Habtoor Palace on Dubai's Sheikh Zayed Road will add 1612 rooms to Dubai's inventory when it opens in 2015
Hoteliers have said they are confident that demand for hotel rooms in Dubai will live up to the emirate’s bulging construction pipeline of more than 13,300 rooms.
Latest data from STR Global revealed that the emirate has 13,349 rooms under construction in December. Furthermore, last month Al Habtoor Group unveiled Habtoor Palace, a US $1.33 billion mega project opening in 2015, comprising three luxury hotels and 1612 rooms adding to a number of new hotels opening on Sheikh Zayed Road.
The hotel chains are relying on a number of factors, including the reputation of Dubai as a ‘safe haven’ to keep the emirate’s hotel industry sustainable as more properties come online.
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“The economical situation is flourishing now in the UAE and there is major improvement in the market, especially demand for visitors to the country. [The news] shows that, parallel to the government of the UAE, we’re working hard to represent the country… to prove that this country is a safe haven,” said Al Habtoor Group chairman Khalaf Al Habtoor.
With Sofitel Dubai Sheikh Zayed Road opening in 2013, Sami Nasser, vice president Sofitel Middle East, Africa & Indian Ocean and general manager of Sofitel Dubai Jumeirah Beach, also told Hotelier that unrest in neighbouring Gulf countries could continue to fuel demand in the emirate.
“As long as there is continued instability in the region to key tourist destinations like Egypt, Tunisia, Syria, Bahrain, then Dubai will always benefit for being the safest, most modern, sunny destination in the region,” commented Nasser.
“As more hotels open it will inevitably affect your RevPar particularly as the competition increases and each hotel aggressively markets its property, reduces room rates and offers value-addded packages and promotions,” Nasser acknowledged.
“However, if we keep seeing increased inbound tourism from the region then we are optimistic we can maintain relatively consistent room rates,” he added.
Dubai to prove doubters wrong
Another opening on Dubai’s Sheikh Zayed Road, set to be Dubai’s largest hotel, is the 1614-key, two-tower, JW Marriott Marquis. The first 807 rooms of which are on track to come online in the fourth quarter of this year.
Marriott VP sales and marketing for the Middle East and Africa, Jeff Strachan, told Hotelier that Dubai would “prove the doubters wrong”.
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Feb 8, 2012 , USA
Dear Hotelier, Over 50 million pax through Dubai airport in 2011, Arab airlines forecast to have over 1000 planes, over 135 cruise ships docking at the Cruise terminal and growing, a bulging youth population which when they grow up will needs jobs, will travel, will go to training courses, meeti...
Feb 8, 2012 , United Arab Emirates
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