Exclusive | Shangri-La poised to benefit from the Middle East’s economic rebound after decades-long expansion spree
- The strong demand for high-quality hospitality in the Middle East, coupled with the positive business momentum, to drive Shangri-La’s performance
- The Middle East’s economic initiatives, such as Saudi Arabia’s so-called Vision 2030, are creating new prospects in the hospitality market
Shangri-La Asia, an Asia-centric hotel group which has been expanding its presence in the Middle East market for two decades, is now set to reap rewards from its strategic positioning by riding the region’s economic growth while exploring new business opportunities.
The strong demand for high-quality hospitality in the Middle East, coupled with the positive business momentum, is driving the group’s interest in further expansion, according to the chairman Kuok Hui Kwong.
“We’re seeing good business momentum in the Middle East. Occupancy rates and average daily rates (ADR) at our hotels there are generally back on par and even surpassing pre-Covid levels,” Kuok said in an interview with the Post.
In its latest published earnings, the group recorded a strong rebound in half-yearly revenues and profits, both of which exceeded market expectations.
Earlier this year, HSBC analysts said in a report the Middle East’s tourism sector had recorded the strongest post-pandemic rebound in the world.