DUBAI HOTEL INVESTMENT REPORT PUBLISHED BY THE FIRST GROUP www.thefirstgroup.com
WHY DUBAI? Dubai population 2015: 2.2 million 2020: 3.4 million (predicted) Source: Dubai Municipality AIRPORT CAPACITY Dubai International (): 70million Forecast Al Maktoum International: 220million Source: Airports Council International Burj Khalifa Height: 828m A sleepy fishing village just 50 years ago, Dubai now ranks among the world s top five fastest growing cities, a desert oasis home to 2.2 million residents, with this figure rising at an average rate of 5% per annum (p.a). Dubai is home to the world s busiest international airport, the Middle East s biggest cargo port, the world s tallest building, and the region s main financial hub. It is also rapidly gaining a reputation as one of the world s most popular tourist destinations. 2
DUBAI: A GLOBAL TRADE HUB Dubai has earned a formidable reputation as the top regional hub for many of the world s biggest companies. The emirate s proliferation of free trade zones has made it a magnet for organisations looking to gain a commercial foothold in the UAE, Gulf and across the Middle East. Dubai has long served as a trading gateway to the Middle East and Africa. Up to 60 percent of all imports to the Gulf and the Middle East are routed through Jebel Ali Port, one of the world s biggest manmade deep-water docks. Dubai Trade by Region () (Value in AED million) Asia AED632bn Australia 11bn Europe 288bn South America 23bn Source: Dubai Chamber of Commerce GCC 114bn North America 95bn Non-GCC Arab Countries 93bn Africa 73bn These free trade zones offer a vast range of benefits, including 100% company ownership, locally tax-free income, a liberalised trading environment, no restrictions on repatriation of profits, and most importantly, a safe and stable location for accessing local and regional markets.
WHY DUBAI? Dubai ranks as the Middle East s best-performing metropolitan economy and fifth-best worldwide TOP 5 LARGEST METROPOLITAN ECONOMIES WORLDWIDE 14 RANK ECONOMIC PERFORMANCE -14 METRO COUNTRY DEVELOPMENT STATUS EMPLOYMENT CHANGE -14 RANK ECONOMIC PERFORMANCE 2009-14 1 2 3 4 5 MACAU IZMIR ISTANBUL BURSA DUBAI MACAU TURKEY TURKEY TURKEY UAE DEVELOPED DEVELOPING DEVELOPING DEVELOPING DEVELOPED 8 % 2 % 2 % 1 % 4 % 10 8 17 20 172 TOP 5 MIDDLE EAST METROPOLITAN ECONOMIES - RANKING METRO COUNTRY DEVELOPMENT STATUS GDP PER CAPITAL CHANGE -14 EMPLOYMENT CHANGE -14 RANK ECONOMIC PERFORMANCE 2009-14 1 2 3 4 5 DUBAI RIYADH JEDDAH-MECCA ALEXANDRIA CAIRO UAE KSA KSA EGYPT EGYPT DEVELOPED DEVELOPED DEVELOPED DEVELOPING DEVELOPING 4.5 % 1.9 % 2.4 % 0.9 % 0.7 % 4.7 % 3.9 % 3.4 % 3.0 % 3.0 % 172 79 153 170 41 0% Tax-free environment: Zero local corporate and personal tax Strongest real estate regulatory regime in the Middle East
DUBAI: THE GLOBAL TOURISM DESTINATION Travel and tourism rank as cornerstones of Dubai s economic diversification strategy DUBAI TOURISM ARRIVALS : 13.2 million UAE INVESTMENT IN TRAVEL AND TOURISM INFRASTUCTURE 2020: 20 million UAE TOURISM ARRIVALS 2007: 6 million 2024:$10.29bn : $5.71bn TRAVEL & TOURISM 268% 2024: 38 million GDP CONTRIBUTION EXPANSION (1990-) Source: World Travel & Tourism Council s (WTTC) UAE Travel & Tourism Benchmarking report.
