Currently, both international and local real estate developers are progressively paying attention for building more three and four star hotels in Dubai. Dubai is now being the limelight area and it is lately attempting to get to be the primary recreational center of the Middle East. Besides the expatriate community, there are more and more visitors from all the countries are paying their visit to Dubai annually.
As a result, the demand for accommodation in Dubai is very high particularly those hotels that are fall in the high end segment. You are going to see that there are a lot of five star hotels sprinkle around the Dubai’s areas and there still many more are pending for annoucement for the hotel construction projects. However, there seem to be a lack for talking care of those who are looking for lower end of accommodation instead of staying in 5 star hotels which can cost them a fortune. The good news is, more and more real estate developers are gradually realize about this and a few have already started to build less expensive hotels, and attempting to acquire a good stand in this fast growing area.
Reasons Why Needs More Three and Four Star Hotels in Dubai
There are many supporting points on why we are now seeing an abrupt construction of three and four star hotels in Dubai. To start with, tourism has been diversified and most traveling agents are now looking for getting the favor from lower-end holidaymakers from other countries to have their vacation in Dubai. Secondly, most airlines are providing low priced flight tickets in order to remain in the business that are intensely competitive. Thirdly, a lot of tour agents are promoting last minute holidays plus low price hotel rooms to grab more tourists. All of these add up causing the demand for three and four star hotels in Dubai is receiving ever increase demand but the supply are highly insufficient.
Since travel and lesiure industry is quickly gaining a world wide and cut-throat perspective, so the hotel operators in Dubai tend not to overlooked these rising trends. There are some other main cities in the Middle East that can provide Dubai the fund for it to build more three and four star hotels. Dubai seems to have hardly any other option but to start focus on the market that been long neglected. So, it is just the time to cater the increasing demand for lower price three and four star hotels in Dubai now.
Insufficient Three and Four Star Hotels in Dubai
At the moment, there are about 90 three and four star hotels in Dubai which been fully book for most of the time. It is extremely inadequate to accommodate for a growing demand for less expensive accommodation. The trend could change very fast though, as now there are an increasing number of United Arab Emirates based real estate developers had been proposing low cost hotel projects. One of the investment firms in Dubai, Istithmar, is planning to joint venture with London based Easy Group and construct 50 more low cost hotels soon. These types of three and four star hotels in Dubai will be introduced and advertised with the brand name of Istithmar Hotels. Besides, Golden Tulip Hospitalilty and Dutch hotel chain are also intending to setup joint venture and build 10 budget hotels in the near future. The Dutch hotel chain is currently coping with 12 hotels throughout the region and 6 more are planned to be in operation by the end of 2009.
Dubai hotels have usually cited high rate of occupancy, chiefly during the peak summer seasons. Nevertheless, the new emerging wave would be a heightened number of tourists from the inside of the Gulf area. Right up until lately, The tourists from the Gulf make up about 25% of the customers for hotels in Dubai, most of them are visiting because they are having their annual summer breaks. But, recently the rates has further increase to 50%. Most hotels in Dubai are reporting of occupancies which can easily over 80% to 90%. Many may think that it is rather hard from them to get a hotel room if they are traveling to Dubai during the peak summer seasons, and they all would more than welcome for more developers to dabble in the real estate industry by buidlign more three and four star hotels in Dubai to alleviate the rate of occupancies.
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