Close Menu
Gulf Eye News
    Hot News
    Business

    Education Above All Foundation, Assalam Schools Celebrate Rawda Award for Excellence in Social Work

    Business

    Msheireb Properties honoured at Green World Awards, Cementing Global Sustainability Leadership

    Business

    Dukhan Bank Named “World’s Best Islamic Private Bank” at Global Finance Awards 2026

    Important Pages:
    • Privacy Policy
    • Terms & Conditions
    Facebook X (Twitter) Instagram Pinterest
    Gulf Eye News
    • Home
    • UAE

      CNTXT AI launches Munsit, the world’s most accurate Arabic voice AI as demand for AI services accelerates across the UAE

      zypl.ai closes $5.5 million bridge round at $80 million valuation

      Shorooq invests in AMI Labs as AI startup hits $3.5 billion valuation

      Asma Brings Eid Home: Curated Sharing Platters and New Dubai Chocolate Crunch Dessert

      Panasonic Expands Garment Care Solutions This Ramadan with Three New Launches

    • Politics

      Abdullah bin Zayed and Interior Secretary Discuss Shared Climate and Conservation Goals

      Daniel Pettit Re-Engages in Capital Advisory with a More Disciplined Approach

      Four Seasons Hotel London at Park Lane to Launch Newly Renovated Suites in Summer 2025: A New Era of Understated Luxury in the Heart of Mayfair

      Patron Capital Secures Major Investment From Mitsubishi Estate to Accelerate European Growth and Expand Into New Subsectors

      SHEGLAM Drops the Skin Tint + SPF That Does It All

    • Business

      Education Above All Foundation, Assalam Schools Celebrate Rawda Award for Excellence in Social Work

      Msheireb Properties honoured at Green World Awards, Cementing Global Sustainability Leadership

      Dukhan Bank Named “World’s Best Islamic Private Bank” at Global Finance Awards 2026

      CNS Preparing for 2026 Annual Partnership Conference in San Francisco

      Qatar’s Advanced Business Computing (ABC) Named 2026 Google Cloud Partner of the Year for Middle East & North Africa

    • Technology

      ElGoat raises $266,000 seed to build skill-based football gaming platform

      SBC Summit Malta to Explore the Trends Driving the Future of Casino

      SBC Summit Malta to help sportsbooks prepare for 2026 World Cup

      Panasonic Expands Garment Care Solutions This Ramadan with Three New Launches

      Faraday Future Completes Delivery of EAI Robots in Texas, Expanding “Robot & Vehicle + Education” and “Robot & Vehicle + Performance” Scenarios

    • Submit A Press Release
    Gulf Eye News
    Home » Gulf hotel owners switch to franchises in search of profits
    Business

    Gulf hotel owners switch to franchises in search of profits

    Facebook Twitter Pinterest WhatsApp LinkedIn
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp

    Hotel owners in the Gulf are increasingly choosing franchise agreements with international hotel brands over the less profitable direct management route, industry experts and analysts say. 

    This is especially true in the UAE and Saudi Arabia where the hotel industry is maturing and hotel owners know their business better, driving them to manage their own properties under franchise rather than sub-contract.

    Franchising is generally more profitable for the hotel owner and makes it easier for international brands to expand their network. 

    It is also typical of more mature markets such as the US, where the majority of hotels are run under franchise rather than managed directly by the company that owns the brand.

    “The franchise penetration rate is increasing as more owners seek cost-effective and flexible operating structures,” says Tatiana Veller, managing director of Stirling Hospitality Advisors in the UAE emirate of Ras Al Khaimah.

    “Saudi Arabia and Dubai, in particular, are experiencing a sharp rise in franchise adoption as owners grow more confident in managing hotels independently or through third-party operators.” 

    In January, for example, IHG Hotels & Resorts signed a deal with Saudi Arabia’s Al Harithy Group to rebrand a 193-key property on the Jeddah Corniche, which is due to reopen next year as The Venue, Vignette Collection Jeddah Corniche.

    The Vignette Collection is IHG’s newest luxury brand, and currently has 20 hotels operating under the name world-wide, with 35 more in the pipeline. Al Harithy Group is a real estate company based in Jeddah.

    In contrast to the more mature markets, as much as 80 percent of hotels in the wider Middle East region are managed directly, with the remainder under franchise, data from the global hospitality consultancy HVS shows. 

    International Hotels Group (IHG), for instance, the British company whose brands include Holiday Inn, InterContinental and Crowne Plaza, has a 50-50 split in Dubai between the 16 hotels.

    It has 3,800 keys under franchise and the hotels it manages directly, says Amith Khanna, who heads franchising for IHG Hotels & Resorts in India, the Middle East and Africa.

