Dubai hotel apartment prices almost double ahead of Expo 2020 – news

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Dubai – Prices could climb to Dh16,000 per month or even more, an industry source said.



Posted: Tue, Aug 10, 2021, 5:40 PM

Hotel apartment rates in Dubai nearly doubled ahead of Expo 2020, due to the influx of foreign visitors as well as UAE residents and expats looking for a safer, regularly sanitized place to stay. live in the midst of the Covid-19 pandemic.

Industry executives and analysts say people with long stays of more than six months opt for hotel apartments. These apartments are also finding favor with residents looking for worry-free accommodation, compared to rental contracts that could lock them up for up to a year.

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Ayman Ashor, Managing Director of Al Bandar Rotana and Al Bandar Arjaan by Rotana, said the hotel apartments are an attractive proposition.

“Guests get fully furnished apartments with furniture, kitchen, washing machine, dishwasher, cleaning facilities and, most importantly, more space. The offer is attractive for those looking for a stay of six months or more. As a result, the occupancy rate of hotel apartments has seen a slight increase, despite the challenges of Covid-19, and sometimes reaches as high as 95%, ”said Ashor.

He said UAE and GCC nationals and expatriates of Arab descent make up a large portion of those customers who choose to stay in hotel apartments.

Ashor revealed that a fully equipped hotel apartment cost Dh5,500 at the start of the Covid-19 pandemic. This has since increased to around 12,000 Dh, as life is gradually returning to normal.

The demand for hotel rooms and apartments has grown exponentially ahead of Expo 2020, when millions of foreign visitors will flock to Dubai from October 1, 2021 to March 31, 2022.

“Wait until the Expo and the prices could go up to 16,000 Dh per month, if not more. Rates are rising as life returns to its normal course. Consumers also need to understand that hoteliers have to pay for utilities and other daily expenses, ”he said.

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James Wrenn, associate director of hotel advisory services at Colliers, Middle East and North Africa (Mena), noted that since the onset of Covid-19 and a drop in tourist arrivals, many serviced apartments in Dubai have been falling. are focused on averages (read: monthly) and long-term stays, which are typically over six months.

“The long-stay business competes with the private residential market. The upcoming Expo 2020 event is expected to increase demand for serviced apartments, especially in the short and medium-stay business segments. Both of these segments will appeal to a range of delegate types, from those visiting for a limited time to those traveling to work during the duration of the event, ”Wrenn said.

waheedabbas@khaleejtimes.com


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