Marriott is losing the St. Regis, W, and Westin in Dubai all at once. That’s a one-third hit to the number of legacy Starwood rooms in Dubai, including the same owner pulling the St Regis Habtoor Polo Resort and Spa in recent days.
Dubai was one of Starwood’s most important markets, they had a legacy Emirates partnership similar to their Delta partnership in the US and a UAE co-brand credit card.
These properties are all owned by Al Habtoor Group, and located in the Al Habtoor City development. Al Habtoor’s Chairman seems to suggest they’ll go it alone though nearly 2000 rooms is a large portfolio to market as an unbranded product.
A local correspondent shares some details of the dispute,
– Owner manager were at odds since opening two years ago
– The hotels were mismanaged relative to JW Marriott Marquis (also 1608 rooms, largest in Dubai) next door.
– These guys fell to single digit occupancies frequently in summers, JW Marriott Marquis has no trouble ending at 100% several days through year.
– JW Marquis and this complex are adjacent (walkable sort of, opposite banks of canal, separated by 100 metres)
– Hilton and Hyatt probably can probably fill these rooms (Hyatt has no major hotels in major areas in Dubai). Hilton because these would be the 3 best Hilton’s in the city. Accor is stronger than both of those in Dubai but as a result not sure if it can take on 1600 rooms.
– IHG is also involved in the talks. They could also take em (they have only 1 major hotel in a good location – Marina). So no immediate area competition from IHG (though a nearby one opening in 12 months).
Could We See Another Park Hyatt in Dubai?
This is a disappointing development for Marriott in Dubai, since these are all excellent hotels, however if they join another global chain it could rebound to consumers focused on other portfolios.