DUBAI: A resurgent Russian tourism source market lifted demand for Dubai hotels last month, industry monitor STR said in its preliminary report.
“High demand was enough to outpace somewhat slowing supply growth and push a positive occupancy comparison,” STR said, as the occupancy-driven performance resulted into a 5.5 percent annualized rise in demand for rooms compared with a slower 3.6 percent increase in the number of hotel keys, the lowest year-on-year pace for any month since November 2012.
As a result, Dubai saw its first January increase in revenue per available room (RevPAR) since 2014 to Dh703.89, while average daily rate was 0.6 percent lower to Dh814.51, and an occupancy rate of 86.5 percent.
RevPAR is an industry bellwether that is derived by a hotel’s average daily room rate by its occupancy rate.
“Demand was aided by a fast-rebounding Russia source market, especially in beachfront properties,” STR said.
The number of international tourists to Dubai reached 15.79 million in 2017, 6.2 percent higher over the previous year. The emirate is targeting to welcome 20 million visitors each year by start of the next decade.
India remained the top source market last year with 2.1 million visitors, becoming the first country to cross the 2 million mark in a single year. Saudi Arabian tourists meanwhile reached 1.53 million while UK travelers to Dubai were at 1.27 million.
Tourists from Russia meanwhile rose a hefty 121 percent to 530,000 last year.
Dubai hotels get lift from resurgent Russian tourism source market
Dubai hotels get lift from resurgent Russian tourism source market
Diriyah Co. partners with Midad to develop Four Seasons hotel in Diriyah
RIYADH: Saudi Arabia’s sovereign wealth fund-backed developer, Diriyah Co., has signed a joint development agreement with Midad Real Estate Investment and Development Co. to construct the Four Seasons Diriyah Hotel and private residences.
The partnership will strengthen collaboration between the two companies through the development of the luxury Four Seasons Diriyah, which will feature 159 rooms, alongside private Four Seasons residences, spanning approximately 235,000 sq. meters within Diriyah’s master plan.
The project’s total value is projected at SR3.1 billion (approximately $827 million), encompassing both land acquisition and construction expenses.
Midad is one of the Kingdom’s leading real estate developers, expanding its portfolio of high-end projects and maintaining numerous strategic partnerships with prominent global brands, reinforcing its reputation as a trusted name in luxury residential and hospitality development across Saudi Arabia.
This partnership marks the first major collaboration between Diriyah Co. and Midad, supporting Diriyah’s plans to develop 40 luxury hotels across its two main projects: the 14-sq.-km Diriyah Project and the 62-sq.-km Wadi Safar Project, a premium destination that blends lifestyle, culture, and entertainment.
Commenting on the agreement, Minister of Tourism and Secretary-General of Diriyah Co., Ahmad Al-Khatib, said: “The Kingdom continues to set new standards in developing tourism destinations, with Diriyah at the forefront.”
He added that such partnerships enhance the world-class experiences Saudi Arabia offers and strengthen the Kingdom’s position as a leading destination in this sector.
Diriyah Co. CEO Jerry Inzerillo commented that the Four Seasons Diriyah Hotel and Residences will be one of the Kingdom’s largest luxury hotels.
“We are proud to announce this joint development with Midad, one of Saudi Arabia’s top real estate developers. This agreement reflects our ongoing commitment to enabling Saudi partners to contribute to Diriyah’s transformative journey and confirms Midad’s confidence in the opportunities the project presents,” Inzerillo added.
Midad CEO Abdelilah bin Mohammed Al-Aiban said: “This project is a pivotal milestone for our company, allowing us to bring the Four Seasons experience to one of the Kingdom’s most prominent heritage destinations.”
He added: “We are excited to deliver a project that embodies design excellence, world-class service, and sustainable value, while contributing meaningfully to Saudi Arabia’s tourism, cultural, and economic ambitions.”
The collaboration comes amid rapid progress on the SR236 billion Diriyah project, which has awarded construction contracts worth more than SR101.25 billion to date.
Diriyah is expected to contribute approximately SR70 billion directly to the Kingdom’s gross domestic product, create more than 180,000 jobs, accommodate 100,000 residents, and host around 50 million annual visitors.
The development will feature contemporary office spaces accommodating tens of thousands of professionals across technology, media, arts, and education, complemented by museums, retail destinations, a university, an opera house, and the Diriyah Arena.
It will also offer a diverse selection of restaurants and cafes, alongside nearly 40 world-class resorts and hotels distributed across its two primary master plans.
