Table of Contents. The GCC Hospitality Sector 2 The Oman Hospitality Industry 2 Major Hotel Projects in Oman 3 The Food Industry in Oman 5

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2 Table of Contents The GCC Hospitality Sector 2 The Oman Hospitality Industry 2 Major Hotel Projects in Oman 3 The Food Industry in Oman 5 News on the Food & Hospitality Industries in Oman Oman to get 2,000 hotel rooms in Karama Hypermarket to open fifth outlet 9 Oman hilltop resort set to open in December 9 Sundus Investment Projects to develop 4-star hotel in Muscat 10 Muriya s hotel portfolio to grow to 14 properties 11 Omran s role in sustainable tourism lauded 12 Barr Al Jissah Resort unveils two new restaurants 13 New tourism projects raising Oman s profile 14 Best Western to launch new hotel 17 Oman tourism sector sees rapid growth 17 Oman could lead ME hotel room growth 18 Bright future for property investment in Oman 19 New luxury property development designated ITC 20 Dubai s Auris to open 4-star hotel in Sohar 21 Mars Hypermarket Barka is group s seventh in Oman 21 Muriya soft-launches luxurious Juweira Boutique Hotel 22 New hotel chains to give tourism sector shot in arm 23 Oman will add 2,000 hotel rooms in Sifawy Hotel, Jabal Al Sifah Marina set to boost tourism 25 Luxury resort to come up in Salalah 26 New cafe-restaurant set to open at The Wave, Muscat 26 IHG and Muscat Golf Course project sign deal 27 Food & Hospitality Oman 2013 I Market Report I 1

3 The GCC Hospitality Sector The hospitality sector in GCC countries is poised for healthy growth as a result of favourable economic conditions and infrastructure development. Next to Asia, it is seen recording the highest growth of any emerging markets region. The GCC economies are now recognized, not only as exporters of oil and gas, but as major investment destinations, owing to the booming tourism and hospitality sector and massive infrastructure projects. These are driving the growth of hotel markets at all levels. The prospects for growth in both the tourism and hospitality sector are positive, with a supply of a large number of rooms expected to enter the market over the next few years. The hotel industry in the region is seen to grow at an annual rate of 8.1% to US$ 28.3 billion by 2016 compared to US$ 19.2 billion in (Alpen Capital, Hospitality Report, April 2012) The World Travel & Tourism Council (WTTC) foresees tourist arrivals to the region increasing from 41 million in 2010 to 64 million in The Oman Hospitality Industry: Experiencing Significant Growth Oman s tourism industry is positioned for long-term growth and is increasingly taking up most of the Sultanate s annual GDP share. In its Five-Year Plan ( ), the government focuses on intensifying tourism promotion programs and plans that include the construction of billiondollar hotel properties, tourist resorts, hospitality schools, and developing the country s infrastructure. According to statistics provided by the World Travel and Tourism Council, the percentage contribution of travel and tourism to GDP is expected to increase from 6.7 per cent in 2009 to 9.9 per cent by In line with the government s plan to make tourism a key driver of the economy, it aims to attract 12 million visitors yearly by 2020 a significant increase from the estimated 2.5 million visitors in Projects are expected to raise GDP by 20 per cent. A number of tourism-related property development projects (and which are presently at various stages of construction) are being implemented. A considerable percentage of this are fourand five-star hotels and resorts, integrated tourism complexes (ITCs), road systems, airports, seaports and industrial zones. This will give much opportunity to local and international suppliers, distributors and manufacturers of hospitality-related services, equipment and facilities. There will be a 38.7% increase in tourist arrivals to Oman, to 1.45 million, and a near doubling of tourism spending, to US$2.96 billion, by end (Cluttons, 2012) Food & Hospitality Oman 2013 I Market Report I 2

4 Some of the Major Hotel Projects in Oman PROJECT PROJECT DESCRIPTION PROJECT COST Muscat International Airport The Wave Muscat Muriya Tourism Development: Jebel Sifa Complex Al Sodah Island, Salalah Salam Yitti Resort Addition of a new 460-meter long, 200-meter wide and 44-meter high main building with a four-star 90- bed capacity hotel, a 101-meter high control tower, and traffic control management center and a second runway that will enable handling of 200,000 tonnes of cargo and 12 million passengers annually An integrated tourism complex with a total area of 2.5 million square meters that includes four hotels, a golf course, a 400-berth marina, commercial and residential spaces, retail facilities, restaurants, and coffee shops. Construction of 18 apartments and 63 villas Phase 1: Construction of five hotels, including one boutique hotel A five-star beach resort hotel with 300 rooms, a deluxe beach hotel and spa with 150 rooms, a luxury mountain hotel with 150 rooms; an 18-hole golf course; a 150-berth marina; a 25,000-square foot of retail space in a souk; and an ecocenter US$ 3.5 billion USD 2.5 billion USD 2.5 billion Food & Hospitality Oman 2013 I Market Report I 3

5 Omran Projects: Al Jabal al Akhdar Hotel City Hotel Duqm Hotel Project Fort Hotel A five-star resort hotel with 80 suite rooms, spa suites and Cliffside restaurant and a pool A five-star resort hotel with 250 rooms, a five-star hotel with 350 rooms and 100 service apartments and A four-star business hotel with 230 rooms, a business center, and conference facilities A five-star boutique hotel with 120 guest suites, and restaurant and spa facility US$ 1 billion Convention & Exhibition Centre Design and construction of a convention centre with capacity of 5,500-6,000 seats, a 30,000- square metre exhibition centre/multi-user sports centre, including several hotels in 5, 4 and 3-star categories, 20 meeting rooms (each with 250 seating capacity), a business park covering approximately 70,000 square metres, restaurants, cafes, press centre, shopping mall (125,000 square metres) and recreation facilities. USD 1 billion Muscat Hills Golf & Country Club Addition of a world-class clubhouse and hotel USD 110 million Food & Hospitality Oman 2013 I Market Report I 4

