By Courtney Trenwith
New Downtown Dubai hotel will be the third largest in the emirate; will create 'a massive party across the 1250 rooms'
Dubai developer Damac and Paramount Hotels and Resorts, the hospitality arm of the movie production company, have announced their fourth hotel project in the emirate.
Paramount Hotel Dubai, Downtown will be the third largest hotel in Dubai, with 1250 rooms, behind the Atlantis and JW Marriot Marquis.
It is the fourth hotel using the Hollywood brand but the companies told Arabian Business on Sunday they would appeal to different markets.
The new hotel would have a vibrant atmosphere aimed at attracting younger couples and singles and would boast high tech technology and a creative community.
“We are looking at having a massive party across the 1250 rooms,” Damac Properties managing director Ziad El Chaar told Arabian Business. “It’ll be a happening place.
“Today the Downtown area is happening [so] to put a hotel in that area you need to come up with an entertainment concept, not just another five-star hotel."
El Chaar denied that launching so many properties under the same brand – all four have been announced within the past 18 months and none are yet to open - would cause each of them to lose value.
“Paramount really understands what we’re trying to do and at the same time, we believe that the Downtown area can support 2,000 keys of Paramount,” he said.
In a statement released on Sunday, El Chaar said the already announced projects with Paramount have been “immensely popular” and there was a clear demand for “unique and luxurious” hotel accommodation in Dubai.
“The number of visitors to Dubai is set to double in the next six years and the Paramount Hotel Dubai, Downtown will support the growth with a high-end, theatrical and immersive experience for international tourists,” he said.
Paramount Hotels and Resorts CEO Thomas Van Vliet said he was not concerned about flooding the market with multiple hotels under the company’s brand.
“Because we believe that Dubai has enough potential to sustain more than one hotel with the same brand and I think it has already been proven by other companies,” he told Arabian Business.
“We see no reason why we wouldn’t be able to do the same, particularly because none of these projects will look the same. [Although] they’ll look different, the overall experience is going to be a Paramount experience.”
The latest hotel will be located one block back from Sheikh Zayed Hotel and is expected to be completed by the end of 2018.
The companies intend to sell the hotel rooms.
Their first collaboration was announced in March last year. Damac Towers by Paramount is made up of four towers, three of which are purely residential.
They also are building a beachfront hotel, Paramount Hotel Dubai, Jumeirah Waterfront and Paramount will operate serviced villas in one area Damac’s Akoya master development. They also are building a hotel in Riyadh.
Clearly the start of the Condo-hotel....offering investors interested in UAE real estate a service orientated annual returns based product. Remember the basics .....invest in the product that the hotel market demands(ie standard hotel room), and ensure the operator fees are reasonable. With 4 products launching within 18 mnths......short term flipping could be difficult.