Emaar Properties PJSC, the United Arab Emirates’ biggest publicly traded developer, plans to build a hotel in Dubai near Burj Khalifa, the world’s tallest tower, to capitalize on the city’s hospitality boom.
The hotel, which will be managed by Emaar’s Address chain, will include 200 rooms and 542 serviced apartments, Arif Amiri the company’s retail chief executive officer, told a press conference today.
“Our hotel occupancy in the area is around 90 percent all year long, which shows the strong demand for hospitality in Dubai,” Amiri said. “There is strong interest from investors in the Gulf, Russia, China and the Middle East.”
Hotels and malls are becoming the main source of earnings for Emaar as tourist arrivals to Dubai rose 10 percent to 9.3 million in 2011, according to tourism department data. The company derived 41 percent of its revenue from hotels and malls this year, compared with 24 percent in 2011. As Dubai’s airport passenger traffic rises, the company’s hotels and malls are benefiting from increased demand.
Initial financing for the project, which will be mainly raised by sales of serviced apartments before construction starts, has been “secured,” Amiri said. He declined to comment on the value of the project or the sale prices of the apartments. The sale of the project will start on Sept. 22.
The five-star hotel is Emaar’s sixth Address property in Dubai and will have 63-storys, with studios to three-bedroom apartments. Construction is expected to start soon and completion is set for early-to-mid 2015, he said. A contractor is yet to be appointed.
Dubai’s airport traffic rose 14 percent to a record 27.9 million in the first six months of 2012, the operator said in July. Economic growth, which relies on hospitality and trade for more than 33 percent of gross domestic product, is forecast to expand as much as 5 percent this year, according to the government.