Re­tail ther­apy pushes ho­tel ADR up 25%

UAE leads the re­gion in re­tail tourism…

Travel Daily ME - - News -

Ho­tels de­vel­oped in and around the re­gion’s shop­ping malls can ex­pect to post an Av­er­age Daily Rate (ADR) that is 25% higher than ho­tels that are not co-lo­cated with a ma­jor re­tail devel­op­ment.

The find­ings are pub­lished in a report by Col­liers In­ter­na­tional, re­leased ahead of Ara­bian Travel Mar­ket 2017, which takes place 24 – 27 April at Dubai World Trade Cen­tre.

As part of its ex­pe­ri­en­tial travel se­ries, Col­liers con­cluded that ho­tels such as those clus­tered around Dubai’s Mall of The Emi­rates and The Dubai Mall, en­joy stronger busi­ness per­for­mance over­all – not only beat­ing sea­sonal fluc­tu­a­tions in tourist ar­rivals, but con­tribut­ing in the drive to at­tract more tourists over the tra­di­tion­ally quiet sum­mer sea­son. Si­mon Press, Se­nior Ex­hi­bi­tion Di­rec­tor, Ara­bian Travel Mar­ket, said: “In the UAE, the idea of a com­bined re­tail, leisure and entertainment des­ti­na­tion has re­ally taken off. We have ho­tels at­tached to malls and, as such, these are much sought af­ter prop­er­ties. There is mas­sive de­mand for ur­ban tourism from In­dian, Arab and Chi­nese vis­i­tors. “Since the open­ing of Mall of the Emi­rates in 2006, the num­ber of ho­tels and ser­viced apart­ments in the area has risen from four to 58 in 2017, to­talling 8,654 keys. While only two of these ho­tels are phys­i­cally part of the mall building, the re­main­ing 56 have also demon­strated strength across all per­for­mance met­rics.”

An in­creas­ing num­ber of shop­ping malls/entertainment cen­tres now ex­hibit at ATM. This year there are 401, in­clud­ing: Al Shaab Vil­lage, Sharjah; Chic Out­let Shop­ping; Fash­ion Arena Prague Out­let; Freeport Lis­boa Fash­ion Out­let; Istanbul Shop­ping Fest; La Roca Vil­lage in Barcelona and Las Rozas Vil­lage in Madrid; and West­field Europe Ltd.

Kempin­ski Mall of the Emi­rates

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