Action Hotels is recognized as an active hotel company in the Middle East and is committed to sustained growth, both by investing in owned estate and by developing strategic relationships with carefully-chosen partners. We focus on the development of a portfolio of high quality economy and mid-scale hotels, offering excellent service and value and delivering superior returns to our owners and shareholders.
Our current development pipeline contains properties which are both exciting and filled with potential as we aim to significantly enhance our portfolio and expand our presence in existing markets as well as growing new markets. These properties are scheduled to add approximately 1,332 additional rooms to the portfolio by 2017.
Our business model accommodates a range of structures as described below:
We wholly own most of our hotels. This model is capital intensive, but owning the underlying assets enables us to capitalize on any increase in property values and to develop flagship hotels in key locations.
We are actively looking to expand through operating leases, as it requires less capital expenditure, enables faster growth and allows us to retain control over the assets. The need for upfront capital investment is eliminated with this model, making it the preferred structure for institutional investors.
We have a controlling interest in most of our current development projects.
The company will invest in an asset when it believes value can be created. Value creation is normally achieved by a combination of factors involving rebranding of the hotel, repositioning the product through capital expenditure and by improving the management and profitability.