Dubai set to see more mid-market hotels by 2020, says DTCM
Developers and hospitality chains respond to government incentives to encourage more three- and four-star hotels
Dubai can expect to see more mid-market hotels in the coming years as a result of government incentives, according to the Department of Tourism and Commerce Marketing (DTCM).
As the city gears up to meet its vision of hosting 20 million visitors a year by 2020, it will need to expand offerings beyond the luxury segment for more price-conscious travelers, the government body said.
“While Dubai is well known for its impressive array of luxury properties, we are keen that the city also caters to those on a more restrictive budget by offering high-quality mid-market accommodation. We want to ensure that our accommodation caters to all categories of visitor,” said Issam Kazim, chief executive of DTCM.
As of January this year, Dubai had 93,030 hotel rooms with the figure set to rise to between 140,000 and 160,000 by 2020. The additional rooms will comprise different asset classes, including hotel apartments, and around 20,000-35,000 rooms are expected from the mid-market hotel sector.
At this year’s Arabian Travel Market, a range of mid-market brands were on show, including Hampton by Hilton, the result of a recently announced partnership between hotel chain Hilton Worldwide and the UAE-based Wasl Hospitality and Leisure. Under the agreement, two Hilton Garden Inn properties will open in Dubai later this year, with a third to be launched in Mall of the Emirates in 2016. There will be two more in 2017, the Hampton by Hilton Dubai Al Qusais and the Hilton Garden Inn Dubai Al Garhoud.
Rove Hotels, a partnership between Dubai developers Emaar and Meraas, was another midmarket brand showcased at ATM. Ten properties under the brand will be rolled out by 2020.
Dubai’s Jumeirah Group is also expanding outside the luxury segment, with the launch of its first mid-market brand Venu. The group has signed with Meraas to operate the first Venu hotel on Bluewaters Island.
In addition, UK brand Premier Inn will open the Premier Inn Dubai Healthcare City and Premier Inn Ibn Battuta Mall in 2016, while the Intercontinental Hotels Group will open its Holiday Inn Dubai World Central and Staybridge Suites Dubai World Central this year.
Budget hotels will also be seen at prime locations in the city, with Dubai-based Byblos Hospitality set to open a 144-room low-cost hotel at Palm Jumeirah in 2016.
Incentives offered by the Dubai government to encourage the three and four-star segment included: waiving a 10% municipality fee levied on the room rate for each night of occupancy for a specific period; reducing construction-approval process to two months; standardising all approvals through the Dubai Municipality; and allocating government land for such hotels.
