June 30 (Bloomberg) -- Emaar Properties PJSC, owner of The Address five-star hotel brand, and Meraas Holding plan to start an “affordable” hotel chain to cater to the growing demand in Dubai for thriftier lodgings.
The chain, to be called “Dubai Inn,” will serve a market driven partly by the growth of low-cost airlines and planned theme parks in the United Arab Emirates’ second-biggest sheikhdom, the companies said in a joint statement yesterday.
Dubai needs to augment supply of affordable rooms as the local market is dominated by five-star hotels, which account for nearly 62 percent of branded inventory in the city, the companies said. Almost half of the 42,000 rooms under construction are also in the luxury segment, according to the statement. Dubai is bidding to host the World EXPO in 2020.
“The new generation of travelers is more discerning and value-conscious, and it is important that our hospitality sector reflect their needs,” Emaar’s chairman Mohamed Alabbar said in the statement. “By creating a robust pipeline of affordable hotels under the Dubai Inn brand, we plan to attract more visitors to our city from the fast-growing markets in the Asia-Pacific, Africa, Europe and the wider Middle East.”
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