RIU Acquires Second Hotel in Tanzania to Be Marketed Under Riu Palace Brand

Tanzania, Unguja. August 20, 2019

RIU Hotels & Resorts has acquired its second hotel in Tanzania, to accompany the other one the chain already has in the country. This new property will be marketed as part of the sophisticated Riu Palace range, as Riu Palace Zanzibar already is.

The new hotel is located in the Nungwi Beach area and it has all the facilities needed to enjoy this paradise destination. It sits on a spectacular white-sand beach with crystalline waters, at the far north of Unguja, the main island of the Zanzibar archipelago, at a little over an hour by car from the airport and the capital city.

Its 149 rooms are five-star rated and they offer maximum luxury under the Riu Palace brand. The hotel has 24-hour all-inclusive service, free WiFi and a spectacular restaurant over the sea where guests can enjoy the local cuisine.

As well as this new hotel, RIU has also acquired five hectares of land where it plans to build a third hotel on the island. The total investment of this purchase amounts to 56 million dollars. With this new project, RIU reaffirms its commitment to the African continent as a new tourist destination with which it expands its range of sun and beach hotels, following its announcement in June of the purchase of a site in Senegal. With this new establishment, the chain now has possession of a total of seven hotels (five in Cape Verde and two in Tanzania), in addition to the five in Morocco.

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Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.