Hotel revenues in Dubai are expected to continue growing this year as the emirate increases its global appeal as a tourism hotspot, Jones Lang LaSalle said in a new report on Sunday.
Its 2014 Hotel Intelligence Report said Dubai has retained its status as the best performer among major markets in the Middle East when looking at overall hotel performance.
JLL said it expected revenue per available room (RevPAR) to continue growing in the resort areas and central business district (CBD), with Deira and emerging districts moving towards stabilisation, with slower year-on-year growth.
City-wide occupancy is expected to increase slightly in the short-term, with the 80 percent occupancy in 2013 showing growth from the 2012 year-end 78 percent occupancy, the report said.
It added that average rates are expected to stay relatively stable. New 4-star and 5-star projects are expected to increase competition in the upscale and upper-upscale segments.
“Developers are optimistic about building in Dubai, and more than 24,000 quality rooms and serviced apartments are expected to enter the market by the end of 2017, in addition to larger master planned projects such as Mohammad Bin Rashid City and Deira Islands that are expected to include hospitality components,” the report noted.
Most major brands have a presence in Dubai, and the city is home to some major international brands’ flagship properties including the newly-opened Sofitel the Palm, Conrad and JW Marriott Marquis.
Chiheb Ben-Mahmoud, executive vice president – head of Hotels & Hospitality Group, Middle East & Africa at JLL, said: “Dubai has strengthened its position as a leading tourism destination in the Middle East due to its ease of access, quality branded hospitality offering, modern infrastructure, leisure and entertainment options and safe environment.
“Long term hospitality development in Dubai has been bolstered by the vision of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for Tourism for 2020, supported by the planning and implementation efforts of DTCM.
He added: “The development of conference facilities will increase Dubai’s appeal as a business destination, and the development of entertainment venues will increase Dubai’s appeal as a leisure destination.”
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