News

Hospitality industry in Dubai recorded an increase in April across all key performance indicators, including the highest revenue per available room, as hotels across the Middle East North Africa region experienced mixed results.

In Dubai, hotels reported RevPAR of US$ 273, an increase of 18.7 per cent in April compared to the same 2016 period, and also posted the highest occupancy at 88 per cent and the highest average room rate of US$ 310, said EY in its MENA Hotel Benchmark Survey report.

“Numerous events such as the Arabian Travel Market and the Arabian Hotel Investment conference attracted visitors from across the Mena region and may have helped boost the city’s hotel performance,” Yousef Wahbah, MENA head of Transaction Real Estate at EY, said.

Across the region, higher occupancies at lower average room rates affected hotels’ overall revenue per average room. “With the start of Ramadan at the end of May, it can be expected that MENA cities will experience a softer performance until the Eid holidays at the end of June,” said the report.

Abu Dhabi’s hospitality market witnessed a drop in RevPAR by 4.8 per cent in April 2017, which can be attributed to the drop in ADR from US$ 133 in April 2016 to US$ 120 in April 2017. However, occupancy increased by 4.5 per cent in April 2017 when compared to the same month last year.

According to official data issued by Dubai’s Department of Tourism and Commerce Marketing, Dubai’s hospitality industry is poised to enter a new growth trajectory with hotel rooms predicted to surge to 140,000-160,000 keys by 2020 from 93,030 as of January 2015.

As the UAE’s tourism and leisure sector, a key pillar to prop the nation’s post-oil economy, is projected to reach Dh 237 billion by year 2026, the Emirates hospitality sector is witnessing a big boom with nearly 100 hotel projects now under construction.

According to Market research firm STR, there are currently 99 hotels being built in the UAE, the highest in the region. The ongoing projects represent 17 per cent of the 556 properties in the Middle East that are either under construction or in the final and planning stages. The new hotels will boost the country’s supply by another 28,898 rooms. In 2017 alone, around 16,000 hotel keys are expected to be handed over in the UAE.

Mama Shelter, the global collection of authentic hotels, has announced plans to open a new location in Dubai. The property will be located in Dubai’s downtown Business Bay and is expected to open in 2020.

“We knew Dubai was the perfect destination for our eighth Mama Shelter property because the city embodies the MAMA spirit with its bustling excitement and international appeal,” said Mama Shelter Founder, Serge Trigano.  “Mama Shelter Dubai will not just be a place for business meetings and flythroughs, but a place to live, work, laugh, debate, celebrate, and at the end of the night, come home to MAMA.”

Designed by Franklin Azzi Architecture, Mama Shelter Dubai will have 201 rooms and 80 residences. The architect explains, “Mama will offer a unique tower to Dubai. A pure glass coat covering a wooden skin made by each rooms’ shutters.” The rooms are sanctuaries with the comforts of home coupled with all the needs of digital modernity, with spacious king size beds and high speed Wi-Fi. With 300 square meters of space set aside for collaboration, travelers will have room to gather, create or simply hang out.

Mama Shelter will also benefit from its proximity to landmarks such as the Downtown Dubai area, the Burj Khalifa and Dubai Mall. Alongside the concentration of lifestyle hospitality projects across Business Bay, Mama Shelter will be positioned as an iconic destination with the presence of an additional five-star hotel within the same tower.

Pawan Kachroo, Managing Director of Khamas Hospitality said, “This project is reflective of a shared vision to bring desired diversity and delight in the regional hospitality industry with fresh innovation. Through the Mama Shelter Dubai Business Bay, we intend to energize the industry with competitive experience driven offerings.”

The Trigano Family, co-founders of Club Med, created Mama Shelter eight years ago with an inaugural location in Paris. Since then the family has expanded Mama Shelter all over the world in Marseille, Lyon, Bordeaux, Los Angeles and Rio de Janeiro. In February, the company announced plans to open Mama Shelter Prague in early 2018.

RSG International, UAE-based business group, signed a management agreement with Rotana for its second Dubai hotel project announced this year.

The agreement for the new hotel was signed between Nasser Al Nowais, Chairman of Rotana and Raj Sahni, Chairman of RSG International, at a ceremony held at Amwaj Rotana in Dubai. Also present were Jasjit Singh Jaaj, Group CEO of RSG International, and Omer Kaddouri, President and CEO of Rotana.

The four-star Dh600 million hotel, located on Sheikh Zayed Road, next to UAE Exchange Metro Station, is scheduled for opening before Dubai 2020.

Sahni said the project marks the group’s second collaboration with Rotana this year, following the launch of the Sabah Rotana hotel in Dubai in March 2017. “The new hotel gives a further boost to the company’s plans to augment its hospitality portfolio in the emirate ahead of Expo 2020,” said Sahni.

“This is just one of the many potential projects that we have lined up keeping the Expo 2020 in mind. With the accommodation and hotel room demand on the rise already, property development definitely has our focus at the moment. RSG is known for delivering its projects on or before schedule, and we will live up to our reputation.”

Sahni, also known as Abu Sabah, made news when he bought the most coveted number plate ‘D5’ for around US$9 million from Dubai’s Regional Transport Authority in October 2016.

Addressing a press conference, Al Nowais said Rotana has a robust development pipeline in Dubai, with a clutch of new hotels scheduled to open in the city before the end of 2020.

“Hospitality demand in Dubai is expected to peak around Expo 2020, and Rotana is moving fast to fill the city’s need for additional hotel room supply and meet the anticipated surge in demand. Rotana will open eight new hotels in Dubai by 2020, which will have a combined a managed investment of more than $850 million. The new properties will add 2,668 keys to Rotana’s existing inventory in Dubai, taking the total room count to 6,151, while expanding its portfolio in the emirate to 21 hotels,” said Al Nowais.

