Saturation in the Dubai hospitality market encourages hotels to continue innovating, according to the vice president at Nikki Beach Global Hotel Division.
Speaking to Arabian Business, Alexander Schneider said hotels in Europe have stopped innovating due to a lack of market saturation.
“I’m a fan of saturation, to be honest, because it keeps a destination fresh. You have no saturation in Europe, where everyone is doing well, so no one is innovating or investing in quality. Hotels are getting old and tired but they’re still making money. Nobody wants to do anything, so it actually becomes a rip-off,” he said.
“Dubai is seeing the evolution of global metropolitan city. We see products that are always refreshing innovating, but we see brands aging, brands that were really hip 10 years or 20 years ago do not inspire millennials anymore so saturation will keep Dubai fresh,” he added.
The Nikki Beach brand, which boasts the famous Miami-style Nikki Beach Club, is famous for its simplicity, featuring mostly white interiors while relying on earthy tones and eco-centric elements.
The concept was launched by Jack Penrod in 1998 in the US in a bid to combine entertainment, dining and music in a luxury beach offering. Today, the firm has 14 beach clubs, four hotels and resorts as well as a special events division.
The hotel in Dubai witnessed 90% occupancy in August and September. It currently sits at 80% occupancy and expects to close the year at the same rate.
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