Construction has started on Best Western’s first two hotels in Iraq which will operate under the Best Western Premier brand in Erbil, the capital of Iraqi Kurdistan, reports Hotelier Middle East.

The 82-room Best Western Premier Erbil Airport will be the first to open in 2013, located near to the recently-opened Erbil International Airport.

This will be followed by the opening of the 160-room Best Western Erbil in the city centre in the first quarter of 2014.

“Iraq was chosen for Best Western’s next step of brand expansion in the Middle East based on various positive aspects of the nation. These include the historical values, the country’s economy, the people and its financial resources, all of which are key elements in the immense potential of Iraq as both a major business centre and tourism destination. And Erbil, as a prominent trading centre with key road links and increasing air access, is a natural choice for our first hotels in Iraq”” said Glenn de Souza, Best Western International’s vice president international operations – Asia & the Middle East.

Owner Golden Mountains Company chairman Eng. Handren Azzo added: “Looking at the global sales and marketing reach, revenue generation and promotional power to be gained by us the hotel owner, the city of Erbil and the wider destination of Iraq itself, the decision to go with Best Western was an easy one”

“We very much look forward to impressing visitors to Erbil with hotels that combine the world-class standards of Best Western International and the unique character of Iraqi Kurdistan hospitality”.

(Source: Hotelier Middle East)

Karbala relies heavily on Iranian pilgrims to important religious sites in the area. But hotel owners are crying foul: they say Iranians are openly monopolizing tourism in Karbala and covertly buying up local properties, according to this article from Niqash.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Every week the central Iraqi city of Karbala hosts thousands of visitors, most of them on religious pilgrimage from Iran and on their way to visit some of the most important destinations in the world for Shiite Muslims, inside and around the city. Most of the Iranians are on package tours and spend time in Karbala, Najaf and in Baghdad.

One might logically conclude that the Iraqis working in the tourism sector in these cities would benefit financially from their Iranian visitors. However many local tourism operators in Karbala say that one Iranian firm, with a virtual monopoly on Iranian tourism to the area, is making all the rules and all the profit.

Founded in 2003, after the fall of former Iraqi leader Saddam Hussein’s regime, Shamsa, which is described as a central agency for Iranian pilgrimages to Iraq, has over a thousand branches all over Iran. And as such, Iraqi hotel owners and tourism operators in the Karbala area say that Shamsa is directly, and indirectly, monopolizing religious tourism in their country. “Due to this company’s cunning methods, a huge amount of the revenue from Iranian visitors is just going back to Iran,” they complained.

There are around 300 hotels in Karbala, many of them concentrated in the city centre near two important shrines. And almost all of them make their money from Iranian tourists. Statistics indicate that tourism is the major source of income in the area. Some private citizens in Karbala also get in on the act, providing accommodation in their own homes – however in general, these do not meet the standards set by Shamsa and are used by individuals travelling privately.

Rudaw reports that a delegation from the Sheraton hotel chain recently visited Erbil to explore the possibility of building a hotel.

Omed Kayfi, head of Kurdistan Region tourism department, told Rudaw, “so far … Marriott, Hilton and Turkish Divan brands are building hotels in Erbil … Sheraton has also visited the Kurdistan Region to assess the security, tourism and business conditions here to decide whether or not to build a hotel.”

McClatchy newspaper chain reported in July that Marriott will manage a 200-room hotel and 75-room executive residential building.

In the 1980s, there were attempts to convince Sheraton to lend its name to a hotel in the Kurdish capital, currently called Erbil International Hotel, but a deal could not be agreed “for financial reasons” said Luay Abdulhadi, the current manager of Erbil International. In Kurdistan, the hotel is popularly known as Sheraton.

The reported visit by the Sheraton delegation comes months after Kurdistan Region President Massoud Barzani issued a decree only allocating land for investment projects to well-known international brands. Amid widespread concern over local corruption in investment projects, a government committee is currently reviewing all projects to ensure they are complying with existing laws.

As Kurdistan opens its doors to international businesses, some have criticized the lack of a comprehensive plan to develop tourism sector and the poor quality of tourism services.

Sarbast Amedi, the director of tourism in Dohuk province, said the five-star hotels in Kurdistan only meet the standards for four-star hotels in neighboring countries such as Turkey and are equivalent to three-star hotels in Europe.

He said the government needs to do more to convince international hotel chains to invest in Kurdistan.

“Well-known international hotels will only succeed in Kurdistan if we don’t impose our own cultural norms and customs on them… Otherwise even if they come here they will fail,” said Amedi.

He added that the government should not try to close down night clubs in hotels because of objections from religious people.

The only international hotel chain currently operating in Kurdistan is Rotana.

According to the Tourism Board, around 1.3 million people visited Kurdistan in 2010, with approximately 20,000 of them coming from outside Iraq. The Board expects an even larger influx of tourists to Kurdistan this year.

There are currently 183 hotels, 107 motels and 40 tourist resorts in the Kurdistan Region but only six of the hotels are five-star. Of those, three are in Erbil, two are in Dohuk and one is in Sulaimani.

(Source: Rudaw)

Hilton Worldwide is set to open its first hotel in Erbil, the flourishing capital city of Iraqi Kurdistan, under a management agreement with New York based real estate developer The Claremont Group. Comprising of 200 serviced apartments, DoubleTree Suites by Hilton Erbil is expected to open at the end of 2013.

