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In the next five years, over 100 hotels are expected to be opened in UAE. According to STR reports, at the end of January UAE had about 29,000 UAE hotel rooms in the pipeline – the second-highest in the region after Saudi Arabia, which has 37,000 rooms across 85 hotels over the same time period.
The new UAE hotel openings include Ramee Grand Hotel and Spa in Dubai’s Business Bay. The Dh 350 million, the 200-room project is expected to open in 2019 and will be owned by the Dubai-based Ramee Group.
Saudi and the UAE were followed by 8,462 rooms in 34 projects in Qatar and 5,734 rooms in 14 projects in Egypt. In the Middle East overall, there were a total of 159,581 rooms across 556 hotel projects in the pipeline. In Abu Dhabi alone, the average hotel room rate dropped 10 percent year-on-year in January to Dh465.80 as supply outstripped demand.
Very crucial discussion, which will be benefited for UAE visitors, finally happened at FNC. Recently, a FNC member raised the problem that the tourists living in the UAE should be given the same discounts at UAE hotels and attractions offered to visitors from other countries.
Sharjah member Ayesha bin Samnoh said that the Government should monitor the difference in rates, which could be more than double for people booking from inside the UAE. He also raised the problem with Sultan Al Mansouri, Minister of Economy, and admitted that Dubai hotel room that cost Dh450 when booked from outside the country – and Dh1,350 when booked inside.
In 2015, 3.9 million local tourists comprised 16 per cent of all visitors, and Dh34 billion was spent on internal tourism. He further alleges that the tourism was mostly managed by the private sector. Local tourists also did not usually plan ahead and instead book hotels on weekends or public holidays, when there was high demand and few discount offers.
Recently, Smartotels Hospitality International unveiled its most recent upscale hospitality brand Form Hotel. The new flagship will be launched in the UAE in the year of 2018.
A pioneering brand Form Hotel offers business and leisure traveler’s accessible premium hotel fundamentals with the flexibility of add-on service and amenity features in a technologically-advanced, design-forward and socially-responsible environment.
Developed by Dubai Contracting Company (DCC), and designed by Paris-based global architectural firm, Architecture-Studio, the new UAE hotel is currently under construction and is planned to open its doors in Q1 2018.
Form Hotel Dubai's facilities will include a rooftop infinity pool, lifestyle restaurant, a rooftop gym, a design boutique, and a boardroom. The hotel will be close to Downtown Dubai, Dubai International Financial Centre, Dubai Design District, Dubai World Trade Centre, and Dubai International Airport, one of the world's busiest airports.
Carlson Rezidor Hotel Group is all set to expand its foot prints in the Middle East Region and also aiming to become the top most group among Saudi Hotels. According to the latest reports, Carlson Rezidor will add more than 3,000 rooms to its existing operating portfolio of 8,500 rooms.
The hotel branches will be opened across the UAE and Kingdom of Saudi Arabia. However, by the end of 2017, the UAE hotels openings will witness Carlson Rezidor adding almost 1,000 rooms to its operating portfolio, making it 13 hotels and 3,000 rooms in operation. This includes the opening of Radisson Blu Hotel, Dubai Waterfront.
2017 also sees the Group open its first UAE hotel in Makkah, Park Inn by Radisson Hotel, Makkah Al Naseem. Well, concentrating big on Saudi Hotels, Carlson Rezidor is also on its way to achieve its target of more than 23,000 rooms open or under development in Africa by the end of 2020.
UAE Hotel revenues are still slowing down as operators slash their rates to withstand pressure of rising competition brought on by an oversupply of rooms. According to reports, the UAE continues to attract a good number of tourists, but demand growth is simply not keeping pace with the rapid expansion in inventory.
The hospitality sector has recently witnessed new hotels in UAE opening up, with at least 5,500 rooms entering the Dubai market since the beginning of 2016. Budget accommodations, as well as other properties advertised on AirBNB, are also pushing some hoteliers to offer competitive prices.
