Expanding horizons

Preferred Hotels & Resorts has welcomed Dubai’s Al Habtoor Palace into its prestigious Legend Collection, solidifying its standing as the only property in Dubai to join this elite grouping. TTN’s Kim Thomson recently sat down with Saurabh Rai, Executive Vice President of Preferred Hotels & Resorts, to discuss this new partnership and the strategic vision for the brand’s regional expansion.

At the opulent Al Habtoor Palace, Rai detailed the significance of Preferred Hotels & Resorts’ parent company, Preferred Travel Group, and its brand architecture, emphasising “Travel, rather than hotel, is in our company name for a purpose. Our model extends beyond just hotels and resorts; it encompasses the broader realms of hospitality, sustainability, and destination representation, as well as hotel-level consulting.”

As an example, Preferred Travel Group’s consulting division, PTG Consulting, currently represents Saudi Arabia as a destination across North America. The group’s versatile business structure allows them to provide comprehensive support not only to luxury hotels but also to tourism boards and destinations seeking international recognition.

The group’s five brands include Preferred Hotels & Resorts, the flagship brand; Beyond Green, focused on sustainable tourism; Historic Hotels of America and Historic Hotels Worldwide, dedicated to heritage properties; and PTG Consulting, which supports both destination and hotel-level management.

The extensive Preferred Hotels & Resorts portfolio, comprising over 600 properties across 80 countries, is divided into four collections distinguished by guest experience rather than price. The Legend Collection, to which Al Habtoor Palace now belongs, represents the ultra-luxury tier with more than 100 hotels. It includes renowned names such as the Baccarat Hotel New York, The Beaumont in London, The Alpina Gstaad in Switzerland, Grand Hotel Tremezzo in Italy. “These hotels,” Rai emphasised, “are destinations unto themselves, offering guests an unparalleled luxury experience.”

Reflecting on the competitive landscape, Rai noted that the evolution of the independent hotel segment has drawn new players, including large hotel chains with soft-brand collections and tech-driven hospitality firms. “Where once we shared space with niche brands like Leading Hotels of the World or Design Hotels, now tech companies such as Sabre Hospitality and Amadeus are competing for the same clientele.”

He added that the rise of soft-brand collections from Marriott, Hilton, and Hyatt indicates the growing recognition of the independent hotel sector’s power, especially for hotel owners who prioritize brand autonomy but require robust global infrastructure in sales, marketing, loyalty programs, and revenue management.

“When you step back and look at it, this offers a strong validation of what we’ve championed all along. If you’re an owner with a long-term interest in building and operating a high-quality, independent brand, Preferred Hotels & Resorts provides the essential global infrastructure you need to compete at the level of a major brand.”

He explained that while many independent hotel owners invest heavily in design, service and operational excellence, what they often lack is access to the scale of international infrastructure for sales, marketing, loyalty programmes, distribution, PR, revenue management, and quality assurance. “This is precisely where we step in. Preferred Hotels & Resorts bridges that gap, providing independent brands like Al Habtoor Palace with the infrastructure to compete globally.”

In the Middle East, Preferred Hotels & Resorts operates across various collections beyond the Legend Collection, including L.V.X., Lifestyle and Preferred Residences. The Dusit Hotels in Dubai, Abu Dhabi, Doha, and Cairo, for example, fall under the Lifestyle Collection, while the Vivienda brand in Saudi Arabia represents the luxury villa concept with five properties in Riyadh and one in Jeddah. Rai highlighted the group’s long-term approach to the region, explaining, “Our development approach is highly strategic. We carefully monitor each market and adapt our strategy according to demand and the potential for independent hotel partnerships.”

For Preferred Hotels & Resorts, market expansion hinges on two factors: demand in strategic locations and the presence of aligned, high-quality independent hotels. Rai acknowledged the challenges for guests in distinguishing between the offerings of major hotel brands, emphasising that Preferred’s distinct approach provides value to property owners who want their assets to stand out on an international scale. “Once we identify a suitable market and an independent hotel of the right caliber, we establish a partnership. In the UAE, for example, we are in active discussions to expand our presence in Abu Dhabi and to introduce an L.V.X. Collection property in Dubai.”

When asked about Preferred Hotels & Resorts’ connection with the travel trade, Saurabh Rai emphasised the company’s commitment to fostering close, collaborative relationships with travel partners. “We value our partnerships in the travel industry tremendously,” he explained. “We are committed to recognizing and engaging with our travel partners by segment. This is a structured, guided approach.”