    IHG’s pipeline of franchised hotels versus directly managed hotels in Dubai is due to grow by around 40 percent over the next 12 to 18 months, Khanna says. 

    Of five hotels that IHG is due to open in the UAE in 2025, four will be franchises and only one will be managed directly, the company says.

    Overall in India, the Middle East and Africa, however, just over a quarter of keys are under franchise and the remainder are managed directly, Khanna says 

    Embracing global names

    The managed model is typical of less mature hospitality markets, as less experienced hotel owners skip doing everything independently and in-house, instead embracing global industry names and standards, such as IHG, Hilton Worldwide and Accor Group.

    This then involves the hotel operators running operations on the ground, and providing each hotel with their brand, style, quality guidelines and access to far-reaching booking systems. It is a “lot of headache” for the hospitality companies, and more expensive for owners, Khanna says.

    The upside of franchising is that the hotel owners have more say in how their hotel is operated and they pay lower fees to the brand, while in turn the brands find the  lighter franchising touch a better way to expand their network, Veller at Stirling Hospitality says. 

    The drawback is that the onus is on the owners, or a third-party manager, to run operations on the ground while still upholding the larger brand’s standards of quality.

    Along with the rise of franchising, the UAE is also experiencing a wave of managed hotels switching brands, or re-flagging, as global hospitality firms compete for prime properties while asset owners seek better contractual terms.

    Dubai Dubai news local media Middle east news News UAE UAE media UAE News UAE News today UAE newspaper
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp

    Related Posts

    Business

    Education Above All Foundation, Assalam Schools Celebrate Rawda Award for Excellence in Social Work

    Business

    Msheireb Properties honoured at Green World Awards, Cementing Global Sustainability Leadership

    Business

    Dukhan Bank Named “World’s Best Islamic Private Bank” at Global Finance Awards 2026

    Business

    CNS Preparing for 2026 Annual Partnership Conference in San Francisco

    Business

    Qatar’s Advanced Business Computing (ABC) Named 2026 Google Cloud Partner of the Year for Middle East & North Africa

    Business

    King’s College Doha Celebrates Community Spirit at Doha Rugby Football Club Chairman’s Day

    Business

    Qatar Polo Club Concludes Polo Elite Training Camp at Al Samriya to Advance the Next Generation of Players

    Business

    Harley-Davidson Doha Opens New State-of-the-Art Showroom at Barwa Commercial Avenue

    Stay In Touch
    • Facebook
    • Twitter
    Don't Miss
    Business

    Education Above All Foundation, Assalam Schools Celebrate Rawda Award for Excellence in Social Work

    Doha, Qatar, 22 April 2026 – Education Above All (EAA) Foundation, a global foundation for education and development, Assalam Schools marked the Foundation’s recognition at the inaugural Rawda Award for Excellence in Social Work in the Non-profit Organisations category for the Together Project through Assalam Schools, through celebrations held across all five Assalam Schools in Qatar. The recognition reflects the growing national importance of inclusive education in Qatar and highlights the role of Assalam Schools in expanding inclusive, flexible, and high-quality learning pathways for students whose educational journeys may be affec

    Msheireb Properties honoured at Green World Awards, Cementing Global Sustainability Leadership

    Dukhan Bank Named “World’s Best Islamic Private Bank” at Global Finance Awards 2026

    CNS Preparing for 2026 Annual Partnership Conference in San Francisco

    Qatar’s Advanced Business Computing (ABC) Named 2026 Google Cloud Partner of the Year for Middle East & North Africa

    Our Picks
    Business

    Education Above All Foundation, Assalam Schools Celebrate Rawda Award for Excellence in Social Work

    Business

    Msheireb Properties honoured at Green World Awards, Cementing Global Sustainability Leadership

    Business

    Dukhan Bank Named “World’s Best Islamic Private Bank” at Global Finance Awards 2026

    Business

    CNS Preparing for 2026 Annual Partnership Conference in San Francisco

    Business

    Qatar’s Advanced Business Computing (ABC) Named 2026 Google Cloud Partner of the Year for Middle East & North Africa

    Step into the realm of news like never before with Gulf Eye News. Delve into a world of breaking headlines, in-depth analysis, and captivating stories that define the pulse of the Gulf region and beyond. As we embark on this journey together, your feedback, inquiries, and press releases are invaluable to us.

    Facebook X (Twitter)
    Categories
    • Business (840)
    • Politics (25)
    • Technology (98)
    • UAE (347)
    Our Picks
    Business

    ADIB participates in the “Midday Break” initiative in collaboration with the Ministry of Human Resources and Emiratisation

    Business

    Dexlevo Successfully Concludes GOURI Symposium at AMWC 2025

    © 2026 Gulf Eye News.
    • Home
    • Privacy Policy
    • Terms & Conditions

    Type above and press Enter to search. Press Esc to cancel.