Continued fall in visitor numbers from key markets, coupled with increasing competition from neighboring destinations, is also putting pressure on hotel performance. The latest data from STR showed that average daily rates (ADR) at hotels in UAE dropped 9.9 per cent to Dh711.41 in 2016 compared to a year earlier, while occupancy increased slightly by 0.5 per cent to 77. 3 per cent. In Abu Dhabi, room prices fell by 9.9 per cent to Dh467.49, while occupancy also declined by 3.6 per cent to 71.7 per cent.
JLL noted that while UAE Hotel rates and yields were expected to decline further over the short term, the medium-term outlook for the market remains positive due to the heavy government investment in expanding the city’s tourism infrastructure.
Dubai hotels Rixos the Palm, Hospitality Management Holdings hotels (Ajman Palace Hotel, Coral Beach Resort Sharjah, Coral Dubai Deira Hotel) noted a significant increase in the number of Russian tourists year-on-year.
Dennis Dolmatov, the business development manager, said "We expected to do better this month than the last as the ruble had strengthened, oil prices stabilized and destinations such as Egypt.”
UAE Hotel and hospitality authorities said that Russia arrivals during the eleven months of 2016 rose by 17 percent and the Russian tourist’s number enhanced by 53 percent.
In the recent months, the Russian economic outlook has improved and continues to grow against US dollar, reaching a new high since July 2015.
Tourists from the UAE and around the world are flocking to the Northern Emirates due to its unspoiled beaches, majestic mountains and competitive prices.
The Ajman Tourism Development Department reported that 552,220 tourists have stayed in Emirates hotels this year, compared to 509,658 last year. In Fujairah, over 760,000 visitors stayed in Emirates hotels, a 6 per cent increase from last year.
When asked about the same, tourists admitted that the prices, quieter roads and scenery are what attract them to the north over Dubai. Fujairah shows off the true Emirati culture and history and it is rich with historical places that tell the story of the emirates.
Meanwhile, Emirates hotels were planning to attract 50 per cent international travelers and 50 per cent visitors from neighboring Emirates with their exceptional service and low cost.
A boom in hotels in UAE construction sees positive growth despite falling revenues per room. According to a reports revealed by Top Hotel Projects, Hoteliers in the United Arab Emirates are bracing themselves for fresh competition. Hotels in UAE will see another 54,000 room addition by 2020. It is also heard that an increase on present numbers of more than a third.
However, despite slowing economic growth and falling revenues in important tourism markets such as Euro Zone and China, the boom in hotel construction enhanced. Large hotel chains including Paramount, Marriott and its subsidiary W Hotels would have UAE hotel branches.
At the same time, revenues per average hotel room an important indicator of financial performance have been falling in Abu Dhabi and Dubai over the past year. The emirate is aiming for 25m visitors to attend Expo 2020 and a continuing increase in visitor numbers afterwards. Expo 2015 in Milan attracted 20m.
Dusit International is leaving no stone unturned to continue its global expansion by making its debut as dusitD2 and DusitPrincess brand Hotels in UAE and China, respectively. The openings are part of Dusit International's strategy to expand its portfolio of international hotels and deliver gracious, Thai-inspired hospitality to the world.
The hotel comprises of 237 modern guest rooms and suites, three meeting rooms, a boardroom, a rooftop pool, spa, fitness centre, an all-day-dining restaurant specializing in Mediterranean cuisine, and a contemporary Thai restaurant.
Dusit International currently operates 29 hotels around the world and has 42 confirmed projects in the pipeline across four distinctive brands: Dusit Devarana, Dusit Thani, dusitD2, and DusitPrincess, all of which are inspired by the iconic hospitality and unique service artistry of Thailand.
Emirates Green Building Council (EmiratesGBC) has revealed the hotel report of the first-of-its-kind report called ‘Energy and Water Benchmarking for UAE Hotels’. The findings will evoke the sustainability initiatives the UAE’s hospitality sector.
The key finding of the study is unequal energy and water consumptions across UAE hotels and its initiation to reduce the carbon footprint by enhancing water and energy efficiencies. As a part of initiative total 46 hotels have been participated in the study for benchmarking and hotels will be provided with scorecards that will make UAE hotels to enhance their energy and water utilization protocols.
Among 46 hotels, 25 are eco-certified hotels, and 25 hotels have utilizing the energy sustaining technologies. EmiratesGBC will update, fine tune and repeat the benchmarking study on an annual basis.
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