Investing in Hotels in Dubai

Should you consider investing in hotels? Many people have been asking themselves this question, especially as the returns available from investing in Dubai’s hotels have often outperformed more traditional property investment options. So – why is it so popular, and what are the figures behind the success of Dubai’s tourism and hospitality industry?

Booming tourism and hotel industries

Dubai has been a very popular travel destination for quite a while now, however its popularity has grown even more so in recent times. Dubai has so much to offer to the visitor that it is easy to understand why tourist arrivals are growing each and every year. Dubai is a buzzing, cosmopolitan city that always seems to have something new to offer. World class shopping and entertaining options meet with bustling markets, beaches and clear blue waters, with a skyline that provides a quite stunning backdrop. Those looking for luxury are also sure to find it in Dubai, with the city offering up delightful hotels that possess every imaginable facility.

So, what are the raw statistics behind Dubai’s tourism success story? A look at the numbers tells you exactly why investing in hotels is such an attractive proposition…

A record breaking 5.8 million tourists arrived into Dubai in 2014, according to statistics provided by the Department of Tourism and Commerce Marketing. Arrivals have been increasing steadily over the last few years, with more than 11 million guests checking into Dubai’s hotels in 2013, which was a 10.6 per cent increase on the previous year.

The increasing numbers of visitors arriving into Dubai has brought great results for hotels. Hotels generated first half-year revenues of Dhs12.74 billion in 2014, which is a huge rise of almost 11 per cent year-on-year. One of the factors behind this is the increasing average length of stay, which now stands at around 3.4 days and nearly 6 days for hotel apartments.

Bright future

Despite this success, Dubai certainly isn’t happy to stand still. The emirate is targeting 20 million visitors a year by 2020 and is building many new hotels to cope with the expected growth in demand. The DTCM has said that 7,000 new hotel rooms have been added in the last 12 months alone, with the total number having reached 88,680 rooms.

“Dubai’s hotel offering is continuing to grow and diversify allowing us to both meet the demand from travellers as well as broaden the market we promote Dubai to” said Helal Saeed Almarri of the DTCM.

Interested in cashing on this success?

With the potential for great returns many people have decided that investing in hotels is for them. The First Group is one of the most prominent companies in the field, and it offers many different hotel investment opportunities that provide the potential for extremely attractive returns. Investing in hotels also means a relatively hands-off investment since your hotel unit will be fully furnished, managed and serviced. As well as on-going returns, investing in hotels also offers you the chance to sell-on your hotel unit in the future for potential gains.

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