GLOBAL UPDATE : DEVELOPMENT
Time Turkey
for
The performance gains of Turkey ’ s hotels , fueled by increasing domestic demand and the market ’ s solid long-term prospects , have put the country at the top of hotel management companies ’ expansion priorities . With RevPAR in 2011 registering gains of 24.5 % and ADR up 20.7 %, according to MKG Hospitality , it should come as no surprise that data has caught the attention of the development community .
Many of the recent openings in Turkey have been in its already developed areas such as Istanbul , its largest city and economic center , and Mediterranean
Brands are on an expansion drive as an emerging middle class fuels domestic demand .
By Nathan Greenhalgh , associate editor
resort areas . Now , however , hoteliers are heading into less developed areas of the country where the amount of branded supply is quite low .
A newly flourishing middle class is expected to keep Turkey from stagnating like much of the rest of Europe — even though the country ’ s rapid economic growth is projected to slow some this year .
“ The number of cities in Turkey with a population of more than one million is astonishing , and the underpenetration of good-quality , branded hotels is enormous . Huge potential exists in these cities even if it is mainly
Lobby at the Hilton Dalaman Resort & Spa
domestic demand for transient accommodation ,” says Arlett Oehmichen , associate director in the London office of HVS . “ The performance of hotels in Turkey has not been impacted by negative growth in Europe over the last three years . A strong domestic market has been able to absorb a short-term decrease in its feeder markets .”
Hilton Worldwide , McLean , Virginia , opened eight hotels in Turkey in 2011 , representing 5 % of its openings worldwide for the year and giving it 20 across the country . However , Hilton is not done expanding in Turkey — a further 13 hotels are scheduled to open by the end of 2013 . The expansion has targeted regional cities , with hotels recently opening in Kütahya , Konya , Mardin , Şanlıurfa and Ordu , while hotels under development include locations such as Gazientep , Diyarbakır and Kayseri .
“ Our regional city hotels host predominantly Turkish domestic guests ,” says Simon Vincent , Hilton Worldwide ’ s area president Europe . “ We are seeing continued hotel development momentum and
6 HOTELS May 2012 www . hotelsmag . com