6 The Food Industry in Oman Oman is emerging as one of the fastest growing markets for international suppliers to the foodservice industry. The increased purchasing power of the Omani population has resulted in the growth of hypermarkets in the last few years. Currently, regional and international chains have been entering the market, while Muscat-based chains have been expanding to other parts of the country. Agriculture, livestock and fisheries are among the oldest and most important sectors of Oman s economy. They play a vital part in feeding the population, providing employment for a large number of Omanis and helping to boost the country's GDP. The fisheries industry has been the primary non-oil export earner in the Sultanate. With a coastline over 1,700 kilometres long, Oman is the largest producer of fresh fish in the region. Under the government s 8 th Five-Year Economic Development Plan ( ), it plans to invest about US$ 520 million in a variety of agriculture and fisheriesrelated infrastructure projects and upgrades in existing facilities. This will do much to boost national export revenues. In recent years, the government has been focusing on the modernization and development of the agricultural and fisheries sector. While the Sultanate has produced a variety of crops and other agricultural products for many years, recent public and private investments have the potential to turn the sector into a significant economic contributor and boost national security. Muttrah Fish Market Carrefour Supermarket Lulu Hypermarket Food & Hospitality Oman 2013 I Market Report I 5

7 NEWS ON THE FOOD & HOSPITALITY INDUSTRIES IN OMAN Food & Hospitality Oman 2013 I Market Report I 6

8 Oman to get 2,000 hotel rooms in 2013 Source: Times of Oman, 07 April 2013 Dubai: Global hospitality chain Starwood Hotels and Resorts Worldwide has announced that it will open three new fivestar hotels in Oman over the next five years. As many as 2,000 hotel rooms are expected to be added to the existing stock in Oman this year alone. Addressing a press conference held here, Frits van Paasschen, president and CEO of Starwood Hotels and Resorts, said, "All three new properties, when open, will offer 700 rooms in total. The first to come up will be the 'W' hotel, the undisputed leader of contemporary lifestyle brands, opening in There are more than 50 'W' hotels across the world. The other two hotels are the Element Hotel, an environmentfriendly brand, and Westin, an upscale hotel chain. Since Oman is an important market for us, we wish to explore more opportunities here." At the moment, the only hotel managed by the group is the Sheraton, which is currently closed for renovation. Strong pipeline for growth On their Gulf Cooperation Council (GCC) plans, Frits van Paasschen, who completed Starwood's month-long relocation to Dubai, stated, "We have a very strong pipeline for growth in the GCC. Currently, we operate 37 properties in the GCC, offering 10,775 rooms. Over the next five years, we expect to add 22 hotels, offering 7,217 rooms. Of these 22 hotels, the United Arab Emirates (UAE) will receive the largest chunk, with 12 hotels, followed by Saudi Arabia, with six hotels." While relocating the group to Dubai, van Paasschen and members of Starwood Hotels and Resorts' Senior Leadership Team met with over 3,000 associates, conducted nearly 50 owner meetings, and visited all 14 Starwood hotels in Dubai, which is the company's second-largest hotel market, behind only New York City. Starwood also has plans to increase its Middle East and Africa (MEA) portfolio by more than 60 per cent, with nearly 50 new hotels set to open over the next five years, adding more than 14,000 guest rooms to the region and creating thousands of local employment opportunities. With 82 operating hotels and more than 20 hotels expected to open by the end of 2015, Starwood is on track to reach a milestone of 100 hotels across the Middle East and Africa. "With over 80 per cent of Starwood's pipeline coming from rapidly growing markets, it's important for us to remain at the forefront of new travel demands and changing travel patterns," remarked Simon Turner, president of Global Development at Starwood Hotels & Resorts. Food & Hospitality Oman 2013 I Market Report I 7

9 "The Middle East is experiencing rapid economic growth, a burgeoning middle class, and ever-greater global connectivity, and the Dubai relocation will help us to expand all our brands across this important region." The company also announced a comprehensive renovation strategy for its Le Méridien brand, in which Starwood and its ownership groups will invest more than $200 million for the renovation of 13 hotels and resorts in the MEA region over the next three years. Starwood Hotels and Resorts manages more than 1,000 properties in more than 100 countries and territories, with nine distinctive brands: St. Regis, The Luxury Collection, W Hotels, Westin, Sheraton, Four Points by Sheraton, Le Méridien, Aloft and Element, and Starwood Vacation Ownership, an operator of high-end vacation interval ownership resorts. The proposed Oman Convention and Exhibition Centre Food & Hospitality Oman 2013 I Market Report I 8

