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PUBLISHED BY THE FIRST GROUP
www.thefirstgroup.com
DUBAI HOTEL INVESTMENTREPORT
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.
WHY DUBAI?
2015: 2.2 million2020: 3.4 million (predicted)Source: Dubai Municipality
Bu
rj K
halif
a H
eig
ht:
828
m
Dubai population
aiRpoRt CapaCitY
70million
220millionSource: Airports Council International
Dubai International (2014):
Forecast Al Maktoum International:
2
DUBAI:A GLOBALTRADE 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 man-
made deep-water docks.
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.
Source: Dubai Chamber of Commerce
AsiaAED632bn
Europe288bn GCC
114bn
North America95bn
Non-GCC Arab Countries93bn
Africa73bn
SouthAmerica23bn
Australia11bn
Dubai Trade by Region (2013)
(Value in AED million)
Dubai ranks as the Middle East’s best-performing metropolitan economy and fifth-best worldwide
top 5 laRGESt METROPOLITAN ECONOMIES WORLDWIDE 2013—14
top 5 MiDDlE EaSt METROPOLITAN ECONOMIES 2013-2014
– 0% tax-free environment: Zero local corporate and personal tax
– Strongest real estate regulatory regime in the Middle East
WHY DUBAI?
MaCau
iZMiR
iStanbul
buRSa
Dubai
1
2
3
4
5
RANK E
CONOMIC
PERFORM
ANCE 2
013-14
METRO
COUNTRY
DEVELO
PMEN
T
STATU
S
EMPLO
YMEN
T
CHANGE 2
013-14
RANK E
CONO
MIC
PERFORM
ANCE
2009-1
4
MaCau
tuRKEY
tuRKEY
tuRKEY
uaE
8 %
2 %
2 %
1 %
4 %
DEVElopED
DEVElopinG
DEVElopinG
DEVElopinG
DEVElopED
10
8
17
20
172
Dubai
RiYaDH
JEDDaH-MECCa
alEXanDRia
CaiRo
RANKIN
G
METRO
COUNTRY
DEVELO
PMEN
T
STATU
S
GDP P
ER CAPIT
AL
CHANGE 2
013-14
EMPLO
YMEN
T
CHANGE 2
013-14
RANK E
CONO
MIC
PERFORM
ANCE 2
009-14
1
2
3
4
5
uaE
KSa
KSa
EGYpt
EGYpt
4.7 %
3.9 %
3.4 %
3.0 %
3.0 %
DEVElopED
DEVElopED
DEVElopED
DEVElopinG
DEVElopinG
172
79
153
170
41
4.5 %
1.9 %
2.4 %
0.9 %
0.7 %
DUBAI: THE GLOBAL TOURISM DESTINATION
268%
Dubai touRiSM aRRiValS
2013: $5.71bn
2007:
6million
uaE touRiSM aRRiValS
2020:
20million
2024:$10.29bn
2014:
13.2million
2024:
38million
uaE inVEStMEnt in tRaVEl anD touRiSM inFRaStuCtuRE
GDP CONTRIBUTION EXPANSION (1990-2013)
tRaVEl & touRiSM
Source: World Travel & Tourism Council’s (WTTC) UAE Travel & Tourism Benchmarking report.