RISING DEMAND FOR NEW HOTEL ACCOMMODATION Dubai welcomed 13.2m hotel guests in - an 8.2% rise on, according to Dubai s Department of Tourism and Commerce Marketing (DTCM) Hotel Establishment Guests : 11,012,489 guests GUEST NIGHTS 44,663,362 nights 7.4% Percentage increase : 5.6% Percentage increase +617k The increase in number of guests between and 11,629,587 guests 3.78days Length of stay 41,578,768 nights 3.84 days Source: DTCM
HOTEL PROFITS ON THE RISE REVENUE Room revenue Total hotel revenues reached $6.5bn in, representing a 9.8% increase year-on-year Other revenue AED13.6bn AED15.3bn AED8.2bn AED8.7bn TOTAl REVENUE AED21.84bn : : AED23.98bn Source: DTCM
DUBAI S TOP SOURCE MARKET FOR HOTEL GUEST COUNTRIES () The world s fastest growing economies are also Dubai s fastest growing source markets North America Canada and Mexico 624,148 610,200 2.3% GROWTH Europe 2,953,282 2,873,709 2.8% GROWTH South Asia 1,803,511 1,576,439 14.4% GROWTH South America 116,021 113,694 2.0% GROWTH Far East Asia 824,326 729,886 12.9% GROWTH Africa 685,940 618,871 10.8% GROWTH 8 Arab Countries 4,306,072 4,172,916 3.2% GROWTH Australasia 316,278 316,278 0.2% DECREASE All values as number of guests, Source: DTCM
HOTEL INVESTOR SENTIMENT Dubai is one of the world s best mid-term hotel investment prospects Jones Lang LaSalle Hotel Investor Sentiment Survey. International investor sentiment towards Dubai s hotel market is 16.7% higher than the EMEA average and more than 25% higher than the global average. Positive international perceptions of Dubai s investment potential: 86.7% 9 EMEA average: Global average: 70% 61.1%
THE EXPO 2020 EFFECT Dubai s successful bid to host Expo 2020 is set to radically transform the emirate s economy, and consolidate its position as a global hub for tourism, commerce and trade. TRADE EXPANSION : 2020: $380bn $1.09trillion Source: Dubai Trade HEADLINE NUMBERS 81,000 new hotel rooms 25million Expo visitors $7bn worth of new infrastucture 277,000 New jobs created $7.2bn invested in new hotel capacity Sources: Dubai government, Expo 2020 Dubai, Brand Finance, Al-Ramz Securities, EFG Hermes, MEED)
THE FIRST GROUP S UPCOMING DEVELOPMENTS THE ONE DUBAI MARINA Introducing The One Dubai Marina, an exclusive development to be operated by Wyndham Hotel Group. The One Dubai Marina is situated in a prime location, opposite the Dubai Marina Yacht Club and a short stroll from the Dubai Marina Mall. DUBAI MARINA Hotel operated to international 4-star standards Restaurants & cafe Business Centre Smart Card access system 24-hour reception, room service and concierge services Valet parking Swimming pool, gymnasium, steam rooms and sun deck Wi-Fi and broadband internet access throughout WYNDHAM DUBAI MARINA Boasting a premier location in the heart of one of Dubai s most popular precincts, Wyndham Dubai Marina is ideally positioned to generate the strongest possible returns for investors. The property is managed by Wyndham Hotel Group, the world s largest and most diverse hotel company, with 7,650 hotel properties in 70 countries. Hotel operated to international 4-star standards Restaurants & bars Business Centre Smart Card access system 24-hour reception, room service and In addition, the price of property is concierge services more Valet affordable parking than cities such as Hong Swimming Kong and pool, Singapore, gymnasium, which steam have rooms traditionally and sun deck attracted overseas investors Wi-Fi and anxious broadband to minimise internet access the impact throughout of taxation on their assets. 11
