Jumeirah Group expects a strong performance in the UAE in 2013
Jumeirah Group has established itself as a leading hospitality management firm. Its iconic hotels, such as the Burj al-Arab, have played a major role in establishing Dubai as a world-class business and leisure destination.
In the past 18 months, the group has doubled its portfolio, with about 16 other properties under construction and more at the negotiation stage. The group’s Dubai properties consistently outperform the market, with occupancy often near 100 per cent, even during the 2009 recession.
The short- to medium-term outlook is positive for Jumeirah Group. According to hospitality industry tracker STR Global, average occupancy in the UAE increased 2 per cent to 72.5 per cent in 2012, compared with 2011 (Jumeirah Group’s beach properties averaged about 80 per cent occupancy).
Average daily rates (ADR) rose 4.3 per cent and revenue per available room (revpar) improved by 6.4 per cent. Dubai, where most of the group’s properties are, was one of the four markets that achieved double-digit revpar growth in 2012, up 11.4 per cent to $181.45.
In Asia-Pacific, performance was weak. India and China posted declines in occupancy, ADR and revpar, on the back of softening market confidence and an influx of competing properties.
In Thailand and Indonesia, where Jumeirah Group will open new properties, performance indicators were strong. Bangkok posted the largest occupancy increase for the region, up 11 per cent to 70.5 per cent, and Jakarta posted the largest revpar rise of 19 per cent.
Jumeirah Group expects a strong performance in the UAE in 2013, building on the momentum of 2012. It is well positioned to benefit from continued investor confidence in Dubai. Real estate advisory Jones Lang LaSalle forecasts bullish conditions for the emirate’s property sector in 2013.
Add to this, the revised ratings by the US’ Fitch Ratings for Jumeirah Group’s parent Dubai Holding and its reduced debts, the outlook for the group is good.
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