More hotels are expected to change hands in Dubai in 2010 following a sharp slowdown in hotel investment last year, as economic conditions improve and demand rises for cheap assets. However, experts say that investment activity in Dubai's hotel sector is still likely to be relatively low due to the profile of owners in the emirate and rigidity of the market.
Piers Schreiber brings 20 years of experience in international corporate communications. Prior to joining Jumeirah, he was the co-founder of The Communication Matrix, a consultancy specialising in communication strategy, change management and multinational media relations. His clients included the International Finance Corporation (World Bank), Shell, Dell, Nutricia, Zain, Mubadala and BT. He previously headed corporate communications for KPNQwest in the Netherlands, ran the European corporate practice for Ogilvy Public Relations in Brussels and spearheaded European Commission projects for The Rowland Company (Saatchi & Saatchi) in Brussels, Prague and across central and eastern Europe. In his earlier career he worked at Charles University, Prague and the Université de Poitiers, France. A British citizen, Piers Schreiber was educated at Bryanston School in the UK, graduated from Peterhouse, Cambridge University and has an MBA from the University of Strathclyde.
Starwood Hotels & Resorts Worldwide Inc. today announced the debut of its renowned Luxury Collection brand in the United Arab Emirates with the addition of Grosvenor House, a Luxury Collection Hotel, Dubai. Located on the exclusive Dubai Marina, the prestigious 45-story Grosvenor House hotel first opened its doors in 2005 and quickly became one of the world’s most acclaimed hotels.
The economy may be contracting, developers may not be being paid and rents and freehold prices may be in freefall but, roughly half-way through a critical season, tourism in Dubai is holding up reasonably well.
Mandarin Oriental Hotel Group has today announced that it will manage a new luxury resort and branded residences on Saadiyat Island in Abu Dhabi, the capital of the United Arab Emirates. The property, which is being developed by Abu Dhabi-based Tourism Development & Investment Company (TDIC), is scheduled to open in 2013. This will be Mandarin Oriental’s first foray into the Middle East, providing the Group with an exceptional opportunity to extend its brand to one of the Arabian Gulf’s foremost business and leisure destinations.
The programme for the Arabian Hotel Investment Conference 2010, taking place from 1 – 3 May 2010, was today announced. The Conference will be held under the patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Department of Civil Aviation, Chairman of Dubai Airports and Chairman and CEO of Emirates Airlines.
Over the past decade the UAE has gained a reputation as a luxury destination with the launch of numerous high-end hotels that have grabbed the attention of travellers across the world. Thanks to a steady rise in demand, room rates soared and remain among the most expensive in the world, but the onset of the global financial crisis has led to a sharp decline in revenues and occupancies across the country.
As Wyndham Hotel Group ramps up its presence in the Middle East, president and CEO Eric Danziger speaks exclusively to Hotelier Middle East about his bullish and aggressive approach to further development in the region. Eric Danziger is one of the leaders in the global hotel industry. As president and CEO of the Wyndham Hotel Group - a role that follows similar leadership positions at the likes of Carlson Hotels and Starwood - he is responsible for a massive 7000 hotels across 11 brands.
Dusit International has officially opened the hotel Dusit Princess City Centre, Dubai located near Deira City Centre, adding a new facet to one of the most exciting and popular locations in Dubai with its legendary Thai brand of hospitality
The opening Monday of the world's tallest skyscraper could mark a turning point in Dubai's fortunes and those of its ruler after a year that saw both come under intense scrutiny. Sheik Mohammed bin Rashid al Maktoum, the city-state's 60-year-old hereditary leader, hopes the building and its surrounding $20 billion development will help enhance his reputation among international investors and restore Dubai's allure as a business hub.
The head of Dubai-based luxury resort operator Jumeirah Group said the company's expansion plans are continuing despite declines in revenue and worries about its home city's financial condition. Gerald Lawless, executive chairman of Jumeirah, shrugged off concerns that Jumeirah's parent, Dubai Holding, could become the next casualty of the Gulf emirate's debt woes. Dubai Holding, a private conglomerate, held by Dubai's ruler, Sheikh Mohammed bin Rashid al-Maktoum, operates hospitality, telecom, real-estate and investment businesses. Mr. Lawless said Dubai Holding began efforts last year to shore up its finances, for example, reorganizing its real estate assets. He didn't provide details.
