Hotel investors, developers and operators are in early talks to enter Syria as the country rebuilds an economy devastated by civil war, attracts foreign investment, restores air links and signals that it is open for business.
Opportunities abound to develop the country's hospitality industry, but executives say they are assessing the associated risks as they seek indicators of long-term stability, pro-business policies and robust banking reforms.
Abu Dhabi-based hotel operator Rotana has received a high volume of calls from investors and developers about projects in Syria, Iraq and Lebanon, chief executive Philip Barnes told The National.
"All of these destinations are starting to come back to the forefront of people's minds because they make sense from an investment standpoint ... everybody, generally speaking, feels like things have stabilised and will continue to stabilise," he said. "All of these destinations are really ripe for development, ripe for new projects."
Syrian cities such as Damascus and Aleppo "are starting to bubble with interest" for hotel developers because they require infrastructure. "When you have these destinations coming back, you need hotels because you need a social centre and a business centre for the community – and the hotels become that. It's more than just a business proposition as a hotel," Mr Barnes said.
Rotana is "very much" interested in the Syrian market and is talking to hotel developers who want the Emirati company to manage those properties. Such projects typically take two to three years to complete, he added.
"If Syria opens up again, as it is now, Emiratis will be going there to do business and we need to be there," he said.
Syria’s President Ahmad Al Shara has been pushing to return the country to the global economic scene after its 13-year civil war. It has attracted about $28 billion in investment since the downfall of Bashar Al Assad's regime last year, Mr Al Shara told the Future Investment Initiative conference in Riyadh on Wednesday, as he offered "win-win” deals for the country to rebuild itself without relying on aid.
Mr Al Shara met with major international companies to discuss future investment opportunities during the event, state-run news agency Sana reported.
The meeting included Christopher Nassetta, president and chief executive of Hilton Worldwide Holdings, Sebastien Bazin, chairman and chief executive of Accor, and Eric Martel, chief executive of Canadian business jet maker Bombardier.
Hotels planning early
Accor is in talks with hotel developers regarding projects in Syria, Duncan O'Rourke, its chief executive for Middle East, Africa and Asia Pacific, told The National. "By 2030 to 2031, we want to have 10 to 15 hotels in Syria," he said. "We are talking with all the developers ... we want to be part of this journey."
Accor, which has 45 brands, sees potential in Syria. While the priority is typically to develop critical infrastructure such as hospitals and schools, hospitality will soon follow and discussions must start early, Mr O'Rourke added.
Demand will gradually build as some of the Syrian diaspora returns home, family and friends visit, and tourists arrive to explore the country's culture, history and cuisine. "You need to have air lift, infrastructure and security. Once that starts, hospitality will move very quickly," Mr O'Rourke said.
Hotels 'hand in glove' with airlines
A growing number of international airlines have resumed or started flights to Damascus, including Emirates, flydubai, Qatar Airways, Turkish Airlines and Saudi carriers flynas and flyadeal.
Syria's efforts to restore air travel and reconnect with the world offers further encouragement to the hospitality industry. Hospitality "goes hand in glove" with airline services and infrastructure development, Mr Barnes said.
"As soon as an airline decides they've got enough traffic to make it worthwhile for them to go to a destination, we need to be on there, jumping on that bandwagon, because that's indicative of growth," he said.
Mr O'Rourke noted that demand to visit Syria is likely to begin regionally from Dubai, Lebanon, Saudi Arabia and Turkey. With long-term stability, international travellers will follow, particularly from India and China, he added.
'Business-friendly' incentives
Hospitality executives are also seeking incentives that will make it easier to do business in the country. That wishlist includes repatriation of capital and profits out of the country, tax breaks, legal transparency, banking reforms, ease of issuing licensing permits and cutting red-tape to accelerate projects, they said.
Mr Barnes said there was a "very business-friendly" attitude in Syria as it transformed and opened its economy, which is crucial for its success. "If the government recognises the value of tourism, it's amazing the changes that will occur," he said, referring to the example of Saudi Arabia that has eased visa requirements, expanded airports and developed tourist attractions.
For Rotana, entering Syria is contingent on finding the right partners for long-term, multimillion-dollar projects, its chief executive said.
Risks remain
The prospect of high reward brings high risk and hospitality leaders are considering that balance carefully amid geopolitical uncertainty. "It's always a leap of faith, but you go in to these things with eyes wide open and a clear understanding of what you want to do," Mr Barnes said.
The UAE's support of Syria's economic development plans makes it easier for companies in the Emirates to enter the market and softens the risks. "If they're involved in the charge, then that gives us a tremendous amount of comfort," Mr Barnes said.
The timing of entry into the market is also crucial, with hotel executives seeking to move ahead of the pack rather than wait until the floodgates open, they added.
Being the "first-mover" in entering markets such as Syria is a "big advantage", Siegfried Nierhaus, vice president and head of development for Middle East, India & Africa at H World International, told The National. "We have been approached by developers, existing hotel owners and consultants ... who would like to look at the different parts of Syria," he said.
"We had discussions with third-party operators who are ready to take one of our branded hotels and manage them on site."
Mr Nierhaus said the biggest risks would be security and safety and the ability to repatriate profits out of the country.
10-year horizon
Hala Matar Choufany, president at HVS Middle East and Africa, a hospitality industry consulting firm, told The National that it has received " serious requests" from many investors looking at potential opportunities to expand in Syria. The inquiries have come from international communities with a "strategic political long-term view on collaboration" such as from the US, Turkey and the Gulf.
"Ultimately, with repositioning and redeveloping a destination, there ought to be a collaboration between governments," she said. "Rebuilding Syria will happen. Is there demand for hotel rooms? Absolutely."
Currently, investors are at an "exploring" stage. "I suspect in 2026, we're going to see more projects that will either break ground or become renovated, which will signal the right positive message to the wider community and it will rebuild," she added.
For a destination to regain its stability, from a hospitality point of view, it would require about five to 10 years to rebuild infrastructure, transport and airline connectivity, as well as to reform visa procedures, Ms Choufany said.
