Rodolphe Belin of HSP’s recently launched acquisitions wing, HSP Transact, has recently returned from site visits in Dubai.
HSP are advising their client on the best forward strategy for a 230-room hotel development in Downtown Dubai following a downturn in local market conditions over the last 5 years.
Average Occupancy Rate dropped to 75.4% last year from 80.1% in 2013 and as the the market is flooded with the addition of 32,000 new rooms for completion by the Expo 2020, the numbers for 2019 will show a further drop.
In this competitive and challenging environment, positioning any new property on the right market segment is critical to ensure a reasonable financial return and sustainability to guarantee the financial viability of such investment.
On a separate project, HSP Transact is assessing the benefits of converting a recently completed residential tower into quality mid-market international serviced apartments.
With the recognised over-supply in Dubai of new dwellings, HSP is assessing whether converting this 26 storey building to serviced apartments will deliver a stronger profitability to its owner.