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ADNH, Compass set up joint firm

posted on 03/03/2001: 929 views

The Abu Dhabi National Hotels Co. (ADNH) and Compass Group Plc. have announced the establishment of a joint venture company called ADNH-Compass Middle East, which is expected to significantly help Compass enhance its presence in the UAE, while helping ADNH to gain a foothold in the Middle Eastern markets.

The new company, which is being formed by merging the operations of Compass Group Middle East with the catering division of ADNH, is expected to become a leading food service provider in the region, offering food service management in a wide number of sectors, including aviation, retail, defence, education, health care, oil and gas (onshore and offshore), shipping, leisure, business and industry, prisons, etc., according to reports in the UAE's dailies.

According to Khalifa Nasser bin Huwaileel Al Mansouri, Chairman, ADNH, the Middle Eastern food market is estimated to be worth in excess of 1.3 billion US dollars and is comparatively under-penetrated, with only 30 per cent of it actually contracted by food service operators. He expected the Joint Venture (JV) to net an annual revenue of Dh400 million, which would amount to a Dh80 million profit, and a growth rate of 15 per cent annually. He pointed out that the ADNH had an eye on the Gulf and Middle Eastern markets, and would use the Compass infrastructure and facilities to penetrate markets like Saudi Arabia, Egypt, Jordan, etc. He also expected the new company to target airlines, as inflight catering formed an important part of the existing ADNH operations. He said that the first major project of the JV would be its investment in the entire food court of Abu Dhabi's Marina Hall, which is slated to open in April 2001.

ADNH Compass will be chaired by Mansoori, and managed by Jerome Marrel, CEO, who was previously Compass Group Regional Vice President (Middle East, Asia & India). Estimating the worth of the UAE food market at approximately 230 million dollars, Michael Bailey, Group Chief Executive, Compass Group, pointed out that Compass was hoping to use the contacts and vast experience of ADNH to enhance its business interests in the UAE. Bailey said that the company, whose revenue for the last annual year amounted to 12 billion dollars, had 250,000 employees worldwide, and covered every aspect of food service, with dedicated personnel to cater to educational establishments. (The Emirates News Agency, WAM)


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