SPACE FOR LUXURY?
Among luxury operators, there were mixed views as to the impact, with local companies Jumeirah Group and Emaar Hospitality remaining bullish on development.
“We are exploring expansion options for all our brands that will offer truly distinct guest experiences,” said Philippe Zuber, chief operating officer, Emaar Hospitality Group.
At Jumeirah, Nicholas Clayton, chief operating officer, said opportunity extended beyond the traditional hotel product.
“The Expo will make the world sit up and take notice — and deepen their understanding of what Dubai genuinely has to offer, not just as a place to visit on holiday or on business, but as a home to build a life, a family, a career or an enterprise. In the bigger picture, we expect to gain in terms of business, access to great talent and opportunities for growth.
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“In addition to developing and operating more hotels in the UAE, the winning Expo bid has also inspired us to further develop our capabilities within our restaurants and wellness businesses,” Clayton revealed. “These specialised sectors have the ability to grow on an independent basis given the overall demands of the market.”
Of the group’s portfolio he added: “Jumeirah currently operates eight hotels in Dubai and one in Abu Dhabi. We also operate Wild Wadi waterpark and the Emirates Academy of Hospitality Management. Furthermore, construction has started on a new 430-room luxury hotel next to Mina A’Salam, which will be complete in around two years.
Our growth strategy is centred on expansion in the Middle East, Africa and Asia — and as the leading luxury operator in the UAE, we expect to see new opportunities emerge as investors realise the further potential of Dubai and Abu Dhabi as the prime location for successful luxury hotels”.
However, at Fairmont Raffles Hotels & Resorts, Francois Baudin, senior vice president development, EMEA, said the company “did not expect any particular impact on our business development driven by Expo 2020”.
He explained: “FRHI Hotels & Resorts brands reached a certain maturity in business in Dubai with three current properties in operation (Fairmont The Palm, Fairmont Dubai, Raffles Dubai) and three hotels under development (Fairmont Ajman, Fairmont Fujairah and Swissôtel Dubai) set to open prior to the Expo 2020.
“We believe that those expectations [of growth] will mainly focus on the midscale hotels development and boutique hotels, especially with the launch of new projects like Mohammed Bin Rashid City, Dubai Design District. Our three brands (Fairmont, Raffles and Swissôtel) are positioned on the upper upscale and the luxury segment,” said Baudin.
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