Strong returns prompt investors to open more hotels in Dubai

Assistant partner and hotel real estate expert at Cavendish Maxwell, Gergely Balint, said that strong returns are pushing investors in Dubai to open more hotel facilities, noting that the thriving tourism industry in the emirate makes it an attractive point for hotel investors, and the factors that contribute to this include The trend is high occupancy rates throughout the year, which translates into strong returns on investment as demand continues to outpace supply.

The company, which specializes in real estate consulting, said earlier that the hotel market in Dubai is expected to witness the addition of 10,120 hotel rooms during the period between the second half of this year and the end of next year, within 40 facilities of various categories.

Balint added to Emirates Today: “Diversified revenue sources, with additional services such as restaurants, spas and retail offerings, contribute to the strong financial performance of the hotel sector, and while Dubai attracts travelers of all categories with all budgets, the city’s international reputation as a luxury destination is particularly important.” “Al Khas attracts high-net-worth business travelers and tourists, who are willing to pay premium prices for accommodation.”

He stated that the hotel industry in Dubai has witnessed tremendous growth in recent years, driven by several factors, including the emirate’s strategic location, excellent infrastructure, stable economy, and strong air transport connectivity, noting that in addition to that, the Dubai government is implementing a set of initiatives in the tourism sector. , as well as significant investments in infrastructure, have created a favorable environment for the hotel industry as a whole.

Balint continued: “Dubai’s iconic landmarks, diverse shopping and entertainment options, and many cultural events attract millions of visitors from around the world every year, and these people need accommodation,” pointing out that accommodation in Dubai varies from luxury hotels and resorts to medium-sized establishments in The city, which makes the city accessible to all budgets.

He said: “In addition, Dubai’s well-established position as a global business centre, along with world-class meeting, incentives, conferences and exhibition facilities, attracts a large number of business travellers.”

He pointed out that new initiatives, such as the visa at the level of the Gulf Cooperation Council countries, will work to strengthen the tourism industry, and thus the hospitality sector.

He added that the hospitality sector in Dubai is poised for long-term growth, thanks to sustainable tourism growth, mega projects and future tourist attractions that will attract more visitors and enhance demand for hotels, and the continued adoption of technology in the hotel industry, such as artificial intelligence and automation, It will improve efficiency and enhance guest experiences.

Balint stressed that in the long term, the prospects for hotel investment in Dubai are positive, noting that the tourism sector in Dubai continues to consistently outperform global standards, as Dubai won the title of best global destination in the “Travellers’ Choice Awards 2024” from the “Trip Advisor” website. This makes it the first city in the world to achieve this achievement for the third year in a row.

He said that this continued success is evident in a record increase in the number of visitors on an annual basis and Dubai’s consistent ranking among the best international tourist destinations, in terms of visitor satisfaction and experiences.

He added: “As a major contributor to Dubai’s gross domestic product, the tourism and hospitality sector generates significant revenues.”