THE FIRST GROUP S UPCOMING DEVELOPMENTS JVC THE ONE AT JUMEIRAH VILLAGE CIRCLE The One at JVC benefits from being just minutes away from the World Expo 2020 site and the UAE s newest and largest airport, Al Maktoum International. Add to this the backing of the highly renowned Ramada name and its Plaza brand of hotels, and The One at JVC is destined to bring its owners excellent returns. Hotel operated to international 4-star standards Restaurants & bars Business Centre Smart Card access system 24-hour reception, room service and concierge services Valet parking Swimming pool, gymnasium, steam rooms and sun deck Wi-Fi and broadband internet access throughout TECOM SKY CENTRAL HOTEL TO BE OPERATED AS TRYP BY WYNDHAM Sky Central Hotel is an iconic hotel development located in the heart of TECOM. It ranks as The First Group s largest and most ambitious hotel investment project to date. Managed by Wyndham Hotels Group, the world s largest and most diverse hotel operator, the property features 672 luxurious hotel suites. Hotel operated to international 4-star standards Restaurants & bars Business Centre Smart Card access system 24-hour reception, room service and concierge services Valet parking Swimming pool, gymnasium, steam rooms and sun deck Wi-Fi and broadband internet access throughout
THE FIRST GROUP S ESTABLISHED PROPERTY PORTFOLIO TECOM METRO CENTRAL HOTEL APARTMENTS OCCUPANCY RATE : 89% 2015 PROJECTION: 90% FIRST CENTRAL HOTEL APARTMENTS OCCUPANCY RATE : 83% 2015 PROJECTION: 85% 18-storeys, 210 premium, managed hotel apartments Rooftop swimming pool and health club High-end rental opportunities for short-to mid-term business lets Easy walking distance to Dubai Metro s Internet City station Iconic 29-storey tower featuring 524 premium hotel apartments Ideal for short- to mid-term business or leisure rentals Easy walking distance to Dubai Metro s Internet City station GRAND CENTRAL HOTEL APARTMENTS LEASED FOR FIXED RATE TO AN OPERATOR 13 Unique 18-storey tower with a choice of 72 onebedroom Suites and 112 Executive Suites Retail, food and beverage outlets Laundry and dry cleaning services Ground-floor luxury swimming pool, sun deck, and gymnasium Valet parking, 24-hour reception, concierge, room service, and security Wi-Fi and broadband internet access
THE FIRST GROUP S ESTABLISHED PROPERTY PORTFOLIO SPORTS CITY THE MATRIX OCCUPANCY RATE NOVEMBER PRESENT: 98% Award-winning, iconic 34-storey twin tower development Sweeping views of The Els Golf Club Golf Course and adjacent attractions Turnkey studios, one- and twobedroom open-plan apartments Concierge services Rooftop swimming pool, health club and gymnasium High-tech smart card access DSC s first Carrefour supermarket THE DIAMOND OCCUPANCY RATE H2, : 96% 2015 PROJECTION: 96% 128 turnkey units ranging from studio and duplex to one- and twobedroom apartments Sweeping views of The Els Golf Club Golf Course and adjacent attractions Luxury swimming pool, sun deck and state-of-the-art gymnasium Close proximity to Dubai s major road networks 24-hour reception and security, high-tech smart card access 14
THE FIRST GROUP S ESTABLISHED PROPERTY PORTFOLIO SPORTS CITY THE BRIDGE OCCUPANCY RATE : 95% 2015 PROJECTION: 96% Choice of residential apartments and award-winning penthouses 56 fully furnished offices High-end technology and state-of-the-art smart card access 24-hour concierge Close proximity to Dubai s major road networks THE SPIRIT OCCUPANCY RATE : 96% 2015 PROJECTION: 96% 19-story tower, award-winning design Rooftop jogging track, luxury swimming pool, sun deck and state-ofthe-art gymnasium 24-hour reception and security High-tech smart card access Close proximity to Dubai s major road networks 15