Retail therapy pushes hotel ADR up 25%
UAE leads the region in retail tourism…
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