Jaaj said Dubai’s hospitality industry has experienced a huge surge in the past decade with travellers from all over the globe flocking the emirate, and it is only expected to grow exponentially.

“It is our endeavour to align our vision with that of the Ruler of Dubai. This agreement with Rotana is a great opportunity for us to expand our hospitality portfolio and it has definitely come at a great time for RSG,” said Jaaj.

He said the new hotel, rising up 40 floors, would also have a well-balanced mix of hotel rooms and hotel apartments. “In total, the new property will feature 180 spacious rooms and 10 luxuriously appointed executive suites in addition to 300 hotel apartments, including 40 studio apartments, 240 one bedroom apartments and 20 two bedroom apartments,” said Jaaj.

The new Rotana hotel on Sheikh Zayed road, rising up 40 floors, will also have a well-balanced mix of hotel rooms and hotel apartments. In total, the new property will feature 180 spacious rooms and 10 luxuriously appointed executive suites in addition to 300 hotel apartments, including 40 studio apartments, 240 one bedroom apartments and 20 two bedroom apartments.

Kaddouri said Dubai, which is preparing to host 25 million visitors for Expo 2020, is estimated to require an additional 45,000 hotel rooms to meet anticipated demand during the six-month-long exhibition.  .

In addition to eight upcoming hotels in Dubai, Rotana will be opening five new hotels in Abu Dhabi in the next 3-4 years, bringing to 16 the total number of our properties in the capital, said Kaddouri.

RSG Group’s first hotel, Sabah Rotana, is also located on Sheikh Zayed Road. The 54-storey property has 533 rooms.

wasl Asset Management Group, one of the largest real estate development and management companies in Dubai has announced the launch of the city’s second luxury Mandarin Oriental hotel, which is due to open in November 2020. The new location in Dubai’s Commercial District of Sheikh Zayed Road will complement wasl’s Mandarin Oriental hotel on the waterfront at Jumeira Beach, which will open in the fourth quarter of 2018.

The new hotel will be the centerpiece of the 63-storey mixed-use wasl Tower which is being developed as a commanding addition to the city’s skyline. Located on Sheikh Zayed Road, Dubai’s main thoroughfare, the property will have direct access to the area’s key business districts and tourist attractions, including Dubai Opera House, City Walk and Dubai Mall, as well as the city’s two airports, being 20 minutes from Dubai International Airport and 40 minutes from Dubai South – Al Maktoum International Airport. The hotel will also include a full suite of on-site luxury entertainment and leisure facilities that redefine Dubai’s premium hospitality offering.

His Excellency Hesham Al Qassim, CEO of wasl Asset Management Group, commented: “We are pleased to be partnering once again with Mandarin Oriental to bring another elegant and sophisticated hotel to Dubai, which furthers wasl’s mandate to supply the Emirate’s hospitality sector with quality hotels. Combined with the premium property offering at wasl Tower, we are offering the height of luxury in both the hospitality and residential sectors, which wasl works to support in alignment with the vision of the UAE’s wise leadership.”

Both hotels are being developed in collaboration with Mandarin Oriental Hotel Group, the international hotel investment and management group with luxury hotels across the world, while Amsterdam-based UN Studio is the appointed architect of the 300-meter-high building, wasl Tower, which has been designed as an integrated urban environment that promotes connectivity and sustainability.

One of the hotel’s key attractions will be a beautiful double level sky lobby, offering stunning views of the beach and Sheikh Zayed Road from either end. Guests will access the sky lobby via a plush reception area on floor 35, with a club lounge, a lifestyle lounge and a tea lounge on the same level, while floor 36 features an all-day dining area.

The hotel includes 257 spacious and contemporary guestrooms, suites and serviced apartments, which will be located on floors 16 to 38 of the tower, providing outstanding views over Downtown Dubai and the world’s tallest building, the Burj Khalifa. All accommodation will reflect the local culture, with features inspired by both Emirati and oriental heritage.

Adding to wasl Tower’s residential offering, the hotel will also be home to 144 residences located on the tower’s upper floors, which will provide some of the most luxurious private homes in the city. The Mandarin Oriental Residences will have their own private access, with dedicated facilities including a Resident’s Lounge, while also benefiting from direct access to the hotel’s facilities and Mandarin Oriental’s legendary service.

The food and beverage offering at the Mandarin Oriental will feature award-winning restaurants headed by some of the world’s most celebrated chefs, with a variety of restaurants including a lively rooftop sky lounge with citywide views, a signature dining experience, an all-day dining venue, a poolside restaurant, a Club Lounge, and a signature Mandarin Oriental Cake Shop.

There will also be extensive banqueting and meeting spaces designed to accommodate social and business events, while the Spa at Mandarin Oriental will introduce Dubai’s most comprehensive spa, beauty and wellness services. The two-storey facility will feature 12 private treatment rooms, a wide-ranging fitness centre, vitality pools, heat and water therapies, and an outdoor swimming pool set within a landscaped garden terrace.

James Riley, Group Chief Executive of Mandarin Oriental Hotel Group said, “Dubai continues to develop in stature as one of the world’s leading destinations, and we are delighted to have the opportunity to operate two luxury hotels in this important city. We look forward to collaborating again with wasl Hospitality and Leisure to create a second iconic property and to be extending our brand’s presence in the Middle East.”

His Excellency Hesham Al Qassim, CEO of wasl Asset Management Group, concluded: “We look forward to introducing new visitors and residents to the exceptional service for which Mandarin Oriental is renowned. The new project sets new standards for architecture, redefines the premium life style offered in Dubai, and is another milestone in establishing this city as the home of luxury hospitality and the world’s favourite destination.”