The First Group is poised to thrive as good times return to the Dubai market

by JBrown on July 23, 2012

in Lifestyle, Property

Post image for The First Group is poised to thrive as good times return to the Dubai market

Report says Dubai hotel sector has returned to levels of occupancy last seen in 2008, which is great news for prospective investors

A new report from TRI Hospitality Consulting suggests that Dubai will remain one of the top-performing hotel markets, which is great news for the emirate’s major property developers such as The First Group.

The TRI report indicated a 10% rise in hotel guests in 2011 compared to 2010, while the number of guest nights clocked in at 32.8 million in 2011, an increase of 23% on 2010. Figures also released by TRI Hospitality revealed that room occupancy rose from 1.9% to 82.1%, while average room rates climbed by 7.6% to US$205.50. Dubai hotels contributed to 23.2 million guest nights, while hotel apartments accounted for 9.5 million.

TFG Marina Hotel

All Dubai’s property groups will be delighted by the new data. The luxury end of the market, especially, is buoyant with occupancy back to 2008 levels. The First Group, for example, have a number of properties that fall squarely into the luxury category. TFG Marina Hotel, for one, boasts a superb location in the Dubai Marina area, one of the most desirable places to live in the emirate.

The Marina has waterside and sea views, as well as a lively cafe and restaurant scene. The Jumeirah Beach Walk is a stretch of al fresco dining and shopping on the seafront. One of the emirate’s best places to shop, the Dubai Marina Mall, is also on hand.

The Marina Hotel is minutes from all the beaches, retail space, cafes and restaurants. It features an exclusive Club House, rooftop pool, sun deck and state-of-the-art gymnasium. With Dubai topping the global charts in terms of hotel occupancy, it would appear to be a secure moment to invest in the city’s hotel industry. The Marina Hotel could represent a potentially lucrative opportunity to become part of Dubai’s thriving hotel industry at a time when property values are increasing.

Good times return

The great thing for investors is that a number of reports – of which the TRI Hospitality Consulting one is the latest – have predicted that good times have returned to the Dubai hotel sector.

The Managing Director of TRI Hospitality, Peter Goddard, suggested as much in a recent Gulf News report. Goddard said the boom days were back and that a majority of Dubai hotels were running at occupancy levels comparable to 2008. He predicted that this trend would continue.

The TRI Hospitality report said that a breakdown of hotel revenue showed hotels in Dubai had quite balanced revenue streams, with 55.4% of income coming from rooms and 37.6% from food and beverage. The one slight black mark was that there was a slight slowdown in the supply of hotel rooms to 5.4%, but that was mainly due to construction delays over the last two to three years following the credit crisis.

Expansion

The Dubai hotel market has been undergoing rapid expansion. According to the TRI Hospitality database, as recently shared with Gulf News, 12 new properties (3/4/5 star hotels) with roughly 3,600 keys (rooms) opened last year. And the consulting firm estimates that 18 new properties are scheduled to open in 2012 with around 6,600 keys, which will add to the vibrancy and global attraction of the city’s hotel market.

Dubai there are 386 hotels comprising 53,999 rooms at present, according to the Dubai Department of Tourism and Commerce Marketing’s (DTCM) latest available data, in addition to 190 hotel apartments comprising 21,400 flats.

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