Expo 2020 Dubai will accelerate growth of GCC hospitality sector

Sajjad Ahmad, Gulf Today

The hospitality sector in the GCC is growing rapidly and the industry is expected to get more acceleration as the Expo 2020 Dubai is coming closer day by day. More hotels and restaurants are in the pipeline to meet the rising demand in the sector, said Antonio Gonzalez, Chief Executive Officer of Sunset Hospitality Group during a roundtable meeting in Dubai.

Sunset Hospitality Group, a leading hospitality investment and management group, has revealed its aggressive expansion plans for Q3 and Q4 2019. Great focus will be placed on its Middle East operations, while also entering new markets such as the UK. Sunset Hospitality Group plans to open eight new outlets before the end of the year, taking its current portfolio of 16 venues up to 24.

Founded in 2011, Sunset Hospitality Group is known for bringing global dining concepts into the Middle East and Europe, including New York City’s famous Black Tap Craft Burgers & Shakes. The group currently operates 13 dining venues, two beach clubs and one nightlife spot across Dubai, Abu Dhabi, Kuwait, Bahrain and Geneva.

Sunset Hospitality Group reported a solid business performance in the second quarter of 2019, with a considerable sustained growth compared to the same period in 2018, driven by the continued momentum across all divisions and brands.

Antonio Gonzalez, Chief Executive Officer of Sunset Hospitality Group comments: “Sunset Hospitality Group has shown robust growth across all divisions driven by excellent operational efficiency and focused efforts on customer satisfaction. We are on the right business path, and we will continue to accelerate our expansion across the Middle East to further solidify our presence. At the same time, our aim is to enter new markets such as the UK, with one outlet opening in 2019 and an additional two in 2020, as well as Central Europe, following the success of our first opening in Switzerland.”

He added, “The Kingdom of Saudi Arabia tops our list when looking at Middle East expansion plans. With 29 million residents and an annual potential growth rate of 3.3%, Saudi Arabia has the largest population in the GCC and is a great market to tap into, particularly its youth population who continue to become increasingly open to Western consumer trends.”

He said that food and beverages sector in the UAE and Saudi Arabia has witnessed more than 5 per cent and 10 per cent growth respectively last year.

According to the Saudi Arabia General Investment Authority (SAGIA), the Kingdom is expected to see around $59 billion worth of investment in its food industry by 2021. “We see huge untapped potential for this market, so we need to properly position ourselves to cater to the demands of Saudi based consumers and attract a bigger share of this sector,” added Gonzalez.

In the second half of 2019 Sunset Hospitality Group is taking the Black Tap brand to Riyadh and Jeddah in KSA, and a further outlet to Erbil, Iraq. Greek Restaurant Ammos and Azure Beach Club, currently operating at Rixos Premium JBR Dubai, will both see second locations opening in the region, while Bahrain will welcome the acclaimed STAGE nightclub.

The Group also plans to enter the UK in 2019, with the Q4 opening of Sweet Chick in Central London. Gonzalez comments: “Consumer trends in the UK are being driven by the younger age groups who eat out most frequently and Sunset Hospitality Group’s concept of informal and dining will cater to this segment.”

While the current focus is on international expansion, in October 2019, Sunset Hospitality Group will launch its latest concept Mood - Rooftop Lounge, in Dubai. The Group is still eyeing the UAE market for further expansion and has plans to introduce new brands as well as open additional outlets in 2020.

He said, “ the group is looking forward to enter the African market in the future with focus on Egypt and Morocco.”

About the impact of US-China trade war on the industry, he said, “ I think stability is good for business, I do not see an immediate impact on our industry. The wise leadership of the UAE is very supportive to businesses as the country is a hub for businesses. This market is growing because the fundamentals are right. In the UAE we see very high demand and the Expo 2020 will boost every sector of the economy.”

Founded in 2011, Sunset Hospitality Group is a hospitality investment and management company with a proven record of success in delivering high quality concepts, with unique style and service-focused culture. With a commitment to innovation and quality, the Group has developed new pioneering concepts, as well as partnered with acclaimed multinational brands, creating unique experiences around the world, such Black Tap, Luigia, Sweet Chick, Joe’s Backyard, Ammos, L’Occitane Café, Azure Beach, DRIFT Beach and STAGE.