Action Hotels to open third hotel in Kuwait for 2017

29th May 2014 09:40

AIM-listed Hotel developer Action Hotel announced plans to open its third hotel in Kuwait worth $12.3m.The new 160-room hotel, which is being built in the business district of Kuwait, Sharq, is part of a new addition to the group's existing pipeline of hotels in the Middle East and Australia. The firm has secured a prime plot of land and is currently in "advanced discussions" with a leading hotel operator to target the midrange sector of the market. The new hotel is expected to be opened in 2017.The group, which floated on AIM in December, announced last month its maiden results were encouraging with revenues and earnings on the up. The company saw an increase in its average daily rate by 5.8% to $105 and revenue per available room up 8.9%.Chief Executive Officer Alain Debare said: "We are very excited about the prospect of developing another branded hotel in Kuwait. "We have secured an excellent plot of commercial land that is in a prime location within the growing business district of Kuwait City. "Obviously this is a country that we know well having completed two hotels that are performing ahead of our expectations to date." As of 11:11 the share price had risen 2.26% to 66p.WS