Budget hotel groups are making their presence felt in the UAE with the launch of some excellent projects.
Regional and global hotel groups are beginning to target budget travellers with the launch of economy brands throughout the UAE. Over the past year, Express by Holiday Inn and Premier Inn have launched their first hotels in Dubai, while the first easyHotel is due to open next year.
Leading hoteliers predict that the new sector will spur intra-regional and inbound travel to the UAE.
According to Haitham Mattar, director of marketing, IHG Middle East and Africa, limited-service hotel accommodation will play an important role in increasing tourism levels to the UAE by providing travellers with a lower cost accommodation alternative. For many years, the UAE market had been dominated by luxury hotel accommodation, which has precluded many travellers from being able to visit the region.
"Our research has shown that the Middle East market has a gap for high-quality, internationally branded hotels that place an emphasis on great value for money. Travellers to the region now have the option of limited service accommodation, providing an economical alternative to what many other hotels offer in the region," says Mattar.
In July last year, the Intercontinental Hotels Group opened Express by Holiday Inn in Dubai Internet City, which was the group's first limited-service hotel in the Middle East.
Although there are currently a limited number of budget hotels in the UAE, this market is set to boom. As the cost of living increases both here and around the world, people are becoming more and more conscious of the price of their accommodation.
"Budget hotels in Dubai currently make up less than one per cent of the available supply, versus 18 per cent in Europe and up to 30 per cent in the USA," explains Derek Swan, SVP business development, Emirates Group. "There is an ever-growing demand for affordable accommodation and we believe that Dubai will need at least 5,000 rooms in this sector in the short to medium term."
These low-cost alternatives target everyone from business travellers, to short-break holidaymakers and families, with the emphasis being placed on providing no-frills quality service at great value for money.
"Easyhotels.com appeals to the savvy traveller who recognises choice," explains Joe Sita, CEO of Nakheel hotels. "From the business sector to local and global tourists, these user-friendly hotels will offer a great product in Dubai."
The hotels have already been received well, with some achieving above-market occupancy rates. For example, the Holiday Inn Express at Dubai Internet City currently has a 90 per cent occupancy rate, while the Emirates group predicts that there will be occupancy levels of around 80 per cent at the Premiere Inn at Dubai Investment Park.
In addition to the sites that have already opened, there are currently a number of other budget hotels under development. Nakheel hotels have planned five easyHotels in Jebel Ali, Waterfront, Dubai Maritime City, Karama and Al Garhoud, while Intercontinental Hotels will open its third Holiday Inn Express in Jumeirah later this year.
Additionally, the Emirates group hopes that in the coming two to three years a network of Premier Inns will emerge throughout Dubai and the UAE.
