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RAK is making itself known for groundbreaking announcements. Among the crescendo of developments in the emirate, all eyes are currently eagerly fixed on the anticipated arrival of the $3.9 billion Wynn Al Marjan Island resort, slated to open in 2027. Perched on an artificial island—which took over nine years to develop since its inception in 2004—the resort is being spearheaded by local partners Marjan and RAKHH and has already made history as the first establishment in the U.A.E. to secure a regulatory casino license, adding a new dimension of allure to the region’s hospitality landscape.

Marking Las Vegas-based developer Wynn Resorts’ first foray in the MENA region and its first-ever beachfront property, the integrated casino resort with 1,500 keys promises shopping, a gaming area, an event center, wellness and spa facilities, 24 dining and lounge experiences, and extensive entertainment options. “The Wynn Integrated Resort Development on Marjan Island will not only elevate RAK’s global appeal but also catalyze further investment opportunities,” anticipates Alison Grinnell, CEO of RAK Hospitality Holding (RAKHH).

About an hour’s drive from Downtown Dubai, RAK is known for its ceramics and mountains. But the arrival of a luxury opulent casino resort aligns with Grinnell’s mission to redefine the world’s perception of the emirate. Established in 2014, the corporation is a subsidiary of the Investment and Development Office of RAK and is behind renowned brands such as Rixos Bab Al Bahr on Al Marjan Island, Hilton Garden Inn at The Creek, Hilton Beach Resort, and The Ritz Carlton in Al Wadi Desert Conservation Area.

The company’s recent milestones paint a vivid picture of its trajectory. In 2023 alone, RAKHH’s hotel portfolio witnessed a series of landmark achievements. The launch of the Signature Villas at Ritz Carlton, introducing a unique product to the U.A.E. market, and the strategic rebranding of Marjan Island Resort to Pullman Resort. Moreover, Stirling Hospitality Advisors, under RAKHH’s umbrella, achieved a 17% EBITDA growth in their asset-managed hotels, while RAK National Hotels and Stirling Hospitality Advisors both experienced circa 26% growth.

The positive figures extend to RAK’s holistic performance. The Ras Al Khaimah Tourism Development Authority (RAKTDA) declared 2023 to be the most successful year in tourism for the emirate, with a record-breaking 1.22 million overnight arrivals. This marked an 8% rise from the previous year, driven by a 24% surge in international visitors. From 2022 to 2023, RAK witnessed a 20% jump in its hotel occupancy rate—the highest among any emirate in the country. In comparison, neighboring emirates Dubai and Abu Dhabi recorded a 6.4% and 4.2% growth rate, respectively.

According to data by on-demand chauffeur service Blacklane Middle East, RAK ranks as its third-largest operating emirate in the U.A.E., behind Dubai and Abu Dhabi. The premium transportation application has already witnessed approximately 50% growth in demand for rides to RAK in 2024. “We've observed a steady rise in demand for rides to RAK, driven by both domestic and international travelers seeking relaxation and luxury experiences, ” reveals Nicolas Soucaille, General Manager of Blacklane Middle East. “The emirate’s natural beauty and eco-tourism appeal have been enhanced further with the introduction of new developments and luxury hotels on Al Marjan Island.”

RAK’s appeal has continued to expand with the announcement of several new hospitality projects, including Le Meridien, W Hotels, JW Marriott, Hilton, Nikki Beach, and more niche brands like Nobu. “Despite being the country’s fourth largest emirate with an estimated population of 0.4 million, RAK has always been a strong staycation market, and whilst this obviously peaked during the pandemic, it remains healthy today, and we don’t see that changing going forward,” reflects Grinnell. Nevertheless, the CEO reveals how the company has recorded a strong resurgence in the global market in recent years.

In 2023, RAK’s top five international source markets were Russia (31.3%), Kazakhstan (9.8%), the U.K. (7.8%), Germany (5.1%), and India (4.7%), according to RAKTDA. The data indicates a 50-50 split between 2023 domestic and international visitor arrivals for RAK, underscoring the growing interest in the emirate from overseas travelers. “No longer is every visitor to RAK coming to lie on the beach; now there’s interest and options to camp, hike, stay in a luxurious property, and discover the desert,” she explains. “The demographic will change between properties and location—and that is really the beauty of the emirate and what is working well for us.”

Still, RAK’s allure extends beyond its scenic vistas and luxurious accommodations; it’s a strategic investment destination drawing attention from global players. In April, U.S.-based Statevolt announced a $3.2 billion state-of-the-art battery cell gigafactory in RAK. The energy storage project is expected to produce an annual capacity of up to 40GWh upon completion. Additionally, London-listed real estate developer Dar Global has joined forces with Aston Martin to develop a beachfront residential community on Al Marjan Island, which has a development value of $250 million. The partnership will mark the British luxury automaker’s first real estate collaboration in the GCC. “Strategic location with a robust and diversified economy along with investor-friendly regulations and luxurious residential and hospitality properties with great ROI have all contributed to making RAK highly covetable within the region’s dynamic real estate market,” explains Arch. Abdulla Al Abdouli, CEO of Marjan. “With the government committed to enhancing the emirate’s appeal as an investment hub, RAK’s booming hospitality and tourism sector offers many lessons for other regions hoping to replicate its success.” With the imminent opening of the Wynn Al Marjan Island resort, Grinnell projects a new wave of investments, further cementing RAK’s status as a thriving economic hub.

