JLL’s Hotels & Hospitality Group, has released its 2014 Hotel Intelligence Report today for the Dubai Market at the Arabian Hotel Investment Conference (AHIC).
The positive trend in tourism is expected to continue in coming years due to Dubai’s increasing global popularity as a destination backed by the government’s pro-tourism initiatives. Dubai is expected to retain its status as the UAE’s primary tourist hub by expanding its conferencing and business facilities, expanding leisure entertainment options and maintaining its regional retail dominance.
Summary highlights, 2014 Hotel Intelligence Report for the Dubai Market:
- Dubai has retained its status as the best performer among major markets in the Middle East when looking at overall hotel performance.
- RevPAR is expected to continue growing in the resort areas and CBD, with Deira and emerging districts moving towards stabilisation, with slower year-on-year growth.
- City-wide occupancy is expected to increase slightly in the short-term, with the 80% occupancy in 2013 showing growth from the 2012 year-end 78% occupancy.
- Average rates are expected to stay relatively stable. New 4-star and 5-star projects are expected to increase competition in the upscale and upper-upscale segments.
- Developers are optimistic about building in Dubai, and more than 24,000 quality rooms and serviced apartments are expected to enter the market by the end of 2017, in addition to larger master planned projects such as Mohammad Bin Rashid City and Deira Islands that are expected to include hospitality components. Most major brands have a presence in Dubai, and the city is home to some major international brands’ flagship properties including the newly-opened Sofitel the Palm, Conrad and JW Marriott Marquis.
- Dubai is expected to retain its status as the UAE’s primary tourist hub by expanding its conferencing and business facilities, expanding leisure entertainment options and maintaining its regional retail dominance.
Mr. Chiheb Ben-Mahmoud continued: “The development of conference facilities will increase Dubai’s appeal as a business destination, and the development of entertainment venues will increase Dubai’s appeal as a leisure destination. Developers are optimistic about building in Dubai, and more than 24,000 quality rooms and serviced apartments are expected to enter the market by the end of 2017. While the majority of the supply expected to open is concentrated in the upscale and upper-upscale segments, attaining Dubai’s goal of attracting 20 million visitors by 2020 will require the emirate to also cater to tourists seeking budget friendly accommodation formats.”
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