Jumeirah sees increase in revenue amid growing supply, says CEO

Jumeirah CEO Jose Silva said the group is expecting further growth in Asia, Europe as it expands with ultra-luxury hotels similar to Burj Al Arab
Jumeirah CEO Jose Silva said he expects further growth with the addition of new hotels, including a new, 400-room luxury property next to the Jumeirah Beach Hotel, which is itself expected to reopen in October 15 this year.
By Lubna Hamdan
Sun 08 Jul 2018 12:28 PM

Hotel giant Jumeirah has witnessed a 3% yearly increase in its revenue per available room (RevPAR), according to group CEO Jose Silva.

Speaking to Arabian Business, Silva said he expects further growth with the addition of new hotels, including a new, 400-room luxury property next to the Jumeirah Beach Hotel, which is itself expected to reopen in October 15 this year.

“Our revenue is growing throughout the portfolio in an average of about 3%, which is very good," Silva said.

"Keep in mind that besides the new supply that we put in the market, our total revenue keeps on growing, which means that if we hadn’t new [introduced] supply, our revenue would even be potentially about 10% or in the high single digits, which is very healthy at the moment."

Silva added that the group’s beachfront hotels normally achieve higher RevPAR than city hotels.

“It is no doubt that there are areas that grow faster than others. The beachfront grows faster, but I believe in the long term, every area of Dubai will continue growing,” he said.

The Jumeirah group is also expanding in Abu Dhabi, where it will open a new desert resort in Al Wathba in September this year. Silva hinted there will be "openings coming up" in Saadiyat Island as well.

It is expanding faster in Asia with 6 new hotels in areas ranging from Bali to Kuala Lumpur and mainland China scheduled to open over the next 3-4 years.

The group is also set to build ultra-luxury hotels similar to Burj Al Arab in their branding and service, in gateway cities around the world, including one in Europe.

“We will soon announce a hotel as extraordinary as the Burj Al Arab in a main gateway city [in Europe],” Silva said earlier.

“There are some things you want to do in life, and visiting the Burj Al Arab is one of them. Many people travel to go see the Burj Al Arab. It is one of the world’s most photographed – and instagrammed - hotels. It has become an icon of Dubai in itself. We want to expand that globally and share it with the world,” he said.

Silva said Jumeirah will be able to unfold its plans for the new, ultra-luxury brand in the fall of 2018, but said the hotel will boast similar prices of around AED9,000 per night for some room types.

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Last Updated: Sun 08 Jul 2018 01:33 PM GST

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