These will join the previously announced Viceroy Palm Jumeirah, an AED 3.67bn ($1bn) project being developed by SKAI Holdings and featuring 479 large rooms and suites and 222 signature Viceroy Residences. The resort has a unique investor model that enables buyers to purchase hotel rooms, which are then leased back in exchange for 40% of the room revenue. Based on current market conditions, investors’ annual rate of return is estimated at 12%.
“We’ve been working with SKAI Holdings for over a year; that’s moving forward very quickly, the collaboration is unbelievably positive, its going to be an extraordinary hotel,” comments Walshe. “Having city presence as well as Palm, as well as the beach, is giving us a platform for brand visibility, which will help us extend our reach into key source markets.
“It gives us additional marketing power, it makes us more credible as a partner for airlines, operators, travel agencies, and we are absolutely thrilled. The quality of the hotels that we’re going to do in the city will match that of Palm Jumeirah.”
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Walshe says “the goal was always to have a city presence and a beach presence” in Dubai, but with that achieved, “we’re done”.
“The goal is not to have multiple Viceroy flags flying around Dubai; the goal is to have correctly positioned super quality products in the key areas of the city being business and leisure, which can help each other in a lot of opportunities for positive cross collaboration,” he clarifies. “But we’re not a cookie cutter brand, we’re a modern luxury brand, we’re an exclusive brand and I think that we can very easily maintain that aura of exclusivity and that position with the hotels that we’re opening, but that’s it.”
Of projects elsewhere, Walshe is a little more vague, revealing that projects are on the drawing board but yet to be announced.
“We have announced three hotels, all in Dubai and I have three more hotel management agreements signed but not yet announced — one in the US and two outside, and I expect to confirm another minimum of three hotel management agreements this year, all of which are currently at advanced LOI stage, all of which are future new builds. So what we’re focusing on right now is creating the future of Viceroy, and none are in this region beyond those three. We’ve got to start stepping into Latin America, we have our first European opportunities coming, so there’s a lot happening. We’re focused now on openings in late 2016 with Viceroy Dubai Palm Jumeirah and beyond that in 2017, 2018, 2019. I think the next announcement we make will be about another major gateway city in the US, a new build hotel to open in 2017, which will be phenomenal,” reveals Walshe.
Development of Viceroy Istanbul is delayed, leaving for now the focus very much on Dubai, with renderings and details of concepts for both Viceroy Dubai Palm Jumeirah and Viceroy Dubai Business Bay set to be unveiled soon.
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