Capital for hotel owners and developers could be choked off even further if Dubai World is unsuccessful in restructuring its massive debt, some industry experts say.Lenders and representatives of government-controlled Dubai World are currently meeting to discuss modifying some US$26 billion of the company’s total US$60 billion of debt in a process that could take months. A failure to do so could further delay the flow of capital to hotel owners and developers, said Rich Conti, president of The Plasencia Group, an asset management and consulting company in Tampa, Florida.
This market snapshot is the fifth in a series of articles that HVS will be producing every month on a series of key markets with STR Global. Our analysis for this market is based on a sample of more than 25,800 rooms, as provided by STR Global.
Debt restructuring by Dubai state-run companies may almost double to $46.7 billion as more of the emirate’s businesses could need help making payments, Morgan Stanley said. Dubai Holding LLC, Dubai Holding Commercial Operations Group LLC, Borse Dubai Ltd. and Dubai Sukuk Center Ltd. may join Dubai World in restructuring debt, Morgan Stanley analysts Mohamed W. Jaber and Paolo Batori wrote in a report. Government- controlled Dubai World said last week that it’s in talks to renegotiate $26 billion of loans.
The developer of the Dubai Pearl mixed-use project is in talks with the Formula One racing group McLaren to brand a hotel and homes on the site. Abdul Majeed Ismail al Fahim, the chairman of Pearl Dubai, which is developing the Dh15 billion (US$4.08bn) project, said the initial terms of the deal had been agreed, although a contract had not been signed. The alliance would be announced when “the time is right”, he added. The proposed venture would follow a similar deal struck earlier this year with MGM Mirage, the Las Vegas leisure operator.
As financial crisis roiled much of the world in October 2008, the head of Dubai's biggest state-owned developer unveiled his latest megaproject: a $38 billion development that would include a tower nearly two-thirds of a mile tall. "I'm sure most of you are asking why we're launching this, and you'd be mad not to question it," said the executive, Chris O'Donnell, at a news conference. Though there would be economic ups and downs in the years needed to build the tower, he told listeners, demand would continue to outstrip supply. "The fundamentals in the market are too strong," he said. "There won't be a crash."
Prepare to be mesmerized. The newest architectural marvel of the Middle East, YAS Hotel in Abu Dhabi, was recently completed in conjunction with the launch of the inaugural 2009 Formula 1 Etihad Airways Abu Dhabi Grand Prix held at the new circuit built around the hotel. The hotel features the world’s biggest LED project to date, controlled through remote device management (RDM) protocol.
Dubai was supposed to be a new model for economic development in the Persian Gulf, and in the world. And like so many recent "new models," Dubai is proving to be a lemon. The theory was that Dubai would be a competitive, free oasis in a region generally hostile to the open market. Lacking oil resources of its own, it set itself up as a sponge to sop up resources-generated cash. Dubai would be the playground, shopping mall, financial center, cultural zone, beach resort, and second-home mecca of the global oil patch—New York, Las Vegas, and Miami wrapped up in one.
Nearly six months into its corporate restructuring, Dubai World, this city-state's flagship conglomerate, has mostly resisted selling off its trophy case of assets, from ports around the world to luxury hotels and a vintage cruise liner. After last week's announcement from Dubai that it is requesting a delay in Dubai World debt payments, the company may have less room to avoid a sale of some of its portfolio.
The emirate’s debt-fuelled spree has been exposed by the recession. Will UK banks and contractors get back their money? As he flew from Dubai to London last Sunday, Sheikh Mohammed bin Rashid al-Maktoum had plenty on his mind.In the four years since he had become ruler of Dubai, Maktoum had grown used to courting world leaders to visit and invest in his desert emirate. They admired the economic growth he had fostered as Dubai, fast running out of oil, turned itself into a tourism and finance hub.