The boss of the company launching Dubai’s latest resort has said the city can accommodate the slew of hospitality projects coming on the market.
Abdulla Bin Sulayem, who heads family business Seven Tides, said in an interview published in Arabian Business that although Dubai has grown exponentially over the past decade with dozens of new hotels, research showed there was room for further growth.
Seven Tides recently launched the 293-room Anantara Dubai Palm Jumeirah Resort and Spa, marking the 17th new hotel opening in Dubai since June last year.
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When it welcomes its first guests, it will bring to 604 the number of establishments in the emirate, which already boasts some 81,500 rooms.
In a competitive hotel market, Anantara opens only two months after hotel giant Accor group opened its 543-room Sofitel Hotel on the Palm Jumeirah, three months after the 252-room Oberoi Hotel opened in Business Bay, and ahead of Accor’s 465-room Novotel Hotel Dubai Al Barsha opens next month.
Other upcoming openings include the Sofitel Downtown, Conrad Hotel on Sheikh Zayed Road and Intercontinental Hotel in Dubai Marina.
Citing TRI figures, Bin Sulayem said Hotel Revenue Per Available Room (RevPAR) year-on-year in May showed a 6.6 percent growth in occupancy to 83.9 percent and 8.5 percent growth in Average Room Rates (ARR) to $282.72.
Total Revenue Per Available Room (TrevPAR) grew 14.9 percent to $439.51, boosting Gross Operating Profit Per Available Room (GOPPAR) by 30.9 percent to $192.73.
Mastercard’s latest Global Destination Cities Index also predicts Dubai will finish as the seven-most popular destination this year with 9.89 million overnight visitors, while overnight visitor spend is forecast to be $10.4bn in tourism receipts, eclipsing cities such as Barcelona and Rome.
If it continues at the current annual growth rate, by 2016 it will have moved into third place, above Paris and Singapore, which attract 13.92 million and 11.75 million visitors a year respectively.
Dubai is targeting 20 million international visitors annually by 2020.
“Given these independent statistics, yes, I am even more confident that Dubai will continue to grow as a destination and the market here will grow still further,” Bin Sulayem said.
Bin Sulayem said Seven Tides also plans to expand its portfolio but declines to give specifics.
Currently, the company owns the Movenpick-branded hotels at Ibn Battuta Gate and Deira, the Oceana Residences, on the Palm Jumeirah, and the boutique Dukes Hotel in London.
“I don’t want to (confirm new projects). Until we have (them) in concrete I don’t like to talk about it,” Bin Sulayem said.
“Obviously, we have the passion and we have the intention to grow and have new products.”
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