140,000 hotel rooms needed in lead up to Expo 2020
Dubai’s hospitality sector continues to grow at a rapid pace as the lead up to the global event pushes construction of hotels and hotel apartments across the city
Investors and developers will have to build 10,000 hotel rooms per year to reach the target of 140,000 hotel rooms and serviced apartments to accommodate visitor traffic during Expo 2020.
Dubai’s hospitality sector continues to grow at a rapid pace as the lead up to the global event pushes construction of hotels and hotel apartments across the city, according to a report by developer Schon Properties.
Noorul Asif, Chief Operating Officer of Schon Properties said: “Dubai’s hospitality market is segregated and spread throughout the city, but there are niche tourism hot spots which are expecting massive gains in the next three years."
These include areas such as Dubai Investment Park, being located directly next to Expo, as well as other nearby areas which will give high returns to investors.
Dubai currently has 672 hotel and hotel apartment complexes with 12 more added in the last 11 months from 670 last year.
Of the more than 100,000 hotel rooms and serviced apartments currently available in Dubai, nearly 32% belong to the five-star category while more than 22,000 rooms fall under business hotels or four-star category.
Hotels under a 1-3 star rating are still a largely underserviced category in the market.
Schon Properties recently announced the development of its $875m iSuites project near the Expo 2020 site, comprising of 2,550 hotel apartments within Dubai Investment Park.