By Staff writer
Developer Damac offers individual investors the chance to buy into its hospitality projects on a room by room basis
Luxury real estate developer Damac Properties is providing opportunities for individual investors to tap into Dubai's growing hospitality sector.
The developer said customers can invest in an individual hotel room for a future stream of income and a free stay every year with an investment of AED440,000 ($119,700).
"Considering that prior to now, investment in the hotel sector was only feasible for large investors, family offices or development companies due to the prohibitive investment associated with it," Damac said in a statement.
It said that individual cash buyers and those who opt to finance their purchase will be able to own a unit and be part of the booming hospitality market, adding that an estimated 10 percent return on investment can be expected annually.
Recent figures for the first two months of this year show 2.68 million visitors came to Dubai compared to 2.59 million for the same period last year, representing a nearly 4 percent increase.
The opportunity to fully own a hotel room is new to Dubai and the region. The hotel rooms are available with full ownership rights with title deed, allowing investors to sell at any time, unlike timeshare arrangements that have been popular in international markets and have recently begun to be introduced in Dubai.
Furthermore, the owner will also have rights to make it available for two weeks a year for personal use.
Ziad El Chaar, managing director of Damac Properties, said: "Dubai's status as a world-class holiday, business and leisure destination is undeniably on a growth trajectory and gathering momentum by the day.
"With the upcoming Expo 2020 and other developments that will further reinforce Dubai's position on the world stage, we are gearing up by developing and delivering more than 13,000 additional keys by 2021 to add to our existing portfolio of 2000 plus hotel keys and to Dubai's inventory of premium hotel rooms to meet the future demands for luxury accommodation."
Damac recently launched for sale freehold hotel rooms within the Aykon City project to be centrally located on Sheikh Zayed Road in Dubai's Golden Quadrant, overlooking the Dubai Canal.
The units, starting at AED800,000, will be managed by Aykon Hotels & Resorts, one of the four hotel operators under the umbrella of Damac Hotels & Resorts.
Damac Hotels & Resorts also consists of Damac Maison Royale, Damac Maison and Damac Maison De Ville.
Sounds identical to The First Group Model.