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The Hotel Show, 28-30 September 2015, Dubai World Trade Centre

Almost 50% of New Hotel Rooms Entering Luxury Dubai Market Rated 3-Star or Less

Almost 50% of New Hotel Rooms Entering Luxury Dubai Market Rated 3-Star or Less
13 Jul 2015

A new report published by Jones Lang LaSalle (JLL) exclusively for The Hotel Show Dubai 2015 reveals today that almost 50% of the 3,600 new hotel rooms to enter the Dubai market in the final months of 2015 have a 3-star or lower rating.

JLL report a current supply of almost 65,000 hotel rooms in Dubai in the first quarter of 2015, 44% are 5-star rated. Now, the near-saturated luxury market is set to be rivalled by a supply of lower-graded properties with more competitive room rates, 44% of which are forecast to be graded 3-star or less and a total 69% at 4-star or less.
 
“In the first quarter of 2015, only 29% of the current room supply is reported at 3-star or less,” commented Christine Davidson, Group Event Director of dmg events hospitality portfolio which includes The Hotel Show Dubai. “The new statistics revealed by JLL represent a significant shift for a market near dominated by 5-star-or-above rated hotels, including the only 7-star property in the world.”
 
Davidson continued: “Almost 4,000 new rooms entering the market this year will bring the supply of rooms in Dubai close to 70,000 in 2016. Dubai sets a high standard on the world-stage for development and innovation, and its hotel construction pipeline is currently prevalent in the MENA region and amongst the largest in the world. It is a contracts market, there is much business to be won here and we look forward to welcoming the 18K plus hospitality professionals who will travel to the region in September 2015 to find it for The Hotel Show and The Leisure Show.”

Laurent A. Voivenel, CEO of Dubai-based Hospitality Management Holdings (HMH), will be speaking at The Hotel Show’s Vision Conference 2015. He commented: “Dubai might be considered one of the most luxurious cities in the world, but hoteliers entering the market need to continue this trend and accelerate the development of budget room options to cater to demand from the growing middle classes, shorter-stay passengers travelling through Dubai International Airport, now the busiest in the world, and attract new travellers from the emerging economies of Africa and Asia. This is a smart choice for investors due to lower construction and operating costs and quick and high return on investment. At HMH we are penetrating this segment with our ECOS Hotels, introducing to the Dubai market in 2016 a ‘no frills’ B&B brand tying together a unique economical and green concept.”
 
Nakheel’s Hospitality and Leisure division plans to deliver a number of hotels in Dubai over the next three to five years.  Located at various locations across the emirate, including Palm Jumeirah, Deira Islands, Ibn Battuta Mall and Dragon City, the hotels range from 5-star, luxury properties to mid-market offerings. Among them are 5-star Palm Tower on Palm Jumeirah and a 4-star, all-inclusive beach resort at Deira Islands, to be developed through joint-venture with Spain’s RIU Hotels and Resorts.  Nakheel’s Ibn Battuta Mall will have two hotels, one of which will be managed by Premier Inn, with another two hotels at Dragon City, Nakheel’s rapidly developing Chinese trading hub.  The first, run by Accor under the Ibis Style Brand, is due to open this year.
                           
Dubai’s appetite for luxury is still present as alongside the 5-star Palm Tower on Palm Jumeirah, some of the most luxurious properties the city has seen will open in coming years. 2015 openings include 5-star Palazzo Versace at Dubai Creek, movie-themed Paramount Hotel in Downtown, Starwood’s first St. Regis Dubai on Sheik Zayed Road, and the first Hard Rock Hotel in the Middle East in Marina 101, the second tallest building in the UAE behind the Burj Khalifa.
 
The Hotel Show Dubai will take place 28-30 September at the Dubai World Trade Centre, with over 650 international exhibitors showcasing technology, interiors, operating equipment, horeca and much more. Find out more: www.thehotelshow.com

ENDS

For more information and / or images, please contact Heather Macpherson, PR Manager, dmg events hospitality portfolio on +971(0)561128606 or heathermacpherson@dmgeventsme.com
 
NOTES FOR EDITORS

The Hotel Show Dubai is organised by dmg events and belong to the dmg hospitality portfolio comprising of The Hotel Show Saudi Arabia, The Hotel Show Dubai, The Vision Conference, The Leisure Show, The Middle East Hotel Awards, and The Middle East Pool & Spa Awards.
 
The Hotel Show

100% Hospitality for the hotel, restaurant, café and foodservice industry
The Hotel Show Dubai (28-30 September 2015, Dubai World Trade Centre) and The Hotel Show Saudi Arabia (17-19 May 2016, Jeddah Centre for Forums and Events) are important business forums for the hospitality industry in the Middle East and Africa. Working with Department of Tourism and Commerce Marketing, industry associations, and partners, the Shows include  visionary features, extensive educational content (through the Vision Conference) and other knowledge sharing platforms together with senior level networking. Find out more or register to attend FREE at www.thehotelshow.com or www.thehotelshowsaudiarabia.com
 
About dmg events Middle East & Asia

An international exhibitions and publishing company, dmg events Middle East and Asia has operated in the Middle East since 1995. With than 40 market-leading exhibitions for the global energy, construction, coatings, hospitality and interior design industries, dmg events organise many of the world’s most important events including ADIPEC (global energy industry), The Big 5 (construction industry), INDEX (interior design industry) and The Hotel Show (the hospitality industry).
 
Spanning the globe’s emerging markets, dmg events organise events across the Middle East, North & East Africa, South East Asia and South America. The events attract more than 250,000 customers every year and provide opportunities for trade professional to do business, network and learn. For more information visit www.dmgeventsme.com
 
dmg events is a wholly-owned subsidiary of the Daily Mail and General Trust plc (DMGT, www.dmgt.com), an international portfolio of digital, information, media and events businesses listed on the London stock exchange.

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