10 Karama Hypermarket to open fifth outlet Source: Muscat Daily, 24 March 2013 Adding to its strong presence in the sultanate, Karama Hypermarket will be opening its fifth outlet in May. Our motto is to offer the best service, quality products and consistency in stocks, as well as ensuring availability in bulk round the clock. It is this objective that has motivated us to open our new 5,000sq m hypermarket in the wilayat of Bahla, said Harish Yunesh, group general manager, Karama Hypermarket. He said, We are committed to increase our overall retail space from the current 35,000sq m to 50,000sq m by the end of The management at Karama Hypermarket is also planning to begin work on projects in Duqm and Seeb. The project reports are ready, and work on the centres will begin shortly, Yunesh said. Further, the hypermarket chain has also decided to establish a warehouse to stock products in bulk. As we grow, the most important aspect is to open a centralised warehouse in Oman. This will come up shortly, and it will help us extend our support to bulk buyers and ensure constant flow of stocks to all Karama branches in the country, said Yunesh. Meanwhile, Karama is all set to launch Lucky Monday offers at the Karama Kids Kontest event which will be held on March 25 and 26 at 6pm. A painting competition and fashion show will be organised for children under ten years of age at the Karama Hypermarket in Ruwi. During Lucky Monday promotions, different products will be sold at unbelievably discounted rates, while various offers will also be made available. Forms for the children s contest are available in Karama Hypermarket, Ruwi, and the last date to apply is Monday by 1pm. There will also be consolation prizes for participating children, Yunesh said. He added, Karama has been successful in reaching out to customers with the newest technologies, electronics, households and grocery, and we will continue to serve as we have for the last 20 years. Oman hilltop resort set to open in Dec Source: Hotelier Middle East.com, 24 February 2013 A new luxury hilltop resort in Oman is set to open in December with construction currently ahead of schedule, officials have said. Omran, the Sultanate's tourism-related development, hospitality management and investment company, said the Alila Jabal Akhdar Resort project has passed the 60 percent construction mark. Set to open its doors in December 2013, the 2,000 metre-high project is currently eight percent ahead of schedule, said Nasser Al Maqbali, chief operating officer at Omran. He said that the Alila Food & Hospitality Oman 2013 I Market Report I 9

11 Jabal Akhdar Resort is set to become a "pinnacle in the sultanate's budding tourism sector". Commenting on the progress, Al Maqbali said: "The planned construction of the Alila Jabal Akhdar Resort for this period was to complete percent. Today, we have successfully passed this target thanks to the efforts and dedication of our staff and contractors." Sundus Investment Projects to develop 4-star hotel in Muscat Source: Muscat Daily, 16 February 2013 Sundus Investments Projects LLC, pioneers in mixeduse development in the Middle East, on Wedneday announced that it has signed a memorandum of understanding (MoU) with Rotana Hotel Management Co to develop a four-star hospitality complex at Airport Heights in Bousher. According to a press release, the launch of the property comes as part of Sundus Investments ambition to shape a series of developments that will significantly complement the hospitality landscape in the region. Sundus Rotana is scheduled for completion in the first quarter of Mohammed Mahfood Saad al Ardhi, chairman of Sundus Investments, said, In a growing economy such as Oman, tourism is an emerging sector requiring huge investments. Our decision to venture into a hospitality project was backed by our confidence in the leadership of His Majesty Sultan Qaboos bin Said and the overwhelming support we continue to receive from government departments. Once the project was identified, choosing an operator was easy. Rotana, as a brand, is synonymous with uncompromising world-class standards. This reflects the vision we share for Sundus Rotana - ensuring excellence, convenience and perfection in every detail. We are proud that the leading hotel operator in the region has become integral to that very ambition. Sundus Rotana will merge contemporary lines with Omani traditional architecture. The interior will reflect modern overtones, with a dominant palette of desert colours. Aiming to redefine the benchmark for hospitality properties in Muscat, the facility is anticipated to draw significant footfall with its eclectic offerings for both the corporate and leisure guest, Ardhi added. Selim el Zyr, president and CEO of Rotana, said, Sundus Rotana Hotel will serve as a onestop destination for visitors to Muscat, drawing in people from all over the region to witness the splendour that is characteristic of the city. With 245 rooms to cater to guests, we are proud to partner with Sundus Investments Projects and their promoters. Sundus Rotana is the first property to open in Muscat and our 71st in the region under the Rotana Hotels & Resorts by Rotana brand, which is set for incredible growth in the upcoming years, El Zyr added. Food & Hospitality Oman 2013 I Market Report I 10

12 Guest rooms at Sundus Rotana will span across four floors, ranging from standard to suite, making the hotel an attractive proposition for both the leisurely and corporate guest. Serving as a distinctive component, the lobby level of the facility will feature a shopping avenue retailing a comprehensive mix of brands ranging from fashion accessories to jewellery and much more. The property will additionally host a wide choice of fine dining options, a ballroom, one executive board room and seven conference rooms fitted out with upto-date audio-visual equipment. Leisure facilities will include a wellappointed spa, swimming pool, a fullfledged fitness centre, in addition to steam, jacuzzi, sauna and massage rooms. Muriya s hotel portfolio to grow to 14 properties Source: Oman Daily Observer, 06 January 2013 Muriya, the developer of signature mixed use tourism and leisure destinations in the Sultanate, plans to establish as many as 14 luxury hotels at its Integrated Tourism Complexes (ITCs) currently under development around the country. The portfolio of mainly 5-star properties and high-end resorts all managed by some of the world s best known hotel brands will add an estimated 2,800 rooms, as well as around 300 chalets and villas, to Oman s burgeoning hospitality sector, according to a top executive of the joint venture company. We have about 14 hotels planned across these developments over the next 4 5 years. They are in different stages of development some are operational, some are nearing completion, and others are on the drawing board, Chandra Lahiri, Chief Executive Officer, Muriya Tourism Development, said. Muriya, a joint venture of Orascom Development Holding, Switzerland (70 per cent) and Omran (30 per cent), is developing four major mixed used destinations in the Sultanate Salalah Beach (Dhofar Governorate), Jebel Sifah (Muscat Governorate), As Sodah Island Resort (Dhofar Governorate), and City Walk Muscat (Muscat Governorate). The high-end developments, with the exception of As Sodah Island Resort, have been designated as ITCs by the Ministry of Tourism. At Jebel Sifah, Muriya plans to add five new 5-star properties to its signature development located about 45km the capital, said Lahiri. We have a number of top hotels that are coming up there. The Sifawy Boutique Hotel (4-star, 55 rooms) is already operational there. We expect to start construction of the Missoni (250 rooms) fairly soon. Then there will be the Angsana (200 rooms), and Banyan Tree (89 rooms), followed by Four Seasons, and two other hotels (about 200 rooms each). Construction work is also slated to begin in April on an 18-hold PGA championship golf course designed by Peter Harradine. The facility, along with a similar 18-hole golf course under development at the Salalah Beach project, will be open for play before the end of next year, he said. Food & Hospitality Oman 2013 I Market Report I 11

