Damac expects its hotel occupancy to remain strong as it seeks to boost UAE portfolio

DAMAC Hotels & Resorts, Damac Properties’ hotel arm aims to expand its portfolio in the UAE and is looking for opportunities overseas as it expects “strong” occupancy at its properties this year.

Jean Faivre, senior vice president of DAMAC Hotels, said the company will open a new hotel in Dubai by the end of the year, in partnership with Rotana Group and another hotel in DAMAC Akon. National in an interview.

“In terms of expansion, we are always very keen to look for new opportunities. We will open Navitas Rotana by the end of the year and early next year we are looking at opening Aykon City on Sheikh Zayed Road,” said Mr Faivre.

Outside the UAE, “we are looking at a number of opportunities, which I would like to keep under wraps for now as it is still being finalised”.

In Dubai, Damac’s hospitality division currently operates seven hotels including Paramount Midtown, Damac Tower by Paramount Hotel Dubai, Radisson Hotel Dubai Damac Hills, Damac Maison Cour Jardin, Damac Maison Distinction, Damac Maison Mall Street and Damac Maison Canal Views.

Its product portfolio includes more than 5,000 rooms, with an additional 300 to be added when Navitas Rotana opens later this year.

Dubai’s tourism industry has rebounded strongly from the impact of the coronavirus pandemic, supported by government initiatives and the successful hosting of Expo 2020 Dubai and other events this year.

hosted by the emirate 7.12 million international tourists Official figures show tourist arrivals in the first half of 2022 were about triple the 2.52 million in the same period last year.

Across the UAE, tourism revenue exceeded AED19 billion (US$5.17 billion) in the first half of the year, while total hotel guests reached 12 million during the same period, an increase of 42%, Sheikh Mohammed bin Rashidthe vice-president and ruler of Dubai said this week.

The UAE, the second-largest economy in the Arab world, expects a “robust tourism recovery” this winter, he said.

“Our metrics today are stronger than those before the pandemic, our economy is growing faster than before the pandemic, and our tourism, business and development sectors are bigger than before the pandemic,” Sheikh Mohammed tweeted.

lust Mr Faivre said that in the first eight months of the year, occupancy rates at its Dubai properties were over 70 per cent, a 20 per cent increase compared to last year.

He said the occupancy rate is expected to reach 75% to 78% by the end of the year as new tourists pour into the UAE.

The recovery is expected to continue due to new visa regulations and the prospect of more football fans arriving in Dubai from neighbouring Qatar as the Gulf nation hosts the FIFA World Cup in November.

“We are confirming what Sheikh Mohammed said, namely [it] It’s a very strong market,” Mr Faivre said.

“We’re looking at having a very strong ‘active readiness’ to host fans … we’ve got two months to go and with all the events going on in Dubai to host fans, we’re certainly expecting very strong occupancy and revenue not only for hotels Occupancy, but also food and beverage and all other revenue. So we’re very optimistic about the balance this year.”

Mr Faivre said the UAE’s new visa regulations, which allow tourists and holidaymakers to enter and stay in the UAE for 60 days instead of the previous 30 days, will also have a positive impact on occupancy.

DAMAC hotels have been hosting guests from GCC countries, the UK and Israel. Some domestic travelers also checked their properties in light of the accelerated stay-at-home trend during the pandemic.

“We have a lot of customers and visitors from Israel…the demand from there is very strong, the local domestic demand and [from the] GCC Changes and Barriers Fall [related to Covid-19]’ added Mr Fever.

Updated: September 19, 2022 3:30am