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Tue 17 Nov 2009 11:31 AM

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Emaar Hospitality CEO plays down hotel oversupply fears

Hotel group chief says he is not worried about impact of new openings in 2010.

Emaar Hospitality CEO plays down hotel oversupply fears
TOP ADDRESS: Emaars latest hotel, The Address in Downtown Burj Dubai.

The CEO of Emaar Hospitality Group has played down fears that Dubai may face a major oversupply of hotel properties in the coming year.

Marc Dardenne said that he was not concerned about fears that the emirate might suffer from having too many hotels - a concern voiced by some analysts.

"When you look at the new hotels that are opening they are really spread out over the whole city and they are coming in gradually, so I am not too worried about business," he said in comments published by Ameinfo.

"This summer you could really see business coming back. The beach properties are full for mid-term UK holidays, and the Russian holidays are booked throughout. Our Dubai Mall hotel, which opened just six weeks ago, was running full last weekend, so that also shows demand is here again," he added.

He said The Address Hotels + Resorts, the hotel brand of Emaar Hospitality Group, was also pursuing two other hotels in Morocco, and at properties in France and Budapest while the company was also looking to expand in Shanghai and the United States at a later stage.

Dardenne also told the website that he was looking at a number of locations in the Middle East, including Abu Dhabi.

"Our positioning was always that we would be a global brand, but for us it is very important that when we expand we do so with our brand promise. We want to ensure that if you walk into an Address, whether it might be in Istanbul or Dubai, you will have the same feel, so we are very strict on our brand guidelines now," he said.

Launched in 2008, the brand has opened five properties in Dubai, including The Address Downtown Burj Dubai, The Address Dubai Mall, and The Palace - The Old Town.

Most recently, the company added the Montgomery Dubai to its portfolio and opened The Address Dubai Marina.

All of these properties have performed well despite the economic downturn, Dardenne said, adding that occupancy in The Address Downtown Burj Dubai has been running in the 90s.

He added that the high occupancy rates had been achieved without lowering rates.

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