13 Salalah Beach, which he described as a jewel in our crown, will host as many as six 5-star hotels and one 4-star property. While the 5-star Juweira Boutique Hotel has been in operation since June last year, construction is well underway on the Rotana, which is due to be operational before the end of this year. With 399 keys, it will be the single largest hotel in the Sultanate when it opens for business, Lahiri said. Construction will also kick off this year on the 399-keys Club Med, a 5-star resort with 32 villas. This will be followed by development of the Movenpick (391 rooms and 58 villas) next year. Also envisaged is a 4-star property to be named Lagoona (110 rooms), as well as two other hotels of 200 rooms each in the future. At As Sodah Island, near Hallaniyat Islands, Muriya is developing a super luxury high-end resort project to be operated by the exclusive Chevar Blanc brand of the LVMH luxury chain. The project will feature 20 guest pavilion units and 12 waterfront villas, along with a spa and main lodge, Lahiri said. The official also voiced hope that development will begin soon on the City Walk Muscat project once the Tourism Ministry reallocates land for the venture. The mixed use ITC will incorporate entertainment, leisure and retail elements as well, he added. Omran s role in sustainable tourism lauded Source: Oman Daily Observer, 06 October 2012 Sayyid Khalifa bin Al Mirdas al Busaidy, Governor of Musandam, along with senior management from Omran visited the construction site of Khasab Hotel, one of the company's up and coming projects which is expected to be completed by the last quarter of Led by Wael bin Ahmed al Lawati, Omran CEO, the Governor inspected the steady progress that has been achieved to date. Al Busaidy said, The Khasab Hotel is a prime example of the infrastructure needed to boost tourism and economic activity in the governorate which echoes the 9th five-year development plan to 2020 for the nation. Like a true partner, Omran has worked very closely with us to ensure these projects position Musandam as a hub for ecotourism and a draw for nature enthusiasts. This will undeniably result in long-term impact on sustainable development, enabling citizens to fully reap the fruits of these investments. Al Lawati said, The Musandam peninsula geography is unique and memorable. Its dramatic limestone cliffs that plunge into pristine fjords give visitors an authentic experience and showcases Oman's untouched natural beauty. The Khasab Hotel project will pave the path to additional sustainable projects that we have planned. It will not only encourage domestic tourism but also drive people from neighbouring countries and beyond to experience the beauty of this land. On the local front, the project will generate meaningful employment opportunities for young Omanis, attract new facilities and strengthen the local supply chain. He added, In all of our projects, community engagement plays a pivotal role in all stages of our cycle. The Khasab Food & Hospitality Oman 2013 I Market Report I 12

14 project is one of many which will deliver long-term benefits to local communities and support the long-term success of Oman s tourism sector. Situated near the centre of town and the local port, the LEED accredited Khasab Hotel will cater to the mid-high end market, offering guest rooms ranging from studios and duplex rooms to suites. After breaking ground earlier this year, the site has completed 337,014 man hours without LTI in 254 days. During this time, all excavation foundation works and super structures were completed. As part of its asset management portfolio in the Musandam Governorate, Omran operates the Golden Tulip Khasab and the Golden Tulip Dibba. The company's considered and responsible approach has resulted in a polished track record of building the best projects, safely and to the highest quality levels, and managing them to the best possible standards. Barr Al Jissah Resort unveils two new restaurants Source: Oman Daily Observer, 09 September 2012 Shangri-La s Barr Al Jissah Resort and Spa has announced the opening of two new concept restaurants, Fairouz and Asia. Both located at the Al Mazaar souk within the 124-acre resort complex, the restaurants offer distinctive and authentic cuisine prepared by experienced chefs. Legendary Lebanese singer Fairouz, whose singing prowess and songs have been embraced across generations, inspired the name of the restaurant. Very much like the singer, the restaurant is elegant and understated, making it perfect for intimate dining and entertainment. Guests can look forward to authentic Lebanese cuisine that includes a wide variety of hot and cold meze, grills and pastries. The beverage list spans from Australia and Europe to the Bekaa valley in Lebanon. Also in the beverage menu are uniquely Lebanese beverages. In true Lebanese tradition, guests can look forward to live traditional music complemented with belly dancing. Fairouz is open from Monday to Saturday for dinner from 6:30 pm to 12:30 am. Located beside Fairouz, Asia restaurant takes guests on a culinary exploration of east and south-west Asia. Prepared in four glass-enclosed show kitchens is distinctive cuisine from China, Japan, Thailand, Malaysia and Vietnam. Guests are invited to watch the chefs as dishes are prepared using traditional Asian techniques such as wok fry, steam, grill, boil or rolling a sushi. Guests can savour the unique flavours of sweet, bitter, sour, salty and spicy through a menu featuring popular dishes including dim sum, sushi and sashimi, noodles, Thai curry, satay and spring rolls, among many. Aside from the extensive beverage list, the outlet has come up with six signature beverages infused with Asian ingredients to complement the cuisine. The contemporary design of Asia, using a mix of red and black colours with modern chairs and booth seating, evokes a relaxed atmosphere perfect for casual gatherings. Asia is open from Tuesday to Sunday for dinner from 5 to 11 pm, and on Fridays from 2 to 11 pm. Food & Hospitality Oman 2013 I Market Report I 13

