Hotel apartments on Palm Jumeirah in high demand
Deloitte report reveals average occupancy of 68% over last 18 months
A Deloitte report commissioned by Seven Tides has highlighted a sustained demand for luxury internationally branded units, as investors look to Dubai on back of the Expo2020 win and economic growth prospects.
The report, titled 'Assessment of Luxury Serviced Apartment Provision for Palm Jumeirah Dubai' shows a sustained growth at the nine high-end hotels on the man-made island, with the last 18 months revealing an annual average occupancy of 68.1%, Average Daily Rate (ADR) of AED 1,734 (US $472) and Revenue per Available Room (RevPAR) of AED 1,221 ($332) in 2012. Between January and July 2013 the figures were 71.6%, AED 1,678 ($457) and AED 1,243 ($338) respectively.
Seven Tides CEO Abdulla Bin Sulayem said: “Palm Jumeirah currently has a total of 950 luxury serviced apartments managed by international hotel operators, and the Deloitte report confirms that the sector is continuing to mature and continues to attract a growing target market looking for a prime location and the luxury beachfront resort lifestyle.”
According to Dubai Statistics Centre figures, the serviced apartment sector has shown steady growth over the last five years with a compound annual growth rate for number of guests and length of stay increasing by 14% and 19% respectively; with strong interest from GCC nationals in particular.
The findings in the report follow an announcement by the Dubai Department of Tourism & Commerce Marketing (DTCM), which plans to expand the Emirate’s current accommodation offering by permitting the rental of furnished properties as short-term holiday lets through a new two-tier licensing system.