Damac to develop 8,000 hotel apartments
Dubai, July 8, 2013
Dubai-based Damac Properties will develop about 8,000 luxury serviced hotel apartments over the next three years, in addition to the Paramount Hotel, Dubai to cater to the increased tourist demand, the company said.
Dubai’s drive to attract 20 million tourists to the Emirate a year by 2020 will see the current hotel capacity reached within just three years, said senior executives from Damac Properties.
Last year the number of tourists topped 10 million for the first time.
The latest Hotstats report on the hotel industry for the Middle East show that occupancy rates in the first quarter of 2013 stood at 83.9 per cent, up from 77.3 per cent in the same period last year. Total Room RevPar (Total bedroom revenue divided by the total available rooms) had also jumped to $237.13 from $201.35. Average Room rates also followed the upward trend, jumping from $260.46 in Q1 2012 to $282.72, it said.
This was supported by the recent Ernst & Young Middle East Hotel Benchmark Survey which reported that Dubai’s overall occupancy rate was 83.6 per cent. In addition, RevPAR increased by 10.4 per cent year-to-date and 6.8 per cent in terms of monthly performance, as average room rate also increased by 7.3 per cent year-to-date and 6.4 per cent in terms of monthly performance.
“Even with more hotels coming online in the next few years, Dubai’s exponential growth as an attractive global tourist and business destination will see demand exceed supply by 2016,” said Ziad El Chaar, managing director, Damac Properties. “The luxury serviced hotel apartments sector is currently underserved, despite a huge desire for visitors to experience five-star services in the comfort of their own homes.”
The company is focussing its delivery on hotel apartments in the Burj Area of Dubai – a district which attracts more than 65 million visitors a year and has become the central hub for both visitors and tourists.
The Signature in the Burj Khalifa area of Dubai, Damac Properties’ first hotel apartments project began handover last month, with 355 units overlooking the world’s tallest tower. The project will be run by Damac Maison, the company’s luxury management and services arm.
Other projects to be completed this year by the company include Capital Bay, The Cosmopolitan, Water’s Edge and The Vogue. The Distinction, Upper Crest, Bay’s Edge and the iconic Damac Towers by Paramount are also set to open by 2016.
The latest report from the Dubai Economic Council (DEC) for Q4 2012 shows that real estate in Dubai has grown by 94 per cent compared to the corresponding quarter of 2011, with the average price per sq m for apartments increasing by around 3 per cent.
Damac Properties has completed 8,890 units to date spanning 9,070,264 sq ft. It also has a further 19,136 units at various stages of progress across the Middle East region covering 23,816,070 sq ft, out of which 5,193 units will be completed in 2013. - TradeArabia News Servce