MP Proposes Selling Hotel Rooms as Separate Units

Room-by-room hotel ownership has been proposed in Parliament, with MP Hassan Ebrahim calling for hotels to sell individual rooms as independent units backed by official documents after occupancy in many properties fell to around 40 per cent.

In a parliamentary request, Ebrahim argues that letting hotels issue formal ownership papers for single rooms would bring in new buyers, spread the cost of upkeep, and give hotels cash from sales alongside ongoing income from running the rooms for their owners.

‘Allowing hotel rooms to be sold as independent units with official title documents is an innovative idea, tried globally, that introduces a new economic model linking real-estate investment with the hotel sector at the same time,’ he said.

The plan, as described in the memorandum, would leave day-to-day running with the hotel. Owners would buy the room, while the hotel would keep control of operations, maintenance and marketing under a shared system, with returns paid out under agreed terms.

Ebrahim said that structure would lower the weight on hotel operators, while opening the door to smaller investors who cannot usually reach the sector.

‘This model not only eases the burden on hotels in terms of operating and maintenance costs, but also gives investors a chance to enter a sector that has long been closed to them because of its high costs,’ he said. He added that it would ‘open the door for individuals and small and medium-sized enterprises to own hotel units that are managed professionally by the hotel’.

He also argued that splitting ownership across many holders would push hotels to keep service levels up, since the value of each unit would rest on the hotel’s name, its ratings and its day-to-day standards.

The memo ties the request to parts of the Constitution dealing with social justice and the way the law governs ties between property owners and tenants. It also cites the principle that the national economy rests on fair co-operation between public and private activity, aimed at growth and prosperity within the law.

Beyond helping hotels cope with weak occupancy, the request says the model could widen the pool of money flowing into tourism and hotel projects, including from outside Bahrain. It argues that more buying and selling would help build a more ordered market for hotel property, while feeding demand for services linked to visitor numbers, such as transport, retail, restaurants and event work.

Ebrahim said examples from overseas show hotels can gain immediate income from selling units, while keeping revenue through running them on behalf of owners.

‘International experience indicates that this model strengthens hotels’ financial sustainability, as it guarantees direct returns from selling units, in addition to continued revenue flows through operating the units for owners under a shared operating system,’ he said.

He also calls for clear rules to govern the scheme, including the rights of owners and hotels, the share of returns, maintenance duties, how many rooms can be sold, and terms meant to protect the hotel’s character and the standard of service.