FDI: Movenpick to invest $30m in Pakistan

Published: February 7, 2014
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The new management says they value the 32-year legacy of this hotel. The renovation plan will usher in a new and exciting phase. PHOTO: FILE

The new management says they value the 32-year legacy of this hotel. The renovation plan will usher in a new and exciting phase. PHOTO: FILE

KARACHI: 

Undeterred by lawlessness, crime and terrorism in the city, Mövenpick Hotels and Resorts is going to invest up to $30 million in the next few years to renovate its Karachi property.

The 407-room building located in the city’s pricey business district was known as Sheraton Hotel as recently as January 1. But Arabian Sea Enterprises (ASE), a Kuwait-based company that owns the building, decided not to renew its contract with Starwood Hotel and Resorts Worldwide, which is an American firm that manages Sheraton hotels globally.

Subsequently, ASE signed a deal with Mövenpick Hotels and Resorts, an international hotel chain based in Switzerland, which is set to spend well over Rs3.1 billion in the next few years to renovate the structure.

The announcement was made at a press conference addressed by Andreas Matmüller, who serves as chief operating officer for the Middle East and Asia operations of Mövenpick Hotels and Resorts, along with ASE CEO Sikander Mahmood and Mirza Mansoor Ahmad, the hotel’s general manager.

“We understand the 32-year legacy of this hotel. The renovation plan will usher in a new and exciting phase of the hotel and add value to the service and product quality while preserving the soul of the property,” said Matmüller.

“These are exciting times for Mövenpick Hotels and Resorts and we look forward to building on our reputation of quality, reliability and care with a personal touch in Pakistan,” he noted, adding the company plans to set up new hotels in other Pakistani cities, including Lahore, in the future.

The renovation of the property will be undertaken in phases, he said, with the first phase to start immediately. This includes renovation of the ground floor, entry points, restaurants and public areas. However, the hotel will not be closed for renovation at any point in time, he said.

The several stages of the refurbishment will overlap over the next two years and cover almost 100% of the hotel, thus giving it a new look. “The renovation of the hotel’s suites and rooms, mezzanine level restaurants, meeting rooms, the ballroom, the makeover of the building facade and landscaping are part of the project,” he said.

Replying to a question, the hotel’s general manager said there have been no layoffs since the management change one month ago. “We’re continuing with the same team and the turnover has been very, very low,” he said.

 photo AndreasMatmuumlller_zps1ee54dd4.jpgPublished in The Express Tribune, February 7th, 2014.

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Reader Comments (16)

  • AS
    Feb 7, 2014 - 2:10AM

    This somehow refreshed the Hyatt story opposite to both Sheraton and PC? Any one who can recall…?

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  • Shafaq
    Feb 7, 2014 - 9:08AM

    Movenpick icecream should be served as complimentary with every course meal.

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  • Sadaf Saleem
    Feb 7, 2014 - 9:49AM

    The plan for investment sounds good but the number of tourist arrivals to the country has barely inched up. Many airlines have also suspended their operations in the country. So, if the conditions prevailing in the country will not improve, these hotels will only be exclusively utilized by either domestic travelers only…. be it corporations or else.

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  • Mohd tarekh
    Feb 7, 2014 - 9:53AM

    Look at the building even our 2 star in Somalia/Syria is better than this……..Recommend

  • Feb 7, 2014 - 10:16AM

    USD 3 million is nothing for this multinational. It may be big for us but for these global corporations it is peanuts. Sheraton is a name and attracted attention. Movenpick…….we normally knew as an ice cream, which is scarce nowadays.
    The saga of Hyatt regency is truly pathetic and sad. The incomplete structure is an eyesore for Karachi’s business district. This subsequently came into private ownership of AKD during the PMship of Shaukat Aziz on which a commodities exchange or something similar was to be built. As we all know that anything and everything will be done to downgrade Karachi; the brains and soul of pakistan. Salams

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  • usman786
    Feb 7, 2014 - 11:40AM

    Tourism is pretty bad in country. Once I saw that a black family was boarding to Isb from Doha, I was surprised that atleast some kala gora is going to my country. But later we learnt that he was in wrong que.

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  • Shahzad
    Feb 7, 2014 - 2:38PM

    Hi Every one its so good to hear Movenpick like a good hotel they come to open a hotel in Pakistan. well as for as a Pakistan concern there is some problem in the some cities and they can open the new hotel in like Islamabad , Lahore , northern areas like NWFP i don’t no why we don’t have a intercontinental hotel in Pakistan we have to promote and welcome to these all world chain companies like Sheraton, Intercontinental hotels group, jumeriah Group , Novatil n Accor hotel group and when we have these all companies working in the Pakistan so we will have a big competition and our country will grow up also and we will get more jobs then our youngster they no need to go to overseas for work if they will get a good salary in Pakistan I will pray to Allah. it will come true InshAllah. Recommend

  • Nida Alvi
    Feb 7, 2014 - 3:23PM

    This is certainly a good news for Pakistan and a response to the pseudo-intellectual haters who had started spewing venom on Sheraton’s exit http://tribune.com.pk/story/600889/hotel-chains-sheraton-exits-as-karachi-loses-its-sparkle/
    Pakistan is indeed one of the most attractive destinations for FDI from the world.

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  • omair shahid
    Feb 7, 2014 - 5:25PM

    @Mohd tarekh:
    yes the building is older but the rooms & services are up to the standard of 5 stars

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  • Pakistani
    Feb 7, 2014 - 6:50PM

    @Mohd tarekh:
    Get a job man…you don’t have to comment on every Pakistan related news.

    Recommend

  • Pakistani
    Feb 7, 2014 - 6:52PM

    @the Skunk:
    It’s not 3 million USD it is 30 million USD(about RS.3 Billion), pretty decent amount.

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  • ria
    Feb 7, 2014 - 10:40PM

    finally my pakStan shining…. inshallah with this investment mah pakStan becames superpower :)Recommend

  • Noman.S
    Feb 8, 2014 - 12:17AM

    Mövenpick can open two more boutique style, relatively small motels in other parts of Karachi…like in DHA phase VIII(8), around the golf course and in Clifton area, with conference, meetings, and exhibition areas. It will do good business.

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  • Dr. Asad Sadick, Germany
    Feb 8, 2014 - 12:27AM

    Instead of continuing with this hotel where there is hardly any sign of improvement in foreign investments and tourists, Mövenpick should look into other areas. Hotel business is a dead business in Pakistan especially in Karachi. Turn it into a State-of-the-Art Hospital for poor patients who cannot afford expensive and latest treatment. The Swiss government and people will eagerly help and make it into no win, no lose venture, instead of a loss loss thing as a hotel with hardly any occupancy. Gruezi Wohl !

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  • M.Khalid
    Feb 8, 2014 - 2:58PM

    @Dr. Asad Sadick, Germany:
    It is not that bad. Now they cater mostly to business meetings, conferences, weddings and brand activation, different events. With occasional foreign tourists. Business men visiting from Lahore or elsewhere also stays in the same hotel/vicinity where the event takes place.

    http://www.tripadvisor.com/HotelReview-g295414-d600084-Reviews-AvariTowersKarachi-KarachiSindh_Province.html#REVIEWS

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  • Afrid
    Feb 8, 2014 - 5:33PM

    @ria
    Someone wrote well about educated illiterates. Thanx to ppl like you no wonder we are moving at a slow pace. And why does ET allow non sensicle statements?

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