A report published by Jones Lang LaSalle (JLL) exclusively for The Hotel Show Dubai 2015, has revealed that almost 50% of the 3600 hotel rooms coming onto the market in Dubai in the last months of 2015 have a three-star rating or lower.
According to the JLL report Dubai had 65,000 hotel rooms in the first quarter of 2015, and of these, 44% were five-star rated.
Now the luxury market is set to be rivalled by a supply of lower-graded properties with more competitive room rates, 44% of which are forecast to be graded 3-star or less and 69% to have four stars or fewer.
“In the first quarter of 2015, only 29% of room supply was reported at three-star or less,” commented Christine Davidson, group event director of dmg events hospitality portfolio which includes The Hotel Show Dubai.
“The new statistics revealed by JLL represent a significant shift for a market near-dominated by 5-star-or-above rated hotels, including the only seven-star property in the world.”
Davidson continued: “Almost 4000 new rooms entering the market this year will bring the supply of rooms in Dubai close to 70,000 in 2016.
“Dubai sets a high standard on the world-stage for development and innovation, and its hotel construction pipeline is currently prevalent in the MENA region and amongst the largest in the world.
“It is a contracts market, there is much business to be won here and we look forward to welcoming the 18,000 plus hospitality professionals who will travel to the region in September 2015 to find it for The Hotel Show and The Leisure Show.”
Laurent A. Voivenel, CEO of Dubai-based Hospitality Management Holdings (HMH), who will be speaking at The Hotel Show’s Vision Conference 2015 commented: “Hoteliers entering the market need to accelerate the development of budget room options to cater to demand from the growing middle classes, shorter-stay passengers travelling through Dubai International Airport, now the busiest in theworld, and attract new travellers from the emerging economies of Africa and Asia.
“This is a smart choice for investors due to lower construction and operating costs and quick and high return on investment.
“At HMH we are penetrating this segment with our ECOS Hotels, introducing to the Dubai market in 2016 a ‘no frills’ B&B brand tying together a unique economical and green concept.”
This year, Ibis Styles Dragon Mart, being developed by Nakheel’s Hospitality and Leisure division, is set to open.
The hotel is part of Nakheel's AED1 billion ($272 million), 177,000 square metre Dragon Mart expansion project, which also includes a second mall and a multi-storey car park.
Hilton Worldwide is to bring its mid-priced hotel brand, Hilton Garden Inn to Dubai this year.
An agreement was signed with Dubai-based Wasl Hospitality to open the 182-room Hilton Garden Inn Dubai Al Mina, between Bur Dubai and Jumeirah and Hilton Garden Inn Dubai Al Muraqabat in Deira, to offer 183-rooms.
The Hotel Show Dubai will take place 28-30 September at the Dubai World Trade Centre, with over 650 international exhibitors showcasing technology, interiors, operating equipment, horeca and much more.
Hotelier Middle East & Caterer Middle East have been appointed as the Exclusive Official Publisher for The Hotel show 2015