Abu Dhabi’s Story hotels chief plots strategy from Seychelles to Mecca

From private island escapes in the Seychelles to luxury hotel towers under construction in Mecca, Story Hospitality is trying to build on its boutique niche in the UAE and expand to new markets.

Backed by Abu Dhabi Capital Group, one of the UAE’s largest family investment offices with $20 billion in assets under management, the company is looking to Saudi Arabia, Oman and other Gulf neighbors to build its brand regionally as it eyes more far-flung resort destinations in Africa.

CEO Victor Abou-Ghanem, who was born in Lebanon and learned the industry working at hotel icons such as the Dorchester Collection and Kempinski Hotels, said he isn’t chasing cookie-cutter growth as the company plots a strategy beyond its emirates base.

“We don’t copy-paste concepts,” the dapper 44-year-old executive said in an interview while attending last week’s Arabian Travel Market conference. “Every Story hotel is unique, with its own concept and narrative.”

Formerly known as H’Mark Hosts with its signature H Hotel in Dubai at the foot of Sheikh Zayed Road, the company rebranded in 2021 to roll out the 5-star line of Story hotels, while introducing a 4-star franchise under the name Cue Hotels. Story Hospitality expects to double its hotel count this year to 12, according to its website, with new locations in the Seychelles and near the Grand Mosque in the holy city of Mecca.

The interview has been edited for length and clarity.

Is now a good time for Story Hospitality to open new hotels?

Absolutely! And this is happening globally, not just in one region. First, post-pandemic, people really wanted to travel again, and we saw a sharp increase in leisure travel. Any destination able to welcome leisure customers saw a boom.

Second, inflation has increased since the pandemic. Investing in real estate, especially hotels, is considered inflation-proof because you can pass some of those costs onto customers. Hotel rates are rising; they rarely go down, so as prices increase globally, we’re also able to increase our rates and maintain returns. Today, hotel investment remains attractive because it offers stable or even increasing returns despite inflation.

How does your connection with Abu Dhabi Capital Group help the hotel chain grow?

As their hospitality arm, we handle all hospitality-related and commercial building operations, whether through acquisition or development from scratch. We’ve done mixed-use projects with malls, offices, residences, and hotels. Sometimes we operate hotels only, or offices only — depending on the location and project. What’s unique is that each division, including Story Hospitality, defines its own growth and expansion plan. It’s not dictated by the holding group.
ADCG requires a certain return and growth – we decide how to achieve that. It’s like starting with a blank page – we own the strategy and execution.

Given your strong momentum, how is Story Hospitality positioning itself for expansion within the GCC?

We’re a GCC-rooted company with headquarters in Abu Dhabi, focused on having a strong presence in the region. UAE and Saudi Arabia are must-haves for us. We’re also active in Kuwait, Oman, Qatar, and soon Bahrain. The UAE is our base, and Saudi Arabia is where the real boom is happening, especially between now and 2030. Our first hotel in Mecca should open before the end of this year. We’re also exploring opportunities in Riyadh and the Red Sea. Importantly, we don’t just take any hotel and rebrand it. We find the right product that fits Story and only then do we put our name on it.

When evaluating new opportunities, what key criteria determine whether a hotel project aligns with the Story brand?

There are many criteria. First, we ensure we work with the right partners and owners.
Management agreements are long-term, 20 years or more, so aligning values and goals is essential. Second, we only choose destinations where we can operate successfully and outperform competitors. We assess KPIs such as location, demand, hotel supply, and whether it’s a leisure, religious, or business destination. We also consider the nature of the project — is it luxury, five-star, or lifestyle? From there, we define size, brand, and offering in collaboration with the owner.

Unlike others, we don’t copy-paste concepts. Every Story hotel is unique, with its own concept and narrative. We tailor each project to fit the owner’s vision, not the other way around.

Are you pursuing strategic partnerships with Gulf sovereign wealth funds or public investment entities?

We’re working on a few projects, though they’re still confidential. We’re actively engaged with at least one party, and if all goes well, you might hear an announcement within a month. The sovereigns are definitely of interest.

Story operates across both 5-star and 4-star segments. How do you ensure consistent quality and brand integrity?

It’s a tough question — what is luxury, really? Some people associate it with big rooms and marble finishes, and that’s part of it. For example, in Dubai, our hotel offers the largest standard rooms — 40-plus square meters, when the legal minimum is 25. That’s a choice we made.
We always ensure our hotels meet or exceed the country’s legal and classification requirements. But we don’t stop at the minimum, we do more.

Luxury today also means strong product quality and rich amenities: multiple restaurants, spas, pools, and wellness facilities like yoga or Pilates. Most importantly, luxury is about service, which is high-end, consistent, and people-driven. Our guest reviews on platforms like Booking.com and TripAdvisor speak to that. With the right location, product, and service, you can command high prices and retain customers. Without all three, you won’t.

As the GCC’s hotel market becomes more competitive, how do you attract, develop, and retain top-tier hospitality professionals?

It starts with the basics: treat people well. Just like with customers, we keep employees by taking care of them. That means being fair, giving them opportunities to grow, and offering training. At Story, we support career progression and international mobility. If someone wants to grow and travel, they can. Other companies may not provide that, you stay in your role or leave. For us, it’s not just about competitive salaries. It’s about learning.

We require at least two training sessions per year, especially for employees who use software. We offer both soft skills and technical skills training. We also promote from within and foster diversity, no discrimination based on nationality, religion, or gender. In Dubai, we’ve partnered with the government to train and employ autistic individuals. If someone is capable and willing, we’ll support them.

The Daily Circuit: Clinton tips Saudi real estate + QIA invests in quantum

👋 Hello from the Middle East!

In today’s Daily Circuit, we’re looking at Alpha Dhabi’s acquisition of the UAE’s national hotel company, the QIA’s investment in quantum computing, Ulta Beauty’s entry into the Middle East cosmetics market and the inauguration of a $17.4 billion Emirati-French fighter jet deal in Paris. But first, Bill Clinton recommends investment in Saudi real estate.

Developers of New Murabba, Neom, Diriyah and other multi-billion-dollar construction projects across Saudi Arabia occupied center stage this week at the Real Estate Future Forum in Riyadh.

Until former U.S. President Bill Clinton mounted the podium Wednesday night at the Four Seasons.

Praising Crown Prince Mohammed bin Salman’s Vision 2030 plan that set off a torrent of building activity across the kingdom, Clinton told a packed ballroom, “It’s worth investing in.”

The 78-year-old statesman, who met with MBS earlier in the day, added: “I think that we Americans should come here and study this 2030 plan and ask ourselves what is our equivalent,” Arab News reports.

Clinton capped the final day of the conference in Saudi Arabia’s capital, where the cube-shapped New Murabba development promises to be the “most complex structure known to man or woman,” the project’s CEO Michael Dyke told a conference panel.

“We will have something like two to three Empire State Buildings on each corner, which anchor the four corners of Mukaab,” Dyke said. At the center will be a residential tower the size of the Eiffel Tower “that will be the only skyscraper in the world that lives inside another building.”

“Below the ground is enormous as well,” he said, adding, “It’s a complete cavernous labyrinth of various different asset classes” with retail space “the size of Dubai Mall that will be capable of extending to be bigger.”

Welcome to the Daily Circuit. Kindly let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].

📷 Photo of the Day