Preferred Hotels & Resorts has welcomed Dubai’s Habtoor Palace Hotel 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 Habtoor Palace Hotel, Rai detailed the significance of the Preferred Travel Group (PTG) brand architecture, emphasising, “It’s called travel for a purpose, not hotel. 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, PTG 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 four pillars 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 Habtoor Palace now belongs, represents the ultra-luxury tier with about 100 hotels. It includes renowned names such as the Baccarat New York, Montage Hotels in the United States, The Alpina Gstaad, and the Leela Palaces in India. “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 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 programs, distribution, PR, revenue management, and quality assurance. “This is precisely where we step in. Preferred bridges that gap, providing independent brands like Habtoor Palace Hotel with the infrastructure to compete globally.”

In the Middle East, Preferred Hotels & Resorts operates across various collections beyond the Legend Collection, including LVX, 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 LVX Collection property in Dubai.”

The Saudi market is a focal point, with ongoing discussions involving PIF-backed hotel projects, while the UAE remains an area of strategic importance. Rai mentioned partnerships with brands like Montage and Wynn, whose new hotels in Diriyah Gate and Ras Al Khaimah are set to expand Preferred’s presence in the region.

When asked about Preferred Hotels & Resorts’ connection with the travel trade, Saurabh Rai emphasized 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, not left solely to individual hotels. Instead, we act as coaches and collaborators, helping hotels maximise these partnerships effectively.”

Rai acknowledged that, despite the rise of OTAs and other digital tools, travel partners have proven their relevance, particularly with the resurgence in travel post-COVID. “Travel partners have delivered record numbers in recent years,” he noted, highlighting how Preferred differentiates itself with a dedicated, on-the-ground team of over 35 sales offices and more than 120 sales representatives worldwide. “Their mission is to manage and optimize relationships with trade partners across corporate, leisure, and group sectors, each handled separately and strategically.”

To strengthen these connections, Preferred organises more than 300 trade shows, roadshows, and events annually, creating platforms where partner hotels can engage with the travel trade. For example, a London leisure roadshow connects hotels with luxury agencies like Virtuoso, while a New York corporate trade show provides opportunities to meet heads of travel management for top Fortune 500 companies. “Whether it’s a corporate-focused event in New York or a group business workshop in Singapore, we ensure that our relationships with partners are structured, deliberate, and effective,” Rai said.  -TradeArabia News Service