Emaar dismisses fears of luxury hotel oversupply

LUXURY LIVING: Dardenne said fears that the high-end hotel market in Dubai was oversupplied were unfounded. (Getty Images)

The head of Emaar Properties' hotel group has dismissed fears of luxury hotel oversupply in Dubai as the developer unveiled plans for its exclusive accommodation brand ‘The Address’.

Speaking at the Arabian Travel Market (ATM) in Dubai, Emaar Hospitality CEO Marc Dardenne told ArabianBusiness.com the hotel market would continue to be undersupplied for at least the next decade.

“There’s still enough demand in Dubai [for luxury hotels] and it will continue. I’ve been here six years and that same question about over supply keeps coming up. With all growth of Emirates airlines and the new airport there is so much demand,” he said.

Dardenne forecast high demand for luxury accommodation would continue for at least 10 to 15 years.

“Dubai has become a hub for tourism, for conferences and business. I am very confident the incredible growth will continue,” he said.

The number of hotels and hotel apartments in Dubai is expected to climb to 488 in 2010, compared to 452 last year, with the number of hotel rooms rising to 64,179 in 2010 from 51,168 last year, Dubai Tourism and Commerce Marketing (DTCM) said on Tuesday.

RELATED: Dubai tourist numbers to hit 10mn by 2010

However, the vast number of the hotels set to come online are high-end four- and five-star hotels.

The budget hotel market has only just begun to take shape in the UAE, with Dubai-owned Nakheel and Jafza announcing on Sunday that they plan to roll out a number of low-end hotels under the EasyHotel brand.

RELATED: Nakheel, Jafza launch budget hotel brand

The Address is Emaar's second hotel brand following the launch of the Armani Hotel brand in collaboration with Italian designer Georgio Armani.

Dardenne said Emaar would look to take The Address brand to Morocco, Egypt, Turkey and eventually London, Los Angeles and New York within the next 10 years.

The Address will be rolled out in Downtown Burj Dubai, Dubai Mall and Dubai Marina this year, he said.

The Address, Downtown Burj Dubai will be located near the iconic Burj Dubai tower, the world’s tallest building.

The launches are part of Emaar Hospitality’s $1 billion investment into a portfolio of hotels, resorts and marinas.

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