DIP to host Dh3.2b hospitality development

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DIP to host Dh3.2b hospitality development
Noorul Asif, chief operating officer of Schon Properties

Dubai - The iSuites will be well connected to new Dubai Metro line that links Al Maktoum International to the rest of the emirates.

By Muzaffar Rizvi

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Published: Tue 29 Nov 2016, 12:29 PM

Last updated: Tue 29 Nov 2016, 2:32 PM

Schon Properties is the latest developer to join the hospitality bandwagon by launching the Mena's largest single-site hotel apartment project in Dubai Investment Park - close to the World Expo 2020 site.
The iSuites, a Dh3.2 billion development near Dubai South - home to the 140-square kilometre future city that hosts Al Maktoum International Airport and Expo 2020 site, will be comprising of 2,550 luxurious hotel apartments in 21 mid-rise buildings and first handing over of unit is expected by second quarter of 2019.
"The construction on mega development has already been initiated as shoring, excavation and piling works are done and five per cent completion percentage has been achieved. The main construction work is expected to start by January 2017," Noorul Asif, chief operating officer of Schon Properties, told Khaleej Times on Tuesday.  
iSuites envisages smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are targeting millennials interested in urban lifestyle hotel stays, small families coming to Dubai on a short- term corporate assignment or a pure family vacation.
The iSuites will be well connected to new Dubai Metro line that links Al Maktoum International to the rest of the emirates. The branded hotel apartments will be managed by international hotel operators to be announced later.
"We are launching iSuites - a home-grown urban hospitality concept from the UAE targeting millennials - on the eve of the UAE national day, as the country moves forward to realise the government's Vision 2020," Asif said.
"The project is slated for completion in the second quarter of 2020 - well ahead of Dubai Expo 2020 in October. We expect all the 2,550 units will be delivered by June 2020," he added.
The iSuites features over 52 restaurants and cafes boasting outdoor areas overlooking the Crystal Lagoon as part of a master-planned development. It includes a 125,000 square feet retail promenade called the Laguna Centrale Mall featuring urban themed cafes dedicated for entrepreneurs, kids play area's and nanny services available for all guests. Banks, retail, spa's, supermarkets, pharmacies, healthcare facilities, and shopping will also be part of the mall.
"iSuites is the commencement of Schon's restructuring plan and change of development direction, fully focusing on hospitality ventures going forward," Asif said.

Hospitality holds the key

Asif said the future of Dubai is hospitality, and with vision of His Highness Shaikh Mohammed bin Rashid, Vice-President and Prime Minister of the UAE and Ruler of Dubai, for 20 million tourists, the city has a bright future with unparalleled infrastructure and the best tourist attractions in the world.
"We offer everything form ski slopes, to the dessert, to culture, to arts, to beaches, to year round sunshine, all with 100 per cent security, hence, we believe tourism is the best investment in Dubai," Asif said.
He said hospitality has been identified by the group as a major growth area as Dubai continues to attract tourists.
"Tourism, trade and retail are the three pillars of Dubai's economy. As we move forward, tourism will play a dominant role in the economy. As it is, tourism and aviation contribute about 40 per cent to Dubai's economy.
"While we remain focused on our core business as developer, hospitality allows us great flexibility and helps us to play a bigger role in the economy of Dubai, which needs 40,000 new hotel rooms capacity in four years. We are also helping realise the government's vision," Asif said.
Emaar, Damac and Nakheel are among leading property developers based in Dubai who have already forayed into hospitality segment and announced several developments in the sector to capitalise on growth potential of the industry.

Hospitality investment

The Department of Tourism and Commerce Marketing (DTCM), the emirate's tourism industry regulator, said, investment in Dubai's hotel industry is expected to pick up in the next four years as 40,000 serviced hotel rooms and hotel apartments will come online and join existing inventory of 100,000 to serve the anticipated 20 million hotel annual guests by 2020 in addition to the 25 million visiting the World Expo 2020.
"Investors and developers will have to build 10,000 hotel rooms per year to reach the target of 140,000 hotel rooms and serviced apartments to accommodate the visitor traffic. Developers are trying to catch up to meet the numbers. We are contributing with 2,700 rooms," Asif said.
Latest DTCM data indicates that Dubai added 4,337 hotel rooms in first 10 months of the year to reach 100,012 in October 2016, up from 95,675 hotel rooms in 2015. The DTCM expects occupied room nights in hotels and hotel apartments to reach 35.9 million, representing a 10.8 per cent compound annual growth rate from the end of 2015 to the end of 2018. As such, the overall room supply is expected to reflect similar growth, reaching 134,000 rooms by the end of 2018, the DTCM projects.
"Look at the emerging landscape of the new developments surrounding Dubai South that will host the world's largest greenfield airport - Al Maktoum International Airport - and serve 160 million passengers per year, 13.33 million per month, or 438,357 people per day - many of whom would need a hotel room to stay, you know that you can't go wrong in developing assets in that area.
"Jumeirah Village, Business Bay, and Dubai Marina and other master communities are not niche hot spots as they are far from the main attractions. Dubai Investment Park, being located directly next to Expo 2020 is a major niche tourism hot spot and will give high returns to investors," Asis concluded.
- muzaffarrizvi@khaleejtimes.com


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