Burjside Boulevard, a 50-storey luxury tower in the Burj Area of Dubai, will begin handover to owners during mid-2013 providing the first taste to investors of the high-end managed services that the company will offer investors and tenants.
The landmark development offers three, two and one bedroom, fully furnished and serviced hotel apartments.
“Our serviced hotel apartments will offer the most luxurious services in the hotel apartments sector and provides an attractive rental pool programme to allow our clients to enter the booming Dubai hotel sector,” said Niall McLoughlin, Senior Vice President, Damac Properties. “The 4,000 units under development will make Damac one of the largest serviced hotel apartment companies in the region,” he added.
“Dubai currently has less than 200 serviced apartment buildings in the market according to the Dubai Department of Tourism, but the product is hugely popular with international tourists, especially from the Kingdom of Saudi Arabia. We see this sector as an important driver in our business in the coming years,” concluded McLoughlin.
A recent report by Ernst and Young showed average room rates of Dubai hotels had grown by more than eight% during the first half of 2012 to Dhs922 ($251) with occupancy at a very healthy 84% compared to the same period last year. A Dubai Tourism and Commerce Marketing ‘DTCM’ report also says that in Q2 2012 hotel and apartment bookings in Dubai jumped to 170,452, from 154,180 for the same period in 2011, a 10% increase.
As Dubai’s hotel industry continues to go from strength to strength, serviced apartments are becoming an increasingly attractive investment proposition creating a link between private ownership of luxury living and the service offered by the best hotels in the world.
“Many of our clients visit Dubai for just two or three months a year. A Damac Properties serviced hotel apartment provides clients the opportunity to rent their luxury home while they are away, earning revenue and without the stress and complication of finding a tenant,” added McLoughlin.
The company offers bespoke services to owners and tenants including making restaurant reservations, arranging to charter yachts and planes and booking a limousine, in addition to all standard security and housekeeping services. The management can also arrange for a professional baby-sitter, a five star chef to cook in your apartment or a relaxing spa treatment in your room.
“Our clients make a lifestyle choice when investing in a Damac serviced hotel apartment and we will deliver that upscale, refined luxury service which they are used to when staying in hotels,” said McLoughlin.
Dubai tourism continues to grow at a strong pace, with Dubai International airport one of the busiest hubs in the world welcoming nearly 28 million passengers in the first six months of 2012 according to the Dubai Statistics Centre. It also reported nearly four million guests in Dubai hotels in the same six months.
Wouter Molman, Cityscape Global Exhibition Director, said, “Damac Properties has been a loyal supporter of Cityscape events for many years, not only during times of fast market growth but also in the more challenging recent years. As the Dubai real estate market is regaining positive momentum and many Dubai developers are strengthening their participation in the upcoming Cityscape Global exhibition, which is set to grow by more than 40% on last year’s event.”
Damac Properties is participating at Cityscape on stand C10, Hall 8, where potential clients will be able to meet with senior management and learn more about Damac Suites and Spa.