. We have opened the Novotel in Bahrain in May this year – we deliberately chose the Novotel brand for Bahrain so as to stay out of the five star cartel. We are looking at expanding in Yemen, developing our third property in Aden, and Kuwait.”

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code