Breaking Travel News

Dubai expands into mid-tier as luxury market saturates

Dubai expands into mid-tier as luxury market saturates

A new report from Jones Lang LaSalle has revealed almost half of the 3,600 new hotel rooms to enter the Dubai market in the final months of 2015 have a three-star or lower rating.

The JLL report finds there was a supply of almost 65,000 hotel rooms in Dubai in the first quarter of 2015, 44 per cent of which are five-star rated.

Now, the near-saturated luxury market is set to be rivalled by a supply of lower-graded properties with more competitive room rates, 44 per cent of which are forecast to be graded three-star or less and a total 69 per cent at four-star or less.

“In the first quarter of 2015, only 29 per cent of the current room supply is reported at three-star or less,” commented Christine Davidson, group event director of dmg events hospitality portfolio.

“The new statistics revealed by JLL represent a significant shift for a market near dominated by five to seven star or above rated hotels, including the only seven-star property in the world.”


Davidson continued: “Almost 4,000 new rooms entering the market this year will bring the supply of rooms in Dubai close to 70,000 in 2016.

“Dubai sets a high standard on the world-stage for development and innovation, and its hotel construction pipeline is currently prevalent in the MENA region and amongst the largest in the world.

“It is a contracts market, there is much business to be won here and we look forward to welcoming the 18K plus hospitality professionals who will travel to the region in September 2015 to find it for The Hotel Show and The Leisure Show.”

Dubai’s appetite for luxury is still present as alongside the five-star Palm Tower on Palm Jumeirah, some of the most luxurious properties the city has seen will open in coming years.

Openings this year include five-star Palazzo Versace at Dubai Creek, movie-themed Paramount Hotel in Downtown, Starwood’s first St. Regis Dubai on Sheik Zayed Road, and the first Hard Rock Hotel in the Middle East in Marina 101, the second tallest building in the UAE behind the Burj Khalifa.