The new hotel will be strategically located on Erbil’s central thoroughfare, close to the recently expanded Erbil International Airport and the Ainkawa district, one of the city’s main retail and entertainment centres.

Rob Palleschi, global head, DoubleTree by Hilton brand said, “I’m delighted to be bringing our brand to such an important city in the Middle East. DoubleTree by Hilton has built its success on providing high standards of service and quality facilities in gateway cities, which makes it the ideal choice for Erbil’s thriving community.”

Tailored for the needs of long-staying guests, the hotel will feature a business centre, health club, swimming pool, eight meeting rooms, two restaurants and a lobby lounge and bar. Around 200 jobs will be created at the hotel and the company’s focus will be on employing people locally.

“Erbil’s commercial status is increasing year on year and the city has a growing reputation as an up and coming tourist destination. We have every confidence that the DoubleTree Suites by Hilton Erbil will prove popular with the growing number of business and leisure travellers,’ commented Rudi Jagersbacher, area president, Middle East & Africa, Hilton Worldwide

National Geographic recently listed Kurdistan, Iraq, amongst their Top 20 best trips describing it as ‘an oasis of peace and stability with ancient cities, snowcapped mountains and bustling bazaars’ and the New York Times travel section also listed Kurdistan in their 41 places to visit for 2011 saying ‘the biggest lure is the opportunity for authentic cultural encounters’.

Stephen Lari, Principal of The Claremont Group, said ‘There is so much potential in Kurdistan and particularly the city of Erbil. We’ve seen travel to the region grow considerably over the past couple of years. If that trend is going to continue then further infrastructure is required to support the industry. Hotels are key to that, and with Hilton Worldwide we know we have the right brand and management partner to make this hotel an integral part of the travel industry in the region’.

He added: “We’d like to commend the leadership of the Kurdistan Regional Government for fostering the secure and pro-investment environment that has been the catalyst for the region’s steady growth and prosperity. By making the first major American-sponsored investment in the region’s hospitality sector, we are firm believers in the Kurdistan success story”

Hilton Worldwide currently operates 53 properties across the Middle East and Africa and has 36 hotels in the development pipeline. So far this year the company has signed a total of 14 new hotels into the pipeline across the UAE, Saudi Arabia, Qatar and now Iraq.

(Source: Hilton Worldwide)

Najaf Investment Commission announced on Tuesday that it has granted two investment licenses worth a total of $56 million.

According to AKnews, one is to build a residential complex in Manathira district, and the other is to build a tourist hotel in Najaf city.

Wafi al-Bahhash, the head of the commission, told AKnews that the residential complex will be built 17 Km south of Najaf and includes 795 residential houses that will be worth $51 million.

“The complex also includes service and entertainment facilities, and the license was granted to Dar Engineering Company,” he said.

“The second license was granted to an Iraqi investor to build a four story tourist hotel that will cost $5 million.”

(Source: AKnews)

A French company began construction work on Tuesday on a $15 million luxury hotel in Nineveh’s Shallalat area, 10 km north of Mosul, according to AKnews.

The Investment Commission’s media spokesman told the agency that the 200-room hotel will be the first of its kind in the region.

“The implementation of the project comes after the contract was signed between the French firm and Nineveh province more than five months ago,” he said.

Set in 10,000 square meters of grounds, the luxury hotel will boast four restaurants, a permanent exhibition of French heritage, a large swimming pool and outdoor recreation areas.

The French company is to complete the project within 10 months.

(Source: AKnews)

The governor of Basra has laid the foundation stone for a new 120-room hotel in the city.

The new hotel, which will have 7 floors and will include two restaurants, will be built at a cost of $14 million [17 billion Iraqi dinars] on a site covering 3.5 acres.

According to the Basra Investment Commission, the project is being implemented by a Turkish company called Sadikoglu.

(Source: Basra Investment Commission)

Major U.S. hotel brands are moving into the north of Iraq, a reflection of growing economic development in the Kurdistan region of a country that most U.S. consumer brands have long avoided.

Marriott International signed agreements on Sunday with Empire Iraq to manage two new properties in Iraq’s Erbil. The agreements, signed at the newly inaugurated US Consulate in Erbil, cover a 200-room, upscale Marriott Hotels & Resorts-branded hotel and a 75-unit deluxe Marriott Executive Apartments property. Both are planned to open simultaneously in 2014.

That follows an announcement in May that Best Western International Inc. plans to open its first hotel in Erbil.

The three hotels are on pace to become the first U.S. hotel brands in modern-day Iraq. A Dubai-based hotel chain, Rotana, earlier opened in the city. Other hotel companies, such as Intercontinental Hotels Group, have said recently they would begin research on the region.

“Our view is that the commercial world is coming into Erbil,” said Ed Fuller, Marriott’s head of international lodging. “This is an emerging country.”

The interest comes as the turmoil in the Middle East and North Africa has presented the hotel industry big challenges. Marriott earlier this year closed its hotel in Libya due to unrest in the country. In Egypt, the company continues to operate seven hotels. Some expansion plans have slowed while others are moving ahead, Mr. Fuller said.

Two years ago, Mr. Fuller and other Marriott executives met in Baghdad with Gen. David Petraeus, who tried to encourage the chain to open a hotel. But he felt then “it was too early.”