Premier Inn to operate hotel in Dragon City

The 373-room property attached to Ibn Battuta mall is under construction and will be delivered by the end of 2016 or early 2017.

Nakheel has signed a management agreement with the UK hotel chain Premier Inn to operate a 250-room hotel in Dragon City. It is set to be delivered to the market in two to three years.
This is after the developer and hotel operator had joined hands in May 2014 to develop and operate a Premier Inn as part of the Ibn Battuta Mall expansion programme.
The 373-room property attached to Ibn Battuta mall is under construction and will be delivered by the end of 2016 or early 2017.
Nakheel is on a drive to expand its hospitality portfolio. It has also signed a deal with Accor Group's Ibis Styles to manage a hotel in Dragon City. The property will open either end of this year or early next year. The deals with Premier Inn and Ibis prove that Nakheel is targeting the budget end of the hospitality industry.
"Hospitality is very integral to Dubai's economy. Nakheel didn't have any major play in the hospitality sector five years ago. We spotted opportunities and scouted around for a few locations. We believe there is more to it in the budget sector," said Sanjay Manchanda, chef executive officer of Nakheel.
"The luxury and ultra luxury sectors are very competitive. We have one such project on the Palm Jumeirah. We need to be looking at locations, gaps in the market and economic returns. The budget hotel sector is very attractive," he added.
Dismissing speculations of oversupply, the Nakheel executive vouched for the long-term prospects of Dubai's hospitality industry.
"If you look at how the hospitality sector has panned out in the past three to five years, the stock has increased. Occupancies are still in the 80s and high 90s. Average daily rates (ADR) and RevPar [revenue per available room] have been increasing except in the last six months when it dipped. Demand is also growing. "Are more tourists not going to come? Will the population not grow? There will be enough room for this sector. We are optimistic about Dubai's future," Manchanda added.
Meanwhile, the Premier Inn has three trading properties in Dubai, one in Sharjah and two in Abu Dhabi, said Adam Nicholls, chief operating officer of Premier Inn. "We have three properties under construction - one in Ibn Battuta mall, Al Jadaf [to open end of next year] and in Dragon City," Nicholls said.
Nakheel had announced a 1.3 million square feet of new retail space in Dragon City. "The first expansion on Dragon Mart is fully booked. Dragon City is a work in progress. We will be announcing components in due course," informed Manchanda.
On the residential front, Dragon Towers is being developed to add to Nakheel's leasing portfolio. "We want to increase our revenue generating businesses," Manchanda said.
Over to the Palm Jumeirah. Nakheel is in discussions with a luxury hotel operator for 290 rooms at the mixed-use Palm Tower. It also includes 500-plus residences and a rooftop restaurant with a viewing deck.
- deepthi@khalejtimes.com

• Dubai