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
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.
Published in The Express Tribune, February 7th, 2014.Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (16)
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@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?
@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
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 !
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.
@the Skunk: It's not 3 million USD it is 30 million USD(about RS.3 Billion), pretty decent amount.
@Mohd tarekh: Get a job man...you don't have to comment on every Pakistan related news.
@Mohd tarekh: yes the building is older but the rooms & services are up to the standard of 5 stars
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.
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.
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
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.
Movenpick icecream should be served as complimentary with every course meal.
This somehow refreshed the Hyatt story opposite to both Sheraton and PC? Any one who can recall...?