Emaar Hospitality set for Mena expansion as post-Covid tourism recovery gains pace
▶ The group will open properties in Bahrain, Egypt and Saudi Arabia within months amid improved occupancy
Emaar Hospitality is planning to open new properties in the UAE and the Middle East and North Africa region this year and the next as part of a continued recovery in international tourism from the Covid-19 pandemic.
The hospitality arm of UAE’s biggest developer Emaar Properties is seeking expansion with a new hotel in Bahrain this year, followed by openings in Egypt and Saudi Arabia next year, Mark Kirby, head of Emaar Hospitality, said on Monday.
In the UAE, it will expand with new properties in Downtown Dubai, Dubai Marina, Dubai Creek Harbour and Fujairah.
Emaar Hospitality recorded occupancy levels of more than 75 per cent in the first quarter of this year and expects an “upward trend” for the rest of the year, Mr Kirby said.
Expo 2020 Dubai, the return of business conferences and exhibitions, the continued popularity of staycations, seasonal boosts from Easter holidays and the UAE remaining open as a tourism destination were the key drivers of growth, he said at the Arabian Travel Market exhibition in Dubai.
“Into May, we’re seeing very strong pace and pickup in all of our hotels,” Mr Kirby said. “It’s really just making sure we now
get through the summer and then I think we would have a very solid quarter.”
UAE hotels recorded a 24 per cent increase in occupancy rates in the first quarter this year, compared with the same period last year. This is largely due to the winter holidays and last three months of Expo 2020, a Mena hotels report by
Colliers released on Monday found. Hotel occupancy in Dubai and Sharjah grew 33 per cent and 30 per cent, respectively, compared with the same period last year.
The luxury hospitality market in the UAE reached 116,330 keys by the end of the first quarter, compared with 106,890 in the same period in 2021, with
Dubai being the largest contributor to the new supply, the report said. About 2,054 luxury hotel rooms and suites opened in Dubai during the first three months of the year.
Emaar Hospitality said it would open Palace Fujairah in the coming months as a luxury resort in the emirate. It also has five new openings in Dubai, with Vida Dubai Marina scheduled for the end of the year and Vida Dubai Mall set to open next year. The Address Grand Creek Harbour is scheduled to open at the end of this year, followed by the openings of Palace Dubai Creek Harbour and Vida Creek Beach next year.
As part of its international expansion, Emaar Hospitality will open the Address Beach Resort Bahrain, adding to its currently operating Vida Marassi al Bahrain.
In Egypt, Address Marassi Marina and Vida Marassi Marina will open next year.
“With these projects, the group will significantly add to the success of the masterplanned lifestyle and tourist potential of Egypt,” Emaar Hospitality said.
Egypt’s easing of travel restrictions led to “significant inbound leisure demand” in the first quarter of this year, positively affecting demand for hospitality products in the country, the Colliers report said. The strengthening of political ties between Egypt and some of its vital source markets such as Europe and the Middle East further boosted the recovery, it said.
Overall supply in the Egyptian market is expected to increase at a compounded annual rate of 1 per cent between this year and 2024, with 4,210 keys anticipated to enter the market, Colliers said.
In Saudi Arabia, Emaar’s Address Jabal Omar Makkah near the Grand Mosque is scheduled to open next year and will offer 1,484 rooms. An Address hotel in Diriyah Gate is planned for 2025, Mr Kirby said.
The Fifa World Cup in Qatar this year is also expected to boost international tourism, Mr Kirby said.
Asked about the effects of the Ukraine war on visitors from Russia, who make up about 3 per cent of the group’s total guests and 10 per cent of those hiring its beachfront properties, Mr Kirby said the number of Russian visitors remained stable compared with 2019 but with longer holiday stays.