Deyaar plans more hospitality projects in Dubai
Deyaar Development is planning on launching more hospitality projects across Dubai this year
Deyaar Development is planning on launching more hospitality projects across Dubai this year, a company official has said.
The developer is currently planning a number of hospitality projects across Business Bay, Al Barsha, and Dubai South, with its Mont Rose, three-building development set for completion by the fourth quarter of the year.
Speaking to Construction Week, David Milligan, head of projects and commercial, Deyaar Development, said: “The Atria [in Business Bay] is due for delivery by the end of the year, and is going very well at the minute.
“We have also entered a joint venture with Dubai South as the master planner and there will be a hospitality component to that project as well.”
The developer also hinted at a hotel project coming online soon within its Midtown development in Dubai Production City. Deyaar said it will announce more information on the project soon.
Deyaar’s pipeline of projects has followed similar announcements by developers who have launched a plethora of hotel projects across the region in the past year.
However, occupancy rates in the Middle East have shown a gradual decline over the past several years, though Dubai continues to come out on top with the highest revenue per average room (RevPAR) in the MENA region, according to EY’s recent MENA Hotel Benchmark report
“At one point, the occupancy [in Dubai] was around 92%, and though it has gone down to more than 75% at the minute, I think it’s consistent enough at that level to still be profitable,” Milligan said.
Hospitality markets across the Middle East and Africa (MENA) region have witnessed a softer performance in the first half of 2017 when compared to the corresponding period of last year, the EY report revealed.
This drop in numbers has been attributed to the majority of regional markets experiencing a drop in RevPAR due to a slower global economy and an increase in supply in some markets like Saudi Arabia and the UAE, making the first six months a challenging time for the hospitality industry, the report further highlighted.
Milligan also attributed the drop in occupancy to the exchange rate; with the dirham pegged at a fixed rate to the US currency, this has caused prices to slightly inflate.
“But hospitality-wise, you look at the amount of industries holding conventions [in Dubai] and many companies now holding their annual meetings here; the focus is on business, but also on becoming a tourist destination, and you can see that with the growing [hospitality] portfolio [in the UAE],” Milligan added.