Deyaar will open hotels in the UAE that would add around a thousand new rooms even as hotels feel the pressure of high-room inventory, especially in Dubai.
Dubai-based Millennium and Copthorne Hotels would operate the Sharia-compliant hotels that are expected to come on stream by 2020.
“Deyaar has allocated up to one million square feet of land for hospitality projects as part of our growth strategy,” said Saeed Al Qatami, the chief executive of Deyaar, in a statement.
Dubai-listed Deyaar reported an operating profit of Dh70.9 million at the end of the first half, down from Dh119.8m during the same period last year.
Last year Deyaar launched a four-star hotel apartment tower and a 30-storey residential tower called The Atria in Business Bay that is expected to open in 2017. The company is also developing a serviced apartment tower along with two residential towers called Montrose in DuBiotech expected to be complete next year, besides another project in Al Barsha.
More hotel rooms are being added in Dubai than the demand so far this year, according to the research company STR Global. The average room rate in the emirate in July fell 2.2 per cent year on year to below Dh600.
Millennium and Copthorne Hotels is expected to open three hotels in Abu Dhabi over the next three years. bringing 1,300 rooms as part of the 677-room Bab Al Qasr near Emirates Palace, a 280-room Biltmore Hotel, and 300 serviced apartments on Reem Island.
“We have aggressive growth plans for the Middle East and Africa region, with an aim to open 100 hotels by 2020,” said Ali Hamad Lakhraim Alzaabi, the president and chief executive of Millennium and Copthorne Hotels for Middle East and Africa, in a statement.
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