In addition to its tourism prowess, RAK has also cemented its status as a global hub for business and social events. In 2023, RAK witnessed 23% growth in its Meetings, Incentives, Conferences, and Exhibitions (MICE) revenue and 103% increase in revenue from weddings. A series of high-profile events were also held in RAK last year, including the 2023 WMF Minifootball World Cup, DP World Tour, RAK Half Marathon, Arab Aviation Summit, Exotic Wedding Planning Conference, and the Global Citizen Forum. On the business activity front, RAKTDA reported a 10% increase in the total capital of valid business licenses issued in 2023, hitting $2.12 billion (AED 7.8 billion).

Grinnell’s career trajectory mirrors RAK’s narrative of transformation and growth. After graduating from Loughborough University in Economics in 1994, she began her professional journey as a chartered accountant with Arthur Andersen in the U.K. and the U.S. before transitioning to PwC in 2001. At PwC, her focus shifted towards the hospitality sector, where she conducted financial audits for hotels and eventually moved into advisory roles.

In 2012, she relocated to Dubai from PwC London to help establish and develop the firm’s Middle East Hospitality and Leisure practice into a leading entity in the field. In a fateful turn of events, RAKHH became one of Grinnell’s first clients back when the emirate had only a handful of hotels. This connection came full circle in 2016 when she received a phone call at Maldives airport from RAKHH’s former CEO, inviting her to join as the company’s CFO. “It didn’t take me long to say yes,” she reflects. “I loved what RAK was looking to do and what the emirate was trying to achieve, which really drew me in. What you see today is what people were envisioning 10 years ago.”

Joining RAKHH in 2016 marked Grinnell’s first permanent move into the industry, transitioning from the structured environment of a corporate firm to a smaller, more dynamic organization. “I was accustomed to having the ‘engine’ of a big four firm behind me, so this was a steep learning curve, particularly as I initially joined as CFO,” she recalls. In 2019, Grinnell was appointed CEO, expanding her responsibilities to encompass the group’s businesses, including hotel ownership, hospitality logistics, asset management, advisory services, and the newly formed RAK Leisure subsidiary.

The company has since emerged as a strategic powerhouse in the industry, and now Grinnell is redefining hospitality for her most prized asset for success—her people. RAKHH is developing a cutting-edge staff accommodation facility tailored to the needs of its hospitality workforce, slated for completion in early 2025. The university campus-style property will house over 2,000 staff members, primarily from RAKHH’s portfolio as well as some others. “This is a very important project for us to ensure that we are offering the best accommodation for our hospitality colleagues and position RAK as a great place to work and live,” she adds, emphasizing the significance of this project, which is aligned with the U.A.E.’s National Strategy for Wellbeing 2031. From green spaces and sporting and leisure amenities to dedicated professional training areas, the project was motivated by the absence of a centralized staff housing that was easily accessible, functional, and not retrofitted.

“It has been difficult in the past to attract and retain staff in RAK as Dubai is a neighboring emirate and is a big draw for people,” the CEO reveals. The research reflects the challenges of staff retention. According to PwC survey findings, a significant 39% of respondents in the Middle East expressed a higher likelihood of switching employers in 2023, compared to 30% reported in 2022. Notably, this trend is predominantly driven by younger employees, with 37% of Gen Z and 40% of millennials leading the movement. “We have to offer our teams better personal and career development opportunities and make work a fulfilling place to come to. It’s hard work, but it’s critical to us.”

Looking ahead, RAKHH’s ambitions soar higher. Among the aggressive targets are plans for new activities on Jebel Jais Mountain, signed agreements for multiple hotel projects, and the launch of a dynamic events calendar through Safarak, highlighting RAK’s multifaceted approach to catering to diverse demographics and global trends. “It’s critical to us to diversify our hotel portfolio to ensure that RAK has plentiful luxury, lifestyle, and mountain offerings to attract a wide range of international and domestic guests,” explains Grinnell. The firm’s portfolio focuses on collaborative differentiation and getting brands that complement existing properties set in the right location, drawing in different demographics from different source markets.

As a triathlete, the CEO welcomes healthy competition with open arms. “There is ample opportunity for all developers and owners. We can’t develop all of this capacity ourselves, so we are keen to see more competition in the market, new brands coming in, and bringing new food and beverage products,” says the bullish hospitality veteran. “The approach is always collaborative and for the benefit of the emirate.”

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