15 It certainly is the only hotel and resort in the Sultanate of Oman with this large number of dining outlets. Our in-house guests and local patrons are spoilt for choice. We have speciality restaurants, beach and pool restaurants, and lounges. Guests can choose to go to fine dining or a casual, relaxed environment and dine indoors or outdoors. The choices of cuisine include Arabic, Lebanese, Moroccan, Italian, Mediterranean, South American, Asian and international, said Mark Kirk, the general manager of Shangri La s Barr Al Jissah Resort and Spa, Sultanate of Oman. New tourism projects raising Oman s profile Source: Oman Daily Observer, 03 September 2012 Bahaa Karim, Marketing Director, Muriya Tourism Development, and Daniel Fanselow, General Manager, Sifawy Boutique Hotel, Jebel Sifah, have said that since its inception in 2007 Muriya has achieved many milestones, thus raising Oman s profile as an outstanding destination. Muriya s four projects, namely Jebel Sifah, Salalah Beach, As Sodah Island and Muscat City Walk cover an area of around 23 million square metres. So far Muriya has invested RO 115 million with zero debt on its three projects, namely Jebel Sifah, Salalah Beach, and As Sodah Island. All the components of the three projects completed so far are successful and profitable. After the early 2009 downturn in the real estate sector, about eight developers pulled out of Oman s market while Muriya continued and weathered the adverse effects. By 2011, the downturn conditions began to improve, adds Bahaa Karim. Muriya Tourism Development is a leading developer of fully integrated towns that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. In mid 2008, Muriya began working on its two major projects in integrated tourism complexes (ITC), namely Jebel Sifah and Salalah Beach. Jebel Sifah Jebel Sifah is an integrated tourism complex (ITC), 45km outside Muscat, spanning 6.2 million square metres space. Jebel Sifah includes luxurious freehold villas and apartments, an 18-hole PGA Golf Course, 100-berth Marina and Marina Town, four leading five-star hotels and a marina boutique hotel, in addition to the latest in retail brand names, stores, restaurants and cafes. The four-star Sifawy Boutique Hotel with 55 rooms at Jebel Sifah, the first hospitality project of Muriya, opened in September 2011 and is a huge success. Construction is on for the 200-room Four Seasons Hotel, scheduled to open in 2013 at Jebel Sifah. A mock-up room has already been built for the Hotel Missoni, with work yet to begin on the Banyan Tree Hotel. Marina at Jebel Sifah and Salalah Beach is now ready and operational. The ecofriendly Marina stretches along undisturbed coasts. The stunning 100- Food & Hospitality Oman 2013 I Market Report I 14

16 berth Marina overlooking the turquoise expanse of the sea of Oman is the newest attraction at Jebel Sifah town. It is all set to serve as a vibrant hub for yachters, recreational boaters and others with a hobby in nautical adventure. The launch of Marina marked a new milestone in the development of a worldclass tourism and residential resort at Jebel Sifah. The marinas at Jebel Sifah and Salalah Beach open a world of opportunities for past-time and recreation such as fishing, dolphin watching, diving and snorkelling. Jebel Sifah now boasts 18 Apartment Blocks with 160 apartments around the Marina. Muriya is now in the process of starting the construction of one of the fivestar hotels at Jebel Sifah. In October 2011, Muriya launched the water taxi services from Jebel Sifah Marina to Marina Bandar al Rowdha. Travelling by water for a short time is much more exciting than going by road, say tourists. The boat can accommodate up to 20 passengers on a trip, and takes around 45 minutes to reach its destination. 26km Yiti-Jebel Sifah road into a modern, all-weather carriageway. The work on the road to Sifah is expected to commence very soon. When completed, the road project will serve as a new lifeline through which investment will inevitably flow into Sifah, hitherto a quiet fishing village but now at the cusp of development into a new leisure and entertainment hub of Muscat. The new carriageway will make the 26km distance between Yiti and Sifah a breeze, thereby opening up this delightful waterfront locale to greater numbers of tourists and visitors. The world-class road itself will be an attraction in its own right, affording motorists the thrills of a ride through twisting mountainous terrain with splendid panoramas en route. Street-lighting and signposts will add to the ease of driving at night as well. Moreover, with the commute between the city centre and Sifah set to be dramatically reduced, this welcoming waterfront will be within easy reach for a lunch engagement, a candle-light dinner date, a tranquil weekend at Jebel Sifah or an exhilarating night out at the Marina. Salalah Beach Tourists say Jebel Sifah has the potential to emerge as a unique tourism and leisure hub. This is further evidenced by the landmark Royal Decree of His Majesty the Sultan ordering authorities to upgrade the The construction at Salalah Beach resort, set in an area of 15.6 million square metres, commenced in mid This ITC development offers freehold villas and apartments, two 18-hole PGA Golf courses, 200-berth Marina and Marina town, five five-star hotels and two Marina boutique hotels, diverse restaurants, cafes and retail outlets. Food & Hospitality Oman 2013 I Market Report I 15

