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Damac Hotels and Resorts, the hospitality arm of UAE-based Damac Properties, is set to deliver an additional 1,762 hotel residence units this year, said a top official at the Arabian Travel Market 2019, the region’s premier travel and tourism event, in Dubai.
“Rental pool programmes, embraced in major global business hubs due to their efficient use of hospitality spaces, are a notable trend in the GCC,” remarked Jean Faivre, the senior VP for Hospitality at Damac.
Of the over 1,700 hotel residence units, 827 will be delivered at Paramount Hotels and Resorts in Dubai, 481 at Radisson Dubai Damac Hills, and 454 at Damac Exclusiva in Riyadh.
These new units will bring the total number of serviced units under Damac Hotels & Resorts to 4,424, stated the top official.
During ATM 2019, Damac Hotels and Resorts showcased their existing portfolio of five properties that include the Distinction Hotel Apartments, Damac Towers by Damac Royale, Damac Maison Mall Street, Damac Maison Cour Jardin, and Damac Maison Canal Views.
Faivre revealed the growing popularity of its hotel residences with rental pool offerings, citing attractive returns and hassle-free ownership.
“Backed by a mature tourism industry, a well-structured rental pool leverages the economy of scale and taps into the expertise of different people and sectors, including investors, hoteliers and us, the developer. While the concept has been around for a while, for novice investors, the complexity of the rental pool structure can be confusing. That is why we are here at this year’s event; to discuss how our properties offer improved yields and a steady income compared with other asset classes while mitigating seasonal risks,” he stated.
During the event, Faivre emphasised the traveller trends that are behind the rise in demand for serviced residences.
He also discussed investor benefits, including higher returns on the back of lower operating costs and longer average length of stay.
During this year’s expo, Damac Hotels and Resorts signed a partnership agreement with Rotana Hotel Management Corporation, which saw the first of several Damac developments coming under the Arjaan Hotel Apartments by Rotana brand, beginning with Damac Towers, Riyadh.
The architectural icon in the heart of Riyadh, set to welcome guests as Damac Towers Arjaan by Rotana, will offer the same personalised service that has made Rotana a household brand for regional travellers.
“Rotana understand our guests’ needs, and that is imperative to us. Multigenerational travellers, an important and rapidly growing segment in the tourism industry, require serviced apartments that offer homely experiences accentuated by world-class service,” remarked Faivre.
“This is a trend that investors looking for a lucrative turnkey opportunity need to consider, and we are happy to show them how our properties meet guest needs and secure above average occupancy rates,” he added.
All of Damac’s hotel residence properties offer 24/7 check-in service, complemented by world-class guest facilities such as state-of-the-art fitness centres and kids’ play centres, said the Dubai developer.
Source: Trade Arabia
