Dubai's Jumeirah sees 57 luxury hotels by 2011
DUBAI (Reuters) - Luxury hotels group Jumeirah expects to be operating 57 hotels around the globe by the end of 2011, with the emphasis on iconic properties, the Dubai-based company's executive chairman Gerald Lawless said on Sunday.
Jumeirah, which operates the Gulf Arab emirate's sail-shaped Burj Al Arab hotel, has identified 26 locations for hotels including properties in major cities such as Paris, London, Frankfurt and New York, Lawless told the Reuters Middle East Investment Summit in Dubai.
The firm, which is owned by the ruler of Dubai, is close to signing a deal in Beijing and is "very close to linking up with an investor in Bali and Jakarta", Lawless said, adding China could be put on hold until after the 2008 Olympics if construction is not started soon.
Last year, Jumeirah started managing New York's Essex House, its first property in the United States, where it is also looking at Boston, Chicago, Miami and San Francisco, Lawless said.
The focus on Asia, which includes having set up an office and establishing a development team in Shanghai, means that within five years Jumeirah expects to be able to generate 35-40 percent of its income from the region.
"We are really looking to develop as rapidly as those economies are. We see (the) Indian and Chinese (markets) as very significant for the future," Lawless said, adding Dubai was also looking to get designated destination status which would make it easier for Chinese nationals to visit.
DUBAI A KEY DESTINATION
Dubai, where Jumeirah has several prime beachfront hotels, will continue to be a significant source of income which will not drop below 35 percent of overall revenues.
One of seven emirates of the United Arab Emirates, Dubai draws more visitors than any other Arab destination except Egypt and wants to attract 15 million tourists a year by 2015, compared with 6.4 million who stayed in Dubai hotels in 2006.
Jumeirah, which does not own its hotels but operates them under 25-30 year management agreements, had previously said it expected to be running 40 hotels around the world by 2010 but the target of 57 by the end of 2011 reflects deep demand.
The firm generated revenue of 2 billion dirhams ($544.7 million) in 2005 from its hotel and leisure business.
"We have 114 live contacts with developers around the world. The investors are queuing up to meet us. (There is) unprecedented demand for luxury hotel properties, both city and resort," Lawless said, adding demand shows no sign of waning.
The firm expects to be managing 20 hotels by the end of the year, up from 11 now.
"The level of investment in the hospitality sector is at an all time high," he said. "People love to travel and continue doing so. People are prepared to spend a lot more for quality."
Asked whether current global tensions over Iran would have an impact on Jumeirah's business, particularly in the Middle East, Lawless said previous conflicts in the region had not had a long-term impact on business or tourism.
"I can't budget for the nuclear bomb. In our risk management procedures we have all our levels. We put that plan into place after 9/11. We are not expecting a crisis and we are not budgeting for that," he said.