17 This year marked an exciting time for the Salalah Beach project as several key components in the development have been successfully completed. The only tropical retreat of the Gulf, Salalah Beach hosts a green house with thousands of plants to be placed around the project. Over 1,000 coconut palms have been planted along the beach of the project. The aim is to have 50,000 plants planted in the project with 1 million sq m of grass. Salalah Beach project already has a very light built-up ratio of 25 per cent in comparison to the natural spread, with 40,000 sq m of green grass for golfing and over 30,000 plants. The 65-room Juweira Boutique Hotel, opened a few months ago, is a boutique property that redefines luxury living and hospitality in this corner of the Arabian Peninsula. Juweira Boutique Hotel faces the Marina front and offers guests a scenic view from the comfort of their own outdoor terraces overlooking the Indian Ocean.Construction of the Rotana Hotel is currently under way, providing a further 400 rooms to the Salalah Beach project. The Marina, whose construction commenced in 2009, is ready for receiving boats. Covering a 96,000 square metres with a dry-berth boat storage area of over 12,000 sq m, Salalah Marina can hold over 170 boats of up to 60m in length. Built to complement the natural beauty of the surrounding landscape, the Salalah Beach Marina is an exceptional leisure destination with outstanding surrounding facilities. Apartment blocks are built and Muriya is now in the process of handing them over to the buyers. The marina towns in Salalah beach and Jebel Sifah will be ready by next year. As Sodah Island As Sodah Island, 35 nautical miles from the coast, is a luxury resort set in an area of one million square metres. Part of Al Halaniyat Islands, As Sodah Island project will include 32 lavishly created chalets, each with its own individual private beach. This eco-friendly boutique hotel will be an exciting destination in the area. Muscat City Walk Muriya has yet to acquire land for Muscat City Walk, a beachfront development in Al Hail, and hopes to progress this project shortly. City Walk will be only a 10-minute drive from Muscat International Airport. This coveted downtown will be the place to relax in a five-star hotel or indulge in shopping in exclusive retail outlets or just chill out in cafes and restaurants with friends and family. To sum up, experts say all those investing in tourism including Muriya must make sure that in the resorts, marinas and hotels all that goes on is in line with Oman s sublime values of modesty and moral aesthetics. What shall profit Oman if suppose all the wealth starts pouring into the country but loses its touch with its roots and values? Oman is certainly not in favour of mass tourism and is very keen to preserve and protect its heritage and values. Food & Hospitality Oman 2013 I Market Report I 16

18 Best Western to launch new hotel in October Source: Oman Daily Observer, 26 August 2012 Best Western International, one of the world's largest hotel chains, has announced the Middle East launch of its brand, Best Western Premier, with opening of its first 4-star deluxe hotel in Oman this October. Best Western Premier Muscat, is located in the key business and commercial district of Al Khuwair, close to several embassies and government ministries. The opening of the hotel will mark the debut of the brand in the Middle East, entering a new era of development in Best Western's 66-year history and a key stage of the Middle East hotel industry, said a senior official. The Middle East is one of the most exciting hotel markets in the world today, and the cosmopolitan city of Muscat is at the heart of its development, said Glenn de Souza, Best Western International s VP International Operations (Asia & the Middle East). With its ideal location, perfect for both business and leisure travelers, the hotel is certain to become a key part of Muscat's tourism industry scene when it opens its doors in October, he noted. The new luxury hotel, he said, will offer the perfect combination of superior facilities, exquisite service and internationalstandard amenities in the center of this fast-growing city. I am sure this hotel will prove to be a game-changer not only for the city of Muscat and Oman, but also for Best Western s development in the Middle East, he remarked. Designed in a modern yet traditional style, guests at the 10-storey hotel are greeted in a refreshing lobby. Its 203 contemporary guestrooms and suites offer a range of refined amenities such as plush bedding, 42-inch LED flat-screen TVs with a variety of satellite channels, complimentary Wi-Fi and luxurious bathrooms with rain showers, he added. De Souza said the Oman launch comes as part of Best Western's expansion strategy for the Middle East region. In addition to the four existing hotels in Riyadh, Al Khobar, Doha and Tel Aviv, Best Western plans to add a further 20 hotels across the region within 2015, he added. Oman tourism sector sees rapid growth Source: Muscat Daily, 25 August 2012 Investment in Oman s tourism industry is rapidly increasing, as the country continues to witness the opening of a number of hotels this year, with many others gearing up to open in The Ministry of Tourism (MoT) has predicted that more than 2,000 resort and hotel rooms will be added in While the capital, Muscat will experience maximum growth with nearly 726 new rooms, there is an even spread of investment across the rest of Oman with niche resorts opening in Salalah, Khasab and in Hajar Mountains. Food & Hospitality Oman 2013 I Market Report I 17

