Action Hotels (LON:AHCG), a leading owner and manager of economy and midscale branded hotels, has acquired new freehold land in the heart of Dubai’s Media City.
The acquisition is part of the company’s ongoing growth plan focused on the Middle East, capitalising on a booming tourism industry and intra-regional business travel.
The plot of land is located within the Media City’s Innovation Hub, due to open in 2017. It is situated less than 1km from the coast and is surrounded solely by five star hotels, with only one other mid-market hotel in the vicinity.
The midscale hotel market in the region is significantly underserved compared to the US and Europe. The Gulf Cooperation Council in particular is expected to become one of the largest growing economies in the world.
In 2014, Dubai Airport overtook Heathrow as the world’s busiest airport. The acquisition will be the group’s second hotel in Dubai.
"I am delighted that we have agreed to acquire this prime freehold plot of land in such a desirable area. This acquisition reinforces our presence in key locations in Dubai,” said founder and chairman Sheikh Mubarak A M Al-Sabah.
It currently operates nine completed properties offering more than 1500 guest rooms in six countries with plans to grow its portfolio to 17 hotels.