The skyline of Dubai, which is likely to see more than 8000 new rooms come online in 2013 alone, with more than a third of those being positioned in the luxury segment. The skyline of Dubai, which is likely to see more than 8000 new rooms come online in 2013 alone, with more than a third of those being positioned in the luxury segment.

Hotelier Middle East looks at hotel performance and development in the Emirates for what is likely to be a very promising 2012 for all and considers the future beyond that

Dubai
So far, 2012 has been an extremely positive year for Dubai’s hospitality industry and, with a number of high-profile openings scheduled by the year-end, the excitment only looks set to continue.

The latest HotStats data from TRI Hospitality Consulting (see chart) shows that Dubai hotels have had an excellent year to date due to strong demand from corporate, conference and leisure markets.

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“RevPAR levels reached a three-year high in April as a result of strong average daily rates from the corporate and conference segments,” Christopher Hewett, a consultant at TRI Hospitality Consulting tells Hotelier Middle East.

“A number of Dubai’s annual events, including the Dubai World Cup, the Duty Free Tennis Championship and the Arabian Travel Market, recorded increased attendees in 2012, helping to drive hotel demand,” continues Hewett.

There were a total of 386 hotels comprising 53,839 rooms in Dubai at the end of May (excluding hotel apartment buildings) according to data obtained from Dubai Tourism and Commerce Marketing (DTCM). This is set to significantly increase as the year draws to a close.

Notable openings scheduled for the fourth quarter of 2012 include tower one of the JW Marriott Marquis Dubai, adding 804 keys to the market; the 381-key Fairmont The Palm Dubai and 552-room Conrad Dubai.

Future focus
This year has also welcomed several exciting announcements for Dubai. Just last month, Four Seasons Jumeirah Beach Resort was launched — scheduled to open in 2014. The luxury operator previously had a property planned for the Festival City area, but this was called off in the midst of the downturn in 2009.

Its new property will add 237 rooms to the market, and be located in an 11 acre site. “Being the Middle East’s biggest tourism hub with a highly mature hospitality industry, it was important for us to be in Dubai with a strong product that can serve as one of the company flagships in this region,” Four Seasons Hotels and Resorts president and CEO Kathleen Taylor said.

One of the most-read stories on HotelierMiddleEast.com this year so far is Al Habtoor Group’s unveiling of a $1.33 billion Dubai hotel and theatre complex being built on the site of the old Metropolitan hotel. Shortly after the announcement, news broke that the appointed operator, Starwood, would open St. Regis, W and Westin there in 2017.

This complex will add 1675 keys to the emirate in total, as well as a 1100-seat theatre, shopping arcade and sports academy.

With Dubai’s high hotel performance being largely attributed to its reputation as a peaceful option for domestic travellers amid regional unrest, the question is whether it can sustain this as more than 20 hotels come online between now and the end of 2013.

Included in this total is a number from regional hotel groups which know the market very well, and believe that the emirate is far from hitting its potential.

Bin Majid Group, which currently has three hotels open in Ras Al Khaimah, in April announced that it is to open a Dubai property in early 2013 to add to its collection.

International brands are also continuing to expand, with Sofitel planning to open hotels on both Palm Jumeirah and Sheikh Zayed Road.

Hewett believes the emirate can maintain its momentum: “Dubai’s appeal to regional tourists will continue to drive demand throughout the remainder of 2012, especially in light of the ongoing regional problems in Syria, Lebanon along with the political fragility in Egypt.

“We believe Dubai will continue to perform well throughout the rest of 2012 and into 2013 as it cements its position as the leading corporate, financial and tourism destination in the region,” he concludes.

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