Travel and tourism rank as cornerstones of Dubai’s economic diversification strategy
11,012,489 guests
41,578,768 nights
11,629,587 guests
3.84
2013:
2013
2014:
2013
2014
2014
2013
+617kThe increase in number
of guests between 2013 and 2014
Percentage increase
5.6%
RISING DEMAND FOR NEW HOTEL ACCOMMODATION
GuESt niGHtS
lEnGtH oF StaY
HotEl EStabliSHMEnt GuEStS
days
days
Source: DTCM
7.4%Percentageincrease
44,663,362nights
3.78
Dubai welcomed 13.2m hotel guests in 2014 - an 8.2% rise on 2013, according to Dubai’s Department of
Tourism and Commerce Marketing (DTCM)
HOTEL PROFITS ON THE RISE
REVEnuE
total REVEnuE
AED13.6bn AED8.2bnAED15.3bn
AED23.98bn
AED8.7bn
2013
2013
2014
2014
Room revenue Other revenue
AED21.84bn2013: 2014:Source: DTCM
Total hotel revenues reached $6.5bn in 2014, representing a 9.8% increase year-on-year
DUBAI’S TOPSouRCE MaRKEt FOR HOTEL GUESTCOUNTRIES(2014)
Australasia
316,2782014
316,2782013
0.2%DECREASE
Arab Countries
4,306,0722014
4,172,9162013
3.2%GROWTH
Africa 685,9402014
618,8712013
10.8%GROWTH
South America 116,0212014
113,6942013
2.0%GROWTH
Europe 2,953,2822014
2,873,7092013
2.8%GROWTH
South Asia 1,803,5112014
1,576,4392013
14.4%GROWTH
Far East Asia 824,3262014
729,8862013
12.9%GROWTH
North AmericaCanada andMexico 624,1482014
610,2002013
2.3%GROWTH
All values as number of guests, Source: DTCM
The world’s fastest growing economies are also Dubai’s fastest growing source markets
8
“Dubai iS onE oF tHE woRlD’S bESt MiD-tERM HotEl inVEStMEnt pRoSpECtS”– Jones lang laSalle Hotel investor Sentiment Survey 2014.
HOTEL INVESTOR SENTIMENT
86.7%
70%
61.1%
Positive international perceptions of Dubai’s investment potential:
EMEA average:
Global average:
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.
9
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.
THE EXPO 2020 EFFECT
Source: Dubai Trade
Sources: Dubai government, Expo 2020 Dubai, Brand Finance, Al-Ramz Securities, EFG Hermes, MEED)
$380bn $1.09trillion
2013:
tRaDE EXpanSion
2020:
$7bnworth of new infrastucture
$7.2bninvested in new hotel capacity
81,000new hotel rooms
25millionExpo visitors
277,000New jobs created
HEaDlinE nuMbERS
In addition, the price of property is more affordable than cities such as Hong Kong and Singapore, which have traditionally attracted overseas investors anxious to minimise the impact of taxation on their assets.
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.
— 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
THE FIRST GROUP’S upCoMinG DEVElopMEntS
Dubai MaRina
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
concierge services
— Valet parking
— Swimming pool, gymnasium, steam
rooms and sun deck
— Wi-Fi and broadband internet access
throughout
11
THE FIRST GROUP’S upCoMinG DEVElopMEntS
JVC
tECoM
THE ONE AT JUMEIRAH VILLAGE CIRCLEThe 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
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
METRO CENTRAL HOTEL APARTMENTS OCCUPANCY RATE
2014: 89%2015 PROJECTION: 90%
— 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
— Unique 18-storey tower with a choice of 72 one-bedroom 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
GRAND CENTRAL HOTEL APARTMENTS LEASED FOR FIXED RATE TO AN OPERATOR
THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio tECoM
FIRST CENTRAL HOTEL APARTMENTS OCCUPANCY RATE
2014: 83%2015 PROJECTION: 85%
13
THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio
SpoRtS CitY
— 128 turnkey units ranging from studio and duplex to one- and two-bedroom 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
THE DIAMOND OCCUPANCY RATE
H2, 2014: 96% 2015 PROJECTION: 96%
THE MATRIX OCCUPANCY RATE
NOVEMBER 2014 – 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 two-bedroom open-plan apartments
— Concierge services— Rooftop swimming pool, health
club and gymnasium— High-tech smart card access— DSC’s first Carrefour supermarket
14
— 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
— 19-story tower, award-winning design— Rooftop jogging track, luxury
swimming pool, sun deck and state-of-the-art gymnasium
— 24-hour reception and security— High-tech smart card access— Close proximity to Dubai’s major road
networks
THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio
SpoRtS CitY
THE BRIDGE OCCUPANCY RATE
2014: 95%2015 PROJECTION: 96%
THE SPIRIT OCCUPANCY RATE
2014: 96%2015 PROJECTION: 96%
15