19 H E Maitha al Mahrouqi, Undersecretary at the MoT, said, Oman is seeing strong investor demand in the sector, especially in niche properties. This is as part of government-sponsored joint ventures through Omran and other private players. Overall, our approach is to ensure that five star developments are located in natural landscapes. This approach gives us a competitive edge and fuels investment demand. Additional room supply also generates demand for improved products, with a recent example being the opening of the new Almouj Golf, a Greg Norman signature 18-hole golf course at The Wave, Muscat, she said. Unlike previous years, the pattern shows significant investment commitment in regional areas, such as Duqm, Oman s new city on the Arabian Sea, where three new hotels with a total of 391 rooms, will be opened. Duqm City Hotel, Oman s first pre-fabricated 120-room business hotel opened mid-2012 and Crowne Plaza Duqm is expected to open any time soon. There has also been huge interest in Oman s high altitude Hajar Mountains where both government and private sector investment are on the rise. For the past two years, along with its Salalah Tourist Festival and Khareef promotions, the MoT s Hajar Mountains summer campaigns have been pitched at day visitors from Muscat and the GCC. In response to the increasing number of tourists, three major resorts in Jebel Akhdar have been invested upon. This is in addition to the Sunrise Resort on Jebel Asarh (near Jebel Shams), that opened in early In , MoT figures confirm growing investor interest in hotel and hotel apartments with 61 and 77 approvals handed out respectively, although completion dates go beyond Property group Muriya opened its Sifawy Boutique Hotel at Jebel Sifah (50km east of Muscat) in early Its Juweira Boutique Hotel at Salalah Beach (64 suites and 21 guest rooms) opened midyear. Further, 2013 will see more hotels open at the Jebel Sifah and Salalah Beach. Oman s entry into the global business and meetings market will accelerate with the opening of the Oman Convention and Exhibition Centre (OCEC) in The OCEC project comprises a 3,000 seat plenary hall, 40,000m2 of exhibition space, business centre and four hotels totalling 1,000 rooms. Oman could lead ME hotel room growth: STR Global Source: Muscat Daily, 25 August 2012 The expected growth in hotel rooms in the sultanate is likely to be highest in the Middle East region if the country opens all the rooms in its pipeline, according to STR Global's recent construction pipeline report. Among the countries in the Middle East and Africa (MEA) region, Oman reported the largest expected room growth at 81.2 per cent if all 5,417 rooms in the country s total active pipeline open, said STR Global in its July 2012 report. The Middle East and Africa hotel development Food & Hospitality Oman 2013 I Market Report I 18

20 pipeline comprised 495 hotels totaling 125,481 rooms, according to the report. According to latest statistics released by Oman's National Center for Statistics and Information (NCSI), the total number of guests in the sultanate's four- and five-star hotels rose by 24.6 per cent in the first half of this year to 321,500 compared to 258,000 in the same period last year. The data showed that hotel revenues increased by 13.4 per cent to RO52.7mn in the first half of this year from RO46.5mn in the corresponding period of the previous year. Occupancy at five-star hotels increased to 59.3 per cent in the first half of this year from 52.3 per cent in the same period last year, while occupancy in four-star hotels declined to 56.4 per cent from 59 per cent a year ago. The STR Global report added that other Gulf states also showed significant expected room growth. Saudi Arabia is expected to report a 53.9 per cent room growth with 27,624 rooms, Qatar is expected to report 47.1 per cent growth with 6,785 new rooms and UAE to report 38.6 per cent growth with 35,052 rooms included in its construction pipeline. Bright future for property investment in Oman Source: Oman Daily Observer, 13 August 2012 In recent years the property market in Oman has seen strong peaks and troughs, but the future has never looked brighter, according to one of the country s experts in property investment. According to Chris Steel, Managing Partner of Savills Oman, there has never been a better time to get into the market. The rationale behind this is simple; properties are starting to show owners net investment returns above prevailing bank interest rates. Combined with high levels of liquidity in the populace and favourable borrowing costs the market has very much bucked the international trend. In the capital area the residential leasing sector has long been a favoured medium with stand-alone property showing returns of over 5 per cent. With the large percentage of expats only being able to rent, many landlord investors have built impressive investment portfolios over the last 30 years. Chris Steel has watched the relatively new avenue of investing in ITCs (Integrated Tourism Complexes) open up and with demand far outstripping supply, it is a growth that is likely to continue for many years to come, Original investors at developments such as The Wave, Muscat and Muscat Hills took calculated risks when buying. The gamble paid off and there is now an acute supply shortage at these developments, especially villas that can be leased quickly. In some instances, there are waiting lists from renters for particular property types and landlords are seeing no rental void periods at all between tenant changes. With owner investors achieving high yield returns, it is no wonder that there is virtually no property for re-sale in those developments. Savills Oman is the exclusive agent for Muscat s latest offering in the luxury ITC market, Badr Muscat Hills. The Food & Hospitality Oman 2013 I Market Report I 19

