Hotel Performance in Dubai Remains Strong, According to 2014 JLL MENA Hotel Intelligence Report
11% increase in tourists visited Dubai in 2013 from previous year
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.
Chiheb Ben-Mahmoud, Executive Vice President – Head of Hotels & Hospitality Group, Middle East & Africa at JLL, said: "Dubai has strengthened its position as a leading tourism destination in the Middle East due to its ease of access, quality branded hospitality offering, modern infrastructure, leisure and entertainment options and safe environment. Long term hospitality development in Dubai has been bolstered by the vision of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for Tourism for 2020, supported by the planning and implementation efforts of DTCM."
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."
About JLL's Hotels & Hospitality Group
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. AFortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.co.uk