Mohebi Group eyes investors to build hotels

DUBAI — Zainal Mohebi Group (ZMG) is looking for investors to build hotels in the UAE and other Gulf countries that would involve an investment of over Dh2 billion in 10 years.

By Jose Franco

Published: Wed 13 Feb 2008, 9:11 AM

Last updated: Mon 2 Sep 2024, 3:55 PM

"We are investing and expanding heavily in the tourism industry of the UAE and the broader Gulf region," said Mohammed Mohebi, CEO of ZMG. "(W)e are thus looking at sourcing funds through international markets as well as local and foreign funds."

Mohebi stressed the need for hotels in the three- and four-star categories in the Gulf region, saying there is an increasing demand for such. Yesterday he signed an agreement with Glenn de Souza, vice-president for international operations of global hotel-chain operator Best Western International, to build BWI hotels in the Gulf countries. The agreement also calls for both parties to brand, manage and oversee the hotel operator's development across the Middle East.

MI will operate the Middle East Area Development Office of BWI while another ZMG unit, Mohebi Aviation (MA), will manage BWI's International Sales Office, in Dubai. Since December MA has been doing the sales, marketing and public relations activities of BWI in the Middle East, with emphasis on the UAE, Saudi Arabia and Kuwait. "We strongly believe that this project is in line with the development of the tourism industry in the region," said Samuel JS Poddar, general manager MA.

BWI's inbound and outbound markets involving the three countries have generated Dh11 million ($3 million) into Best Western hotels worldwide over the past eight years.

Mohebi said the joint venture's first property is the Dh202-million ($55 million) Best Western Residences, a 220-room hotel in Dubai's main business and shopping district of Bur Dubai. Set to open in February 2009, the hotel features studios and one-, two- and three-bedroom accommodation starting at $300 per night per person.

De Souza said at a Press conference that using Dubai to gain a "strong foothold" in the Middle East is an important development strategy for BWI.