Kuwait-based Action Hotels, an owner, developer and asset manager of branded three and four star hotels in the Middle East and Australia, on Monday announced that its shares have been listed in London.
The company, which has a current operating portfolio consists of six hotels, of which five are in the Middle East and one in Australia, with a total of 1,004 rooms, has listed its entire shares on the AIM market of London Stock Exchange.
A further two hotels are under construction and due to open by the end of 2014, which will add an additional 470 rooms. The Group also has a development pipeline of six hotels, which are expected to add 1,032 rooms, expanding its total portfolio to 2,516 rooms by 2016.
Alain Debare, the Group’s CEO, said: “Over the past eight years we have established a successful and profitable hotel business which is well-placed to take advantage of the significant growth opportunities for branded economy and midscale hotels across the Middle East."
Debare said that the move to become a listed company was “the next logical step for Action Hotels".
“The listing on the London Stock Exchange’s AIM market will enable us to solidify Action Hotels’ position in the region and to access capital markets for the development of our hotel pipeline," he said.
“We have high aspirations for Action Hotels and this AIM listing will provide increased visibility and recognition with our global partners, driving opportunities for continued growth.”
Debare confirmed that Action’s focus remains on developing a leading economy and midscale hotel business in the Middle East’s undersupplied and high growth markets.
“Hotel room supply in the GCC countries is principally geared towards the luxury end of the market, meaning that the penetration of branded economy and midscale hotels has been historically low.
“However, a number of factors are driving strong demand for quality affordable hotel accommodation, such as an emerging middle class within the GCC, an increase in intra-regional leisure and business travel and greater budget airline capacity in the region. This is the segment that Action Hotels knows well, and will continue to focus on,” he added.
Action Hotels is a wholly owned subsidiary of Action Group Holding Company, a private Kuwait-based conglomerate which has interests across a range of sectors including energy, real estate, and hotels, in the Middle East, Australia and Europe.