IRAQ | Hospitality Sector

[elusive]

lol take a look at the photos i posted, all the interiors have been renovated plus the 400 rooms, the courtyard, exterior, new escalators, new furniture...i believe it all adds up

[sheytanElKebir]

Yes, I know it incudes the rest of the renovation in the price.

but if they got the exterior so wrong using the cheapest blue tinted windows from china... I think it sets up the set for what to expect on the inside...

all for $55M... jesus christ. works out to a renovation cost of $137,500 per room with no noticable structural work!

that is a bargain and a half!

[elusive]

its probably 55 million dinars since it was undertaken by a local firm after all although $42K is hardly enough to renovate a whole hotel?

[MKTJ]

Originally Posted by sheytanElKebir

NOOO! those tinted windows look horrible and cheap! like an apartment block for indians in Sharjah! they ruined it! idiots.

[sheytanElKebir]

al right.

so lets take the economic aspect of a $55M renovation.

at $137.5k per room, over an amortisation of 5 years, and lets assume no debt so no interest (i am being generous!), and I will be even more generous and say that the "cost" of the building and land is valued at $0! yes lets value the existing infrastructure as $0!

then, being generous again, give it an occupancy rate of 80% THROUGHOUT the year! wow! very very optimistic of me.

and then the Operational Expenditure per lent room at $30/night. once again being generous and optimistic!


occupancy 350 days * 80% = 280 days of occupancy per room.

over 5 years. that gives = 280*5 = 1400 occupancy days over 5 years.

so for every night you need to charge customers = 137500 / 1400 = for the renovation cost!

that's $100 per night just for the renovation cost per average room.

add $30 for opex.

$130 per night per room... before even beginning to think about any "safety margin" or profit.

this means you won't turn a profit until you charge $200 / room.

all of the above assuming the price of the building is $0, no interst to pay on any loans.

[BigDreamer]

they'll charge much more than 200/room. (you're assuming all room types are the same).

Also they would probably earn revenue from conferences, banquet hall (weddings), gym memberships, etc like a typical 5 star hotel I'd assume.. but if anyone actually been there, feel free to correct me

[sheytanElKebir]

and we're also assuming 80% occupancy average, and included no cost for the building itself... etc...

if the renovation was "normal" i.e. cost about $20M, then suddenly their profit point would be $130... much more achievable aim.

but i guess if they're too expensive, it will give other hoteliers a chance to come into the market so we see more hotels built in basra (of course they don't have the luxury of free land and building).

[elusive]

amusement park in Zawraa in Baghdad:









Baghdad zoo:

[elusive]

new restaurants in Baghdad:

[baghdad_sara]

Loving the exterior of the first two restuarants

[elusive]

more restaurants

MAZAYA in mansour:

[elusive]

khan murjan after it became a restaurant:



image hosted on flickr








banquet at the iraqi hunting club:

[BigDreamer]

awesome pics elusive

The restaurant scene sure is growing pretty fast in Baghdad.. some of them look to be high quality I love that last pic, very authentic place to dine in

[elusive]

well they provide safe havens for families to enjoy themselves so im not surprised that the restaurant businesses are flourishing!

[elusive]

Sheraton Hotel inaugurated in Basra

Sunday, September 19th 2010 2:31 PM

Basra, Sept. 19 (AKnews) – Basra Sheraton Hotel was opened on Saturday in the southern Iraqi province amid a large presence of people.

But the company in charge of building the hotel has run into problems with the tourism board in Basra because the project was not completed on time on Aug. 15.

The general supervisor of Summar Company, Sara Ahmed told AKnews "in spite of the difficulties that have faced the construction of the hotel, it was done on time and will start from tomorrow to receive guests. The final cost of the project has amounted to $55.8 million and as is the case with the huge projects, it had faced some legal problems."

On his part, the director of the Investment Board of Basra, Ali Fadhil confirmed “that opening the Sheraton Hotel is one of the most important factors in attracting investors to the province. It covers the hotel services that are lacking in the province and shows the city's heritage through the renovation of the hotel."

Basra’s governor, Sheltag Abboud, praised "the big role and effort by the companies from Kurdistan such as Summar Company.”

He said he will work to resolve the legal issues between Summar and the tourism board. , which has become a reality because of that masterpiece presented to us today and we promise to end the legal issue related to the hotel quickly. "

Summar started renovating the hotel in early 2010.

The hotel has more than 200 rooms and a large conference hall that can accommodate up to 1,000 people and a number of restaurants. It is the biggest and most luxurious hotel in Basra, 550 kilometers south of Baghdad.

Basra province is the major center of oil production in Iraq.

Reported by Noor Tamemi

(Source AKnews)

[elusive]

The Rotana Hotel, Erbil which is set to open early next month:

[wasta]

this is the first time i visit this section of the website, really interesting. Sheytan were are you dude, we wnt more news from you

[elusive]

Originally Posted by wasta

this is the first time i visit this section of the website, really interesting. Sheytan were are you dude, we wnt more news from you

thanks wasta...hope you can contribute with some more hospitality pics

[wasta]

i will be going to Iraq next yr, trust me i will be taking loads of pics inshalla

[baghdad_sara]

Here is a video on Zawraa park