Dubai witnesses rise of mid-market hotel development
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A recent report by Jones Lang LaSalle (JLL) for The Hotel Show Dubai 2015 revealed that almost 50% of the 3,600 new hotel rooms to enter the Dubai market in 2015 have a three-star or lower rating.
JLL reported a current supply of almost 65,000 hotel rooms in Dubai in Q1 of 2015, 44% are five-star rated. Now, the near-saturated luxury market is set to be rivalled by a supply of lower-graded properties with competitive room rates, 44% of which are forecast to be graded three-star or less and a total 69% at four-star or less.
“In the first quarter of 2015, only 29% of current room supply is reported at three-star or less,” commented Christine Davidson, group event director of dmg events hospitality portfolio.
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. It is a contracts market, there is much business to be won here and we look forward to welcoming the 18,000 plus hospitality professionals who will travel to the region in September 2015 for the Hotel Show and Leisure Show.”
The Hotel Show Dubai will take place from 28-30 September at the Dubai World Trade Centre, with over 650 international exhibitors.
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