The global hotel investment market reached a staggering US $40.4 billion in the nine months to September 2014, the highest figure seen since 2007. One of the most active places for hotel investors is the United Arab Emirates, and particularly Dubai. So why should hotel investors choose Dubai? Here are four good reasons…
Any hotel investor wants to invest in a location where tourism is booming, and right now there are few better choices than Dubai. The emirate has firmly established itself as one of the globe’s top travel destinations and has consistently increased visitor arrival numbers year-on-year. More than 11 million people visited Dubai in 2013, which is more than 10 per cent more than the previous year.
This has clearly been great news for hotels in the emirate, with revenues adding up to a whopping Dhs21.84 billion during that year as Dubai’s hotels saw record numbers of guests checking in for ever-longer stays. Consistent occupancy rates of around 80 per cent will also prick up the ears of hotel investors since they only earn revenue from their investment when rooms are occupied.
Despite the outstanding success, Dubai has a strong desire to become even more popular and has set itself some very lofty targets. The Dubai Department of Tourism and Commerce Marketing wants 20 million visitors to Dubai by 2020, and whilst it’s a little early to tell if that will be achieved, the signs are certainly good. That particular target falls in line with the year that Dubai hosts the prestigious World Expo, an event which is set to put Dubai on the map even more so than it is today and is expected to attract 25 million visitors over just a six month duration. Dubai provides hotel investors with an opportunity to tap into an already successful hotel market that is likely to grow even more in the future.
Hotel investors certainly have plenty of choice in Dubai, with many new and exciting developments on the horizon. One such development is the new Sky Central Hotel, which is will be operated by Wyndham Hotel Group and is set to provide hotel investors with a golden opportunity to invest in a prestigious address in the heart of the city. Many other world famous hotel brands also have a strong presence in the emirate, thus providing investors with a fantastic choice of lucrative developments.
It’s certainly easy to see why Dubai continues to be such a popular place to visit. The city is vibrant and exciting, with an ever-changing skyline that includes some of the world’s most prestigious and ambitious property developments. The Dubai skyline is the envy of the world, whilst the backdrop of the ocean and dessert provides a beautiful and unique ambiance that is sure to impress any visitor.