21 developers of Badr at Muscat Hills have been acutely wise in how they approached the project. They analysed the target market of both owner-occupier and tenants wanted from the properties and then provided them. On completion these homes will be in high demand as they provide a sophisticated home with the latest in kitchen design and even their own personal swimming pools, each complimented by a golf course location. Initial rental returns are likely to be in excess of 7 per cent with further growth likely over the shorter term as rental rates increase, continued Steel. New luxury property development designated ITC Source: Oman Daily Observer, 16 July 2012 Badr Muscat Hills, Muscat s latest luxury property development, has marked a new first for Oman s property market. Each of the 20 villas in the residential complex will have its own private swimming pool as a centrepiece, meeting the demands of today s discerning homeowner. Each azure-coloured pool is part of the aesthetic design of the outdoor area and makes a focal point from the interior of each home s expansive use of glass and double-height reception areas. The pools will appear to be floating when seen from inside and will be a spectacular sight at night when illuminated. Their expansive surrounds of timber decking will fast become the most used area of each home and will be the backdrop for many family gatherings and social events. It is this outdoor lifestyle that will stimulate high demand for these residences when launched for sale later this summer. Chris Steel from Savills Oman, the exclusive selling agents for Badr Muscat Hills, sees the pools as a major attraction for investors looking at buying property in Oman, Everyone dreams of having a house with a pool. Whether it is for a bit of exercise in the morning, for kids to play in with friends or just a refreshing dip after work, pools attract everyone. There is definitely an increase in the number of houses with pools in Oman and having a local company to design, fit and service them reflects that. We are very happy to be using a local company, especially as the finish is equal to anywhere else in the world I have seen. Badr (Arabic for full moon) is an exclusive residential development under construction at Muscat Hills, the acclaimed golf course community. Only 20 properties will be available in this limited edition release, offering a unique lifestyle and Food & Hospitality Oman 2013 I Market Report I 20

22 investment opportunity for the fortunate few. Badr is an ITC (Integrated Tourist Complex) freehold development allowing non-omanis to acquire a freehold property in the Sultanate of Oman. Freehold property owners are granted a residence permit for themselves and their immediate family members, subject to government regulations. Dubai s Auris to open 4-star hotel in Sohar Source: Muscat Daily, 11 July 2012 Auris Hotels, a Dubai-based hotel management company, has announced that it will open a new 70-room four-star hotel in Sohar within the next eight months, according to a report on HotelierMiddleEast.com on Tuesday. Quoting Hatem Gasmi, managing director of Auris Hotel Management, the report said that the hotel in Sohar, which will be Auris first property outside Dubai, will be around 12km from Sohar airport, and will target both leisure and business travellers to the port city. Gasmi said, We are in the final stages of design and furnishing - everything is there. It will cater to the needs of the business traveller in Sohar. The new hotel - 'Auris Lodge Hotel Sohar' - includes seven suites and 63 guest rooms, which will be between 42-45m2. The property, which will be alcohol-free, to appeal to the family market, will also include a meeting area which can accommodate up to 200 people across two rooms, a business lounge, two restaurants and separate ladies and gents health clubs. Gasmi added that due to government investments of around US$12bn on various projects in the region, Sohar is all set to become 'an industrial hub.' Mars Hypermarket Barka is group s seventh in Oman Source: Muscat Daily, 02 July 2012 The seventh Mars Hypermarket in Oman was inaugurated by Sayyid Khalifa bin al Mirdas bin Ahmed al Busaidy, the governor of Musandam, in Barka on Saturday evening. Speaking about the new hype-rmarket, Naveej Vinod, executive director of Mars International, said, "We are very happy to start operations in Barka and will give the best in terms of both services and products to our customers. Mars has always represented the best in retail concepts and provided maximum convenience to our valuable shoppers. Let us all work together towards excellence and make shopping a different experience for everyone." Spread over 15,000sq m, the hypermarket has 43 cash counters and parking space for more than 700 cars. It will be open from 8am to 12 midnight. Food & Hospitality Oman 2013 I Market Report I 21

23 "The mall will cater to the needs of not only inhabitants of Barka, but also people from Muscat. It is a one-stop destination for everything a person needs. Even the 1,000sq m children's play area will be an attraction for shoppers, said Vijay Kumar, mall and marketing manager. The food court houses popular restaurant chains and can accommodate hundreds of people. The carpet section features pieces from the local industry in Salalah, as well as from India, Jordan and Iran. This is our seventh outlet in Oman and the ninth in the GCC, and we have plans for further extension this year." Mars has also launched a special promotion for customers in Barka. Ten Dodge Charger cars will be given to the winners of the promotion, to be held from June 30- October 9. Customers will get a lucky draw coupon for every RO3 purchase. The group will also open a hypermarket in Qurm after a few months. Muriya soft-launches luxurious Juweira Boutique Hotel Source: Oman Daily Observer, 19 June 2012 With Dhofar s khareef weather just weeks away from weaving its subtropical magic upon Salalah, a new chic boutique property is set to open its doors on the eve of this delightful summer holiday season in the south of Oman. Juweira Boutique Hotel, a premium five star property, is the first of five leading international hotel brands that will anchor the luxurious Salalah Beach lifestyle destination overlooking the Arabian Sea. Everything about Juweira from its striking waterfront setting and distinctive design through to its sophisticated dining options and refined standard of service is exceptionally boutique. Indeed, its launch is set to redefine the resort experience for guests and visitors to Salalah, as well as enhance Dhofar s international cachet as a tourism and leisure destination in its own right. Designed by celebrated Egyptian architect Adel Mokhtar, this trendy property with its charming Oriental theme offers 64 guestrooms including 21 superbly appointed suites. Its location on the marina promenade affords guests unrivalled views of Salalah s pristine beachfront and the Indian Ocean beyond. The guestrooms and suites exude luxury and refinement which is reflected in the rich, yet understated, décor and furnishings. Facilities available are both comprehensive and modern, keeping in mind the property s wide appeal across the complete spectrum of sophisticated and discriminating clients. Food & Hospitality Oman 2013 I Market Report I 22