Ronen Nissenbaum is President and CEO of Dan Hotels. With extensive previous experience including working with Hilton, The Plaza Group, Marina Bay Sands, InterContinental Hotels & Resorts, Forte Hotels, Disneyland® Resort Paris and the Strand Palace Hotel and Hotel Russel in London, UK, Ronen is an industry expert who joins the line-up of speakers at the Israel Hotel Investment Summit. We’re delighted that Ronen will be delivering the opening keynote speech: “Between Luxury and Innovation” and sharing the company’s story, what has happened in the past year since he joined and introducing some Dan Hotels’ recently-launched hotel concepts.
As we approach the end of 2019, how has business been this year at Dan Hotels?
2019 is now ¾ behind us and we will experience a significant growth in our same comp hotels, our catering business with an additional benefit coming from our newly purchased hotels which came on line between March and May. Double digit growth in revenues, Ebitda and net profits.
What are the main trends you are seeing within the Israeli hotel market in terms of supply, demand and development opportunities?
Demand has been growing with incoming Tourists seeing another record year and expected to hit 4.5 Million as opposed to 4.1 Million entries. Israel has been stable in 2019. As traditional hotel supply has grown and alternative accommodation options increase, the impact of the additional demand is absorbed for the majority by this additional supply. The impact depends on the location and level of hotels.
Sustainable development is creeping further up the agenda for operators and investors. What observations have you noticed in this area?
There is no doubt that sustainable growth and development is far more prevalent today than 10 or 15 years ago. Existing hotels are updating and upgrading equipment to reduce the carbon footprint and consequently reduce overall costs. For new developments, sustainability is a key factor when designing new properties.
Dan Hotels have recently signed a management agreement with Silverock Group to operate the Modani spa resort located just north of Netanya in central Israel. What can you tell us about this exciting new project?
I will leave most of the information for the keynote speech but I can tell you that the majority of the deals that have been signed in Israel over the past decade or so are not Management Agreements. They are either leases, leases with upsides, joint ventures, some hybrid combination or outright purchases. An owner that has a strong conviction in their project, would be better served to maintain the upside that a management agreement provides.
Dan Hotels recently expanded overseas with the development and opening of the Den Hotel in Bangalore in India. Do you have further development plans outside Israel?
Yes, we are currently reviewing multiple opportunities. It is too early in the process to provide any further detail.
What is it important for the hospitality community to gather at events such as IHIS?
Communicating industry trends as well as the local ramifications is important but networking with potential partners is another main reason I look forward to these type of events.
Ronen will be speaking on the CEO Opening Keynote: “Between Luxury and Innovation” which takes place on Thursday 21st November at 9:45am during the Israel Hotel Investment Summit being held at the Hilton Tel Aviv on the 20th and 21st November 2019.