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Growing Popularity of Middle Scale Hotels in Dubai

News If previously Dubai was known as a place with mostly luxury hotels, nowadays there is a serious shift in structure of the industry. Mid-scale properties become more popular and nowadays almost 50% of new rooms that are to be added in future belong to tree star or lower hotels.

According to the study, published by Jones Lang LaSalle (JLL) and prepared specially for The Hotel Show Dubai 2015 that will take place in the end of September, by the end of 2015 as many as 3600 new hotel rooms will be added to the Dubai market. 44% of these rooms will belong to mid-market hotels. Current supply of the emirate includes 65,000 hotel rooms, and 44% of them are 5 star hotels. However, soon the situation will change and luxury hotels will face rivalry from the side of cheaper competitors. According to forecasts, 44% of hotels will have 3-star of less rating, and 69% hotels will have 4-star or less rating. This is a serious change for the market where 5-star hotels were always the biggest segment and where the only 7-star property in the world is located. This year, as many as 4,000 new guestrooms are to be added to hotel supply of Dubai, increasing it to 70,000.

Even if Dubai is considered one of most luxurious cities in the world, hoteliers follow the trend and offer more rooms for growing middles class. Moreover, Dubai International Airport is known as the busiest in the world, which means many short-stay travelers visit this city. Dubai also attracts many visitors from Africa and Asia, so investors get quick return on their investment, which only fastens the development of hotel industry of the region.


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