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A FLOOD of interest from investors to keep the Kempinski Hotels brand alive in Bahrain has followed the shock news that the company is going to hand its prized twin towers back to the owners of Bahrain City Centre in the summer, writes Stan Szecowka.
The hotel group is keen to prolong its presence on the island but the due diligence process on securing a new-build property and partnership is likely to take two to three years.
General manager Puneet Singh told GulfWeekly: “People have been visibly upset by the news and we are actively looking at opportunities for coming back to Bahrain.
“We have already received calls to discuss projects but there are so many levels of scrutiny to take into account that it’s way too early to speculate further.
“Bahrain remains a key market for us and we’d love to be back. Reaction to the news has been so intense that it is clear that we must have been doing something right here.”
The Kempinski Grand and Ixir Hotels have made a huge impression in the community, particularly since linking up with a local farm to provide fresh produce for its restaurants and it has actively played a role in the mall providing a base for fashion events and charitable endeavours.
Kempinski Hotels and Majid Al Futtaim announced last week that they have reached an amicable, mutual agreement to end the hotel management agreement for the Kempinski Grand & Ixir Hotel Bahrain City Centre in Manama on March 24.
Kempinski Hotels has been managing the property since September 2011, and will continue to manage the hotel until midnight on June 30 when it will formally hand over the property to Majid Al Futtaim.
Reto Wittwer, president and CEO of Kempinski Hotels, said: “While we regret the end of the management agreement for the Kempinski Grand & Ixir Hotel Bahrain City Centre, we are pleased that Kempinski continues to enjoy an excellent relationship with Majid Al Futtaim, for whom we continue to manage the award-winning Kempinski Hotel Mall of the Emirates in Dubai.”
George Kostas, CEO, Majid Al Futtaim – Properties, said: “Our studies of the changing market requirements informed our decision to adopt a two distinct brands strategy for the two-tower hotel in Manama. We believe the new strategy is better aligned with the product and the market demand and will maximise the yield of the two towers. We will announce the new brands in due course.”
Majid Al Futtaim owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in MENA, with further developments underway in the region. This includes the Mall of the Emirates, City Centre malls and also four community malls which are in a joint venture with the Government of Sharjah.
In Bahrain it is looking for an international ‘multi-brand’ hotel company to take over and the successful operator and its two chosen brands for the towers will be announced on Sunday.
Negotiations have been held with Starwood Hotels and Resorts Worldwide, it is believed.
Staff members working at the Kempinski have been told their jobs will be secure when the new concern takes over, although the GM will leave the kingdom for another assignment within the single brand Kempinski family which is expanding globally.
Created in 1897, Kempinski Hotels is Europe’s oldest luxury hotel group and now manages a portfolio of 75 five-star hotels in 32 countries and continues to add new properties in Europe, the Middle East, Africa and Asia.
