FHS World, 30 SEP - 02 OCT 2024 Madinat Jumeirah, Dubai, is the hospitality industry’s platform to invest in its future. It is a premium platform for investors, hotel owners and operators in the hospitality industry to connect, network and drive the future of hospitality.

The summit connects investment opportunities and projects from the Middle East, Europe, Africa, Asia and the Americas to C-level hospitality decision-makers. Established in 2005, FHS World was formerly known as AHIC.
Hala Matar Choufany, ISHC, President- Middle East, Africa and South Asia, HVS is attending the event and gives us an insight as to what to expect.

BTN: What are the most important aspects and priorities on which to focus when it comes to hospitality investment in order to get the best ROI? 
 
HVS: Maximizing return on investment (ROI) for a project requires careful attention to three equally crucial aspects to ensure long-term financial viability and optimal returns:
 
1. Comprehensive Market Analysis and Financial Feasibility: Conducting an in-depth market supply and demand study, along with a detailed financial feasibility analysis, is essential for understanding key demand segments and uncovering potential performance opportunities. This analysis should include a valuation assessment to evaluate the project’s viability and financial potential. By thoroughly analyzing market trends, customer needs, and competitive dynamics, stakeholders can make informed decisions that align with market demands and enhance overall project success.
2. Strategic Operating Model and Brand Alignment: Selecting the most suitable operating model and aligning the hotel property with an appropriate brand, franchise, or operator is vital for maximizing property value. This involves evaluating various operational and branding options to determine which will best enhance the property’s appeal and profitability. A well-chosen brand or operator can significantly impact the property’s market positioning, attract the right clientele, and contribute to long-term value growth.
3. Investment and Development Cost Management: Ensuring that investment and development costs are aligned with the project’s proposed positioning is critical for maintaining a strong internal rate of return (IRR). Ongoing scrutiny of cost items and effective cost management practices are necessary to prevent cost overruns and financial inefficiencies. By monitoring and controlling expenditures, stakeholders can safeguard the project’s financial performance and ensure that the ROI remains robust.

Focusing on these key areas helps in optimizing the project’s financial performance, ensuring it meets its investment goals, and achieving sustainable success over the long term.
 
BTN: What is your outlook for the hospitality industry in the UAE and wider Middle East region for the rest of the year and in 2025? 
 
HVS: Demand growth in the Middle East is projected to persist into 2025, particularly in major cities like Dubai, Abu Dhabi, Riyadh, Makkah, and Doha. 

Despite a predicted increase in supply, most markets in the region are expected to sustain occupancy levels similar to those in 2024. However, average rates may decrease in markets with a large influx of new hotels, while they could remain stable in other markets. The rate gap between luxury and upscale accommodations is anticipated to narrow, due to rate adjustments following significant increases in 2023 and 2024. 

Overall, the Middle East hotel market in 2025 is expected to remain strong supported by positive regional trends and developments, enhanced air connectivity, ongoing large-scale developments, government-backed initiatives, and expected business growth across the region.
 
BTN: FHS World is bigger than ever this year, with expanded exhibition space, more insight, discussion and debate, and new features.  What aspects are you most looking forward to and what do you hope to take away from the event?
 
HVS: Destination development and tourism are significant economic drivers for many emerging nations in the Middle East and Africa. As competition in the sector grows increasingly international, some countries in these regions are benefiting from substantial investment and development budgets. However, many well-established destinations around the world are now implementing measures to limit visitor numbers to protect natural resources and promote sustainability. 

It would be insightful to examine how Middle Eastern countries plan to navigate similar challenges that are currently affecting European destinations, particularly as they strive to balance economic growth with environmental stewardship and sustainable tourism practices.