Dubai, UAE; May 20, 2008: Emaar Hospitality Group LLC, a business subsidiary of Emaar Properties PJSC, announces plans to enter to the timeshare market, led by the growing demand from tourists for spacious and personalised luxury accommodation in the city. A regional pioneer in the fast-growing tourism segment, Emaar Hospitality Group will soon unveil its timeshare roster encompassing serviced residences and custom-designed resorts in Dubai.
Emaar Hospitality Group also plans to expand its timeshare business to other countries in the region too, where the company is currently developing master-planned communities with hospitality & leisure components. These key timeshare markets will include Morocco, Jordan, Saudi Arabia, India, Turkey, Egypt and Indonesia.
Mr Mohamed Ali Alabbar, Chairman, Emaar Properties PJSC, said: “The timeshare market in Dubai is poised for exponential growth with booming inbound tourists driving the demand for spacious accommodation that hotels cannot fully meet.”
He added: “Emaar already has an extensive hospitality & leisure portfolio featuring several hotels and serviced apartments. Additionally, we plan to develop dedicated timeshare resorts. Emaar is finalizing the modalities of the timeshare business in line with the guidelines of the Dubai Government and also putting in place a special team to support the initiative.”
Originally a European concept, timeshare is a generic term to describe a business model where a property owner sells ‘time-slices’ of property to customers. Timeshare projects are projected to generate nearly four times returns compared to traditional real estate, Buy-to-use-and-let and fractional ownership. Legal framework being developed by Dubai Government for the timeshare concept in Dubai will significantly assist the industry, adding to the vast range of hospitality elements already on offer within the bustling city.
Mr Marc Dardenne, Chief Executive Officer, Emaar Hospitality Group, explained: “A recent survey by NorthCourse Research Firm reveals that Dubai, followed by Sharm El Sheikh and Makkah, is the most preferred timeshare location in the Middle East region. Emaar Hospitality Group is pioneering the move to this promising market, which also brings in the benefits of guaranteed room revenues and assured occupancy post-opening to resorts that we are planning exclusively for timeshare business.”
The World Tourism & Travel Council projects tourist arrival of 14 million by year 2015 to the UAE. Further powering the tourism growth is the investments in new airports and hospitality infrastructure. “Dubai is one of the few destinations that offer the three main attractions preferred by timeshare owners – golf, beach and city-life. Emaar Hospitality Group’s timeshare properties will, therefore, appeal to a wide range of holidaymakers not only from the Middle East but also from Europe, a key feeder market for Dubai’s tourism industry,” said Mr Dardenne.
He added: “Better regulation has been the key challenge of the timeshare business in Europe, where the business is most booming with over 1.3 million timeshare owners as of 2006. However, Dubai is already one-step ahead in terms of timeshare business by having a governmental framework to follow. This will give impetus to Emaar Hospitality in adopting a structured approach with a focus on segmentation of timeshare business – the key to meeting the requirements of Dubai’s eclectic tourist profile.”
Emaar Hospitality Group owns and manages a diversified portfolio of hospitality assets such as hotels, serviced residences, golf resorts, polo and equestrian club, recreation clubs, and the Dubai Marina Yacht Club and Marinas.
